Environmental Compliance Assessment

We established a library of applicable laws and regulations, conduct compliance analysis, and regularly update and disseminate them. We conduct regular environmental reviews of each factory and require each factory to conduct its own internal review and implement improvement measures to ensure that all operating factories follow approved procedures and conduct.

In 2021, there were no major violations related to environmental management and no sudden environmental public incidents

      Environmental Management System

We establish, maintain, monitor, evaluate, inspect and continuously improve our environmental management system following the ISO 14001 Environmental Management System and other requirements. The main policies of the Group include Environmental Policy, Environmental Management of Construction Projects, Environmental Monitoring Management, Environmental Inspection and Reporting Management, and Environmental Performance Management. Each factory established monitoring, inspection and assessment systems based on these, such as Wastewater Management, Exhaust Gas Management, Solid Waste Management, Environmental Monitoring Management , and Environmental Inspection Managemen t, according to their situation. At the end of 2021, 64.6% of the Company's factories had obtained ISO 14001 Environmental Management System certification.

      Environmental Emergency Management System

To effectively prevent the occurrence of environmental emergencies and improve the ability to deal with sudden environmental pollution accidents involving public crises, the Group's factories carry out environmental risk assessments under the relevant laws and regulations of countries and the places of operations, analyse and predict the existence of potential dangerous or harmful factors, determine the type of potential accident and the degree of harm and the scope of influence, and formulate environmental emergency response plans with the risk prevention measures.The Company established emergency mechanisms with local governments and communities, and conducted regular drills. In addition,to further enhance our capability to cope with environmental risks, some of our factories have responded to the local government's request to purchase environmental pollution liability insurance.

Environmental risk assessment and response initiatives

• For new construction projects, we hire professional third-party institutions to carry out environmental risk assessment, and prepare emergency environmental contingency plans, and file them according to the requirements of the ecological and environmental authorities in the place of operation.
• Emergency drills for environmental emergencies are conducted regularly to ensure the feasibility of the plans. In 2021, 42 emergency drills were conducted by the Group's enterprises and corporate groups.
• Environmental pollution liability insurance can help enterprises effectively diversify some of their risks and quickly resume normal production and operation if an environmental accident occurs. It can also strengthen the supervision and management of the insurance company to protect the environment and prevent environmental damage.

In 2021, the Company invested about RMB 960 million in environmental protection.

The Company is fully aware of the value, importance and necessity of sustainable development, that is, meeting current social needs without compromising the social needs of future generations so that they can enjoy the same resources as we do today. The Company is committed to minimizing the impact on the environment in all its production and operation activities. That's why we have an environmental policy, committed to minimising the impact on the environment in all our production and business activities.

    Attachment: Environmental Policy.PDF