Climate Change Data

Environmental Metrics

Environmental Achievements

• Spent more than RMB 3.8 million upgrading and rebuilding sewage treatment stations; air environmental quality within site was greatly improved and indicators were superior to related standards.
• Significant performance of recovery and comprehensive utilization of marsh gas; steam output from marsh gas burning was more than 43 thousand tons, achieving economic results valued more than 7.9 million.
• Actively responded to state and local requirements and shut down 2 coal-fired boilers (20 tons) and 1 coal-fired boilers (10 tons); adopted centralized heating and environment performance was greatly improved; saved more than 25 thousand tons of coal and reduced 50.88 tons of sulfur dioxide, 55 tons of oxynitride, 9.9 tons of dust particles, more than 12 thousand tons of slag and 58 thousand tons of greenhouse gas.
• Awarded honorary title of “All-China Excellent Enterprise in Environment Protection” issued by All-China Environment Federation.

Social Achievements

• Actively responded to the municipal appeal and made the work practicable for targeted poverty alleviation; counterpart support objects were Qiuzhuang village and 200 low-income families living in Dagou village and Taiping village, Zhenglou Town, Yanghe New District.
• Donation of mass poverty alleviation fellowship amounted to RMB 3 million by the Company and employees; Dream Blue charitable foundation financed poor college students and helped poor students attend university; advocated setting up “Yuanmeng Plan” education fund with Suqian chamber of commerce in Nanjing; donation amounted RMB 500 thousand and helped 50 college freshmen from poor families in Suqian.
• Helped poor families out of poverty; total donation amounted to more than RMB 100 thousand by cadres and Party members; assisted the villages in industrial restructuring and leveling 700 mu of land for circulation; helped the villages pave more than 400 meters cement road, established a convenient service center; air-conditioning in Party member activity room was installed to improve the condition.
• Donated RMB 400 thousand taken from the party membership dues to set up party group service center for 8 poor rural party branches in Suqian; donated RMB 100 thousand to help Qiuzhaung village build infrastructure and donated RMB 100 thousand to help 200 low-income families living in Dagou village and Taiping village.

Governance Achievements

• Constantly perfected corporate governance structure and internal control system to enhance the corporate governance level strictly according to the Corporate Law, the Securities Law, The Listed Company Governance Standards, Rules Governing Listing of Stocks on Shenzhen Stock Exchange and Guidelines on Standard Operation of SME Board Listed Companies on Shenzhen Stock Exchange and other relevant Laws and regulations.
• Operated normatively with sound corporate governance and normative information disclosure; situation of corporate governance of the Company met the requirements of authority files of listed company corporate governance by CSRC.
• Held 1 shareholders’ general meeting and 8 proposals were passed in the meeting; the board carried out all the decisions made by the annual meeting of shareholders carefully.

Climate Goals & Targets

Environmental Challenges

• Uncertain risk of macro-economy; unpredictable external International economic development environment may have some influence on sustainable medium- to-high speed growth of China economy.
• Increased market competition risk; liquor market entered a new round of market competition; famous liquor enterprises recovered rapid growth, optimized product structure, intensified efforts to attract investment, enhanced channel construction and further deepened terminal, leading to more tensive market competition.
• Risk of consumption concept change; preference of spirit consumers decreased and there was a diversified development trend of liquor consumption as consumers paid more attention to healthy life concept, promoted moderate drinking and the age structure adjustment of liquor consumers.

Mitigation Strategies

• Continued to adhere to the strategy of “Wu Du Wu Mi”; tried to be the most dedicated, professional and far-sighted liquor enterprise that understands, distills and sells liquor; further development goal was to become a long-lasting leading enterprise across the life cycle constantly.
• Pushed forward “One Six Eight” Strategy and strived for achieving more than 20% year-on-year growth of operating revenue; included marketing innovation project, intelligent manufacturing project, technology research and development project, management optimization project, digital transformation project, capital strategy project, the Party building project, and culture-shaping project.

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• All-China Excellent Enterprise in Environment Protection

Environmental Metrics

Environmental Achievements

• Implemented efficient investment item upgrade projects at sewage treatment stations, increasing biogas production and steam production.
• Awarded the honorary title of Suqian Green Demonstration Enterprise (along with Jiangsu Shuanggou Distillery Stock Co.,ltd) and Jiangsu Province Water-Saving Enterprise.

Social Achievements

• Earnestly implemented the spirit of the 19th National Congress of the Communist Party of China with precision in poverty alleviation; established village collective project - cattle farm for Qiuzhuang village; visited 200 farmers from Taiping village and Dagou village to collect information on poverty alleviation.
• Successfully built a panoramic and immersive teaching platform for business learning, implementing strategic reserve talents program, hundreds of talents program, dealer training program, etc. Organized 766 training sessions and trained 38,939 employees.

Governance Achievements

• Constantly perfected corporate governance structure and internal control system; held 2 shareholders’ general meetings and passed 10 proposals; strategy committee, nomination committee, audit committee, remuneration and appraisal committee were set under the board.

Climate Goals & Targets

Environmental Challenges

• Risk of macroeconomic uncertainty; risk of intensified market competition; risk of new channel impact; risk of consumption concept change.

Mitigation Strategies

• Adhered to the "Wu Du Wu Mi" strategy, aiming to become the most knowledgeable, most brewing, most selling companies, the most dedicated, the most professional and the most far-sighted liquor company in the industry; implemented the "1246 project" to promote high-quality, healthy and sustainable development.

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• Suqian Green Demonstration Enterprise
• Jiangsu Province Water-Saving Enterprise

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Won the honorary title of "2019 National Green Factory" and the honorary title of "2019 Water Saving Enterprise in Jiangsu province"
• Comprehensive utilization of 83,700 tons of self-produced steam throughout the year.

Social Achievements

• Actively participated in poverty alleviation, exceeding annual targets and helping low-income farmers' average annual income exceed CNY 6,000.
• Won the "Suqian special contribution award" for poverty alleviation efforts.

Governance Achievements

• Maintained effective internal control over financial reporting in all material respects on 31 December 2019.
• Sound corporate governance and normative information disclosure meeting the requirements of authority files of listed company corporate governance by CSRC.

Climate Goals & Targets

Environmental Challenges

• Complex and changing macro situation and increasing difficulties and challenges.
• Intensified market competition.
• COVID-19 outbreak affecting liquor sales.

Mitigation Strategies

• Implemented the "1246" project and adjusted the sales system.
• Established the technical system of "large base liquor group", intensified efforts in tackling key technical issues and building research platforms.
• Promoted brand classification management, implemented low-cost, accurate and integrated communication.
• Implemented “12633 ” work plan focusing on "one goal", inspiring "second entrepreneurship", upgrading "six forces", winning "three major battles", and strengthening "three guarantees".

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: Suya Jincheng CPA LLP

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• 2019 National Green Factory
• 2019 Water Saving Enterprise in Jiangsu province

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Shuanggou Distillery was awarded the title of "Jiangsu Green Factory", and Shuanggou Distillery and Siyang Branch of the Company were also awarded the title of "2020 Suqian Environmental Protection and Green Trusted Enterprise"
• All wastewater treatment plants met or exceeded national discharge standards.

Social Achievements

• All 177 low-income households supported by the company were lifted out of poverty.
• CNY 4 million donated to help poor students.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Intensified market competition
• Changes in market demand due to the COVID-19 pandemic

Mitigation Strategies

• Optimizing product structure, expanding channel market, innovative marketing mode to improve comprehensive competitiveness and market share.
• Adhering to consumer demand as core guidance, conducting in-depth consumer insight research, increasing market research, product innovation and model innovation to meet diversified needs.

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

• Shuanggou Distillery: "Jiangsu Green Factory"
• Shuanggou Distillery & Siyang Branch: "2020 Suqian Environmental Protection and Green Trusted Enterprise"
• Suqian "Group" charity enterprise in the "group" poverty alleviation and education aid activity and "Suqian Charity Award"

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Social responsibility
• Poverty alleviation and rural revitalization

Environmental Achievements

• Reduced carbon dioxide emissions by 75,000 tons through biogas utilization; Siyang Branch reduced purchased steam by 57,500 tons and carbon emissions by 17,800 tons; Shuanggou saved 2,586 tons of water and 4,938 tons of steam annually; Siyang Branch completed the replacement of energy-efficient lamps, reducing electricity consumption by 976,400 KWH; Guizhou Guijiu Company reduced natural gas consumption by 3.5%; Shuanggou Wine Industry saved 129,900 tons of water resources; accumulative new photovoltaic during the reporting period is 14.4WM

Social Achievements

• Donated CNY 2 million to Suqian Charity Federation to help poor students; donated CNY 800,000 to China Veterans Employment and Entrepreneurship Service Promotion Association; held online fundraising rallies for education; supported the development of China's space industry; provided assistance to earthquake-stricken areas; implemented the "Lasa Langrejiu Village" industrial aid project for Tibet

Governance Achievements

• Established a collaborative supervision system; improved the incentive mechanism of "efficient growth, efficient incentive and efficient constraint" of the marketing system; improved the "communication, assistance, emergency" mechanism and the welfare system of "activities, treatment and service"

Climate Goals & Targets

Environmental Challenges

• Macroeconomic fluctuation risk; intensifying market competition; risk of changes in market demand

Mitigation Strategies

• Focus on high-quality development; implement annual work deployment and planning; continue to explore research and application of the mechanism of Mianrou; continue to optimize the storage structure of raw wine; focusing on the concept of "product refinement, structural optimization, and scale expansion"; strengthen channel construction; adapt measures to local conditions in the regional market; help market construction with digitalization; promote the adjustment of the marketing organizational structure; improve the incentive mechanism; broaden the brand communication matrix; improve the consumer operation system

Supply Chain Management

Climate-Related Risks & Opportunities