Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Social responsibilities

Environmental Achievements

• Reduced carbon dioxide emissions by nearly 8,400 tons in the first half of 2022 through solar photovoltaic power generation; Smart curtain wall and double-layer breathing curtain wall system technologies reduced energy consumption by more than 20% and 30% respectively compared to traditional methods.
• Established an environmental management system, with many subsidiaries passing ISO14001 environmental system certification.

Social Achievements

• Actively participated in the "ten thousand enterprises prospering ten thousand villages" action, carrying out industrial assistance in various regions and building rural industrial projects; Donated RMB 1.6 million to Miaoqian village for collective breeding and RMB 651,000 worth of anti-epidemic materials.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Severe and complicated epidemic situation, increased economic downward pressure, and violent fluctuations in bulk raw material prices.
• Intensified market competition in the rail transit PSD market.
• Fluctuations in main raw material and labor prices affecting profitability.
• Management risks associated with business scale expansion and regulatory requirements for listed companies.
• Uncertain risks of epidemic impact on business development and operation.

Mitigation Strategies

• Joint efforts of all employees to complete business goals; Close attention to macroeconomic and policy changes, adjusting business strategy, enhancing product competitiveness, and improving market share.
• Maintaining a leading market position through technological innovation and fine management; Exploring overseas markets.
• Hedging price fluctuation risks of raw materials using futures products, negotiating with partners, and arranging procurement plans; Improving production management, increasing R&D, and improving production equipment automation and intelligence.
• Promoting management reform, optimizing organizational structure, improving rules and regulations, and introducing high-quality talents.
• Close attention to epidemic development, assessing impacts, adopting effective strategies and response plans, and preventing capital chain risks.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: ISO9001, ISO14001, OHSAS18001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• ventilated and photovoltaic curtain walls, nano self-cleaning and fireproof honeycomb aluminum composite plates, subway PSD system

Awards & Recognition

• China Famous Trademark
• International Credit Brand
• National Quality Award
• National Quality Engineering Award
• Luban Award
• Zhan Tianyou award
• China Architectural Decoration Award

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Photovoltaic power generation in the new energy industry reached 19.4659 million kilowatt hours, saving 7,007.72 tons of standard coal, reducing carbon dioxide emissions by nearly 19,407.5 tons, sulfur dioxide emissions by 229.698 tons, and water resource usage by 77,863.6 tons. The Company was awarded the National (Shenzhen) Excellent Foreign-Funded Enterprise - Green Carbon Reduction Promotion Award and the Top 10 Green Carbon Reduction Projects by Shenzhen Foreign Investment.
• The curtain wall project of the Headquarters Building of Shenzhen Longhua Design Industry Park and the curtain wall project of the General Contracting Ⅰ Bidding Section Project of Shenzhen Qianhai Trading Plaza South passed the certification of “Green Building Evaluation Standard” GB/T50378-2014, with an evaluation grade of three stars; the General Contracting Ⅱ Bidding Section Project of Shenzhen Qianhai Trading Plaza South passed the certification of “Green Building Evaluation Standard” GB/T50378-2014, with an evaluation grade of three stars; the Company’s General Contracting The Ⅱ bidding section project of Shenzhen Qianhai Trading Plaza passed the certification of “Green Building Evaluation Standard” GB/T50378-2014, and the evaluation grade is two-star.

Social Achievements

• Actively involved in various public welfare activities, including public education, public health, rural medical care, disaster relief, environmental protection, and rural revitalization. In 2023, the Company was awarded the honors of “Outstanding Enterprise in Fulfilling Social Responsibility” and “The Sixth Pengcheng Charity Award Pengcheng Charity Donation Enterprise”.
• Industrial support in Guangdong, Shaanxi, Guizhou, Jiangxi and Tibet, helping rural areas to plant cash crops, supporting rural collective breeding industry projects, constructing greenhouse photovoltaic power stations, and fostering new impetus to the development of rural economy.

Governance Achievements

• Continuously optimized the corporate governance structure, established and improved the internal control system and various internal management systems.
• The Company received an “A” rating (excellent) for information disclosure from the Shenzhen Stock Exchange.

Climate Goals & Targets

Environmental Challenges

• Weak global economic recovery, intensified geopolitical conflicts, and insufficient domestic effective demand.
• Intensified market competition in the rail transit PSD market.
• Fluctuation in prices of main raw materials and labor, affecting the Company’s profitability.
• Management risks associated with business scale expansion and regulatory requirements for listed companies.

Mitigation Strategies

• Adjusting business strategy, enhancing product competitiveness and operation and management ability, improving market share.
• Maintaining a leading position in the market through technological innovation and fine management, accelerating the return of funds, and improving operation efficiency and market competitiveness.
• Hedging and transferring price fluctuation risk of raw materials using futures products, negotiating with partners, and improving material procurement plans.
• Promoting management reform, optimizing process and organizational structure, improving rules and regulations, and introducing high-quality talents.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• ventilated and photovoltaic curtain walls
• nano self-cleaning and fireproof honeycomb aluminum composite plates
• subway PSD system

Awards & Recognition

• National (Shenzhen) Excellent Foreign-Funded Enterprise - Green Carbon Reduction Promotion Award
• Top 10 Green Carbon Reduction Projects by Shenzhen Foreign Investment
• Outstanding Enterprise in Fulfilling Social Responsibility
• The Sixth Pengcheng Charity Award Pengcheng Charity Donation Enterprise

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Social responsibilities

Environmental Achievements

• New energy industry's solar photovoltaic power generation was 7.262 million kWh, equivalent to saving 2,614.24 tons of standard coal, reducing carbon dioxide emissions by nearly 7,240 tons, reducing sulfur dioxide emissions by 85 tons, and reducing water resource usage by 29,048 tons

Social Achievements

• Actively participates in various public welfare activities, involving many aspects such as public welfare education, public health, rural medical assistance, disaster relief, environmental protection, and rural revitalization
• Carried out industrial support in Guangdong, Shaanxi, Guizhou, Jiangxi and Tibet, helping rural areas to plant cash crops

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Risks of macro environment and policy changes
• Market competition risks
• Risk of Accounts Receivable Recovery
• Management risks

Mitigation Strategies

• Closely monitor changes in the domestic and international macroeconomic and policy situations, adjust the Company's business strategies in a timely manner
• Improve the competitive advantage of products through technological innovation and fine management
• Strengthen the risk prevention awareness of accounts receivable recovery, strengthen customer credit evaluation
• Promote management reform, constantly optimize process and organizational structure

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Outstanding Enterprise in Fulfilling Social Responsibility