Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Successfully passed the ISO 14001:2015 Environmental Management System monitoring audit.
• Reduced energy consumption by 57% by retrofitting 23,000 LED lights.
• Invested about 6 million RMB to build over 8,500 square meters of solar panels.
• Installed boiler heat recovery equipment, saving fuel and reducing direct water vapor emissions.

Social Achievements

• Launched the “Core Power Project” training program for university students, attracting 70 students in 2020.
• Provided more than 99% of its 7,663 employees with more than 300,000 hours of training, averaging over 41 hours per employee.
• Established school-enterprise cooperation with Shandong Animal and Veterinary Vocational College.
• Donated over RMB 8.74 million in cash and materials to society in response to the COVID-19 pandemic.

Governance Achievements

• Established an ESG risk management and internal monitoring system.
• Developed the “Employee Behavior Red Line” and “Employee Non-Compliance Management System” to prevent fraud.
• Implemented the “Whistleblower Management Regulations” to ensure transparency and accountability.
• The Audit Department investigated and verified 8 substantiated problems related to unreasonable management phenomena and imposed penalties.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacted business operations and sales strategies.
• Climate change affecting production costs of raw materials (e.g., corn).

Mitigation Strategies

• Adjusted sales strategy, increased online sales, and promoted products through short videos and live events.
• Strengthened resource management, reduced energy consumption, and optimized supply channels.
• Developed an outbreak prevention-and-control work plan for COVID-19.
• Established an overseas material procurement team to ensure food supply and maintain food prices.
• Mitigated climate impact on costs through price negotiations, long-term contracts with suppliers, and supplier network optimization.

Supply Chain Management

Supplier Audits: 1,104 suppliers across 23 provinces and regions

Responsible Procurement

• Procurement Control Procedures
• Supplier Management Procedures
• Supplier Management Rules
• Tender Management System
• Quality assurance agreements
• Supplier management information system

Climate-Related Risks & Opportunities

Physical Risks

• Climate change impacting raw material production and prices

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and processes

Reporting Standards

Frameworks Used: HKEX Environmental, Social and Governance Guide

Certifications: ISO 14001:2015 (Fengxiang Food Development and Fengxiang Industrial), ISO 22000 (EU BRC certification), ISO 9001, GLOBALG.A.P., HACCP

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 3
• SDG 5
• SDG 6
• SDG 7
• SDG 8
• SDG 9
• SDG 10
• SDG 12
• SDG 13
• SDG 16

Initiatives contributing to these goals are detailed in the report.

Sustainable Products & Innovation

• Waterless cleaning; anaerobic fermentation of chicken manure; ready-to-eat chicken products.

Awards & Recognition

• Various awards and certificates mentioned in the report (details not fully extracted).

Environmental Metrics

ESG Focus Areas

• Food Safety
• Production Safety
• Customer Satisfaction
• Environmental Protection
• Employee Well-being
• Supply Chain Sustainability
• Corporate Governance
• Community Investment

Environmental Achievements

• Total air pollutant emissions decreased by approximately 25%, with the total emission intensity by 25%
• Installation of 1,190 groups of solar energy heating system, saving more than 16,800 tons of steam and more than 2,800 tons of coal annually
• Upgraded lighting systems to LED lights, saving electricity and reducing costs
• Installed waste heat recovery devices on boilers, reducing natural gas consumption
• Replaced all forklifts with electric forklifts

Social Achievements

• Established the “Employee Transition Management System”
• Monthly average employee turnover rate was 1.59%
• Provided more than 300,000 hours of training and learning, with an average of more than 39 hours per employee
• Zero incidents of child labor or forced labor
• Organized 158 emergency drills

Governance Achievements

• Established an ESG governance framework
• Implemented board diversity policy with 3 female directors (1/3 of total)
• Zero anti-corruption cases reported
• Established a comprehensive internal supplier management mechanism

Climate Goals & Targets

Environmental Challenges

• Lack of overall governance of ESG matters
• Lack of a monitoring mechanism for the sustainability aspects of suppliers
• Failure to improve human resources planning
• The Company’s business activities generate various types of emissions
• The Company has not set energy utilization targets
• Potential impacts of natural disasters (floods, storms, etc.)
• Potential impacts of heat stress on poultry
• Potential impacts of power curtailment policies
• Potential impacts of environmental regulations and carbon emission policies
• Potential impacts of improper treatment of pollutants
• Potential impacts of the rise of vegetarian meat products
• Potential impacts of consumer preference for environmentally friendly enterprises

Mitigation Strategies

• Improved ESG governance and management system
• Improved supplier monitoring mechanism
• Further refined human resource planning
• Formulated targeted emission management plans
• Established a system for monitoring the use of energy
• Formulated the Special Emergency Plan for Natural Disasters
• Established an advanced intelligent three-dimensional breeding plant
• Actively promotes the green transformation of the energy structure
• All dead chicken, eliminated broiler chicken should do harmless treatment
• Promote product diversification
• Increase investment on R&D
• Pay attention to laws and regulations related to environmental protection

Supply Chain Management

Supplier Audits: 1,495 suppliers, on-site inspections conducted

Responsible Procurement

• Quality assurance agreements
• Supplier management information system
• Sustainability assessment incorporated into supplier evaluation

Climate-Related Risks & Opportunities

Physical Risks

• Floods
• Storms
• Heavy rains
• High temperature
• Drought
• Heat stress

Transition Risks

• Power curtailment policies
• Environmental regulations
• Carbon emission policies
• Rise of vegetarian meat products

Opportunities

• Green transformation of energy structure
• New energy use

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide

Certifications: ISO22000, ISO9001, GLOBALG.A.P., ISO14001, HACCP, ISO45001, GB/T23331:2020

UN Sustainable Development Goals

• SDG 3
• SDG 5
• SDG 6
• SDG 7
• SDG 8
• SDG 9
• SDG 10
• SDG 12
• SDG 13
• SDG 16

Company operations aligned with SDGs through various initiatives

Sustainable Products & Innovation

• Spicy Sauce Delicious products
• iShape products

Awards & Recognition

• 2023 “Most Popular Exhibitor”, 2023 “Recommended Enterprise”, “Preparation and Protection Products for National Athletes of National Sports Training Center”, “Sponsors of National Sports Training Center”, “Shandong Animal Product Science Popularization Base”, “Industry Research Contact Point”