Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced SO2 emission by 193.6 tons/year after desulfurization project implementation.
• Achieved "zero" discharge of wastewater and hazardous wastes.
• Successfully passed the carbon audit for power plants conducted by the Development and Reform Commission of Henan Province.

Social Achievements

• 100% employee labor contract signing rate.
• 0.2% staff turnover rate.
• Invested approximately RMB8.0 million in safe production with no fatalities or serious injuries.

Governance Achievements

• Established Disciplinary and Investigation Committee for anti-corruption works.
• Implemented Regulations on Management of Anti-corruption and Reporting Mechanism.
• No material events related to violation of environmental, employment, product, or anti-corruption regulations.

Climate Goals & Targets

Environmental Challenges

• Increasing shortage of supplies such as coal and electric power.

Mitigation Strategies

• Actively developed dry coke quenching project to reduce production costs and energy consumption.

Supply Chain Management

Supplier Audits: Type A suppliers: every half year; Type B and C suppliers: once a year

Responsible Procurement

• Supplier Evaluation Management Rules, Credit Evaluation of Qualified Suppliers Rules, Raw Material Coal Procurement Management Rules

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Environmental, Social and Governance Reporting Guide (Appendix 27 of the Listing Rules)

Certifications: ISO14001 (Jinma Energy and Bohigh Chemical), OHSAS18001 (Jinma Energy and Bohigh Chemical), ISO9000 Series (Jinma Energy and Bohigh Chemical)

Awards & Recognition

• National Pilot Enterprise on Implementation of Management System for the Integration of Informatization and Industrialization
• Advanced Unit in National Open and Democratic Management in Factory Affairs

Environmental Metrics

ESG Focus Areas

• health and safety
• emissions management
• product liability
• use of resources and responsibility management
• environment and natural resources
• tackling climate change
• supply chain management
• development and training

Environmental Achievements

• Achieved up-to-standard discharge of SO2, nitrogen oxides, and particulates.
• Achieved ultra-low emission of air pollutants.
• Achieved “zero” discharge of wastewater and hazardous wastes.
• 100% hazardous waste handling rate.
• 100% non-hazardous waste handling rate.
• 98% water recycling rate for industrial use.

Social Achievements

• Staff turnover rate remained at normal level with turnover rate of male employees of 5.0% and female employees of 2.3%.
• No deaths or major injury accidents occurred.
• No occupational disease cases reported.
• RMB1.731 million donated to charity.
• 12 trainings conducted with 3,000 participants.

Governance Achievements

• Complied with all code provisions under the Corporate Governance Code.
• Established an ESG working group.
• Conducted stakeholder surveys to inform ESG disclosure strategies.
• No major environmental lawsuits or penalties.
• No litigations relating to employment of child labour, forced labour and material breach of labour laws.

Climate Goals & Targets

Environmental Challenges

• Decreased average selling price of coking products by 7.4%.
• Increased average purchase price of coking coal by 1.3%.
• Global oil price drop negatively impacted the Refined Chemicals business.
• Production capacity utilization rate of natural gas facilities was approximately 60%.

Mitigation Strategies

• Implemented production-related policies issued by the government.
• Strategic development in the Trading business increased revenue by 33.6% and gross margin.
• Growth in revenue of 25.2% in the Energy Products business.
• Strengthened environmental management and steadily proceeded with environmental-protection construction projects.

Supply Chain Management

Responsible Procurement

• Material Procurement Management Rules
• Raw Material Coal Procurement Management Rules
• Credit Evaluation of Qualified Suppliers Rules
• Supplier Evaluation Management Rules

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Appendix 27 of the Listing Rules, GRI Sustainability Reporting Standards

Awards & Recognition

• Henan Top 100 Private Enterprises (ranked 36th)
• Henan Top 100 Private Enterprises in the Manufacturing Industry (ranked 22nd)
• Henan Top 100 Private Enterprises Fulfilling Social Responsibilities (ranked 4th)
• Top 10 Outstanding Social Responsibility Cases of Henan Private Enterprises

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Employee well-being
• Corporate governance
• Social responsibility
• Supply chain management
• Climate change mitigation

Environmental Achievements

• Achieved zero wastewater discharge
• Reused waste heat resources
• Achieved ultra-low flue gas emission
• Completed dry coke quenching, circulating ammonia refrigerating machine, flue gas desulphurisation and denitrification, coal yard shed and advanced wastewater treatment projects
• Awarded the title of "National Green Factory"
• Successfully passed the ISO50001:2018 energy management system certification audit

Social Achievements

• Established a remuneration committee
• Provided various targeted trainings from job entry to personal development
• Implemented the Assistance Measures for the Mutual Aid Funds and the Administrative Measures for the Scholarships
• Organized rest and recuperation activities, health knowledge seminars, and the “Moral Role Model Story Tour”
• Provided laundry service, haircutting service, and improved restaurant service for employees
• Established baby-care rooms

Governance Achievements

• Complied with the Corporate Governance Code
• Revised the Articles of Association
• Established an Audit Committee, Remuneration Committee, and Nomination Committee
• Implemented the Authorization Management Rules
• All Directors received training in relation to continuous professional development

Climate Goals & Targets

Environmental Challenges

• Impact on the economy presented by the ongoing pandemic
• Flood in Henan caused by extreme rainstorm
• Material impact on the logistics of raw materials and products
• Strict management of coking production capacity by the Chinese government
• Substantial increase in the price of coal

Mitigation Strategies

• Management team and all staff actively and flexibly rose up to the challenges
• Upgraded coking furnaces
• Established a joint venture with Angang Group Xinyang Steel Co., Ltd
• Established a joint venture with Xiamen ITG Group Corp., Ltd
• Implemented energy saving and emission reduction measures
• Improved cash flow management

Supply Chain Management

Supplier Audits: 100% annual supplier assessment rate; 100% supply chain ESG audits

Responsible Procurement

• Material Procurement Management Rules, Raw Material Coal Procurement Management Rules, Supplier Evaluation Management Rules
• Supplier rating management
• Social risk assessment of suppliers
• Preferential selection of energy-saving and environmentally-friendly products
• Supplier training

Climate-Related Risks & Opportunities

Physical Risks

• Flooding, extreme weather

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products
• Hydrogen industry development

Reporting Standards

Frameworks Used: Appendix 27 of the Listing Rules

Certifications: ISO 50001:2018

Awards & Recognition

• Henan Top 100 Enterprises, Henan Top 100 Private Enterprises, Henan Top 100 Private Enterprises in Manufacturing Industry, "National Green Factory"

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Successfully ignited and put into operation coking facilities with an annual production capacity of approximately 1.6 million tonnes, using clean and environmentally friendly intelligent heat recovery tamping type coke oven.
• Achieved zero discharge of production and domestic wastewater, as well as solid waste.
• Pollutant discharges meet the ultra-low discharge requirements of Henan Province.
• Completed the distributed photovoltaic power generation project with an actual construction scale of approximately 1.2452MWP, generating 1.29 million kWh per year.

Social Achievements

• Established a female worker committee, providing benefits such as regular health check-ups and baby-care rooms.
• Implemented various aid and assistance policies, including scholarships for employees’ children.
• Organized various employee activities, such as Mid-Autumn recital, veterans’ symposium, and staff retreats.
• Conducted the “National Day” Employee Sports Meeting.

Governance Achievements

• Revised the Articles of Association in accordance with the Company Law and relevant regulations.
• Adopted the new terms of reference of the remuneration committee.
• Established an ESG management system with the Board as the supreme responsibility and decision-making authority.
• Implemented the Regulations on Management of Anti-corruption and Whistleblowing Mechanism.

Climate Goals & Targets

Environmental Challenges

• Continued recession in the real estate sector affected the steel and coking industries.
• Coal prices increased by approximately 30% in 2022 compared to 2021.
• Impact of logistics and travel restrictions due to COVID-19 pandemic prevention and control policies.

Mitigation Strategies

• Production protection and sales promotion initiatives to maintain satisfactory full production and sales performance.
• Smooth progress of two large-scale coke production expansion projects.
• Successful operation of the 7.65 meters high coking furnaces project.
• Various measures to respond flexibly to challenges arising from COVID-19 restrictions.

Supply Chain Management

Supplier Audits: 35

Responsible Procurement

• Fair procurement
• Supplier rating management
• Social risk assessment
• Preferential selection of energy-saving and environmentally-friendly products
• Supplier training

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather (floods, typhoons)
• Rising temperatures damaging equipment

Transition Risks

• Policy and regulatory risk
• Market risk
• Reputational risk

Opportunities

• Development of renewable energy
• Coking chemical and hydrogen energy fusion

Reporting Standards

Frameworks Used: Appendix 27 to the Listing Rules

Certifications: ISO50001:2018

Awards & Recognition

• Henan Top 100 Enterprises
• Henan Top 100 Enterprises in Manufacturing Industry
• Top 500 China Energy Enterprises (Groups)
• Outstanding Private Enterprises of Jiyuan Demonstration Zone
• National Green Factory
• National Advanced Collective Entity in the Steel Industry
• National Ecological and Cultural Exemplary Enterprises
• National Labor Day Certificate
• National Environmental and Greenery Exemplary Units
• National Advanced Unit in Open and Democratic Management in Factory Affairs
• Henan Province Excellent Private Enterprises
• Top Manufacturing Enterprises in Henan Province
• Exemplary Unit for Innovation on Energy-saying and Emission Reducing Technology in Henan Province
• Model Enterprises for Intelligent Manufacture in Henan Province
• Advanced Unit for Donation for Education in Jiyuan

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Decreased average selling prices of major products due to general economic conditions in China and the impact of geopolitical conflicts and the COVID-19 pandemic.
• Narrowing price spread between coke and coking coal.
• Tightened environmental protection regulations or an increase in industry consolidation in the coal industry could reduce the supply or increase the price of coal.

Mitigation Strategies

• Continuous investment in production process and environmental protection facilities.
• Continuous efforts in identifying coal chemical projects with promising profit and development potentials, and develop these projects in a sound and effective manner through the establishment of JV companies.
• Cost saving as a result of administrative streamlining.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IAS 34

Third-party Assurance: Deloitte Touche Tohmatsu

Environmental Metrics

ESG Focus Areas

• Environmental protection

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Complied with the Listing Rules and all code provisions under the Code, except for failure to comply with Chapter 14 requirements related to the Xinyang Jingang Project.

Climate Goals & Targets

Environmental Challenges

• Pressure on coal and coke gross margins in the coke market.
• Fluctuations in the prices of raw materials (coal) and products.
• Tightened environmental protection regulations or an increase in industry consolidation in the coal industry.

Mitigation Strategies

• Closely monitoring developments in the coking market and adjusting construction plans accordingly.
• Generally able to negotiate prices of products considering market price fluctuations.
• Maintaining an adequate cash position to meet unexpected needs and mitigate the effects of fluctuations in cash flows.
• Monitoring the level of risk exposure to ensure recovery of overdue debts.

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: IAS 34

Certifications: Null

Third-party Assurance: Deloitte Touche Tohmatsu

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Hydrogen

Awards & Recognition

• Not disclosed