2024 Environmental, Social and Governance ReportAbout the Report

The Report is the fourth environmental, social and governance report (hereinafter referred to as the “ESG Report” or the “Report”)of Tianshan Material Co., Ltd. (hereinafter referred to as “Tianshan Material”, the “Company” or “we”). The Report provides anupdate on the Company’s sustainability e?orts in 2024. In the Report, we hope to deliver the Company’s philosophy, initiativesand performance on environmental, social and governance issues to enhance understanding and communication among ourstakeholders.

About the Report

Unless otherwise specified, the Report discloses information and data covering the Company’s environmental, social andgovernance practices and achievements for the period from January 1, 2024 to December 31, 2024 (hereinafter referred to as“the year”, the “reporting period”, or 2024). Certain events mentioned in this Report, whether before or after the aforementionedperiod, are included for the sake of comprehensiveness of context and detail in this Report. The Report denes the scope ofthe organization based on the principle of importance. Unless otherwise stated, the materials covered in the Report are fromTianshan Material and its subsidiaries.

The Report was conrmed by the Management and the Board’s ESG Committee and approved by the Board of the Company onMarch 25, 2025.

The Report is published in English and Chinese respectively. In case of discrepancies between the Chinese version and theEnglish translation, the Chinese version shall prevail. The Report is issued in both hard copy and electronic form, and theelectronic version of the Report is available on the o?cial website of Tianshan Material Co., Ltd. (http://www.sinoma-tianshan.cn/), Shenzhen Stock Exchange (http://www.szse.cn) and Cninfo (www.cninfo.com.cn).

If you have any comments or suggestions about the Report, please feel free to contact us through the following ways:

Name: Ye HongAddress: China National Building Material, No. 70, Expo Hall Road, Pudong New Area, ShanghaiTel: 021-68989175E-mail: tsgfyehong@126.com

Publication of the Report

In the process of developing the Report, we mainly refer to the “Self-Regulatory Guidelines No. 17 for Companies Listed onShenzhen Stock Exchange - Sustainability Report (For Trial Implementation)”, “Reference of ESG Indicators System for ESGReports of Listed Companies Controlled by Central Enterprises”, the “GRI Sustainability Reporting Standards” (GRI Standards)of the Global Sustainability Standards Board (GSSB) and the United Nations Sustainable Development Goals (SDGs) for 2030.

Principles and Basis

Review and ApprovalThe Report is actual feedback on Tianshan Material’s environmental, social responsibility and corporate governance practices,with all the information and data derived from the Company’s o?cial documents, statistical reports or the summary and statisticsof environmental, social and governance practices of its subsidiaries. Unless otherwise specified, the monetary amountsmentioned in this Report are measured in RMB.

Data Description

Scope of the Report

Contact Information

2024 Environmental, Social and Governance ReportAbout the Report

2024 Environmental, Social and Governance Report

Glossary

In the Report, unless the context otherwise species, the following terms shall hereinafter be interpreted as follows:

Glossary

No.TermDenition

1CNBMGChina National Building Material Group Co., Ltd.2CNBMChina National Building Material Company Limited3Tianshan Material, the Company, weTianshan Material Co., Ltd.4Company CharterArticles of Association of Tianshan Material Co., Ltd.5CUCCChina United Cement Corporation6Henan TianshanHenan Tianshan Materials Co., Ltd.7South CementSouth Cement Co., Ltd.8Zhejiang CementZhejiang South Cement Co., Ltd.9Jiangxi CementJiangxi South Cement Co., Ltd.10Zhongnan Cement Hunan South Cement Group Co., Ltd11Southwest CementSouthwest Cement Co., Ltd.12Yunnan CementYunnan Tianshan Cement Co., Ltd.13Guizhou CementGuizhou Tianshan Cement Co., Ltd.14Jiahua Special CementJiahua Special Cement Co., Ltd.15Xinjiang CementXinjiang Tianshan Cement Co., Ltd.16Sinoma CementSinoma Cement Ltd.17Sanshi MaterialZhejiang Sanshi South New Material Co., Ltd.18Huanan MaterialSouth New Material Technology Co., Ltd.

No.TermDenition

19Huadong MaterialHuadong Materials Co., Ltd.20CUCC QingzhouChina United Cement Qingzhou Corporation21CUCC TengzhouChina United Cement Tengzhou Corporation22Huanghe TongliHuanghe Tongli Cement Co., Ltd.23Yulong TongliZhumadian Yulong Tongli Cement Co., Ltd.24Shanya SouthHangzhou Shanya South Cement Co., Ltd.25Huaikan SouthHuzhou Huaikan South Cement Co., Ltd.26Jiande SouthJiande South Cement Co., Ltd.27Nancheng SouthJiangxi Nancheng South Cement Co., Ltd.28Hunan Linli South New MaterialHunan Linli South New Material Technology Co., Ltd.29Old Town SouthwestLijiang Old Town Southwest Cement Co., Ltd.30Sichuan Golden CementSichuan Golden Cement Co., Ltd.31Zambia Industrial ParkChina National Building Material Zambia Industrial Park32Sinoma PingxiangSinoma Pingxiang Cement Co., Ltd.33Luopu TianshanLuopu Tianshan Cement Co., Ltd.34Hunan JiuhuaHunan Jiuhua South New Material Technology Co., Ltd.35Hanshan SouthHanshan South Cement Co., Ltd.36Aksu TianshanAksu Tianshan Duolang Cement Co., Ltd.

2024 Environmental, Social and Governance Report

Glossary

No.TermDenition

37Sichuan Guangyuan Commercial Concrete

Sichuan Guangyuan Southwest Commercial ConcreteCo., Ltd.38CUCC BeichuanChina United Concrete Beichuan Co., Ltd.39Tonglu Benteng Construction MaterialsTonglu Benteng Construction Materials Products Co., Ltd.40Sinoma YunfuSinoma Tianshan (Yunfu) Cement Co., Ltd.41Dinghua Building Materials

Huaping County Dinghua Energy Building Materials Co.,Ltd.42Hefei SouthHefei South Cement Co., Ltd.43Shangchen New MaterialsFuzhou Dongxiang Shangchen New Materials Co., Ltd.44Hami TianshanHami Tianshan Cement Co., Ltd.45Jinlei SouthHunan Jinlei South Cement Co., Ltd.46Midong TianshanXinjiang Midong Tianshan Cement Co., Ltd.47Jiaxing Fengqiao South ConcreteJiaxing Fengqiao South Concrete Co., Ltd.48Mengxin CompanyMengxin Bayin Gala Co. Ltd.49Guilin SouthGuilin South Cement Co., Ltd.50CUCC Ju CountyChina United Cement Ju County Corporation51Guzhang SouthHunan Guzhang South Cement Co., Ltd.52CUCC JiningChina United Cement Jining Corporation53CUCC XichuanChina United Cement Xichuan Corporation54Chuzhou Huadong MaterialsChuzhou Huadong Materials Co., Ltd.55CUCC TaishanChina United Cement Taishan Corporation56CUCC Tai’anChina United Cement Tai’an Corporation

No.TermDenition

57China Building Materials AcademyChina Building Materials Academy Co., Ltd.58CUCC XintaiXintai China United Cement Taifeng Corporation59Sinoma HengdaSinoma Hengda Cement Co., Ltd.60Shaoyang SouthShaoyang South Cement Co., Ltd.61Shaofeng SouthHunan Shaofeng South Cement Co., Ltd.62Anren SouthHunan Anren South Cement Co., Ltd.63Dazhou LisenDazhou Lisen Cement Co., Ltd.64SASAC, Bureau of Social Responsibility

Bureau of Social Responsibility of the State-owned AssetsSupervision and Administration Commission of the StateCouncil65Securities TimesShenzhen Securities Times Co., Ltd.66Shanghai Securities NewsShanghai Securities News Co., Ltd.67Easy Board/Value OnlineShenzhen Value Online Information Technology Co., Ltd.68The Directors & Boards

A magazine organized by Jiangsu People's PublishingHouse69China FundA newspaper organized by the Bauhinia Culture Group70PanoramaShenzhen Panorama Network Co. Ltd.71CLSA media organized by Shanghai United Media Group72New Fortune MagazineShenzhen New Fortune Magazine Co., Ltd.73SZSEShenzhen Stock Exchange74The year, the reporting periodThe period from 1 January 2024 to 31 December 2024

The year 2024 was a leap year for Tianshan Material’s new journey towards higher quality and green transition. Amidsta multitude of challenges posed by the national macroeconomic environment, such as decelerating growth, periodicproduct fluctuations, and profound adjustments in the real estate industry, our three core businesses encounteredunprecedented trials. However, in these trying times, we intently focused on the “3633 Action Plan” and stood united witheveryone who cares for Tianshan Material. We deepened our rened management and tapped into internal potential toachieve cost savings and higher e?ciency. In addition, we fully promoted the in-depth integration of the industrial chainand digital transformation to inject new vitality and wisdom into our development.We are acutely aware that each stride forward must be accompanied by a respectful and gentle approach towardsnature. Therefore, we have proactively responded to the national “dual carbon” initiative and embraced green andsustainable development as our solemn responsibility. In specic, we have not only seamlessly integrated the corporatemission that “materials create a better world” into our corporate strategic blueprint but have also actively practiced thephilosophy to “use resources in a natural-favorably way and serve in construction”. Centered around the three pillarsof “creating low-carbon sustainable advantages, strengthening the high-quality talent base, and delivering win-wincooperation benets”, we have carefully planned and implemented a series of strategic measures. Between 2024 and2025, we comprehensively upgraded our sustainable development strategy and delineated a clear path and actionablegoals, in a bid to paint a vibrant ecological portrait of green building materials in collaboration with our industrial partners,thereby contributing to the enduring sustainability of our planet.Innovation remains the inexhaustible impetus in our quest for global prominence. We have spared no efforts toovercoming technological barriers, striving to serve society with high-quality products. We have also been dedicatedto energy saving, carbon reduction, and environmental protection. Through technological transformation and industrialupgrading, we have been promoting the high-end, intelligent, and green transition of the building materials industry.This year, many of our subsidiaries received low-carbon product certication, and green factories and mines emergedas industry benchmarks. These milestones not only cement our role as pioneers in the green transition of the buildingmaterials industry but also exemplify our actionable vision for harmonious coexistence between man and nature.

Management’s Message

While pursuing excellence, we always bear in mind the care and responsibility we have for each and every one ofour employees, as we rmly believe that health and safety are the most solid foundations. We have made continuousefforts to optimize our safety production management system, and strengthen risk prevention and control measures.Furthermore, we have carried out diversied safety education and health promotion activities, pursued the goal of zeroaccidents and zero occupational diseases, so as to ensure the life safety and health of every employee and partner.In the coming years, we will continue to adhere to the concept of sustainable development, further integrate the greendevelopment concept into our management system, and establish a unique sustainable development model featuring“Tianshan characteristics”. Our goal is to make Tianshan Material a trustworthy basic material manufacturer and serviceprovider, leveraging every strength to build a greener, more harmonious, and better world. We would like to invite each ofyou to join our journey where every choice we make demonstrates the “goodness” of building materials. Together, we willwitness the power of harmonious coexistence between man and nature in every creation. Let’s make concerted e?orts tocreate a bright future for all people.

“

”

2024 Environmental, Social and Governance ReportManagement’s Message

2024 Environmental, Social and Governance ReportBuilding a New Blueprint for Our Vision

天山材料坚持践行可持续发展理念，不断完善ESG管理体系，致力于推动企业与环境、社会和谐共融，提升公司ESG管理水平与表现，创造可持续的企业价值。本年度，公司高度重视与各利益相关方的沟通与交流，持续搭建具有“天山特色”的可持续发展战略模型，努力探索生态效益和经济社会效益的平衡之道。

构筑企业愿景新蓝图

2024 Environmental, Social and Governance ReportBuilding a New Blueprint for Our Vision

2024 Environmental, Social and Governance ReportBuilding a New Blueprint for Our Vision

Founded in November 1998 and listed on the Shenzhen Stock Exchange (SZSE) in 1999 (stock code: 000877), TianshanMaterial Co., Ltd. leads the country in clinker and commercial concrete production capacity, and is a national leader in aggregateproduction. The scope of business covers manufacturing and sales of cement, clinker, commercial concrete and aggregates.

Overview of the Company

Total assets288,074million

Clinker productioncapacity

million tonnes

Legal entities

Aggregate productioncapacity

million tonnes

Covering

provinces, autonomous regionsand municipalities directly under thecentral government.

Commercial concretecapacity

million cubic meters

Employees

thousand

By the end of the reporting period

Overseas: Zambia, Nigeria, Mongolia

Sinoma Cement

Xinjiang Cement

Jiahua SpecialCement

Henan Tianshan

CUCC

Yunnan Cement

Guizhou Cement

Zhongnan Cement

Jiangxi Cement

Sanshi MaterialSouth CementHuadong MaterialHuanan MaterialSouthwest Cement

Zhejiang Cement

2024 Environmental, Social and Governance ReportBuilding a New Blueprint for Our Vision

Guided by the mission of “materials create a better world” and the philosophy of “excellence in operation, refinement inmanagement and robustness in organization”, the Company has formed a sustainable development strategy system. This year,with deep collaboration between the Board’s Environmental, Social and Governance Committee (ESG Committee) and variousfunctional departments, the optimization of digital tools, and the renement of strategic actions and goals, the Company hasfurther advanced the sustainability strategy. To support the implementation of this strategy, the Company organized a range ofmulti-layer and multi-form meetings, including internal alignment sessions, management awareness training, and meetings withthe general manager of subsidiaries. These e?orts are aimed at building consensus and driving shared development. Besides,the Company has made comprehensive adjustments to the strategic roadmap and engaged in detailed discussion with keydepartments to set the action plans and goals for 2024-2025, laying a solid foundation for achieving sustainable development.

The focus of “creating low-carbonsustainable advantages” aimsto improve Tianshan Company’senvironmental performance.By applying new energies,developing green productsand expanding recycling, theCompany is committed toachieving green transition toaddress climate issues andreduce ecological impacts.

The focus of “strengtheningthe high-quality talent base”aims to promote the commondevelopment of the Companyand employees. While strivingto become a leading playerwithin the industry, the Companyalso provides employees witha healthy, safe and comfortableworkplace to improve employees’well-being and sense ofbelonging.

The focus of “delivering win-wincooperation benets” aims to builda green industrial chain, carryout sustainable procurement andmeet diversied customer needs.Tianshan Material seeks to addvalue to the society and enhanceour social inuence. Besides, weimprove our business conduct,enhance the Company’s moderngovernance capability, ande?ectively implement sustainabledevelopment management,so as to fulll corporate socialresponsibilities.

Sustainable Development Strategy Model

Strategic planning of Tianshan Material’s sustainable development

Three Key Goals for Our Sustainable DevelopmentCreating low-carbonsustainable advantages

Strengthening thehigh-quality talentbase:

Delivering win-wincooperation benets

To align with the Company’s strategies and sustainability needs, as well as to achieve higher quality and efficiency inmanagement, the Company has established a sound “governance-management-execution” ESG governance structure,formulated work rules, clarified job duties and formed a long-term ESG work mechanism to further promote the win-windevelopment with stakeholders, achieve the mid- and long-term strategic goals of the Company and promote sustainabledevelopment.Tianshan Material has formulated and implemented the “Rules of the ESG Committee of the Board” and “Management Rules forthe ESG Working Group”, which denes the Company’s ESG governance structure and promotes the implementation of ESGmanagement issues.

The Board is the highest responsible body for the management and public disclosure of the Company’s ESG issues, andreviews and approves the Company’s ESG strategies and objectives as well as major issues relating to social responsibilities.

The Board has set up an Environmental,Social and Governance (ESG)Committee (hereinafter referred to as“ESG Committee”), which comprisesthree directors: Zhao Xinjun, Shen Jun,and Li Chen, and the Chairman ZhaoXinjun acts as the head of the ESGCommittee. The ESG Committee is mainlyresponsible for formulating the Company’sESG management policies, objectives,strategies and framework, identifyingESG development trends and assessingESG risks and opportunities faced by theCompany, and supervising and guiding theESG Working Group.

The ESG Working Group, as the maincoordinating and executive body, isauthorized by the ESG Committee toassist the ESG Committee in guiding andsupervising the governance function of theCompany in implementing ESG issues. TheESG Working Group is mainly responsiblefor formulating ESG-related policies andaction plans in line with the Company’sstrategy and ESG objectives; managingESG-related risks and issues in Company’sdaily operations; communicating with theCompany’s subsidiaries and coordinatingand promoting the implementation of ESG-related issues; and collecting, collating andcompiling the annual ESG report and otherESG-related issues.

●Review the Company’s ESG and climate change-related policies andstrategies to ensure that they comply with laws, regulations and standards

●Review the Company’s ESG and climate change-related management andinternal supervision system and make recommendations to the Board on itsappropriateness and e?ectiveness

●Assess and sort out the ESG and climate change-related risks andopportunities of the Company and make recommendations to the Board

●Review and supervise the goals and implementation of the Company’sESG and climate change-related work, assess the work and makerecommendations to the Board

●Assess how the Company communicates with stakeholders on ESG mattersand ensure that appropriate communication policies and channels are inplace to e?ectively engage the Company’s relationships with stakeholders

●Other job duties delegated by the Company’s Board

●Organize, coordinate and supervise the implementation and execution of ESGand climate change-related work by the subsidiaries of the Company

●Organize and carry out the ESG work of the Company in accordance with theoverall ESG and climate change-related management goals, strategies andguidelines approved by the ESG Committee, formulate relevant systems andprocesses and report to the ESG Committee for review and approval

●Report regularly to the ESG Committee on ESG and climate change-related management (including but not limited to assessment, ranking andmanagement of signicant ESG related issues)

●Communicate with stakeholders on ESG and climate change-related mattersand present feedback concerning important ESG and climate change-relatedmatters or the Company’s business to the ESG Committee, management orrelevant departments

●Other duties and responsibilities delegated by the Board or the ESGCommittee

ESG Governance Structure

ESG Governance Structure

The Board

ESG Committee

ESG Working Group

2024 Environmental, Social and Governance ReportBuilding a New Blueprint for Our Vision

Creating low-carbon sustainable advantages

ESG Performance Highlights

products certied as green products orlow-carbon products

factories passed the occupationalhealth and safety management systemcertication

national green mines

6,312,300

m

of operating area where biodiversityimpact assessments have been carriedout and biodiversity management planshave been developed

companies passed thequality system certication

national green factories

provincial green mines

146,604,719.03

tonnesof total greenhouse gas

emissions, down

11.99%

year on year

100%

AI alert comprehensiveresponse rate

factories passed the environmentalmanagement system certication

national green demonstrationfactories of ready mixed concrete

smart mines

1,685.21

tonnes/RMB 1 millionof greenhouse gas emissions intensity

Total investment of RMB2,034,584.2

thousandin ecological and environmentalprotection

, up

22.12%

year on year

Strengthening the high-quality talent base

Training hours ofemployees reached1,222

thousand

thousand hoursfor skills and business

863,374

employee attendances in occupationalhealth and safety training sessions

685.9

thousand hoursfor safety and environmentalprotection

thousand hoursfor management

Total expenses for employee trainingand development reached RMB42,702

thousand, up

41.5%

year on year

92.18%

recycled water utilization rate of clinker-producingcement companies

0.2396

kgnitric oxide (NO

x) emissions per unit of clinker,down

7.86%

year on year

40,868.76

tonnesof total emission of nitrogen oxides (NO

x)

0.0194

kgparticle emissions per unit of clinker,down

23.24%

year on year

19,309,556.77

tceof standard coal equivalent of total energy consumption(including total natural gas consumption, total powerconsumption, total renewable energy consumption andtotal non-renewable energy consumption)

4.00%

thermal substitution rate (TSR) from alternative fuels

99.43

kgce/tcomprehensive energy consumption per unit ofclinker products, down

6.94

kgce/t of standard coalcompared with last year

100%

reusing rate of the treated wastewater for concretebusiness

0.0201

kgsulfur dioxide (SO

) emissions per unit of clinker,down

1.49%

year on year

100%

overall pass rate of cement products

Delivering win-win cooperation benets5,220

copiesof “Commitment to Integrity andSelf-discipline of Management”were signedAnti-corruption training with164,237

attendancesby employees and directorsTotal investment of RMB42,855.3

thousandin public welfare (includingmaterial donations)

70,404

copiesof “Integrity ResponsibilityAgreement” were signed100%

signing rateof the “Supplier IntegrityCommitment”RMB

million of donationsto the Shanjian Public WelfareSpecial Fund of the ChinaVolunteer Service Foundation

4,452

anti-corruption (anti-commercialbribery) training sessions

100%

of the key employeeparticipated in the anti-corruption (anti-commercial bribery) training sessions

3,319

hours

of volunteer activities

2024 Environmental, Social and Governance ReportBuilding a New Blueprint for Our Vision

ESG Awards and Recognitions

2023 ESG Best PracticeAward for Listed Companies

“The 5th Panoramic InvestorRelations Gold Award” -“Outstanding IR Team”

“The 5th Panoramic InvestorRelations Gold Award” -“Outstanding ESG ValuePromotion Award”

“2024 New Fortune BestPublic Companies” - “ESGBest Practices”

Best Practices of Investor RelationsManagement for Listed Companiesin China

2024 Yinghua Awards for ListedCompany in China - A ShareValue Award

Selected as one of the best practicecases of fulllment of responsibility in the“Common Wealth” chapter of the “BlueBook on Social Responsibility of CentralState-owned Enterprises (2024)”

2024 Shanghai SecuritiesNews Golden Quality Award -ESG Award

The 15th Tianma Award forInvestor Relations of ListedCompanies in China

“Special Contribution Awardfor Corporate Governance” atthe 19th Golden Round TableAward for Boards of Directorsof Listed Companies in China

Recognized as one of the“2024 Best Practice Casesin Sustainable Developmentof Listed Companies” by theChina Association for PublicCompanies

2024 Cailian Press ZhiyuanAward – Pioneer in CorporateGovernance

Easy Board/Value Online

Panorama

Panorama

New Fortune

China Association forPublic Companies

China Fund

Bureau of Social Responsibilityof the State-owned AssetsSupervision and AdministrationCommission of the State Council

Shanghai Securities News

Securities Times

The Directors & Boards

China Association forPublic Companies

Cailian Press

January 2024

September 2024

September 2024

January 2025

March 2024

July 2024

November 2024

December 2024

June 2024

June 2024

November 2024

November 2024

Investor Communication

The Company regards investors as the basis for capital marketdevelopment. Respecting, protecting and rewarding investors andtreating all investors equally are important principles of corporategovernance. In the year, the Company improved and strictlyimplemented the “Investor Relations Management Policy”, “InvestorRights and Interests Protection Policy”, “Information DisclosureManagement Measures” and “Management Policy for InternalInformation and Insiders”, so as to disclose the Company’s materialinformation, continue to open up and optimize investor communicationchannels, and pay attention to and respond to the voices of investors.Communication with investors is crucial for the sustained growth andprosperity of the Company. The Company has set up a seasonedand professional team for investor relations management, whichhas extensive experience and deep expertise in investor relationsmanagement, nancial management, and legal a?airs, as well as goodcommunication skills. The Company formulates the annual work planon a yearly basis, specifying the objectives and key tasks for investorrelations management, and updates the work plan every six months toadapt to market changes and the Company’s development.In 2024, the Company was dedicated to expanding and optimizingthe communication channels and methods with stakeholders, so asto accelerate the development of a digital and intelligent investorrelations management system. The Company continues to operate the“Investor Relations” module on the o?cial website and the “TianshanCompany Investor Relations” official account and mini-program toenable investors to stay informed about the latest developmentsof the Company. In addition, the Company leverages a variety ofchannels to engage with investors, including the SZSE interactiveplatform, performance presentations, regular reports, on-site research,teleconferences, web conferences, third-party roadshow platforms,online interactive platforms, IR mailboxes and investor relationstelephone lines. We also regularly carry out themed activities focusingon the Company’s business development, green and low-carbontransition, and dissemination of investment value. Through all of thesee?orts, we aim to communicate extensively with investors and respondpositively to the many concerns we have learnt about.In 2024, the Company updated the “Annual Investor CommunicationPlan” and actively put it into practice. Throughout the year, theCompany hosted two annual performance presentations, one on-siteresearch event on special cement production for special analysts,one collective reception day event for listed company investors, andone large-scale investor education activity co-hosted with the ChinaSecurities Investor Service Center and the Shanghai Securities News,titled “Get to Know My Listed Company”, which generated a total of

2.13 million online views. Besides, the Company organized 82 targeted

investor research events, 19 reverse roadshow sessions, and receiveda total of 365 investor visits from research institutions, involving 669individuals. The Company issued seven investor relations activityreports, participated in 32 strategic and peak meetings, achieveda 100% response rate to investor queries on the SZSE interactiveplatform, and handled over 200 investor inquiry calls. In the year, westrengthened communication with investors and organized investorexchange to guarantee the smooth communication between us andour investors.

Company hosted

annualperformance presentations

Received a total of

investorvisits from research institutions

reverse roadshow sessions,

Company organized

targetedinvestor research events

Achieved a

100%

responserate to investor queries on the SZSEinteractive platform

In 2024,

Large-scale investor education activity“Get to Know My Listed Company”

2.13

million online views

2024 Environmental, Social and Governance ReportBuilding a New Blueprint for Our Vision

Materiality Assessment

Under the supervision of the Board’s ESG Committee, Tianshan Material regularly conducts ESG materiality assessment. Theprocess is carried out through the following steps and is conrmed by the Board of Directors.Materiality analysis

Identication ofMaterial Issues

Development of theMateriality Matrix

StakeholderEngagement

Approval of Material

Issues

ESG issues relevant to the Company are identified based on ESG disclosureguidelines and ESG disclosure standards from regulatory authorities, ESG issuesof concern to the industry and the capital market, and recommendations from bothinternal and external experts.

The 2024 materiality matrix and ranking of issues are developed based on theprinciples of materiality assessment, the materiality of each ESG issue, andcommunication with stakeholders.

The conrmed materiality matrix is presented to the Board of Directorsfor review and approval, and then disclosed accordingly.

The Company engages with internal and external stakeholders through variouscommunication channels to gather and analyze their opinions on the Company’sESG management.

Tianshan Material materiality assessment process

The Company maintains regular communication with stakeholders via various channels to understand and promptly respond totheir needs, using their feedback and concerns as motivation for continuous improvement of our ESG management. In the year,the key issues of concern of main stakeholders are as follows:

Stakeholder engagement

StakeholderFocused TopicsCommunication Method

Directors

●Company strategy and planning

●Company Charter and important policies

●Important organizational restructuring andpersonnel arrangement

●Major investment and nancing matters

●Quality of operations

●Compliance

●Quality assurance of products and services

●Shareholders’ Meeting

●Board Meeting

●Board special committee meetings

●Independent directors special meeting

●Board Consultation

Company Management

●Optimization, upgrading and green transitionof production and operation

●Company governance, reform and innovation

●Compliance of employee occupational safetyand health

●Anti-corruption and integrity promotion

●Management Meeting

●Work reporting and communication

●Governance and integrity training andmanagement, etc.

Employees

●Employee occupational health and safety

●Employee career development and training

●Labor regulations

●HR Management

●Safety training and practice

●Career development seminars

●Support for employees in di?culty

●Employee representative meetings andseminars, etc.

Government andRegulatory Agencies

●Compliance

●Quality assurance of products and services

●Greenhouse gas emission and management

●Water use and management

●Employee occupational health and safety

●Ecology and natural resource protection

●Reporting on work and regularcommunication with regulators

●Participation in conferences and majorevents

●Environmental information disclosure

●Publishing compliance reports andaccepting supervision

2024 Environmental, Social and Governance ReportBuilding a New Blueprint for Our Vision

StakeholderFocused TopicsCommunication Method

Shareholders/Investors

●

Quality of operations

●Green transition

●Compliance

●

Quality assurance of products and services

●

Greenhouse gas emission and management

●Wastewater drainage and management

●

Solid waste disposal and management

●Labor regulations

●Optimization and upgrading

●Publication of periodic reports

●Holding shareholders’ meeting,performance presentation, analystpresentation, roadshow and reverseroadshow, strategy meetings, investoreducation activities, and investor groupreception day activities

●Communication channels such asSZSE interactive platform, “InvestorRelations” module on the o?cialwebsite, the “Tianshan Material InvestorRelations” o?cial account and mini-program, investor hotline, IR anddirector secretary email

Customers

●Quality assurance of products and services

●Anti-unfair competition

●

Compliance

●

Anti-corruption and integrity promotion

●Customer research

●

Customer complaint handling andcallback

●Regular disclosure of corporateinformation

Business suppliers/contractors

●Compliance

●Anti-corruption and integrity promotion

●Quality assurance of products and services

●Supply chain management

●Supplier management assessment andcommunication

●Contract negotiation and daily meetings

●Regular disclosure of corporateinformation

Community/industryassociations

●Green transition

●Sustainable development

●Anti-unfair competition

●Compliance

●Industry communication and seminar

●Regular disclosure of corporateinformation

Press

●Ecology and natural resource protection

●Optimization and upgrading

●Green transition

●Quality assurance of products and services

●Solid waste disposal and management

●Wastewater drainage and management

●Press interviews

●Press releases and announcements

Research institutes suchas universities/researchinstitutes

●Research innovation and investment

●Quality assurance of products and services

●Ecology and natural resource protection

●Research cooperation andcommunication

●Regular disclosure of corporateinformation

The Company identifies key issues related to our business that are material from an impact perspective through internaland external interviews, peer benchmarking, and expert consultations based on assessments of national policies, regulatoryconcerns, industry trends, and our own development plans.Tianshan Material analyzes the materiality assessment results and prioritizes the materiality of each issue in the form of amatrix. A total of 20

material issues have been identied and the materiality matrix has been formed accordingly, which hasbeen conrmed by the Board of Directors.

Materiality analysis

Tianshan Material is mainly engaged in the traditional construction materials business, and our core business includes the production and sale of cement, clinker, commercialconcrete and aggregates. We do not conduct scientic research and technology development activities related to life science, articial intelligence or other elds involving scienceand technology ethics, so the issue of “ethics of science and technology” is not involved.

The Company is actively sifting and exploring methodologies for assessing and analyzing the financial materiality of ESG issues to better guide sustainable developmentmanagement and information disclosure.

Climate response

Rural revitalizationEqual treatment of SMEsSocial contribution

InnovationCircular economyProduct and service safety and qualityEmployeesEnergy utilizationEnvironmental compliance managementPollutant dischargeAnti-commercial bribery and anti-corruptionWaste disposalSupply chain securityData security and customer privacyStakeholder engagementWater resources utilizationAnti-unfair competitionDue diligenceEcosystem and biodiversity protection

High

Moderate

ESG Materiality assessment results

Tianshan Material 2024 materiality matrix

Medium

ModerateMediumHigh

Climate response

Energy utilization

Anti-commercial bribery

and anti-corruptionDue diligence

Anti-unfair competition

Stakeholder engagement

Supply chain security

Product and service safety and quality

Data security andcustomer privacy

Employees

Innovation

Equal treatment of SMEs

Social contribution

Rural revitalization

Ecosystem andbiodiversity protection

Circulareconomy

Environmental

compliancemanagement

Pollutantdischarge

Water resources utilization

Waste disposalMateriality to stakeholders

Materiality to the Company's developmentLow

High

High

EnvironmentalSocialGovernance

2024 Environmental, Social and Governance ReportFeature: Fullling the New Mission on Climate Change

五、专题：践行气候变化新使命

公司厚植绿色发展根基，积极响应国家的“双碳”战略目标，主动识别分析影响公司气候变化相关的风险与机遇，并制定气候风险管理办法与应对措施，努力探索生态效益和经济社会效益的平衡之道。为增强透明度与规范性，公司参考气候相关财务信息披露工作组（TCFD）发布的《气候相关财务信息披露工作组建议报告》，披露了公司在气候变化方面的“治理”“战略”“风险与机遇管理”以及“指标与目标”等核心内容。

2024 Environmental, Social and Governance ReportFeature: Fullling the New Mission on Climate Change

Feature: Fullling the New Mission on Climate Change

2024 Environmental, Social and Governance Report

Advancing Climate Governance

A solid governance structure and clear management responsibilities are crucial for effective climate change response andmanagement in enterprises. The Board is the highest responsible body for the management and public disclosure of theCompany’s ESG issues, including overseeing climate-related risks and opportunities. The Board has set up an Environmental,Social and Governance (ESG) Committee (hereinafter referred to as “ESG Committee”), which comprises three directors: ZhaoXinjun, Shen Jun, and Li Chen, who possess diversied expertise and strategic vision and extensive experience in driving thegreen transition of the industry and addressing climate change. The ESG Committee is responsible for reviewing the Company’sESG and climate change-related policies and strategies, examining relevant management and monitoring systems, andassessing the management of risks, opportunities, and work goal implementation.The ESG Working Group, as the main coordinating and executive body, is authorized by the ESG Committee to assist the ESGCommittee in the implementation of governance responsibilities and related tasks concerning climate change. Managementof the Company is responsible for climate change-related tasks, including strategic planning, management policy formulation,resource allocation, target setting, and implementation overseeing. The Company has integrated the management ofclimate change into the duties of various departments, including the Technical Management Department and the Safety andEnvironmental Protection Department. The Technical Management Department is responsible for technological innovationas well as the implementation of emissions reduction plans, while the Safety and Environmental Protection Department isresponsible for environmental regulatory compliance and reports to the ESG Committee on a regular basis.

The Company has formulated and implemented the “Rules of the ESG Committee of the Board” and “Management Rules forthe ESG Working Group”, which stipulate the composition, duties and responsibilities, decision-making procedures, and rulesof procedure of the ESG Committee at the policy level. The Company holds an ESG Committee meeting at least once a year toreport on matters related to climate change, including the achievement of targets and risk management practices.The Company links climate response performance to the compensation of the Company’s management to incentivize them toactively implement sustainability strategies. These measures are designed to meet stakeholder expectations, enhance long-term competitiveness and reputation of the Company, while also optimizing internal management and ensuring regulatorycompliance, so as to drive dual achievement of company development and climate-related goals. The Company has signed the“Responsibility Statement of Annual Operation and Management Target for Regional Companies” with the subsidiaries, and the“Responsibility Statement of Annual Ecological Environmental Protection Target” with the Company’s management, persons incharge of each subsidiary, and managers and employees of the subsidiaries, and made ESG-related management performancetied to the KPIs. The signing rate of these responsibility statements was 100%.

Governance structure

The Board is the highest responsible body for the management andpublic disclosure of the Company’s ESG issues, including overseeingclimate-related risks and opportunities.The ESG Committee is responsible for reviewing the Company’sESG and climate change-related policies and strategies, examiningrelevant management and monitoring systems, and assessing themanagement of risks, opportunities, and work goal implementation.The ESG Working Group, as the main coordinating and executivebody, is authorized by the ESG Committee to assist the ESGCommittee in the implementation of governance responsibilities andrelated tasks concerning climate change.

The Board

ESG Committee

ESG Working Group

Climate Action Strategy

Climate change is a signicant challenge for human society. At Tianshan Material, we continue to rene our strategic frameworkto address climate-related risks and actively contribute to the national goals for “Carbon Peaking and Carbon Neutrality”.Based on regulatory requirements and industry characteristics, Tianshan Material identifies and assesses climate risks andopportunities the Company faces. In line with the Company’s strategy and development progress, the Company has formulatedand gradually implemented corresponding measures. Besides, the Company requires all subsidiaries to develop short-,medium-, and long-term strategies to contribute to positive climate and environmental change.

Taking into account the external environment, the Company’s strategic development goals, business operations, and valuechain impacts, we analyze the material risks and potential opportunities arising from climate change. Through collaborationamong various departments, we identify and assess the potential business and nancial impacts of key climate change relatedrisks and opportunities. We also conduct scenario analysis and nancial impact assessments based on the current managementpractices.We have defined the time horizon of Tianshan Material’s climate change related risks and opportunities across the short,medium, and long term, aligning closely with the time frame and business direction outlined in the 15th Five-Year Plan, providingstrong support for the Company’s sustainable development. Furthermore, we have established criteria for classifying themateriality of the nancial impact of climate change risks and opportunities as “high”, “medium” or “low” based on the impact ofeach risk and opportunity on operating income.

(See next page for specic climate change-related risks and opportunities.)

Climate-related risks and opportunities

Denitions of Short, Medium and Long Term

Within 1 year afterthe end of thereporting period,including 1 year

2 to 5 years after

the end of thereporting period,including 5 years

Over 5 years afterthe end of thereporting period

Short termMedium termLong term

Feature: Fullling the New Mission on Climate Change

2024 Environmental, Social and Governance ReportClimate-Related risks

Type

ImpactPeriod

DescriptionMeasures to Address Risks

CurrentFinancialImpact(Impact onthe Current

Year)

Anticipated

FinancialImpact(Impact on

the YearAhead)

Transition Risks

Shortterm

Increased pricing of GHGemissions leads to increasedoperating costs (e.g., highercompliance costs, increasedinsurance premiums).

●Formulate and make continuous improvements to medium-and long-term goals for carbon emissions after in-depthresearch.

●Develop a carbon emissions monitoring program andestablish and apply a carbon emissions online monitoringsystem.

●Set up a Dual-Carbon Management Department and assigndedicated personnel to undertake related work. Conductcarbon emissions trading-related training to enhance theawareness and capabilities of employees responsible forcarbon emissions trading.

LowLow

Enhanced emission reportingobligations and mandateson and regulation of existingproducts and services leadto increased operating costs(e.g., higher compliance costs,increased insurance premiums,such as property insuranceand safety production liabilityinsurance).

●Engage with relevant authorities in di?erent regions to gain adeeper understanding of policies and their guidance, identifypotential risk factors, and reduce risks through standardizedmanagement.

●Take measures to strengthen the accountability of memberunits, including annual work planning and the formulationof corresponding policies and management mechanisms toclarify responsibilities, and e?ectively address incidents andcontrol costs.

●Engage third-party agencies to assist the Company inenhancing environmental compliance consultation andmanagement.

●Impose penalties for environmental violations and continueto enhance environmental remediation e?orts.

LowLow

Environmental issue relatedlitigations may result in nesand judgements, which in turnlead to reduced demand andoperating income.

●Assign the Safety and Environmental Department and theLegal Compliance Department to monitor all regulatorymatters and legal proceedings that may pose signicantrisks to the Company, including compliance risk factorsrelated to environmental protection requirements, andprovide updates to management on a regular basis.

LowLow

Mediumterm

Government or otherregulatory agencies introducestandards, requirements, andsubsidies for green productsor management in the cementindustry. This, in turn, urgesreal estate developers toprioritize the use of greenbuilding materials whenplanning new projects. As amajor producer of cement,partners may adjust theirprocurement criteria in line withthe new policy and prioritizecooperation with green cementproducers. A high share oftraditional cement productswithout a timely transitionto a greener, low-carbonproduct portfolio could lead toa decrease in demand for theCompany’s products/services,resulting in reduced operatingincome.

●Actively respond to the requirements from stakeholdersacross the cement value chain, upstream and downstream,regarding climate change, such as advancing green productcertication for single-purpose cement and special cement.

LowLow

Policy and Legal

Market

Type

ImpactPeriod

DescriptionMeasures to Address Risks

CurrentFinancialImpact(Impact onthe CurrentYear)

Anticipated

FinancialImpact(Impact onthe YearAhead)

Mediumterm

Increased concerns ornegative feedback frominstitutional investors and otherfunding providers regardingenvironmental protection maylead to a tightening of availablefunds, resulting in reducedfunding for the Company.

●Maintain regular communication with institutional investorsand other funding providers and disclose ESG reportsperiodically to address stakeholder concerns.

LowLow

Low-carbon market trends andconsumer behavior can lead toreduced demand for non-low-carbon products, resulting inreduced operating income.

●Enhance market research and adjust product strategy in atimely manner. Pay close attention to the demand for low-carbon products and carry out continuous research oninnovative low-carbon product solutions.Tianshan Material's Corporate Research Center collaborateswith China Building Materials Academy and other relevantresearch institutes to create synergy for innovative low-carbon products. These concerted e?orts focus on lowcalcium, low energy consumption, carbon capture and lowclinker technologies to promote the low carbonization ofcement and its products.

LowLow

Fluctuations in market pricesmay lead to increases inproduction inputs (e.g., energy,water, waste disposal).

●

Enhance the penetration of photovoltaic systems in eachplant, explore the potential of photovoltaic power and windpower, and increase the share of green power.

●

Enhance the R&D and application of water-savingtechnologies to reduce water consumption and improvewater e?ciency through technological innovation.

●

Carry out ultra-low emission transformations by adoptingadvanced environmental protection technologies andequipment to reduce pollutant discharge and improveenvironmental performance.

MediumMedium

The limited availability ofalternative raw materials andalternative fuels in certainregions may lead to increasedproduction costs.

●

Identify alternative raw materials and fuels based on localconditions, taking into account both cost and availability, andformulate plans for alternative fuel development.

LowLowLongterm

Investment in the R&D oflow-carbon technologies,equipment, and managementmay lead to increased capitalexpenditures and costs.

●

Intensify market and technology research to ensure that ourR&D is closely aligned with actual needs. Optimize the R&Dprocess and improve the e?ciency of capital use.

LowLowPhysical Risks

Shortterm

Increased severity of extremeweather events can result indecreased production capacity,higher operating costs, andlower operating income.

●Continuously expand procurement channels, enhanceinventory management, implement dual sourcing, and pre-stock to address supply disruptions and ensure a stablesupply.

●Respond promptly to weather risk alerts from ChinaMeteorological Administration and natural disastermanagement agencies, and arrange for the shipmentof goods base on the weather conditions. In the eventof extreme weather, shipments shall be immediatelysuspended and vehicles shall be managed accordingly.

●Establish an internal intelligent production safetymanagement system, with certain factories adjustingproduction schedules based on ood and rainy seasons,and ensuring material and production readiness in advance.

LowLow

MarketTechnicalAcute

Feature: Fullling the New Mission on Climate Change

2024 Environmental, Social and Governance Report

Climate-Related opportunitiesType

ImpactPeriod

DescriptionMeasures to Seize Opportunities

CurrentFinancialImpact

Anticipated

Financial

ImpactUnder the dual pressure of resourcescarcity and increased cost pressures,using alternative raw materials and fuelsnot only reduces dependence on limitednatural resources but also helps lowerprocurement costs for raw materials.

●Identify alternative raw materials and fuelsbased on local conditions, taking into accountboth cost and availability, and formulate futureplans for alternative fuel development.

LowLow

Use clean energy to reduce operatingcosts and reduced exposure to futurefossil fuel price increases.

●Continue to carry out themed energy-savingtechnical improvements, enhance relevanttechnological R&D, and improve productionand operation e?ciency, so as to reduceoperating costs in the long run.

●Promote clean energy and high-e?ciencytechnologies and continue to improve thepenetration of photovoltaic systems infactories, thereby reducing carbon emissionsby replacing traditional high-carbon energysources and optimizing energy e?ciency.

MediumMedium

Increased demand for green productssuch as low-carbon cement and low-carbon concrete in the downstreamindustry chain can contribute to anincrease in operating income.

●Carry out R&D of low-carbon cementtechnologies, and continue to advancegreen product certication for single-purposecement and special cement.

●Provide reliable and stable green buildingmaterials tailored to customer needs.

LowLow

Launch cutting-edge carbon reductionprojects, strengthen R&D in carbonreduction technologies, and reducecarbon emissions through carboncapture and storage from a medium- tolong-term perspective, thereby loweringcarbon emission costs for the Company.

●Actively implement carbon reductiontechnologies such as Carbon Capture,Utilization, and Storage (CCUS) to reducecarbon emissions.

LowLow

Type

ImpactPeriod

DescriptionMeasures to Address Risks

CurrentFinancialImpact(Impact onthe CurrentYear)

AnticipatedFinancial

Impact(Impact on

the Year

Ahead)Shortterm

Extreme weather may causeloss of existing assets.

●Appropriately purchase commercial insurance such ascatastrophe insurance, property insurance, and safetyproduction liability insurance, to reduce potential propertylosses caused by various disasters and accidents.

LowLowMediumterm

Changes in precipitationpatterns and extreme variabilityin weather patterns may resultin increased operating costs.

●Respond promptly to ood risk alerts from ChinaMeteorological Administration and natural disastermanagement agencies, establish an emergency coordinationmechanism for production and sales, establish an internalintelligent production safety management system, andensure material and production readiness in advance.

MediumMediumAcuteChronic

ResourceE?ciencyMedium orlong term

Energy E?ciencyMedium orlong term

Products andServicesShort tomedium term

ResilienceShort tomedium term

Risk and Opportunity Management

The Company refers to the Shared Socioeconomic Pathways (SSP) from the Intergovernmental Panel on Climate Change (IPCC)and climate change scenarios publicly released by the International Energy Agency (IEA). In addition, based on the Company’s“Implementation Plan for Reaching Carbon Peaking and Carbon Neutrality”, we have selected two applicable scenarios: a low-emission scenario and a high-emission scenario, to analyze the impacts of critical climate-related physical and transition risks onour operations.

Climate change scenario analysis

Climate scenario analysis under transition risks

Scenario Applied

Optimistic ScenarioRCP2.6/RCP4.5, SSP1

Pessimistic ScenarioRCP6.0/RCP8.5, SSP3ClimaticCharacteristics

Low-Emission scenario: Through e?ective mitigationmeasures, the greenhouse gas emissions are halvedby 2050.

High-Emission scenario: Maintaining the status quoleads to a continuous increase in greenhouse gasemissions.SocioeconomicCharacteristics

Emphasis is placed on the harmonious coexistence ofhuman beings and nature. Cross-regional and cross-agency cooperation is e?ective and sustained. Strictenvironmental management, rapid technologicalchange, improved resource e?ciency, reduceddi?culties in accessing water, and increased watersafety are witnessed.

Global governance, institutions, and leadership arerelatively weak. Investment in technological R&D hasdecreased. Resource usage intensity has increased.Environmental policies are not being prioritized, withenvironmental systems in certain regions severelydamaged. Water scarcity and safety challenges areenhanced by continued population growth.

EstimatedTemperature Riseby the End of theCentury

<2℃>4℃Scenario SourceIntergovernmental Panel on Climate Change (IPCC)

Climate scenario analysis under physical risks

Scenario Applied

NZENet Zero Emissions by 2050 Scenario

STEPSStated Policies Scenario (STEPS)Scenariodescription andimpacts

This scenario assumes the possibility and impact ofglobal net-zero greenhouse gas emissions by 2050. Inthis scenario, countries will introduce strict policies toincrease the use of energy-e?cient technologies andreduce dependence on fossil fuels.

This scenario assumes the development trends inenergy demand and supply without considering theintroduction of any new policies or measures.EstimatedTemperature Riseby the End of theCentury

<1.5℃

2.4

℃Scenario SourceInternational Energy Agency (IEA)

Feature: Fullling the New Mission on Climate Change

2024 Environmental, Social and Governance ReportThe prioritization and relevant criteria of sustainability-related impacts, risks, and opportunities are based on a comprehensiveconsideration of their alignment with the Company’s long-term strategy under di?erent climate scenarios, the signicance of theirimpacts on the Company’s operations and nancial condition, the urgency of the impacts, the Company’s control over the issue,and the level of stakeholder concern. Together, these criteria guide the Company in identifying and prioritizing issues that arecritical to sustainability, ensuring that the Company achieves its triple bottom line goals of economic, social, and environmentalimpacts while addressing the challenges of climate change. The table below shows the degree of impact of the identied risksand opportunities on the Company under di?erent climate change scenarios.

The Company has implemented a series of key risk mitigation measures to address the challenges of green developmentand transformation. The Safety and Environmental Department keeps tabs on regulatory and legal changes related toclimate change, enabling the Company to adjust its strategies in a timely manner. On top of that, a Dual-carbon ManagementDepartment has been established to focus on carbon emission planning and monitoring. The Company also provides trainingprograms to enhance employees’ expertise in carbon trading. Moreover, the Company is actively pushing forward with resourceconservation and technological innovation, such as water-saving initiatives and the adoption of renewable energy, to enhanceoperational e?ciency and environmental performance.On the marketing strategies, the Company is stepping up its market research e?orts to quickly adapt to the growing demandfor low-carbon products. The Company also maintains steady communication with stakeholders by regularly publishing ESGreports. Besides, the Company has tightened up its internal management and accountability to make sure environmentalresponsibilities are properly carried out. With these moves, the Company aims to keep marching forward on the road tosustainable development while ensuring business continuity and compliance.

Scenario

Optimistic ScenarioRCP2.6/RCP4.5, SSP1

Pessimistic ScenarioRCP6.0/RCP8.5, SSP3

ImpactLowModerateHighLowModerateHigh

RisksIncreased acute extreme weather incidents result in reduced production capacity,damage to assets, and reduced operating income.

√√Changes in chronic precipitation patterns and extreme variability in weather patternslead to increased operating costs.

√√OpportunitiesUse of lower-emission sources of energy contributes to reduced operating costs.

√√Use of alternative fuels contributes to reduced raw material procurement costs.

√√Scenario

NZENet Zero Emissions by

2050 Scenario

STEPSStated Policies Scenario

(STEPS)ImpactLowModerateHighLowModerateHighRisksIncreased pricing of GHG emissions can result in higher GHG emissions costs in thefuture.

√√Fluctuations in market prices may lead to increases in production inputs (e.g.,energy, water, waste disposal).

√√OpportunitiesIncreased demand for green products such as low-carbon cement and low-carbonconcrete may contribute to increased operating income.

√√Availability of new products or services through R&D and innovation can enhanceenterprise competitiveness and increase revenue.

√√

Meanwhile, the relevant business departments have carried out the following work:

Check if there are climate-related risks. For example, assess if the Company’s supply chain is vulnerable toclimate events, such as oods, droughts, or extreme weather.Keep a close eye on climate risk trends and policy changes, including government regulatory requirementson carbon emissions and environmental protection, as well as industry best practices and standards. Bythe end of 2024, the Company had invested RMB 835 million in organized transformation and completedselective catalytic reduction (SCR) retrot projects for 59 enterprises.Collect relevant environmental and climate data and conduct both quantitative and qualitative analyses. Forexample, collect data on energy use, carbon emissions, and water resource management to understand theCompany’s carbon footprint and resource risks. The Company actively advances digital transformation andhas built the Tianshan Material Production Management Reporting System. The system contains data onproduction, energy, quality, and ultra-low emissions, facilitating intelligent data collection and analysis.In line with the “Opinions on Promoting the Implementation of Ultra-low Emission in the Cement Industry”and certain local government requirements, the Company has pushed for the transformation of transportationmethods. Specically, the Company drives initiatives to shift from road to rail transport, from road to watertransport, and to adopt clean transportation, together for a sustainable concrete industry.

ReviewcurrentbusinessactivitiesMonitorindustrytrends and

policiesCollect and

analyzeclimate-related

data

Fosteractivestakeholderengagement

Metrics and Targets

Tianshan Material has set ecological and environmental protection targets, which have been reviewed and approved by theleadership. We have entered into target responsibility agreements with regional companies, and evaluated and examined theannual accomplishments of these targets by these regional companies based on the “Management Measures for the Evaluationof Occupational Health, Safety and Ecological and Environmental Protection Work”. By doing so, the Company aims to becomean industrial pioneer in green transition.The Company has pledged its commitment to green development, with environmental consciousness running throughoutits operations. The Company strives to contribute positively to the society and environment, working towards coordinateddevelopment of the economy, society, and environment. In line with its targets and business conditions, Tianshan Material andits member units have set up feedback mechanisms and rened reward systems. These e?orts are made to spur and sustainactive engagement from teams across all levels in realizing these targets.

Climate targets and progress

In 2025, the Company aims to achieve the following targets:

Average unit clinker CO

emissions of 815 kg,reducing by 6.24% from 2021Average tonne of cement CO

emissions of 612kg, reducing by 11.10% from 2021Comprehensive energy consumption of tons ofclinker decreased by 8.8% from 2021

The proportion of cement clinker productioncapacity that reaches the energy e?ciencybenchmark level exceeds 40%Built 1 carbon capture projectGreen mines meet the 100% standard

2024 Environmental, Social and Governance ReportLeading the New Chapter of Green Development

2024 Environmental, Social and Governance ReportLeading the New Chapter of Green Development

2024 Environmental, Social and Governance ReportLeading the New Chapter of Green Development

Embracing Green Actions

The Company is dedicated to improving resource utilization and reducing environmental impact. By rening our institutional framework,optimizing energy management mechanism, and adopting low-carbon technologies, the Company is making strides toward its targetsof energy conservation, emission reduction, and sustainable development. These actions propel the Company toward a greener, low-carbon future with higher e?ciency.

Tianshan Material has always prioritized environmental protection as a core corporate value, constantlyenhancing its environmental management system to foster high-quality, green, and low-carbondevelopment. We speed up “four shifts” of environmental management concepts, that is: managementstrategy shifts from pursuing “zero penalties” for environmental pollution to prioritizing ecological andgreen development; management mode shifts from end-of-pipe treatment to reduction at the source;management mechanism shifts from routine control to technological innovations driven by energysavings and emission reduction; and management focus shifts from a greater concern for safety toequal emphasis on safety and environmental protection.To bolster environmental management, the Company has issued the “Environmental PolicyStatement” applicable to the headquarters, subsidiaries and suppliers, which claries the managementresponsibilities at all levels. The Board of Directors regularly oversees the implementation of the policy.In addition, the Company has been fully promoting the certication of the environmental managementsystem and the occupational health and safety management system, with 431 and 431 factories passingthe certification, respectively. This year, the certification coverage rate of all operating subsidiariesreached 100%.The Company has put in place a robust environment-related risk management and prevention system.We have developed policies such as the “Environmental Emergency Management System” and the“Measures of Tianshan Material for the Management of Ecological and Environmental ProtectionIncidents”. These policies clearly outline the processes for environmental risk assessment, hiddendanger investigation, and emergency response. The Company has implemented a closed-loopmanagement model that combines “supervision, mutual inspection, and self-inspection” to ensure thatenvironmental protection work is fully covered and continuously improved. This year, the Company hadno major environmental incidents.This year, Tianshan Material faced six administrative penalties from environmental and other relevantauthorities due to environmental incidents, with total nes amounting to approximately RMB 1.12 million.These penalties are primarily centered on pollutant emissions and monitoring, as well as responses toheavy pollution weather. The Company completed the overall rectications and accountability measuresaccording to relevant rules, which had no material impact on our production and operation activities.Moving forward, Tianshan Material remains committed to enhancing environmental management,bolstering environmental monitoring, and mitigating environmental risks.

The Company places a high priority on improving the environmental management system in line with the “dual carbon” goals.By considering the actual operations, strategic needs, and industry trends, the Company constantly improves its environmentalmanagement mechanisms. We also develop carbon reduction measures and plans tailored to our business, promoting a deepintegration of the environmental management system with green and low-carbon development.

Environmental Management System Improvement

Management system improvement

Carbon reduction roadmap improvementIn line with the “Dual Carbon” goals, the Company is actively pursuing whole-process carbon management including carbon reduction atthe source and throughout the process, and carbon sequestration at the end point.The Company implements a range of measures aimed at reducing carbon emissions and supporting the transition to a low-carboncement industry. These measures include boosting energy efficiency, promoting alternative fuels, developing low-carbon cementtechnologies, implementing carbon metering, advancing carbon capture and purication technologies, and leveraging carbon dioxideutilization. In 2024, the company reduced emissions by 1,495,368.14 tons of CO2 equivalent through redesigning production processes,upgrading equipment, improving processes and replacing fuels.

factories withcertied environmentalmanagement systems

factories withcertied occupationalhealth and safetymanagement systems

The certication coveragerate of all operatingsubsidiaries100%

In 2024,

In terms of carbon emissions monitoring, the Company actively participates in the Ministry of Ecology and Environment’s pilot programfor “online carbon emissions monitoring.” By the end of 2024, six of our subsidiaries had successfully installed and commissionedthe continuous emission monitoring systems (CEMS) on seven clinker lines, now regularly submitting data. We have enhanced ourmonitoring accuracy through multi-technology solutions, ensuring that the uncertainty in carbon emissions measurements remainsbelow 3%. The related technological achievements have earned recognition from the National Institute of Metrology of China, marking asignicant leap for the cement industry from broad-scale accounting to precise measurement in carbon monitoring.Beyond that, the Company is committed to building a carbon emissions management platform. For example, Huaikan South hasrealized intelligent centralized control of emissions data. The Company engages a third-party organization to check its greenhouse gasemissions data every year, making sure the data is accurate and in line with regulations. At the same time, the Company also organizesinternal audits and support to improve its carbon data management capabilities.Carbon trading management

Environmental awareness enhancement

To proactively address the challenges posed by the national carbon trading market, the Company has initiated preparations for inclusionin the carbon trading market and engaged in research on carbon trading policies for the cement industry. These e?orts signicantlyboost the Company’s carbon asset management capabilities. The Company has also organized 204 key business persons from 25subsidiaries to participate in a carbon trading simulation jointly run by the China Building Materials Federation and the Hubei CarbonEmission Exchange. This simulation provides us with valuable experience in carbon market trading. Meanwhile, to enhance thecapabilities of professional technical personnel and those involved in carbon emissions accounting and monitoring, the Company hasconducted training sessions on new guidelines for carbon emissions accounting and verication, with a total of 751 participants.Furthermore, to standardize carbon asset management, the Company has developed a series of internal management systems,including the “Measures for Carbon Asset Management (Trial)”, the “Measures for Carbon Emissions Data Management (Trial)”, the“Rules for Carbon Emissions Trading (Trial)”, and the “Measures for the Development and Management of Greenhouse Gas EmissionReduction Projects (Trial)”. These systems form the basis of a comprehensive dual-carbon framework that covers carbon emissions,data management, trading, and emission reduction projects, providing a solid foundation for the Company to steadily advance carbonmarket transactions and carbon asset management.This year, Tianshan Material has been actively promoting environmental management communication and training across all levels ofthe Company. These training sessions comprehensively enhance the environmental awareness and green development capabilitiesof all our employees, thereby supporting the Company’s sustainable development. The Company has organized multi-level andcomprehensive training and communication activities that cover key areas such as environmental management, water efficiencymanagement, waste reduction, and energy e?ciency management.Four training courses for online monitoring for environmental protection were held, with 220 participants in total. The trainingcovered both theoretical knowledge and practical skills in environmental monitoring, significantly boosting capabilities inenvironmental data management and online monitoring.Leveraging the General Manager Special Training Camp, the Company conducted a special training session titled “TianshanMaterial’s Journey to Dual Carbon Excellence” for middle and senior management as well as general managers, with 215participants in total. The training e?ectively enhanced the management’s understanding and response capabilities regardingdual carbon policies.Multiple online and o?ine sessions were organized around the Company’s carbon management system and carbon emissionsdata management system. These sessions helped employees gain a deep understanding of carbon management requirementsand strengthened their awareness of compliance.In addition, on occasions like National Low-carbon Day, the Company organized a range of activities, such as special lectures, low-carbon initiative signature campaigns, and environmental photography contests. These activities integrated education with fun, boostingemployees’ sense of participation and environmental responsibility.

Training on online monitoring for environmental protection

Training on dual carbon strategy

Carbon related management system communication and training

2024 Environmental, Social and Governance ReportLeading the New Chapter of Green Development

In addition, the Company has installed aerospace metal reective lm on the top of the o?ce building, e?ectively reducing solarheat gain and air conditioning energy consumption, and enhancing indoor comfort. The building also features energy-e?cientglass and high-performance thermal insulation materials to optimize thermal insulation, reduce heating and cooling loads, andfurther decrease energy consumption.

In terms of green operations, the Company actively encourages all employees to practice energy-saving and consumption-reducing concept:

Tianshan Material has always been dedicated to green o?ce practices and sustainable operations. The Company has integratedthe principles of energy conservation and emission reduction into its day-to-day management and is committed to creatinga resource-efficient and environmentally friendly workplace. Through institutional improvement, practical management andenhanced energy e?ciency, the Company has signicantly improved its green o?ce management.To standardize green o?ce practices, the Company has revised and implemented the “Management Measures for AdministrationA?airs”, which clearly outline energy-saving requirements in areas such as meeting management, o?ce environment setup, ando?ce supplies consumption:

Promotion of Green Operation

●Promote remote videoor teleconference tocut down on travel andresource use;

●

Launch “5SStandardizedManagement” topromote the reuse ofdiscarded documentsand paper recycling;

●Enforce a strict principleof conservation in theconsumption of o?cesupplies, pushing forreuse and minimizingwaste.

Turn o? lights and equipment when getting o? work or leaving o?ces for a long time toreduce standby energy consumption;

Promote double-sided and black-and-white printing to reduce paper use, and encouragedigital workows;

Designate parking areas for bicycles and electric bicycles, install charging stations fornew energy vehicles, and encourage employees to practice low-carbon travel to reducetransportation-related carbon emissions;

Post “tip” signs of saving food, water, and electricity; use energy-e?cient stoves, andpromote reusable tableware to cut down on single-use items.

Electricityconservation

Green

commuting

Paperless

o?ce

Canteen energy

conservationmanagement

The Company attaches importance to energy consumption management of production lines and explores the potential of energysaving and carbon emission reduction. We have optimized the kiln system, renovated the grate cooler, and improved the energy-saving technology of fans, continuously improving the energy e?ciency level of each energy-consuming link. The Company alsoconducts regular internal energy management reviews to systematically assess energy e?ciency, identify potential savings, andoptimize its energy management system, thereby enhancing the energy management performance. In 2024, the Company hasreduced electricity consumption by 520 thousand MWh, achieving savings of 122 thousand tonnes of standard coal, and 320thousand tonnes of CO

emissions. In the year, the comprehensive energy consumption per unit of clinker products reached

99.43 kgce/t, down 6.94 kgce/t compared with last year, and the comprehensive electricity consumption per unit of clinker

products reached 48.64 kWh, down 1.38 kWh.

Energy E?ciency Improvement

Luopu Tianshan actively embraces national policies on energy conservation and emission reduction. The companyinitiated a retrot project for energy-e?cient fans and permanent magnet motors in its kiln and mills, with the goal ofimproving energy e?ciency and reducing carbon emissions.The project targeted the high-temperature fans, circulating fans, and tail fans in the kiln and mills. The original operationalefficiency for the equipment ranged from 63.72% to 74.46%, resulting in relatively high energy consumption. Thecompany introduced energy-efficient fans that meet the Minimum Allowable Values of Energy Efficiency and EnergyE?ciency Grades for Fan (GB19761-2020). After the retrot, the operational e?ciency for the fan increased to over 80%,e?ectively reducing energy consumption. Additionally, the company replaced the existing motors with permanent magnetenergy-saving motors, which feature high mechanical e?ciency and excellent power factor, signicantly reducing motoroperational losses and improving the overall system e?ciency.Following the implementation of the project, the electricity consumption per unit of clinker was reduced by 3.37 kWh/t, andthe electricity consumption per unit of cement produced was reduced by 0.11 kWh/t. This not only signicantly loweredenergy costs but also enhanced production e?ciency.

Retrots of energy-e?cient fans and permanent magnet motorsCase

2024 Environmental, Social and Governance ReportLeading the New Chapter of Green Development

In early 2024, the 200 thousand tonnes per year of carbon capture by oxyfuel combustion pilot project of CUCC Qingzhou,a subsidiary of CUCC, formally commenced production. This project marks the largest carbon capture demonstration line inthe global cement industry. The company continuously explores cost-e?ective carbon capture and purication technologies,strengthening cross-industry collaborations, and advancing the industrialization of carbon capture, utilization, and storage(CCUS). This year, Tianshan Material achieved signicant milestones in carbon capture projects. The Company signed acooperation agreement with Shengli Oileld to enhance crude oil recovery and facilitate carbon storage. The partnershipsupports Shengli Oileld’s target of achieving an annual injection capacity of 3 million tonnes by the end of the 15th Five-Year Plan, promoting the green development of the CCUS industrial chain in Shandong Province.Additionally, CUCC Qingzhou entered into a strategic cooperation agreement with Qingzhou Nanxiaowang IntegratedModern Agricultural Development Co., Ltd. (“Integrated Modern Agriculture”) to explore the e?cient utilization of carbondioxide in modern agriculture and support the green transformation of the agriculture. Carbon capture and purificationtechnology is widely used in carbonated beverages, cold chain logistics and food preservation, expanding new scenarios ofCO

resource utilization. The captured carbon dioxide is further puried and applied to the production of food-grade liquidcarbon dioxide and dry ice.CUCC Qingzhou was awarded the WCA Climate Action Award by the World Cement Association (WCA) at the WCA 2024Annual General Meeting, which fully demonstrated the technical innovation strength of CUCC Qingzhou in promoting thegreen transformation of the cement industry, energy saving and carbon reduction, as well as its positive contribution toglobal environmental protection.

The carbon capture project boosts crude oil recovery for Shengli Oileld and partners with IntegratedModern AgricultureCase

CUCC Qingzhou’s 200 thousand tonnes per year of carbon capture by oxyfuel combustion pilot project

To drive long-term sustainable development, Tianshan Material is actively advancing the transition to clean energy and iscommitted to reducing greenhouse gas emissions. The Company continues to optimize its energy mix and reduce carbonemission intensity by implementing advanced emission treatment technology upgrades and increasing the proportion ofrenewable energy used.

The Company is actively engaged in carbon capture to minimize greenhouse gas emissions. By storing captured CO

orconverting it into useful products such as building materials, CO

has been reused as a resource.

Clean Energy Utilization

Upgrading of carbon capture technologies

Promotion of low-carbon transport vehiclesThe Company promotes green and low-carbon transport, and strives to minimize non-renewable energy consumption andreduce environmental pollution.

Furthermore, the Company actively partners with major equipment manufacturers to drive the extensive adoption of new energyvehicles. In 2024, the total number of new energy vehicles used by outsourced units was approximately 600.

Huadong Material actively embraces the national “Dual Carbon” strategy and has initiated a project at Wuxi HuadongMaterials Co., Ltd., to replace fuel-powered vehicles with all-electric concrete mixer trucks. The company purchased 30all-electric concrete mixer trucks, becoming one of the rst companies in Wuxi to widely promote the use of new energytransport vehicles. The project supports the development of a new commercial concrete transportation system that isenergy-saving, low-carbon, and resource-e?cient.By switching to all-electric mixer trucks, the project replaces traditional fossil fuels with clean energy, e?ectively reducingfuel consumption and lowering carbon emissions and greenhouse gas emission intensity. By doing so, the company hasexplored a low-carbon development path tailored to the industry’s needs. Beyond reducing carbon emissions, all-electricmixer trucks o?er zero exhaust emissions and low-noise operation, signicantly improving urban air quality and reducingnoise pollution. In addition, these trucks decrease hazardous waste from traditional fuel-powered vehicles, promoting atransition of the company from a resource-saving to an environmentally friendly model. Consequently, the project supportsharmonious coexistence and green development between the company and the city.Moreover, after the project’s implementation, concrete transportation management has become smarter and more digital.The trucks are equipped with advanced in-vehicle monitoring systems and smart dispatch platforms, which enhancetransportation safety while optimizing dispatch e?ciency and reducing operating costs.

The use of all-electric concrete mixer trucks boostedCase

All-electric concrete mixer trucks at Wuxi Huadong Materials Co., Ltd.

2024 Environmental, Social and Governance ReportLeading the New Chapter of Green Development

To align with the national green and low-carbon development strategy, Tianshan Material has been actively advancingdistributed photovoltaic power generation projects. In 2024, six cement plants of Tianshan Material in the Centraland South China region launched a photovoltaic project with a total capacity of 19 MW. The project adopts a “self-generation and self-use, and surplus electricity connected to the grid” model and has fully entered the constructionphase.The project, covering six cement plants of Shaoyang South, Shaofeng South, Anren South, and Guzhang South,leverages the rooftops of plant buildings to install photovoltaic systems. Once put into operation, these systemswill signicantly cut the cost of purchased electricity, promote clean and low-carbon production, and reduce energyconsumption and carbon emissions, thereby boosting the core competitiveness of the Company’s cement business.Designed for a 25-year operational lifespan, the project is expected to generate an average of 18.3566 millionkWh annually. Compared to thermal power of the same capacity, it will save 5,519.83 tonnes of standard coal andreduce CO

emissions by approximately 15,125.84 tonnes each year. Through the construction of these photovoltaicprojects, Tianshan Material has not only met its energy-saving and emission reduction targets but also spurred thegreen transformation of the cement industry, laying a solid foundation for sustainable development.

Tianshan Material’s low-carbon transition empowered by photovoltaic projectsCase

The Company continues to expand the use of renewable energies, and aims to reduce dependence on traditional energies byconstructing solar panels and wind turbines in the Company’s production areas, in an attempt to minimize the adverse impact onthe environment. By the end of 2024, the company had commissioned 43 PV projects with an installed capacity of 166.16 MW.

Renewable energy application

Hunan Jiuhua has built distributed photovoltaic power stations on the rooftops of the mixing building, raw materialstacking shed and sand washing production line plant, with an area of about 22 thousand m

and an installedcapacity of 2.5 MW, and the estimated average annual power generation capacity is 2.25 million kWh. In 2024,the Company consumed a total of 100.26 kWh of self-generated electricity, resulting in cost savings of RMB 295.4thousand.

2.5 MW photovoltaic project at Hunan JiuhuaCase

Photovoltaic project at Hunan Jiuhua

Ruichang Corridor Transportation Co., Ltd., by fully utilizing the resources within the plant, has built a distributedphotovoltaic power station on the rooftop and two facades of the landscape corridor for ore transportation. Thestation has applied a total of 4,302 pieces of CdTe power generation glass to lay more than 7,000 square metersof photovoltaic power generation equipment. The total installed capacity of the project is about 685 kWp. In 2024,the cumulative power generation of the project was 369 thousand kWh, saving 121.01 tonnes of standard coal andreducing 367.81 tonnes of carbon emissions.

Ruichang aggregate transport corridor photovoltaic projectCase

Ruichang aggregate transport corridor photovoltaic project

2024 Environmental, Social and Governance ReportLeading the New Chapter of Green Development

Clinkerproduction

Concreteproduction

Aggregateproduction

Cement

production

●Approximately 60% of CO

from clinker production is generated from the raw material(i.e., limestone), while alternative raw materials can signicantly reduce CO

emissionsfrom carbonate decomposition. The Company uses alternative raw materials such aswaste residue after high-temperature calcination and materials that clearly do not containcalcium carbonate and magnesium carbonate. The main types include calcium carbideslag, magnesium slag, paper making white mud, sulfuric acid slag, coal ash and red mud.In 2024, the Company consumed a total of 9,780 thousand tonnes of alternative rawmaterials, reducing carbon dioxide emissions by 2.38 million tonnes.

●The Company adopts mineral admixtures such as y ash and mineral powder, andoptimizes their proportions with additive trial blending to improve concrete performanceand reduce environmental pollution. In the year, the Company used 5,277.2 thousandtonnes of y ash and 4,624.9 thousand tonnes of mineral powder.

●We use low-grade limestone and waste stone for aggregate production to achieve 100%resource utilization.

●

The articial sand and rock our produced in the processing process of the aggregateproduction line are reutilized by the Company in the cement production line, which canlower the production cost and improve e?ciency.

Developing Circular Economy

Tianshan Material continues to promote the development of the circular economy and remains committed to minimizing thedependence on natural resources. The Company actively increases the proportion of alternative raw materials and fuels,and promotes the water recycling technology to boost resource e?ciency and mitigate the impact on the environment by theCompany’s production and operation, thereby supporting green and sustainable development.

Tianshan Material actively promotes the use of alternative raw materials and fuels in cement production. This initiative aims toreduce dependence on traditional resources and lower carbon emissions and environmental pollution.The Company has set clear circular economy management targets and plans. It is expected that the substitution rate of rawmaterials will reach 2.7% and 3% by 2025 and 2030 respectively.

We have researched and learnt about applicable alternative resources in the region where each subsidiary is located, such ascalcium industrial solid wastes including calcium carbide slag, steel slag, yellow phosphorus slag, y ash, coal slag, copper slag,magnesium slag, sulfuric acid slag and red mud, and gradually improve the substitution rate of raw materials. During the year,the Company conducted a series of initiatives for the comprehensive utilization of resources mainly by adopting alternative rawmaterials such as y ash, mineral powder and calcium carbide slag.

Use of Alternative Materials

Use of alternative raw materials

Midong Tianshan actively responds to national policies by using acetylene sludge to fully replace limestone in clinkerproduction. The company also utilizes y ash, copper slag, desulfurized gypsum and silicon powder from power plants,achieving circular economic development. This not only consumes industrial slag but also eases the environmentalpressure on surrounding enterprises in the park, facilitating the coordinated development of the ecological environment andland resources. Since its commissioning, the clinker production line has operated continuously throughout the year. Theproduction line has produced approximately 1.5 million tonnes of clinker, consumed 2.3 million tonnes of acetylene sludgeand 300 thousand tonnes of other slag annually, achieving a 100% utilization rate of industrial slag. As of December 2024,Midong Tianshan had consumed a total of 38 million tonnes of industrial slag, contributing to the protection of the ecologicalenvironment and energy conservation and emission reduction.While using alternative materials, Midong Tianshan has always prioritized quality. In 2024, the company obtainedcertifications for its quality, environment, energy, and occupational health and safety management systems from ChinaQuality Mark Certification Group. In December 2024, the company passed the re-assessment and acceptance of thesecond-level safety standardization and has repeatedly won the excellent award in the Grand Comparison of CementChemical Analysis hosted by the China National Center for Quality Inspection and Testing of Cement.

Replacement of limestone with acetylene sludge in clinker production for energy conservation andemission reductionCase

Midong Tianshan’s acetylene sludge production line

Excellent award in the 19th NationalGrand Comparison of Cement ChemicalAnalysis of “Tianbao Huarui Cup”

Hanshan South has been deeply exploring raw material substitute technology. The company has innovatively usedmagnesium slag, a solid, carbon-free, high-calcium by-product from local metal magnesium production enterprises, as analternative raw material in the clinker production process. This move fully taps into the carbon reduction potential of solidwaste resource utilization.During clinker production, Hanshan South incorporates 5% to 8% magnesium slag into the raw meal, partially replacinglimestone and siliceous materials. The application of magnesium slag not only e?ectively reduces the carbonate contentin the raw meal but also plays a role in inducing crystallization, lowering nucleation energy, and promoting the formation ofsilicate mineral crystals during the calcination process. Additionally, the CaF

in the raw meal acts as a mineralizer, furtherpromoting the formation of C

S and enhancing the burnability of the raw meal. This technological improvement signicantlyreduces the thermal energy required for carbonate decomposition, achieving energy saving and consumption reduction.Without a?ecting the clinker quality, the physical coal consumption is reduced by 4.98 kg/t, and the comprehensive electricityconsumption is reduced by 1.64 kWh/t, achieving remarkable energy-saving results.

Partial replacement of limestone with magnesium slag to facilitate energy saving and carbon reductionin clinker productionCase

Hanshan South’s production line

2024 Environmental, Social and Governance ReportLeading the New Chapter of Green Development

The Company has developed the “Implementation Plan for Reaching Carbon Peaking and Carbon Neutrality”, proposing topromote the carbon reduction through introducing alternative fuels and other methods.The alternative fuels used by the Company comprise solid, liquid and gaseous alternative fuels. Solid alternative fuels includerefuse-derived fuel (RDF)

, biomass, plastic waste, waste tires, and petroleum coke. Liquid alternative fuels include mineral oil,waste hydraulic oil and others. Gaseous alternative fuels include coke-oven gas, oil renery gas, pyrolysis gas, and hydrogenenergy.The Company is dedicated to the research on regional alternative fuel resources and the R&D of alternative fuel technology andequipment in collaboration with an intra-group company. Meanwhile, the Company is developing projects for the collection andstorage of RDF, biomass fuels, and other alternative fuel resources, with a focus on promoting the construction of alternativefuel projects in Shandong, Henan, Anhui, Jiangsu, Zhejiang, Sichuan, Guizhou, Yunnan, and other regions. Furthermore, weconduct research on the application of hydrogen fuel in the cement industry, and construct demonstration end-user engineeringprojects with large-scale utilization of alternative fuels in due course. By the end of 2024, there were 89 alternative fuel projectscompleted and put into operation with excellent progress in carbon reduction.

Use of alternative fuels

RDF (refuse-derived fuel) is the combustible portion extracted from urban solid wastes and is applied for energy recovery after processing.

CUCC Tengzhou has successfully carried out an alternative fuel application project based on its 4,600 t/d cementclinker production line, facilitating energy conservation, carbon reduction, and green transition in cement production.It has invested in building a 240 t/d production line which uses alternative fuel. The project employs advancedalternative fuel metering technology to conduct sophisticated preprocessing of various raw alternative fuels and solidwastes to ensure that the processed fuel products meet the high-temperature calcination requirements of thermalequipment in the kiln system while maintaining combustion e?ciency and caloric value stability. Supported by thehigh-temperature calcination process of decomposing furnace, the alternative fuels completely combust, enhancingenergy e?ciency while e?ectively reducing conventional fossil fuel consumption.The project demonstrates remarkable outcomes, achieving annual co-processing of 48 thousand tonnes ofalternative fuels. Approximately 26.4 thousand tonnes of standard coal equivalent are replaced, and CO

emissionsare reduced by about 68.8 thousand tonnes per year. This approach not only signicantly lowers corporate energycosts and dependence on traditional fossil fuels, but also substantially improves the resource utilization rate of solidwastes. The project has established a role model for large-scale, high-proportion co-processing of alternative fuelsfor cement industry in Shandong Province.

Utilization of alternative fuels to facilitate energy saving and carbon reduction in clinker production linesCase

Alternative fuel production line

In 2024, our key performance indicators of alternative materials usage are as follows:

Alternative materials do not include gypsum, volcanic ash and other natural raw materials.

The Company has always placed emphasis on efficient utilization and sustainable management of water resources. Wetherefore take active and constant measures to promote water resources recycling and improve water use e?ciency to realizegreen and low-carbon transition. In the year, we achieved the following notable results in improving water extraction compliance,increasing water reuse rate and enhancing comprehensive utilization of wastewater.The Company is committed to water resources recycling and the continuous improvement of water management system. In2024, the water reuse rate in factories recorded 92.18%, exceeding the target of annual water reuse rate ≥90%. In addition,the commercial concrete enterprises of the Company put more efforts in the construction of water-saving and drainagefacilities within their factories, achieving 100% comprehensive utilization of treated sewage, thereby substantially decreasingthe consumption of fresh water. In 2025, following the management goal of “maintaining the water reuse rate ≥90% in thefactories and decreasing water consumption per unit of product by 0.1%”, the Company will continue to strengthen water-savingmanagement and make more progress in water conservation and consumption reduction.For more e?cient recycling of water resources, the Company has carried out a series of measures, including the optimization ofproduction process, construction of a recirculation system, and sewage treatment and reuse.In terms of production process, the Company has adopted an advanced dry-process rotary kiln cement production process,which signicantly reduces water consumption in raw material drying and grinding. We have also updated the clinker calcinationsystem to enhance thermal e?ciency, leading to a reduction in the water demand of the cooling system and a decrease in waterconsumption.In terms of recirculation system construction, the Company has scaled up input in building a highly e?cient circulating coolingwater system, which realizes closed-circuit recycling of production water except evaporation and natural loss, greatly reducingthe need for fresh water supply.In terms of sewage treatment and resource utilization, the Company has been upgrading the wastewater treatment station andimproving the sewage treatment capacity, with wastewater being safely discharged or reused after meeting the standard throughtreatment. In addition, the Company actively explores new paths of wastewater reuse. For example, wastewater such as thecirculating water of the waste heat power system and reverse osmosis concentrated water are recycled to the reservoir, andthen applied for non-productive purposes after processed, such as greening of the plant and dust suppression in mines. Suchapproach realizes wastewater utilization, and further reduces the dependence on natural water bodies.

Recycling of Water Resources

Key Performance IndicatorUnitData in 2024Percentage of alternative fuels to replace fossil fuels%4.00

Percentage of clinker in cement%73.59Percentage of alternative raw materials in cement

%2.67Percentage of alternative raw materials in concrete

%36.3

2024 Environmental, Social and Governance ReportLeading the New Chapter of Green Development

In recent years, we have made remarkable progress in water conservation and recycling. Our implementation of systematicwater conservation management and technological innovation has cut down water consumption per unit of product andimproved water reuse rate, while achieving e?ective control of the total wastewater discharged.

Huaikan South has demonstrated bold innovation in the eld of industrial wastewater recycling and established anintegrated and smart water use management model that e?ectively drives its green and low-carbon transition.It has introduced an advanced distributed control system (DCS). This system provides precise ow data for waterbalance diagram based on real-time monitoring of ow rates, water pressure, and operating status across water-consuming equipment, reinforcing online monitoring and management capabilities for both water and steamresources in all respects. The comprehensive treatment of circulating water has not only improved water quality butalso reduced circulating water consumption, markedly decreasing the reliance on freshwater resources.Furthermore, Huaikan South has proactively expanded its approach to water resource management by deploying arainwater collection system. This system centrally collects and treats precipitation across the facility complex, and thetreated rainwater is extensively utilized for oor cleaning and landscape irrigation, realizing e?cient rainwater reuse.This year, Huaikan South raised water reuse rate up to 98.7% by reduction of water consumption at source and widerutilization of wastewater. Its smart water use management model is listed in the “2024 Typical Cases List of IndustrialWastewater Recycling” published by the Ministry of Industry and Information Technology.

Apply smart water control model in an innovative manner to facilitate e?cient management ofwastewater recyclingCase

To reduce the carbon emissions of cement products, the Company has made the following e?orts:

Carbon reduction of concrete and cement products is a key step in the green and low-carbon development of the industrialchain. The Company strengthens quality control of raw materials and management of the mixture proportion technology,improves the quality of aggregates and cement, and reduces the use of concrete cementitious materials. E?orts are made toexplore the carbonization and carbon sequestration of concrete and cement products to facilitate the green and low-carbondevelopment of the industrial chain.In recent years, the Company continues to promote the R&D of special cement

and has achieved noticeable results. Specialcement is an environmentally friendly product which possesses carbon capture potential and can effectively absorb carbondioxide in the process of hardening. In addition, this stable and endurable product can reduce the consumption of buildingmaterials and the energy consumption and CO

emission in the production process.In the year, 2,513 thousand tons of special cement and 15,061 thousand tons of single-purpose cement

were sold, totaling17,574 thousand tons, a year-on-year increase of 19.76%.

Diverse Products

Innovate Low-carbon ProductsTo actively respond to the challenges of climate change and sustainable development, the Company continuously develops andpromotes green and low-carbon products and services that meet market demands in a bid to provide customers with sustainableand innovative solutions.

Special cement refers to cement species that have certain special performance or functions over general purpose cement, and are suitable for specicpurposes, or can play special functions and assign special functions to the building.

Single-purpose cement refers to those with special treatment or addition of special materials in terms of raw material ratio and production process to meetspecic engineering needs and solve specic problems.

Reduce carbon emission intensity during clinker production

Cut down clinker usage

Save power consumption of grinding

Optimize clinker indicators

Reduce carbon emission intensity during clinker production by optimizing theproduction process and energy structure;

Cut down clinker usage by accelerating the R&D and promotion of new low-calciumclinker, raising its proportion in the product mix, and lessening the overall carbon footprint;

Save power consumption of grinding by deepening the application of graded grindingtechnology and developing new mixed materials with high activity;

Optimize clinker indicators by the lime saturation factor (LSF) of general silicate cementclinker and balancing carbon emission intensity while ensuring product performance.

2024 Environmental, Social and Governance ReportLeading the New Chapter of Green Development

In the year, Aksu Tianshan passed the on-site inspection regarding production facilities, technological process, qualitymanagement and environmental protection control by the certification bodies. Its products, the “Tianshan” brand general-purpose cement, 42.5 Portland cement and 52.5 Portland cement, were all awarded the China Low-carbon Product Certication.By the end of 2024, a total of 131 subsidiaries of the Company had obtained the China Green Building Materials ProductCertication.

Jiahua Special Cement Co., Ltd. has developed low-heat Portland cement resistant to high-geothermal environment to addressissues such as cracking and poor durability of tunnel secondary lining concrete in high-geothermal environments. Leveraging its self-developed “ion doping-crystal structure stabilization and activation” ne clinker technology, Jiahua Special Cement has successfullyresolved challenges including premature liquid phase formation and low viscosity during the calcination process of high-magnesium,high-iron, low-alumina clinker. This innovation has yielded a cement product dominated by dicalcium silicate (C

S content≥40%), featuring low heat generation, micro-expansion properties, high strength, and exceptional adaptability to high-geothermalenvironments, meeting engineering requirements under complex geological conditions.Compared with ordinary Portland cement, this product reduces raw limestone consumption by approximately 10%, lowers calcinationtemperature by about 100°C, and decreases CO

emissions by roughly 10%, signicantly enhancing resource utilization e?ciencyand contributing to green, low-carbon development. In practical engineering application, the cement demonstrates superior crackresistance and durability. It has been successfully applied to major projects including railway construction, providing robust technicalsupport for advancing high-standard, premium-quality infrastructure at a high starting point.

Develop low-heat Portland cement resistant to high-geothermal environment to facilitate theconstruction of high-standard projectsCase

Subsidiaries of the Company obtained the “Certicate for China Low-carbon Product Certication”

Subsidiaries of the Company obtained the “Certicate for China Green Building Materials Product Certication”

The Company gives priority to the high-end oriented, intelligence oriented and environmental protection oriented transitionof production and service. We continue to optimize business layout and resource allocation in production, and facilitates thegreen and intelligent development of the production system. The Company establishes a joint working group for intelligentconstruction, and compiles and perfects the “Intelligent Factory Construction Guide”, “Intelligent Factory Evaluation Standard”,“Digital Mine Construction Guide”, “Pilot Project of Intelligent Factory and General Plan for Information-based Production” andother guiding documents, which lay a solid foundation for the implementation of intelligent and green projects to ensure theire?cient implementation, standardized operation and promotion.In 2024, we set an annual management goal of “comprehensive utilization rate of mine resources ≥85%”, and accomplished thetarget by recording 100%.

Construction of Green Factories

Sichuan Guangyuan Commercial Concrete pursues the idea of green and low-carbon development and maintains sustained e?ortsin the R&D and production of green products. In terms of product innovation, it successfully developed C30 permeable concretebased on technological innovation, which demonstrates excellent water permeability and environmental-friendly performance,and has achieved commercialization. For production process, Sichuan Guangyuan Commercial Concrete has improved enclosedmaterial storage yards, and installed spraying dust suppression systems and pulse dust collectors, e?ectively reducing particulateemissions. A newly constructed zero-discharge sand and gravel separator enables complete recycling and zero discharge of wastematerials and wastewater, further enhancing resource recycling e?ciency.This year, it obtained the 2-star certication of China Green Building Materials Product Certication for four product categories, i.e.,ordinary concrete, self-compacting concrete, fiber-reinforced concrete, and high-strength concrete. Centering on green buildingmaterials, it strives to drive the green transition of the construction industry and embark on the path of high-quality and sustainabledevelopment.

Green building materials empower low-carbon development - Concrete products of Sichuan GuangyuanCommercial Concrete obtained “Green Building Materials Product Certication”Case

Hefei South Cement Co., Ltd. has incorporated cutting-edge building-integrated photovoltaic (BIPV) technology, utilizing innovativecadmium telluride (CdTe) photovoltaic glass into its plant energy efficiency upgrades. This technology converts conventionalinsulating glass into a conductive, power-generating material through a ve-layer semiconductor lm structure deposited on glasssubstrates. The CdTe glass features adjustable light transmittance, customizable color patterns, and recyclability, serving as amultifunctional green building material that integrates energy e?ciency, renewable power generation, and aesthetic design.The project will install 5,626 m? of CdTe photovoltaic glass with a total capacity of 0.58 MW, expected to generate 356.3 thousandkWh of clean electricity annually. This renewable energy supply will o?set factory power consumption and reduce operational energyconsumption. Additionally, it is estimated to cut annual CO

emissions by 267.2 tonnes and conserve 100.1 tonnes of standard coalequivalent, markedly improving energy utilization e?ciency.

Building-integrated photovoltaics promotes energy saving and carbon reduction - Hefei South CementCo., Ltd. carries out plant green reconstruction

Intelligent upgrading and clean energy enable green manufacturing - CUCC Beichuan won thehonorary title of national green factory

Case

CaseCUCC Beichuan has emerged as a trailblazer in sustainable manufacturing, advancingits “eco-friendly and resource-conserving” vision through intelligent upgrades andclean energy integration. It has pioneered an integrated co-processing system for solidwaste and alternative fuels, leveraging breakthroughs in technological innovation toenhance resource e?ciency and minimize reliance on conventional fuels. The distributedphotovoltaic power generation project is also launched to diversify its energy mix withrenewables and achieve carbon reduction at the source. Upon full implementation, thesemeasures are expected to drive signicant annual reduction in carbon emissions, boostenergy e?ciency, and accelerate its transition to low-carbon operations. Recognized forits exemplary practices of green manufacturing, CUCC Beichuan was named to the “2024Green Manufacturing List” and certied as a National Green Factory. Its achievementshave set a new industry benchmark for eco-conscious cement production and propelledthe industry toward a carbon-neutral future.

2024 Environmental, Social and Governance ReportLeading the New Chapter of Green Development

Biodiversity ProtectionThe loss of biodiversity has been recognized as one of the greatest global risks at present, and biodiversity protection isessential for human well-being and the health of our planet. As the largest cement company in the world, the Company, pursuingthe concept of green development, takes active actions to preserve the ecological environment and avoid or minimize thepollution and damage to the ecological conditions caused by our production and operation. We aim to make contribution to theharmonious coexistence between man and nature, and the building of a beautiful ChinaAccording to UN Sustainable Development Goals (UNSDGs), the “Kunming-Montreal Global Biodiversity Framework” adoptedat the 15th meeting of the Conference of the Parties to the “Convention on Biological Diversity”, the “Opinion on FurtherStrengthening Biodiversity Conservation” issued by the General Office of the Central Committee of the Communist Partyof China and the General Office of the State Council, and related conventions and opinions on biodiversity protection, theCompany has issued the “Policy Statement on Biodiversity”, which applies to all operating regions, suppliers, associates, andother business partners. The Company is committed to protecting biodiversity, and incorporates biodiversity as a key issue in ourESG governance system, which is supervised by the Board’s ESG Committee, and shall be implemented by the ESG WorkingGroup and relevant functional departments.

The Company actively carries out biodiversity risk assessments covering our operations, surrounding areas, and upstreamand downstream activities to avoid adverse e?ects on biodiversity. The Company continuously improves the prevention andcontrol system of biodiversity risk management and assessment, and applies assessment standards and framework related tobiodiversity to identify, analyze and evaluate the potential impact on biodiversity and natural capital by production, operation,procurement and acquisition, and to avoid operation in areas of world or national biodiversity importance.Guide by the red line policies for ecological and environmental protection, the Company has strengthened its managementphilosophy regarding ecological conservation and conducted rigorous assessments for factory site selection and layoutplanning. Where potential ecological impacts are identied within the scope of the ecological conservation red line, we will ceaseoperations, relocate projects, or decommission facilities to ensure the integrity of ecosystems. This year, the Company did notinitiate new production activities beyond red line, or have any operation ceased or facility decommissioned.For operations at terrestrial or marine sites adjacent to key ecological functional zones, natural reserve, and ecologicallysensitive and vulnerable regions, the Company has implemented a series of ecological protection and restoration measures.These include optimizing plant layout, minimizing disturbances to natural habitats, executing vegetation restoration projects, andcarrying out soil and water conservation practices to mitigate impact on surrounding ecosystems. We conduct regular monitoringof ecological conditions around operational sites to ensure preservation of original ecological functions. In 2024, the Companyeffectively lessened ecological pressures on sensitive areas, maintained stability in surrounding ecosystems, preservedecological functions in relevant regions without signicant degradation, and sustained favorable environmental quality.

Biodiversity Risk Assessment

We value the management of risks and opportunities arising from ecological and environmental changes, bend ourselvesto minimizing the damage caused by our production and operation to the environment, and produce cement products in anecologically friendly manner. Abiding by the principle of “concurrent mining and reclamation”, the Company takes practicalactions to protect biodiversity.

Biodiversity Protection Actions

Promote the integration of “intelligent industry” and “ecological beauty” to build a national green minebenchmarkCase

Huanghe Tongli actively practices the idea of ecological civilization, and promotes the construction of green minesunder the integration of intelligent industry” and “ecological beauty”:

Green mining and resource utilization: Its advanced production lines enable green mining and e?cient processingof ores, to fully utilize waste rock. The industrial wastes are reused as reclamation material, thereby alleviating landshortage and achieving waste reduction and recycling.Ecological restoration and revegetation: Huanghe Tongli insists on ecological restoration throughout the lifecycle ofmines, and takes actions such as water diversion and construction of impounding reservoir, regreening more than400 thousand square meters of land. Around 300 thousand seedlings have been planted, with a high survival rate.Under its e?orts, a four-season evergreen garden mine has been built up. In 2024, the orchard saw a good harvest.Digitally smart mine: Huanghe Tongli drives digital and intelligent transition, and has installed intelligent car-washing,surveillance and environmental protection monitoring systems to achieve an all-round and real-time monitoring. Arange of technologies are integrated to promote the construction of 5G smart mine with higher level of managemente?ciency and resource utilization.

Conservation of natural habitats and wildlife

During our operations at factories and mining sites, we prioritize the protection of natural habitats, wetlands, forests, wildlifecorridors, and agricultural land, and minimize ecological impact to the greatest extent possible. To ensure habitat integrity, weadopt mining techniques and transportation plans according to local conditions to signicantly weaken disturbance to regionalecosystem. In 2024, we restored native vegetation of certain zones in plenty of projects, reinforcing ecological quality, andstrengthening both biodiversity and ecosystem resilience. The habitat conditions for numerous indigenous species were morelivable and ecological connectivity were smoother across regions.

2024 Environmental, Social and Governance ReportLeading the New Chapter of Green Development

Sichuan Golden Cement's ecological restoration and reclamation of limestone mine acceleratetransition towards green mineCase

Restoration project of limestone mine ecology

The Lujiaoling Mine is located in Fancun Town, Yiyang County, and covers an area of 1.8989 square kilometers.Since the beginning of the mine's development, Huanghe Tongli had adhered to an eco-priority development path.Upholding the principle of “reclamation during excavation, greening during construction and beautification duringproduction for a green mine”, the company made every e?ort to minimize the impact on the natural environment.By establishing a sand and gravel aggregate production line and a commercial concrete production line capable ofutilizing 100% of the mine waste rock, Huanghe Tongli has achieved green mining and processing of ore at LujiaolingMine. To cope with the limited land for reclamation and signicant challenges associated with it, the company usedindustrial waste such as lter cake separated from sand washing as materials for articial slope reconstruction. Thissolved the land shortage issue and achieved waste reduction, reuse and decontamination to a large extent.Through restoration e?orts, the company regreened a total area of over 400 thousand square meters at LujiaolingMine. Additionally, the company diverted water from the Luohe River, built reservoirs and applied fertilizers tomaintain the eco-environment of the mine. These greater e?orts successfully consolidated the company’s greeningachievements and ensured a survival rate of over 99% for the saplings planted there.

Bearing in mind the concept that “mountains, rivers, forests, farmlands, lakes, and grasslands are a life community”,Dazhou Lisen, a subsidiary of Southwest Cement, has been actively exploring an “ecological mine restoration+”model and practicing remediation during mining under the rule of “ensuring evergreen mountains”. In this regard, thecompany has planted herbaceous plants and owers that regreen in di?erent seasons, and built a unique landscapeviewing pavilion, successfully transferring “the abandoned mine to lucid waters and lush mountains and to invaluableassets”. To date, more than 6.3 thousand trees, 36 thousand bamboo plants, and 1.2 thousand owers have beenplanted, about 1.5 thousand kilograms of grass seeds have been sown. An ecological area of about 78 mu (around52 thousand square meters) has been restored and every greenable place in the mine has been greened.In March 2024, Dazhou Lisen actively responded to CNBM’s green planting campaign – “Building a Green Homeland:

Building Materials Empowering Carbon Peaking and Neutrality” by planting more than 4.8 thousand holly trees alongthe mine roads, continuously working on the mine’s green construction, and highlighting its high-quality developmentwith green concept. In April 2024, Dazhou Lisen Mine was awarded as “Green Mine” by Sichuan Province.

Huanghe Tongli’s e?orts for a green mine – the integration of “intelligent industry” and “ecological beauty”

Dazhou Lisen’s e?orts for a “green, safe, intelligent and e?cient” mining system

Case

Case

Under the global consensus on ecological civilization and environmental protection, the ecological restoration ofmines has become a crucial indicator for evaluating regional and enterprises capabilities of advancing sustainabledevelopment. Sichuan Golden Cement actively responds to the “Technical Specications for Ecological Restorationof Mines” issued by the Ministry of Natural Resources. Adhering to the philosophy of “giving priority to ecologicalprotection and maintaining green development”, it fully implements ecological restoration at the Wulongdong CementLimestone Coal Mine, contributing to green mine transition.Based on mining operations and climate patterns, Sichuan Golden Cement has scientifically formulated anecological restoration plan to conduct remediation strategies by phase and by region. Innovative application oflawn hydroseeding technology, combined with interlaced planting of shrubs and vines, has signicantly enhancedvegetation recovery. By the end of 2024, the comprehensive remediation and regreened area reached 17 hectareswith 100% greening coverage. Sichuan Golden Cement also places emphasis on organic integration of ecologyand landscape. The key projects including viewing terrace, pavilions, and central scenic areas are embellished bycolorful oral displays, rockery landscapes, and tranquil corridors, creating a “Beautiful Mine” image that elevatesecological and cultural value of the mining eld.The reclamation of Wulongdong Mine has achieved remarkable results. The substantially increased vegetationcoverage provides quality habitats for diverse species, thus establishing a stable ecosystem that e?ectively controlssoil erosion and mitigates potential water/soil contamination possibility from mining activities.

2024 Environmental, Social and Governance ReportLeading the New Chapter of Green Development

Ecological restoration and soil and water conservation of mines

The Company has formulated and implemented a restoration plan of mine ecology, and carries out work on the principle of“concurrent mining and restoration”, with a focus on greening and ecological integration around the mining area. The Companyhas constructed ditches and retaining walls and launched soil and water conservation projects in mining slope areas, therebyeffectively reducing the erosion of slopes by rainfall and the risk of soil erosion. In addition, the Company increases theproportion of electric mining vehicles used in mining and transporting, reducing exhaust emissions and mitigating the pollutionto the surrounding environment. In the year, the Company e?ectively reduced soil erosion and ecosystem degradation in themining area. As a result, the ecological environment and natural landscape around the mining area gradually recovered to amore stable condition, fostering harmonious coexistence of the mining area and the surrounding ecosystems.

Longdong River Area, located in Xingquan Community, Xingquan Town, Huaping County, Lijiang City, YunnanProvince, is named after the river formed by water owing out of karst caves. This area serves as a primary livingand agricultural zone for the local residents. Due to lack of planning, Longdong River Area has long faced problemssuch as dirty environment and river pollution, which a?ect local biodiversity and the life quality of residents.At the beginning of 2023, Xingquan Community proposed a beautiful village construction plan for Longdong RiverArea. Dinghua Building Material, as a local company, actively responded to the community initiative and donated100 solar street lights at the end of 2023. In the year, Dinghua Building Material donated 100 tonnes of cement forthe community infrastructure renovation, with a total investment of nearly RMB 300 thousand, e?ectively supportingthe environmental improvement and infrastructure construction of the village.In October 2024, the beautiful village construction project in Longdong River Area was completed and put intouse. The plan has improved the living environment of residents and demonstrated the harmonious coexistence ofbiodiversity conservation and rural revitalization.

Dinghua Building Material supports the construction of beautiful villages by improving rural livingenvironmentCase

Dinghua Building Material supports the construction of beautiful villages by improving rural living environment

In active response to China’s development concept of “lucid waters and lush mountains are invaluable assets”,Hunan Linli South New Material is committed to steering the mining industry towards the path of green development,thus contributing to the construction of ecological civilization. Upholding the principle of “concurrent mining andregreening”, the Company collaborates with the Chinese Academy of Sciences, Hunan University, Central SouthUniversity, and Anhui University of Science and Technology to establish an integrated base for production, academia,research, and training. This initiative aims to restore the ecological integrity of mines, enhance land productivity, andexplore a region-specic green restoration model.In the practice of ecological restoration, the Company adopts the restoration method combining planting and sowing.Specically, the Company innovatively uses the technical means of planting seedlings in nutrient bags and sowingseeds to gradually establish ecosystems with natural succession capacity, and realize the sustainable improvementof the ecological environment of the mining area. Since the establishment in 2019, the Company has completed theecological restoration for a total area of 152 thousand m

, with a restoration rate of 100%, e?ectively promoting therestoration and reconstruction of the ecological environment of the mining area.With the outstanding results of green development, Hunan Linli South New Material was invited to participatein the Hunan International Green Development Expo hosted by the Department of Natural Resources of HunanProvince. In the Expo, the Company showcased its excellent achievements in mine ecological restoration and greendevelopment, fully demonstrating the exemplary and leading role of the Company in promoting the sustainabledevelopment of the industry.

Ecological restoration projects for the green development of minesCase

2024 Environmental, Social and Governance ReportLeading the New Chapter of Green Development

Conservation and sustainable utilization of biological genetic resources

Ecological impact management throughout the product lifecycle

The Company focuses on the conservation of biological genetic resources. Following the principles of sustainable utilization andaccess and benet sharing, the Company carries out regular biodiversity monitoring in the mining area and around the projectsite to identify and protect plants and animal resources of signicant ecological value. The Company actively participates in theearly warning and management of biodiversity risks, and formulates special management programs for high-risk areas to reducethe potential impacts of its operations on biological genetic resources. The establishment of the biological genetic resourcemanagement system has enabled the Company to protect biodiversity through a professional and systematic approach. Thisapproach also ensures that the habitats of key species are not signicantly disturbed, and promotes the sustainable utilizationand long-term protection of biological genetic resources.

To reduce the impact on ecosystems, biological species and their habitats throughout the lifecycle of its products, the Companyimplements green management strategies in all aspects, including product design, raw material procurement, manufacturing,transportation, use and disposal. By promoting the construction of green mines and green factories, we advance the applicationof clean production technologies to reduce the discharge of greenhouse gases and pollutants. The Company introduces eco-friendly materials in certain projects to reduce resource consumption and environmental burden. Green management measureshave e?ectively reduced the ecological footprint of products throughout their lifecycle, enhanced resource conservation andenergy e?ciency, and further solidied the Company’s position as an industry leader in sustainable development.We will continue to strengthen biodiversity conservation management, optimize ecological and environmental protectionmeasures, and foster the deep integration of biodiversity into corporate sustainable development. The Company is dedicated tobecoming an industry benchmark in ecological protection and green development, and making greater contributions to globalbiodiversity conservation.

Total area of operation premises with great impact on biodiversity refers to the total area of mines and woodlands within the scope of the Company’s placeof business that may have a signicant impact on biodiversity.

Total area of operation premises carrying out biodiversity management plans refers to the total area of the Company covered by the biodiversitymanagement plan.

Key Performance IndicatorsUnitData in 2024Total number of operation premises\507Total area of operation premisesm

82,063,440Total number of operation premises conducting biodiversity impact

assessment

\472Total area of operation premises conducting biodiversity impact

assessment

m

75,440,101Total number of operation premises with great impact on

biodiversity

\0Total area of operation premises with great impact on biodiversity

m

Total number of operation premises carrying out biodiversity

management plans

\102Total area of operation premises carrying out biodiversity

management plans

m

6,312,300

Tianshan Material’s key performance indicators related to the biodiversity assessment in 2024

Exhaust emission management measures

Emission Compliance ManagementTianshan Material attaches great importance to emission compliance management and regards it as an important part ofenvironmental management. The Company has established internal management policies such as the “Pollution Preventionand Control Management System” and the “Pollutant Discharge Permit Management System”. As a result, the Company’semission activities throughout operations comply with relevant laws and regulations and standards. In addition, the Companyactively implements diversied emission reduction measures and conducts waste discharge publicity and training to promotethe sustainable development of society and the industry. In the year, the Company’s pollutant discharge was in compliancewith the requirements of relevant laws and regulations, and no incidents of excessive pollutant discharge occurred. In the year,the Company did not experience any pollutant discharge incidents that had adverse effects on the health of employees orcommunity residents, nor was the Company subject to any signicant administrative penalties or criminal liability as a result. TheCompany’s environmental monitoring program and risk management measures were e?ectively implemented.

The Company focuses on exhaust emission management, carries out audits of waste gas management, invests in independentdevelopment and introduction of advanced environmental protection processes, which greatly cut down pollution emissions. TheCompany’s main waste gas pollutants include industry-specic pollutants such as nitrogen oxides (NO

x), sulfur dioxide (SO

),particulate matter (PM), as well as controlled substances such as mercury specied in the “Basel Convention on the Control ofTransboundary Movements of Hazardous Wastes and Their Disposal”.The Company has formulated the “Key Periods of Atmospheric Pollution Control Work Plan”. According to the ultra-low emissionstandards and implementation progress requirements of each region, the Company has accelerated the ultra-low emissiontransformation of cement enterprises and implemented the upgrading and renovation projects of environmental protectionfacilities represented by SCR, denitrication tubes, wet desulfurization and other technical routes.In the year, the Company signed the “Eco-environmental Protection Goal Responsibility Statement” with each regional company,specifying the target of reducing NO

x, SO

and PM emissions per unit product in 2024. That is, the emissions of NO

x, SO

andPM per tonne of clinker would be decreased by 1.5%, 0.8% and 0.6% year on year, respectively. By the end of 2024, throughemission reduction measures such as ultra-low emission transformation, control of sulfur content of raw combustion materialsand upgrading of existing dust collection equipment, emissions of clinker NO

x, SO

and PM had decreased by 7.86%, 1.49%and 23.24%, respectively. All emission targets were achieved in the year.

More Robust Waste Gas Management

Ultra-low emissionand emissionreductiontechnologyDust collectionbag expansion andtransformationDenitricationtransformation

Desulfurizationtransformation

Conduct emission reduction technology transformation for new dry-processcement clinker line to reduce NO

x and ammonia escape emission concentration;Implement dust collection bag expansion and transformation, and optimizeproduction lines to signicantly reduce PM emissions;Apply reliable denitrication technology to convert polluting waste gas intoharmless gas and reduce waste gas emissions;

Introduce compound desulfurization technology to e?ectively control pollutantemission concentration, while ensuring the stability of kiln system operation.

2024 Environmental, Social and Governance ReportLeading the New Chapter of Green Development

In addition, the Company conducts regular air quality monitoring to ensure that production activities do not have a negative impact onemployee health and surrounding communities.The Company keeps a watchful eye on the water use and indicator management in the production of cement products and applies digitaltools to monitor water consumption data in real time, so as to minimize water waste. The Company’s main pollutants in wastewaterdischarged are industry-specific pollutants reflected by indicators such as chemical oxygen demand (COD) and ammonia nitrogencontent.

Strict Wastewater Management

Zhejiang Cement continuously enhances energy conservation, emission reduction andgreen and low-carbon technology innovation, and has launched the P-N-SCR ultra-lowemission technology innovation project. The project integrates source emission reduction,process control and end-of-pipe treatment. Through the three core technologies of highlyintegrated pipeline denitrification, precise selective non-catalytic reduction (SNCR)and innovative selective catalytic reduction (SCR), the project has built an e?cient andcoordinated online pollution reduction and carbon reduction system. After adopting thistechnology, Jiande South, a subsidiary of Zhejiang Cement, saw a signicant reductionin NOx emissions from the kiln tail ue gas, with the concentration dropping to 45 mg/m

. The ammonia consumption per tonne of clinker was reduced to below 1.00 kg, andammonia escape was e?ectively controlled within 5 mg/m

. This resulted in an annualreduction of 1,100 tonnes of NOx and 2,520 tonnes of CO

emissions.The project has achieved an organic integration of multi-stage collaborative governance,efficient emission reduction, and energy saving and carbon reduction, driving acomprehensive improvement in environmental performance and energy efficiency.Therefore, it has been honored with the “Top Ten Science and Technology InnovationAwards for Carbon Peaking and Carbon Neutrality in Zhejiang Province in 2024”.

Zhejiang Cement adopts “P-N-SCR ultra-low emission technology” to facilitate innovative breakthroughsin carbon neutralityCase

Certicate of honor for “Top Ten Science

and Technology Innovation Awards forCarbon Peaking and Carbon Neutralityin Zhejiang Province in 2024”

Wastewater drainage managementThe Company strictly abides by the principle of “clean water and sewage diversion, rainwater and sewage diversion, separate collection,and processing by quality” to ensure the scientic and environmental management of wastewater discharges.

The Company e?ectively separates industrial and domestic wastewater at the source through a robust management systemand equipment control measures, ensuring that all kinds of wastewater meet the discharge standards or can be reused afterappropriate treatment. At present, all factories of the Company have been equipped with processing equipment for domesticwastewater, and all processed wastewater is reused. Wastewater of washing tanks from enterprises under the Companyoperating commercial concrete business can be reused after collection and processing.To reduce the risk of rainwater runo? pollution, the drainage system has been rationally planned to ensure that rainwater andsewage are discharged separately. Water quality monitoring wells are set up as required before rainwater and sewage pipes areconnected to municipal rainwater and sewage pipes, which can monitor the collection and discharge of rainwater in real time. Inthe year, the Company carried out special management for unorganized emissions and diversion of rainwater and sewage, andall potential risks investigated were rectied, e?ectively enhancing the management of rainwater and sewage diversion.In accordance with the requirements of environmental impact assessment and discharge license, the Company strictlyimplements the separate collection and treatment of wastewater, ensuring that the concentration, discharge methods, and totalvolume of wastewater comply with environmental standards. To prevent hazardous substances entering the surrounding areathrough rainwater runo?, enterprises discharging wastewater containing heavy metals and toxic and hazardous substancesshall be equipped with rainwater collection facilities, and shall not directly discharge rainwater, so as to minimize the pollution tonatural water and soil.The Company, taking into account the characteristics of wastewater, employs a range of diversied treatment technologies,including physical, chemical, and biological methods, to e?ectively remove hazardous substances from wastewater. The qualityof treated water is stable and meets the required standards for safe discharge or reuse. Such e?orts further enhance the wateruse e?ciency.

Clean waterand sewagediversion

Rainwaterand sewagediversion

Separatecollection

Processingby category

The Company has established a management objective to specify that the Company shall discharge wastewater in strictaccordance with the pollutant discharge permit standards. In the year, the Company built corresponding facilities for centralizedsewage processing and automatic monitoring equipment based on requirements of environmental impact assessment andsewage discharge license. The Company also networked with the monitoring equipment of the ecological and environmentalprotection authorities to achieve real-time monitoring of sewage data. Meanwhile, we have explicitly prohibited setting upsewage outfalls in the protection zone of drinking water sources. All other established sewage outfalls will discharge sewageafter processing in strict accordance with discharge requirements.By the end of 2024, the Company’s four wet aggregate production lines had been equipped with wastewater treatment systems.The treated wastewater can be recycled to realize zero wastewater discharge.

Tonglu Benteng Building Materials actively practices the concept of green development, and has launched a projectfor 100% recycling of wastewater from mixing plants. By jointly leveraging the sand and gravel separator and the barscreen grit chamber, the project e?ectively intercepts and lters wastes, and precipitates suspended matter to purifywastewater. The quality of treated water is monitored in real time and used in concrete production after meeting thestandards, achieving closed-loop management of the entire process.In recent years, relying on independent R&D and management system reform, the Company has continuouslyoptimized sewage treatment and recycling technologies. By doing so, the Company e?ectively achieves multiplegoals such as recycling water resources, reducing production costs, and improving resource utilization e?ciency.By the end of 2024, the project had cumulatively reused wastewater for 21,291 times, with an average of 1.44 m

of wastewater recycled each time. This had resulted in a total water saving of approximately 30,659 m

. The projecthas signicantly reduced the Company’s reliance on fresh water and contributed to meaningful achievements inenergy conservation, emission reduction, and green transition.

100% recycling of wastewater from mixing plants contributes to green developmentCase

Treatment process for the zero discharge of wastewater

2024 Environmental, Social and Governance ReportLeading the New Chapter of Green Development

Water quality monitoring and management

Reduction of water consumption

To ensure water safety, the Company has established a sound water quality monitoring and management mechanism. Basedon this mechanism, the Company conducts regular water quality testing to ensure the sustainable use of water resources duringproduction and operations.

Faced with global water shortages and increasingly severe environmental challenges, the Company actively responds to thesustainable development strategy by continuously promoting water-saving management and technology innovation. In this way,the Company is committed to improving water use e?ciency and reducing total water consumption.

Water-savingtechnologyoptimization

Meticulousmanagementof water use

Cultivation ofwater-saving

awarenessThrough technologyimprovement andequipment upgrade,the Companyreduces unnecessarywater consumptionand increases theproportion of recycledwater in the productionprocess, maximizingthe recycling of waterresources.

The Company employsdigital monitoringmethods to track wateruse data in real time,precisely analyze wateruse e?ciency at eachstage, and promptlyidentify and rectifyabnormal water use.

We carry out water-saving publicity andtraining across theCompany to enhanceemployees’ water-savingawareness, advocate awater-saving mode inwork and daily life, andestablish a water-savingmanagement systemwith the participation ofall employees.

Boiler watermanagement

Surface water

monitoring

Groundwatermonitoring

The Company annually engages qualied third-party professional organizations to conduct waterquality tests on the extracted groundwater. These tests focus on whether the water quality meetsthe relevant national and local standards to ensure the safety and reliability of the water source.The Company regularly carries out random sampling of production water taken from rivers andsends the samples to internal or external laboratories for comprehensive testing. This enablesthe Company to monitor water quality changes in real time and promptly identify and addresspotential risks.To ensure the safe operation of production boilers and avoid water quality problems, theCompany strictly treats the water used in boilers. Specically, the Company adopts the industrialsalt softening process to reduce water hardness, prevent scaling and corrosion, and ensuree?cient and stable operation of equipment.

Tianshan Material actively promotes waste management, focusing on the principles of “reduction, recycling, and harmless disposal” tooptimize waste classication and recycling. The Company highly values the management of waste resources generated from cementproducts manufacturing, and standardizes the classication, separation and recycling of wastes, thereby protecting the soil environmentaround the production line while reducing resource waste.Adhering to the principle of “transition of cement enterprises into urban solid waste puriers”, we adopt cement kilns to co-disposeof domestic wastes, solid wastes and hazardous wastes. The co-disposal project closely integrates cement production and wastetreatment, and utilizes the heat energy generated from the incineration of solid wastes for cement production and the “residue” afterincineration as auxiliary raw materials for cement, achieving zero-emission treatment of solid wastes while saving social resources. In2024, the Company set and achieved a management target of 100% disposal rate for solid wastes, and achieved this target.The Company solves the problem of industrial and urban waste reuse and disposal based on the technological progress of solid wasteconsumption and resource recycling. In this process, the Company strictly adheres to relevant regulatory requirements for the treatmentof hazardous wastes that cannot be recycled. The Company ensures that such wastes undergo accurate identication, standardizedclassication, and proper storage before engaging qualied third parties to conduct high-temperature incineration or harmless landlltreatment. This approach aims to minimize the potential impact on the environment and human health. Meanwhile, the Companyhas developed and released the “Safety and Environmental Protection Identification and Protection Standards”, which clarifies therequirements for hazardous waste management, so as to ensure the standardization and traceability throughout waste management.By continuously optimizing the waste management process, the Company has established 57 cement kiln co-disposal production lines,with an annual disposal capacity of 5.96 million tonnes. In 2024, the Company disposed of 1.17 million tonnes of hazardous wastes andsolid wastes through rotary kiln co-disposal, thus continuously promoting waste reduction and recycling and supporting the green andsustainable development of the Company.

Stronger Waste Management

In 2024

Companyset and achieved，a managementtarget of

100%

disposal rate for solid wastes

A total of

1.17

million tonnes of hazardous solidwaste was disposed of through rotary kiln co-disposal

Jiaxing Fengqiao South Concrete closely follows the government’s pace in creating a “waste-free city,” and strictlyimplementing its corporate responsibility for the prevention and control of environmental pollution from hazardous wastesand solid wastes. Jiaxing Fengqiao South Concrete has established a steering group for the creation of a “zero-dischargefactory”, set up a working mechanism with clear division of labor and well-dened rights and responsibilities, and rened thework content.Jiaxing Fengqiao South Concrete continuously increase its investment in environmental protection, using new sand andgravel separator and sewage reuse system to clean vehicles when they return to the factory. The system uses recycledwastewater for vehicle cleaning, capable of cleaning over 36 m

of leftover materials per hour. The sand and gravelseparated after cleaning are recycled for production, and the wastewater is reused. In addition, Jiaxing Fengqiao SouthConcrete strictly implements the diversion of rainwater and sewage. It has newly built a 210 m

initial rainwater collectiontank to ensure that the rainwater is discharged in compliance with required standards during heavy rainstorms. The wharfenvironment improvement project has been implemented to enhance the overall environmental hygiene there. Hoppershave been equipped with spraying systems for dust suppression, and spraying poles and dust monitoring systems havebeen installed on both sides of the wharf, so as to provide a dual guarantee for “zero-dust emissions” during the unloadingprocess. Ship wastewater reception tanks have been purchased to ensure that all ship wastewater is properly collected.

The practices of Jiaxing Fengqiao South Concrete to build a “zero-discharge factory”Case

2024 Environmental, Social and Governance ReportLeading the New Chapter of Green Development

Jiangxi Cement actively responds to the national call for the construction of ecological civilization and the recyclingof solid wastes. It has successively completed the Nancheng South project with an annual disposal capacity of100 thousand tonnes of hazardous wastes and solid wastes and the Sinoma Pingxiang project with an annualdisposal capacity of 26.4 thousand tonnes of municipal sludge. The projects fully leverage the unique advantages ofcement kiln co-disposal technology in the eld of solid waste disposal, contributing to improving regional ecologicalenvironment and building a “waste-free city”.Compared with traditional solid waste disposal methods such as incineration, the cement kiln co-disposal technologyhas significant advantages such as low disposal cost, strong operating stability, less land occupation and highrecycling efficiency. Under the incineration conditions of high temperature (approximately 1,450 °C) and longretention time, the incineration state of solid waste remains stable, so that the organic components therein canbe completely decomposed. This e?ectively prevents the generation of harmful gases such as dioxins and avoidssecondary pollution. In addition, the inorganic components in wastes can be fully utilized as raw materials for cementclinker, achieving harmless disposal, reduction, and recycling of solid wastes.By the end of 2024, Jiangxi Cement had cumulatively treated 8,530 tonnes of hazardous wastes, 15,267 tonnesof non-hazardous solid wastes, and 32,387 tonnes of municipal sludge. This has significantly alleviated theenvironmental pressure arising from hazardous wastes and solid wastes in the local area, reduced the ecologicalrisks associated with waste landfill and incineration, and effectively contributed to the improvement of regionalenvironment quality.

Cement kiln co-disposal of solid wastes to build a “waste-free city”Case

Jiangxi Cement contributes to building a “waste-free city”

Shangchen New Materials is committed to developing circular economy. While saving energy and reducingemissions, it focuses on increasing the greening rate of the manufacturing process and technology, thus helping buildFuzhou into a “waste-free city”.To solve the problem that the original dry-process sand production line could not dispose of the waste residuegenerated during aggregate production, Shangchen New Materials has actively explored new processes and carriedout a technical reform to build a 1.4 million tonne wet-process sand production line for the disposal of abandonedmines and waste residue. It has been calculated that compared with the dry-process sand production process, thenew process will increase the prot by about RMB 8 per tonne.Shangchen New Materials has upgraded the original dry-process sand production line to a wet-process one. Byimplementing measures such as enclosing the belt conveyors and storage bins (sheds), and covering the transportvehicles with tarpaulins, effectively eliminating dust emissions during production, transportation, and loadingprocesses. These measures have prevented dust pollution to the environment and achieved zero pollutant discharge.

Pursuing green development to help create a “waste-free city”Case

Shangchen New Materials is dedicated to creating green factories and green mines

2024 Environmental, Social and Governance ReportEstablishing a New Talent Development Center

2024 Environmental, Social and Governance ReportEstablishing a New Talent Development Center

2024 Environmental, Social and Governance ReportEstablishing a New Talent Development Center

The Company is committed to building a diverse and inclusive workforce, maintaining zero tolerance for any form ofdiscrimination or harassment, thereby ensuring that every employee feels fully respected and supported. In strict compliancewith relevant employment laws and regulations, we effectively protect the legitimate rights and interests of our employees.Moreover, we categorically prohibit the employment of child labor and forced labor. We uphold the principles of equality,openness and impartiality in employment. We continuously rene our employee communication mechanism, actively embraceemployee feedback, and enhance their sense of identity and satisfaction.

The Company abides by the “Labor Law of the People’s Republic of China”, the“Labor Contract Law of the People’s Republic of China”, the “Law of the People’sRepublic of China on Promotion of Employment”, and other laws and regulations. Wealso advocate the international initiatives for the protection of human rights such asthe International Labor Organization Convention and the United Nations Conventionon Human Rights. Moreover, we have established internal rules and regulations onsalary and dismissal, recruitment and promotion, equal opportunities, diversity, anti-discrimination, anti-harassment, and other welfare benets, such as the “RecruitmentManagement Measures” and “Labor Contract Management Measures”. Based onthem, we protect the legitimate rights and interests of our employees and treat themfairly and equitably. In the year, the Company recruited 1,617 new employees.For recruitment and hiring, the Company always adheres to the principle of fair competition and merit-based selection. Westandardize management procedures for hiring, contract signing, probationary management, dismissal, etc. Authentic, accurateand valid personal information is required to be provided by all new employees upon hire and will be veried by the Company.Candidates whose information is found to be false will not be hired. In doing so, we protect the legitimate rights and interests ofboth the Company and our employees and regulate employment conduct.In the year, the Company prepared and released the “Campus Recruitment Management Measures” and the “2025 CampusRecruitment Program” to clarify the recruitment process and responsibilities. In addition, we have formulated detailed recruitmentplan and job description. To enhance the efficiency and quality of talent recruitment and create more job opportunities, theCompany has implemented the following measures:

Employee Recruitment and Retention

Fullling Talent Strategy

Company recruited1,617

new employees

We have introduced the digital recruitment platform for e?cient and intelligent recruitmentprocess. This platform integrates resume management, online assessment andvideo interview, which not only shortens the recruitment period, but also improves thecandidates’ experience and engagement.

To improve the recruitment e?ciency and accuracy, we adopted the AI-based technologyto automatically conduct resume screening and preliminary interview this year to rapidlyidentify qualified candidates. The number of contracts signed through 2025 campusrecruitment increased by 5% compared to previous year.

Introducing digital

recruitment

platform

Using AI-basedrecruitment tools

In the year, the Company strictly abided by the “Policy Statement of Human Rights” (“Policy of Human Rights”) and other internalpolicies. This statement covers the operations of the Company and its subsidiaries, suppliers and other partners. The Policy ofHuman Rights includes the Company’s commitment to adhere to all internationally recognized human rights principles as setforth in the “United Nations Universal Declaration of Human Rights”, the “Declaration on the Protection of Human Rights”, andthe core conventions of the International Labor Organization. In the Policy of Human Rights, the Company also upholds diversityin employment and opposes discrimination, guarantees equal pay for equal work, and respects freedom of association foremployees.In order to ensure the e?ectiveness of the Policy of Human Rights, the Company regularly identies and assesses potentialhuman rights risks. The scope of identication includes the operation of the Company’s businesses, upstream and downstreamvalue chain, as well as new businesses (mergers and acquisitions and associates). Topics contain forced labor, child labor,freedom of association, collective bargaining, equal pay for equal work, and discrimination, and involve a variety of groups,including employees, women and children, original inhabitants, migrant workers, contract workers, and local communities. Onan annual basis, we review the e?ectiveness of human rights management in accordance with the “Policy of Human Rights”,set targets and, based on these, continuously improve management capabilities. If violations of the “Policy of Human Rights”,such as child labor or forced labor, are discovered, we will immediately report them to the Human Resources Department forcause trace, and conduct a comprehensive investigation. Following the investigation, the Company will communicate withthose responsible to nd solutions, including providing compensation in accordance with laws and regulations, and will imposeadministrative penalties on the violators. They are also required to participate in training on respecting employees’ rights andinterests to prevent recurrence.

The Company expressly prohibits the employment of child labor and forced labor. The Company strictly reviews the identityinformation of new employees to ensure that they are 18 years old or above. Meanwhile, the Company follows the principle ofequality, voluntariness and consensus to ensure that all employees are employed voluntarily and to eliminate forced labor. If anyviolations of employment rules are discovered, the Company will report to the Human Resources Department for a thoroughinvestigation. Following the investigation, we will take appropriate measures in accordance with relevant laws and regulations,which may include negotiating a solution and implementing compensation or indemnication. Furthermore, the Company willconduct in-depth analysis of the cause of the incident, and provide education and training as well as necessary disciplinaryaction to the relevant responsible persons. In the year, the Company had no child labor or forced labor.The Company clearly specifies employees’ working hours and leave hours to guarantee their rights to rest and leave.Management procedures of employees’ leave and rest have also been improved. For overtime employees, overtime paymentswill be made in accordance with relevant management regulations on employee salary.Diversity, Equity and Inclusion

In the year, Tianshan Material conducted targetedpublicity to 75 universities to attract talents.Throughout the year, we organized and participatedin more than 70 job fairs at key universities suchas Wuhan University of Technology, SouthwestUniversity of Science and Technology, and Universityof Jinan. Through these activities, we recruited about580 outstanding graduates from universities all overthe country. Meanwhile, echoing the national policies,the Company recruited 29 graduates from universitiesor native places in the western provinces such asXinjiang, Tibet and Qinghai. These graduates wereallocated to key positions such as technology, R&D,marketing, sales, finance, and human resources,bringing fresh blood and vitality to the Company.

Tianshan Material’s excess achievement in 2024 campus recruitment programCase

Campus recruitment of Tianshan Material in Southwest

University of Science and Technology

2024 Environmental, Social and Governance ReportEstablishing a New Talent Development Center

Tianshan Material continues to improve the democratic management system in enterprises with the workers’ representativescongress as the core. The Company strengthens the establishment and development of trade unions at all levels, protectingemployees’ rights to know, to participate, to be heard, and to oversee. This ensures smooth feedback for employees’ opinionsand suggestions. In the year, the Company ensured the participation of employees in the decision making and management ofdaily operations through the following ways:

In 2024, the Company revised the “Implementation Measures for the Workers’ Representatives Congress”. Thisrevision aimed to continuously strengthen the democratic management system in enterprises with the workers’representatives congress as the fundamental form, ensuring that the workers’ representatives congress was held ina standardized manner. We also work to expand channels for employees’ suggestions, strictly enforcing the proposalmechanism of the Group’s workers’ representatives congress, and e?ectively implementing proposal handling andexecution to actively promote harmonious labor relations. In the year, the Company exercised and implemented atotal of 789 powers of workers’ representatives congress in accordance with the law, and Jiangxi Nancheng SouthCement Company Limited was awarded the “Demonstration Unit for Open and Democratic Management of FactoryA?airs in Jiangxi Province”.

The Company has appointed worker directors and worker supervisors in accordance with the law. Their rights includelistening to the opinions and suggestions of the workers, representing them in exercising their rights to participate, to beheard and to oversee.

The Company has established trade unions, and equips them with appropriate part-time personnel to ensure theirstandardized daily operation. By the end of the year, the trade unions had 54,433 employees, with union membershiprate of 98.9%.The Company has set up the workers’ representatives congress and held annual congress meetings to report to therepresentatives on the production and operation of the Company. In addition, the Company collects opinions andsuggestions from all employees at the meetings. The business departments concerned then make sure that the opinionsexpressed and suggestions made are implemented.

The Company discloses major corporate matters and various matters involving the interests of employees in a lawful,timely, truthful and scientic manner and guarantees employees’ rights to know about important matters.

Employee Communication and Engagement

Appointment of worker directors and worker supervisors

Improvement of trade unions

Implementation of the workers’ representatives congress

Improvement of factory a?airs disclosure

Honorary credential of demonstrationunit for open and democraticmanagement of factory a?airs

E?ective implementation of the powers and functions of the workers' representative assemblies andthe building of harmonious labor relationsCase

The Company values the development of a diverse and inclusive culture. Weregularly train all employees on diversity, inclusion, anti-discrimination and anti-harassment. We also explicitly prohibit harassment (including sexual harassment)and discriminatory behavior in the “Policy of Human Rights”.Any employee who experiences harassment or discrimination can lodge acomplaint by submitting a letter to the suggestion box or reporting the situationdirectly to the relevant leaders of the Human Resources Department, either inwriting or verbally. The Company will organize the Human Resources Departmentto conduct a thorough investigation in collaboration with the DisciplinaryInspection Department. Once the investigation is completed, the complainant willbe provided with a response, either verbally or in writing.The Company places a high priority on safeguarding the rights and interests offemale employees. We provide equal opportunities and treatment for womenin key areas such as hiring, training, and promotion, and ensure equal pay forequal work. We also encourage and support female employees to develop theirleadership and take up management positions. In the year, the Company andall its subsidiaries had a total of 1,124 senior managers, among which femalemanagers were 109, accounting for up to 9.7%.The Company values and protects the rights and interests of local residents, and we explicitly oppose employment discriminationon the basis of ethnicity, race, gender, age, and religious beliefs and employ them on an equal basis. The Company is alsocommitted to developing communities in countries other than China. In projects in countries like Zambia, Nigeria and Mongolia,we actively engage in community development, helping residents improve infrastructure and partnering with local communitiesfor shared growth.In 2024, Tianshan Material proactively tackled various challenges in labor relations management. The Company addresseda signicant number of issues related to employees’ rights and interests through amicable communication and robust internalmediation mechanisms. A small fraction of these issues was escalated to professional labor arbitration and judicial procedures.Throughout the process, Tianshan Material remained steadfast in its commitment to safeguarding employees’ rights andinterests, fostering harmonious labor relations, and fulfilling its corresponding responsibilities and compensation obligationswhere necessary. Appropriate resources were utilized to ensure that the issues were properly resolved, thereby underscoringour unwavering dedication to creating a harmonious workplace.

Protection of Employees’ Rights and Interests

Had a total of1,124

senior managersamong which female managers were

accounting for up to

9.7%

Aksu Tianshan rmly believes in the philosophy that “employees are the cornerstone of the enterprise’s survivaland development.” It actively leverages the role of the workers’ representatives congress to safeguards employees’rights and interests, and broadens public channels to make democratic management more transparent. Moreover,it strictly enforces attendance policies to ensure timely salary payments, promptly pays all social insurancecontributions to effectively protect employee interests, and upholds a culture of care through “visits to the sick,congratulation on festivals, holiday greetings, mourning for the deceased, and helps for those in need”. AksuTianshan organizes a variety of activities, such as fun sports meetings, Mother’s Day celebrations, and workers’representative congress, to enrich employees’ lives. These activities strengthen employee unity.

Protection of employees’ rights and interests by Aksu TianshanCase

In the year, the Companyand all its subsidiaries

2024 Environmental, Social and Governance ReportEstablishing a New Talent Development Center

Tianshan Material has formulated internal policies such as the “Performance Management Measures”, the “Measures forTenure System and Contract-based Management for the Manager-level Personnel of the Company”, the “Evaluation Measuresfor Business Performance of Manager-level Personnel of the Company”, and the “Implementation Measures for AnnualPerformance Evaluation of Departments and Employees at Headquarters”. Building on these documents, the Company hasset up a multilevel and grade-based performance management system, using a variety of methods to manage and evaluateemployees’ performance.

Tianshan Material pays salaries to employees in full and on time based on their positions, job performance, and the Company’ssalary policies. The Company makes reasonable personnel changes based on business development needs and employees’circumstances to ensure the e?cient operation of the team and meet employees’ career development needs. The Companysigns labor contracts or agreements with flexible employment personnel in accordance with laws, clarifying the rights andobligations of both parties to ensure that their legitimate rights and interests are protected. In the year, the Company optimizedthe performance evaluation plan and the salary standard for annualized compensation employees, and strengthened the linkagebetween performance evaluation results and salary payment.To share the fruits of the Company’s development with employees, the Company continuously improves its salary incentivepolicies and has established a salary system that primarily focuses on market-based incentives, supplemented by medium- andlong-term incentives. For employees below the management level, the Company implements medium- and long-term incentiveprograms through various forms such as equity incentives, excess prot sharing, and phantom equity.

●The manager-level personnel are subject to the tenure system and contract-basedmanagement, and sign the Letter of Responsibility for Business Performance during theTerm, Letter of Responsibility for Annual Business Performance, and Job AppointmentAgreement. Their tenure and annual business performance evaluation are implementedin accordance with the signed Letter of Responsibility for Business Performance, withevaluation indicators divided into organizational and individual indicators.

●The department heads at the Company’s headquarters are subject to annual evaluations,with results contingent upon annual evaluation results, the completion of annualdepartment KPIs and key work, debrieng review, and department satisfaction.

●The department heads of regional companies and member enterprises are evaluatedmonthly or annually by their respective companies based on functional divisions, key workarrangements, and established evaluation methods.

●Other personnel are evaluated monthly or annually by their respective departments basedon key departmental tasks, job responsibilities, and established evaluation methods.

Salary and Performance Management

Tianshan Material strictly complies with the “Labor Law of the People’s Republic ofChina”, the “Labor Contract Law of the People’s Republic of China”, the “Social InsuranceLaw of the People’s Republic of China”, and other laws and regulations. Based on them,we have established and improved internal policies such as the “Management Measuresfor Employee Salary and Benets, “Management Measures on Leave and Attendance”,and “Management Measures for Benets of Headquarters Employees”. We are dedicatedto developing a fair, rational, and competitive compensation and welfare benets system,to ensure that all employees receive the treatment they deserve.

Employee Salary and Welfare Benets

Manager-levelpersonnel of theCompany

Middle-levelcadres andemployees of theCompany

Tianshan Material provides employees with diverse welfare benefits, and has formulated internal policies such as the“Management Measures for Employee Salary and Benefits” and the “Management Measures for Benefits of HeadquartersEmployees”, to safeguard employees’ legitimate rights and interests. We provide work meals, health checkups, enterpriseannuity and other benets, and conducts activities such as high-temperature care, sick care, funeral sympathy, and wedding andbirth blessings for our employees. The Company has established a Dietary Committee to actively listen to employee feedbackon issues related to catering, continuously improve services, and ensure that employees are provided with healthy, nutritious,and delicious food.We also take care of our employees’ physical and mental well-being. We provide tness equipment and organize lectures onmental well-being irregularly to enhance employees’ physical health and help them reduce stress. With these e?orts, we strive tocreate a healthy, energetic and positive workplace.

Employee Benets

Sinoma Yunfu highly values the physical and mental health of its employees, and provides annual occupationalhealth checkups. The company has upgraded the noise control technologies for production equipment and workingenvironment, signicantly enhancing operating conditions. Moreover, the company has installed tness facilities,promoted healthy eating habits, and provided professional psychological counselling services. It has also organizeda series of health knowledge activities, including health skills training, seminars and post rst-aid skills competition.These initiatives have improved employees’ physical tness and reduced their stress. For its e?orts, the companyhas won the title of “Healthy Enterprise in Guangdong Province” for four consecutive years, and four employeeswere awarded “Occupational Health Expert in Yunfu”. Through these comprehensive measures, the company hasfullled its corporate responsibility to safeguard employees’ physical and mental health, facilitating the healthy andsustainable development of both the company and its employees.

Sinoma Yunfu advanced the development of healthy enterprise to safeguard employees’ physical andmental healthCase

2024 Environmental, Social and Governance ReportEstablishing a New Talent Development Center

Tianshan Material places great emphasis on employee growth and development. To this end, we have established a professionalplatform for qualied personnel management at all levels, creating more opportunities for employees to learn and improve throughdiversied training programs and clear promotion channels. The Company also gives employees a platform to display themselves,and helps them unlock their potential, thereby achieving the mutual growth.

The Company has built a competency model in the Company headquarters, regional companies and member enterprises.By following the principles of introducing systematically, selecting competitively, cultivating comprehensively and assessingincentively, a platform for qualied personnel management at all levels has been built step by step to meet short-term and long-term qualied personnel needs for business development. Meanwhile, the Company has improved the career development systemby developing di?erentiated promotion standards and channels for managerial and technical positions. This allows all employeesto follow a development path that matches their job characteristics and clearly sets out their career development prospects.

Employee Promotion Mechanism

Employee Training and Development

Management sequence

Technical sequence: The Company implements a “dual channel” mechanism for technical talents

Rank (from low to high)

Ranks in professional

sequence

Ranks in operationalsequence

Promotion requirements

Promotionrequirements

Employees below middle-level deputy level are performance-oriented. Theirimmediate department heads propose promotion applications based on theirindividual performance, which are then reviewed by the Human ResourcesDepartment and approved by the Company’s leadership. For middle-leveldeputies and above cadres, the Company adheres to the principle of combiningParty supervision with market-oriented employment mechanisms. In addition,we have optimized the cadre training, selection and appointment mechanism.We continue to step up e?orts to promote young and professional talents whohave worked at the grassroots level and achieved market success to the cadreteam, providing them with broader career platforms and more developmentopportunities. Meanwhile, we innovate the cadre management mechanism, andll the cadre team with professionals and promising young people.

The appointment to professional sequenceand operational sequence is determinedbased on the professionalism andoperational skills of employees, includingethics, job fulllment, performance, andprofessional skills

Assistant, supervisor,senior manager, assistantgeneral manager, middle-level deputy, middle-levelchief, assistant president,management teamdeputy, and managementteam chief

Technician, assistantengineer, engineer,deputy chief engineer,chief engineer, andexpert engineer

Junior technician,intermediate technician,senior technician, mastertechnician, senior mastertechnician, and specialmaster technician

Management sequence

The Company has formulated and implemented the “Training ManagementMeasures”. We have also established a three-tier (i.e., the Companyheadquarters - regional companies - member enterprises) trainingmanagement system, which defines the full process from training needsanalysis to e?ectiveness assessment. This system ensures systematic andstandardized training.The Company follows the principle of “Three Tiers and Three Definitions”

and a training method of “mainly internal training sessions, supplemented byexternal training sessions”. By fully utilizing resources at all levels, we haveestablished a multi-channel, multiform, multilevel employee growth trainingplatform with special emphasis. In this way, we can continuously cultivateprofessional talents and improve employees’ skills. Relying on the three-tiered training system, the Company closely aligns its training e?orts with thecore training plans. Departments at all levels are responsible for planningand implementing corresponding training programs. Training formats includeon-site training, online training, and other forms. The training content coversa wide range of areas, including functional management, professionaltechnology, safety and environmental protection, dual-carbon field, andmulti-skill training for front-line employees. In 2024, 96.57% of employeeswere included in the training, with a total of 1.222 million class hours. Thecompletion rate of key training programs was 100%.Tianshan Material continues to improve its training system. In the year, thehighlights of employee training included:

Employee Training System

96.57%

of employees wereincluded in the trainingA total of

1.222

million classhoursThe completion rate of key trainingprograms was

100%

“Three Tiers and Three Denitions”: “Three Tiers”: the Company headquarters - regional companies - member enterprises, “Three Denitions”: denedlocation, dened position, and dened intention.

To strengthen team building, enhance employees’ skills and overall quality, and meetthe Company’s strategic development needs, Tianshan Material has established theChangxing Training Base and an operating entity in Huzhou, Zhejiang. Additionally,to further optimize the layout of the basic building materials business, advance thestrategy on developing a quality workforce, and improve the talent development system,Tianshan Material established the Southwest Cement Training Center and TianshanMaterial Training Center Deyang Base, in Deyang, Sichuan on March 26, 2024.The Company fully leverages the geographical advantages of the Deyang Base tocomprehensively expand the coverage of training programs. Both bases have operatede?ectively for over 200 days.

The Company has set up a regional training working group mechanism to jointly compilean operation manual for training demand survey, training implementation, and trainingevaluation. The aim is to ensure standardized and consistent training.

Operation of twotraining bases

Compilation ofoperation manual

In 2024,

2024 Environmental, Social and Governance ReportEstablishing a New Talent Development Center

Tianshan Material employs a practical training approach for itsadvanced human resources system training course. The four-month training includes four o?ine and four online seminarsthat closely focus on the four key human resources issues,i.e., performance improvement, talent introduction, talentdevelopment, and organization and personnel optimization.Corresponding action learning topics are tailored to theseissues. The training is supplemented by five professionalcourses, including strategic human resources planning,organizational change, and lean human e?ciency system. Theaim is to deepen participants’ understanding and applicationof the four core topics through systematic knowledge deliveryand practical exercises. This approach comprehensivelyenhances the professional quality of the participants, andboosts the organizational and personnel e?ciency.

Tianshan Material advanced human resources system training courseCase

The key performance indicators for talent attraction and retention in the Company in the year are shown in the table below:

Training hours peremployee (all typesof training)

Hour/person

Total expenses foremployee training anddevelopment4,270.2RMB 10,000

Voluntary turnover rate(include voluntary turnoverand retirement)6%

Employeesatisfaction

98.5%

Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, the Company implements the criticaldeployment of production safety and ecological and environmental protection, forming the “22532” management idea: Adheringto “Two First”, believing in “Two Can”, highlighting “Five Enhancements”, accelerating “Three Shifts”, and achieving “TwoGoals”. Through the application of the Group’s intelligent production safety management system and the ultra-low emissiontransformation, the Company strengthens the management at source. With a focus on the performance of responsibilities, theCompany promotes the transformation of the safety and environmental protection management model to pre-event preventionto support the high-quality development of the Company.

The Company has formulated the “Occupational Health and Safety Policy Statement” (“Policy Statement”) and other internalpolicies. This Policy Statement applies to all employees of the Company headquarters, holding subsidiaries, suppliers,employees of contractors, associates and other business partners. The Board and management together regularly review andimprove the implementation of the Policy Statement. The content of the Policy Statement includes the Company’s commitmentto setting quantitative targets for occupational health and safety, to improving the related management system, and toencouraging employees or their representatives to provide feedback or suggestions.The Company has set quantied targets of zero work-related fatalities, zero new case of occupational diseases and a minorand serious injury rate of ≤ 1‰. We also actively promote the safety culture and effectively fulfill our safety managementresponsibilities. In the year, the Company had 0 new cases of occupational diseases, and achieved a minor and serious injuryrate at ≤0.015‰. The expenditure on production safety amounted to RMB 1,204 million.

Occupational Health and Safety

Pursuing the value concept of “peoplerst and life rst”

Upholding the managementorientation of “all accidents can beprevented and all accidents can beavoided

Safety quality enhancement of enterprise leaders, safety and environmental protectionmanagers and team leaders; employees safety skills and consciousness enhancement;on-site protective equipment and facilities enhancement; rectication of safety hazards(like leakage of gas or liquid) and enhancement of on-site management; and renovationand optimization of on-site protective equipment and facilities

The response of leaders shifts fromwords to deeds, the roles of functionaldepartments shift from participantsto responsible parties, and the rolesof employees shift from operatorsto managers of their respectiveterritories.

Zero work-related fatality and zeroenvironmental penalties“22532”managementidea

“Two rst”

“Fiveenhancements”“Two can”“Three major

shifts”

“Two goals”

Achieved a minor andserious injury rate at≤

0.015‰

Expenditure on production safetyamounted to RMB1,204

millionCompany had

new casesof occupational diseases

In the year

2024 Environmental, Social and Governance ReportEstablishing a New Talent Development Center

We effectively fulfill our safety management responsibilities and continuously improve our safety management system. TianshanCompany has formulated internal rules and regulations such as the “Production Safety Responsibility System”, the “Production SafetyManagement Regulations” , the “Occupational Health Management System” and the “Health and Safety Management System ofRelated Parties”. With these policies, we clarify the basic principles, organizational structure, division of responsibilities, investigationand handling, and emergency response requirements for production safety, so as to standardize our management process.The Company has thoroughly revised the existing indicator system, dividing the indicators into ve categories, including productionsafety targets, control indicators, binding indicators, leading indicators and no-no indicators. For the production safety targets, theCompany is determined to avoid production safety accidents of Class B or above, and comprehensively promote the transformation ofproduction safety and environmental protection management to pre-event prevention. Key control indicators include zero major safetyaccidents, very low serious injuries, e?cient rectication rate of general and major safety hazards, rectication rate of production safetyproblems and zero new case of occupational disease. The binding indicators specify the proportion of certied safety managementpersonnel, the pass rate of safety education and training, the proportion of manufacturing enterprises that have implemented theintelligent production safety management system, and the warning response rate and KPI score of the system. A Category B or aboveaccident, or concealing any accident or major negative public opinion event is considered a no-no indicator.The Company has established a three-level safety management system encompassing “Headquarters - Regional Companies - MemberEnterprises”, clearly dening the safety management responsibilities at all levels to ensure e?cient communication across all levels.The system enforces “supervision and random inspection” at the headquarters level, “inspection and mutual inspection” at the regionalcompany level, and “review and self-inspection” at the member company level, forming a comprehensive safety management systemthat guarantees the orderly advancement of safety work.The Company has established the Production Safety Management Committee (“Safety Committee”) at the headquarters. It is the topdecision-making body overseeing the Company’s production safety and occupational health, with the Company’s main responsibleperson serving as the director, main persons in charge as deputy directors, and department heads as members. Responsibilities includethe deployment and oversight of the production safety related work. The Safety Committee holds meetings every quarter to learn thestate’s production safety policies, summarize the production safety work in the last quarter, and deploy the key jobs for the next quarterto ensure robust implementation of safety responsibilities.The Safety Committee has o?ces that are led by the Company’s Safety and Environmental Protection Department. Responsibilitiesinclude implementing the decisions of the Safety Committee and the routine management. Each regional company also has its ownsafety committee and an independent safety and environmental protection department, with dedicated sta? responsible for regionalsafety management work. Each member company sets up their own Safety and Environmental Protection Department according to theactual needs, with su?cient sta?ng for safety and occupational health management to ensure the e?ective safety management withinthe enterprise.

Production Safety Management System

The Company continuously promotes normalized, standardized and technological management and the improvement of productionsafety. We seriously investigate hidden safety dangers and risks, and implement safety management responsibilities. In 2024, theCompany formulated the “Measures of Tianshan Material for the Management of Production Safety Incidents” and the “Measures ofTianshan Material for the Management of Ecological and Environmental Protection Accidents”. These policies are aimed to optimizethe grading standards for production safety and ecological and environmental protection accidents, standardize accident reportingprocedures, and clarify the accountability rules in case of any administrative penalties. The standards also help foster and enhancesafety awareness at all stages of production, thereby continuously mitigating production safety risks.

The Company works to better secure the implementation of production safety responsibilities andenhance the safety awareness of all employees. In alignment with the principle of “horizontal to theedge and vertical to the bottom”, Tianshan Material signs a letter of responsibility for productionsafety and occupational health goals with its member companies, clarifying the responsibilityof every party involved for production safety. The Company has included contract workersand temporary workers in its unified management. Detailed policies are in place to clarify theresponsibilities of the safety management department, the business management department andthe local management department as a guarantee for production safety.The Company has established a quarterly work meeting policy and a key work scheduling andreporting mechanism for the safety management system of the headquarters and regionalcompanies. In 2024, a total of three quarterly work meetings were held to carry out “monthlyimplementation and quarterly scheduling” for a series of key matters, including the investigationand rectification of hidden dangers of major accidents, the investigation and rectification ofhidden dangers in high-altitude corridors, general managers’ public classes, communication andconversation with cadres, and near incident reporting. In addition, the Company has vigorouslydeveloped CNBMG’s intelligent safety production management system and by the end of 2024, atotal of 279 companies had launched the system. During the reporting period, 322,731 hazardousoperations were reviewed and approved through the system; the AI alert comprehensive responserate reached 100%; 137,570 potential safety hazards were detected; and the rate of safety hazardsdetected and eliminated was 99.81%. In 2024, the Company conducted external safety audits for129 entities in accordance with the “‘1+N+X’ Three-Year Audit Plan for Safety and EnvironmentalProtection”, with a completion rate of 91%. Regional companies and member companies completedinternal audits for 196 entities in total, and started to see the initial results of the audits.

The Company attaches great importance to the implementation of the safety system. In 2024,the Company deployed su?cient safety management personnel to enhance safety management,including 1,540 full-time and 3,704 part-time employees. Among these persons, 779 werecertified safety engineers (124 newly obtained certificates and 45 obtained qualifications foradditional disciplines). In addition, the Company revised the “Measures of Tianshan Material forthe Management of Hazardous Operations”, which dened the key links and processes such asoperational risk identification, control measures, emergency response and monitoring, filling thegaps in the management of hazardous operations. The Company also carried out comprehensivesafety performance assessment in 2024. Jiangxi Cement and Guizhou Cement were assessed fortheir performance and held accountable for substandard items, with a range of safety indicatorsdirectly linked to the performance of these regional companies.In 2024, with the continuous implementation of the standardized production safety managementsystem as the core, the Company further promoted the standardized operation and continuousimprovement of the system. We newly recognized 38 enterprises that had standardized productionsafety management, and had 68 entities passing the due re-assessment, achieving 100%standardized production safety management for production-oriented enterprises.

Production Safety Management Measures

Implement production safety responsibilities

Enhance implementation of the production safetymanagement system

Achieving

100%standardized productionsafety managementfor production-orientedenterprises

The AI alertcomprehensiveresponse rate

100%

Rate of safetyhazards detectedand eliminated was

99.81%

2024 Environmental, Social and Governance ReportEstablishing a New Talent Development Center

The Company organized four safety training courses on the determination of major accident hidden dangers to improve theability of personnel at all levels to investigate and rectify major accident hidden dangers. We invited experts from the Safetyand Environmental Protection Research Institute of China Testing & Certication International Group Co., Ltd. (CTC) to conducttraining on the hidden dangers of major accidents identied in the “1+N+X” safety audit. Meanwhile, the Company has preparedand issued the “Three-Year Action Plan of Tianshan Material for Addressing the Root Causes Endangering Production Safety(2024-2026)”, and organized supervision and inspection actions for the detection and rectication of hidden dangers of majoraccidents, with 100% of the hidden dangers rectified on schedule. In 2024, the Company organized special actions for theinvestigation and rectication of hidden safety hazards in construction projects, limited space operations, high-altitude corridors,and mines, and achieved a 100% on-schedule rectication rate.The Company pays close attention to overseas production safety management, and makes efforts to build a Chinese-foreign integrated safety and environmental protection culture with the Company’s characteristics. In 2024, the Companysaw remarkable improvement in its safety and environmental protection management, the intrinsic safety of production sites,and the safety awareness and skills of employees. This was demonstrated by the achievement of the ve “zero” goals, i.e.zero production safety accidents, zero ecological and environmental protection accidents, zero security incidents, zero newoccupational disease cases, and zero administrative penalty on safety and environmental protection.In 2024, Tianshan Material continued to strengthen safety and environmental protection inspection and research. The work wasdone in a mode of “hearing reporting, checking records, inspecting the site, interviewing the sta?, discussing safety matters, andorganizing exams”, adopting a four-in-one inspection mechanism of “inspection, direction, training and service”. The inspectionand research covered 32 member companies of regional companies, including GUCC and South Cement, aiming to achieve thegoal of “focusing on individuals to drive overall advancement and enhancement”.

Carry out special rectications for safety hazards

Sinoma Cement is highly appraised by the host government for its outstanding performance in health, safety, ecological andenvironmental protection as well as social contribution, greatly improving the overseas brand image of the Company. ChinaNational Building Material Zambia Industrial Park was awarded the “Africa Safety Award for Excellence (AfriSAFE)”, MengxinCompany was awarded the Best Award of “Health and Safety” in Mongolia and the head of the Safety and EnvironmentalDepartment was awarded the “Safety Contribution Award” in Tuv Province.

AfriSAFEfor ZambiaIndustrial Park

Best Award of “Health andSafety” in Mongolia forMengxin Company

“Safety Contribution Award” of TuvProvince to the Head of the Safetyand Environmental Department

Employee health is always our rst priority. The Company has formulated internal policies and regulations to fully guaranteeemployees’ health, such as the “Occupational Health Management System”, the “Personal Labor Protective EquipmentManagement System” and the “Management System of Health and Safety of Related Parties”. In 2024, the Company achieveda 100% coverage of the ISO 45001 Occupational Health and Safety Management System Certification for all entities at alllevels.The Company continues to step up occupational health management. We strictly implement the “three-simultaneous”management of production safety and occupational health for “new, renovation and expansion” projects, ensuring that the safetyand occupational health protection facilities are designed, constructed, put into production and used at the same time as themain project. In response to the occupational health protection initiative, Tianshan Material fullls its principal responsibilitiesas a corporate. This includes continuously improving internal rules and regulations related to workers’ health, strengtheningoccupational health supervision and management, and paying work injury insurance in full and on time, thereby protectingemployees’ health and other rights and interests. In addition, the Company continues to improve its infrastructure. All necessarytechnical measures such as enclosure, spray sprinkling and sound insulation are taken to reduce the intensity of occupationaldisease hazards. E?orts are also made to create for employees a clean and hygienic work and production environment boastingrational layout and well-equipped facilities, to promote the sustainable development of the Company. In 2024, CUCC Juxianwas recognized as a “National Demonstration Enterprise for Safety Culture Construction”. Shanya South, Guilin South, CUCCQingzhou and CUCC Jining passed the re-assessment of “National Demonstration Enterprise for Safety Culture”. HuaikanSouth and CUCC Xichuan were recognized as Winner Companies in the National “Ankang Cup” Competition. The Safety andEnvironmental Protection Office of Chuzhou Huadong Materials and the Electric Team of CUCC Taishan were selected asWinner Teams in the National “Ankang Cup” Competition. CUCC Xintai, Old Town Southwest, Sinoma Hengda and SinomaYunfu were awarded the “Provincial Health Enterprises”.The Company attaches high importance to the prevention and control of occupational diseases. We prevent, control and reduceoccupational hazards in the following ways:

Guarantee employee health and safety

The Company continues to improve the facilities and rst-aid equipment for dust proof, anti-poison, noise reduction and emergency management at production workplaces, while strictlycomplying with the requirements of labor protection to equip employees with work clothes,helmets, safety shoes, gloves, anti-noise earmuffs, anti-dust masks and other protectiveequipment with reliable quality. In addition, the Company requires every employee exposedto occupational hazards to sign the “Occupational Health Notice”, ensuring that they allunderstand the relevant risks and safety measures.

The Company strictly complies with laws and regulations, pays work injuryinsurance premiums for employees every month, and reasonably arranges theworking hours of employees to avoid overworking and safeguard the physical andmental health and legitimate rights and interests of employees.

The Company annually provides a health checkup package for all full-time andoutsourced employees, covering internal medical test, surgical test, eye tests(including the slit lamp exam), E.N.T exam, dental exam and ECG exam. Besides,the Company adjusts the items based on the age and sex of the employees toensure targeted and comprehensive coverage of health checkups.In accordance with the “Law of Occupational Disease Prevention” and the“Regulations on Supervision and Management of Occupational Health”, theCompany regularly organizes occupational disease examinations for employeesexposed to occupational hazards to understand their health condition. Foremployees with occupational contraindications, the Company will arrange atransfer for them. Meanwhile, the Company works with third-party institutionsto regularly detect occupational hazards in the workplace, assess the risk leveland take corresponding measures, to ensure a safe working environment.

2024 Environmental, Social and Governance ReportEstablishing a New Talent Development Center

Tianshan Material places emphasis on the health and safety management of outsourced employees, and applies the sameoccupational safety management standards for them as for internal employees to ensure that they enjoy the same safetyprotection. The Company organizes safety education and training for outsourced employees before they take on the job, andconducts evaluation on their learning results and the safety risks to ensure that the outsourced employees fully understand thepotential risks and safety requirements in the working environment.To ramp up oversight of contractors’ ability of health and safety management, the Company requires each member enterpriseto strictly review the safety management qualication of contractors. At the contract signing stage, the Company incorporatesoccupational health and safety clauses into the contract, and requires contractors to sign the “Safety Agreement” to clarifytheir safety management responsibilities. Before a project starts construction, the unit in charge of the project shall review thesafety certicates, tool lists and other materials provided by the contractor, and then submit the materials to the safety andenvironmental protection department for verication. The construction permit is issued only after the verication is passed. In thisway, we guarantee the health and safety of outsourced employees. If a contractor is found with violations of safety managementregulations, the Company will impose appropriate penalties in accordance with the terms of the “Safety Agreement” to ensuree?ective implementation of safety management measures.The number of work-related fatalities and the lost time injury frequency rate (LTIFR) of the Company and contractors in 2024 areshown in the following table:

Number of work-related fatalities inproduction safety liability accidents(excluding related parties)

Person(s)Number of work-related fatalities (contractors)

Person(s)

Lost time injury frequency rate (employees)

0.0182

Case (s)/ million working hoursLost time injury frequency rate (contractors)

0.0209

Case (s)/ million working hours

The Company continues to advance the construction of intelligent safety system. We have established a regular coordinationmeeting mechanism, and hold bi-weekly meetings on project construction advancement. We also actively promote theconstruction of cement grinding, commercial concrete and aggregate systems. In 2024, the Company completed the constructionof intelligent production safety management system for 146 companies producing commercial concrete and aggregate, 119mines and 68 grinding companies, including five cement kiln companies newly completing the system implementation. TheCompany comprehensively promotes the application of the Group’s intelligent production safety management system, andintensies online inspections. The companies found with deciencies are urged to rectify the problems and address the safetyhazards and violations in a timely manner.Tianshan Material continues to enhance safety management with advanced technologies. We encourage companies to adoptadvanced and applicable safety technologies, and promote the application of new equipment, process and standards forproduction safety. The Company also implements the strategy of “achieving mechanization and automation to reduce humaninvolvement”. Digital and intelligent means are adopted to prioritize prevention and continuously enhance the work of productionsafety.

Enhance safety management with advanced technologies

During the year, the company'semployees invested in safety as follows:

RMB 10,0004,372.42Investment in employees' work safety

liability insurance

RMB 10,00070,601.80Coverage rate of employees' work-related

injury insurance

%96.69Coverage rate of employees' work safety

liability insurance

%41.11

The Company has established a risk identication and assessment mechanism to strengthen risk management and control. Inaccordance with the “Notice on the Recording and Reporting of Near Accidents”, the Company summarized a total of 311 nearaccidents, and prepared, printed and released 10 issues of the “Safety Incident Risk Alert”. Meanwhile, the Company activelycarries out emergency drills. In 2024, our member companies carried out a total of 4,604 emergency rescue drills with 67,540participants. The drills tested the rationality and effectiveness of emergency plans, and enhanced the ability of emergencyresponse teams to handle emergencies, e?ectively improving the emergency management level of the Company.

Build up emergency response capability

To avoid safetyhazards arising fromthe application of newtechnologies andequipment, and properlysolve the contradictionsbetween people,vehicles, facilities andenvironment within thefactory, Aksu TianshanDuolang Cement Co.,Ltd. has established acomprehensive dualprevention mechanismfor hidden hazardsinvestigation and riskmanagement andcontrol in accordancewith the GB/T33000standard. This makesthe Company ademonstrative enterpriseof production safetymanagement in theindustry. The Companyalso uses articialintelligence technologyto identify and monitorrisks and hiddendangers in various typesof production.

Application of intelligent production safety management system at Aksu Tianshan DuolangCement Co., Ltd.Case

Emergency rescue drills with

67,540

participantsOur member companies carried out a total of4,604

emergency rescue drills

In 2024

During the year, the company's employees invested in safety as follows:

2024 Environmental, Social and Governance ReportEstablishing a New Talent Development Center

The Company prioritizes safety culture development. To this end, the Company proactively organizes a variety of safety cultureexchange initiatives and training programs, all aimed at continuously reinforcing employees’ safety awareness. Through regularlysafety knowledge seminars, emergency drills, and case study sharing sessions, the Company strives to educate employees onsafety practices, deepen their understanding of potential safety risks, and improve their ability to respond. Moreover, we activelyencourage employees to engage in the development of safety culture, fostering a collaborative e?ort to build a safe and healthyworkplace.

Production Safety Publicity

The Company keeps fostering a safety culture. We organize related activities during the “Production Safety Month” includingsafety quizzes to enhance employees’ awareness and ability of identifying and preventing safety risks. In the current year,Safety culture development

To enhance production safety and ood prevention e?orts, Huanan Material launched a company-wide production safetymonth under the theme of “everyone aware of safety and able of emergency response - ensuring clear lifeline”. Theinitiative included safety lectures, case studies, hazard identication, and emergency drills. Additionally, the company’sSafety and Environmental Protection Department organized targeted training on safety management for related parties,strictly implementing the “Ten Requirements for Safety Management of Related Parties”. This safety production monthactivities to enhance the safety awareness of all personnel, safety literacy, to lay a solid foundation for safe productionwork; at the same time strengthen the implementation of the responsibility of the relevant parties to manage the work hasachieved substantial improvement, to achieve the goal of creating a corporate safety culture.

Huanan Material’s Production Safety Month to fortify defense lines for safe productionCase

The Company compiled and released a total of 13 issues of the “Safety and Environmental Protection Work Brieng”,introducing the excellent practices of member enterprises in production safety in a bid to drive member enterprises torapidly improve their safety management capability by learning from each other.Based on the common problems, typical industrial accidents and seasonal risk characteristics found during inspections,the Company timely prepared and released 10 issues of “Warnings for Safety and Environmental Protection AccidentRisks” to warn enterprises at all levels to enhance risk control and prevent the presence of accidents.The Company prepared and released “Compilation of Production Accidents in the Cement Industrial” and “ProductionAccident Cases in Commercial Concrete Enterprises”, covering 16 accidents of 379 types. The Company required allmember enterprises to learn a lesson from those accidents and create a stable and favorable environment for safeproduction based on their own conditions.The Company has established the “zero violation” feedback mechanism to encourage employees to engage in safetymanagement. In addition to the mechanism, the Company also promoted the safety culture through safety talks andthe public safety lecture by the general manager. In this way, our employees have changed their mindset from “pursuesafety for the sake of requirements” to “pursue safety for the sake of ourselves”.

The Company places utmost importance on production safety and risk prevention training. We have established a “level-,category- and personnel-based” mechanism for safety and environment protection training. Moreover, we continuously enhanceemployees’ safety knowledge through the approach of “mandatory examination and training through examinations”.

Safety publicity

To strengthen the demonstrative and supervisory role of “key personnel” in enterprise safety management, HuadongMaterial partnered with the CTC Safety and Environmental Protection Science Research Institute to provide comprehensivetraining for 120 key safety personnel from the company and its external partners. The training covered legal and regulatoryrequirements, hazard identification and risk grading and control, dangerous operations, and emergency response toaccidents. Additionally, Huadong Material organized hands-on practical training sessions during inspections of key facilitiesat the Suzhou site, including the 10kV power room, transformer room, mixing building, and dock. This comprehensivetraining program enhanced the safety knowledge and hazard detection capabilities of the key personnel. It also deepenedtheir understanding of the importance of production safety responsibilities.

Huadong Material’ Suzhou Commercial Concrete Operating Platform – Key personnel safety skillsenhancement programCase

To enhance company-wide safety awareness, AksuTianshan organized a specialized examination throughits intelligent production safety management system. Theexamination featured role-specific questions, enablingemployees to master knowledge relevant to theirrespective positions. This initiative aimed to enhanceemployees’ grasp of production safety knowledge,empowering them to integrate safety knowledge into theirdaily operations and ensuring the practical transformationand utilization of this knowledge.

Company-wide safety and environmental examination initiative at Aksu Tianshan Case

“Safety director talksabout safety” initiative

Certied safety engineertraining program

Adjustment of safety andenvironmental expert pool membersA total of 335 participants engaged ina training and teaching competition,with 50 outstanding safety andenvironmental internal trainersrecommended from regionalcompanies. One specialized trainingsession for internal trainers wasconducted, aimed at cultivating a high-caliber internal trainer team.

Two sessions of the certied safetyengineer training program weresuccessfully held, with a total of278 participants. These programse?ectively enhanced the expertiseof professionals in the eld ofenvironmental safety management,thereby strengthening the Company’stechnical foundation in environmentaland safety management practices.

To fully leverage the technicalsupport and innovative contributionsof specialized talent in safetyand environmental initiatives, theCompany dynamically adjusted thesafety and environmental expert poolin accordance with the “TianshanMaterial Safety and EnvironmentalExpert Management Policy”. Currently,the pool comprises 69 safety expertsand 38 environmental experts.

2024 Environmental, Social and Governance ReportDriving a New Journey of Co-creating Social Value

2024 Environmental, Social and Governance ReportDriving a New Journey of Co-creating Social Value

2024 Environmental, Social and Governance ReportDriving a New Journey of Co-creating Social Value

Tianshan Material places a strong emphasis on law-based governance. The Company has established and improved amanagement system that ensures compliance operations and lawful governance. By steadfastly upholding business ethics andstrengthening information security measures, the Company ensures that compliance e?orts are e?ectively implemented.

Tianshan Material consistently adheres to lawful and compliance operations, striving to build an efficient compliancemanagement system supported by comprehensive policies. The Company reinforces compliance publicity and ensuresthat compliance measures are rmly grounded in practice. To this end, the Company has developed a compliance manual,specifying the key compliance obligations and requirements of the Company, management and employees regarding corporategovernance and operations, investment and development, human resources, nance and assets, trade secret protection anddata security, intellectual property, business partners, procurement management, anti-commercial bribery and anti-corruption,mining compliance, production safety, quality management, environmental protection management, marketing management,anti-monopoly and anti-unfair competition, and overseas business management. In addition, the Company has issued a seriesof supporting compliance policies in terms of internal audit, risk management, condentiality, and information security. Thesepolicies provide clear compliance requirements and guidelines, ensuring that all actions are rule-based and violations aree?ectively prevented. In 2024, the Company revised the “Compliance Management Measures” and formulated and improvedthe “Compliance Risk Identication List”, the “List of Key Job Responsibilities” and the “Business Process Control List”, coveringthree major business modules (cement, commercial concrete, and aggregates as three specific areas, and one generalfunctional category) at three levels. The content includes, but is not limited to, sources of compliance obligations, non-compliantbehaviors, and consequences of non-compliance.

Compliance Management

Modernized Governance

The Company has established the Rule of Law Construction WorkingOrganization and the Compliance Management Committee. These twoorganizations carry out the construction of the central enterprise under the ruleof law and compliance management. We ensure the implementation of theresponsibility of the first person responsible for the rule of law construction.In the decision-making process, the Company has set the review of legalcompliance as an essential pre-procedure and “one vote veto” for all violations,and requires the Compliance Management Committee to fully perform itsfunction. Additionally, the leadership of the Company and its subsidiaries hastaken the lead by signing the “Compliance Commitment”, setting an exemplarystandard and actively fullling their compliance pledges. This year, TianshanMaterial signed a total of 29,858 copies of the “Compliance Commitment”.The Company has three lines of defense against potential compliance risks, consisting of business departments, functionaldepartments and supervision departments, in a bid to fully carry out compliance management:

Tianshan Material signed a total of29,858

copies of the“Compliance Commitment”

Business departments ofthe Company and memberenterprises, which identify,assess, control, collect andreport risks in operation andbusiness, and make timelyrectications.

The Legal ComplianceDepartment, which performsthe internal control andcompliance of businesslines through businessmanagement, supervisionand inspection and organizesother departments forrectication.

The Disciplinary InspectionDepartment, Audit Department andother related departments, whichsupervise or urge enterprises tomake timely rectication to theidentied issues and investigaterisk incidents that have resulted inlosses and enforce accountabilityaccording to rules.

The rst

line ofdefense

Thesecondline ofdefense

The thirdline ofdefense

This year

We remain unwavering in our dedication to upholding business ethics and operating at a higher standard of integrity. We strictlyadhere to laws and regulations related to anti-unfair competition, anti-monopoly, anti-bribery, extortion, fraud, and moneylaundering. We continue to deepen systematic management, optimize diversied oversight and auditing, and improve complaintand whistleblowing mechanisms. These e?orts aim to foster a work environment characterized by integrity and self-discipline.This year, there were no reported incidents of commercial bribery or corruption.The Company has formulated and published the “Code of Business Conduct” and “Anti-Corruption Policy” for all full-time, part-time and outsourced employees. The two policies cover many aspects, including corruption, bribery, discrimination, informationcondentiality, conicts of interest, antitrust/anti-competition, money laundering and/or insider trading, reporting, environment,health and safety. The “Anti-Corruption Policy” is also applied to all stakeholders that have business with the Company and allsubsidiaries. It clearly forbids briberies in the form of kickback, donation, sponsorship, political contributions or any other illegaland improper payments.The Company integrates the “Code of Business Conduct” into employees’ performance assessment, which is directly connectedto their salary and promotion. We hold a “zero-tolerance” attitude to any violation of business ethics. Any employees who aredirectly or indirectly involved in violation of the “Code of Business Conduct” are subject to administrative punishment includingwarning, record of demerits, demotion, removal and dismissal based on the severity of violations, with their salaries deducted inaccordance with the company-related system. Moreover, the employees are disqualied for promotion and any award nominationduring the e?ective period of disciplinary action.We also require all suppliers to sign the “Integrity Commitment”. Once we are aware of a supplier’s violation of business ethicsincluding corruption, we will impose punishment, such as request for correction, suspension of business, elimination of businessand inclusion in the “blacklist of partners” in accordance with national laws and regulations and internal rules. We have establishedstrict management process regulations for supplier access, inspection, performance audit and withdrawal management to improvethe standardization and transparency of the procurement process. Meanwhile, the supervisory department of the Companyassists business departments in supervision of bidding and other processes to ensure that employees of both parties conform tothe “Code of Business Conduct” and protect the legitimate rights and interests of both parties.

The Company integrates compliance management into development strategies and annual plans and incorporates complianceperformance into the performance evaluation system. Employees who adhere to behavioral standards and compliance regulationsare recognized, while violators face appropriate penalties. By doing so, we incentivize employees to actively uphold compliancerequirements.Tianshan Material and its subsidiaries have established a robust compliance training mechanism. The Company holds quarterlyand semi-annual compliance meetings, along with specialized general counsel meetings of the two-tier headquarters, to guidelegal compliance e?orts across subsidiaries. Training sessions on compliance management, compliance management systemdevelopment, overseas compliance, intellectual property management, dispute management, policy interpretation, and legalcompliance reviews of major decisions are provided to enhance employees’ compliance awareness and risk identificationcapabilities. Furthermore, the Company has established multiple communication channels, including regular meetings, OA, andcorporate WeChat. These channels facilitate employee inquiries on compliance issues, reporting of violations, and submission ofimprovement suggestions, thereby fostering the dissemination and exchange of compliance culture. This year, Tianshan Materialand its subsidiaries conducted various compliance training sessions, involving 20,218 participants.

Business Ethics

Fullling tax obligations in accordance with the law is the most fundamental social responsibility of enterprises. As a responsibleglobal corporate taxpayer, Tianshan Material adheres to international tax regulations in its global transactions and fullls reportingand tax payment obligations as stipulated by both domestic and international laws. We have publicly disclosed our “Tax PolicyStatement” on the Company’s o?cial website (For details, please see http://www.sinoma-tianshan.cn). By actively enhancingour tax management system, establishing tax management policies and standards, and implementing supporting tax-relatedprocesses, we ensure that the Company’s tax management operations are conducted in a standardized, orderly, and e?cientmanner.

Tax obligations

2024 Environmental, Social and Governance ReportDriving a New Journey of Co-creating Social Value

The Company conducts regular integrity culture promotion activities in forms such as lectures, specialized training sessions, andcase studies to educate and train all employees. These initiatives are designed to consistently foster a culture of integrity andestablish clear boundaries to reinforce ethical awareness.Integrity training for all employees

Integrity training

We have opened e?cient channels for reporting violations of business ethics. We encourage our employees and partners toreport any actual or suspected violations of the “Code of Business Conduct” through telephone, email, visit, mail and othermeans. Once receiving the reporting, the disciplinary inspection department analyzes the reported case and assigns the case tothe appropriate responsible department based on the ndings.We place a high priority on the protection of whistleblowers and reporting content. In accordance with the “Rules for ProtectingWhistleblowers and Accusers by the Central Commission for Discipline Inspection of the Communist Party of China and theMinistry of Supervisory of the People’s Republic of China”, we spare no e?ort in safeguarding the security and condentiality ofwhistleblower information and forbid any forms of reiteration and framing on the whistleblower. By doing so, we strictly protectthe privacy and lawful rights of whistleblowers.

Reporting channels

We guided them to fasten the “first button” of integrity - have the awareness ofintegrity and adhere to the principle of integrity when working.We supervised and urged them to fulfill their double duties of their positionsand integrity building to carry out the Party management and governance. Werequired them to be aware of responsibilities, shoulder responsibilities and fulfillresponsibilities to put their organization under sound management.We regularly organized integrity training for employees in purchase, finance andother important positions and revealed integrity risks in business. We remindedbusiness employees to constantly hold the discipline principle and conscientiouslyresist corruption to remain undeled.

For new joinersFor responsible

persons

For employees inimportant positions

●We hosted a company-wide conference on promoting integrity and combating corruption. Activitiesincluded watching educational lms, conducting case studies, and signing the “Integrity and Anti-Corruption Responsibility Agreements”.

●We organized integrity lectures to share essential requirements and regulations for upholding integrityin the workplace.

●We conducted targeted training sessions on “Four Malfeasances” and the CPC Eight-point Decisions.The training provides comments and suggestions on meals, accommodation, courtesy and otheraspects in the light of the problems identied in the daily inspections.

●We held the warning conference to share the typical cases handled by the disciplinary inspectioncommittees at all levels and give warnings.

●We shared cases on the OA discipline inspection platform, which garnered over 103 thousand views.

Highlights of this year’s training initiatives

The Company emphasizes on the timely reporting and resolution of information security issues. To ensure this, multiple feedbackchannels and a rigorous handling process have been established. If an employee nds an information security issue, he/she canreport it to the Digital Department through internal OA, email, WeChat, telephone and other means. Upon receiving a report, theDigital Department conducts an initial verication and investigation on the issue. If the department conrms it is an informationsecurity issue, the department will take corresponding measures. If the issue can’t be handled in a short time, the departmentwill initiate the emergency plan. After the issue is handled, the department will feed back the result to the reporter and record theissue. This year, there were no reported data security incidents or breaches of customer privacy.

To prevent the information technology system interruption or cyber attacks, we have established emergency response plansfor information and cybersecurity events. We also test whether the emergency response plans work every year. We regularlyengage a third party to scan the security vulnerabilities of our information technology system. Then, we improve presentsafety strategies and processes based on the safety risk report provided by the third party to strengthen our information andcybersecurity management. We have obtained the certication of cybersecurity protection III, and get timely re-certication asrequired. Upon reassessment, Tianshan Material has conrmed that ve core systems that meet the second-level requirementsin the national classied cybersecurity protection testing and evaluation.

Information security feedback and handling

Third-party evaluation

The Company has established the “Tianshan Material Network Security and Information Security Management Policy”. Thepolicy is formulated to strengthen the management of network security and information security across Tianshan Material andits subsidiaries at all levels, thus ensuring the stable operation of network systems and the security of information data. TheCompany also established the Cybersecurity and Informatization Working Group. The chairman of the Company is the teamleader and the president and the vice president in charge of the digital department are the deputy leaders. The Chief DataO?cer (CDO) and the deputy general managers in charge of business departments are team members. We have establishedthe responsibility system of information security management. The system claries the responsibilities of information securitymanagement positions, including network administrator, system administrator, database administrator and safety administrator.We have also included the number of information security and cybersecurity incidents into the annual KPI assessment ofemployees of the digital department. By doing so, we have strengthened their attention to information security and cybersecurityand further improved our prevention and control over the risks of information security and cybersecurity.The Company employs advanced information security technologies to comprehensively protect privacy and data security. Wehave implemented data encryption, firewalls, and Intrusion Prevention Systems (IPS) to significantly enhance the defensecapabilities of our network environment. To ensure the ongoing security of our systems and software, we regularly conductupdates and upgrades for systems and software. This has promptly patched known vulnerabilities and mitigated potentialrisks. In pursuit of enhanced information security management, we have also established stringent information segregationmechanisms and implemented precise access control strategies. These mechanisms e?ectively isolate sensitive informationfrom routine operations and ensure that only authorized users can access specic sensitive data, thereby greatly improving dataprotection capabilities.Furthermore, we perform regular comprehensive security audits and monitoring for information systems, ensuring their securityand integrity. Through these activities, we can promptly identify and address potential security threats and vulnerabilities, andswiftly implement targeted measures for repair and optimization.This year, Tianshan Material actively participated in the national cybersecurity initiative and organized cybersecurity trainingsessions. As a result, we have further strengthened our cybersecurity awareness and capabilities, and better safeguardednetwork security.

Information Security

2024 Environmental, Social and Governance ReportDriving a New Journey of Co-creating Social Value

Staying committed to building an e?cient and sustainable supply chain, Tianshan Material collaborates with partners to advancesustainability strategies, aiming for mutual benets while creating positive impacts for society and the environment. We haveformulated and published the “Supplier Code of Conduct” and “Sustainable Supply Chain Management Policy” for all suppliers.We require all suppliers to fulll their commitment to employees’ rights, environmental protection, risk management and otheraspects. We are committed to continuously optimizing supplier management and fully advancing the development of a green,low-carbon supply chain.

The Company has established a three-tier management structure for suppliers comprising headquarters, regional companiesand member enterprises. We also conduct on-site reviews of our suppliers on an annual basis, and are committed to building acompetitive and sustainable product supply chain.

Supplier Management Structure

Responsible Procurement

●Formulate and publish the supplier management measures and supervise theimplementation; establish the lifecycle management mechanism, covering supplierregistration and access, performance evaluation and elimination.

●

Establish and improve the supplier evaluation system; establish the evaluationstandards and process; regularly evaluate suppliers of the materials collectivelypurchased by the headquarters.

●Conduct qualication review and access assessments of suppliers of the materialscollectively purchased by the headquarters, organize on-site inspections andevaluations of new suppliers by relevant personnel, and select qualied suppliers.

●Establish and maintain the database of suppliers, including potential supplierdatabase, potential qualied supplier database, qualied supplier database andineligible supplier database.

●Comprehensively manage suppliers of material procurement, logistics services, andother services, and formulate corresponding procurement strategies and managementplans.

●Coordinate and instruct the supply chain management departments of regionalcompanies and member enterprises.

Supply chainmanagementdepartment of theheadquarters

●Develop more detailed supporting management measures according to the suppliermanagement measures of the Company headquarters.

●Conduct qualication reviews and access assessments of suppliers, organize on-site inspections and evaluations of new suppliers by relevant personnel, and selectqualied suppliers.

●Establish and maintain the database of suppliers in the region, including potentialsupplier database, potential qualied supplier database, qualied supplier databaseand ineligible supplier database.

●Evaluate suppliers of the materials collectively purchased by regional companiesregularly, manage them based on evaluation results and ratings, and rene thesupplier database of regional companies.

●Be responsible for the management of material procurement, logistics services,and other service suppliers in the region, and formulate corresponding procurementstrategies and management plans.

●Implement the supplier management systems of Tianshan Material’s headquartersand regional companies.

●Be responsible for the management of the enterprise’s material procurement, logisticsservices, and other service suppliers, and formulate corresponding procurementstrategies and management plans.

●Establish, maintain the enterprise’s supplier database, and ensure timely updates andmaintenance of the data.

●Evaluate cooperative suppliers regularly and manage them based on evaluationresults and ratings.

●Participate in supplier evaluation and sourcing e?orts of Tianshan Material’sheadquarters as needed.

Supply chainmanagementdepartments ofregional companies

Supply chainmanagementdepartments ofmember enterprises

2024 Environmental, Social and Governance ReportDriving a New Journey of Co-creating Social Value

By incorporating ESG-related requirements into the supplier lifecycle management, the Company denes ESG managementrequirements for the processes of supplier access, cooperation, review, and exit. This approach aims to identify, assess, andmanage environmental and social risks throughout the supply chain.

Review and analyze the compliance qualications of suppliers to assess whether they comply with therequirements of the Company’s “Supplier Code of Conduct”;Review suppliers’ production equipment, qualifications, certificates and other relevant documents bymeans of remote video or on-site verication to ensure that they satisfy the Company’s standards;Collect and analyze suppliers’ ESG reports, encourage suppliers to provide certication results such asISO 45001, ISO 9001, and ISO 14001 certication, to evaluate suppliers’ ESG performance. The Companygives priority to suppliers with better ESG performance when they perform similarly in other areas.Require suppliers to strictly adhere to environmental standards, human rights (including respect foremployee rights, anti-discrimination, anti-harassment, prohibition of forced labor and child labor, andprotection of vulnerable groups), working conditions, compensation, health and safety, and business ethics.Conduct rigorous assessments of suppliers’ green production and energy-saving capabilities, includingbut not limited to evaluating the compliance of their production processes with environmental standards,the adoption of energy-e?cient methods in production, and the implementation of e?ective environmentalmanagement systems; and dene the percentage of system certication scores in sourcing documentation.

Supplier Lifecycle Management

Accessprocess

Sign “IntegrityCommitment” with allsuppliers to clearly denethe standards of integrity

and codes of conductbetween both parties.Supervise and reviewthe signing of “IntegrityCommitment” to ensureall suppliers’ strictcompliance with therelevant regulations andmaintain the integrity ofthe supply chain.

Cooperationprocess

Terminate thecooperation withsuppliers whostill fail to meetthe Company’sminimum ESGrequirements afterrectication.

Exitprocess

Conduct level-and category-based assessments oncooperative suppliers; conductsustainability risk assessments

for key suppliers annually inaccordance with the Company’s“Supplier Management Measures”and “Supplier Code of Conduct”;

develop rectication andimprovement plans for supplierswith high sustainability risks (such

as those with potential laborissues, high energy consumption,and integrity concerns), and followup their subsequent progress.

Reviewprocess

To ensure supply chain continuity and resilience against emergencies and market changes, while maximizing the protection ofthe Company’s reputation and nancial interests, the Company has developed a comprehensive risk management frameworkcovering all aspects of the supply chain. The Company has established a specialized team dedicated to supply chain riskmanagement. This team regularly organizes training sessions for employees, focusing on enhancing their awareness andresponse capabilities to various risks. By doing this, the team ensures that risk management practices remain e?ective andtimely.

Supplier Risk Management

suppliers that received responsibility assessment and review

8,518suppliers sustaining long-term cooperation with the Company10,747suppliers that passed quality management system certication5,258suppliers that passed occupational health and safety management system certication5,258suppliers that passed environmental management system certication5,258suppliers that passed energy management system certication

5,258key suppliers that passed the online/on-site assessment8,518key suppliers assessed as having signicant actual/potential negative impacts

key suppliers with rectication plans implemented

key suppliers with signicant actual/potential negative impacts who have been terminated from cooperation

A robust mechanism has been developed for identifying and dening potential risks in the supply chain, includingrisks related to suppliers, natural disasters, political instability, and other factors.

Risk assessments of key suppliers are conducted. For this purpose, a supplier risk assessment system has beenestablished, and the supply chain’s operational status is continuously monitored to promptly identify potential issuesand take appropriate measures.

Risk identication and denition

Risk assessment and monitoring

Driving a New Journey of Co-creating Social Value

Additionally, the implementation of supply chain risk management strategies and measures has continuously reduced the riskof supply chain disruptions. This has not only improved the reliability and stability of the supply chain but also enhanced itsadaptability and exibility in the face of emergencies and market changes.

The Company actively promotes ESG improvements among suppliers and is committed to building a green supply chain. Tothis end, the Company has taken a series of measures to help suppliers better understand and practice ESG concepts, and toenhance their management and practice capabilities.The Company provides comprehensive ESG training and information support to help suppliers systematically understand thecore content and requirements of ESG management through professional training materials. The Company also keeps suppliersregularly updated on the latest trends and practice cases in the building materials industry to enhance their awareness andattention to ESG. In the year, the Company developed an ESG scorecard for self-assessments and reviews of core suppliers,helping them clearly understand their performance, and identify strengths and weaknesses. Based on the assessmentresults, the Company provided targeted suggestions to motivate them to make improvements. The Company also providedcomprehensive technical support to suppliers, including technical consulting, technology transfer and sharing, and joint R&Dand innovation. This support aims to enhance suppliers’ technical capabilities and ESG performance, thereby promoting thesustainable development of the supply chain. These measures help improved the ESG management level of suppliers andpromoted the sustainable development of the entire supply chain, demonstrating the Company’s leadership in this industry.This year, a total of 1,622 key suppliers participated in capability building programs, with the training covering 28.37% ofsuppliers.

Supplier Capability Development

To effectively improve the efficiency of accounts payable payments, we have developed a detailed strategy. Firstly, we willcategorize and assess the urgency of each payment to determine appropriate payment deadlines and schedules. Secondly,based on the Company’s current cash ow, we will prioritize payments to ensure timely settlement of the most urgent accountspayable. Lastly, for payments that may not be made on time, we will actively negotiate with suppliers to explore feasiblesolutions, such as deferred or installment payments. The Company had no outstanding payments due to SMEs that that neededto be disclosed to the public through the National Enterprise Credit Information Publicity System.

Protection of suppliers’ rights and interests

Multiple suppliers are selected to reduce dependency on any single supplier, thereby minimizing the risk of supplychain disruptions due to the failure of a single supplier. The Company has built a diversied supply chain systemthrough strategic cooperation with large state-owned enterprises. By integrating the “Wo Zhao Che” platform withinthe Group and upstream and downstream industries, such as Nanjing Fiberglass Research & Design InstituteCo., Ltd., the Company has optimized key resources, while extending and strengthening the industrial chain. Thisintegration has also introduced competitive enterprises, further enhancing the robustness of the supply chain system.

The supply chain’s resilience has been bolstered through our optimized logistics network, increased inventory levels,and robust backup plans. These measures enable the supply chain to remain stable against external shocks andquickly return to normal operations

Diversication of suppliers

Resilient supply chain development

The Company is committed to establishing long-term, stable, mutually beneficial and win-win business partnerships withcustomers. In the year, continuous efforts have been made to optimize product quality, and strengthen intellectual propertyprotection. We actively listen to our customers and continuously enhance our products and services by collecting and analyzingtheir feedback. This commitment helps us build a more robust and reliable product and service network, providing solid supportfor the Company’s long-term sustainable development.

Tianshan Material is committed to providing customers with high-quality and high-standard products and services. By settingstringent requirements for product quality while improving the e?ciency and precision of quality management with informationand intelligent technologies, the Company enhances product competitiveness and maintains the leading position in the industry.The Company adheres to the principles of “improving quality and e?ciency, embracing optimization and upgrade” and deeplyimplements a development strategy that centers on quality. To this end, we have developed and implemented a series ofrules and regulations, such as the “Quality Management Measures” and the “Product Quality Supervision and ManagementMeasures”, to ensure standardized and effective quality management. In terms of the commercial concrete business, theCompany has further rened the quality management requirements and established a series of specialized policies, includingthe “Technology and Quality Management Measures of Commercial Concrete Business”, the “Inspection and Evaluation Outlinesfor Basic Technology and Quality Management of Commercial Concrete Business”, the “Quality Management Measures forRaw Materials of Commercial Concrete Enterprises”. These documents clearly stipulate the technical requirements, productionprocesses, and raw material management of commercial concrete products. Moreover, the Company has established acomprehensive system for the retention of quality les. To maintain product quality, the Company implements stringent measuresto tackle quality issues or incidents. Should such events arise, a thorough investigation is launched to identify root causes andhold responsible parties accountable under established regulations, ensuring ongoing product quality enhancement.Fully embracing the ISO 9001 quality management system, the Company conducts regular sampling inspections of productsfrom its subsidiaries, and continually assesses and updates relevant standards based on the analysis of sample performanceindicators, as well as market trends, customer needs, and inspection results. Furthermore, for issues and shortcomings identiedduring inspections, we promptly rene our quality improvement measures. All of these e?orts are aimed at boosting the qualityand market competitiveness of our cement products. In 2024, the Company achieved a 100% comprehensive cement productpass rate, a 100% pass rate for national-level sampling inspections of main business products, a 100% pass rate for mainbusiness products submitted for inspections. No major liability incidents related to safety and quality of products and serviceshave occurred.

Product Quality Guarantee

Customer Relations Management

China United Cement Tai’an Corporation (CUCCTai’an) launched a fully automated laboratory project tobuild an intelligent quality control system. This systemestablishes a quality model that tracks the entire materialflow, from raw materials to finished cement, using bigdata to optimize plant-wide control. It enables rapid andaccurate testing based on data from the automated laband online analyzers, thereby improving testing e?ciencyand accuracy. The system also automatically recordsand stores test data, and generates standardizedreports without manual intervention, streamlining datamanagement and auditing.

CUCC Tai’an intelligent control system achieves quality improvement goalsCase

2024 Environmental, Social and Governance Report

2024 Environmental, Social and Governance ReportDriving a New Journey of Co-creating Social Value

Strengthening the protection of intellectual property is crucial for driving product innovation and solidifying customer trust. The Companysystematically analyzes and identies the risks associated with intellectual property, and develops corresponding risk managementstrategies and countermeasures to keep risks identied always controllable, governed, and tolerable. For trademark management, theCompany has established a trademark information database and implemented comprehensive measures to manage all aspects of thetrademark, including trademark registration, trademark maintenance, trademark licensing, trademark disposal and trademark protection.Moreover, the Company has also formulated assessment and accountability mechanisms. Meanwhile, the Company continues torene the “Trademark Management Measures” to protect intangible assets like the Company’s trademarks and enhance trademarkmanagement.The Company continues to increase the investment in technological innovation, driving high-quality development through technologicalinnovation. In the year, the Company accumulatively held 4,261 valid patents (including 3,423 utility model patents and 501 inventionpatents), and successfully registered a total of 337 software copyrights. Among them, Sanshi Material obtained the design patent for theindependently developed Sealed Sampling Container for Concrete Raw Material Inspection from China National Intellectual PropertyAdministration; Sinoma Yunfu successfully applied for two patents, i.e. “Anti-Blocking Mechanism for Bucket Elevator” and “Bag InsertionDevice for Cement Production Packaging Machine”.

Upholding the “customer-oriented” service philosophy, the Company has formulated internal policies such as the “Customer RelationshipManagement Measures for Cement Business” and the “Customer Complaint Management Process Manual”. These documents clearlyoutline the handling process for customer complaints, including complaint channels, complaint receiving and registration, analysis andcategorization, formulation and implementation of complaint resolution, and tracking and feedback of complaint handling results, forminga closed-loop management covering the customer complaint collection, response, processing, feedback and tracking of handling results.This ensures that the Company can respond swiftly to customer complaints and provides timely responses, thereby enhancing customerservice e?ciency.For handling customer complaints, the Company actively facilitates access to service inquiries through multiple channels, includingthe 400 hotline, email, and the Internet+ customer management platform. Complaint types are categorized into quality, packaging,measurement, shipment service, sales personnel service, and ow direction complaints. Within 24 hours upon receiving a complaint, thecomplaint coordinators will work with relevant departments to verify the complaint, and propose solutions and emergency responses.They will also track the implementation and e?ectiveness of the complaint handling process.For customer satisfaction, the Company partners with third-party agencies to conduct annual satisfaction survey. The survey isconducted anonymously. The survey covers various dimensions such as overall satisfaction, product quality, packaging quality, deliveryservice, technical service, sales personnel service, settlement and payment convenience and complaint handling. In the year, the surveycovered 97% of our customers and our customer satisfaction reached 95%, 1 percentage point higher than the previous year.

Intellectual Property Protection

Voice of Customers

Satisfaction survey (Point)

9.64

2022

9.73

2023

9.77

2024

Company accumulativelyheld

4,261 valid patents

3,423

utility model patents

inventionpatents

Successfully registered atotal of

softwarecopyrights

In the year

Adhering to the principles of openness, sharing, friendship, and mutual assistance, the Company actively fulfills its socialresponsibilities through concrete actions. We actively participate in industry exchanges, contribute to rural revitalization, andengage in public welfare activities. We also integrate social responsibility into our corporate strategy and daily operations,striving to achieve synchronous progress in both corporate growth and the fulllment of social responsibilities.

Tianshan Material consistently maintains an open and collaborative approach, seeking mutual benets and win-win outcomes.The Company collaborates with government organs and peer companies to share resources and complementary strengths,and proactively explores new pathways for technological innovation and product upgrading, thereby driving the high-qualitydevelopment of the cement industry.

Industry Communication and Cooperation

Responsible Business Operations

To accelerate the green and low-carbon transition andenhance the utilization and recycling of waste gas, TianshanMaterial, together with Farizon Transport under GeelyCommercial Vehicle Group paid a visit to Henan ShunliAlcohol Hydrogen Energy Technology Co., Ltd., a subsidiaryof Henan Shuncheng Group, for exchange on innovationachievements. Through visits and inspections, TianshanMaterial learned about the methanol production process andcarbon dioxide capture technology. This visit also includeddiscussions on carbon dioxide capture and disposal, storageand transportation, high-value utilization and recycling,and the pilot operation of methanol vehicles in sand andgravel transportation scenarios. This visit promoted thecommunication and sharing of innovative technologies withinthe industry and expanded opportunities for cooperationamong industry players.

In September 2024, Tianshan Material received leadersand researchers from Shenwan Hongyuan Securities Co.,Ltd. for an in-depth discussion on carbon trading, industrydevelopment, and business management in the cementsector. Based on the current carbon emission situation incement production, they jointly discussed energy-savingand carbon-reduction technologies and explored the long-term impact of carbon trading in the cement industry. As thecement industry was set to be included in the carbon tradingmarket, this symposium aimed to identify the industry’scarbon emission situation, enhance awareness and attentionto carbon emissions among industry players, promote theinnovation and application of carbon reduction technologies,enhance the industry’s strength to respond to the carbontrading market, and facilitate the industry’s green and low-carbon transformation.

Tianshan Material - communication with customers

Tianshan Material - communication with experts

Case

Case

2024 Environmental, Social and Governance ReportDriving a New Journey of Co-creating Social Value

In the year, Tianshan Material and its subsidiaries earnestly fulfilled social responsibility through actively engaging in 34assistance projects in local communities and villages where operations were carried out. To enhance the quality of life for localresidents and create more development opportunities, the Company continuously carried out rural revitalization projects. Theseprojects covered several key areas, including strengthening infrastructure construction, providing educational support, andaddressing agricultural product sales bottlenecks. Through these e?orts, the Company e?ectively promoted the socio-economicdevelopment of the assisted areas.

Rural Revitalization Initiatives

Number of counties receiving targeted assistance for rural revitalization:

; number of townshipsreceiving targeted assistance for rural revitalization:

; number of villages receiving targetedassistance for rural revitalization:

; total assistance funds: RMB

2,284.4

thousand,of which direct invested funds: RMB

1,767.4

thousand, introduced funds: RMB

thousand, and consumption assistance funds: RMB

thousand;Number of organizations receiving targeted assistance for rural revitalization:

; total amount ofagricultural products from poverty alleviation areas that are sold with the assistance of the Company:

RMB 4,836.8

thousand; provincial or ministerial awards:

; municipal awards:

.

In October 2024, Jiahua General Cement Factory of Jiahua Special Cement Co., Ltd. donated 50 tonnes of M32.5bagged cement, valued at RMB 13.5 thousand, to Jiangcun Village, Hulu Town, Shawan District, Leshan City,Sichuan Province. The donation was used for the construction of local rural roads. The donation alleviated thematerial shortage in local infrastructure construction, improving travel conditions for villagers. It also contributed tothe development of a better support service system and a more convenient transportation environment, both crucialfor rural economic development.

Jiahua Cement - support in infrastructure construction for rural revitalizationCase

In the year:

Infrastructure constructionproject for rural revitalization in

Jiangcun Village, Hulu Town,Shawan District - road paving

To implement the rural revitalization strategy andfurther promote the “Hundreds of EnterprisesHelping Hundreds of Villages” initiative, HamiTianshan has played a key role in leadingcorporate efforts to support rural revitalization.To help farmers in Taojiaguan Village toovercome the difficulty of selling watermelons,the company’s trade union purchased 3.1 tonnesof unsold watermelons and used them for heatstroke prevention and cooling at operation sites.This action, as part of the company’s efforts toadvance rural revitalization, promoted the sale ofagricultural products and drove the developmentof rural featured industries.

Hami Tianshan – “Leading Corporate E?orts to Support Rural Revitalization”Case

Yunnan Cement has persistently upheld and expanded its distinctive support models, continuously exploring andinnovating ways to deepen targeted support e?orts.

Through these diverse initiatives, Yunnan Cement has promoted cultural co-construction, using cultural revitalizationto drive rural revitalization. In this way, the company has continuously deepened the assistance effectiveness,making signicant contributions to the local economic development and social progress.

The company conducted Party building and co-building activities, established libraries andactivity rooms, and boosted the development of the beef cattle and kiwifruit industries.The company’s Party Committee Secretary made eld visits to the assistance projects toadvance industrial support, including mining resource development.The company have dispatched volunteers to provide educational assistance and renovatekindergarten facilities for six consecutive years.The company o?ered consumption support by purchasing agricultural products andorganizing trade union activities.

Yunnan Cement - innovative ways to support rural revitalizationCase

2024 Environmental, Social and Governance ReportDriving a New Journey of Co-creating Social Value

Tianshan Material has continuously organized volunteer teams to carry out various public welfare activities, including blooddonation, caring for poor children, visiting lonely seniors, and providing convenience services. These activities represent theCompany’s concrete e?orts to deliver love to the society. In 2024, the Company donated RMB 32 million to Shanjian PublicWelfare Special Fund of China Volunteer Service Foundation, which was used for poverty alleviation, volunteer teaching,employee care, volunteer service and other public welfare elds. Member enterprises actively took part in local social welfareactivities in a coordinated manner, with a total donation of about RMB 42,855.3 thousand throughout the year. In particular,cement, ready-mixed concrete, limestone and other physical objects for the construction of public and social security equipmentand facilities, equivalent to about RMB 6,540.6 thousand, were donated based on the industry characteristics. These measuresreected the Company’s proactive commitment to social responsibility and its contributions to social development.

Public Welfare Activities

Yulong Tongli adheres to the core values of socialismand encourages “righteous deeds”. In a concerted e?ortto promote police-business cooperation, the companydonated RMB 50 thousand to the Queshan CountyPolice Association. This donation will be used to rewardoutstanding cases of “righteous deeds”, further raisingpublic awareness of righteous deeds and jointly promotingsocial harmony and public safety. Such action hasdeepened the cooperation between Yulong Tongli and thepublic security organ in Queshan County, laying a solidfoundation for building a safe and harmonious communityand a more positive business-local relationship.

Yulong Tongli - donation to the Queshan County Police Association to reward “righteous deeds” Case

Carrying forward the spirit of unity and mutual supportin times of difficulty, the General Communist PartyBranch and the Trade Union of Hefei South called onall employees to make charitable donations to help acolleague in need, Suqin. All Party members, cadres,and staff responded generously and every drop of theircontributions was collected and delivered to the colleagueand his family to help them get through the hard times.Hefei South has always paid close attention to the workand living needs of all employees, offering more careand assistance to those in need, and actively building ahumanistic enterprise through concrete actions.

Hefei South - humanitarian care for employees in needCase

Shuili Village in Xingning Town of Zixing City is the assistance target village of Jinlei South Company for ruralrevitalization. On July 27, 2024, it su?ered a severe ood disaster as a result of Typhoon “Gaemi”. The companydonated 144 tonnes of cement valued at RMB 49.3 thousand to support the post-disaster reconstruction there.The company’s active participation in social welfare activities and relief donations has been recognized by thegovernment and society at large.

Jinlei South Company - care for people in disaster areaCase

People in the disaster area use thedonated cement to rebuild their homes.

The village road rebuilt with thedonated cement after the disaster

In October 2024, Party member representatives and volunteers from Ruichang Platform of Huadong Materialdelivered rice, cooking oil, and other daily necessities, as well as charitable funds, to the elderly in Beishan Village,Xiachaohu Village and Jinsi Village. In addition, the company launched a scholarship donation campaign, providinga total of RMB 50 thousand in tuition and living allowances for more than 20 impoverished students at HuangjinTownship Central Primary School and Matou Middle School. These activities not only reinforced the company’ssense of social responsibility and mission, but also strengthened its harmonious relationship with the localcommunity, and promoted educational equity.

Ruichang Platform - warm-hearted assistance actionCase

Appendix

2024 Environmental, Social and Governance Report

Independent Assurance Statement

Appendix

CECEP (HK) Advisory Company Limited (“CECEPAC (HK)” or “We”) has been engaged by Tianshan Material Co., Ltd. (“Tianshan Material”)to conduct an independent limited assurance engagement (“Assurance Engagement”) on the information and data related to sustainabledevelopment in Tianshan Material Co., Ltd. 2024 Environmental, Social and Governance (ESG) Report (“ESG Report”) and to disclose the resultsand conclusions of the assurance in the form of an independent assurance statement to the users of the ESG Report.CECEPAC (HK) has been engaged to assure Tianshan Material adherence to the four AA1000 Accountability Principles (Inclusivity, Materiality,Responsiveness and Impact) set out in the AA1000 Assurance Standard v3 (“AA1000AS v3”). CECEPAC (HK) has also been engaged toprovide limited assurance on the reliability and quality of specic performance information disclosed in the ESG Report that have been selectedin accordance with the Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange (“Shenzhen Stock Exchange”) –Sustainability Report (For Trial Implementation) (“Sustainability Report Guideline”).If there is any inconsistency or ambiguity between the English version and the Chinese version of this independent assurance statement, theChinese version shall prevail.I. Independence and Competence

CECEPAC (HK) was not involved in collecting and calculating data, or in the development of the ESG Report. CECEPAC (HK)’s activities areindependent from Tianshan Material. There is no relationship between Tianshan Material and CECEPAC (HK) beyond the contractual agreementfor providing this Assurance Engagement.CECEPAC (HK)'s assurance team consists of professional personnel who are experienced in the industry and have received professional trainingin sustainability-related standards such as GRI Standards issued by Global Reporting Initiative, AA1000AS v3, Sustainability Report Guidelineissued by Shenzhen Stock Exchange, ISO 17001, and ISO 9001, etc.CECEPAC (HK)'s assurance team has rich experience in conducting assurance work and has a full understanding and practical ability ofAA1000AS v3. Meanwhile, the assurance team of CECEPAC (HK) carries out assurance work on sustainable development issues in accordancewith the internal assurance regulation of CECEPAC (HK).II. Tianshan Material’s ResponsibilitiesTianshan Material is responsible for the preparation and presentation of the ESG Report in accordance with the Sustainability Report Guidelineissued by Shenzhen Stock Exchange. Tianshan Material is also responsible for implementing internal control procedures and ensuring thatcontents of the ESG Report are free from material misstatement, whether due to fraud or error.III. Assurance Provider’s ResponsibilitiesCECEPAC (HK) is responsible for issuing an independent assurance statement according to AA1000AS v3 to the Board of Directors of TianshanMaterial. This independent assurance statement applies solely to the ESG Report in the specified scope, expresses a conclusion on theassurance work, and does not serve any other intents or purposes.CECEPAC (HK) ensures that all personnel involved in assurance work meet professional qualication, training and experience requirements,and are procient in conducting assurance engagements. The results of all assurance and certication are internally reviewed by senior sta? toensure that methodologies used in the process are su?ciently stringent and transparent.

IV. Scope of the Assurance Engagement

●The scope of the Assurance Engagement is limited to the information and data in the ESG Report that relates to Tianshan Materia and its subsidiariesand does not include data or information provided by Tianshan Material’s suppliers, contractors, and other third parties;

●Type 2 Moderate Level of Assurance was adopted to evaluate the nature and extent of Tianshan Material adherence to the four AA1000 AccountabilityPrinciples set out in the AA1000AS v3;

●Tianshan Material and CECEPAC (HK) reached an agreement to select the specic performance information in the ESG Report as part of the content forAssurance Engagement;No.Assurance IndicatorsUnitNo.Assurance IndicatorsUnit

Total emission of nitrogen oxides (NOx)tonnes

Number of companies having passed the qualitysystem certication

companies

The expenditure on production safety

RMB onehundred million

Total energy consumption (including total natural gasconsumption, total power consumption, total renewableenergy consumption and total non-renewable energyconsumption)

tonnes ofstandard coalequivalent

Number of work-related fatalities in production safe-ty liability accidents (excluding related parties)

people

Number of national green factoriesfactories

Thermal substitution rate (TSR) from alternative fuels%

Number of factories passed the occupational healthand safety management system certication

factories

Total greenhouse gas emissionstonnes

Number of factories passed the environmental man-agement system certication

factories

Greenhouse gas emission intensity

tonnes per RMB1 million

The rate of safety hazards detected and eliminated%

Total investment in public welfare (including materialdonations)

RMB tenthousand

The AI alert comprehensive response rate%

Coverage of the key employee participated in theanti-corruption (anti-commercial bribery) training ses-sions

%

●The time scope of the Assurance Engagement was with respect to information disclosed from January 1, 2024 to December 31, 2024 only. We have notperformed any procedures with respect to earlier periods or any other elements included in the ESG Report, and therefore, these do not constitute a partof our conclusions; and

●The scope of the Assurance Engagement is conned to the information and data provided by Tianshan Material. Any queries regarding the content or re-lated matters within this independent assurance statement should be addressed to Tianshan Material only.V. Methodology of the Assurance EngagementCECEPAC (HK)’s Assurance Engagement was conducted at the headquarters of Tianshan Material and part of its subsidiaries. The assurancework included:

●An assessment on the suitability of Tianshan Material’s stakeholder engagement participation process;

●On-site interviews with Tianshan Material’s sustainability management and other personnel involved in the preparation and provision of the content andinformation in the ESG Report;

●An assessment on whether the reporting and management approach disclosed in the ESG Report responded to the principles of Inclusivity, Materiality,Responsiveness, and Impact as dened in the AA1000AS v3;

●Random sampling of sources of reliability and quality evidence pertaining to selected key performance indicators;

●Recalculation of selected key performance indicators; and

●Other procedures we deemed necessary.The Assurance Engagement was performed and the conclusions within were based upon information and data provided by Tianshan Material,and on assumptions that the information provided was complete and accurate.VI. Inherent LimitationsThe absence of a signicant body of established practice on which to draw to evaluate and measure non-nancial information allows for di?erent,but acceptable, measures and measurement techniques and can a?ect comparability between entities.

VII.ConclusionsIn accordance with the principles of Inclusivity, Materiality, Responsiveness and Impact in the AA1000AS v3, our ndings and conclusions aredetailed as follows:

InclusivityTianshan Material has identified key stakeholders. Continuous communication with the key stakeholders is carried out in various way tounderstand their expectations and concerns. On this basis, Tianshan Material has formulated policies in consideration of key stakeholders’expectations and its impact on stakeholders. In our professional opinion, Tianshan Material adheres to the Principle of Inclusiveness.MaterialityTianshan Material conducted the material topic analysis for its ESG Report, collected opinions from key stakeholders, determined material topicsthrough appropriate methods, and presented the results in its ESG Report. In our professional opinion, Tianshan Material adheres to the Principleof Materiality.ResponsivenessTianshan Material has established relevant communication channels for its key stakeholders to gather their concerns and has responded onmaterial topics related to sustainable development to its key stakeholders. In our professional opinion, Tianshan Material adheres to the Principleof Responsiveness.ImpactTianshan Material has invested resources in understanding, measuring, assessing and managing the impacts caused by the company in order toachieve more e?ective decision-making and results-based management within the organization, and has appropriately disclosed the impacts inthe ESG Report. In our professional opinion, Tianshan Material adheres to the Principle of Impact.

Specic Performance InformationBased on the procedures CECEPAC (HK) has performed and the evidence we have obtained, nothing has come to our attention that causesus to suspect the reliability and quality or the conformity with the preparation basis set out in the ESG Report of the 15 selected specifiedperformance information of the ESG Report.

March 25, 2025Hongkong, China

Appendix

2024 Environmental, Social and Governance ReportESG Key Performance

Key Performance IndicatorsUnit202420232022

Leading the New Chapter of Green DevelopmentEmbracing Green Actions

Total greenhouse gas emissions Tonne146,604,719.03166,579,684.27188,226,668.00Greenhouse gas emissions (scope 1)Tonne141,472,149.69163,036,585.43184,836,532.00Greenhouse gas emissions (scope 2)Tonne5,132,569.343,544,098.254,235,019.00Combined energy consumptionTce19,309,556.7723,314,709.5925,956,559.36Combined energy consumption permillion revenue

Tce/millionrevenue

221.96217.12195.78Total non-renewable energyconsumption

MWh157,079,589.65264,105,793.07312,864,965Total coal consumptionTonne21,784,398.1827,650,91630,220,942Total gasoline consumptionL184,690.00263,940.00364,140.00Total diesel consumptionL25,400,620.0032,934,430.0033,214,030.00Total natural gas consumptionm

1,872,100.002,804,0005,505,400Total power consumption MWh20,045,636.8020,567,391.4021,555,104.80Total renewable energy consumptionTce64,789.7621,630.7723,734.84Consumption of renewable resourcesas a proportion of total consumption ofcorresponding resources

%0.340.090.09Total direct energy consumptionMWh133,351,169.70169,275,522.20185,002,135.30Total indirect energy consumption

MWh20,045,636.8020,567,391.4021,555,104.80Purchased electricity consumptionMWh15,312,201.7014,356,101.0014,771,652.80Self-generated electricityconsumption

MWh4,733,435.106,211,290.46,797,789.23Clean energy useMWh54,212.4553,033.0477,921.97Including: natural gas consumptionm

1,872,100.002,804,000.005,505,400.00Including: percentage of natural gasconsumption

%35.8057.2176.46Including: wind energy consumptionMWh000Including: percentage of wind energyconsumption

%000Including: solar energy consumptionMWh34,807.0022,688.7018,343.60Including: percentage of solar energyconsumption

%64.2042.7823.54

Total indirect energy consumption includes purchased electricity consumption and self-generated electricity consumption.

Key Performance IndicatorsUnit202420232022

Developing Circular EconomyTotal water withdrawalTonne961,173,442.251,055,005,407.811,127,148,466.85Recycled water utilization rate of clinker-producing cement companies

%92.1893.5692.45Total water consumptionTonne75,169,699.0079,353,902.0085,135,405.00Water consumption intensity

Tonne/millionrevenue

864.07739.00642.14Reusing rate of the treated wastewater forcommercial concrete business

%100100100Biodiversity ProtectionLand area a?ected by business operationsm?11,576,100.009,877,700.0011,132,500Restored land aream?6,312,300.003,099,050.87,613,200Investments in green mine construction andecological restoration projects

RMB 10,0008,638.763,0527,557National green factoriesNumber545326National Ready-Mixed Concrete GreenDemonstration Factory

Number616962National green minesNumber383838Provincial green minesNumber1039878Emission Compliance ManagementTotal waste gas/total waste gas pollutantemissions

m

493,427,362,600.00575,146,395,700.00687,118,979,200.00Total Emission of Nitrogen Oxides (NOx)Tonne40,868.7652,90861,630Total Emission of Sulfur dioxide (SO

) Tonne3,429.854,1524,525Industrial particulate matter emissionTonne3,307.065,1387,113Direct mercury emissionTonne2.592.030.39Chemical oxygen demand (COD)emission

Tonne9.380.060.80Proportion of companies meeting noise levelstandards

%100100100Proportion of recyclable cement packagingbags

%100100100Total amount of waste generated

Tonne9,551,603.191,961,883.091,432,400.00Self-produced hazardous solid wastes 10,000 t0.070.090.24Total hazardous waste generated per millionrevenues

Tonne/millionrevenue

0.010.010.02Self-produced non-hazardous solid wastes10,000 t955.09211.34168.27Total amount of non-hazardous wastegenerated per million revenues

Tonne/millionrevenue

109.7919.6812.69Self-processed non-hazardous solid wastes10,000 t948.04193.72166.08Absorbed and discharged volume of solidwastes

10,000 t7,543.607,587.977,657.81Absorbed volume of industrial wastes10,000 t6,405.107,2097,139.70Discharged volume of solid wastes10,000 t955.0947.16137.45Discharged volume of other wastes10,000 t183.41331.54380.66Amount of waste recycledTonne9,480,423.961,921,585.551,407,800.00

2024 statistical caliber increase in domestic sewage discharges to the Park's wastewater treatment plants

One additional plant (CNBM NEW MATERIALS CO., LTD.) in 2024, with the main waste being the comprehensive utilization of waste mines.

Appendix

2024 Environmental, Social and Governance Report

Key Performance IndicatorsUnit202420232022

Establishing a New Talent Development CenterFullling Talent StrategyTotal number of employeesNumber 55,03461,66267,956Total number of employees by genderMale Number42,687 47,65153,482FemaleNumber12,347 14,01114,474Total number of employees by employment type

Full timeNumber54,76060,32165,089Other (including part-time, intern and outsourced)Number2741,3412,867Total number of employees by age

30 and belowNumber5,3806,4916,795Between 30 and 50Number34,184 38,07043,49350 and aboveNumber15,47017,10117,668Total number of employees by regionChinese mainland and Hong Kong, Macao and TaiwanNumber54,914 61,54567,848OverseasNumber120 117108Proportion of women in senior management of the Company%9.70 7.493.3

Employee Salary and Welfare BenetsNumber of employee activities held and organized annuallyNumber1,593 2,0064,049Number of employees participated in activities in the yearPerson-time69,540 81,935107,952Comforting special employees and helping employees withdi?culties in a year

Person-time1,5433,1082,550Total expense on comforting special employees and helpingemployees with di?culties

RMB 10,000174.09 268.5317Assistance to children’s education of the di?cult employees orenrollment scholarship for employees’ children in a year

Person-time434 589627Total expense on o?ering grants to the children of employeeswith di?culties in going to school or rewarding the children ofemployees to go to school

RMB 10,00060.54 93.8769Helping employees with critical diseases in a yearPerson-time131 179186Total expense on helping employees with critical diseasesRMB 10,00041.76 36.857Employee Training and DevelopmentNumber of employee trainingsNumber24,05626,46747,827Employee training coverage/percentage of employees trained%96.5798.2997.00Amount of training expenditureRMB 10,0004,270.203,017.954,243.00Occupational Health and SafetyNew cases of occupational diseasesNumber0 00Serious injury rate per thousand persons‰0.000.440.8Accident rates of minor and serious injuries‰0.030.440.06Investment in Workplace SafetyRMB 10,000120,400100,48680,000Lost work days due to work injuries Day1118,03030,000Number of employees participated in occupational health andsafety training

Person-time863,374 663,9431,068,530Near accident rates of full-time employees%0.01870.0240.02

Key Performance IndicatorsUnit202420232022

Occupational Health and Safety

Near accident rates of contractual personnel%0.000.010Number of work-related fatalitiesPerson-time0 35Death rate per thousand people‰0.00 0.050.07Accumulated number of companies with occupational health andsafety management system certication

Number431472418Driving a New Journey of Co-creating Social ValueModernized GovernanceNumber of anti-corruption training sessions held and organizedNumber4,452 2,8551,269Total number of employees covered by anti-commercial bribery andanti-corruption training

Number55,03461,66267,956Percentage of employees covered by anti-bribery and anti-corruption training

%100100100Including: the total number of directors covered by anti-commercialbribery and anti-corruption training

Number999Percentage of directors covered by anti-bribery and anti-corruptiontraining

%100100100Including: total number of management sta? covered by anti-commercial bribery and anti-corruption training

Number4,956 4,858 /Percentage of management sta? covered by anti-bribery and anti-corruption training

%100100/Percentage of employees in key positions covered by participationin anti-corruption (anti-bribery) trainings

%100 100100Number of employees (including directors) who participated in anti-corruption training

Person-time164,237 46,67552,153Amounts involved in litigation or signicant administrative penaltiesdue to the company's unfair competition behavior during thereporting period

RMB 10,000000Responsible ProcurementNumber of suppliers who have established long-term cooperationwith the Company

Number10,747 12,00610,241Including: Chinese mainland and Hong Kong, Macao and TaiwanNumber10,719 11,97310,239OverseasNumber28 332Number of suppliers screened and controlled by the Company’senvironmental and social risks

Number7,792 6,4447,388Including: Chinese mainland and Hong Kong, Macao and TaiwanNumber7,698 6,4447,386OverseasNumber94 02

Customer Relations ManagementExpenditure investments in scientic research and innovation

RMB hundredmillion

24.9731.6937.49

Number of R&D employeesNumber7,8639,4818,908Percentage of R&D employees%14.2815.3813.54National intelligent manufacturing demonstration factoriesNumber211Provincial intelligent manufacturing demonstration factoriesNumber222121Digital mineNumber211510Number of patent applications for inventions during the reportingperiod

Number129188/Number of patents for inventions granted during the reporting periodNumber8592/Number of active patents during the reporting periodNumber4,2613857/

Appendix

2024 Environmental, Social and Governance Report

Key Performance IndicatorsUnit202420232022

Customer Relations ManagementAccumulated number of patents for utility modelsNumber3,4233,3982,474Accumulated number of invention patentsNumber501429278Accumulated number of design patentsNumber111115Products recalled due to safety and health concerns%0 00Lawsuits involving product and service safety and healthCase0 00Cement product overall pass rate%100100100Number of complaints about products and servicesreceived during the year

Number68 143125The percentage of complaints properly replied to anddisposed accounted for

%100 100100Number of complaints due to the disclose of customerinformation

Number0 00Responsible Business OperationsTotal amount invested in public welfare (including materialdonations)

RMB 10,0004,285.534,9676,569.84Amount of targeted assistance/rural revitalizationinvestment (including material donations)

RMB 10,0003,377.73 3,531.73,276Amount of educational investment (including materialdonations)

RMB 10,000111.29 137.9231Amount of public facility construction investment(including material donations)

RMB 10,000465.60 668.421,107Other donationsRMB 10,000330.91 629.351,787.84Number of industrial assistance projectsNumber34 7076Number of people reached by rural revitalizationNumber3,4003,6843,520 Number of established volunteer organizations or groupsNumber13 4164Participation in volunteer activitiesPerson-time2,4053,6805,486Number of volunteers among employeesNumber1,159 3,2333,833Hours of volunteer activitiesHour3,319 13,10717,445Total investment of all subsidiaries’ annual support involunteer activities from the Company in a year

RMB 10,0003.83 3.140.7Number of participations in or support activities relatedto the protection of the rights and interests of women,children or the disabled

Number71 310131Number of entrepreneurial practice basesNumber3 48Student internship position situationPerson/day14,76020,20022,597Number of events participated organized by industryassociations (above the provincial level)

Number191 152141

Self-Regulatory Guidelines No. 17 for Companies Listed on ShenzhenStock Exchange - Sustainability Report (For Trial Implementation)Chapter SectionGuidelineChapter in the Report

Chapter 3

Section 1

Article 20Leading the New Chapter of Green DevelopmentArticle 21Feature: Fullling the New Mission on Climate ChangeArticle 22Feature: Fullling the New Mission on Climate ChangeArticle 23Feature: Fullling the New Mission on Climate ChangeArticle 24Feature: Fullling the New Mission on Climate ChangeArticle 25Feature: Fullling the New Mission on Climate ChangeArticle 26Feature: Fullling the New Mission on Climate ChangeArticle 27Feature: Fullling the New Mission on Climate ChangeArticle 28Feature: Fullling the New Mission on Climate ChangeSection 2

Article 29Leading the New Chapter of Green DevelopmentArticle 30Leading the New Chapter of Green DevelopmentArticle 31Leading the New Chapter of Green DevelopmentArticle 32Leading the New Chapter of Green DevelopmentArticle 33Leading the New Chapter of Green DevelopmentSection 3

Article 34Leading the New Chapter of Green DevelopmentArticle 35Leading the New Chapter of Green DevelopmentArticle 36Leading the New Chapter of Green DevelopmentArticle 37Leading the New Chapter of Green Development

Chapter 4

Section 1

Article 38Driving a New Journey of Co-creating Social ValueArticle 39Driving a New Journey of Co-creating Social ValueArticle 40Driving a New Journey of Co-creating Social ValueSection 2

Article 41Driving a New Journey of Co-creating Social ValueArticle 42Driving a New Journey of Co-creating Social ValueArticle 43Not ApplicableSection 3

Article 44Driving a New Journey of Co-creating Social ValueArticle 45Driving a New Journey of Co-creating Social ValueArticle 46Driving a New Journey of Co-creating Social ValueArticle 47Driving a New Journey of Co-creating Social ValueArticle 48Driving a New Journey of Co-creating Social ValueSection 4

Article 49Driving a New Journey of Co-creating Social ValueArticle 50Driving a New Journey of Co-creating Social Value

Chapter 5

Section 1

Article 51Building a New Blueprint for Our VisionArticle 52Driving a New Journey of Co-creating Social ValueArticle 53Building a New Blueprint for Our VisionSection 2

Article 54Driving a New Journey of Co-creating Social ValueArticle 55Driving a New Journey of Co-creating Social ValueArticle 56Driving a New Journey of Co-creating Social Value

Appendix

2024 Environmental, Social and Governance ReportIndexes of “Reference of ESG Indicators System for ESG Reports ofListed Companies Controlled by Central Enterprises”

Disclosure InformationChapter in the Report

Environmental Indicators

Level ILevel II

SourceConsumption

Water Resources

Leading the New Chapter of Green Development – DevelopingCircular EconomyMaterials

Leading the New Chapter of Green Development – DevelopingCircular EconomyEnergy

Leading the New Chapter of Green Development – EmbracingGreen ActionsPackaging Material

Leading the New Chapter of Green Development – EmissionCompliance ManagementPreventionand Control of

Pollution

Wastewater

Leading the New Chapter of Green Development – EmissionCompliance ManagementWaste Gas

Leading the New Chapter of Green Development – EmissionCompliance ManagementSolid Waste

Leading the New Chapter of Green Development – EmissionCompliance ManagementClimate Change

Greenhouse Gas EmissionsFeature: Fullling the New Mission on Climate ChangeEmission Reduction ManagementFeature: Fullling the New Mission on Climate ChangeEnvironmental Rights TransactionFeature: Fullling the New Mission on Climate Change

Climate Risks ManagementFeature: Fullling the New Mission on Climate ChangeBiodiversity

Impacts of Production, Services andProducts on Biodiversity

Leading the New Chapter of Green Development – BiodiversityProtection

Measures forResource andEnvironmentManagement

System

Low-carbon Development Goal Formulation

and Strategic Measures

Feature: Fullling the New Mission on Climate ChangeResource Management Measures

Leading the New Chapter of Green Development – Embracing

Green Actions, Developing Circular EconomyEnergy saving and carbon reductionstatistical detection & assessment reward

and punishment system

Feature: Fullling the New Mission on Climate ChangeGreen Action and Measures

Leading the New Chapter of Green Development – Embracing

Green ActionsGreen and Low-carbon Certication

Leading the New Chapter of Green Development – Innovate Low-

Carbon ProductsEnvironmental Legitimacy and Compliance

Leading the New Chapter of Green Development – Emission

Compliance Management

Social IndicatorsLevel ILevel II

Employees’Rights andInterests

Recruitment and Employment

Establishing a New Talent Development Center – Fullling TalentStrategyEmployee Salary and Welfare Benets

Establishing a New Talent Development Center – Employee Salaryand Welfare BenetsEmployee Health and Safety

Establishing a New Talent Development Center – OccupationalHealth and SafetyEmployee Development and Training

Establishing a New Talent Development Center – EmployeeTraining and DevelopmentEmployee Satisfaction

Establishing a New Talent Development Center – Fullling TalentStrategy

Disclosure InformationChapter in the Report

Productand ServiceManagement

Product Safety and Quality

Driving a New Journey of Co-creating Social Value – CustomerRelations ManagementCustomer Service and Rights

Driving a New Journey of Co-creating Social Value – CustomerRelations ManagementInnovative Development

Driving a New Journey of Co-creating Social Value – CustomerRelations Management

SupplyChain SafetyManagement

Supplier Management

Driving a New Journey of Co-creating Social Value –Responsible ProcurementSupply Chain Management

Driving a New Journey of Co-creating Social Value –Responsible Procurement

SocialContribution

Tax Payment/Community Co-building

Driving a New Journey of Co-creating Social Value –Responsible Business OperationsPublic Welfare Activities

Driving a New Journey of Co-creating Social Value –Responsible Business OperationsResponding to National Strategies

Driving a New Journey of Co-creating Social Value –Responsible Business OperationsGovernance IndicatorsLevel ILevel II

GovernanceStrategy andOrganizationFramework

Governance Strategy and Procedure

Driving a New Journey of Co-creating Social Value –Modernized GovernanceOrganizational Structure and

Functions

Driving a New Journey of Co-creating Social Value –Modernized GovernanceRemuneration Management

Establishing a New Talent Development Center – EmployeeSalary and Welfare BenetsRegulatingGovernance

Internal Control

Driving a New Journey of Co-creating Social Value –Modernized GovernanceIntegrity Building

Driving a New Journey of Co-creating Social Value –Modernized GovernanceFair Competition

Driving a New Journey of Co-creating Social Value –Modernized GovernanceInvestorRelationsManagementandShareholders’Equity

Investor Relation Management

Building a New Blueprint for Our Vision – InvestorCommunicationShareholders’ Equity

Building a New Blueprint for Our Vision – InvestorCommunicationCreditors’ Equity

Building a New Blueprint for Our Vision – InvestorCommunicationTransparencyof InformationDisclosure

Information Disclosure System

Building a New Blueprint for Our Vision – InvestorCommunicationInformation Disclosure Quality

Building a New Blueprint for Our Vision – ESG Awards andRecognitionsCompliantOperationand RiskManagement

Compliant Operation

Driving a New Journey of Co-creating Social Value –Modernized GovernanceRisk Management

Driving a New Journey of Co-creating Social Value –Modernized Governance

Appendix

2024 Environmental, Social and Governance ReportFeedback

Dear Reader,Thanks for your time! Thanks for reading Tianshan Material Co., Ltd.’s 2024 Environmental, Socialand Governance Report. To provide you and other stakeholders with more valuable information, ande?ectively promote the Company to improve its ability and level of corporate social responsibility, wesincerely look forward to your comments and suggestions.

Name: Ye HongAddress: China National Building Material, No. 70, Expo Hall Road, Pudong New Area, ShanghaiTel: 021-68989175E-mail: tsgfyehong@126.com

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