2025 Sustainability Report Consolidating Governance Foundations to Ensure Steady and Healthy Operations for Development2025 Sustainability Report Contents

CONTENTS

About this report 01

Chairman's speech 03

About Sinoma International 05

Sustainable development management 13

Solidify the foundation for our Support the sustainability of the

sustainable development industry society and global community

Consolidating Governance 25 Leading Industrial 63

Foundations to Ensure Steady Progress and Enhancing

and Healthy Operations for Overall Value for Mutual

Development Benefit

Strengthening Governance Foundations 26 Enhancing Service Quality 64

Compliance and Integrity in Operations 29 Sustainable Supply Chain 75

Safeguarding Employee Rights and Interests 36

Pursuing Sustainability through 49 Embracing the Mission of the 79

Outlook 99 The 14th Five-Year Plan: A New 19 Green and Eco-Friendly Times and Jointly Pursuing Global

ESG key performance 101 Chapter in Our Sustainable

Development Development with Responsibility

Development

Indicator indexes 115 Green and Clean Production 50 Green and Low-Carbon Products 80

Feedback form 117 Circular Economy Integration 59 Addressing Climate Change 85

Improving People's Livelihood and Well-being 902025 Sustainability Report About this report

About this report

Reporting language

Reporting entity This report is published in both Chinese and English. In case of any inconsistency between the Chinese and English versions the

Chinese version shall prevail.The reporting entity is Sinoma International Engineering Co. Ltd. (stock code: 600970) and its affiliated enterprises. In this report for

ease of expression and reading "Sinoma International Engineering Co. Ltd." is abbreviated by "Sinoma International" "the

Company" and "we" and "China National Building Material Group Co. Ltd." is represented by "the Group." Reference standards

Reporting scope UN Sustainable Development Goals 2030 (SDGs)

Sustainability Reporting Standards of Global Reporting Initiative

The scope of this report is consistent with the scope of the annual financial disclosure. Unless otherwise stated this report covers Guidelines on Corporate Social Responsibility Reporting for Chinese Enterprises (CASS-ESG 6.0) issued by the Chinese Academy of

the environmental social and governance performance of Sinoma International Engineering Co. Ltd. and its affiliated enterprises Social Sciences

during the period from January 1 to December 31 2025. Given the continuity and comparability certain contents of this report may

be extended as necessary. Reference Indicator System for the ESG Special Report of Listed Companies Controlled by Central Enterprises issued by the State-

owned Assets Supervision and Administration Commission (SASAC) of the State Council.Information sources Guidelines No. 14 of the Shanghai Stock Exchange for Self-regulation of Listed Companies — Sustainability Report (Trial)

Guide No.4 for Self-Regulatory Supervision on Listed Companies of the SSE — Compilation of Sustainable Development Reports

The information and data in the report are derived from the Company's official documents or internal statistics. The historical data (Revised January 2026)

cited is final statistical data. In case of any discrepancy between the financial data and the annual report the annual report shall Recommendations of the Task Force on Climate-related Financial Disclosures ("TCFD")

prevail. Unless otherwise stated all amounts of currency involved in this report are denominated in Chinese Yuan ("CNY").

01 022025 Sustainability Report Chairman's speech

Chairman's speech This year we began with operations anchoring This year responsibility has been our guiding hand our focus on high-quality development to as we fulfilled our global commitment to ensure

overcome difficulties and pursue progress that the fruits of progress were shared by all.amidst stability. Guided by a people-centered philosophy we deepened

In 2025 the Company achieved a record high in new reforms in personnel labor and distribution systems

contract signings with total value reaching CNY 71.2 achieving 100% implementation of term-based

billion up 12% year-on-year. Among which core appointments and contractual management. Mid-to-

engineering business accounted for CNY 42.7 billion a long-term incentive programs now cover 16% of eligible

15% increase from the prior year further strengthening employees letting hard workers gain recognition and

our operational foundation. Overseas contracts secured tangible benefits. Spanning from the Gobi Desert to high

surged to CNY 45 billion up 24% year-on-year driving plateaus and from the Red Sea coast to island nations

the internationalization index above 47%. Sinoma's high- we have navigated our extensive operations with

end equipment has successfully entered mid-to-high- responsibility as our rudder and cooperation as our sail

end overseas markets. We accelerated the development deeply embedding ourselves in our extensive operational

of 9 overseas service centers launching the "Full landscapes. By building infrastructure dedicating

Embracing the Mission Through Business Full Process Full Element" globalization ourselves to charity empowering communities and

Storms and Mountains initiative. Additionally we established 4 localized profit advancing education we have built bridges for cultural

platforms generating over CNY 100 million each exchange through tangible actions and woven bonds of

Composing New Chapters continuously solidifying our pioneer position. We wrote people-to-people connectivity with boundless

Through Shared Adversity. a chapter of perseverance with tangible actions compassion. True to our original dream we have

embodying the spirit of "remaining steadfast written a story of responsibility where harmony

despite countless trials." thrives and beauty is shared by all.Having weathered countless storms the seas now

The year 2025 marked the successful This year we advanced with green as our

conclusion of the 14th Five-Year Plan and the guiding stroke spearheading the

calm we hoist our sails as the tide rises anew.pivotal transition to charting the grand transformation toward a green and intelligent

blueprint for the 15th Five-Year Plan. It was also future—driving simultaneous gains in brand

Looking back on 2025 we crossed oceans and scaled

strength and governance effectiveness. mountains in unity; tempered like steel through trials we a critical year for Sinoma International to stood at the vanguard amidst the surging currents of our

confront challenges with resilience forge The Company advanced steadily in the ENR "Top 250 times.ahead through turbulent times and pioneer International Contractors" ranking received an "A" grade

new horizons amidst transformation. Looking in SSE information disclosure evaluation for the seventh Looking ahead to 2026，as the curtain rises on the

back we began with operation as our starting consecutive year and was honored with multiple awards 15th Five-Year Plan the clarion call for a new journey

point advanced with green as our brushstroke including the Golden Roundtable Award for Best Board

resounds. We will fortify our foundations and accelerate

of Directors and Best Practices in Investor Relations comprehensive progress. Driven by unwavering strategic and walked every step in responsibility— confidence robust innovation momentum and a

together composing a defining masterpiece of Management. Our ESG governance level continued to

rise with CSA scores surpassing 95% of global peers. We broader global vision we are committed to propelling high-quality development for our time.have become the only Chinese mainland enterprise in high-quality development to new heights. In doing so we

our industry to be included in the S&P Global are steadfastly advancing on the journey to becoming a

Sustainability Yearbook demonstrating exceptional world-class service provider for the building materials

capital market presence and accountability. We industry contributing greater wisdom and strength to

successfully established the cement industry's first the sector!

certified "zero-employee factory" and built 48 nationally

certified green mines. Vigorously expanding the global

new energy market we secured our first overseas hybrid

tower project in Saudi Arabia and built an alternative

fuel industrial chain platform recording supply of over 1

million tons. We paint the visionary masterpiece of

innovation with technology bringing to life a bold

vision: "Intelligence Ignites the Future Green

Powers the Planet."

Chairman of Sinoma International

03 042025 Sustainability Report About Sinoma International

Mission and Vision

About Sinoma International

Company profile

Corporate Corporate

Sinoma International Engineering Co. Ltd. (hereinafter referred to as "Sinoma International") is a key enterprise in the engineering Mission Vision

technical and service sectors as well as in international business under the China National Building Material Group Co. Ltd. a

Fortune Global 500 company. It is also the world's largest integrated service provider of cement technology equipment and

engineering system integration a national technological innovation demonstration enterprise a single champion demonstration Promote green and intelligent World-class service provider in the

enterprise in the manufacturing industry a demonstration enterprise for national intellectual property and a winner of the China development and serve a better world material industry

Grand Awards for Industry.In 2001 Sinoma International was established by integrating high-quality assets of the national cement technology and equipment

engineering business. In 2005 it was listed on the Shanghai Stock Exchange (600970.SH). Through technology import assimilation

and independent innovation the Company has successively developed and built a series of production lines ranging from China's

first 1000 tpd production line to the world's largest 14000 tpd production line and made major breakthroughs that enabled One core two drives

China's transformation from an importer of complete sets of key equipment to full localization and then to an exporter of complete

sets thus making great contributions to China's infrastructure construction and economic development. The company offers a Engineering technical services Digital Intelligence

complete industrial chain and system solutions covering mining services cement engineering R&D engineering design (Cement mining environmental

professional equipment manufacturing construction installation commissioning and production line maintenance and operation protection green energy related +

management. It is the only enterprise in the international cement technology and equipment engineering market with a fully diversification) High-end equipment

integrated industrial chain.Sinoma International relies on internationally leading technologies for new dry-process cement production lines backed by The 14th

independent intellectual property rights. Leveraging its comprehensive industrial chain resources—spanning cement technology Five-Year

equipment engineering and services—the company promotes the global export of Chinese products technologies standards and Plan

capital through international engineering projects. It has contracted 373 cement production lines in 91 countries around the world development Develop three strategies Four management principles

maintaining the world's No.1 market share for 18 consecutive years. It has also been repeatedly honored with prestigious awards industries

including the Luban Award for China Construction Engineering and the Gold Award for National High-Quality Engineering. It ranked Five core capabilities

38th among ENR's "Top 250 International Contractors" in 2025 and ranked 10th among Chinese companies on the list. The brand simultaneously

"SINOMA" has become one of the most influential brands in the international building materials and engineering market. Five support systems

Today Sinoma International has evolved into a global enterprise with core competitiveness system featuring scientific and Optimize and strengthen leading business

technological innovation core equipment engineering integration digital intelligence and global operations. With steady Strengthen and expand localized operations

improvement in operation quality and prominent advantages in its corporate value the Company is steadfastly advancing the

corporate mission of "promoting green and intelligent development and serving a better world" and forging fearlessly toward the Cultivate breakthroughs on the second track

vision of becoming a "world-class service provider in the material industry."

Main business indicators in 2025

Operating Revenue reached Net profit attributable to parent shareholders reached Development positioning

49.599 billion yuan 2.862 billion yuan

Leader in technological innovation Main force of high-end intelligent and Newly signed contracts reached Effective backlog reached green transformation

71.2 66.5 Industry promoter of green intelligence Group pioneer of internationalized development billion yuan billion yuan Positioning builder of global development Positioning bellwether of world-class enterprises

05 062025 Sustainability Report About Sinoma International

Main business segments Market distribution

As of 31 December 2025 the main business segments and affiliated enterprises are as follows:

Production operation and

Engineering technical services maintenance services

Cement and mine Operation and maintenance services of

engineering green energy cement production lines mining

environmental engineering operation and maintenance services

and diversified engineering digital intelligent services green energy 91 100+ 1548

and environmental protection services

Countries Overseas Overseas

institutions employees

The Company's main

High-end equipment manufacturing business operations

Research and development design include Other business

processing and manufacturing

technical services etc. of cement Project logistics aggregate

technical equipment mining crushing sales localized product sales 373 470+billion 18years

and material processing equipment

Cement Accumulated Stably ranking

production lines Contract overseas No.1 in the world

Business segment Affiliated enterprise

Sinoma International (Nanjing) Beijing Triumph Sinoma (Handan)

Engineering Co. Ltd. International Construction Co. Ltd.Engineering Chengdu Design and Research Institute Engineering Co. Ltd.segment Sinoma (Zhejiang) of Building Materials Industry Co. Ltd Sinoma (Suzhou) Engineering Design &

CBMI Construction Co. Ltd. Construction Co. Ltd. Research Institute Co. Ltd

Equipment Equipment Group (Tianjin Cement Industry Design & Research Institute Co. Ltd. Hefei Cement

segment Research & Design Institute Co. Ltd. Zhejiang Boyu M&E Industry Co. Ltd. HAZEMAG & EPR GMBH)

Mining segment Sinoma Mining Construction Co. Ltd.Operation and

maintenance services CNBM Smart Industry Technology Co. Ltd.Digital intelligence Sinoma International Intelligent Technology Co. Ltd

Green energy and Sinoma International

environmental Sinoma Overseas Environmental Engineering Sinoma International Water

engineering Development Co. Ltd. Co. Ltd. Technology (Hefei) Co. Ltd.Trade logistics Sinoma International Trading Co. Ltd. Sinoma Cargo (Nanjing) International Logistics Co.Note: The environmental and social data disclosed in this report are the sum of the data of the Company and its subsidiary enterprises irrespective of

the Company's share of equity.

07 082025 Sustainability Report Honors & Awards

Honors & ESG Award Comprehensive Award

Awards

ESG Growth 100 Index of Central ENR's 2025 "Top 250 International Contractors"

Enterprises 38th among global companies and 10th among Chinese companies on the list

AA in Wind ESG Rating

In 2025 Sinoma International No.1 in China's "Overseas EPC Turnover of Survey and Design Enterprises"

remained firmly committed to its

sustainable development strategy

and received notable recognition ESG Golden Bull Award Top 100 No.6 in China's "EPC Turnover of Survey and Design Enterprises" in 2025

from domestic and foreign

governments and institutions for

its performance across various

areas. The 3rd Easy Board ESG+8 "Value 100" List 1 Special Prize for Outstanding Achievements in 2025

China's State-owned Enterprises in Panorama Outstanding

AA- Deepening Reform and Practicein China Chengxin Green Finance's Rating Institutional Attention Award

Best Practice in Sustainable Development Golden Roundtable Award Best Practice

for Listed Companies Best Board of Directors in Investor Relations Management for Listed Companies

Included in S&P Global's

Sustainability Yearbook 2025 Class A in Information Disclosure

(China Edition)

by the Shanghai Stock Exchange (SSE) for seven consecutive years

Sustainability Yearbook 2026

09 102025 Sustainability Report Sinoma International's Top 10 ESG Highlights of 2025

Sinoma International's Top 10 ESG Highlights of 2025

Continuously improving the ESG governance system to build a high-quality ESG brand Improvement in quality and reach of green energy business accelerated the cultivation of green productivity

The Company was selected for inclusion in S&P Global's Sustainability Yearbook (China Edition) 2025 and as the only Chinese We secured our first overseas hybrid tower project in Saudi Arabia and overseas photovoltaic projects—including DCC in Iraq

mainland enterprise in its industry in the Sustainability Yearbook 2026. It was also recognized with multiple ESG honors and Limak in Türkiye—were successfully connected to the grid. The cumulative contracted installed capacity of our green

including the "Central SOEs ESG · Growth 100 Index" the ESG Golden Bull Award Top 100 and the "Best Practice in Sustainable energy business surpassed 5.5 GW.Development of Listed Companies" by the China Association for Public Companies (CAPCO).Great efforts in green R&D enhanced technological supply capabilities Alternative fuel capacity surges delivering tangible green results

In 2025 Sinoma International's green R&D investment accounted for 3.66% of its total R&D investment. The Company secured 190 newly

authorized invention patents and 13 international patents. Additionally two standards were selected by the Ministry of Industry and

Information Technology as exemplary cases for the application and promotion of group standards. Tangshan Heavy Machinery Co. Ltd. We established an alternative fuel industrial chain platform deployed 8 regional companies nationwide built 18 processing

was recognized as a national-level "Little Giant" enterprise (specialized and sophisticated enterprise that produces new and unique centers with annual production and processing capacity reaching 2.25 million tons and sales exceeding 1 million tons.products). Meanwhile Zhongdu Machinery and Xuzhou Heavy Machinery were both honored as "Provincial-level Green Factories."

Four major carbon reduction pathways implemented in Europe winning sustainability award Deepening reform and advancing excellence to build world-class demonstration enterprises

The Company successfully rolled out its suite of four major carbon reduction pathways in high-end markets including France and With the special initiative—Deepening Reform and Advancing Excellence to Build World-class Demonstration Enterprise—

Belgium with green-oriented projects accounting for 92% of newly signed contracts in Europe. These efforts contributed to the successfully concluded the Company was awarded the Special Prize for Outstanding Achievements in SOE Reform reinforcing

Company being honored with the "Sustainability—Net Zero Award." our commitment to becoming a world-class materials industry service provider—characterized by excellence in products

distinction in brand leadership in innovation and modernity in governance.Intelligent manufacturing advanced deeply "zero-employee factory" leading the industry Consistently A-rated in disclosure recognized repeatedly for governance excellence

"Intelligent Cement Production Complete Technology Development and Zero-Employee Factory Application" passed acceptance The Company was rated Grade A for information disclosure by the Shanghai Stock Exchange for 7 consecutive years and once

inspection establishing the cement industry's first certified "zero-employee factory." The "Three Systems" work advanced solidly again awarded the Golden Roundtable Award for Best Board of Directors Best Practices in Listed Company Board Governance

and the company was included in MIIT's "5G Factory" directory. and Best Practices in Investor Relations Management.Deepening international partnerships brand reputation further enhanced Championing role models empowering talent through incentives

We successfully hosted the 3rd Sinoma Cement Green & Intelligence Summit bringing together over 580 industry elites and The Company officially designated its first batch of five Model Worker Innovation Studios held the sixth session of its Young and Mid-

experts from 49 countries. The event was once again featured on China's national television CCTV. We held promotion Career Leadership Development Program and implemented its inaugural incentive payout tied to the commercialization of scientific

conferences and innovation achievement exhibitions in Indonesia and Iraq further strengthening customer relationships and and technological achievements. Additionally it introduced performance-based salary pool rewards for core talent in digital-intelligent

reinforcing our brand presence in key markets. and green energy sectors continuously strengthening the role-model effect and systematic cultivation of a high-caliber talent pipeline.

11 122025 Sustainability Report Sustainable development management

Sustainable development ESG governance structure

management Sinoma International has established an ESG management system under the responsibility of the Board of Directors. The system

led by the management and initiated by the responsible departments requires cross-departmental collaboration and involvement

from entities at all levels.Sustainability strategies The Board of Directors is the highest decision-making body for the Company's ESG efforts responsible for comprehensively guiding the Company's sustainable development strategy and overseeing supervising deliberating and approving significant ESG-

related matters such as the Company's ESG strategy and annual ESG report. The Strategy Investment and ESG Committee is

set under the Board of Directors and responsible for researching and formulating the Company's overall objective and

Sinoma International has formulated the "1324" sustainability strategy. Internally the Company establishes a modernized implementation strategies for ESG management assessing and identifying the Company's ESG risks and opportunities and

corporate governance framework adheres to compliant and clean operation and strives to safeguard employees' rights and evaluating prioritizing and managing important ESG-related matters (including risk management information security waste

interests. By maintaining production and operation in a clean green and recyclable manner Sinoma International aims to solidify management and pollutant emission climate change-related risks and opportunities biodiversity commitments supplier ESG

the foundation for our sustainable development. Externally Sinoma International continuously enhances service quality management occupational safety and health labor management business ethics etc.) and reporting significant matters

builds a sustainable supply chain seizes opportunities in clean technologies pursues breakthroughs in the innovation of green and regarding ESG work to the Board of Directors on a regular basis.low-carbon products and services and actively responds to climate change thus building a community with a shared future for The Company clarifies the ESG management responsibilities of the leading department and each functional management

mankind that supports the sustainability of the industry society and global community. department while establishing and improving ESG management norms and processes. Meanwhile the Company statistically

analyzes ESG-related information and data organizes and carries out ESG practice activities implements specific objectives and

action plans set up by the Company in ESG management and establishes effective communication with ESG stakeholders.Affiliated enterprises clearly define the ESG main responsible department improve their ESG management systems under the

Company's unified planning and carry out various forms of responsibility fulfillment practices in accordance with local conditions

under the unified planning of the Company.Peg remuneration of management to ESG

performance

In accordance with the Company's development strategy and

annual budget the Company has set clear annual business

objectives which are decomposed and implemented level by

Board of Directors level among the Company's management team affiliated enterprises and headquarters departments. The 2025 Annual

Business Performance Responsibility Letter has been signed

accordingly. The performance assessment indicator system

fully integrates ESG-related issues covering such key areas as

work safety environmental management energy

conservation and consumption reduction carbon peaking

and carbon neutrality goals integrity and compliance data

privacy protection employee development ESG information

disclosure and ESG rating improvement. Among them

"Energy Conservation and Ecological Environment Protection"

serves as a key indicator accounting for 10% of the overall

Strategy Investment and ESG business assessment weight. This indicator is applied to

Committee assessments at all levels of the Company's headquarters and affiliated enterprises and the performance evaluation of both

headquarters employees and members of the senior

management of affiliated enterprises is directly linked to this

indicator.Guided by "one core three values two main lines and four goals" the Company establishes a standardized and transparent To systematically advance the institutionalization and systematization of ESG management the Company has

governance system fosters an honest and clean business environment builds a dynamic and capable talent team and promotes formulated and issued the Sinoma International ESG

the healthy and sustainable development of the Company. The Company adopts a clean and environmentally friendly production Assessment and Management Measures further clarifying the

method advances a low-consumption and recycling operational model and maintains a healthy and harmonious ecological ESG evaluation criteria procedures and application

environment to drive its green and sustainable development. The Company breaks through innovative and advanced technological mechanism of assessment results. In accordance with these rules the final ESG assessment score is directly integrated into

capabilities leads the intelligent and high-end industrial upgrading strengthens the partnership for co-construction and win-win the annual business performance appraisal system so as to

outcomes and enables the sustainable development of the industrial chain. The Company provides green and low-carbon ESG Leading Department fully align ESG performance with business accountability

solutions cultivates the ability to respond to global climate change practices the "Belt and Road" initiative of consultation co- + Functional Affiliated Enterprises incentives and restraints and promote the deep integration of sustainable development goals into the Company's operation.construction and sharing promotes the deep integration of global technology talent and culture and contributes to the Departments

harmonious and sustainable development of the world.

13 142025 Sustainability Report Stakeholder Engagement

Stakeholder Engagement

Sinoma International has identified key stakeholders related to our operations and maintain smooth and efficient communication

with them. At the same time we actively understand and respond to stakeholders' expectations and demands involving them in

the ESG decision-making process.Key stakeholders Primary communication channels Expectations and appeals Communication and response Key stakeholders

Primary communication

channels Expectations and appeals Communication and response

* ESG materiality * Implement national * Continuously strengthen

assessment policies compliance management

questionnaires * Procurement bidding * Practice fair competition * Implement sunshine procurement* Support regional * Participate in government related notice

* Phones/Emails development meetings and cooperation * Strengthen strategic * Create a responsible supply chain

Governments and * Inspection and cooperation* Conferences and * Compliant operations by * Respond to relevant national * Participate in industry

regulatory authorities supervisionconversations law policies * Promote industry organizations and conferences* Supplier/Contractor development * Expand multi-party communication

* Press * Create market values * Continuously create business conferences

releases/Announcements * Control the operation risk performance * Phones/Emails

* ESG materiality * Strengthen information * Improve corporate governance and

Suppliers/Contractors

* Conferences and

assessment disclosure risk management conversations

questionnaire

* Develop green technologies * Periodically publish reports and * ESG materiality

* Annual/Interim promptly disclose information

performance release * Protect the ecological

assessment

conferences environment

* Hold shareholders' meetings to questionnaires

Shareholders/Investors strengthen investor relationship

* Shareholders' meetings management

* Investor Meeting * Strengthen technological R&D for

low-carbon industry development * Phones/Emails * Practice fair competition * Maintain a healthy market

* Adhere to green production and * Conferences and * Strengthening strategic co- ecosystem

construction conversations operation * Participate in industry

* Board meetings * High-quality service * Lean product quality * ESG materiality * Develop Green Technology organizations and conferences

* Shareholders' meetings * Compliant operations by * Establish and improve customer Industry/Business assessment * Promote industry * Expand multi-party communicationquestionnaires

* Employee law service system partners development * Strengthen technological R&D for

meetings/seminars * Intensify innovation efforts * Continuously strengthen * Response to climate low-carbon industry development

* ESG materiality * Strengthen information compliance management change

Directors and senior assessment disclosure * Strengthen technological R&D

management questionnaires * Periodically publish reports and

promptly disclose information

* Phones/Emails * Adhere to energy saving * Adhere to green production and

* Employee * Remuneration and welfare * Develop a competitive salary and emission reduction construction

meetings/seminars guarantee system and welfare guarantee * Conferences and

* Employee performance * Employee growth and mechanism

conversations * Protect the ecological * Improve energy and resource use

* ESG materiality environment efficiency and implement energy appraisal interviews development * Organize employee training assessment * Engage in public welfare conservation and emission

* On-site investigation * Occupational health and improve the promotion reduction

safety mechanism and build the Community

questionnaires and charity

* Employee activities development platform members/Public welfare * Support community * Carry out voluntary public welfare

Employees * Employee care activities* Improve working conditions and organizations construction

* Democratic management care for employees in difficulties * Assist in rural revitalization

* Carry out employee activities and * Hold enterprise open day activities

strengthen employee

communication

* Phones/Emails * Ensure product quality * Ensure product quality * Press * Maintain good relationships * Expand publicity channels

* Conferences and * High-quality service * Improve client service system releases/Announcements

conversations * Establish positive * Invite stakeholders to visit* Protect customer rights and * Strengthen technological R&D for * Media interview interaction

* ESG materiality interests low-carbon industry development * Communicate with NGOs

assessment * ESG materiality * Develop green technologies * Adhere to green production and

Clients questionnaires Media assessment

* Response to climate construction questionnaires

changes

15 162025 Sustainability Report Sustainable development management

Materiality assessment

Sinoma International has integrated materiality assessment into its overall enterprise risk management (ERM) process and

conducts materiality assessment on an annual basis. In 2025 in accordance with the requirements of the Self-Regulatory Guidelines

for Listed Companies No. 14 – Sustainability Reports (Trial) issued by the Shanghai Stock Exchange (hereinafter referred to as the

"Guidelines") and with reference to mainstream domestic and international sustainability standards the Company systematically

carried out its first materiality assessment based on the "double materiality" framework.High

Based on the 21 core issues specified in the Guidelines this assessment has incorporated company-specific issues in light of

the Company's industry characteristics as a global leader in building materials technology equipment and engineering

Innovation-Driven

services resulting in an assessment list totaling 23 issues. Development

In accordance with the four core steps for "double materiality" assessment outlined in the Guidelines the Company identified Product & Service Anti-Bribery and Anti- Employees

the short- medium- and long-term financial impacts of issues on the Company as well as the actual and potential impacts of Safety and Quality Corruption

the Company's performance on various issues to the economy society and the environment. The detailed analysis process is

as follows: Due DiligenceData Security & Customer

Privacy Protection

Supply Chain Security

Understanding the context of the Company's activities Developing the issue list Environmental & Resilience

and business relationships 01 02 Compliance Management Anti-Unfair

Competition

* Conducted a comprehensive analysis of its core business value * Using the 21 foundational issues Social Contribution

chain segments and key business relationships and systematically specified in the SSE Guidelines as a Information Disclosure Climate Change

examined the sustainability impacts of internal operations project framework the Company further Stakeholder Circular Green and Low-Carbon Mitigation &

execution and upstream and downstream supply chains on society identified two material issues with EngagementEconomy Industrial Chain Adaptation

and the environment. distinctive characteristics: "Green

and Low-carbon Value Chain Pollutant

* Identified potential risks and opportunities for the Company arising EmissionsDevelopment" and "Enhanced ESG Waste Management

from changes in the external environment taking into account Information Disclosure" based on Water Resource

macroeconomic policies industry regulatory developments and industry characteristics regulatory Management & Utilization

sustainability trends in 2025. Technology priorities and peer benchmarking Ethics

* Mapped and defined key stakeholders including employees resulting in a preliminary list of 23

customers suppliers investors government and communities as issues.an important foundation for subsequent assessment. Ecosystem and Energy Use & Biodiversity Management

Conservation

Fair Treatment of Rural Revitalization

Small and Medium-

Reviewing and Confirming 04 Assessing Materiality of issues 03 sized Enterprises issues

* The Company integrated the results * Impact Materiality Assessment: Extensive stakeholder feedback was

of impact materiality and financial collected through questionnaires from both internal and external

materiality assessments and used parties. A comprehensive evaluation was conducted based on two

matrix analysis to map the dimensions: the "severity of impact" (including scale scope and

distribution of each issue across the irreversibility of impacts) and the "likelihood of impact." The final

dual dimensions. Based on the impact materiality assessment results were formed by synthesizing

Company's strategy and risk multi-stakeholder evaluations and incorporating advice from Financial Materiality

management requirements internal and external experts. Low High

materiality thresholds were set and

a final list of high-priority issues with * Financial Materiality Assessment: The Company engaged senior

"double materiality" was executives heads of business and functional departments and

determined. relevant experts to analyze the potential short- medium- and long-

term impacts of each issue on the Company's financial position

* The list was reviewed and confirmed operating results and cash flow. This analysis was based on two

by the Company's Strategy dimensions: the "likelihood of financial impact occurrence" and the

Investment and ESG Committee "magnitude of financial impact."

serving as the substantive basis for

disclosures in this report.

1718

Impact Materiality2025 Sustainability Report The 14th Five-Year Plan: A New Chapter in Our Sustainable Development

Practice as Evidence: Painting Low-Carbon Landscapes

The 14th Five-Year Plan: A New Chapter

in Our Sustainable Development Innovation-driven low-carbon breakthroughs

At the Building Materials Industry Conference the Company officially launched the world's first oxy-fuel combustion coupled

carbon capture technology for cement—the Qingzhou CUCC 200000-tonne Oxy-fuel Combustion Enrichment and Purification

Demonstration Project. As the world's largest oxy-fuel combustion carbon capture and utilization demonstration project in the

During the "14th Five-Year Plan" period Sinoma International achieved leapfrog development from strategic consciousness to cement industry this project utilizes independently developed technology to boost the CO2 concentration in flue gas to over 80%

global leadership. Within the historical continuum of sustainable development we have made a decisive leap—advancing from top- while reducing comprehensive energy consumption by more than 40% compared to conventional methods.level design to systematic implementation and from technological breakthroughs to global empowerment. Over the past five years The project has been featured in a special report by the Global CCS Institute and received the 2024 "Climate Action Technology

we have not only built an ESG governance framework fully aligned with our corporate strategy but have also left an indelible mark and Engineering Award" from the World Cement Association (WCA) marking the Company's pioneering role in addressing the

of Sinoma International on the green transformation of the global cement industry through a series of milestone breakthroughs and carbon reduction challenges facing the industry.benchmark projects.Driving growth with a clear strategic roadmap Green benchmark projects leading the way

Thanks to its cutting-edge low-carbon solutions the Company has successfully implemented green projects across multiple

We have embedded the concept of sustainable development into our core strategy establishing the forward-looking "1324" European countries establishing itself as the Chinese contractor with the largest portfolio of low-carbon projects in the region.Sustainable Development Framework. This framework guides our ESG journey with a dual focus: "Strengthening the Foundation of Notably green initiatives account for 92% of newly signed contracts in Europe.the Company's Own Sustainable Development" and "Serving the Industry Society and Global Sustainability." Meanwhile aligned In France the SPL project—the first rotary coupled clay calcination line for Holcim Group worldwide—has achieved 100% fuel

with the goals of the 14th Five-Year Plan we have developed a rigorous strategic ESG action plan. Through a closed-loop target substitution creating a "zero-fossil-fuel" green facility. It cuts CO2 emissions by 100000 tons annually and delivers around EUR 8.5

management mechanism we ensure the effective implementation of all tasks. million in carbon credit revenue each year.The Go4Zero project in Belgium marks the construction of Europe's first "zero-carbon" plant. Once operational it is expected to

"1324" Sustainable Development Strategy reduce CO2 emissions by 1.1 million tons per year with a fuel substitution rate of 95%.Resource recycling and green manufacturing

The Wengfu Phosphogypsum Decomposition to Sulfuric Acid and Co-produced Cement Project in Guizhou successfully applied self-

"Solidify the foundation for our "Support the sustainability of the developed phosphogypsum resource utilization technology on the world's largest phosphogypsum processing line. The project

sustainable development" industry society and global community" reduces limestone mining by 800000 tons annually and cuts CO2 emissions by 300000 tons per year.The Poland MAL01 Project developed high thermal substitution rate alternative fuel direct injection technology for cement kilns

achieving an alternative fuel thermal substitution rate of at least 90%. The project was selected as a "Typical Case of China-EU

Green and Low-Carbon Development Cooperation."

The France MK3 project achieved a thermal substitution rate exceeding 80% enabling a reduction of 241 kg of CO2 per ton of

Systematically Guiding the Company's ESG Progress clinker after operation with annual emission reductions of approximately 192000 tons and estimated annual carbon revenue of

about EUR 20 million.Green Leadership: Making Low-Carbon Breakthroughs Green operations and smart mines

The High-end Equipment Intelligent Manufacturing Park officially commenced operations integrating top-tier cement equipment—

Strategic Guidelines: Deepening Our Low-Carbon Footprint awarded with honors such as "Single Champion" "Pillar of Great Power" and the National Science and Technology Progress

Award—to establish a world-class intelligent manufacturing base. The Company has cumulatively developed 193 green mines and

We have embedded climate change considerations across our decision-making production and daily operations. This has 15 green factories including 48 national-level green mines and 9 national-level green factories.culminated in the development of the Carbon Peak and Carbon Neutrality Implementation Plan of SINOMA International

Engineering Co. Ltd. which provides a definitive timeline and roadmap for our journey. By executing this plan we are actively The Chuzhou CUCC Green Mine Project ranked first in the national green mine selection features an advanced 5G smart mining

contributing to the national and the Group's "dual-carbon" goals demonstrating leadership through concrete actions. system that ensures efficient production with minimal environmental impact.

19 202025 Sustainability Report The 14th Five-Year Plan: A New Chapter in Our Sustainable Development

Digital Intelligence Driving Talent Empowering Practice as the Soil: Cultivating the Fertile Ground of Craftsmanship

In response to the national digital development strategy Sinoma International released the 14th Five-Year Plan for Digital Strategy

innovatively proposing the "54321" digital development blueprint. This establishes our vision to "comprehensively build a Digital and intelligent integration and interconnection

digitalized enterprise and become a world-leading provider of intelligent solutions for the materials industry" thereby injecting

technological impetus into our ESG management. The "Development of Intelligent Cement Production Complete Technology and Application of Zero-Employee Factory" project

successfully passed acceptance review establishing the cement industry's first certified "zero-employee factory." Alongside this

milestone the Equipment ERP Platform Digital Project Supervision Platform and Computing Power Platform were completed and

launched. The Tax Platform achieved full-level enterprise operation while Version 1.2 of the Group Construction Enterprise Safety

Management Platform was successfully released. These achievements represent excellent practices in delivering intelligent

solutions for the building materials industry.To fully build a digitalized Sinoma

International and become a world-class

intelligent solution provider for the

materials industry Industrial innovation and empowerment

The Company added six new nationally recognized "Little Giant" enterprises—specialized and sophisticated SMEs that produce

Five digital Digital R&D and Smart production Intelligent business Comprehensive and Industrial

capabilities design and operations management agile services synergy

novel and unique products further reinforcing its core competitiveness. We have also successfully built 60 smart factories and 33

digital mines leveraging intelligent technologies to empower the transformation and upgrading of the industry.Four digital Unified planning Unified standards Unified platforms Unified resources

transformations Talent cultivation and incentives

The Company officially designated its first five Model Worker Innovation Studios harnessing the exemplary influence of master

craftsmen to inspire innovation across the organization. The "Emerging Leaders Training Program" has been launched as a flagship

Digital functional Digital business Digital products training initiative to systematically develop future management leaders. A robust mechanism for the selection development

management management and services retention and deployment of project managers has been institutionalized aligning talent management with structured innovation

Smart incentives. Most notably the Company executed its inaugural incentive payout linked to the commercialization of scientific and

human Smart Market R&D and Smart cement Energy Industrial chain technological achievements introducing performance-based salary pool rewards for core talent in digital-intelligent and green

resources safety synergy design factory management synergy energy sectors—continuously reinforcing role-model leadership and a sustainable talent pipeline.Three Smart Smart Smart Smart Smart mine Intelligent Digital industrial

application finance investment procurement manufacturing equipment O&M integration

platforms Social responsibility and contribution

Carbon peaking &

Intelligent office EPC project management carbon neutrality Smart mine Industry spare O&M parts platform The Company prioritizes local employment as a key contribution to host communities. By 2025 we had engaged over 22000 local platform workers with full-level overseas local employees (including subcontractors) accounting for more than 63% of the workforce. We

regularly host "Smart Use of Resources Open Day" events inviting local employees and their families to participate which

Integrated operations management & control platform strengthens their sense of belonging and connection to the Company. Cultural experience sessions are also organized to foster

mutual understanding and integration. Besides we actively support the Group's charity fund and encourage employees to engage in

volunteer activities. Through ongoing charitable donations disaster relief efforts and community project assistance we remain

committed to giving back to society in tangible ways.One set of data

standards One data platform One data governance system Two-layer

digital

infrastructure Unified technology Hybrid cloud

platform deployment Global network

One governance Digital management model Digital organization Digital institutional system

system

21 222025 Sustainability Report The 14th Five-Year Plan: A New Chapter in Our Sustainable Development

Steady Efficient and Standardized Governance

Sinoma International has systematically established an ESG governance system guided by strategy supported by organizational

structure and backed by institutional policies. The Company has formally developed and implemented an ESG governance

framework at the Board level. In accordance with the Implementing Rules for the Strategy Investment and ESG Committee of the

Board of Directors the Strategy Investment and ESG Committee is fully responsible for overseeing ESG-related matters including As we reflect on the 14th Five-Year Plan period

climate change. Its duties include reviewing the sustainable development vision monitoring the execution of targets and strategies we have made steady and significant progress on our journey toward sustainable development. Through

and reporting material issues to the Board of Directors.robust systems technological breakthroughs and pioneering demonstration projects we have not only

achieved a leapfrog improvement in our ESG management capabilities but also showcased the innovative

Systems as the Shield: Strengthening the Baseline of Compliance strength and responsible leadership of Chinese enterprises in serving the global cement industry's green

and low-carbon transition.The Company has systematically developed an ESG management system. It has publicly released a comprehensive set of

sustainability-related policies covering key areas such as the environment occupational health and safety anti-corruption and

business ethics human rights protection supplier conduct sustainable supply chain management biodiversity conservation

Board diversity and tax compliance. The Company has formulated an ESG performance evaluation method for its subsidiaries

establishing a quantitative assessment system that sets clear phased requirements for their ESG work. By improving special ESG Looking ahead

management systems the Company has integrated ESG requirements into all aspects of its overall decision-making production we will remain steadfast in our commitment to sustainable development. We will leverage the governance

operations and daily management. technological and practical strengths accumulated during the 14th Five-Year Plan period as sustained

momentum to drive industry progress and contribute to global ecological well-being. As we embark on the

Practice as the Mirror: Reflecting the Light of Good Governance 15th Five-Year Plan we will strive to write a new chapter in the modernization journey featuring harmonious

coexistence between humanity and nature.Governance innovation

Building on the momentum of the "Three-Year Action Plan of State-owned Enterprises Reform" and the subsequent "Reform

Deepening and Upgrading Initiative" the Company has evolved from "Double Hundred" pilot to comprehensive reform—repeatedly

recognized by SASAC as a benchmark and top performer in both the "Double Hundred" and "Sci-Tech Reform" evaluations.The Company has established a robust "1+N" corporate governance framework continuously refining its Board deliberation

protocols and accountability mechanisms. It has achieved full compliance with Board establishment requirements ensuring that

external directors hold a majority of seats. Pioneering the "Nine Joint Working Mechanisms for External Directors" the Company has

significantly enhanced the scientific rigor procedural standardization transparency and operational efficiency of Board decision-

making.Performance breakthrough

Our score in the S&P Global Corporate Sustainability Assessment (CSA) rose from a relatively low level at the beginning of the 14th

Five-Year Plan period to 62 points surpassing 95% of global peers in the cement industry. This outstanding performance has been

included in both the S&P Global Sustainability Yearbook 2025 (China Edition) and the S&P Global Sustainability Yearbook 2026

(Global Edition) marking that our ESG management has reached internationally advanced levels.

23 242025 Sustainability Report Consolidating Governance Foundations to Ensure Steady and Healthy Operations for Development

Strengthening Governance

Foundations

Sinoma International continues to optimize corporate governance standardize governance structures

Consolidating Governance deepen ESG governance effectively protect shareholders' rights and interests and focus on enhancing corporate governance capabilities.Foundations to Ensure Steady

and Healthy Operations for In 2025 the Company received a series of corporate governance awards

Development * The 20th "Golden Roundtable Award"—"Best Board of Directors"

"Most Strategic Chairman Award"

* 2025 Best Practices in Sustainable Development of Listed Companies

Strengthening Governance Foundations

* 2025 Best Practice Cases in Listed Company Board Governance

* Consecutively honored as Best Practice for Annual Report Performance Briefings of

Compliance and Integrity in Operations Listed Companies for four years

Safeguarding Employee Rights and Interests Standardizing governance structures

In accordance with laws regulations and normative documents such as the Company Law of the People's

Republic of China the Securities Law of the People's Republic of China and the Code of Corporate

Governance for Listed Companies Sinoma International has established a comprehensive framework of

corporate policies and a robust governance structure comprising the Shareholders' Meeting the Board of

Directors and the Management. This system is characterized by scientific rigor standardization clear

accountability effective checks and balances and operational efficiency thereby continuously enhancing the

transparency and efficacy of our corporate governance.In 2025

The Company held 10

7 shareholders' meetings board meetings

25 262025 Sustainability Report Consolidating Governance Foundations to Ensure Steady and Healthy Operations for Development

The General Meeting of Shareholders is the highest authority of the Company. In strict compliance Safeguarding shareholders' rights and interests

General with the Rules for Shareholders' Meetings of Listed Companies and the Articles of Association the

Meeting of Company duly convenes and holds shareholders' meetings. We are committed to safeguarding Sinoma International attaches great importance to creating shareholder value adheres to rewarding shareholders strengthens

Shareholders shareholders' lawful rights ensuring equitable treatment for all and maximizing accessibility to proactive investor relations management and has significantly enhanced its image in the capital market. Furthermore the

facilitate the full exercise of shareholder rights. Company has established a robust mechanism to safeguard shareholders' rights and interests and enhanced its engagement

framework. By timely and accurately disclosing key corporate information—ranging from major strategic decisions and financial

performance to CSR initiatives—we have earned the trust and steadfast support of our shareholders and investors.Creating value for shareholders

The Company's board of directors consists of 7 directors including 5 external directors (3 of whom

are independent directors). The board has established four specialized committees: the Strategy Sinoma International continuously optimizes business management and enhances operational quality to create outstanding and

Investment and ESG Committee; the Audit and Risk Management Committee; the Remuneration stable value returns for shareholders. In 2025 the Company achieved steady progress in its operating performance enhancing its

and Assessment Committee; and the Nomination Committee effectively ensuring scientific value creation capabilities and bolstering market recognition and investor confidence.strategic decision-making.Board of The Company ensures board diversity by comprehensively considering factors such as age

Directors educational background professional experience skills and industry expertise.The Company has paid cash dividends

consistently every year since its listing with cumulative distributions surpassing

CNY 7.4 billion

Standardizing information disclosure

General Meeting of

Shareholders Sinoma International strictly complies with the Administrative Measures for Information Disclosure of Listed Companies to fulfill its

information disclosure management obligations ensuring the authenticity accuracy completeness and timeliness of information

Strategy Investment and ESG disclosure. The Company's information disclosure strategy is anchored in regulatory compliance while emphasizing precision in

Committee detail distinctive content and brand enhancement. By proactively articulating our business philosophy to investors we aim to

facilitate accurate value discovery. The Company strictly adheres to its Insider Information Registration and Management Policy

standardizing the reporting transmission and confidentiality protocols for material non-public information. By ensuring robust

Audit and Risk Management information security we facilitate shareholders' timely access to accurate updates on operational developments financial

Committee performance and material events thereby effectively safeguarding the legitimate rights and interests of all investors. In 2025 the

Board Secretary Board of Directors Company released four periodic reports and 83 ad-hoc announcements achieving a record of zero corrections zero supplements

and zero written regulatory inquiries. This outstanding performance contributed to the Company securing the Shanghai Stock

Remuneration and Assessment Exchange's highest "Class A" rating for information disclosure for the seventh consecutive year.Committee

Unblocking communication channels

Nomination Committee

Sinoma International has elevated its proactive investor relations strategy by diversifying communication channels and formats.Management Team Leveraging a hybrid "online-plus-offline" approach the Company actively engages with retail shareholders institutional analysts

and potential investors to provide comprehensive insights into operational performance strategic planning and key

developments. Through regular performance briefings roadshows and multimedia content we facilitate direct dialogue between

the Management and the investment community. This ensures the accurate and holistic transmission of corporate value fostering a

Governance structure virtuous cycle where effective management drives sustainable value growth.

27 282025 Sustainability Report Consolidating Governance Foundations to Ensure Steady and Healthy Operations for Development

Compliance and Integrity By closely tracking changes in the legal and regulatory landscape the Company ensures prompt compliance reviews and drives a dynamic cycle of policy lifecycle management. This involves the repeal of obsolete rules amendment of existing ones and

in Operations enactment of new provisions. This continuous optimization of our institutional framework robustly underpins our compliance management system. In 2025 the Company conducted five group-wide compliance risk inspections and completed effectiveness

evaluations for five subsidiaries' compliance systems.Amidst a complex and challenging global environment Sinoma International adheres to a prudent "bottom-line" mindset Cultivating a compliance culture

prioritizing risk awareness. The Company has constructed a multi-layered defense system by integrating rigorous management

controls with strong ethical governance. Specifically we have established comprehensive risk prevention mechanisms

strengthened internal controls and enforced strict compliance while reinforcing Party conduct and integrity to build robust anti- Sinoma International prioritizes the building of integrity and compliance culture

corruption moral barriers. This holistic approach has securely anchored the Company's trajectory toward sustainable high-quality

development.* Throughout the year 8285 employees across all levels signed Compliance Commitment Statement.Upholding law-based compliance * The annual Rule of Law and Compliance Management Conference was convened to analyze achievements and shortcomings while deploying key tasks.Sinoma International systematically strengthens its compliance framework by refining systems optimizing operational * We orchestrated a multi-tiered training program mobilizing subsidiaries at all levels to attend sessions hosted by SASAC the

mechanisms enforcing accountability and cultivating a robust compliance culture. By embedding compliance requirements into Group and Sinoma. These trainings covered critical topics including anti-monopoly compliance overseas operations

every facet of business operations and integrating them throughout the entire lifecycle of decision-making execution and intellectual property risk mitigation and cross-border M&A. Complementing these external sessions we independently

oversight the Company provides a solid foundation for deepening reforms and achieving high-quality development. launched a series of internal legal compliance workshops to interpret and implement newly enacted laws regulations and

policies. In total the Company conducted or facilitated 15 training sessions throughout the year reaching a cumulative

Refining the compliance system attendance of 6649 person-times.* The Company ensured timely dissemination of critical legal and regulatory updates as well as the status of internal

Sinoma International has built a robust compliance management system with compliance committees established across all compliance operations to senior executives and department heads through a multi-channel approach comprising quarterly

organizational tiers. Furthermore the Company has either established specialized legal and compliance departments or designated compliance bulletins executive management meetings and specialized training sessions.specific units to oversee these functions. It has issued the Overseas Comprehensive Compliance System Construction Plan and

actively fulfills its compliance responsibilities. The Company has fully institutionalized the "First Person Accountable" mechanism to * The Company maintains a mechanism for the immediate report of any legal or compliance violations to senior management

drive legal governance. A multi-tiered management system has been established featuring strategic leadership from the "First for review. Accountability is strictly enforced against accountable parties based on the specific findings.Person Accountable" coordination by the Compliance Committee and professional guidance from the General Counsel.Operationally the Legal & Compliance Department spearheads implementation while business and functional units bear primary * During the reporting period the Company incurred no violations of laws or regulations nor was it subject to any administrative

accountability for execution. Complementing this disciplinary inspection and audit departments provide independent supervision. penalties or fines.Together these forces create a synergistic engine to propel comprehensive compliance management.The Company consistently strengthens professional compliance staffing enhancing the development of legal compliance

specialists and full-time/part-time compliance management personnel. By the end of 2025 the Company and its subsidiaries Strengthening internal control

employed 54 full-time compliance officers and 436 part-time compliance administrators.In 2025 the Company launched a comprehensive effectiveness evaluation of its compliance management system. This initiative Sinoma International has established a robust risk and internal control framework and developed comprehensive control manuals.involved organization-wide self-assessments across all tiers culminating in an annual Compliance Management Report submitted The Company coordinates annual internal control evaluations across all organizational tiers tracks the implementation of

to the Board for review. Furthermore the system underwent rigorous third-party audit and certification. These measures have corrective actions and conducts effectiveness testing on critical business processes. Furthermore by engaging external auditors for

significantly enhanced the scientific rigor and operational precision of our compliance framework propelling compliance independent internal control audits and timely disclosing both evaluation and audit reports we have effectively strengthened our

management to new depths. The Company has successfully obtained GB/T 35770-2022/ISO 37301: 2021 Compliance Management corporate governance and propelled high-quality development.System certification receiving the "Dual Certification" from SGS.Strengthening compliance frameworks In 2025

Sinoma International has rigorously implemented a multi-layered compliance framework grounded in national laws—including the

Central State-owned Enterprises Compliance Management Measures the Advertising Law of the People's Republic of China and the the Company further strengthened internal controls conducted internal control evaluations and audits achieving full

Trademark Law of the People's Republic of China—as well as Group and corporate regulations such as the Compliance coverage of the internal control system across all levels. We organized subsidiaries across all levels to carry out internal

Management Policy and the Guidance for Overseas Business Compliance. To operationalize these standards the Company issued control self-assessments and internal control audits completing 84 internal control compliance audits with 100%

distinct Overseas Compliance Manual and Domestic Compliance Manual mandating strict adherence to business ethics including rectification of internal control deficiencies. A total of 33 supervision evaluations on internal control were completed by

anti-bribery and anti-money laundering and specific operational requirements for trademark and advertising management. subsidiaries. We directed our overseas entities to strictly enforce internal control manuals to bolster management

Furthermore to proactively mitigate risks in critical areas such as contract signing accounts receivable recovery M&A and dispute effectiveness. We have secured unqualified internal control audit opinions from independent external auditors for 14

resolution Sinoma International released the Legal and Contract Risk Management Manual for Overseas EPC Projects and the

Model Subcontract Text for International Engineering Projects. These initiatives provide comprehensive targeted guidance to all consecutive years.subsidiaries.

29 302025 Sustainability Report Consolidating Governance Foundations to Ensure Steady and Healthy Operations for Development

Deepening risk management

Sinoma International has established a systematic and effective risk management system. In this system business and functional Sinoma International is committed to fostering a culture where everyone prioritizes risk management. To achieve this the Company

departments serve as the first line of defense for daily risk management; professional departments such as Legal and Compliance has appointed Risk Management Officers in every department and designated Risk Liaisons in all subsidiaries. Through

Department act as the second line of defense for continuous risk monitoring; and departments including Discipline Inspection strengthened promotion training and implementation of risk management practices we actively drive the development of a

Audit and Patrol serve as the third line of defense to implement risk oversight thereby solidifying the Three Lines of Defense. The robust risk culture.risk function of the third line of defense operates independently from business and functional departments and reports

independently to both management and the Board of Directors. Risk management training

The Company annually prepares a risk management report covering major risk identification and assessment risk management

strategies and solutions which is subject to review by the Board's specialized committees. In 2025 the Company identified and

* The Company leverages various platforms—including localized lecture series strategy seminars training sessions on

assessed five company-level major risks in strategy and operational management proposed 16 risk mitigation measures and standardized corporate governance operations and follow-up training for independent directors organized by the

experienced no major risk events throughout the year. Shanghai Stock Exchange—to provide both regular and ad-hoc risk management training to all Board Directors.Risk closed-loop management mechanism

* Furthermore the Company engages professional intermediaries to deliver specialized training on audit quality and risk

prevention to internal auditors risk management officers and compliance officers. These initiatives are designed to

further enhance the risk acuity and preventive awareness of all practitioners.At the beginning of each year the Company organizes comprehensive risk

01 screenings collecting identified risks from risk-owning departments and

Identification subsidiaries to continuously update the risk information database. Promoting fair competition

Sinoma International strictly prohibits unfair competition practices implements the Measures for Accountability for Illegal Business

Risks are evaluated for significance based on their impact and likelihood Operations and Investments and adheres to specific requirements in its domestic and international compliance manuals regarding

categorized into four levels: General Major Significant and Critical. Through 02 trade secret protection anti-bribery anti-monopoly prohibition of abuse of market dominance and anti-unfair competition. The

this process the top five risks requiring prioritized control are identified. Evaluation Company enhances employee awareness through anti-unfair competition training; The Company has established reporting

procedures for anti-competitive behavior publicly disclosing reporting channels through its official website internal OA system

and compliance department hotline to stakeholders such as employees suppliers and customers and has implemented

An early-warning mechanism for major risks is established and monitoring standardized processes for report acceptance investigation and feedback. The Company maintains strict confidentiality and

03 indicators are updated in a timely manner. The Company organizes

robust protection for whistleblowers to ensure reported matters are handled promptly and impartially.subsidiaries functional departments and key projects to participate in

Monitoring annual dynamic risk monitoring. Each control unit is required to submit

In 2025 the Company recorded no incidents of unfair competition such as abuse of market dominance confusion marketing

quarterly reports on risk control status and risk development trends. commercial bribery false advertising trade secret infringement or fraudulent prize promotions.Risks showing a continuous upward trend on the dashboard are given Upholding integrity as the bottom line

priority attention and analysis. A Quarterly Risk Monitoring Report is

generated detailing risk exposure risk appetite risk performance risk 04 Sinoma International strictly adheres to anti-corruption policies and regulations having perfected an integrity management system

prevention and control objectives specific control measures and any newly Analysis that encompasses institutional constraints preventive early-warning mechanisms and oversight of disciplinary enforcement. The identified risks. Company undertakes diverse initiatives to foster integrity culture leveraging the foundational role of education to resolutely

advance Party conduct clean governance and anti-corruption efforts in depth thereby providing robust safeguards for high-quality

Risk exposure is reviewed on a quarterly basis. Guided by the overall risk development.

05 appetite assessment result of being "Neutral" a prudent risk management policy is adopted. Through quarterly dynamic risk analysis and monitoring

Response the effectiveness of the Business Continuity Management (BCM) plan is Strict adherence to integrity standardscontinuously verified and refined.Sinoma International strictly complies with policies and regulations including the Provisions on Clean Practices for Leaders of State-

Risk management performance is integrated into the KPIs for both senior Owned Enterprises Regulation on Disciplinary Actions Against the Managerial Professionals of State-owned Enterprises Code of

executives and employees. For risk-owning departments risk management is Integrity and Self-Discipline for Members of the Communist Party of China Rules for Supervision and Disciplinary Enforcement by

also included in their annual performance indicators. Personnel who make 06 Discipline Inspection Commissions of the Communist Party of China and Regulations on CPC Disciplinary Action. The Company

exceptional contributions to risk control are recognized and rewarded Accountability rigorously implements group-level systems such as the Regulations Prohibiting Business Relationships Between Group Enterprises through an excellence award mechanism. and Relatives or Other Specified Persons of Enterprise Leaders Engaged in Business Activities.

31 322025 Sustainability Report Consolidating Governance Foundations to Ensure Steady and Healthy Operations for Development

Fortifying Defenses Against Corruption * All Board directors are required to proactively disclose social relationships of their

immediate family members.Sinoma International strengthens Party conduct and clean governance establishing and continuously improving mechanisms for

punishment and corruption prevention to solidify the ideological defense against corruption. * The Company ensures all Board members participate in training on compliance

and strict Party governance achieving comprehensive coverage of integrity

awareness education.The Company signs the Party Conduct and Clean Governance Responsibility Statement with heads * The Company conducts timely independence assessments for its Independent

of headquarters departments and subsidiary enterprises. It also requires mid-level and above For Board members the Company Directors.Reinforcing executives along with personnel in key positions to sign the Leadership Integrity Self-Discipline requires strict adherence to laws * Board directors involved in related-party transactions must recuse themselves

integrity Commitment Letter thereby reinforcing primary responsibilities and fostering a stronger culture of regulations and the Company's from voting. Insider trading and improper profit transfers are strictly

accountability integrity. Party organizations within subsidiary enterprises submit annual reports on their Party Articles of Association prohibited. conduct and clean governance initiatives. The Company's Discipline Inspection Commission (DIC) strengthening the ideological

conducts spot visits to grassroots party organizations to hear progress updates strengthening daily defense line for compliance and * Board directors shall consciously accept supervision by state-owned asset

oversight and guidance. faithfully fulfilling duties of loyalty authorities and regulatory bodies and respond to shareholders' concerns.and diligence. * Board directors must exercise strict restraint over relatives and associates to

prevent vicarious liability thereby safeguarding the interests of the Company and all

Reporting mailboxes are maintained by discipline inspection commissions at all levels. Upon receipt shareholders.of a report the DIC initiates verification in accordance with the Rules for Supervision and Disciplinary

Ensuring Enforcement and the Discipline Inspection Work Manual. The case is processed through established

unimpeded workflows with investigation results escalated level-by-level upon completion. Additionally

reporting discipline inspection personnel at all levels are strictly prohibited from privately retaining disclosing Promoting integrity and upright conduct

channels or disseminating information regarding case clues investigation progress involved parties or

whistleblowers in any form. Anonymous reporting is allowed by ensuring strict implementation of Sinoma International integrates Party conduct integrity building and anti-corruption efforts into the overarching strategy for high-

whistleblower protection mechanisms thereby eliminating any form of retaliation. quality enterprise development conducting rigorous inspections to ensure compliance.Employees violating the Company's integrity requirements are subject to disciplinary actions Anti-corruption supervision and auditing

Clear reward commensurate with the severity of the offense including warning talks reassignment demotion

and punishment dismissal and corresponding Party disciplinary measures. Performance-based salaries and bonuses

mechanisms for the year may be partially or fully withheld. Furthermore the Company links compensation and * In accordance with the Inspection Work Implementation Measures Inspection Work Leading Group Work Rules Inspection

performance evaluations to integrity conduct by mandating the inclusion of integrity self-discipline Team Work Rules and Inspection Work Leading Group Office Work Rules the Company's Party Committee conducts annual

in appraisal criteria. inspections encompassing integrity and anti-corruption reviews ensuring that all affiliated enterprises are covered within a

five-year cycle.* The Company has established a comprehensive supervision system culminating in the Sinoma International Comprehensive

Digital The Company has embedded integrity-related regulations and standards into digital business Supervision System Implementation Plan. The Company convenes regular meetings of the Leading Group and Coordination

integrity approval processes implementing system functionalities such as automated invoice verification and Group for Party conduct integrity building and anti-corruption work to deploy supervision tasks conduct joint inspections

development digital reimbursement recognition to provide online warnings and alerts for integrity risks. and leverage synergies.* Annually the Company organizes special governance campaigns achieving 100% integrity inspection coverage across all

affiliated enterprises while mandating self-inspections and corrective actions at all levels. Party organizations within the

The Company has established an entertainment expense declaration procedure to monitor usage affiliated enterprises submit annual reports on their integrity initiatives. Concurrently the Company's Discipline Inspection

Combating and reduce commercial bribery. In external bidding processes the Company completes and submits Commission conducts ad hoc field visits to grassroots units to review progress.commercial the Bidding Integrity Commitment Letter and uniformly issues the Procurement & Subcontracting

bribery Integrity Agreement Template. This template is mandated as a standard annex to both tender * Discipline inspection commissions at all levels have established the Annual Political Supervision List integrating efforts to

documents and procurement contracts across all units to strictly guard against commercial bribery. enforce discipline and combat corruption. To further leverage supervisory synergy and enhance effectiveness the Sinoma International Comprehensive Supervision Work Implementation Measures has been formulated.* The Company engages accounting firms annually to conduct internal control audits placing significant emphasis on

The Company strictly adheres to the Group's Regulations on Prohibiting Business Transactions identifying material misstatements resulting from fraud and the risk of management override of controls.Between Group Enterprises and the Relatives or Other Specific Associates of Enterprise Leaders. Mid-

Avoiding level and above executives personnel in key positions newly appointed leaders and newly

conflicts of promoted managers are organized to complete and file self-inspection forms ensuring that all

interest relevant information is thoroughly examined and fully reported. Additionally in 2025 middle-level

managers and members of the leadership teams of affiliated enterprises conducted in-depth special

self-inspections on the issue of "exploiting enterprise resources for personal gain."

33 342025 Sustainability Report Consolidating Governance Foundations to Ensure Steady and Healthy Operations for Development

Sinoma International Integrity Culture Framework Safeguarding Employee

Learning for Integrity Rights and Interests

Promoting Firm Original

Aspirations

1 Committed to a people-centric philosophy Sinoma International safeguards the fundamental rights of its workforce focuses on

establishing a robust talent development framework and prioritize employee well-being thus fostering a collaborative environment

Education Shapes Activities for Advocating

Integrity Integrity where both individuals and the organization grow together.Promoting Standardized 2 Five Integrity 3 Promoting Strengthened

Conduct Initiatives Five Awareness

Promotions

Governance mechanism

45

Platforms for Families Assisting

Publicizing Integrity Integrity The Chairman of Sinoma International is fully responsible for internal governance related to employee rights protection welfare

Promoting Promoting Family

Comprehensive Coverage Tradition Inheritance system enhancement diversity initiatives and talent pipeline development. Spearheaded by the Executive Vice President of Human

Resources the committee integrates a focus on talent stability employee satisfaction and organizational efficiency across the

The Company convenes annual meetings on Party conduct and integrity building and anti-corruption efforts ensuring full coverage entire spectrum of organizational transformation cultural development and business operations. Under the guidance of the

across all subsidiary enterprises. Additionally during the monthly work conferences the Secretary of the Discipline Inspection Chairman the Human Resources Department as the lead department drives policy implementation. Each department and

Commission conducts the "Monthly Dialogue on Party Conduct and Integrity" for senior leaders and personnel in key positions. In subsidiary establish dedicated human resources working groups to ensure vertical policy penetration and horizontal coordination.

2025 the Discipline Inspection Commission Secretary conducted 2 sessions on Party regulations and discipline guidance at branch The Company has established a Safety and Health Committee chaired by the Chairman. Functioning as the apex governance body

levels. The Company strengthened the development of work style issued the Fifteen Rules on the Development of Work Style of for employee safety this committee holds overarching responsibility for the establishment implementation and oversight of the

Sinoma International and organized 2 warning education conferences with over 300 participants. occupational health safety and occupational disease prevention systems. The Committee's core responsibilities include:

The Company continues to strengthen the Sinoma International Integrity Culture Brand System. During the third quarter it Organizing the formulation and approval of corporate objectives policies and annual plans on work safety and occupational

spearheaded a series of 10 Party conduct and discipline education initiatives across all levels of Party organizations. Subsidiary health; Establishing and improving the all-employee work safety responsibility system continuously advancing the construction of

enterprises have fostered a clean upright and dynamic working environment by producing integrity-themed micro-dramas visiting the "dual-control" system for work safety standardization risk classification management hidden hazard investigation and

educational bases administering disciplinary and legal knowledge assessments and soliciting integrity-themed creative works. governance; Ensuring work safety investments organizing the development of safety management systems operating procedures

Ahead of major statutory holidays—including the New Year/Spring Festival May Day/Dragon Boat Festival and Mid- training programs and emergency response plans; And supervising/inspecting work safety operations of subsidiaries guiding

Autumn/National Day periods—the Company issues integrity alerts to all employees and management members. These alerts accident emergency response and investigation handling. Under the Committee's centralized leadership the Company has

disseminated through official directives cautionary case reviews and open letters serve to reinforce compliance and ethical established a three-tier linkage governance structure effectively integrating safety concepts into the entire process of strategy

standards. formulation project execution and operational management.In 2025 Management strategies

331 Sinoma International strictly adheres to national labor laws and upholds fair recruitment practices regarding employees as its most integrity education and training sessions were provided for all full-time employees part-time staff valuable asset. The Company continuously refines its talent management lifecycle—including selection development and

placement—and optimizes career pathways and growth environments. Beyond this the Company enhances welfare security

systems deepens employee care across the entire career span and strengthens safety and occupational health management.and contractors covering 29091 participants with 100% all-tier coverage Through these efforts the Company is committed to fostering harmonious labor relations and mutual growth between the

organization and its employees thereby laying a solid talent foundation for sustainable development.

35 362025 Sustainability Report Consolidating Governance Foundations to Ensure Steady and Healthy Operations for Development

Strengthening rights protection Unblocking complain channels

Sinoma International strictly complies with laws and regulations including the Labor Law of the People's Republic of China the

Labor Contract Law of the People's Republic of China the Law of the People's Republic of China on the Protection of Minors the * To ensure strict adherence to Sinoma International's Code of Business Conduct and Human Rights Policy Statement the

Law of the People's Republic of China on the Protection of Rights and Interests of Women the Regulations on the Prohibition of Company has established clear policies and accessible procedures. A dedicated confidential and anonymous reporting email

Child Labor the Special Provisions on Labor Protection for Female Employees and the Regulations on Guaranteeing Wage channel has been implemented to provide employees with a convenient platform for voicing complaint . This channel is also

Payments to Migrant Workers. The Company has formulated the Recruitment Management Measures and Labor Contract open to customers suppliers and other stakeholders who are encouraged to raise any concerns they may have.Management Measures to standardize labor employment.The Company upholds the principles of openness fairness and equity in recruitment and ensures lawful execution of labor For business ethics For human rights

contracts to eliminate illegal employment practices. During this reporting period the Company maintained full compliance with jubao@sinoma.com.cn hresg@sinoma.com.cn

regulations regarding child labor and forced labor achieving a 100% labor contract signing rate. For employees undergoing

involuntary separation in accordance with legal regulations the Company provides outplacement support and vocational training * The Company takes a firm stance against suspected violations of laws policies and codes of conduct. All complain are

to enhance their employability and facilitate a smooth transition to new roles. In the event of labor arbitration or personnel subjected to professional and thorough investigations and appropriate actions are taken based on the findings. The Company

disputes a joint task force comprising the Human Resources Department Legal and Compliance Department and Trade Union strictly prohibits any form of retaliation ensuring a safe environment for reporting. In 2025 the Company received no

intervenes to mediate the situation and safeguard the legitimate rights and interests of employees. complaints through the aforementioned channels resulting in no disciplinary actions.Upholding equal human rights Optimizing compensation and working hours mechanisms

Sinoma International is unwavering in its commitment to equal employment opportunities. We strictly prohibit workplace Sinoma International operates under a standard working hours system in compliance with labor regulations. The Company has

harassment and discrimination based on age gender nationality ethnicity religious belief health status or any other personal established comprehensive policies including the Compensation Management Measures and the Management Policies for

distinction. By enforcing equal pay for equal work the Company promotes fair employment practices and fosters a diverse Employee Working Hours Rest Leave and Absence to standardize work schedules rest periods and vacation arrangements.inclusive and cohesive work environment where every employee feels a strong sense of belonging. Furthermore a dynamic compensation adjustment mechanism is formulated benchmarking salary levels against industry market

rates and individual job contributions.Human rights risk management The Company operates a comprehensive compensation structure consisting of base salary position-based salary and

various allowances. In terms of statutory benefits 100% of employees are covered under the national "Five Insurances and

* The Company actively implements human rights due diligence across its operations and value chain. This process is designed One Fund" system which includes medical pension work-related injury maternity and unemployment insurance as well

to identify assess and address potential human rights impacts and risks—particularly concerning forced labor child labor as the housing provident fund. Additionally the Company provides a range of supplementary benefits including housing

discrimination and inequality of opportunity. By focusing on these critical areas the Company ensures that its workforce with transportation and meal allowances. Furthermore the Company sets and monitors maximum working hours

specific attention to vulnerable groups such as women children and migrant workers is protected and respected. The implements equal pay for equal work regardless of gender provides paid annual leave and contributes to enterprise

Company regularly conducts self-inspection and self-correction activities for human rights risks including the issue of timely annuities for approximately 60% of its employees.wage payment for migrant workers across all levels of subsidiaries and strengthens supervision of subcontractors.* Throughout the year the Company has maintained a clean record regarding the aforementioned potential human rights Performance evaluations are conducted on a quarterly or annual basis. This comprehensive process encompasses a variety

risks. No incidents violating the principles of equal opportunity diversity or non-discrimination were reported. of assessment methods including the alignment of organizational goals (company department and project team objectives) individual objective reviews multi-dimensional appraisals and ongoing real-time communication. Following the

release of the results department heads engage in one-on-one performance interviews with employees. These sessions are

Promoting diversity and inclusion designed to gain a deep understanding of individual contributions solicit feedback and provide targeted guidance for improvement career development and training needs.* As our global operations continue to expand the Company and its subsidiaries have adapted our HR strategies to the specific The Company implements a restricted stock incentive plan to align the interests of directors senior executives core

realities of our overseas markets—where international business represents a significant share. We have established localized managers and key business and technical specialists. Comprehensive performance metrics are established at the corporate

human resources management regulations along with tailored systems for incentives performance appraisal and subsidiary and individual levels to govern this program.compensation for our overseas workforce. By actively recruiting top talent regardless of nationality race educational

background or professional expertise we are building a truly international and diverse team. Furthermore mandatory policy Complementing this a dual-track compensation growth mechanism—linking both position and rank—is utilized. Regular

training programs covering diversity anti-discrimination and anti-harassment are actively conducted to foster a respectful assessments of employee income are conducted confirming that this year wages for all employees across the entire

work environment. To reinforce ESG policy awareness the Company conducted outreach and training sessions across its organization exceeded the local social average thereby adequately meeting their living requirements.major subsidiaries with a specific focus on the Employee Code of Conduct especially its commitments regarding inclusion and

diversity. The Company has established a compensation clawback policy to ensure accountability. For Party members who cause asset

* The senior management team is accountable for advancing diversity initiatives and has explicitly prioritized "local value chain losses due to disciplinary violations the performance-based portion of their annual salary will be reduced in accordance

extension" as a strategic objective. Guided by the vision of building a truly international and diverse workforce the Company with the Implementation Rules for Salary Reduction of Responsible Persons in Group Member Enterprises Subject to Party

remains committed to enhancing employee localization rates. The Company is committed to aggressive localization of its and Administrative Disciplinary Actions. Furthermore for current resigned or retired managerial personnel who violate

overseas workforce resulting in a steady increase in the employment of local nationals. We advocate for equal employment national laws and regulations or who cause asset losses through failure to perform or improper performance of their duties

opportunities and have established labor and compensation management systems that strictly comply with local laws and corresponding deductions will be applied to their current performance-based annual salary. Based on the findings of Party/administrative disciplinary actions and asset loss liability assessments the Company will also claw back part or all of

regulations. By ensuring equal pay and benefits for all employees regardless of nationality we are fostering a diverse inclusive any previously paid performance bonuses and medium-to-long-term incentive earnings.and cohesive corporate culture that strengthens mutual trust and a sense of belonging.

37 382025 Sustainability Report Consolidating Governance Foundations to Ensure Steady and Healthy Operations for Development

Promoting employee development

* Deepening university-enterprise cooperation: The Company has established strategic collaborations

Sinoma International is fully committed to employee growth guided by the strategic vision of "optimizing talent management with domestic and international universities including Wuhan University of Technology and Shandong

serving individual development needs and empowering corporate strategy." Through the strategic levers of "optimizing talent University. Through these partnerships we conduct joint degree programs internship recruitment social

mechanisms enhancing the development environment and stimulating innovation" the Company has established a holistic practice initiatives and targeted recruitment events. In 2025 the Company established new strategic

lifecycle management mechanism encompassing talent selection development and placement. This framework is anchored by partnerships with the University of Jinan and Nanjing Tech University.three pillars: a dual-track career path (management & professional); A job competency system; a rank promotion and certification

system. Systematically advancing the cultivation of five key talent pools—financial technological international operational and

high-potential young leaders—the Company focuses on enhancing workforce capabilities and smoothing career pathways. This * Professional certification support: The Company encourages employees to obtain industry-recognized

ensures synergistic growth between individual employees and the organization. professional qualifications by reimbursing examination fees for certifications that are directly relevant to

To further standardize the employee grading system and expand career development pathways the Company has established a employees' current roles. Upon successful registration of the certificate with the Company employees can

dynamic talent management and mobility mechanism. This mechanism ensures the right talent is matched to the right role and receive a one-time bonus and a monthly practice allowance.allows for flexible upward and downward movement. In accordance with these guidelines subsidiaries at all levels have formulated

their respective Rank Management Measures. Based on the Company's management positioning and functional categories * Local talent development: The Company embraces a "Localization" strategy integrating local resources

positions are divided into two distinct tracks: Management and Professional. Clear qualification requirements and promotion and talent into its core operations. We focus on cultivating and recruiting local professionals including high-

criteria have been established for each grade level. caliber experts in business legal and tax sectors. By actively hiring fresh graduates from local universities

Talent development system we inject new vitality into our teams while providing robust human capital support for long-term local development and significantly boosting host-country employment.* Talent pipeline development: The Company centrally coordinates campus recruitment across the entire

organization. In 2025 we successfully recruited 375 new graduates. The Company also actively participates in * Development of sci-tech talent: The Company has established a dedicated talent pool for scientific and

the Group-organized campus recruitment fairs assisting subsidiaries in streamlining the talent acquisition technological backbone personnel and highly skilled professionals. In 2025 we formally initiated the

process. The company launched the first unified campus recruitment campaign anchored by the "SINOMA" formulation of the "15th Five-Year Plan" for human resources management explicitly designating sci-tech

brand. This initiative successfully enhanced both brand equity and talent quality. talent and international talent development as key specialized initiatives. By the end of 2025 the Company

had cumulatively nominated: 40 leading sci-tech talents; 47 young sci-tech talents. Additionally 9

* Diversified training system: The Company provides targeted individuals were selected for the Group's key research talent pool and 24 were awarded the Special

training programs for all employees including comprehensive new Government Allowance from the State Council. Sci-tech talents accounted for 34% of the beneficiaries of

hire onboarding and a dual-mentor system for frontline roles. This medium-to-long-term incentive programs covering 851 instances.system pairs employees with both on-site and headquarters

mentors fully leveraging the knowledge transfer capabilities of

experienced professionals. New hires are matched with dedicated

mentors on either a "one-to-one" or "one-to-two" basis. The

Company recognizes and rewards outstanding performance among

new employees as well as successful mentor-mentee pairs. To further enhance the political literacy and job

performance of young managers the Company has conducted six sessions of the Young and Middle-aged

Managers Training Program by the end of 2025. The program covered 258 managers across all levels of the

organization effectively building a robust talent pool to ensure strategic continuity.Training categories: Strategic Management Professional General (including communication skills

computer applications data processing etc.) and Others (tailored to specific job requirements)

Training approaches: Internal Training External Training Mentorship Programs (led by business specialists

or mid-to-senior manager) Internal Job Rotation Self-Directed Learning Case: Cultivating digital-intelligent practical talent to advance digital transformation

Specialized training programs: Localization Development Forum Science and Technology Forum Digital To further advance the Group's digital transformation strategy the Company hosted a one-week intensive training session on

Training English Salon Cadre and Staff English Training etc. "Process Management Data Governance and Digital Governance Systems" in Beijing and Nanjing in July 2025. The curriculum

covered core modules including process management data governance low-code platforms and digital supervision utilizing an

* Internal job rotation and exchange: The Company strategically manages talent allocation prioritizing integrated delivery model featuring "theory + hands-on practice + workshops." A total of 117 members from special task forces and

internal transfers to address staffing shortages in key departments. To support career growth employees consultant teams across 14 member units participated. All trainees successfully completed the low-code scenario design and

interested in exploring different fields may submit applications to the Human Resources Department. The practical assessments effectively bridging the gap between knowledge and applied skills.Company will assess these requests based on business needs and initiate the internal recruitment process to

facilitate new career pathways. Furthermore structured job rotation programs are organized to provide This training session achieved four key achievements: unified strategic understanding of digital transformation; enhanced

employees with a holistic view of the Company's operations. This initiative is designed to enhance cross- capabilities in process and data governance; established "Project Blueprints" with clear accountability; strengthened cross-

functional understanding and strengthen employees' capabilities in solving complex real-world business departmental synergy. This training program has laid a solid talent foundation for "Digital Sinoma International" and marks the

challenges. Company's entry into a new era of comprehensive digital governance implementation.

39 402025 Sustainability Report Consolidating Governance Foundations to Ensure Steady and Healthy Operations for Development

Sustained focus on physical and mental well-being

Case: Focusing on sci-tech innovation to jointly deliberate talent-driven enterprise strategies

Sinoma International is deeply committed to employee well-being consistently upholding a human-centric approach. The

In September 2025 Sinoma International convened a sci-tech talent symposium. Centered on the theme "Pooling Sci-Tech Company organizes free annual health check-ups and invites professional doctors to conduct on-site medical consultations based

Strength Igniting Innovation Momentum Empowering High-Quality Development" the event gathered over 70 participants— on needs. Additionally psychological counseling services are provided to support employees' mental health. To ensure work-life

including rehired experts key sci-tech personnel young talents and management representatives—to jointly discuss talent-driven balance and safety the Company offers flexible working arrangements. Special employees are entitled to work-from-home benefits

enterprise strategies in the context of digital transformation. and in the event of unexpected conditions such as heavy fog staff can apply for remote work to reduce risks and ensure personal

Through research briefings group workshops and insights from external think tanks the symposium systematically reviewed the safety. In line with legal requirements the Company grants paid parental leave to eligible couples. Before the child turns three both

current landscape and challenges regarding talent structure incentive mechanisms and career development systems. In-depth parents are entitled to ten days of leave annually. For families with multiple children these leave days are cumulative. Sinoma

discussions focused on "Top-Level Design for Sci-Tech Innovation" "Recruitment and Cultivation of High-Level Talent" and "Young (Suzhou) has established a dedicated free online medical consultation channel for employees fostering a strong sense of security

Talent Echelon Development." These deliberations provided critical decision-making insights for refining the Company's sci-tech and happiness.talent management system and stimulating organization-wide innovation during its digital transformation journey. The Company has also equipped the office building with a gym and professional sports facilities. We actively organize cultural and

sports activities including basketball badminton table tennis tournaments and fun games to enrich employees' leisure time and

promote both physical and mental health.Advocating employee care

Care for female employees

Sinoma International is committed to enhancing employee well-being through comprehensive welfare initiatives. The Company has

established policies such as the Employee Leave Management Measures and the Young Talent Apartment and Subsidy Scheme Sinoma International is deeply committed to the care and development of its female workforce. We are attentive to the unique

deepening our care for employees throughout their careers. These measures are designed to strengthen employee engagement challenges and specific needs women face in the workplace actively launching warm initiatives to create a supportive and pleasant

and foster a strong sense of belonging. working environment for all women employees.Assistance for Urgent and Difficult Needs Featured theme activities

In celebration of International Women's Day trade unions at all levels organized a series of events. These vibrant

* Upholding an "employee-centric" philosophy the Company has refined its humanistic care initiatives. We have established a themed activities brought together female employees including expatriates from the headquarters and subsidiaries

registry for "key milestones" to ensure timely support hosted honorary retirement ceremonies and organized care programs fostering a stronger sense of team cohesion.for senior retirees and families of expatriate staff. In 2025 these targeted care initiatives—ranging from birthdays and weddings

to illness recovery and retirement—reached over 620 individuals. Maternal and infant care support

* Sinoma Overseas remains committed to addressing the needs of expatriate staff and their families through diverse initiatives. Recognizing the needs of new mothers the Company provides special care and support. Female employees are

This includes visiting families during the Spring Festival and providing special assistance funds to local employees ensuring entitled to one hour of breastfeeding leave per day for a period of twelve months following the end of their maternity

robust rear-support for overseas operations. leave. Some subsidiaries' trade unions have also established dedicated baby care rooms for female employees.* The Company maintains a tradition of holiday greetings during major festivals such as the Spring Festival Dragon Boat

Festival and Mid-Autumn Festival alongside providing birthday cake vouchers.Case: Cross-border Women's Day celebration: uniting forces for shared progress

* We promptly visit employees during hospitalization and conduct irregular visits to retirees actively resolving urgent issues in

their daily lives. In June 2025 Sinoma (Suzhou) extended care to a young employee diagnosed with cancer and launched a On the eve of International Women's Day Sinoma International hosted a synchronized celebration themed "Her Story Her Wish."

company-wide fundraising initiative to give support. The event united the Beijing headquarters with seven overseas branches—including Egypt Nigeria and France—showcasing the

cohesion and humanistic care of the Company's global team. The Beijing headquarters kicked off the festivities with floral

* Special assistance was provided to employees with unique needs or financial hardships through the Group's Love & Charity arrangement workshops while the international branches hosted culturally immersive activities such as hair-braiding handicraft

Fund. In 2025 CDI provided targeted assistance to an employee whose child suffered from a serious illness. Beyond regular making and traditional hand painting. On-site wish draws allowed employees to share their personalized aspirations conveying the

care and inquiries the Company presented condolence funds totaling 4800 yuan during the Spring Festival and other Company's meticulous care through tangible actions and highlighting the inclusiveness of its diverse workforce. The Company

occasions. highly commended the pivotal role played by female employees in the Company's international development. He emphasized the

commitment to continuously improving development platforms supporting female staff in achieving both personal growth and

* Focusing on the needs of frontline workers the Company conducted specialized care initiatives. In 2025 we carried out three corporate advancement."Summer Cooling & Winter Warming" campaigns at project sites distributing heat-relief and cold-protection supplies to

demonstrate our caring culture and enhance employee well-being and belonging.* The Company continues to refine its support mechanisms for overseas personnel by formulating the Implementation Measures

for Overseas Employee Assistance which has been fully piloted in the Nigeria region. In 2025 through the Sinoma (Suzhou)

Special Assistance Fund for Overseas Employees (Nigeria) the Company provided aid totaling 2050000 Naira (approximately International Women's Day Celebration Series

CNY 9762) to eight Nigerian employees.

41 422025 Sustainability Report Consolidating Governance Foundations to Ensure Steady and Healthy Operations for Development

Fulfilling safety commitments Building safety culture

Sinoma International adheres to the core philosophy of "People-Oriented Safe Development and Green Development." In line with Sinoma International places great emphasis on safety education and training specifically striving to enhance the professional

the work policy of "Safety First Environmental Priority Prevention-Oriented Comprehensive Management Full Staff Participation competence of full-time HSE management personnel. Guided by the principle of "three-level HSE education" affiliated enterprises

and Continuous Improvement" the Company is committed to establishing a safety management framework characterized by and project departments have conducted a variety of training activities. These include site-entry HSE inductions specialized

enterprise-wide oversight whole-process control and full staff involvement. This strategic approach fosters a secure and stable training experiential safety training and accident case studies. Cumulatively 33836 training sessions have been carried out

environment driving the Company's high-quality development. reaching 607143 participants. The Company has achieved 100% training coverage for both in-house employees and contractor

staff. The Company attaches great importance to the organization of the "Work Safety Month" campaign. Company-wide we are

Implementing safety management committed to constantly introducing new elements to these activities to enhance safety. Through diverse initiatives such as safety lectures delivered by "top executives" knowledge competitions safety culture promotion and accident case analyses a rich and

robust safety culture atmosphere has been fostered. Various work safety cultural activities are organized to comprehensively

In response to the national "Healthy China" initiative Sinoma International strictly adheres to laws and regulations such as the elevate employees' safety awareness and emergency response capabilities.Occupational Disease Prevention and Control Law of the People's Republic of China and the Regulations on Work-Related Injury

Insurance. The Company has continuously improved its HSE standards establishing a comprehensive system that includes the HSE

Management Manual and the HSE Management Compendium. Leveraging efficient organizational synergy and a pragmatic results- Case: Strengthening the foundation and building defenses intelligent

oriented approach Sinoma International has steadily advanced safety management and successfully achieved its annual safety management safeguards safety

targets maintaining a stable and secure operational environment.In May 2025 Sinoma International hosted the kick-off meeting for the "Work Safety Month" campaign in Beijing. The event officially

launched a series of initiatives themed "Everyone Speaks Safety Everyone Can Respond to Emergencies—Identifying Hidden

Hazards in Our Surroundings." The meeting brought together over 600 participants representing personnel at all levels across the

The Company revised and released the Sinoma International Assessment Management Company.Measures for Work Safety Energy Conservation and Ecological Environmental Protection. The meeting defined four core tasks: First strengthening responsibility implementation and consolidating the safety foundation;

The policy links critical safety issues and objectives to executive compensation by clearly Second focusing on key processes and implementing precise risk control; Third deepening the "Work Safety Long March" special campaign; Fourth accelerating the construction and application of an intelligent safety management system. The meeting formally

defining veto indicators and key KPIs which directly determine the outcomes of annual released the implementation plan. Participants collectively signed a commitment banner achieving comprehensive mobilization

executive evaluations and remuneration. and deployment. This has laid a solid safety foundation for the Company's high-quality development.Sinoma International incorporates subcontractor and labor team safety management into its overall safety framework clearly

stipulating the respective safety and environmental responsibilities obligations and rights of both parties. The Company

establishes safety and environmental access requirements for equipment facilities and construction tools provides relevant safety

training to enhance subcontractors' awareness and supervises the establishment of their safety management systems ensuring

they understand and comply with the Company's HSE policies and requirements. The Company strictly prohibits the use of

unqualified subcontractors. It rigorously monitors job sites to promptly halt the "Three Violations": violations of operating

procedures unauthorized command and breaches of labor discipline. The Company also eliminates the practices of "management

by subcontracting" and "management by penalty."

Site of the "Work Safety Month" kick–off meeting

43 442025 Sustainability Report Consolidating Governance Foundations to Ensure Steady and Healthy Operations for Development

Impact Risk and Opportunity Management Metrics and targets

Sinoma International embraces the management philosophy of "using targets to guide management and metrics to drive results."

In this framework the Company has established a robust system of clear quantitative objectives and monitoring indicators

Regarding employee employment and rights，Sinoma International places high importance on issues and specifically dedicated to safeguarding employee rights.needs within the workplace environment comprehensively identifying employee demands through

democratic management approaches. Subsidiaries at all levels strictly comply with laws and regulations such

as the Trade Union Law of the People's Republic of China. The Company has improved its democratic Regarding employee employment and rights

management system with the Workers' Congress serving as the fundamental form. To facilitate

communication a multi-channel platform has been established incorporating online mailboxes office The Company has established dynamic salary adjustment rules based on job contribution and industry market benchmarks linking

hotlines digital proposal modules Corporate WeChat the Chairman's Communication Day the Workers' employee compensation to KPIs (actual contribution) job performance competency and work attitude with floating performance

Congress and trade union feedback mechanisms. This system ensures a closed-loop management process for components accounting for 60% for senior management approximately 40-50% for middle management and below 30% for

employee demands effectively safeguarding employees' rights to information participation expression and general staff.supervision. To ensure the equitable treatment of employee concerns affiliated enterprises actively solicit The Company is deepening the construction of its medium- to long-term incentive mechanisms. We are effectively leveraging a

feedback from female staff through various channels such as symposium for female employees and the suite of seven incentive instruments including excess profit sharing virtual equity and employee stock ownership with a particular

establishment of Women Workers' Committee. These measures effectively safeguard women's rights to equal focus on bolstering sectors such as technological innovation high-end equipment and digital intelligence. These initiatives cover

employment. 2483 employees accounting for 16% of the total workforce.Regarding occupational health Sinoma International places great emphasis on occupational health. The

Company systematically identifies and assesses risks related to employee life and health working Employee shareholding represents

environments and emergency management through established processes. The Company conducts regular 264 individuals across all levels have

occupational health and safety risk assessments prioritizes critical risks and formulates comprehensive been granted restricted stock incentives 2.15% of the Company's total equity

emergency response plans. We proactively fulfill our primary responsibility for occupational disease prevention

and control. To ensure employee well-being we also organize routine health check-ups educational seminars

and mental health initiatives. The Company has established investigation procedures for work-related injuries The Company continues to strengthen democratic management with 1172

health issues critical illnesses and accidents aiming to prevent all occupational health hazards before they employee representatives and 87.76% union membership rate by the end of Objectives

arise. 2025. This year the Company conducted a comprehensive employee

satisfaction survey. Utilizing online questionnaires we collected feedback The Company aims to maintain an

from 58% of the workforce regarding work experience intrinsic motivation

employee satisfaction rate above 97%

In the realm of work safety Sinoma International strictly adheres to all relevant laws and regulations. The happiness levels and job pressure. The results show that satisfaction rates

Company exercises rigorous control over the procurement of hazardous chemicals and harmful substances across various demographics—including gender ethnicity employee in the long term.establishing dedicated storage areas equipped with appropriate ventilation. These areas are specifically category and age—consistently approach 98%.designed to meet special requirements for fire prevention explosion protection and corrosion resistance. To

ensure on-site safety prominent warning signs indicating the nature of hazards are displayed and essential

protective equipment—such as emergency leak containment devices—is installed. Employees are provided Regarding employee occupational health and production safety

with necessary personal protective equipment supplemented by clear safety reminders and operational

guidelines throughout the workplace. Furthermore regular equipment inspections are conducted to ensure all The Company has established a comprehensive set of safety management objectives to rigorously implement and achieve effective

systems remain in optimal working condition effectively minimizing the risk of accidents. work safety outcomes.Regarding employee development Sinoma International is committed to removing barriers to career

advancement and skill enhancement. The Company proactively identifies professional growth opportunities * Zero fatalities due to production safety * Zero traffic and fire accidents occurring

offering tailored solutions including leadership and skills training internal mobility options and support for responsibility incidents during production processes

professional certifications. This empowers employees to navigate challenges and seize opportunities

presented by the Company's drive towards digital smart and green operations. * Zero significant emergencies 0 * Zero new occupational disease cases

Furthermore the Company set a specific target of maintaining a severe injury rate no higher

than 0.3‰ per 1000 employees.In 2025 the Company successfully achieved all of the above objectives

45 462025 Sustainability Report Consolidating Governance Foundations to Ensure Steady and Healthy Operations for Development

The Company continuously strengthens resource support

ensuring the effective implementation of work safety measures

Conducted safety and environmental inspections across 15 affiliated enterprises covering 43 projects and factories

achieving 100% coverage of directly-managed enterprises

Cumulative investment in safety and Organized 2624 involving 50861

health reached 566 million yuan emergency drills participants in total

143 62702 with a rectification Achieved million Identified completion rate of

potential hazards

safe man-hours (including nearly100%

subcontractors) in 2025

6492 Signed 38321 achieving a Conducted safety and

environmental inspections work safety responsibility agreements across all levels 100% signing rate

44 enterprises at all levels obtained ISO 45001 certification accounting for 73% of the total

Note: The total number of enterprises at all levels used to calculate the ISO 45001 certification rate refers to enterprises engaged in engineering

construction equipment manufacturing production operations and maintenance that are applicable for ISO 45001 certification. In 2025 the figure for

ISO 45001-certified companies excludes three affiliated enterprises that were dissolved during the reporting period.In terms of employee development

In 2025 the Company recruited 805 new employees and facilitated 361 internal transfers. The overall employee

turnover rate stood at 4.88% marking a decrease of 14.54% compared to the previous year.In 2025 the company's employees cumulatively completed 1462621 hours of training translating to an average

of 103 hours per employee fully optimizing the talent management pipeline—"Selection Development Utilization

and Retention."

Note: For more key performance indicators related to employees please refer to the "Social data" section in the ESG Key Performance of this report.The number of training hours per employee is calculated by dividing the total cumulative training hours by the total number of employees who

received training.

47 482025 Sustainability Report Pursuing Sustainability through Green and Eco-Friendly Development

Green and Clean

Production

We place high priority on green development. We fully implement the principles of "understanding the new development stage

applying the new development philosophy and fostering the new development pattern" promoting the green and low-carbon

transformation of our energy structure and the coordinated improvement of ecological and environmental quality. Together these

efforts lay a solid foundation for our high-quality development. .Pursuing Sustainability Strengthening environmental management

through Green and Eco-Friendly We strictly comply with national laws and regulations related to ecological and environmental protection. We have implemented

robust environmental management systems and mechanisms conducted environmental risk control and environmental protection

Development inspections and rigorously enforced environmental policies across all our business segments.Establishment of organizational structure

At the governance level the Board of Directors is responsible for establishing and improving the environmental social and

governance (ESG) management system. The Strategy Investment and ESG Committee is responsible for assessing the

environmental management performance as well as related risks and opportunities. It formulates and reviews the environmental

Green and Clean Production management vision objectives and strategies and reports significant matters to the Board. At the management and execution

level we have established a Leadership Group for Ecology and Environmental Protection co-chaired by the Chairman and the

President. Composed of members of the senior leadership team the Leadership Group provides overall direction for the ecological

progress and oversees the implementation of environmental protection energy conservation and emission reduction efforts.Circular Economy Integration Improving the institutional system

We strictly comply with national environmental protection laws and regulations including the Environmental Protection Law of the

People's Republic of China. We have formulated a series of environmental protection policies covering the entire process of

production and operation engineering construction contracting and subcontracting. These policies include Responsibility System

for Ecological and Environmental Protection Management System for Environmental Impact Assessment of Construction Projects

Measures for Clean Production Energy Conservation and Emission Reduction and Special Rules for Ecological and Environmental

Protection of Overseas Entities (Projects).We rigorously implement the ISO 14001 environmental standard striving to establish a green and sustainable environmental

management system that effectively controls environmental risks.As of the end of 2025

44 subsidiaries had obtained the GB/T24001-2016 / 7 subsidiaries had been certified under

ISO14001:2005 Environmental Management GB/T2331-2020 / ISO50001:2018 / RB/T119-

System Certification accounting for 73% of the total 2015 Energy Management System

Note: The total number of entities used to calculate the certification rates for ISO 14001 and ISO 50001 refers to subsidiaries engaged in engineering

construction equipment manufacturing and green energy and environmental protection. In 2025 the figure for ISO 14001-certified companies

excludes three affiliated enterprises that were dissolved during the reporting period.

49 502025 Sustainability Report Pursuing Sustainability through Green and Eco-Friendly Development

Strengthening management mechanisms Fostering environmental awareness

We rigorously implement environmental information disclosure requirements. All production-oriented entities have developed self- We actively promote the concept of green office. The headquarters and all subsidiaries vigorously promote video conferences and

monitoring plans and deployed monitoring systems for real-time supervision ensuring effective management and control of paperless meetings achieving electronic office operations through the OA system. The collaborative office platform has been

pollutant emissions. Through sound environmental management systems stringent monitoring measures and comprehensive comprehensively upgraded to enable full-process online operations including electronic signatures and online archiving further

emergency response plans we prevent and address potential environmental incidents. reducing office paper demand. In terms of consumables management we give priority to selecting energy-efficient printers and

copiers (Tier 1 energy efficiency) reduce office paper usage and prioritize the purchase of environmentally friendly paper and

ballpoint pens with replaceable refills. In addition we extend the service life of printing and copying equipment through repairing

In 2025 and reusing and improve efficiency by adopting full LED lighting and implementing energy efficiency access requirements for

energy-consuming equipment. Meanwhile CBMI Construction extends the concept of green office to project sites by incorporating

digital and low-carbon office requirements into overseas project management standards. Through remote collaboration systems it

reduces international business travel and associated carbon emissions achieving unified green office standards between the

headquarters and overseas projects.We actively promote green initiatives through activities such as tree planting factory greening and thematic forums. These efforts

We conducted 2207 invested CNY 49.41 million foster a shared commitment to ecological protection among our employees across the industry and within society. In 2025

environmental inspections across all levels in environmental protection leveraging platforms such as the National Energy Conservation Week and Low-Carbon Day we promoted environmental knowledge

policies and regulations through corporate WeChat groups electronic screens brochures and environmental slogans. We also

organized environmental awareness training sessions and online quizzes during National Energy Conservation Week and Low-

Carbon Day to enhance employees' environmental literacy.In 2025 the Company successfully held the first safety and environmental protection training program for leading executives across

all levels of its subsidiaries establishing the group' s first in-house safety and environmental training brand.We have strengthened environmental protection accountability at every level. In 2025 a total of 33223 environmental protection

responsibility agreements were signed by employees across all subsidiaries. While completing rectification tasks assigned by central

environmental inspections on schedule we also implemented a top-down internal environmental inspection mechanism achieving Environmental protection training and education programs

full coverage of all subsidiaries. A total of 2207 environmental inspections (including external government inspections) were

conducted across all levels in 2025 identifying 5422 potential risks all of which were rectified achieving a 100 percent

rectification rate.We also integrate environmental management mechanisms into our commercial cooperation

Waste "Zero-Waste Compliant disposal of hazardous waste VOCs treatment facilities

sorting Factory" initiatives and emergency management training and equipment

* Logistics and transportation

In accordance with the Measures for the Acceptance Management of Safety Materials we require suppliers

to provide logistics services that comply with applicable environmental laws and regulations and to take

necessary measures to prevent environmental pollution. Transport operators are required to strictly

prevent spillage leakage and fire hazards ensure safety and prohibit oil leakage. Case: Inside our smart factory: utilizing resources efficiently to build a better world

Engineering general contracting In September 2025 the Kenya Factory of Sinoma Roofing Systems *

operated by CBMI Construction held an open day event under the

Subcontractors are integrated into our unified management system. Subcontracts explicitly define the theme "Inside Our Smart Factory: Utilizing Resources Wisely to

safety and environmental responsibilities obligations and rights of both parties and establish safety and Build a Better World." As one of the overseas venues of the 6th

environmental access requirements for equipment machinery and facilities. We provide environmental "Resource Efficiency Day" global series of events organized by

training to subcontractors helping them understand our environmental management policies and CNBM the event centered on the core theme of "Driving Change

requirements and adopt eco-friendly practices in their work. through Innovation and Green Solutions." It showcased our

innovative practices in smart manufacturing environmental

protection and resource efficiency while strengthening industry-

* Investment and M&A academia-research collaboration with local universities. Through

We implement the Management System for Safety and Environmental Due Diligence of Mergers and these concrete actions the event embodied the corporate mission

Acquisitions. Due diligence checklist guidelines have been developed covering four areas: business of "Creating a Better World with Materials" and injected green

finance legal and safety and environmental protection. Third parties are engaged to conduct safety and momentum into China-Africa cooperation under the Belt and Road

environmental due diligence on potential investment targets. The Open Day Initiative.

51 522025 Sustainability Report Pursuing Sustainability through Green and Eco-Friendly Development

Advancing green production * We strictly comply with the Law of the People's Republic of China on the Prevention and Control of

Atmospheric Pollution implement national standards such as the Integrated Emission Standards

We strictly comply with the Environmental Protection Law of the People's Republic of China and other applicable laws regulations of Air Pollutants and the Ambient Air Quality Standard to rigorously control air pollutant emissions.and policies on energy conservation and emission reduction. We actively benchmark our environmental practices against world- * We prioritize materials that do not generate air pollutants and low-emission equipment to reduce

class enterprises promoting clean production and green construction. Specifically we identify evaluate and control pollution at the source.environmental factors related to our production operations project construction and management activities. We also fulfill our * We formulate sound construction plans and implement measures such as enclosed construction

primary responsibility for environmental protection energy conservation and emission reduction. To prevent and mitigate the Air pollution and dust control netting to minimize dust and exhaust emissions.adverse environmental impacts of our operations we promote the intensive and efficient use of resources achieve compliance with management

emission standards and continuously improve our production environment ultimately building an environment-friendly * We take effective treatment measures for generated exhaust gases including installing waste gas

enterprise. Hefei Zhongdu Machinery Co. Ltd. a subsidiary of Sinoma Equipment was included in the list of provincial "Green treatment equipment and innovatively applying integrated drilling rigs water bag blasting

Factories" becoming a demonstration benchmark for the green transformation of the equipment manufacturing industry. technology fog cannon wet dust suppression and intelligent sprinkler systems on both sides of roads within the factory.Reducing pollutant emissions * We strengthen the management of transport vehicles to ensure they meet emission standards and take corresponding measures such as covering cleaning and sprinkling water during

transportation to reduce dust.During project construction we strictly comply with laws and regulations such as the Land Administration Law of the People's

Republic of China the Water and Soil Conservation Law of the People's Republic of China and the Regulations on Environmental * We store cement and other fine-particle building materials that are prone to fugitive dust in

Protection Management for Construction Projects. We have also formulated and implemented on-site environmental protection enclosed spaces and adopt effective measures to prevent dust during use. Excavated soil at construction sites is stockpiled at designated areas and covered to control dust.systems ensuring rigorous compliance with the "Six 100 Percent" management requirements.* Classified collection and orderly disposal: We classify and store hazardous waste according to

its characteristics and conduct fixed-point recycling of leftover materials. We stack solid waste in

The "Six 100 Percent" Requirements separate areas for metal wood soil and rubber and handle raw soil and sandstone separately.* Standardized storage and compliant transportation: We set up waste storage facilities and

sites in accordance with regulations and clearly mark the type and danger of waste in storage

Waste areas. We ensure waste transportation complies with relevant laws and regulations strictly

* 100% enclosure of construction * 100% coverage of bare soil management implement the approval system for hazardous waste transfer plans and the transfer manifest

sites system and select qualified transportation companies for waste transportation.* 100% wet operation at

* 100% coverage of stacked materials 100% demolition sites * Targeted and compliant treatment and disposal: According to the characteristics of waste and regulatory requirements we entrust qualified professional companies for regular disposal and * 100% washing of vehicles entering * 100% enclosed transport of select appropriate treatment methods such as incineration landfilling and recycling. In 2025 the

and exiting the site spoil vehicles disposal rate of self-generated hazardous waste reached 100%.* Strict record-keeping and full-process supervision: We establish a waste disposal record and

reporting system including information such as waste generation volume and treatment methods

and regularly supervise and inspect the compliance of waste disposal to ensure it meets laws

regulations and standards.* We strictly implement national standards such as the Standards for Water Quality of Sewage

Discharged into Urban Sewers and the Integrated Wastewater Discharge Standard.Sewage * We strengthen the monitoring and management of wastewater discharge and entrust third-party

discharge agencies to conduct regular water quality monitoring to ensure up-to-standard wastewater discharge. We also adopt a quality-based drainage method to classify and treat wastewater of

management different properties promoting the re-use of water resources.* Construction sewage from projects is discharged in accordance with local and client requirements.Domestic sewage is discharged into municipal pipe networks or stored in sewage pools and septic

tanks which are then regularly pumped and treated by professional companies.* For temporary camps constructed at overseas project sites we install wastewater collection tanks

sedimentation tanks and septic tanks. We also engage qualified local wastewater treatment

companies for centralized collection and treatment ensuring compliance with local discharge

standards.

53 542025 Sustainability Report Pursuing Sustainability through Green and Eco-Friendly Development

During the manufacturing process and mining operations we adhere to the principles of clean production. In 2025 the Longquan We have also increased our investment in the R&D of key technologies for energy conservation and emission reduction including

Industrial Park of CDI passed the clean production certification by the Economic Development Zone. Through active high-efficiency raw material pretreatment advanced energy-saving production processes and intelligent energy management

implementation of the clean production recommendations put forward by the expert review panel the Park has enhanced its green systems. These efforts aim to further improve energy efficiency and reduce carbon emissions from engineering construction and

production capabilities. manufacturing activities. Meanwhile the Project Department has strengthened data collection on energy consumption and carbon

emissions enhanced the management of emissions from operational activities and improved the quality of energy data reporting.Linyi Guojian Environmental Technology Co. Ltd. Zhongtian Gongkang Environmental Technology Co. Ltd. and Huainan CNBM

Tengfeng Environmental Technology Co. Ltd. all subsidiaries of Sinoma International Environment Engineering as well as Henan

Sinoma Environmental Protection Co. Ltd. and Tangshan Sinoma Heavy Machinery Co. Ltd. both subsidiaries of CNBM Equipment Examples of energy-saving technical upgrades

Group have been listed as key pollutant discharge units by their respective local ecological and environmental authorities.The primary pollutants discharged by these key units include particulate matter nitrogen oxides carbon monoxide sulfur dioxide Improvements of solar dryers and heat pump drying technologies Enhancing drying efficiency of biomass feedstock

volatile organic compounds (VOCs) hydrogen sulfide ammonia non-methane hydrocarbons (NMHC) and hydrogen chloride.These emissions are treated using technologies such as denitrification systems for air emissions and VOCs recovery and treatment

facilities. In accordance with environmental impact assessment approvals the key pollutant discharge units have installed Development of high-efficiency crushers and screening equipment Optimizing raw material processing

discharge outlets in designated areas within their facilities and conduct regular emission monitoring. A total of five exhaust outlets

have been installed located in the incineration workshop the emergency exhaust treatment system and the kiln tail. They also Development of new eco-friendly additives Reducing carbon footprint of additives

proactively cooperate with the supervision of relevant authorities. They have developed environmental self-monitoring plans in

accordance with legal requirements including the Measures for Self-Monitoring and Information Disclosure by Key State-Monitored Upgrading from plasma cutting to laser cutting Improved operational efficiency

Enterprises and the Technical Guidelines for Self-Monitoring by Pollutant Discharge Units. In addition they have deployed

monitoring systems for real-time supervision and prepared emergency response plans for environmental incidents which have Vanadium Redox Flow Battery Energy Storage System High safety and long cycle life

been filed with the relevant local government authorities as required. Pollutant discharge data for these key units are based on

disclosures made by the local ecological and environmental authorities. The websites for pollutant discharge information

disclosure are as follows: Case: YAMAMA Project in Saudi Arabia adopts solar PV power

delivering both environmental and economic benefits

In the relocation and upgrade project of the 10000-tonne cement

production line at YAMAMA in Saudi Arabia we deployed a 1 MW

* Linyi Guojian Environmental Technology Co. Ltd. distributed photovoltaic (PV) system at the construction site

http://221.214.62.226:8090/EnvironmentDisclosure/enterpriseRoster/openEnterpriseDetailscomDetailFrom=0&id=9 powering construction activities with green electricity. During the

1371324MA3NFBN36X construction phase the system is expected to reduce carbon

dioxide emissions by 5100 tons and save approximately CNY 2

* Jiangsu Zhongtian Gongkang Environmental Technology Co. Ltd. million in electricity costs demonstrating how clean energy can PV Power System at the Construction Site

https://permit.mee.gov.cn/perxxgkinfo/xkgkAction!xkgk.actionxkgk=getxxgkContent&dataid=c4b60efa6805449187d enhance both project efficiency and economic performance.

195377290d9d5

* Huainan CNBM Tengfeng Environmental Technology Co. Ltd.https://39.145.37.16:8081/zhhb/yfplpub_html/#/searchPagekeyWord=%E6%B7%AE%E5%8D%97%E4%B8%AD%E5 Optimizing the energy structure

%BB%BA%E6%9D%90&hy=%5B%5D

Henan Sinoma Environmental Protection Co. Ltd. We actively promote the adoption of clean energy equipment and accelerate the development of renewable energy projects. Based *

on regional resource conditions we strategically deploy solar energy and new energy facilities to increase the share of clean energy

http://222.143.24.250:8247/enpInfo/enpOverviewenterId=91410400755194405B001C&reportYear=2025 in our overall energy consumption gradually reducing dependence on traditional energy sources and advancing our low-carbon

* Tangshan Sinoma Heavy Machinery Co. Ltd. and green transformation.http://121.29.48.71:8080/#/fill/detailenpId=B1067AEC-3AF6-4A20-8FB5-68988B691BA3&year=2025 Leveraging our own expertise in green energy and environmental services we promote energy-saving renovations in our own office

buildings and manufacturing facilities with a particular focus on rooftop photovoltaic (PV) installations. Our subsidiaries and we

have installed PV power generation systems at office buildings and industrial parks either through self-construction or third-party

investment.Strengthening energy management

As of the end of 2025

We have strengthened our energy management system to enable real-time monitoring and analysis of energy usage optimize

energy distribution and dispatch and achieve overall consumption reduction. We have established management systems for clean

production energy conservation and emission reduction defining clear requirements and strengthening supervision and Total installed solar PV capacity reached 29.56 MW

assessment to ensure the effective implementation of all measures. Regular training and publicity campaigns on energy

conservation and emission reduction are conducted to enhance employee engagement and foster a corporate culture that representing a 71.86% increase compared to the end of the previous year

prioritizes energy efficiency and emissions reduction.

55 562025 Sustainability Report Pursuing Sustainability through Green and Eco-Friendly Development

Initiatives by affiliated enterprises to optimize energy structure in 2025 Sinoma Mining has developed the Manual for Ecological and Environmental Compliance in Mining Operations. In accordance with this manual it strictly observes ecological conservation redlines throughout the extraction process obtains legally required

approvals for forestland and grassland usage and rigorously follows land reclamation plans. It also adheres to the principle of

* The 1 MW PV power station built for Sinoma Overseas' YAMAMA Project in Saudi Arabia generated approximately 1.06 million concurrent extraction and rehabilitation requiring timely ecological restoration upon mine closure and strictly prohibiting illegal

kWh of electricity in 2025. boundary-crossing extraction. Mine construction and extraction areas office and living quarters industrial squares and waste

* Sinoma (Suzhou) Construction's UQNCC project in Iraq installed a 1 MWh PV system with 3 MWh energy storage representing a dumps along with all associated production and living systems and facilities must not encroach upon protected areas including

total investment of approximately CNY 7.5 million. By the end of December the system had generated approximately 590000 ecological protection red lines basic farmland and national public welfare forests. In 2025 we fully implemented compliant

kWh of electricity. The project completed an installed capacity of 326 MWp for the year with an expected annual power extraction requirements with all mining activities conducted within designated areas achieving zero instances of boundary-

generation of 540000 MWh and an annual CO emission reduction of about 470000 tons. crossing extraction throughout the year. 2

* Sinoma (Suzhou) Construction installed 1 MWp of PV panels on the rooftop of the Iraq Industry & Trade Steel Structure Factory

which generated 420000 kWh in 2025 saving CNY 840000 in on-site electricity costs. Biodiversity protection measures

* Equipment Group launched a rooftop PV retrofit project with an installed capacity of 3.5 MWp scheduled to be connected to * Avoidance measures: During the preliminary site selection phase we assist clients in assessing animal migration routes and

the grid in April 2026. Upon completion it will generate 3500 MWh of electricity per year saving approximately CNY 800000 in evaluating the survival status of terrestrial freshwater and marine species to ensure that project sites are located away from

electricity costs. biologically sensitive areas. Continuous monitoring of project impacts on surrounding ecosystems is conducted to safeguard

ecosystem integrity and biodiversity. For example during the implementation of the Chizhou CNBM Corridor Project Sinoma

* The rooftop PV system at the High-End Equipment Intelligent Manufacturing Park of Equipment Group generated 20379 MWh International (Nanjing) and Sinoma Mining designed the project route to pass underneath a river thereby avoiding direct disruption to

of electricity in the full year saving CNY 2.18 million in electricity costs. the river system and effectively preserving the integrity and stability of the river ecosystem.* Sinoma International (Nanjing) built a PV power station within its campus with a total installed capacity of 430.92 kWp * Mitigation measures: When project routes must pass through forested areas tunnel construction is prioritized to minimize damage to

achieving self-generation and self-consumption. forest vegetation. Additionally we continuously optimize our drilling blasting and excavation processes researching and applying

new dust suppression technologies. Soil and water conservation measures are strengthened including the construction of boundary

* The Nigeria ITORI project undertaken as an EPC project by Sinoma International (Nanjing) installed a 0.44 MW PV system with drainage ditches slope drainage systems and standardized sedimentation tanks as designed. Regular desilting is conducted to

energy storage for self-consumption at the project's temporary facilities. Since becoming operational in February 2025 the prevent sediment intrusion into surrounding water bodies. Greening projects are implemented on slopes roads spoil dumps and in

system has generated 360000 kWh of electricity saving CNY 800000 in electricity costs. living quarters creating a verdant ecologically harmonious mining environment where humans and nature coexist.* Regeneration measures: During mining operations we have carried out soil and water conservation and vegetation restoration

* Sinoma Cantian (Chongqing) New Materials Co. Ltd. purchased 1.4055 million kWh of green electricity in 2025 reducing costs projects. By planting trees sowing grass seeds and implementing slope spray-seeding the green area of mines is expanded. New

by CNY 295300. approaches are actively explored in ecological restoration efforts to enhance the carbon sink capacity of local ecosystems. In 2025 the

ecological restoration project at the Shacun Building Materials Factory mining area in Yangxin County Hubei Province achieved dual

We have promoted the new energy upgrade of mining equipment to achieve emission reduction carbon reduction and electricity improvements in geological safety and ecological function through systematic rehabilitation. The project innovatively applied external-soil spray-seeding technology mixing eight drought-tolerant plant species including Robinia pseudoacacia and Medicago sativa. A

conservation. By actively exploring pilot projects for "net-zero electric mines" we are positioning ourselves at the forefront of dedicated biodiversity conservation zone was established prioritizing native species to rebuild the ecological chain. Over 27 months

emerging green development models. Sinoma Mining has advanced the green and low-carbon transformation of its mining the project cleared 125000 square meters of hazardous rock achieved a 95 percent spray-seeding greening rate and reduced soil

operations through four key initiatives: replacing conventional equipment with new energy alternatives converting mining trucks erosion by 80 percent. By integrating engineering measures with biological technologies the project not only eliminated geological

from diesel to electric power implementing energy-saving retrofits and leveraging ecological restoration for carbon sinks. These disaster risks but also established a multi-layered vegetation system of trees shrubs and grasses fully restoring the ecological function

efforts have delivered a CO2 reduction of 35700 tons of which 28500 tons were contributed by the replacement with new energy of the mining area. This has provided a demonstration model of "cliff greening and ecological reconstruction" for mine restoration in

mining trucks. By the end of 2025 new energy mining trucks had been adopted across 45 projects with a total of 428 new energy the middle reaches of the Yangtze River.mining trucks put into operation. * Restoration measures: Systematic ecological restoration efforts are carried out across our operations. In 2025 Sinoma Mining

undertook 58 ecological restoration projects including mine revegetation ecological restoration and geological disaster remediation.Ecosystem conservation A total of 1.3346 million square meters of mining area underwent ecological restoration and rehabilitation throughout the year with restored areas expected to achieve an average annual carbon sequestration of 5300 tons. The restoration of the abandoned mine at

Shacun operated by Yangxin Branch of CBMI Construction Xi'an Engineering increased forestland area by 29.76 hectares and

We actively promote the integration of biodiversity risk assessments into our business activities identifying biodiversity-related risks construction land by 14.12 hectares transforming a derelict mine into a sustainable and valuable ecological resource.across multiple dimensions including our operational sites and surrounding areas upstream supply chain and downstream * Transformation measures: Projects are required to continuously monitor the impact of their activities on the surrounding ecological

customers. environment to ensure the protection of ecosystems and biodiversity. To strengthen biodiversity protection across our operations we

provide regular ESG training and awareness campaigns on biodiversity conservation to all affiliated enterprises and their employees.We have issued the Biodiversity Statement reviewed and approved by the Strategy Investment and ESG Committee of the Board of

Directors. We commit to strictly complying with relevant laws and regulations in the regions where we operate keeping project

development and operation sites away from ecological conservation red lines and ecologically fragile areas and always conducting

environmental protection for new reconstruction and expansion projects in accordance with the requirements of the "Three Lines We have cumulatively developed 193 green mines including 48 certified as national-level green mines

and One List" regulatory framework.Sinoma Mining continuously advances green mine construction to drive high-quality development. It has developed the Green

In 2025 Mine Construction Guidelines to standardize practices and procedures.The case "Ecological Restoration Empowering Sustainable Mine Development" was selected as one of the best practice among

listed companies for sustainable development.Research initiatives such as "Ecological Restoration Technologies for Arid Mining Areas in Northern China: Research and

All of new investment projects underwent biodiversity risk assessments Demonstration Applications" have effectively addressed issues including severely disturbed and unstable slopes utilizing carbon

sequestration technologies to reconstruct mine ecosystems.

57 582025 Sustainability Report Pursuing Sustainability through Green and Eco-Friendly Development

Circular Economy Resource recycling and reuse

Integration Sinoma International standardizes waste management strengthens resource recycling and reuse and promotes the reutilization of

waste providing sustainable sources of raw materials for the industry and supporting the development of a circular economy.We are committed to promoting the circular economy actively exploring the recycling and reuse of resources and further advancing

our green development philosophy.Comprehensive utilization of mining waste

Water recycling and conservation * At the project design stage we prioritize the use of recyclable or reusable materials to ensure that they can be easily

dismantled and reused. We also reduce waste and unnecessary consumption by optimizing construction processes

We strictly comply with national standards including the Discharge Standard of Pollutants for Municipal Wastewater Treatment and materials management.Plants and the Integrated Wastewater Discharge Standard. We systematically track and monitor the availability of water resources * During ore mining operations we optimize ore blending by scientifically combining high-grade and low-grade ores to

at our operating locations and collect real-time information on regulatory changes and water tariff adjustments to assess risks improve the utilization rate of waste rock. Waste rock generated during the mining process is further processed and

related to water scarcity and policy fluctuations and adjust our water management strategies accordingly. We clarify water reused as construction materials road paving materials or other valuable resources.conservation responsibilities and strengthen supervision and inspections. During project design and implementation we install

water-saving devices such as low-flow faucets flush systems and showerheads. We also build rainwater collection tanks to reuse * We recycle and reuse used tires by coating them with reflective paint to create flexible vehicle barriers or by

rainwater and reduce water consumption during construction. In addition we install water meters and monitoring facilities to repurposing them into on-site landscape features and safety signage.continuously monitor water consumption promptly detect and repair leaks and prevent water waste. * We separate sludge and fine sand generated from sedimentation tanks through solid-liquid separation and reuse them

In terms of water recycling we actively promote the development of greywater reuse systems. By constructing rainwater collection as substrate materials for mine site revegetation enabling resource recovery.tanks and multi-stage sedimentation tanks We have established a graded treatment system for rainwater sprinkler water and car

wash wastewater. Multi-stage sedimentation tanks and oil separation tanks are installed to remove suspended solids and grease.Treated greywater that meets relevant standards is preferentially reused for vehicle washing road sprinkling dust suppression and

vegetation restoration.Construction waste recycling and reuse

* We organize subcontractors of major projects to formulate special plans for on-site construction waste reduction

specifying reduction targets and the division of responsibilities. The plans propose specific measures including source

Measures for efficient utilization of water resources reduction classified management on-site treatment and discharge control and promote the integrated use of

temporary facilities such as roads and site hoardings with permanent facilities.* The Xinjiang hybrid wind power tower project of Sinoma Overseas collects snowmelt for reuse effectively reducing * We encourage subcontractors of all engineering projects to recycle and reuse construction materials. We also provide

freshwater consumption. For the PPC project in South Africa a three-stage sedimentation and water recycling tank has interpretation and training for our employees and contractors and promote digital processing and information-based

been built for washing operations at the concrete batching plant which is expected to save approximately 10000 management to achieve precise material cutting and refined management and reduce material loss.cubic meters of water annually.* We improve the reuse rate of temporary facilities and reusable materials at construction sites promote the repeated

* CBMI Construction Xi'an Engineering Shaoyang County Branch installed wastewater treatment facilities and a recycling and efficient use of construction materials and equipment and extend the lifecycle of materials and products.system for car-wash water at the mining site saving a total of 5800 cubic meters of water throughout the year and

directly reducing operating costs by approximately CNY 22000. * During the building design stage priority is given to the use of high-strength high-performance durable and

recyclable materials to ensure easy dismantling and reuse. For example steel formwork that becomes deformed or

twisted during construction can be repaired and reshaped for repeated use while discarded wooden battens and

timber blocks can be extended and repaired for reuse.

59 602025 Sustainability Report Pursuing Sustainability through Green and Eco-Friendly Development

Forest resource protection Packaging simplification and reduction

Our engineering and construction projects involve the use of timber. Surface vegetation needs to be removed during the We advocate simplification and reduction of packaging materials to reduce resource consumption.stripping process of mine construction and mining. Land reclamation involves the purchase of saplings; and timber is used

for the support of adits and tunnels as well as the erection of scaffolding. Therefore we place great importance on the

protection of forest resources and sustainable development in our business activities and adopt various measures to avoid

damage to forest resources reduce land exposure and prevent soil erosion. * During equipment delivery and material transportation for international engineering projects we

adopt lightweight reduced and recyclable packaging strategies to optimize space utilization and

* Compliance with laws and regulations lower energy consumption during transportation.We strictly comply with all laws and regulations related to forest resource protection to ensure that our business

activities remain fully compliant.* Strengthening responsibility and control

When signing contracts with contractors we clearly specify allowable material loss ratios. For self-operated projects * We clearly require large equipment to be reinforced with recyclable metal frame packaging. After

responsibility agreements for material management are signed with project managers requiring improvements in being transported to project sites metal materials such as angle steel can be directly reused as

construction techniques and processes to enhance material turnover and utilization rates thereby preventing auxiliary materials.excessive waste and loss at the source.* Sustainable procurement policy

We have established a sustainable procurement policy that requires suppliers to provide timber and forest products

from legal sources and obtain relevant forest certifications while encouraging suppliers to use sustainably managed * By applying hard film rust preventive oil and protecting machined surfaces we replace fully enclosed

forest resources. wooden box packaging with frame or pallet packaging for certain products thereby reducing the use

of wooden boxes.* Supplier compliance audits

We conduct online or on-site audits of suppliers to ensure their compliance with environmental and social

responsibility requirements and to prevent activities that may damage forest resources.* Substitution of timber materials * We procure second-hand containers for use as packaging boxes. After being transported to

We consider using steel or aluminum formwork as substitutes for timber formwork or selecting high-quality timber construction sites these containers can be reused as storage units for long-term use enabling

formwork to increase reuse cycles thereby avoiding excessive timber consumption. multiple uses of a single item.* Forest resource restoration

We have carried out environmental initiatives such as factory greening and tree planting for mine restoration to protect

forest resources and improve the ecological environment.* Through binding requirements in procurement documents and contractual clauses we promote the

simplification and reduction of packaging materials while ensuring the safety of cargo

transportation. We have also formulated special requirements and specifications for sea freight

packaging as contractual annexes requiring suppliers to prioritize the use of green and recyclable

Case: Green processes for sustainable building materials packaging materials.Sinoma (Handan) Construction has steadily advanced the industrial production line project for rock fiber boards using clean

electricity as the primary energy source to produce new green building materials that can replace traditional materials such as

ceramic tiles and wooden flooring. The production process of this product is environmentally friendly with no waste residue or

wastewater discharge. It is expected to recycle and utilize 47775 tons of bulk solid waste annually including 21277 tons of

metallurgical slag and 26498 tons of tailings (basalt tailings) while producing 50000 tons of rock fiber boards each year. By * We support suppliers in recovering delivery packaging thereby improving packaging utilization

reducing the consumption of natural timber the project significantly lowers carbon emissions and mitigates impacts on land and efficiency reducing waste and promoting green development throughout the industrial chain.vegetation.

61 622025 Sustainability Report Leading Industrial Progress and Enhancing Overall Value for Mutual Benefit

Enhancing Service Quality

We are committed to building a world-class enterprise featuring excellent products a prestigious brand leading innovation

capabilities and modern corporate governance. We consolidate our brand through quality assurance drive brand growth by

meeting with customer needs and empower brand building through technological innovation. By fully leveraging our role as an

industry leader and our industrial influence we continuously reinforce the global standing of the SINOMA brand.Leading Industrial Progress Creating excellent products

and Enhancing Overall Value Delivering premium projects

for Mutual Benefit Upholding the principle of "pursuing excellence and creating classics" we focus on delivering premium projects as we build our a global brand and effectively lead industrial development. Domestically we have undertaken the construction of the vast majority of

cement production capacity. Internationally we have contracted 373 cement production lines across 91 countries and regions

with continuous delivery of high-quality projects that have won wide acclaim from customers. In 2025 we remained committed to

integrity and honoring our commitments advancing overseas projects with high quality and ensuring the timely stable and high-

quality delivery of all projects.Enhancing Service Quality

In 2025

Sustainable Supply Chain A total of 10 projects were commissioned 25 projects obtained Provisional Acceptance

Certificates (PAC) and 15 projects received Final Acceptance Certificates (FAC)

In 2025 we have received letters of

appreciation and recognition from clients and

government authorities in multiple countries

including France Saudi Arabia the Philippines

Iraq Nigeria Ethiopia Niger the United States

and Kazakhstan. These accolades earned

through exceptional contract performance and

professional dedication in global engineering

services underscore the high level of

international recognition we have achieved

in project execution production operations

and maintenance and customer service.

64

632025 Sustainability Report Leading Industrial Progress and Enhancing Overall Value for Mutual Benefit

Strengthening quality control

Sinoma International places high priority on quality control. By strengthening institutional development tightening process

control and improving basic management we have standardized the entire business process and comprehensively improved

In 2025 the Company received a series of engineering and technical service awards quality. In 2025 multiple products from Sinoma Equipment received internationally recognized certifications: Electrically integrated

products of Hefei Gutai Automation passed both IEC international certification and EU CE certification; CNBM (Hefei)

Machinery & Electricity's chain bucket elevators and steel cord belt elevators received CE certification.* CBMI Construction Nigeria was awarded the

"2025 Best World-Class Quality Industrial Engineering Company in Africa"

Institutional guarantee

* The Nigeria KOGI project undertaken by CBMI Construction as an EPC contractor received the

"2025 Nigeria's Highest Engineering Quality Award" In accordance with ISO standards we have established and implemented internal policies including the Management Manual for Quality Environment and Occupational Health and Safety Management Systems Compilation of Procedural Documents for

Quality Environment and Occupational Health and Safety Management Systems and Procedures for Identification Evaluation of

* Seven projects of Equipment Group won "2025 Outstanding Engineering Design Awards in the Laws and Regulations and Control of Technical Regulations/Standards continuously optimizing the quality management system.In 2025 one additional affiliated enterprise obtained ISO 9001 certification bringing the total number of certified entities to 46.Building Materials Industry" organized by the China Building Materials Engineering Construction

Association including two first prizes two second prizes and three third prizes

* Nigeria New Materials Co. Ltd. has been awarded the prestigious Africa Housing Awards for its outstanding Risk management

contributions to green building materials innovation the implementation of affordable housing solutions and

localized sustainable development. It has become a highly representative Chinese enterprise among this year' s We integrate risk management principles into every link of product manufacturing and service delivery.winners.* In terms of the industry we keep abreast of the latest technical and environmental standards in the industry and integrate

them into product development and project initiation to address risks and opportunities brought by technological progress

and stricter environmental requirements.Case: Signing of Saudi QCC 10000-tonne-per-day clinker line: a new cornerstone * In terms of products through scientific performance measurement and supervision methods such as data collection data

in the Middle East Market analysis expert consultation and e7v0aluation report preparation we identify impacts and risks in energy consumption

resource utilization waste discharge carbon emissions labor rights health and safety and social responsibility during

In August 2025 one of our affiliated enterprises Sinoma International (Nanjing) held a signing ceremony with Saudi-based Qassim production and use. Proactive improvement measures are developed accordingly to deliver high-quality low-risk products

Cement Company (QCC) in Buraydah Qassim Province for the EPC contract of QCC's 10000-tonne-per-day clinker production line and services.(Line 4). This project marks a major clinker production line we have secured since our "Return to Saudi Arabia" strategy was * In terms of implementation risk administrators are appointed to promptly identify various risks in daily operations. Risk

initiated. It represents a significant achievement in our active pursuit of international expansion within our core cement business collection and assessment are conducted based on six categories of influencing factors: finance legal and regulatory

and lays a solid foundation for our continued growth in the cement markets of the Middle East and the broader Arab region. compliance reputation customer relationships operations and safety health and environment along with likelihood of

occurrence. Response measures are actively developed and implemented under the dual requirements of systems and

performance appraisal.Case: Successful commissioning of Saudi Jazan Project: setting a new * In terms of regional problems in our localized operations we incorporate country-specific risks into product and service

benchmark for project execution in the Middle East supply considerations with a focus on risks arising from local government environmental and energy-saving policies personal

safety of overseas employees religious beliefs and ethnic cultures.In December 2025 the commissioning ceremony for the SPCC Jazan 5000-tonne-per-day clinker production line (Line 3) project

was held at the site in Jazan Saudi Arabia. The project was undertaken by Sinoma International (Nanjing) as the EPC contractor

with Sinoma (Handan) Construction responsible for construction. As a benchmark project demonstrating our deep engagement in

the Middle East market the SPCC project embodies the deep trust and cooperation expectations of the client. It represents a

strategic move to consolidate our leading position in the Saudi market and expand our business footprint across the Middle East. Quality recognition

Since the project commenced the Sinoma International (Nanjing) team has adhered to the principles of "high standards high

speed and high quality" overcoming challenges and striving for excellence. This project stands as a testament to our overseas We continue to advance our "Five-Star Project" initiative striving to develop projects that demonstrate high-level contract

competitiveness and the strength of the Sinoma brand. performance capability high-growth economic returns high-efficiency management high-standard safety engineering and

comprehensive organizational support.To strengthen the project manager team the Company introduced the Project Manager Points Management Method for the first

time establishing a quantitative evaluation model based on dimensions such as qualifications honors experience and

performance. In accordance with this method the company completed its first selection of outstanding project managers. After

preliminary review by the respective units and final review by headquarters 60 gold silver and bronze project managers were

ultimately selected.

65 662025 Sustainability Report Leading Industrial Progress and Enhancing Overall Value for Mutual Benefit

Sincere and premium service

Protecting client privacy

We are committed to providing customers with high-quality services. By integrating design and R&D equipment manufacturing

construction operation and after-sales services we have established communication mechanisms with strategic partners including We place high importance on protecting internal and client privacy. Stringent measures are implemented to prevent

Holcim CRH Heidelberg Materials InterCement Dangote Cement EPCC and YAMAMA. Through comprehensive engagement with privacy data breaches including system access controls user logs employee confidentiality clause signing confidentiality

clients' production needs across the entire lifecycle we have built a strong brand image defined by reliable contract performance agreement signing and training on confidentiality rules. Confidentiality obligations clear responsibilities and liability for

superior product performance and excellent service. breach are specified in contracts with suppliers.Understanding client needs

Ensuring information security

We conduct monthly quarterly and annual tracking of contract performance quality and service progress. Regular

satisfaction surveys are carried out through questionnaires phone calls and interviews with key clients receiving periodic

follow-up visits to assess satisfaction levels regarding products services pricing and delivery timelines as well as to

understand their evolving needs. An integrated after-sales service system has been established to continuously enhance Governing Body: the corporate governance body exercises overall oversight of information security. The

customer satisfaction. Chairman leveraging extensive management experience in this field takes the lead in formulating the company's

digital development strategy. The Board members possess extensive experience in information security

management.Executive Body: the Company has established a cybersecurity leadership structure comprising a steering group

Addressing client complaints and a working group. The Chairman serves as Leader of the Cybersecurity Steering Group with the President and

the Executive in charge of digitalization as Deputy Leaders and other senior management members as

We have established an accessible and efficient complaint handling mechanism with diversified communication channels. participants. The Leader of the Cybersecurity Working Group is the Executive in charge of digitalization with the

Tailored solutions are developed based on client needs with an efficient client complaint handling process covering Head of the AI and Digitalization Department as Deputy Leader and heads of all headquarters departments as

classification investigation and verification solution development and follow-up feedback. members. An information reporting mechanism has also been established with all relevant personnel are

experienced in cybersecurity and information security.In 2025

We have revised our Cybersecurity and Information Security Management Measures clarifying procedures for

reporting and managing information security incidents. In addition we strengthen information security through

awareness training improved systems enhanced measures and risk assessments. Information security training

77 and activities are organized in line with China Cybersecurity Week to ensure the sustained effectiveness of % including over achieving a satisfaction rate of cybersecurity management. Guided by the fundamental principles that accountability rests with those who

of our clients participated 90 98 oversee operate and use information systems and that planning construction and operation must be in satisfaction surveys % of key or long-term clients % coordinated we have established a multi-tiered management system with cascading responsibilities. This system

covers the headquarters all secondary subsidiaries and their affiliated enterprises. Updates and improvements

have been made in infrastructure security protection systems data lifecycle security management cloud service

and outsourcing risk management information reporting and incident emergency response mechanisms.Throughout the year classified protection certification cybersecurity intelligence handling emergency drills and

Targets cybersecurity campaigns were carried out to ensure the sustained effectiveness of cybersecurity management.By 2026 We have made remarkable progress in building our information security system. Core business systems such as the

integrated portal system have obtained Level III Cybersecurity Classified Protection Certification. A systematic

security operation and maintenance mechanism has been established with third-party vulnerability scanning and

penetration testing conducted every one to two years and before new systems go live. The Information System

the participation rate of key or long-term clients in overall client satisfaction maintained above Security Emergency Response Plan has been developed and is regularly updated to strengthen proactive

satisfaction surveys is targeted to reach 90% 97% protection. By strengthening emergency coordination with suppliers we ensure rapid identification of

management and process flaws in the event of security incidents. Violations of security rules will be subject to

accountability accountable with full efforts to ensure business continuity and stable system operation.

67 682025 Sustainability Report Leading Industrial Progress and Enhancing Overall Value for Mutual Benefit

Driving industry innovation

We fully implement the national innovation-driven development strategy by increasing investment in R&D and innovation

protecting intellectual property rights and building innovation platforms to continuously foster new drivers of growth. In 2025 the Company and affiliated enterprises

have received a series of science and technology innovation awards

Innovation and R&D governance

The Science and Technology Innovation Leadership Group chaired by the Vice President takes overall charge of the Company's Provincial- and ministerial-level awards:

innovation development and R&D system. It organizes and implements key initiatives including breakthroughs in core technologies * Tianjin Cement Industry Design and Research Institute and Sinoma (Suzhou) Construction won

green and low-carbon technology R&D and digital transformation and upgrading. Throughout strategic planning industrial the First Prize of 2025 Hebei Science and Technology Award for the project "Key Technologies and Applications of

upgrading and project implementation we continuously monitor market opportunities and competitive risks arising from Structural Regulation of Non-Metallic Minerals for Preparing Eco-Friendly Functional Materials"

technological transformation. Under the unified arrangement all affiliated enterprises collaborate to promote technological

innovation and the commercialization of achievements. * Tianjin Cement Industry Design & Research Institute won

the Second Prize of 2025 Tianjin Science and Technology Award for the project "Key Technologies Equipment

Innovation development strategy and Engineering Application of Advanced Suspension Calcination for Carbon Dual Control in Typical High-

Carbon Industries"

In 2025 guided by our science and technology plan and in accordance with the Interim Measures for Post-Evaluation of Scientific

Research Projects we explored the establishment of an achievement evaluation system. We actively undertook major national * Three technological applications of Tianjin Cement Industry Design & Research Institute won

innovation tasks and accelerated implementation of our "open competition" incentive mechanism with five categories of "open the 2025 Science and Technology Award from China Building Materials Federation

competition" projects under the 14th Five-Year Plan progressing as scheduled. A fifth category of scientific research projects—

Special Technology Initiatives for Transformation and Development—was established with two such initiatives successfully * CNBM (Hefei) Powder Technology Equipment won

launched. the Third Prize of 2025 Anhui Science and Technology Progress Award for the project "R&D and Engineering

We actively implement incentives for scientific and technological achievements and apply the additional tax deduction policy for Application of Key Technologies and Equipment for Intelligent Control in Cement Production"

R&D investment. Special rewards are granted for achievements receiving the Company's science and technology awards innovation

awards and patent awards as well as for authorized invention patents and promulgated standards. Key project implementation Industrial-level awards:

teams receive additional performance-based incentives beyond their regular payroll.We strengthen our strategic orientation toward innovation-driven development addressing key technological challenges and * Sinoma CDI won the Second Prize (Comprehensive Category) at the 6th Engineering Construction Industry BIMfocusing on breakthroughs in core technologies. Efforts to accelerate the commercialization of research achievements including Competition for the project “Integrated BIM Application in Design and Construction of the 3-million-tonnefluidized calcination low-carbon grinding and hydrogen fuel substitution have been intensified. The world's first demonstration Qingfeng Green Energy Silicon-Calcium New Materials" the First Prize at the 4th "New Urban Construction Cup"

application of cement oxy-fuel combustion coupled carbon capture technology was officially unveiled empowering our high- International BIM/CIM Application Competition for "BIM Empowerment: Innovative Practice and Value of

quality development through technological innovation. Sinoma Construction France won the European "Science and Technology Integrated Design and Construction"

Cooperation and Innovation Award" for its outstanding performance in cross-border scientific and technological cooperation

and innovation. * Sinoma CDI won the Second Prize at the 14th "Innovation Cup" Building Information Modeling Application

Competition for the "Application Achievements of BIM Technology in EPC Projects"

* Tianjin Cement Industry Design & Research Institute won the Third Prize at the 6th Engineering Construction

Industry BIM Competition and the First Prize (BIM Application in Engineering Design) at the 2025 Tianjin Intelligent

Construction Technology Innovation Competition for the project "Comprehensive Whole-Process Application of

BIM Forward Design in Building Materials EPC Projects"

* Hefei Cement Research & Design Institute Tianjin Cement Industry Design & Research Institute and CNBM (Hefei)

Powder Technology Equipment received two First Prizes and eight Second Prizes in the Science and Technology

Progress Category of the 2025 Building Materials Machinery Industry Science and Technology Awards

* Hefei Cement Research & Design Institute and CNBM (Hefei) Powder Technology Equipment won the First Price at

the 2025 Science and Technology Award of China National Building Material Group. Tianjin Cement Industry Design

& Research Institute and Sinoma Mining Construction and were awarded the Second Price at the 2025 Science and

Technology Award of China National Building Material Group

69 702025 Sustainability Report Leading Industrial Progress and Enhancing Overall Value for Mutual Benefit

Risk and opportunity management Digital and intelligent engine

We have established robust risk management mechanisms for innovation and R&D. We strictly comply with relevant laws and

regulations including the Patent Law of the People's Republic of China and the Copyright Law of the People's Republic of China In accordance with the 14th Five-Year Digital Strategy Plan of Sinoma International we have defined our digital vision: to

and have developed the Measures for the Administration and Protection of Intellectual Property Rights and Measures for the comprehensively build a digitalized company and become a world-class provider of intelligent solutions for the materials industry.Reward of Scientific and Technological Achievements. Through these efforts we actively protect intellectual property rights

systematically mitigate IP-related risks and continuously cultivate new drivers of growth. Additionally we develop Intellectual

Property Day activities to enhance the awareness of IP protection and risk prevention among all employees and give full play to the

important role of intellectual property in supporting innovation and high-quality development.In scientific research innovation and technology application we strictly comply with international norms and industry standards.We have also actively established and implemented a responsible technology ethics management system to prevent ethical risks

arising from the adoption of new technologies. In 2025 the Company and affiliated enterprises

We also place strong emphasis on identifying opportunities for technological innovation. By establishing industry exchange received a series of awards in digital intelligence

platforms we identify key transformation challenges in the current cement engineering and technical service sector. Internal

innovation-driven mechanisms such as the "open competition" initiative are implemented to accelerate the iteration of new

technologies and products seizing opportunities presented by clean technologies. Provincial- and ministerial-level awards:

In May 2025 we hosted the 3rd Cement Green and Intelligent Development Conference bringing together industry leaders for in-

depth dialogue on green and low-carbon solutions digital design intelligent management and traditional business expansion. * Sinoma International Equipment's case "AI-Enabled Unmanned Application for the Whole Process of Open-Pit

These efforts contribute to the high-quality development of the global cement industry and advance the shared goal of building a Mining and Transportation" was selected as a typical application case for AI-enabled new-type industrialization

community with a shared future for mankind. and a typical case for IoT-enabled industry development; "IoT-Based Intelligent Application in Building Materials

Equipment Manufacturing" was selected as a typical case for IoT-enabled industry development

Science and technology innovation indicators

* CBMI Construction's "R&D and Application of Intelligent Construction Platform" won the Second Prize of the

In 2025 Science and Technology Award of the Hebei High-Tech Enterprise Association

Industrial-level awards:

We had 66 ongoing standards projects including 2 international standards and 32 national standards. * Sinoma CDI won the Silver Award at the 6th "Smart Construction Cup" Intelligent Construction Innovation

Competition for "BIM Design in Industrial Buildings and BIM Application Analysis in Innovative Building Materials

2 5 Projects" We promulgated international standards national standards and 6 industry standards.

* Sinoma (Suzhou) Construction's "Iraq DCC Line 1 & Line 2 Intelligent Project" received the award for Excellent

2 Intelligent Manufacturing Factory in Building Materials Industry as an outstanding achievement in digital We signed special scientific and technological projects for transformation and development transformation of smart manufacturing in 2025

We received 9 science and 3 We obtained 190 Including 13 * Tianjin Cement Industry Design & Research Institute received multiple awards for various projects including: the

technology awards at or above Awards from the Group authorized invention patents international patents Gold Award for "New Technologies New Processes New Materials New Equipment" achievements at the China

the provincial/ministerial level International Concrete Expo; 2025 Building Materials Industry Intelligent Manufacturing and Digital

Transformation Innovation Achievements; Building Materials Industry Excellent Solutions; 2025 Building

Materials Industry Intelligent Manufacturing and Digital Transformation Innovation Achievements (Building

2 Materials Industry AI Applications); the First Prize in the Technology Development Category of the 19th Building patents received the Tianjin Patent Excellence Award demonstrating tangible results in cultivating high-value patents Materials Machinery Industry Technological Innovation Award ("Jingong Intelligent Construction Machinery

Cup") 2025; and the First Prize in the AI-Empowered R&D and Design Track of the First Building Materials Industry

As of the end of 2025 AI Innovation Application Competition

* Sinoma International (Nanjing) received the

We had obtained a cumulative total of 3159 authorized patents and owned a total of 43 high-tech enterprises Third Prize for three projects at the First Building Materials Industry AI Innovation and Application Competition

6 national "little giant" enterprises (specialized and sophisticated SMEs that are national leaders in their fields) and 14 * Sinoma International Intelligent Technology was awarded the title of

provincial "specialized and sophisticated" enterprises "14th Five-Year Plan Intelligent Manufacturing Pioneer Enterprise" in the cement industry

71 722025 Sustainability Report Leading Industrial Progress and Enhancing Overall Value for Mutual Benefit

In terms of business management enhancement In terms of intelligent industrial transformation

We focus on our core businesses: engineering services high-end equipment digital intelligence and local operations. By unifying we leverage industrial internet platforms and digital technologies to build a premier manufacturing brand addressing five key

data standards across the entire industrial chain covering R&D production supply sales and services we enable integrated value aspects: intelligent equipment automated control intelligent production intelligent management and intelligent ecosystem.creation from design and construction to operation and management. This approach comprehensively supports our multi-business

portfolio and international presence gradually transforming the Company into a digital and intelligent solutions provider for the Driven by our globalization strategy we are deeply engaged in international industrial cooperation through innovative intelligent

materials industry. technologies demonstrating the significant influence of Chinese expertise and solutions in the field of industrial intelligence. We

In 2025 we completed construction of our Green Energy Intelligent Operations and Maintenance (O&M) Platform which has been continuously deliver systematic solutions covering green and low-carbon and intelligent manufacturing gaining attention and

put into operation achieving integrated coordination of centralized monitoring data analysis and O&M management. Tailored to recognition in key markets worldwide.the operational characteristics of photovoltaic power plants the platform unifies data standards integrates monitoring and O&M In 2025 Shangrao Sinoma an affiliate of the Equipment Group was selected as a "Little Lighthouse" enterprise in Jiangxi Province.information systems and establishes a digital O&M system covering data collection analysis and process management. This

comprehensively enhances the refined management of our new energy business. By introducing artificial intelligence technologies Sinoma International Intelligent Technology Co. Ltd. focuses on intelligent factory construction digital transformation consulting

the platform progressively enables functions such as intelligent alerting image recognition and O&M knowledge management. and equipment manufacturing offering one-stop services from R&D to production operations and maintenance. Its projects span

Through this platform we have effectively improved O&M efficiency and decision-making support capabilities enhancing the Southeast Asia the Middle East and 28 provinces and cities in China serving international building materials groups including

responsiveness of our new energy business to market changes. LafargeHolcim and Heidelberg Materials.In August 2025

Case: Local deployment of DeepSeek: leading intelligent industrial upgrading

a promotion and innovation achievement exhibition was held in Jakarta Indonesia. At the event we released four scientific

In February 2025 we completed the local deployment of DeepSeek providing large model applications and opening enterprise knowledge and technological innovation achievements comprehensively presenting innovative solutions that support Indonesia's

base scenarios to all affiliated enterprises. The local deployment of DeepSeek and the application of knowledge bases represent a significant national development vision to guests including Indonesian government agencies business partners and investment

step toward building an enterprise-wide knowledge repository and enhancing capabilities in scientific research design engineering and institutions and actively expanding cooperation space with regional customers.technical services and O&M. Looking ahead we will further consolidate computing resources and expand capacity as needed to meet the

demands of researchers and designers for additional versions of large models. This will gradually cover research validation and scenario

development across fields including engineering design equipment manufacturing construction and production line O&M. In September 2025

a delegation from the Global Industrial and Energy Foundation visited CBMI Construction. The two sides conducted in-depth

exchanges on core topics including the development path of "net-zero emissions" and low-carbon sustainable development

The Sinoma International "Dual Carbon" Digital Platform developed by Sinoma International Equipment has been stably applied in the industry and carried out multi-dimensional and in-depth discussions on key green development directions across

across 101 subsidiaries and 329 ongoing projects covering domestic and overseas engineering equipment mining and multiple sectors.environmental protection sectors. The platform has standardized carbon accounting and rolled out functions including data query

one-click chart and report generation. It has addressed difficulties in data aggregation verification and analysis as well as low In December 2025

management efficiency while providing a carrier for data traceability and accumulation. Additionally features such as automatic

aggregation of intelligently collected equipment energy consumption data and multi-source data comparison have been deployed at the Iraq Cement Industry Comprehensive Service Solutions Promotion Conference held in Sulaymaniyah Sinoma

in mining operations representing a meaningful step toward intelligent monitoring and enhanced data credibility. This platform International highlighted its full-cycle integrated services covering consulting design construction operation renovation

serves as a critical enabler for the implementation of our "Dual Carbon" action plan. digitalization and green energy supporting solutions supported by its full industrial chain and localized experience. The

Company also shared successful cases of its intelligent operation and maintenance system in Iraq demonstrating its brand

Case: Sinoma International Equipment develops intelligent platform to strength.drive business transformation

Sinoma International Equipment is actively developing an intelligent Sinoma International Intelligent Technology formally signed a strategic cooperation agreement with Korea's cement giant

service and O&M platform for the full lifecycle of cement equipment Sampyo Cement for the "Cement Mill AI Autonomous Manufacturing Project." This project has been designated as part of the

driving its transformation from equipment manufacturer to service nationally supported "AI Convergence Industry Upgrade Program" under Korea's Ministry of Trade Industry and Energy and

provider. The platform integrates remote monitoring intelligent after- has received direct funding from Korea's national special budget. Sampyo Cement aims to implement Sinoma International

sales service and a cloud-based spare parts management system Intelligent Technology's comprehensive intelligent manufacturing solutions to progressively achieve full intelligence from

ensuring stable equipment operation while enhancing operational

efficiency and market responsiveness. Through the development of an edge sensing and platform control to business decision-making ultimately completing the intelligent upgrade of all

intelligent knowledge platform based on domestic large language models production lines within five years and establishing Korea's first "unmanned factory" in the industry.Sinoma International Equipment has systematically built a knowledge

base covering core equipment including kiln systems and vertical mills.Leveraging knowledge graph technology an intelligent maintenance

decision-making system has been developed capturing historical

maintenance experience to form reusable decision rules. These provide

data-driven support for product optimization O&M and spare parts Interface of the Cement Equipment Full-Lifecycle Intelligent Operations and Digital Service Platform

configuration. Since its application the platform has demonstrated initial

value.The maintenance decision-making process has been optimized via knowledge graph reducing the average fault handling time by

approximately 20%. Integrated with the domestic large model it enables intelligent fault diagnosis and solution recommendation cutting

after-sales service costs by around 10%. These practices have provided a feasible path for the Company to deepen its service capabilities

through digitalization and build new competitive advantages in the existing market.

73 742025 Sustainability Report Leading Industrial Progress and Enhancing Overall Value for Mutual Benefit

Sustainable Supply Chain Supplier evaluation

We conduct an annual assessment of all registered suppliers to ensure their compliance with our internal policy the

Supplier Code of Conduct. For suppliers that performed contractual obligations during the year we conduct document

We have established a transparent dynamic and traceable supply chain management system. We integrate the concept of reviews and on-site audits covering multiple dimensions including product quality environmental performance work

responsible procurement into the whole procurement process implement supplier management policies and risk control measures safety and human rights protection. Suppliers with non-compliant items are required to formulate improvement plans to

and focus on environmental attributes of procured products and services as well as suppliers' sustainability performance. By avoid potential conflicts with ESG requirements.building long-term stable and sustainable partnerships with suppliers we promote long-term win-win development with our Each affiliated enterprise has established a differentiated supplier evaluation system based on its business characteristics.partners. During the equipment procurement review stage we attach particular importance to evaluating suppliers' environmental

policies and management systems and prioritize the procurement of green and low-carbon products and services. We also

conduct annual assessments of registered suppliers incorporating key indicators such as safety occupational health

Improving supply chain management insurance coverage and wage payment into the supplier evaluation system.In line with our internal management regulations such as the Supplier Management Measures and the Purchase Management Supplier ESG Assessment Objectives of Sinoma International Intelligent Technology Co. Ltd.Measures we have implemented a robust supplier classification management system that categorizes suppliers into four tiers:

qualified potential unqualified and blacklisted each subject to differentiated management measures.To increase the proportion of suppliers

undergoing ESG risk assessments to To achieve 100% ESG

In 2025 30 risk assessments coverage The short-term % of the total suppliers The long-term for all suppliers

target target

We achieved a 100% adoption rate for our procurement platform. Supplier ESG Assessment Objectives of the Equipment Group

In the 2026 supplier evaluation process we will further increase the weighty of ESG criteria to promote continuous

improvement in suppliers' sustainability capabilities.Supplier admission

We continuously improve our supplier admission mechanism with our affiliated enterprises integrating ESG into Supplier support

throughout the entire procurement process. In addition we implement strict supplier evaluation and screening

procedures requiring suppliers to submit the Supplier Information Registration Form. Comprehensive information

verification assessments and scoring are conducted through the Group's procurement platform and third-party We maintain close cooperation with suppliers and provide regular interpretation and training in line with our annual plans

professional websites. Suppliers receiving low evaluation scores are subject to thorough due diligence and review to development strategies and project management requirements. We also organize technical exchange activities on ESG-

effectively mitigate potential risks in cooperation. related topics including the implementation of dual-carbon goals health and safety management and labor risk

management.We actively support our suppliers by organizing technical exchange meetings to improve their professional capabilities and

assist them in better understanding the technical requirements of relevant projects. Meanwhile in line with our future

Supplier management development plans we interpret our strategic objectives to suppliers and sign strategic and framework agreements with

high-quality suppliers capable of long-term supply thereby supporting their sustainable development.To improve the quality and efficiency of supply chain management we continue to optimize the supplier classification

management system. Through scientific evaluation suppliers are classified into different tiers with differentiated

management strategies applied based on clearly defined grading criteria. Outstanding suppliers scoring 90-100 points are Supplier exit

given priority in cooperation opportunities. For key products we adopt a multi-supplier mechanism to ensure the security

and stability of the supply chain. Through the Group's procurement platform we dynamically adjust cooperation strategies

based on suppliers' overall capabilities and evaluation results thereby building a high-quality supplier ecosystem. We have established a regular supplier assessment mechanism and fully incorporate ESG performance indicators into our

annual evaluation system. A supplier selection and exit mechanism has also been established. We closely monitor cases of

We strictly comply with laws and regulations such as the Regulation on Guaranteeing Payments to Small and Medium-sized violating our fundamental ESG requirements including quality issues payment disputes labor risks and non-compliance

Enterprises and have established standardized and transparent supply chain financial settlement procedures. As of the end with energy-saving and environmental protection standards. Suppliers involved in such cases are required to implement

of the reporting period the proportion of accounts payable in total assets did not reach the disclosure threshold specified corrective measures and those that refuse to rectify within the specified timeframe or commit serious violations will be

in the Guidelines and no cases of significant overdue payments to small and medium-sized enterprises occurred. added to the supplier blacklist.

75 762025 Sustainability Report Leading Industrial Progress and Enhancing Overall Value for Mutual Benefit

Mitigating supply chain risks Supply chain integrity supervision and audits

We continue to improve our supply chain ESG risk assessment system. Our affiliated enterprises have formulated specific targets * We strengthen supplier integrity supervision and focus on preventive measures by requiring all suppliers to submit an

based on their respective development stages. They actively identify environmental and social risks within the supply chain pay Integrity Commitment Letter during the admission process to our online procurement platform.attention to suppliers' ESG performance and conduct assessments throughout the entire cooperation lifecycle. We integrate ESG * We have established a parallel mechanism whereby procurement contracts are executed alongside integrity

requirements into our existing supplier admission mechanism and incorporate ESG criteria into the supplier evaluation system agreements. For every procurement contract signed with suppliers a separate Procurement and Subcontracting

during the cooperation assessment stage thereby mitigating supply chain risks.Integrity Agreement is also signed achieving a 100% coverage rate. These agreements include contact channels for

Identification of supplier sustainability risks supervision and reporting thereby reinforcing ethical conduct throughout the procurement process.* Our affiliated enterprises are also required to focus on strengthening procurement compliance and digital management.We categorize our suppliers into qualified suppliers potential suppliers unqualified suppliers and blacklisted suppliers based on their They have conducted supervision and inspections of key business processes such as procurement and bidding to

business performance contractual fulfillment product quality and the sustainability risks outlined below. identify procedural gaps and potential integrity risks.* Environmental management: Whether the supplier has been subject to administrative environmental penalties. * We also regularly conduct special integrity inspections of procurement and outsourcing activities across our affiliated

* Social responsibility: Whether the supplier has been involved in labor-related legal disputes or has been subject to government enterprises through methods such as telephone interviews.penalties due to safety accidents. * We supervise and urge relevant functional departments to strengthen supplier admission and evaluation management

* Corporate governance: Whether the supplier has been involved in corruption bribery conflicts of interest or other improper and improve management controls. Annual comprehensive evaluations are conducted for suppliers and those that

competitive practices. violate the provisions of the Integrity Agreement are subject to differentiated measures based on the severity of the

* Other specific risks: In certain countries where stricter social responsibility requirements apply to suppliers suppliers may face violation including score deductions warnings suspension of transactions and inclusion on the supplier blacklist.higher social risks. In addition in industries or for specific products whose production processes involve high pollution or high

energy consumption manufacturers may face higher environmental risks. * The affiliated enterprises will periodically dispatch working groups to project sites to conduct in-depth evaluations of the

effectiveness of supplier integrity management through on-site inspections face-to-face interviews and document

reviews.We prioritize the procurement of green and low-carbon products and services. During the project bidding stage we evaluate * We conduct integrity interviews with personnel in key procurement positions on a periodic or ad hoc basis organize

suppliers' environmental policies environmental management systems and their performance in resource utilization and waste meetings on procurement compliance management and raising awareness of integrity risks and provide regular training

management and require products to meet relevant environmental emission standards and energy efficiency ratings. We attach on integrity compliance and risk prevention.importance to product materials and manufacturing processes organizing experts to conduct rigorous technical assessments to

ensure that selected products demonstrate low energy consumption and low pollution during the production process. During the * We conduct supplier follow-up visits or supplier forums on a periodic or ad hoc basis to communicate with suppliers and

cooperation we incorporate subcontractors into our unified management system clearly defining their safety and environmental understand the integrity performance of our personnel during business interactions thereby promoting joint integrity

protection responsibilities and obligations and specifying safety and environmental protection access requirements for equipment building with suppliers.construction machinery and facilities. During the cooperation assessment stage we regularly monitor and review suppliers' * In 2025 the rate of affiliated enterprises that conducted or received supplier-related special inspections on-site

environmental performance to ensure compliance with contractual and environmental regulatory requirements and work with

suppliers to address environmental management issues. inspections and follow-up meetings reached 100%.We attach great importance to strengthening the ESG capabilities of our procurement teams

and require our affiliated enterprises to carry out related training and educational activities. Safeguarding supply chain stability

In November 2025 Sinoma International organized a training and promotion meeting for the procurement management system. The We attach great importance to the security and stability of our supply chain and have established a multi-dimensional risk

meeting focused on three key agendas: interpretation of policies and regulations dissemination of internal systems and addressing identification and response mechanism maintaining continuous monitoring of external factors such as wars geopolitical

common issues. It systematically integrated ESG principles and green procurement requirements comprehensively reviewed core developments international relations and sanctions.procurement standards and key risk control measures and laid a solid foundation for future procurement that is compliant efficient

and sustainable.* We actively expand our supplier base each year and establish multi-location warehousing systems to prevent supply

Sinoma Chengdu Design & Research Institute organized systematic ESG capacity-building training for its procurement logistics

inspection and commissioning and operation teams promoting the transformation of the procurement team from traditional cost disruption risks and ensure continuity of supply.control toward sustainable supply chain management. * We adopt a primary-and-backup supplier strategy for key products and closely monitor market developments to avoid

Sinoma International Intelligent Technology Co. Ltd. organized dedicated ESG training and sustainability awareness sessions for its supply chain disruption.procurement department clarifying the green procurement strategy and enhancing the team's professional capabilities. * We make comprehensive arrangements for suppliers' delivery schedules formulate detailed shipping plans for projects

in key regions and maintain close communication with relevant parties including suppliers freight forwarders ports

and shipping companies. In addition we closely monitor transportation risks such as shipping routes and prepare

multiple shipping options to ensure that goods are delivered safely and on time to designated destinations.

77 782025 Sustainability Report Embracing the Mission of the Times and Jointly Pursuing Global Development with Responsibility

Green and Low-Carbon Products

As a global leader in the industry of cement engineering equipment and services Sinoma International undertakes the critical

mission of steering the industry's transition towards green and low-carbon development. The Company is dedicated to providing

clients with eco-friendly products and services of exceptional quality. Leveraging its globally leading cement technology and

equipment service system with independent intellectual property rights the Company actively formulates a low-carbon

development technology roadmap for the entire cement industry chain. This commitment helps to continuously enhance the

benefits of the industry's carbon reduction and improve environmental performance.Embracing the Mission of the The Company seizes opportunities in clean technology making green intelligence its core development strategy and translating this philosophy into its products and services.Times and Jointly Pursuing Screening

Principles Green Products

Global Development with Among them:

Products that promote green

Responsibility development in societyPrinciple 1: Application of Value: Reducing pollutants and carbon

green technology emissions during construction manufacturing

and operation; decreasing pollutants and Value: It provides products that

carbon emissions for customers and owners

Green and Low-Carbon Products promote waste recycling reduce fossil during equipment usage and cement energy use in the industry and society

production line operations.Principle 2: facilitate energy structure

Obtaining low- transformation and lower carbon

carbon emissions ultimately promoting green

certification In 2025 revenue from green products

Addressing Climate Change social development and mitigating

reached CNY 9.788 billion global climate change.accounting for 19.73% In 2025 revenue from products

Principle 3: promoting social green development

Improving People's Livelihood and Well-being Providing significant green of the Company's total revenue.benefits to third reached CNY 8.589 billion.parties (customers

society

communities etc.)

In 2025

The Company's green R&D investment reached CNY 1.816 billion

the Company invested

CNY 209 million in green energy and environmental protection sectors focusing on distributed new energy

projects and alternative fuel processing centers to support society's green and low-carbon development.

79 802025 Sustainability Report Embracing the Mission of the Times and Jointly Pursuing Global Development with Responsibility

Developing Low-Carbon Equipment

* Qingzhou CCUS Project was selected into the second batch of national demonstration projects of advanced green and low-

carbon technologies marking a major breakthrough in China's green and low-carbon transformation of energy-intensive

Sinoma International continuously advances the application of low-carbon and ultra-low emission technologies in cement industries.production processes achieving breakthrough progress in low-carbon equipment R&D and manufacturing. A series of significant

accomplishments have been made in energy substitution resource recycling energy storage applications green building materials * Sinoma International (Nanjing) advanced the Jiangsu Provincial Major Scientific and Technological Achievement

and intelligent optimization forming a comprehensive low-carbon solution system covering the entire cement production process Application Project developing and industrializing key technologies for low-carbon combustion processes and equipment

to create green value for customers. in cement kilns that replace 40% of fossil fuels achieving over 10% reduction in total CO2 emissions from cement

production compared to using fossil fuels exclusively. All R&D tasks of the project have been successfully completed with all

2025 indicators meeting expected standards. The relevant technological achievements have been implemented in multiple

projects including An Bai in Vietnam and Gezhouba Jingmen.* R&D and industrialization of key technologies for cement kiln low-carbon combustion processes and equipment replacing * The Equipment Group actively promotes the development and application of online carbon emission monitoring

40% of fossil fuels technology in the cement industry. It has deployed a pilot project of online carbon emission monitoring for the Ministry of

Ecology and Environment at Changshan South Cement. Within this project the Group conducted systematic comparative

* Industrial demonstration of complete sets of technologies and equipment for producing acid and co-producing cement from research on flow velocity monitoring technologies based on different principles and performed a comparative analysis of

new-type industrial by-product gypsum carbon monitoring and carbon accounting methodologies for the cement industry. The project's performance in data

* Demonstrated application of a vanadium flow battery energy storage system for cement production accuracy and stability has been recognized by the General Station.* Ultra-high prefabricated wind-hybrid tower structure system awarded First Prize in First Prize for Technological * The Iraq DCC Cement Production Intelligent Operation and Maintenance Platform constructed and operated by CBMI

Development in the CNBM Technological Innovation Award. Construction (Suzhou) and designed by Sinoma International Intelligent Technology Co. Ltd. deployed servers and

production dashboard systems. It launched AI-powered energy consumption optimization and remote operation functions

* Successfully developed and implemented intelligent optimization control system for cement clinker enabling energy consumption monitoring and intelligent optimization for key equipment like cement mills. They completed

calcination in waste co-processing multi-tenant adaptation of the platform optimization of operational logic and upgrading of the energy consumption

module enabling real-time monitoring of energy consumption and carbon emissions and achieving an average annual

energy cost saving of CNY 6 million.Case: Vanadium redox flow battery launched empowering green cement manufacturing * The key preparation technology for activated aluminosilicate cementitious materials for cement independently developed

by CBMI Construction has been successfully included in the national recommended catalogue.Sinoma Overseas successfully developed a large-capacity long-life vanadium redox flow battery energy storage system tailored for

* The building materials industry standard Engineering Technical Code for Wet Flue Gas Desulfurization of High-Sulfur Flue

green cement manufacturing scenarios. Through breakthroughs in core technologies including 250kW modular design integrated Gas from Cement Kilns compiled with the participation of Sinoma (Suzhou) Construction has been officially implemented.control and high-efficiency standardized testing the system completed a 250kW/1MWh demonstration in the high-end equipment

manufacturing industrial park. Over its lifecycle each system can reduce nearly 2900 tons of CO2 emissions with annual discharge

capacity of approximately 500000 kWh providing reliable peak-shaving and emergency backup power services for the industrial

park.Case: Transforming white pollution into "urban minerals" unlocking

new green growth space

The Company reduces carbon emissions from equipment manufacturing through external resource collaboration a carbon Facing the challenge of reutilizing over 820 million tons of phosphogypsum

management system and digital transformation. It actively participates in low-carbon product certification to enhance the accumulated in China with an annual increase of approximately 80 million tons the

transparency of its products' carbon footprint assessments. The Equipment Group established a digital carbon management Company leveraged its proprietary engineering capabilities to successfully develop a

platform enabling automated collection of group-wide regional and plant-level carbon emission data through digital means. comprehensive solution for "phosphogypsum decomposition into acid and co-

Covering 42 core operational indicators including production and quality it eliminates efficiency bottlenecks and error risks production of cement." This solution transforms industrial solid waste into sulfuric acid

associated with manual reporting helping customers better understand carbon emissions related to products and improving and cement truly achieving "waste-to-resource recycling and symbiotic circulation."

equipment manufacturing toward greener smarter and more efficient development. By the end of 2025 the carbon management The world's largest phosphogypsum resource recycling demonstration project

digital platform had connected more than 200 enterprises cumulatively. completed in Wengfu Guizhou can consume 1.4 million tons of phosphogypsum

annually producing 650000 tons of sulfuric acid and 800000 tons of cement while

reducing carbon dioxide emissions by approximately 300000 tons. This project

Researches on Low-Carbon Technologies successfully transforms an environmental burden into economic resources. This

technology has been successfully registered as a project in the major scientific and

technological research program "Open competition" of the China Building Materials

Sinoma International vigorously develops green technologies conducts extensive R&D and applies carbon reduction solutions and Federation. It has thus been elevated to strategic level in the national effort to promote

develops carbon capture and utilization technologies. Focusing on energy-saving and carbon-reduction breakthroughs in green development in the industry and is currently being recommended for application Wengfu Phosphogypsum Resource Utilization

"alternative fuels" "clay calcination" and "oxy-fuel combustion" it fortifies the technological foundation for the cement industry's Demonstration Project Guizhouto phosphorus chemical enterprises both in China and overseas.low-carbon development.

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Case: Developing an intelligent carbon monitoring and optimization Case: Integrated Solid Waste Management Practice: Creating a Green

system to empower cement industry's low-carbon transition Model for "Zero-Waste Cities"

Sinoma International's project "Research and Application of a Digital Intelligence-Based Carbon Monitoring Assessment and Optimization The Chengdu Building Materials Institute implemented a comprehensive "zero-waste city" solution in Wu'an City Hebei Province. Leveraging

System" systematically studies key technologies for precise carbon emission measurement low-carbon dispatch and assessment two key technological pathways namely co-processing in cement kilns and the circular utilization of bulk industrial solid waste in building

optimization in the cement industry. It aims to develop high-precision highly reliable online carbon emission monitoring and measurement materials it has achieved 100% harmless treatment of municipal solid waste sewage sludge medical waste and hazardous industrial waste

technologies. By developing a cross-coupling verification technology integrating CEMS data based on machine learning and material with an annual total processing capacity reaching 20 million tons. The solution includes planned projects for the comprehensive utilization

balance algorithms precise CO2 emission measurement can be achieved. The project further develops high-value industrial intelligent of 13 million tons/year of industrial waste 3 million tons/year of silicon-calcium-based new materials and 2 million tons/year of

products serving the goals of peaking CO2 emissions before 2030 and achieving carbon neutrality before 2060 in the cement industry. The construction waste treatment. By synergistically utilizing large-volume solid wastes such as steel slag construction debris and coal gangue

project explores the construction of a digital and transparent technical system for supervising the quality of online monitoring data. Its the project enables large-scale production of green building materials. This model has significantly improved regional resource recycling

ultimate objective is to establish an integrated intelligent carbon monitoring and management system that combines carbon emissions rates. Not only has it supported Wu'an City in being approved as a national-level circular economy pilot but it has also been successfully selected as a national exemplary case of a "zero-waste enterprise." It provides a replicable demonstration pathway for the green

measurement and optimization functions. This system will enable low-carbon dispatch optimization for regional companies providing transformation of the traditional building materials industry and strongly advances the development of a green low-carbon circular

precise decision-making support for cement enterprises in controlling carbon emissions. economy system.Providing Low-Carbon Services

Sinoma International is accelerating the green energy and environmental protection business developing platforms for the green

Integrated Solid Waste Management Practice: Creating a Green Model for "Zero-Waste Cities"

energy industry and for alternative fuel combustion testing aiming to facilitate the energy transition for global clients and other

industrial and commercial users. The Company generated green energy and environmental protection revenue of CNY 4.81 billion

for the year.Sinoma Overseas established a green energy and environmental protection industrial platform including five business lines: wind Target for the reception disposal and recycling of external solid waste

and solar EPC wind power hybrid towers smart microgrids new energy development and new energy storage with a total

construction scale of 5.5 GW. It has cumulatively served 21 smart microgrid and energy storage projects for basic building materials This year By 2026

and new materials enterprises with a construction scale of 129 MW.the Company processed and utilized 1.07 million tons of external The Company plans to reach the utilization

solid waste achieving the target of 2.35 million tons/year in 2025 and disposal capacity of 2.75 million

* 17 microgrid projects under Tianshan Materials distributed photovoltaic power generation project constructed by Sinoma for external solid waste utilization and disposal capacity

Overseas have completed the grid connection and commissioning with a total capacity of 50MW achieving an annual power tons/year of external solid waste.generation of 55.6 million kWh and reducing CO2 emissions by approximately 55300 tons per year.* The distributed photovoltaic power generation project at the Southwest Cement Plant in Lijiang Old Town currently under

construction by Sinoma Overseas has a total installed capacity of 4.6 MWp. The project maximizes resource utilization by Building Low-Carbon Factories

constructing on idle rooftops vacant land and slopes within the plant area. Operating under the "self-generation for self-

consumption with surplus electricity fed into the grid" model the project is expected to generate 6.48 million kWh annually Sinoma International leverages its low-carbon technological advantages to provide global clients with high-quality green engineering services accelerating their decarbonization processes to address increasing global energy-saving and carbon-reduction pressures. To date

reducing CO2 emissions by approximately 695 tons per year after commissioning. the Company has successfully established a new generation of world-class green and intelligent demonstration projects including Huakan

* The Sinoma Construction Portugal green retrofit project reduces CO? emissions by approximately 21% annually. South Cement Wuzhong Saima and the France K6 Project. It has also implemented emission reduction benchmark projects such as the

Energy Saving Emission Reduction and Carbon Reduction Technical Transformation Project at the No. 1 Production Line of Xuzhou

Zhonglian.Sinoma Environment is building an industrial chain platform of alternative fuels establishing an integrated "collection storage Case: Energy efficiency revolution of 10000 t/d: setting an

processing transportation and utilization" system that converts municipal solid waste textile waste and scrap tires into alternative industry green benchmark

fuels for cement production lines significantly reducing carbon emissions across the industrial chain. Xuzhou Zhonglian Cement Co. Ltd. has implemented an energy-saving emission-reductionand carbon-reduction technical transformation

project at its production frontline. As an innovative practice for China's first 10000 t/d clinker production line to upgrade its preheater

system from a five-stage to a six-stage design the core technologies include the six-stage preheater system independently developed by

By the end of 2025 Tianjin Cement Industry Design & Research Institute Co. Ltd. (TCDRI) the TDF (Tyre Derived Fuel) precalciner and a coupled technology

combining deep self-denitration with precise SNCR. The project has also successfully applied the first domestic 10000 t/d fourth-generation

grate cooler with a middle roller crusher filling the technological gap for domestically produced coolers of this specification. After the

Sinoma Environment operated an annual production capacity of transformation the main technical indicators of the production line have reached internationally advanced levels. The standard coal

18 2.25 consumption for clinker has been reduced by approximately 15 kg/t.cl saving 43000 tons of standard coal annually. This has led to a alternative fuel processing centers million tons reduction of 108000 tons in carbon dioxide emissions and a significant decrease in the concentration of pollutants such as nitrogen oxides.

This project has become a model for green technological transformation in the cement industry and was awarded the First Prize in the

National Outstanding Engineering Survey and Design Awards.

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In response to the short-term medium-term and long-term impacts of climate change we have formulated targeted response

Addressing Climate Change plans and measures to avoid and adapt to the adverse effects brought about by climate change and to seize the opportunities presented by it.Sinoma International actively implements the national "14th Five-Year Plan" the goals of "Carbon peaking by 2030 and carbon neutrality by

2060" and the Implementation Plan for Carbon Peaking in the Building Materials Industry. Adhering to the Company's Comprehensive Risk Climate Change-Related Risks

Management System and following the framework recommended by the Task Force on Climate-related Financial Disclosures (TCFD) it Risk Type Climate Potential Impact on the Company Timeframe Response Measures

proactively identifies operational risks potentially brought about by climate change and vigorously pursues green innovation and R&D. Change-

Through these efforts the Company provides professional support to help the industry address the impacts of climate risks and contributes Related Risks

to society's low-carbon transition. Transition Risks

Policy and Stricter Failure to standardize information disclosure * Always keep abreast of the

Legislation regulatory may result in heightened compliance penalties Mid-term latest relevant laws Climate Change Management compliance imposed by governmental or regulatory regulations supervision requirements authorities. requirements and national

goals of the country and the

Sinoma International has formulated and implemented the requirements of the Company's Rules for the Implementation of the Strategy operation location. Develop

Investment and ESG Committee of the Board of Directors thereby defining the supervision and management responsibilities for climate- corresponding plans and

related matters. The Strategy Investment and ESG Committee has overall responsibility for the Company's climate change-related affairs. measures based on the newly

This includes identifying climate-related risks and opportunities reviewing the Company's sustainable development goals and monitoring introduced or updated

the implementation of objectives and strategies. The Committee reviews climate change-related matters annually and reports its findings to requirements and goals.the Board of Directors. Market Industry Pressured by the global trend toward carbon Mid-term * Track industry trends analyze

transformation reduction customers in the cement industry the advantages and

The Ecological and Environmental Protection Leading Group chaired by the Company's Chairman and President has full responsibility for trends are facing both transformational pressures and disadvantages of emerging

the Company's ecological civilization initiatives. It organizes the implementation of all tasks related to carbon peaking and carbon neutrality restrictive policies which is forcing the technologies introduced by

maintaining constant attention to the risks and opportunities presented by climate change throughout the processes of strategy Company to accelerate R&D in new low-carbon new market entrants and

formulation corporate development and project execution. Under the Company's leadership affiliated enterprises have established their technologies. assess substitution risks to

own leading groups to address climate change issues through cross-disciplinary collaboration. Emerging low- New market entrants intensify technological Mid-term existing products and

carbon competition increasing competitive pressure technologies. Implement

Climate Response Strategy technologies on the Company. environmental technologies including waste heat recovery

Shortage of * Water scarcity leads to difficulties in water Mid-term power generation

raw materials sourcing and increases corporate water comprehensive energy-saving

Sinoma International integrates climate change as a key topic into its sustainable development strategy integrating climate-related and energy costs. and consumption-reduction

considerations into all aspects of the Company's decision-making production operations and daily management. This integration aims to * Rising fuel prices lead to increased project retrofits and the adoption of

contribute to mitigating global warming and to support the timely achievement of the goals of peaking CO2 emissions before 2030 and costs and reduced profitability. clean energy sources.achieving carbon neutrality before 2060. The impact of climate change on the Company covers multiple dimensions including the evolution

of policies and regulations the application of emerging technologies and structural shifts in market demand. Based on the potential impact Technology Increasingly The Company needs to increase investment in Short-term * Accelerate the development

and likelihood of occurrence the Company classifies climate risks through a classification system. Concurrently it formulates precisely stringent clean technologies leading to rising operating of green factories and green

targeted control measures to ensure the relevance and effectiveness of its risk response. environmental costs. mines and enhance R&D and standards application of green and

5 clean technologies.

In the climate risk matrix different-colored squares represent different levels

A of climate risks and different control methods are adopted for different Physical risks

4 E levels of climate risks: Acute Extreme Strong winds high temperatures extreme cold Long-term * Conduct comprehensive

B C weather events and geological subsidence all affect the project analysis of typical cases in

D F schedule construction safety and the responding to extreme

3

G H For red zones： completed cement production lines. weather in recent years and develop contingency plans.Ensure avoiding and mitigating risks and prioritize the

2 implementation of all preventive measures. Chronic Increasing * Increased safety hazards in the employee Long-term * Continuously monitor frequency of working environment necessitating greater relevant climate change

For orange zones： heatwaves and investment in employee health and safety. trends and adjust work

1 cold spells arrangements promptly to Rigorously control all risks and develop supplementary * Declining stability of energy supply

1 2 3 4 5 necessitates optimization of the energy mitigate occupational safety control measures.

Possibility structure.hazards.A: Stricter regulatory compliance E: Shortage of raw materials and energy For green zones： * Mismatch between vegetation

requirements F:Increasingly stringent environmental selection/maintenance for mines and local

B:Industry transformation trends standards Maintain close monitoring without introducing additional climate conditions in mining areas

C: Emerging low-carbon technologies G:Extreme weather events control measures.D: Price fluctuations of the carbon market H: Increasing frequency of heatwaves increases operational costs.and cold spells

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Degree of impact2025 Sustainability Report Embracing the Mission of the Times and Jointly Pursuing Global Development with Responsibility

Climate Change-Related Opportunities

Accelerate the transformation of the energy structure for production and daily life

Opportunity Climate Change-Related Potential Impact on the Company Timeframe

Type Opportunities Actively promote the application of oil-to-electricity conversion technology actively encourage and

support qualified units to strengthen the construction of photovoltaic power generation and wind

Products and Innovation and technology R&D Respond to market demand by developing renewable Mid-term power and continuously improve the energy structure and enhance energy utilization efficiency.services energy carbon capture and other technologies to enhance Proactively explore energy storage technologies to address the intermittency of renewable energy and

corporate adaptability and competitiveness ensure the stability of energy supply.Increase low-emission goods and Provide low-carbon products or services to the market to Mid-term

services increase revenue

Energy source Adopt low-emission or renewable Reduce operating costs. Long-term Improve the energy conservation and emission reduction incentive mechanism

energy Leveraging green service initiatives to increase operational

income Establish and improve the incentive mechanism for energy conservation and emission reduction and

give commendation and rewards to the departments and individuals who have made outstanding

contributions in energy conservation and emission reduction efforts so as to stimulate the

enthusiasm and initiative of employees. Additionally strengthen the evaluation and supervision of the

implementation effects of energy conservation and emission reduction measures to ensure the

effective implementation of all measures and promptly rectify any non-compliant situations.Increase investment in technological research and development to enhance the carbon-

reduction benefits of the industry

Further strengthen cooperation with universities and research institutions to develop and

Dual Carbon Action Plan manufacture low-carbon equipment promote the application of low-carbon and ultra-low emission

technologies in cement production processes develop carbon capture and utilization technologies

In accordance with the "Guidance on Promoting High-Quality Development of Central Enterprises and Advancing Carbon Peak and focus on breakthroughs in energy-saving and carbon-reduction technologies in three domains:

Carbon Neutrality Work" of the State-owned Assets Supervision and Administration Commission (SASAC) and the "Carbon Peak and "alternative fuels" "clay calcination" and "oxy-fuel combustion" build green factories and provide

Carbon Neutrality Implementation Plan" of China National Building Material Co. Ltd. the Company has formulated the Carbon global clients with high-quality green and low-carbon engineering services to accelerate their

Peak and Carbon Neutrality Implementation Plan of Sinoma International Engineering Co. Ltd. This document defines the timeline decarbonization process.and roadmap for achieving carbon peak and carbon neutrality playing a leading and exemplary role in fulfilling national and group-

level dual carbon goals.Strengthen policy research and international cooperation

Closely monitor changes in domestic and international policies and regulations especially policy

dynamics such as the Carbon Border Adjustment Mechanism (CBAM) in developed countries and

Establish and improve the carbon management system regions like the European Union (EU). Enhance research and interpretation of policies prepare

Enhance data statistics on energy consumption and carbon emissions actively participate in low- response strategies in advance reasonably adjust corporate development strategies and production

carbon product certification and improve the transparency of the Company's product carbon models and reduce the impact of policy risks on the enterprise. Actively participate in international

footprint assessment. cooperation projects strengthen technical exchanges and cooperation with international peers

introduce advanced low-carbon technologies and management experience and promote

international development.Promote the coordinated development of the industrial chain

Accelerate the electrification of mining equipment and facilities Strengthen communication and collaboration with upstream and downstream enterprises to jointly

Adhere to the strategies of large-scale specialized new energy and intelligent equipment and orderly build a green and low-carbon industrial chain. In the raw material procurement process prioritize

promote the optimization and efficient utilization of energy. Actively promote the electrification of environmentally friendly and low-carbon suppliers. In the product sales process guide customers to

new energy mining vehicles and non-road mobile machinery and conduct cost-benefit and carbon- adopt low-carbon usage and maintenance methods. Through industrial chain collaboration we

reduction analyses for the use of new energy vehicles. achieve resource sharing and complementary advantages jointly promoting the green development

of the entire industry.

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Climate Risk Management 2025 Targets Completion Future goals

Reduce the Company's carbon emission in Scope 1 Achieved Scope 1 and Scope 2 carbon emission intensity to

Sinoma International attaches great importance to climate risk management. Through the following processes it conducts the and Scope 2 by 2%; decrease energy consumption continue declining

identification and assessment of climate change-related risks and opportunities providing references for the Company's strategic per CNY 10000 revenue by 2%.planning and business development.

100% of the Company's manufacturing enterprises Achieved -

and newly invested production/operation projects

have extreme weather contingency plans.The proportion of R&D investment in green and low- Achieved R&D investment in green and low-carbon technologies

Establish a risk database incorporating climate risks and opportunities based on business/product characteristics carbon technologies to output value reaches 3.66%. as a percentage of output value to exceed 3.7%

identifying climate change impacts on corporate finance production assets the supply chain and personnel.Complete the Major Risk Assessment Results Form to identify and evaluate climate-related risks based on impact and

likelihood analyzing their risk levels. Improving People's

Livelihood and Well-being

Develop a risk heatmap using impact severity and likelihood as axes based on assessment results defining

corresponding control measures for different coordinate zones. Sinoma International establishes a global vision demonstrates the responsibility of a central state-owned enterprise gives back to

society through concrete actions and engages in public welfare and charitable activities actively supports rural revitalization

continuously provides overseas assistance and contributes to building a community with a shared future for mankind.Fill out the Major Risk Control Form clearly define the main and auxiliary responsible departments for major risks

formulate risk management strategies and solutions and submit them to the responsible person for approval.Enhancing Economic Contributions

While pursuing its own stable operation and development Sinoma International remains committed to giving back to society by

continuously improving investment efficiency consolidating cost-competitive advantages enhancing overall economic benefits

Climate-related metrics and targets and striving to achieve a balance between economic growth and social responsibility.The Company strictly complies with laws and regulations in all countries where it operates and actively fulfills tax obligations.Furthermore in accordance with the tax policies issued by the Ministry of Finance of the People's Republic of China and the State

Taxation Administration the Company pledges to conduct transfer pricing based on the principle of fair transactions refraining

Long-term target from transferring the created value to low-tax jurisdictions. It also commits not to use confidential jurisdictions or so-called "tax

havens" for tax avoidance.By 2030

The Company will be able to provide clients with In 2025

"zero-emission mining and zero-emission cement"

solutions

The Company paid CNY 2.236 billion in taxes contributing to the economic development of

Note: "Zero-emission" refers to zero purchased electricity zero fossil fuels zero primary resources zero carbon emissions and zero waste its host countries and regions.discharge.

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Commitment to Public Welfare and Charity Sinoma International attaches great high importance to reputation and operational risk management in public welfare activities establishing a systematic full-process risk prevention and control mechanism. Based on prudent assessments of the political and

social environment of the countries and regions where its projects are located the Company proactively identifies potential

Sinoma International actively participates in social welfare initiatives contributes to the Group's "Shanjian Charity" fund external risks. When organizing employee participation in volunteer activities the Company always prioritizes personnel safety

encourages employee involvement in volunteer activities and regularly carries out charitable donations disaster relief emergency formulating and strictly implementing safety plans. Regarding the critical steps in the donation process a dedicated supervision

assistance and project support giving back to society through tangible actions. mechanism has been established to ensure that the fund flow is transparent compliant and traceable. Through multi-layered

safeguards and focused controls we are committed to achieving secure transparent and efficient charitable activities continuously

upholding the Company's responsible corporate image.Case: Active participation in earthquake relief

to fulfill social responsibility In 2025

In March 2025 a 7.9-magnitude earthquake struck Myanmar causing significant casualties and property damage. The Myanmar

subsidiary of Sinoma Handan immediately organized engineering machinery vehicles to assist rescue operations and donated relief

supplies including drinking water and food to the Yangon Disaster Management Department helping the people of Myanmar

overcome the crisis and demonstrating corporate responsibility and commitment.The Company has donated Participating in or supporting

CNY 5.0832 million 10 activities protecting the rights of women

to the "Shanjian Charity" Fund and various children or persons with disabilities

social organizations

With Contributing

1737 employee volunteers 6514 service hours

Handan Sinoma Employees Assisting Rescue Efforts in Myanmar

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Boosting Rural Revitalization Case: "Shanjian" colorful classroom: "Tiny Light" illuminates childhood

Sinoma International conscientiously implements the national Implementation Measures for the Rural Revitalization Responsibility The Youth League Committee of Sinoma International actively responded to the Group's call by organizing 10 young volunteers

System fully complies with the Group's work requirements for contributing to rural revitalization and has established a dedicated from its headquarters Chengdu Design & Research Institute of Building Materials Industry Co. Ltd. and Sinoma Mining

task force for rural revitalization assistance. Focusing on key areas such as "rural revitalization industrial development project Construction Co. Ltd. to carry out the "Shanjian" Colorful Classroom activity at Hongguang School in Yongshan County Yunnan

construction social welfare and consumption-driven assistance" the Company supports its paired assistance county Yongshan Province. The volunteer team focusing on the growth needs of left-behind children and leveraging the Company's characteristics

County in Yunnan Province in consolidating and expanding the achievements of poverty alleviation while effectively linking them meticulously designed a series of courses covering areas such as growth guidance engineering science popularization intangible

with rural revitalization. In doing so it earnestly fulfills its social responsibility as a central state-owned enterprise. cultural heritage preservation safety protection and scientific enlightenment.In the aspect of growth guidance In the aspect of intangible cultural heritage preservation

By 2025 The team carried out the "Tiny Light Project" for two Children experienced the charming craftsmanship of traditional

consecutive years taking the first ID photos and growth skills through hands-on activities such as sugar painting ancient

record photos for the children. This initiative established tie-dyeing and bamboo weaving.a precious visual archive for left-behind children and

Total investment in rural revitalization initiatives has reached uses photography to bridge the distance with their

5.013 faraway families. CNY million

In the aspect of engineering science outreach In the aspect of scientific enlightenment

Volunteers used the example of the El-Ferdan Double- The volunteers conducted safety education covering

Wing Swing Railway Bridge over the Suez Canal in Egypt transportation food and psychology through interactive games

Sinoma International's assistance record a project constructed by the Company to explain the and experiments. They guided the children in assembling airplane

construction story and technical principles behind this models and completing small scientific experiments like "invisible

world-class megaproject vividly conveying the spirit of ink" planting seeds of exploration and innovation in their young

craftsmanship and Chinese ingenuity. minds.Relying on the "Hebao Dan" platform the Company conducted targeted procurement of specialty agricultural products

from Yongshan County Yunnan Province with a total procurement value worthing CNY 194000 thereby supporting Through diverse and enriching courses along with warm and attentive companionship this activity brought knowledge broadened

local farmers' income growth through market-oriented means. horizons and delivered care to children in the mountainous region forging deep bonds of friendship with them.The Equipment Group continues its paired assistance to Caiying Village Funan County Anhui Province by dispatching

a First Secretary to the village as a resident liaison officer. Through its paired assistance program in Caiying Village

Funan County Anhui Province the Company procured agricultural products worth CNY 210000 and distributed

educational grants totaling CNY 13000 to 13 local students who were admitted to universities.The Company continuously carried out the "Golden Autumn Financial Aid" and "Fulfilling Tiny Wishes" activities. In 2024

and 2025 it provided financial support to 31 newly admitted university students fulfilled the "tiny wishes" of 56

students in need and delivered caring gifts to 60 left-behind children.In collaboration with universities the Company launched the "Xingzhi School" initiative to provide educational care

services.Sinoma International Engages in "Shanjian" Colorful Classroom Initiative in Yongshan County

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Advancing overseas responsibility fulfillment Case: Cultivating in the desert to bridge cultural divides implementing green practices to deepen local bonds

Sinoma International continuously promotes regional coordinated development implements the Belt and Road Initiative and In fulfillment of its corporate social responsibility South Africa Regional Company of CBMI Construction launched a public welfare

adheres to the development principle of "extensive consultation joint contribution and shared benefits." The Company remains donation initiative in the communities surrounding the SAE Project. Following preliminary research that revealed a shortage of

committed to "contributing to local economic development cooperating amicably with local enterprises and serving the local teaching and sports resources in local schools the company strategically provided schoolbags stationery footballs skipping

people" fostering the global integration of technology talent and culture. It supports the economic and social development of ropes and other supplies to tangibly improve students' conditions for learning and physical exercise. This initiative not only

project locations and works jointly to build a community with a shared future for mankind. delivered care and warmth to children in the community but also deepened the amicable relationship between the enterprise and

the community. Looking ahead the company will continue to promote the high-quality development of its projects and actively

explore diverse forms of public welfare to achieve mutually beneficial win-win development with the local community.Wu Shuang of CBMI Construction was honored with the title of

"Exemplar Individual in Building the China-Kenya

Community with a Shared Future"

by the Chinese Embassy in Kenya

Deepening engagement with the community

Sinoma International regularly communicates with local communities in the areas where it operates gaining an in-depth

understanding of their needs. By precisely implementing targeted measures to address local development challenges the Company

helps improve the quality of life for community residents. The overseas subsidiary of CDI actively fostered positive interactions with

local officials and residents by establishing "Company Open Day" events. Additionally it formulated relevant policies including:

prioritizing local employment providing skills training and improving community employment rates as well as collaborating with

local suppliers to reduce logistics costs while supporting the local economy thereby effectively enhancing in-depth cooperation

with local communities.Public Welfare Donation Initiative for Communities of the SAE Project

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Promoting cultural integration Fostering a fertile environment for talents

Sinoma International fully supports local cultural development and is dedicated to promoting Chinese culture and facilitating While providing high-quality engineering and technical services to its clients Sinoma International places great emphasis on the

international cultural exchanges. For years CDI has consistently respected local customs and dietary culture organically integrating development of human resources in its project locations. It is committed to creating employment opportunities in these areas and

corporate values with local traditions. During major traditional local festivals such as Eid al-Adha and Eid al-Fitr the Company promoting the long-term local economic development.carried out employee care activities for local employees and set up Muslim canteens in all project camps thereby strengthening

Egyptian employees' sense of belonging and identification with the Company.Case: Advancing technological and cultural integration to co-build a

talent ecosystem for the Belt and Road Initiative

Case: Exchanging traditional culture weaving

bonds of friendship The 6th International Training Course on Large-Scale Modern Cement Production Technology organized by the Equipment Group

was successfully concluded in Tianjin. A total of 19 trainees from six countries including Pakistan and Myanmar completed the

In 2025 CDI's Egypt Branch and Saudi Arabia Branch hosted the "Resource Efficiency Day" open event themed "Innovation- program. The international training program had been successfully held for five sessions since 2016. It aims to promote scientific

Driven · Green Empowerment." Over 200 local employees and family members attended the event. Through corporate videos on- technological and cultural exchanges along the Belt and Road Initiative and to impart advanced and applicable technologies in the

site presentations and facility tours they gained an in-depth understanding of the Company's practical applications and innovative cement industry. Through continuous technical transmission and experience sharing it strives to deepen the integration of

achievements in intelligent manufacturing and environmental protection. They also gained a profound appreciation for the unique technology talent and culture in the global cement industry promote the improvement of technological levels and the cultivation

charm of Chinese culture through participation in activities featuring traditional Chinese cultural elements and engaging in of talent in cement industries of developing countries and effectively support the sustainable development of the local economies

interactive games. of project sites. It contributes professional expertise to the building of a community with a shared future for mankind.Case: Celebrating festivals together to promote The Company encourages local employment addressing regional job needs

cultural integration

The Nigerian subsidiary of Sinoma (Suzhou) Construction Co. Ltd. specially organized a cultural experience session at the "Chinese

Workshop" celebrating the festival together through the unique approach of cultural integration. Under the guidance of Using more than The proportion of local overseas employees

instructors Chinese and international employees crafted traditional sachets. The ingenious combination of silk fabric mugwort 22000 (including subcontractors) across all tiers exceeds spices and Chinese knotting techniques allowed participants to immerse themselves in the charm of Chinese culture. These

handcrafted sachets brimming with cultural characteristics became heartfelt tokens of cross-cultural exchange. Local employees local workers employed annually 63%

expressed that sachet-making was not only an artistic creation but also helped them understand the wisdom of Chinese people

conveying blessings through every stitch.Case: Implementing local capacity building to establish talent

support for overseas development

The overseas subsidiaries of CDI continue to deepen their localized operations by actively organizing and conducting a series of

training programs focused on enhancing job skills and providing pre-job training for new employees. In 2025 these initiatives

covered approximately 200 local employees across various projects and departments. The training system encompasses corporate

culture safety production legal regulations and occupational health. Through flexible and diverse formats it effectively improves

local employees' professional skills and comprehensive competencies. This initiative not only creates clear career progression

paths for local staff but also strengthens talent stability and sustainable development capabilities for the Company's overseas

projects achieving mutually beneficial development for both the enterprise and local communities.

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Outlook

Time flows ceaselessly like a river and our journey unfolds with grandeur like a rainbow.

2026 marks the inaugural year of the 15th Five-Year Plan and a critical milestone in our pursuit of a "World-Class Service Provider in

the Materials Industry." Standing at this new starting point we embrace our renewed mission with proactive actions making the

"1324" Sustainable Development Strategy a core practice integrated into our core operations. In the practice of serving the national

strategy and global sustainability we will continue to write a new chapter of high-quality development.Guided by the principle of "One Core Three Values Two Main Lines and Four Goals" we integrate the essence of sustainable

development into the very fabric of our corporate identity. Internally we continuously strengthen the foundation for sustainable

development. With modernized governance as our cornerstone we ensure compliance and integrity become conscious behaviors

in our actions. We foster an environment where employee growth resonates in harmony with corporate development and we

integrate clean production and green operations throughout every project and every process. Externally we are fully committed to

serving global sustainable development. We empower our clients' transformation through green and low-carbon technologies and

digital intelligent solutions. We unite our partners by fostering a transparent and sustainable supply chain ecosystem. We

contribute our professional expertise to the fight against climate change and fulfill our responsibilities as a central enterprise in the

joint pursuit of the Belt and Road Initiative.Our initial aspiration remains firm and our mission is always on our shoulders. On the new canvas of 2026 we will steadfastly

uphold our corporate mission of "Promoting green and intelligent development and serve a better world." On the journey to

become a world-class service provider we will progress steadily and surely contributing even greater wisdom and strength to the

green and sustainable development of the global cement industry.

99 1002025 Sustainability Report

ESG key performance Key performance indicators Unit 2025

Comprehensive utilization rate of self-produced non-hazardous solid waste % 70.98

Total amount of incoming solid waste consumption and disposal tons 1074617.18

Environmental data Industrial waste tons 980500.00

Total amount of

Key performance indicators Unit 2025 incoming solid Household waste tons 0

waste

Total emission of nitrogen oxides (NOx) tons 0.24 consumption and Hazardous waste tons 26147.45

disposal by type2

3

Total emission of sulphur dioxide (SO ) tons 0.06 Other tons 94117.18 2

Emissions of industrial particulate matter tons 3.76 Total volume of timber purchased by the company 10000 m3 1.64

Timber

Total emission of Volatile Organic Compounds (VOCs) tons 39.23 certification Among them: amount of certified 10000 m3 0.14

Total greenhouse gas emissions1 tons of CO e 770300.66 Among them: amount of non-certified 10000 m3 1.51 2

Direct greenhouse gas emissions (Scope 1) tons of CO e 611425.03 Timber 10000 m3 2.85 2

4

Indirect greenhouse gas emissions (Scope 2) tons of CO e 158875.63 The proportion of recycled wood % 9.83 2

Greenhouse gas emissions from engineering services tons of CO e 91489.37 Steel 10000 tons 40.47 2

5

Greenhouse gas emissions from equipment manufacturing operations tons of CO2e 38603.52 The proportion of recycled steel % 3.59

Greenhouse gas emissions from operation and maintenance services tons of CO2e 625762.36 Concrete 10000 m3 Total amount of 150.88

materials used in

Greenhouse gas emissions from other operations tons of CO2e 14445.40 the construction The proportion of recycled concrete % 6.50

process

Greenhouse gas emission intensity tons of CO2e/million yuan (revenue) 15.53 Aggregate 10000 m3 51.74

Amount of self-produced hazardous solid waste tons 5411.00 The proportion of recycled aggregate % 7.40

Intensity of self-produced hazardous solid waste tons of CO2e/million yuan (revenue) 0.11 Asphalt 10000 tons 1.54

Amount of self-produced non-hazardous solid waste tons 4903.99 The proportion of recycled asphalt % 26.04

Intensity of self-produced non-hazardous solid waste tons of CO2e/million yuan (revenue) 0.10 Cement 10000 tons 46.89

Comprehensive utilization amount of self-produced non-hazardous solid

waste tons 3483.91

Among them: comprehensive utilization amount in previous year tons 3.00

2 The Company's method for treating and disposing of external solid waste involves the production of alternative fuel products and co-processing in

cement kilns.

3 Refer to fuels derived from industrial waste (e.g. discarded textiles plastics industrial residues) municipal waste and agricultural/forestry waste that

possess calorific value (combustibility) falling outside the aforementioned three waste categories. These fuels are widely used in cement kilns and

thermal power plants (including biomass power plants) to replace fossil fuels (coal) thereby reducing carbon emissions and fossil energy

consumption.

1 This year the statistical scope for the mining sector has been adjusted and the greenhouse gas emissions from crushing and maintenance services 4 "Recycled wood" includes wooden packaging materials recovered from equipment transportation and reused as well as wooden formwork and

are no longer included in the statistics. The calculation of greenhouse gas data depending on the industry of the company's subsidiaries refers to a timber reused during construction processes.series of guidelines such as the Guidelines for GHG Emission Accounting and Reporting Methods for Industrial Enterprises in Other Sectors issued by the

National Development and Reform Commission as well as the relevant conversion factors provided in the Notice on Completing GHG Emission 5 "Recycled steel" refers to reused steel structures fabricated on-site scrap materials from non-standard equipment and components steel packaging

Reporting and Verification for Enterprises in Certain Key Industries (2023-2025). All measurements are expressed in tons of CO? equivalent. materials from equipment transportation and recycled steel scaffolding and formwork used during construction.

101 1022025 Sustainability Report

Key performance indicators Unit 2025 Key performance indicators Unit 2025

Total amount of The proportion of recycled cement

6 % 9.43 Consumption of non-renewable materials tons 189085.86

materials used in

the construction Other materials 10000 tons 5.20 Material consumption intensity tons/million yuan (revenue) 3.85

process The proportion of recycled other materials % 9.89 Amount of energy expenditures CNY 10000 105379.34

Direct energy consumption7 MW·h 2302342.81 Water withdrawal10 tons 1471924.79

Natural gas consumption MW·h 26250.36 Tap water tons 938058.49

Petrol consumption MW·h 20393.72 Groundwater tons 142313.10

Diesel consumption MW·h 2205371.21 Surface water tons 387837.00

Other energy consumption8 MW·h 50327.52 Other tons 3716.20

Indirect energy consumption MW·h 279227.97 Water withdrawal intensity tons/million yuan (revenue) 29.68

Purchased heat consumption MW·h 1708.08 Total amount of water discharged tons 567402.18

Electricity consumption MW·h 277519.89 Total water consumption tons 904522.61

Purchased electricity consumption MW·h 276959.57 Among them: total circulating water tons 219800.00

Purchased conventional grid electricity consumption MW·h 263291.11 Circulating water utilization rate % 24.30

Purchased green electricity consumption MW·h 13668.47 Amount of environmental investment CNY 10000 4941.34

Self-generated electricity consumption MW·h 560.32 Revenue from products with inherent

green attributes CNY 10000 119920.75

Self-generated wind electricity consumption MW·h 16.40

Among them: Revenue from Products

Equivalent to greenhouse gas emission reductions tons of CO2e 13.46 with various green certifications

Photovoltaic power generation consumption MW·h 543.92 Green product

including but not limited to "China

Low Carbon Product Certification" CNY 10000 5302.76

"Green Building Material Product

Equivalent to greenhouse gas emission reductions tons of CO2e 446.56 Certification" etc.Comprehensive energy consumption9 MW·h 2581570.79 Revenue from products that can

contribute to the greening of society CNY 10000 858928.32

Comprehensive energy consumption intensity MW·h/million yuan (revenue) 52.15

6 "Recycled concrete aggregates asphalt and cement" refers to these materials produced using recycled materials as substitutes for virgin raw

materials.

7 Calculations are performed according to the General Principles for Calculation of Comprehensive Energy Consumption (GB/T 2589-2020) standard.

8 The statistical scope for "other energy consumption" in the current year includes liquefied natural gas (LNG) and liquefied petroleum gas (LPG) while

the previous year's scope additionally included diesel and gasoline.

9 Energy consumption data includes all energy used by the Company's domestic and overseas operations. 10 Water resource consumption data includes all water usage from the Company's domestic and overseas operations.

103 1042025 Sustainability Report

Key performance indicators Unit 2025 Social data

Number of national green factories owned unit 2

Key performance indicators Unit 2025

Number of provincial green factories owned unit 4

Total number of employees person 15201

Number of national green factories constructed unit 9

Male employees person 12024

Number of provincial green factories constructed unit 5

Total number of employees Male employees in STEM work person 6918

Number of green factories of other levels constructed unit 1 by gender Female employees person 3177

Number of national green mines constructed unit 48 Female employees in STEM work person 1375

Number of provincial green mines constructed unit 144

Total number of employees Han employees person 13230

Number of green mines of other levels constructed unit 1 by ethnic group Minority employees person 1971

Number of buildings constructed/managed/owned by the Company unit 440 Senior management employees person 176

Number of green buildings constructed/managed/owned by the Company unit 12 Female employees person 12

Area of all manufacturing and operating units m2 2447441.28 Female employees in operational positions person 4

Area for which biodiversity risk assessments have been conducted m2 103484.00 Male employees person 164

Male employees in operational positions person 98

Number of sites for all production operations (i.e. factories mines project sites etc.) unit 149

Minority employees person 5

Area for which biodiversity risk assessments have been conducted unit 6

Total number of employees Middle-level employees person 1535

Number of ISO14001 certifications unit 44 by job level

Female employees person 268

Number of ISO50001 certifications unit 7

Female employees in operational positions person 50

Number of stock of enterprises with climate risk

response/adaptation plans (e.g. extreme weather contingency unit 18 Male employees person 1267

plans) in place

Male employees in operational positions person 972

Climate change Annual financial impact of risks CNY 10000 214.08 Minority employees person 57

risks and

opportunities Annual expenditures arising from risk response measures CNY 10000 963.49 General employees person 13491

Annual costs of capturing climate change opportunities CNY 10000 20942.16

Total number of employees Long-term employees person 13387

Annual revenue from climate change opportunities CNY 10000 120157.15 by type of employment Short-term employees person 1814

105 1062025 Sustainability Report

Key performance indicators Unit 2025 Key performance indicators Unit 2025

Under 30 years old person 3288 Mainland China % 5.18

Total number of employees Voluntary turnover rate by

by age 30 to 50 years old person 8673 region

Region of Hong Kong Macao and Taiwan % 0

Over 50 years old person 3240 Overseas % 0.51

Mainland China person 12077 Number of newly hired employees person 761

Total number of employees

by region Region of Hong Kong Macao and Taiwan person 0 Number of newly hired

Male person 629

employees by gender

Overseas person 3124 Female person 132

Male % 5.02 Under 30 years old person 578

Employee turnover rate by

gender Number of newly hired

Female % 4.34 employees by age 30 to 50 years old person 178

Under 30 years old % 6.75 Over 50 years old person 5

Employee turnover rate by

age 30 to 50 years old % 2.96

Senior employees person 2

Number of newly hired

employees by job lever Middle-level employees person 5 Over 50 years old % 8.12

General employees person 754

Mainland China % 6.00

Employee turnover rate by Number of newly hired Han person 744

region Region of Hong Kong Macao and Taiwan % 0 employees by ethnic group Minority person 17

Overseas % 0.51

Number of internal transfers or internal applications person 1159

Senior employees % 3.41

Employee turnover rate by Rate of internal transfers or internal applications % 60.36

job level Middle-level employees % 1.69

Received complaints on violations of employees' legitimate rights and interests case 0

General employees % 5.26

Received complaints on discrimination against applicants and employees case 0

Senior employees % 2.27

Voluntary turnover rate by Number of visits to support special employees and assist employees in difficulty person-times 797

job level Middle-level employees % 1.30

Number of employees who were helped to send their children in difficulty to school or who

General employees % 4.58 were rewarded for sending their children to school

person-times 15

Male % 4.22 Number of visits to help critically ill employees person-times 79

Voluntary turnover rate by

gender

Female % 4.22 Total expenditure on condolences to special employees and assistance to employees in

difficulty CNY 10.000 52.96

Under 30 years old % 5.72

Total expenditure on helping children of employees in difficulty to attend school or

Voluntary turnover rate by 30 to 50 years old % 2.33 rewarding employees' children for attending school

CNY 10.000 0.43

age

Over 50 years old % 7.78 Total expenditure on helping critically ill employees CNY 10.000 26.30

107 1082025 Sustainability Report

Key performance indicators Unit 2025 Key performance indicators Unit 2025

Number of employee activities were organized and participated in times 598 Lost Time Injury Frequency Rate (LTIFR) for millions of hours of employees - 0

Number of participation in various events organized by relevant industry associations (at

provincial level or above) times 48 Number of working days lost due to work-related injuries day 0

Number of employees participated in various activities person-times 38946 Lost Time Injury Frequency Rate (LTIFR) for millions of hours of contractors employees - 0

Total number of employees participated in satisfaction survey person 8866

Person-times of employees participated in occupational health and safety training person-times 607143

Percentage of total number of employees % 58.33

Number of safety environmental and health inspections conducted times 6492

Male % 98.52

Percentage of satification by

gender

Female % 98.20 Number of hidden dangers investigation unit 62702

Under 30 years old % 98.61 Among them: number of hidden dangers for which rectification has been completed unit 62680

Percentage of satification by age 30 to 50 years old % 98.83

Rectification rate of hidden danger investigation % 99.96

Over 50 years old % 98.27

Number of emergency drills fire drills and other exercises conducted person-times 50861

Percentage of satification by Han % 98.23

ethnic group Minority % 98.28 Amount of safety and health related expenditure CNY 10000 56620.23

Senior employees % 100.00 Number of factories certified to ISO 45001 occupational health and safety management

system unit 44

Percentage of satification by job

level Middle-level employees % 98.82

Male % 96.34

General employees % 98.33 Percentage of employees

participated in all types of training

Number of employees for whom the Group contributes an enterprise annuity person 9430 by age Female % 81.33

Number of employees for whom the Group pays supplementary medical insurance and Under 30 years old % 93.52

other types of insurance other than five insurances person 10847

Percentage of employees

Number of employees joining the labor union person 13341 participated in all types of training 30 to 50 years old % 95.84

by age

Percentage of employees joining the labor union % 87.76 Over 50 years old % 85.83

Number of employees signing collective agreements person 6940

Percentage of employees Han % 94.88

Percentage of employees signing collective agreements % 45.65 participated in all types of training

by ethnic group Minority % 81.94

Number of employee representatives person 1172

Percentage of employee representatives % 7.71 Senior employees % 98.30

Percentage of employees

Work-related fatalities person 0 participated in all types of training Middle-level employees % 98.96

by job level

Death rate per thousand ‰ 0

General employees % 92.48

Number of zero-fatality projects % 100

109 1102025 Sustainability Report

Key performance indicators Unit 2025 Key performance indicators Unit 2025

Senior % 76.70 Total unit 9204

Percentage of employees participated

in safety and environmental training Middle-level % 59.09 Number of suppliers who have established Mainland China unit 9095

by level long-term cooperation with the Company

General % 62.40 Region of Hong Kong Macao and Taiwan unit 24

Senior % 65.34 Overseas unit 85

Percentage of employees participated

in skills-based business training by Middle-level % 68.47 The costs of products or service procured from suppliers with whom the Company has

established long-term cooperation CNY 10000 3219157.93 level

General % 77.32

Total unit 7428

Senior % 100.00 Number of suppliers that have been Mainland China unit 7321

Percentage of employees participated screened and controlled for environmental

in management training (including Middle-level % 89.71 and social risks by the Company Region of Hong Kong Macao and Taiwan unit 23

compliance training) by level

General % 50.19 Overseas unit 84

Total hours of training by person-time hour 1462621.60 The costs of suppliers screened and controlled for environmental and social risks by the

Company CNY 10000 2690141.26

Total hours of safety and environmental training hour 550453.64

Total hours of skills-based business training hour 652928.62 Among the suppliers that have been

Total unit 14

screened for environmental and social risks

Total hours of management training hour 259239.34 and controlled for long-term cooperation

Number of suppliers with whom corrective

by the Company the number of suppliers measures/improvement plans have been unit 0

assessed to have significant negative agreed upon

Male hour 102.46 impacts

Average hours of training by gender Number of suppliers excluded unit 14

Female hour 106.69

Number of suppliers participating in Total unit 3413

Under 30 years old hour 102.56 supplier training and capacity

enhancement among suppliers that have Number of suppliers screened and

Average hours of training by age 30 to 50 years old hour 102.20 established long-term cooperation with the controlled for environmental and social unit 2261

Company risks by the Company

Over 50 years old hour 107.07

Number of ESG training sessions for suppliers or ESG training exchange sessions with

suppliers times 800 Han hour 104.59

Average hours of training by ethnic

group

Minority hour 92.66 Number of suppliers certified by systems such as quality occupational health and safety

environment or energy management unit 7562

Senior hour 141.16 Total unit 2856

Average hours of training by level Middle-level hour 104.32 Number of all suppliers not in long-term

co-operation Number of suppliers screened and controlled for environmental and social unit 2410

General hour 102.58 risks by the Company

Training hours per capita (all types of training) hour 103.23 Percentage of products subject to recall for safety and health reasons % 0

Total training cost CNY 14964825 Litigation cases involving the safety and health of products and services case 0

Number of cases involving suspected child labor and forced labor case 0 Totaling complaints about products and services case 0

111 1122025 Sustainability Report

Key performance indicators Unit 2025 Key performance indicators Unit 2025

Number of complaints properly responded to and dealt with case 0 Number of cases in which employees violated the Group's code of conduct (Customer

privacy data) case 0

Number of cases of suspected infringement of intellectual property rights by products and

services case 0 Number of cases in which employees violated the Group's code of conduct (Conflict of

interest) case 0

Number of complaints due to disclosure of customer information case 0

Number of cases in which employees violated the Group's code of conduct (Money

Total number of clients unit 3663 laundering or insider trading) case 0

Number of clients participating in satisfaction surveys unit 2831 Amount of taxes paid CNY 10000 223616.47

Number of clients whose survey results were satisfactory unit 2796 Amount of public charity investment 24(including material donations) CNY 10000 508.32

Percentage of clients whose survey results were satisfactory % 77.29 Donations to targeted support areas（Rural revitalization category） CNY 10000 501.30

Percentage of customer satisfaction % 98.76 Other CNY 10000 7.02

Number of annual patent applications case 428 Number of support projects unit 1

Number of invention patents case 279

Number of special scholarship programs established unit 1

Number of annual authorized patents case 330

Number of institutions involved in scholarships unit 6

Number of invention patents case 190

Total scholarships CNY 10000 15

Cumulative number of valid patents case 3159

Number of students receiving scholarships person 60

Number of invention patents case 1065

Number of entrepreneurship training bases unit 9

Cumulative number of successful software copyright registrations case 952

Availability of internships for current students unit 56

R&D investment CNY million 1815.59

Number of established volunteer organizations or groups unit 8

Percentage of R&D investment in operatin revenue % 3.66

Number of volunteers among employees person 1737

Number of R&D staff person 3687

Number of hours of volunteer activities hour 6514

Number of standards prepared or revised under the auspices of and with the participation of unit 13

Amount of corporate support for volunteer activities CNY 10000 2.37

Number of anti-corruption training sessions held and organized times 331

Number of activities involving or supporting the protection of the rights and interests of

Number of directors attending anti-commercial bribery and anti-corruption trainings person-times 437 women children or persons with disabilities times 10

Number of employees attending anti-commercial bribery and anti-corruption training

(excluding directors) person-times 29091

Coverage of directors in anti-corruption training % 100

Coverage of employees in anti-corruption training % 100

Number of cases in which employees violated the Group's code of conduct (Corruption or

bribery) case 0

Number of cases in which employees violated the Group's code of conduct (Discrimination or

harassment) case 0

113 1142025 Sustainability Report

Indicator indexes

Table of Content Sustainability Guidelines No. 14 for Reference Indicator Table of Content Sustainability Reporting Guidelines No. 14 for Reference Indicator

Reporting Standards Self-Regulation of System for the ESG Standards Self-Regulation of Listed System for the ESG

(GRI Standards) Listed Companies - Special Report of Listed (GRI Standards) Companies - Special Report of Listed

Sustainability Report Companies Controlled Sustainability Report Companies Controlled

(Trial) by Central Enterprises (Trial) by Central Enterprises

About this report GRI1-4 2-1 2-2 2-3 1-6 G4.1.2

Enhancing Service 4-2-414-2-424-3-43Leading

Quality GRI2-28 417-1

S2.1.2 S2.2.1-2.2.3 S2.3.1-

Chairman's speech / / / Industrial 4-3-444-3-474-3-48

2.3.4

Progress and

Enhancing

About Sinoma International GRI2-1 2-6 / / Overall Value

for Mutual Sustainable Supply GRI308-1 308-2414-1

Benefit Chain 4-3-444-3-454-3-46 E.5.4.5 S3.1.1 S3.2.1-3.2.3GRI2-9 2-14 2-16 1-92-112-122-18 414-2

Sustainable development management G1.3.3 E.5.1.1 G1.2.2 G3.2.2

2-222-293-13-23-35-1-515-1-53

The 14th Five-Year Green and low- GRI305-5 3-1-203-1-28 E3.2.2 E5.5.3 S4.4.1

Plan: A New carbon products

Special topic Chapter in Our / / /

Sustainable

Development Embracing the Mission of 2-112-122-142-15

the Times and

Strengthening Jointly Addressing Climate 2-162-172-182-19G1.1.1-G1.1.2 G1.2.2 G3.1.1- Pursuing Change GRI201-2 305-5

E3.1.2 E.3.2.1-3.2.2 E.3.4.1

Governance GRI2-9 2-10 2-12 5-1-51 3-1-203-1-213-1-22 E5.1.1 E5.3.1

Foundations 3.1.2 G3.2.1-3.2.2 Global

Development 3-1-233-1-27

Consolidating with

Governance Compliance and G2.1.1-2.1.2 G2.2.1-2.2.2 Responsibility

Foundations to Integrity in GRI2-27 205-1 205-2 5-2-545-2-555-2-56 G2.3.1-2.3.2 G5.1.1-5.1.3

Ensure Steady and Operations G5.2.1-5.2.3 Improving People's GRI203-1 203-2 207-1 S4.1.1 S4.2.1-4.2.2 S4.3.1-

Healthy Livelihood and Well- 4-1-384-1-394-1-40413-1 4.3.2 S4.4.2-4.4.4

Operations for beingGRI2-23 2-25 2-26 2-30

Development

Safeguarding 201-3 202-1 202-2 401-2

Employee Rights 401-3 403-1 403-2 403-3

S1.1.1 S1.1.3 S1.2.1-1.2.4

and Interests 403-4 403-5 403-6 403-7

4-4-494-4-50 S1.3.1-S1.3.4 S1.4.1-1.4.3

403-8 403-10 404-2 404-3 S1.5.1 S2.1.1

GRI2-7 2-8 201-1 205-3 206- E1.1.1-1.1.4 E1.2.1-1.2.3

1 301-1 301-2 301-3 302-1 E1.3.1-1.3.5 E1.4.1 E2.1.3-

405-1406-1

ESG key performance 302-2 302-3303-3 303-4 3-1-243-1-253-1-26 3-2-31 2.1.4 E2.2.2 E2.3.2-2.3.5 303-5 304-1 305-1 305-2 3-3-35 3-3-36 4-4-50 E3.1.3-3.1.4 E3.1.6 S1.1.2

3-2-29 3-2-30 E2.1.1-2.1.2 E2.2.1 E2.3.1- 305-4 305-7 401-1 403-9 S.1.4.3 S1.5.3 S.2.3.2 S3.1.2

GRI302-4 302-5 303-2 404-1 405-2 418-1 S.4.1.1

Pursuing Green and Clean Production 3-2-323-2-33

2.3.5 E4.1.1 E5.2.3 E5.4.1

Sustainability 304-2 304-3 E5.4.2 E5.4.3 E5.4.4 E5.4.6 Appendix5-1-52

through Green and E5.5.1 E5.6.1 E5.6.2

Eco-Friendly Indicator indexes GRI1-3 6-57 /

Development Circular Economy GRI303-1 306-1 306-2

Integration 3-3-34 3-3-37 E1.4.2 E5.2.1306-3 306-4 306-5

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115 1162025 Sustainability Report Conclusion

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