Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Employee safety and well-being
• Social responsibility
• Supply chain management
• Anti-corruption

Environmental Achievements

• No events resulting in adverse environmental impact.
• Reduced consumption of natural gas and water resources per tonne of production.
• Reduced production and discharge of pollutants.
• Implemented advanced wastewater treatment systems meeting PRC and local standards.
• Installed solar water heaters in staff dormitories.

Social Achievements

• Organized health checks for employees.
• Distributed festive goods to female employees.
• Organized employee activities (basketball matches).
• Maintained a low employee turnover rate (4.2%).
• Provided 97 hours of average training per employee.

Governance Achievements

• Established a food safety panel.
• Implemented stringent quality monitoring measures throughout the production process.
• Formulated procedures for preventing commercial bribery and corruption.
• Established reporting channels for corruption concerns.
• No corruption lawsuits during the reporting period.

Climate Goals & Targets

Environmental Challenges

• Product quality and food safety risks.
• Merger and acquisition risks.
• Brand publicity risks.

Mitigation Strategies

• Strict compliance with international standards and certifications (BRC, IFS, HALAL, KOSHER, ISO22000).
• Stringent quality control measures and supplier evaluation.
• Professional training for staff in quality control, production, and R&D.
• Product tracing mechanism and emergency response plan.
• Due diligence and risk assessment for acquisition targets.
• Retention of qualified management and cultural integration efforts.
• Optimized fund payment methods and improved internal audit function.
• Engagement of professional PR companies.
• Internal reporting system for adverse reports.
• Active participation in industry forums.
• Increased investment in brand promotion and advertising.

Supply Chain Management

Supplier Audits: Regular reviews of suppliers' corporate credit and product quality.

Responsible Procurement

• Supplier Code of Conduct specifying requirements on production environment, contractors, human rights, and anti-discrimination.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Stock Exchange ESG Reporting Guide

Certifications: BRC (A+), IFS Food (High), HALAL, KOSHER, SC, FDA, BSCI, WCA, ISO22000, HACCP

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• 2017 China’s Most Promising Listed Companies (Forbes China)
• Linyi City Mayor’s Quality Award

Environmental Metrics

ESG Focus Areas

• Energy conservation and emissions reduction
• Water conservation
• Sustainable packaging
• Talent retention
• Corporate social responsibility

Environmental Achievements

• Total GHG emissions decreased by 3.2% to 11,138.8 tCO2e compared to the previous year
• Water usage decreased by 14.6% compared to the previous year
• Installed independent meters for each production workshop to improve energy saving measures
• Researching and developing more environmentally friendly packaging
• Reduced use of frozen logistics and facilities for new fruit ice-cream products, minimizing carbon emissions

Social Achievements

• Employee turnover rate decreased slightly compared to the previous year
• Provided 100% of employees with training covering various themes
• Carried out charitable work and community support

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Parallel development strategy (own brand and OEM) to mitigate customer concentration risk
• Developing new customers in other markets to drive sustainable business development

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Established a “6H controlling system” for raw materials

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: BRC (A), IFS Food (High), FDA(FSMA), HALAL, SC, KOSHER, BSCI and ISO22000

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• New fruit ice-cream products (room temperature processing and transportation)
• New environmentally friendly packaging

Awards & Recognition

• China's Most Promising Listed Companies (Forbes)
• 2017 Linyi Mayor Quality Award
• Certificate of Invention Patent (2018)
• China Canned Food Leading Enterprise and Brand (2019)

Environmental Metrics

ESG Focus Areas

• Food Quality Management
• Employee Training
• Environmental Protection
• Corporate Governance
• Product Research and Development
• Employee Health and Safety
• Emissions and Resources Management
• Anti-corruption
• Climate Change

Environmental Achievements

• Introduced nearly 20 environmental improvement measures since 2014
• Reduced GHG emissions from 9,032.98 tonnes CO2e in 2021 to 6,788.38 tonnes CO2e in 2022
• Reduced total non-hazardous waste from 2,614.27 tonnes in 2021 to 1,972.03 tonnes in 2022

Social Achievements

• 100% of employees at the Shandong Production Base received training in 2022
• Zero work-related fatalities from 2019 to 2022
• Donated over RMB10 million in culture, education, pandemic prevention and poverty alleviation

Governance Achievements

• Updated Corporate Governance Code and relevant policies and practices
• Established the Compliance and Internal Control Department
• Established the Anti-corruption Committee and a confidential whistleblowing system
• Zero concluded legal cases regarding corrupt practices brought against the Group or its employees

Climate Goals & Targets

Environmental Challenges

• Risk of Public Emergency (COVID-19 pandemic and other public emergencies)
• Risk of Product Quality and Food Safety
• Risks of Climate Change and Extreme Weather (affecting fruit harvest and quality, and production operations)

Mitigation Strategies

• Established a response mechanism for public emergencies
• Established an effective supplier evaluation mechanism to ensure product quality and safety
• Formulated raw material procurement plans, upgraded production equipment, introduced automated production lines, and developed "deseasonalized" products
• Formulated emergency plans for extreme weather

Supply Chain Management

Supplier Audits: 1314 suppliers in total, 29 with ISO 9001, 13 with ISO 14001, 2 with HACCP

Responsible Procurement

• Supplier Code of Conduct (zero tolerance for forced or child labor, safe and fair working environment)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather (rainstorm, flood, typhoon)

Reporting Standards

Frameworks Used: ESG Guide of the Stock Exchange of Hong Kong Limited

Certifications: BRC(A), IFS Food (High), FDA, HACCP, SC, KOSHER, SMETA, ISO9001, ISO45001, ISO14001

Sustainable Products & Innovation

• Vitamin sports drink with fruit cubes
• Fruit enzyme sports drink

Awards & Recognition

• Forbes China’s Most Promising Listed Companies
• "Professional, Specialized, Unique, Innovative" Enterprise
• Linyi Mayor Quality Award
• Linyi Scientific and Technological Advancement Award
• "Model of Social Responsibility" and "Advanced Unit with Outstanding Contribution" by China Canned Food Industry Association

Environmental Metrics

ESG Focus Areas

• green products
• talent
• corporate governance
• green and low-carbon development
• corporate social responsibility

Environmental Achievements

• established environmental policies and targets and launched enhanced environmental management projects to reduce carbon footprint

Social Achievements

• research and development of Fruit Granules Vitamin Sports Drink and Fruit Enzyme Sports Drink to offer consumers with quality products for nutritional supplements and health maintenance
• commitment to enhancing business and sustainability capabilities

Governance Achievements

• continue to enhance corporate governance and boost team cohesion

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Fruit Granules Vitamin Sports Drink
• Fruit Enzyme Sports Drink

Awards & Recognition

• Forbes China's "2023 GBA ESG Entrepreneur 30"
• National High-Tech Enterprise
• China Canned Product Quality Certification Label
• China's Most Promising Listed Companies
• 2017 Linyi Mayor Quality Award
• Certificate of Invention Patent
• National Hi-tech Enterprise Certificate (2019 and 2022)
• Most Valuable Chinese Brands (four consecutive years)