Climate Change Data

Environmental Metrics

ESG Focus Areas

• Carbon Peak & Carbon Neutrality
• Green and low-carbon industry
• Environmental protection
• Energy conservation
• Social responsibility
• Employee wellbeing

Environmental Achievements

• Developed zero-carbon combustion technology in ceramic machinery, reducing carbon emissions to zero during tile firing.
• Developed the world's longest and most productive green double-deck kiln for sintered slab.
• Increased green electricity consumption in Fujian base.
• Reduced CO2 equivalent emissions by 3,505 tons through photovoltaic power generation in Foshan base.

Social Achievements

• Launched KEDA Employee Mutual Aid Fund.
• Provided educational support funds to local families in need in Africa.
• Supported rural infrastructure construction in Kenya.
• Organized 840 training sessions with 181,160 annual training hours and 9,906 participants.

Governance Achievements

• Improved corporate governance and standardized decision-making procedures.
• Held 3 General Meetings, 14 board of directors meetings, and 13 board of supervisors meetings.
• Issued 4 periodic reports and 116 announcements.
• Established a strict internal control management system.

Climate Goals & Targets

Environmental Challenges

• Pressure on the real estate sector due to global geopolitical conflicts, energy shortages, and slowdown of domestic economic growth.
• Challenges faced by domestic downstream ceramic customers due to downturn in real estate market, shrinking market demand, dual-carbon policy, and rising costs.
• Risks of overseas operations and exchange rate fluctuations.
• Management and control risks associated with scale growth.
• Risk of goodwill impairment.
• Operational risks of large litigation.

Mitigation Strategies

• Adhered to globalization development strategy, actively explored overseas markets.
• Grasped customers' energy-saving needs and developed zero-carbon combustion technology.
• Developed a digital ceramic factory platform for digital upgrading.
• Strengthened the meticulous management of overseas companies and projects.
• Adopted compliant financial means, such as foreign exchange hedging.
• Improved management system and strengthened internal control construction.
• Strengthened post-investment management and integrated acquired companies’ operations.
• Closely monitored and actively dealt with litigation matters.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Zero-carbon ceramic tiles fired with ammonia
• Energy-saving and efficient special kiln for sanitary ceramics and foamed ceramics
• High-temperature Heat-treatment Furnace for aluminum

Awards & Recognition

• 2022 Top 100 Global Building Materials Industry Listed Companies
• Hurun China 500 Most Valuable Private Companies 2022
• 2022 ESG Excellent Enterprise
• Top 500 Guangdong Enterprises
• 2022 Top 100 Guangdong Manufacturing Enterprises
• Top 100 Foshan Enterprises
• Guangdong Excellent Service and Trade Case

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Social responsibility
• Corporate governance

Environmental Achievements

• Reduced CO2 equivalent emissions by 4,737.88 tons
• 7,153.47 MWh of photovoltaic power generation, reducing carbon dioxide emissions by 4,080.00 tons
• Annual reduction of carbon dioxide emissions, sulphur dioxide emissions and nitrogen oxides by 38,630.23 tons, 91.87 tons, 87.27 tons respectively, and a saving clean water of 56,498.43 tons by investing and building over 28 distributed photovoltaic power stations

Social Achievements

• RMB 386.78 thousand invested in scholarships, road repairs, and donations for public service activities
• RMB 57.08 thousand invested in targeted assistance, regular sympathy and charitable donations for poverty alleviation and rural revitalization

Governance Achievements

• Increased the number of Board members from 9 to 12
• Conducted "Compliance + Public Opinion" themed training for more than 100 core management personnel

Climate Goals & Targets

Environmental Challenges

• Global economic slowdown
• Domestic real estate market downturn
• Intensified market competition in the lithium-ion battery industry
• Fluctuations in the price of lithium carbonate
• Rise in interest rates of the U.S. dollar leading to depreciation of African currencies
• Slowdown in the global economy
• Structural overcapacity and fierce competition in the anode materials industry
• Falling market prices in the lithium-ion materials industry
• Industry chain adjustment in the lithium-ion materials industry

Mitigation Strategies

• Actively implemented globalization strategy
• Increased layout of overseas ceramic machinery and accessories consumables market
• Development of the field of generalization of ceramic machinery
• Promoted project construction of overseas building materials business
• Deepened the path of lithium-ion materials to reduce cost and increase efficiency
• Optimized the energy structure and supply chain of raw materials
• Increased the proportion of local employees
• Launched lean improvement work
• Negotiated with competitors and dynamically adjusted prices
• Optimized the conductive and thermal insulation structure
• Optimized production plan according to peak-valley time-sharing tariff mechanism
• Reduced costs through process adjustment and company-owned lithium-ion battery materials machinery product optimization
• Strengthened industry chain synergy and cooperation
• Maintained existing energy storage head customer relationships
• Explored new customers

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

• National green factory (Anhui Keda Industrial)