Tianshan Material Co. Ltd.If you have any comments or suggestions regarding this report
please feel free to contact us through the following channels:
Name：Ye Hong
Address：China National Building Materials Building No. 70
Shiboguan Road Pudong New Area Shanghai China Investor Relations "Window ofWeChat official Tianshan“ WeChatTel：021-68989175 account official account
Email：tsgfyehong@126.comContent
About the Report 2 Advancing Our Long-Term Advancing Green Embarking on a Shared
Glossary 3 Vision Development Across Multiple Journey of Social ValueFronts
Management’s Message 4 Overview of the Company 6 Embracing Green Actions 22 Advancing Modernized 53
Governance
Sustainable Development 7 Developing Circular Economy 24
Strategy Model Promoting Responsible 56Innovate Low-carbon Products 26 Procurement
ESG Governance Structure 7
Emission Compliance 30 Product and Service Quality 59
ESG Awards and Recognitions 8 Management Innovative R&D 61
Investor Communication 9 Biodiversity Protection 33 Responsible Business 63
ESG Performance Highlights 10 Operations
Double Materiality Assessment 12
Feature: Embracing Our Building a Stronghold for Appendix
Climate Responsibility Talent Development
Independent Assurance 66
Governance 15 Governance 41 Statement
ESG Key Performance 68
Strategy 15 Strategy 41
Indexes 70
Impact Risk and Opportunity 18 Impact Risk and Opportunity 41
Management Management
Metrics and Targets 19 Metrics and Targets 512025 Environmental Social and Governance (ESG) Report About the Report 2
About the Report
The Report is the fifth environmental social and governance report (hereinafter referred to as the “ESG Report”
or the “Report”) of Tianshan Material Co. Ltd. (hereinafter referred to as “Tianshan Material” the “Company”
or “we”). The Report provides an update on the Company’s sustainability efforts in 2025. In the Report we hope
to deliver the Company’s philosophy initiatives and performance on environmental social and governance issues
to enhance understanding and communication among our stakeholders.Scope of the Report Principles and BasisUnless otherwise specified the Report discloses information and data covering the Company’s environmental In the process of developing the Report we mainly refer to the “Self-Regulatory Guidelines No. 17 for Companiessocial and governance practices and achievements for the period from January 1 2025 to December 31 2025 Listed on Shenzhen Stock Exchange - Sustainability Report (For Trial Implementation)” “Shenzhen Stock(hereinafter referred to as “the year” the “reporting period” or 2025). Certain events mentioned in this Exchange Self-Regulatory Guidelines No. 3 - Preparation of Sustainability Reports” “Reference of ESGReport whether before or after the aforementioned period are included for the sake of comprehensiveness of Indicators System for ESG Reports of Listed Companies Controlled by Central Enterprises” the “GRI Sustainabilitycontext and detail in this Report. The Report defines the scope of the organization based on the principle of Reporting Standards” (GRI Standards) of the Global Sustainability Standards Board (GSSB) and the United
importance. Unless otherwise stated the materials covered in the Report are from Tianshan Material and all its Nations Sustainable Development Goals (SDGs) for 2030.subsidiaries.Review and Approval
Data Description The Report was confirmed by the Management and the Board’s ESG Committee and approved by the Board of the
Company on March 24 2026.The Report is actual feedback on Tianshan Material’s economic environmental and social responsibility practices
with all the information and data derived from the Company’s official documents statistical reports or the
summary and statistics of environmental social and governance practices of its subsidiaries. Unless otherwise
specified the monetary amounts mentioned in this Report are measured in RMB. Contact Information
If you have any comments or suggestions about the Report please More about the ESG of Tianshan
feel free to contact us through the following ways: Material can be obtained from the
Publication of the Report "Window of Tianshan" and the Name: Ye Hong Investor Relations WeChat official
account.The Report is published in English and Chinese respectively. In case of discrepancies between the Chinese version Address: China National Building Material No. 70 Expo Hall Road
and the English translation the Chinese version shall prevail. The Report is issued in both hard copy and Pudong New Area Shanghai
electronic form and the electronic version of the Report is available on the official website of Tianshan Material Tel: 021-68989175
Co. Ltd. (http://www.sinoma-tianshan.cn/) Shenzhen Stock Exchange (http://www.szse.cn) and Cninfo
(www.cninfo.com.cn). E-mail: tsgfyehong@126.com2025 Environmental Social and Governance (ESG) Report Glossary 3
Glossary
In the Report unless the context otherwise specifies the following terms shall hereinafter be interpreted as
follows:
No. Term Definition No. Term Definition
1 CNBMG China National Building Material Group Co. Ltd. 20 Menggu Company Sinoma Cement Menggu Ltd.
2 CNBM China National Building Material Company 21 Guilin Nanfang Guilin Nanfang Cement Co. Ltd.Limited
3 Tianshan Material the Company we Tianshan Material Co. Ltd. 22 CUCC Juxian China United Cement Juxian Corporation
4 Company Charter Articles of Association of Tianshan Material 23 CUCC Taishan China United Cement Taishan CorporationCo. Ltd.
24 Burqin Tianshan Burqin Tianshan Cement Co. Ltd.
5 CUCC China United Cement Corporation
6 South Cement South Cement Co. Ltd. 25 Sichuan Ebian Southwest Sichuan Ebian Southwest Cement Co. Ltd.
7 Xinjiang Cement Xinjiang Tianshan Cement Co. Ltd. 26 Sinoma Anhui Sinoma Anhui Cement Co. Ltd.
8 Sinoma Cement Sinoma Cement Ltd. 27 Quzhou Hushan Quzhou Hushan Concrete Co. Ltd.
9 Sanshi Material Zhejiang Sanshi South New Material Co. Ltd. 28 Yili Tianshan Yili Tianshan Cement Co. Ltd.
10 East China Material East China Materials Co. Ltd. 29 Fujian Sanming Southern Fujian Sanming Southern Cement Co. Ltd.
30 Huzhou Huaikan Nanfang Huzhou Huaikan Nanfang Cements Co. Ltd.
11 CUCC Qingzhou China United Cement Qingzhou Corporation
31 Huzhou Southern Mining Co. Ltd. Huzhou Southern Mining Co. Ltd.
12 Jiande South Jiande South Cement Co. Ltd.
32 Shanya Nanfang Shanya Nanfang Cement Co. Ltd.
13 Sichuan Golden Sichuan Golden Cement Co. Ltd.
14 Aksu Tianshan Aksu Tianshan Duolang Cement Co. Ltd. 33 Tianshan R&D Center
Tianshan Materials & Basic Building Materials
R&D Center
15 Tonglu Benteng Construction Tonglu Benteng Construction Materials 34 Securities Times Shenzhen Securities Times Press Co. Ltd.Materials Products Co. Ltd.
16 Hefei Southern Hefei Southern Cement Co. Ltd. 35 Huazheng Index Huazheng Index Information Service Co. Ltd.
17 Hami Tianshan Hami Tianshan Cement Co. Ltd. 36 SynTao Green Syn Tao Green Finance Co. Ltd.
18 Jinlei South Hunan Jinlei Nanfang Cement Co. Ltd. 36 The year the reporting period The period from 1 January 2025 to 31 December 2025
19 Midong Tianshan Xinjiang Midong Tianshan Cement Co. Ltd. 37 Guilin South Guilin South Cement Co. Ltd.2025 Environmental Social and Governance (ESG) Report Management’s Message 4
Management’s Message
In 2025 Tianshan Material embraced transformation with resilience and innovation defining our future through a processes. Besides Tianshan Material advanced the construction of laboratories certified under China National
foundation of sustainability and intelligent technologies. Facing profound macroeconomic adjustments and Accreditation Service for Conformity Assessment (CNAS) standards establishing a standardized system coveringstructural shifts in the industry landscape the Company remained steadfast in the mission of “materials create a the full lifecycle from R&D to quality inspection—ensuring the principle of “responsible resource use andbetter world” turning challenges into internal drivers for strengthening governance optimizing structure and environmental stewardship” is embedded in every operational process.enhancing competitiveness. Building on the continued implementation of its “three-pronged refinedmanagement” Tianshan Material advanced a multi-pronged strategy centered on high-end development Technological innovation led the transformation of manufacturing while digital and intelligent capabilities
digital intelligence green transformation and internationalization. The Company established a new sustainable enhanced product excellence. Anchored in market demand and customer orientation the Company provided
ecosystem across supply chain collaboration energy management and circular economy initiatives actively end-to-end lifecycle services and diversified solutions supported by continuous innovation. Leveraging digital
shaping a “second growth curve”. Throughout the year Tianshan Material demonstrated strategic resolve in platforms to integrate internal and external resources Tianshan Material continued to improve operational
navigating complexities and delivered a pragmatic and forward-looking performance for the stakeholders. effectiveness and contributed to the industry’s high-quality development. In 2025 the Company intensified R&D
investment focusing on overcoming core technical bottlenecks exploring emerging technologies reducing costs
Through strategic alignment and systemic upgrades we reinforced our development foundation. The Company while improving quality and advancing green transformation—all aligned with our long-term vision.further developed the three strategic pillars: creating low-carbon sustainable advantages strengthening the Breakthroughs in smart manufacturing were realized with significantly expanded coverage of digitalized and
high-quality talent base and delivering win-win cooperation benefits. This marked a comprehensive transition intelligent mines leading to further improvements in production efficiency and product consistency.from strategic planning to systematic execution. By developing an innovation-driven carbon neutrality framework
spanning the entire industrial chain cultivating an industry-leading talent ecosystem and establishing inclusive Guided by a people-centered philosophy Tianshan Material strengthened the foundation for enduring success.platforms for co-creating social value Tianshan Material partnered globally to advance a new vision for green The Company systematically advanced organizational capabilities through three integrated dimensions: “Safebuilding materials through craftsmanship and technology. Tianshan” “Healthy Tianshan” and “Growing Tianshan”. We fully implemented the intelligent production
safety management system to reinforce production safety and safeguard the health and well-being of all
Low-carbon transformation served as a catalyst for industrial renewal while ecological intelligence unlocked employees and partners. Additionally we enriched the cultural ethos of “Tianshan Home” fostering a
new growth opportunities. In active response to the national “dual carbon” strategy the Company integrated supportive and human-centric work environment that aligns individual growth with corporate advancement.green and low-carbon principles into the core of our high-quality development. Seizing the opportunity
presented by the inclusion of the cement sector in the national carbon market Tianshan Material leveraged Looking ahead Tianshan Material will continue to uphold the commitment to sustainability moving forward with
technological innovation to drive emissions reduction and amplified decarbonization outcomes through openness innovation and pragmatism. The Company is dedicated to sustainable efforts and committed to
industrial chain collaboration. The Company systematically upgraded the smart energy management systems becoming a world-class provider of basic materials manufacturing services. We look forward to collaborating
continued to improve energy efficiency at key production sites and accelerated the development of green with global partners on the path toward green development. By harnessing the ingenuity of materials to create a
factories and green mines. We also expanded our portfolio of diversified low-carbon products and achieved better world and fulfilling our responsibilities with integrity we aim to actively embrace a new era of high-quality
significant progress in increasing alternative fuel co-processing ratios and optimizing alternative raw material growth in the building materials industry and achieve a strong start to China’s 15th Five-Year Plan period.01
Advancing Our Long-Term Vision
At Tianshan Material we practice the principles of sustainable development by continuously improving our ESG
management system. We strive to foster harmony among the Company the environment and society. Focusing
on improving our ESG management performance we aim to create sustainable corporate value. The Company
continues to enhance the sustainable development strategy model featuring Tianshan characteristics and actively
drives the implementation of strategic initiatives seeking to balance ecological economic and social outcomes.* Overview of the Company * ESG Governance Structure * Investor Communication
* Sustainable Development Strategy * ESG Performance Highlights * Double Materiality Assessment
Model * ESG Awards and Recognitions2025 Environmental Social and Governance (ESG) Report Advancing Our Long-Term Vision 6
Overview of the Company
Founded in November 1998 and listed on the Shenzhen Stock Exchange (SZSE) in 1999 (stock code: 000877)
Tianshan Material Co. Ltd. is the core enterprise in infrastructure materials of China National Building Material
Group Co. Ltd. (CNBMG). The Company leads the country in clinker and commercial concrete production capacity
and is a national leader in aggregate production. The scope of business covers manufacturing and sales of
cement clinker commercial concrete and aggregates.By the end of the reporting period:
Total assets: Legal entities: Covering:
275957 488 25 provinces autonomous regions and
million municipalities directly under the central
government
Clinker production Aggregate production Ready-mixed Employees: Figure: Distribution Map of Overseas and
capacity: capacity: concrete capacity: Domestic Business Operations *This map is for demonstration.51 Please refer to the map published by270 230 360 the Ministry of Natural Resources for the standard map and map content.thousand
million tonnes million tonnes million cubic meters
图 海内外业务分布图2025 Environmental Social and Governance (ESG) Report Advancing Our Long-Term Vision 7
Sustainable Development Strategy Model Three Key Goals for Our Sustainable Development
Guided by the mission of “materials create a better world” and the philosophy of “excellence in operation The focus of “creating low-carbon sustainable advantages” aims torefinement in management and robustness in organization” the Company has formed a sustainable Creating low-carbon improve Tianshan Company’s environmental performance. By applying
development strategy system. This year with deep collaboration between the Board’s Environmental Social and sustainable new energies developing green products and expanding recycling the
Governance Committee (ESG Committee) and various functional departments the company has been following advantages Company is committed to achieving green transition to address climate issues and reduce ecological impacts.the 2025 ESG strategic ledger plan and work objectives continuously optimizing digital tools earnestly carrying
out sustainable development actions and further deepening the connotation of the sustainable development
strategy. To support the implementation of this strategy the Company organized a range of multi-layer and
multi-form meetings including internal alignment sessions management awareness training and meetings with The focus of “strengthening the high-quality talent base” aims to
the general manager of subsidiaries. These efforts are aimed at building consensus and driving shared Strengthening the promote the common development of the Company and employees.development. high-quality While striving to become a leading player within the industry the
talent base: Company also provides employees with a healthy safe and comfortable workplace to improve employees’ well-being and sense of
belonging.The focus of “delivering win-win cooperation benefits” aims to build
a green industrial chain carry out sustainable procurement and meet
Delivering win- diversified customer needs. Tianshan Material seeks to add value to the
win cooperation society and enhance our social influence. Besides we improve our
benefits: business conduct enhance the Company’s modern governance
capability and effectively implement sustainable development
management so as to fulfill corporate social responsibilities.ESG Governance Structure
To align with the Company’s strategies and sustainability needs as well as to achieve higher quality and
efficiency in management the Company has established a sound “governance-management-execution” ESG
governance structure formulated work rules clarified job duties and formed a long-term ESG work mechanism to
further promote the win-win development with stakeholders achieve the mid- and long-term strategic goals of
the Company and promote sustainable development.Tianshan Material has formulated and implemented the “Rules of the ESG Committee of the Board” and
“Management Rules for the ESG Working Group” which defines the Company’s ESG governance structure and
promotes the implementation of ESG management issues. The company holds at least one ESG committee
meeting every year covering the company's ESG report sustainable development strategy action plan climate
change-related matters including the completion status of goals risk management situation etc. At the same
Strategic planning of Tianshan Material’s sustainable development time the company conducts at least one ESG research one ESG working group review meeting one action plan
promotion meeting and one stakeholder activity every year.。2025 Environmental Social and Governance (ESG) Report Advancing Our Long-Term Vision 8ESG Governance Structure ESG Awards and Recognitions
The Board The Board is the highest responsible body for the management and public disclosure of
the Company’s ESG issues and reviews and approves the Company’s ESG strategies and The following highlights key awards and recognitions received by Tianshan Material in 2025.objectives as well as major issues relating to social responsibilities. Department of Climate Change
China Association for Public Companies Ministry of Ecology and Environment
ESG Committee ‘2025 Outstanding Sustainable Letter of Appreciation RegardingDevelopment Practice Case of “Proactive Measures to AddressListed Companies’ Climate Change”
Introduction: Responsibilities:
The Board has set up an * Review the Company’s ESG and climate change-related policies and China Association for Public Companies S&P Global
Environmental Social strategies to ensure that they comply with laws regulations and standards Inclusion in S&P Global
and Governance (ESG) * Review the Company’s ESG and climate change-related management and ‘2025 Outstanding Practice Case "Sustainability Yearbook (China
Committee (hereinafter internal supervision system and make recommendations to the Board on its for Listed Company Boards of Edition) 2025" as "Industry Bestreferred to as “ESG appropriateness and effectiveness Directors’ Improver"Committee”) which * Assess and sort out the ESG and climate change-related risks and
comprises three opportunities of the Company and make recommendations to the Board China Building Materials Federation SynTao Green Finance
directors: Zhao Xinjun * Review and supervise the goals and implementation of the Company’s ESG
Shen Jun and Li Chen and climate change-related work assess the work and make Selected as "Typical ESG Practice Inclusion in ‘Steady Progress:
and the Chairman Zhao recommendations to the Board Case (Environmental and ESG Leaders Report of Chinese Enterprises 2025’
Xinjun acts as the head * Assess how the Company communicates with stakeholders on ESG matters Governance Themes)"
of the ESG Committee. and ensure that appropriate communication policies and channels are in
place to effectively engage the Company’s relationships with stakeholders China Cement Network Securities Times
* Other job duties delegated by the Company’s Board 16th China Listed Companies
‘2025 China Cement Enterprises Investor Relations ‘Tianma
ESG Rankings’ – ‘Grade A’ Award’ – ‘Investor Relations
ESG Working Group Shareholder Return Award’
YiDong / Value Online
Hua Zheng Index
Introduction: Responsibilities:
The ESG Working Group * Organize coordinate and supervise the implementation and execution of 2025 YiDong ‘Value 100’ Rating – ‘ESG Value
as the main ESG and climate change-related work by the subsidiaries of the Company Hua Zheng ESG Rating: A Grade Transmission Award’
coordinating and * Organize and carry out the ESG work of the Company in accordance with the
executive body is overall ESG and climate change-related management goals strategies and
authorized by the ESG guidelines approved by the ESG Committee formulate relevant systems and Board of Directors MagazineHua Zheng Index
Committee to assist the processes and report to the ESG Committee for review and approval
ESG Committee in * Report regularly to the ESG Committee on ESG and climate change-related ‘Special Contribution to Ranked among ‘Top 100 Most Corporate Governance’
guiding and supervising management (including but not limited to assessment ranking and Improved A-Share Listed Award
the governance function management of significant ESG related issues) Companies 2025’
of the Company in * Communicate with stakeholders on ESG and climate change-related matters
implementing ESG and present feedback concerning important ESG and climate change-related Wind Information Technology Co. Ltd. China Building Materials Federation
issues. matters or the Company’s business to the ESG Committee management or
relevant departments Building Materials Industry ESG
* Other duties and responsibilities delegated by the Board or the ESG Wind ESG Rating: AA Grade Rating: A Grade
Committee2025 Environmental Social and Governance (ESG) Report Advancing O擘ur 画Lo企ng业-T愿er景m远 Vi蓝sio图n 9
ESG Due Diligence
In recent years the company has actively responded to external sustainable development regulatory
requirements and guidelines continuously integrating ESG concepts into strategic planning and daily operations.We have always attached great importance to ESG management and investigation work striving to enhance our
professional capabilities in the ESG field actively promoting the construction of relevant systems and talent
reserves and preparing to launch ESG due diligence preparation work with supply chain research as the main
direction comprehensively inspecting our own ESG status and impacts in order to better promote the
implementation of ESG practices.Investor Communication
Tianshan Material regards investors as the foundation of growth in the capital markets and recognizes sustained
communication with investors as essential to the Company’s long-term success. The Company revised and strictly
implemented the “Investor Relations Management Policy” the “Investor Rights and Interests ProtectionPolicy” the “Information Disclosure Management Measures” and the “Management Policy for InternalInformation and Insiders” so as to actively disclose the Company’s material information and listen to and
respond to the voices of investors. Investor hotline: E-mail:
The Company has set up a seasoned and professional team for investor relations management which has 021-68989042 ir@cnbm-s.com.cn
extensive experience and deep expertise in investor relations management financial management and legal
affairs as well as good communication skills. The Company formulates the annual work plan on a yearly basis
specifying the objectives and key tasks for investor relations management so as to adapt to market changes and The Board Office of Tianshan Material places high importance on investor feedback received through all
the Company’s development priorities. communication channels and responds to every written inquiry phone call and in-person engagement with
The Company continues to enhance accessibility and responsiveness in investor communications and is diligence and accountability. In 2025 the Company received one formal written submission from investors
accelerating the development of a digital and intelligent investor relations management system. The Company containing objections or suggestions. No complaints were received via email or during in-person engagements.leverages a variety of channels to engage with investors including the SZSE interactive platform performance The Company hosted investor communication activities attended by more than 400 participants throughout
presentations regular reports on-site research teleconferences web conferences third-party roadshow the year.platforms online interactive platforms IR mailboxes and investor relations telephone lines. We also regularly
carry out themed activities focusing on the Company’s business development green and low-carbon transition
and dissemination of investment value. Through all of these efforts we aim to communicate extensively with
investors and respond positively to the many concerns we have learnt about. Additionally we maintain an
“Investor Relations” section on our official website along with the WeChat Official Account and mini-program
“Tianshan Material Investor Relations” through which we regularly publish in-depth updates on operational Investor Relations Mini Progra
performance major project progress and capital markets recognition. In 2025 the Company continued to
operate the investor relations new media platforms dedicated hotline and email channel to enable broader and
more convenient communication with investors. Special attention was also given to the distinct communication
needs of different investor groups including institutional and medium and small-sized investors.2025 Environmental Social and Governance (ESG) Report Advancing Our Long-Term Vision 10
ESG Performance Highlights
Creating low-carbon sustainable advantages Strengthening the high-quality talent base
80 enterprises passed the low-carbon 10 enterprises passed the carbon footprint Training hours of Hours for safety and Hours for Hours for skills and
certification assessment employees environmental protection Management business
1844.7 thousand 1101.5 thousand 263.3 thousand 479.9 thousand
389 enterprises certified with the ISO 9001 394 enterprises certified with the ISO 14001
Quality Management System Environmental Management System
Total expenses for employee training employee attendances in occupational
253 enterprises certified with the ISO 50001 394 enterprises certified with the ISO 45001 and development reached RMB health and safety training sessions
Energy Management System Occupational Health and Safety Management System 35393.4 thousand 992975
53 national green factories and 61 national 38 national green mines 110 provincial green
green demonstration factories of ready mixed AI alert comprehensive response rate The member enterprises conducted a
concrete mines 100% total of 3510 various emergency
rescue drills with 65995 participants.
22 digitalized mines 100% of business premises conducting biodiversity
impact assessments
Total investment of RMB 81511.55 131725068.22 tonnes of total greenhouse Delivering win-win cooperation benefits
ten thousand in ecological and gas emissions down 10.15% compared with
environmental protection last yearanti-corruption (anti-commercial signing rate of of “Commitment to Integritybribery) training sessions and Self-discipline of Management”
97.10 kg comprehensive energy consumption 94.54% recycled water utilization rate of 4517 100%
per unit of clinker products down 2.34 kg of clinker-producing cement companies
standard coal compared with last yearsigning rate of the “Supplier Integrity
100% reusing rate of the treated wastewater for 58.95 Commitment” million tons of clinker output obtained the 100% 100% employee coverage rate in anti-
concrete business certification for low-carbon products corruption (anti-commercial bribery) training
100% board member coverage rate
0.2247 kg nitrogen oxides (NOx) emissions per 0.0200 kg sulfur dioxide (SO2) per uint of clinker 100% new employee coverage rate in
Total investment of RMB 40287.2 thousand in
uint of clinker products down 6.2% year on year products down 0.5% year on year integrity education during onboarding.public welfare (including material donations)
100% overall pass rate of cement products 17059993.41 tonnes of standard coal
equivalent of total energy consumption 1160 annual working hours of volunteer RMB 33.9276 million of donations to the
16.5% consumption rate of alternative fuel activities with 1629 people participated in targeted poverty alleviation and rural revitalization (including material donations)2025 Environmental Social and Governance (ESG) Report Advancing Our Long-Term Vision 11
Stakeholder Engagement Stakeholder Issues of Concern Communication Method
* Quality of operations * Publication of periodic reports
The Company maintains regular communication with stakeholders via various channels to understand and * Green transition * Holding shareholders’ meeting
promptly respond to their needs using their feedback and concerns as motivation for continuous improvement of * Compliance performance presentation analyst presentation roadshow and reverse
our ESG management. In the year the key issues of concern of main stakeholders are as follows: * Quality assurance of products
and services roadshow strategy meetings investor
* Greenhouse gas emission and education activities and investor group
Stakeholder Issues of Concern Communication Method management reception day activitiesShareholders/ * Wastewater drainage and * Communication channels such as SZSE interactive platform “Investor* Company strategy and Investors management* Solid waste disposal and Relations” module on the official planning
management website the “Tianshan Material Investor * Company Charter and Relations” official account and mini-
important policies * Labor regulations program investor hotline IR and director
* Important organizational * Shareholders’ Meeting * Optimization and upgrading secretary email
restructuring and personnel * Board Meeting
arrangement * Board special committee meetings * Quality assurance of products * Customer research
Directo.rs * Major investment and * Independent directors special meetings and servicesfinancing matters * Board consultation * Anti-unfair competition * Customer complaint handling
* Quality of operations * Compliance and callback
* Compliance Customers * Anti-corruption and integrity * Regular disclosure of corporate
* Quality assurance of products promotion information
and services
* Compliance * Contract negotiation and daily meetings* Optimization upgrading and * Regular supplier performance reviews
green transition of production * Anti-corruption and integrity
promotion and engagement meetingsand operation * Supplier capability development
* Company governance reform * Management Meeting Business suppliers/ * Quality assurance of products exchanges
and innovation * Work reporting and communication Contractors and services * Regular disclosure of corporate
* Compliance of employee * Governance and integrity training and * Supply chain management information
Management occupational safety and management etc.health
* Anti-corruption and integrity * Green transition
promotion * Sustainable development
* Industry exchanges and seminars
* Regular disclosure of corporate
Community/Industry * Anti-unfair competition* Compliance information
* Employee occupational health associations
and safety * Safety training and practice
* Employee career development * Career development seminars * Ecology and natural resource
and training * Support for employees in difficulty protection
Employees * Labor regulations * Employee representative meetings and * Optimization and upgrading
* HR management seminars etc. * Green transition
* Quality assurance of products * Press interviews
and services * Press releases and announcements
Press * Solid waste disposal and
* Compliance management
* Quality assurance of products * Reporting on work and regular * Wastewater drainage and and services
* Greenhouse gas emission and communication with regulators
management
management * Participation in conferences and major
Government and * Water use and management
events * Research innovation and
* Employee occupational health * Environmental information disclosure investment * Research cooperation and regulatory agencies and safety * Publishing compliance reports and * Quality assurance of products communication
* Ecology and natural resource accepting supervision Research institutes such as and services * Regular disclosure of corporate
protection universities/research * Ecology and natural resource information
institutes protection2025 Environmental Social and Governance (ESG) Report Advancing Our Long-Term Vision 12
Double Materiality Assessment
Materiality assessment serves as the foundation for Tianshan Material’s ESG management and practices. The High
Company conducts relevant actions regularly across the organization. In 2025 Tianshan Material updated the Moderate Medium High
methodology and assessment process in line with the regulatory requirements and international standardsincluding the “Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange -Sustainability Report (For Trial Implementation)” to carry out a double materiality assessment. The assessment Product and service
followed a structured four-step process:： safety and quality
10
5 Pollutant discharge 11
Step 1: Understand business context and affected stakeholders Environmental compliance 6 Waste disposal Employees4
management
Based on Tianshan Material’s operational model and business activities the Company mapped the 17 Anti-commercial bribery
value chain and identified key focus areas. This step incorporated inputs from ESG standards and and anti-corruption
guidelines capital market ESG rating criteria international initiatives market trends and the Water resources utilization7
Company’s strategic priorities to identify materially affected stakeholders and relevant ESG issues.Data security and Energy utilization
customer privacy 13 3
Step 2: Identify impacts risks and opportunities related to ESG issues 18 Anti-unfair competition
2 Circular economy
20 Due diligence
Through research and screening the Company identified current and potential impacts risks and Ecosystem and 8
opportunities associated with each ESG issue clearly locating them within the value chain. biodiversity protection 19 Stakeholder engagement
9 Innovation
Step 3: Assess and determine the materiality of ESG issues
1 Climate response
12 Supply chain security
Evaluate both impact materiality and financial materiality. The assessment considers the severity
scope and likelihood of each impact or financial effect.This year to assess impact materiality the Company distributed surveys to a broad range of
stakeholders—including employees directors management customers suppliers investors
community members the public and media—and collected 1679 valid responses. To assess
financial materiality surveys were sent to management and reviewed in consultation with internal
15 Equal treatment of SMEs
finance experts and external ESG specialists yielding 26 valid responses.Step 4: Finalize material issues to guide ESG disclosure and practices 14 Rural revitalization
16 Social contributionIssues deemed material under both impact and financial dimensions were classified as “doublematerial” for the year. These were prioritized using a materiality matrix ensuring transparency on
material issues and key information. Low Materiality to the Fiannce High
This year the Company identified 7 issues as impact-material 4 issues as financially material and 2
issues as double material.Figure: Tianshan Material’s 2025 materiality matrix1
1 Tianshan Material is mainly engaged in the traditional construction materials business and our core business includes the production and sales
of cement clinker commercial concrete and aggregates. We do not conduct scientific research and technology development activities related to
life science artificial intelligence or other fields involving science and technology ethics so the issue of “ethics of science and technology” is
not involved.Materiality of the impact2025 Environmental Social and Governance (ESG) Report Advancing Our Long-Term Vision 13
Issue Value chain Impact stage horizon Description of impacts risks and opportunities Issue
Value chain Impact
stage horizon Description of impacts risks and opportunities
Impact: Tightening regulations on fossil fuel use may
Impact: Product and service safety and quality directly raise energy efficiency standards or consumption
affect public safety in construction projects and broader benchmarks potentially increasing operating costs.societal interests. They also form the foundation for
regulatory compliance and sustainable operations.* Upstream * Short term
* Upstream * Corporate * Medium term Risk: Efforts to improve energy efficiency such as
* Corporate * Short term Energy operation adopting alternative fuels or developing new low-carbon
Product and operation * Medium term utilization energy solutions may increase the Company’s
service investments in technology development and fuel * Downstream
safety and conversion.Risk: Quality or safety failures in products and services
quality may result in higher after-sales costs significant Opportunity: Energy efficiency improvements through
compensation liabilities or legal proceedings. technological retrofits such as alternative fuel co-
processing waste-heat power generation and co-
Opportunity: High-quality products and services processing of industrial waste can reduce operating
enhance market reputation and brand trust secure costs.product certifications facilitate entry into international
markets and improve eligibility for major project
tenders thereby driving revenue growth.Impact: Climate action shapes the Company’s long-term
operational viability and sustainability affecting
production models and supply chain resilience. Proactive
low-carbon transformation through technological
innovation can create enduring market advantages.Impact: Attracting and retaining talent fostering
innovation and maintaining stable labor relations are
critical to sustaining long-term productivity innovation
capacity and resilience. Risk: On the transition side increasing regulatory
* Upstream requirements from government and other regulators—* Short term such as stricter emissions controls and enhanced
* Corporate * Medium term disclosure obligations for the cement industry—may raise
* Upstream operation compliance costs. Further policy tightening could also * Medium term Response to * Downstream * Long term drive up greenhouse gas (GHG) emission allowance * Corporate climate * Long term prices leading to higher operating costs. On the physical operation change side the rising frequency and intensifying extreme
Employees Risk: Talent attrition may reduce operational efficiency weather events may impair production capacity and
and revenue. Workplace injuries or rising incident rates increase operating costs.can lead to production stoppages medical expenses Opportunity: Proactively addressing climate change and
compensation claims and associated losses. implementing a climate transition plan can further
Opportunity: A skilled workforce improves operational enhance the Company’s climate resilience and drive
efficiency and productivity while reducing management green transformation across the upstream and
costs. Enhanced employee benefits and stronger rights downstream value chain. Growing demand from
protection contribute to operational stability and long- downstream industries for green products such as low-
term competitiveness. carbon cement and concrete can also contribute to
increased operating income.
2 Definition of time horizons: short-term refers to one year or less; medium-term refers to one to five years; and long-term refers to more than five
years. These timeframes align with the Company’s strategic planning cycle the nature of associated impacts risks and opportunities and
resource allocation priorities.02 Feature
Embracing Our Climate Responsibility
Climate change represents a profound challenge for human society. Tianshan Material is committed to green
development and firmly supports the national strategic goals of “carbon peaking and carbon neutrality”. By
diligently identifying and analyzing climate-related risks and opportunities that affect the Company’s operations
we have established a systematic approach to climate risk management and response. We strive to balance
ecological and economic benefits and social benefits.* Governance * Impact Risk and Opportunity Management
* Strategy * Metrics and Targets2025 Environmental Social and Governance (ESG) Report Feature: Embracing Our Climate Responsibility 15
Governance Strategy
A solid governance structure and clear management responsibilities are crucial for effective climate change Tianshan Material continues to improve its strategic framework to address climate-related risks. Based on
response and management in enterprises. The Board of Directors serves as the highest oversight body for regulatory requirements and industry characteristics Tianshan Material identifies and assesses climate risks and
climate-related matters. The Board has set up an Environmental Social and Governance (ESG) Committee opportunities the Company faces. In line with the Company’s strategy and development progress the Company
(hereinafter referred to as “ESG Committee”) which comprises three directors: Zhao Xinjun Shen Jun and Li has formulated and gradually implemented corresponding measures. Meanwhile Tianshan Material requires all
Chen who possess diversified expertise and strategic vision and extensive experience in driving the green subsidiaries to develop short- medium- and long-term strategies to contribute to positive climate and
transition of the Company and addressing climate change. The ESG Working Group as the main coordinating and environmental change.executive body is authorized by the ESG Committee to assist the ESG Committee. In 2025 Tianshan Material
further established a dedicated Climate Change Task Force under the ESG Working Group to oversee day-to-day
execution and advancement of climate-related initiatives. Climate-related risks and opportunities
Management of the Company is responsible for climate change-related tasks including strategic planning
management policy formulation resource allocation target setting and implementation overseeing. The
Company has integrated the management of climate change into the duties of various departments including the Taking into account the external environment the Company’s strategic development goals business operations
Technical Management Department (Dual-carbon Management Department) and the Safety and Environmental and value chain impacts we have systematically identified and analyzed the climate-related risks and
Protection Department. The Technical Management Department (Dual-carbon Management Department) is opportunities facing our business operations. Cross-departmental collaborative workshops are carried out with
responsible for technological innovation as well as the formulation and implementation of emissions reduction the focus on assessing the potential impacts of major climate-related risks and opportunities on our business
plans while the Safety and Environmental Protection Department is responsible for environmental regulatory operations and financial performance. In line with the Company’s current management practices we conduct
compliance and reports to the ESG Committee on a regular basis. scenario simulations and quantitative financial impact analyses.The Board serves as the highest management and oversight Definitions of Short Medium and Long Term3
body for climate change-related matters.The
Board
The ESG Committee is responsible for reviewing the
Company’s climate change-related policies and strategies Short
examining relevant management and monitoring systems term Within 1 year after the end of the reporting period(including 1 year)ESG
Committee and assessing the management of risks opportunities and
work goal progress.The ESG Working Group as the main coordinating and
ESG Working Group executive body is authorized by the ESG Committee to assist
the ESG Committee in the implementation of responsibilities Medium 2 to 5 years after the end of the reporting period (including 5 years)
and tasks concerning climate change. term
The Company links climate response performance to the compensation of management to incentivize them to
actively implement sustainability strategies. These measures are designed to meet regulatory requirements and
stakeholder expectations and enhance long term competitiveness and reputation of the Company. The Company Long Over 5 years after the end of the reporting period
has signed the “Responsibility Statement of Annual Operation and Management Target for Regional Companies” term
with the subsidiaries and the “Responsibility Statement of Annual Ecological Environmental Protection Target”
with management persons in charge of each subsidiary and managers and employees of the subsidiaries and
made ESG-related management performance tied to the KPIs. The signing rate of these responsibility statements
was 100%.The Company also regularly organizes specialized climate training sessions inviting both internal and external
experts. Training content covers global climate trends the latest regulatory developments and methodologies
for GHG accounting. This top-down approach continuously strengthens the technical competence and strategic 3 We have defined the time horizon of Tianshan Material’s climate-related risks and opportunities across the short medium and long term
awareness of relevant roles. aligning closely with the time frame and business direction outlined in the 15th Five-Year Plan.2025 Environmental Social and Governance (ESG) Report Feature: Embracing Our Climate Responsibility 16
Climate-related risks
Transition Risks Transition Risks
Policy and Legal Description Market Description
Impact Period * Tighter policies and mandatory regulatory and reporting requirements for Impact Period * Fluctuations in energy prices may lead to increases in production costs
environmental protection and emission control will increase operating (e.g. energy consumption and use of alternative fuels).* Short * Medium costs. These include compliance expenses investments in energy-saving * Medium
term term and emission-reduction equipment environmental protection training term
costs potential environmental litigation costs and additional fines.Types of Business Affected Types of Business Affected Measures to Address Risks
* Cement * Commercial Measures to Address Risks * Cement * Commercial * Enhance the R&D and application of technologies to reduce energy
business concrete
business * Engage with relevant authorities in different regions to gain a deeper
business concrete consumption and improve energy efficiency through technological
* Aggregate businessunderstanding of policies and their guidance identify potential risk factors innovation.business and reduce risks through standardized management. Types of Assets Affected * Increase the utilization rate of renewable energy and boost the
Types of Assets Affected * Engage third-party agencies to assist the Company in enhancing proportion of green electricity.environmental compliance consultation and management. * Factories
* Factories * Mines * Take measures to strengthen the accountability of member units including
annual work planning and the formulation of corresponding policies and Physical Risks
management mechanisms to clarify responsibilities and effectively control
costs. Acute Description
* Carry out ultra-low emission transformations by adopting advanced
environmental protection technologies and equipment to reduce pollutant Impact Period * Increased severity of extreme weather events can hinder product
discharge and improve environmental performance. transportation leading to higher operating costs. Extreme weather may
* Short term * Medium
term also cause loss of existing assets.* Long term
Policy and Legal Description
Types of Business Affected Measures to Address Risks
Impact Period * The cement industry has now officially joined the national carbon trading
market. The integration of the carbon quota allocation mechanism with * Cement * Commercial
* Short * Medium * Respond promptly to weather risk alerts issued by the China the “total volume and intensity” dual-control system for carbon business concrete
term term Meteorological Administration and disaster management agencies; emissions continues to advance. Anticipated increases in the pricing of * Aggregate business
GHG emissions may lead to rising operational costs such as expenditure schedule raw material deliveries and product shipments according to
Types of Business Affected businesson carbon quota purchases monitoring and reporting as well as weather conditions and arrange logistics transportation plans
* Cement increased investment in upgrading production processes including the
accordingly.Types of Assets Affected
business installation of energy-saving and carbon-reduction equipment process * Equip with emergency supplies and safety evacuation devices conduct
improvement and the deployment of carbon footprint tracking systems. * Offices regular safety patrols in dormitory areas and issue safety reminders to
Types of Assets Affected
Measures to Address Risks * Factories * Mines employees and carry out regular safety training on early warning
response so as to ensure the personal safety and accommodation
* Factories * Mines
* Formulate and make continuous improvements to medium and long-term security of on-site employees.goals for carbon emissions after in-depth research; and regain * Set up intelligent production safety systems. During the flood season
competitive advantages in the face of carbon cost constraints and strike a
dynamic balance between green transformation and economic benefits factories adjust their production schedules according to rainfall
through technological innovation energy mix optimization and industry- conditions and prepare materials and production in advance.wide carbon emission reduction. * Appropriately purchase commercial insurance such as catastrophe
* Develop and gradually implement a carbon emissions monitoring plan insurance property insurance and safety production liability insurance
and actively participate in the national pilot program for automated to reduce potential property losses caused by various disasters and
(online) carbon emissions monitoring. accidents.2025 Environmental Social and Governance (ESG) Report Feature: Embracing Our Climate Responsibility 17
Climate-related opportunities
Resource Efficiency 产品和服务
Impact Period Description Impact Period Description
* Short term * Medium * Under the dual pressure of resource scarcity and increased cost * Medium * Long term * As demand in the downstream industry chain for green and low-carbon
* Long term term pressures using alternative raw materials and fuels not only reduces term products such as low-carbon cement and concrete increases catering to
dependence on natural resources but also helps lower procurement market preference can boost revenue.Types of Business Affected Types of Business Affectedcosts for raw materials and fuels. * Opportunities from product demand upgrading driven by sustainable urban and construction development.* Cement * Commercial * Cement * Commercial Measures to Seize Opportunities
business concrete business concrete Measures to Seize Opportunities
business business* Identify alternative raw materials and fuels (such as solid waste) based * Develop low-carbon and green products and technologies and apply for
Types of Assets Affected on local conditions taking into account both cost and availability and Types of Assets Affected certification for single-purpose cement special cement green concrete
promote and increase their use. and other environmentally friendly products.* Factories * Mines * Factories * Supply green cement and concrete products reliably and stably based
on the different needs of customers.* Leverage centralized R&D strengths to establish a company R&D center in
Suzhou and continuously advance the research and application of low-
carbon products and technologies.* Guide the market toward new consumption of higher-end products and
continuously develop and launch high-quality products.Resource Efficiency
Impact Period Description In terms of risk management the Company organized its management personnel to study relevant policies in
response to increasingly stringent environmental regulatory requirements and reporting obligations this year. We
* Short term * Medium * Optimizing energy management implementing energy-saving also engaged external experts to provide compliance consulting services incurring expenditure totaling RMB
* Long term term technological upgrades and utilizing clean energy sources not only 21.93 million. Furthermore RMB 214.01 million was invested in advancing energy-saving carbon-reduction and
reduces energy consumption and controls production costs. consumption-reduction initiatives including equipment and technological upgrades as well as ultra-low
Types of Business Affected emission retrofits. In terms of carbon asset management the Company has fulfilled its compliance obligations in
Measures to Seize Opportunities the national carbon emissions market for the previous year (2024) without the need for any further adjustments
* Cement * Commercial and has taken all the necessary steps to fulfil its obligations for 2025. In response to fluctuations in energy prices
business concrete * Continue to carry out themed energy-saving technical improvements the Company invested around RMB 19 million in acquiring new energy vehicles reducing carbon emissions from
business enhance relevant technological R&D and improve production and transportation and saving costs. At the same time we encouraged our partners to replace their fleets with new
operation efficiency so as to reduce operating costs in the long run. energy vehicles promoting a low-carbon cooperation model. Facing the risk of extreme weather the Company Types of Assets Affected invested RMB 10.56 million in enhancing protective facilities and procuring preventive supplies. This included
* Promote clean energy and high-efficiency technologies and continue to factory reinforcement and renovation as well as pipeline upgrades. Additionally we allocated approximately
* Offices improve the penetration of photovoltaic systems in factories thereby RMB 35.83 million to purchase severe disaster insurance property insurance and safety liability insurance in
* Factories * Mines reducing carbon emissions by replacing traditional high-carbon energy order to proactively safeguard our assets. In the year the Company incurred losses of around RMB 0.64 million
sources and optimizing energy efficiency. due to facility damage caused by extreme weather events.In terms of seizing opportunities the Company saved approximately RMB 369.21 million in costs by procuring
alternative fuels and raw materials this year. We also saved around RMB 23.79 million by utilizing renewable
energy and invested about RMB 299 million in purchasing green electricity and green certificates. The Company
continues to advance the R&D and marketing of green and low-carbon products. Related R&D investments and
certification costs have reached approximately RMB 79.14 million. Products with green attributes have generatedrevenue of RMB 25404.14 million. Such products include cement products certified as “China Low-CarbonProduct” and commercial concrete products certified as “China Green Building Materials Product”.Based on the above assessment the Company considers climate change risks to be overall manageable in
relation to its total assets and not material to its current or foreseeable performance.2025 Environmental Social and Governance (ESG) Report Feature: Embracing Our Climate Responsibility 18
Impact Risk and Opportunity Management The prioritization and relevant criteria of sustainability-related impacts risks and opportunities are based on a comprehensive consideration of their alignment with the Company’s long-term strategy under different climate
scenarios the significance of their impacts on the Company’s operations and financial condition the urgency of
the impacts the Company’s control over the issue and the level of stakeholder concern. Together these criteria
guide the Company in identifying and prioritizing issues that are critical to sustainability ensuring that the
Climate change scenario analysis Company achieves its triple bottom line goals of economic social and environmental impacts while addressing
the challenges of climate change. The table below shows the degree of impact of the identified risks and
opportunities on the Company under different climate change scenarios.The Company refers to the Shared Socioeconomic Pathways (SSP) from the Intergovernmental Panel on Climate
Change (IPCC) and climate change scenarios publicly released by the International Energy Agency (IEA). In addition
based on the Company’s “Implementation Plan for Reaching Carbon Peaking and Carbon Neutrality” we have
selected two applicable scenarios: a low emission scenario and a high-emission scenario to analyze the impacts of Optimistic scenario Pessimistic scenarioScenario
critical climate-related physical and transition risks on our operations. RCP2.6/RCP4.5 SSP1 RCP6.0/RCP8.5 SSP3
Impact Low Moderate High Low Moderate High
Risks
Climate scenario analysis under physical risks Increased acute extreme weather incidents result in
reduced production capacity damage to assets √ √
Optimistic scenario Pessimistic scenario and reduced operating income.Scenario applied
RCP2.6/RCP4.5 SSP1 RCP6.0/RCP8.5 SSP3 Changes in chronic precipitation patterns and
Climatic Low-emission scenario: Through High-emission scenario: Maintaining the
extreme variability in weather patterns lead to √ √
characteristics effective mitigation measures the GHG status quo leads to a continuous increase in increased operating costs.emissions are halved by 2050. GHG emissions.Opportunities
Emphasis is placed on the harmonious Global governance institutions and
coexistence of human beings and nature. leadership are relatively weak. Investment Use of lower-emission sources of energy
Cross-regional and cross-agency in technological R&D has decreased. √ √contributes to reduced operating costs.Socioeconomic cooperation is effective and sustained. Resource usage intensity has increased. Strict environmental management rapid Environmental policies are not being Use of alternative fuels contributes to reduced raw characteristics √ √technological change improved resource prioritized with environmental systems in material procurement costs.efficiency reduced difficulties in certain regions severely damaged. Water
accessing water and increased water scarcity and safety challenges are
safety are witnessed. enhanced by continued population growth.Estimated NZE STEPS
temperature rise by <2℃ >4℃ Scenario Net Zero Emissions by Stated Policies Scenario
the end of the century 2050 Scenario (STEPS)
Scenario source Intergovernmental Panel on Climate Change (IPCC) Impact Low Moderate High Low Moderate High
Risks
Climate scenario analysis under transition risks Increased pricing of GHG emissions can result in
√√
higher GHG emissions costs in the future.NZE STEPS
Scenario applied
Net Zero Emissions by 2050 Scenario Stated Policies Scenario (STEPS) Fluctuations in market prices may lead to increases
in production inputs (e.g. energy water waste √ √ √
This scenario assumes the possibility and
impact of global net-zero GHG emissions This scenario assumes the development disposal).Scenario description by 2050. In this scenario countries will trends in energy demand and supply Opportunities
and impacts introduce strict policies to increase the use without considering the introduction of
of energy-efficient technologies and any new policies or measures. Increased demand for green products such as low-
reduce dependence on fossil fuels. carbon cement and low-carbon concrete may √ √
Estimated contribute to increased operating income.temperature rise by <1.5℃ 2.4℃ Availability of new products or services through
the end of the century R&D and innovation can enhance enterprise √ √
Scenario source International Energy Agency (IEA) competitiveness and increase revenue.2025 Environmental Social and Governance (ESG) Report Feature: Embracing Our Climate Responsibility 19
The Company has implemented a series of key risk mitigation measures4 for risk mitigation and opportunity
capture to address the challenges of green development and transformation. The Safety and Environmental Metrics and Targets
Department keeps tabs on regulatory and legal changes related to climate change enabling the Company to
adjust its strategies in a timely manner. On top of that a Dual-carbon Management Department has been
established to focus on planning monitoring accounting compliance and trading of carbon emissions. The
Company also provides training programs to enhance employees’ expertise in carbon trading. Moreover the Tianshan Material has set ecological and environmental protection targets which have been reviewed
Company is actively pushing forward with resource conservation and technological innovation implementing and approved by the leadership. We have entered into target responsibility agreements with regional
energy-saving actions and building a circular economy such as water-saving initiatives and the adoption of companies and evaluated and examined the annual accomplishments of these targets by theserenewable energy to enhance operational efficiency and environmental performance. regional companies based on the “Management Measures for the Evaluation of Occupational HealthOn the marketing strategies the Company is stepping up its market research efforts to quickly adapt to the Safety and Ecological and Environmental Protection Work”. By doing so the Company aims to
growing demand for low-carbon products. The Company also maintains steady communication with stakeholders become an industrial pioneer in green transition.by regularly publishing ESG reports. Besides the Company has tightened up its internal management and
accountability to make sure environmental responsibilities are properly carried out. With these moves the
Company aims to keep marching forward on the road to sustainable development while ensuring business Climate Targets and Progress
continuity and compliance.Meanwhile the relevant business departments have carried out the following work: 2025 targets Target progress in 2025
Average unit clinker CO2 emissions of 815 kg Achieved
Review the * Check if there are climate-related risks. For example assess if the Company’s reducing by 6.24% from 2021
Company’s existing supply chain is vulnerable to climate events such as floods droughts or extreme
business activities weather. Average tonne of cement CO2 emissions of Achieved
612 kg reducing by 11.10% from 2021
Build 1 carbon capture project 1 carbon capture projects built with the
* Keep a close eye on climate risk trends and policy changes including government target achieved
Monitor industry regulatory requirements on carbon emissions and environmental protection as
trends and policy well as industry best practices and standards. In 2025 the Company invested RMB Green mines meet the 100% standard Green mines 100% standard met with the
developments 1.67 billion to add 73 new selective catalytic reduction (SCR) emission control target achieved
systems bringing the total number of SCR units in operation to 131.Riding the wave of the "dual carbon" strategy Tianshan Material is determined to take resolute and practical
actions to lead the industry toward a low-carbon sustainable future during the 15th Five-Year Plan period. Over
* Collect relevant environmental and climate data and conduct both quantitative the next five years the Company aims to achieve a total carbon emission reduction of more than 25% a clinker
Collect and analyze and qualitative analyses. The Company actively advances digital transformation carbon emission intensity reduction of over 2.5% and elevate its comprehensive carbon management capabilities
climate-related and has built the Tianshan Material Production Management Reporting System. to the upper-middle tier in the country. The Company also strives to reach the upper tier by 2035 setting a
data The system contains data on production energy quality and ultra-low emissions benchmark for the industry’s green transformation.facilitating intelligent data collection and analysis.
2030 Carbon Reduction Targets* In line with the “Opinions on Promoting the Implementation of Ultra-lowEmission in the Cement Industry” and certain local government requirements Total clinker carbon emissions Year-on-year decrease compared to 2025
Actively promote Target
the Company has pushed for the transformation of transportation methods.stakeholder (10000 tCO?e) （%）
Specifically the Company drives initiatives to shift from road to rail transport
engagement
from road to water transport and to adopt clean transportation supporting the 2030 Target Values 9178 25.4
transition toward greener operations.
4 For more information on energy conservation and carbon reduction utilization of alternative raw materials and fuels water recycling and R&D
and application of low-carbon products please refer to the chapter titled " Advancing Green Development Across Multiple Fronts ".2025 Environmental Social and Governance (ESG) Report Feature: Embracing Our Climate Responsibility 20
Carbon Reduction Roadmap Improvement
Tianshan Material has formulated the “Implementation Plan for Reaching Carbon Peaking and Carbon Neutrality”
and is developing the “15th Five-Year Plan Dual Carbon Strategy for Tianshan Material Co. Ltd.” closely Full-process carbon management
aligned with the Company’s overall “15th Five-Year Plan”. Guided by principles of systems thinking scientific * Advanced CNAS-accredited laboratory construction with 6 facilities now accredited
rigor and forward-looking vision the Company has established an integrated five-pronged implementation
pathway: emissions reduction at source process decarbonization end-of-pipe carbon sequestration full-process * Implemented smart carbon management pilots: six subsidiaries participated in the national pilot
carbon management and cross-functional synergy for enhanced outcomes. The strategy prioritizes key program for automated (online) CO2 monitoring successfully completing Phase I
technological areas including alternative fuels alternative raw materials low-carbon cement and carbon
capture utilization and storage (CCUS). It also strengthens capabilities in full lifecycle carbon asset management
advances industry-academia-research-application collaboration and actively participates in shaping green
building materials standards to position the Company at the forefront of low-carbon development. By driving Cross-functional synergies
deep integration across technological breakthroughs policy responsiveness and real-world application
Tianshan Material is advancing dual carbon goals in a focused orderly and efficient manner—ensuring strategic
initiatives are precisely executed and steadily achieved. * Achieved 226.91 MW of photovoltaic installed capacity
* Completed ultra-low emission retrofits at 2 facilities
* Secured product carbon footprint certifications (or assessments) for 10 products
Source decarbonization
* Advanced diversification of alternative raw materials achieving an alternative raw material usage
rate of 3%
* Developed low-carbon clinker successfully pioneering a one-step calcination technology for
dicalcium silicate–calcium sulfoaluminate–calcium sulfosilicate clinker Carbon capture technologies
* Launched low-heat Portland cement which reduces carbon emission intensity by 8% and has been
deployed in hydropower and high-speed rail projects
* Developed sulfo- (ferro-) aluminate cement which reduces CO2 emissions by 30% and is used in
marine and nuclear engineering applications Besides the Company is actively engaged in carbon capture initiatives storing captured CO2 or converting it into
value-added products such as building materials so as to enable carbon reuse.* Created a new low-calcium low-energy cement system lowering emissions by 13%
* Produced low-clinker cement for precast concrete (PC) components reducing emissions by 48.6 kg
CO2/m3
* Researched and applied magnesium-based and aluminosilicate low-carbon cementitious materials
Case: CUCC Qingzhou’s full-oxygen combustion CO2 enrichment and purification
demonstration project
Process decarbonization
* Deployed intelligent laboratories enabling automated testing and batching reducing limestone and Developed through joint technical collaboration between Tianjin Cement Industry Design & Research
fuel consumption Institute and Shanghai Triumph Energy Conservation and invested in by CUCC Qingzhou with RMB 283
* Developed a novel fluidized calcination system lowering clinker-specific standard coal consumption million this demonstration project is the largest carbon capture and utilization initiative in China’s cement
to below 90 kgce/t.cl and cutting carbon emissions by 51 kg CO2/t sector to date.* Upgraded grinding systems to achieve power consumption of less than 20 kWh/t The project features an integrated carbon capture pilot line that employs advanced technologies to enrich
* Repurposed retired rotary kilns for lithium extraction from brine achieving 55% facility utilization flue gas CO2 concentration to over 75%. In 2025 it achieved systematic progress in regulatory compliance
and 60% lower capital investment and market-oriented conversion obtaining a food-grade CO2 production license and completing the
preliminary site acceptance for final commissioning.End-of-pipe carbon sequestration Throughout the year the facility captured and converted a total of 5923 tonnes of industrial-grade liquid
CO2 and 223.10 tonnes of food-grade CO2 equivalent to avoiding approximately 6000 tonnes of CO2
* Developed novel carbon-curing cementitious materials to replace cement and quicklime in emissions. Beyond reducing the plant’s own carbon intensity the project supports downstream green
autoclaved aerated concrete development by providing a stable supply of low-carbon products accelerating the formation of a
* Piloted and scaled carbon-cured concrete technologies producing carbon-storing blocks and circular industrial chain.aggregates with carbonation rates of 10% to 18%03
Advancing Green Development
Across Multiple Fronts
Driving green and low-carbon development is a fundamental responsibility for enterprises. Guided by sustainability principles
Tianshan Material integrates green action into core operations. Through energy efficiency initiatives circular economy practices
low-carbon product innovation regulatory compliance and biodiversity conservation the Company embeds environmental
stewardship as a key driver of long-term value creation and fulfils ecological responsibilities to achieve balanced coexistence with
the natural environment.* Embracing Green Actions * Innovating Low-Carbon Products * Biodiversity Protection
* Developing Circular Economy * Emission Compliance Management2025 Environmental Social and Governance (ESG) Report Advancing Green Development Across Multiple Fronts 22
Embracing Green Actions Energy efficiency retrofit projects
In 2025 Tianshan Material continued to increase investment in energy efficiency retrofits focusing on equipment
upgrades process optimization and the scaling of proven solutions across operations.Governance
* Jiande South implemented constant-pressure control and cleaning optimization for its distributed dust
The Company has established and continuously improved the energy management system. The Board of collectors achieving constant-pressure operation of dust collection fans through air pressure
Directors serves as the highest governance body for energy management responsible for final approval monitoring and reducing annual fan electricity consumption by approximately 833300 kWh. Jiande
of strategic decisions. The ESG Committee reviews energy-related strategies and tracks their execution. For more South added a coal-saving raw meal grinding aid at the limestone belt scale in the raw mix
details on the Company’s energy use and governance efforts please refer to the “ESG Governance Structure” preparation station reducing actual coal consumption per tonne of clinker by 2.5 kg/t. Besides Jiande
South introduced a coal combustion catalyst at the feed inlet of the coal mill’s chain conveyor further
section of this report. lowering actual coal consumption per tonne of clinker by 3 kg/t.To drive accountability Tianshan Material has set clear energy efficiency targets and integrated them into the * Zhejiang Huazi implemented elevated silos for aggregate storage and switched from front-end loader
performance evaluations of management at all levels. This is reinforced through signed agreements including transport to belt conveyors for aggregate handling saving 94 tonnes of diesel per month with
the “Responsibility Statement of Annual Operation and Management Target for Regional Companies” and the corresponding monthly CO2 reductions of 256.2 tonnes. Zhejiang Huazi also deployed new-energy
“Responsibility Statement of Annual Ecological Environmental Protection Target” which are used to assess concrete mixer trucks to replace diesel vehicles saving approximately 70 tonnes of diesel per month
implementation effectiveness and ensure energy-saving actions are effectively carried out across the and reducing CO2 emissions by 142 tonnes per month.organization. * The Company further advanced the application of graded grinding technology and developed high-
reactivity novel blended materials to continue driving down energy consumption.Strategy
Tianshan Material prioritizes lean energy management embedding energy conservation and consumption Clean Energy Utilization
reduction throughout production and operations. Through an integrated approach—encompassing management
optimization technological upgrades equipment retrofits and resource recycling—the Company achieves To promote long-term sustainability Tianshan Material is advancing energy transition increasing renewable
science-based energy control and continuously improves energy efficiency to accelerate green and low-carbon energy use and continuously optimizing the energy mix.transition. The Company advances technological innovation and process optimization to unlock energy-saving
potential across production lines and major energy-consuming equipment. Efforts include refining process The Company continues to expand the use of renewable energies and aims to reduce dependence on traditional
controls implementing energy-saving projects and deploying intelligent energy management systems to energies by constructing solar panels and wind turbines in the Company’s production areas in an attempt to
enhance performance at every energy-use node. For more details on the impacts risks and opportunities minimize the adverse impact on the environment.associated with energy use please refer to the “Double Materiality Assessment” section of this report. In the
year the Company actively mitigated external energy price volatility by optimizing fuel mix and energy
management practices reducing electricity and coal-related expenditures by approximately RMB 2939.7 million.Expanded use of renewable energy generated additional cost savings of RMB 23.79 million. In support of green * Three member enterprises of Sanshi Material have completed grid-connection acceptance for their distributed PV projects.transition the Company invested RMB 612523.4 thousand in energy-efficiency retrofits and spent RMB 299 million The combined installations generate approximately 1621.4
on green power and green electricity certificates (GECs). Based on the above assessment the Company considers MWh of electricity annually saving about 518.84 tonnes of
energy-related risks to be overall manageable in relation to its total assets and not material to its current or standard coal and reducing CO2 emissions by roughly 1616.52
foreseeable performance. tonnes per year.* The 0.72 MW distributed PV project at Tonglu Benteng Building
Impact Risk and Opportunity Management As of 2025 Materials has successfully connected to the grid with an
Tianshan Material’s total annual output of 678 MWh. Once operational it will save
installed solar PV capacity around 216.96 tonnes of standard coal and cut CO2 emissionsTianshan Material strictly complies with national regulations and policies including the “Energy Law of the reached by approximately 675.98 tonnes each year.People’s Republic of China” and the “Energy Development Strategy Action Plan” and its member enterprises * The 0.5 MW distributed PV project at Quzhou Hushan is now
have formulated internal energy management systems. To ensure the effective functioning of the energy 226.91MW generating power to the grid delivering an average of 479.3
management system the Company conducts regular management reviews to systematically assess energy MWh of clean electricity annually. This translates to annual
efficiency identify energy-saving opportunities and continuously refine related processes and policies—thereby savings of about 153.38 tonnes of standard coal and a
driving measurable improvements in energy performance. In 2025 52% of the Company’s subsidiaries achieved reduction of roughly 477.86 tonnes in CO2 emissions.ISO 50001 Energy Management System certification.2025 Environmental Social and Governance (ESG) Report Advancing Green Development Across Multiple Fronts 23
Low-carbon transportation
Case: Sinoma Cement Zambia – advancing a “zero grid-power” factory to set a benchmark
for overseas green and low-carbon operations
The Company actively promotes green low-carbon transportation and increases the share of new-energy
In 2025 Sinoma Cement Zambia significantly increased investment in green energy funding and vehicles in the fleet. In 2025 the Company operated over 7000 concrete mixer trucks serving sales logistics of
technology to advance its “zero grid-power green and low-carbon project”. The initiative combines which 14.8% were new-energy models. Among loaders (wheel loaders) new-energy vehicles accounted for
waste-heat power generation with PV systems to supply 100% of the plant’s electricity needs from 17.3%.renewable sources establishing a “zero grid-power” factory. Upon completion the project will deliver
an average of 110 million kWh of green electricity annually—fully covering the site’s power demand. It is
expected to save approximately 32 thousand tonnes of standard coal and reduce CO2 emissions by about Green office
62 thousand tonnes per year positioning Sinoma Cement Zambia as a benchmark for green low-carbon
operations among enterprises overseas.Tianshan Material has always been dedicated to green office practices and integrates energy conservation and
emissions reduction into daily operations to build a resource-efficient environmentally friendly workplace. Tostandardize green office practices the Company has revised and implemented the “Management Measures forAdministration Affairs” which clearly outline energy-saving requirements in areas such as meeting
management office environment setup and office supplies consumption:* Launch “5S Standardized* Promote remote video or Management” to promote * Advance paperless
teleconference to cut down the reuse of discarded operations through digital
on travel and resource use documents and paper workflows
recycling
In terms of green operations the Company actively fosters a culture of energy efficiency across all employees:
* Energy conservation: Optimize electricity management in offices and production
Energy areas—ensuring lights are turned off when unoccupied shutting down non-
conservation essential equipment after work hours or as appropriate and raising employee
awareness of energy conservation to minimize unnecessary standby power use
* Designate parking areas for bicycles and electric bicycles install charging stations
Green commuting for new energy vehicles and encourage employees to practice low-carbon travel
to reduce transportation-related carbon emissions
Canteen energy
* Post “tip” signs of saving food water and electricity; use energy-efficient
conservation
stoves and promote reusable tableware to cut down on single-use items
management2025 Environmental Social and Governance (ESG) Report Advancing Green Development Across Multiple Fronts 24
Metrics and Targets Developing Circular Economy
2025 targets Target progress in 2025 Future outlook Tianshan Material continues to promote the development of the circular economy and remains committed to
minimizing the dependence on natural resources. The Company continues to increase the share of alternative raw
Comprehensive energy Target for comprehensive Clinker energy consumption materials and fuels promotes water recycling technologies and enhances resource efficiency—effectively
consumption of clinker clinker energy consumption has down 5% YoY vs 2025 reducing the environmental impact of production and operations.decreased by 8.8% from 2021 been achieved
Use of Alternative Materials
The proportion of cement Target for cement clinker Share of cement clinker capacity
clinker production capacity that capacity meeting energy meeting energy efficiency
reaches the energy efficiency efficiency benchmarks achieved benchmarks reached 80% Tianshan Material actively promotes the use of alternative raw materials and fuels. This initiative aims to reduce
benchmark level exceeds 40% dependence on traditional resources and lower carbon emissions and environmental pollution.Use of alternative raw materials
The Company uses a diverse range of alternative raw materials including calcium industrial solid wastes
including calcium carbide slag steel slag yellow phosphorus slag fly ash coal slag copper slag magnesium
slag sulfuric acid slag and red mud and is steadily increasing the raw material substitution rate. During the year
the Company conducted a series of initiatives for the comprehensive utilization of resources mainly by adopting
alternative raw materials such as fly ash mineral powder and calcium carbide slag.The Company has set clear circular economy management targets and plans. It is expected that the substitution
rate of raw materials will reach 3% by 2030 respectively.* Approximately 60% of CO2 from clinker production is generated from the raw material
(i.e. limestone) while alternative raw materials can significantly reduce CO2 emissions
from carbonate decomposition. The Company uses alternative raw materials such as
Clinker waste residue after high-temperature calcination and materials that clearly do not
production contain calcium carbonate and magnesium carbonate. The main types include calcium
carbide slag magnesium slag paper making white mud sulfuric acid slag coal ash
and red mud. In 2025 the Company consumed a total of 9.114 million tonnes of
alternative raw materials reducing carbon dioxide emissions by 2.28 million tonnes.* The Company adopts mineral admixtures such as fly ash and mineral powder and
Concrete optimizes their proportions with additive trial blending to improve concrete
production performance and reduce environmental pollution. In the year the Company used 5.90
million tonnes of fly ash and 4.65 million tonnes of mineral powder.Aggregate * We use low-grade limestone and waste stone for aggregate production to achieve
production 100% resource utilization.Cement * The artificial sand and rock flour produced in the processing of the aggregate production line are reutilized by the Company in the cement production line which can
production lower the production cost and improve efficiency.2025 Environmental Social and Governance (ESG) Report Advancing Green Development Across Multiple Fronts 25
Use of alternative fuels
The Company utilizes a diverse range of alternative fuels including refuse-derived fuel (RDF)5 biomass plastic In 2025 our key performance indicators of alternative materials usage are as follows:
waste waste tires and petroleum coke.The Company strengthens research on regional alternative resources. By deepening strategic collaboration with
enterprises within the group the Company has established mechanisms for synergistic innovation and resource Key Performance Indicator Unit Data in 2025
integration. This initiative focuses on developing alternative technologies and equipment building a collection
storage and supply system for green alternative fuel such as RDF and biomass fuels and advancing Percentage of alternative fuels % 16.5
decarbonization efforts through the promotion and application of alternative fuels. Furthermore the Company
explores pathways for the large-scale application of hydrogen fuel in the cement industry and advances end-use
demonstration projects for high-percentage alternative fuel substitution in due course. By the end of 2025 the Percentage of clinker in cement % 72.88
Company had cumulatively commissioned 121 alternative fuel production lines achieving a GHG reduction of
3.373 million tonnes of CO2 equivalent and delivering substantial carbon reduction outcomes. Percentage of alternative raw materials in cement % 2.80
Percentage of alternative raw materials in concrete % 35.80
Case: Sinoma Cement Tunisia — Localized innovation from “waste” to “green thermalenergy”
Sinoma Cement Tunisia has pioneered a localized alternative fuel innovation pathway driven by the dual
engines of “agricultural recycling + urban mining”. This involves the utilization of biomass fuel derived
from local agricultural waste such as olive residue while collaborating with municipal authorities to Case: Jiande South built a domestically leading alternative fuel production line
collect and process discarded textiles at no cost for use as alternative fuel. This initiative has established a
circular economy ecosystem that generates mutual benefits for both the enterprise and the government.The project has achieved multi-dimensional improvements in environmental economic and social In March 2025 Jiande South successfully completed and commenced operations of a domestically leading
benefits.In 2025 Sinoma Cement Tunisia utilized a total of 32730 tonnes of olive residue biomass 1152 alternative fuel production line with a design capacity of 240 t/d. This production line can efficiently utilize
tonnes of wood chip biomass and 3944 tonnes of waste textiles equating to an energy saving of 18406 approximately 72 thousand tonnes of alternative fuels annually reduce coal consumption by 53 thousandtonnes of standard coal. The project was recognized locally as a “Municipal Solid Waste Resource tonnes and decrease carbon dioxide emissions by 107.4 thousand tonnes.Utilization Demonstration Cooperation Project”.Following assessment by a China-German expert evaluation committee which includes the China Building
Materials Federation the Jiande South Alternative Fuel Processing Center and its Alternative Fuel
Utilization Project have been designated as one of the pilot initiative in the cement industry for the
“China-Germany Key Sectors Energy Efficiency Enhancement Demonstration Project” in order to
Case: Fujian Sanming Southern— Efficient application of waste textile-based alternative fuel advance the implementation of the project’s initiatives.Fujian Sanming Southern actively establishes an alternative fuel application system centered on waste
textile materials characterized by technological reliability standardized management and efficient
collaboration thereby reducing resource dependency. In 2025 Fujian Sanming Southern cumulatively
utilized 35 thousand tonnes of waste textile-based alternative fuel generating an annual benefit of RMB
2.64 million. The standard coal consumption decreased by 11.0 kg/t compared to the same period in 2024
achieving a thermal substitution rate of approximately 28%. This initiative resulted in an annual reduction
of 56 thousand tonnes of CO2 emissions.
5 RDF (refuse-derived fuel) is the combustible portion extracted from urban solid wastes and is applied for energy recovery after processing.2025 Environmental Social and Governance (ESG) Report Advancing Green Development Across Multiple Fronts 26
Recycling of Water Resources Innovating Low-Carbon Products
Tianshan Material places high priority on the efficient utilization of water resources. By establishing circulating
water systems and promoting the use of wastewater the Company advances the recycling of water resources To address the challenges posed by climate change and the “dual carbon” goals strategy and in response to
and enhances water use efficiency. the trend of green transition Tianshan Material continuously develops and promotes green and low-carbon
products and services that meet market demands in a bid to provide customers with sustainable and innovative
solutions.In terms of circulating water system construction
* The Company has increased investment to build a highly efficient circulating cooling water system Diverse Products
which realizes closed-circuit recycling of production water except evaporation and natural loss
greatly reducing the need for fresh water supply. Additionally through comprehensive treatment of
circulating water the Company enhances water quality and decreases the consumption of Tianshan Material focuses on cement products and concrete products actively building a diversified low-carbon
circulating water. product portfolio. The Company strengthens quality control of raw materials and management of the mixture
proportion technology improves the quality of aggregates and cement optimizes the use of concrete
cementitious materials and actively explores low-carbon pathways for concrete and cement products.In terms of the utilization of sewage
* The Company continues to upgrade and renovate the wastewater treatment station to enhance the Low-carbon cement Low-carbon concrete
sewage treatment capacity achieving 100% comprehensive utilization of wastewater after it meets
discharge standards. The Company recycles the circulating water of the waste heat power system
and reverse osmosis concentrated water which after treatment are used for factory greening dust * Cut down clinker usage: Cut down * Carbon mineralization foam concrete: By replacing clinker usage by accelerating the R&D traditional steam curing with CO2 mineralization
suppression in mines and other applications. Additionally the Company has implemented a and promotion of new low-calcium curing technology this method directly sequesters
rainwater collection system which gathers and treats rainwater for floor cleaning and landscape clinkers raising their proportion in the CO2 from industrial flue gases achieving a carbon
irrigation. product mix and lessening the overall fixation rate of 12%–20%. This product combines
carbon footprint. lightweight high-strength and thermal insulation
* Optimize clinker indicators: Optimize properties effectively promoting the efficient
clinker indicators by the lime saturation application of clean energy in building heating and
In 2025 the Company achieved a water reuse rate of 94.54% exceeding the annual target of ≥90%. Concurrently factor (LSF) of general silicate cement
cooling systems.the Company has established a new water conservation management objective of “maintaining the water reuse clinker and balancing carbon emission * Carbon mineralization blocks: These blocks can be intensity while ensuring product cured under normal temperature and pressurerate ≥90% in the factories and decreasing water consumption per unit of product by 0.1% year-on-year” to performance. conditions with each cubic meter capable of
further advance its water conservation and consumption reduction efforts. * Special cement6 : Special cement sequestering approximately 50–80 kg of CO2. The full
possesses strong stability and durability production cycle reduces carbon emissions by 40–60%
enabling reduced material usage in compared to traditional blocks contributing to carbon
construction and lowering energy reduction across the entire supply chain.Case: Hami Tianshan recognized as a “Water-Efficient Enterprise” in the Xinjiang Uygur consumption and CO2 emissions during * Carbon mineralization solid waste-based panels:
Autonomous Region production. The chemical reactions Utilizing CO2 from kiln flue gas and solid waste
during its hardening process can resources to produce lightweight high-strength fire-
resistant and moisture-resistant green panels with a
In 2025 Hami Tianshan was listed among the “Water-Efficient Enterprises” in the industrial sector of the effectively absorb carbon dioxide from the atmosphere demonstrating carbon solid waste utilization rate exceeding 90% and a
Xinjiang Uygur Autonomous Region. In response to local water scarcity challenges Hami Tianshan capture potential. carbon fixation rate exceeding 15% in the panels.adopted air-cooled island technology to replace traditional water cooling in its waste heat power
generation cooling system achieving a water saving rate of 80%–90%. Concurrently Hami Tianshan
established a supporting circulating water system and wastewater treatment facilities constructing a
closed-loop system for “production water recycling and wastewater resource utilization”. After
purification both production and domestic wastewater are fully reused for factory greening road
cleaning and other purposes realizing “zero discharge” of pollutants and effluents. This initiative
saves over RMB 100 thousand annually in operational costs. 6 Special cement refers to cement species that have certain special performance or functions over general purpose cement and are suitable for
specific purposes or can play special functions and assign special functions to the building.2025 Environmental Social and Governance (ESG) Report Advancing Green Development Across Multiple Fronts 27
Low-carbon product certification Green Solutions
In 2025 the Company obtained low-carbon product certification for three products all from Xuzhou China United The company has launched a series of basic building materials products new material products and engineering
Cement Co. Ltd.: 42.5R-grade ordinary Portland cement 42.5-grade ordinary Portland cement and 32.5-grade service technologies with green and low-carbon attributes which promote the development of a low-carbon
fly ash Portland cement. Additionally six member enterprises underwent carbon footprint assessments. By the society. These products help enhance the overall sustainable development of society. By 2025 the company will
end of 2025 Tianshan Material had cumulatively obtained the China Green Building Materials Product select and promote a number of green and low-carbon technological achievements in three major fields - new
Certification for had cumulatively obtained low-carbon certification for 80 member enterprises. technologies new products and new equipment. Among them low-carbon cementitious materials oxygen-
burning coupled with carbon capture efficient classification grinding hydrogen storage cylinders high-
performance fibers and vacuum insulation panels among others have been included in the national
achievement promotion directory.In 2025 the Company sold:
special cement single-purpose cement7 clinker certified as low-carbon
2.67 17.37 58.95 thousand
million tonnes million tonnes tonnes
Category Products Certifications
Various fly ash Portland cement ordinary Portland
China Low-Carbon
cement composite Portland cement general-purpose
Product Certification
cement clinker
Various cement precast concrete ordinary concrete China Green Building
Green wet-mix mortar aggregates manufactured sand Materials Certification
Certified
Products
Various ordinary Portland cement composite Portland Green Design Product
cement general-purpose cement clinker Certification
Various ordinary Portland cement low-carbon cement Green Building Product
general-purpose cement clinker Certification
7 Single-purpose cement refers to those with special treatment or addition of special materials in terms of raw material ratio and production
process to meet specific engineering needs and solve specific problems.2025 Environmental Social and Governance (ESG) Report Advancing Green Development Across Multiple Fronts 28
Construction of Green Factories
Hefei Southern: It has successively established systems including an intelligent optimization control
platform a digital production management and control platform and an intelligent equipment operation
The Company gives priority to the high-end intelligent and green transition of production and service. and maintenance platform. These initiatives have achieved intelligent decision-making at the system level
We continue to optimize business layout and resource allocation in production and facilitate the and real-time autonomous optimization control for production lines significantly reducing errors and
green and intelligent development of the production system. The Company establishes a joint working redundancies associated with manual operations and minimizing fluctuations in energy consumption.group for intelligent construction and compiles and perfects the “Intelligent Factory Construction The total installed area of monocrystalline silicon panels across the plant site is 6109.45 m2 generatingGuide” the “Intelligent Factory Evaluation Standard” and other guiding documents which lay a an annual electricity output of 1268.6 thousand kWh and achieving a total annual reduction in carbon
solid foundation for the implementation of intelligent and green projects to ensure their efficient dioxide emissions of 912.48 tonnes. Through the innovative application of alternative fuel injection
implementation standardized operation and promotion. technology for kiln incineration the facility utilizes 81.12 thousand tonnes of alternative fuels annually
In 2025 Tianshan Material added one new national green factory bringing its cumulative total of such which saves 52.7 thousand tonnes of coal consumption and reduces CO2 emissions by 107 thousand tonnes per year demonstrating significant energy conservation and emission reduction benefits.factories to 53.Midong Tianshan: It is the first enterprise in China to achieve 100% substitution of limestone with carbide
slag in cement production. Annually it utilizes approximately 1.6 million tonnes of industrial solid wastesuch as carbide slag driving the transformation of the cement industry from a “resource-consumptivemodel” to a “resource-regenerative model”.Kuche Tianshan: It continues to advance the landscaping transformation of its factory premises having
cumulatively planted over 20000 trees and cultivated more than 80000 square meters of alfalfa and turf.The green coverage rate now stands at 36% underscoring its commitment to developing a modern green
factory that is both conducive to industrial operations and sustainable living.Yili Tianshan: It has implemented key projects including fully enclosed conveyor belt corridors limestone
storage shed construction automatic vehicle cleaning systems and ultra-low emission retrofits. The
company is vigorously advancing ecological development within its plant premises having cumulatively
established 53 thousand square meters of turf and planted over 70 thousand trees of various species. The
green coverage rate has now reached 37.2%.2025 Environmental Social and Governance (ESG) Report Advancing Green Development Across Multiple Fronts 29
Emission Compliance Management Environmental Awareness Enhancement
This year Tianshan Material has been actively promoting environmental management awareness-building and
Tianshan Material attaches great importance to emission compliance management. The Company has training across all levels of the Company. These training sessions comprehensively enhance the environmental
established and refined its environmental management system formulated internal management regulations awareness and green development capabilities of all our employees. The Company has organized multi-level
and implemented diversified emission and waste reduction measures to ensure that all emission activities and comprehensive training and awareness-building activities that cover key areas such as environmental
throughout its operations comply with relevant laws and standards. In the year the Company did not experience management water efficiency management waste reduction and energy efficiency management.any pollutant discharge incidents that had adverse effects on the health of employees or community residents
nor was the Company subject to any significant administrative penalties or criminal liability as a result.* From May to August 2025 the Company conducted 10 in-person training sessions on environmental
Environmental Management System Improvement online monitoring across its regional companies. The training targeted 328 participants including dedicated environmental management personnel from regional companies and cement kiln
companies as well as technical backbone staff responsible for CEMS management. The training
covered both theoretical knowledge and practical skills in environmental monitoring significantly
Tianshan Material constantly enhances its environmental management system accelerates the realization of the boosting capabilities in environmental data management and online monitoring.“four shifts” of environmental management concepts and fully promotes the certification of the environmental
management system and the occupational health and safety management system. In 2025 the Company * Leveraging Tianshan Material’s “Aerial Classroom” platform the Company conducted six sessions of
achieved ISO 14001 environmental management system certification for 394 factories with certification coverage environmental protection training. Participants included personnel from production technology
rate of all operating subsidiaries reaching 100%. departments safety and environmental protection divisions of regional companies and member
enterprises as well as relevant stakeholders. These training sessions enhanced employees’The Company has established internal management policies such as the “Pollution Prevention and Control understanding of environmental requirements and strengthened their environmental awareness.Management System” and the “Pollutant Discharge Permit Management System”. It has also issued the
“Environmental Policy Statement” applicable to the headquarters subsidiaries and suppliers which clarifies
the management responsibilities at all levels. The Board of Directors regularly oversees the implementation of the
policy. In 2025 to establish a more robust environment-related risk management and prevention system the
Company revised policies such as the “Environmental Emergency Management System” and the “Measures for In addition on occasions like National Low-carbon Day the Company organized a range of activities such asthe Management of Ecological and Environmental Protection Incidents”. These revisions optimized the processes special lectures low-carbon initiative signature campaigns and environmental photography contests. These
for environmental risk assessment hidden danger investigation and emergency response. Additionally the activities integrated education with fun boosting employees’ sense of participation and environmentalCompany formulated the “Measures of Tianshan Material for the Management of Overseas Enterprise Production responsibility.Safety (Version 1.0)” further clarifying reporting procedures and handling principles for emergencies involving
overseas operations.The Company has implemented a closed-loop management model that combines “supervision mutualinspection and self-inspection” to ensure that environmental protection work is fully covered and continuously
improved. In 2025 Tianshan Material faced two administrative penalties from environmental and other relevant
authorities due to environmental incidents with total fines amounting to approximately RMB 510 thousand. These
penalties are primarily centered on failure to verify the technical capabilities of parties handling solid waste and
improper disposal practices as well as excessive ammonia escape emissions. By the end of the reporting period
the Company completed the overall rectifications and accountability measures according to relevant rules which
had no material impact on our production and operation activities.Training Activities for the "National Low-Carbon Day2025 Environmental Social and Governance (ESG) Report Advancing Green Development Across Multiple Fronts 30
More Robust Waste Gas Management
Tianshan Material’s main waste gas pollutants include industry-specific pollutants such as nitrogen oxides (NOx) The Company regularly conducts full-coverage air quality monitoring in on-site work areas key pollutant
sulfur dioxide (SO2) particulate matter (PM) as well as controlled substances such as mercury specified in the discharge points and surrounding areas of the factory boundary. For organized emissions key pollutants such as
“Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal”. particulate matter sulfur dioxide and nitrogen oxides are monitored while for unorganized emissions key
The Company strictly implements the Pollutant Discharge Permit management system and has formulated the pollutants such as ammonia and total suspended particulates (TSP) are monitored achieving a 100% monitoring
“Key Periods of Atmospheric Pollution Control Work Plan”. According to the ultra-low emission standards and coverage rate. Through regular monitoring and precise control the Company ensures stable compliance with
implementation progress requirements of each region the Company has accelerated the ultra-low emission pollutant emission standards effectively protects employees' occupational health and prevents adverse impacts
transformation of cement enterprises. In 2025 the Company successively implemented multiple improvement on the surrounding community environment from production activities.projects including the enclosure of material storage sheds sealing of belt conveyor corridors upgrading of dust
removal facilities installation of spray dust suppression systems enhancement of the plant-wide environmental
management and control platform as well as upgrades to vehicle wash platforms and access control systems.These initiatives have enabled compliance with ultra-low emission standards. By the end of 2025 the Company Case: CUCC Taishan drives green production foundations with intelligent management and
had completed ultra-low emission retrofitting for 131 cement kiln production lines achieving an organized control
retrofitting completion rate of approximately 74%. This year Yicheng South completed the full-process ultra-low
emission retrofitting becoming the second cement kiln enterprise in China to pass on-site acceptance evaluation. Relying on intelligent equipment and key technological transformations CUCC Taishan has established a
To continuously monitor the management of exhaust gas emissions the Company regularly conducts exhaust gas green production model supporting the low-carbon transition of the industry. Advancing green
management audits invests in independent development and introduction of advanced environmental protection production upgrades through intelligent production line equipment enables comprehensive smartprocesses which greatly cut down pollution emissions. Meanwhile the Company signed the “Eco-environmental management of energy quality equipment production and logistics. Priority is given to low-sulfur rawProtection Goal Responsibility Statement” with each regional company stipulating that the nitrogen oxide combustion materials while implementing technological transformations such as the five-stage to six-
emission intensity per tonne of clinker shall not exceed the level recorded during the same period in 2024. By the stage preheater upgrade precise deep self-denitrification and conversion from electrostatic precipitators
end of 2025 through emission reduction measures such as ultra-low emission transformation control of sulfur to high-efficiency bag dust collectors. These measures effectively control organized emissions at the
content of raw combustion materials and upgrading of existing dust collection equipment emissions of clinker source.NOx and SO2 had decreased by 6.2% and 0.5% respectively. All emission targets were achieved in the year. The series of initiatives implemented by CUCC Taishan have yielded significant results effectively reducing
energy consumption in cement clinker production to meet the national first-tier energy efficiency
Exhaust emission management measures standards while simultaneously lowering nitrogen oxide and carbon emissions achieving a synergistic effect in pollution reduction and carbon reduction.Ultra-low emission * Conduct emission reduction technology transformation for new
and emission dry-process cement clinker line to reduce NOx and ammonia
reduction technology escape emission concentration
Dust collection bag * Implement bag material upgrade and optimize production
material upgrade lines to significantly reduce PM emissions
* Utilizing low-nitrogen burners staged combustion and other
Staged combustion
technology upgrade technologies to effectively reduce nitrogen oxide concentration
in flue gas and lower exhaust emissions
* Introduce compound desulfurization technology to effectively
Desulfurization
transformation control pollutant emission concentration while ensuring the
stability of kiln system operation2025 Environmental Social and Governance (ESG) Report Advancing Green Development Across Multiple Fronts 31
Strict Wastewater Management The Company discharges wastewater in strict accordance with the pollutant discharge permit standards. In the year the Company built corresponding facilities for centralized sewage processing and automatic monitoring
equipment based on requirements of environmental impact assessment and sewage discharge license. The
Tianshan Material’s main pollutants in wastewater discharged are industry-specific pollutants reflected by Company also networked with the monitoring equipment of the ecological and environmental protection
indicators such as chemical oxygen demand (COD) and ammonia nitrogen content. The Company keeps a authorities to achieve real-time monitoring of sewage data. Meanwhile we have explicitly prohibited setting up
watchful eye on the water use and indicator management in the production process and applies digital tools to sewage outfalls in the protection zone of drinking water sources. All other established sewage outfalls will
monitor water consumption data in real time so as to minimize water waste. discharge sewage after processing in strict accordance with discharge requirements.In 2025 all member enterprises of the Company implemented technical measures such as the installation of
Wastewater drainage management wastewater treatment facilities achieving near-zero wastewater discharge.The Company strictly abides by the principle of “clean water and sewage diversion rainwater and sewage Case: Sanshi Material — An automated wastewater concentration monitoring and controlleddiversion separate collection and processing by quality” to ensure the scientific and environmental recycling treatment system assisting the enterprise in advancing toward new heights of zero
management of wastewater discharges. discharge
Sanshi Material has implemented an automated wastewater concentration monitoring and controlled
recycling treatment system exploring new pathways for the utilization of wastewater. Sanshi Material
By enhancing management systems and equipment control industrial developed ultrasonic sensors with high sensitivity and stability to monitor solid content of wastewater in
wastewater and domestic sewage are segregated at the source ensuring real time. Furthermore by leveraging machine learning technology Sanshi Material built intelligent
Clean water that treated wastewater meets discharge standards or is recycled. In 2025 control algorithms. Following multi-scenario pilot testing and parameter optimization the system’s
and sewage all factories of the Company have been equipped with processing equipment responsiveness and monitoring accuracy were effectively enhanced.diversion for domestic wastewater and all processed wastewater is reused. The system dynamically adjusts wastewater concentration based on production conditions synchronizes
Wastewater of washing tanks from enterprises under the Company operating with concrete production equipment to align with water demand and achieves 100% wastewater
commercial concrete business can be reused after collection and processing. recycling. By eliminating traditional filter presses the goal of zero discharge for both wastewater and
solid waste is accomplished. This system has been comprehensively promoted and applied across the
Company’s member enterprises achieving a win-win outcome in both environmental and economic
benefits.The drainage system is rationally planned to ensure separate discharge of
rainwater and sewage. Prior to connecting rainwater and sewage pipelines
Rainwater to the municipal network water quality monitoring wells are installed to
and sewage track rainwater collection and discharge in real time. In 2025 the Company
diversion carried out special management for unorganized emissions and diversion of Water quality monitoring and management
rainwater and sewage and all potential risks investigated were rectified
enhancing the management of rainwater and sewage diversion.To ensure water safety the Company has established a sound water quality monitoring and management
mechanism. Based on this mechanism the Company conducts regular water quality testing to ensure the
sustainable use of water resources during production and operations.In accordance with environmental impact assessment and pollutant
discharge permit requirements the classification collection and treatment
Separate of wastewater are strictly implemented to ensure that discharge indicators Groundwater monitoring
Surface water Boiler water management
collection comply with environmental standards. Enterprises that discharge wastewater
monitoring
containing heavy metals or toxic and hazardous substances are equipped
with rainwater collection facilities. Direct discharge is strictly prohibited to * The Company * The Company * The Company employs
prevent contamination of water bodies and soil. commissions qualified periodically samples an industrial salt third-party institutions and tests production softening process to
annually to test water extracted from treat boiler water
extracted groundwater rivers sending it to reducing water
with a focus on internal and external hardness preventing
The Company taking into account the characteristics of wastewater employs verifying compliance laboratories for scaling and corrosion
Processing a range of diversified technologies including physical chemical and
with national and local analysis and testing to and ensuring efficient
by quality biological methods to effectively remove hazardous substances. The quality
standards to ensure the mitigate potential and stable operation of
of treated water is stable and meets the required standards for safe safety and reliability of water quality risks. equipment.water sources.discharge or reuse.2025 Environmental Social and Governance (ESG) Report Advancing Green Development Across Multiple Fronts 32
Reduction of water consumption To continuously enhance ecological and environmental benefits the Company launched the “zero-discharge factory” initiative exploring the green development paths of enterprises at all levels and sharing experiences in
building “zero-discharge factory”.Faced with global water shortages and environmental challenges the Company responds to the sustainable
development strategy by promoting water-saving management and technology innovation. In this way theCompany improves water use efficiency and reduces total water consumption. Case: Sinoma Anhui – Waste preprocessing technology enables “turning waste intotreasure” for resource utilization
The Company optimizes technology and upgrades equipment to reduce redundant water
Optimize consumption in production increases the proportion of recycled water usage and Sinoma Anhui with cement kiln co-disposal technology at its core drives the resource utilization of urban
Water- strengthens the recovery and reuse of water resources. In 2025 the Company adopted an waste and supports the development of local “waste-free city”.saving advanced dry-process rotary kiln cement production process which significantly reduces
processes water consumption in raw material drying and grinding. The clinker firing system was also Sinoma Anhui has pioneered a full-component disposal model for municipal solid waste utilizing
improved to lower water demand in cooling systems. advanced preprocessing technology to precisely separate waste into combustible and non-combustible
components. Combustible materials are used as alternative fuels in high-temperature cement kiln
Leveraging digital monitoring the Company tracks water use data in real time precisely calcination while non-combustible materials serve as alternative raw materials in cement production.The leachate generated during the disposal process is treated and recycled by Sinoma Anhui while the
Meticulous analyzes efficiency at each stage and promptly identifies and rectifies abnormal water use. In 2025 the Company introduced a distributed control system (DCS) into the industrial concentrated liquid is injected into the kiln for high-temperature decomposition forming a closed-loop management
of water use wastewater recycling pipeline enabling real-time online monitoring of flow rates and water treatment system. This model not only effectively addresses the challenge of waste accumulation in cities pressure status in water-using equipment and collecting precise flow data for water balance but also achieves zero waste discharge resulting in dual improvements in environmental and resource
diagrams. benefits.Cultivation of The Company conducts water-saving publicity and training across the Company strengthens
water-saving employees’ water-saving awareness advocates a water-saving mode in work and daily life
awareness and establishes a water-saving management system with the participation of all employees.Case: Huzhou Huaikan Nanfang solidly advances the construction of a “zero-dischargefactory”Stronger Waste Management Huzhou Huaikan Nanfang resolutely implements the concept that “lucid waters and lush mountains areinvaluable assets” deeply integrating resource conservation and environmental friendliness into its
production systems. Guided by an environmental policy centered on clean production source control
Tianshan Material focuses on the principles of “reduction recycling and harmless disposal” to optimize comprehensive management and compliant discharge Huzhou Huaikan Nanfang effectively promotes
processes for classification recycling and resource utilization. The Company standardizes waste separation the reduction resource recovery and safe treatment of solid waste continuously advancing the
operations in cement production to minimize resource wastage and protect the ecological environment establishment of a “zero-discharge factory”.surrounding its plants.Huzhou Huaikan Nanfang builds awareness through publicity reinforces foundations with systems and
Upholding the philosophy of “transition of cement enterprises into urban solid waste purifiers” the Company ingrains the “zero-waste” philosophy into employees’ minds. From science outreach and system
leverages cement kilns to co-dispose of domestic wastes general solid wastes and hazardous wastes. This refinement to stringent implementation of energy conservation emission reduction solid waste
treatment method offers advantages such as low processing costs strong stability land conservation and high treatment and garbage management in production Huzhou Huaikan Nanfang has established a
resource utilization rates while effectively preventing secondary pollution. Furthermore the high temperatures comprehensive full-coverage “zero-waste” management network achieving a win-win outcome for
prolonged combustion retention times and stable incineration conditions in cement kilns enable the complete both economic and environmental benefits.decomposition of organic compounds thereby preventing the formation of harmful gases such as dioxins at the
source. Simultaneously the combustion heat energy can be recovered for use in cement production and the
residual ash can be repurposed as auxiliary raw materials. This achieves zero solid waste discharge and resource
conservation. In 2025 the Company set management goals of 100% solid waste treatment rate a 2% year-on-
year reduction in total self-generated solid and hazardous waste and a comprehensive utilization rate of mining
resources of ≥85%. All of these targets have been successfully met.The Company solves the problem of industrial and urban waste disposal based on the technological progress of
solid waste consumption and resource recycling. For hazardous waste that cannot be recycled the Company
strictly follows regulations for identification classification and storage and engages qualified third parties for
high-temperature incineration or harmless landfill disposal thereby minimizing environmental and human healthrisks to the greatest extent possible. Meanwhile the Company has released the “Safety and EnvironmentalProtection Identification and Protection Standards” which clarifies the requirements for hazardous waste
management so as to ensure the standardization and traceability throughout waste management.In 2025 the Company established 52 cement kiln co-disposal production lines with an annual disposal capacity
of 5.448 million tonnes. The Company has cumulatively treated and disposed of 1.744 million tonnes of waste
effectively alleviating local environmental pollution issues caused by hazardous and solid waste.2025 Environmental Social and Governance (ESG) Report Advancing Green Development Across Multiple Fronts 33
Biodiversity Protection
Tianshan Material’s key performance indicators related to the biodiversity assessment
in 2025
Biodiversity protection is essential for human well-being and the health of our planet. As the largest cement
company in the world the Company pursuing the concept of green development takes active actions to Key Performance Indicators Unit Data in 2025
preserve the ecological environment and avoid or minimize the pollution and damage to the ecological Total number of operation premises \ 558
conditions caused by our production and operation. We aim to make contribution to the harmonious coexistence
between man and nature. Total area of operation premises m2 107195158.52According to UN Sustainable Development Goals (UNSDGs) the “Kunming-Montreal Global Biodiversity Total number of operation premises conducting biodiversity impactFramework” adopted at the 15th meeting of the Conference of the Parties to the “Convention on Biological \ 558assessmentDiversity” the “Opinion on Further Strengthening Biodiversity Conservation” and related conventions and
opinions the Company has issued the “Policy Statement on Biodiversity” which applies to all operating regions Total area of operation premises conducting biodiversity impact
m2 107195158.52
suppliers associates and other business partners. The Company is committed to protecting biodiversity and assessment
incorporates biodiversity as a key issue in our ESG governance system. Governance and supervision fall under the
mandate of the Board’s ESG Committee with implementation delegated to the ESG Working Group and relevant Total number of operation premises with great impact on biodiversity \ 0
functional departments.Total area of operation premises with great impact on biodiversity9 m2 0
Biodiversity Risk Identification and Assessment Total number of operation premises carrying out biodiversity \ 1management plans
Total area of operation premises carrying out biodiversity
m2 4306800.56
Tianshan Material has adopted the four-step methodology—Locate Evaluate Assess Prepare (LEAP)— management plans10
recommended by the Taskforce on Nature-related Financial Disclosures (TNFD). Utilizing tools such as the
Biodiversity Impact Assessment Tool (BIA) and the Integrated Biodiversity Assessment Tool (IBAT) the Company
conducted biodiversity risk assessments across all 558 operational sites. These assessments identified
dependency factors impact factors and their transmission pathways summarized potential risks across various
business segments and formulated biodiversity conservation strategies and corresponding measures. 8 The Company defines operational sites located within a 10-kilometer radius of protected areas or key biodiversity areas as sites with high
ecological sensitivity.The analysis results indicate that among Tianshan Material’s operational sites 138 are classified as having high
9
ecological sensitivity8. The Company will prioritize assessing their impacts on surrounding habitats and species Total area of operation premises with great impact on biodiversity refers to the total area of mines and woodlands within the scope of the Company’s place of business that may have a significant impact on biodiversity.regularly identify and monitor endangered wildlife and nature reserves in the vicinity and implement effective 10 Total area of operation premises carrying out biodiversity management plans refers to the total area of the Company covered by the biodiversity
risk prevention measures. management plan.2025 Environmental Social and Governance (ESG) Report Advancing Green Development Across Multiple Fronts 34
Biodiversity Risks and Response Measures
Physical Risks Physical Risks
Water Resource Availability Risks Discharge Risks
Time Range Time Range
* Medium to long term * Short to medium term
Potential Impact on Business/Ecology Potential Impact on Business/Ecology
* The production and operation processes require stable and clean water supply from surrounding water sources (e.g.rivers lakes and groundwater). If biodiversity degradation occurs in upstream catchment areas (e.g. deforestation Solid waste Discharges into water bodies and soil
vegetation destruction wetland shrinkage) it may lead to reduced water volume declining groundwater levels * During the mining process sediments (such as silt) oil
deteriorating water quality and weakened water purification capacity. This can result in insufficient or interrupted water * Production and operation processes may generate various contaminants and blasting residues may enter water
supply and poorer water quality. This will increase the costs of water extraction water treatment and equipment types of solid waste including dust waste rock bodies through rainwater runoff leading to water
maintenance. In areas with water scarcity water extraction permits may be strictly restricted or water fees may be overburden process residues sludge heavy metals etc.Improper handling can lead to the degradation of habitat pollution (increased turbidity and chemical increased. contamination). This can adversely affect aquatic
* Simultaneously the production and operation processes require substantial water extraction which may lead to reduced ecosystems and contamination of soil and water. organisms causing suffocation toxicity and other
river flow wetland shrinkage and declining groundwater levels. This can disrupt the existing movement and natural harmful effects on their survival.recharge of surrounding water bodies thereby altering their hydrological characteristics and extent and also affecting * Production processes such as rinsing mixing and
other organisms dependent on these water bodies. cooling may generate substantial amounts of
Response Measures wastewater containing large suspended particles heavy metal ions and other toxic components and
* Scientifically regulate water usage by technology improvement and equipment upgrade to reduce unnecessary water pollutants (e.g. ammonia nitrogen alkaline
resource consumption. substances heavy metals). Improper treatment can
* Increase the proportion of rainwater harvesting and reclaimed water reuse to continuously enhance water resource lead to soil and water pollution degradation of river
recycling rates and the overall efficiency of integrated water resource management. ecosystem functions eutrophication of water bodies
and disruption of biological chains.* Construct water storage facilities carry out regular inspection tours to eliminate leaks and wastage in pipelines within the
plant area and conduct water conservation awareness campaigns.* Establish a water quality monitoring and management mechanism conduct regular water quality tests install water
purification equipment and ensure a reliable water supply.Soil Erosion Risks Response MeasuresTime Range * Centered on the principles of “reduction recycling and * Rainwater is collected via interception and drainageharmless disposal” implement green mining practices to ditches and channeled into rainwater retention ponds
* Medium to long term enhance the efficiency of processing and the utilization of for reuse in production processes. Industrial
Potential Impact on Business/Ecology waste rock resources (e.g. using industrial waste as wastewater (e.g. from mixer truck cleaning) and reclamation materials). domestic sewage are effectively separated. Industrial
* The extraction of raw materials for cement concrete and aggregates requires a stable mining ecosystem to mitigate * Optimize waste classification recycling and resource wastewater is directed to sedimentation tanks sand-
geological hazard risks. Improper land use erosion or destruction of vegetation and soil structure and loose soil texture utilization. For example utilize cement kiln co-processing gravel separators and wastewater treatment ponds
may lead to soil erosion in mining or operational areas. This can result in geological instability in the mining area to treat domestic waste solid waste and hazardous waste; before being recycled for production use. Strict
increasing the likelihood of hazards such as landslides collapses and debris flows. Severe soil erosion or other natural use the thermal energy generated from solid waste adherence to classified wastewater collection and
disasters may disrupt mining operations threaten the safety and efficiency of the mining area and cause harm to incineration for cement production and employ the treatment is enforced. Advance digital and intelligent
personnel as well as damage to equipment and facilities. The enterprise may be forced to suspend mining operations or incineration residue as supplementary raw material for construction install environmental monitoring systems
invest substantial resources in engineering reinforcement and ecological restoration. cement. Repurpose overburden waste rock for road and ensure that discharge concentrations methods
* Mining activities may lead to the destruction and removal of topsoil and vegetation resulting in the degradation of construction landfill cover or terrain restoration in mine and total volumes comply with environmental
surface ecosystems such as forests and grasslands. This can trigger soil erosion making it difficult for local flora and ecological rehabilitation. Employ dewatering treatment for standards.fauna to survive and causing long-term loss of ecological functions. Additionally these operations fragment damage or sludge to reduce its volume and use the dewatered * The Company taking into account the characteristics of
destroy biological habitats hindering migration dispersal foraging communication and mating of species reliant on sludge for land reclamation. Promptly recycle waste wastewater employs a range of diversified treatment
these habitats thereby reducing population viability and resilience. Blasting operations may induce geological concrete via sand-gravel separators or mold it into technologies to effectively remove harmful substances
disturbances causing landslides and altering local topography. These changes can threaten the survival of rock- concrete products for comprehensive utilization or reuse. and nutrients before discharge or recycling for reuse.dwelling species. Severe soil erosion may also lead to hazards such as landslides collapses and debris flows. * The Company strictly adheres to relevant regulatory
Response Measures requirements for the treatment of hazardous wastes that cannot be recycled engaging qualified third parties to
* Assess the geological conditions hydrogeological characteristics and potential risk factors of the mining area and conduct treatment. This approach aims to minimize the
implement targeted reinforcement measures. potential impact on the environment and human health.* Conduct soil erosion risk assessments and implement soil conservation measures (such as stepwise mining slopemonitoring ecological support structures and installation of retaining walls). Adhere to the principle of “practicingremediation during mining” and actively carry out the rehabilitation of topsoil and vegetation. Develop alternative raw
materials by utilizing industrial solid waste to partially replace limestone and aggregates thereby reducing reliance on
virgin mineral resources and enhancing the comprehensive utilization rate of mining resources.2025 Environmental Social and Governance (ESG) Report Advancing Green Development Across Multiple Fronts 35
Physical Risks Physical Risks
Discharge Risks Forest Canopy and Productivity Risks
Time Range Time Range
* Short to medium term * Medium to long term
Potential Impact on Business/Ecology Potential Impact on Business/Ecology
Waste gas * Vegetation (especially forest canopies) can intercept dust and air pollutants absorb noise and stabilize soil.* During the calcination and transportation processes in cement production significant amounts of Damage to the vegetation canopy can reduce forest productivity and pollution absorption capacity around
particulate matter dust as well as air pollutants such as nitrogen oxides (NOx) sulfur dioxide (SO2) our sites. This may affect the microclimate (increasing risks of drought and fire) thereby potentially raising
volatile organic compounds (VOCs) and dioxins are generated. These emissions contribute to air pollution costs for pollution control remediation and disaster prevention for cement and concrete companies.and have adverse effects on ecosystems. * Concurrently activities such as raw and auxiliary material extraction plant construction transportation road
* During the transportation of raw materials and the concrete mixing process in commercial concrete development and conveyor belt corridor establishment necessitate vegetation clearance. This leads to
enterprises as well as during drilling and blasting ore loading road transport and finished product decreased canopy coverage and impaired forest productivity.loading in aggregate enterprises significant amounts of particulate matter are generated contributing to
air pollution.Response Measures
* For organized emissions of particulate matter high-efficiency bag filters are employed for treatment. For Response Measures
unorganized emissions of particulate matter measures such as enclosed storage sheds water spraying for * Identify forests with high conservation value such as water conservation forests and habitats for
dust suppression mist spray systems for dust control and vehicle washing are implemented for endangered species and delineate areas at high risk of soil erosion to avoid project development or
management. quarrying.* Cement enterprises using raw and fuel materials with high sulfur content employ efficient hot raw meal * Actively implement strategies for alternative raw materials utilizing coal gangue coal slag construction
desulfurization technology or add desulfurizing agents to manage sulfur dioxide emissions. Alternatively waste and similar materials as recycled aggregates or substitute raw materials to reduce the destruction of
reliable desulfurization technologies are applied for retrofitting converting polluting exhaust gases into forests caused by the mining of natural sand and limestone.harmless gases effectively controlling pollutant emission concentrations while ensuring the stable
operation of the kiln system.* For nitrogen oxides the Company has accelerated the ultra-low emission transformation of cement
enterprises and implemented the upgrading and renovation projects represented by staged combustion
pipeline denitrification SNCR (Selective Non-Catalytic Reduction) SCR (Selective Catalytic Reduction) wet
desulfurization and other technical routes.Disturbance (e.g. Noise Light) Risks
Time Range
Carbon Management Risks
* Short term
Time Range
Potential Impact on Business/Ecology
* Short to medium term
Potential Impact on Business/Ecology * Blasting and heavy machinery operations generate high-intensity noise and vibrations which significantly
disrupt wildlife behavior in surrounding areas (e.g. communication foraging breeding and brooding).* The production process of cement companies generates significant GHG emissions making them one of the This may cause animals to flee their core habitats and could even lead to physiological harm or death
major sources of global carbon dioxide emissions. These emissions exacerbate climate change leading to particularly for burrowing species and birds.global warming increased frequency of extreme weather events and rising sea levels. Climate change also
disrupts species distribution food chains and habitats posing significant threats to biodiversity.Response Measures Response Measures
* Keep an eye on climate risk trends and policy changes including government regulatory requirements on
carbon emissions and environmental protection as well as industry best practices and standards. * Implement equipment upgrades and adopt contained blasting and grinding techniques to reduce noise at
the source. Measures include using low-noise motors and hydraulically driven crushers and installing
* Formulate and make continuous improvements to carbon emission goals establish and apply a carbon composite soundproof enclosures.emissions online monitoring system and strengthen carbon management capabilities.* Install sound absorption and isolation barriers within the plant area and establish green belts to mitigate
* Proactively address the challenges posed by the national carbon market through preparing for carbon noise and block strong construction lighting.market trading and engaged in research on carbon trading policies for the cement industry enhancing
carbon asset management capabilities. * Enforce transportation controls including vehicle speed limits and audible alert management within the
plant premises.* Implement a range of measures aimed at reducing carbon emissions and supporting the transition to a low-
carbon cement industry. These measures include boosting energy efficiency promoting alternative fuels
developing low-carbon cement technologies implementing carbon metering advancing carbon capture
and purification technologies and leveraging carbon dioxide utilization.2025 Environmental Social and Governance (ESG) Report Advancing Green Development Across Multiple Fronts 36
Transition Risks Transition Risks
Policy Risks Reputation Risks
Time Range Time Range
* Medium to long term * Short term
Potential Impact on Business/Ecology Potential Impact on Business/Ecology
* Regulatory requirements for biodiversity protection and disclosure are increasingly stringent. Failure to * Investors are increasingly concerned about corporate environmental performance. Poor environmental
promptly implement measures and comply with disclosure obligations may result in policy and compliance performance may erode investors’ trust and support potentially leading to higher financing costs.risks. * The public places growing emphasis on corporate environmental friendliness and sustainable operations.* The Chinese government has issued the “China National Biodiversity Conservation Strategy and Action Plan Mismanagement of environmental governance and ecological protection may result in a loss of public trust
(2023-2030)” clarifying the direction and priority tasks for future biodiversity conservation efforts and damage corporate credibility and reputation while diminishing brand value.
establishing priority areas for biodiversity protection. Furthermore adjustments to the list of endangered
species and the scope of biodiversity-sensitive zones coupled with tightening environmental policies in key Response Measures
regions such as the Yellow River Basin and the Yangtze River Economic Belt may expose factories to risks * Enhance communication with investors the public and media regarding biodiversity protection efforts.including rectification or relocation. Actively participate in biodiversity conservation initiatives to improve transparency in environmental
Response Measures governance and strengthen the Company’s influence within the industry.* Monitor policy changes actively implement biodiversity conservation measures and disclose corporate
biodiversity policies and practices in a timely and effective manner to address governmental and capital
market regulatory demands.* ntegrate biodiversity risk assessment into the Company’s overall risk management processes employing
scientific tools to identify and quantify impacts and dependencies.* Adopt management philosophy regarding ecological conservation and conduct rigorous assessments for
factory site selection and layout planning to manage key ecological functional zones nature reserves and
ecologically sensitive areas.Community Relationship Risks
Time Range
* Medium to long term
Potential Impact on Business/Ecology
* Acceptance by the local community is fundamental to the long-term operation of building materials
companies. Communities often rely on the surrounding ecosystems for their livelihoods such as clean water
sources fisheries and agricultural and forestry products as well as cultural values. Degradation of these
ecosystems leading to damage to water sources livelihoods or cultural values could trigger strong
opposition and protests from local residents. This may result in production delays shutdowns or even
closure. Public concern over ecological damage could also draw regulatory attention prompting stricter
regulations or affecting permit acquisition.* Furthermore environmental pollution and disturbances generated during production and operations
including noise light and displacement could negatively impact the daily lives and livelihoods of local
communities creating risks such as strained community relations.Response Measures
* Establish and strengthen communication and engagement with the community conduct regular public
welfare projects and maintain positive community relationships.* Collaborate on joint management and development initiatives focused on ecological conservation
environmental restoration and sanitation. Cooperate with local governments to carry out ecological
compensation.* Increase the local employment rate to support the economic and cultural development of the local
community.2025 Environmental Social and Governance (ESG) Report Advancing Green Development Across Multiple Fronts 37
Biodiversity Protection Actions
Case: International Day for Biological Diversity 2025 — visiting the Tianshan factory
Tianshan Material values the management of risks and opportunities arising from ecological and
environmental changes. Abiding by the principle of “concurrent mining and reclamation” the Huzhou Southern Mining Co. Ltd. places a strong emphasis on biodiversity conservation. Since its
Company takes practical actions to protect biodiversity and is committed to minimizing the damage establishment in 2010 the company has invested over RMB 70 million in ecological restoration across its
caused by our production and operation to the environment. mines. Adhering to the principle of “concurrent mining and reclamation” the company employs
multiple techniques such as “soil spraying mesh reinforcement and shrub planting” to achieve soil
We actively engage in the protection of natural habitats and wildlife diligently carry out ecological consolidation and rapid vegetation coverage with a vegetation survival rate exceeding 92%. Additionally
restoration and soil and water conservation at our mines and enhance the conservation and the Company selects native tree species suitable for local growth to create multi-layered and diverse
sustainable use of biological genetic resources. We manage the ecological impacts across the entire plant communities providing habitats for wildlife. Regular ecological monitoring is conducted to evaluate
product lifecycle striving to become an industry benchmark in ecological protection and green restoration and remediation plans are adjusted promptly based on the monitoring results.development and making greater contributions to global biodiversity conservation. Through ongoing ecological restoration efforts the environment around the mines of Huzhou Southern
Mining Co. Ltd. has significantly improved leading to the gradual recovery of biodiversity. To date the
company has successfully regreened an area of more than 350 thousand square meters. Over 10 species
Conservation of natural habitats and wildlife of birds have been observed and recorded an increase of 7 species compared to pre-restoration levels.Birds such as egrets and gray finches have become common inhabitants of the mining area. Meanwhile
signs of wildlife activity in shrubbery areas have increased significantly with 9 species of wildlife
During our operations at factories and mining sites we prioritize the protection of natural habitats recorded representing a 60% increase compared to pre-restoration levels.wetlands forests wildlife corridors and agricultural land to maintain habitat integrity. Therefore we
adopted mining techniques and transportation plans according to local conditions and restored native
vegetation of certain zones in plenty of projects to strengthen both biodiversity and ecosystem
resilience. The habitat conditions for indigenous species were more livable and ecological connectivity
was smoother across regions.Shanya Nanfang Cement Co. Ltd. upholds the philosophy of “dedicating efforts to building a greenharmonious and beautiful new mine” and has invested over RMB 10 million in ecological restoration at
mining sites. For slopes above +165 meters the company employs techniques such as mesh
reinforcement and thick-layer substrate spraying for regreening along with shrub planting on platforms
achieving a slope greening coverage rate of over 85%. The average shrub density exceeds 3-5 plants per
square meter with woody community vegetation coverage ranging from 50% to 70% providing suitable
habitats for birds and insects. Simultaneously the company has established an intelligent green mine
reducing primary material and fuel consumption by 0.06% increasing the utilization rate of low-grade
Animals and plants in the factory area resources by 2.3% and realizing a “zero-waste discharge” mine.2025 Environmental Social and Governance (ESG) Report Advancing Green Development Across Multiple Fronts 38
Ecological restoration and soil and water conservation of minesThe Company carries out its mine site ecological restoration in strict accordance with the “Mineral Resources Law In the year the Company effectively reduced soil erosion and ecosystem degradation in the mining area. As aof the People’s Republic of China” and the “Technical Specifications for Ecological Restoration of Mines”. This result the ecological environment and natural landscape around the mining area gradually recovered to a more
involves conducting surveys of the natural ecological regimes including the natural ecological conditions mine stable condition fostering harmonious coexistence of the mining area and the surrounding ecosystems.geological environment conditions and mine ecological status. On this basis the Company has constructed
ditches and retaining walls and launched soil and water conservation projects in mining slope areas thereby
effectively reducing the erosion of slopes by rainfall and the risk of soil erosion. In addition the Company increases
the proportion of electric mining vehicles used in mining and transporting reducing exhaust emissions and
mitigating the pollution to the surrounding environment.Case: Sichuan Golden proactively advances mine site ecological restoration
Case: Burqin Tianshan implements “revegetation measures” establishing a green mine Sichuan Golden follows the process of “slope leveling → soil improvement → vine planting → ongoingdemonstration site maintenance”. The company has invested a cumulative total of RMB 10 million in slope regreening
seedling acquisition and maintenance achieving a balance between ecological and landscape benefits.Burqin Tianshan has implemented “revegetation measures” to advance ecological restoration. The By the end of 2025 the regreened area in and around the mining areas reached nearly 153700 squarecompany constructed drainage channels and retaining walls on mine slopes to prevent soil and water meters achieving full coverage of restorable areas. Through the model of “annual restoration plan +erosion and adopted a combined model of “grasses shrubs and trees” for vegetation reconstruction. targeted measures by zone” the company has planted over 3000 trees including camellias and
Its Tuohumutai Limestone Mine successfully passed the provincial-level green mine assessment Cinnamomum japonicum and sown 13 types of grass seeds such as Lolium perenne and tall fescue
becoming a green mine demonstration site in Burqin County. absorbing approximately 56480 tonnes of carbon dioxide annually. Vegetation coverage has increasedSimultaneously the company actively organizes environmental activities such as “World Environment by more than 40% providing habitats for local birds and insects with a 20% increase in species diversityDay” events tree planting and white waste cleanup initiatives. These efforts enhance employees’ compared to pre-restoration levels. The water and soil erosion treatment rate reached 95% and theawareness of ecological protection and foster a positive atmosphere where “everyone contributes to sediment content in surface runoff decreased by 60% effectively curbing water pollution in thegreening and jointly builds a beautiful home”. surrounding areas of the mine.2025 Environmental Social and Governance (ESG) Report Advancing Green Development Across Multiple Fronts 39
Conservation and sustainable utilization of biological genetic
resources
To reduce the impact on ecosystems biological species and their habitats throughout the lifecycle of its products
the Company implements green management strategies in all aspects including product design raw material
The Company focuses on the conservation of biological genetic resources. Following the principles of sustainable procurement manufacturing transportation use and disposal. We promote the construction of green mines and
utilization and access and benefit sharing the Company carries out regular biodiversity monitoring in the mining green factories advancing the application of clean production technologies. We also introduce eco-friendly
area and around the project site to identify and protect plants and animal resources of significant ecological materials in some projects to reduce resource consumption and environmental burden.value. The Company actively participates in the early warning and management of biodiversity risks and
formulates special management programs for high-risk areas to reduce the potential impacts of its operations on
biological genetic resources. The establishment of the biological genetic resource management system has
enabled the Company to protect biodiversity through a professional and systematic approach. This approach also Case: CNBM New Materials project in Chizhou proactively avoids the core area of a natural
ensures that the habitats of key species are not significantly disturbed and promotes the sustainable utilization reserve to protect the local habitat
and long-term protection of biological genetic resources.The project of CNBM New Materials with an annual aggregate production capacity of 40 million tonnes is
based in Chizhou. The accompanying mineral product transportation corridor needs to cross the Qiu Pu
Lifecycle ecological impact management River a tributary of the Yangtze River. The relevant area is located in the core zone of the national aquatic
resources protection zone and involves the provincial ecological protection red line with high ecological
sensitivity. Based on the existing mechanisms for identifying biodiversity risks and controlling the
Guide by the red line policies for ecological and environmental protection the Company has strengthened its ecological protection red line the company actively abandoned the conventional bridge design during
management philosophy regarding ecological conservation and conducted rigorous assessments for factory site the project's preliminary feasibility study and invested approximately 50 million yuan to change to using
selection and layout planning. Where potential ecological impacts are identified within the scope of the the shield tunnel method to pass through the area protected by the ecological red line.ecological conservation red line the Company will cease operations relocate projects or decommission facilities The length of the shield tunnel of the Qiu Pu River is 1121.9 meters. It effectively avoids the construction
to ensure the integrity of ecosystems. of water-related structures in the core area of the aquatic resources reserve significantly reducing the
For operations adjacent to key ecological functional zones natural reserve and ecologically sensitive and impact on the habitat and migration of the unique fish species and other aquatic organisms in the Qiu Pu
vulnerable regions the Company has implemented a series of measures including optimizing plant layout River.minimizing disturbances to natural habitats executing vegetation restoration projects and carrying out soil and
water conservation practices to mitigate impact on surrounding ecosystems. Concurrently we conduct regular
monitoring of ecological conditions around operational sites to ensure preservation of original ecological
functions.In 2025 the Company effectively lessened ecological pressures on sensitive areas maintained stability in
surrounding ecosystems preserved ecological functions in relevant regions without significant degradation and
sustained favorable environmental quality. The Company did not initiate new production activities beyond red
line or have any operation ceased or facility decommissioned.04
Cultivating Talent Passing the Torch
Tianshan Material is committed to fostering a diverse and inclusive work environment adhering to the hiring
principles of fairness equity and transparency to ensure that all employees are respected and supported
throughout recruitment and retention processes. The Company actively safeguards the legitimate rights and
interests of employees and provides multi-tiered development support programs to facilitate mutual growth for
both employees and the Company. We prioritize the health and safety of our workforce continuously refine
communication channels and enhance employee satisfaction.* Governance * Impact Risk and Opportunity Management
* Strategy * Metrics and Targets2025 Environmental Social and Governance (ESG) Report Building a Stronghold for Talent Development 41
Governance rules and regulations on salary and dismissal recruitment and promotion equal opportunities diversity
anti-discrimination anti-harassment and other welfare benefits to regulate employment conduct such as
the “Recruitment Management Measures” and “Labor Contract Management Measures”. In 2025 the
Company recruited 1155 new employees.The Company’s Board of Directors is the highest responsible body for employee management and responsible for
final decision-making on relevant strategies. Under the Board an ESG Committee is established to oversee the The Company always adheres to the principle of fair competition and merit-based selection. We standardize
implementation of employee-related strategies review and approve employee policies monitor associated risks management procedures for hiring contract signing probationary management dismissal etc. Meanwhile
and opportunities and report regularly to the Board. At the management level the Company has established an the Company follows the principle of equality voluntariness and consensus explicitly prohibiting the
ESG Leading Group with the President serving as the group leader to coordinate and advance key tasks related employment of child labor and forced labor and eliminating forced labor. To ensure compliant employmentto employee management. For more details on the Company’s employee management please refer to the “ESG we require all new employees to provide genuine accurate and valid personal information upon joining.Governance Structure” section of this report. The Company conducts stringent verification of such information to ensure that they are 18 years old or
above. Candidates whose information is found to be false will not be hired. In addition the Company signs
labor contracts or agreements with flexible employment personnel in accordance with laws clarifying the
rights and obligations of both parties to ensure that their legitimate rights and interests are protected. In the
Strategy year the Company had no violations of employment regulations such as child labor or forced labor.In 2025 the Company prepared and released the “Campus Recruitment Management Measures” and the
“2026 Campus Recruitment Program” to clarify the recruitment process and responsibilities. To enhance
the efficiency and quality of talent recruitment and create more job opportunities the Company has
The Company implements a “talent-driven enterprise” strategy dedicated to fostering the common implemented the following measures:
development of the Company and employees. While striving to become a leading player within the industry the
Company also provides employees with a healthy safe and comfortable workplace to improve employees’ well-
being and sense of belonging. For more details on the impacts risks and opportunities that employees may
present to the Company please refer to the “Double Materiality Assessment” section of this report. To overcome geographical constraints and enhance both the reach and
This year the Company continued to strengthen talent development and employee care. We invested RMB 35.39 fairness of recruitment Tianshan Material has fully advanced the online
million in employee training aiming to enhance the professional skills and overall competencies of our transformation of campus recruitment. Through a digital recruitment platform
workforce. Concurrently the Company has taken concrete steps to support employees in need with Implementing full the entire procedure — from resume collection qualification screening
approximately RMB 1972700 expended on providing assistance and visiting special or disadvantaged online and digital assessment to interviews — is conducted online. Qualification review
employees. recruitment process requirements are strictly enforced to ensure an open and transparent process
Impact Risk and Opportunity To improve the scientific rigor and comprehensiveness of talent evaluation Tianshan Material has supplemented its existing screening mechanism with
psychological and basic logical assessments integrating them with
Management Building a professional knowledge tests to form a multi-dimensional evaluation
multi-dimensional framework that covers professional competence thinking ability and
assessment system psychological state.Employee Recruitment and Retention
By introducing technologies such as AI-based resume processing AI-based
interviews and AI-powered multi-modal competency analysis the Company
Recruitment and retention has implemented a multi-dimensional assessment system focusing on
“professional skills + competencies + thinking + psychological fitness”. This
Tianshan Material abides by the “Labor Law of the People’s Republic of China” the “Law of the People’s Empowering approach significantly improves job-candidate matching accuracy and drivesRepublic of China on Promotion of Employment” and other laws and regulations. We also advocate assessment triple improvements in campus recruitment “efficiency quality andinternational initiatives for the protection of human rights such as the International Labor Organization implementation with experience” thereby strengthening employer brand development.Convention and the United Nations Convention on Human Rights. Moreover we have established internal AI technology2025 Environmental Social and Governance (ESG) Report Building a Stronghold for Talent Development 42
Diversity equity and inclusion
Human rights risk assessment
In the year Tianshan Material strictly abided by the “Policy Statement of Human Rights” (“Policy ofHuman Rights”) and other internal policies. This statement covers the operations of the Company and its
subsidiaries suppliers and other partners. The Policy of Human Rights includes the Company’s commitment In order to ensure the effective implementation of the Policy of Human Rights Tianshan Material regularlyto adhere to all internationally recognized human rights principles as set forth in the “United Nations identifies and assesses potential human rights risks. The scope of identification covers its own operationUniversal Declaration of Human Rights” the “Declaration on the Protection of Human Rights” and the upstream and downstream supply chain as well as new businesses (mergers and acquisitions and
core conventions of the International Labor Organization. In the Policy of Human Rights the Company also associates). Topics contain forced labor child labor freedom of association collective bargaining
upholds diversity in employment and opposes discrimination guarantees equal pay for equal work and discrimination and equal pay for equal work and involve a variety of groups including employees
respects freedom of association for employees. women and children original inhabitants migrant workers contract workers and local communities. On
an annual basis we review the effectiveness of human rights management in accordance with the
Tianshan Material explicitly prohibits harassment (including sexual harassment) and discriminatory “Policy of Human Rights” set targets and based on these continuously improve management
behavior in the “Policy of Human Rights”. Any employee who experiences harassment or discrimination capabilities. If violations of the “Policy of Human Rights” such as child labor or forced labor are
can lodge a complaint by submitting a letter to the suggestion box or reporting the situation directly to the discovered we will immediately report them to the Human Resources Department for cause trace and
relevant leaders of the Human Resources Department either in writing or verbally. The Company will conduct a comprehensive investigation. Following the investigation the Company will communicate with
organize the Human Resources Department to conduct a thorough investigation in collaboration with the those responsible to find solutions including providing compensation in accordance with laws and
Disciplinary Inspection Department. Once the investigation is completed the complainant will be provided regulations and will impose administrative penalties on the violators. They are also required to
with a response either verbally or in writing. participate in training on respecting employees’ rights and interests to prevent recurrence.Tianshan Material places a high priority on safeguarding the rights and interests of female employees. We
provide equal opportunities and treatment for women in key areas such as hiring training and promotion
and ensure equal pay for equal work. We also encourage and support female employees to develop their Communication and engagement
leadership and take up management positions. In the year the Company and all its subsidiaries had a total
of 925 senior managers among which female managers were 62 accounting for up to 6.7%. Tianshan Material continues to improve the democratic management system in enterprises with the
workers’ representatives congress as the core. The Company strengthens the establishment and
development of trade unions at all levels protecting employees’ rights to know to participate to be heard
and to oversee. This ensures smooth feedback for employees’ opinions and suggestions. In the year the
Tianshan Material joins UN Women Company ensured the participation of employees in the decision making and management of daily
operations through the following ways:
The Company has appointed worker directors in accordance with the law.Appointment of
worker directors Their rights include listening to the opinions and suggestions of the In 2025 Tianshan Material formally became a workers representing them in exercising their rights to participate to besignatory of the “United Nations Women’s heard and to oversee.Empowerment Principles” (WEPs) integrating
gender equality and women’s workplace
empowerment as core elements of its
sustainable development strategy. Through The Company has established trade unions equipped them with
ongoing fair recruitment equal pay for equal corresponding staffs to carry out work safeguarding employee rights and
work leadership development and a variety interests. In January 2025 the Company convened the Second Session of
of women-focused welfare and care the First Workers’ Representatives Congress. Following strict democratic
initiatives the Company promotes inclusive Improvement of
trade unions procedures the congress elected 1 worker director to the Ninth Board of practices and creates broader development Directors and 2 worker supervisors to the Board of Supervisors. This
platforms for female employees. structurally safeguards the right of employees to participate in corporate
governance. In the year the trade unions had 49934 employees with
union membership rate of 97.1%.2025 Environmental Social and Governance (ESG) Report Building a Stronghold for Talent Development 43and the “Implementation Measures for Annual Performance Evaluation of Departments and Employees atHeadquarters”. Building on these documents the Company has set up a multilevel and grade-based
Establishment The Company has established and implemented a mechanism for performance management system using a variety of methods to manage and evaluate employees’ performance.of policy communicating democratic management policies. This strengthens the The Company pays salaries to employees in full and on time based on their positions job performance and thecommunication Company’s democratic management and ensures the full Company’s salary policies. In the year the Company formulated and implemented the “Salary Standardsmechanism implementation of all democratic management requirements. Optimization Plan for Skill-Based Employees” continuously refining the performance-oriented salary distribution
mechanism.The Company has set up the workers’ representatives congress and
Implementation held annual congress meetings to report to the representatives on the * The manager-level personnel are subject to the tenure system and contract-based
of the workers’ production and operation of the Company. In addition the Company management and sign the Letter of Responsibility for Business Performance
representatives collects opinions and suggestions from all employees at the meetings. during the Term Letter of Responsibility for Annual Business Performance and
congress The business departments concerned then make sure that the opinions Job Appointment Agreement. Their tenure and annual business performance Manager-level
expressed and suggestions made are implemented. personnel of the evaluation are implemented in accordance with the signed Letter of Responsibility
Company for Business Performance with evaluation indicators divided into organizational
and individual indicators.The Company discloses major corporate matters and various matters
Improvement of
factory affairs involving the interests of employees in a lawful timely truthful and * The department heads at the Company’s headquarters are subject to annual
disclosure scientific manner and guarantees employees’ rights to know about evaluations with results contingent upon annual evaluation results the
important matters. completion of annual department KPIs debriefing review and department
satisfaction.* The department heads of regional companies and member enterprises are
Middle-level evaluated monthly or annually by their respective companies based on functional
cadres and
employees of the divisions key work arrangements and established evaluation methods.Company * Other personnel are evaluated monthly or annually by their respective
departments based on key departmental tasks job responsibilities and
Employee Salary and Welfare Benefits established evaluation methods.Tianshan Material strictly complies with the “Labor Contract Law of the People’s Republic of China” the “SocialInsurance Law of the People’s Republic of China” and other laws and regulations. Based on them we have To share the fruits of the Company’s development with employees the Company continuously improves its salaryestablished and improved internal policies such as the “Management Measures for Employee Salary and incentive policies and has established a salary system that primarily focuses on market-based incentivesBenefits “Management Measures on Leave and Attendance” and “Management Measures for Benefits of supplemented by medium- and long-term incentives. For employees below the management level the CompanyHeadquarters Employees”. We are dedicated to developing a fair rational and competitive compensation and implements medium- and long-term incentive programs through various forms such as equity incentives excess
welfare benefits system. profit sharing and phantom equity.In the year the Company optimized the performance evaluation payment for annualized compensation
Salary and Performance employees dynamically linking it to the Company’s overall performance to effectively reflect the business incentive orientation. The Company also refined the ROA (Return on Assets) reward policy for regional
subsidiaries enhancing the objectivity and rationality of the incentive criteria.Tianshan Material has formulated internal policies such as the “Performance Management Measures” the To strengthen medium- and long-term incentive following the approval of the Xinjiang regional business excess“Measures for Tenure System and Contract-based Management for the Manager-level Personnel of the profit sharing plan Tianshan Material changed the implementing entity to Xinjiang Cement. The incentive payoutCompany” the “Evaluation Measures for Business Performance of Manager-level Personnel of the Company” was completed advancing the precision and sustainable development of the incentive system.2025 Environmental Social and Governance (ESG) Report Building a Stronghold for Talent Development 44
Diversified benefits Case: Enriching employees’ spiritual and cultural life and enhancing
corporate cohesion
Tianshan Material strictly complies with national laws and regulations placing high priority on safeguarding the
physical and mental health and legitimate rights and interests of employees. The Company pays work injury In 2025 Tianshan Material actively participated in and supported diverse cultural and sports activities
insurance premiums for employees every month and scientifically arranges the working hours of employees to organized by the Shanghai government and local trade unions including Chinese New Year celebrations
avoid overworking. Standard working hours and various leave systems are clearly defined and leave floral-arranging sessions for female employees healthy runs family days photography-salon outings
management procedures have been refined to ensure employees receive adequate rest and vacation. For and badminton invitational tournaments. These initiatives addressed employee needs in areas such as
employees who work overtime due to job requirements the Company pays overtime wages or subsidies in culture sports family care and interest development effectively enriching the after-work life of
accordance with compensation management regulations. employees and reinforcing team cohesion as well as a sense of belonging.Tianshan Material has established a diversified welfare system and formulated internal policies such as the
“Management Measures for Employee Salary and Benefits” and the “Management Measures for Benefits ofHeadquarters Employees” to safeguard employees’ legitimate rights and interests.We provide work meals health checkups enterprise annuity and other benefits and
routinely conduct activities such as high-temperature care sick care and birth blessings for
our employees.We establish a Dietary Committee to actively listen to employee feedback on issues related
to catering continuously improve services and ensure healthy nutritious and delicious
food for employees.Case: Launching Mid-Autumn Festival activities to foster employee
We take care of our employees’ physical and mental well-being. We provide fitness equipment emotional connection
and organize lectures on mental well-being irregularly to enhance employees’ physical health
and help them reduce stress. With these efforts we strive to create a healthy energetic and In 2025 Tianshan Material organized the “Mid-Autumn Festival Celebration: Mooncake DIY” theme
positive workplace. activity allowing employees to experience traditional culture through hands-on crafting and interactive
exchanges. This initiative not only enriched the spiritual and cultural life of employees but also further
cultivated a warm harmonious and humanistic work environment strengthening the emotional
resonance between employees and the Company.We organize traditional festival activities regular care and cultural activities to enhance
employees’ sense of belonging and cohesion.We respect and protect the special rights and interests of female employees in accordance with
the law offering various benefits such as specialized health check-ups lactation leave
parental leave and childbirth well-wishing arrangements. We also organize regular women's Health service system
health lectures neck and shoulder massages yoga classes and other diverse activities to carefor our female employees. Some companies have established "Mom's Love Corners" providing In active response to national health advocacy Tianshan Material issued the “Initiative on Employeethoughtful services and well-equipped facilities to create a dedicated "cozy haven" for Fitness Activities” this year promoting the concept of “Joyful Work Happy Life”. Leveraging the trade
expectant and nursing mothers. In the year the Company organized activities such as a special union as organizational foundation the Company has established a series of health services and
“Women’s Day Shoulder and Neck Massage for Female Employees” to care employees who company-wide fitness activities. These efforts continuously enhance the physical and mental well-being of
give birth. employees and actively foster a healthy energetic and positive work environment.2025 Environmental Social and Governance (ESG) Report Building a Stronghold for Talent Development 45In accordance with the “2025 Appointment Review and Re-evaluation Plan for Expert Engineers and SpecialCase: Implementing targeted health interventions to alleviate common Master Technicians of Cement Business” the Company conducted appointment review and re-evaluation. A total
occupational ailments of 11 expert engineers and 3 special master technicians successfully passed re-evaluation while 3 new expert
engineers and 1 special master technician were newly certified.To implement the National Health Commission’s “three-year action plan to further raise health literacyfor all citizens” and effectively address health issues arising from prolonged work Tianshan Material
Trade Union invited professional physicians to conduct a systematic shoulder-and-neck massage Building future management team
health-promotion campaign lasting 37 weeks with sessions held weekly. Through these targeted health
intervention services the Company fulfilled its duty of care in preventing and addressing common
occupational ailments effectively enhancing employee comfort and well-being. In the year to systematically build a high-quality management team Tianshan Material formulated and
implemented a management succession cultivation plan. Guided by frameworks such as the
“Implementation Plan for Rejuvenating and Professionalizing the Cadre Talent Team” the Company has
established a systematic cultivation system with clear objectives. The plan aims to cultivate diversified
reserve talents through the “Hundreds and Thousands Project” creating a high-caliber young and
Case: Establishing a long-term fitness mechanism to normalize team exercise professional cadre team thereby providing solid leadership talent support for the Company’s sustainable
and high-quality development.In active response to the “Weight Management Year” initiative and the national fitness campaign
Tianshan Material Trade Union engaged external professional coaches to offer regular weekly yoga Hundreds and Thousands Project
classes in the Company gym. Additionally the Company secured long-term rental of dedicated venues to
consistently organize badminton fitness activities twice a week. Name Target Group Cultivation Objective
By establishing a regular team exercise mechanism the Company created a platform for healthy social
and exercise among employees promoted the development of scientific exercise habits and integrated
health management into employees’ daily work and life routines.Management candidates from
regional companies and To reserve senior management talents with strategic vision
Employee Training and Development Hundreds member enterprisesProject
Tianshan Material focuses on employee growth and development by systematically establishing a talent
development platform. Through a multi-level training system diverse promotion channels and adequate
learning opportunities the Company supports employees in unlocking their potential thereby achieving mutual
growth.Promotion mechanism Mid-level reserve cadres from
headquarters regional To develop core forces with
companies and member both professional depth and
Tianshan Material continues to develop a platform for qualified personnel management at all levels and refine its Thousands enterprises excellent execution capabilities
career development system to support business growth needs. The Company has developed differentiated Project
promotion channels for managerial and technical positions allowing all employees to follow a development path
that matches their job characteristics. This year the Company has comprehensively established a “dual channel”
for the development of technical and skilled employees across its three core business areas. We issued the“Career Development Measures for Professional Technical and Skilled Talent of Aggregates Business (Version
1.0)”along with implementation guidelines further clarifying the growth pathways for specialized talent.2025 Environmental Social and Governance (ESG) Report Building a Stronghold for Talent Development 46
Training system Case: Tianshan Material built digital learning platform to enhance
company-wide capabilities
The Company has formulated and implemented the “Training Management Measures”. We have also
established a three-tier (i.e. the Company headquarters - regional companies - member enterprises) training Tianshan Material has systematically developed and operated a digital learning platform that enables
management system which defines the full process from training needs analysis to effectiveness assessment. employees to conduct training activities flexibly. Through this platform the Company has conducted a
This system ensures systematic and standardized training. series of online training courses such as “Human Resources Fundamentals” and “Business-MixLecture” and has introduced 35 sessions of high-quality online resources from the Group. In 2025 overThe Company follows the principle of “Three Tiers and Three Definitions11 “ and a training method of “mainly 1500 employees participated in learning via 35 sessions of online resources.internal training sessions supplemented by external training sessions”. By fully utilizing resources at all levels
we have established a multi-channel multiform multilevel employee growth training platform with special
emphasis to continuously cultivate professional talents. Relying on the three-tiered training system the Company
aligns its training efforts with the core training plans. Departments at all levels are responsible for planning and
implementing corresponding training programs with on-site training online training and other forms. The Case: Tianshan Material’s implementation of specialized development programs for
training content covers a wide range of areas including functional management professional technology safety management team enhancement
and environmental protection “dual-carbon” field and multi-skill training for front-line employees.This year Tianshan Material comprehensively advanced the optimization of its training system centered on In 2025 to elevate strategic vision and comprehensive management capabilities Tianshan Material
“professional trainers systematic courses and standardized management”. The Company formulated the organized customized courses including joint learning classes and General Manager Special Training
“Internal Lecturer Management System” and promoted specialized training programs establishing an internal Camp. The Company also coordinated its resources to conduct a series of programs such as training for
trainer team supported by key disciplines such as cement technology and equipment. A standardized curriculum new manager and management capability enhancement workshops. The training content covered key
system has been developed around core positions covering specialized fields including cement technology areas including strategic planning and operational decision-making. Utilizing various formats such as
equipment mining quality and electrical systems. By refining mechanisms for trainer development incentives thematic lectures and case studies it effectively promoted capability enhancement and mindset
and course delivery the Company has promoted more standardized targeted and effective training initiatives transformation within the management team.continuously enhancing the organization’s capacity for self-empowerment. In 2025 97.33% of employees were
included in the training with a total of 1.84 million class hours. The completion rate of key training programs
was 100%.Case: Tianshan Material’s cultivation plan for professional talents and
young employees
In 2025 to strengthen the professional talent team Tianshan
Material launched specialized training programs in mining
technology cement technology data governance and
complemented these with the “Tianshan Talents” new graduate The key performance indicators for talent attraction and retention in the Company in the year are shown in the
training camp. These programs reached 2600 participants table below:
throughout the year.The training focused on core job skills and business practices. Training hours per employee Total expenses for employee Employee
(all types of training) training and development satisfaction
Through technical lectures project practices and mentor guidance
it facilitated the technical advancement of key professional staff 35.87 Hours/person 3539.34 RMB 98.63%
while enabling new hires to integrate quickly. This initiative has built
a reserve of professional talent for the Company’s development.Staff turnover rate Voluntary turnover rate (including voluntary turnover and retirement)
8.98%5.49%
11“Three Tiers and Three Definitions”: “Three Tiers”: the Company headquarters - regional companies - member enterprises; “Three Definitions”: defined location
defined position and defined intention.2025 Environmental Social and Governance (ESG) Report Building a Stronghold for Talent Development 47
Occupational Health and Safety Production safety management system
Tianshan Material implements the critical deployment of production safety and ecological and environmental To effectively fulfill our safety management responsibilities we have established and continuously improved our
protection forming the “22532” management idea. Through the application of the Group’s intelligent safety management system. The Company has formulated internal rules and regulations such as the “Productionproduction safety management system and the ultra-low emission transformation the Company strengthens the Safety Responsibility System” the “Production Safety Management Regulations” the “Occupational Healthmanagement at source. With a focus on the performance of responsibilities the Company promotes the Management System” and the “Health and Safety Management System of Related Parties”. With these policies
transformation of the safety and environmental protection management model to pre-event prevention to we clarify the basic principles organizational structure division of responsibilities investigation and handling
support the high-quality development of the Company. and emergency response requirements for production safety so as to standardize our management process. In
2025 the Company revised the “Production Safety Management Regulations” and “Measures for theManagement of Production Safety Incidents” and formulated the “Measures for the Management of OverseasEnterprise Production Safety” and “Measures for the Management of Overseas Enterprise Emergency IncidentCore Value: "People First Life First" Reporting”. These documents defined the key links and processes such as operational risk identification control
measures emergency response and monitoring.Management Philosophy: "All Accidents Can Be Prevented All Accidents Can Be Avoided." Tianshan Material has established a three-level safety management system encompassing “Headquarters -Regional Companies - Member Enterprises”. The Company actively promotes a safety and environmental
protection management model characterized by “integrated management and penetrating oversight”. It
Task Breakdown clearly defines the three-tier safety and environmental protection responsibilities and accountabilities: the
Five Improvements headquarters “establish mechanisms set standards and strengthen systems”; regional companies “intensifyPriorities supervision allocate resources and provide feedback”; and member enterprises “ensure implementationManagement Skills and guarantee closed-loop management and drive corrective actions”.Results- Awareness Competency Renovation Governance System
oriented Enhancement Enhancement Enhancement Enhancement Enhancement Tianshan Material has established the Production Safety Management Committee (“Safety Committee”) at the
headquarters. It is the top decision-making body overseeing the Company’s production safety and occupational
health with the Company’s main responsible person serving as the director. Responsibilities include the
Participants Skills and Awareness Enhancement of Employees
Functional deployment and oversight of the production safety related work. The Safety Committee holds meetings every
Departments Competency Enhancement of Enterprise Principals and Safety quarter to learn the state’s production safety policies summarize the production safety work and deploy the key
Functionary Management Personnel jobs for the next quarter to ensure robust implementation of safety responsibilities. The Safety Committee has
Renovation Enhancement of On-site Protective Equipment and Facilities offices that are led by the Company’s Safety and Environmental Protection Department. Responsibilities include
implementing the decisions of the Safety Committee and the routine management. Each regional company also
Operators Governance Enhancement of Leakage Control and On-site Management has set its own safety committee and an independent safety and environmental protection department with
Employees
Regional System Enhancement of Safety Management and Risk dedicated staff responsible for regional safety management work. Each member enterprise sets up their own
Manager Prevention Capabilities Safety and Environmental Protection Department according to the actual needs with staffing for safety and
occupational health management.Tianshan Material has formulated the “Occupational Health and Safety Policy Statement” (“Policy Furthermore the Company deeply promoted the standardized operation and continuous improvement of theStatement”). This Policy Statement applies to all employees of the Company headquarters holding subsidiaries safety management system. A total of 394 factories obtained certification for occupational health and safety
suppliers employees of contractors associates and other business partners. The Board and management management systems. Additionally the Company deployed sufficient safety management personnel to enhance
together regularly review and improve the implementation of the Policy Statement. The content of the Policy safety management including 1179 full-time and 1741 part-time employees. Among these persons 875 were
Statement includes the Company’s commitment to setting quantitative targets for occupational health and safety certified safety engineers.to improving the related management system and to encouraging employees or their representatives to provide
feedback or suggestions.Tianshan Material has set quantified targets of zero work-related fatalities zero new case of occupational
diseases and a minor and serious injury rate of ≤1‰. We also actively promote the safety culture and effectively
fulfill our safety management responsibilities. In the year the Company had 0 new cases of occupational
diseases and achieved a minor and serious injury rate at ≤1‰. The expenditure on production safety amounted
to RMB 827 million.Three Transformations2025 Environmental Social and Governance (ESG) Report Building a Stronghold for Talent Development 48
risk prevention and control capabilities. In 2025 the Company continued to strengthen safety andProduction safety management measures environmental protection inspection and research. The work was done in a mode of “hearing reportingchecking records inspecting the site interviewing the staff discussing safety matters and organizingexams” adopting a four-in-one inspection mechanism of “inspection direction training and service”.Tianshan Material continuously promotes normalized standardized and systematic management and the The inspection and research covered 43 member companies of regional companies including GUCC and
improvement of production safety. We seriously investigate hidden safety dangers and risks and implement South Cement. Spot checks and safety talks were performed with 341 individuals. A final meeting thatsafety management responsibilities. In the year the Company formulated policies including the “Measures for enabled both on-site and online participation was organized involving 5992 attendees from 582the Management of Production Safety Incidents” and the “Measures for the Management of Ecological and companies.Environmental Protection Accidents”. These policies are aimed to optimize the grading standards for production
safety and ecological and environmental protection accidents standardize accident reporting procedures and Meanwhile the Company issued the “‘Thunder Action’ Work Plan on Production Safety” in 2025 which
clarify the accountability rules in case of any administrative penalties thereby continuously mitigating production focuses on maintenance and repair operations belt conveyor safety mining compliance and other keysafety risks. In 2025 the Company formulated the “Work Management Measures for Rewarding Reports of Safety areas. This year a total of 7787 rounds of inspections and rectifications were carried out to entities at alland Environmental Hazards (Trial)” to continuously improve the identification and rectification of hidden hazards levels. The Company conducted special inspections and mutual reviews in an organized manner building
through incentive mechanisms thereby promoting the effective implementation of primary responsibility for work 15 teams for supporting inspections on safety and environmental issues across 259 mines. Besides 14
safety. In 2025 the Company recorded no production safety accidents of Class B or above. inspection teams were set up to implement regional safety and environmental mutual reviews among 33
enterprises. As part of these efforts mandatory assessments were performed for 212 individuals during
inspection achieving a pass rate of 98.6%. Additionally the Company performed targeted governance for
key periods and activities such as year-end transitions construction fire operation and winter fire
prevention so as to reinforce the defense for production safety.Implementing production safety responsibilities
The Company signs a letter of responsibility for production safety and occupational health goals with its
member companies clarifying the responsibility of every party involved for production safety. The
Company has included contract workers and temporary workers in its unified management. Detailed Enhancing safety management with advanced technologies
policies are in place to clarify the responsibilities of the safety management department the business
management department and the local management department as a guarantee for production safety. Tianshan Material continues to advance the construction of intelligent safety system. The Company
The Company has established a quarterly work meeting policy and a key work scheduling and reporting promotes the application of the Group’s intelligent production safety management system and intensifies
mechanism for the safety management system of the headquarters and regional companies. In 2025 a online inspections. Companies found with deficiencies are urged to rectify the problems and address thetotal of three quarterly work meetings were held to carry out “monthly implementation and quarterly safety hazards and violations in a timely manner. In 2025 the Company completed the construction ofscheduling” for a series of key matters including the investigation and rectification of hidden dangers of intelligent production safety management system for 39 companies producing commercial concrete and
major accidents the investigation and rectification of hidden dangers in high-altitude corridors general aggregate 108 mines and 6 grinding companies.managers’ public classes communication and conversation with cadres and near incident reporting. In Tianshan Material continues to enhance safety management with advanced technologies. We encourage
addition the Company has vigorously developed CNBMG’s intelligent production safety management companies to adopt advanced and applicable safety technologies and promote the application of new
system. By the end of 2025 a total of 534 companies had launched the system. During the reporting period equipment processes and standards for production safety. The Company also implements the strategy of
626846 hazardous operations were reviewed and approved through the system; the AI alert “achieving mechanization and automation to reduce human involvement”. Digital and intelligent means
comprehensive response rate reached 100%; 235699 potential safety hazards were detected; and the rate are adopted to prioritize prevention and continuously enhance the work of production safety.of safety hazards detected and eliminated was 99.92%.In 2025 the Company conducted external safety audits for 126 entities in accordance with the “‘1+N+X’Three-Year Audit Plan for Safety and Environmental Protection” with a completion rate of 91%. Regional
companies and member companies completed internal audits for 196 entities in total and started to see
the initial results of the audits. Building up emergency response capability
Tianshan Material has established a risk identification and assessment mechanism to strengthen the
Carrying out special rectifications for safety hazards emergency response capability to risks. In 2025 the Company actively carried out emergency drills. Our
member companies carried out a total of 3510 emergency rescue drills with 65995 participants. The drills
tested the rationality and effectiveness of emergency plans and enhanced the ability of emergency
Tianshan Material conducts in-depth special inspections and rectifications on production safety to enhance response teams to handle emergencies effectively improving the emergency level of the Company.2025 Environmental Social and Governance (ESG) Report Building a Stronghold for Talent Development 49
Safety management among stakeholders
Case: Organizing specialized training on safety management for stakeholders
Tianshan Material has established and refined the contractor safety management mechanism which
clarifies unified accountability standards with the core principle of “downgrading contractors upon safety In 2025 through the “Online Course on Safety and Environmental Protection of Tianshan Materials” theincidents”. Company delivered specialized training sessions to address gaps in stakeholder management including
* At the organizational level suppliers’ project managers are required to join the Safety Committee for the “Fifteen Golden Rules for Contractor Safety Management in Southwest Cement” and the “Riskcollaborative decision-making. Contractors must provide adequate insurance coverage for employees Identification and Safety Measures for Maintenance Operations by Stakeholders”. These initiativesthereby consolidating the foundation for risk prevention and control. helped enhance stakeholders’ risk awareness and accountability performance achieving “equaltreatment” for shared progress with stakeholders.* In terms of access the Company strictly reviews the safety management qualification of contractors. By
incorporating occupational health and safety clauses into the contract requiring contractors to sign the
“Safety Agreement” and recording these documents into the intelligent production safety
management system the Company clarifies their safety management responsibilities.* As for contractor control specialized safety training is organized for all employees to communicate
safety requirements and skills to frontline personnel. A long-term incentive mechanism has been
established to guide contractors in enhancing their self-management awareness and competence.Before a project starts construction the unit in charge of the project shall review the safety certificates
tool lists and other materials provided by the contractor and then submit the materials to the safety
and environmental protection department for verification. The construction permit is issued only after
the verification is passed. In this way we guarantee the health and safety of outsourced employees.If a contractor is found with violations of safety management regulations the Company will impose
appropriate penalties in accordance with the terms of the “Safety Agreement” to ensure effective
implementation of safety management measures.2025 Environmental Social and Governance (ESG) Report Building a Stronghold for Talent Development 50
Guaranteeing employee health and safety Besides Tianshan Material places emphasis on the health and safety management of outsourced employees
and applies the same occupational safety management standards for them as for internal employees to ensure
that they enjoy the same safety protection. The Company organizes safety education and training for outsourced
Employee health and occupational safety are always our first priority. The Company has formulated and employees before they take on the job and conducts evaluation on their learning results and the safety risks todeveloped internal policies to fully guarantee employees’ health such as the “Occupational Health ensure that the outsourced employees fully understand the potential risks and safety requirements in the workingManagement System” the “Personal Labor Protective Equipment Management System” and the environment.“Management System of Health and Safety of Related Parties”. In 2025 the Company achieved 100% coverage
of the ISO 45001 Occupational Health and Safety Management System Certification for all entities at all levels.Production safety publicityThe Company continues to step up occupational health management. We strictly implement the “three-simultaneous” management of production safety and occupational health for “new renovation and expansion”
projects ensuring that the safety and occupational health protection facilities are designed constructed put into The Company prioritizes safety culture development. To this end the Company proactively organizes safety
production and used at the same time as the main project. culture exchange initiatives and training programs all aimed at continuously reinforcing employees’ safety
awareness. We have established a “level- category- and personnel-based” mechanism for safety and
environment protection training. Moreover we continuously enhance employees’ safety knowledge through the
We strengthen occupational health supervision and management and pay work injury approach of “mandatory examination and training through examinations”. In 2025 through the “Onlineinsurance in full and on time. As such we achieve 100% coverage of employees under work Course” platform for safety and environmental protection the Company organized 13 specialized training
injury insurance and workplace safety liability insurance. sessions in total. Among them 7 courses highlighted practical occupational health and safety operations
covering key topics like the “Risk Identification and Safety Measures for Maintenance Operations by Stakeholders”and “Explanation V2.0 of KPI Assessment Metrics for the Group’s Intelligent Production Safety ManagementSystem”.We equip employees with work clothes helmets safety shoes gloves anti-noise earmuffs
anti-dust masks and other protective equipment with reliable quality. In addition the Companyrequires every employee exposed to occupational hazards to sign the “Occupational HealthNotice” ensuring that they all understand the relevant risks and safety measures. Case: Certified safety engineer training program conducted by Tianshan Material
The Company continues to improve the facilities and first-aid equipment for dust proof anti-
poison noise reduction and emergency management at production workplaces. All necessary To build up the safety management team Tianshan Material has
technical measures such as enclosure spray sprinkling and sound insulation are taken to conducted the certified safety engineer training program for three
create a clean and hygienic work and production environment and reduce the intensity of consecutive years. Held in Kunming City of Yunnan Province in
occupational disease hazards for employees. 2025 the program invited a senior training expert to deliver
courses on “Production Safety Management” “Fundamentalsof Production Safety Technology” “Production Safety Laws andThe Company annually provides a health checkup package for all full-time and outsourced Regulations” and “Case Studies in Production Safety”. By
employees covering internal medical test surgical test eye tests (including the slit lamp addressing knowledge gaps and challenging topics the program
exam) etc. Besides the Company adjusts the items based on the age and sex of the strengthened the overall professionalism of safety managementemployees. In accordance with the “Law of the People’s Republic of China on the Prevention personnel thus laying a solid foundation for the Company toand Control of Occupational Diseases” and the Regulations on Supervision and Management accelerate the development of a safety management team
of Occupational Health the Company regularly organizes occupational disease examinations mainly composed of certified safety engineers. This training
for employees exposed to occupational hazards to understand their health condition. For session attracted 110 participants in total.employees with occupational contraindications the Company will arrange a transfer for them. In 2025 a total of 113 employees across all levels of the Company
obtained the intermediate certified safety engineer qualification.With 875 intermediate certified safety engineers now on staff we
The Company works with third-party institutions to regularly detect occupational hazards in the have established a dedicated safety and environmental
workplace assess the risk level and take corresponding measures to ensure a safe working management team anchored by these certified professionals.environment.2025 Environmental Social and Governance (ESG) Report Building a Stronghold for Talent Development 51
Metrics and Targets
The Company has developed a safety management indicator system dividing the indicators into five categories The number of work-related fatalities and the lost time injury frequency rate (LTIFR) of the Company and
including production safety targets control indicators binding indicators leading indicators and no-no contractors in 2025 are shown in the following table:
indicators.Safety Management Indicator System Key Performance Indicators Unit Data in 2025
Type Indicator Number of work-related fatalities
(employees) Person(s) 0
The Company is determined to avoid production safety accidents of Class B Number of work-related fatalities
Production resolutely curb those of Class A and comprehensively promote the (contractors) Person(s) 0
Safety Target transformation of production safety and environmental protection management
to pre-event prevention. LTIFR (employees) Case(s)/ million working hours 0.02
1. 0 production safety accident of Class B or above; LTIFR (contractors) Case(s)/ million working hours 0
2. The rate of serious injury accidents is ≤1‰;
3. 0 administrative penalties for violations of production safety regulations;
4. The on-schedule rectification rate for general safety hazards is ≥98%; The Company pays close attention to overseas production safety management and makes efforts to build a
Control 5. The on-schedule rectification rate for serious safety hazards reaches 100%; Chinese-foreign integrated safety and environmental protection culture with the Company’s characteristics. In
Indicator 6. The rectification rate for production safety issues inspected by superior units
such as CNBMG and CNBM reaches 100%; 2025 the Company achieved the five “zero” goals i.e. zero production safety accidents zero ecological and
7. The rectification rate for production safety issues inspected by the central environmental protection accidents zero security incidents zero new occupational disease cases and zero
special inspection team or local safety authorities reaches 100%; administrative penalties on safety and environmental protection. This demonstrated the full accomplishment of
8. 0 new cases of occupational diseases. health and safety targets set in the previous year.
1. The certification rate for main responsible persons directors in charge and
safety management personnel at regional companies and subsidiaries
reaches 100%;
2. The qualification rate for employee safety education and training reaches
Binding 100%;
indicator 3. The application rate of the intelligent production safety management system among manufacturing enterprises of the Group reaches 100%;
4. The warning response rate of the intelligent production safety management
system of the Group reaches 100%;
5. The KPI score of the intelligent production safety management system of the
Group is ≥85.Leading 1. Production safety management experience or technological achievements
indicator recognized by the Group Company or units at the departmental level or above which are suitable for promotion or reference.
1. Occurrence of production safety accidents of Class B or above;
No-no 2. Failure to promptly and accurately report work-related fatal accidents in
indicator production safety;3. Incidents with significant social impact or seriously negative public opinion
concerning production safety.05
Embarking on a Shared Journey
of Social Value
In pursuit of sustainable development Tianshan Material leverages a modern governance system to strategically
advance ESG practices. By building a responsible supply chain the Company ensures robust and reliable
operations. We strive for innovation to enhance product and service quality beyond customer expectations.Besides the Company has been fulfilling social responsibilities in line with the core values of “innovationperformance harmony and responsibility” to realize commercial value and social benefits.* Advancing Modernized Governance * Product and Service Quality * Responsible Business Operations
* Promoting Responsible Procurement * Innovative R&D2025 Environmental Social and Governance (ESG) Report Embarking on a Shared Journey of Social Value 53
Advancing Modernized Governance The first * Business departments of the Company and member enterprises which identify assess
line of control collect and report risks in operation and business and make timely rectifications.defense
Tianshan Material places a strong emphasis on law-based governance. The Company has established and
improved a management system that ensures compliance operations and lawful governance. By steadfastly The * The Legal Compliance Department which performs the internal control and compliance
upholding business ethics and strengthening information security measures the Company ensures transparent second of business lines through business management supervision and inspection and
and efficient decision-making. line of organizes other departments for rectification.defense
* The Disciplinary Inspection Department Audit Department and other related
Strengthening Compliance Management The third departments which supervise or urge enterprises to make timely rectification to the
line of identified issues and investigate risk incidents that have resulted in losses and enforce
defense accountability according to rules.Tianshan Material consistently adheres to lawful and compliance operations striving to build an efficient
compliance management system supported by comprehensive policies for rule-based management. The The Company integrates compliance management into development strategies and annual plans and
Company has developed a compliance manual specifying the key compliance obligations and requirements of incorporates compliance performance into the performance evaluation system. Employees who adhere to
the Company management and employees regarding 16 key areas including corporate governance and behavioral standards and compliance regulations are recognized while violators face appropriate penalties. By
operations investment and development human resources finance and assets trade secret protection and data doing so we incentivize employees to actively uphold compliance requirements.security intellectual property business partners procurement management anti-commercial bribery and anti- Tianshan Material and its subsidiaries have established a robust compliance training mechanism. The Company
corruption mining compliance production safety quality management environmental protection management holds quarterly and semi-annual compliance meetings along with specialized general counsel meetings of the
marketing management anti-monopoly and anti-unfair competition and overseas business management. In two-tier headquarters to guide legal compliance efforts across subsidiaries. Training sessions on compliance
addition the Company has issued a series of supporting compliance policies in terms of internal audit risk management compliance management system development overseas compliance intellectual property
management confidentiality and information security. These policies provide clear compliance requirements management dispute management and policy interpretation are provided to enhance employees’ complianceand guidelines. This year the Company revised 15 core policies including the “Measures for Legal and awareness and risk identification capabilities. Furthermore the Company has established multipleCompliance Affairs Management of Tianshan Material” with a focus on informatization requirements thereby communication channels including regular meetings OA and corporate WeChat. These channels facilitate
providing precise system support for the effective implementation of behavioral standards. employee inquiries on compliance issues reporting of violations and submission of improvement suggestions
To advance the compliance framework the Company has established dedicated legal development bodies and thereby fostering the dissemination and exchange of compliance culture. This year Tianshan Material and its
the Compliance Management Committee to ensure the comprehensive performance of their respective functions. subsidiaries conducted various compliance training sessions involving 31492 participants.In addition the primary person in charge of rule-based governance is required to diligently fulfill relevant duties.The leadership of the Company and its subsidiaries sets an exemplary standard by signing the “ComplianceCommitment” actively fulfilling their compliance pledges. This year Tianshan Material signed a total of 131 Upholding Business Ethics
copies of the “Compliance Commitment”.With reference to the ISO 37301 standard framework the Company continuously improves the compliance
governance system and is pushing forward the certification of the system. We also engage third parties to The Company upholds the strictest standards of business ethics and adheres to regulations on anti-unfair
oversee the operational effectiveness of this system ensuring compliance with behavioral standards. The competition anti-monopoly anti-bribery and anti-money laundering. These principles are integrated into every
Company empowers compliance efforts with technology. By embedding compliance requirements related to aspect of our operations. To this end we continuously improve the management system optimize the oversight
behavioral standards into various digital platforms such as CRM SRM and contract systems we have automated and audit mechanism and expand channels for complaints and reporting thus fostering a clean and efficient
compliance management. In 2025 the Company shifted compliance oversight from manual post-event workplace. This year there were no reported incidents of commercial bribery or corruption.supervision to automated pre- and mid-process system controls. This transformation significantly elevated work The Company has formulated the “Code of Business Conduct” and “Anti-Corruption Policy” for all full-time
efficiency and accuracy and avoided human errors in compliance activities. part-time and outsourced employees. The two policies cover many aspects including bribery discrimination
In the decision-making process the Company has set the review of legal compliance as an essential pre- information confidentiality conflicts of interest antitrust anti-competition anti-money laundering and insider
procedure and “one vote veto” for all violations. The Company has three lines of defense against potential trading. The Company requires leaders at all levels to sign the “Letter of Commitment to Integrity and Self-compliance risks consisting of business departments functional departments and supervision departments in a Discipline”. Any Party cadres who are involved in violation of the “Rules on Integrity of Executives of State-bid to fully carry out compliance management: Owned Enterprises” the “Regulations of the Communist Party of China on Disciplinary Punishment” and the
“Regulation on Disciplinary Actions Against the Managerial Professionals of State-owned Enterprises ” are
subject to administrative Party disciplinary actions and administrative punishments based on the severity of
violations.2025 Environmental Social and Governance (ESG) Report Embarking on a Shared Journey of Social Value 54
The Company integrates the “Code of Business Conduct” into employees’ performance assessment which is
directly connected to their salary and promotion. We hold a “zero-tolerance” attitude to any violation on this Highlights of this year’s training initiatives
front. According to the severity of violation the Company will impose punishment from warning and record ofdemerits to dismissal. In accordance with internal policies such as the “Measures for Accountability Managementof Leaders (Trial)” the Company will deduct salaries of violators and revoke the eligibility for promotion or Training Theme Training Content Training Coverage
recognition during the punishment period.Themed on “UnderstandingThe “Anti-Corruption Policy” is also applied to all business partners with the Company. It clearly forbids
and Abiding by Discipline
briberies in the form of kickback donation sponsorship political contributions or any other illegal and improper
Three sessions of Fulfilling Duties and Taking
payments. To ensure suppliers’ compliance with business ethics we also require all suppliers to sign theintegrity training at Responsibilities” we carried
“Integrity Commitment”. Once we are aware of a supplier’s violation of business ethics we will impose
the General out training sessions and typical General managers of member companies
punishment such as request for correction suspension of business elimination of business and inclusion in the
Manager Special cases-based awareness-
“blacklist” in accordance with national laws and regulations and internal rules. In addition we have
Training Camp building forums tailored to the
established strict management process regulations for supplier access inspection performance audit and
roles and responsibilities of
withdrawal management to ensure the fairness and transparency of the procurement process. The supervisory
participants.department of the Company assists business departments in supervision of bidding and other processes to
guarantee legitimate and compliant cooperation for a sound business order. A total of 565 individuals including the
Company’s leadership senior executives
The Secretary of Discipline mid-level cadres and all personnel from
Intensifying integrity training Company-wide Inspection Commission reported departments such as Party affairs discipline
conference on on promoting integrity and inspection inspections organization and
The Company continues to advance integrity training for employees. This year the Company revised the promoting integrity combating corruption. Activities human resources as well as the leadership
“Regulations on the Management of Wedding and Funeral for Leadership” and the “Guidance on and combating included watching educational of subsidiaries president assistants mid-Strengthening Integrity Education for Newly Appointed Leaders at Tianshan Material” so as to launch integrity corruption films and conducting case level cadres and all personnel from
training by institutional means. The Company conducts regular integrity culture education activities in forms such studies. departments such as Party affairs disciplineas lectures specialized training sessions warning conferences case studies and the event of “Monthly inspection organization and humanDiscussions on Party Conduct and Integrity Construction” to educate and train all employees. These initiatives are resources
designed to establish clear boundaries to reinforce ethical awareness.A total of 2535 individuals including post-“Strengthening Work Discipline
80s mid-level cadres and department
and Persistently Implementing
Awareness-building assistants at the headquarters post-80sthe CPC Eight-Point Decisions”
Integrity training for all employees: forums for young leadership mid-level cadres and and reporting of typical cases of
cadres department assistants at subsidiaries as
violations and disciplinary
well as post-80s leadership and mid-level
breaches by young cadres
cadres at member companies
For new We deliver integrity training on the significance regulations requirements and cases
joiners of business integrity. We guide them to foster awareness of integrity and adhere to Integrity training for Warning sessions are
the principle of integrity when working. business conducted to share typical
All cadres and employees at business
departments (such cases investigated and handled
departments
as procurement and by the headquarters and
Through initiatives such as the monthly "Talk on Party Conduct and Clean
For finance) subsidiaries.enterprise Government" we supervise and urge Party organizations to fulfill their primary
leaders responsibilities enterprise leaders to fulfill their responsibilities as the first persons Cases of violations of the CPC
accountable and leading groups to fulfill their "one position two responsibilities. Eight-Point Decisions cases of
violations and disciplinary
Case sharing on the
breaches by “top leaders”
For We regularly organize integrity training for employees in purchase finance and other OA discipline All cadres and employees at all levels
employees important positions and reveal integrity risks in business. We remind business and cases of violations and inspection platform
in important employees to constantly hold the discipline principle and conscientiously safeguard disciplinary breaches in
positions their integrity against corruption. procurement marketing and
other areas2025 Environmental Social and Governance (ESG) Report Embarking on a Shared Journey of Social Value 55
Optimizing reporting channels System security control
To consolidate the integrity defense and improve the internal supervision mechanism the Company’s Discipline The Company employs advanced information security technologies and multi-layer management
Inspection Commission provides diversified reporting and complaint channels including dedicated hotlines approaches to comprehensively protect cybersecurity and data security.dedicated email addresses and on-site reception services for all employees. All reported leads are uniformly
received and preliminarily assessed by the Case Review Office of the Discipline Inspection Commission. Adhering Equipment We have implemented data encryption firewalls and Intrusion Prevention
to the principle of “hierarchical and categorical handling based on regulations” we process all reports and and Systems (IPS) to significantly enhance the defense capabilities of our network
cases subject to formal investigation. Cases suspected of violating Party discipline after assessment will be technology environment.transferred by the Company to the corresponding disciplinary inspection body for verification in accordance with
the authority over cadre management. Issues pertaining to general business management are referred to To ensure the ongoing security of our systems and software we regularly
functional departments for resolution thereby forging a closed-loop oversight mechanism. conduct updates and upgrades for systems and software. This has promptly
We place a high priority on the protection of whistleblowers and reporting content. In accordance with the patched known vulnerabilities and mitigated potential risks. Regular“Rules for Protecting Whistleblowers and Accusers by the Central Commission for Discipline Inspection of the vulnerability scanning penetration testing and permission audit are conductedCommunist Party of China and the Ministry of Supervisory of the People’s Republic of China” we spare no effort to ensure the effectiveness of system protection mechanisms with data
in safeguarding the security and confidentiality of whistleblower information and forbid any forms of reiteration Vulnerability encrypted during transmission and storage. We regularly engage a third party to
and framing on the whistleblower. By doing so we strictly protect the privacy and lawful rights of whistleblowers. control scan the security vulnerabilities of our information technology system. Then we
improve present safety strategies and processes based on the safety risk report
provided by the third party to strengthen our information and cybersecurity
Strengthening Information Security management. In 2025 the Company promptly addressed and centrally remedied vulnerabilities identified in customer platforms technological
innovation systems and supply chain management systems.Tianshan Material attaches great importance to information and network security management and works to To prevent the information technology system interruption or cyber attacks webuild an information security management system. The Company has established the “Tianshan Material have established emergency response plans for information and cybersecurityNetwork Security and Information Security Management Policy”. The policy is formulated to strengthen the events. We also test whether the emergency response plans work every year. By
management of network security and information security across Tianshan Material and its subsidiaries at all simulating cyber attacks unauthorized internal access and other scenarios the
levels thus ensuring the stable operation of network systems and the security of information data. Company regularly tests the defense capabilities of its security strategies. After
Emergency these drills the Company conducts timely reviews and updates emergency plans
The Company has also established the Cybersecurity and Informatization Working Group. The chairman of the drills to form a closed-loop management process of“drill-evaluation-optimization”.Company is the team leader and the president and the vice president in charge of the Digital Department are the This approach helps us continuously improve system resilience and emergency
deputy leaders. The Chief Data Officer (CDO) and the deputy general managers in charge of business response. In 2025 the Company organized drills by means of scenario
departments are team members. We have established a responsibility system of information security simulation including database corruption and network failures. These exercises
management. The system clarifies the responsibilities of information security management positions including assessed the integrity of backup data the operability of recovery procedures
network administrator system administrator database administrator and safety administrator. We have also and the coordination efficiency among teams during emergency response.included the number of information security and cybersecurity incidents into the annual KPI assessment of
employees of the Digital Department. By doing so we have strengthened their attention to information security
and cybersecurity and further improved our prevention and control over the risks of information security and We have established stringent information segregation mechanisms and
cybersecurity. implemented precise access control strategies. These mechanisms effectively Authority
control isolate sensitive information from routine operations and ensure that only
authorized users can access specific sensitive data thereby greatly improving
data protection capabilities.Publicity and We regularly organize cybersecurity-related training to consistently enhance
training cybersecurity awareness and competence.We have obtained the certification of cybersecurity protection III and get timely re-certification as required. Upon
reassessment Tianshan Material has confirmed that five core systems that meet the second-level requirements in
the national classified cybersecurity protection testing and evaluation.2025 Environmental Social and Governance (ESG) Report Embarking on a Shared Journey of Social Value 56
Audit and review Supply chain management department of the headquarters
Furthermore we perform regular comprehensive security audits and monitoring for
information systems ensuring their security and integrity. Through these activities we * Formulate and publish the supplier management measures and supervise the implementation;
can promptly identify and address potential security threats and vulnerabilities and establish the lifecycle management mechanism covering supplier registration and access
swiftly implement targeted measures for repair and optimization. Multiple feedback performance evaluation and elimination.channels and a rigorous handling process have been established to receive feedback * Establish and improve the supplier evaluation system; establish the evaluation standards and process;
on information security issues. If an employee finds an information security issue regularly evaluate suppliers of the materials collectively purchased by the headquarters.he/she can report it to the Digital Department through internal OA email WeChat * Conduct qualification reviews and access assessments of suppliers of the materials collectively
telephone and other means. Upon receiving a report the Digital Department purchased by the headquarters organize on-site inspections and evaluations of new suppliers by
conducts an initial verification and investigation on the issue and then takes relevant personnel and select qualified suppliers.corresponding measures. This year there were no reported data security incidents or * Establish and maintain the database of suppliers including potential supplier database potential
breaches of customer privacy. qualified supplier database qualified supplier database and unqualified supplier database.* Comprehensively manage the suppliers of material procurement logistics services and other services
and formulate corresponding procurement strategies and management plans.* Coordinate and instruct the supply chain management departments of regional companies and
member enterprises.Promoting Responsible Procurement
Supply chain management departments of regional companies
Staying committed to building an efficient and sustainable supply chain Tianshan Material collaborates with
partners to advance sustainability strategies for win-win results. We have formulated and published the * Develop more detailed supporting management measures according to the supplier management
“Supplier Code of Conduct” and the “Sustainable Supply Chain Management Policy” for all suppliers. We measures of the Company headquarters.require all suppliers to fulfill their commitment to employees’ rights environmental protection risk management * Conduct qualification review and access assessments of suppliers organize on-site inspections and
and other aspects. We are committed to fully advancing the development of a sustainable supply chain. evaluations of new suppliers by relevant personnel and select qualified suppliers.* Establish and maintain the database of suppliers in the region including potential supplier database
potential qualified supplier database qualified supplier database and unqualified supplier database.Supplier Management Structure * Evaluate suppliers of the materials collectively purchased by regional companies regularly manage
them based on evaluation results and ratings and refine the supplier database of regional companies.* Manage the suppliers of material procurement logistics services and other services in the region and
formulate corresponding procurement strategies and management plans.The Company has established a three-tier management structure for suppliers comprising headquarters regional
companies and member enterprises. We also conduct on-site reviews of our suppliers on an annual basis and
are committed to building a competitive and sustainable product supply chain. Supply chain management departments of member enterprises
* Implement the supplier management systems of Tianshan Material’s headquarters and regional
companies.* Manage the enterprise’s suppliers of material procurement logistics services and other services and
formulate corresponding procurement strategies and management plans.* Establish maintain the enterprise’s supplier database and ensure timely updates and maintenance of
the data.* Evaluate cooperative suppliers regularly and manage them based on evaluation results and ratings.* Participate in supplier evaluation and sourcing efforts of Tianshan Material’s headquarters as needed.2025 Environmental Social and Governance (ESG) Report Embarking on a Shared Journey of Social Value 57
Supplier Lifecycle Management Review process
* Establish a dynamic supplier performance evaluation system13 to conduct level- and category-based
This year Tianshan Material enhanced its end-to-end supplier management from access and review to exit assessments of cooperative suppliers with the results directly linked to future procurement engagements;
revising 14 management policies including the “Supplier Management Measures.” This initiative enables a conduct sustainability risk assessments for key suppliers annually in accordance with the Company’s
more comprehensive integration of ESG-related requirements strengthens the entire lifecycle management of “Supplier Management Measures” and “Supplier Code of Conduct”.suppliers and ensures better identification assessment and management of environmental and social risks * Continuously refine the quantitative evaluation standards covering critical dimensions such as corporate
throughout the supply chain. credit product quality and contract fulfillment capabilities while explicitly designating ESG performance
as a crucial evaluation indicator.* Develop rectification and improvement plans for suppliers with high sustainability risks (such as those with
Access process potential labor issues high energy consumption and integrity concerns) and follow up their subsequent
progress.* Make sure all public procurement is carried out with full transparency.* Continuously strengthen supplier verification including their qualifications supply capabilities and service Exit processassurance capabilities to assess whether they comply with the requirements of the Company’s “SupplierCode of Conduct”. * Strengthen high-risk controls by placing suppliers who fail qualification reviews engage in fraudulent
* Review suppliers’ production equipment qualifications certificates and other relevant documents by activities or violate integrity agreements on the high-risk supplier list and by restricting their participation in
means of remote video or on-site verification to ensure that they satisfy the Company’s standards. all procurement activities of the Company.* Introduce a new ESG qualification assessment as a formal and critical step in supplier access process to * Terminate the cooperation with suppliers who still fail to meet the Company’s minimum ESG requirements
verify suppliers’ implementation of environmental policies fulfillment of social responsibilities and after rectification.soundness of governance structures ensuring that new suppliers align with the Company’s sustainable * Standardize the supplier exit process by clearly defining exit criteria and implementation procedures which
development strategy. is promptly initiated when suppliers consistently fail to meet performance standards or commit serious
* Collect and analyze suppliers’ ESG reports encourage suppliers to provide certification results such as ISO violations.
45001 ISO 9001 and ISO 14001 certification to evaluate suppliers’ ESG performance. The Company gives * Establish an information-sharing mechanism through a company-wide platform to enable efficient
priority to suppliers with better ESG performance when they perform similarly in other areas. synchronization of high-risk supplier data allowing all business units to proactively mitigate potential
* Require suppliers to strictly adhere to environmental standards human rights (including respect for cooperation risks and safeguard supply chain stability.employee rights anti-discrimination anti-harassment prohibition of forced labor and child labor and
protection of vulnerable groups) working conditions compensation health and safety and business ethics.suppliers that
* Conduct rigorous assessments of suppliers’ green production and energy-saving capabilities including but suppliers that
received suppliers sustaining suppliers that passed
suppliers that
not limited to evaluating the compliance of their production processes with environmental standards the responsibility long-term passed quality occupational health
passed
environmental
adoption of energy-efficient methods in production and the implementation of effective environmental assessment and cooperation with management and safety the Company system certification management management
management systems; and define the percentage of system certification scores in sourcing documentation. review system certification system certification
* Classify suppliers based on multiple dimensions including market risks procurement expense and
performance evaluation scores forming a basis for differentiated access strategies. 7792 10776 5258 5258 5258
Cooperation process key suppliers with
suppliers that key suppliers that key suppliers significant
passed energy passed the assessed as having key suppliers with actual/potential
* Sign “Integrity Commitment” with all suppliers to incorporate anti-commercial bribery and anti- management online/on-site significant rectification plans negative impacts
corruption as a focus of audits place non-compliant suppliers on the high-risk supplier list and clearly system certification assessment actual/potential implemented who have been negative impacts terminated from
define the standards of integrity and codes of conduct between both parties. cooperation
* Supervise and review the signing of “Integrity Commitment” to ensure all suppliers’ strict compliance
with the relevant regulations and maintain the integrity of the supply chain. 5258 7792 32 2 23
12 Including international authoritative system standards (ISO 9001 ISO 14001 ISO 45001 etc.); ESG rating standards (selecting suppliers with A-level or higher ratings);
industry norms and standards; green and low-carbon initiatives social responsibility initiatives integrity and compliance initiatives etc.; and internal systems such as the
“Supplier Management Measures”2025 Environmental Social and Governance (ESG) Report Embarking on a Shared Journey of Social Value 58
Supplier Risk Management Supplier Capability Development
To ensure the continuity and resilience of supply chain against emergencies and market changes the Company The Company has taken a series of measures to help suppliers better understand and practice ESG concepts and
has developed a comprehensive risk management framework covering all aspects of the supply chain. The to enhance their ESG management and practice capabilities.Company has established a specialized team dedicated to supply chain risk management. This team regularly The Company provides comprehensive ESG training and information support to help suppliers systematically
organizes training sessions for employees focusing on enhancing their awareness and response capabilities to understand the core content and requirements of ESG management through professional training materials. The
various risks. By doing this the team ensures that risk management practices remain effective and timely. Company also keeps suppliers regularly updated on the latest trends and practice cases in the building materials
industry to enhance their awareness and attention to ESG. Meanwhile the Company has developed an ESG
scorecard and invited its core suppliers to conduct self-assessments helping them understand their performance
and identify strengths and weaknesses. Based on the assessment results the Company provides the suppliers
A robust mechanism has been developed for identifying and defining potential risks in the with targeted suggestions for improvement. The Company also provides comprehensive technical support for
Risk supply chain including risks related to suppliers natural disasters political instability and suppliers including technical consulting technology transfer and sharing and joint R&D and innovation. Such
identification other factors. support aims to enhance suppliers’ technical capabilities and ESG performance thereby promoting the
and definition sustainable development of the supply chain.This year the Company established a long-term support system for suppliers in underdeveloped regions and
small-to-medium suppliers through institutional assurance targeted empowerment and innovation support. By
Risk assessments of key suppliers are conducted. For this purpose a supplier risk removing criteria such as supplier size and registered capital from evaluations we have helped these suppliers
assessment system has been established and the supply chain’s operational status is overcome development bottlenecks while fostering greater diversity and resilience within our supply chain.Risk continuously monitored to promptly identify potential issues and take appropriate
assessment measures. The Company’s [Supply Chain Management Department] has established a This year a total of 1658 key suppliers participated in capability building programs with the training covering
and dynamic performance evaluation mechanism integrating regular audits with ad-hoc audits 31.53% of our suppliers.monitoring enabling precise management and control throughout the entire lifecycle.Multiple suppliers are selected to reduce dependency on any single supplier thereby Case: Specialized training on sustainable supply chain management
minimizing the risk of supply chain disruptions due to the failure of a single supplier. The
Company has built a diversified supply chain system through strategic cooperation with
large state-owned enterprises. By integrating the “Wo Zhao Che” platform within the In May 2025 Tianshan Material conducted a
Diversification Group and upstream and downstream industries such as Nanjing Fiberglass Research & specialized training on sustainable supply chainof suppliers Design Institute Co. Ltd. the Company has optimized key resources while extending and management under the theme “Empowering thestrengthening the industrial chain. Competitive enterprises are also introduced to further Supply Chain with ESG Co-creating a Sustainableenhance the robustness of the supply chain system. Future”. This training featured ESG experts who
provided a systematic analysis of sustainable supply
chain development within the ESG framework
sharing insights into ESG risk identification
management and control strategies as well as best
The supply chain’s resilience has been bolstered through our optimized logistics network practices in the industry. In addition this training
Resilient increased inventory levels and robust backup plans. These measures enable the supply deepened participants’ understanding of ESG risk
supply chain chain to remain stable against external shocks and quickly return to normal operations. transmission mechanisms and their business
development implications while enhancing their awareness of
sustainable supply chain management. It
represented a crucial advancement in translating
the Company’s ESG governance framework from
Additionally the implementation of supply chain risk management strategies and measures has continuously top-level design into ground-level implementation.reduced the risk of supply chain disruptions. This has not only improved the reliability and stability of the supply
chain but also enhanced its adaptability and flexibility in the face of emergencies and market changes.2025 Environmental Social and Governance (ESG) Report Embarking on a Shared Journey of Social Value 59
Product and Service Quality
Governance
The Company’s Board of Directors holds ultimate responsibility for product and service quality management Fully embracing the ISO 9001 quality management system the Company conducts regular sampling inspections
making final decisions of related strategies. The ESG Committee under the Board of Directors is responsible for of products from its subsidiaries and continually assesses and updates relevant standards based on the analysis
implementing these strategies reviewing and approving relevant policies monitoring related risks and of sample performance indicators as well as market trends customer needs and inspection results.opportunities and regularly reporting to the Board of Directors. At the management level the Company has Furthermore for issues and shortcomings identified during inspections we promptly refine our quality
established an ESG Working Group with the general manager serving as the group leader to coordinate and improvement measures. All these efforts are aimed at boosting the quality and market competitiveness of our
advance key tasks related to product and service quality. For more details on product and service quality cement products.governance please refer to the “ESG Governance Structure” section of this report.StrategyThe Company adheres to the principle of “improving quality and efficiency embracing optimization and * The Company fully embraces the ISO 9001 quality management system and its cementupgrade” as well as the “customer-oriented” service philosophy. By deeply implementing a development business achieved a 100% certification rate.strategy that focuses on quality we are committed to providing customers with high-quality and high-standard
products and services. By setting stringent requirements for product and service quality while improving * The Company’s products achieved a 100% pass rate in national-level sampling inspections
efficiency and precision of quality and service management with information and intelligent technologies the and its main business products submitted for inspections achieved a 100% pass rate.Company enhances its competitiveness and maintains its leading position in the industry. Guided by customer * No major liability incidents related to safety and quality of products and services have
requirements and focusing on value creation the Company continuously optimizes its service system and Highlights occurred.enhances brand value. For more details on the potential impacts risks and opportunities associated with product
and service quality for the Company please refer to the “Double Materiality Assessment” section of this report. * The participation rate in the Central State-owned Enterprises’ Comprehensive Quality
Management Knowledge Competition reached 98.4% representing a year-on-year increase
of 15.9%.Impact Risk and Opportunity Management
Product quality guarantee The Company continuously strengthens the development of the quality informatization module within the ERP
system for its cement business. In 2025 we implemented a system for daily collection of strength data on clinker
mill-out cement and dispatched cement across 22 affiliated enterprises. This enables regional companies toThe Company strictly adheres to relevant laws and regulations such as the “Product Quality Law of the People’s monitor and supervise key strength data of their member enterprises. Additionally the Company has establishedRepublic of China” industry standards such as the “Quality Management Measures for Cement Enterprises” an information-based management system for internal control indicators related to raw and fuel materialsand requirements such as the “Quality Management Measures of China National Building Material Company clinker and cement of member enterprises. It incorporates an early warning mechanism that can automaticallyLimited”. On this basis we have established policies including the “Quality Management Measures” the trigger alerts to relevant enterprises when deviations occur in process quality control allowing for timely
“Product Quality Supervision and Management Measures” and the “Quality Incident Management Measures intervention and correction.of Tianshan Material for Cement Enterprises” continuously refining quality management requirements and
specifying product quality technical requirements production processes raw material management and other
related aspects.2025 Environmental Social and Governance (ESG) Report Embarking on a Shared Journey of Social Value 60
The Company actively facilitates access to service inquiries through multiple channels including the 400 hotline
The Company progressively builds an integrated technical quality management and service system spanning email and the Internet+ customer management platform. Complaint types are categorized into quality
clinker cement and commercial concrete which helps enhance production-sale coordination improve product packaging measurement shipment service sales personnel service and flow direction complaints. To better
support services and strengthen overall competitiveness. We optimize technical support services for clinker capture feedback and understand customer needs the Company introduced a compliant portal within its
cement and concrete products. To address diverse customer requirements we conduct technical R&D and customer platform application in 2025. During the year the Company received 21 complaints regarding products
experimental analysis to formulate customized technical product solutions select suitable raw and fuel materials and services achieving a 100% resolution rate with satisfactory results.clinker and mixed materials and manufacture products that meet the technical standards of different clients. For customer satisfaction surveys the Company consistently conducts annual satisfaction survey through
To effectively address potential quality issues or unforeseen events the Company has established a systematic anonymous online questionnaires. The survey covers various dimensions such as overall satisfaction product
response and improvement mechanism. Should related events arise a thorough investigation is immediately quality product metrology packaging quality delivery service technical service sales personnel service
launched to identify root causes and hold responsible parties accountable in accordance with Company’s settlement and payment convenience and complaint handling. In 2025 we extended the reach of our customer
regulations. Besides to reinforce its primary responsibility for safety management the Company has clarified the satisfaction survey to 97.6% incorporating overseas customers and users of the Jucaitong e-commerce platform.accountability mechanisms which in turn enable us to promote standardized operation and continuous To align with the communication preferences of different customer groups the survey was delivered through the
optimization of our quality management system ensuring consistent improvement in product quality and long- WeChat mini-program embedded within the Jucai Platform and by a web-based version. All collected data was
term reliability. consolidated into the “Tianshan Intelligence” online system for analysis.Case: South Cement safeguards product quality to deliver optimal products for
the market
In 2025 South Cement organized quality training for over 300 participants including inspection Satisfaction 9.73 9.77 9.80
personnel and laboratory directors from regional companies. The training covered quality management survey results
procedures licensing rules new standards and instrument operation procedures effectively (out of 10)
enhancing the overall competence of regional quality personnel.In accordance with Tianshan Material’s quality management requirements South Cement monitors the 2023 2024 2025
in-process and finished product quality of all member enterprises conducting unannounced monthly
sampling inspections of cement and clinker. In 2025 South Cement intensified its product sampling
inspections and achieved a 100% pass rate in all inspections.Voice of customers Metrics and TargetsThe Company has formulated internal policies such as the “Customer Relationship Management Measures for To ensure product quality and continuously enhance customer service the Company has established theCement Business” and the “Customer Complaint Management Process Manual”. These documents clearly following targets:
outline the handling process for customer complaints including complaint channels complaint receiving and * A 100% pass rate for comprehensive cement products a 100% pass rate for products in national-level
registration analysis and categorization formulation and implementation of complaint resolution and tracking sampling inspections and a 100% pass rate for main business products submitted for inspections.and feedback of complaint handling results. At present the Company has formed closed-loop management
covering the customer complaint collection response processing feedback and tracking of handling results. This * By 2027 the coverage of our satisfaction survey is projected to remain stable with the proportion of satisfied
ensures that the Company can respond swiftly to customer complaints and provide timely responses. Within 24 customers reaching over 95%.hours upon receiving a complaint the complaint coordinators will work with relevant departments to verify the
complaint and propose solutions and emergency responses. They will also track the implementation and
effectiveness of the complaint handling process.2025 Environmental Social and Governance (ESG) Report Embarking on a Shared Journey of Social Value 61
Innovative R&D * Retention: The Company offers year-end performance incentives to teams that undertake major R&D
projects achieve landmark R&D results or realize industrial breakthroughs. Meanwhile the Company
adheres to a “dual channel” mechanism of the R&D sequence and the management sequence to
improve the promotion pathway for R&D positions. The Company optimizes R&D support by strengthening
Tianshan Material regards R&D innovation as its core driver with a strategic focus on key areas such as energy platform construction experimental resource allocation and external collaboration providing R&D
conservation resource circulation and low-carbon materials. The Company increases investment in R&D and personnel with an open professional and stable innovation environment.collaborative projects striving to build an innovative technological system that spans the entire product lifecycle.By refining its innovation mechanisms strengthening industry-university-research integration and enhancing
intellectual property protection the Company contributes innovative solutions to the industry’s green According to the Company’s “Management Measures for Employee Salary and Benefits” special talents in
transformation and high-quality development. critical or hard-to-fill positions outstanding scientific and technological personnel and external experts and
consultants may receive market-competitive compensation packages on a case-by-case basis. Meanwhile the
Company’s “Science and Technology Awards Management Measures” stipulate that teams and individuals who
Technological Innovation Management System secure approval for scientific and technological/standard projects receive awards obtain authorized patents publish academic papers or contribute to the development of innovation platforms will be granted monetary
rewards. The Company continuously increases the reward amounts and expands the scope of eligible projects. In
The Company has progressively established and refined its innovation management system by issuing a series of 2025 the Company issued rewards for scientific and technological achievements further boosting the innovation
policies such as the “R&D Project Management Measures” the “Outstanding Science and Technology Worker enthusiasm of its R&D personnel.Selection Measures” the “Science and Technology Innovation Special Assessment Measures” the “R&DAchievement Management Measures” the “‘Three New’ Project Management Measures” the “InnovationDemand Management Guidelines” and the “R&D Project Funding Management Guidelines”. Furthermore the Key R&D Areas
Company has established Tianshan Material Basic Building Materials R&D Center etc. to provide organizational
and institutional guarantees for sustained innovation. In 2025 Tianshan Material focused on green and low-carbon initiatives digital transformation and “Cement+”
business innovation. It prioritized the R&D of high-performance environmentally friendly materials the upgrade
of intelligent manufacturing and the integration of digital intelligence across all processes. Meanwhile the
Company strengthened extreme cost reduction while advancing technologies driving high-quality development
Innovation Talent Cultivation and Incentives through scientific and technological innovation.The Company has always regarded R&D personnel as a core resource for its high-quality development. We
allocate personnel for technical R&D product R&D and related purposes and strengthen talent Ultra-high-performance products
management across the entire process from selection employment cultivation to retention to provide solid
support for technological breakthroughs and the Company’s high-quality development. The Company is committed to developing ultra-high-performance concrete (UHPC) tower solutions
* Selection: We give priority to talents who possess outstanding capabilities and are highly compatible characterized by ultra-high strength light weight and modularity. These solutions aim to replace traditional
with our requirements to ensure a well-educated multi-generational team with clear professional titles steel towers or ordinary concrete towers addressing challenges in high lifting and transportation to save
and a balanced integration of innovative young talents and experienced R&D professionals. In 2025 costs and increase construction efficiency.driven by measurable R&D outcomes and demonstrated innovation capability the Company increased * We have developed a series of UHPC products covering strength grades from C120 to C200. These
the proportion of R&D personnel selected for middle-level managers and project leaders prioritizing the products have been extensively applied in items such as utility poles subway evacuation platforms and
appointment of doctoral graduates and young professionals to key positions. wind turbine tower segments with an application volume exceeding 50000 m3.* Cultivation: The Company continuously increases investment in R&D. Leveraging the Group’s * Our self-developed polycarboxylate-based superplasticizer (SHY-HP150) for UHPC has been successfully
revolutionary pilot projects for cultivating master’s and doctoral engineers the Company has engaged in applied in Fengling New Energy Co. Ltd.’s project of Wind Power Concrete-Steel Tower Manufacturing
joint training programs to nurture research talents. We actively expand external academic exchange Center at Baishui County. This product provides crucial material support for the high-performance
channels for R&D personnel and create multi-dimensional growth platforms for them. We also arrange upgrade of concrete structures in wind power engineering marking a key step in the Company’s
key and young R&D staff to participate in industry conferences special lectures and academic forums. In innovation of integrating chemical building materials with new energy.
2025 in addition to actively applying for R&D projects at national provincial ministerial and municipal
levels the Company allocated RMB 13.16 million to establish company-level independent R&D projects * Through material innovation and modular design the Company in collaboration with equipment
further strengthening personnel capabilities in innovation and independent R&D. manufacturers has developed lightweight prefabricated photovoltaic bracket bases for PV power plant
construction reducing basic material consumption and installation costs.2025 Environmental Social and Governance (ESG) Report Embarking on a Shared Journey of Social Value 62
Carbon sequestration and energy-saving materials AI application research
The Company focuses on R&D in carbon emission reduction and solid waste recovery technologies. By In collaboration with Wuhan University of Technology Sinoma International Intelligent Technology Co. Ltd.developing carbon mineralization building materials and innovative collaboration mechanisms in multiple and East China Materials Co. Ltd. the Company jointly researches and develops the “Large Model for AI-fields it has established a complete closed loop from technological R&D to industrial application strongly Driven Intelligent Production of Ready-Mix Concrete”. This project is part of the fifth batch of the national
supporting the efficient integration and ecological synergy of clean energy in construction and infrastructure. “open bidding for selecting the best candidates” for major science and technology breakthroughs in the
* Offshore floating concrete: Through collaboration under the “industry-university-research-application” building materials industry focusing on the strategic needs for green low-carbon and intelligent
model the Company has partnered with universities and energy enterprises to establish laboratories development within the industry. Addressing key challenges in concrete quality control and based on the four
further expanding concrete technology research in emerging clean energy applications such as offshore core industrial AI elements of algorithms computing power data and application scenarios the project
floating photovoltaics and solidifying its leading position in materials for green energy infrastructure. develops a large model for intelligent concrete production and an intelligent production system applicable to
ready-mix concrete plants. By virtue of these the system will correlate data on raw materials mix ratio
* Carbon mineralization concrete: The Company explores recycled aggregate concrete technology and has performance costs and carbon emissions.built a domestically leading demonstration line for carbon mineralization of recycled aggregates. This
aims to utilize solid waste such as construction waste as resources reducing the consumption of natural
resources and supporting the development of the “zero-discharge factory” and a green supply chain. As of the end of 2025 the Company was involved in a total of 7 R&D
Meanwhile the Company advances the development of products like carbon mineralization solid waste-
based panels carbon mineralization foam concrete and carbon mineralization blocks achieving material projects/topics at the national provincial municipal and university levels:
and energy savings and high carbon sequestration efficiency.
1. Key Preparation Technology and Demonstration Application of High-
* Phase change energy storage concrete: The Company develops multifunctional envelope materials Performance Cementitious Materials with Low Environmental Impact
integrating energy storage heat preservation fire resistance and thermal insulation. The materials are
used for building energy efficiency and facilitate integration with green energy thereby realizing 2. Key Technologies for R&D and Application of New Low-Carbon Cement
innovation at the “material-structure-system” level.
3. Integrated Demonstration Project for Co-disposal of Multi-Source
Sludge in Typical Cities of the Yangtze River Economic Belt
4. Key Project for Green and Low-Carbon Preparation and Equipment R&D
List of 7 national
R&D projects of Active Calcium Oxide
underway
this year 5. Energy-Saving and Carbon Reduction Technology for Replacing Fossil
Fuels with Biomass Fuels in New Dry Process Cement Production Lines
6. Key Technologies for the Preparation of Low-Cost Aerogel Materials
and Products and Typical Applications
7. Joint R&D on Key Technologies and Equipment for New Low-Carbon
Cement Preparation and Application2025 Environmental Social and Governance (ESG) Report Embarking on a Shared Journey of Social Value 63
Intellectual Property Protection
Awards“Key Technologies and Applications of Oil and Gas “Preparation and Application of Energy-Saving and Strengthening the protection of intellectual property is crucial for driving product innovation and solidifyingField Cementing Materials in Extreme Efficiency-Enhancing Admixtures Product Cement and Cementitious Materials for Prefabricated Building customer trust. The Company systematically analyzes and identifies the risks associated with intellectual property Environments”was awarded PC Components” received and develops corresponding risk management strategies and countermeasures to ensure the identified risks are
always controllable governed and tolerable. For trademark management the Company has established a
The First Prize of Science and The Second Prize of Innovation trademark information database and implemented comprehensive measures to manage all aspects of the
Technology Award by Chinese Achievements Award by China Machinery Metallurgy and Building materials trademark including trademark registration trademark maintenance trademark licensing trademark disposal
Materials Research Society in 2025 Workers Technical Association and trademark protection. Moreover the Company has also formulated assessment and accountability
mechanisms. Meanwhile the Company continues to refine the “Trademark Management Measures” to protect
intangible assets like the Company’s trademarks and enhance trademark management.“Technological Innovation and Application of“R&D and Application of High-Performance Multi-faceted Protection for Concrete and The Company continues to increase the investment in technological innovation driving high-quality developmentTile Adhesive Series Products”was awarded Products in Major Coastal Infrastructure” through technological innovation. In the year the Company accumulatively held 4084 valid patents including
received 3336 utility model patents and 584 invention patents and successfully registered a total of 164 software
The Third Prize of Science and The Third Prize of Innovation copyrights.Technology Award by China Building Achievements Award by China
Materials Circulation Association Industry-University-Research Institute Collaboration Association in 2024“Collaborative Preparation and Large-Scale Responsible Business OperationsApplication of Low-Carbon Cementitious “Research on Steam Curing Activity ofMaterials from Multi-Source Typical Bulk Admixtures for Steam-Cured Concrete ProductsIndustrial Solid Waste” received and Standard Development” received
Adhering to the principles of openness sharing friendship and mutual assistance the Company actively fulfills
The Third Prize of Building Materials The Third Prize of Building Materials Science and Technology Award its social responsibilities through concrete actions. We actively participate in industry exchanges contribute to Science and Technology Award
(Technology Progress Award) in 2024 (Science and Technology Public
rural revitalization and engage in public welfare activities. We also integrate social responsibility into our
Welfare Award) in 2024 corporate strategy and daily operations striving to achieve synchronous progress in both corporate growth and
the fulfillment of social responsibilities.Industry Communication and Cooperation
The Company consistently maintains an open and collaborative approach seeking mutual benefits and win-win
outcomes. The Company collaborates with government organs and peer companies to share resources and
complementary strengths and proactively explores new pathways for technological innovation and product
upgrading thereby driving the high-quality development of the cement industry.Participation in the 11th International Symposium on Participation in the 2025 National High-Quality
Cement and Concrete in 2025 Development Forum on Stone-Imitating Pavement
Products by China Construction Units Association2025 Environmental Social and Governance (ESG) Report Embarking on a Shared Journey of Social Value 64
Case: The 6th CNBM “Responsible Resource Use Day” was successfully held Case: CNBM New Materials supports the local basketball competition
to build team cohesion
During the 6th CNBMG “Responsible Resource Use Day” in In 2025 CNBM New Materials donated RMB 10
2025 nine subsidiaries under Tianshan Material participated. thousand to Huangjin Township Ruichang City toAmong them CUCC Juxian organized an event themed “Driven support the local government in hosting the 5thby Innovation and Empowered by Greenness” inviting over 20 Village Basketball Association Men’s Basketball
partners to visit its national-level green factories. Participants League. The company organized a team to
toured its aggregate production line to learn about intelligent participate in the competition and achieved an
production processes and energy-saving environmentally outstanding result by securing 2nd place. This
friendly technologies attended presentations on innovative activity not only contributed to the development of
practices in slope management smart mining and local sports but also fostered stronger ties between
comprehensive resource utilization and engaged in in-depth the enterprise and the local community.discussions with relevant personnel on topics such as green
mine construction and sustainable development.Case: Sinoma Cement Menggu Company actively supports social
Public Welfare Activities welfare and environmental initiatives
In 2025 Menggu Company made external
The Company has continuously organized volunteer teams to carry out various public welfare activities including donations totaling RMB 300 thousand. Of this
educational assistance caring for poor children visiting lonely seniors and providing convenience services. amount RMB 150 thousand was used to improve
These activities represent the Company’s concrete efforts to deliver love to society. The Company’s donations are local medical conditions and extend support to
primarily directed toward the “Shanjian Public Welfare” project as well as local educational assistance and veterans. The remaining RMB 150 thousand was
elderly care services effectively contributing to community development while enhancing the Company’s brand allocated to the “Warm Winter Initiative” which
image. In 2025 Tianshan Material contributed a total of RMB 40287200 for public welfare initiatives. involved donating forage to herders to ensure
livestock safety during the winter. Meanwhile
Menggu Company participated in the tree-planting
activity organized by the Chinese General Chamberof Commerce as part of the “Planting Ten BillionCase: East China Materials cares for the elderly and supports the Trees” campaign replanting and maintaining non-
youth in their education viable trees and enhancing the local ecological
environment.In 2025 Ruichang Platform of East China Materials actively
fulfilled its social responsibility. On the Double Ninth Festival
Party member representatives and volunteers delivered essential
daily supplies such as rice and cooking oil along with charitable
funds to the elderly in Beishan Village Xiachaohu Village and
Jinsi Village conveying sincere holiday greetings and deep care. Rural Revitalization Initiatives
In addition Ruichang Platform launched a scholarship donation
campaign providing tuition fees and living allowances for more Tianshan Material and its subsidiaries actively fulfill social responsibility by engaging in initiatives that support
than 20 impoverished students at Huangjin Township Central rural revitalization effectively improving the quality of life for local residents and creating more development
Primary School and Matou Middle School demonstrating its opportunities. The Company has implemented multiple assistance projects covering key areas such as
compassion and commitment. infrastructure enhancement and educational support which effectively promotes the social and economic
development in the assisted areas.2025 Environmental Social and Governance (ESG) Report Embarking on a Shared Journey of Social Value 65
Tianshan Material has always regarded educational support as a top priority for rural revitalization and social
Case: Yungui Cement donates supplies to care for the elderly and responsibility fulfillment. The Company continuously participates in the CNBMG “Shanjian Colorful Classroom” initiative focusing on rural left-behind children to address the challenge of care giving during summer. We
children in Kazi Village Shouwang Township provide financial aid to underprivileged students and reward outstanding teachers and students contributing to
the educational development of the regions where we operate. In 2025 30 young volunteers from 24 TianshanOn November 7 2025 Yungui Cement organized a themed activity “Bringing Warmth to the Elderly and Material’s member enterprises conducted volunteer activities at six teaching sites in Shitai County in AnhuiChildren” at its designated assistance village Kazi Village in Shouwang Township Zhaoyang District Province Jingyuan County in Ningxia Hui Autonomous Region and Zhaotong City and Yongshan County in
Zhaotong City. Winter supplies were delivered to 93 village households with elderly members or children Yunnan Province.in need. Since 2014 Yungui Cement has cumulatively invested over RMB 11 million in the village to
support industrial development infrastructure construction and village appearance improvement with
notable results achieved.Case: Tianshan Material’s member enterprises demonstrate responsibility as state-
owned enterprises through concrete actions actively serving the community with care
On June 23 2025 Xinjiang Cement purchased 2744 boxes of apricots in Tuopuluke Township Yingjisha
County assisting local farmers in achieving stable income growth. Additionally 12 member enterprises
under Xinjiang Cement actively participated in the local “Thousand Enterprises Aid Hundred Villages”
Case: Sichuan Ebian Southwest donates construction materials to improve project collaborating with poverty-stricken villages to build beautiful communities.residential environment fulfilling its mission as a state-owned enterprise
On October 16 2025 in response to the local government’s call for targeted assistance and doing
practical things for the people Lipu South donated 30 tonnes of cement to Longtian Village Dongchang
To continuously advance rural revitalization and Town Lipu City specifically for the village’s road construction projects. Upon completion the roads allow
improve living environments and production freight vehicles direct access to orchards significantly improving the transport efficiency of agricultural
conditions in poverty-alleviated areas on products and helping farmers secure better prices thereby contributing to rural revitalization though
October 16 2025 Sichuan Ebian Southwest concrete actions.Cement Co. Ltd. donated 30 tonnes of cement to
the People’s Government of Maoping Town On November 18 2025 Jinlei Nanfang implemented a “Doing Practical Things for the People” project
Ebian Yi Autonomous County. The cement was donating 160 tonnes of cement to its designated assistance village Penggongmiao Village Zhoumensi
used for renovating the residential houses of the Town Zixing City. The cement was used for paving rural roads and repairing flood-damaged bridges
town’s households enjoying five guarantees benefiting over 100 households across four village groups and effectively improving transportation
assisting in improving the living environment for conditions for the villagers.those who have shaken poverty and injecting On December 4 2025 Guilin Nanfang carried out a “Doing Practical Things for the People” project
warm-hearted impetus into rural revitalization. donating 80 tonnes of cement to Baiyang Village Gongcheng County Guilin City to construct a 1-
kilometer industrial road. This project facilitates transportation for agricultural products tangibly improves
local production and transportation and injects momentum into rural industrial development and
revitalization.Case: Yili Tianshan donates cement for rural road construction
contributing to rural revitalization and silk road prosperity
On September 9 2025 Yili Tianshan actively responded to the national rural revitalization strategy and
the “Belt and Road” Initiative by donating 100 tonnes of construction cement to Jiagasitai Town Qapqal
Xibe Autonomous County. The cement was designated for livelihood projects such as rural road
hardening and irrigation canal repairs effectively improving local infrastructure. This donation
significantly enhances transportation and irrigation conditions in Jiagasitai Town benefiting over 300
households. It is estimated to save approximately RMB 50 thousand in annual road maintenance costs
and the improved irrigation canals will benefit 200 mu of farmland demonstrating the Company’s Public welfare donation project at
commitment to its social responsibility. Penggongmiao Village Jinlei Nanfang’s
Donation for road construction in Baiyang
designated assistance village Village Gongcheng County Guilin2025 Environmental Social and Governance (ESG) Report Appendix 66
Appendix IV. Scope of the Assurance Engagement* The scope of the Assurance Engagement is limited to the information and data in the ESG Report that relates to
Tianshan Material and its subsidiaries and does not include data or information provided by Tianshan
Material’s suppliers contractors and other third parties;
Appendix 1 Independent Assurance Statement * Type 2 Moderate Level of Assurance was adopted to evaluate the nature and extent of Tianshan Material
adherence to the four AA1000 Accountability Principles set out in the AA1000AS v3;
* Tianshan Material and CECEPAC (HK) reached an agreement to select the specific performance information in
CECEP (HK) Advisory Company Limited (“CECEPAC (HK)” or “We”) has been engaged by Tianshan Material the ESG Report as part of the content for Assurance Engagement;
Co. Ltd. (“Tianshan Material”) to conduct an independent limited assurance engagement (“AssuranceEngagement”) on the information and data related to sustainable development in Tianshan Material Co. Ltd.
2025 Environmental Social and Governance (ESG) Report (“ESG Report”) and to disclose the results and
No. Review Indicator Unit
conclusions of the assurance in the form of an independent assurance statement to the users of the ESG Report.
1 Total Emissions of Nitrogen Oxides (NO?) Tonne
CECEPAC (HK) has been engaged to assure Tianshan Material adherence to the four AA1000 Accountability
Principles (Inclusivity Materiality Responsiveness and Impact) set out in the AA1000 Assurance Standard v3 2 Total Emissions of Sulfur Dioxide (SO?) Tonne
(“AA1000AS v3”). CECEPAC (HK) has also been engaged to provide limited assurance on the reliability and 3 Investment in workplace safety RMB 10000
quality of specific performance information disclosed in the ESG Report that have been selected in accordancewith the Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange (“Shenzhen Stock 4 Number of work-related fatalities in production safety liability accidents (including related parties) person-timeExchange”) – Sustainability Report (For Trial Implementation) (“Sustainability Report Guideline”).
5 Total number of national green factoriess Number
If there is any inconsistency or ambiguity between the English version and the Chinese version of this
independent assurance statement the Chinese version shall prevail. 6 Enterprises certified with the ISO 45001 Occupational Health and Safety Management System Number
I. Independence and Competence
7 Enterprises certified with the ISO 14001 Environmental Management System Number
CECEPAC (HK) was not involved in collecting and calculating data or in the development of the ESG Report.CECEPAC (HK)’s activities are independent from Tianshan Material. There is no relationship between Tianshan 8 Rate of safety hazard investigation and rectification %
Material and CECEPAC (HK) beyond the contractual agreement for providing this Assurance Engagement. 9 AI alert comprehensive response rate %
CECEPAC (HK)'s assurance team consists of professional personnel who are experienced in the industry and have 10 Enterprises certified with the ISO 9001 Quality Management System Number
received professional training in sustainability-related standards such as GRI Standards issued by Global 11 Combined energy consumption Tce
Reporting Initiative AA1000AS v3 Sustainability Report Guideline issued by Shenzhen Stock Exchange ISO 17001
and ISO 9001. 12 Consumption rate of alternative fuel %
CECEPAC (HK)'s assurance team has rich experience in conducting assurance work and has a full understanding 13 Total greenhouse gas emissions (scope 1 and scope 2) tCO2e
and practical ability of AA1000AS v3. Meanwhile the assurance team of CECEPAC (HK) carries out assurance work 14 Greenhouse gas emissions per million revenue (scope 1 and scope 2) tCO2e /million revenue
on sustainable development issues in accordance with the internal assurance regulation of CECEPAC (HK). 15 Greenhouse gas emissions (scope 3) tCO2e
II. Tianshan Material’s Responsibilities
16 Total amount invested in public welfare (including material donations) RMB 10000
Tianshan Material is responsible for the preparation and presentation of the ESG Report in accordance with the
Percentage of employees in key positions covered by anti-corruption training
Sustainability Report Guideline issued by Shenzhen Stock Exchange. Tianshan Material is also responsible for 17 sessions held and organized %
implementing internal control procedures and ensuring that contents of the ESG Report are free from material
misstatement whether due to fraud or error. 18 Number of patents for inventions granted during the reporting period Number
III. Assurance Provider’s Responsibilities
CECEPAC (HK) is responsible for issuing an independent assurance statement according to AA1000AS v3 to the
Board of Directors of Tianshan Material. This independent assurance statement applies solely to the ESG Report in
the specified scope expresses a conclusion on the assurance work and does not serve any other intents or * The time scope of the Assurance Engagement was with respect to information disclosed from January 1 2025
purposes. to December 31 2025 only. We have not performed any procedures with respect to earlier periods or any other
elements included in the ESG Report and therefore these do not constitute a part of our conclusions; and
CECEPAC (HK) ensures that all personnel involved in assurance work meet professional qualification training and
experience requirements and are proficient in conducting assurance engagements. The results of all assurance * The scope of the Assurance Engagement is confined to the information and data provided by Tianshan
and certification are internally reviewed by senior staff to ensure that methodologies used in the process are Material. Any queries regarding the content or related matters within this independent assurance statement
sufficiently stringent and transparent. should be addressed to Tianshan Material only.2025 Environmental Social and Governance (ESG) Report Appendix 67
Appendix ResponsivenessTianshan Material has established relevant communication channels for its key stakeholders to gather their
concerns and has responded on material topics related to sustainable development to its key stakeholders. In our
professional opinion Tianshan Material adheres to the Principle of Responsiveness.Appendix 1 Independent Assurance Statement Impact
(Continued) Tianshan Material has invested resources in understanding measuring assessing and managing the impacts caused by the company in order to achieve more effective decision-making and results-based management
within the organization and has appropriately disclosed the impacts in the ESG Report. In our professional
opinion Tianshan Material adheres to the Principle of Impact.V. Methodology of the Assurance Engagement
Specific Performance Information
CECEPAC (HK)’s Assurance Engagement was conducted at the headquarters of Tianshan Material and part of its
subsidiaries. The assurance work included: Based on the procedures CECEPAC (HK) has performed and the evidence we have obtained nothing has come to
our attention that causes us to suspect the reliability and quality or the conformity with the preparation basis set
* An assessment on the suitability of Tianshan Material’s stakeholder engagement participation process; out in the ESG Report of the 18 selected specified performance information of the ESG Report.* On-site interviews with Tianshan Material’s sustainability management and other personnel involved in the
preparation and provision of the content and information in the ESG Report;
* An assessment on whether the reporting and management approach disclosed in the ESG Report responded
to the principles of Inclusivity Materiality Responsiveness and Impact as defined in the AA1000AS v3;
* Random sampling of sources of reliability and quality evidence pertaining to selected key performance
indicators;
* Recalculation of selected key performance indicators; and
* Other procedures we deemed necessary.The Assurance Engagement was performed and the conclusions within were based upon information and data
provided by Tianshan Material and on assumptions that the information provided was complete and accurate. March 30 2026
VI. Inherent Limitations Hongkong China
The absence of a significant body of established practice on which to draw to evaluate and measure non-
financial information allows for different but acceptable measures and measurement techniques and can affect
comparability between entities.VII. Conclusions
In accordance with the principles of Inclusivity Materiality Responsiveness and Impact in the AA1000AS v3 our
findings and conclusions are detailed as follows:
Inclusivity
Tianshan Material has identified key stakeholders. Continuous communication with the key stakeholders is carried
out in various ways to understand their expectations and concerns. On this basis Tianshan Material has
formulated policies in consideration of key stakeholders’ expectations and its impact on stakeholders. In our
professional opinion Tianshan Material adheres to the Principle of Inclusiveness.Materiality
Tianshan Material conducted the material topic analysis for its ESG Report collected opinions from key
stakeholders determined material topics through appropriate methods and presented the results in its ESG
Report. In our professional opinion Tianshan Material adheres to the Principle of Materiality.2025 Environmental Social and Governance (ESG) Report Appendix 68
Appendix 2 ESG Key Performance
Key Performance Indicators Unit 2025 2024 2023 Key Performance Indicators Unit 2025 2024 2023
Advancing Green Development Across Multiple Fronts Developing Circular Economy
Embracing Our Climate Responsibility Total water withdrawal Tonne 1185702234.29 961173442.25 1055005407.81
Total greenhouse gas emissions Recycled water utilization rate of clinker-
(scope 1 and scope 2) tCO2e 131725068.22 146604719.80 166579684.27 producing cement companies % 94.54 92.18 93.56
Greenhouse gas emissions (scope 1) tCO2e 127519431.94 141472149.69 163036585.43 Total water consumption Tonne 71014143.28 75169699.00 79353902.00
Greenhouse gas emissions (scope 2) tCO2e 4205636.27 5132570.11 3544098.25 Water consumption intensity Tonne/million revenue 953.26 864.07 739
Greenhouse gas emissions per million tCO2e /million
revenue (scope 1 and scope 2) 13 revenue 1768.22 - - Reusing rate of the treated wastewater for
commercial concrete business % 100 100 100
Greenhouse gas emissions (scope 3)14 tCO2e 25653008.92 - -
Emission Compliance Management
Category 1: Purchased Goods & Services tCO2e 23726831.08 - -
Total waste gas/total waste gas pollutant
Category 4: Upstream Transportation & 3tCO2e 821807.23 - - emissions
m 451048516500 493427362600.00 575146395700.00
Distribution
Total Emission of Nitrogen Oxides (NOX) Tonne 35081.86 40868.76 52908Category 6: Business Travel tCO2e 1873.78 - -
Total Emission of Sulfur Dioxide (SO2) Tonne 3123.34 3429.85 4152Category 9: Downstream Transportation &
Distribution tCO2e 1102496.84 - - Industrial particulate matter emission Tonne 3066.84 3307.06 5138
Embracing Green Actions Direct mercury emission Tonne 1.89 2.59 2.03
Combined energy consumption Tce 17059993.41 19309556.77 23314709.59 Chemical oxygen demand (COD) emission16 Tonne 12.61 9.38 0.06
Combined energy consumption per million tCO2e /million 229.00 221.96 217.12 Proportion of companies meeting noise level revenue revenue standards % 100 100 100
Total non-renewable energy consumption MWh 122418607.93 157079589.65 264105793.07 Proportion of recyclable cement packaging bags % 100 100 100
Total coal consumption Tonne 15009575.80 21784398.18 27650916 Total amount of waste generated Tonne 444746.60 9551603.19 1961883.09
Total gasoline consumption L 98010.00 184690.00 263940.00 Self-produced hazardous solid wastes 10000 t 0.05 0.07 0.09
Total diesel consumption L 30271817.77 25400620.00 32934430.00 Total hazardous waste generated per million Tonne/million
revenue revenue 0.01 0.01 0.01
Total natural gas consumption m3 1025451.79 1872100.00 2804000.00
Self-produced non-hazardous solid wastes 10000 t 44.4217 955.09 211.34
Total power consumption MWh 15474299.79 20045636.80 20567391.40
Total amount of non-hazardous waste Tonne/million
Total renewable energy consumption Tce 48141.31 64789.76 21630.77 18generated per million revenue revenue 5.96 10.98 19.68
Consumption of renewable resources as a Self-processed non-hazardous solid wastes 10000 t 43.68 948.04 193.72
proportion of total consumption of % 0.28 0.34 0.09
corresponding resources Absorbed and discharged volume of solid 10000 t 6429.81 7543.60 7587.97
wastes
Total direct energy consumption MWh 122128416.64 133351169.70 169275522.20
15 Absorbed volume of industrial wastes 10000 t 6228.20 6405.10 7209Total indirect energy consumption MWh 15474301.05 20045636.80 20567391.40
Discharged volume of solid wastes 10000 t 44.42 955.09 47.16
Purchased electricity consumption MWh 10977274.98 15312201.70 14356101.00
Discharged volume of other wastes 10000 t 140.48 183.41 331.54
Self-generated electricity consumption MWh 4497024.81 4733435.10 6211290.40
Volume of waste recycled Tonne 436767.66 9480423.96 1921585.55
Clean energy use MWh 532530.31 54212.45 53033.04
Including: natural gas consumption m3 1025451.79 1872100.00 2804000.00
Including: percentage of natural gas
consumption % 1.90 35.8 57.21
13 Due to a significant decrease in operating revenue in 2025 compared to 2024 the greenhouse gas emissions (Scope 1 and Scope 2) per million
revenue increased substantially in 2025.Including: wind energy consumption MWh 0.00 0.00 0.00 14 In 2025 we used the financial control approach to conduct a greenhouse gas (GHG) inventory for Scope 3 in accordance with the “GHG Protocol:Including: percentage of wind energy Corporate Value Chain (Scope 3) Accounting and Reporting Standard” and completed the accounting for 4 categories.consumption % 0.00 0.00 0.00 15 Total indirect energy consumption includes purchased electricity consumption and self-generated electricity consumption.Including: percentage of wind energy 16MWh 129888.80 34807.00 22688.70 2025 statistical caliber increase in domestic sewage discharges to the Park’s wastewater treatment plants.consumption 17 Among these the volume of waste disposed through landfill incineration for power generation incineration without power generation and
Including: percentage of solar energy other methods were 0 0 0 and 444.2 thousand tonnes respectively.consumption % 24.39 64.2 42.78 18 This year the Company retrospectively reviewed and adjusted this data to ensure the consistency and accuracy of the information presented.2025 Environmental Social and Governance (ESG) Report Appendix 69
Key Performance Indicators Unit 2025 2024 2023 Key Performance Indicators Unit 2025 2024 2023
Biodiversity Protection Employee training and development
Land area affected by business operations m2 13325700.0 11576100.00 9877700.00 Number of employee trainings Number 24130 24056 26467
Restored land area m2 7140300.00 6312300.00 3099050.80 Employee training coverage/Percentage of employees trained % 97.33 96.57 98.29
Investments in green mine construction and ecological
restoration projects RMB 10000 5107.02 8638.76 3052
Expense on training RMB 10000 3539.34 4270.20 3017.95
Occupational Health and Safety
Total number of national green factories Number 62 54 53
New cases of occupational diseases Number 0 0 0
National Ready-Mixed Concrete Green Demonstration Factory Number 61 61 69
National green mines Number 38 38 38 Serious injury rate per thousand persons % 0.00 0 0.44
Provincial green mines Number 110 103 98 Accident rates of minor and serious injuries % 0.00 0.03 0.44
Investment in workplace safety RMB 10000 82713 120400 100486
Building a Stronghold for Talent Development
Lost work days due to work injuries Day 0 11 18030
Employee Recruitment and Retention Employee lost time injury frequency rate (LTIFR) per million working
Total number of employees Number 51423 55034 61662 hours / 0.00 0.02 -
Total number of employees by gender Supplier lost time injury frequency rate (LTIFR) per million working hours / 0.00 0.02 -
Male Number 39929 42687 47651 Number of employees participated in occupational health and safety
training Person-time 992975 863374 663943
Female Number 11494 12347 14011
Safety risk prevention training coverage % 100.00 100.00 -
Total number of employees by employment type Near accident rates of full-time employees20 % 0.45720 0.0187 0.024
Full time Number 51273 54760 60321 Number of work-related fatalities in production safety liability accidents
Other (including part-time intern and outsourced) Number 150 274 1341 (including related parties)
Person-time 0 0 0
Total number of employees by age Rate of safety hazard investigation and rectification % 99.92 99.81 99.39
30 and below Number 4880 5380 6491 Number of deaths due to work-related causes Person-time 0 0 3
Death rate per thousand people ‰ 0.00 0.00 0.05
Between 30 and 50 Number 31967 34184 38070
Enterprises certified with the ISO 45001 Occupational Health and Safety
50 and above Number 14576 15470 17101 Management System Number 394 431 472
Total number of employees by region Embarking on a Shared Journey of Social Value
Chinese mainland and Hong Kong Macao and Taiwan Number 50929 54914 61545 Advancing Modernized governance
Overseas Number 494 120 117 Number of anti-corruption training sessions held and organized Number 4517 4452 2855
Ethnic minorities Number 382219 3606 - Total number of employees covered by anti-commercial bribery and
Proportion of women in senior management of the Company % 6.70 9.70 7.49 anti-corruption training
Number 50606 55034 61662
Proportion of women in middle management of the Company % 13.77 14.60 - Percentage of employees covered by anti-bribery and anti-corruption
training % 100 100 100
Proportion of women in management of the Company % 12.30 13.49 - Including: the total number of directors covered by anti-commercial
Proportion of women in business management positions % 10.03 10.36 - bribery and anti-corruption training Number 9 9 9
Proportion of women in STEM (Science Technology Percentage of directors covered by anti-bribery and anti-corruption
Engineering and Mathematics) positions % 17.22 22.89 - training % 100 100 100
Employee Salary and Welfare Benefits Including: total number of management staff covered by anti-
commercial bribery and anti-corruption training Number 4450 4956 4858
Number of employee activities held and organized annually Number 3569 1593 2006
Percentage of management staff covered by anti-bribery and anti-
Number of employees participated in activities in the year Person-time 63974 69540 81935 corruption training % 100 100 100
Comforting special employees and helping employees with Person-time 1793 1543 3108 Percentage of employees in key positions covered by anti-corruption difficulties in a year training sessions held and organized % 100 100 100
Total expense on comforting special employees and helping Number of employees (including directors) who participated in anti-
employees with difficulties RMB 10000 197.27 174.09 268.5 corruption training人次13205816423746675
Assistance to children’s education of the difficult employees Amounts involved in litigation or significant administrative penalties due
or enrollment scholarship for employees’ children in a year Person-time 325 434 589 to the Company’s unfair competition behavior during the reporting RMB 10000 0 0 0
period
Total expense on offering grants to the children of employees
with difficulties in going to school or rewarding the children RMB 10000 48.13 60.54 93.87
of employees to go to school 19 In terms of overall workforce the largest ethnic minority groups were the Tujia (0.98%) Uyghur (0.82%) Hui (0.71%) Yi (0.66%) and Zhuang
Helping employees with critical diseases in a year Person-time 60 131 179 (0.50%). Among these groups their representation in senior and middle management stood at Tujia (1.78%) Uyghur (0.11%) Hui (0.70%) Yi (2.52%) and Zhuang (0.22%).Total expense on helping employees with critical diseases RMB 10000 24.09 41.76 36.8 20 In 2025 the company issued the "Notice on Conducting Statistics and Reporting of Unsuccessful Incidents" requiring each member enterprise to
establish a positive incentive mechanism to encourage employees to voluntarily report unsuccessful incidents. As a result the data showed a
Percentage of employees signing collective contract % 97.07 94.62 - significant change compared to 2024.2025 Environmental Social and Governance (ESG) Report Appendix 70
Key Performance Indicators Unit 2025 2024 2023 Key Performance Indicators Unit 2025 2024 2023
Promoting Responsible Procurement Number of volunteers among employees Number 837 1159 3233
Number of suppliers who have established long-term cooperation with Hours of volunteer activities Hour 1160 3319 13107
the Company Number 10776 10747 12006
Total investment of all subsidiaries’ annual support in volunteer activities RMB
Chinese mainland and Hong Kong Macao and Taiwan Number 10742 10719 11973 from the Company in a year 10000 61.5 3.83 3.1
Overseas Number 34 28 33 Number of participations in or support activities related to the protection of
Number of suppliers screened and controlled by the Company’s the rights and interests of women children or the disabled
Number 117 71 310
environmental and social risks Number 7865 7792 6444 Number of entrepreneurial practice bases Number 8 3 4
Chinese mainland and Hong Kong Macao and Taiwan Number 7831 7698 6444
Student internship position situation Person/day 25560 14760 20200Overseas Number 34 94 0
Innovative R&D Number of events participated organized by industry associations (above
the provincial level) Number 217 191 152
Investment in scientific research and innovation RMB hundred million 16.51 24.97 31.69 Expense related to industry associations and social organizations RMB 2110000 1399.99 - -
Number of R&D employees Number 6809 7863 9481
Percentage of R&D employees % 13.24 14.28 15.38
National intelligent manufacturing demonstration factories Number 2 2 1
Intelligent manufacturing demonstration factories Number 32 22 21 Appendix 3 IndexesDigital mine Number 22 18 15 Indexes of “Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen StockNumber of patent applications for inventions during the reporting period Number 169 129 188 Exchange - Sustainability Report (For Trial Implementation)”
Number of patents for inventions granted during the reporting period Number 81 85 92
Number of active patents during the reporting period Number 4084 4261 3857 Chapter Section Guideline Chapter in the Report
Accumulated number of patents for utility models Number 3336 3423 3398 Article 20 Feature: Embracing Our Climate Responsibility
Accumulated number of invention patents Number 584 501 429 Article 21 Feature: Embracing Our Climate Responsibility
Accumulated number of design patents Number 11 11 11 Article 22 Feature: Embracing Our Climate Responsibility
Product and Service Quality Article 23 Feature: Embracing Our Climate Responsibility
Products recalled due to safety and health concerns % 0 0 0 Section 1 Article 24 Feature: Embracing Our Climate Responsibility
Article 25 Feature: Embracing Our Climate Responsibility
Lawsuits involving product and service safety and health Case 0 0 0
Article 26 Feature: Embracing Our Climate Responsibility
Cement product overall pass rate % 100 100 100
Article 27 Feature: Embracing Our Climate Responsibility
Number of complaints about products and services received during the
year Number 21 68 143 Article 28 Feature: Embracing Our Climate ResponsibilityChapter 3
The percentage of complaints properly replied to and disposed Article 29 Advancing Green Development Across Multiple Fronts
accounted for % 100 100 100 Article 30 Advancing Green Development Across Multiple Fronts
Number of complaints due to the disclose of customer information Number 0 0 0 Section 2 Article 31 Advancing Green Development Across Multiple Fronts
Responsible Business Operation Article 32 Advancing Green Development Across Multiple Fronts
Total amount invested in public welfare (including material donations) RMB 10000 4028.72 4285.53 4967 Article 33 Advancing Green Development Across Multiple Fronts
Amount of targeted assistance/rural revitalization investment Article 34 Advancing Green Development Across Multiple Fronts
(including material donations) RMB 10000 3392.76 3377.73 3531.70 Article 35 Advancing Green Development Across Multiple Fronts
Section 3
Amount of educational investment (including material donations) RMB 10000 38 111.29 137.9 Article 36 Advancing Green Development Across Multiple Fronts
Amount of public facility construction investment (including material RMB 10000 317.00 465.60 668.42 Article 37 Advancing Green Development Across Multiple Frontsdonations) Article 38 Embarking on a Shared Journey of Social Value
Donations to the affected areas RMB 10000 47.44 0.00 - Section 1 Article 39 Embarking on a Shared Journey of Social Value
Other donations RMB 10000 550.52 331.94 629.35 Chapter 4 Article 40 Embarking on a Shared Journey of Social Value
Number of industrial assistance projects 个 24 34 70 Article 41 Embarking on a Shared Journey of Social Value
Section 2
Number of people reached by rural revitalization 人 4128 3400 3684 Article 42 Embarking on a Shared Journey of Social Value
Number of established volunteer organizations or groups 个 16 13 41
Participation in volunteer activities 人次 1629 2405 3680 21 Among them the expenditure amount of the association/group organization with the highest budget was 3.7329 million yuan.2025 Environmental Social and Governance (ESG) Report Appendix 71
Chapter Section Guideline Chapter in the Report Disclosure Information Chapter in the Report
Section 2 Article 43 Not applicable Low-carbon Development Goal Feature: Embracing Our Climate Responsibility
Formulation and Strategic Measures
Article 44 Embarking on a Shared Journey of Social Value
Resource Management Measures Advancing Green Development Across Multiple Fronts-
Article 45 Embarking on a Shared Journey of Social Value Embracing Green Actions Developing Circular
The Company's accounts payable (including notes payable) Economy
exceed 30 billion but there are no overdue payments. The Resource Management Measures Advancing Green Development Across Multiple Fronts-
Chapter 4 Section 3 Article 46 Company does not need to disclose the payment for small and Embracing Green Actions Developing Circular
medium-sized enterprises through the National Enterprise Economy
Credit Information Publicity System.Energy Saving and Carbon Reduction Feature: Embracing Our Climate Responsibility
Article 47 Embarking on a Shared Journey of Social Value Statistical Detection & Assessment
Article 48 Embarking on a Shared Journey of Social Value Reward and Punishment SystemMeasures for Resource and
Article 49 Building a Stronghold for Talent Development Environment Management Green Action and Measures Advancing Green Development Across Multiple Fronts–
Section 4 System Embracing Green Actions
Article 50 Building a Stronghold for Talent Development
Green and Low-carbon Certification Advancing Green Development Across Multiple Fronts–
Article 51 Advancing Our Long-Term Vision Innovate Low-Carbon Products
Section 1 Article 52 Embarking on a Shared Journey of Social Value Environmental Legitimacy and Advancing Green Development Across Multiple Fronts–
Article 53 Advancing Our Long-Term Vision Compliance Emission Compliance Management
Chapter 5
Article 54 Embarking on a Shared Journey of Social Value Resource Management Measures Advancing Green Development Across Multiple Fronts- Embracing Green Actions Developing Circular
Section 2 Article 55 Embarking on a Shared Journey of Social Value Economy
Article 56 Embarking on a Shared Journey of Social Value Energy Saving and Carbon Reduction Feature: Embracing Our Climate Responsibility
Statistical Detection & Assessment
Reward and Punishment System
Social IndicatorsIndexes of “Reference of ESG Indicators System for ESG Reports of Listed Companies Level I Level IIControlled by Central Enterprises”
Recruitment and Employment Building a Stronghold for Talent Development-
Employee Recruitment and Retention
Disclosure Information Chapter in the Report Employee Salary and Welfare Building a Stronghold for Talent Development-
Environmental Indicators Benefits Employee Salary and Welfare Benefits
Level I Level II Employees’ Rights and Employee Health and Safety Building a Stronghold for Talent Development-
Interests Occupational Health and Safety
Water Resources Advancing Green Development Across Multiple Fronts-
Developing Circular Economy Employee Development and Training Building a Stronghold for Talent Development-
Employee Training and Development
Materials Advancing Green Development Across Multiple Fronts-
Developing Circular Economy Employee Satisfaction Building a Stronghold for Talent Development-
Source Consumption Employee Salary and Welfare Benefits
Energy Advancing Green Development Across Multiple Fronts-
Embracing Green Actions Product Safety and Quality Embarking on a Shared Journey of Social Value-Product and Service Quality
Packaging Material Advancing Green Development Across Multiple Fronts- Product and Service Customer Service and Rights Embarking on a Shared Journey of Social Value-
Emission Compliance Management- Management Product and Service Quality
Wastewater Advancing Green Development Across Multiple Fronts- Innovative Development Embarking on a Shared Journey of Social Value-
Emission Compliance Management Innovative R&D
Prevention and Control of Waste Gas Advancing Green Development Across Multiple Fronts- Supplier Management Embarking on a Shared Journey of Social Value-
Pollution Emission Compliance Management Supply Chain Safety Promoting Responsible Procurement
Solid Waste Advancing Green Development Across Multiple Fronts- Management Supply Chain Management Embarking on a Shared Journey of Social Value-
Emission Compliance Management Promoting Responsible Procurement
Greenhouse Gas Emissions Feature: Embracing Our Climate Responsibility Tax Payment /
Emission Reduction Management Feature: Embracing Our Climate Responsibility Community Co-building Embarking on a Shared Journey of Social Value-
Climate Change Responsible Business Operations
Environmental Rights Transaction Feature: Embracing Our Climate Responsibility Social Contribution Public Welfare Activities Embarking on a Shared Journey of Social Value-
Climate Risks Management Feature: Embracing Our Climate Responsibility Responsible Business Operations
Biodiversity Impacts of Production Services and Advancing Green Development Across Multiple Fronts- Responding to National Strategies Embarking on a Shared Journey of Social Value-Products on Biodiversity Biodiversity Protection Responsible Business Operations2025 Environmental Social and Governance (ESG) Report Appendix 72
Disclosure Information Chapter in the Report
Governance Indicators
Level I Level II
Governance Strategy and Governance Strategy and Procedure Embarking on a Shared Journey of Social Value-
Organization Framework Advancing Modernized Governance
Organizational Structure and Embarking on a Shared Journey of Social Value-
Functions Advancing Modernized Governance
Remuneration Management Building a Stronghold for Talent Development-
Employee Salary and Welfare Benefits
Regulating Governance Internal Control Embarking on a Shared Journey of Social Value-
Advancing Modernized Governance
Integrity Building Embarking on a Shared Journey of Social Value-
Advancing Modernized Governance
Fair Competition Embarking on a Shared Journey of Social Value-
Advancing Modernized Governance
Investor Relations Investor Relation Management Advancing Our Long-Term Vision-Investor
Management and Communication
Shareholders’ Equity
Shareholders’ Equity Advancing Our Long-Term Vision-Investor
Communication
Creditors’ Equity Advancing Our Long-Term Vision-Investor
Communication
Transparency of Information Information Disclosure System Advancing Our Long-Term Vision-Investor
Disclosure Communication
Information Disclosure Quality Advancing Our Long-Term Vision-ESG Awards and
Recognitions
Compliant Operation and Risk Compliant Operation Embarking on a Shared Journey of Social Value-
Management Advancing Modernized Governance
Risk Management Embarking on a Shared Journey of Social Value-
Advancing Modernized Governance
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