Address:No.5006 Aoti Middle Road Hi-Tech Zone Jinan

Website:www.sdecl.com.cn

Hotline:0531-89260052

Fax:0531-89260050

Mailbox:sdhs@sdecl.com.cn

Welcome to Pay Attention to our

WeChat Public Number

Environmental Social

and Governance (ESG)

ReportTable About this Report 01 About Shandong Hi-speed ESG Management Company Profile 11 ESG Governance System 23

Statement of Chairman 03 Business Areas 12 Sustainable Development Goals 26

of Contents Focus 05 Development Course 17 Communication with Stakeholders 27

Brand Building 19 Analysis of Substantial Issues 28

Responding to the

Corporate Culture 20

"Carbon Peaking and Carbon Neutrality"

Honors and Awards 21

Goals and Building Low-Carbon Highways

Governance First Lush Mountains and

Depending on Compliance Lucid waters Protecting Innovation-driven Safe Serving Customers for

Operation to Promote the Ecological Production for Quality Mutual Benefit and

Development Background Color Assurance Common Progress

Corporate Governance 31 Environmental Protection 43 Innovative R & D 53 Customer Rights 71

Party Building 36 Utilization of Resources 47 Product Quality 57 Information Security 77

Business Ethics 39 "Three Wastes" Management 50 Safe Production 61 Supply Chain Management 83

Caring for Employees Giving Back to Society

and Making Together and Practicing Public

for the Future Welfare Appendixes

Labor Relations 87 Local Development 99 Index of Indicators 103

Career Development 92 Public Welfare Undertakings 100 Feedback Form 104

Welfare and Care 95Shandong Hi-speed Company Limited

Environmental Social and Governance (ESG) Report 2023

About this Report

This report is the fourth Environmental Social and Governance Report (ESG Report) and the thirteenth Social Responsibility

Report issued by Shandong Hi-speed Company Limited (hereinafter referred to as "Shandong Hi-speed" "Company" or "We"). Explanatory Notes

Based on the principles of objectivity standardization transparency and comprehensiveness this report discloses in detail the

Company's environmental social and corporate governance practices and performance in 2023. Terms Meanings

Shandong Hi-speed the Company We Shandong Hi-speed Company Limited

Shandong Hi-speed Group the Group Shandong Hi-speed Group Co. Ltd.Henan Development Company Shandong Hi-speed Henan Development Co. Ltd.Reporting Scope Road & Bridge Group Shandong Hi-speed Road & Bridge Group Co. Ltd.This report focuses on Shandong Hi-speed Company Limited and its subsidiaries and branches etc. The scope of this report is Qilu Expressway Qilu Expressway Co. Ltd.consistent with the scope of the Company's annual consolidated financial statements unless otherwise stated.Rail Transportation Rail Transportation Company Shandong High-speed Rail Transportation Group Co. Ltd.Time Range ECON Technology ECON Technology Co. Ltd.The reporting period of this report covers from January 1 2023 to December 31 2023. For the purpose of making the report more Information Group Shandong Hi-speed Information Group Co. Ltd.comparable and forward-looking some of the content appropriately refers back to previous years or has forward-looking

descriptions. This report is issued on an annual basis consistent with the financial year.Assess to the Report

Compilation Basis This report is published in electronic form. You can download the electronic version of this report from the website of Shanghai

Stock Exchange (www.sse.com.cn) or the official website of the Company (www.sdecl.com.cn) to obtain more information about

·Shanghai Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 1 - Standardized Operation of Listed Companies (2023) the Company. If you have questions and suggestions about this report you can send an email to (sdhs@sdecl.com.cn) or call

·Chinese Academy of Social Sciences (CASS) Guidelines for Preparing Corporate Social Responsibility Reports in China (CASS-ESG 5.0) 0531-89260052. This report is released in both Chinese and English versions. In case of any ambiguity or conflict between the two

language versions the Chinese version shall prevail.·Global Reporting Initiative Sustainability Reporting Standards (GRI Standards) (2021 Edition)

·UN Sustainable Development Goals (SDGs)

·State-owned Assets Supervision and Administration Commission of the State Council Guiding Opinions on the Fulfillment of Social Feedback

Responsibility by Central Enterprises

If you have any comments or suggestions on the sustainability of our company please feel free to contact us as follows to help

us continuously improve our report.Data Explanation

Securities Service Hotline: 0531-89260052 Investor Service Fax: 0531-89260050

The data sources used in the report include the original data of the actual operation of the Company public data of government

departments annual financial data relevant internal statistical statements third-party questionnaires third-party evaluation Company website: www.sdecl.com.cn Company mailbox: sdhs@sdecl.com.cn

interviews etc. The financial data in this report are expressed in RMB and in case of any inconsistency with the financial report

the financial report shall prevail.Address: No. 5006 Mid Aoti Road Ji'nan City Shandong Province

01 02Shandong Hi-speed Company Limited

Environmental Social and Governance (ESG) Report 2023

Statement of Chairman

Here is another year and anther chapter of our life; we are still in the middle of our journey also our dream. The year of 2023 was The Company is employee-oriented and we grow together with employees. In 2023 we insisted on establishing harmonious and

an extraordinary year which was the first year to fully implement the spirit of the 20th Party Congress. Under the guidance of Xi stable labor relations and provided a mature development system based on a sound remuneration and welfare system thus

Jinping Thought on Socialism with Chinese Characteristics for a New Era Shandong Hi-speed adhered to the corporate mission of ensuring that employees enjoyed a relaxed and open communication environment an open and transparent development channel

"making the enterprise stronger with well-off staff and giving back to society" made progress through reform embraced the future and a warm and harmonious workspace so as to shape the Company into a warm and happy home.through inheritance and constantly practiced its social responsibility.We devote ourselves to society. In 2023 we actively participated in public welfare activities invested in the construction of

We are all the time strengthening governance and moving forward steadily. In 2023 starting from the strategic responsibility of infrastructure and living facilities for rural revitalization helped the needy people assisted the planting of agricultural products

state-owned enterprises we actively responded to the national "The Belt and Road" initiative and expanded our scope of operation; organized volunteer service teams escorted the travel safety of people contributed to public welfare undertakings and fully

we always upheld the leading role of Party building took compliance operation as the cornerstone comprehensively improved risk demonstrated the Company's social responsibility.control maintained investor relations and optimized ESG management system and structure to ensure high-quality governance

with sustainable development. Going ahead our heart remains the same. In 2024 under the corporate spirit of "Accountable Aggressive and Advanced" we will

base ourselves on the past strive to move forward explore a broader path for future development build a cornerstone with duties

Low-carbon highways represent green development. In 2023 we continued to integrate the concept of developing low-carbon and create a brighter future with reforms making every effort to build the top brand in China's expressway industry.highways into our development strategy vigorously promoted green technologies in road maintenance and engineering

construction fully deployed the "paper-to-electronic" reform for invoices continuously explored new energy utilization promoted

the construction of "zero-carbon toll stations" and deepened the concept of energy-saving and low-carbon development in all

aspects of highway operation. Chairman:

We always stick to the bottom line for work safely. In 2023 we believed that safety was of paramount importance and it was our

responsibility to ensure the quality of highway service. We applied digital management to every part of expressway operation

improving highway service level by digital means assessing and making plans for various risks and guaranteeing the safe and

smooth operation of highways.We provide quality service and protect customer rights and interests. In 2023 we put the protection of customers' rights and

interests at the top of our service ensuring the safe travel of customers comprehensively improving customer complaint response

procedures strictly protecting customers' information security and making customer travel more convenient. We have been

working hard to improve the customer experience.

03 04Shandong Hi-speed Company Limited

Environmental Social and Governance (ESG) Report 2023

Focus Case 1 Application of Environmental Protection Technology in Engineering Construction

Empower the brand of "Shangao · Xing" and be a listed In the construction project of Qihe-Jinan Section of Beijing-Taibei Expressway we used pile heads to break down waste materials and construction solid wastes so as to construct access roads and backfill and compact the surface realizing the

company with "sense of responsibility". reuse of about 110000 m3 of waste materials.In the construction of the steel box girder of the main bridge of the Yellow River Bridge we adopt the block unit on-site

- The ESG Vision of Shandong Hi-speed assembly technology to replace the conventional plate unit on-site processing technology reducing the land acquisition

area of 45 mu in the Yellow River beach and effectively protecting the ecological environment of the Yellow River Basin.Responding to the "Carbon Peaking and Carbon Neutrality" Goals

and Building Low-Carbon Highways

In 2021 the State Council issued the Action Plan for Carbon Peaking by 2030 proposing that green and low-carbon

actions for transportation should be taken from three aspects: promoting low-carbon transformation of transportation

equipment constructing green and efficient transportation system and speeding up construction of green

transportation infrastructure. In the same year the 14th Five-Year Plan for the Development of Modern Comprehensive

Transportation System further proposed that energy conservation and carbon reduction in the highway field should be

pushed from four aspects: structure adjustment cleanliness low energy consumption and green.Under this background Shandong Hi-speed has evaluated the current situation of carbon emission in the industry while

fully taking into account the actual internal and external conditions of the industry and the Company made due

contribution to the construction of ecological civilization with practical moves and promoted the harmonious

coexistence between man and nature.Green Engineering

Case 2 Promotion of Electric Locomotives in Rail Transportation

Shandong Hi-speed integrates the low-carbon concept and environmental protection consciousness into the construction of

expressway rail transit and engineering construction and puts them into practice.In 2023 Rail Transportation Company a subsidiary

completed the construction of the national railway

Before Road Construction During Road Construction interface and installation and commissioning of supporting

equipment and facilities of Dalailong Railway promoted

the smooth direct traffic of the first electric locomotive of

Delong-Longkou-Yantai section and put 6 electric

The Company adheres to the system of "three The Company regularly inspects the construction locomotives into normal operation which can reduce

simultaneous actions" for environmental protection and adopts automatic spraying system and other measures carbon emissions by 6000 tons per year compared with

prepares environmental impact reports for various to suppress dust and properly handles various wastes the traditional rail locomotives.projects undertaken for construction. In those reports generated during construction according to relevant

we analyze the ecological status of the construction regulations especially hazardous wastes. After

site evaluate the possible impacts and risks caused by construction we will restore vegetation in time make

the construction avoid wetlands wildlife reserves and full use of earth for subgrade backfilling and effectively In terms of green maintenance the Company issued 5 standardization manuals including the Technical Guide for Expressway

other areas to minimize the environmental impact on reduce occupation of land resources. Greening Management and Protection comprehensively promoted new technologies new processes new materials and intelligent

the local area. maintenance equipment for green pavement maintenance and created a maintenance quality project of "safety comfort green

harmony and public recognition".

05 06Shandong Hi-speed Company Limited

Environmental Social and Governance (ESG) Report 2023

Among the maintenance technologies the Company treats pavement diseases by super-surface treatment and thermal Digital Emission Reduction

regeneration effectively reduces carbon emissions in the whole life cycle of roads and promotes and applies new green and

low-carbon technologies such as SMA-8 high-toughness ultra-thin overlay and function-recovery ultra-thin seal layer. Digital transformation is one of the effective ways to reduce carbon emission. Shandong Hi-speed issued the Implementation Plan for

Digital Upgrading for digital construction which guided the digital upgrading of monitoring patrol ETC and other businesses in

expressway operation. During operation we took a number of digital transformation measures.Function-recovery ultra-thin sealing layer technology normal temperature construction: · Improve the intelligent infrastructure of "AI+ fixed video" and "AI+ on-board video" to reduce or replace manual and

electronic road inspections;

No dust pollution less material consumption greatly reducing aggregate waste. · Improve the construction of intelligent terminal equipment such as intelligent card issuance and intelligent charging;

· Establish a digital office system covering the daily management of toll stations;

· Continuously improve the proportion of ETC users and ETC lane transaction success rate of the Company's expressway

toll collection;

· Improve the construction of digital trading platforms such as "Go First Pay Later" and electronic invoices and improve

the utilization rate of electronic payment;

· Establish and improve the Company's energy measurement system.Among them the promotion of toll electronic invoices i.e. "paper-to-electronic" work was

fully upgraded in 18 expressway operation units in the province on April 19 2023 realizing

a 25% increase in single vehicle traffic efficiency shortening the waiting time for vehicles

SMA-8 High-toughness ultra-thin overlay: to pass through lanes by 4-6s and greatly reducing paper invoice printing amount and

printing consumables. It is estimated that carbon dioxide emissions can be reduced by

about 2600 tons in the whole year greatly reducing costs and carbon emissions. It does

While ensuring the anti-sliding performance of the surface layer it prevents the water damage of the lower asphalt good to the construction of low-carbon highways.concrete caused by the underwater seepage of the road surface and delays the disease development of reflection

cracks.realizing a shortening the waiting It is estimated that

25 time for vehicles to pass carbon dioxide emissions % through lanes by can be reduced by about

increase in single vehicle

traffic efficiency 4-6s 2600 tons

In 2023 the Company achieved 100% of excellent maintenance projects 100% of recycling rate of asphalt pavement materials for

special maintenance projects 100% of recycling rate of waste pavement materials for expressways and more than 95% of in the whole year

recycling rate.Electronic Upgrading of Toll Invoices

07 08Shandong Hi-speed Company Limited

Environmental Social and Governance (ESG) Report 2023

Exploring Clean Energy

New energy solutions:

In terms of the utilization of clean energy Shandong Hi-speed focuses on the direction of photovoltaic energy and strives to

develop a new energy model of "highway + photovoltaic".·Photovoltaic power generation system ·Energy storage system

·Integrated energy management systems ·New energy vehicle charging station project etc.Case Qilu Expressway Landed the Distributed Photovoltaic Project

Based on the analysis of the current electricity consumption of

In November 2023 Qilu Expressway made full use of idle space resources such as ramp circle slope and toll station of Gushan Toll Station (West Side) and Zhangqiu West Toll

expressway in some highway areas of Liaocheng arranged distributed photovoltaic projects along Dezhou-Shangrao Station respectively the Company deployed additional

Expressway and Shenxian-Nanle Expressway successfully connected to the grid and put into operation with a total installed photovoltaic equipment energy storage equipment and

capacity of 8.2MW. charging piles required for photovoltaic transformation at the

two toll stations. For the transformation of photovoltaic

equipment the Company entrusted a third party to prepare

the Design Scheme for Gushan Toll Station Distributed

Photovoltaic Power Generation Project of G3 Beijing-Taibei

Expressway according to the actual geographical location and

Gushan Toll Station’s building conditions and planned to

install photovoltaic shed tiles in the toll station area. It is

estimated that in the 25-year economic life period the annual

emission of greenhouse gas CO2 can be reduced by about

193.52t. The specific construction plan of Zhangqiu West Toll

Station is still in progress.In order to reduce the carbon emission of toll station operation the Company plans to build the first "zero-carbon toll station" in

China at Gushan Toll Station (West Side) of G3 Beijing-Taibei Expressway and Zhangqiu West Toll Station of G20 Qingdao-Yinchuan

Photovoltaic Project of Gushan Toll Station (West Side)

Expressway. It plans to fully deploy new energy solutions. From power generation to electricity consumption to energy storage

photovoltaic green electricity will be used throughout the power cycle to realize "self-generated electricity for self-use surplus

electricity to grid". Combined with the technology of digital emission reduction the first comprehensive demonstration toll station

of "smart cloud control + zero carbon" in China is built by using digital twin and cloud control platform technology.

09 10Shandong Hi-speed Company Limited

Environmental Social and Governance (ESG) Report 2023

About Shandong Hi-speed Business Areas

The main business scope of Shandong Hi-speed is divided into road and bridge operation segment and Capital Operation

Segment.Company Profile

Shandong Hi-speed Company Limited ("Shandong Hi-speed" abbreviated as "SDHS" stock code 600350) was established in 1999 14 Headquarters Functional Departments

and controlled by Shandong Hi-speed Group Co. Ltd.; it was listed on Shanghai Stock Exchange in March 2002 headquartered

at No. 5006 Mid Aoti Road Ji'nan City Shandong Province. The Company is mainly engaged in investment and operation of

transportation infrastructure as well as equity investment in upstream and downstream related industries of expressway industry

chain. In 2023 the Company's operating revenue was RMB 26.546 billion with 10805 employees and a total mileage of 2864 Road and Bridge Operation Segment Capital Operation Segment

kilometers of roads and bridges under operation and management. It is a first-class road and bridge operation service provider in

China.Total mileage of road and

The Company's revenue was RMB employees bridge under operation and

management

265.46108052864

billion kilometers

Company Functional Structure Distribution

1112

7 Major Stock-Participating Companies

7 Direct Subsidiaries

3 Regional Development Companies

7 Direct Subsidiaries

18 Operation Management Centers

3 Directly Affiliated UnitsShandong Hi-speed Company Limited

Environmental Social and Governance (ESG) Report 2023

Road and bridge operation segment is divided into general traffic and engineering construction. Road and Bridge Operation Segment Management Chart

Road and Bridge Operation Segment

Road and Bridge Operation - General Traffic

Toll roads and bridges are the core business of the Company.Directly Affiliated Units Operation Management Centers Direct Subsidiaries

In 2023 the Company operated and managed a total road and bridge mileage of 2864 km of which 1555 km was

owned by the Company and 1309 km was entrusted by Shandong Hi-speed Group. The holding company Shandong

High-speed Rail Transportation Group Co. Ltd. operated 390 kilometers of local railways and managed 147 kilometers of

special railway lines and connecting lines.Owned Road and Bridge Assets

Ji'nan-Qingdao Expressway (Shandong Dezhou-Qihe Section of Beijing-Taibei

Section of Qingdao-Yinchuan Expressway) Expressway

Qihe-Ji'nan Section of Beijing-Taibei Ji'nan-Qingdao Connecting Line of

Expressway Beijing-Taibei Expressway

Ji'nan-Tai'an Section of Beijing-Taibei Beijing-Shanghai Highway (Auxiliary Line)

Expressway Ji'nan-Laiwu Expressway

Weifang-Laiyang Expressway Weihai-Rushan Expressway

G104 Taian-Qufu Class I Highway Henan Xuchang-Yuzhou Expressway

Company Managed Road Network Map (within Shandong Province)

Jiyuan-Jincheng (Provincial Boundary) Hunan Hengyang-Shaoyang Expressway

Section of Erenhot-Guangzhou Expressway

Sichuan Chengdu-Chongqing Ring Road

Hubei Wuhan-Jingmen Expressway Hejiang (Chongqing-Sichuan Boundary) to

Naxi Section Expressway

Liaocheng-Fanxian County

Yinjialin-Wangguantun Section of

(Shandong-Henan Boundary) Section of

Ji'nan-Guangzhou Expressway

Dezhou-Shangrao Expressway

Lintun Village-Provincial Boundary Section

of Shenxian-Nanle (Shandong-Henan Ji'nan Second Yellow River Highway Bridge

Boundary) Expressway

Lijin Yellow River Highway Bridge

Road and Bridge Operation-Engineering Construction

Undertaking highway reconstruction and expansion projects is a part of our highway business. The projects undertaken by Company Owned Highway Assets

the Company mainly include: Reconstruction and Expansion Project of Ji'nan-Qingdao Expressway Reconstruction and

Expansion Project of Dezhou-Qihe Section of Beijing-Taibei Expressway Reconstruction and Expansion Project of Company Entrusted Assets

Ji'nan-Tai'an Section of Beijing-Taibei Expressway Reconstruction and Expansion Project of Qihe-Jinan Section of

Beijing-Taibei Expressway Reconstruction and Expansion Project of Ji'nan-Heze Section of Ji'nan-Guangzhou Expressway.

1314

Shandong High-speed Rail Transportation Group Co. Ltd.Qilu Expressway Co. Ltd.Hunan Hengshao Expressway Co. Ltd.Shandong Lijin Yellow River Highway Bridge Co. Ltd.Hubei Wujing Expressway Development Co. Ltd.Luzhou Southeast Expressway Development Co. Ltd.Shandong Hi-speed Information Group Co. Ltd.Zibo Operation Management Center

Weifang Operation Management Center

Qingdao Operation Management Center

Weilai Operation Management Center

Yantai Operation Management Center

Weihai Operation Management Center

Beijing-Shanghai Ji'nan Operation Management Center

Taiqu Road Operation Management Center

Taidong Operation Management Center

Dezhou Operation Management Center

Xiajin Operation Management Center

Beijing-Taibei Ji'nan Operation Management Center

Taian Operation Management Center

Zaozhuang Operation Management Center

Linyi Operation Management Center

Heze Operation Management Center

Ji'nan-Qingdao Ji'nan Operation Management Center

Weiri Operation Management Center

Engineering Management Center

Operation Dispatch Center

Financial Sharing CenterShandong Hi-speed Company Limited

Environmental Social and Governance (ESG) Report 2023

Capital Operation Segment Management Chart

Case Regional Collaborative Exchange Meeting of Units Stationed in Henan to Capital Operation Segment

Strengthen the Regional Road Network in Henan.I n Feb rua r y 2023 Henan Deve lopmen t Company a

wholly-owned subsidiary of Shandong Hi-speed held a regional Regional Development Direct Subsidiaries Major Stock-Participating

collaborative exchange meeting of units stationed in Henan Companies Companies

attended by 7 brother units stationed in Henan including the

Road & Bridge Group and exchanged views on collaborative

sharing of internal resources.During the meeting all units conducted in-depth discussions

around the regional collaborative development model and

reached important consensus on deepening cooperation and

exchange of the Company's business segments accelerating the

construction of the Company's regional road network in Henan

jointly building the "One Network" of Shandong Hi-speed in

Henan region and promoting the long-term interfacing of all

units which played a role in accelerating the construction of the

Company's business network.The Capital Operation Segment is a new path for long-term sustainable development explored by the Company outside its main

business of expressway.Capital Operation

As the second largest business segment of the Company the Capital Operation Segment has developed well. In recent years Case Sub-Forum of "New Development of Capital Market under the New Situation"

the profit contribution of the Capital Operation Segment to the profit of the Company has gradually appeared. to Explore Capital Operation

In terms of equity investment firstly the Company actively expands the scale of expressway-based main business assets In March 2023 the sub-forum of "New Development of Capital

through horizontal merger and acquisition of expressway-based main business projects and establishes its own industry Market under the New Situation" of China Transportation Industry

position. In 2021 the Company completed the acquisition of 38.93% equity of Qilu Expressway Co. Ltd.; secondly the Economic Annual Conference and 2023 Industrial Innovation and

Company takes the environmental protection industry and related financial investment in the field as the new profit growth Development Forum was held in Ji'nan attended by leaders and

point. In 2022 Yunchuang Commercial Factoring Company was established to develop the supply chain industry; thirdly it experts from all walks of life such as the Company and the Vice

has participated by shareholding in four listed companies: Weihai Commercial Bank Dongxing Securities Longma President of China Association of Listed Companies.Environmental Sanitation and Guangdong Expressway A set up Changying Fund Management Company and built a On the forum the Company leaders showed a prospect on how

diversified investment and financing platform integrating securities banks funds and factoring companies. Shandong Hi-speed would open up a new situation for the Com-

pany's development under the background of capital market

In terms of value investment the Company actively seeks for "short-term and quick-return" and risk-controllable financial reform. As a state-owned listed company the Company will

investment projects by leveraging the cash flow advantages of the expressway industry and achieves the investment goal carry the mission and bear the responsibility strengthen the

of "making up for the long-term return with the short-term return" by obtaining short-term financial investment returns so advantages of the main industry deeply explore the capital

as to make up for the shortcoming of long investment payback period in the expressway industry. operation industrial transformation and upgrading reform and

innovation drive and create a new situation of "innovation open-

ness synergism and low carbon" development with all-round

power.

1516

Guangdong Expressway Development Co. Ltd.Weihai City Commercial Bank Co. Ltd.Dongxing Securities Co. Ltd.Fulongma Group Co. Ltd.Shandong Hi-speed Engineering Project Management Co. Ltd.Shandong Hi-speed Logistics Group Co. Ltd.Shandong Expressway Maintenance Group Co. Ltd.ECON Technology Co. Ltd.Shandong Hi-speed Investment Development Co. Ltd.Shandong Hi-speed Sulianyun Technology Co. Ltd.Shangao Yunchuang (Shandong) Commercial Factoring Co. Ltd.Shandong Hi-speed Industrial Development Co. Ltd.Shandong Hi-speed Qilu Construction Transportation

Management Service Co. Ltd.Shandong Hi-speed Changying Equity Investment Management

Co. Ltd.Shandong Hi-speed Henan Development Co. Ltd.Shandong Hi-speed Hunan Development Co. Ltd.Shandong Hi-speed (Shenzhen) Investment Co. Ltd.Shandong Hi-speed Company Limited

Environmental Social and Governance (ESG) Report 2023

Development Course

In 1999 Shandong Hi-speed Group Co. Ltd. and China Merchants Expressway Network & Technology Holdings Co. Ltd. jointly 2023 Road and Bridge Operation

established Shandong Hi-speed Company Limited. For more than 20 years Shandong Hi-speed has continuously explored new Fully completed the toll invoice "paper-to-electronic" work; intelligent scientific and technological achievements were recognized

development paths devoted itself to innovation managed the continuous growth of road and bridge mileages and gradually as international advanced and domestic leading.matured investment mode in capital operation continuously striding towards a more modern future. Capital Operation

Acquired 65% equity of Shandong Hi-Speed Information Group Co. Ltd.Revitalizing Shandong Wonderful Start (1989-1999) 2022 Road and Bridge OperationThe reconstruction and expansion project of Ji'nan-Tai'an Section of Beijing-Taibei Expressway was completed and the

1989 The construction of Jinan-Qingdao Expressway the first expressway in Shandong Province began. reconstruction and expansion project of Ji'nan-Heze Section of Ji'nan-Guangzhou Expressway was commenced.

C apital Operation

Yantai Hesheng Real Estate Development Co. Ltd. completed equity transfer symbolizing the successful divesting of real estate

Forging Ahead Towards Blue Chip (1999-2009) business.

1999 Shandong Hi-speed Company Limited was established and controlled by Shandong Hi-speed Group 2021 Road and Bridge Operation

Co. Ltd. The reconstruction and expansion project of Dezhou-Qihe Section of Beijing-Taibei Expressway was completed 18 months ahead

of schedule.Capital Operation

2002 Acquired 38.93% controlling stake in Qilu Expressway realizing the first "A-Shares Company Controlling H-Shares Company" in

Shandong Hi-speed was listed on the Shanghai Stock Exchange and issued 505 million A-Shares for the first time. the industry.

2020 Road and Bridge Operation

2008 Road and Bridge Operation

Completed the Reconstruction and Expansion Project of Beijing-Taibei Expressway ahead of schedule; the Reconstruction and

Acquired Deqi North Section of Beijing-Fuzhou Expressway 100% equity of Shandong Hi-speed Group Xuyu Highway Co. Ltd.Expansion Project of Ji'nan-Qingdao Expressway won many awards such as National Quality Award.and 49% equity of Shandong Hi-speed Engineering Consulting Co. Ltd.Capital Operation

Acquired 51 % equity of Shandong High-speed Rail Transportation Group Co. Ltd. and 9.68% equity of Guangdong Expressway.Pursuit of Excellence Far-reaching and Wide Integration (2009-2016)

2019 Road and Bridge Operation

2010 Initiate major asset reorganization projects. The newly expanded two-way eight-lane Jinan-Qingdao Expressway was completed 15 months ahead of schedule; acquired 80%

equity of Sichuan Luyu Expressway Company.

2011 Road and Bridge Operation 2018 Road and Bridge Operation

Acquired 7.5 billion high-quality road and bridge assets under the Group; entrusted to manage 500 km of road assets with a total Acquired 60% equity of Hubei Wujing Company and 90% equity of Jijin Company increased operation mileage by 205 km

mileage of 1452 km of roads under management. achieving a total operation mileage of 2300 km; cancelled the toll station at the provincial boundary between Shandong and

Jiangsu realized non-stop toll collection; officially transferred Ji'nan Yellow River Bridge Pingyin Yellow River Bridge and Binzhou

Yellow River Bridge to the government.

2012 Road and Bridge Operation

Acquired 70% equity of Hunan Hengshao Expressway; entrusted to manage assets such as S38 Zaolin Expressway and S11 Yanhai

Expressway with a total mileage of 1628 km of roads under management. 2017 Road and Bridge Operation

The Headquarters set up an operation division to directly manage 127 grass-roots units; realized the "full payment" lane ahead

of schedule.

2013 Road and bridge operation Capital Operation

Entrusted to manage Beilai Highway Lijin Yellow River Bridge etc. with a total mileage of 1875 km of roads under management. Invested RMB 400 million to subscribe for additional shares of Longma Environmental Sanitation.

2016 Road and Bridge Operation

2014 Capital Operation The construction of Jinan-Qingdao Expressway reconstruction and expansion project began.

Subscribed 317 million additional shares of Weihai Commercial Bank; successfully issued 2 billion corporate bonds. Capital Operation

Promoted the establishment of the first RMB 1 billion Changying Fund as the Company's capital operation platform; bid for 120

million additional shares of Dongxing Securities.

2015 Road and Bridge Operation

Acquired 65% equity of Lijin Bridge Company; constructed 233 ETC lanes and automatic card issuing lanes to realize an

unattended mode at toll station entrance. Working Hard and Never Stop（2016-Present）

17 18Shandong Hi-speed Company Limited

Environmental Social and Governance (ESG) Report 2023

Brand Building Corporate Culture

On December 18 2023 the service brand launch During more than 20 years' operation Shandong Hi-speed has gradually formed its corporate mission vision and core values in

conference of "Shangao·Xing" was held in Ji'nan. line with the Company's development laws and formed a sub-culture of Shandong Hi-speed with unique Shandong cultural

Shandong Hi-speed looks back on the past and characteristics and the company features. Shandong Hi-speed is not only symbolizing the Company's name but also the

looks forward to the future based on past experi- Company's pursuit. Based on it the Company has developed a variety of corporate cultures such as its vision and mission.ence and combined with the development

blueprint comprehensively summarized the

quality and pursuit of Shandong Hi-speed people

and established the service brand "Shangao·

Xing".Corporate Mission High Talent

The service brand "Shangao · Xing" reflects the Company's mission of "creating a road of

happiness" with the responsibility of "shan"; practicing the value concept of "far-reaching Making the enterprise stronger with well-off staff Management Concept

expressway smooth and diligent travel" with the ambition of "gao"; and demonstrating the and giving back to society

spiritual characteristics of "courage to take responsibility and dare to be the first" with the Talent Concept

attitude of "xing". In the future the Company will continuously meet the public's demand

for beautiful travel and green travel and unswervingly build and share the way of travel

walking with the masses the world and the beautiful things. Corporate Vision Integrity Concept

Determined to be a century-old enterprise and build High Performance

the first brand in China's expressway industry

Innovation Concept

Act with Original Intention with Beauty in Heart

"Shangao · Xing" is a mission. We continue to work hard in the field of expressway as our main business. The Core Values Cooperation Concept

year-on-year growth in mileage under management the technological leadership of intelligent high-speed the rapid

improvement in access efficiency and the continuous exploration of low-carbon highways fully showing our Far-reaching expressway smooth and diligent travel Team Concept

persistence in our initial intention. We contribute to the beautiful travel of the public and lead the development of the

transportation industry.Learning Concept

Act with Quality Developing Efficiently Corporate Spirit High Quality

"Shangao · Xing" is a belief. Based on expressway operation as our main business we explore the long-term

sustainable development path of capital operation expand the scale of main business assets assist transformation ·Accountable Quality Concept

and upgrading continuously extend the industrial chain and create a high-quality development pattern in the new

era with a multi-field and multi-format development network. S·Aggrehssive an / MountainSafety Concept

Act with Elegance Taking the Lead with Responsibility ·Advanced Service Concept

"Shangao · Xing" is a spirit. We bear the social responsibility as a state-owned enterprise explore the "Shandong Path"

of energy integration and green development construct green projects develop digital carbon reduction

technologies promote the use of clean energy such as photovoltaic power and make efforts at multiple points to

thoroughly implement the concept of low-carbon development. Gao / High

Act with Pursuit Striving for Excellence

"Shangao · Xing" is a pursuit. We have always adhered to the leadership of the Party never forgotten our original Firm and steady as a mountain tough and responsible as a heaver.mission worked hard forged ahead started a new journey of high-quality development and strived to be the Shandong

"pioneer" in the practice of Chinese-style modernization in Shandong and the construction of a strong socialist Hi-speed Culture High starting point in new stage high pursuit in new period high

province in the new era. quality in new development.

19 20Shandong Hi-speed Company Limited

Environmental Social and Governance (ESG) Report 2023

Honors and Awards

Scientific and Technological Innovation

Since its establishment Shandong Hi-speed has won continuous reputation in many aspects. In 2023 the Company won many

awards in corporate governance social responsibility engineering construction scientific and technological innovation etc. Two second prizes and one third prize of "2023 Science and Technology Award of China Highway and Transportation Society"

Corporate gGovernance

Selected into the "2023 Top 100 Listed Companies in China"

Science and Technology Award of China Communications and Transportation of Association

New Fortune "Best Public Company" 2022 P5W Investor Relations The 18th "Gold Round Table Award"

Gold Award - "Best New for the Board of Directors of Listed

Media Operation Award" Companies in China - Special Management Innovation

Contribution Award for Corporate

Governance

The National Second Prize for "Customer-centric Digital Operation Service Management of Expressway Enterprises"

Social Responsibility

The second prize of the 19th

"Transportation Enterprise Management National Transportation Industry Management

Modernization Innovation Achievements". Innovation Demonstration Unit

2022 Transportation Corporate Social 2023 ESG Top 100 Award for 2022 Shandong Enterprise Social

Responsibility (ESG) Report Rating Listed Companies in China Responsibility List - Most

-Excellent Report Influential Enterprise Employee Management

Engineering Construction

The Reconstruction and Expansion Project of Ji'nan-Qingdao Expressway was selected into "Zhan Tianyou Award of the 12th

First Batch of China Civil Engineering" and "Luban Award of China Construction Engineering (National High Quality Project)

2022-2023"

The Reconstruction and Expansion Project of Dezhou (Shandong-Hebei Boundary)- Qihe Section of Beijing-Taibei

Expressway won the "2022-2023 (Second Batch) Highway Traffic Quality Engineering Award"

Advanced Unit of Staff and Team First Prize Individual First Prize and Excellent

Vocational Education in Organization Award in Shandong Expressway

Shandong Province Obstacle-clearing & Rescue Skills Competition

21 22Shandong Hi-speed Company Limited

Environmental Social and Governance (ESG) Report 2023

ESG Management ESG Management Main FunctionsHierarchy

Becoming an ESG benchmark enterprise in the industry under

Formulate ESG policies strategies systems indicator systems etc.the leading by sustainable development.- ESG Strategic Goal of Shandong Hi-speed Review ESG-related important matters of the Company and determine major

Board of Directors ESG risk management plans

Review the Company's annual ESG report and confirm ESG work completion

Shandong Hi-speed always puts green low-carbon and high-quality development in an important position strives to

integrate ESG into enterprise strategy governance reform and development and daily operation. We regard ESG as an Participate in ESG-related training and communication activities

important content to improve the level of enterprise governance according to law improve the quality and benefit of

development and improve the competitiveness of enterprises constantly improves the overall responsibility

performance ability and awareness of enterprises and promotes sustainable development.Study and advise on ESG plans and policies

Board of Directors

Strategic Development and Review ESG reports of the Company and submit them to the Board of Directors

ESG Management for consideration

Committee

ESG Governance System Guide and supervise ESG working group to carry out ESG-related risk study

In order to implement the ESG management concept and Corporate ESG Management Structure

integrate it into the operation and management of the Company

Shandong Hi-speed adheres to the ESG goal of "becoming a Overall ESG internal work management including formulating ESG index system

leader in social responsibility in the industry" establishes the Board of Directors annual work plan ESG objectives assessment and incentive scheme risk

"Strategic Development and ESG Management Committee" Strategic Development and management etc.under the Board of Directors and prepares the Environmental ESG Management

Social and Governance (ESG) Management Measures and the Working Rules Committee Working Group Overall ESG external work management including annual ESG report disclosure

of the Strategic Development and ESG Management Committee of the related rating questionnaire processing external training and meetings etc.Board of Directors integrating ESG management with the Board of Directors Strategic Development

decision-making operation and development of the Company and ESG Management Committee

and continuously creating comprehensive value.Break down ESG objectives and annual work plans into annual ESG work plans

of corresponding departments and subsidiaries carry out ESG special projects

Strategic Development and ESG and sort out and report the implementation of ESG objectives

Management Committee Working Group

ESG Working Group Annual ESG information collection providing basic materials preparing ESG

reports responding to ESG capital market-related research and rating

questionnaires

ESG Working Group Organize and participate in internal and external ESG related meetings and

training.

23 24Shandong Hi-speed Company Limited

Environmental Social and Governance (ESG) Report 2023

ESG Management Practices On March 9 2023 Shandong Hi-speed was awarded the

honorary title of "Most Influential Enterprise" in the "Evolution

In order to promote the effective implementation of the Company's internal ESG management strategy Shandong Hi-speed has 2023" Qilu Evening News - Qilu Yidian Annual Ceremony -

formulated the ESG Work Plan defined the ESG action process and actively taken ESG management measures in various Responsibility Shandong · 2022 Shandong Enterprise Social

dimensions. Responsibility List which injected impetus into the Company's

continuous efforts in ESG management.ESG Workflows

Sustainable Development Goals

ESG Action Preparation Stage ESG Action Implementation Stage

Shandong Hi-speed has actively responded to the "Carbon Peaking and Carbon Neutrality" development concept built the ESG

brand image of the Company improved the ESG strategy system. We closely integrated the Company's development with the

ESG Significant Issue ESG Working Group ESG Action Subject United Nations 2030 Sustainable Development Goals (SDGs) established the overall ESG management concepty formed the ESG Goal Setting

Identification Update Implementation Implementation overall ESG governance framework and formulated ESG development goals for each development level of the Companyso as to

comprehensively assisted the ESG development.ESG Policy Support Management Management SDGs

Dimensions Concept

Standardized "Three Meetings" Cooperation

Corporate Integrity & Business Ethics ESG Management Measures

Governance Reasonable Information Disclosure

(G) Risk Management

Actively organize and participate in internal and external ESG-related meetings and training to enhance ESG Clean Party Building

management awareness and ability of each segment;

Standardize Environmental Management

Establish ESG assessment and incentive mechanism scheme; Environmental Respond to Carbon Peaking and Carbon Neutrality

Planning

Identify formulate and publicly disclose ESG-related objectives through stakeholder communication and in Protection

Strengthen Energy Management

combination with the Company's operation and development; (E)

Strictly Control Emissions

Formulate ESG indicator system make ESG annual work plan based on indicator system and comprehensively

improve ESG management structure.Enhance Work Safety

Industrial Adhere to Innovation Drive

Value

In order to effectively prevent and control various potential risks that may hinder the sustainable development of the Company as Protect Customer Rights and Interests (S)

led by the Strategic Development and ESG Management Committee of the Board of Directors we has comprehensively carried Strive for Quality Improvement

out research analysis identification evaluation and response on ESG-related risk matters of the Company established ESG risk

identification and management system regularly identified ESG-related risks and judged the degree of ESG risks formulated ESG

risk management and control action plans integrated ESG risk management and control requirements into overall risk Employee

management and ensured the stable development of various businesses of the Company. Promote Employee Development Benefits Create Shared Value with Employees

(S)

ESG Risk Identification and Management Process

Social Emphasize on Creating Social Value

Responsibility Actively Assume Social Responsibility

(S) Give Back to Society

Sudy Analysis Identification Assessment Addressing

25 26Shandong Hi-speed Company Limited

Environmental Social and Governance (ESG) Report 2023

Communication with Stakeholders Analysis of Substantial Issues

The Company adheres to the concept of environmental protection undertakes its due social responsibility continuously improves The Company always has an eye on ESG rating indicators in the capital market takes into account national policies industry trends

the comprehensive utilization efficiency of resources and promotes the sustainable development of enterprises and the and corporate strategies analyzes its own sustainable development challenges establishes a substantial issue identification

environment. We cares for the rights and interests of stakeholders such as investors customers employees and partners and mechanism and determines annual important issues through analysis and research on internal and external stakeholders.understands and responds to ESG issues of major concern through various communication channels.Substantial issue analysis process

Stakeholders Expectations and Demands Response

Research on expressway Analysis of basic situation Industry best practice External public opinion

industry and of company operation benchmarking analysis

benchmarking analysis

Compliance Management Abide by Laws and Regulations

Pay Taxes according to Law Pay Taxes on our own Initiative

Government Questionnaire survey on internal and external stakeholders

Environmental Protection Green Management

Promote Local Development Localized Employment Substantial issues

Safe Travel Implement Work Safety

Customers Protect the Rights and Interests of Customers Adhere to Integrity Management We has conducted questionnaire surveys on stakeholders identified and assessed the importance of ESG substantial issues and

Improve Customer Satisfaction User Feedback Management collected more than 100 valid questionnaires covering investors employees communities and other stakeholders.After analyzing and studying the questionnaire results we sorted out the ESG important issues and compared with the issues

concerned by the same industry and the Company we formed a substantial issue matrix from two dimensions i.e. "importance

Build Career Development paths Improve the Internal Management System to the Company" and "importance to stakeholders" according to the importance of the issues.High Salary and Benefits Employee Work and Life Security

Employees

Safeguard Occupational Health Strengthen Occupational Health

Protect the Rights and Interests of Employees Employee Communication Feedback Mechanism Very high

Improve the Community Environment Strengthen Community Interaction "Three Wastes" management Water resources management Occupational health Labor relations management

Community

Organize Volunteer Activities Organize Public Welfare Activities Addressing climate change Energy management Road safety Business ethics

Staff training and development Other pollution control Road service quality

Energy Conservation and Emission Reduction Energy Conservation

Environment

Protect the Ecology Biodiversity Conservation

Supply Chain Management Create a Responsible Supply Chain

Suppliers Mutual Benefit and Win-Win Stick to Business Ethics Environmental management

Common Development Cooperation and Exchanges Contribution to community Biological diversity

Supply chain system Privacy protection

Improve Corporate Governance Improve Internal Control Level R&D and innovation

Investors Timely Information Disclosure Regular Information Disclosure

Company's Sustained Profitability Safeguard Shareholders' Interests

High Very high

Importance to the Company

2728

Importance to stakeholdersGovernance First

Depending on

Compliance Operation to

Promote Development

Scientific regulated

people-oriented and efficient.——Management Tenet of Shandong Hi-speed

Corporate Governance 31

Party Building 36

Business Ethics 39Shandong Hi-speed Company Limited

Environmental Social and Governance (ESG) Report 2023

Corporate Governance

Governance Framework In the management of the Board of

Directors the Company attaches

Shandong Hi-speed strictly abides by the requirements of relevant laws and regulations such as the Company Law of the People's The aspect of Admissionimportance to diversification and

Republic of China the Securities Law of the People's Republic of China and Governance Code for Listed Companies and has established a corporate adheres to the principle of Reasonably determine the size of the Board of Directors and the

governance framework composed of Shareholders' General Meeting Board of Directors and its special committees Board of "appropriate scale multiple checks and proportion of full-time and part-time external directors; the Nomination

Supervisors and the senior officers with complete responsibilities and mutual checks and balances. balances professional and Appraisal Committee shall review the background of directors.complementarity and two-way The aspect of System

access". The Board of Directors

Shandong Hi-speed Governance Framework includes experts in transportation Continuously improve the Articles of Association the Rules of Procedure

finance and law and provides for the Board of Directors and other systems to provide institutional basis

professional opinions and suggestions for directors to perform their duties.Shareholders' for the Company's road and bridge

General Meeting The aspect of Researchoperation foreign investment and

Board of Supervisors financial management ensuring the Combine daily research and collective research to keep in-depth

scientific decision-making of the Board understanding of the operation and major projects of the Company and

of Directors doing a good job in "six key subordinate units.Board of Directors

aspects" and improving the scientific

and efficient decision-making of the The aspect of Communication

Board of Directors. Communicate well with directors especially external directors during

Strategic Development and Compensation and Nomination daily work and before Board of Directors meetings attach importance to

ESG Management Committee Audit Committee Appraisal Committee Committee suggestions of external directors and bridge external directors with

management and shareholders.In addition each special committee of

Secretary of the Board of Directors the Company includes independent The aspect of Training

directors and external directors

account for the majority providing Organize regular group study and training for directors.General Manager

more scientific professional and

objective opinions and references for The aspect of Coordination

the decision-making of the Board of

Deputy General Manager Chief Engineer Chief Accountant General Directors ensuring that the Set up the Secretariat of the Board of Directors which is responsible for

Counsel Safety Director Chief Auditor management and operation of the coordinating the work related to corporate governance. The General Manager

Company are more compliant and shall make work reports to the Board of Directors every quarter and the

efficient. special committee shall set up corresponding departments and offices to

In accordance with a series of internal management systems such as the Articles of Association the Rules of Procedure for the Shareholders' provide assistance for the relevant work of the special committee.General Meeting the Rules of Procedure for the Board of Directors the Rules of Procedure for the Board of Supervisors and working rules of various

committees the Company continuously strengthens its corporate governance level and improves its decision-making efficiency. In

the corporate governance in order to ensure efficient cooperation among all parties the Company has actively satisfied the Key performance

requirements of the "1+3+X" corporate governance operation system i.e. taking Party building guidance as the targeted orientation During the reporting period the A total of

and making precise efforts through the three working mechanisms i.e "two-wheel driven decision-making" "counterpart liaison Company held general meetings of

service" "two communications two investigations and two reports" with a number of institutional measures as guarantee thus shareholders for Adoption of 14 resolutions

realizing the efficient and standardized operation of the Shareholders' General Meeting the Board of Directors the Board of 9 of the Supervisory Board

Supervisors and the managers of the Headquarters and units at all levels. 4times board meetings

Total number of board members

Two-wheel Driven Including 3 extraordinary Adoption of 39 resolutions

Decision-Making

Party Building's A Number of

general meetings of the Board of Directors 9

Counterpart Liaison

Leading Role Institutional Service Measures Consideration of

Two Communications 14 A total of 6 supervisory Including 4 independent Two Investigations and motions board meetings directors

Two Reports

31 32Shandong Hi-speed Company Limited

Environmental Social and Governance (ESG) Report 2023

Risk Management and Control

Case The Company's Risk Management Training

Shandong Hi-speed highly values the construction of the internal control management system of the Company. Every year led by

the Enterprise Management Department it organizes top-down system revision optimization and inspection activities reshapes

and improves various system processes in combination with the changes of national policies and the business conditions of the

Company and forms standardized and standardized work guidelines. On July 24 2023 the Company's internal audit personnel gave a

lecture. The Company's Chief Auditor all personnel of the Audit

During the reporting period we continued to optimize and improve the Risk Management Measures clarified the division of Department and relevant business backbones of each subsidiary

responsibilities risk identification and assessment standards monitoring and response mechanisms. We established a risk man- attended the lecture. Through the sharing and explanation of

agement working mechanism of "unified leadership division of responsibilities and full participation" in which the Company's typical risk cases in nine aspects such as fund control financial

legal representative acted as the first responsible person and the Board of Directors made risk management decisions. And we management and engineering management business personnel

established "three lines of defense" for risk management composed of grass-roots units departments and offices of the Head- in all lines were reminded to learn lessons from the cases so as

quarters and audit and supervision departments. to enhance the risk prevention awareness of personnel in

grass-roots units and promote the continuous improvement of

the management level of grass-roots units thus empowering

The second line of defense: The third line of defense:

The first line of defense: and increase efficiency for the Company's high-quality Departments and offices of Audit and supervision

Grassroots units. development.the Headquarters. departments.Risk Management Training

Supervise the risk management

work of grass-roots units and

Special organizations and departments of the Company Key performance

Responsible for

personnel are arranged to guide the risk identification

day-to-day risk During the reporting period

perform risk management evaluation hidden danger

management in their

and control and control investigation and other work an average training

fields. he Company conducted with a total of a total training duration of

risks in advance. and give professional duration per capita of

optimization and rectification

suggestions. 3 internal risk trainings 257participants 748 hours 2.91 hours

In May 2023 the Company sorted out and formed a risk list consisting of 138 risk points around the five types of first-level risk Compliance Management

framework i.e. strategic risk financial risk market risk operational risk and legal risk which provided effective reference for

subsequent risk identification and assessment. During the reporting period the Company continued to improve the Compliance Management Measures established a Compliance

Committee responsible for the organization leadership and coordination of compliance management. We established a professional

legal talent pool identified possible compliance risks in 23 areas such as corporate governance information disclosure

anti-corruption and anti-commercial bribery and avoided compliance risks by establishing a risk case base and sharing classic

cases. During the Reporting Period the Company organized two internal compliance trainings and organized various units to

Initiatives of the Company to Strengthen Risk Management participate in the activities of "Civil Code Publicity Month" and "Legal Publicity Month" so as to strengthen the legal awareness and

legal concept of all employees and enhance the sense of compliance management.Key performance

During the reporting period

the Company conducted of which an average of

Regular risk Deep integration of Strengthen Intervention in Take cases as a 34 260 33.15

identification and internal audit and dynamic monitoring advance to push guide to improve legal training sessions were legal personnel hours of training per capita

assessment risk management of risk events forward the "soft power" of

activities supervision risk prevention with with a total training duration of

prevention and

control 2025 67132.50

participants hours

33 34Shandong Hi-speed Company Limited

Environmental Social and Governance (ESG) Report 2023

Investor Relations Management Key performance

Shandong Hi-speed thinks highly of investor relations management. We formulates internal systems such as Connected During the reporting period

Transactions Management System Information Disclosure Affairs Management System and Information Disclosure System. Based

on sufficient information disclosure we unblocks investor communication channels listens to investors' voices maintains investor the Company held saw

relations and gradually forms the investor relations management concept of "excellent performance and sincere return". 3 80 42 27

In terms of shareholder returns the Company actively responded to the policy guidance of China Securities Regulatory offline surveys e-interactions

Commission and Shanghai Stock Exchange advocating cash dividends and dividend distribution continuity and stability. In 2020 performance briefing sessions online surveys

the Company made an important decision to increase the dividend ratio in 2019 from 36.12% to 60.07%. In the same year the

Company issued the Shareholders' Return Plan of Shandong Hi-speed Company Limited for the Next Five Years (2020-2024) promising that "in

the case of meeting the cash dividend conditions the profit distributed by the Company in cash form in the next five years Party Building

(2020-2024) shall not be less than 60% of the net profit attributable to the owners of the Parent Company in the consolidated

statement of that year". The stable dividend policy and high proportion of dividends reflect the determination of the Company to

highly value shareholder returns and maintain high-quality development. Party Building organization

Amount of Cash Dividends Percentage of Net Profit Attributable

During the reporting period the Company concentrated on "Five-type Party Building" namely: leading party building smart party

Cash Divident per Share to Owners of Parent Company in the building brand party building innovative party building and vigorous party building aiming to shape the party building brand. We Year (tax included)

Consolidated Statement continued to improve the Rules of Procedure for the Party Committee and the "First Topic" System of Party Organization Meetings insisted on

integrating Party building work into all aspects of the Company's production and operation. We adhered to Party building guidance

strengthened Party organization construction and promoted the in-depth integration of various work of the Party organization with

2019 RMB0.38 RMB 1828 mil l ion 60.07% the Company's operation and management. During the reporting period Shandong Hi-speed Party Committee had 326 grass-roots

party organizations including 36 party committees 10 general party branches 280 party branches and 3769 party members.

2020 RMB0.38 RMB 1828 mil l ion 89.66%

2021 RMB0.40 RMB 1924 mil l ion 63.05%

2022 RMB0.40 RMB 1931 mil l ion 67.63% "Five-type" Party Building

2023 RMB0.42 RMB2033 mil l ion 61.66%

Leading Party Building ·Flag leading · Thought navigating ·System escorting

In terms of investor communication the Company actively

communicates with investors through various channels such ·Build a smart party building platform Smart Party Building

as performance briefing meetings investors' visit investor ·Build a "1+N" party building performance appraisal system

hotline investor relations management column on the

Company's website investor communication group etc. We

responds to investors' concerns pays attention to protecting ·Arrange good brand layout ·Build strong brand core value

investors' legitimate rights and interests such as their right to Brand Party Building

know and the voting right and maintains a good trust ·Strengthen brand integration empowerment

relationship between the Company and investors.During the reporting period the Company was awarded the ·Innovative working model ·Innovative education carrier

Innovative Party Building

certificate of "Excellent Practice of 2022 Annual Report ·Innovative party building positions

Performance Presentation Meeting of Listed Companies"

issued by the China Association for Public Companies and Certificate of Excellent Shanghai Stock Exchange Information

was rated Grade A in information disclosure. Practice in Performance Disclosure "Grade A"

Presentation Meeting Vigorous Party Building ·Make party building "real" ·Make cadre team "active"

35 36Shandong Hi-speed Company Limited

Environmental Social and Governance (ESG) Report 2023

Party Building honors

Case 2 Welcome the CPC Founding Day on July 1 with original intention

Shandong Hi-speed Company Limited 2022 Enterprise Party Building Brand Demonstration Unit of Shandong Province On June 26 2023 soon before the CPC Founding Day on July 1

Beijing-Shanghai Ji'nan Operation Management Center

organized and arranged the activities of "Two Excellent and One

Shandong Hi-speed Company Limited 2023 Excellent Brand of Enterprise Party Building in Shandong Province Advanced" commendation advanced deeds sharing and special

party lessons in 2023 which were hosted by the secretary of

Shandong Hi-speed Company Limited Weifang "The First Excellent Party Building Brand in advanced grass-roots organizations and the secretary of the

Operation Management Center Highway Traffic Industry" Party Committee.At the meeting two secretaries guided all staff to further

Weifang Operation Management Center Excellent Party Building Brand Case strengthen their ideals and beliefs adhere to their initial mission

and contribute to "creating a road of happiness" through their

Xiajin Operation Management Center 2023 Top 20 Excellent Party Building Culture Brands in

unique point of view.Highway Traffic Industry The CPC Founding Day on July 1 with original intention

Luzhou Southeast Companyr 2023 Excellent Party Building Culture Brand in Highway

Traffic Industry

Implementation of Party Building Ideology

In order to thoroughly implement Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era enhance Party

members' sense of identity and belonging strengthen Party building governance enhance the overall quality of Party members

and promote harmonious relations between the Company and Party members the Company carried out Party building activities

and held 122 Party committees during the reporting period.Case 3 Party Building leads to the "Road of Happiness"

Case 1 Thematic Education with Ideological Guidance

The Company inherits the cultural spirit of Shandong Hi-speed

On April 18 2023 the Party Committee of the Company held develops and adheres to the "Roads in Heart" brand culture i.e.an educational work conference on the theme of "Learning and keeping the roads managing the roads and developing the

Implementing Xi Jinping Thought on Socialism with Chinese roads with heart to form the brand matrix of "Roads in Heart"

Characteristics for a New Era". The meeting thoroughly with the toll station sub-cultures "Colorful Springs" "Colorful

implemented the spirit of General Secretary Xi Jinping's Stones" and "Colorful Peaks". We implements the development

important speech and made specific arrangements for the concept of "Party Building + Culture" which says "party building

Company to carry out thematic education. The leaders of the leads the direction and culture empowers the enterprise" to

Party Committee of the Company presided over the meeting build Jinan-Laiwu Expressway into a red demonstration road a

and more than 210 people from the leading group middle-level smooth and comfortable road a scientific and technological

leaders and heads of Party workers and discipline inspection road a green ecological road and a harmonious model road.departments of the Company attended the meeting through

on-site attendance and video form.Thematic Education Work Conference Party Building leads to the "Road of Happiness"

37 38Shandong Hi-speed Company Limited

Environmental Social and Governance (ESG) Report 2023

Business Ethics

Anti-corruption and Anti-bribery Case 2 The Company's Integrity Knowledge Test

Shandong Hi-speed has formulated internal systems such as the Guidelines for Political Supervision of the Company's Discipline

Inspection Commission and the Detailed Rules for the Implementation of Discipline Inspection Work Assessment of subordinate

units. We also has set up an assessment and supervision mechanism to effectively implement anti-corruption work prevent the

breeding of corruption soil standardize the business ethics behavior of all employees clarify their responsibilities in On December 25 2023 the Company launched the 2023

anti-corruption thus creating a working mechanism that "staff dare not be corrupt cannot be corrupt and does not want to be Integrity Knowledge Test. Participants actively prepared and

corrupt". learnt relevant knowledge on their own initiative. Through this

test the employees of the Company have greatly enhanced their

Shandong Hi-speed regards the Coordination Group on Party Style Clean Governance and Anti-Corruption Work as the highest anti-corruption awareness and effectively built up a line of

governance body of anti-corruption work and the Secretary of the Discipline Inspection Commission serves as the Group Leader. defense against corruption.The work coordination group is responsible for implementing the deployment requirements of anti-corruption work and ensuring

that the Company's business practices are legal and compliant. In addition the work coordination group has a coordination

group office which is responsible for organizing and preparing meetings of the coordination group for party conduct and clean

governance building and anti-corruption work and cooperating with departments and offices to carry out anti-corruption work. Integrity Knowledge Test

We require our employees to strictly abide by the integrity regulations restrain their own behavior and enhance their awareness

of discipline and self-discipline so as to promote a win-win situation of "seeking cooperation with quality seeking market share

with reputation and promoting development with integrity". In order to totally eliminate corruption the Company continuously Key performance

improves the whistleblower protection mechanism. We have set up various reporting channels such as letters calls visits etc.to encourage all employees and partners to report suspected corruption bribery and other violations of business ethics. The During the reporting period

Company strictly follows the internal rules and procedures to carry out report acceptance investigation and feedback and the Company conducted several anti-corruption trainings

strictly deals with violators for cases once verified . During the reporting period the Company did not see any litigation cases

related to corruption.with a total of with a total of

During the reporting period the Company carried out four sessions of anti-corruption education and anti-corruption knowledge

test which greatly enhanced the integrity awareness of the Company's employees. 3187 39

employees participating in participants

anti-corruption trainings

Case 1 The Company's Clean Governance Education for the First Quarter

with an average of

a total training duration of

On February 23 2023 the Discipline Inspection Commission of the 120.15

Company held the clean governance education for the first 144

quarter and organized the cadres and staff of the Headquarters to hours of training per employee hours

watch the warning films Strict Political Discipline and Building

Strong Integrity Style Dams. The educational film told the stories

of 8 criminal Party members and cadres. They lost their beliefs Directors of Shandong Hi-speed

seriously violated the Party's political discipline and rules seriously

violated the spirit of the Eight Central Regulations and used their participated in anti-corruption

positions to seek personal gains and finally went to crime. These training for an average training duration of

films educated the cadres and workers of the company to take

these cases as a mirror examine their own integrity constantly 4 4

improve their political determination discipline determination times in total hours per capita.moral determination and anti-corruption determination and strive

to create a good political ecology for the Company.Integrity Education Conference

39 40Lush Mountains

and Lucid waters

Protecting the

Ecological

Background Color

Building Beautiful China advancing

modernization featuring harmony

between humanity and nature.——Xi Jinping's Speech at The National

Conference on Ecological and Environmental Protection

Environmental Protection 43

Utilization of Resources 47

"Three Wastes" Management 50Shandong Hi-speed Company Limited

Environmental Social and Governance (ESG) Report 2023

Environmental Protection

Case Information Group's tree planting event

Shandong Hi-speed integrates the concept of green and low-carbon development all aspects of

operation and puts it into practice. In order to strengthen the environmental management of new

and reconstruction projects the Company formulated the Environmental Protection Management

Regulations for New and Reconstruction Projects and the Environmental Protection Management System for In March 2023 the Information Group organized a tree planting event with the theme of "planting and sowing to witness

Maintenance Operations in accordance with the Environmental Protection Law and other relevant laws and the growth and glory of the Company" in the Intelligent Transportation Industrial Park. More than 500 people

regulations and established an environmental protection leading group in the Engineering participated in the event resulting in a greening area approximately 300 square meters.Management Center to maintain a good construction environment and prevent pollution sources

generated by construction projects. The subsidiary Information Group passed GB/T24001-2016

environmental management system certification in July 2020.Environmental Management System Certification

Green Office

*Improve office supplies account and expense standard and clarify online approval process.*Conserve resources by starting with the conservation of water electricity and paper power off

computers air conditioners and other equipment when leaving the office avoid using

Daily office high-energy-consuming office appliances.work *Consciously develop the habit of frugal in the office and form a good atmosphere of

advocating economy and reducing consumption for all employees.*Eradicate problems such as rough management leakage and venting through strict

examination and approval of the intelligent office system. Green buildings

*Encourage the use of new energy vehicles as supplementary or alternative for fuel vehicles. During the reporting period Weilai Operation Management Center of the Company performed energy-saving management of

*Encourage employees to engage in low-carbon travel and reduce carbon emissions by taking heating system in winter. According to the building heating demand characteristics in different areas different functions and Vehicle

management shuttle buses at relatively concentrated points in time. different periods the Center comprehensively analyzed parameters such as atmospheric temperature temperature and time of

*Strictly control vehicle maintenance and refueling management and encourage oil saving outlet and return water adjusted the heating flow by controlling the electric regulating valve on the main heating pipeline it

energy saving and consumption reduction through reward and punishment measures. had achieved optimization of heating system which not only improved indoor comfort but also reduced heating heat

consumption thus reducing heating energy consumption and saving operating costs.*Pay attention to the thrifty management of canteen and make the best use of things and materials.Canteen *Calculate the number of diners through big data to determine the production needs and avoid

Heating system

management waste of meals.*Strengthen consumption reduction propaganda in restaurants advocate the "empty plate" and Timer

service small-portion meals. Timed temperature

Intelligent heating Temperature sensor controller

*Strengthen the management of water electricity gas and heating in the Headquarters. There system Pressure sensor

Property are three modes of air conditioning operation: "night energy saving and energy consumption". Electric control valve

management *Arrange education for logistics security housekeepers cooks and other property personnel to

enhance their awareness of saving service and safety.Water

*Set up a publicity column for "energy saving and consumption reduction" activities in the Window insulation

supply Water supply

Improve thermal insulation temperature pressure

Public opinion Smart Communication and encourage all units to submit good practices of the theme. effect of hot terminal Water M T1 P1

propaganda *Launch special publicity activities of "saving starts from me" and strengthen special training on Heating pipe supply line

saving office. insulation

Return water Return water

temperature pressure

*Take energy saving and consumption reduction as one of the key tasks decompose tasks and

Assessment include them in annual assessment. Regular Water T2 P2rewards and return line

punishments *Reward acts of thrift criticize acts of waste and hold individuals accountable for serious System maintenance maintenance

consequences. Timely maintenance

4344

Buildings

Signal line

Signal line

Signal line

Signal line

Control line

Reduce heat consumption

in winter heatingShandong Hi-speed Company Limited

Environmental Social and Governance (ESG) Report 2023

Case Construction of Digital Cloud Cabin

The Information Group implements the four design

concepts - intelligence safety green and low-carbon and

constructs the Digital Cloud Cabin integrating command

cabin ticket cabin information cabin power cabin and

service cabin with energy supply engine room charge

audit and special case processing service units. Digital

Cloud Cabin gives priority to green industry and renewable

materials in material selection and actively introduces new

energy technologies. This not only helps reducing

environmental pollution and waste of resources but also

propels the process of green and sustainable development.After careful R&D and design the Digital Cloud Cabin has

entered the trial operation stage at Gushan Toll Station

Zhangqiu South Toll Station and Heze High-tech Toll Station.Green expressway Key performance

Shandong Hi-speed actively proceeds with the construction of green

demonstration road sections implements "intensive funding scientific programs Total environmental Duration of environmental Pass rate of pollutant

project prioritization and list responsibility" continuously optimizes the road investment（10k RMB ） training per capita（Hours） monitoring

environment of the sections under its management maintains a high level of road 800.61km

appearance and shows the brand image of "Shandong Hi-speed maintenance demonstration road sections with

precise and long-time lasting". In this year the Company completed 800.61km high quality up to standard 5011.92 4 100%

demonstration road sections with high quality up to standard accounting for

30.21% exceeding the annual target accounting for 77.54% of the accumulated

completion in the 14th Five-Year Plan. 8321800square meters Number of environmental Environmental accident Synchronous operation rate of

of seedlings underwent trainings（person-times） （No.） environmental protection facilities

In addition the Company carefully organized the contest of "up-to-standard comprehensive pruning

section" of the demonstration road with all units in the province selecting 1-2

kilometers for the contest and implementing the "100-day assault" activities. The additional 386 0 100%

"21550" mode for seedling pruning was adopted by Xiajin Operation Management

Center realizing the uniformity of "top side and bottom". Ji'nan-Qingdao Ji'nan 20200 Implementation rate of "three

Operation Management Center implemented section management post and seedlings being replanted Total duration of environmental Environmental violation simultaneous actions" for environmental

responsibility determination and performance fulfillment and continuously trainings（Hours） （No.） protection of construction projects

improved the image of road appearance within the driving vision.

87274500square meters

During the reporting period a total of 8321800 square meters of seedlings 1544 0 100%of slope interworking and garden

underwent comprehensive pruning with an additional 20200 seedlings being

replanted. Furthermore 87274500 square meters of slope interworking and greening were pruned and mowed

garden greening were pruned and mowed to ensure the sections under control

maintain a visually appealing appearance.

45 46Shandong Hi-speed Company Limited

Environmental Social and Governance (ESG) Report 2023

Utilization of Resources Key performance

Transformation with energy-saving technology Energy consumption

Key indicators Units 2023

Case 1 Air-energy heat-pump heating transformation

Natural gas 10k cubic meters 174.47

In 2018 Shandong Hi-speed Weihai Operation Management Center performed Gasoline 10k litres 245.21

heating transformation on Nanhai Toll Station Nanhuang Toll Station and Rushan

East Toll Station upgrading from air-conditioning heating to air-energy heat-pump

heating. In 2022 Wendeng North Toll Station was also renovated for heating. Diesel 10k litres 118.64

After heating transformation the average electricity consumption per hour of Liquefied petroleum gas Tons 102.06

the four toll stations is: 142 kilowatt hours for air conditioning heating 55

kilowatt hours for air energy heat pump heating saving electricity consumption Fuel oil Tons 23.23

totally about 61.3%. Compared with air conditioning heating air energy heat

pump heating lasts for a longer time with continuous temperature and

remarkable energy saving effect. Liquefied natural gas Tons 0.48

Air energy heat pump

Total purchased electricity 10k kWh 9893.64

Total purchased heat GJ 20518.55

Case 2 Ultra-low temperature air-energy heat pump unit heating transformation

Greenhouse gas emissions

Beijing-Taibei Ji'nan Operation Management Center planned to use ultra-low temperature air energy heat pump units for

heating and arranged special hot water units to provide domestic hot water bath. It is estimated that the annual Greenhouse gas emissions (Scope I) Tons of carbon dioxide equivalent 12633.09

operation cost can save 20%-30%.Greenhouse gas emissions (Scope II) Tons of carbon dioxide equivalent 87270.55

Total greenhouse gas emissions Tons of carbon dioxide equivalent 71313.64

Total greenhouse gas emission intensity Tons of carbon dioxide equivalent/ one million RMB 2.69

Comprehensive energy consumption※ Tons of standard coal 19430.76

Comprehensive energy consumption density Tons of standard coal/ one million RMB 0.73

Note:

1. The Company acquired Shandong Hi-speed Information Group Co. Ltd. in 2023 which increased the scope of consolidation.

2. In order to further improve the operation and management level the Company carried out intelligent transformation resulting in an increase in electricity

consumption.

3. In order to further enhance the experience of drivers and passengers the Company upgraded and remodeled the lighting facilities at toll stations and other

places resulting in an increase in electricity consumption.

47 48Shandong Hi-speed Company Limited

Environmental Social and Governance (ESG) Report 2023

Water-saving transformation "Three Wastes" Management

Case Tap water transformation project

Wastewater Treatment Case

Application of new foam

aluminum noise barrier

The original office area of Weifang Road Management Sub-center of the Company adopts underground deep well In order to ensure the normal operation of sewage

submersible pump and above-ground pressure tank for water supply. In order to respond to national policies and further treatment system Shandong Hi-speed has formulated With the continuous expansion of expressways traffic noise

promote energy conservation and emission reduction targets Weifang Operation Management Center has organized and Regulations on the Management of Sewage Treatment pollution hazards will inevitably occur to environmental

implemented municipal tap water transformation project. Through the transformation the Operation Management System and Measures for the Management of Sewage sensitive points such as residential areas and schools along

Center adopts municipal tap water supply which can control the water supply quantity more accurately make full use Treatment Equipment which stipulate in detail the the line. Shandong Hi-speed selects a new type of foam

of the water resources of the urban water supply system and fully improve the full utilization of water resources which management of sewage treatment system in aluminum sound barrier which is an aggregate composed

has positive significance for continuously promoting the Company's energy conservation and emission reduction. Operation Management Center and service area of bubbles and aluminum diaphragms. It has technical

under its jurisdiction. The following sewage treatment characteristics and advantages such as irregularity and

methods are as follows: three-dimensional of bubbles.* Electrical and mechanical staff regularly inspect

equipment during operation of sewage system.Sewage treatment equipment shall be inspected

once a day and the inspection information shall be

recorded in the Inspection Record Form of Sewage

Treatment Equipment.* The sewage of mixing station shall be purified and

precipitated first and the treated clean water shall

be used for vehicle cleaning road surface watering

structure maintenance etc. Other unusable

wastewater shall be discharged into sewage

Digital management pipeline after treatment and inspection.Key performance * Laboratory wastewater shall be collected by New Type of Foam Aluminum Noise Barrier

Information Group's Introduction of classification according to laboratory management Case Integrated Energy Management System methods and uniformly delivered to qualified

wastewater treatment institutions for disposal.Amount of Waste Generated

The Information Group introduced HAMDELL an integrated energy management

system that enables detailed and independent measurement of energy consumption Waste Residue Disposal

at various locations focusing in particular on the consumption and safety of Key Indicators Units 2023

electricity and water resources. Through this system the Information Group's electric

energy and other energy data can be fully collected and independent energy Construction waste residues shall be collected and Waste Lamp Tube Piece 2487

consumption accounting can be done according to units and sub-items so that transported to waste treatment station for disposal as

management personnel can clearly know the usage and consumption status of required. Waste Printer Cartridge No. 4572

various types of energy and then effectively identify excessive energy consumption

points and unreasonable energy consumption habits. Waste Battery No. 8481

Waste Ink Cartridge No. 2225

In 2023 the total water Noise Treatment

consumption of the Waste Lamp Cartridge No. 55By installing noise barrier facilities the noise hazard

Company was caused by expressway operation to the sensitive Waste Paper Bag 10379

points of acoustic environment along the line can be

814000 effectively eliminated or mitigated. Domestic Waste Ton 703.96 tons.

Integrated Energy Management Integrated Energy Management

Platform Real-time Monitoring Kitchen Waste Ton 196.09Platform Video Surveillance

49 50Innovation-driven

Safe Production for

Quality Assurance

Quality in mind and action leads to

perfection.A hundred ways and a thousand

orders for guaranteed safety.——Safety Concept of Shandong Hi-speed

Innovative R & D 53

Product Quality 57

Safe Production 61Shandong Hi-speed Company Limited

Environmental Social and Governance (ESG) Report 2023

Innovative R & D Key performance

Shandong Hi-speed attaches great

importance to innovation and R&D. The R&D Center Organizational Structure

Company has formulated the Measures for the Key indicators Units Year 2023

Management of Innovation Work to promotes Management

the smooth realization of the Company's Committee

strategic objectives and tasks and promote Total number of R&D team members Person 1018

the systematization standardization Chairman

specialization and institutionalization of Proportion of R&D personnel to the total

innovation work. The Company creates a Technical n u m b e r o f e m p l o y Vice Chairman ees in the Company

%9.46

good innovation environment speeds up the Committee

sharing and transformation of achievements

strengthens the promotion and application of Doctor Person 3

achievements constantly innovates the Master Person 233

system mechanism increases investment By

creates a scientific innovation platform and e ducation Bachelor Person 668

strives to solve development problems.Junior College Person 93

The Rail Transportation Company has set up High school or below Person 21

a Research and Development Center which

is managed by the management committee

and consists of five research institutes. Under 30 (exclusive of 30) Person 217

30-40 (inclusive of 30 exclusive of 40) Person 465

By age

Research and development platform 40-50 (inclusive of 40 exclusive of 50) Person 273

Shandong Hi-speed actively cooperates with the government and universities to establish many R&D platforms. 50-60 (inclusive of 50 exclusive of 60) Person 63

Platform names Accreditation authorities

Academician Workstation of Shandong Province Science and Technology Department of Shandong Province

Enterprise Technology Center of Shandong Province Development and Reform Commission of Shandong Province

B ridge and Tunnel Engineering Maintenance Technology and New Material Industry R&D Center of Shandong Province Department of Transportation of Shandong Province

Enterprise Technology Center of Yantai City Department of Industry and Information Technology of Yantai City Major innovations

Key Laboratory of Water Pollution Prevention and Control

o f Weifang City Science and Technology Bureau of Weifang City Shandong Hi-speed’ s science and technology innovation focuses on solving practical problems in expressway construction and

Transportation Safety and Simulation Technology R&D Center Competent Authority of State-owned Assets operation taking "improving quality reducing cost and increasing efficiency" as the goal orientation. First accelerate the

R&D Center for Key Technologies of Expressway Intelligent construction of information highway and intelligent highway and inject continuous power for and high-quality development of

O peration Competent Authority of State-owned Assets highway. Secondly with the goal of digitalization of facilities specialization of maintenance modernization of governance

R &D Center of Construction Quality Improvement and Key efficient operation and high quality service promote the "Four New" technology of maintenance and comprehensively improve Technology for Expressway Reconstruction and Expansion Competent Authority of State-owned Assets the maintenance ability and road condition level.R&D Center of High-performance Foam Aluminum New

M aterial Technology and Application Competent Authority of State-owned Assets

Transportation Safety and Simulation Technology R&D Center Shandong Hi-speed Group Jinan-Qingdao Expressway has made remarkable achievements in scientific and technological innovation and won 40 scientific

R&D Center for Key Technologies of Expressway Intelligent and technological awards including 24 provincial and ministerial awards. These achievements fully demonstrate the outstanding

O peration Shandong Hi-speed Group contribution of Jinan-Qingdao Expressway in science and technology intelligence and green environmental protection and

R&D Center of Construction Quality Improvement and Key successfully shape the model image of the road of science and technology intelligence and green environmental protection.T echnology for Expressway Reconstruction and Expansion Shandong Hi-speed Group During the reconstruction and expansion of Jinan-Qingdao Expressway the green science and technology demonstration

R &D Center of High-performance Foam Aluminum New Shandong Hi-speed Group project implemented by us was listed as the Science and Technology Demonstration Project by the Ministry of Transport and

Material Technology and Application the Supporting Project for Shandong Demonstration Zone of "Traffic Makes the Country Stronger". The project focused on 5

special key technologies and covered 30 science and technology demonstration sub-projects.

5354

Institute of Railway Equipment

Maintenance and

Management Technology

Institute of Digital Intelligence

Institute of Intelligent

Freight Railway

Institute of Advanced Materials

Industry Technology

Institute of Intelligent Manufacturing

and Advanced EquipmentShandong Hi-speed Company Limited

Environmental Social and Governance (ESG) Report 2023

Technology Innovation

type achievements Key performance

We adopted in a large scale the pavement milling material recycling technology waste concrete Key indicators Units 2023

Recycling recycling and waste guardrail recycling for the first time in China to achieve 100% utilization of old asphalt old guardrail realizing not only significant economic benefits but also green environmental R&D investment Ten thousand RMB 48427.32

protection.Proportion of R&D investment in main business income % 1.82

Road filling We widely promoted the subgrade filling with industrial waste such as slag red mud etc.; we used Bayer Innovation achievements

with waste process red mud to build an expressway for the first time and reached the international leading level.Cumulative number of patents granted No. 417

Resistance to The application of anti-icing technology and fog induction system in the sections of extra-large bridges Cumulative number of invention patents granted No. 230

bad weather and large structures can ensure driving safety in bad weather which has great economic and social

benefits. Cumulative number of utility model patents granted No. 163

Cumulative number of design patents authorized No. 24

We actively apply intelligent monitoring of expressway traffic information comprehensive perception of

Cumulative number of software copyrights No. 175

Intelligence traffic weather and other technologies promote the construction of "Expressway Cloud"

technology comprehensively build "unmanned toll station with full payment" "ETC non-stop toll collection" and Cumulative number of published papers No. 124

"highway electronic inspection" build "Internet +" intelligent travel service platform for expressways and

create "Highways of Intelligence" efficiently. Total number of trademarks No. 35

National high-tech enterprise No. 13

Innovation incentive RDI enterprise No. 9

Shandong Hi-speed has formulated the Intellectual Property

Management System incorporated the intellectual property Blueprint of "1341" Digital System

management work of each subordinate unit into the

comprehensive performance appraisal system and regularly Case 1 Participation in Science and Case 2 Information Group hosted

conducted on-site inspection on the information submission and Technology Innovation Forum the 25th China Expressway

work development of each subordinate unit. In accordance with Informatization Conference

relevant national laws and regulations the Group's Measures for the Shandong Hi-speed displayed the achievements of "Four

Management of Science and Technology Projects the Company's 1 3 Themes" i.e. green maintenance in the whole life cycle and Technology Products ExpoMeasures for the Management of Innovation Work and other relevant Strategy Actions research and development of bridge maintenance

regulations the Company has formulated the Measures for the technology and materials safety improvement of traffic From March 30 to 31 2023 Information Group hosted

Management of Transformation of Scientific and Technological Achievements facilities and digital improvement of maintenance operation the 25th China Expressway Informatization Conference The overall strategy Promote the three key tasks

to encourage employees to carry out inventions and creations for thedigital upgrade of digital new infrastructure at the forum reflecting the Company's development and Technology Products Expo with the theme of

promote scientific and technological progress cultivate of the Company. industrial digitalization achievements in accelerating the transformation from "Innovation Integration and High Quality Development".independent intellectual property rights push the application and and digital industrialization. element-driven to innovation-driven and transformation of The Expo was the highest annual event in the field

transformation of scientific and technological achievements of the maintenance to green low-carbon intelligent and efficient. A showing the latest achievements in the research and

Company and advocate the use total of 245 maintenance innovation achievements were development and application of highway information

of patent system to protect collected and the Company won one first prize two second technology products including innovative practical

independent research and prizes seven third prizes and 13 excellent prizes for scientific achievements such as "Smart Brain" "new generation

development achievements. and technological innovation achievements in maintenance cloud toll" and "zero carbon" expressway attracting 4 1 management. The Technical Guide for Expressway Barrier many industry experts' eyes and the response was very Directions Ecosystem Reconstruction won the Excellent Award for Innovation good.The subsidiary Information Group Achievement Promotion.has passed GB/T 29490-2013

Intellectual Property Management Data standardization Digital industrializationdata sharing data valorization derivative ecosystem.System Certification in October data capitalization.

2023﹒

GB/T 29490-2013 Intellectual Property

Management System Certification

55 56Shandong Hi-speed Company Limited

Environmental Social and Governance (ESG) Report 2023

Product Quality Charging service quality m anagement objective Completion details

Charging speed Up to standard.Product quality management

Shandong Hi-speed takes "serving the public and contributing to the society" as its unshirkable responsibility and obligation. Through Entry license plate input accuracy The entry license plate input accuracy rate was 99.97%.scientific operation and careful care of roads and bridges Shandong Hi-speed provides fast smooth beautiful and civilized "Safe

Roads" for drivers and passengers building each road and bridge into a thoroughfare for people flow logistics information flow and Effectively improved the quality of fee-based services; received a total of Responsible complaint rate

capital flow to create benefits and also building each road into a fulcrum to extend modern civilization and carry public hopes. 1322 complaints and no complaints were caused by the Company.Customer service satisfaction The customer service satisfaction was 98.81%.Miss rate The miss rate was 0‰.The Company's quality policy can be summarized as follows:

Road management service

q uality management objectives Completion details

The compliance rate of "arrival at the scene in 20 minutes for accident-prone

Time of arrival at scene s ections" was 100%.The compliance rate of "clearing fault vehicles and general accident vehicles

Time of obstacle clearing i n 30 minutes for accident-prone sections" was 100%.Continuously improve the service Provide fast smooth Serve the public

quality of charging maintenance beautiful and civilized "Safe Road" contribute to society

road property for drivers and passengers. repay shareholders and Achieved "no traffic jam caused by management reasons for more than 1.5 Duration of traffic jam

information/electromechanical develop employees. h ours" and "no traffic accidents caused by management responsibilities".equipment and travel.A total of 214 complaints were received and no accountable complaints

Responsible complaint rate w ere caused by the Company.The Company successfully passed the ISO 9001 Quality Management System Certification in December 2001 and was the first road

and bridge operation enterprise in China meeting the requirements of ISO 9001-2000. In August 2023 the two systems passed the A chieved "no concealment late reporting omission and misreporting of

supervision certification audit again. Important information reporting information on serious emergencies" and "no adverse consequences caused

b y inadequate supervision on road-related construction sites".Quality management objectives for

in formation/electromechanical equipment Completion details

No major electromechanical equipment failure occurred and the integrity

2023 goals achieved Electromechanical equipment integrity rate r ate of electromechanical system equipment was 99.99%.

All units closely centered on the objectives and tasks at the beginning of ETC lane transaction pass rate The ETC lane transaction pass rate was 99.94%.the year. Combined with the actual situation of the units they

implemented responsibilities strengthened measures performed various

T ravel service quality tasks well and further improved the quality management ability. All the management objectives Completion details

assessment indicators reached the quality target standards.Hotline service satisfaction rate The hotline service satisfaction rate was 99.79%.T imely accuracy of road condition information release The timely accuracy of road condition information release was 99.90%.

57 58Shandong Hi-speed Company Limited

Environmental Social and Governance (ESG) Report 2023

Key performance

Occupational health

During the reporting period Shandong Hi-speed arranged quality risk assessment for 4 times.Shandong Hi-speed abides by the Law on Prevention and Control of Occupational Diseases and other relevant laws and regulations

Key indicators Units 2023 continuously strengthens occupational health and safety management eliminates potential occupational health risks and creates a

healthy and safe working environment for employees by regularly organizing physical examination for employees carrying out special

occupational health training and distributing relevant health and safety materials to employees on special posts. In addition we passed

Number of quality culture trainees Person-time 2939 GB/T 45001-2020/1S0 45001:2018 Occupational Health and Safety Management System Certification.In the process of work we have taken health hazard protection measures.Total hours of quality culture training Hour 184316.00

Labor protection

Number of quality culture training sessions No. 11

The management of labor protection articles shall follow the principle of "ensuring safety reliable quality less waste

and equipping as needed" so that labor protection articles can really play a role in protecting the safety and health of

Hours per capita of quality culture training Hour 62.71 workers.Protection of workers

Labor protection articles or appliances for operators mainly include: safety helmet respiratory protection eye

protection hearing protection protective shoes protective gloves protective clothing fall protection etc.Digital management

Focusing on the operation and management of expressways the Company has built a digital system for the business

management of expressway toll collection road management road bridge and tunnel maintenance and comprehensively Each unit's protection measures

strengthened the quality control of expressway road and bridge operation management.Each unit shall distribute corresponding operation protective articles or appliances to the operators according to their

work nature and working conditions and establish an account for distribution of labor protective articles and

Digitization project Project content appliances.*The system realizes the functions of highway toll data reporting toll station flow toll Each unit shall strictly supervise the correct wearing and use of labor protection articles by the operators on duty.Construction of charge amount query account splitting data query and statistics etc. Those who fail to wear and use labor protection articles according to regulations are prohibited from taking up duty.information management

system charge business *A scientific charging inspection and evaluation index system with multiple levels and

inspection and assessment factors realizes the flexible adjustment of the key work of the Company towards the

management system subordinate units and fully realize the quality control of charging business

management.Key performance

*Realize the patrol management office work management road-related construction

Construction of charge management and other business management of expressway management.information management Key indicators Units 2023

*Connect the case information of the intelligent brain system of the Group uniformly

system

summarize the road-related compensation obstacle clearing and rescue data form a Certificate rate of special-work operators % 100%

case database and aggregate GPS portal intelligent brain travel and other data.O ccupational injury insurancecoverage for employees % 100%

*The intelligent robot of tunnel vault acquires data such as tunnel structure

Construction of intelligent deformation and crack with 3D scanner high-definition camera infrared camera and Employee medical examination coverage % 100%

inspection robot and analysis environmental monitoring sensor transmits massive high-definition data to the

decision system background by 5G communication technology and automatically identifies diseases New occupational diseases No. 0

by artificial intelligence technology.

59 60Shandong Hi-speed Company Limited

Environmental Social and Governance (ESG) Report 2023

Safe Production The Company implements the responsibility system for safe production of all employees and has signed the safe

production Management Responsibility Letter and the Post safe

Shandong Hi-speed insists on "people first and life first". During the reporting period the Safety Management Department revised 6 production Responsibility Letter at various levels. At present we

management systems including the Measures for the Management of Safe Production the Measures for the Management of Safety Funds and the have pas sed GB/T 45001 -2020/ 1S0 45001 : 20 18

Comprehensive Emergency Plan for Safe Production Accidents. Occupational Health and safe production Certification. The

Company successfully passed OHSAS 18001 Occupational

Health and Safety Management System Certification in

Production safety committee 2006. In August 2023 the two systems passed the supervision certification audit again.The Company implements unified leadership and hierarchical management in terms of safe production. The Company establishes the safe

production Committee (hereinafter referred to as "Safety Committee") and the Chairman of the Board serves as the Director of the Safety

Committee. The Office of Safety Committee is responsible for organizing safety assessment of all units and commending and rewarding GB/T 45001-2020/1S0 45001:2018 Occupational

units departments and individuals that have made outstanding achievements or made outstanding contributions in safe production. In Health and safe production Certification

2023 the Company set the goal of "no safe production liability accident with serious injury or death of employees throughout the year".

Description of units Organizations established

High-risk production and operation units with

more than 300 employees Establish the safe production Committee.Other units Establish the safe production or safe production

Leading Group.Production safety inspection

The Company actively carries out safe production inspection which is mainly divided into comprehensive inspection and special inspection."126" safety assurance

Organize and conduct At least once a month; the annual safety inspection scope covers all units

comprehensive safety inspection

Comprehensive at the next lower level; and spot checks are arranged on grass-roots units; regularly considering the actual

inspection comprehensive safety inspection of each grass-roots unit shall not be less work conditions and aiming at

"1 Core" Implement the safety responsibilities of all employees the main responsibilities of than once a month and the monthly safety inspection scope shall cover all the safety foundation and production and operation posts and places.high-risk units and key units and the responsibilities of relevant parties. grass-roots management work.Targeted safety inspection The special safety inspection of each unit shall be organized and

"2 Directions" Toward the directions of innovation-based development and active management-based Special arranged according to key work conducted according to the actual work conditions and the scope of

development. inspection such as special safety activities special safety inspection shall cover all subordinate units participating in

and special period safety special activities.guarantee.·Make the foundation sound. ·Optimize the management system.· Set up new industry safety

"6 Key Tasks" standardization benchmarks. ·Improve the safety quality of all staff.· F o c u s o n p r e v e n t i o n f i r s t a n d · Deepen safety digitalization Risk identification and assessment

special rectification. and standardization upgrading.Shandong Hi-speed has conducted accident risk assessment and emergency resource investigation before preparing

emergency plan according to the requirements of the Law on safe production and the Management Measures for Safe Production Accident

Emergency Plan and prepared and finalized the Safe Production Accident Risk Assessment Report.

61 62Shandong Hi-speed Company Limited

Environmental Social and Governance (ESG) Report 2023

Risk category Risk description Risk hazard Hidden danger investigation

All staff who find potential accidents in the workplace shall immediately report to the responsible person of the unit the

Serious collapse of subgrade and The safety of roads bridges and tunnels is related department or the relevant safety competent department and production department or report them through the "Shoot Now" Collapse

accidents of pavement of high-grade highway or

to the survival and development of the Company APP. The Company implements the reward and punishment system for safe production reporting.roads bridges fracture and collapse of bridge or

and furthermore it is related to the operation order

of the national economy the safety of people's lives

and tunnels in collapse of tunnel resulting in

operation serious traffic accidents or long-term

and property and the protection of national defense

traffic interruption. readiness. It has a wide range of influence and The Company formulates the following procedures for hidden danger investigation:

poses great harm upon overall assessment.Explosion A large-scale fire in the parking lot The service area is a public place with the most All units and

accident of or gas station of the expressway

The problems and After the rectification

dense population along the expressway threatening departments shall

service area causing serious accident hidden complete the The problems and of the problems and parking lot and public safety and causing serious losses to the

gas station in accidents such as explosion of gas

dangers found in the hidden dangers hidden dangers found

country and people's lives and property. It has a rectification of the safety inspection shall discovered in the in the safety

expressway station and chain explosion of parked wide range of influence and poses great harm upon problems and hidden

vehicles (especially dangerous be fed back to the safety inspection shall inspection is service area overall assessment. dangers found in the

chemicals vehicles). inspected unit or safety inspection be rectified by the completed the

department in the within the specified main responsible inspection unit or

form of Potential Safety time limit and report persons of the units department shall

Hazards Rectification Notice to the inspection unit and departments to recheck the rectified

Safety accident Casualties and property loss or inspection or department in the which they belong. situation confirm that

of construction accidents suddenly occur in the It not only causes casualties and property losses notification or on-site form of the Report on the rectification is

engineering construction process of buildings but also has a serious impact on the Company's inspection form. the Rectification of qualified and make a

production civil engineering electromechanical reputation and benefits. Potential Safety Hazards. record accordingly.and municipal construction.The high temperature of the production workshop

Safety accidents in the foam the poor working environment and the dangerous

Safety accidents aluminum production processing operations involving high-altitude operations and

in metal rolling handling and other production and lifting operations will have a serious impact on the

works operation process. reputation and benefits of the Company once safety

accidents occur.Key performance

Fire accidents in the high-rise There is a high possibility of reaching a large fire.Fire accident buildings and other places used by Once a large fire accident occurs it is easy to cause

in high-rise the production and operation office casualties and property losses and the impact During the reporting period

building of the Company and all subordinate range is wide and the harm is huge.units. the overall hidden danger 2379 and the investment amount investigation and rectification of safe production was

rate of Shandong Hi-speed

safety emergency drills

Safety accident Production safety accidents in the and its subsidiaries was The use of hazardous chemicals and dangerous RMB 68.9million

in operation and production and operation process were carried outoperations such as high-altitude operation and

production of such as water operation solid waste confined space will have a serious impact on the

environmental disposal hazardous waste disposal 100%reputation and benefits of the Company once a

protection food waste and kitchen waste safety accident occurs.project disposal.

63 64Shandong Hi-speed Company Limited

Environmental Social and Governance (ESG) Report 2023

Emergency plan and drill Shandong Hi-speed strengthens the safety management of dangerous operations of contracting leasing and other units and

foreign operation teams and undertakes the obligation of reporting dangerous operations. For construction projects under

Shandong Hi-speed has formulated the Comprehensive Emergency Plan for Safe Production Accidents and set up the emergency rescue general contracting the general contractor shall arrange unified coordination and management of dangerous operations on the

headquarters for safe production accidents with Chairman or General Manager as the general commander. construction site. In addition the Company has actively promoted the informatization construction equipped itself with safe

production informatization related equipment and standardized the use of safe production management information system.Number of

Type Drills a s s e s s m e n t s Emergency measures

At least one comprehensive

Companies and emergency plan drill or special Emergency Emergency rescue teams may not

units (operating emergency plan drill shall be preparedness be established but part-time

units in organized every year at least one drill assessment at emergency rescue personnel shall

non-high-risk shall be organized for all special least once be designated and emergency

and non-densely Safety education and trainingemergency plans every 3 years and at every 3 years rescue agreements may be signed

populated least one drill shall be organized for all with adjacent emergency rescue

places) teams. Shandong Hi-speed implements classified and graded safety training. Each unit shall formulate safety training plan every year on-site disposal plans every year. and organize safety training for all employees. Employees who have not passed safety training shall not work on duty.High-risk At least one comprehensive or

production and special emergency plan drill shall

be organized every six months at Emergency business units Establish a emergency rescue team Level Personnel type Training method

and business least one drill shall be organized for

plan and file them according to

all special emergency plans every assessment at units in densely regulations.populated two years and at least one drill

least once Main responsible persons and safe production The initial safety training time shall not be less

shall be organized for all on-site every 2 years management personnel of high-risk production than 32 hours and the annual retraining time places

disposal plans every six months. and operation units shall not be less than 12 hours.Management

Main responsible persons and safe production The initial safety training time shall not be less

management personnel of units involved in than 48 hours and the annual retraining time

hazardous chemicals and construction shall not be less than 16 hours.All units' new employees employees who have left Pre-job safety education and training shall be

Case Tunnel safety emergency work site meeting their posts for more than 6 months or transferred conducted in a timely manner. The pre-job safety to other posts as well as relevant employees who training time shall not be less than 24 class

adopt new processes new technologies new hours and the annual retraining time for all

New materials or use new equipment. employees shall not be less than 12 class hours.On June 20 2023 the Company organized the tunnel safety emergency work site meeting to watch the fire disposal employees

video of Panlongshan Tunnel in Tai'an Section of Qingdao-Lanzhou Expressway conduct warning education and study New employees of hazardous chemicals and

arrange tunnel fire accident simulation responsibility check organize tunnel emergency response drills and further other units Not less than 72 class hours

strengthen tunnel emergency response capability.New employees of construction enterprises No less than 32 class hours and no less than 20

class hours for retraining every employee every year

It must be carried out by a safety training institution

with corresponding qualifications and personnel

Special

Special operation personnel must obtain the special operation license issued by operation the safe production supervision and management

personnel department or other relevant industry competent

departments before they can take up its post.

65 66Shandong Hi-speed Company Limited

Environmental Social and Governance (ESG) Report 2023

The Company has built its own safety trainer team and encourages other units to actively select and train internal safety Key performance

lecturers from excellent backbones in their respective business fields. Each unit shall sign safety agreement with external

operation unit specify safety education and training requirements and supervise safety education; educate and inform external

visitors study personnel etc. about safety regulations risks and emergency knowledge. During the Reporting Period The safety education and the safety risk protection

Shandong Hi-speed and its training coverage rate of training coverage rate of

The Company requires each unit to hold a "morning meeting" presided over by the shift leader or team leader according to the subsidiaries invested a total of

characteristics of production and operation taking the first-line production and operation units such as teams or workshops as a unit.RMB3970900 100% 100%

Case 1 Mobilization and deployment meeting for the "Safe Production Month" activity in safety education and training

On June 5 2023 the Company held a mobilization and deployment meeting for the "Safe Production Month" activity

which involved overall requirements andl arrangements for various safe production of the Company around 14 activities of

four major topics. Deputy General Manager gave a lecture under the theme "Everyone cares for safety and everyone Arranged Participated in

knows how to response to emergency".

169677279

safety education and safety education and

training sessions training sessions

Conducted training for

no less than

Case 2 Safety management training 127008 hours

On June 14 2023 the Company organized and carried out safety management training in combination with the fourth

reading class of thematic education invited external experts to give lectures on the topic of "How to effectively implement the

responsibilities of safe production subjects" interpreted the requirements of laws and regulations learned the spirit of documents

and exchanged accident cases.

67 68Serving Customers

for Mutual Benefit and

Common Progress

Smile service beyond expectations

sincere and far-reaching.——Service Concept of Shandong Hi-speed

Customer Rights 71

Information Security 77

Supply Chain Management 83Shandong Hi-speed Company Limited

Environmental Social and Governance (ESG) Report 2023

Customer Rights In order to give full play to the consultation rescue and complaint functions of the travel service hotline improve the service quality of the hotline establish a standardized hotline service quality inspection mechanism provide high-quality travel

information services and strengthen the management of information service staff the Company strictly implements work

Shandong Hi-speed attaches great importance to customer service and is committed to improving the modern management level of discipline and dressing standards ensures good working conditions and establishes a favorable social image of the Company.expressways to ensure the safety and smoothness of road operations. On June 302023 Shandong Hi-speed issued the Management Measures

for Road Operation Information Release and other systems. The expressway travel information service shall follow the following principles:

Service Hotline Process

Unified leadership and Classified management Timely accurate

graded responsibility and standardized disposal civilized and efficient Answer the hotline

Customer complaint process Judgment

According to the principle of "Unified management classification and categorization graded treatment and return-visit

evaluation" Shandong Hi-speed has formulated 96659 Service Hotline Management Measures and Complaint Handling Management

Measures in combination with actual work. According to the categories of information information is divided into: Inquiry Rescue Complaint

Complaint When the information service staff receives the complaint information he will ask the complainant's

information name contact information complaint content and other relevant information in detail. Direct handling or not Safety tips Pacify emotion

Yes No

Report and When the information service staff receives the alarm information he will ask the alarm person's Answer immediately Reply later Record information Whether the complaint

Yes

requesting position direction alarm reason and other relevant information in detail and notifies the road is dismissed

information management or other relevant departments in time. No

Notify dispatch and road

management staff Record information

Inquiry When the information service staff receives the inquiry information he will answer it according to the

information inquiry content and note the name and contact information of the inquirer whose inquiry cannot be

answered immediately and reply it after investigation. Confirm the completion

of incident handling Is phone call transfer needed

No Yes

Complaint Handling Flowchart Transfer Answer

No

Initiated First screening Accepted Full-process

supervision Satisfied or not

Follow-up Undertaken

Case sheet

feedback

Reviewed by leaders of Reviewed by the Company's Yes

subordinate units business departments

Archiving Reviewed by the Filingbusinessdepartment leader

End End of service

7172

StartShandong Hi-speed Company Limited

Environmental Social and Governance (ESG) Report 2023

Digital upgrading

Case 1 Work deployment of Case 2 CRM Management System of the Information Group

According to the overall work deployment of the Company's digital "paper-to-electronic" invoices

transformation with the overall goal of achieving "Digital Shandong

Hi-speed" provide digital support for building "a domestic first-class According to the national expressway In order to realize the digitalization of business opportunity and customer management the Information Group has

infrastructure investment construction and operation service provider". manual toll lane "paper-to-electronic" work introduced CRM management system. The system covers basic data of business opportunities and customers as well as

deployment since February 20 2023 work plans collaborative tasks leader comments operation logs and other data of business opportunities forming a data

Reinforce the Shandong Province expressway toll station support for scientific decision-making of business opportunities and featuring the traceability of the whole process. With

digital "New "Cloud-network-edge-end" integrated "New manual toll lane (including self-service the application of this system the Company has realized the intelligentization of business opportunities and customer

Infrastructure" Infrastructure" base payment lane) will use toll electronic analysis and greatly improved work efficiency and decision-making level.base invoice from then on. For toll stations that

have enabled electronic invoices manual

toll lanes (including self-service payment

Improve the Digital operation capability data service capa- lanes) wi l l no longer prov ide paper

"Three bility digital output capability invoices and drivers and passengers can

Capabilities" get electronic invoices through "Manual

Toll Electronic Invoice Mini Program of

Shandong Province" "Ticket Stub Mini

Key core technology innovation highland enter-

Build "Four Program" or "Changhetong APP".prise digital intelligence sharing demonstration

Highlands" highland digital ecological cultivation highland and

digital economic industry development highland CRM Management System

Build " One Jinan-Qingdao Expressway Digital Upgrading

Demonstration Demonstration Project

Project" Travel service emergency management

Shandong Hi-speed ensures that road operation information will be released to the outside and inside in a timely and accurate

manner in the case of abnormal emergencies and major traffic accidents and that important events will be reported in time. In

June 2023 Shandong Hi-speed issued Emergency Plan for Public Travel Information Service Guarantee.The Company established an emergency response management leading group composed of the leaders in charge of road and

bridge operation of the Company as the group leader the main responsible persons of the Operation Division and each road

and bridge operation management unit and the responsible persons in charge and established an emergency coordination and

guarantee group for public travel information service and an emergency response group for public travel information service to

undertake specific emergency response work under the leadership of the emergency response management leading group.Reporting process of important events in the operation dispatching sub-center

Yes

No Handle it according to the abnormal

road condition incident handling process

7374

End

Data filing

Submit materials

within 50 minutes

Incident handling

completed

Send incident report

every 15 minutes

The platform report

information within 5 minutes

Report via telephone

within 2 minutes

Is it a major incident

Verify incident information

Incident happensShandong Hi-speed Company Limited

Environmental Social and Governance (ESG) Report 2023

Customer service training

Case 2 The second business training of the Information Group Marketing Service Center

Every year the Company conducts satisfaction surveys on all subordinate units and service areas of expressway transportation

management through internal surveys and external third-party surveys to achieve full coverage.On October 82023 Information Group launched the second business training for marketing service center with the theme

According to the annual work plan of the Operation Division each road and bridge operation unit formulates an annual training of zero carbon intelligent expressway technology of Jinan-Qingdao Middle Line. Through this training all employees have

plan for its travel service business and organizes at least one business training activity every six months: deepened their understanding of the business which is conducive to promoting the smooth development of the business.The training includes information collection submission and review system platform operation 96659

Special hotline training etc. After the training the business examination is conducted and the training plan

training training courseware sign-in form training plan training photos examination questions transcripts

training summary and other materials are summarized.Through desktop deduction online drill on-site drill joint drill and other ways the ability to deal with

Simulation road congestion traffic accidents severe weather and other coping capabilities will be specially

drill improved and the drill scheme drill plan drill topic sign-in sheet drill photos drill summary and other

materials will be summarized.Skill Organize information disposal 96659 answering complaint handling and other special or comprehensive

competition skills competitions summarize implementation plans schedules personnel lists competition photos

competition summaries and other materials.The Second Business Training of the Marketing Service Center

Key performance

Case 1 The first business training of the Information Group Marketing Service Center Customer service hotline

Customer complaints Customer complaints resolved responses

On May 4 2023 Information Group launched the first 3655 3655 550263

business training for marketing service center centering

with two themes: new energy technology smart tunnel

and intelligent video analysis aiming to improve the

business ability of all employees and promote market Customer service hotline Customer complaints Pass rate of customer complaint

development. satisfaction response assessments response assessment

99.77%491.28%

Disclosure of customer

information

The First Business Training of

the Marketing Service Center 0

75 76Shandong Hi-speed Company Limited

Environmental Social and Governance (ESG) Report 2023

Information Security In 2023 the Information Group cooperated with Shandong Weiping Information Security Evaluation Technology Co. Ltd. (Weiping Company) which provided equal protection evaluation services according to business needs and provided network security-related

services such as emergency duty vulnerability scanning penetration testing and website security monitoring.Information security systems and regulations

Shandong Hi-speed actively adheres to the policy of "active utilization legal management scientific development and safety

assurance". The Company formulated the Measures for the Management of Network and Information System Security in accordance with the Information security team

Internet Security Law Data Security Law and other laws and regulations. Information Group passed ISO 27001 Information Security

The Company established a network security and informatization leading group with the Chairman and General Manager serving as

Management System Certification and passed the data management capability maturity assessment in May 2023 reaching the Robust

the leader of the leading group.Level (level 3); in November it passed the data security capability maturity assessment reaching the Level 2.Firstly Secondly Thirdly Finally

Establish a safety Arrange regular grade Conduct vulnerability Strengthen the security

management system assessment in strict scanning and security management of authority

and operating accordance with grade hardening of information account and password

procedures covering all requirements and systems on a regular and avoid system security

aspects of network and perform safety basis update malicious problems such as weak

information system rectification for systems code libraries and system password clear password

operation maintenance that fail to meet safety patches in a timely and unauthorized access

and use and implement protection grade manner and conduct through technical and

network security requirements penetration tests on management measures

protection important information

responsibilities systems at least once a

year

ISO 27001 Certification Data Management Capability Maturity Robust Level (Level 3) Data Security Capability

Maturity Level Certificate

Safety emergency plan

Information security construction

In 2023 the Information Group formulated the Cyber Security Emergency Plan which divided cyber security incidents into eight

In order to consol idate the foundat ion of dig i ta l categories and four levels and established a leading group for cyber security work to coordinate the emergency response work

transformation and meet the development needs of intelligent of cyber security incidents with an office in charge of daily affairs. This is to strengthen information security management

high-speed construction Shandong Hi-speed has built a prevent and resolve all kinds of information security risks and ensure the normal operation of business and data security.high-speed cloud data center and timely expanded according

to business needs. The construction of high-speed cloud data

center provides sufficient computing resources for key

construction projects such as "Digital Penetration Project" Cyber Security Incident Classification

"Smart Brain" "Smart Expressway" and "Highway No.1" meets

the innovative application needs of mobile Internet cloud

computing big data Internet of Things and other fields and

opens up the "information tunnel" of the transportation Harmful program Network attack Information destruction Information content

industry. After expansion the high-speed cloud data center incident incident incident security incident

has 103 cabinets which can provide 19018 CPU cores 51104

G memory 1396 T efficient cloud disk 389T object storage Equipment and Catastrophic Internal potential Other information

and 116T SSD efficient cloud disk. At present the CPU facility failure incident threat incident security incident

allocation rate of high-speed cloud data center is 53.71% the

memory allocation rate is 67.95% the actual utilization rate of High-speed Cloud Data Center Security Incident Situation Large Screen

Cloud Block Storage is 40.04% and the actual utilization rate

of SSD is 4.9%.

77 78Shandong Hi-speed Company Limited

Environmental Social and Governance (ESG) Report 2023

Level Severity Color Judgment criteria Emergency Response Process

The duty team Handle according to the

Incident field preliminarily judges Yes

New network and information security threats are discovered which may affect all Incident happens response measures of personnel report to whether it is a network

networks and critical information systems within the global scope and have the the corresponding level the duty team security incident

possibility of spreading to the global. incidents

No

Level I Especially Red The loss or theft tampering and counterfeiting of state secret information serious important sensitive information and key data pose a particularly serious threat to Transfer the incident to

national security and social stability. other relevant

functional departments

for handling

Prepare incident Incident investigation Restore system

New network and information security threats are discovered which may affect all End of response handling reports and assessment operation

services of the basic network or more than two important information systems in

the global scope and may continue to spread.Level II Major Orange

The loss or theft tampering and counterfeiting of state secret information

important sensitive information and key data pose a serious threat to national

security and social stability.During the reporting period the Company continued to improve its information security protection capability and strengthen

information security control through training and publicity activities daily network security inspection and hardware security inspection

network security assurance during the Spring Festival and network security re-protection during the 20th National People's Congress

New network and information security threats are discovered which may affect all so as to lay a solid foundation for the safe operation of information systems.services of 1-2 basic networks or 1-2 important information systems in the global

scope without proliferation.Level III Larger Yellow Case 1 High-speed Cloud Data Center fire emergency drill

The loss or theft tampering and counterfeiting of state secret information

important sensitive information and key data pose a serious threat to national

security and social stability. On May 92023 Information Group organized and carried out fire safety emergency drills. Through this activity the ability

of employees to deal with emergency emergencies and the actual operation ability of fire fighting equipment were

improved laying a solid foundation for further data security.New network and information security threats are discovered which may affect

Level IV General Blue part of the network of a certain basic operator or part of the business of 1-2

important information systems in the global scope without proliferation.The loss or theft tampering and counterfeiting of state secret information

important sensitive information and key data pose a certain threat to national

security and social stability.Fire emergency drill

79 80Shandong Hi-speed Company Limited

Environmental Social and Governance (ESG) Report 2023

Road network traffic

Case 2 Information Group's Network Security Publicity Week

In order to obtain the data of motor vehicle flow vehicle type and vehicle speed of expressway Shandong Hi-speed realizes

in-depth mining aggregation and visualization of historical data and real-time data based on distributed multi-node database

deeply detects the traffic flow and flow direction of road network accurately locates abnormal data of equipment

In order to promote the concept of network security popularize network security knowledge and promote network comprehensively monitors the road network status from link and business levels finds abnormal traffic flow and ensures the

security skills from September 11 to 17 2023 the Information Group launched various network security publicity week operation safety of road network.activities and invited a number of senior experts for training. Through this activity all employees enhanced their

awareness of network security and prevention and improved their network protection skills.The Company’ s traffic analysis system is mainly divided into three parts: basic data management module data visualization

module data analysis module.Road Network Traffic Analysis System

Cylinder diagram

data

Portal data Traffic overview

Charging unit Road networkcylinder diagram

Ramp data Traffic direction

Road Network Traffic

Equivalent Data management Analysis System Large-screen display

conversion Holiday statistics

Brochure Promotional Video in Elevators Information Security Awareness Training Road ownership In-transit

details monitoring

Lane details Track playback

Holiday

management

Data analysis

User data protection

Shandong Hi-speed follows the principle of "Whoever collects information is responsible for protection" strengthens user

Travel judgment Vehicle source Vehicle sourceanalysis composition Single point

Multipoint traffic

analysis Data comparisoninformation security establishes "Shandong Hi-speed Operation Data Classification Management Platform" adopts different data

protection strategies for data with different importance and sensitivity meets data risk management compliance and security

requirements and improves the security level of operation data.Traffic analysis 24H summary Traffic map

When collecting and using personal information each unit and department shall take the following measures:

· The rules of collection and use shall be made public and the purpose method and scope of information Key performance

collection and use shall be clearly stated and the consent of the collected person shall be obtained.Do not collect personal information unrelated to the services provided and do not collect use or process

· the stored personal information in violation of laws administrative regulations and agreements between

Information security Number of participants Total investment in data Information security and

the parties. and privacy training(No.) in training(Person) security(Ten thousand RMB) privacy violations(No.)

Necessary measures should be taken to prevent information leakage damage and loss. In the event of 6 3485 186.14 0

· information leakage damage or loss remedial measures shall be taken immediately and users shall be

informed and reported to the Company in a timely manner in accordance with regulations.

81 82Shandong Hi-speed Company Limited

Environmental Social and Governance (ESG) Report 2023

Supply Chain Management Case Information Group's integrity procurement training

Shandong Hi-speed follows the principles of openness fairness justice and honesty and credit in supply chain management

and has formulated supplier management systems such as Bidding Procurement Management Measures and Non-bidding Procurement

Management Measures. The Company's bidding procurement leading group (sunshine procurement leading group) is the highest The Information Group insists on integrity in procurement requires suppliers to sign integrity contracts strengthens the

leader and decision-making body of the Company's bidding work and the Chairman of the Company is the group leader. supervision and inspection of procurement activities throughout the process ensures the compliance and transparency of

procurement activities and improves the integrity awareness and professional ethics of all employees through measures

such as integrity education and training activities laying a solid foundation for the steady development of the Company.Supplier audit

After project approval the Company shall issue procurement announcement to publicize supplier qualification requirements

(including qualification requirements performance requirements reputation requirements personnel requirements etc.). The

evaluation team shall conduct preliminary evaluation on response documents and reject the quotation qualification of suppliers

who do not meet the requirements.Supplier evaluation

The Company carries out graded assessment on suppliers by means of daily assessment and annual assessment and the

assessment results are incorporated into the annual assessment system. The purchaser shall be responsible for organizing the

project review. The assessment work shall be implemented at different levels and daily assessment and annual assessment

shall be adopted and the assessment results shall be incorporated into the annual assessment system.Supplier ESG management

For the bidding and procurement process of engineering construction projects the Company puts forward specific requirements

in the bidding documents to ensure the performance of suppliers in safety quality and environmental protection. These

requirements include daily supervision of migrant workers' wages (labor costs) rules and regulations on safe production

management safety inspection procedures and construction safety management requirements and instructions from the Key performance

Supervisor on safe production. In terms of environmental protection the contractor must strictly abide by relevant national

environmental protection laws and regulations and relevant industry standards and make clear regulations on reducing 2022

construction noise suppressing dust and avoiding pollution of water bodies.Total number of Suppliers in Shandong Suppliers in the mainland of China

suppliers Province except Shandong Province

619434185

Responsible procurement

2023

Shandong Hi-speed stipulates that the units and personnel engaged in procurement activities shall abide by relevant laws and Total number of Suppliers in Shandong Suppliers in the mainland of China

regulations and the rules and regulations of the company and their own units abide by discipline be honest and

self-disciplined earnestly perform their duties and shall not neglect their duties abuse their powers or engage in malpractices suppliers Province except Shandong Province

for personal gain and shall not illegally interfere in procurement activities in any way. The supplier shall sign an integrity

agreement and require the supplier to provide in the response document a letter of commitment that the supplier unit legal 3636 2947 689

representative and key management personnel to be appointed in the response document have not committed bribery crimes

in the past three years and the evaluation team shall sign a letter of avoidance confirmation.

83 84Caring for Employees

and Making Together

for the Future

Making use of every man's talent

according to his actual conditions.——Talent Concept of Shandong Hi-speed

Labor Relations 87

Career Development 92

Welfare and Care 95Shandong Hi-speed Company Limited

Environmental Social and Governance (ESG) Report 2023

Labor Relations Male 68% Production 67%

Female 32% Technical 28%

Employee recruitment and employment Sales 2%

Shandong Hi-speed strictly abides by the Labor Law Labor Contract Law and other laws and regulations safeguards the legitimate Ratio of male Financial 2%

rights and interests of laborers formulates internal systems such as the Measures for the Management of Employee Recruitment and the to female

Regulations on the Management of Labor Relations adheres to the labor employment standards of equality between men and women employees Administrative 1%

equal pay for equal work and non-discrimination constructs the employee rights and interests guarantee system and builds a

solid talent foundation for the sustainable development of the enterprise. Others 0%

The Company follows the rules of fixed posts and fixed staffing and adopts the forms of campus recruitment and social

recruitment in accordance with the principle of "openness equality competition and merit". In the process of recruitment and

employment the Company strictly screens employees' personal identity information implements the management requirements Percentage of

of full-time labor contract system and eliminates illegal employment behaviors such as child labor and forced labor from the employees' discipline

source. 132

124

121

In 2023 the signing rate of labor contracts of the Company was 100% and the social insurance coverage rate was 100%.

202120222023

Number of minority employees

Total number of employees 10805 Female 3392

42

Number of employees with disabilitie 42 Male 7413 37

35

Number of ethnic minority employees 132

202120222023

Number of employees with disabilities

Production 6360

Doctor 6 Sales 174 Employee compensation and benefits

Master 922 Technical 2674 In order to standardize the Company's salary management improve the Company's internal incentive and restraint mechanism

improve the Company's core competitiveness comprehensively and truly evaluate employees' job performance ensure that the

Company's development strategic objectives are effectively decomposed and fully implemented in specific work and achieve

Bachelor 5949 Financial 203 the goal of fully integrating the work process and performance management throughout the cycle and continuously improving

work efficiency and effectiveness the Company has formulated the Employee Compensation Management System and the Employee

Assessment Method which linked the benefits of employees and the Company and may increase and decrease the same and

Junior College 2916 Administrative1318 followed the principle saying "Pay by post salary change by post equal pay for the same post priority for efficiency

consideration for fairness implementation of assessment results and more pay for more work."

Below junior college 1012 Others 76

The employee performance appraisal index system consists of KPI and CPI which is based on quantitative analysis and

supplemented by qualitative analysis to form a comprehensive conclusion of employee performance appraisal where

quantitative analysis and qualitative analysis complement each other.

8788

Number of employees by gender Number of employees by discipline

Employee composition Number of employees by educationShandong Hi-speed Company Limited

Environmental Social and Governance (ESG) Report 2023

Employee assessment

On the basis of strict implementation of national statutory benefits the Company effectively promoted independent welfare

policies including enterprise annuity supplementary medical insurance on-the-job training health examination food subsidies

heating fees childcare fees etc. further enriching the employee welfare system.Daily Quarterly assessment is the main method which can be refined into monthly assessment focusing on the

assessment performance of post responsibilities and completion of work tasks.The Company has formulated and implemented the Regulations on Attendance and Leave Management. For overtime work due to work

needs we will arrange equal time off in the year to ensure the balance between work and life of employees. In addition

besides national statutory holidays we also provide marriage leave funeral leave annual leave Spring Festival home leave and

other paid holidays so that employees can better handle personal affairs and enjoy their life.The comprehensive reflection of each quarterly (monthly) assessment can be taken as the annual

Annual

assessment assessment score based on the average score of daily assessment or linked with the annual key tasks and

department achievements as the annual assessment score based on the daily assessment score.Employee Compensation Composition

13.7

It is linked to the position position value ability

Fixed working years and service contribution to the country 9.86

The assessment results are divided into four grades A B C and D according to the results. According to the Employee salary and the enterprise of employees.Compensation Management System formulated by the Company they are applied to the payment of performance salary adjustment

of rank (grade) selection of excellent talents and renewal termination and cancellation of labor contract. They are also used as 9.34

the condition for evaluation of employees' performance.Floating It is l inked to the Company's operation and the

wage performance appraisal of individual employees. 2021 2022 2023

Equity incentive Paid leave days per capita

August 10 2020 The first grant registration of stock options was completed with 43.2 million shares granted

for the first time and 206 people granted for registration.May 31 2021 The registration of reserved shares of stock options was completed with 4663700 reserved Employee satisfaction survey

shares registered and 34 people registered for reserved shares.Shandong Hi-speed conducts employee satisfaction surveys through various channels every year to fully understand employees'

demands and actively respond to employees' opinions and suggestions. The Company conducts interviews with employees

August 2 2022 Completed the first exercise by the first granted persons with a total of 16046600 shares

through inspection and special inspection to understand their job satisfaction record their problems in detail form a list of

listed and circulating and a total of 195 exercising persons. problems and propose solutions. Moreover we will also hold seminars such as youth employee seminars to listen to the

opinions and suggestions put forward by employees and deal with them.Completed the exercise of the second exercise period granted for the first time and reserved Key performance

July 12 2023 for the first exercise period with a total of 13185200 shares listed and circulating (11399800

shares granted for the first time and 1785400 shares reserved for grant) and a total of 222 In 2023 the Company's employee satisfaction rate was 100% and the survey participation rate was 100%.exercising persons (189 granted for the first time and 33 reserved).

89 90Shandong Hi-speed Company Limited

Environmental Social and Governance (ESG) Report 2023

Democratic management Career Development

Shandong Hi-speed has always been committed to creating an open and transparent working environment providing smooth effective and

reasonable communication channels for employees and ensuring employees' right to know and participate in the Company's operation and Shandong Hi-speed fully considers the individual career development aspirations and wishes of employees provides rich and

management. We have established a Labor Union to safeguard the legitimate rights and interests of the broad masses of employees regularly diverse training resources and job opportunities continuously improves the overall quality of employees fully releases the

convene employee representative conferences listen to the opinions and suggestions of employee representatives on the development of the development vitality of the Company and lays a solid talent foundation for the long-term development of the Company.Company and actively promote democratic management. Our goal is to enable each employee to maximize their personal value by giving full

play to their abilities in a fair and just environment.The Company attaches importance to opinions and Employee training management system

feedback from employees unblocks employee

complaints and feedback channels actively listens to Shandong Hi-speed adheres to the talent concept of "Making use of every man's talent according to his actual conditions"

employees' voices and safeguards employees' attaches great importance to employee training continuously activates employee vitality and provides all-round vocational

legitimate rights and interests. Employees who have training and guidance for employees at different positions and levels. The Company formulated and improved the Staff Training

objections to the salary and performance appraisal Management Measures to help employees keep learning and making progress and realize the unity of individual and Company

results may appeal to the HR department of the unit development.within the publicity period. The relevant departments

of the company will investigate the employee The Human Resources Department of the Company is the centralized management department of employee training

complaints and put forward investigation opinions to responsible for establishing the Company's training system covering four basic categories: internal training external training

form an investigation report. If the complaint is true induction training for new employees and training for personnel of special types of work. The training content involves

the employee can be re-assessed or re-revised corporate culture company management rules and regulations work specification requirements job responsibilities

assessment results and relevant responsible person professional technical knowledge etc. The Company training takes "Business training knowledge learning ability improvement"

put forward handling opinions. If the employee is still as the carrier and guides and helps employees to enrich professional knowledge improve professional ability develop

dissatisfied with the handling result he/she may professional style and cultivate professional spirit through centralized training business competition online learning

lodge a complaint again and the Company will examination and other diversified forms under the principle of "Precisely-targeted training and exercise". In practice the

ensure that the employee's claim is resolved. Company has developed and discovered a number of "business backbones" and "post experts" and expanded the professional

talent team. During the year the Company's employee training coverage reached 100%.Case The Company held the sixth session of the third employee Key performance

(Labor Union member) congress

On January 30 2023 the Company held the sixth session of

the third employee (trade union member) congress 2023 In 2023 the Company held With a total number of A total training duration of

Working Meeting and Safe Production Conference to review

and summarize the work in 2022 and arrange and deploy

the tasks in 2023. At the meeting the Chairman summarized 2633 10805 822436hours

and reviewed the remarkable achievements made by the employee training sessions persons trained

Company in the past year and made arrangements for the

Company's work in 2023. The General Manager made the

2022 annual work report on behalf of the management

team. The Deputy Secretary of the Party Committee An average of A total training investment of

conveyed the spirit of the fourth employee (trade union

member) congress and 2023 annual work conference of the

Group. The Secretary of Discipline Inspection Commission 76.12hours RMB10000300

read out the resolutions of the employee (Labor Union of training per capita

member) congress and the Deputy General Manager read

out relevant commendation decisions. Employee (Labor Union Member) Congress

91 92Shandong Hi-speed Company Limited

Environmental Social and Governance (ESG) Report 2023

Talent development goals and planning

Case 1 Induction training for new employees

Integrate the talent data of each unit establish a unified and complete personnel

In order to help the new campus recruits in 2023 to clarify the company strategy integrate into the corporate culture and Establish talent big information database and convenient and efficient classified query channels improve the

accelerate the completion of role transformation from August 9 to 11 the Company organized the induction training for data system informatization refinement and efficiency of talent management and ensure the scientific

new employees and a total of 32 new employees from each subsidiary and the operation management center and accurate talent decision-making of the company.participated in the training activities. During the training period the Company invited experts from relevant industries to

teach a series of courses such as "happy entry password" "don't let communication become your barrier" and "innovative Dynamic analysis of Each unit shall regularly put forward the demand plan and specific requirements for

thinking and innovative management" for new employees; the Board Secretary Office Investment Management talent demand relevant talents to the Company in combination with the actual business development and

Department and Human Resources Department of the Company taught on the Company's corporate culture "14th medium and long-term planning.Five-Year Plan" development plan human resources system etc.Talent classification For talents of different levels and categories we should classify and assess the talent

and assessment needs and make reasonable responses.Strengthen the construction Establish a regular reserve talent selection mechanism and always have a certain number

of reserve talent team of reserve personnel.Training evaluation and

Induction Training for New Employees assessment mechanism Career advancement and development

In order to ensure the training effect Shandong Hi-speed In order to further strengthen the standardized management of

has established and improved the training evaluation and the Company's positions establish a scientific and unified

assessment mechanism. On the one hand the Human position management system and provide employees with

Case 2 Logistics training Resources Department of the Company will consider the multi-channel career development paths the Company has

annual training items as the assessment contents in the formulated internal systems such as the Position Management

annual operation performance appraisal; on the other hand Measures Employee Development Channels and Internal Position Adjustment

the Company requires all units and departments to review and established three job categories i .e. management

In order to further improve the work style of the organs the overall implementation of the activities after the training technology and skills to provide equal promotion opportunities

and improve the quality of administrative and logistic activities comprehensively summarize the practices for employees of different types and specialties.services in September 2023 the Company held experiences and achievements of the activities carefully

large-scale tra ining and competit ion event for sort out and analyze the deficiencies and problems existing

administrative and logistic works. The Secretary of the The Company's rank system consists of 18 ranks 26 grades with in the implementation of the activities and form a

Board of Directors of the Company the Office and the clear qualification standards and promotion paths forming a summary of the training activities. The Human Resources

heads of the comprehensive management departments systematic framework with clear and standardized operation. In Department of the Company will propose improvement

of 32 subordinate units the vehicle staff the drivers addition the Company has continued to deepen the construction suggestions according to the summary of activities.and the cook representatives participated in the event . of dual career development channels to ensure that employees

The event arranged theoretical examination and two have sufficient development space and opportunities and

practice contests for drivers and cooks. Senior experts In addition the Company will select internal trainers at all maximize the professional expertise of various talents.were invited to conduct training on vehicle safety food levels based on the principles of fairness impartiality Furthermore the Company has further optimized the career

safety and gas safety. Through this training the openness and objectivity to provide excellent lecture promotion channels of employees by organizing and carrying out

professional ability level and work enthusiasm of the resources for the Company's training activities and independent evaluation of skilled talents in various road and

participants were further improved. Administrative and Logistic Work Training empower employees' career development. bridge operation units in the province.Key performance

In 2023

Talent development goals and planning 14.68% 234 2.17%

of positions were filled through employees were of employees

Shandong Hi-speed systematically analyzes and grasps the current situation of human resources in combination with business internal transfer or internal recruitment transferred internally transferred internally

needs to determine talent needs and gradually establish a long-term mechanism for talent supply and demand evaluation.

93 94Shandong Hi-speed Company Limited

Environmental Social and Governance (ESG) Report 2023

Welfare and Care Case 1 "Unity Cup" Basketball Game Case 2 Fun Sports Game

Worker's Home During the reporting period the "Unity Cup" employee On August 42023 the Labor Union of Beijing-Shanghai

basketball competition hosted by Shandong Hi-speed Ji'nan Operation Management Center held the fun

In order to enhance the sense of identity belonging and happiness of grass-roots employees truly feel the warmth of "home" Group was successfully ended. During the competition the sports game of "Passion · Burning Jilai". This fun sports

and create a harmonious and positive atmosphere the Labor Union of Shandong Hi-speed actively organizes all units to launch volunteer service team composed of the Beijing-Shanghai game set up five competitions: "rope skipping"

a "Worker's Home" campaign. This campaign played the role of Labor Union's organization in concentrating and serving Ji'nan Operation Management Center of the Company "shuttlecock kicking" "running with ball" "hula hoop" and

employees and built a warm home for the majority of employees. In such a campaign employees not only felt the warmth of provided all-round game services for each participating unit "plank" which not only test individual sports competition

home but also enhanced their cohesion and sense of belonging. and made every effort to ensure the competition winning level but also test team cooperation ability. At the

unanimous praise from the referee group and each game everyone followed the principle of "Friendship

participating unit. This basketball game not only enriched first competition second" demonstrating the spirit of

the sports life of employees but also promoted the spirit of unity and cooperation and "bravely climbing the peak"

unity and cooperation among employees showing the among employees. This game not only enriched the

Company's positive united and cooperative enterprise spirit. spare time life of the staff but also inspired the tenacity

of the staff to face difficulties laying a good spiritual

foundation for their work in the future.Worker's Home of Dezhou Toll Station Laixi Toll Station's "Small Home" for Employees

Case 3 "Warm Winter" Activity

Care for employees

The Company attaches great importance to the protection of the rights and interests of female employees strictly abides by the In order to actively practice the spirit of the 20th

Law on the Protection of Women's Rights and Interests and other laws and regulations strengthens the protection and leave of National Congress and give full play to the bridge role of

female employees during pregnancy childbirth and lactation etc. In addition to statutory benefits the Company also provides Labor Union on the occasion of the Spring Festival Case 4 Spring Festival Activities

benefits for female employees in childbirth and leave and organizes activities with the theme of Women's Day at least once a various forms of "Warm Winter · Warm Expressway"

year to facilitate the life and work of female employees. At the same time the Company also attaches importance to the consolation activities were arranged to reach all

balance between work and life of employees actively organizes various cultural activities and sports events enriches the spare front-line employees and employees in difficulty of the

time life of employees promotes the physical and mental health of employees and enhances the cohesion and team identity of Company letting the Company act as employees' "family

In order to fully show the new life new fashion new

look of the times and form a healthy progressive

employees. We have enhanced employees' sense of belonging by creating a united and harmonious working atmosphere. members" and do "warm things" for the grassroots staff.This condolence activity reflected the humanistic care of civilized and harmonious festival atmosphere the

the Company for employees made employees feel the Company organized civilized Spring Festival activities

through the Labor Union encouraged employees to

Protection of Women's Rights and Interests love of the Company and strengthened the cohesion

and sense of collective of employees. participate voluntarily refine their personal quality in the

activities feel happy in the games and also develop

team spirit and cooperation ability in the activities.Percentage of women among Return rate after Return rate after Weilai Operation Management Center distributed milk

management staff maternity leave parental leave eight-treasure porridge insulated lunchboxes and other

consolation products to each grass-roots station sent

17.62 100 100 Spring Festival blessings to the staff and paid special % % % visits to 4 hospitalized and needy-family workers.

Number of employees taking Proportion of women Number of employees

parental leave among technical staff taking maternity leave

50329.15%227

95 96Shandong Hi-speed Company Limited

Environmental Social and Governance (ESG) Report 2023

Giving Back to Society

and Practicing Public

Welfare

Happy Travel Together

Working Hard Together.——Team Concept of Shandong Hi-speed

Local Development 99

Public Welfare Undertakings 100Shandong Hi-speed Company Limited

Environmental Social and Governance (ESG) Report 2023

Local Development Public Welfare Undertakings

Supporting local development

As a responsible corporate citizen Shandong Hi-speed pays close attention to the well-being of people's livelihood. During the

Shandong Hi-speed has been continuously strengthening its investment in rural revitalization. During the reporting period the company reporting period the Company actively acts in social welfare. The Company encourages employees to participate in activities such as

actively participated in rural infrastructure construction helped rural areas improve their living facilities and industrial facilities and volunteer service and sympathy for villagers during holidays develops employees' awareness of social welfare and demonstrates the

effectively promoted rural economic growth and income increase through various ways such as poverty alleviation through industrial Company's sense of social responsibility.development employment and education.Key performance

Case 1 Construction of steel structure workshop

In 2023 the Company's social contribution value per share is RMB 1.84

In 2023 the Company together with other first secretaries

and through local government's active communicate and

coordination invested RMB 1.65 million in the steel structure

workshop of Heze Zhongding Renewable Resources

Recycling Co. Ltd. The workshop covers an area of 2600

square meters and aims to help enterprises increase

production and expand capacity. This move will bring stable Case 1 Voluntary activities on expressway

village collective income of RMB 132000 per year further

promoting the development of poverty alleviation work. During the reporting period in response to the sharp

increase in traffic volume during the Labor Day period

Jinan-Laiwu Expressway organized a youth volunteer service

team at stations along the route. In order to improve the

holiday travel experience of drivers and passengers the toll

station youth volunteer service team set up "convenience

service" post station in the toll square with "three boxes and

one bucket" (medicine box toolbox suggestion box

Case 2 Investment in infrastructure insulation bucket) providing mineral water hot water

medicine car repair tools wet tissue and other supplies 24

hours a day and installing ETC equipment free of charge.We set up a "paper-to-electronic" invoice consulting service

point to guide drivers and passengers to quickly draw

In order to promote rural revitalization and rural economic electronic invoices one by one; promoted the "Changhetong"

development the Company invested RMB 250000 to built APP to drivers and passengers popularized the functions of

10 new motor-driven wells in the basic farmland of Jiazhai the "Changhetong" APP such as travel navigation release of

Village erected 24 poles and laid 4000 meters of cables. goods source info one-click rescue pass code (even if the

We also provided 10 sets of power distribution cabinets and road is closed) and publicized the May Day Holiday travel

submersible pumps that can pump water by swiping cards strategy through information boards WeChat official

solving the irrigation problem of more than 700 acres of account etc. so as to provide quick help for the public to

basic farmland. These measures have laid a good water drive on the expressway safely and show the image of a

conservancy infrastructure to ensure a bumper harvest of promising youth enterprise in the new era.grain and made positive contributions to rural revitalization

and rural economic development. During the festival a total of 126 road inspections were carried

out with a patrol mileage of 6080 kilometers and 48 obsta-

cle-clearing rescues so as to ensure the safe travel of the public.

99 100Shandong Hi-speed Company Limited

Environmental Social and Governance (ESG) Report 2023

Case 2 Visit and assistance activities Case 3 "Joining Hands to Revitalize the Roads with Full Love for Wulong" Activity

Before the Spring Festival the Company visited all Party members and needy people in Jiazhai Village distributed consolation The Company actively responded to the theme series activities of

articles and epidemic prevention materials to children and needy people discussed vegetable pest control with villagers in "Joining Hands to Revitalize the Roads with Full Love for Wulong"

Jiazhai and visited villagers' homes to understand village conditions and public opinions. and donated RMB 20000 to the Rural Revitalization Foundation of

Wulong District in Chongqing City. This move aimed to support

Wulong difficult areas and people in difficulty to improve

production living and health conditions improve their quality and

ability achieve common prosperity achieve a well-off life and

achieve sustainable development. Besides we were also honored to

receive the Certificate of Honor for the East-West Collaborative

Rural Revitalization Activities in recognition of our contribution to

rural revitalization.Case 4 "Warm Sunset" Project helping the elderly

In order to further improve the old-age service system and strengthen the rescue and assistance for the elderly in urban and

rural areas the Company actively responded to the Charity Federation of Shandong Province launching the "Warm Sunset"

project to help the elderly since 2022 donating RMB 1 million every year for 4 consecutive years with a total donation of RMB 4

million. The project will provide assistance to disabled elderly people with economic difficulties in 39 counties/districts/cities in

the Yellow River Basin and 20 key counties for rural revitalization with about 47000 recipients. Donated funds will be used to

provide care services for disabled elderly people subsidize disabled elderly people in difficult circumstances to afford nursing

institution for the aged and provide other aspects of relief and assistance.Case 5 "Charity Day Donation"

In 2023 Shandong Province Charity Federation organized the activity of "Charity Day Donation" to raise funds for charity

projects such as helping the poor helping doctors helping students helping the elderly and helping the disabled. Shandong

Hi-speed actively responded to the call and mobilized employees to make donations. The employees actively participated in it

and carried forward the traditional virtue of helping others with practical actions with a total donation of RMB 416400.

101 102Shandong Hi-speed Company Limited

Environmental Social and Governance (ESG) Report 2023

Appendixes L evel-1 headings Level-2 headings Global Sustainability Reporting Standards Guide to Corporate Social Responsibility Reporting in China（ GRI Standards） （CASS-ESG 5.0)Index of Indicators S erving Customers Customer Rights / S4.5/S4.7/S4.8 for Mutual Benefit

a nd Common Information Security / S5.6

Level-1 headings Level-2 headings Global Sustainability Reporting Standards Guide to Corporate Social ProgressResponsibility Reporting in China Supply Chain（GRI Standards） 102-9 S5.2 （CASS-ESG 5.0) ManagementS1.1/S1.2/S1.3/S1.4/S1.5/

About This Report 102-46/102-50/102-52/102-53/102-54 P1.1/P1.2/P1.3/G3.7 L abor Relations 102-8/405-1

C aring for S1.6/S1.7/S1.8/S1.9

Message from Chairman 102-14 / Employees and

M aking Together C areerDevelopment 404-1 S2.1/S2.2/S2.3/S2.4

Company Profile 102-1/102-3/102-6/102-7 P4.1/P4.4 for the Future

W elfare and Care 401-2 S1.10

Business Areas 102-2 P4.3

About Giving Back to L ocal Development 203-1 V1.2/V3.1/V3.3

Shandong Hi-speed Development Course / / Society and P racticing Public Public Welfare Welfare U ndertakings / V3.4/V3.6/V3.7

Corporate Culture / P4.2

I n dex of Indicators 102-55 A4

Honors and Awards / / A ppendixes

F eedback Form / A5

ESG P2.1/P2.2/P3.1/G2.1/G2.2 102-29

Governance System /G2.3/G3.1/G3.2/G3.3/G3.11

E SG S ustainable

Management Development Goals

//

Feedback Form

S takeholders Communication 102-40/102-44 G3.6

A nalysis of

Dear readers

Substantial Issues 102-47 G3.5

R esponding toNe u t ra lit y " G o a

t h e "C a r b o n P e a king and Carbon ls and Building Low-Carbon Highways / / Thank you very much for reading this report. We appreciate and look forward to hearing your feedback on this report. Your

comments and suggestions are an important basis for us to continuously improve the disclosure of ESG information and

G Corporate overnance First 102-15/102-18/102-22 G1.1/G1.2/G1.3/G1.4/G1.10 promote our ESG management and practice. We welcome and sincerely thank you for your valuable comments!

Depending on

Governance

Compliance

Party Building's Operation to / / 1. Your overall assessment of our ESG performance is: 5. How do you think we are doing in terms of environment

Leading RolePromote □ Very good □ Good □ Fair □ Relatively Poor □ Poor safety and occupational health

Development B usiness Ethics 102-16/205-2 G1.5/G1.6/G1.7 □ Very good □ Good □ Fair □ Relatively Poor □ Poor

2. Your overall assessment of this report is:

Environmental

/ E1.1/E1.2/E1.3/E1.4/E2.14 □ Very good □ Good □ Fair □ Relatively Poor □ Poor

Green Water and Protection

6. How do you think we are doing in terms of employee

responsibilityGreen Mountains Utilization of

P rotecting the 302-1/302-4/302-5 E2.2/E2.4/E2.9/E2.10/E2.12 3. How do you think we are doing in terms of communication □ Very good □ Good □ Fair □ Relatively Poor □ Poor

Ecological Resources with stakeholders

Background Color

"T hree Wastes" 303-1/303-2/303-4 E3.1/E3.2/E3.5/E3.6/E3.8 □ Very good □ Good □ Fair □ Relatively Poor □ Poor 7. How do you think we are doing in terms of ESGManagement □ Very good □ Good □ Fair □ Relatively Poor □ Poor

In novative R & D / V2.1/V2.2/V2.3/V2.4 4. How do you think we are doing in terms of product

responsibility 8. Do you have any comments and suggestions on our ESG

Inn ovation-driven P roduct Quality / S4.1/S4.2 □ Very good □ Good □ Fair □ Relatively Poor □ Poor performance and this report

Safe Production for

Q uality Assurance S3.1/S3.2/S3.4/S3.5/S3.6/

S afe Production /

S3.7/S3.8/S3.9

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