Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Performance
• Social Performance
• Governance

Environmental Achievements

• Reduced intensity of total carbon dioxide emissions by 33.3%
• Reduced intensity of energy consumption by 38.1%
• Reduced intensity of water consumption by 66.5%
• Increased cumulative certified green building area by 11.8%
• Implemented 68 prefabricated construction projects with an assembly area of 8,880,000m2
• Added 10 new eco-friendly buildings, with an area of 1,975,400m2 meeting the eco-friendly building standards

Social Achievements

• Launched a new "Wei-G Health Community" system to create a healthy and comfortable living environment for homeowners
• Established the "832 project" management system and clarified construction standards
• Created the "Chengyijia" transparent building management system
• Found the first national customer service centre of the Group to improve customer service level systematically
• Held the first "Harmonious and Happy Family Festival" activity for the homeowners
• Continued to apply smart construction sites and carried out real-time monitoring of the project sites
• Invested RMB 19,139,700 in total in the fight against the pandemic
• Supported the infrastructure construction of 8 villages, and comprehensively improved the rural living environment
• Incubated and cultivated rural economic organisations, promoted the rural industrial and tourism development to create sustainable value for the villages
• Renovated 2 schools and donated over 6,000 books to promote the development of rural education
• Rebuilt 22 large-scale public buildings such as rural drinking water to effectively guarantee the basic physical demands of villagers

Governance Achievements

• Improved the Group's internal rules and regulations on integrity, strengthened the Group's internal supervision, accountability and reporting system
• Optimised the approval process of patents and copyright applications and improved management efficiency
• Established a four-level control structure (Headquarters – Regions – Cities – Projects) and outlined safety management obligations at all levels for daily supervision and review

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic
• The issue of the "three red lines" for real estates

Mitigation Strategies

• Implemented COVID-19 prevention and control measures
• Upgraded the strategy of having "one principal and two secondary business lines" to that with "four major business lines"
• Strengthened and stuck to our safe production management system

Supply Chain Management

Responsible Procurement

• Strengthen supply chain management
• Conduct supplier training
• Implement transparent procurement

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Appendix 27 of "Environmental, Social and Governance Reporting Guide"

Certifications: ISO9001, ISO29001

Sustainable Products & Innovation

• "Remac Residence" Prefabricated Interior Decoration System

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• GFA of certificated green buildings amounted to 1.81 million square meters
• Reduced water and electricity consumption by 5% in Hunan and Jiangxi Region
• Saved approximately RMB220,000 a year in electricity costs in Nanchang Midea Riverside Mansion by changing LED lighting
• Saved gas costs RMB825 per day by controlling boiler on/off time in shopping malls
• Reduced development costs by more than RMB50 million annually by using a new integrated insulation plate material

Social Achievements

• Upgraded the service system of “Chengyijia”, achieving 86 points on customer satisfaction (up by 4 points compared with 2020)
• Proportion of trained employees reached 81.1%, with an average training time of 59.76 hours
• Invested RMB17,605.8 thousand in public welfare and charity, with 255 person-times of participation in volunteer activities
• Launched the “Debut Plan for Meishang Xiaoyue Team” providing services to young families and children

Governance Achievements

• Improved compliance management system, actively controlling legal risks, combating corruption and upholding integrity
• Formulated Risk Warning and Investigation Guidelines for Transfer of Contractual Rights and Obligations Related to Equity Transfer in Cooperative Projects
• Updated and improved contract templates to strictly control transaction risks
• Held 6 special training sessions on laws and regulations related to compliant operations
• Further detailed the rules for individuals, updated and improved the Measures for Audit and Supervision Management, Anti-Corruption Practices, Measures for Accountability Management

Climate Goals & Targets

Environmental Challenges

• Downward pressure and intensified competition in the real estate market
• Need to explore intensive and efficient production approaches to improve resource utilization efficiency in line with carbon peaking and carbon neutrality goals
• Transformation from scale to quality in the real estate industry

Mitigation Strategies

• Established a task force for lean management to coordinate and promote lean management tasks
• Comprehensively advanced lean improvement efforts, converting extensive management into a lean management model
• Improved business efficiency in all respects, contributing to the accomplishment of “dual carbon” goals

Supply Chain Management

Supplier Audits: Annual review of suppliers

Responsible Procurement

• Transparent procurement
• Integrity agreement signing
• Monitoring supplier integrity
• Anti-corruption slogans and culture publicity

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather (high temperature, extreme cold, torrential rain, floods, typhoons)

Transition Risks

• Increased construction costs due to carbon emission restrictions
• Higher green building certification standards
• Lack of experience and reference cases for zero-carbon buildings

Opportunities

• Government incentive policies for green and low-carbon building projects

Reporting Standards

Frameworks Used: Appendix 27 of “Environmental, Social and Governance Reporting Guide” (ESG Guide)

Certifications: ISO 9001, ISO 14001, ISO 45001 (Foshan Lianhao Company)

Sustainable Products & Innovation

• REMAC+HOUSE prefabricated interior

Awards & Recognition

• Red Dot Design Award (REMAC+HOUSE)
• Reard Design Silver Award (REMAC+HOUSE)
• Leading Award - Best Architecture Technology Enterprise at WATIC
• Most Promising Smart Value Architecture Technology Company in China
• Top10 Design Institutions by Brand Value in the Golden-Creativity International Space Design Competition
• Top10 Real Estate Space Design Institutions in the Asia-Pacific Space Design Competition

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• GFA of Midea Real Estate's newly certificated green buildings reached 1,968.6 thousand square meters.
• Formed Midea Real Estate's Low-Carbon Healthy Living Technology System 1.0.
• Annual electricity generated from renewable sources: 2,149,500 kW·h

Social Achievements

• Customer satisfaction achieved 87 points.
• Proportion of trained employees reached 85.78%, with an average training time of employees of 72 hours.
• The Group invested a total of RMB26,315.2 thousand in public service and charity, covering more than 130 communities with 855 employees participated in volunteer activities.

Governance Achievements

• Established a 4+3+X System for Smart Construction Sites of Midea Real Estate to ensure construction safety.
• Improved the risk management and control system of the enterprise, and created a transparent and honest corporate atmosphere.
• The Board of directors comprises 9 directors, including 4 executive directors, 2 non-executive directors and 3 independent non-executive directors.

Climate Goals & Targets

Environmental Challenges

• Market downturn continued amid profound changes and the lingering COVID-19 pandemic.
• Real estate industry is exposed to great challenges under the influence of policies and the recurring epidemic.
• Weak spots in public health, community services and infrastructure in old urban residential areas.

Mitigation Strategies

• Adhered to the long-term corporate values, and vigorously sought change and innovation.
• Improved the safety management system to promote safe construction.
• Developed a customer satisfaction survey system independently.
• Integrated the concept of green and low-carbon development into the whole process of product design, construction and operation.
• Improved the supply chain management system, strengthen risk management of supply chain, and proactively drive suppliers to improve their ability in fulfilling their responsibilities.
• Built the “Company with Sincerity” service system, and launched high-quality services of seven levels.
• Built solid community infrastructure and optimized the experience of seven home-returning streamlines.
• Implemented the “Midea Revitalisation Action” plan for community renewal.

Supply Chain Management

Responsible Procurement

• Clean procurement
• Supplier review mechanism
• Supplier communication
• Smart supply chain (SSC) platform

Climate-Related Risks & Opportunities

Physical Risks

• Drought, flood, typhoon, extreme precipitation, and high temperature
• Heavy snowfall, dust storms, and drought
• Mudslide and extreme precipitation

Transition Risks

• Policy and legal risks
• Market and technology risk

Opportunities

• Green prefabricated building development opportunities

Reporting Standards

Frameworks Used: Appendix 27 of “Environmental, Social and Governance Reporting Guide” in the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited

Certifications: BREEAM, ISO 9001, ISO 14001, ISO 45001, QSPSC

Sustainable Products & Innovation

• 5M Smart Health Community
• Low-carbon healthy residence technology system 1.0
• Prefabricated buildings

Awards & Recognition

• Advanced Enterprise for Caring about Employees in Shunde District in 2022

Environmental Metrics

ESG Focus Areas

• Green and low-carbon development
• High-quality product and service delivery
• Harmonious labor relations
• Responsible supply chain management
• Community development

Environmental Achievements

• Certified green building area reached 461,000 m2 in 2023
• Generated 2,034,600 kW·h of electricity from photovoltaic power plants, reducing carbon dioxide emissions by 1,623.41 tons.
• Recycled 2,986 tons of wastewater in Foshan Factory.

Social Achievements

• Launched the “Gold Owner” equity upgrade plan, integrating high-quality resources from Midea Real Estate’s ecosystem channels.
• Organized 1,097 activities involving 98,240 households.
• Completed delivery of over 90,000 high-quality apartments, with early delivery accounting for 70%.

Governance Achievements

• Established a three-tier risk management structure.
• 100% of employees signed the Integrity Agreement.
• Implemented a variety of anti-corruption training activities for 200 directors and employees.

Climate Goals & Targets

Environmental Challenges

• Climate change related risks (policy and legal risks, market and technology risks, extreme weather risks)
• Supplier performance risks, operational risks, and financial risks

Mitigation Strategies

• Developing the path for carbon emission reduction, vigorously developing the prefabricated building industry, and promoting green production and green construction.
• Accelerating the research and application of innovative and environmentally friendly materials.
• Strengthening supplier audits, implementing penalties for unqualified suppliers, and establishing a three-level supplier management structure.

Supply Chain Management

Supplier Audits: Regular bi-monthly inspections and factory field visits

Responsible Procurement

• Measures for Supplier Management
• Measures for Bidding and Procurement Management
• Operation Guidance on Bidding and Procurement of Cooperation Projects

Climate-Related Risks & Opportunities

Physical Risks

• Drought, flood, typhoon, extreme precipitation, and high temperature
• Heavy snowfall, dust storms, and drought
• Mudslide and extreme precipitation

Transition Risks

• Restriction on carbon emissions may lead to an increase in the cost of construction.

Opportunities

• Green prefabri- cated building development
• Save energy and reduce emissions; reduce costs and enhance efficiency
• Fully enhance product competitiveness
• Comprehensively raise the enterprise reputation
• Increase the transparency of information disclosure

Reporting Standards

Frameworks Used: Appendix C2 of “Environmental, Social and Governance Reporting Guide” in the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited

Certifications: ISO 9001, QSPSC

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• MiC integrated space products
• Negative ion environmentally friendly composite boards
• Functional anti-bacterial and mould proof films for panels

Awards & Recognition

• Top 22 China Property Service Enterprises in Comprehensive Strength of 2023
• 2023 Leading Company of China in Industrial Park Property Service
• 2023 Top 10 Chinese Enterprises in Public Building Property Service Strength
• China’s Leading Enterprise in Green Building Technology Services
• Award for Top 10 Whole House Smart Home Brands of 2023
• Red Dot Award: Brands & Communication Design of 2023
• National Intellectual Property Excellent Enterprise of 2023
• Top 12 Best Employers in Organizational Strength in China’s Real Estate Industry of 2023
• Included in Top 10 receiving Jinglong Award for China Real Estate Fine Decoration Residential Components and Accessories of H1 2023
• Enterprise in Intelligent Construction and Environmental Protection of 2023
• Advanced Enterprise of 2023
• Excellent Enterprise in Technology Innovation in Guangdong Province’s Building Materials Industry
• Demonstration Unit of Carbon Neutrality Commitment in China’s Bidding Field
• Innovative Small/Medium-Sized Enterprise in Guangdong Province
• Caring Enterprise, Role Model for Social Responsibility
• Best Cooperation Unit of Youth Volunteer High-quality Development Program