Stock Code

Company official website?www.palm-la.com

Email?002431@palm-la.com

Address of Zhengzhou Office: 16-18th Floors Haihui Center at the intersection of Dongfeng Environmental Social and Governance (ESG) Report

South Road and Kangning Street Zhengdong New District Zhengzhou City Henan Province

China Palm Eco-Town Development Co. Ltd.Address of Guangzhou Office: 6th Floor Block B Zhuguang Xincheng International Center No.

3 Qingyi Street Machang Road Tianhe District Guangzhou City Guangdong Province ChinaContents

CONTENTS

Report Preface

About This Report 01 01 03 05

Governance Empowerment Steady Common Welfare Shared

Chairman?s Message 03 Value Symbiosis Industry

and Long-Term Development Co-progress Responsibility

About Palm Eco-Town 05

Party Building Guidance 21 Innovation-driven Development 63 Practicing Social Welfare 103

Corporate Governance 24 Product and Service Safety and Quality 73 Support for Rural Revitalization 104

Sustainable Development Risk Management and Internal Control 29 Responsible Supply Chain 76 Response to the ?Belt and Road? Initiative 106

Governance

Compliance Operations and Business Ethics 30 Data Security and Customer Privacy Protection 81

ESG Governance System 13

Stakeholder Communication 15

Management of Material Topics 16 02 04 Appendix

Building Green Towards Beauty Talent Cultivation United Indicator Index 107

Advancement

Climate Change Response 37 Key Performance Table 108

Environmental Compliance Management 43 Employee Rights Protection 85 Feedback Form 114

Resource Efficiency Enhancement 52 Training and Development 90

Ecosystem and Biodiversity Protection 57 Occupational Health and Work Safety 932025

Environmental Social and Governance (ESG) Report

Report Preface Data Description

All information and data cited in this report are sourced from Palm Eco-Town? s official documents statistical reports financial reports and

sustainability practice information collected compiled and reviewed by the Company?s various functional departments and business units.About This Report The Company warrants that this report contains no false records misleading statements or material omissions. Unless otherwise specified all currencies and amounts mentioned in this report are denominated in Renminbi (RMB).This report is the third Environmental Social and Governance (ESG) report (hereinafter referred to as ?this report?) released by Palm Eco-Town

Development Co. Ltd. (hereinafter referred to as ?Palm Eco-Town? or ?the Company?). Based on the principles of objectivity standardization Definition and Interpretation

transparency and comprehensiveness this report provides a detailed disclosure of the Company?s practices and performance in environmental

social and governance aspects for the year 2025.Definition Items Definition Content

Report Scope

The Company Palm Eco-Town We Palm Eco-Town Development Co. Ltd.This report focuses on ?Palm Eco-Town? as the main entity including its subsidiaries. Unless otherwise specified the scope of this report aligns

with that of the Company?s annual report.Palm Design Group Palm Design Group Co. Ltd.Time Frame

Belt Collins Belt Collins International (Hong Kong) Co. Limited

The time frame of this report is from January 1 2025 to December 31 2025 (referred to as the ?Reporting Period?). To enhance the

comparability and completeness of the report some content appropriately traces back to previous years or includes forward-looking

descriptions.Confirmation and Approval

Preparation Basis

This report was approved by the Company?s Board of Directors on April 23 2026 and is published concurrently with the annual report. The

Board of Directors commits to overseeing the content of the report to ensure it contains no false records or misleading statements and takes

Shenzhen Stock Exchange Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange – Sustainability Report responsibility for the authenticity accuracy and completeness of the content.

(For Trial Implementation)

Shenzhen Stock Exchange Self-Regulatory Guide No. 3 for Companies Listed on Shenzhen Stock Exchange – Preparation of Sustainability

Report

Access to the Report

Global Reporting Initiative GRI Sustainability Reporting Standards (GRI Standards)

China Enterprise Reform and Development Society Guide to Corporate Sustainability in China (CASS-ESG 6.0) This report can be accessed and downloaded on the Company?s website (www.palm-la.com) the Shenzhen Stock Exchange website

(www.szse.cn) and the CNINFO website (www.cninfo.com.cn). This report is published in both Chinese and English. The English version is

Task Force on Climate-related Financial Disclosures (TCFD) Framework translated from the Chinese version. In case of any discrepancies the Chinese version shall prevail.UN Sustainable Development Goals (SDGs)

01022025

Environmental Social and Governance (ESG) Report

Staying True to Green Development Fulfilling the Mission of Ecological Priority

Chairman?s Message We have always adhered to the conviction that ?lucid waters and lush mountains are invaluable assets? integrating green and low-carbon

principles throughout our entire business process. In terms of environmental protection and control we organized more than 50 environmental

inspections throughout the year covering all ongoing projects and key environmental protection links strictly adhering to the ecological and

environmental red line.During the construction of major projects we benchmarked against green construction standards throughout the process. The ?Phase I Project

of the Two Institutes and One Center? was rated as a Demonstration Project of Green Construction in the Construction Industry of Zhengzhou

City in 2025 setting a benchmark for the industry. At the same time leveraging digital technologies for refined construction management we

Forging Ahead with Dedication successfully completed the construction of 246000 mu (approx. 16400 hectares) of high-standard farmland in Qingfeng County Puyang City

and Action Staying True to Our taking concrete actions to protect the ecological foundation and support food security and rural ecological revitalization.Driving Force through Innovation Upgrading through Scientific and Technological R&D

Mission Empowering a New

Innovation is the core engine for sustainable corporate development. By 2025 we have established multiple national provincial and

Journey with Green Initiatives municipal-level R&D platforms including the Palm R&D and Promotion Center of the National Engineering Research Center for Floriculture and

the Henan Provincial Engineering Research Center for Ecological Landscaping building a comprehensive R&D management system. As of the

end of the reporting period we had 96 R&D personnel accounting for nearly 11.85% of total employees demonstrating a steady improvement

The year 2025 marks a critical juncture for the successful conclusion of the 14th in our scientific research strength.Five-Year Plan and it has also been a year of resilient progress and quality-driven

In 2025 we focused on tackling key technologies for garden carbon sinks successfully completing the Henan Province screening and evaluation

efficiency enhancement for Palm Eco-Town Development Co. Ltd. (Palm). Under

project for high-carbon-sequestration tree species in landscaping and winning the Second Prize of the Science and Technology Progress

our ?One Body Two Wings? development strategy we have steadfastly

Award from the Henan Society of Landscape Architecture. Our independently developed new varieties and key technologies have been

advanced our business through pragmatic action and upheld our original

promoted and applied in numerous projects nationwide. Both our core intellectual property patents and new plant varieties have surpassed one

aspirations with a strong sense of responsibility making continuous strides in the

hundred. As a national high-tech enterprise and a leading enterprise in agricultural industrialization we continue to inject strong momentum

ESG field. On the occasion of releasing the 2025 ESG Report I would like to

into green development through technological innovation.express on behalf of the Board of Directors our sincere gratitude to government

departments at all levels the broader community investors and all our Staying True to Our Original Aspiration and Assuming Responsibility Demonstrating the Warmth of SOE Commitment

employees.Social responsibility is the core tenet of ESG and an unshirkable mission for state-owned enterprises. We have always based our efforts on the

——Liu Jianghua Secretary of the Party General Branch well-being of the people fulfilling our corporate citizenship responsibilities in all aspects.and Chairman of Palm Eco-Town Development Co. Ltd.In 2025 we proactively responded to the rural revitalization strategy by establishing a Digital and Smart Agriculture Business Unit. Taking the

integrated rice industry project in Fan County Puyang City as a flagship initiative and leveraging the experimental fields in Huaiyang District

Zhoukou City as well as the 90000 mu of high-standard farmland in Suiyang District Shangqiu City as key drivers we rely on our engineering

advantages in traditional high-standard farmland construction. Through the deep integration of ?technology finance and organized efforts?

we aim to become a comprehensive service provider for the entire industry chain of digital and smart agriculture. Through the full

Strengthening the Foundation through Party Building Building a Robust Compliance Governance Framework empowerment of digital and smart agriculture we support Henan in building itself into a strong agricultural province and safeguard the granary

of our great nation. We have strictly adhered to the bottom line of work safety conducting regular hazard inspections and emergency drills

Upholding the leadership of the Party is the ?root? and ?soul? of state-owned enterprises and it is also a fundamental guarantee for putting achieving the safety goal of ?zero fatalities and zero severe injuries? for the year. Through grassroots Party building we have also carried out

ESG principles into practice. In 2025 we thoroughly implemented the guiding principles of the Fourth Plenary Session of the 20th Central public welfare activities such as voluntary tree planting and educational support for underprivileged students conveying the warmth of SOEs

Committee of the Communist Party of China and the Central Economic Work Conference comprehensively consolidating the grassroots Party and demonstrating our sense of responsibility.building system. The Company currently has one General Party Branch seven Party branches and 89 registered Party members deeply

integrating Party building with production operations and ESG management and guiding ?ecological green? with ?Party building red.? The journey ahead is long and our resolve remains strong. As we embark on the new journey of the 15th Five-Year Plan high-quality ESG

development has become an important hallmark of the core competitiveness of state-owned enterprises. Going forward we will remain true to

In 2025 focusing on the theme of the ?Year of Standardized Management? we completed an optimized integration of our organizational our original aspiration and mission continue to integrate ESG principles into our strategic planning and entire operational process benchmark

structure and built an efficient modern SOE governance system. We advanced the revision of institutional rules cultivated a culture of against industry leaders and unwaveringly pursue a path of green low-carbon and sustainable development. Guided by Party building we will

compliance across the entire workforce and successfully obtained dual certification for our compliance management system under GB/T strengthen governance; anchored in ecology we will stay true to our mission; empowered by innovation we will drive development; and bound

35770-2022 / ISO 37301:2021 thereby laying a solid foundation for preserving and increasing the value of state-owned assets and ensuring by responsibility we will fulfill our duty. We will spare no effort to protect our ecological home support rural revitalization contribute to building

the stable operation of the Company. a beautiful China and continue to contribute Palm's strength to high-quality economic and social development.

03042025

Environmental Social and Governance (ESG) Report

About Palm Eco-Town

Company Profile

Palm Eco-Town Development Co. Ltd. was founded in 1984 and listed on the Shenzhen Stock Exchange in 2010 (stock code: 002431). It is Organizational Structure

currently a listed subsidiary held by Zhongyuan Yuzhi Investment Holding Group Co. Ltd.. The Company adheres to the green development

philosophy that ?lucid waters and lush mountains are invaluable assets.? Leveraging years of industry experience and brand advantages it has

refined its full industry chain of ?investment financing construction operation and management? steadily growing into a national group

General Meeting of

company integrating top-level planning design construction and comprehensive operation. Shareholders General Party Branch Committee

The Company follows a development path guided by design characterized by operational expertise and underpinned by market-oriented Development Strategy Committee

mechanisms with full-chain service capabilities. As a national high-tech enterprise and a national leading enterprise in agricultural

industrialization it holds a comprehensive qualification system including Class A qualification for architectural engineering design Class I

Audit Committee Board of Directors

general contracting for building construction Class I general contracting for municipal public works Class II general contracting for water

conservancy and hydropower engineering and Class A special qualification for landscape architecture engineering design. It has also obtained

four major international system certifications: ISO 9001 (Quality Management) ISO 14001 (Environmental Management) ISO 45001 Nomination Remuneration and Assessment Committee

(Occupational Health and Safety Management) and ISO 37301 (Compliance Management System).Safety Committee Management Layer

The Company implements a ?one body two wings? development strategy. The ?one body? is Green Urban & Rural Construction covering

planning and design eco-landscaping farmland and water conservancy housing construction and municipal works. The ?two wings? are Rural

Revitalization and Innovation Business. The Rural Revitalization wing focuses on digital agriculture cultural tourism industrial chain extension

etc. while the Innovation Business wing concentrates on digital technology and other emerging fields.Entering the new journey of the 15th Five-Year Plan the Company will continue to uphold the spirit of craftsmanship and is committed to

providing clients with high-quality integrated solutions for green urban-rural development and rural revitalization.

0506

Discipline Inspection & Supervision Department

Audit Management Department

Securities Development Department

General Office

Finance & Capital Department

Party-Mass & Human Resources Department

Risk Control & Legal Department

Business & Contract Department

Safety & Technology Department

Marketing & Client Department2025

Environmental Social and Governance (ESG) Report

Honors Received in 2025

Development History

Palm Eco-Town

2025

Gathering Strength for New Journey

The Company will closely follow national policy

opportunities and under the guidance of the 15th

Five-Year Plan embark on a new chapter.

2019

National Key Leading Enterprise 2024 Zhengzhou AAA Credit First Prize in Henan Provincial

in Agricultural Industrialization Enterprise in Survey and Design Landscape Architecture Planning State-owned Capital Control and Design in 2025

Ministry of Agriculture and Rural Affairs Zhengzhou Urban and Rural Henan Provincial Society of

Guided by the controlling shareholder the Company of the People?s Republic of China Construction Bureau Landscape Architecture

practices the development philosophy of ?lucid waters and

lush mountains are invaluable assets? proposes the ?One

Body Two Wings? strategy and its business scope covers

major key regions across the country. 2010

Listing Commencement

(Renamed to Palm Landscape Architecture Co. Ltd.) On

June 10 2010 the Company was listed on the Shenzhen

Stock Exchange with the stock code 002431 becoming

1993 the second listed landscaping enterprise in China?s capital market (the first in South China). Renamed to Palm First and Second Prizes in Henan Provincial Landscape Comprehensive Third Prize in the 4th Architecture Science and Technology Progress Award in 2025 Henan Province (Luoyang) Landscape

Eco-Town Development Co. Ltd. in 2015. Greening and Flower Border Construction Labor and Skills Competition

Henan Provincial Society of Landscape Architecture Department of Housing and Urban-Rural Development of

Business Upgrade Henan Province Henan Provincial Agriculture

Transportation and Construction Trade Union Committee

?Renamed to Guangdong Palm Landscape Engineering

Co. Ltd.) mainly engaged in landscape engineering

construction becoming one of the earliest enterprises in the

industry to enter the field of ecological human settlement

environment construction; the Company?s business began 1984

expanding from Guangdong nationwide.Company Establishment

(Zhongshan Xiaolan Palm Nursery) specializing in nursery

operations with business covering Guangdong and

surrounding provinces and cities.Carbon Path Practitioner Award Most Socially Responsible Listed 2025 Listed Company ESG

Company Award Value Communication Award

Securities Star Securities Star Shenzhen Value Online Information

07 Technology Co. Ltd. 082025

Environmental Social and Governance (ESG) Report

Palm Design Group

Member Unit of Guangdong Deputy Director Unit of the Planning and

Provincial Landscape Design Professional Committee of Guangdong 2025 Sustainability Design

Architecture and Ecological Provincial Landscape Architecture and Award Winner

Landscape Association Ecological Landscape Association 2024 ?Design Henan·Beautiful Village? Creative Design Competition and 4th Trace of

Guangdong Provincial Landscape Guangdong Provincial Landscape Guangzhou Design Week Rural Creative Design Competition Henan Division Excellent Creativity Award Third Prize

Architecture and Ecological Landscape Architecture and Ecological Landscape Organizing Committee

Association Association Design Henan·Beautiful Village Creative Design Competition Organizing Committee

Selected as an outstanding case 2024 Guangdong Provincial 2025 American Architecture

in the second China Landscape Environmental Art Design Award Master Prize

Practice Excellence Awards Bronze Prize 4th Trace of Rural Creative Design Competition Finals

Landscape Architecture and Beautiful Guangdong Provincial Environmental American Architecture Master Prize Outstanding Work Award

China Construction Professional Art Design Industry Association Organizing Committee

Committee China Society for Urban Trace of Rural Creative Design Competition Organizing Committee Rural Economic

Studies Research Center of the Ministry of Agriculture and Rural Affairs

2025 Henan Provincial Landscape Architecture Planning

and Design Second Prize

09 Henan Provincial Society of Landscape Architecture 102025

Environmental Social and Governance (ESG) Report

2025 Highlight Performance

Governance Performance

Social Performance

Total number of reported anti-corruption Number of senior executives participating in

Total investment in employee Labor discrimination incidents Total number of employees taking

and anti-bribery incidents anti-commercial bribery and anti-corruption

training parental leave

training

0cases 5 persons RMB47000 0 items 18persons

Number of concluded corruption Number of signed integrity agreements and

litigation cases filed related commercial conduct documents Total number of employee training sessions Number of workplace Number of work-related fatalities

safety accidents

0cases 111 persons 2800person-times 0 cases 0 persons

Environmental Performance R&D investment Number of customer complaints

1.23(in RMB 100000000) 0 times

Total greenhouse gas emissions Number of major administrative penalties imposed by

ecological environment authorities due to environmental

incidents

182.50 tons of CO2 equivalent 0 items

11122025

Environmental Social and Governance (ESG) Report

Sustainable Development

Governance

Palm Eco-Town attaches great importance to sustainable development integrating its concepts into corporate strategy and management. It

actively identifies and assesses risks in the Company?s management and development process seeks and seizes development opportunities

and explores sustainable development paths that align with the Company?s actual conditions. Commitment to Ecological Environmental Protection

Promoting Livelihood Improvement

Practicing the green development concept that ?lucid

During project operations in line with the princi-

waters and lush mountains are invaluable assets? the

ples of ?prosperous industry eco-friendly habi-

Company promotes ecological civilization. In project devel-

ESG Governance System tat civilized rural culture effective governance opment construction and operation it prioritizes ecologi- and affluent living? we adapt to local conditions

cal environmental protection preserving the original natu-

by introducing highly compatible industrial

ral features of project sites and avoiding any destructive

resources to achieve sustainable operations and

development models.The Company?s board of directors as the highest decision-making body for ESG governance is responsible for formulating the Company?s help address regional livelihood topics such as

strategic plans and policies in ESG ensuring the effective implementation of relevant policies and assuming full responsibility for related employment and income growth.policies systems and information disclosure. Managers from relevant functional departments and subsidiaries form the ESG report working

group responsible for the preparation information collection and verification of the Company?s annual ESG report.The Company has established the Social Responsibility System to guide and standardize the implementation of corporate social responsibility

work promoting the normalization of related activities. The Company actively fulfills its responsibilities for national development social

progress ecological environmental protection and resource conservation safeguarding the legitimate rights and interests of stakeholders

such as shareholders creditors employees customers suppliers consumers and communities and promoting the coordinated and

harmonious development of the Company with society and the environment. Prioritizing Employee Care

We advocate for a healthy lifestyle alongside

efficient work consistently focusing on employee

Practicing Social Welfare growth and development. Through organizing

diverse cultural activities we institutionalize

Case Study: ESG Training Meeting Upholding the philanthropic philosophy of employee care as part of daily management

?no boundaries for great endeavors no helping employees enhance their capabilities and

limits for great love? we actively engage in realize personal value.social welfare initiatives develop various

charitable projects and support disadvan-

The Company organized the kick-off and training meeting for the

taged groups in society. We contribute to

preparation of the 2025 ESG Report. The meeting interpreted

the development of national social welfare

updates on ESG policies systematically reviewed the Company?s

in areas such as ecological protection

ESG practices in the previous year and potential governance

social care and industry-academia-re-

improvements for the next year. Heads of various departments

search collaboration.and subsidiaries attended the meeting online/offline.Responsibility Concept

13142025

Environmental Social and Governance (ESG) Report

Stakeholder Communication Management of Material Topics

The Company emphasizes maintaining close communication with internal and external stakeholders actively establishing diversified The Company referred to the assessment methods of domestic and international disclosure standards such as SZSE Self-Regulatory Guidelines

communication channels to listen to their expectations and concerns and responding proactively to jointly advance ESG practices and build a for Listed Companies No. 17 – Sustainability Report (Trial) and GRI 3: Material Topics introducing perspectives of impact materiality and financial

sustainable future. materiality. A total of 5 topics were identified as financially material and 18 topics as impact material with focused responses provided in the

report.Stakeholders Expectations and Concerns Communication Channels Company Response

Information Disclosure

Performance Briefing Improving Corporate Governance

Steady Operation Enhancing Disclosure Quality TOPIC IDENTIFICATIONInvestor Research

Enhancing Investment Returns

Shareholders? Meeting Strengthening Investor

Steady Performance Growth Engagement

Shareholders and investors Investor Hotline Increasing Profitability STEP 1

SZSE Interactive Easy 01 Based on an analysis of the macro environment of the operating locations the industry in which the Company

operates and the Company?s business model 23 sustainability topics of significant importance or impact to the

Company and its stakeholders were identified. Identify the Company?s stakeholders and the impacts risks and

Employ in Compliance with Laws

Compensation And Benefits and Regulations opportunities the Company faces

Employee Communication

Training and Promotion Improve the Compensation and

Employee Training Benefits System

Rights And Interests Protection

Employee Care Activities Strengthen Talent Team Building

Employees Occupational Health and Safety Ensure Occupational Health And

Safety IMPACT MATERIALITY ANALYSIS

Ensure Product Quality Customer Communication and Strengthen Quality Management STEP 2

Provide High-Quality Products Feedback Channels Deepen Research and Evaluate the potential or actual positive or negative impacts of each topic on the external environment society

and Services After-Sales Service Development Innovation

02

and economy combining inputs from external stakeholders benchmarking against industry priorities and

Protect Customer Privacy Customer Satisfaction Survey Resolutely Protect Customer Customers Privacy expert judgment to assess impact materiality.Integrity and Mutual Benefit Bidding Activities Enhance Communication and Exchange

Stable Cooperation Supplier Exchange 03Ethical Procurement

Suppliers FINANCIAL MATERIALITY ANALYSIS

Resolutely Oppose Unfair

Fair Competition Competition STEP 3

Industry Cooperation Activities

Technical Exchange Strengthen Communication and 03 Within short-term medium-term and long-term timeframes identify potential financial impacts of topics by

Exhibitions and Seminars Cooperation analyzing risks and opportunities dependencies and other factors incorporating inputs from Company

Industry partners Win-Win Cooperation Actively Promote Industry

Cooperation departments and expert judgment to assess financial materiality.Media Communication

Sustainable Development Engage in Public WelfareCommunity Public Welfare

Practicing Social Welfare Activities Improve Community Environment

Community and Public Rural Revitalization Activities PRIORITIZATION OF TOPICS

Implement National Policies STEP 4

Response to the ?Belt and 04 The Company?s management reviews and discusses the assessment results of the impact importance and

Implement National Policies Road? Initiative financial importance of the topics and the priority ranking of the topics is ultimately confirmed by the Company?s

Climate Change Response Information Disclosure Support for Rural Revitalization board of directors ensuring that the relevant topics are disclosed in the report transparently balancedly and

Rural Revitalization Regulatory Cooperation Promote Green Urban and Rural

Government or Construction completely.Compliance Operation

Regulatory Agencies Operate in Compliance with

Laws and Regulations

Legal Tax Payment

15162025

Environmental Social and Governance (ESG) Report

Agenda List Materiality Topic Matrix

In 2025 based on the nature of the industry and disclosure requirements the Company added the ?Green Building? topic and identified it as

an topic of impact importance.Environmental Safeguarding Employees? Rights

Compliance Management and Interests

Pollutant Emissions Employee Training and

Development Climate Change Response

Waste Management

Product and Service Safety and Ecosystem and Biodiversity Conservation

Energy Utilization Quality

Occupational Health and Safety

Water Resource Social Contribution

Environmental Topics Social Topics Governance Topics Utilization Innovation-driven Development

Rural Revitalization

Circular Economy

Anti-Commercial Bribery and

Green Building Anti-Corruption

Climate Change Response Protecting Employee Rights Anti-Commercial Bribery and

Anti-Corruption

Pollutant Emissions Employee Training and Development

Anti-Unfair Competition

Waste Disposal Occupational Health and Safety

Stakeholder Communication

Environmental Compliance Innovation-driven Development

Management Due Diligence

Product and Service Safety and

Ecosystem and Biodiversity Quality Data Security and Customer Privacy Protection

Protection

Equal Treatment of Small and Medium-Sized

Supply Chain Security Enterprises

Energy Utilization

Data Security and Customer Privacy Stakeholder Engagement

Supply Chain Security

Water Resource Utilization Protection Due Diligence

Circular Economy Social Contribution Anti-Unfair Competition

Green Building Rural Revitalization

Equal Treatment of Small and

Medium-Sized Enterprises

Moderately Important Importance to Company Finances Very Important

Note: The Company is not involved in scientific research or technological development activities in sensitive areas of scientific ethics therefore

?Scientific Ethics? has not been listed as a substantive topic in this Reporting Period.

1718

Very Important Importance to Economic Social and Environmental Impact Moderately ImportantImage Source:Hainan Qingshui Bay Coastal Tourism Resort Project

PART 01

Governance Empowerment

Steady and Long-Term

Development

Response to Topics?

Anti-Commercial Bribery and Anti-Corruption Anti-Unfair Competition

Palm Eco-Town has always adhered to the leadership of the Party continuously optimized its corporate

governance structure strengthened internal control and risk management capabilities strictly upheld the

bottom line of business ethics effectively ensured the Company?s stable operation and promoted

sustainable development.2025

Environmental Social and Governance (ESG) Report

Party Building Guidance

Ideological Construction

Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era the Company thoroughly implements the spirit of the The Party organization of the Company has fully implemented the accountability system for ideological work establishing a working pattern

20th National Congress of the Communist Party of China and the Fourth Plenary Session of the 20th Central Committee integrates Party featuring ?unified leadership by the General Party Branch primary responsibilities borne by the Secretary of the General Party Branch specific

leadership into all aspects of corporate governance and ensures high-quality development through high-quality Party building. responsibilities assumed by leading officials in charge and joint participation of all functional departments?. It prioritizes centralized theoretical

learning strictly enforces the ?First Agenda? system and promotes regular education. Meanwhile integrating theoretical learning with practical

Organizational Construction activities and combining online and offline learning methods the organization endeavors to drive in-depth and effective theoretical learning?

The Company insists on treating theoretical learning as the primary political task carrying it out through various forms such as centralized study

In accordance with the Regulations on the Work of Primary Organizations of State-Owned Enterprises of the Communist Party of China (Trial)

and discussion individual self-study and special guidance. In 2025 the Company?s General Party Branch and its subordinate Party branches

and other documents the Company has formulated Party building work systems based on the actual conditions continuously improving the

conducted a total of 109 ?Three Meetings and One Lesson? sessions including 76 by the General Party Branch. Throughout the year the

Party organization management system and promoting further standardization and normalization of Party building work. During the Reporting

General Party Branch conducted 15 centralized theoretical learning sessions and implemented 52 ?First Agenda? learning items. In addition

Period the Company completed the work of incorporating Party building into the charters of the General Party Branch and each Party branch

the Company coordinated the management of various propaganda platforms carried out positive publicity around central tasks optimized the

integrating Party building into governance and systems and issued the Work Rules for the General Party Branch and Party Branches and revised

content of the Company?s OA Party building column Party building culture wall and other carriers and updated the Party building culture wall

the Five Party Building Work Systems among others. The Company earnestly implemented the organizational life meeting and democratic

4 times throughout the year. A total of 71 articles on policy interpretation and work updates were published with 12 articles adopted by the

evaluation system for Party members. In February the annual organizational life meeting was held where in-depth heart-to-heart talks

parent group. It assisted regional Party branches in writing 11 articles achieving a more consolidated ideological front and more precise risk

criticism and self-criticism and democratic evaluations were conducted ultimately selecting 7 outstanding Party members to further motivate

control.them to play a vanguard and exemplary role. In September the establishment of the General Party Branch and its three subordinate Party

branches was successfully completed. The Company comprehensively reviewed the information of Party members completed the transfer of

25 Party members into the organization and the transfer of 6 out making Party member management more standardized. Throughout the year

a total of 52 general Party branch committee meetings 4 Party member meetings and 16 Party group meetings were held with 185 items

pre-researched for decision-making.The Company emphasizes the construction of the Party member team strengthening the education of Party member development through

methods such as the ?Three Meetings and One Lesson? and centralized training improving the ideological political quality and Party spirit of

the team. During the Reporting Period 2 probationary Party members were converted to full membership 2 new development targets were

identified and the cultivation education and assessment of active Party membership applicants were continuously strengthened. Regular

meetings were held for ideological education and professional guidance to ensure outstanding talents are brought into the development ranks.By the end of the Reporting Period the Company had established 1 General Party Branch and 7 Party branches with a total of 89 registered

Party members.Party Lecture Education and Learning on the Spirit of the Central Eight-Point

Regulations

Work Style Construction

The Company strictly implemented all deployments on Party conduct and clean governance integrating the education and learning of the spirit

of the Central Eight-Point Regulations throughout the year. It conducted 13 special learning sessions sent over 2400 pre-holiday reminder

messages and analyzed 38 typical cases promoting Party members and cadres to be in awe and maintain vigilance. It conducted 4

comprehensive inspections on the implementation of the spirit of the Central Eight-Point Regulations and its detailed rules identified and

rectified 9 topics and improved 9 rectification measures ensuring the spirit of the Eight-Point Regulations was truly implemented in the

Company.General Party Branch Election

21222025

Environmental Social and Governance (ESG) Report

Party Building Brand Corporate Governance

The Company adheres to the philosophy of ?Party building guidance and deep integration? and

has established an exclusive Party building brand (LOGO) identity forming an innovative path for

deep integration of Party building under the brand of ? Palm? Honesty and Hard Work ?Tree?

Commitment and Responsibility.? Combined with the actual situation of the Company's Party Governance Structure

branch it has developed a distinctive ?Three Three Six? Party building brand working method.The Company focuses on creating an outstanding Party building brand using ?brand

strengthening to empower corporate culture upgrading? deeply promoting the integration of The Company strictly complies with the requirements of relevant laws and regulations such as the Company Law of the People’s Republic of

Party building and business enhancing the combat effectiveness cohesion and centripetal force China the Securities Law of the People’s Republic of China and the Guidelines for Corporate Governance of Listed Companies. It has formulated

of grassroots Party organizations continuously improving the quality and level of Party building internal rules and regulations including the Articles of Association Rules of Procedure for Shareholders’ Meetings and Rules of Procedure for

work and providing a strong political guarantee for driving the Company's high-quality Board Meetings. During the Reporting Period these were revised and issued in accordance with the latest requirements of relevant laws

development. regulations and guidelines. The Company continuously improves its corporate governance structure forming a governance mechanism with

clear responsibilities mutual coordination and checks and balances to ensure standardized operation. During the Reporting Period in

accordance with the Company Law Guidelines for Articles of Association of Listed Companies and Transitional Arrangements for the

The general Party branch of the Company has effectively integrated resources from all sides and improved the overall efficiency of Party Implementation of Supporting Rules and Regulations for the New Company Law as well as other relevant laws and normative documents the

building through the ?Party Building +? joint construction model. It has given full play to the role of in-service Party members carried out joint Company abolished the Board of Supervisors based on its actual situation. The responsibilities of the Board of Supervisors as stipulated by the

construction activities with sub-district communities and other Party organizations set up ?Party Member Demonstration Posts? and ?Party Company Law are now exercised by the Audit Committee of the Board of Directors.Member Strike Teams? urged Party members to participate in community-level governance in a solid and effective manner and guided them

to excel in their own positions and strive for excellence.In 2025 a total of 13 themed Party Day activities were carried out. During the Reporting Period the Company held:

7 shareholders? meetings reviewing and approving 24 proposals

13 board meetings reviewing and approving 54 proposals

| Shareholders? Meeting

The convening and conduct of shareholders? meetings the qualifications of attendees and the voting procedures all complied with the

Company Law Rules of Procedure for Shareholders’ Meetings and other laws and regulations. The Company strictly sent meeting notices to

shareholders 15 or 20 days before the meeting and engaged law firms to topic legal opinions on the shareholders? meetings. Shareholders?

meetings were conducted both on-site and online to facilitate participation by minority shareholders. For major matters affecting the interests

of minority investors separate voting was implemented to ensure all shareholders could fully exercise their rights.Activities for the 104th Anniversary of

Themed Party Day Activities the Founding of the Party

23242025

Environmental Social and Governance (ESG) Report

| Board of Directors ·Board Diversity

The Board of Directors is the decision-making body of the Company and is accountable to the shareholders? meeting. All directors performed The Company considers factors such as age educational background and professional experience to ensure board diversity while meeting

their duties in accordance with the Articles of Association Rules of Procedure for Board Meetings Independent Director System and other business needs. The Company?s directors possess profound industry expertise and extensive corporate management experience enabling them

requirements attending board and shareholders? meetings diligently and responsibly. to participate in corporate governance decisions from multiple perspectives.As of December 31 2025 the composition of the Company?s board is as follows:

·Special Committees of the Board of Directors

The Company?s Board of Directors has established three special committees: the Strategy Committee the Nomination and Remuneration Board Diversity

Committee and the Audit Committee each with corresponding working rules. Independent directors account for more than one-third of each

committee ensuring the scientific and standardized decision-making of the Board of Directors.Board Members (persons) 4

Special Committees Members Independent Directors Whether Independent Directors

(persons) (persons) Serve as Chairpersons Independent Directors

7 By Type

(persons) Non-Independent Directors

Strategy Committee 5 2 No 11

Nomination and Remuneration Committee 5 3 Yes

111

Audit Committee 3 2 Yes

4

555人3

By Gender By Educational By Age

(persons) Background (persons) (persons)

·Independence of the Board of Directors 10 3

The Company formulated the Independent Director System and completed revisions during the Reporting Period in accordance with the latest Male Doctor Postgraduate Born in the 1950s Born in the 1970s

legal and regulatory requirements further standardizing corporate operations and the conduct of independent directors to continuously

Female Bachelor Born in the 1960s Born in the 1980s

improve governance standards. Independent directors owe duties of loyalty and diligence to the Company and all shareholders perform their

duties independently and are not influenced by the Company its major shareholders actual controllers or other entities or individuals. The

Company strictly appoints four qualified experts as independent directors in accordance with regulations accounting for more than one-third

of the total number of board members. | Director and Executive Compensation Management

In accordance with the Company’s Articles of Association and other relevant regulations the Company determines the compensation plans for

Key Performance: directors and senior executives based on industry and regional income levels and the Company?s actual operating conditions. During the

Reporting Period to further deepen the compensation distribution system of ?performance aligned with rewards? and strengthen the

2 compensation management for directors and senior executives the Company adjusted the compensation for non-independent directors and senior executives with the adjustment plan approved by the shareholders? meeting. At the same time the Company formulated the ?Senior During the Reporting Period the Company held special meetings for Executive Compensation and Performance Evaluation Management System? to further improve the incentive and constraint mechanism closely

independent directors. linked to operational performance and enhance the Company?s operational management efficiency. The compensation structure for

non-independent directors and senior executives consists of a base salary plus performance-based pay. The base salary is an annual fixed

remuneration paid monthly while the performance-based pay is a variable remuneration paid according to the Company?s relevant evaluation

systems and results. Independent directors receive a fixed annual salary determined on an annual basis and paid monthly.

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Environmental Social and Governance (ESG) Report

| Investor Relations Management

Performance-Linked Principle

The Company values investor relations management and revised the Investor Relations Management System during the Reporting Period to

Individual annual income is linked to performance targets. Through the signing and further strengthen communication between the Company and investors and standardize investor relations management. The Company

evaluation of performance target responsibility agreements the Company and individual conducts investor communication through various channels including the Company?s official website telephone fax email on-site investor

performance are incentivized. research visits earnings conference calls and participation in collective investor reception days in Henan Province promptly addressing

investors? concerns and maintaining a good trust relationship between the Company and investors. Meanwhile while complying with

information disclosure rules the Company has established a major event communication mechanism with investors. When formulating major

Compensation Principle of Efficiency First with Due Consideration to Fairness plans involving shareholder rights the Company engages in full communication and consultation with investors through various means.Plan Principles

The annual salary level should not only help motivate managers and special key talents but

also take into account the Company?s management status and industry compensation

standards.Principle of Comprehensive Incentives

Combine fixed income with risk rewards short-term incentives with long-term incentives Key Performance

and material incentives with spiritual incentives. Be realistic open and fair and implement

scientific assessments.Protection of Investors? Rights and Interests Participated in/received investor research activities 5 times including hosting 1 online earnings conference call for

| Information Disclosure the annual report and participating in 1 collective investor reception day in Henan Province.The Company strictly complies with laws and regulations such as the Administrative Measures for Information Disclosure of Listed Companies Interacted with investors 86 times on the Shenzhen Stock Exchange?s Interactive Easy platform with a response rate

and has established systems including the Information Disclosure Management Measures and the Registration and Filing System for Insiders with

Access to Inside Information to standardize external information disclosure practices ensuring timely truthful accurate and complete

information disclosure and safeguarding the fair right to know for all investors especially small and medium-sized investors. At the same time of 96.63%.the Company attaches great importance to the management of inside information. Unpublished matters shall not be disclosed in advance to

any individual or unit and insider trading is strictly prevented to maintain the fairness impartiality and transparency of the Company?s

information disclosure.Key Performance

| Public Opinion Management

To enhance the Company?s ability to respond to various public opinions during the Reporting Period the Company formulated the Public

During the Reporting Period the Company disclosed 4 periodic reports 116 temporary announcements (excluding Opinion Management System in accordance with relevant laws regulations and the Company Articles of Association based on the Company?s

182 actual situation. This established a rapid response and emergency handling mechanism for public opinions and set up a leading group for public opinion management with the chairman serving as the head to ensure timely and appropriate handling of the impact of various public opinions periodic reports) and online materials (including all externally disclosed documents such as periodic reports on the Company?s stock price commercial reputation and normal business operations effectively protecting the legitimate rights and interests

of investors.temporary announcements and intermediary reports).

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Environmental Social and Governance (ESG) Report

Tax Management

Risk Management and Internal Control The Company has established a tax risk management system centered on institutional improvement professional support and dynamic

compliance integrating tax risk management with internal controls and external communication to achieve full-process and full-chain tax risk

control. The Company has formulated the Tax Management System and management processes for various taxes with the Finance Department

Risk Management System uniformly responsible for organizing supervising and managing tax-related work while the financial departments of each unit are responsible

for implementing tax-related matters locally to ensure lawful and compliant tax payments.The Company treats risk management as a key task continuously improving relevant systems and risk prevention mechanisms. Through regular

To strengthen internal controls the Company has established specialized management systems and internal control processes to standardize

risk assessments the Company identifies and evaluates various internal and external risks that may affect its operations covering key areas

financial behavior and mitigate potential risks. By improving financial accounting systems and maintaining strict accounting records the

such as production and operations financial conditions external guarantees litigation and enforcement and information disclosure forming

Company ensures the authenticity and accuracy of tax filings. For annual settlements and complex tax-related matters the Company relies on

quarterly Risk Assessment Reports. Based on assessment results the Company formulates response measures and recommendations for specific

professional advice from tax consultants to ensure compliance and avoid risks arising from misinterpretation of policies. In response to major

risk items implements dynamic risk management and promptly handles daily risk events to ensure the continuous and effective operation of

tax policy adjustments the Company dynamically optimizes tax strategies and promptly updates contracts invoices and tax management

the risk prevention mechanism. At the same time through organizing legal publicity and training the Company continuously enhances the risk

processes. Additionally the Company regularly conducts self-assessments of tax risks develops response plans in advance and conducts

awareness and response capabilities of all employees providing a solid foundation for lawful and compliant operations.timely reviews and rectifications. It actively strengthens communication with tax authorities to effectively reduce information asymmetry risks.The Company also focuses on enhancing the professional capabilities of its tax team dynamically tracking tax policies and organizing training

sessions. It has introduced digital management tools embedding tax management modules into the ERP system to enable automatic alerts and

Internal Audit audits of tax-related rules continuously improving the intelligence and standardization of tax management.The Company continuously improves its internal control management system formulating the Internal Audit Work Regulations and supporting

standard manuals to inspect and supervise the compliance of various business processes. The Company conducts regular internal control

evaluations annually and tracks and rectifies the evaluation results. Additionally external audit institutions are hired to conduct independent Compliance Operations and

audits resulting in internal control evaluation reports and internal control audit reports continuously optimizing the internal control system and

enhancing its effectiveness and risk prevention capabilities. Business Ethics

During the Reporting Period no significant or material deficiencies in the design or execution of the Company?s internal controls were

identified.Compliance Operation

To strengthen compliance management and effectively mitigate compliance risks the Company has formulated the Compliance Management

Measures establishing a robust compliance management system and improving mechanisms including institutional construction risk

Key Performance identification compliance reviews risk response performance evaluation compliance culture and supervision and accountability to ensure

steady development. The Company has established a three-tier compliance management system at the governance management and

execution levels. The governance level includes the Company?s Party organization and board of directors while the management level includes

the executive team compliance management leadership group and chief compliance officer. The execution level follows a ?three lines of

15 defense? arrangement with the risk control and legal department leading compliance management responsible for organizing guiding and promoting compliance efforts. Disciplinary inspection agencies and departments such as audit inspection and accountability supervise the During the Reporting Period the Company conducted internal audits including special engineering audits economic implementation of compliance requirements within their authority and investigate violations.

The Company integrates compliance management into key operational areas such as corporate governance contract management and market

responsibility audits internal control management system audits and evaluations and regular inspections required by the

transactions as well as international operations to enhance the effectiveness of compliance management and promote high-quality

development. Additionally the Company incorporates compliance management into the Party organization?s legal training annually developing

Shenzhen Stock Exchange identifying 94 topics and proposing 77 audit recommendations. a legal compliance training plan to strengthen compliance education and awareness fostering a culture of compliance and lawful operations.At the same time the Company leverages digital processes to ensure the implementation of compliance outcomes.

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Case Study: Legal Training on Corporate Governance and

State-Owned Asset Management Requirements for

State-Controlled Listed Companies Anti-Commercial Bribery and Anti-Corruption

The Company adheres to the business philosophy of integrity incorporating clean governance into routine management and resolutely

opposes and strictly prohibits all forms of corruption and fraudulent behavior. The Company continues to improve its clean governance risk

prevention system strictly complying with national anti-corruption laws and regulations. It has established multiple disciplinary inspection and

The Company invited senior lawyers with professional expertise to conduct training sessions for all employees organizing legal supervision systems including the Internal Supervision Management System Clean Employment Management Regulations Complaint and

training to provide a more systematic and in-depth understanding of legal knowledge among the staff. This enhanced Reporting Work Management Regulations Interim Measures for Accountability for Violations in Business Investment and Talk Work Management

employees? compliance awareness improved their professional capabilities and enabled them to better handle practical topics Measures. Additionally the Company joined the Enterprise Anti-Fraud Alliance Committee (Guangdong Enterprise Internal Control Association)

encountered in their work thereby increasing work efficiency and quality. to further promote a clean and fair business environment. During the Reporting Period the Company did not incur any major penalties related

to commercial bribery or embezzlement incidents.Internally the Company continuously strengthens awareness of clean self-discipline by having employees sign the Clean Employment

Commitment Letter and the Clean Governance Responsibility Letter. Externally the Company signs Clean Employment Contracts with relevant

partners extending clean governance requirements to the entire business collaboration process building an integrated internal and external

clean governance system to lay a solid foundation for sustainable development.Key Performance

Key Performance

Conducted 1 legal training session.Number of employees participating in anti-commercial bribery and anti-corruption training: 213

Number of senior management personnel participating in anti-commercial bribery and anti-corruption training: 5

Total duration of anti-commercial bribery and anti-corruption training: 8.08 hours

During the Reporting Period the Company obtained the Compliance Management System

Certification issued by the China Quality Certification Center successfully passing the GB/T

35770-2022 and ISO 37301:2021 dual international and domestic certification for

Number of employees signing the Clean Employment Commitment Letter and Clean Governance Responsibility Letter: 111

compliance management systems. This marks significant achievements in the Company?s

compliance management field elevating its legal compliance level and risk prevention

capabilities to a new stage. Number of clean governance-related promotional articles published on the Company OA: 107

Compliance Management System Number of ?Clean Culture into Projects? initiatives implemented: 3

Certification

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Environmental Social and Governance (ESG) Report

The Company continues to promote the development of an integrity culture. Through diverse forms such as integrity training and warning

education it raises awareness of ethical practice among all employees and jointly fosters a clean upright and healthy organizational

atmosphere. Anti-Unfair Competition

Case Study: ?Strengthening Work Style Construction and Building a The Company strictly adheres to laws and regulations such as the Anti-Unfair Competition Law of the People’s Republic of China and the

Clean Defense Line? Pre-Holiday Warning Education Activity Anti-Monopoly Law of the People’s Republic of China upholding fair just and open principles in commercial competition. In 2025 the Company

formulated four marketing systems including the Construction and Operation Project Marketing Research and Judgment Management

Measures and conducted related policy interpretations for some market personnel clarifying the norms and processes for market work. It

continues to establish and improve fair competition and responsible marketing operational mechanisms actively maintaining a healthy and

orderly market environment.During the Reporting Period the Company did not experience any litigation or major administrative penalties arising from false advertising or

unfair competition practices.Reporting and Whistleblower Protection

The Company places high importance on reporting management and whistleblower protection striving to create a safe and reliable reporting

environment. The Company has established the Complaint and Reporting Work Management Regulations to standardize the management of

complaints and reports. The Discipline Inspection and Supervision Department as an independent oversight body is fully responsible for the

acceptance and investigation of complaints and reports. To facilitate internal employees and external stakeholders in raising topics the

Company has established multiple and accessible reporting channels including reporting hotlines email and mailboxes to receive information

on violations of rules and discipline. The Discipline Inspection and Supervision Department promptly accepts and handles complaints and

Case Study: ?Ringing the Pre-Holiday Clean Bell and Tightening the reports conducts investigations based on the reported information and strictly holds violators accountable according to the investigation

Discipline String? Clean Governance Warning Education Meeting results. At the same time all reported information and the identity of whistleblowers are kept strictly confidential.Reporting Hotline 020-85189210/85189209 (landline) 13825186571 (mobile)

Reporting Email zljc2021@163.com

17th Floor Building 3A Zhengzhou Haihui Center ? 6th Floor Building B Zhuguang New Town

Reporting Mailbox International Center Guangzhou (east side fire stairwell)

Reporting Website http://report.palm-la.com:8099/kipoff.aspx

Mailing And 16-18th Floor Building 3A Zhengzhou Haihui Center Intersection of Dongfeng South Road and Kangning

Visiting Address Street Zhengdong New District Zhengzhou (Discipline Inspection and Supervision Department) Postal

Code: 450000

33 34Image Source:Shanghai Green Gem Garden·Feifan

PART 02

Building Green Towards

Beauty

Response to Topics?

Climate Change Response Environmental Compliance Management Energy

Utilization Water Resource Utilization Pollutant Emissions Waste Management

Circular Economy Ecosystem and Biodiversity Protection Green Building

Palm Eco-Town consistently practices the green development philosophy of ?Lucid waters and lush mountains are

invaluable assets? actively responds to the national ?Dual Carbon? policy establishes and improves an environmental

management system advances environmental protection management and deeply develops green innovation

technologies such as garden plant cultivation ecological restoration and low-carbon environmental protection

contributing to the national ecological civilization construction and the development of new quality productivity.2025

Environmental Social and Governance (ESG) Report

Climate Change Response Governance

The Company incorporates ?Climate Change Response? as a core issue in its sustainable development and gradually advances the

establishment of a climate governance system. The board of directors is the highest body overseeing and coordinating climate change

management. Functional and business departments collaborate to implement and advance specific climate action initiatives.The Company actively responds to the ?Dual Carbon? policy integrating it into corporate development strategies and production

management. Based on the Company?s actual conditions feasible green development planning measures and pathways are adopted to

support the national carbon peak and carbon neutrality goals. In accordance with exchange guidelines and the recommendations of the Task

Force on Climate-related Financial Disclosures (TCFD) the Company manages and discloses climate-related matters across four areas: Strategy

governance strategy risk and opportunity identification and indicators and objectives.The Company closely monitors the impact of climate change and adopts proactive strategies to gradually build long-term climate resilience

aiming to effectively address climate challenges and seize opportunities from transformational development.Potential Financial

Risk Type Risk Description 1Impact Cycle Impact Response Measures

Strengthen monitoring of weather forecasts and enhance extreme weather risk

Sudden extreme weather events such as typhoons heavy rain or storms may cause

prevention measures flexibly adjusting project timelines based on weather

infrastructure damage engineering structural failures or lead to water and power outages Increased

conditions;

ACUTE RISK further resulting in work stoppages delayed project deliveries and impacts on operations Short to medium term operational costs

Purchase relevant insurance for employees to enhance safety protection;

and customer relationships. Employees may be unable to work due to extreme weather or decreased revenue

Develop and implement detailed disaster contingency plans to ensure rapid

face safety risks leading to labor shortages and reduced productivity.operational recovery.PHYSICAL RISK Long-term climate changes such as rising temperatures and sea levels may affect business Increased

Reasonably arrange working hours enhance high-temperature work protection and

CHRONIC RISK operations. Prolonged high temperatures could increase work difficulty and impact employee Long term operational costs

improve working conditions.health. decreased revenue

Domestic and international climate change and energy management policies and

POLICY AND requirements are continuously evolving imposing higher demands on corporate low-carbon Increased Closely monitor the latest domestic and international climate-related policies and

LEGAL RISKS Short to medium termdevelopment. Failure to comply with local legal requirements or disclose relevant compliance costs regulations and respond promptly.information may result in regulatory penalties and other risks.Market customer preferences are gradually shifting towards products services or design

Increased operational

concepts that are more low-carbon and environmentally friendly which may increase design Actively adopt environmentally friendly materials and green building technologies;

MARKET RISK Short to long term costs; increased R&D

difficulty and operational costs. Failure to meet customer demands may impact business incorporate low-carbon and environmental considerations into designs.costs

operations.TRANSITION RISK

Increased management

REPUTATION As stakeholders pay more attention to climate change the Company?s reputation may be Strengthen communication with stakeholders and disclose the Company?s climate Medium to long term

RISK costs; decreased affected if improvements/enhancements are not made in a timely manner. change response measures in a timely and accurate manner.operating revenue

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Environmental Social and Governance (ESG) Report

Opportunity Type Opportunity Description 1Impact Cycle Potential Financial Impact

1Impact Cycle:

By developing green low-carbon and environmentally friendly technologies or services the Short-term (within 1 year): The impact on the Company is

PRODUCTS AND Medium to

Company can enhance its competitive advantage and profitability. Increased operating revenue usually rapid and temporary with a short duration typically not SERVICES long term

exceeding 1 year.Medium-term (1–5 years): The impact on the Company is more

With the growing global focus on climate change demand for ecological governance and sustained usually exerting significant influence within 1 to 5

green low-carbon construction may continue to rise. The Company can gain market share by years.MARKET Medium to Increased operating revenue

deepening its expertise in areas such as landscape plants ecological restoration technologies Long-term (over 5 years): The impact on the Company is OPPORTUNITIES long term

and green low-carbon technologies. profound and lasting typically lasting more than 5 years.Impact Risk and Opportunity Management | Extreme Weather Management

To systematically identify and manage climate-related risks and opportunities the Company integrates climate-related risks into its The Company?s construction projects are susceptible to sudden weather events such as typhoons. To effectively respond to and mitigate the

comprehensive risk management process covering the entire process from risk identification to response measures. Through continuous impact of such risks the Company has established comprehensive emergency plans and strengthens communication with meteorological

monitoring and regular evaluation the Company ensures timely responses to new challenges and opportunities brought by climate change. departments to take preventive measures against extreme weather in advance.IDENTIFICATION ASSESSMENT RESPONSE

Actively identify the physical Evaluate the influencing factors Based on the evaluation results

risks transition risks and of the identified risks and the Company formulates

potential opportunities the opportunities one by one as targeted response measures to TYPHOON STRONG WIND HEAVY RAIN TORRENTIAL RAIN LOW TEMPERATURE RAIN SNOW AND ICE

Company faces. Based on the well as their potential major equip itself with the ability to

Company?s actual situation and financial impacts and the time address climate challenges and Reinforce fences work sheds and Clear drainage pipes and ditches Provide workers with cold-proof

industry trends and referencing cycle of these impacts. seize opportunities. other facilities in advance remove before construction install clothing and take insulation measures

domestic and international items that can be blown away by intercepting ditches and sumps for temporary facilities. Clear snow

policy changes define and wind and secure lifting equipment. around foundation pits and equip and water accumulation in time lay

describe the risks and During typhoons and strong winds with sufficient water pumps. Suspend anti-slip materials in slippery areas

opportunities brought by suspend high-altitude and open-air outdoor operations such as earthwork and check the stability of

climate change to the Company. lifting operations and promptly and concrete pouring and cover high-altitude work facilities.evacuate personnel to safe indoor excavated areas for protection. High-altitude operations are strictly

areas. prohibited in severe weather and

safety precautions must also be

implemented for indoor operations.Management Process

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Environmental Social and Governance (ESG) Report

Indicators and Objectives Supporting the Dual-carbon Goals

The Company actively identifies climate-related indicators formulates carbon reduction targets based on actual conditions and adopts a series

of management measures to reduce greenhouse gas emissions and promote goal achievement. The Company has long been committed to the research promotion and application of green low-carbon and environmentally friendly

technologies. Leveraging its platform advantages it collaborates with research institutions for industry-academia-research innovation forming

multiple green technology achievements to promote green and low-carbon transformation in industry agriculture and services. In 2025 the

Company conducted in-depth research in areas such as green and low-carbon modern agriculture ecological restoration and garden plants

developing a series of technological achievements that effectively improved the quality and efficiency of green construction reduced

construction costs and achieved synergistic enhancement of green development and economic benefits.Carbon Reduction Goals

By 2030 green construction levels will be significantly improved effectively reducing construction energy consumption and Case Study

carbon emissions.Since 2021 the Company has collaborated with Henan Agricultural University and the Shanghai Academy of Landscape

Architecture Science and Planning for industry-academia-research cooperation. Combining independent research projects

Key Performance and drawing on forestry carbon sink measurement methods it proposed methods for carbon storage investigation carbon

pool determination and biomass measurement tailored to urban green space characteristics and carbon pool composition

providing references for urban green space carbon sink measurement. On October 17 2025 the group standard Technical

182.50 Specification for Carbon Storage Measurement in Urban Green Spaces led by the Company was reviewed and approved by the Standard Committee of the Henan Society of Landscape Architecture and officially released. This standard aims to Total Greenhouse Gas Emissions tons of CO? equivalent

provide a scientific basis for the measurement and management of carbon sequestration in Henan?s green spaces

supporting the regional ?dual carbon? goals while offering ecological support for the ecological protection and high-quality

182.50 development of the Yellow River Basin.Indirect Greenhouse Gas Emissions (Scope 2) tons of CO? equivalent

Statistical Scope: Calculated based on electricity consumption of the Zhengzhou headquarters office and Guangzhou branch office.Case Study

In 2025 the Company deepened its research on carbon

sequestration-related technologies in landscaping completing

the screening and evaluation of high carbon-sequestration tree

species for Henan?s urban greening providing scientific support

for urban ecological construction. The Company?s project

Screening and Evaluation of High Carbon-Sequestration Tree

Species for Henan’s Urban Greening won the second prize for

Scientific and Technological Progress from the Henan Society of

Landscape Architecture.

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Environmental Compliance

Management Case Study

On August 16 2025 the Company organized a training session on green construction practices related to ?formwork

Guided by the principles of building a resource-efficient society improving living environments and enhancing sustainable development engineering.? The meeting focused on exploring ways to reuse discarded formwork generated during construction

capabilities the Company has established a sound environmental management and execution system implementing effective control measures summarizing multiple reuse methods. It also emphasized handling materials carefully during construction to reduce dust

throughout its production and operations to minimize environmental impact safeguarding the ecological environment and supporting and increase the reuse rate of formwork.sustainable development through concrete actions.Environmental Management System

The Company strictly adheres to laws and regulations such as the Environmental

Protection Law of the People’ s Republic of China and related standards following

environmental management policies. It has formulated the Environmental

Management System establishing an organizational structure led by the general

manager overseen by the production deputy general manager and implemented

by the technical safety department and various regions branches and project

departments continuously improving the environmental management system to

standardize all production and operational activities and strictly enforce

environmental control requirements.During the Reporting Period the Company completed the renewal of its GB/T

24001-2016/ISO 14001:2015 certification with no major administrative penalties

or criminal liabilities imposed by environmental authorities due to violations. Environmental Risk Management

The Company strictly controls environmental risks actively identifying and evaluating environmental factors systematically inspecting key

production and operational processes dynamically updating environmental factor records implementing preventive measures improving

environmental emergency plans and continuously enhancing risk prevention and response capabilities to ensure all environmental risks are

under control and safeguard ecological security.| | Environmental Factor Identification and Evaluation Environmental Training

In accordance with the Environmental Management System the Company standardizes the process of identifying and evaluating environmental

The Company regularly conducts specialized environmental training to clarify corporate environmental management requirements guide factors formulating the Environmental Factor List Environmental Factor Identification and Evaluation Form and Environmental Factor

employees in standardized and green operations continuously enhance environmental awareness and competency and provide solid support Assessment and Management Plan. It conducts comprehensive identification and evaluation focusing on pollution emissions energy and

for achieving the Company?s environmental protection goals. resource consumption and other key dimensions tailored to the environmental conditions of the Company and its branches.

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Wastewater Control Measures

| Environmental Inspection

During the Reporting Period the Company routinely conducted specialized environmental inspections monitoring and hazard identification

organizing over 50 environmental inspections covering all ongoing projects and ensuring full coverage of key environmental aspects. Identified

The oil-water separation discharge from canteen kitchens must be equipped with grease

environmental issues were all minor hazards with no major violations. They mainly involved insufficient dust and waste control during

traps which must meet the standard 3-level discharge requirements and be cleaned

construction and minor delays in maintaining environmental facilities. All identified issues were promptly addressed and rectified on schedule.regularly.Additionally the Company established long-term prevention mechanisms conducted ?follow-up inspections? improved environmental

inspection workflows and consolidated rectification results to ensure closed-loop management.Septic tanks should be installed for toilets in living and office areas and environmental

mobile toilets at construction sites. The project department assigns dedicated personnel

to clean them regularly and maintain cleaning records.Domestic Sewage

| Environmental Emergency Management

The Company establishes and improves an emergency response mechanism for sudden environmental accidents. Based on the environmental

risk identification results of various projects in terms of chemical leaks flood prevention waterlogging extreme weather etc. targeted

environmental pollution emergency plans are formulated. At the same time in strict accordance with the requirements of the plan Drainage ditches should be set up around the project department area along with

environmental emergency drills are regularly organized and conducted to continuously improve emergency response capabilities. three-level sedimentation tanks and sumps to effectively control the sediment content

in wastewater discharged into municipal sewage pipes.When formulating construction plans fully consider adopting reasonable technical

means or other economically feasible methods to reduce water usage and the use of

Pollutant Emissions chemicals and oils thereby minimizing wastewater generation at the source.Dynamically monitor relevant indicators of sumps at construction sites fill out the

The Company strictly complies with laws and regulations such as the Water Pollution Prevention and Control Law of the People’s Republic of

Wastewater Monitoring Record Form and determine and implement measures to address

China the Air Pollution Prevention and Control Law of the People’s Republic of China and the Solid Waste Pollution Prevention and Control Law

issues based on wastewater assessment results.of the People’s Republic of China. It comprehensively carries out pollution prevention and control work strictly controls the generation and

emission of pollutants such as wastewater exhaust gas waste and noise in all aspects of the Company?s operations and project construction

clarifies pollution prevention and control goals continuously reduces environmental impact and earnestly fulfills ecological and environmental Wastewater treatment and purification should be carried out in sedimentation tanks and Construction

protection responsibilities. the PH value should be measured before discharge to ensure pollution-free emissions. Site Wastewater

The interior of sedimentation tanks should be waterproofed to prevent water from

seeping into the soil.The ground at construction sites should be treated to prevent leakage avoiding the

| Wastewater Management spillage leakage or dripping of oils to prevent water pollution.The Company strictly adheres to the Integrated Wastewater Discharge Standard (GB 8978-1996) for wastewater discharge implements

measures for the separation of rainwater and sewage and comprehensively uses physical chemical and biological treatment processes to

classify and treat wastewater effectively reducing water pollutant emissions and continuously improving water resource utilization and

pollution control levels.

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| Waste Gas Management

With the goal of achieving a significant reduction in sulfur dioxide emissions by 2030 the Company strictly adheres to the Integrated Emission

Standard of Air Pollutants (GB 16297) for exhaust gas emissions. For emissions such as dust at construction sites and exhaust from construction | Noise Management

vehicles and machinery the Company formulates and implements comprehensive control measures throughout the process to minimize

pollutant emissions ensure compliance with air pollutant standards and reduce the impact on the surrounding environment. The Company?s construction site formulates noise reduction measures in accordance with the requirements of Measurement Method of Noise

at Construction Site Boundary (GB/T 12524) and Noise Limits for Construction Sites (GB/T 12523). Noise monitoring points are set up around

the construction site for regular dynamic monitoring and timely recording of noise levels to ensure noise emissions do not exceed national

Exhaust Gas Control Measures standards. For projects that may generate environmental noise pollution during construction in urban areas the Company submits detailed

information of the project to the local environmental protection administrative department 15 days before the start of construction in

accordance with relevant requirements.Regularly sprinkle water on roads and material storage areas at construction sites to increase

air humidity settle dust particles and reduce dust.Main roads at construction sites should be hardened according to their use and soil should Noise Control Measures

be stored in concentrated piles. Exposed areas and concentrated piles of soil should be

covered solidified or greened.Set up enclosures around construction sites and use dense mesh to enclose building Preferentially use low-noise construction equipment and processes such as hydraulic pile

construction to prevent dust from spreading outward. drivers instead of diesel pile drivers; regularly maintain and service high-noise equipment to

Particulate ensure normal operation and reduce noise caused by equipment failure.Matter Control Install bag filters cyclone dust collectors etc. on equipment with high dust generation such Noise Source Control

as concrete mixing stations and material crushing to collect and remove particulate matter

from exhaust gases.Set up sound barriers soundproof covers etc. at the construction site to block noise

Strictly select building and decoration materials. For example asphalt and coal tar-based transmission; reasonably arrange the construction layout to keep high-noise equipment as far

anticorrosives are prohibited in civil building decoration and non-environmentally friendly away as possible from sensitive areas such as residential zones.fuels like coal must not be used in canteens at construction sites to reduce pollution at the Transmission

source. Path Control

Strengthen the control of emissions from flame retardants concrete admixtures containing Reasonably schedule construction times to avoid high-noise operations during nighttime

ammonia and welding fumes generated during steel bar welding used in construction to (22:00 to 6:00 the next day) and lunch breaks. If nighttime construction is necessary due to

ensure compliance with national standards. special circumstances a nighttime construction permit should be obtained in advance and

nearby residents should be notified.Use adsorbents such as activated carbon to absorb harmful gases in exhaust such as benzene Time Control

and formaldehyde.Under the action of catalysts convert harmful gases in exhaust into harmless substances

Gas Pollutant Control

such as converting nitrogen oxides into nitrogen and water.Strengthen patrols at construction sites and strictly prohibit the burning of waste on-site.

100% of the cooking fumes from canteens at construction sites must be treated with fume

purification before emission.Construction vehicles and machinery must undergo regular annual inspections to ensure their

exhaust emissions comply with national annual inspection requirements.

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| Waste Management At the same time the Company continuously improves construction quality standards strengthens recycling and other measures to achieve

source reduction and resource utilization minimizing the generation of solid waste and ensuring full utilization and safe disposal.The waste generated during the Company?s production and operation activities mainly includes construction waste at construction sites

domestic waste from office and living areas and hazardous waste. The Company strictly follows relevant regulations to classify and manage

waste and ensure compliant disposal striving to achieve standardized waste management goals. During the Reporting Period the Company Waste Recycling Measures

achieved a 100% compliant waste disposal rate.Construction Surplus Materials Such as

Reuse to produce secondary structural lintels wooden bricks and component formwork etc.Waste Treatment Measures Concrete Steel Bars and Formwork

Adopt measures such as splicing wooden battens for reuse achieving the recycling of

Wood Scrap

construction waste.Set up recyclable and non-recyclable trash bins in living and office areas arrange for

dedicated personnel to transport the waste daily and fill out the domestic waste transport Residues Such as Aerated After crushing mixing and other treatments they are used for backfilling and reuse in

record form. Concrete Blocks and Mortar equipment rooms bathrooms and other sunken rooms.Toxic and hazardous waste such as used batteries and ink cartridges must be sealed and

Domestic Waste collected for unified disposal. They must not be mixed or discarded randomly. | Light Pollution Management

Classify and stack construction waste according to the actual conditions on-site assign The Company ensures reasonable scheduling of work hours to avoid nighttime construction as much as possible. For necessary nighttime

dedicated personnel to sort and organize the construction waste and stack it reasonably. construction strictly follow the regulations of the construction administrative department and relevant authorities. Strictly control the types

and brightness of construction lighting fixtures reasonably adjust the direction of light irradiation add lamp covers to tower crane night

Construction sites should establish separate waste storage areas by category. lighting to concentrate light on the construction area and take shielding measures during high-altitude welding to avoid arc light leakage.Under the condition of ensuring sufficient lighting for on-site construction minimize disturbance to the surrounding residents? lives.Establish a slurry discharge area at the construction site.Construction Waste The classification rate of toxic and hazardous waste at construction sites must reach 100%.Green Construction

Fill out the Construction Waste Disposal Record Form monthly. Based on the targets for

construction waste discharge and utilization rates determine the control effectiveness and In accordance with the Standards for Environment and Sanitation at Construction Engineering Sites the Company has formulated the Civilized

recycling rate of construction waste. Construction Management System to systematically improve the level of civilized construction management at construction sites enhance the

working and living conditions on site safeguard employees? physical health and protect the ecological environment. To implement the

technical and economic policies of land-saving energy-saving water-saving material-saving and environmental protection in construction

Establish dedicated temporary storage sites for hazardous waste classify and store projects the Company adopts advanced technical measures and management to maximize resource conservation improve energy efficiency

hazardous waste such as waste oil and waste paint and take measures such as anti-leakage reduce the adverse environmental impact of construction activities and standardize green construction management. The ?Two Institutes

to prevent environmental pollution from hazardous waste leakage. and One Center(Phase I)? project has formulated multiple management systems such as the Green Construction Management System and

Green Construction Training System. The project establishes a green construction management system with the project manager as the

Arrange for professional units with appropriate qualifications to carry out recycling and primary responsible person formulates a green construction management responsibility system regularly conducts self-inspections

disposal to ensure hazardous waste is treated harmlessly. assessments and evaluations and organizes green construction education and training to enhance the green construction awareness of

construction personnel creating prerequisites for green buildings and high-quality projects.Hazardous waste Establish a waste management ledger to record information such as the amount type and

treatment methods of waste generated ensuring compliance in waste handling and disposal The Company strictly ensure that construction projects comply with green building standards. The ?Two Institutes and One Center(Phase I)?

at the construction site. project was awarded the first batch of Zhengzhou City?s Green Construction Demonstration Projects in the construction industry in 2025 and

the provincial-level green construction site is currently under application.

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Resource Efficiency Enhancement

Case Study

Energy Management

On April 7 2025 the Company organized a training session on the application of green construction technology and an

exchange meeting on innovative green construction technologies. The meeting primarily covered the application of innovative The Company?s main energy consumption comes from purchased electricity gasoline etc. The Company strictly complies with relevant laws

green construction technologies such as decorative fair-faced concrete technology bolt hole sealing technology and regulations such as the Energy Law of the People’ s Republic of China and the Energy Conservation Law of the People’ s Republic of

self-adhesive insulation film curing technology prefabricated component application technology reactive-bonded polymer China and has established systems such as the Energy Saving and Consumption Reduction Management System and the Material

wet-laid waterproof membrane technology (CCB reactive adhesion) LED temporary lighting and solar-powered mobile Transportation and Construction Energy Saving and Energy Utilization System to standardize the use of office and production energy

phone charging boxes on construction sites. It emphasized the importance of innovation and actively promoting green equipment and manage energy consumption in material transportation and construction. Through measures such as introducing

construction technologies based on actual project conditions. energy-saving equipment strengthening energy equipment management optimizing construction processes and promoting an

energy-saving culture the Company reduces energy consumption.Energy-saving and Consumption Reduction Measures

Use Energy-Saving Lamps or Materials

01 100% of the lighting in office areas and construction sites uses LED energy-saving lamps.

Temporary facilities use energy-saving materials with walls and roofs made of fireproof and thermally insulated

rock wool color steel plates.Strengthen Equipment Management and Maintenance

02 Operating and maintenance departments strictly implement energy-saving measures and regularly inspect

electrical facilities.Lighting air conditioning and sockets in living areas are controlled separately with three circuits each equipped

with a control box and meter. The control box includes a time switch to reasonably save electricity while meeting

daily usage needs.Case Study Reduce Office Energy Consumption

03 Reduce air conditioning electricity load and minimize air conditioning usage time.

The ?Green Construction Management Team? of the Company?s Two Institutes and One Center Phase I project utilized rainy Office equipment such as computers printers and copiers should reduce standby power consumption and

weather and spare time at migrant worker schools to organize training sessions for all management personnel on the Green power should be turned off promptly.Construction Guidelines Green Construction Evaluation Standards for Construction Projects and Main Indicators for the

Acceptance Evaluation of National Green Construction Demonstration Projects in the Construction Industry. They also conducted Reduce Construction Energy Consumption

briefings for all management personnel. When signing labor contracts with subcontractors and material supply contracts with

suppliers they clearly specified green construction requirements and material performance requirements to ensure source 04 The procurement of materials for engineering construction primarily follows the proximity principle to shorten

constraints and control. During technical briefings for construction personnel they also included green construction briefings transportation time and reduce energy consumption.to help workers understand the essence of green construction its importance and how to apply green construction

technologies in engineering projects. During on-site construction energy-efficient construction techniques are prioritized to save energy and reduce

consumption while meeting design requirements.Based on the characteristics of construction techniques work schedules are rationally arranged to avoid

nighttime construction as much as possible thereby reducing significant energy consumption.

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| Indicators and Objectives At the same time for the awarded high-standard farmland projects water-saving technologies or advanced water-saving equipment are

actively adopted in the project design and numerous integrated water and fertilizer facilities are constructed to reduce the waste of water

resources caused by the traditional flood irrigation farming model thereby promoting water conservation and achieving agricultural

The Company has set energy management goals planning to reduce energy consumption by 30% by 2030 compared to the 2024 baseline. water-saving goals.| Indicators and Objectives

Indicator 2025

To further strengthen water resource management the Company has set water resource management targets aiming to significantly

improve water use efficiency by 2030 with office area water consumption reduced by 10% compared to 2024.Total Purchased Electricity 343955kWh

Total Energy Consumption 42.27tons of standard coal Indicator 2025

Total Water Consumption 129 tons

Statistical Scope: Zhengzhou headquarters office and Guangzhou office. Among these energy consumption is calculated based on the total

purchased electricity.Statistical Scope Explanation: Water consumption at the Zhengzhou headquarters office.Water Resource Utilization

Material Management

The main source of water resources consumed during daily office operations and construction projects is municipal water supply. The

Company strictly adheres to national laws and regulations such as the Water Law of the People’ s Republic of China and related standards

establishing water-saving management systems and strengthening water usage management. Adhering to the principle of water To enhance material control the Company has formulated management measures such as the Self-operated Materials Management Measures

conservation the Company actively implements water-saving measures and water recycling practices in office and construction processes to for the Construction Sector (Trial) and the Quota Material Receipt Management System based on its actual business model. These measures

reduce waste and improve water resource efficiency. clearly define the procurement storage usage maintenance and disposal of materials for self-operated construction projects and implement

quota-based material receipt for materials used in construction. This strengthens the management of material conservation and resource

utilization assesses material usage by construction teams improves the planning and rationality of material use and strives to reduce

Water-saving Management Measures material waste and maximize material utilization through standardized full-process control.Promote the use of new water-saving appliances install sensor faucets in office areas and use water-saving fixtures in restrooms;

Advocate for water conservation by placing prominent water-saving signs at water sources;

| Standardized Material Management

Separately measure domestic and construction water usage and control water supply periods in living areas;

Strengthen the inspection of water-using equipment to eliminate occurrences of ?running bubbling dripping and leaking?. The Company implements corresponding management measures at key stages of material management optimizing multiple links to

effectively improve overall material use efficiency reduce waste and minimize environmental impact.Water Recycling Measures

Wastewater treated in sedimentation tanks at construction sites can be recycled or used for dust suppression promoting water

resource reuse.Reuse of foundation pit dewatering and rainwater prioritizing this water for car wash machines and sprinklers and installing water

recycling systems to reuse car wash water after sedimentation.

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Procurement plans are developed based on construction progress material turnover time and

Procurement inventory levels with reasonable quantities determined to reduce inventory and working capital

occupancy avoiding over-purchasing and preventing backlog or waste. Resource-Saving Measures for Construction Project Materials

Implement classification and labeling management ensure suitable environmental conditions

The project is a frame structure reinforced with square clamps and aluminum square tubes effectively reducing

Storage maintain accurate inventory records and conduct regular safety inspections to prevent material material waste compared to traditional methods.damage and safety incidents.Using standardized reusable molds leftover concrete from main structure pouring is repurposed to create secondary

components like wooden bricks and lintels for electrical switch boxes effectively conserving concrete and minimizing

Develop detailed transportation plans adopt appropriate packaging and protective measures select waste.Transportation suitable transportation tools monitor the transportation process and prepare contingency plans for

Templates with a width of no less than 30 cm are spliced for use reducing template waste without compromising

emergencies. construction quality.Collection and Use Establish a material requisition and approval process implement a quota-based material receipt

system ensure raw materials are collected as needed and used correctly and avoid waste.Packaging Material Recycling

| Reduction and Recycling A recyclable materials list is established on-site collecting and reusing packaging materials such as template

wrappings food packaging boxes and office waste paper generated during construction. Non-recyclable packaging

is stored in designated areas to prevent environmental pollution.Adhering to the circular economy principle of ?reduce reuse and recycle? the Company integrates efficient resource utilization throughout

the production process reducing resource consumption and waste generation at the source continuously improving resource utilization and

supporting green low-carbon and high-quality development. During engineering projects the Company actively promotes material

recycling and conservation measures. For materials such as packaging generated during projects the Company strictly follows construction

technical regulations to maximize recycling.Green Office

Reduction and Recycling Practices

The Company integrates green office concepts into daily operations actively practicing water and electricity conservation promoting

Material Recycling Measures in Construction Projects paperless workflows and maintaining clean living and office environments to foster a sustainable employee-engaged office ecosystem.Use detachable prefabricated houses for office and living areas;

Use detachable fences and wrought iron fences that can be reused.Purchasing and using recycled paper printing on both sides to save paper.Use standardized protective railings for site roads edges and safety passages.Use standardized protective sheds for power distribution boxes processing sheds and tower cranes.Office Developing online OA and BIP processes to advance paperless operations.Use steel safety nets for external scaffolding protection. Management

The project involves large-scale high-space construction utilizing a new type of disc-lock scaffolding for high-space

operations achieving over 70% reuse of scaffolding and other recyclable materials.

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Ecosystem and Biodiversity

Protection Governance

The Company actively responds to the UN Convention on Biological Diversity engages in ecosystem and biodiversity protection practices

implements strict ecological impact control measures and develops and applies ecological restoration technologies to minimize direct and

While pursuing high-quality development the Company strictly adheres to ecological protection redlines and natural habitat conservation indirect impacts of operations on natural ecosystems and biodiversity. Simultaneously the Company continuously enhances team expertise

requirements complies with environmental laws and regulations actively adopts eco-friendly technologies and processes and participates in through professional training raising employee awareness and skills in biodiversity protection.ecological restoration and species protection to practice green development and build a sustainable harmony between humans and nature.Strategy

Risk Type Risk Description 1Impact Cycle Potential Financial Impact Response Measures

As market focus on ecological and biodiversity protection grows failure to adapt to changing Monitor consumer preferences and actively implement

Long term Decrease in operating revenue

preferences may lead to loss of market share. biodiversity protection measures.MARKET RISK

Opportunity Type Opportunity Description 1Impact Cycle Potential Financial Impact Response Measures

For damaged ecosystems companies can provide restoration services such as saline-alkali

land treatment and polluted soil remediation. These services not only protect the ecological Medium term Increased operating revenue

Actively develop technologies such as garden plant cultivation and

environment but also enhance corporate reputation and economic benefits.PRODUCTS AND SERVICES ecological restoration adhere to the principles of sustainable

development in the planning design construction and operation

processes implement measures such as green buildings and

ecological restoration participate in ecological restoration

pollution prevention green and low-carbon and urban ecological

By actively fulfilling biodiversity protection responsibilities enterprises can establish a good projects to protect the ecological environment.brand image and corporate citizenship image which helps enhance market competitiveness Long term Increased operating revenue

and consumer recognition bringing more business opportunities and partners.REPUTATION

OPPORTUNITIES

1 Impact Cycle:

Short-term (within 1 year): The impact on the Company is usually rapid and temporary with a short duration typically not exceeding 1 year.Medium-term (1–5 years): The impact on the Company is more sustained usually exerting significant influence within 1 to 5 years.Long-term (over 5 years): The impact on the Company is profound and lasting typically lasting more than 5 years.

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Impact Risk and Opportunity Management

Company project construction may affect the local plant environment disturb micro-ecosystems and disrupt the original

ecological balance. In river and lake management and rural environmental comprehensive improvement projects the Company

conducts preliminary surveys of plant and biological resources at the project site and incorporates ecological restoration

technologies into the project planning. By using scientific methods such as the Shannon-Wiener index and Simpson index to

assess and identify ecosystem diversity risks the Company fully utilizes its developed eco-friendly technologies for ecological

restoration employing near-natural methods to enrich species resources at the project site for in-situ species conservation

achieving ecological balance and enhancing ecological stability. | Development and Application of Ecological Restoration Technologies

The Company has developed a series of ecological protection technologies such as ?Multi-coupling Long-term Low-carbon Water Ecological

Restoration Technology? ?Sponge City Green Space Water Landscape Comprehensive Ecological Restoration Technology? and

?Comprehensive Ecological Restoration Technology for Urban and Rural Green Space Landscape Water Bodies? and successfully applied these

technologies in projects effectively enriching species diversity enhancing ecosystem stability and improving ecological restoration efficiency.Indicators and Objectives | Protection of Biological Genetic Resources

The Company has established the most comprehensive joint germplasm resource nursery for Magnolia species and cultivars in China. By

Before designing related projects the Company conducts thorough project research and analysis integrates ecological restoration

introducing cuttings seeds or seedlings the Company has collected and preserved 135 species (including varieties) of Magnoliaceae from 10

technologies into the planning and fully utilizes ecological restoration technologies during construction to achieve biodiversity conservation.genera worldwide and 210 cultivars. It has conducted comprehensive field surveys and ex-situ conservation of several rare Magnolia species in

China researched their endangered mechanisms and protective utilization measures and established germplasm resource nurseries to provide

demonstrations for the protective development and utilization of rare plants.Goals Achievement Status

Currently the Company?s new varieties and key technologies have been promoted and applied in over 100 greening projects across 15

provinces and cities in China. The projects have established 10 demonstration bases with new and superior Magnolia varieties covering a

Zero occurrence of biodiversity impact accidents Achieved production and promotion area of 3450 mu cumulatively producing over 20 million Magnolia seedlings. The 47 Magnolia varieties granted new

variety protection rights by the National Forestry and Grassland Administration combine the excellent traits of domestic and international

Zero occurrence of ecological safety accidents Achieved Magnolia species achieving significant breakthroughs in ornamental value and stress resistance.

100% pre-construction inspection rate of ecological environment and

Achieved | Supporting Ecological Garden Construction

biodiversity impacts

As a member unit of the China Society of Landscape Architecture a national first-level industry association the Company has actively

participated in various activities organized by the society for many years. Under the society?s leadership it has achieved fruitful results in garden

carbon sinks ancient and famous tree protection and garden plant cultivation technologies. The Company has actively participated in the

formulation and release of multiple standards by the society making significant contributions to the ecological construction and development

Ecosystem and Biodiversity Practices of landscape architecture and promoting the advancement of plant diversity conservation.The Company actively promotes ecosystem and biodiversity conservation continuously strengthens the development and application of Based on its advanced experience in eco-town construction the Company has compiled and released the corporate standard Guidelines for the

ecological restoration technologies and improves ecological governance and restoration efficiency. It solidly advances the development Evaluation Index System of Eco-Towns guiding enterprises in eco-town construction from five dimensions: resource conservation

cultivation and protection of new plant varieties effectively enriching species diversity. At the same time the Company actively participates in environmental friendliness economic sustainability social harmony and cultural heritage. By establishing a scientific systematic and operable

the construction of ecological towns optimizes regional ecological spatial patterns fulfills its responsibilities in ecological garden construction evaluation index system for eco-towns this initiative implements important measures of the national ecological civilization construction

increases green coverage improves the living environment and maintains regional ecological balance through multi-dimensional protection strategy guiding towns to practice the concept that ?lucid waters and lush mountains are invaluable assets? throughout the entire cycle of

and construction measures promoting harmonious coexistence between humans and nature. planning construction and operation.

59 60Image Source:Hainan Qingshui Bay Coastal Tourism Resort Project

PART 03

Value Symbiosis Industry

Co-progress

Response to Topics?

Innovation-Driven Development Product and Service

Safety and Quality Supply Chain Security Data

Security and Customer Privacy Protection

Palm Eco-Town actively responds to and thoroughly implements the overall development strategy of ?One Body Two

Wings? insisting on innovation and R&D as the core driving force to empower industrial optimization and upgrading. The

Company is committed to continuously improving the quality of its products and services thereby winning the deep trust

of customers and enhancing its core competitive advantages in multiple dimensions and comprehensively. At the same

time it actively collaborates with a wide range of partners to explore and steadfastly move toward a sustainable future.2025

Environmental Social and Governance (ESG) Report

Innovation-driven Development Palm Design Group

The Company adheres to the innovative concept of ?Research for Application Technology for Empowerment? focusing on areas such as Recognized as a National High-Tech Enterprise

landscape plants ecological restoration green construction and modern agriculture. It continuously deepens scientific and technological

research and development to enhance core competitiveness driving high-quality development through innovation.| R&D Team Building

The Company continuously focuses on the construction of a scientific and technological innovation talent system further leveraging the

technical leadership of professionals by strengthening the introduction of high-end talents. By the end of the Reporting Period the Company?s

R&D Governance System R&D team had grown to 96 people accounting for 11.85% of the total workforce.To further standardize and strengthen the Company?s R&D project management and improve the quality of R&D project

implementation the Company has established management systems such as the R&D Project Management Measures constructing a

comprehensive R&D management system covering the entire process from project application and initiation to organization

implementation and final acceptance. The Company?s Ecological Technology Research Institute is responsible for the overall 1.04%

management of R&D projects including patents and trade secrets ensuring the normal operation of the Company?s scientific 21.88%

research and intellectual property work and the achievement of development goals. 42.71%

19.79%

57.29%

| R&D Platform Construction By Educational 57.29% By Gender

Background

As of now the Company has established 14 national provincial and municipal R&D platforms including the National Flower Engineering

Technology Research Center Palm R&D and Promotion Center the Henan Provincial Ecological Landscape Engineering Technology Research

Center and the Guangdong Provincial Ecological Landscape Engineering Technology Research and Development Center. Relying on these

platforms the Company continues to invest in R&D innovation constantly introducing new products and technologies. Below bachelor?s degree 19 Persons Male 55 Persons

Bachelor?s degree 55 Persons Female 41 Persons

Master?s degree 21 Persons

R&D Platforms and Qualification Certifications

Doctorate 1 Person

Palm Eco-Town

| Innovation Incentives

1 7 4 2 To encourage independent innovation stimulate the enthusiasm and initiative of all employees in technological innovation and enhance the national-level R&D platform provincial-level R&D platforms municipal-level R&D platforms and other R&D Company?s core competitiveness the Company has formulated the Management Measures for the Transformation of Scientific and

platforms; Technological Achievements and the Reward Measures for Scientific and Technological Innovation establishing multiple rewards covering

Recognized as a National High-Tech Enterprise Zhengzhou Sci-Tech Enterprise and Zhengzhou High-Tech High-Growth government research projects innovation subsidies and R&D achievements with incentives covering all employees. In 2025 the Company

High-Value-Added Enterprise further optimized the scientific and technological innovation incentive mechanism promoted the online construction of the incentive process

and effectively enhanced employees? innovation vitality and motivation.

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Strategy

The Company closely tracks changes in the internal and external environment such as market dynamics and technological evolution

systematically identifies potential risks and opportunities in the field of innovation and R&D and formulates targeted response strategies to

continuously consolidate and enhance the Company?s core competitiveness.Risk Type Risk Description 1Impact Cycle Potential Financial Impact Response Measures

Monitor and promptly grasp market trends and conduct product R&D

The competitive market environment and demand are constantly changing. If new products based on business needs; establish and improve an innovation and R&D

Medium to long term Decrease in operating income

or technologies fail to meet market expectations it may lead to a decline in market share. mechanism continuously increase R&D investment and enhance the

MARKET RISK Company?s R&D capabilities.Actively recruit new talent accelerate the construction of R&D platforms

The Company?s main business R&D involves cross-disciplinary fields making breakthroughs strengthen industry-university-research collaboration promote

Medium to long term Increase in R&D costs

in core technologies difficult and the R&D cycle may exceed expectations. breakthroughs in key technologies and achieve the transformation of

TECHNICAL RISK achievements.Opportunity Type Opportunity Description 1Impact Cycle Potential Financial Impact Response Measures

Policies such as new urbanization rural revitalization and ecological restoration have

Actively identify policy changes and align project R&D with policies;

generated a large number of project demands such as smart agriculture transformation and Increase in operating income

Long term continue to advance the development of ecological restoration

urban green space construction. With policy support the Company?s innovation capabilities decrease in R&D costs

technologies and the layout of modern agricultural technologies.POLICY OPPORTUNITY and reputation are enhanced bringing substantial profit returns.Promote the Company?s industrial upgrading and transformation by introducing digital Increase in operating income Actively apply informatization and digital technologies deepen smart

Long term

intelligent and green technologies. decrease in operational costs empowerment and accelerate the digital construction process.OPPORTUNITIES FOR

INDUSTRIAL UPGRADING

AND TRANSFORMATION

Management of Impacts Risks and Opportunities

1Impact cycle:

Before initiating a research and development project the relevant project leader in the Company conducts both online and offline research to

Short-term (within 1 year): The impact on the Company is usually rapid and temporary with a short duration typically not exceeding 1 year. understand industry trends and the Company?s actual needs. The project is then planned based on the Company?s strategic goals. Upon

Medium-term (1–5 years): The impact on the Company is more sustained usually having significant influence within 1 to 5 years. completion of the project proposal the Ecological Technology Research Institute organizes expert reviews. The research direction is optimized

based on the review feedback to mitigate early-stage risks. During the R&D phase the project leader implements dynamic management

Long-term (over 5 years): The impact on the Company is profound and lasting typically lasting more than 5 years. prepares annual summary reports to track progress and controls risks throughout the R&D process.

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Indicators and Objectives

In terms of innovation and R&D the Company primarily selects metrics such as the number of achievements patent conversion efficiency R&D Achievements

industry-academia collaboration and government projects as key considerations and formulates clear target plans accordingly.The Company is committed to developing new plant varieties ecological restoration technologies and green dual-carbon

technologies while actively advancing modern agricultural technology R&D. In recent years it has achieved a series of R&D

results in the integration of construction engineering and green ecology. Additionally the Company?s R&D direction

Objective Achievement Status in 2025 extends to agriculture and municipal facilities covering garden tools fertilizer crushing equipment farmland pump station

components and plant cultivation processes forming a diversified technological layout.Patent implementation conversion efficiency to reach over 95% 100%

Expand and maintain industry-academia collaborations with 2 partners 3

Apply for 4 government projects 4 Key Performance

Cultivate a total of 2 new plant varieties Approved 4 provincial construction methods

Palm Eco-Town

Case Study: Breeding and Promotion Project of High-Quality

1.23 132 Japonica Rice Along the Yellow RiverR&D investment RMB 100000000 Cumulative number of authorized patents Items

Cumulative number of authorized invention patents 25 Items Cumulative number of authorized utility model patents 2 Items The Company collaborated with Henan Agricultural University on the Breeding and Promotion Project of High-Quality

Japonica Rice Along the Yellow River establishing a cooperative model of ?research institutes + listed companies +

105 196 platform companies + village collectives? to create a closed-loop full-industry chain encompassing ?seeds - planting - storage - processing - packaging - logistics - sales? achieving end-to-end management of ?investment financing Cumulative number of authorized utility model patents Items Cumulative number of published papers Items

construction operation and management.? As of the end of the Reporting Period the project had applied for 3 invention

patents developed 1 new rice variety published 2 papers and provided technical services and guidance at least 3 times.

6 202 It effectively fills the gap in the Company?s rice R&D field lays out core technology research for future agricultural Cumulative number of software copyrights Items Cumulative number of trademarks Items development enhances the Company?s technical accumulation in agriculture strengthens its influence in the agricultural

sector and lays a solid foundation for the Company?s transformation.

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Case Study

Science and Technology Achievement Awards

Through industry-academia-research collaboration a series of products such as soil conditioners and multifunctional microbial

agents have been developed. Pilot test results show significant effects on soil improvement and fertility enhancement.Research on Superior Camellia Germplasm Screening and Evaluation of High Carbon

High-quality rice varieties from Henan Agricultural University were introduced and a demonstration project integrating primary

Innovation and Industrial Utilization Sequestration Tree Species for Landscaping in Henan

secondary and tertiary industries of rice was established in Fan County with the first batch of planting covering thousands of

2025 Henan Province Landscape Second Prize of Henan Provincial Landscape acres promoting rural revitalization through industrial development.

Architecture Science and Technology Architecture Science and Technology Progress

Progress Award First Prize Award in 2025

Transformation of Scientific and Technological Achievements

Case Study

The independently cultivated new varieties of camellias and magnolias have been promoted and planted on a cumulative area

of several thousand acres increasing farmers? income. Some varieties have been licensed for promotion to Europe receiving high

recognition from the International Camellia Society and distributors.Industry Co-construction

Linglong Multi-Season

Magnolia Series Magnolia Series As a leader in industry ecosystem co-construction the Company has established a tripartite linkage mechanism of ?peer exchange -

Small shrub Shrub flowering industry-academia-research collaboration - standard setting? continuously participating in academic exchange conferences deepening

dwarf and in two or three technical cooperation with universities and leading the formulation of multiple industry standards to provide momentum for sustainable

compact habit seasons industry development.dense flowers

fragrant

| Industry Exchange

Zhuangli Lingshuang To date the Company has joined 11 industry organizations sharing cutting-edge technologies innovative ideas and practical achievements

Magnolia Series Magnolia Series with the industry through annual conferences and seminars jointly analyzing industry trends and challenges promoting efficient information

Tree or large tree Shrub or tree exchange and deep integration of ideas and contributing to overall industry technological progress and business expansion.fast-growing evergreen

large and showy cold-tolerant

flowers highly dense flowers

double frangrant

The 15th Annual Conference of the Chinese Society of

Landscape Architecture was successfully held in

Kunming Yunnan Province. The Company was invited

to attend and deliver a keynote speech sharing its

years of continuous investment in the R&D of new

plant varieties and the resulting industrialization

achievements.Hongtian Xiangyun (Variety Rights No.: 20190322) Zonglin Xianzi (Variety Rights No.: 20190032) Huangtiaoji (Variety Rights No.: 20170040) Caihuang(Variety Rights No.: 20170039)

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| Standard Certification

In 2025 the Company actively organized internal experts to deeply study industry development trends and technological needs closely

The Henan Provincial Symposium on High-Quality Japonica Rice collaborating with authoritative institutions and enterprises. Throughout the year it led or participated in the formulation of 1 national

Along the Yellow River jointly organized by the Company Henan standard 1 group standard and 4 enterprise standards covering various professional fields such as smart landscaping greenhouse

Agricultural University and the Agriculture and Rural Affairs construction urban greening and ecological evaluation. By transforming the Company?s innovative practices into technical rules followed by

Bureau of Fan County Puyang City was held in Chenzhuang the industry it not only gained a development advantage but also strongly promoted the standardized development of green building and

Town Fan County. Experts and scholars engaged in in-depth ecological engineering.discussions on topics such as japonica rice variety breeding

scientific cultivation model innovation and brand building. | Promoting New Quality Productivity

The Company deeply empowers the development of new quality productivity through technological innovation. The Company has established

a systematic new camellia hybrid breeding technology an industrial key technology system and a new model for commercial development of

| Industry-Academia-Research Collaboration new varieties promoting the development of camellia breeding in China and the upgrading and transformation of the camellia industry as well

as the transformation of scientific and technological achievements in new varieties and technologies. The Company has successfully cultivated

The Company highly values collaboration with universities and research institutions building an integrated ?industry-academia-research-appli- new camellia varieties with multi-season flowering and high resistance These varieties have driven farmers to plant over tens of thousands of

cation? platform to accelerate the transformation of scientific research into productivity and provide a ?technology engine? for industrial mu of camellias boosted the output value of upstream and downstream industries by approximately 600 million yuan and break the

development. long-standing lag in camellia breeding in China compared to foreign countries. Through the establishment of an industrial chain for licensed

production and distribution and technology transfer it has provided technical support for increasing farmers? income industrial transformation

and quality improvement enhancing the industry?s awareness and respect for new plant variety rights and guiding and accelerating the

Case Study industrialization process of new agricultural and horticultural plant varieties in China.On April 22 the Company signed a strategic cooperation agreement with the People?s Government of Fan County Puyang City Intellectual Property Protection

and Henan Agricultural University. Through this agreement the Company will comprehensively support the high-quality

economic and social development of Fan County in seven major areas including rural revitalization and new urbanization

The Company places great emphasis on intellectual property protection strictly complies with relevant laws and regulations such as the Patent

construction. Henan Agricultural University will focus on its rice research team to strengthen the application of new varieties and

Law of the People’s Republic of China the Copyright Law of the People’s Republic of China and the Trademark Law of the People’s Republic of

technologies in Fan County extend the rice industry chain and provide solid technical support for Fan County to become an

China. It has formulated the Intellectual Property Management Measures clarifying the management structure and responsibilities application

agricultural powerhouse. The collaboration between the Company and Henan Agricultural University will build an integrated

and maintenance incentive measures and other matters related to intellectual property aiming to protect the Company?s intellectual property

?industry-academia-research-application? platform accelerating the transformation of scientific research into productivity and

from infringement while avoiding infringement of others? intellectual property thereby strengthening the Company?s intellectual property

providing a ?technology engine? for the development of the rice industry in Fan County.management. The Company?s Ecological Technology Research Institute is responsible for intellectual property management and assigns

dedicated personnel to manage and coordinate the application maintenance incentives implementation licensing transfer and risk

management of intellectual property.The Company?s R&D personnel regularly search for patent applications in related fields

of the same industry on the official website of the National Intellectual Property

Administration to prevent intellectual property infringement incidents.Inviting intermediaries to summarize and analyze the Company?s intellectual property

applications providing overall control over the Company?s intellectual property

applications.Intellectual Property

Protection Measures Inviting intellectual property agencies for in-depth exchanges to consult on key technical

aspects of intellectual property applications effectively enhancing the knowledge level

of intellectual property management personnel project technicians and R&D personnel.

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Product and Service Safety and As of the end of the Reporting Period the Company has obtained ISO 9001 Quality

Quality Management System certification. During the Reporting Period the Company did not experience any major safety or quality liability incidents related to products or

services.The Company always adheres to the principle of using craftsmanship to cultivate quality responsibility to build the brand and service to win

trust. The Company continuously improves product quality strictly ensures engineering quality and safety and deepens service quality to

provide customers with excellent and attentive projects and services establishing a good corporate image and winning long-term trust and Honorary Recognition

support from customers.Fuzhou City Light Project received a Grade A delivery rating from Vanke

Quality Management System

The Company strictly complies with laws and regulations such as the Product Quality Law of the People’s Republic of China implements the ISO The Company was awarded the ?Central and Western Region Residential

9001 quality management system requirements and the principle of ?Quality First Prevention as Priority? and has established a Landscape Grade B Supplier? by China Resources Land in 2025

comprehensive smooth and clearly defined quality management system.Management System Certification

The Company has formulated a series of systems including the Quality Responsibility System Construction Project Management Measures

(Trial) and Engineering Quality Standards Manual clarifying the responsibilities and authorities of various departments and positions in quality

management achieving standardized control throughout the entire lifecycle from project initiation to completion acceptance. In addition the | Quality Culture Development

Company has established quality acceptance and assessment standards based on the Construction Quality Supervision Inspection and

Assessment Measures strengthening process supervision and result assessment. The Company?s legal representative as the primary person

responsible for quality management bears the main leadership responsibility for engineering quality. The quality management department is The Company formulated the Quality Education and Training Method to standardize quality training management specifying that each safety

specifically responsible for the supervision and management of engineering quality including system formulation process standard revision and technology department must develop a quality training plan align training content with seasonal work priorities and collaborate with

technical document review and participation in accident investigation and handling. relevant departments for implementation. During the Reporting Period the Company conducted specialized training for project management

construction and technical operation personnel focusing on high-standard farmland construction. For internal teams systematic training was

organized on construction standards smart facility operation and maintenance and quality control aiming to enhance employees? professional

Based on its organizational structure and business development direction the Company has established a three-tier management mechanism

practical skills and ensure project quality and efficiency.to systematically promote the standardized operation of products and services across various business areas.Product and Service Management Structure

Case Study

As the entity for ?group-based control sector-based operation and professional development? the

Company adopts the ?Strategic Decision-Making + Intensive Control of Key Resources? model

HEADQUARTERS responsible for strategic decision-making and the intensive control of key resources such as human

financial and material resources ensuring the macro-level direction and resource allocation for the

Company?s products and services.Following the ?Professional Operation? approach the Company undertakes professional tasks and

PROFESSIONAL

manages the production operation and specific business activities of its subsidiaries helping to

SUBSIDIARY

enhance the professionalism and refinement of products and services.As a regional management center it independently carries out production and operation

management activities within its authorized scope flexibly adjusting products and services according

REGIONAL COMPANY

to the market characteristics and customer needs of different regions thereby improving market

responsiveness.

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Environmental Social and Governance (ESG) Report

| Customer Satisfaction

| Quality Management Objectives The Company regards customer satisfaction as a key metric for service quality continuously employing scientific survey methods and rigorous

statistical analysis tools to dynamically monitor changes in customer satisfaction. During the Reporting Period the Company conducted

The Company?s overarching quality management goal is ?zero major quality or safety incidents? with multiple specific control indicators set monthly customer satisfaction surveys from April to December with a cumulative participation of 202 projects and an average score of 98.39

and regularly monitored to ensure proactive quality management and continuous improvement in quality management effectiveness. points.Responsible Supply Chain

Indicator Unit Achievement Status in 2025

The Company?s procurement scope includes construction projects important equipment materials as well as services such as survey design

Product Qualification Rate Percent 100 and operation. The Company strictly adheres to relevant laws and regulations such as the Bidding and Tendering Law of the People’s Republic

of China and implements full lifecycle management for supplier qualification review selection and exit processes promoting upstream and

downstream enterprises to jointly fulfill social and environmental responsibilities and building an open fair and transparent supply chain

Customer Satisfaction Points 98.39

ecosystem.Number of Customer Complaints Times 0 Governance

The Company has established the Subcontractor Management Measures and the Construction Sector Project Bidding and Procurement

Management Measures (Trial) adhering to the management principles of ?compliant qualification dynamic management fairness and

impartiality hierarchical responsibility and incentivizing quality? to standardize the management processes of subcontractors and project

Customer Rights Protection procurement. A subcontractor management framework led by the Safety and Technology Department has been established to coordinate

subcontractor evaluation qualification and selection processes. Project departments are responsible for participating in the evaluation and

The Company consistently prioritizes customer satisfaction as its core business objective establishing a full-cycle customer service system. It qualification of subcontractors for their respective projects. Each department has clear responsibilities collaborates effectively and implements

actively expands channels through online platforms offline follow-ups surveys and other methods to gather customer feedback and relevant requirements at all levels actively promoting high-quality development of the supply chain in terms of safety stability and

suggestions striving to maintain strong customer relationships and improve service quality and standards. sustainability.| Customer Complaint Management During the Reporting Period the Company organized supply chain management training for relevant business personnel from various project

departments led by the headquarters? Safety and Technology Department.Adhering to the principles of ?objectivity fairness and timely resolution? the Company has established regulations such as the Measures for

the Administration of Engineering Project Complaints to standardize complaint handling procedures and ensure effective complaint resolution Case Study: Special Training on the Subcontractor

with clear guidelines on responsibilities complaint verification and handling. The Company?s Safety and Technology Department oversees Management Measures

customer complaint management with other relevant departments providing support and following up on the handling in collaboration based

on bussiness needs. During the Reporting Period the Company received no customer complaints.The training focused on four core areas: general provisions division of

management responsibilities full-process subcontractor management

and key forms and documentation requirements. Through the training

participants comprehensively grasped the standard processes and

practical requirements of subcontractor management further

Customer Complaint Mechanism standardized procurement and supply chain-related operational

behaviors enhanced professional capabilities in subcontractor

management and laid the foundation for standardized subcontractor

management and improved project performance.Complaint Complaint Communication with Reporting for Solution Follow-up

information verification complainant to approval implementation and feedback

collection develop a solution

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Environmental Social and Governance (ESG) Report

Strategy

Risk Type Risk Description 1Impact Cycle Potential Financial Impact Response Measures

Integrate supplier chain resources to enhance bargaining power and

reduce procurement costs;

Changes in market demand and other factors led to rising raw material prices resulting in Rising procurement costs and

Short-term declining sales revenue Monitor market trends in raw material prices and adjust procurement increased procurement costs.orders promptly according to production plans to reduce material waste at

MARKET RISK the source.Strengthen the reserve management of key raw material suppliers;

Key suppliers may fail to deliver normally due to natural disasters or insufficient production Through hierarchical management and preferential policies encourage

Rising procurement costs and

capacity affecting project progress and potentially leading to delays or additional Short-term subcontractors to improve performance and service quality and establish

declining sales revenue

SUPPLY CHAIN procurement costs. long-term partnerships with high-quality suppliers to enhance supply

DISRUPTION chain stability.Strictly standardize supplier qualification and selection management

processes to strengthen quality control;

Insufficient quality control by suppliers may lead to product quality issues affecting the

Short to Rising procurement costs and Regularly review and monitor suppliers? quality standards to ensure

construction progress or quality of the Company?s projects damaging the Company?s

Medium-term declining sales revenue products meet specified requirements;

reputation and customer satisfaction and even triggering legal liabilities.QUALITY RISK Establish an inspection team to strictly verify material quantities and

conduct quality sampling to ensure material quality and safety.Opportunity Type Opportunity Description 1Impact Cycle Potential Financial Impact

1 Impact cycle?

Through advanced technologies such as IoT and big data analysis achieve intelligent supply Short-term (within 1 year): The impact on the Company is

chain management strengthen the digital infrastructure optimize business processes Long term Reduce Operational Costs usually rapid and temporary with a short duration typically

DIGITAL improve approval efficiency and enhance supply chain management efficiency. not exceeding 1 year.TRANSFORMATION OF Medium-term (1–5 years): The impact on the Company is

SUPPLY CHAIN more sustained usually having significant influence within 1

to 5 years.The Company prioritizes suppliers with green certifications promotes the use of renewable Long-term (over 5 years): The impact on the Company is

materials and the recycling of construction waste reduces the carbon footprint of the

Long term Increase in Operating Revenue profound and lasting typically lasting more than 5 years.supply chain enhances the Company?s reputation and attracts environmentally conscious

GREEN SUPPLIER

DEVELOPMENT customers.

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Environmental Social and Governance (ESG) Report

Full Lifecycle Management of Suppliers

Management of Impacts Risks and Opportunities

The Company?s supply chain security risk management is carried out across the entire process of identification assessment

monitoring and management. Through comprehensive business process review and departmental collaboration supply chain The sub-supplier?s performance capability management capability and past

security risks are identified including those related to qualification compliance performance capability cooperation integrity performance are assessed. After the review is completed the "Sub-Supplier Maintenance Access

financial credit and management operations. Risk assessment ranks risks by impact level and probability of occurrence designating Application Process" is initiated. Upon approval the sub-supplier is entered into the

those with potential for significant economic/reputational loss and high probability as key control items. Monitoring relies on a sub-supplier database and classified as Grade C (Qualified).dynamic sub-supplier management system to update qualification credit and performance data in real time with various

departments jointly reporting any compliance violations. The company headquarters coordinates the review of risk anomalies

implements tiered control and develops targeted countermeasures for key risks. Supporting systems such as compliance access

blacklist determination process standardization and accountability for dereliction of duty are integrated alongside tiered selection

and incentive mechanisms for sub-suppliers forming a closed-loop risk management system. At the same time the SAP system and An annual selection of Excellent/Good sub-suppliers is conducted. Nominations are

various audit forms are used to ensure traceability and control throughout the entire risk management process. By implementing Selection made based on annual performance and the selection panel holds the "Excellent/Good

tiered incentives and priority cooperation for Grade A/B sub-suppliers standardizing processes and forms via the SAP system and Sub-Supplier Selection Meeting" to determine the results. After the selection the

including value-added services as criteria for Grade A evaluation the company seizes opportunities to improve quality and efficiency information of Excellent/Good sub-suppliers is updated and announced on OA.in supply chain management thereby supporting project performance and stable development.If a sub-supplier commits a major violation during the year it may be directly

downgraded to Grade D (Blacklist) with a restricted cooperation period of no less than

two years. During this period the sub-supplier is not permitted to participate in project

Indicators and Objectives bidding or cooperation with the company or its branches. After the period expires the

sub-supplier shall re-apply for database entry in accordance with the standard

Exit procedures.Indicator Unit Completion Status by 2025 In cases such as being classified as Grade D (Blacklist) failing to update or having

qualification certificates revoked upon expiration or voluntarily applying for removal

Total Number of Suppliers Suppliers 2682 from the database the "Sub-Supplier Removal Application Process" is initiated by the

company headquarters' Safety and Technology Department to complete the removal.Number of Local Suppliers Suppliers 886

Supplier ESG Management

Number of New Suppliers Signing Integrity Agreements Suppliers 14

| Green Procurement

Supplier Integrity Agreement Signing Rate Percent 100

The Company encourages cooperative suppliers to establish and operate environmental management systems such as ISO 14001 requiring no

major environmental administrative penalties or environmental accident records within the past three years. It also encourages suppliers to

Number of Suppliers Suspended Due to Non-Compliance Suppliers 319 conduct clean production audits and carbon verification as per industry requirements ensuring their operations comply with national and local

environmental regulations. The Company is gradually building a green supply chain management mechanism incorporating environmental

compliance into supplier access daily management and grading evaluations and exploring the development of green procurement guidelines

Number of Potential Suppliers Rejected Due to Non-Compliance Suppliers 0

and industry-appropriate environmental standards.During the Reporting Period the Company prioritized suppliers with green production capabilities in procurement promoted the selection of

Note: Local suppliers refer to those in Henan Province. energy-saving low-carbon and environmentally friendly materials and equipment guided cooperative suppliers to strengthen environmental

controls in production and gradually advanced green and low-carbon operations across supply chain segments based on project realities.

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Environmental Social and Governance (ESG) Report

| Sunshine Procurement

The Company has developed the Measures for the Administration of Project Procurement (Trial) in accordance with laws and regulations such as Data Security Management

the Tendering and Bidding Law of the People’s Republic of China and the Measures for the Supervision and Administration of Transparent

Procurement for Provincial Enterprises. Centered around this system the company has established a compliant and transparent procurement The Company has established institutional norms such as the Measures for the Management of Information System Changes the Measures for

framework. It defines clear operating procedures for tendering and procurement strictly adheres to seven management principles including the Management of IT Assets and the Measures for the Use of Computers and Basic Office Systems which define the data security management

transparency fairness and integrity and sets forth six prohibitive clauses. A management structure consisting of a Procurement Leadership responsibilities of various departments and positions standardize the full-process management standards for data collection storage use

Team and a Bid Evaluation Team has been established with the Discipline Inspection and Supervision Department clearly assigned the transmission and destruction and build a data security management framework characterized by ?participation of all personnel clear

responsibility for full-process oversight. This ensures that procurement decisions are made transparently operations are standardized responsibilities at each level and full-process control.? These provide solid institutional support and operational guidance for all data

supervision is in place and accountability is well-founded throughout the entire process. In addition the Company signs integrity agreements security-related initiatives. At the same time the Company has incorporated data security into the IT key KPI assessment system strengthened

with suppliers clarifying the ethical standards to be observed by both parties in business activities. A self-supervision mechanism is established the implementation of data security responsibilities and adopted a one-vote veto system for data security incidents ensuring that data security

to foster a law-abiding honest efficient and clean working environment ensuring that the cooperation process remains legal fair and management requirements are strictly implemented at every stage.transparent.Data Security Protection Measures

Case Study: Strengthening Integrity Defenses to

Safeguard Sunshine Procurement

Both data and interface transmission in application systems are encrypted. Privacy information of customers and

System Encryption

employees is prohibited from external disclosure. Access rights for internal queries are strictly controlled and

and Access Control

To further enhance the supervisory effectiveness of tendering inquiries into private information are limited to employees authorized by leadership.and procurement achieve full coverage of supervision over

tendering and procurement activities and comprehensively

improve the Company?s overall tendering and procurement All systems from operating systems to data layers strictly implement daily incremental backups and weekly full

management level the Company established the ?Tendering backups with monthly data recovery drills to ensure data integrity and recoverability;

and Procurement Supervision Pool? on November 28 and Data Backup and

conducted a specialized training session which focused on System Protection

studying the project procurement-related systems All business systems are deployed with system tools such as firewalls antivirus software bastion hosts and

supervisory responsibilities and processes. vulnerability scanners forming a comprehensive protective barrier against data attacks.Information Security Restore production system data to the test system on a monthly basis organize internal emergency drills

Equal Treatment of Small and Medium-Sized Enterprises Emergency Drill monthly and continuously improve the emergency response capabilities and coordination level of all employees.According to feedback from suppliers the total amount of outstanding payments owed by the Company to small and medium-sized enterprises

(SMEs) for 2025 is approximately 2.41 million yuan involving four SMEs.The Company is currently actively promoting communication and Conduct information security education publicity on the OA internal portal weekly and provide regular Information Security

negotiation with relevant parties to complete the settlement and payment of the relevant amounts as soon as possible. information system operation security training for all employees. During the Reporting Period the Company Education conducted 8 training sessions with over 1600 participants.Data Security and Customer Customer Privacy Protection

Privacy Protection The Company attaches great importance to the protection of customer information and privacy rights. During the system construction process

it adheres to the principle of security first embedding security considerations from the business requirement analysis stage. Through joint

assessments by business departments internal control departments and IT departments technical measures such as data storage encryption

The Company strictly complies with laws such as the Cybersecurity Law of the People’s Republic of China Data Security Law of the People’s

and output desensitization are adopted to implement comprehensive control over customer information data ensuring the security of data at

Republic of China and Personal Information Protection Law of the People’s Republic of China actively promoting standardized information

all stages and effectively safeguarding the legitimate rights and interests of customers.system construction and fully implementing data security and personal information protection responsibilities. During the Reporting Period the

Company experienced no data security or customer privacy breaches.

81 82PART 04

Talent Cultivation United

Advancement

Response to Topics?

Employee Rights Protection Employee Training and

Development Occupational Health and Safety

Palm Eco-Town consistently adheres to a ?people-oriented? philosophy by effectively safeguarding employees?

legitimate rights and interests emphasizing employee training and career development and fostering an equal

inclusive and harmonious work atmosphere. The Company has established a competitive compensation and benefits

system along with a robust incentive mechanism strengthened employee care and occupational health and safety

and is fully committed to achieving mutual growth and shared success between the Company and its employees.2025

Environmental Social and Governance (ESG) Report

Employee Rights Protection

2.72%1.97%1.48%0.12%

The Company strictly complies with the Labor Law of the People’s Republic of China the Labor Contract Law of the People’s Republic of China 9.01%

and other relevant laws and regulations. It has established a standardized human resources management mechanism continuously improved

23.09%

the human resources management system and enhanced organizational operational efficiency. In 2025 the Party-Mass Human Resources 95.31%

Department in alignment with the Company?s actual operational management comprehensively reviewed and revised human

resources-related policies. A series of management documents including the Personnel Management System were reviewed and released

according to procedures thereby establishing a complete human resources policy framework. Through the strict implementation of these 66.30%

policies the Company effectively safeguards employees? legitimate rights and interests and builds harmonious and stable labor relations.By Region By Educational

Background

Talent Attraction and Recruitment

The Company consistently adheres to the principles of ?fairness openness and justice? and continuously promoted its talent acquisition

programs. During the Reporting Period the Company revised the Recruitment Management System to further standardize the recruitment and

hiring process insisting on job matching and comprehensive capabilities as core selection criteria to ensure compliance and fairness in

Mainland China 772 Persons Doctorate 1 Person Master?s Degree 73 Persons

recruitment and to eliminate discrimination.Foreign countries 16 Persons Bachelor?s Degree 537 Persons Associate?s Degree 187 Persons

The Company adopts diversified social recruitment channels including but not limited to online recruitment through websites such as 51job and

Hong Kong Macao and Taiwan regions 22 Persons High School and Below 12 Persons

Zhaopin introduction of outstanding talents through internal and external recommendations and targeted excavation of outstanding and

special professional talents through headhunting services. We conduct social recruitment in an all-round way and accurately introduce

outstanding talents that meet the development needs of the Company.As of the end of the Reporting Period the total number of employees of the Company was 810 and 65 new employees were recruited 0.62% 14.57% 10.62%

externally in 2025.

9.51%

4.81%84.81%7.65%

60.25%39.75%16.30%45.31%

By Position By Profession

24.82%26.91%

54.07%

By Gender By Age

Senior Management 5 Persons Production 367 Persons Technology 218 Persons

Middle Management 118 Persons Sales 62 Persons Finance 77 Persons

Other Employees 687 Persons

Under 30 years old (excluding 30 years old) 132 Persons

Female 322 Persons Administration 86 Persons

30-40 years old (including 30 excluding 40 years old) 438 Persons

Male 488 Persons

40-50 years old (including 40 excluding 50 years old) 201 Persons

50 years old and above 39 Persons

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Environmental Social and Governance (ESG) Report

Diversity Equity and Inclusion | Performance Management

The Company consistently adheres to legal and compliant employment practices strictly prohibits any form of child labor or forced labor The Company formulates the Performance Management Measures establishing a clear performance evaluation and feedback mechanism. By

rigorously implements the principle of equal employment protects employees from discrimination based on factors such as race religion and combining regular performance communication with the application of results and improvement initiatives it fully stimulates employee

gender ensures employees enjoy equal opportunities in all aspects including recruitment compensation training and promotion and is potential and work enthusiasm promotes the joint enhancement of individual and organizational performance and provides strong support for

committed to building a diverse equal and inclusive workplace environment. the Company?s high-quality development. The Company conducts performance evaluations on a quarterly/annual cycle. Organizational

performance for each unit is evaluated on an annual cycle. Individual performance for non-managerial staff is evaluated on a quarterly cycle.During the Reporting Period the Company had a total of 17 employees from ethnic minorities and 7 employees with disabilities. No incidents Based on the evaluation results differentiated plans are formulated for the calculation and distribution of performance-based pay.of child labor or forced labor occurred.At the same time the Company has established smooth performance feedback and appeal mechanisms. If an employee disagrees with the

assessment result and cannot reach an agreement after communicating and consulting with the assessor they may submit a written appeal to

| Protection of Female Employees? Rights and Interests the human resources department of their unit in the form of a departmental document within 3 working days after the assessment concludes.After investigation by human resources the direct superior of the assessor will review the assessment materials. If unreasonable circumstances

The Company strictly complies with national laws and regulations concerning the protection of female employees safeguards the legitimate are indeed found a re-assessment should be required. If the human resources department cannot coordinate the matter will be reported to

rights and interests of female employees during pregnancy childbirth and breastfeeding periods ensures female employees legally enjoy the performance management group which will assign a specialist to investigate and make a final ruling according to the prescribed

maternity check-up leave maternity leave and breastfeeding leave treats these periods as normal work and pays full wages. The Company procedures.provides thoughtful care and exclusive benefits for female employees actively fosters a respectful caring and equal workplace atmosphere

and effectively protects female employees? physical and mental health as well as their legitimate rights and interests. | Employee Benefits System

Compensation and Benefits The Company has built a diversified benefits system providing employees with good benefits and life security attaching great importance to

their physical and mental health and comprehensively enhancing their sense of belonging identification and cohesion.| Compensation Management

The Company strictly complies with national and local relevant laws and regulations. Based on market principles industry characteristics and

its own operational conditions it formulates the Compensation Management System establishing a comprehensive unified standardized

Pay the five social insurances and one housing fund for employees;

scientific and reasonable compensation system covering all employees. It implements a dynamic distribution mechanism where pay is

determined by position changes with position and rewards are based on performance ensuring employee compensation matches job value

individual performance and market levels. The Company?s employee compensation structure includes components such as fixed pay variable Employees are entitled to rest days statutory holidays paid leave and other rights stipulated by the state;

pay and benefits. Among these variable pay is linked to company performance and individual employee performance.Set up incentive allowancesincluding professional title and technical grade allowances;

Employees are entitled to communication subsidies and meal subsidies;

Provide holiday benefits and organizing various recreational activities;

Arrange annual physical examinations for employees to safeguard their physical and mental health;

Improve the employee insurance system and purchase group commercial insurance for employees to

effectively reduce the economic burden on employees? families caused by accidents illnesses and other

reasons.

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Employee Benefits and Security2025

Environmental Social and Governance (ESG) Report

Labor Relations Management

Case Study: Summer Cooling Campaign

The Company strictly complies with relevant labor laws and regulations formulates rules and systems such as the Employee Code of Conduct

and Personnel Management System and continuously improves the labor relations management system. Standardizing the entire process

management of labor contract conclusion performance modification termination and dissolution according to law refining operational norms

for each stage of employee onboarding employment and departure clarifying the rights and obligations of both labor and management and

building standardized harmonious and stable labor relations.In July 2025 the continuous high temperature in Henan posed

The Company standardizes employee departure management. All employee departures follow a unified process for work handover and a severe test to the workers sticking to the front line of key

departure procedures. For situations such as dismissal by persuasion failure to reach agreement on mutual termination or termination of labor project management and construction. The Company carried

contracts due to disciplinary violations the Company will seek the legal department?s opinion review according to regulations and issue final out the theme Party Day activity of summer cooling at the

settlement pay ensuring departure management is legal compliant and procedurally rigorous. SAIC Assets Henan Headquarters Base Project and the Two

Academies Project and presented heatstroke prevention and

cooling materials to the projects.Employee Care and Communication

| Employee Democracy

Adhering to the principles of legality and compliance orderly advancement openness and transparency fairness and impartiality the Company

has established a democratic management system with the Staff and Workers? Representative Congress as the basic form fully safeguarding

employees? right to know participate express and supervise. We have established various channels to listen to the voices of front-line

employees continuously promote the standardized operation of the Company?s democratic management and actively create a good corporate

culture atmosphere.The Company?s trade union carries out its daily management in strict compliance with laws regulations and relevant working guidelines Training and Development

including the Trade Union Law of the People’s Republic of China and the Constitution of the Chinese Trade Unions. During the Reporting Period

the company had 140 employees who were union members convened six staff and workers? representative congress meetings and addressed

eight items for democratic decision-making.Adhering the employment policy of ?respecting caring for utilizing and developing talents? the Company continuously improves the

construction of the systematic training system smooths the employee career development channels provides a broad development platform

| Employee Care and diverse growth opportunities for all employees helps employees realize their self-worth and grows and develops together with the

enterprise.The Company actively creates a warm and pleasant working atmosphere attaches great importance to the dynamic balance between employ-

ees? work and life and has conducted condolence and care activities for under-construction projects for many times effectively enhancing Employee Training

team cohesion and centripetal force.The Company's training programs are closely aligned with its strategic development needs and talent development objectives and steadily

promote the construction of a systematic training system. The Company always regards talents as its most valuable core asset and fundamental

driving force for development. Adhering to the people-oriented philosophy it strives to foster a sound environment that respects cultivates

and nurtures talents. By adopting diversified approaches such as online and offline training and lectures by internal lecturers and external

experts the Company provides employees with career-long training and guidance continuously improves their professional skills and

comprehensive competencies so as to meet the personal development needs of various talents.

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Environmental Social and Governance (ESG) Report

During the Reporting Period the Company carried out various training activities as planned organized 6 batches of induction empowerment Career Development

training for new employees through the Cloud Learning Platform with a total of 34 participants covering 20 units; held 24 professional training

sessions in response to business needs covering 10 professional categories with a total duration of 2500 hours and a total of 3850

participant person-times. Through the effective development of training we have effectively improved employees? comprehensive quality and The Company adheres to the principles of "openness and impartiality hierarchical and categorized management full coverage competence

professional ability and enhanced employee management capabilities and strengthened management talent reserve. orientation and dynamic administration". In 2025 to support the business management and control model and talent strategic planning the

Party-Mass and Human Resources Department drew on advanced industry management practices to systematically optimize and adjust the job

sequence promotion channels and post naming standards. During the Reporting Period the Company revised and improved the Management

Rank System Measures promoting the development of human resource management towards systematization standardization and refinement

and laying a solid foundation for building a professional specialized and market-oriented talent team.Key Special Training Programs

The new position system categorizes posts into eight major categories including management professional and technical positions and

establishes five competency levels and five sequences under the "OABCD" framework. In further clarifies the employee career development

channels supports employees? vertical promotion or horizontal development and provides a strong guarantee for the Company to attract

Based on the research results of training needs of various departments the Party-Mass

cultivate and retain talents.PROFESSIONAL and Human Resources Department of the headquarters makes an overall plan and

COURSE regularly carries out training activities. It also specially invites all units to conduct online

TRAINING

ENHANCEMENT sharing and learning of relevant professional courses to promote talent training and help

PROGRAM Career Promotion Channelsthe Company achieve its business goals.In accordance with the latest regulatory requirements and the actual situation of internal Vertical Career Development Horizontal Career Development

control management the Securities Development Department of the Company carries

CORPORATE

GOVERNANCE out internal training on the Guidelines for the Standardization of Corporate Governance

STANDARDIZATION Information Disclosure Deliberation and Decision-Making Procedures for Major Issues and

TRAINING

PROGRAM Internal Reporting covering corporate governance information disclosure key points of

deliberation on major issues and decision-making procedures guidelines for internal Intra-level rank promotion Intra-unit and intra-sequence development

reporting of major issues etc.Promotion from the current rank to Employees develop across subdivided sub-sequences within the

the higher rank in the same position. same sequence and the same unit.The Party-Mass and Human Resources Department promoted the selection of reserve

?TALENT cadres under the ?Talent Program?. A total of 70 people signed up for the program in the

PROGRAM? Intra-unit and cross-sequence development

RESERVE CADRE year and 57 people entered the professional test link after qualification screening Posi职tio位n p晋ro升motion Employees develop across differen sequences within SELECTION among which about 82% scored more than 80 points. This is in line with the talent needs

PROGRAM the same unit.of the Company supports the Company?s ?One Body Two Wings? strategy and lays a Promotion from a lower-level

solid foundation for the subsequent construction of the cadre echelon. position to a higher-level position.Inter-unit and intra-sequence development

Employees develop across subdivided sub-sequences within

Exceptional promotion the same sequence between different units.Recommended by the direct superiors

or responsible leaders may receive Inter-unit and cross-sequence development

exceptional promotion including

cross-level promotion within the same Employees develop across different sequences between

sequence. different units.?Talent Program? Reserve Cadre Selection and Training Program

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Environmental Social and Governance (ESG) Report

Governance

Occupational Health and Work The Company has always taken work safety as the primary principle of operation and development formulated work safety management systems such as the Work Safety Responsibility System the Work Safety Inspection Acceptance and Hidden Danger Rectification System and the

Safety Construction Site Work Safety Management System and continuously improved the occupational health and safety management system with ?coverage in all directions and implementation at all levels? to conduct comprehensive supervision over all work safety work. The Company

designates the Safety Technology Department as the core responsible department and builds a hierarchical work safety responsibility

transmission mechanism with clear responsibilities at all levels to ensure the safe stable and orderly development of all production and

operation work.The Company attaches great importance to employee health and work safety strictly abides by the Work Safety Law of the People’s Republic

of China the Law of the People’s Republic of China on the Prevention and Control of Occupational Diseases and other laws and regulations

comprehensively prevents and controls occupational health and safety risks provides employees with sound safety protection and all-round Honors and Recognitions

health care and is committed to creating a safe healthy and comfortable working environment.he Phase II Project (East Campus) of the ?Two Academies and One Center? and the Phase I Project of the ?Two Academies and

One Center? - Stem Cell Research Center and Affiliated Supporting Projects won the honorary title of ?Henan Provincial

Construction Project Work Safety Standardization Site?.Strategy

Risk Type Risk Description 1Impact Cycle Potential Financial Impact Response Measures

If the enterprise fails to establish a sound occupational health and safety management system

or conduct necessary occupational health examinations risk assessments and prevention and Short to medium term Increased compliance costs

control work it may violate relevant laws and regulations. Continuously improve the occupational safety management system

LEGAL RISK

build a dual prevention system mechanism for occupational health and

work safety fulfill the main responsibility of the enterprise and sign

work safety commitment letters.Increased operational

Once a major safety accident or a major occupational disease incident occurs in a company Actively carry out work safety guarantee work such as risk assessment

Short to medium term costs and decreased

project the Company?s business may be interrupted or delayed. hidden danger investigation and occupational disease physical

operating revenue

OPERATIONAL RISK examinations.Formulate emergency plans and strengthen drills; equip with sufficient

emergency rescue equipment fire fighting facilities and equipment etc.During the operation of the Company?s projects if personal injury or even fatal accidents are Increased operational

caused. After the accident is exposed it leads to a decrease in market trust in the enterprise Medium to long term costs and decreased

and damages the platform?s image. operating revenue

REPUTATIONAL RISK

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Environmental Social and Governance (ESG) Report

Opportunity Type Opportunity Description 1Impact Cycle Potential Financial Impact

1Impact Cycle?

Emerging technologies such as the Internet of Things big data and artificial intelligence Short-term (within 1 year): The impact on the Company is

Medium to long term Operational cost reduction

provide new means for safety production work. usually rapid and temporary with a short duration typically

TECHNOLOGICAL not exceeding 1 year.OPPORTUNITY

Medium-term (1-5 years): The impact on the Company is

more sustained usually holding significant influence within 1

to 5 years.By demonstrating outstanding occupational health and safety performance the Company

Long-term (more than 5 years): The impact on the Company

can establish a responsible corporate image. Providing a safe and healthy work environment Medium to long term Increase in operating revenue

is profound and lasting with a duration typically exceeding 5

helps to attract and retain top talent.REPUTATIONAL years.OPPORTUNITY

Impact Risk and Opportunity Management

The Company?s business operations are characterized by complex environments diverse types of work and significant seasonal impacts.Occupational health and safety risks exist in all links of project operations and dust noise and other factors generated in the construction

process are likely to pose threats to employees? health and safety. The Company continuously improves the work safety risk management Indicators and Objectives

system actively carries out safety risk identification and assessment and implements classified and hierarchical control for various risk points.At the same time we regularly organize safety hidden danger investigation and emergency rescue drills build a comprehensive safety defense The Company adheres to the ?zero accidents and zero casualties? dual zero objective and is committed to building a safe Palm.line and effectively prevent various safety risks.Safety Risk Classified and Hierarchical Control Measures Objectives Achievement Status during the Reporting Period

In accordance with the principles of ?independent investigation scientific assessment classification and grading and hierarchical control? the

Company has formulated the Measures for the Classified and Hierarchical Control of Safety Risks and built a dynamic differentiated risk Certification rate for special operations personnel: 100% Achieved

management mechanism. Through systematic investigation and scientific assessment we accurately classify and grade safety risks and

implement targeted control effectively reducing the accident rate. At the same time we strengthen the source control of occupational disease

Number of work-related injuries: zero Achieved

hazards reduce occupational health injuries and effectively safeguard the safety and health of employees.New occupational disease cases: zero Achieved

Dual Prevention System

Safety-related penalties: zero Achieved

The Company has formulated the Implementation Plan for the Construction of the Dual Prevention System for Work Safety Risk Identification and

Control and Hidden Danger Investigation and Rectification and established a three-level linkage mechanism of the Company regions and

project departments. Regular employee health check-ups are conducted. Achieved

Accurately identify risks through risk assessment and hierarchical control and implement differentiated management; realize dynamic

monitoring and closed-loop management relying on hidden danger investigation and rectification. All project management personnel have

signed safety commitment letters to fulfill the main responsibility for safety. The system covers the entire construction process and uses

intelligent means to realize traceable and full-coverage safety management effectively improving the safety level and ensuring that all safety

hidden dangers are fully controlled.

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Environmental Social and Governance (ESG) Report

Safety Production Management

| Safety Production Inspections | Safety Emergency Management

The Company resolutely implements the work safety deployment at all levels firmly establishes a bottom-line thinking and a sense of The Company continuously improved the Compilation of Emergency Rescue Plans for Production Safety Accidents further optimizing the

responsibility and establishes a work safety inspection mechanism combining regular inspections and unannounced random checks. We have emergency organizational structure response procedures and disposal measures. Simultaneously the Company regularly conducted targeted

built a sound account for hidden danger investigation and rectification implemented list-based management and responsibility-based safety emergency drills based on the plans strengthening the implementation of the plans through simulated real scenarios.promotion clarified the responsible persons and time limits for rectification and fully realized the closed-loop management of the whole

process of hidden danger investigation rectification and acceptance ensuring full coverage no dead ends and no blind spots in hidden danger During the Reporting Period the Company conducted a total of 54 emergency drills.rectification and laying a solid foundation for work safety.During the Reporting Period the Company organized 327 safety inspections identified 1290 various potential safety hazards issued 331

hidden hazard rectification notices with a rectification completion rate of 100% achieving dynamic clearance of hazards.Case Study: Fire Emergency Drill

Case Study: Supervising Work Safety of Under-Construction

Projects to Consolidate the Safety Line at the End of the Year

In March 2025 the Company organized and carried out an emergency drill for fire safety accidents at a project construction site

with a core focus on practical simulation. This drill comprehensively tested and evaluated the scientific nature and suitability of

the emergency plan strengthening employees? proficiency in the fire safety emergency response procedures.In December 2025 the Secretary of the General Party Branch and Chairman of the Company carried out work safety on-duty

inspections in the way of ?four nos and two straights? (no prior notice no greeting no listening to reports no accompanying

reception; direct access to grassroots level direct inspection of the scene). Aiming at the construction operation process the

Chairman conducted safety education and risk correction to realize the full-process safety control of construction operations

and supervised and inspected the implementation of various safety protection measures and the allocation of safety protection

equipment for operators to ensure no safety hidden dangers at the construction site.

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Environmental Social and Governance (ESG) Report

Safety Production Knowledge Competition

| Safety Culture Development

The Company holds work safety knowledge competitions to guide and stimulate employees to further master safety knowledge promote the

The Company continuously promotes the development of work safety culture and through various ways such as safety special training warning effective operation of work safety standardization improve employees? safety quality promote the effective dissemination of work safety

education safety publicity and knowledge competitions actively publicizes the Party?s and the state?s work safety policies guidelines and laws culture and create an atmosphere where everyone learns safety knowledge.and regulations popularizes the latest work safety culture knowledge comprehensively improves employees? safety awareness and safety

operation skills strengthens the safety literacy of all employees and effectively reduces the risks of various safety accidents.| Stakeholder Work Safety Management

Safety Production Education and Training The Company has built a full-process closed-loop control system around the work safety management of contractors to maintain a safe and

The headquarters its subsidiaries and project departments at all levels organize safety education activities centered on safety knowledge orderly production environment safeguard the safety and health of external operators and prevent safety accidents.dissemination risk prevention and control and emergency response capacity building. Through the promotion of safety concepts and policies

case-based warning education training on job safety operating procedures and practical safety skill drills all management personnel have In accordance with relevant laws and regulations and the Company?s supplier and sub-contractor management measures and other

gained a deeper understanding of safety production. documents the Company clearly standardizes and stipulates the key links such as stakeholder access process control supervision and

assessment; and signs work safety and civilized construction responsibility letters with contractors conducts full-process safety assessment

ensuring that the work safety management of contractors is implemented in accordance with the same standards and requirements as the

Company. In terms of safety education for contractors the three-level education is strictly implemented special training is carried out in light

of project characteristics and online and offline methods are adopted to achieve full coverage of operator training effectively improving the

safety awareness and ability of operators. In terms of safety assessment a mechanism of ?monthly inspection + annual comprehensive

evaluation? is implemented with quantitative assessment indicators and hierarchical evaluation results. The assessment results are directly

linked to cooperation qualifications and the one-vote veto system for safety is strictly implemented to strengthen the supervision role and urge

stakeholders to strictly implement safety requirements.Occupational Health Protection

Safety Knowledge Promotion The Company strictly following the Law of the People’s Republic of China on the Prevention and Control of Occupational Diseases and adheres

to the policy of ?prevention first combination of prevention and treatment? and implements an occupational health management model

Various projects have promoted the concepts ideas measures and behavioral norms of work safety as well as publicized policies and

combining classified management and comprehensive treatment. In accordance with the requirements of occupational health and safety

regulations on work safety general safety knowledge occupational health knowledge emergency response and self-rescue and mutual aid

management system certification the Company has built a scientific and standardized occupational disease prevention and control mechanism

methods through a variety of means such as displaying work safety publicity boards and providing on-site Q&A sessions on work safety.making all-round efforts from three dimensions: source prevention process control and hazard elimination.Questions raised by participants regarding work safety were also addressed on the spot.Measures Content

Carry out regular detection and assessment of occupational disease

Detection of Occupational Disease Hazard Factors hazard factors and prohibit employees with occupational contraindica-

tions from engaging in relevant hazardous operations.Provide personalized health protection plans for employees organize

Occupational Health Examinations regular physical examinations for employees and establish occupational

health files to realize dynamic tracking and management.Equip construction sites with labor protection articles with product qualifi-

Distribution of Labor Protection Supplies cation certificates which on-site operators must wear and use in accor-

dance with requirements.

99 100PART 05

Common Welfare

Shared Responsibility

Response to Topics?

Social Contribution Rural Revitalization

Palm Eco-Town integrates ?green development and responsibility? into the gene of enterprise development

takes the initiative to undertake social responsibilities gives full play to its own resource advantages and

professional expertise and continuously contributes to practicing social welfare boosting rural revitalization

responding to the Belt and Road Initiative and other aspects. We take practical actions to help build a harmonious

and beautiful society and realize the synchronous development of enterprise growth and social value.2025

Environmental Social and Governance (ESG) Report

Practicing Social Welfare

Case Study: ?Palm Orders Boost Agriculture Education Nurtures

Talents to Celebrate June 1st? Co-construction Activity

Adhering to the public welfare philosophy of ?Boundless Undertaking Boundless Love? the Company takes the initiative to participate in social

welfare activities such as environmental protection poverty alleviation and assistance education and student aid and encourages employees

to actively participate in various volunteer service activities gather more love and strength and pass on love and warmth to the society.On May 29 Henan Palm Yuantu Agricultural Technology

During the Reporting Period company employees participated in volunteer activities for a total of 221 hours with a cumulative participation of Co. Ltd. carried out a June 1st co-construction activity

42 person-times. with Yucai Hope Primary School in Chenzhuang Town

presenting learning and growth gift packages including

schoolbags notebooks writing pens and other stationery

Case Study: Warmth in Winter Party Love Warms Neighbors to 50 students and conveying holiday blessings and

growth expectations.To study and implement the spirit of the Fourth Plenary

Session of the 20th Central Committee of the Commu-

nist Party of China and General Secretary Xi Jinping?s

important expositions on ensuring and improving peo-

ple?s wellbeing the Company jointly carried out the

theme Party Day activity of ?Warmth in Winter Party Support for Rural Revitalization

Love Warms Neighbors? and sent rice flour edible oil

and other daily necessities and care to the needy people

and old Party members in Zhaojia Village.The Company actively responds to the strategic deployment of rural revitalization. It closely integrates with its own practical situation. It

leverages its professional advantages in planning and design land consolidation and ecological protection. It integrates resources to assist in

developing ecological agriculture and rural tourism projects. It activates the endogenous driving force and developmental vitality of rural areas.It promotes the sustainable development of the rural ecological environment and economy. In recent years the Company has continued to

deepen its involvement in the field of high-standard farmland construction. While generating revenue for the Company it has significantly

improved agricultural production efficiency and crop yield. It has promoted the increase of farmers? income and the vigorous development of

the rural economy.Case Study: Love Gathers Volunteer Dedication

of Thousands of Hearts

Organized by the Social Work Department of the CPC Guangzhou Municipal

Committee the Guangzhou Red Cross Society set up the public welfare project of

?Haixinsha Volunteer Service Theme Park?. The Guangzhou Branch Party Branch of

the Company actively participated in this online donation theme Party Day activity

and 18 Party members and active Party members responded positively and dedicated

their love giving play to the vanguard and exemplary role of Party members.

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Environmental Social and Governance (ESG) Report

Case Study: Assisting in the Construction of the Luozang

Hundred Villages Happy Homeland in Nyalam County Response to the ?Belt and Road?

Initiative

The overall project primarily targets the Jianggang Village and Zongta Village rural folk tourism resort area aligning with the

3A scenic area construction standards. It focuses on road renovation adding entrance landmarks renovating existing buildings

The Company responds to the overall situation of the national Belt and Road construction gives full play to its own business advantages.Its

improving river landscape designing green space parks around the tourist service center and improving village appearance

controlling subsidiary Belt Collins has actively participated in numerous design projects at home and abroad and in the countries along the Belt

and environment. It aims to create a 3A-level tourist attraction. It promotes the integrated development of culture and tourism

and Road. During the Reporting Period Belt Collins completed the implementation of projects in Vietnam and India. By consolidating

to revitalize Nyalam County. It links with the rural revitalization cultural and tourism industry.technological and resource coordination jointly promoted the high-quality green development of the Belt and Road and contributed to

economic and social development.Case Study: Assisting in the Enhancement of Culture and

Tourism in Nyalam County Shigatse City

The Culture and Tourism Enhancement Project in Nyalam County Shigatse City focuses on enhancing the cultural aspects of the

platform square designing the identification system and improving service functions. With the direction of promoting intangible

cultural heritage and retaining passing travelers and centered on the concept of ?retaining nostalgia for hometowns inheriting

cultural heritage mobilizing the enthusiasm of indigenous people and achieving a relative balance between intangible heritage

inheritance and input-output? we will highlight key points and grasp critical elements to create the first unique intangible cultural

heritage tourism area upon entering the county thereby better attracting tourists along the national highway.

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Environmental Social and Governance (ESG) Report

Appendix Key Performance Table

Governance Performance

Indicator Index

Indicator Unit 2025

Shenzhen Stock Exchange Shenzhen Stock Exchange Self-Regulatory Guidelines for Listed Companies No.17 - Sustainable Development Report

Remuneration of directors and senior management (including current 10000 RMB 320.21

(Trial) and former)

Number of employees who participated in anti-commercial bribery Persons 213

Disclosure Requirements Corresponding Section and anti-corruption training

Total duration of anti-commercial bribery and anti-corruption Hours 8.08

Climate Change Response Building Green Towards Beauty - Climate Change Response training

Number of senior executives participating in anti-commercial bribery

Pollutant Emissions Building Green Towards Beauty - Environmental Compliance Management and anti-corruption training Persons 5

Waste Management Building Green Towards Beauty - Environmental Compliance Management Total duration of anti-commercial bribery and anti-corruption Hours 8.08

training provided to senior management personnel

Ecosystem and Biodiversity Protection Building Green Towards Beauty - Ecosystem and Biodiversity Protection Total number of anti-corruption and anti-bribery report incidents Cases 0

Environmental Compliance Management Building Green Towards Beauty - Environmental Compliance Management

Number of people who signed integrity agreements and other related Persons 111

business conduct documents

Energy Utilization Building Green Towards Beauty - Resource Efficiency Enhancement

Number of corruption litigation cases filed and adjudicated Cases 0

Water Resource Utilization Building Green Towards Beauty - Resource Efficiency Enhancement

Circular Economy Building Green Towards Beauty - Resource Efficiency Enhancement

Social Performance

Rural Revitalization Common Welfare Shared Responsibility - Support for Rural Revitalization

Employee Rights

Common Welfare Shared Responsibility Social Philanthropy Engagement

Social Contribution

Common Welfare Shared Responsibility – Response to the ?Belt and Road? Initiative Indicator Unit 2025

Innovation-Driven Development Value Co-creation Industry Co-progress – Innovation-Driven Development Labor contract signing rate 1 Percent 99.75

Technology Ethics Not Applicable Social insurance coverage rate 2 Percent 97.04

Supply Chain Security Value Co-creation Industry Co-progress – Responsible Supply Chain

Number of employees with disabilities Persons 7

Equal Treatment of Small and Medium-Sized Enterprises Value Co-creation Industry Co-progress – Responsible Supply Chain

Number of ethnic minority employees Persons 17

Product and Service Safety and Quality Value Co-creation Industry Co-progress – Product and Service Safety and Quality

Data Security and Customer Privacy Protection Value Co-creation Industry Co-progress - Data Security and Customer Privacy Protection Proportion of women in management positions Percent 26.83

Employees Talent Cultivation United Advancement Number of employees taking parental leave Persons 18

Governance Empowerment Steady and Long-Term Development - Compliance

Operations and Business Ethics Return-to-work rate of employees after parental leave Percent 100

Due Diligence Talent Cultivation United Advancement - Protection of Employee Rights and

Interests Number of projects reviewed and approved by the staff congress Items 8

Value Co-creation Industry Co-progress - Product and Service Safety and Quality

Number of projects reviewed and approved by the trade union Items 8

Stakeholder Communication Sustainable Development Governance - Stakeholder Communication

Anti-Commercial Bribery and Anti-Corruption Governance Empowerment Steady and Long-Term Progress - Compliance Proportion of trade union members among active employees Percent 85

Operations and Business Ethics

Anti-Unfair Competition Governance Empowerment Steady and Long-Term Progress - Compliance

Operations and Business Ethics Note 1: There are 2 retired rehired personnel among the Company?s employees who have signed ?Re-employment Agreements? so the labor

contract signing rate is not 100%.Voluntarily Disclosed Topics

Note 2: Among the Company?s employees 24 Persons are not covered by social insurance. This includes 2 retired rehired employees and 22

Green Building Building Green Towards Beauty - Green Construction overseas employees who contribute to the Mandatory Provident Fund in Hong Kong China so the social insurance coverage rate is not 100%.

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Environmental Social and Governance (ESG) Report

Employee Employment

Indicator Unit 2025

Indicator Unit 2025

Number of Employees by Profession

Total number of employees Persons 810 Sales Persons 62

Number of Employees by Gender Finance Persons 77

Number of female employees Persons 322

Administration Persons 86

Number of male employees Persons 488

Number of new hires Persons 65

Number of Employees by Age

New Hires by Gender

Under 30 years old (excluding 30 years old) Persons 132 Female new hires Persons 26

30-40 years old (including 30 excluding 40 years old) Persons 438

Male new hires Persons 39

40-50 years old (including 40 excluding 50 years old) Persons 201 New Employees by Age

50 years old and above Persons 39 Under 30 years old (excluding 30 years old) Persons 12

Number of Employees by Position

30-40 years old (including 30 excluding 40 years old) Persons 36

Senior Management Persons 5

40-50 years old (including 40 excluding 50 years old) Persons 12

Middle Management Persons 118 50 years old and above Persons 5

Other Employees Persons 687

Employee Training and Development

Number of Employees by Educational Background

Indicator Unit 2025

Doctorate Persons 1

Total investment in employee training 10000 RMB 4.70

Master?s Degree Persons 73

Employee Health and Safety

Bachelor?s Degree Persons 537

Associate?s Degree Persons 187 Indicator Unit 2025

High School and Below Persons 12 Hidden danger investigation and rectification rate Percent 100

Number of Employees by Profession Number of work-related fatalities Persons 0

Production Persons 367 Total number of occupational injuries Persons 0

Technology Persons 218 Number of work safety accidents Cases 0

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Environmental Social and Governance (ESG) Report

Employee Health and Safety Innovation-Driven Development

Indicator Unit 2025 Indicator Unit 2025

Number of safety emergency drills Sessions 54 Number of patent applications

Items 40

Cumulative number of authorized patents (number of

Total duration of safety training 4784 Items 132Hours patents within the validity period)

Number of safety training sessions Sessions 598 By Patent Type

Number of participants in safety training Person-times 4705 Cumulative Number of Authorized Invention Patents Items 25

Coverage rate of work safety liability insurance personnel Percent 100 Cumulative Number of Authorized Design Patents Items 2

Work-related Injury Insurance Coverage Rate Percent 100 Cumulative Number of Authorized Utility Model Patents Items 105

Employee Physical Examination Coverage Rate Percent 100 Cumulative Number of Published Papers Items 196

Certification Rate for Special Operations Personnel Percent 100 Cumulative Number of Software Copyrights Cases 6

Cumulative Number of Trademarks Items 202

Innovation-Driven Development

Specialized Sophisticated Distinctive and Innovative Enterprises Units 1

Indicator Unit 2025

National High-Tech Enterprises Units 2

R&D Investment 100000000RMB 1.23

Total Number of R&D Team Members Persons 96 Product and Service Safety and Quality

By Educational Background Indicator Unit 2025

Below Bachelor?s Degree Persons 19 Product Pass Rate Percent 100

Bachelor?s Degree Persons 55 Number of Customer Complaints Times 0

Master?s Degree Persons 21 Customer Satisfaction Points 98.39

Doctorate Persons 1

Supply Chain Security

By Gender

Indicator Unit 2025

Female Persons 41

Total Number of Suppliers Suppliers 2682

Male Persons 55

Number of Local Suppliers Suppliers 886

Proportion of R&D personnel to total employees Percent 11.85

Supplier Integrity Agreement Signing Rate Percent 100

1111122025

Environmental Social and Governance (ESG) Report

Supply Chain Security Feedback Form

Indicator Unit 2025

Dear Reader

Number of new suppliers signing integrity agreements Suppliers 14

Thank you for reading this report. We highly value and look forward to hearing your valuable feedback on this report. Your opinions and

Number of events with significant risk and impact in the supply chain Cases 0 suggestions are a vital driving force for us to continuously improve the quality of our ESG information disclosure and deepen our ESG

management and practices. We sincerely welcome and gratefully appreciate your participation and support!

Number of suppliers whose cooperation was suspended due to non-compliance Suppliers 319

Number of potential suppliers rejected due to non-compliance Suppliers 0 1.Your overall assessment of our ESG management and practices is:

□ Excellent □ Good □ Average □ Below Average □ Poor

Note: Local suppliers refer to suppliers from Henan Province.

2.Your overall assessment of this report is:

□ Excellent □ Good □ Average □ Below Average □Poor

Environmental Performance 3.How do you think we are performing in stakeholder communication

□ Excellent □ Good □ Average □ Below Average □Poor

Indicator Unit 2025

4.How do you think we are performing in corporate governance

Total Greenhouse Gas Emissions 1 tCO?e 182.50

□ Excellent □ Good □ Average □ Below Average □Poor

Total energy consumption 1 Tons of standard coal 42.27 5.How do you think we are performing in environmental protection resource management and climate change response

Total purchased electricity 1 kWh 343955 □ Excellent □ Good □ Average □ Below Average □Poor

6.How do you think we are doing in terms of product quality management

Total Water Consumption2 Tons 129

□ Excellent □ Good □ Average □ Below Average □Poor

Major administrative penalty incidents for environmental violations imposed

Cases 0 7.How do you think we are doing in terms of supply chain security management

by relevant departments such as ecology and environment authorities

□ Excellent □ Good □ Average □ Below Average □Poor

Note 1: The statistical scope covers the Zhengzhou headquarters office and the Guangzhou office. 8.How do you think we are doing in terms of protecting employee rights and occupational health management

Note 2: The statistical scope covers the Zhengzhou headquarters office. □ Excellent □ Good □ Average □ Below Average □Poor

9.What opinions and suggestions do you have regarding our fulfillment of ESG and this report

You can contact us through the following methods:

Phone: 0371-88927000 (Zhengzhou) / 020-85189888 (Guangzhou)

Fax: 0371-55075666 (Zhengzhou) / 020-85189000 (Guangzhou)

Zhengzhou Office Address: Floors 16-18 Haihui Center Intersection of Dongfeng South Road and Kangning Street Zhengdong New District

Zhengzhou City

Guangzhou Office Address: 6th Floor Tower B Zhuguang New Town International Center No. 3 Qingyi Street Machang Road Tianhe District

Guangzhou City

113114