2024

Environmental, Social and Governance (ESG) Report

Palm Eco-Town Development Co., Ltd.www.palm-la.comAddress of Guangzhou Of?ce: 6th Floor, Block B, Zhuguang XinchengInternational Center, No. 3 Qingyi Street, Machang Road, Tianhe District,Guangzhou City, Guangdong Province, China

Address of Zhengzhou Of?ce: 16-18th Floors, Haihui Center, at theintersection of Dongfeng South Road and Kangning Street, ZhengdongNew District, Zhengzhou City, Henan Province, China

002431@palm-la.com

Stock Code:002431

Stock Code:002431

Table of Contents

Steady Operations:

Enhancing ComplianceGovernance

/ 21/ 24/ 30

/ 73/ 77/ 81

/ 89/ 90/ 92

/ 93/ 99/ 101/ 35/ 40/ 44/ 47

/ 53/ 63/ 66/ 70

Adhering to Party BuildingAdvancing Steady OperationsStrengthening Compliance Management

Green Design:

Creating a HarmoniousEcosystemResponding to Climate ChangeStrengthening Environmental ComplianceManagementImproving Resource Ef?ciencyProtecting Ecosystem and Biodiversity

Innovation for Empowerment:

Focusing onCollaborative IndustryAdvancementDeepening R&D and InnovationStrengthening Quality ManagementMaintaining Stable Supply ChainProtecting Data Privacy

Caring for Employees:

Ensuring Safetyand Health

Protecting the Rights and Interests ofEmployeesSupporting Employee GrowthSafeguarding Safety Production

Acting in Good Faith:

Building a ResponsibleSociety

Supporting Rural RevitalizationResponding to the “Belt and Road” InitiativePracticing Social Welfare

Afterword to this Report

Key Performance FormIndexesReader Feedback

About This ReportMessage from the ChairmanAbout Palm Eco-Town

Sustainable DevelopmentGovernance

Company Pro?leCorporate CultureOrganizational StructureMilestonesHonors and AchievementsPerformance in 2024

ESG Governance SystemCommunications with StakeholdersManagement of Material Topics

0201

About This Report

Reporting Scope

This report covers Palm Eco-Town and its branches and subsidiaries. Unless otherwise speci?ed, the scope of this report isconsistent with that of the Company’s Annual Report.

De?nition

Data Sources

Data sources used in this report include the Company’s actual operational data, public data from government agencies, annual?nancial data, internal statistical reports, third-party questionnaire surveys, etc. The ?nancial data in this report is presentedin RMB. For any discrepancy between this report and the ?nancial statements, the ?nancial statements shall prevail.

Reporting PeriodThis report covers a period from January 1, 2024 to December 31, 2024 (“Reporting Period”). To enhance the comparability andforesight of this report, some sections will appropriately refer back to previous years or include forward-looking statements.This report is released on an annual basis to coincide with the annual ?nancial statements.

Con?rmation and ApprovalThis report was approved by the Company’s Board of Directors on April 24, 2025 and was subsequently released in conjunctionwith the Annual Report. The Board pledges to exercise oversight over the contents of this report, ensuring its absence of anyfalse records or misleading representations, and assuming responsibility for its truthfulness, accuracy and completeness.This report is published in Chinese, with the English version derived from the Chinese translation. In the event of anydiscrepancies between the two versions, the Chinese version shall prevail.

Access to the ReportThis report is available for review and download on the of?cial websites of the Company (www.palm-la.com), the website ofShenzhen Stock Exchange (www.szse.cn), and the website of cninfo (www.cninfo.com.cn).

Preparation BasisShenzhen Stock Exchange Shenzhen Stock Exchange State Council and the State-owned Assets Supervision and Administration Commission China Enterprise Reform and Development Society Global Reporting Initiative

This report is the second Environmental, Social and Governance Report (“ESG Report” or “this report”) issued by PalmEco-Town Development Co., Ltd. (“Palm Eco-Town”, “the Company” or “we”). In the principles of objectivity, standardization,transparency and comprehensiveness, this report elaborates on the Company’s environmental, social and corporate gover-nance practice and performance in 2024.

TermInterpretation

Palm Eco-Town, the Company, WeYuzi Affordable Housing

Palm Design GroupSZSECountry/Government

CSRC

Palm Eco-Town Development Co., Ltd.Henan Yuzi Affordable Housing Management and Operation Co., Ltd.

Palm Design Group Co., Ltd.Shenzhen Stock ExchangeThe People’s Republic of China and its administrative agencies

China Securities Regulatory Commission

About This Report

Message from the Chairman

0403

Liu Jianghua, Party Branch Secretary and Chairmanof Palm Eco-Town Development Co., Ltd.

Mountains Ahead,Together We Forge the Path

Leading reform in state-owned enterprises through Party building is an essential requirement for implementing thespirit of the 3rd plenary session of the 20th CPC Central Committee. Guided by Party building, we have deeplyintegrated the ESG philosophy into our corporate development, providing clear direction and uniting our strengthsfor progress.

1.Learning policies to de?ne direction and align with national development strategies. Party building

serves as the soul of enterprise development and our guiding beacon. We closely follow the country’s strategicgoals in new urbanization, rural revitalization, ecological civilization, and the digital economy. We integrate theESG philosophy into our “One Core, Two Wings” development strategy, which positions green urban and ruralconstruction as the core and rural revitalization and innovative businesses as the two wings, collectively drivingthe diversi?ed growth of our operations. In the area of green urban and rural construction, we focused on ourprimary responsibilities and core business, dedicating efforts to steadily advance the development of our threemajor business segments: landscape construction, engineering construction, and planning and design. In the areaof rural revitalization, we took high-standard farmland construction as the starting point, leveraged collectivevillage economies as the foundation, and prioritized the growth of modern large-scale agriculture. By coordinatingthe development of technological, digital, quality, and branded agriculture, we aimed to drive integrated progressin industrial prosperity, county strengthening, and citizen enrichment, ultimately fostering shared prosperitybetween urban and rural areas. In the area of innovative businesses, we actively explored emerging ?elds such asurban operations and digital technology to incubate advantages in these domains, cultivate fresh growthmomentum, and build future core competitive strengths.

2.Learning from the Party’s history to seek solutions and gain wisdom and strength. The century-long

history of the Communist Party of China serves as a vivid and richly detailed textbook. By drawing lessons fromthe Party’s history, we found answers, gained wisdom and strength, and applied them to the Company’s realities.We continuously innovated our management ideas and methods, strengthened technological innovation and thetransformation of scienti?c achievements, and reduced environmental impact during project execution. Moreover,we enhanced our management models to improve operational ef?ciency and corporate contributions to society.Through exploring innovative business models, we fully leveraged the strategic resources of our controllingshareholders and partners to collaboratively develop operational models for emerging ?elds.

3.Strengthening corporate culture with Party building and fostering innovation. Party building is

embedded in our strategy formulation and decision execution and is deeply integrated into the cultivation of ourcorporate culture. By strengthening our Party-building efforts, we further advanced our corporate culture andreinforced employee cohesion and unity. We focused on building a strong team of Party members and motivatingthem to serve as role models in practice. Additionally, we reinforced Party organizations by re?ning ourorganizational systems and working mechanisms. Through enhancing our corporate culture, we cultivated apositive and progressive work environment.At the same time, we upheld cultural con?dence by integrating China’s 5,000-year cultural heritage into our projectdesigns while fully embodying the ecological philosophies of “promoting harmony between humanity and nature”and “lucid waters and lush mountains are invaluable assets.” We drove innovation by drawing upon our culturalinheritance, thereby showcasing China’s unique charm and profound cultural legacy.

I. Implementing the ESG Philosophy and De?ning Development Directions through Party Building

Looking back at 2024, Palm Eco-Town celebrat-ed a signi?cant milestone - its 40th anniversary.“At forty, one has no doubts.” This year was ofextraordinary signi?cance to us. Although theCompany faced severe challenges, with thestrong support of our controlling shareholdersand the diligent efforts of our management andall employees, we overcame great dif?cultiesand challenges and implemented our strategicdecisions with practical actions, ensuring theCompany’s stable development.Over the past year, the Company made remark-able progress in the ?eld of ESG (Environmental,Social, and Governance). We actively respondedto the country’s major development strategiesand remained committed to promoting sustain-able development. We recognize that, as aresponsible corporate citizen, we must lead byexample in environmental protection, socialresponsibility, and corporate governance.

Message from the Chairman

0506

Organizational compliance is the cornerstone of a company’s stable development and a key to improving ESGmanagement. We were committed to building a more ef?cient and scienti?c organizational structure,strengthening compliance management, and ensuring that our ESG practices were more standardized andtransparent.

1.Optimizing organizational structure to enhance governance. As our business expanded, optimizing the

organizational structure became essential. We comprehensively reviewed and adjusted our current organizationalstructure, clari?ed the responsibilities and authorities of each department, and enhanced communication andcoordination between departments. Additionally, we strengthened team development to enhance employees’professional skills and competencies in the ESG ?eld.

2.Strengthening compliance management to ensure steady growth. We understood that standardized

management was both an inherent requirement for corporate development and a key factor in maintainingmarket competitiveness. We further enhanced our internal rules and regulations to ensure that all operationsadhered to established standards and were evidence-based. Moreover, we continuously re?ned our internalcontrol system, strengthened the oversight and management of operations, and bolstered risk management byimplementing robust mechanisms and processes. We also reinforced our compliance culture and improvedemployees’ compliance awareness and capabilities, thereby ensuring the Company’s steady growth.Platform construction is a key element in advancing ESG practices. We were dedicated to building an opencollaboration platform that fostered win-win cooperation. Through innovation-driven growth, we activelyexpanded ESG-related businesses by focusing on comprehensive innovation in business models, systems,operations, and technology; exploring new commercial models and operational paths; re?ning our managementsystem and operational mechanisms; and ensuring platform stability and ef?ciency. In business development, weexpanded into ESG-related areas such as green ?nance and sustainable development consulting to diversify ourplatform ecosystem. In technological innovation, we increased our investment in research and development toachieve breakthrough results. In 2024, we carried out technological innovations in landscape plants, ecologicalrestoration, and green and low-carbon ?elds, and conducted research in modern agriculture and green buildingtechnologies. These efforts led to 48 patent applications, 25 authorizations, 6 plant variety rights authorizations,the issuance of multiple standards and construction methods, and the publication of 15 papers. We also completedthe evaluation of 2 domestically leading scienti?c achievements. At the same time, we maintained an openattitude and pursued win-win cooperation in ESG. We further strengthened industry-university-researchcollaborations with governments, colleges and universities, and scienti?c research organizations to drivetechnological innovation and the transformation of achievements. We signed 3 new strategic cooperationagreements, secured approval for major science and technology projects, and received multiple Science andTechnology Progress Awards. Additionally, our subsidiaries, Palm Design Group Co., Ltd. and Guangdong SanhangSmart Building Technology Co., Ltd., were both recognized as “National-Level Science and Technology SMEs.”Furthermore, we continued to deepen our cooperation with domestic and international enterprises and industryassociations to enhance our core competitiveness and industry in?uence. We also established close partnershipswith ?nancial institutions to inject ?nancial momentum into our sustainable development efforts.Beyond that, we enhanced our customer service system to improve service quality and ef?ciency. We activelyparticipated in social welfare initiatives and environmental protection activities, thereby contributing to socialharmony and environmental sustainability. Meanwhile, we strengthened communication and collaboration withstakeholders to further advance ESG practices.

II. Enhancing ESG Management through Organizational Compliance and Structural Optimization

III.Driving Win-Win Cooperation through Platform Construction and Innovation

In rural revitalization, we remained committed to increasing agricultural ef?ciency, boosting farmers’ incomes, andrejuvenating rural areas. Using high-standard farmland construction as an entry point, we promoted agriculturalmodernization and rural economic development through scienti?c planning, technological innovation, andinnovative business models. Additionally, we emphasized the development of rural industries with localcharacteristics and rural tourism, and fostered the integration of primary, secondary, and tertiary rural industriesto inject new vitality into rural revitalization.In environmental governance, we fully implemented national strategies for ecological civilization construction andintegrated the green development philosophy into our corporate DNA. We established an environmentalgovernance system that spans the entire life cycle - from planning and design to construction, operations, andmaintenance. During the early stages of our projects, we relied on our Ecological Technology Research Institute toimplement innovative BIM forward design and Low-Impact Development (LID) techniques. We integrated thesponge city philosophy into over 30 urban renewal projects and employed green infrastructure, such as permeablepavement and rain gardens, achieving an annual rainwater reuse rate exceeding 65%. During the constructionphase, we strictly implemented the “Six 100%” standard of green construction and innovatively employed anintelligent dust monitoring system integrated with dust suppression equipment to dynamically control PM2.5levels. In ecological restoration, we developed a three-in-one model of “ecological revetment + subsurface ?owwetland + intelligent monitoring,” successfully improving river water quality from Inferior to Class V to Class III. Wealso pursued our “CarbonX 2025” goal by utilizing digital twin technology to build a carbon footprint trackingsystem. Our objective was to achieve an 8% annual reduction in carbon emission intensity across our entireindustrial chain, thereby contributing to building a modernization of harmony between humanity and nature.Looking ahead, we will remain unwavering in our commitment to the ESG development philosophy, continuouslyresponding to major national strategies and deeply advancing sustainable development. At the same time, we willfurther strengthen communication and collaboration with stakeholders, enhance ESG management and practices,and create greater value for both the Company and society.

IV. Supporting Chinese Modernization by Focusing on National Strategies

Message from the Chairman

About Palm Eco-Town

0708

Company Pro?le

Organizational Structure

Milestones

First-Level Organizational Structure Chart of Palm Eco-Town Development Co., Ltd.

Corporate Culture

Development Vision

Founded in 1984 and listed on the Shenzhen Stock Exchange in 2010 (Stock Code: 002431), Palm Eco-Town Development Co.,Ltd. is the 80th publicly listed company in Henan Province. As a national, group-based enterprise, Palm Eco-Town integratestop-level planning, design, construction, and comprehensive operations. As a national high-tech enterprise, Palm Eco-Townremains committed to the principle of “making research serve practical purposes” and continuously conducts researchprimarily in four key areas: landscape plants, ecological restoration technologies, four new engineering technologies, and greenand low-carbon technologies. The Company has made signi?cant strides in these ?elds and achieved major breakthroughs inseveral areas of research, many of which are industry-leading and widely applied across various engineering projects.Guided by its “One Core, Two Wings” green development strategy, Palm Eco-Town has taken the lead in transitioning intobusiness areas such as rural revitalization, green and low-carbon initiatives, and new urbanization construction. The Companyis dedicated to providing high-quality and comprehensive solutions for green urban and rural construction, rural revitalization,and urban operations.Upholding the philosophy that “lucid waters and lush mountains are invaluable assets,” Palm Eco-Town remains true to itscommitment to craftsmanship. By re?ning its entire industry chain - investment, ?nancing, management, construction, andoperations - the Company leverages its mature development strategies and strong brand advantages to get stronger, dobetter, and grow bigger. Positioning itself with high goals, high standards, and high quality, Palm Eco-Town continues to realizeits corporate blueprint and vision, write an impressive chapter for the new era, and make its rightful contribution to protectinglucid waters and lush mountains and building a Beautiful China.

To become a world-leading comprehensive service provider in green urban and

rural construction, urban operations, and rural revitalization.

Core Values

Establishing integrity as the founda-tion; adhering to fair, just, and trans-parent business codes of conduct;earning the trust and recognition ofcustomers, employees, and society;and driving sustainable corporatedevelopment.

Distinctive Culture

Military culture, school culture, andfamily culture

Mission

To provide clients with high-quality andcomprehensive urban and rural construc-tion, urban operations, and rural revital-ization solutions and promote harmonybetween humanity and nature.

Spirits

Adhering to principles, pursuing highquality and ef?ciency, taking decisiveaction, and embracing a pioneering andenterprising spirit.

Party Branch CommitteeSafety Committee

Board of SupervisorsDevelopment and Strategy Committee

Nomination, Remuneration and

Audit CommitteeAssessment Committee

General Meeting of Shareholders

Board of DirectorsExecutive Management

Foundation of the Company

1984

20102014

2017

2019

2020

2024

Securities DevelopmentDepartment

Marketing and CustomerService DepartmentSafety Technology Department

Investment ManagementDepartment

Business ContractDepartment

PPP Management Center

Risk Control and LegalDepartment

Finance and FundingDepartment

Party-Mass Work and HumanResources Department

General Of?ce

Discipline Inspection andSupervision Department

Audit ManagementDepartment

The Company was established asone of the earliest private enterpris-es engaged in ecological residential

environment construction.First strategic transformationThe Company introduced an ecologicaltown development strategy, becominga pioneer in exploring the ecological

town model within the industry.Embarking on a new journeyHenan Yuzi Affordable Housing Managementand Operation Co., Ltd., a company with stateasset backing, became the Company’s

controlling shareholder.Second strategic transformationThe Company introduced the “One Core, Two Wings” strategy to

support its high-quality development.

High-quality transformation and developmentThe Company transitioned into new business areas including rural revitalization,

green and low-carbon initiatives, and new urbanization construction.

Listing on the Shenzhen Stock ExchangeThe Company was listed on the Shenzhen StockExchange on June 10, 2010 (stock code: 002431),marking an important milestone in its development.

Model outputAs its ecological town business enteredthe growth phase, the Companystandardized the Palm Ecological Townmodel and promoted it externally.

About Palm Eco-Town

0910

Honors and Achievements

State-owned Assets Supervision andAdministration Commission of HenanProvincial People’s Government, Departmentof Industry and Information Technology ofHenan Province, and Henan Daily

2023 Henan CSR Excellence

Enterprise

Zhengzhou Municipal Bureau ofUrban-Rural Development

2023 AAA-Rated Credit

Enterprise

2024 AA-Rated Market &Quality Credit Enterprise

China Association for Quality

National Business Daily

2024 Most SociallyResponsible Listed Company

Award

Chinese Society of Landscape Architecture

2023 Science and TechnologyAwards (Planning & Design

Category) of the Chinese

Society of LandscapeArchitecture -First/Second/Third Prize

2023 Henan ProvincialLandscape ArchitecturePlanning & Design Awards -First Prize/Second Prize

Henan Society of Landscape Architecture

IFLA AAPME

IFLA AAPME Awards

2024

Organizing Committee of the Yuanye

Awards

Gold Award of the 15thYuanye Awards International

Competition

4th Asia Habitat Landscape

Award - Silver Award &

Excellent Award

Landscape Week and the Organizing Committee of

the Asia Habitat Landscape Award

About Palm Eco-Town

1112

Total Number of Anti-corruption andAnti-bribery Incidents Reported

Number of Filed and Concluded Legal

Cases Regarding Corrupt Practices

100%Percentage of Directors and Senior ManagersParticipating in the Training on Anti-commercial

Bribery and Anti-Corruption

Governance Performance

1.42

（in RMB 100,000,000）

304.05

Number of Incidents in which Major AdministrativePenalties were Imposed by Ecological andEnvironmental Authorities as a Result of

Environmental Incidents

Total Emission of Greenhouse Gases

Environmental Performance

200,000

Total Investment in Employee TrainingRMB

Number of LaborDiscrimination Incidents

100%

100%

Social Insurance Coverage Rate

Coverage of Employee Training

Number of SafetyProduction Accidents

Total Number ofWork-Related Deaths

100%

Investment in R&DCustomer Complaint Resolution Rate

Social Performance

Performance in 2024

tCO2e

Performance in 2024

Sustainable DevelopmentGovernance

1314

ESG Governance System

Sustainable development is key to the long-term success of an enterprise. We integrate the philosophy of sustainabledevelopment into our strategy and management, identify and evaluate risks encountered during our management anddevelopment processes, actively seek and seize opportunities, and explore a sustainable development strategy tailored to ourcircumstances. Through continuous optimization of resource allocation and the promotion of technological innovation, westrive to create greater value for society while protecting the ecological environment and advancing sustainable development.

We adhere to the greendevelopment philosophythat “lucid waters and lushmountains are invaluableassets” and promote theadvancement of ecologicalcivilization. In projectdevelopment, construction,and operation, we prioritizeenvironmental protection,ensuring the preservation ofthe site’s original naturalcharacter and preventingany form of destructivedevelopment.

Upholding the philosophy of“boundless enterprise,boundless love,” we activelyengage in social welfare effortsby launching various projectsand helping vulnerable groups.Additionally, we contribute tonational public welfaredevelopment in areas such asecological protection, socialcare, andindustry-university-researchcollaboration.

In our project operations, wefollow the guiding principlesof “thriving industries,eco-friendly livability, civilizedrural customs, effectivegovernance, and enhancedliving standards”. Byintroducing highly adaptableindustrial resources accordingto local conditions, we aim toachieve sustainableoperations and addresslivelihood challenges such asregional employment andincome growth.

We advocate a healthy lifestylethat promotes both ef?ciencyand well-being, consistentlyfocusing on our employees’growth and development.Through a variety of culturalactivities, we have normalizedand institutionalized employeecare as an integral part of ourdaily managementmechanisms, helpingemployees enhance their skillsand realize their personal value.

The Board of Directors, as the highest decision-making body for ESG governance, is responsible for formulating ESG strategies,plans, systems, and policies, ensuring their effective implementation, and assuming full responsibility for all related policies,systems, and information disclosure. Managers from various functional departments and subsidiaries have formed an ESGReporting Working Group, which is responsible for preparing our annual ESG report and for collecting and verifying pertinentinformation. During the Reporting Period, to enhance ESG understanding among our management and functional departmentsand to improve employee competence and standards, we engaged a third-party agency to conduct ESG-speci?c training.We have formulated a  to guide the conduction and implementation of our CSR-related work,normalize related practices, proactively assume responsibilities toward the environment, society, and stakeholders, and fosterthe harmonious and coordinated development of both the Company and society as a whole.

Case StudyOrganization and Conduction of ESG Training Meetings

ResponsibilityPhilosophies

ResponsibilityPhilosophiesPracticingsocial welfare

Sustainable Development Governance

1516

Communications with StakeholdersWe place great emphasis on maintaining close communication and engagement with both internal and external stakeholders.We actively establish diverse communication channels, listen to stakeholders’ expectations and demands, and respondproactively to collaboratively advance ESG practices and build a sustainable future.

Management of Material Topics

In accordance with the assessment methods of domestic and international disclosure standards such as the  andthe , the Company introduces the analytical perspectives of impact materiality and ?nancial materiality. Wehave identi?ed ?ve topics with ?nancial materiality and 17 topics with impact materiality and provided crucial responses in thisreport.

Analyze the macro trends of the region where the Company operates, the industryin which the Company operates, and the Company’s business model, and identifythe Company’s stakeholders, as well as the impacts, risks, and opportunities it faces.

Identify 21 material topics and form an ESG topic pool for 2024 by reference to theguidelines of the Shenzhen Stock Exchange, Global Reporting Initiative (GRI)Standards, UN Sustainable Development Goals (SDGs), as well as related topics inthe same industry domestically and internationally.

Create a matrix of material topics based on the impact materiality and ?nancialmateriality assessment data from Step 3. Ensure that the relevant topics aredisclosed in a transparent, balanced, and comprehensive manner in the report.

Impact Materiality Assessment

Sort through the potential or actual positive and negative impacts of each topic onthe external environment, society, and economy. Conduct a survey and analysis ofstakeholders using a questionnaire. Based on the survey results, expert opinions,and the nature of the industry, a total of 17 topics with high and medium impactmateriality were identi?ed.

Financial Materiality AssessmentIdentify and evaluate 5 topics of ?nancial materiality by analyzing their impact,dependence, and other factors, combined with expert judgment and questionnairesurveys conducted across departments within the Company to assess the likelihoodand potential ?nancial impact of each topic.

StakeholdersExpectations and DemandsCommunication ChannelsCompany Response

Governmental orregulatory agencies

Customers

Suppliers

Employees

Shareholdersand investors

Stable operationEnhanced return on investmentSteady performance growth

Compensation and bene?tsTraining and promotionRights protectionOccupational health and safety

Improve corporate governanceEnhance informationdisclosure qualityStrengthen investorcommunicationBoost pro?tabilityComply with employment laws andregulationsEnhance the compensation andbene?ts systemStrengthen the construction of talentteamsEnsure occupational health and safety

Information disclosurePerformance brie?ngInvestor surveyGeneral Meeting ofShareholdersInvestor hotlineirm.cninfo.com.cnEmployee communicationEmployee trainingEmployee care activities

Implementation of nationalpoliciesResponse to climate changeRural revitalizationCompliant operation

Implement national policiesRespond to the Belt and Road InitiativeSupport rural revitalizationPromote green urban and ruraldevelopmentOperate in compliance with lawsPay taxes legallyInformation disclosureCooperate with supervisionauthorities

Product quality assuranceHigh-quality products andservicesProtection of customers’ privacy

Strengthen quality managementDeepen R&D and innovationFirmly protect customers’ privacyCustomer communication andfeedback channelsAfter-sales serviceCustomer satisfaction surveys

Fair competitionTechnical exchangeWin-win cooperation

Vigorously oppose unfair competitionStrengthen communication andcooperationActively promote industry collaborationIndustry cooperation activitiesExhibitions and symposiums

Mutual trust and win-wincooperationStable partnerships

Enhance communicationConduct clean procurementBidding activitiesSupplier communication

Communities and

the public

Sustainable developmentEngagement in social welfare

Practice social welfare activitiesImprove community environmentMedia communicationCommunity public welfareactivitiesRural revitalization activities

Industry partners

Step 1: Learn about the background of the Company

Assessment Process of Material Topics

Step 2: Conduct preliminary issue screening

Step 3: Assess the materiality of topics

Step 4: Con?rm material topics

Sustainable Development Governance

2024 Topic Pool

Matrix of Important Issues

Note: The Company is not involved in scienti?c research, technology development, or other activities sensitive to technologyethics; therefore, “Science and Technology Ethics” has not been listed as a material topic. Additionally, the Company does nothave accounts payable exceeding RMB 30 billion or accounting for over 50% of total assets, nor has it disclosed overduepayments to small and medium-sized enterprises through the National Enterprise Credit Information Publicity System; hence,“Equal Treatment of Small and Medium-Sized Enterprises” has not been listed as a material topic.

Response to Climate Change

Pollutant EmissionsWaste DisposalEnvironmental ComplianceManagementEcosystem and Biodiversity Protection

Energy UtilizationWater Resource UtilizationCircular Economy

Environmental Topics

Protection of the Rights andInterests of EmployeesEmployee Training andDevelopmentOccupational Health and SafetyInnovation-Driven DevelopmentSafety and Quality of Products

and ServicesSupply Chain SecurityData Security and CustomerPrivacy ProtectionContribution to SocietyRural Revitalization

Social Topics

Anti-Bribery and Anti-Corruption

Anti-Unfair CompetitionCommunications with Stakeholders

Due Diligence

Governance Topics

Importance to Company FinanceVery high

EnvironmentalComplianceManagementPollutant EmissionsWaste DisposalEnergy UtilizationWater ResourceUtilizationCircular Economy

Data Security and CustomerPrivacy ProtectionCommunications with StakeholdersDue DiligenceAnti-Unfair Competition

Supply Chain Security

Response to Climate ChangeEcosystem and Biodiversity ProtectionOccupational Health and SafetyInnovation-Driven Development

Protection of the Rights andInterests of EmployeesEmployee Training andDevelopmentSafety and Quality of Products andServicesContribution to SocietyRural RevitalizationAnti-Bribery and Anti-Corruption

1718

Importance of Economic, Social, and Environmental ImpactsVery highAverage

Average

Sustainable Development Governance

0101

Steady Operations:

Enhancing ComplianceGovernance

The Company has always upheld the Party’s leadership, ful?lledits responsibilities in accordance with the law, managed theenterprise in a compliant manner, continuously improved itscorporate governance structure, enhanced various managementsystems, strengthened internal controls and risk management,and strictly observed business ethics to ensure steady operationswhile committing to achieving sustainable development andcreating value for the Company.

Responded TopicsAnti-Bribery and Anti-Corruption,

Anti-Unfair Competition

Steady Operations: Enhancing Compliance Governance

2221

Adhering to Party Building

Strengthening Organizational Construction

Based on the requirements of the  andother relevant documents, and in line with the actual conditions of the Party branches, the Company has formulated ?ve partybuilding systems, including the , the , and the , to continuously improve its Partybranch management system and further standardize and normalize the operations of Party branches. In 2024, the Companyconvened 48 Party Branch Committee meetings, with 166 agendas undergoing pre-decision review procedures, ensuring alloperations advance orderly under the Party’s leadership.The Company places great emphasis on strengthening its Party member team. Through the “Three Meetings and One Lecture”system and centralized training, it has enhanced education for Party member development, improving the ideological andpolitical qualities as well as the Party spirit of the team. During the Reporting Period, there were 4 activists applying for Partymembership, 2 prospective members, 2 probationary members, and 3 Party membership applicants, which boosted the vitalityof the Party member team. By the end of the Reporting Period, the Company had established 8 Party branches, comprising atotal of 208 Party members.

Advancing Strict Party Governance

The Company has continuously deepened its Party integrity construction. By implementing the “Four Areas of Focus and FourAreas of Strengthening”, it has effectively carried out Party discipline education to alert Party members, clarify bottom lines,and instill a sense of reverence. At the same time, it has consistently strengthened its ideological work by strictly implementingthe ideological work accountability system, incorporating ideological learning into centralized study sessions for Partymembers, and fully utilizing the Company’s OA system, WeChat of?cial account, and other online platforms to publicizecomprehensive strict Party governance and Party integrity construction. Party branch members are strictly required tomaintain political resolve, enhance political sensitivity, and actively promote positive energy. In 2024, the Company organizedfour special sessions on ideological work and published 29 pieces of ideology-related content through its “Party Building”section in the OA system.

Creating a Party Building BrandThe Company has established its exclusive Party building brand (LOGO) and forgedan innovative pathway for the deep integration of Party building under the motto“Palm Eco-Town’s Dual Commitment: Integrity in Action, Accountability in Execution”.In line with the speci?c conditions of its Party branches, the Company has developeda distinctive “Three-Three-Six” methodology for its Party building brand. By focusingon the creation of an excellent Party building brand as the central approach, theCompany actively advances the integration of Party work with business operations,consolidates its foundation, cohesion, and centripetal force, and continuouslyimproves the quality and standard of Party building work, providing a strong politicalguarantee for the Company’s high-quality development.

Enhancing Theoretical Study

The Company’s Party branches earnestly implement the “First Topic” and centralized theoretical study systems. They haveformulated a detailed annual study plan and checklist to promote regular education. Additionally, they have developed a workplan for Party discipline study and education, as well as for learning and implementing the spirit of the 3rd Plenary Session ofthe 20th CPC Central Committee, focusing on key learning areas. At the same time, they actively diversify educational meth-ods by combining theoretical study with practical activities and integrating online and of?ine learning, thereby deepening andsolidifying theoretical understanding.In 2024, the Company held 14 collective study sessions, 4 special discussions, 4 special Party lectures delivered by Partymembers, and 24 Party group meetings, effectively strengthening the ideological and political education of Party cadres.

The Company adheres to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era,thoroughly implements the guiding principles of the 20th National Congress of the CPC and the 3rd Plenary Session of the 20thCPC Central Committee, and upholds party building. It steadily advances party building tasks to achieve the mutual integrationand promotion of party building with production and operations, thereby injecting momentum into the Company’s high-qualitydevelopment.

Case StudyOrganization of the Study of the Spirit of the 3rd Plenary Session of the 20th CPC CentralCommittee

Steady Operations: Enhancing Compliance Governance

Leading reform in state-owned enterprises through Party building is an essential requirement for implementing thespirit of the 3rd plenary session of the 20th CPC Central Committee. Guided by Party building, we have deeplyintegrated the ESG philosophy into our corporate development, providing clear direction and uniting our strengthsfor progress.

1.Learning policies to de?ne direction and align with national development strategies. Party building

serves as the soul of enterprise development and our guiding beacon. We closely follow the country’s strategicgoals in new urbanization, rural revitalization, ecological civilization, and the digital economy. We integrate theESG philosophy into our “One Core, Two Wings” development strategy, which positions green urban and ruralconstruction as the core and rural revitalization and innovative businesses as the two wings, collectively drivingthe diversi?ed growth of our operations. In the area of green urban and rural construction, we focused on ourprimary responsibilities and core business, dedicating efforts to steadily advance the development of our threemajor business segments: landscape construction, engineering construction, and planning and design. In the areaof rural revitalization, we took high-standard farmland construction as the starting point, leveraged collectivevillage economies as the foundation, and prioritized the growth of modern large-scale agriculture. By coordinatingthe development of technological, digital, quality, and branded agriculture, we aimed to drive integrated progressin industrial prosperity, county strengthening, and citizen enrichment, ultimately fostering shared prosperitybetween urban and rural areas. In the area of innovative businesses, we actively explored emerging ?elds such asurban operations and digital technology to incubate advantages in these domains, cultivate fresh growthmomentum, and build future core competitive strengths.

2.Learning from the Party’s history to seek solutions and gain wisdom and strength. The century-long

history of the Communist Party of China serves as a vivid and richly detailed textbook. By drawing lessons fromthe Party’s history, we found answers, gained wisdom and strength, and applied them to the Company’s realities.We continuously innovated our management ideas and methods, strengthened technological innovation and thetransformation of scienti?c achievements, and reduced environmental impact during project execution. Moreover,we enhanced our management models to improve operational ef?ciency and corporate contributions to society.Through exploring innovative business models, we fully leveraged the strategic resources of our controllingshareholders and partners to collaboratively develop operational models for emerging ?elds.

3.Strengthening corporate culture with Party building and fostering innovation. Party building is

embedded in our strategy formulation and decision execution and is deeply integrated into the cultivation of ourcorporate culture. By strengthening our Party-building efforts, we further advanced our corporate culture andreinforced employee cohesion and unity. We focused on building a strong team of Party members and motivatingthem to serve as role models in practice. Additionally, we reinforced Party organizations by re?ning ourorganizational systems and working mechanisms. Through enhancing our corporate culture, we cultivated apositive and progressive work environment.At the same time, we upheld cultural con?dence by integrating China’s 5,000-year cultural heritage into our projectdesigns while fully embodying the ecological philosophies of “promoting harmony between humanity and nature”and “lucid waters and lush mountains are invaluable assets.” We drove innovation by drawing upon our culturalinheritance, thereby showcasing China’s unique charm and profound cultural legacy.

2423

Governance StructureThrough the “Party Building +” co-construction model, the Company’s Party branches effectively integrate resources fromvarious sources to enhance the overall effectiveness of Party building work. They actively leverage the role of incumbent Partymembers by engaging in joint construction activities with street communities and other Party organizations. For example, byestablishing “Party Member Model Posts” and “Party Member Commandos”, they promote substantial and effectiveparticipation in community grassroots governance, drive Party members to excel in their primary roles, and pioneer newinitiatives through exemplary performance.In 2024, the Company held 18 Themed Party Day events with a total attendance of approximately 489.

Case Study

Volunteer Fire Safety Inspection Service by the Company’s Party Branches

Advancing Steady Operations

In strict compliance with the requirements of the 

, the , and other applicable laws and regulations, the Company has formulated internal rules

and regulations, such as the 

, to continuously improve its corporate governance

structure and establish a mechanism characterized by clearly de?ned rights and responsibilities, mutual collaboration, and checks

and balances, thereby ensuring the Company’s standardized operations. During the Reporting Period, the Company’s General

Meeting of Shareholders, Board of Directors, Board of Supervisors, and executive management strictly carried out management

decision-making and operational oversight in accordance with the governance norms and requirements for listed companies

established by the China Securities Regulatory Commission and the Shenzhen Stock Exchange. Meanwhile, each specialized com-

mittee of the Board of Directors ful?lled its respective duties in accordance with the law.

General Meeting of Shareholders

The convocation, convening, requisite quali?cations for attend-

ees, and voting procedures of the General Meeting of Sharehold-

ers comply with the provisions of the 

the, and

other applicable laws and regulations. The Company treats all

shareholders equally by employing both on-site and online voting

methods in accordance with relevant regulations, facilitating the

participation of minority shareholders and ensuring that every

shareholder can fully exercise their rights. Additionally, signi?cant

matters affecting the interests of minority investors are subject

to separate voting to effectively safeguard the rights and inter-

ests of minority investors.

During the Reporting Period

The Company convened 6 General Meetings of Shareholders and deliberated and approved 18 proposals.The Board of Directors convened 12 meetings and deliberated and approved 47 proposals.The Board of Supervisors convened 4 meetings and deliberated and approved 18 proposals.The Audit Committee convened 9 meetings.The Development and Strategy Committee convened 1 meeting.The Nomination, Remuneration and Assessment Committee convened 3 meetings.Our independent directors convened 6 special meetings.

Steady Operations: Enhancing Compliance Governance

The Board of Directors serves as the Company’s decision-making body and is accountable to the General Meeting ofShareholders. All directors carry out their duties in strict accordance with the theand the. They actively participate in both the meetings of the Board of Directorsand the General Meeting of Shareholders and ful?ll their responsibilities diligently. The Company established a special meetingmechanism for independent directors. During the Reporting Period, the independent directors independently ful?lled theirobligations by conducting advance reviews of matters such as related party transactions.The Company’s Board of Directors has established three special committees: the Development and Strategy Committee, theNomination, Remuneration, and Assessment Committee, and the Audit Committee. Corresponding working rules have beenformulated for each. To ensure that the decision-making of the Board of Directors is both scienti?c and standardized, eachcommittee includes at least 2 independent directors.

The Company has comprehensively considered factors such as age, educational background, and professional experience toensure a diversi?ed composition of its Board of Directors while meeting its business needs. The current directors possess deepindustry expertise and extensive corporate management experience, enabling them to make governance decisions frommultiple perspectives.

Case Study

Specialized Committee

Members(person)

The Number ofIndependent Directors

(person)

Whether the IndependentDirector(s) Serves asChairman of the Committee

Board of Directors

Diversity of the Board of Directors

The Board of Supervisors is the Company’s permanent supervisory body and is accountable to the General Meetings ofShareholders. All supervisors strictly carry out their duties in accordance with the  andother applicable regulations, diligently supervising signi?cant matters, the Company’s ?nancial conditions, and the lawfulnessof the performance of duties by directors and of?cers. The Board of Supervisors is composed of 3 members: 2 non-employeerepresentatives and 1 employee representative.

Board of Supervisors

In accordance with the  and other applicable regulations and considering the income levels in the industryand region where the Company operates, as well as the Company’s actual operating conditions, the Company hascomprehensively determined the remuneration scheme for directors (including independent directors) of the Sixth Board ofDirectors, supervisors, and of?cers based on their ful?llment of responsibilities and annual performance. This scheme wasdeliberated and approved in 2023. The Company’s directors and of?cers receive their compensation on an annual salary basis,with the allocation of remuneration and the incentive system for the variable portion determined by the Company’s overallannual operating performance as well as the operating performance during their tenure. Supervisors are compensated on a?xed annual salary basis, with a one-time payment issued at the end of the year in accordance with the .

Management of Remuneration for Directors, Supervisors, andother Of?cers

Principles of the Remuneration Scheme

Development and Strategy Committee

Nomination, Remuneration andAssessment Committee

Audit Committee

NoYesYes

From December 13 to 15, 2024, the Company’s independent directors visited a project site to conduct anon-site investigation of the Company’s asset management and operation project, thereby deepeningtheir understanding of and oversight over the Company’s business.

Number of the members of the Board of Directors

Director

type

Independent directorsNon-independent directors

MaleFemale

Doctoral degreeMaster’s degreeBachelor’s degreeGenderEducation

Linking Compensationto Performance

Prioritizing Ef?ciency whileConsidering Fairness

Providing Comprehensive

IncentivesAn individual’s annual salaryshould be tied to performancetargets, a  should beexecuted, and an appraisalshould be conducted toincentivize both the Company’sand the individual’sperformance.

The annual salary levelshould not only motivatemanagement personnel andkey talents but also considerthe Company’smanagement conditions andindustry salary benchmarks.

Fixed income and riskcompensation, short-termand long-term incentives,and material andnon-material rewards shouldbe combined based on apragmatic, transparent, fair,and scienti?c evaluation.

Steady Operations: Enhancing Compliance Governance

2827

Internal Control and Risk Control

The Company, in accordance with the  and other applicable laws and regulations, hasformulated systems such as the  to continuously improve itsinternal control management system. The Company conducts annual evaluations of internal controls, follows up on correctiveactions, engages external ?rms to perform internal control audits, and generates  to promote continuous internal control improvement, enhance their effectiveness, and bolster theCompany’s risk prevention capabilities.During the Reporting Period, the Company’s Internal Audit Department conducted internal audits in accordance with its workplan. These audits covered engineering audits, economic responsibility audits, special investigations, as well as the audit,inspection, and evaluations of the internal control management system. A total of 15 internal audits were performed, 85issues were identi?ed, and 79 audit recommendations were proposed.During the Reporting Period, no signi?cant or material de?ciencies in the design or implementation of internal controls wereidenti?ed.

Key Performance

Internal Control

Protection of the Rights and Interests of InvestorsThe Company places great emphasis on protecting the rights and interests of investors and strictly complies with applicablelaws and regulations. It has established systems such as the , the, and the  to standardize its investor relations management. The Companycommunicates with investors through various channels, including on-site investor surveys, performance brie?ngs, and itsof?cial website, to promptly address investor concerns and foster a strong trust relationship between the Company and itsinvestors.

The Company hosted2 on-site surveys for institutional investors, conducted 1 online performance brie?ng for theAnnual Report, and interacted with investors 109 times on irm.cninfo.com.cn of the Shenzhen Stock Exchange,achieving a 100% response rate.

Investor Relations Management

The Company has consistently adhered to lawful and compliant tax practices. It strictly observes national tax policies andregulations, has implemented a Tax Management System and management processes for various taxes, and has establisheda  centered on comprehensive systems, professional support, and dynamic compliance. By integratinginternal controls with external communication, the Company has developed a comprehensive mechanism that spans the entireprocess from risk prevention to response, effectively preventing and managing tax risks.To strengthen internal control and system development, the Company has established specialized management systems andinternal control processes to standardize ?nancial practices and mitigate potential risks. Concurrently, it has implementedcomprehensive ?nancial and accounting management systems to ensure the accuracy of tax ?lings through rigorous ?nancialrecord-keeping and accounting. When handling the ?nal settlement of annual taxes and complex transactions, the Companyobtains professional compliance advice from tax advisors to avoid non-compliant practices resulting from policymisinterpretation. In response to signi?cant changes in tax laws and policies, the Company dynamically adjusts its taxstrategies and promptly revises contract provisions, invoice management procedures, and tax-speci?c managementprocesses. The Company conducts regular self-assessments of tax risks, formulates risk response strategies in advance, andreviews tax risks to take corrective actions, while maintaining effective communication with tax authorities to stay informedof policy updates and mitigate risks stemming from information asymmetry.The Company places great importance on training its tax management personnel, actively monitoring policy changes,organizing tax-related training sessions, and promoting tax policies. Additionally, it has introduced digital tax managementtools by incorporating a tax management module into its ERP system, embedding tax rules to enable automatic alerts andaudits.

Tax Management

The Company continuously improves its risk prevention and control mechanisms by regularly conducting risk investigations toidentify and evaluate internal and external risks that may affect its operations and management, such as those related toproduction, operations, external guarantees, litigation, and safety production. It formulates , proposescountermeasures for identi?ed risks, manages risks dynamically, and promptly addresses routine risk issues to ensure theeffective operation of its risk prevention and control mechanisms. Additionally, by organizing seminars and conductingspecialized training sessions, the Company enhances risk prevention awareness and strengthens its ability to prevent andmitigate risks, thereby safeguarding its compliant operations.

Risk Management

Steady Operations: Enhancing Compliance Governance

Cultivation of a Culture of Compliance

Case Study

2023 Online Performance Brie?ng

Strengthening ComplianceManagement

The Company adheres to the principle of compliant operationsand incorporates compliance management into its businesspractices. Through compliance training, it enhances employees’awareness of compliance. During the Reporting Period, the Com-pany invited external experts to deliver themed lectures to allemployees, covering topics such as key provisions of the new, approaches for clarify-ing facts in construction engineering disputes, legal duediligence, and critical aspects of transaction documents. Thesetraining sessions provided employees with a more systematicand in-depth understanding of legal knowledge, furtherstrengthening their compliance awareness and professionalcapabilities.

Anti-Bribery and Anti-CorruptionInformation DisclosureThe Company strictly complies with the  and other applicable laws and regulations. It hasestablished systems such as the and the Insider Information and  to regulateexternal disclosure practices, ensuring that information disclosures are timely,true, accurate, and complete. Additionally, it strengthens insider informationmanagement to prevent insider trading. The Company remains committed toenhancing its information disclosure management, improving the quality of itsdisclosures, and safeguarding the legitimate rights and interests of its investors.

The Company conducted 4 legal training sessions.

Key PerformanceKey Performance

Protection of Creditors’ Rights and Interests

The Company places great importance on protecting the rights and interests ofcreditors. It strictly ful?lls contracts signed with creditors and promptly communi-cates signi?cant information affecting their rights and interests to safeguard theirlegal rights fully. During the Reporting Period, the Company did not issue any pub-licly traded bonds. With an issuer credit rating of AA and an issue credit rating ofAAA, the Company actively expanded its ?nancing channels, maintained no over-due interest-bearing debts, and did not incur any detriment to the interests orrights of any creditor.

The Company issued 4regular reports

121 interimannouncements (excludingregular reports)

161 online documents(including regular reports,interim announcements, andall externally discloseddocuments, such asintermediary agency reports)

The Company advocates for integrity, continuously promotes a culture ofintegrity, and strictly prohibits any form of corruption or fraudulent behav-ior. During the Reporting Period, the Company continuously improved itssystem for preventing and controlling integrity risks, strictly adhered toanti-corruption laws and regulations, and revised its disciplinary and super-visory systems, including the , the , the , and the .The Company actively promoted a culture of integrity through various initia-tives aimed at enhancing employees’ awareness of integrity and fostering aclean and upright working environment. During the Reporting Period, theCompany organized4 integrity training sessions, held 9 integrity cultureevents, and conducted 4 disciplinary education sessions prior to major holi-days to reinforce employee discipline. Additionally, the Company carried outcomprehensive self-assessments of departments, subsidiaries, and projectcompanies in accordance with the  and  toensure that integrity risk prevention and control measures are implementedat every level.

Steady Operations: Enhancing Compliance Governance

Case StudyThe 2024 Seminar on the Signi?cance andKey Points of Governance through“Compliance and Discipline” in State-fundedEnterprises

Case StudyIntegrity Culture Promotion Project

42 employees signed the Commitment

to Integrity Construction and theCommitment to Integrity.The Company posted a total of

integrity-related promotional messages onits OA system.

Key Performance

Anti-Unfair Competition

The Company strictly adheres to the  and the . It participates in commercial competition in a fair, just, and transparent manner, maintaining andsafeguarding a fair business environment. During the Reporting Period, the Company did not face any litigation or majoradministrative penalties related to unfair competition practices.Whistleblowing and Whistleblower ProtectionThe Discipline Inspection and Supervision Department serves as the Company’s independent supervisory body and is respon-sible for handling and investigating complaints and reports, ensuring independence and objectivity. It also strictly keepswhistleblowers’ personal information and reported details con?dential. For individuals who prefer not to report under theirreal names, anonymity or the use of pseudonyms is allowed.

Integrity Culture Campaign

The Company actively promotes the dissemination and training of a culture of integrity, steadily enhancesemployees’ understanding of integrity, and continuously fosters a clean and upright cultural environment.These efforts aim to establish a solid defense against corruption by deterring, preventing, and disincentivizingcorrupt behavior.

The Company actively promoted the integration of a culture of integrity into projects by organizing onlinemeetings for 5 pilot projects focused on this theme. During these meetings, the Discipline Inspection and Super-vision Department presented the work plan and clari?ed the responsibilities of each project team. Additionally,a themed training session titled “Adhering to Career Bottom Lines and Maintaining Integrity” was conducted tostrengthen the integrity awareness of project personnel. Following the meetings, the Company displayed integ-rity culture promotional boards at project sites to further embed a culture of integrity at the front line, therebyfostering a clean and upright working atmosphere.

020-85189496/85189209 (Landline) 13825186571 (Mobile)Reporting hotline

Reporting Methods

zljc2021@163.comReporting email17 Floor, Building 3A, Haihui Center, Zhengzhou City, Henan Province, China; 6th Floor, Block B,Zhuguang Xincheng International Center, Guangzhou City, Guangdong Province, China (eastside of the ?re escape staircase)Reporting mailbox

https://www.palm-la.com/jjjcReporting website

16-18 Floors, Building 3A, Haihui Center, at the intersection of Dongfeng South Road and

Kangning Street, Zhengdong New District, Zhengzhou City, Henan Province, China (Discipline

Inspection and Supervision Department), Zip Code: 450000Correspondenceaddress

th

th

Steady Operations: Enhancing Compliance Governance

0202

Green Design: Creating aHarmonious Ecosystem

The Company has consistently embraced the green develop-ment philosophy that “lucid waters and lush mountains areinvaluable assets” and actively responds to the national policy of“carbon peaking and carbon neutrality.” It has established arobust environmental management system, advanced energyconservation and emissions reduction efforts, and extensivelydeveloped technologies in landscape plant cultivation, ecologicalrestoration, low-carbon innovation, and environmental protec-tion. These initiatives aim to promote the construction of ecologi-cal civilization and comprehensively advance harmony betweenhumanity and nature.

Responded TopicsResponse to Climate Change, Environmental ComplianceManagement, Energy Utilization, Water Resource Utilization,Pollutant Emission, Waste Disposal, Circular Economy, Ecosystem

and Biodiversity Protection

Green Design: Creating a Harmonious Ecosystem

3635

Responding Climate Change

GovernanceThe Company’s Board of Directors is responsible for comprehensive oversight and coordination, while each functional andbusiness department is tasked with implementing and advancing climate change actions. Together, these effortssystematically promote the development of the Company’s climate change governance system.

Taking into account its operational conditions, the Company integrates information and standards, including external climatepolicies and industry reports, to analyze physical risks, transition risks, and opportunities, thereby initially identifying potentialclimate-related risks and opportunities. For these identi?ed risks and opportunities, the Company evaluates their potentialimpacts on its operations and development, conducts further analysis of their primary ?nancial impacts and the duration ofsuch impacts, and formulates corresponding measures to effectively address the challenges of climate change while seizingopportunities brought by the green transition.

In recent years, climate-related risks have been intensifying and global environmental issues have become increasingly severe.Against this backdrop, our country has implemented the “carbon peaking and carbon neutrality” policy, aiming to achieve peakcarbon emissions and carbon neutrality through carbon reduction and sequestration. The Company actively responds to thechallenges and opportunities posed by climate change by identifying climate-related risks and opportunities relevant to itsoperations and formulating corresponding measures to gradually build long-term capacity to address climate change.

Strategy

AcutePhysical

Risks

ChronicPhysical

Risks

Market

Risks

Reputation

Risks

These risks include acute extreme weather events, such as typhoons, ?oods,and blizzards, which may cause damage to infrastructure and project structuresor trigger water and power outages, resulting in work stoppages, delayed proj-ect delivery, and adverse effects on the Company’s operations and customerrelationships. Employees may face safety risks or be unable to report for dutyduring such events, leading to labor shortages and reduced work ef?ciency.

·Enhance weather forecast monitoring, strengthen measures to preventextreme weather disasters, and ?exibly adjust project schedules inresponse to weather changes;·Purchase appropriate insurance for employees to enhance safety;·Develop and implement a detailed disaster emergency plan to ensurerapid resumption of operations.Reasonably arrange working hours, enhance protection for high-tempera-ture work, and improve working conditions.

Actively adopt eco-friendly materials and green building technologies, andincorporate low-carbon and environmentally friendly considerations intodesigns.Strengthen communication with stakeholders and promptly and accurate-ly disclose the Company’s efforts to address climate change.

These risks include long-term climate change risks, such as rising temperaturesand sea-level rise, which may impact the Company’s business activities.Prolonged high temperatures could increase operational dif?culties and nega-tively affect employee health.

Shifting market customer preferences toward lower-carbon, environmentallyfriendly products, services, and design concepts may lead to increased designcomplexity and higher operating costs. The inability to meet customer demandscould adversely affect the Company’s business performance.As stakeholders place greater emphasis on climate change, the Company’sreputation could suffer if timely improvements or enhancements are not made.

Risk DescriptionImpact Duration

Risk Identi?cation Checklist

Short- andmedium-term

Long-term

Short-, medium-, and

long-term

Medium- and

long-term

Increased operating costs;decreased operating income

Increased operating costs;decreased operating income

Policy andLegal Risks

Closely monitor the latest domestic and international climate-relatedpolicies and regulations, and respond in a timely manner.Domestic and international policies and requirements related to climate changeand energy management are continuously evolving, placing higher demands onenterprises for low-carbon development. Noncompliance with local legal require-ments, whether operational or disclosure-related, could expose the Company toregulatory penalties and other risks.

Short- andmedium-term

Increased compliance costs

Increased operating costs;increased R&D costs

Increased management costs;decreased operating income

Potential Financial ImpactResponse MeasuresRisk Type

Physical Risks

Transition Risks

Green Design: Creating a Harmonious Ecosystem

3837

Products andServices

MarketOpportunities

By developing green, low-carbon, and envi-ronmentally friendly technologies andservices, the Company can enhance itscompetitive advantage and improve pro?t-ability.

As global attention to climate changegrows, the demand for ecological gover-nance and green, low-carbon constructionis likely to increase. By deepening its effortsin landscape plant cultivation, ecologicalrestoration, and green, low-carbon technol-ogies, the Company can gain market share.

DescriptionOpportunity Identi?cation Checklist

Increased operating

income

Increased operatingincome

Potential Financial ImpactOpportunity Type

Opportunity Type

Based on its actual conditions, the Company has established carbon reduction targets and implemented a series ofadministrative measures to reduce greenhouse gas emissions and promote the achievement of these targets.Indicators and Goals

The Company has long been committed to the development, promotion, and application of green, low-carbon, andenvironmentally friendly technologies. By leveraging its platform advantages and collaborating with scienti?c researchinstitutions, the Company has successfully developed multiple green technologies. In the design and construction phases ofprojects, the Company strictly complies with environmental regulations, actively utilizes eco-friendly materials and greenbuilding technologies, and integrates environmentally friendly design and construction methods. These efforts facilitate thecontinuous adjustment and optimization of the industrial structure, leading to the creation of a high-technology,resource-ef?cient, and low-pollution industrial structure, thereby driving the green and low-carbon transformation of theindustrial, agricultural, and service sectors and advancing the achievement of carbon peaking and carbon neutrality goals.

Support for the Carbon Peaking andCarbon Neutrality Goals

304.05

Total emission of greenhouse gasestCO2e

304.05

Indirect greenhouse gas emissions (Scope 2)tCO2e

The statistical scope covers the electricity consumption at the Zhengzhou headquarters andthe Guangzhou of?ce.

Key Performance

Carbon Reduction GoalsSigni?cantly enhance the level of green construction, effectively reduce energy consumption in construction,and achieve reductions in carbon emissions by 2030.

Carbon Sink Projects

The Company actively participates in carbon sink projects to enhance the carbon sequestration capacity of ecosystems.During the Reporting Period, the Company further developed and utilized “low-carbon, high-ef?ciency landscaping construc-tion technology,” increased the development of new materials, and diversi?ed the application scenarios for related technolo-gies. These initiatives have effectively boosted environmental bene?ts and laid a solid foundation for achieving low-carbondevelopment goals.

Case Study

Case Study

Project Closure Acceptance Carbon Sink Training for “Research on CarbonSource/Sink Accounting for Urban Green Spaces Based on the Whole Life Cycle”In November 2024, the Company, in collaboration with the ShanghaiAcademy of Landscape Architecture Science and Planning, jointlycarried out the project closure acceptance for “Research on CarbonSource/Sink Accounting for Urban Green Spaces Based on the WholeLife Cycle” and organized related carbon sink training. Focusing onthe Longhu Outer Ring Park Project, the related research and trainingidenti?ed the primary sources of carbon sinks within the study area,evaluated the carbon sink capacity, proposed a scienti?c plan forconstructing an urban green space carbon sink monitoring system,and clari?ed the methodology for carbon sink accounting for urbangreen spaces from sample plots to regional scales.

Project Closure Acceptance and Carbon Sink Training for “Screening and Evaluation of TreeSpecies with High Carbon Sequestration Capacity for Landscaping in Henan Province”

The Company, in partnership with Henan Agricultural University, established a JointLaboratory for Forestry Carbon Sink and, in October 2024, carried out the projectclosure acceptance and carbon sink training for “Screening and Evaluation of TreeSpecies with High Carbon Sequestration Capacity for Landscaping in Henan Prov-ince”. By conducting the screening and evaluation of tree species with high carbonsequestration capacity in urban landscaping across Henan Province, the Companycomprehensively assessed the carbon sink capacities of common landscaping treespecies, identi?ed those with high carbon sequestration potential, and accuratelyestimated the carbon storage of green spaces in Zhengzhou City. These effortsresulted in the creation of plant landscapes with high carbon sequestration capacityand provided a theoretical basis for selecting tree species for afforestation andestimating carbon storage in Zhengzhou City.

Green Design: Creating a Harmonious Ecosystem

Strengthening EnvironmentalCompliance Management

Emergency Response Plan

The Company has established an emergency response mechanism for sudden environmental incidents. Project teams areresponsible for identifying environmental risk factors, such as chemical spills, ?oods, waterlogging, heavy rains, and severeweather, and implementing the necessary emergency preparedness and response measures in accordance with projectimplementation and management requirements. An  has been developed, andemergency drills are regularly conducted in accordance with this plan. In the event of an incident, the Company continuouslymonitors the environmental impact and actively implements appropriate mitigation measures to minimize any adverseeffects to the environment.

In its project construction management, the Company has re?ned its emergency response plans, clari?ed responsibilities,and strengthened communication with meteorological departments to proactively guard against extreme weather. A24-hour leadership duty system has been established to ensure smooth information ?ow and timely reporting ofemergencies, disasters, and subsequent response measures.

Provide workers with cold-weatherclothing and implement insulationmeasures for temporary facilities.Promptly clear accumulated snow andwater; apply anti-slip materials onslippery surfaces; and inspect the stabilityof equipment used for high-altitudeoperations. Prohibit high-altitude workduring severe weather, ensuring thatindoor operations also adhere to safetyprotocols.

Extreme Weather Management

The Company strictly complies with the  and other applicable laws andregulations and has established and continuously improved its environmental management system in accordance with theGB/T24001 standard. It has developed an environmental management organizational framework led by the General Manager,with the Deputy General Manager in charge of production, and the Technical Safety Department, regional of?ces/subsidiaries,and project teams responsible for implementing speci?c responsibilities for the Company’s environmental managementefforts. This framework ensures that all activities and services related to the environment meet the Company’s environmentalmanagement policies, goals, and indicators, effectively reducing pollution and protecting the environment. During theReporting Period, the Company did not incur any major administrative penalties or face criminal charges from environmentalauthorities due to environmental incidents.As of the end of the Reporting Period, both the Company and its subsidiary, Palm Design Group, have obtained certi?cationunder the GB/T 24001-2016/ISO 14001:2015 standard system.

Environmental Management System

Secure barricades, temporarystructures, and other facilities inadvance; clear items that couldbe blown away by the wind;and stabilize lifting equipment.Suspend high-altitude andoutdoor lifting operations duringtyphoons or high winds, andpromptly evacuate personnel tosafe indoor areas.

Typhoons and strong wind

Flood Prevention InspectionsOn-site Flood Prevention Measures

Low temperatures, rain, snow,

and freezing conditions

Clear drainage pipes and ditchesbefore construction; establish waterdiversion ditches and collection wellsaround foundation pits; and ensurethat suf?cient water pumps areavailable. Suspend outdoor activitiessuch as earthworks and concretepouring, and cover excavated areasfor protection.

Torrential rain andintense downpours

Green Design: Creating a Harmonious Ecosystem

4241

Environmental Inspections

The Company has established a three-tier environmental inspection mechanism covering the corporate headquarters, sub-sidiaries/regional of?ces, and project teams. Inspection items include the key characteristics of operational activities relatedto major environmental factors, the implementation and effectiveness of environmental management plans, and the ef?ca-cy of environmental protection facilities. Through routine patrols, key project inspections, and special inspections, the Com-pany examines the implementation and operation of its environmental management systems at its subsidiaries/regionalof?ces and project teams, analyzes and summarizes the factors affecting its environmental management work, and propos-es corrective action plans to strengthen environmental management and promote continuous improvement. During thereporting period, the Company conducted a total of 202 inspections.

Wastewater Discharge Management

The Company strictly adheres to the, the , the , and other applicable laws, regulations, and standards in carrying out environ-mental management work. It rigorously controls the generation and discharge of wastewater, exhaust emissions, solidwaste, and noise during production and operations, thereby reducing its environmental footprint.

The Company adheres to the principle of “separating rainwater from sewage” and discharges wastewater strictly in accor-dance with relevant requirements. It employs a combination of physical, chemical, and biological treatment methods topurify wastewater in a targeted manner and reduce wastewater discharge volumes.

Waste Gas Management

Waste gas generated during the Company’s production and operational activities primarily includes dust from constructionsites and emissions from construction vehicles and machinery. The Company strictly complies with applicable laws,regulations, and standards, and has developed and implemented a series of measures to control and treat dust and harmfulgas emissions. It is dedicated to minimizing the generation of dust and waste gas, ensuring that atmospheric pollutants aredischarged in compliance with regulations, and reducing impacts on the surrounding environment.

Noise Pollution ManagementThe Company has formulated and implemented a series of noise reduction measures in strict accordance with therequirements of and. It alsoenhances the monitoring and recording of noise levels at construction site boundaries to ensure that noise emissions remainwithin national standards. For projects in urban areas that may generate environmental noise pollution during construction,the Company is required to report speci?c project details to the relevant environmental protection administrative authoritiesat least ?fteen days before commencement.

Pollutant Emissions

When formulating construction plans, fully consider reasonable technological or economically feasible methods toreduce water consumption and the use of chemicals and oils, thereby reducing the generation of wastewater at thesource.Install sedimentation tanks at construction site wastewater outlets and adopt multiple treatment measures to purifywastewater. Following treatment, reuse the water or utilize treated wastewater for dust suppression, promotingwater resource recycling and reducing discharge. Ensure treated wastewater is properly discharged into sewagepipelines.Implement surface anti-leakage treatments to prevent oil from seeping, splashing, dripping, or leaking, therebymitigating the risk of contamination to surrounding water bodies.

Wastewater Control Measures

Set up barricades around construction sites anduse ?ne-mesh enclosures during buildingconstruction to block dust from dispersing.Install bag ?lters, cyclone dust collectors, andsimilar equipment on dust-intensive facilitiessuch as concrete mixing stations and materialcrushing units to capture and remove particulatematter from waste gas.

Particle control

Waste Gas Control and Treatment Measures

Strictly select building and decoration materials;for instance, in residential building decoration,the use of asphalt or coal tar-based preserva-tives is prohibited to reduce pollution at thesource.Strengthen control over the release of ?ameretardants and ammonia from concrete admix-tures during construction, ensuring compliancewith national standards.Utilize adsorbents such as activated carbon tocapture harmful gases like benzene and formal-dehyde from waste gas.Under the action of catalysts, convert harmfulgases in waste gas into harmless substances,such as converting nitrogen oxides into nitrogenand water.

Gas pollutant control

Regularly spray water on roads and materialstorage areas at construction sites to increaseair humidity, promote dust particle settling, andreduce dust.

Green Design: Creating a Harmonious Ecosystem

Noise Control

Measures

Lighting Pollution ManagementThe Company ensures that work schedules are planned reasonably to minimize nighttime construction whenever possible. Fornecessary nighttime construction, it strictly adheres to the requirements of construction administrative authorities and otherrelevant bodies. It carefully controls the types and brightness of construction lighting, adjusts the direction of light exposure asneeded, and implements shielding measures. These actions ensure suf?cient illumination for construction activities whileminimizing disturbances to nearby residents.

Improving Resource Ef?ciency

The Company’s primary energy consumption sources include purchased electricity, gasoline, and similar resources. It strictlycomplies with the  and other applicable laws and regulations, maintaining astrong focus on energy management and ef?ciency. By implementing measures such as installing LED energy-saving lamps inof?ce restrooms, the Company actively reduces its energy consumption. Looking ahead, the Company will continue tostrengthen energy management practices and pursue its energy management goals.

Energy Management

The water consumed in the Company’s daily operations and construction projects primarily comes from purchased municipalwater. Upholding the principle of water conservation, the Company installs water-saving sensor faucets in of?ces andrestrooms to reduce water usage in its internal operations. For its projects, it adopts water-saving technologies and equipmentto minimize water waste. The Company has successfully won bids and executed several high-standard farmland projects,including integrated water and fertilizer facilities. These initiatives effectively reduce water wastage caused by ?ood irrigationmethods in agriculture, contributing to agricultural water conservation.

Water Resource Utilization

Source controlPreferably use low-noise construction equipment and techniques, such as employinghydraulic piling machines instead of diesel-powered ones; carry out regularmaintenance and service on high-noise equipment to ensure normal operation andreduce noise caused by equipment malfunctions.Pathway control

Set up sound barriers or enclosures at construction sites to block noise propagation;arrange the construction layout reasonably so that high-noise equipment is as faraway as possible from residential areas and other sensitive locations.Time controlArrange construction schedules reasonably to avoid high-noise operations duringnighttime (10:00 PM to 6:00 AM) and lunch breaks. In special cases where nighttimeconstruction is necessary, obtain a nighttime construction permit in advance andnotify nearby residents.

1,658Total water consumption tons566,618Total purchased electricitykWhThe statistical scope covers the Zhengzhou headquarters and the Guangzhou of?ce.

Key Performance

Energy Management TargetReduce energy consumption by 30% compared with 2024 by 2030.

Green Design: Creating a Harmonious Ecosystem

4645

Waste generated during the Company’s production and operations primarily includes construction waste, domestic waste, andhazardous waste. The Company strictly classi?es waste in accordance with relevant regulations and implements measuressuch as continuously improving construction quality standards and promoting recycling and reuse. These efforts reduce wastegeneration at its source, enhance resource utilization, minimize the production of solid waste, and ensure its completeutilization and safe disposal.

For recyclable construction waste, such as concrete blocks and bricks, the waste is processed intorecycled aggregates, which can be used to produce recycled concrete or serve as material for roadbase construction. Additionally, some construction waste is converted into environmentally friendlybricks that, after undergoing mature processing techniques, achieve suf?cient strength andperformance for use in non-load-bearing walls.Non-recyclable construction waste is safely disposed of in land?lls, in strict accordance with localenvironmental protection requirements.At construction sites, different types of garbage bins are provided to classify domestic waste:

Recyclable waste: items such as waste paper, plastics, and metals are regularly sold to recyclingstations;Kitchen waste: this is collected centrally and processed by professional food waste treatmentcompanies;Other waste is periodically transported to municipal waste treatment facilities for properprocessing.

Waste Disposal

Waste Type

Domestic waste

Case Study

Intelligent Irrigation System Promoting Ef?cient Water ConservationThe intelligent irrigation system is a standout feature of theCompany’s high-standard farmland construction projects. Byutilizing sensors buried in the soil, the system continuouslymonitors soil moisture, temperature, and crop growth. Thesedata points are wirelessly transmitted to a big data analysisplatform in the central control room in real-time. Based onthis information, the intelligent irrigation system accuratelycontrols irrigation volume and timing to meet the actualneeds of crops, achieving the dual goals of water conserva-tion and ef?ciency. Compared to traditional irrigation meth-ods, the intelligent irrigation system reduces water usage byover 30% while improving crop yields by 10% to 15%.

Case Study

Case Study

Creating a “Zero-Waste Construction Site” Project for the Henan Food Industrial ParkThe Henan Food Industrial Park Project aims to serve as a demonstrationproject for a “zero-waste construction site.” By optimizing constructionplans and processes, the project reduces construction waste generation atits source. In addition, through the implementation of smart site modules,such as an intelligent sprinkler system and an environmental monitoringsystem, the project enables real-time monitoring and management of theconstruction site, effectively reducing resource waste and environmentalpollution. Furthermore, a comprehensive waste recycling system isestablished to sort and recycle recyclable waste, thereby enhancingresource utilization.

Dedicated temporary storage areas are set up for hazardous waste, such as waste oil, waste paint,and waste coatings. These materials are stored separately with anti-leakage measures to preventenvironmental contamination.Hazardous waste is collected and disposed of by quali?ed professional companies to ensure it isrendered harmless.A waste management register is maintained to record details such as the quantities, types, anddisposal methods of waste, ensuring that all waste management and disposal activities atconstruction sites comply with regulations.

Hazardouswaste

Henan Blood Center Project

A series of administrative measures have been implemented forthe Henan Blood Center Project to effectively reduce wastegeneration and increase resource utilization.·Waste reuse: a centralized waste storage area is established onthe construction site for the sorted and uni?ed collection of waste.Recyclable waste, such as concrete pieces and stone fragments, isprocessed into materials that can be used as sub-base layers inbuildings; crushed stone is used for back?lling drainage channels;and mortar residue generated from masonry and plastering isscreened and reused as an auxiliary additive for plastering mortar.These measures signi?cantly improve resource utilization.·Improved construction quality standards: the construction quality of frameworks is enhanced to help avoid or reduce mortarleakage; the layout ef?ciency of formwork materials is improved to reduce the generation of scrap.·Resource conservation measures: non-archived paper is printed or photocopied double-sided, and waste paper is eventuallyrecycled along with other paper products. Re?llable ink cartridges are used, and spent cartridges are collected and recycled bysuppliers.

Green Design: Creating a Harmonious Ecosystem

As consumer attention to ecologicaland biodiversity protection grows, theCompany may lose market share if itdoes not promptly adapt to theseevolving preferences.

Monitor consumerpreferences and activelyimplement biodiversityprotection measures.

ImpactDuration

PotentialFinancial ImpactStrategy

Long-term

Decreasedoperating income

Response Measures

ImpactDuration

PotentialFinancial Impact

Response Measures

Risk DescriptionRisk Type

Opportunity Type

OpportunityDescription

Products andservices

Protecting Ecosystem andBiodiversity

To strengthen material control, the Company has developed the  based on its actual business model. This system clearly de?nes proce-dures for the procurement, storage, use, maintenance, and scrapping of materials for self-operated construction projects.The Company also regularly inspects the management of materials by project teams to ensure that material management iscarried out in a standardized and effective manner.For packaging materials generated during projects, the Company strictly follows construction technical speci?cations toachieve recycling whenever possible; packaging materials that cannot be recycled are stored in designated areas to preventenvironmental pollution.

Material Management

The Company actively responds to the  and complies with applicable laws andregulations, including the , and local ecological protection policies. It isactively developing ecological restoration technologies to minimize the direct and indirect impacts of its production activitieson nature and biodiversity. At the same time, the Company prioritizes enhancing the expertise of teams through specializedtechnical training, thereby improving employees’ awareness and capability in biodiversity protection.

Governance

Case StudyTechnical TrainingIn 2024, to protect valuable tree species and enrich germplasm resources, the Company conducted technicaltraining sessions, including “Introduction to Palm Eco-Town’s Honors in the R&D of Multi-Season Camellia andNew and Superior Varieties,” “Key Points of Off-Season Planting and Maintenance Techniques for LandscapingPlants,” and “Distribution and Cultivation Techniques of Major Grain Crops in Henan Province.” These sessionseffectively enhanced employees’ awareness of species protection and local plant cultivation techniques,thereby promoting plant diversity protection efforts.

Market risks

For areas with damaged ecosystems,the Company can offer ecological resto-ration services, such as saline-alkali landremediation and polluted soil remedia-tion. These services not only help protectthe ecological environment but alsoenhance the Company’s social reputa-tion and generate economic bene?ts.

By actively ful?lling its biodiversityprotection responsibilities, the Companycan establish a strong brand identityand enhance its image as a corporatecitizen, boost its market competitive-ness and consumer acceptance, andattract more business opportunities andpartnerships.

Actively developtechnologies forlandscaping plantcultivation and ecologicalrestoration; adhere tosustainable developmentprinciples throughout theplanning, design,construction, andoperational processes;implement measures suchas green building andecological restoration; andparticipate in projectsrelated to ecologicalrestoration, pollutionprevention and control,green and low-carboninitiatives, and urbanecology to protect theecological environment.

Medium-term

Long-term

Increasedoperating income

Reputationopportunities

Green Design: Creating a Harmonious Ecosystem

5049

Case StudyYellow River Ecological Corridor Demonstration Zone in the Kaifeng Section

The Kaifeng Yellow River Ecological Corridor Demonstration Zone Project is a core component of Henan Prov-ince’s broader Yellow River Ecological Corridor Demonstration Project. Planned by the subsidiary Palm DesignGroup and constructed by the Company, the project employs advanced ecological restoration technologies tomitigate the severe salinization and fragile ecology of the Yellow River beach area in the Kaifeng section. Byplanting locally adapted native tree species, such as paulownia, cedar, and willow， the project establishes amulti-layered, multi-species ecological shelterbelt that effectively prevents wind erosion and sand ?xation, con-serves soil and water, and withstands extreme weather conditions.

Construction projects may affect native plant habitats, disturb micro-ecosystems, and disrupt the established ecological bal-ance. The Company assesses and identi?es ecosystem diversity risks using scienti?c methods, such as the Shannon-WienerIndex and Simpson Index, and utilizes its proprietary ecological protection technologies to carry out ecological restoration,thereby enriching species diversity and bolstering ecological stability.Simultaneously, the Company continuously monitors ecological stability. In projects related to river and lake management orcomprehensive rural environmental improvements, it conducts preliminary surveys of local plant and biological resources,analyzes the ?ndings, and incorporates them into project designs. Ecological restoration technologies are integrated intoproject plans, and during construction, these technologies, or close-to-nature approaches, are employed to enrich local spe-cies resources, ensure on-site species protection, and achieve ecological balance.

Risk and Opportunity Management

The Company continuously carries out the development, breeding, and protection of new plant varieties to effectively enrichspecies diversity and contribute to the conservation of biodiversity.The Company has organized ?ve domestic entities to carry out research on Magnolia germplasm innovation, high-resistancegermplasm screening, and ef?cient, safe breeding technologies. In doing so, it has not only cultivated new varieties ofMagnoliaceae plants with high ornamental value and strong resistance, thereby addressing challenges in cultivation andpropagation, but also achieved industrial-scale production of these new varieties. These efforts promote the upgrading of thedomestic Magnolia industry and the protective, promotional utilization of native Magnolia resources. By employing techniquessuch as natural variation selection, distant and near hybridization, as well as physical and chemical mutagenesis, theCompany has bred 16 new Magnoliaceae varieties. These include series such as dwarf multi-?owered varieties, multi-season?owering varieties, and evergreen cold-resistant varieties, which have signi?cantly enriched the genetic diversity of China’sMagnolia resources. In addition, the Company has established the most comprehensive joint germplasm resource garden inChina for both wild and cultivated Magnolia varieties. Through the introduction of in?orescence clusters, seeds, or seedlings,it has collected and preserved 135 wild-type species (including variants) of Magnoliaceae, spanning 10 genera, along with210 cultivated varieties from both domestic and international sources. Moreover, the Company has progressively conductedextensive ?eld surveys and ex situ conservation of wild populations of several rare Magnolia species, researching theirendangered mechanisms and developing strategies for their protective and promotional utilization, thereby providing a modelfor the protective development and sustainable utilization of rare plants.

Protection of Biological Genetic Diversity

The Company has developed a series of ecological protection technologies, including the “Multi-Coupled Long-Term Low-Car-bon Water Ecological Restoration Technology”, “Sponge City Green Space Water Landscape and Water Ecological Compre-hensive Restoration Technology”, and “Urban-Rural Green Space Landscape and Water Body Comprehensive Ecological Res-toration Technology”. These innovations have been successfully applied in projects, effectively enriching species diversity,enhancing ecosystem stability, and improving the ef?ciency of ecological restoration.

Protection of the Ecological Environment

Key Performance

As of the end of 2024, the new varieties and key technologies developed by the Company have been promotedand applied in over 100 greening projects across 15 provinces and cities nationwide.10 demonstration bases have been established,the production and promotion area for the new and superior Magnolia varieties has reached 3,450 mu,and a total of over 20 million Magnolia seedlings have been produced.

Green Design: Creating a Harmonious Ecosystem

0303

Innovation for Empowerment:

Focusing on CollaborativeIndustry AdvancementThe Company, closely aligned with its “One Core, Two Wings”development strategy, continuously innovates and strengthensits R&D to empower industry development. By consistentlyenhancing its performance to earn customer trust and diverselyboosting its core competitiveness, the Company actively collabo-rates with partners to jointly pursue a path toward sustainabledevelopment.

Responded TopicsInnovation-Driven Development, Safety and Quality of Productsand Services, Supply Chain Security,Data Security and Customer

Privacy Protection

Innovation for Empowerment:

Focusing on Collaborative Industry Advancement

Deepening R&D and Innovation

R&D Governance SystemThe Company has established a robust R&D management framework and formulated management systems, including the, , and . These systems standardize R&D project management and establish aninnovation-oriented incentive system that provides tiered rewards to R&D teams and core personnel achieving breakthroughtechnological results. This effectively stimulates employees’ proactivity and energizes the Company’s innovation drive.The Company has also established the Ecological Technology Research Institute, which is responsible for initiating,implementing, inspecting, and approving R&D projects, as well as managing achievement declarations and rewards.Additionally, it oversees patents and trade secrets, ensuring the smooth progress of the Company’s scienti?c and technologicalR&D and intellectual property-related efforts, while supporting the achievement of the Company’s development objectives.In 2024, the Company rigorously implemented project management in line with its incentive mechanisms. R&D personnelapplied for rewards multiple times under the relevant regulations, and all approved rewards have been disbursed.

The Company adheres to the philosophy of “making research serve practical purposes and driving technologicalempowerment,” continuously pursuing technological innovation in areas such as landscaping plants, ecological restoration,green construction, and modern agriculture. These efforts strengthen the Company’s core competitiveness and drivehigh-quality development through innovation.

R&D Platform Construction

The Company has successively established 14 R&D platforms at the national, provincial, and municipal levels, including thePalm R&D and Promotion Center of the National Engineering Research Center for Floriculture, the Henan Provincial EcologicalLandscaping Engineering Technology Research Center, and the Guangdong Provincial Ecological Landscaping EngineeringTechnology Research and Development Center. Leveraging these platforms, the Company has cultivated strong partnershipswith universities, research institutes, and scienti?c organizations. This has advanced the Company’s R&D innovation effortsand facilitated the consistent launch of new products and technologies.

R&D Team

The Company continues to enhance its technological innovation workforce by recruiting top-tier talent and fully leveragingtheir expertise. As of the end of the Reporting Period, the Company employs 111 R&D personnel, accounting for 12.18% ofits total workforce.

As of the end of the Reporting Period:

The Company operates1 national-level R&D platform, 7 provincial-level R&D platforms, and 6 municipal-levelR&D platforms;The Company has been recognized as a National High-Tech Enterprise;Its subsidiary, Palm Design Group, has been certi?ed as both a National High-Tech Enterprise and a Specialized andSophisticated Enterprise Producing Novel and Unique Products in Guangdong Province.

Key Performance

Male 59Female 52

Below bachelor’s degree 20Bachelor’s degree 69

Master’s degree 21Doctoral degree 1

By Gender

46.85%53.15%

18.02%

62.16%

0.90%

18.92%

By AcademicQuali?cation

Innovation for Empowerment:

Focusing on Collaborative Industry Advancement

R&D Strategy

The Company pays close attention to market trends, technological advancements, and other internal and external factors toidentify potential risks and opportunities in innovation and R&D. It also develops corresponding countermeasures to strengthenits core competitiveness.

The competitive environment and changing market demand may lead to adecline in market share if new products and technologies do not meet marketexpectations.

Monitor and promptly grasp market trends; conduct product R&D in accor-dance with business needs; establish and improve an innovation and R&Dmechanism while continuously increasing R&D investment to enhanceinternal R&D capabilities.Actively introduce new talent, accelerate the construction of R&D platforms,and continuously strengthen industry-university-research cooperation to drivebreakthroughs in key technologies and facilitate achievement transformation.The Company’s R&D efforts in its main business span multiple interdisciplinary?elds, posing signi?cant challenges in achieving breakthroughs in core technolo-gies. These complexities may lead to R&D cycles that are longer than initiallyanticipated.

Risk DescriptionReporting Period

Medium- and long-term

Medium- and long-term

Decreased operatingincomeIncreased R&Dinvestment costs

Potential Financial ImpactResponse Measures

Reporting PeriodPotential Financial ImpactResponse Measures

Risk Type

Market risks

Opportunity DescriptionOpportunity Type

PolicyopportunityIndustrialupgrade andtransformation

opportunity

Technical risks

Proactively identify policy changes and align project R&D efforts withthem; continuously advance the development of ecological restorationtechnologies and strategically plan modern agricultural technology deploy-ment.Long-term

Increased operating income anddecreased R&D costsPolicies advancing new urbanization, rural revitalization, and ecological resto-ration have created signi?cant demand for projects such as smart agriculturetransformation and urban green space development. Supported by thesepolicies, the Company can enhance its innovation capacity and reputation, lead-ing to substantial pro?tability.

Actively apply information and digital technologies, deepen smart empow-erment, and accelerate the process of digital transformation.Long-term

Increased operating incomeand decreased operating costsThe introduction of digital, intelligent, and green technologies can drive the Com-pany’s industrial transformation and upgrading.

5655

Innovation for Empowerment:

Focusing on Collaborative Industry Advancement

R&D Risk Management

Prior to initiating R&D projects, project leaders conduct both online and of?ine research to gain insights into industrydevelopment trends and the Company’s growth needs. They prepare an R&D project initiation report aligned with theCompany’s long-term development plans. Once the report is completed, the Ecological Technology Research Instituteorganizes expert reviews, adjusting R&D directions based on feedback to mitigate risks. Throughout the R&D process, projectleaders employ dynamic management and prepare annual summary reports to monitor project progress and prevent R&Drisks.R&D ObjectivesAligned with strategic development goals, the Company has established R&D objectives focusing on four key areas: patentquantity, patent transformation ef?ciency, industry–university–research collaboration, and government projects.

R&D Achievements

The Company is committed to plant germplasm innovation,ecological restoration technology R&D, and green carbonpeaking and carbon neutrality technology R&D, while alsoactively advancing modern agricultural technology R&D.During the Reporting Period, the Company steadilyincreased its R&D investments and steadily implementedprojects such as “Magnoliaceae Plant Germplasm Innova-tion, Breeding, and Industrial Utilization,” “Multi-CoupledLong-Term Low-Carbon Water Ecological Restoration Tech-nology,” and “High-Standard Farmland Construction,”achieving the effective transformation of its technologicalachievements.

Key Performance

ObjectivesAchievements in 2024Increase the number of patent applications year over yearAchieve a patent technology transformation ef?ciency of at least 95%Expand and maintain no fewer than two industry–university–research

cooperative relationships annuallyApply for at least three government projects each year

Over 10% year-over-year growth

AchievedAchievedAchieved

Technology Achievement Awards

Comprehensive Research on Restoration Technologies for River

and Lake Green Corridors and Waterside EcosystemsFirst Prize in Science and Technology Progress Awards of the

Chinese Society of Landscape Architecture

Research on Key Technologies for Green Construction in

Hardscape ProjectsSecond Prize in Science and Technology Progress Awards ofthe Chinese Society of Landscape Architecture

Investment in R&D: 1.42(in RMB 100,000,000)The Company applied for48 patents and published 15 papers;As of the end of the Reporting Period, the Company held a total of117 authorized patents, including 22invention patents, 2 design patents, and 93 utility model patents. In addition, it holds 24 softwarecopyrights and 202 trademarks.

Key Technologies and Applications for Targeted Collaborative

Management of Basin Water Environments Addressing

Multidimensional Pollution Pathways

First Prize in Science and Technology Achievement Award ofthe Education Department of Henan Province

Magnoliaceae Plant Germplasm Innovation, Breeding, and

Industrial UtilizationThird Prize in Science and Technology Progress Awards of the

Chinese Society of Landscape Architecture

Innovation for Empowerment:

Focusing on Collaborative Industry Advancement

Key R&D Projects

Development of New Plant Varieties

The Company has cultivated 80 new Magnolia varieties, of which 16 have obtained national plant varietyrights, 1 has obtained plant variety rights in the United States, and 17 are registered with the International Mag-nolia Association. These achievements have injected new momentum into the revitalization and development ofChina’s magnolia industry. For the ?rst time in China, the Company conducted a systematic study on the waterlogging tolerance of Mag-noliaceae plants. It also, for the ?rst time, utilized nuclear and plastid data to establish a clearly de?ned phyloge-netic framework for the Magnolia genus, thereby testing the concept of a northern subtropical ?ora for Magnolia.The Company has established a key technology system for the industrialization of new and superior Magnoliavarieties, overcoming challenges in standardized production. To date, it has been granted 1 invention patent and7 utility model patents, and it has formulated 1 local standard. The Company has collected and preserved 135 wild-type species (including variants) of Magnoliaceae, span-ning 10 genera, along with 210 cultivated varieties from both domestic and international sources. This effort hasresulted in the establishment of the most comprehensive joint germplasm resource garden for Magnolia varietiesin China.The Company has built 10 demonstration bases, with the production and promotion area for new and superiorMagnolia varieties reaching 3,450 mu. In addition, over 20 million seedlings of these varieties have been pro-duced. Project teams have published a total of 42 related papers and compiled 2 professional books.

Water Ecological Restoration Technology R&D

Precision Agriculture Management Technology

This technology employs unmanned aerial vehicle remote sensing, the Internet of Things, and other advanced toolsto achieve comprehensive, real-time monitoring and management of farmland. Through the system, farmers canobserve crop growth conditions and monitor pest and disease occurrences, enabling them to take timely actions forscienti?c management. The application of precision agriculture management technology has enhanced agriculturalproduction ef?ciency, reduced costs and risks, and, via high-standard farmland construction projects, boosted cropyields by over 20% in some demonstration areas, thereby signi?cantly increasing farmers’ incomes.

In 2024, the Company continued its research on water ecologicalrestoration technology by integrating a “Multi-Coupled Long-TermLow-Carbon Water Ecological Restoration Technology”. In collabo-ration with the Institute of Biology Co., Ltd., Henan Academy ofSciences, the Company conducted research on a “Microorganism -Native Plant Joint Restoration Technology for Black and OdorousWater”. This technology leverages the characteristics of commonplants, organisms, and microorganisms in nature to build alow-cost, low-maintenance, green, ecological, puri?cation, andrecycling system. It ?lls the gap in the Company’s product R&D formicrobial restoration of black and odorous water and provides asystematic solution for the restoration of rural black and odorouswater.In this project, the Company developed 2 types of multifunctional microbial agents for soil restoration and 2supporting substrates, ?led 6 patents (including 1 invention patent), and published 2 papers.

Innovation for Empowerment:

Focusing on Collaborative Industry Advancement

Case StudyAnnual Meeting and Industry Exhibition of the Chinese Society of Landscape Architecture

In November 2024, the Company was invited to theAnnual Meeting and Industry Exhibition of the ChineseSociety of Landscape Architecture, held for the ?rst timein South China under the theme “People’s Gardens,Shared Scenery.” The Company showcased its expertiseand extensive practical experience in landscape planningand design, engineering construction, and integratedoperations through rich visual presentations and videos.Company representatives actively participated in themat-ic forums and seminars, discussing emerging issues anddevelopment trends in the landscape architecture indus-try, and sharing insights on the Company’s explorationsand practices in transformation, upgrading, and greendevelopment.

Industry Collaboration and AdvancementAs a leader in ecological co-construction in the industry, the Company actively establishes a three-dimensional interactivemechanism of “peer exchange – industry – university – research cooperation – standard formulation”. It actively participates invarious industry-related academic exchange conferences, promotes comprehensive technical cooperation with colleges anduniversities, and takes the lead in formulating multiple industry standards to inject vitality into industry development.

Protection of Intellectual Property RightsThe Company places great emphasis on intellectual property management. To protect its own intellectual property rights andto ensure it does not infringe on the rights of others, it has formulated and implemented the  along with other relevant rules and regulations. In 2024, the Company’s R&D personnel routinely accessed theof?cial website of the China National Intellectual Property Administration to review patent application trends in relatedindustry ?elds. This proactive approach helps prevent potential intellectual property infringement incidents. The Company alsoengaged intermediary agencies to compile and review its intellectual property applications, ensuring comprehensive oversightof its IP portfolio. During the Reporting Period, the Company held in-depth discussions with intellectual property agencies toconsult on key technological aspects of IP applications. These interactions have signi?cantly enhanced the expertise of its IPmanagement team members, project technicians, and R&D personnel.To further strengthen its IP management and to mitigate risks such as trademark infringement that can lead to economiclosses, the Company supplemented the registration for 32 trademark categories across four trademarks. In addition, itcompleted copyright registrations for trademarks in 16 sub-categories. Comprehensive investigations were also conducted onenterprises suspected of trade name infringement. Following legal analysis to de?ne the scope and scale of theseinfringements, administrative and legal actions were taken; these efforts resulted in successful litigation and enforcement,thereby further safeguarding the Company’s IP rights and legal rights and interests.

Industry exchangeThe Company has joined 11 industry organizations. Via academic conferences, exhibitions,and other platforms, it shares its frontier technologies, innovative philosophies, and practicalexperience, engages in discussions about industry trends and challenges, and fosters robustinformation ?ow and intellectual dialogues. These efforts help propel technologicaladvancements and support the overall growth of the industry.Industry–University–Research CooperationLeveraging the strong research capabilities and abundant talent resources of partneruniversities, the Company has undertaken a series of joint projects in industry – university –research collaboration. During the Reporting Period, it partnered with institutions such as theHenan Academy of Sciences, Zhengzhou University, the Institute of Advanced AgriculturalSciences of Peking University, and Henan Agricultural University. These collaborations haveaccelerated the conversion of research breakthroughs into tangible production outputs,offering solid support for the Company’s product innovation and technological upgrading.Standard formulationDuring the Reporting Period, in cooperation with authoritative industry institutions andenterprises, the Company conducted in-depth research on sector needs and spearheadedthe formulation and publication of four enterprise standards. One such standard is the. Additionally, the Company contributed to the issuance of three group standards,such as the Commonly 

Key Industry–University–Research Projects

The Company partnered with the Shanghai Academy of Landscape Architecture Science and Planning to conduct“Research on Carbon Source/Sink Accounting for Urban Green Spaces Based on the Whole Life Cycle.” This project?lled a critical gap in urban green space carbon sink accounting and further enhanced the Company’s industryin?uence.Achievements: the Company established a comprehensive whole life cycle carbon accounting method for urbangreen space construction, published 2 research papers, and formulated 1 standard related to urban green spacecarbon sinks.

Innovation for Empowerment:

Focusing on Collaborative Industry Advancement

Strengthening QualityManagement

Quality Management SystemThe Company upholds the business philosophy of “quality ?rst, with quality as thecornerstone” and strictly complies with the ISO 9001 quality management system.In combination with its own circumstances, the Company has established acomprehensive framework of policies, procedures, and performance evaluationsystems that create a fully functional, streamlined quality management systemwith clearly delineated responsibilities. This framework bolsters managementcapability, strengthens governance, and improves risk control, providing robustinstitutional support for the quality of its products and services. To date, theCompany has passed the ISO 9001 quality management system certi?cation.During the Reporting Period, the Company did not incur any major qualityincidents.

Quality Culture DevelopmentThe Company attaches great importance to quality management and continually promotes quality culture through variousinitiatives, including quality training sessions and Quality Month. These efforts are designed to boost overall quality awarenessamong all employees and to nurture a strong quality culture exempli?ed by the “compete, learn, collaborate, and excel” spirit.During the Reporting Period, the Company conducted quality training following the ?,achieving excellent outcomes.

The Company has always adhered to the principles of excellence in craftsmanship, building its brand on a foundation ofresponsibility and earning trust through outstanding service. By continuously improving product quality, strictly ensuringengineering safety, and enhancing service excellence, the Company strives to deliver exceptional projects and services thatestablish a positive corporate image and earn long-term customer trust.

Case StudyQuality Training on High-Standard FarmlandTo ensure engineering quality and deliver exemplary projects, the Company places strong emphasis onenhancing the construction quality awareness and professional skills of its workforce. It has organizedcomprehensive, in-depth training sessions that cover the interpretation of policies, regulations, andfoundational knowledge related to high-standard farmland construction, training on technologies andprocesses relating to the construction of agricultural water facilities, ?eld roads, and drainage systems, anddetailed review of quality standards and norms, including case studies and problem-solving methodologies.These initiatives empower construction personnel with the key technologies, quality standards, andoperational procedures necessary for high-standard farmland projects, ensuring strict adherence duringproject execution and reducing the incidence of quality issues.

ISO 9001 Quality Management System

Certi?cateThe Company has developed a ? that de?nes the roles and authorities of various departments andpositions involved in quality management to standardize and continuously improve quality management work. The legalrepresentative of the Company is designated as the ?rst person responsible for the quality management of the Company andbears ultimate leadership responsibility for engineering quality. To further enhance engineering quality management, theCompany has formulated and implemented quality control speci?cations, such as the ?. These measures ensure standardized controlacross the entire project life cycle, from project initiation to ?nal acceptance. Additionally, by relying on the ?, the Company has established rigorous quality acceptance and assessmentstandards to reinforce supervision and management.Based on its organizational structure and business orientation, the Company has established a three-tier management systemto ensure that the products and services across each business line are developed and delivered in an orderly manner.

Product and

ServiceManagement

Structure

HeadquartersServing as the main body responsible for “group-level management and control,segment-based operations, and specialized development,” the Headquarters employs a “stra-tegic decision-making + centralized control of key resources” model. It oversees strategic deci-sions and the centralized management of critical resources, such as personnel, ?nances, andmaterials, from a macro perspective, directing the development and resource allocation forthe Company’s products and services.Specialized subsidiariesIn alignment with a “specialized operation” approach, the subsidiaries are tasked withachieving professional objectives. They manage the production, operational activities, andspeci?c business functions of their af?liated entities, thereby enhancing the professionalismand re?nement of the Company’s products and services.Regional of?cesAs regional management centers, these of?ces are authorized to independently handleproduction and operational management activities. They can ?exibly adjust products andservices to suit local market characteristics and customer needs, thus enhancing marketresponsiveness.

Innovation for Empowerment:

Focusing on Collaborative Industry Advancement

Protection of Customers’ Rights and Interests

Customer Complaint Process

Collect complaint information Communicate with the complainantImplement the resolution plan

Verify the complaint detailsReport for handling and approval

Provide feedbackon the outcomes

The Company has always made customer satisfaction the core objective of its operations. It has built a comprehensivecustomer service system covering the entire service cycle and actively broadened its communication channels through onlineplatforms, of?ine follow-up visits, and questionnaires to gather customer feedback and suggestions. The Company iscommitted to maintaining strong customer relationships and continuously improving the quality and level of its service. At thesame time, it has established a complaint management mechanism based on the principles of “seeking truth from facts,fairness, reasonableness, and prompt resolution.” This mechanism standardizes the customer complaint handling proceduresto maximize the ful?llment of legitimate customer demands and to resolve issues effectively.During the Reporting Period, the Company received 21 customer complaints and achieved a100% resolution rate.

Supply Chain Management SystemThe Company strictly adheres to the requirements of the  and the. It has formulated systems such as the and the. Thesemeasures clarify the roles and responsibilities for tendering, procurement, material management, and supplier management,thereby standardizing work processes and procurement behaviors, standardizing procurement work, achieving systematicsupplier management, and continuously enhancing the Company’s ability to prevent supply chain risks.The Company’s procurement management organization comprises the Procurement and Bidding Leading Group and the BidEvaluation Group. The Company’s General Manager serves as the Head of the Leading Group and bears full responsibility forthe management, decision-making, and coordination of the entire bidding and procurement process. The Bid Evaluation Groupis tasked with reviewing the bidding process for compliance, assessing bidder quali?cations, and evaluating the rationality ofpricing. Meanwhile, the Construction Management Center, along with regional subsidiaries and project teams, is responsiblefor managing and evaluating suppliers.

17,465Total number of suppliers:

Total number of newly contracted suppliers that have signed the Integrity Agreement:

808 (achieving a100% signing rate among newly contracted suppliers).

；

Key Indicators

2024 Quality Month

On September 24, 2024, the Company hosted a Quality Month project observation event in Lankao, HenanProvince. The event brought together project teams from subsidiaries covering Henan, Central China, NorthChina, and the general contracting platform. Through a format combining on-site observations with groupdiscussions, participants engaged in hands-on experiences and in-depth exchanges to explore new methodsand ideas for enhancing engineering quality.

Maintaining Stable Supply ChainThe Company’s procurement activities cover construction projects; key equipment; critical materials; and services, includingsurveying, design, and operations. The Company strictly complies with all applicable laws and regulations, fully standardizingthe end-to-end process of supplier admission, evaluation, and exit. It continually improves the supply chain managementsystem and actively collaborates with supplier partners, aiming to minimize supply risks and ensure stable production andoperations.

010203040506

Case Study

Innovation for Empowerment:

Focusing on Collaborative Industry Advancement

Supply Chain Security Strategy

Impact, Risk, and Opportunity Management

Changes in market demand may lead to rising raw material prices and increasedprocurement costs.

Integrate supplier chain resources to enhance bargaining power and lowerprocurement costs.Generate procurement orders as planned to reduce material waste at thesource.Strengthen the management of reserve suppliers for key raw materialsand establish long-term cooperation with high-quality suppliers to improvesupply chain stability.Major suppliers may be unable to deliver normally due to natural disasters orinsuf?cient production capacity, affecting project progress, potentially causingdelays or necessitating additional re-procurement, thereby increasing procure-ment costs.

Risk DescriptionImpact Duration

Short-term

Short-term

Increased procurement costsand decreased sales revenue

Increased procurement costsand decreased sales revenue

Potential Financial

Impact

Impact Duration

Potential Financial

Impact

Response MeasuresRisk Type

Market risks

Opportunity DescriptionOpportunity Type

Digitaltransformationof the supply

chainGreen supply

chainconstruction

Supply chaindisruption

Long-termThrough advanced technologies such as the Internet of Things and big dataanalytics, supply chain management can be made intelligent and more ef?cient.

Long-termPrioritize suppliers that have obtained green certi?cations, promote the use ofrenewable materials and the recycling of waste building materials, and reducethe supply chain’s carbon footprint, thereby enhancing the Company’s reputa-tion.

Implement strict supplier admission management; regularly review andmonitor suppliers’ quality standards to ensure products meet requiredspeci?cations; set up acceptance teams to rigorously verify material quan-tities and conduct sample quality tests, ensuring material quality andsafety.Inadequate quality control by suppliers may result in product quality issues thataffect project construction progress or quality, potentially damaging the Compa-ny’s reputation and customer satisfaction, and even leading to legal liabilities.

Short- andmedium-termQuality risks

6867

Increased operating income

Decreased operating costs

The Company reviews and evaluates supplier quali?cations, reputation, product and service quality, as well as production andsafety management practices to mitigate the risks posed by substandard suppliers. In addition, a dedicated Acceptance Teamhas been established to rigorously monitor material quality and safety.

Sustainable Supply Chain Management

The Company is committed to establishing a fair, transparent, and sustainable supply chain management system. It requiressuppliers to comply with applicable laws and regulations, strengthens supplier admission and evaluation processes, andactively promotes the enhancement of suppliers’ own sustainable development capabilities to ensure the long-termsustainability of the supply chain.

Increased procurement costsand decreased sales revenue

Innovation for Empowerment:

Focusing on Collaborative Industry Advancement

Supplier Management

Clean ProcurementThe Company continuously strengthens the compliance awareness of its procurement personnel, promotes clean procurementpractices, and signs the  with suppliers to clearly de?ne the ethical standards that both parties must adhereto in commercial activities. This ensures that the collaborative process is legal, fair, and transparent, safeguarding theCompany’s high-quality development.

Data Security ManagementThe Company attaches great importance to information security protection and strictly complies with the  as well as other applicable laws and regulations. It has established policies and procedures suchas the , and ? to rigorously regulate information management and usage. These efforts continually enhancethe Company’s information security management level and technical safeguards, ensuring network security and the smoothoperation of production and business activities. During the Reporting Period, the Company did not experience any signi?cantnetwork security incidents.

The Company encrypts all application system dataand interface transmissions. It strictly prohibits theexternal disclosure of customer and employee per-sonal information,controls internal access rigorous-ly, and permits privacy information queries only byemployees authorized by the management.

The Company performs daily incremental back-ups at the operating system and data levels, con-ducts full backups weekly, and carries out month-ly recovery drills. All business systems aresecured with ?rewalls, antivirus software, bastionhosts, and routine vulnerability scans.

The Company conducts weekly information securi-ty education on its internal OA portal and regularlyprovides information system operation securitytraining for all employees. Over the year, the Com-pany held6 training sessions that reached morethan 1,400 participants.

Customer Privacy Protection

The Company places great emphasis on safeguarding customer information con?dentiality and protecting customers’ privacyrights. Throughout the entire application life cycle, from requirements analysis to system implementation, each applicationundergoes joint evaluation by the Business, Internal Control, and IT departments before measures such as data encryption andoutput desensitization are implemented.

Protecting Data Privacy

Case StudySpecial Training on Key Issues and Countermeasures in Compliance Management andAudit Inspections for the Bidding and Procurement of State-Owned Enterprises

To drive lawful and compliant operations and standardizethe tendering and bidding process, hereby enhancing thebidding and procurement capabilities of relevant profession-als, improving procurement ef?ciency, clarifying applicablelaws and regulations, and mitigating legal and other opera-tional risks, the Company’s Human Resources Departmentorganized a three-day training session. This session focusedon “Strict Management,” state-owned enterprise biddingand procurement, the cultivation of new quality productiveforces, as well as the main issues and countermeasures incompliance management and audit inspections during bid-ding and procurement for state-owned enterprises.

Admission of suppliersThe Company has estab-lished strict supplier admis-sion criteria. Suppliers mustupload prequali?cation doc-uments prior to bidding;those that pass the prequali-?cation are added to theCompany’s “List of Quali?edSuppliers.”

Supplier evaluation

The evaluation of new suppli-ers is based on criteria includ-ing basic quali?cations, on-siteinspections of the supplier’soperating premises, assess-ment of their managementstructure, and reputation eval-uations, as well as ESG-relatedmanagement indicators suchas product and service quality,production practices, andsafety and civilized manage-ment.

Supplier blacklist management

The relevant system stipu-lates that if a supplier engag-es in any prohibited behavioras de?ned by the system, itwill be placed on the supplierblacklist and will no longer beeligible to participate in theCompany’s bidding processes.

System encryption and access controlData backup and system protection

Information Security Protection Measures

Information security educationInformation security emergency drills

The Company restores production system data totest systems on a monthly basis and conductsinternal emergency drills every month.

Innovation for Empowerment:

Focusing on Collaborative Industry Advancement

Caring for Employees:

Ensuring Safety and Health

The Company always adheres to a “people-oriented” philosophy,fostering an equal and inclusive corporate culture. It safeguardsthe legitimate rights and interests of its employees, prioritizestalent development, and provides effective incentive mechanismsand comprehensive welfare bene?ts to create a safe and healthyworking environment, thereby striving for the mutual progress ofthe Company and its employees.

Responded TopicsProtection of the Rights and Interests of Employees, Employee

Training and Development,Occupational Health and Safety

0404

Caring for Employees: Ensuring Safety and Health

Recruitment and EmploymentThe Company upholds the principles of fairness, openness, and impartiality, and has established comprehensive recruitmentmanagement policies that clearly de?ne recruitment and selection processes, ensuring procedural compliance and eliminat-ing employment discrimination. It employs diversi?ed recruitment channels, including online recruitment on platforms such as51Job and Zhaopin.com, internal and external referrals of outstanding talent, and targeted headhunting services, to attractexceptional professionals from across society.As of the end of the Reporting Period, the Company employed a total of 911 individuals, including 7 employees withdisabilities and 23 employees from minority groups. In 2024, 140 new employees were hired.

Protection of the Rights and Interests of Female EmployeesThe Company strictly complies with all applicable national laws and regulations to actively safeguard the legal rights andinterests of female employees during pregnancy, childbirth, and breastfeeding. It ensures that female employees receivetheir entitled paid leave for prenatal examinations, maternity, and breastfeeding, with wages paid according to standardrates. In 2024, on International Women’s Day, female employees were granted a half-day off and received Women’s Daybene?ts.

Protecting the Rights andInterests of Employees

The Company insists on lawful employment and strictly complies with the , the , and other applicable laws and regulations. It continuously re?nes its humanresource management system by formulating and implementing systems such as the ,and . By standardizing recruitment, termination, compensation,promotion, work hours, and leave, and by signing labor contracts with employees in accordance with the law, the Companyrespects and safeguards employees’ rights and interests while actively fostering harmonious and stable labor relations.The Company is committed to providing equal opportunities to every employee, promoting inclusive employment, andrespecting diverse backgrounds. It strictly prohibits any form of discrimination based on gender, ethnicity, age, nationality,marital status, or other factors, thereby ensuring that all employees enjoy equal opportunities in recruitment, compensation,training, promotion, and other aspects. During the Reporting Period, there were no incidents of employing child labor orforced labor, and the labor contract signing rate was 100%.

Male 546Female 365

By Gender

40.07%

59.93%

Doctoral degree 1Bachelor’s degree 594

Master’s degree 78College degree 215High school degree or below 23

23.60%

65.20%

8.56%

2.52%

0.11%

By AcademicQuali?cation

Under 30 years old 17730 (inclusive) to 40 (exclusive)years old 52640 (inclusive) to 50 (exclusive)years old 18150 years old or above 27

19.87%

57.74%

19.43%

2.96%

By Age

Senior management 9Middle management 47Grassroots 855

0.99%

By Job Level

93.85%

5.16%

Manufacturing 397Sales 55Finance 90

Administration 121Technology 248

By Profession

27.22%

6.04%

43.58%

9.88%

13.28%

7374

Caring for Employees: Ensuring Safety and Health

During the Reporting Period, the Company’s Trade Union had 191 members, convened 3 Employee Congresses,and deliberated and approved 3 proposals.

Key Performance

Employee CareTo further enrich employees’ cultural lives, foster a positive corporate culture, and enhance employee happiness, the Companyorganizes a variety of cultural and recreational activities.

Democratic ManagementThe Company adheres to the principles of “lawfulness, compliance, orderly advancement, transparency, fairness, andjustice.” It has established a democratic management system based on Employee Congresses and implements an employeesupervisory system in accordance with the law, thereby ensuring that employees have the right to participate in manage-ment decision-making. This approach further promotes the harmonious integration and collaborative development betweenthe Company and its employees. Additionally, the Company’s Trade Union strictly complies with the , the , and the, as well as other applicable laws, regulations, and guidelines for dailymanagement.The Company also places a high priority on communication with its employees by establishing multiple channels to listen tograssroots voices, thereby actively cultivating a positive corporate cultural atmosphere.

Compensation ManagementCompensation and Bene?ts

The Company highly values the contributions of its employees and has established systems such as the  and . It has built a compensation and performance management systemthat links pay with performance, ensuring that employee compensation is commensurate with job value, individual perfor-mance, and market rates. The Company’s remuneration structure comprises ?xed pay, variable pay, and bene?ts, with vari-able pay being linked to both Company performance and individual outcomes. This approach aims to align responsibility withinterests, capability with value, risk with return, and performance with rewards, thereby promoting the continuous, stable,and healthy development of the Company.The Company has established a clear performance appraisal and feedback mechanism. It conducts annual performanceappraisals that cover all employees to assess the achievement of key indicators and to objectively and fairly evaluate overallperformance across all levels. Additionally, it has instituted a performance feedback and grievance procedure that allowsemployees who disagree with their appraisal results to ?le an appeal in writing or via email to the Human Resources Depart-ment within 3 working days of receiving their evaluation.

Employee Bene?tsThe Company adopts diversi?ed strategies to provide employee bene?ts. In addition to statutory bene?ts, it offers compre-hensive health bene?ts, meal subsidies, and organizes various employee events that enhance employees’ sense of belong-ing, recognition, and cohesion.

The Company contributes to social insurance and housing funds for all employees;The Company ensures that employees enjoy statutory rest days, public holidays, and paid leave;The Company provides incentive allowances and education and training opportunities to encourage theenhancement of professional skills;The Company offers communication and meal allowances;The Company supplies holiday bene?ts and organizes variouscultural and entertainment activities;The Company arranges annual physical examinations toensure the physical and mental well-being of employees;The Company purchases group commercialinsurance for employees, thereby improving itsinsurance system and effectively reducing the?nancial burden on employees’ families in theevent of accidents or illness.

Team Building Activity

Case Study

Caring for Employees: Ensuring Safety and Health

The Company invested RMB 200,000 in employee training.

KEY PERFORMANCE

Employee Training

Palm Eco-Town’s Cloud Academy

Supporting Employee Growth

The Company adheres to the philosophy that “the appreciation of human capital is paramount to that of other forms ofcapital” and encourages every employee to adopt a lifelong learning mindset to continuously enhance their abilities andcompetencies. It actively creates comprehensive, multi-tiered learning opportunities and growth spaces with the aim ofbuilding a learning-oriented organization centered on “application-oriented learning”.To support these objectives, the Company continually enhances its employee training system by integrating both online andof?ine methods. It employs external experts in conjunction with internal instructors to deliver a diverse range of trainingcourses that cater to the development needs of different talent groups, thereby continuously empowering employee growthand advancement.Additionally, to accelerate the building of a learning-oriented workforce and foster a positive learning environment, theCompany has formulated the ??. These measures provide support and incentives for employees to upgrade theiracademic quali?cations and skills, motivating them to continuously realize their potential and value.

Implementation of the Training System in 2024

Training Platform Construction

The Company has actively developed an O2O learning ecosystem under the guiding principle of “providing employees withef?cient and convenient training services.” It established an internal training and learning platform, “Palm Eco-Town’s CloudAcademy (the ‘Cloud Academy’)”, and implemented the  to ensure robust institutional support for the platform.The Company continuously operates “Palm Eco-Town’s Cloud Academy” and has implemented a monthly premium courserecommendation strategy as part of its operating model. It has built a comprehensive digital knowledge system that currentlyoffers over 700 courses, more than 100 internal courses and 640 external courses, ensuring the ef?cient dissemination andreuse of premium knowledge while documenting every step of employee growth. Since the launch of the platform, the Companyhas conducted over 20 training projects, cumulatively providing ef?cient digital training to more than 400 participants.

Talent is the core driving force behind the Company’s development. The Company places great importance on talentdevelopment by continuously enhancing its training system and building platforms that ensure systematic and sustainableprofessional growth. It provides equal opportunities for promotion to all employees to meet their career development needsand to reinforce the Company’s competitiveness in talent.

010203

The Company organized 5induction and empowermenttraining sessions for new em-ployees through the CloudAcademy, with a total of 72trainees participating. Thesesessions reached 20 differentbusiness units.。

The Company organized andcoordinated 61 specializedtraining sessions in alignmentwith business initiatives, cover-ing 15 distinct professional cat-egories. These sessions accu-mulated a total training dura-tion of 5,002 hours, with 3,900trainee attendances recordedand a satisfaction rate of 90%.

The Company continuously culti-vates and maintains an internalteam of outstanding instructorsaligned with its business needs.In accordance with establishedsystems and standards, it con-ducts annual evaluations ofinstructor levels and awardshonor certi?cates. During theReporting Period, 4 new juniorinstructors were added, bringingthe total number of certi?edinstructors to over 100.

Training of new employeeSpecial training coursesInstructor team development

Caring for Employees: Ensuring Safety and Health

Case Study

The Company has established a multidimensional employee development mechanism and constructed a scienti?c, transparentcareer progression matrix. Based on differences in job complexity and professional requirements, the framework de?nes 21 joblevels and eight major job sequences. In addition, dynamic growth ladders, ranging from 5 to 7 levels, are established based on jobauthority and responsibilities. This system supports both horizontal and vertical career development, enabling employees to chartclear developmental paths. Through promotion incentives, the Company continuously motivates employees and helps them realizetheir full potential and self-worth.

Induction Training for New Employees in 2024To help new employees better integrate into the Palmfamily and adapt to the organization’s development, theHuman Resources Department organized ?ve rounds ofinduction training during the Reporting Period. The train-ing curriculum encompassed four major modules: AnOverview of Palm Eco-Town’s Development and Corpo-rate Culture, Human Resource Management and Develop-ment Mechanisms, Company Systems and Process Man-agement, and Financial Information Platform Construction- Expense Management. These sessions provided newhires with a deeper understanding of the Company’sorganizational structure, systems, processes, corporateculture, and core values.

Training for Human Resources Teams

In 2024, the Company conducted targeted trainingfocused on “Risk Management in the Implementation ofHuman Resource Systems by HR Teams in Subsidiariesand the Application of HR Expertise in Business.” Uponcompletion of the empowerment training, an onlineexamination was administered, with an average score of

80.8. This post-training assessment deepened partici-

pants’ understanding of key concepts and, more impor-tantly, enabled them to apply their knowledge to practi-cal work. The initiative helped improve work ef?ciency,reduce employment risks, and support the achievementof the Company’s operational objectives.

Streamlined Promotion Pathways

Promotion and Development Pathways

Within-levelpromotion

PromotionDevelopment

Cross-unit andsame-sequence

development

An employee may be promoted one levelwithin the same job tier, that is, the jobtitle remains unchanged while the level isupgraded, allowing adjustment to thenew salary standard;

Under certain conditions, an employeemay transfer to another business unitwhile remaining in the same jobsequence. In this case, the job level andsequence remain unchanged, eventhough the business unit changes; afterthe transfer, and provided that promotioncriteria are met, the employee’s level maybe adjusted upward by one tier;

Verticalpromotion

Cross-unit andcross-sequencedevelopment

When promotion conditions are met, anemployee may advance to the nexthigher level within the same jobsequence. This results in a change of thejob title. In principle, promotions follow alevel-by-level process; however, in specialcases, skip-level advancement may beapproved;

Under certain conditions, an employeemay transfer to another business unit andswitch to a different job sequence whileretaining the same job level. Once trans-ferred, provided that promotion criteriaare satis?ed, the employee’s level may beadjusted upward by one tier.

Within-unit andcross-sequence

promotion

When promotion conditions are met, anemployee may be exceptionally promot-ed into a management sequence andassume managerial responsibilities. Thisresults in changes to both the jobsequence and the job level;

Cross-unit andsame-sequence

promotion

When promotion conditions are met, anemployee may be promoted within thesame job sequence across different units.In this scenario, the job sequence remainsunchanged, but both the job level andthe business unit change.

Case Study

Caring for Employees: Ensuring Safety and Health

Occupational Health and Safety Governance

Indicators and Goals

Adhering to the principle of “speci?c accountability with comprehensive coverage,” the Company has established anoccupational health and safety management system that “reaches every corner horizontally and extends to all levels vertically”.The Safety Technology Department serves as the primary responsible unit, with designated agencies further subdividing safetyproduction functions. The Company has developed annual safety production key points and emergency response plans, andestablished a hierarchical responsibility and cascading accountability mechanism. By continuously perfecting its safetymanagement system, the Company has ingrained the consensus that safety responsibilities are paramount, ensuring that allaspects of production and operations proceed safely and orderly.

Safeguarding Safety ProductionThe Company deeply recognizes the critical importance of safety production and has always regarded it as a fundamentalprinciple of its operations. It fully embraces the philosophy of “giving ?rst place to safety, laying stress on prevention, andtaking comprehensive measures” to provide employees with all-encompassing occupational health protection and issteadfastly committed to creating a healthy and safe working environment.

8182

The Company has achieved 100% coverage for safety production liability insurance as well as 100%coverage for work-related injury insurance.

Key Performance

The Company ?rmly adheres to the “Double Zero” target of “zero accidents and zero casualties” and commits to building asafe Palm.

ObjectivesAchievement in the Reporting Period100% special operators licensed

Zero work-related injuriesZero new occupational disease cases

Zero penalties for safety violationsRegular employee health check-ups

AchievedAchievedAchievedAchievedAchieved

If the Company fails to establish asound occupational health andsafety management system orconduct necessary health check-ups,risk assessments, and preventiveactions, it may violate applicablelaws and regulations.

ReportingPeriod

PotentialFinancial

ImpactOccupational Health and Safety Strategy

Short- andmedium-term

Increasedcompliance

costs

Response Measures

Reporting PeriodPotential Financial Impact

Risk DescriptionRisk Type

OpportunityType

Opportunity Description

Technological

opportunity

Reputationopportunities

Legal risks

In the event of a major safety acci-dent or a signi?cant occupationaldisease incident in a project, theCompany’s operations may be inter-rupted or delayed.

Short- andmedium-term

Increasedoperatingcosts;decreasedoperating

incomeOperationalrisks

If a project results in personal injuryor even fatality, subsequent expo-sure may erode market trust in theCompany and damage its image.

Medium- andlong-term

Increasedoperating

costs;decreasedoperating

incomeReputation

Risks

Emerging technologies, such as the Internet ofThings, big data, and arti?cial intelligence, canachieve real-time monitoring and early warning ofsafety risks across all production stages, therebyimproving safety management ef?ciency.By delivering excellent occupational health andsafety production outcomes, the Company canestablish a responsible corporate image andenhance customer trust. Providing a safe andhealthy work environment also helps attract andretain top talent, reducing employee turnover.

Medium- andlong-term

Decreased operating costs

Increased operating income

Medium- andlong-term

Continuously improve the occupa-tional safety managementsystem, establish a dual preven-tion mechanism for occupationalhealth and safety production,implement the primary responsibil-ity of enterprises, and sign the.Actively conduct risk assessments,hazard investigations, occupation-al disease examinations, andother efforts aiming to guaranteesafety production.Formulate emergency plans,strengthen drills, and equip suf?-cient emergency rescue and?re-?ghting facilities and appara-tus.

Caring for Employees: Ensuring Safety and Health

Impact, Risk, and Opportunity Management

According to the industry classi?cation standards for listed companies established by the China Association for Public Com-panies, the Company belongs to the civil engineering and construction industry. This sector is characterized by complex workenvironments, diverse job types, and signi?cant seasonal in?uences. At every stage of project execution, there are inherentoccupational health and safety risks. In particular, construction activities generate dust, noise, vibration, high-altitude work,and chemical toxins, factors that pose threats to employee health and safety.

Implementation of Safety ProductionThe Company earnestly implements the important directives on safety production set forth by General Secretary Xi Jinping. Itrigorously enforces all relevant safety production management measures and provides a robust foundation for high-qualitydevelopment through systematic hazard identi?cations, regular emergency drills, and comprehensive safety awarenesstraining for all employees.

Hazard Identi?cationThe Company conducts hazard identi?cations using both online and of?ine methods. Patrol inspection reports and recti?ca-tion notices are promptly issued, ensuring that all identi?ed hazards are communicated to the relevant units for immediatecorrective action. The Company also closely monitors the implementation of these corrective actions to ensure full account-ability. During the Reporting Period, the Company organized 208 inspection sessions, issued 165 patrol inspection reportsand recti?cation notices, identi?ed 333 safety issues, and achieved a 100% hazard recti?cation rate.

8384

Special Safety Production Inspection

To ensure safety and stability during the Spring Festival andthe subsequent resumption of work, the Company proactivelyconducted a focused and comprehensive ?re?ghting safetyinspection and recti?cation campaign. On February 7, 2024,senior management personally led a team to carry out a thor-ough safety inspection at the Phase I Project of the HenanHospital of Cancer Hospital Chinese Academy of MedicalSciences, the South Campus of Henan Provincial People’s Hos-pital, and Henan Red Cross Blood Center in the ZhengzhouAirport Economy Zone. This initiative was aimed at enhancingthe project’s safety prevention capabilities, completely elimi-nating safety hazards, and ensuring that no production safetyincidents occur.

Dual preventionsystem

The Company has developed and issued the . This planestablishes a three-tier (Company, regional of?ces, and project teams) linkage mechanism forthe operation of the dual prevention system. By combining safety risk assessments withgraded control measures, the Company is able to accurately identify risk points and implementdifferentiated responses. When integrated with hazard identi?cation and remediation, thismechanism enables the dynamic monitoring and closed-loop management of safety hazards.To ensure the system’s effectiveness, project managers are required to sign a , thereby fully assuming their responsibilities. Spanningthe entire construction and production process, and bolstered by intelligent managementmethods, this system ensures traceability, complete coverage, and consistently controlledsafety hazards while signi?cantly enhancing the Company’s inherent safety level and employ-ee behavioral safety.

Safety risk grading

and controlmeasures

Centering on the principles of “self-inspection, scienti?c evaluation, classi?cation and grading,and graded control,” the Company has formulated and issued the  to establish a differentiated and dynamic risk management mechanism. Throughsystematic inspections and scienti?c assessments, the Company precisely classi?es andgrades safety risks and then implements targeted control measures to effectively reduce theincidence of accidents. Additionally, the Company pays special attention to the source controlof occupational hazard factors, thereby reducing instances of health damage and safeguard-ing employee safety. This standardized risk control process provides an essential institutionalguarantee for the Company’s safety production efforts.

Following the principle of “giving ?rst place to safety and laying stress on prevention”, the Company continuously updates its and strengthens the conduct of emergency drills. Thesemeasures are designed to minimize property loss and mitigate adverse impacts on construction projects, ensuring thatbuilding constructions proceed safely and in an orderly manner.

Emergency Drills

The Company strictly enforces national safety production laws and the requirements set by superior competent authorities. Ithas formulated the , which clearly outline regulations for subcontractor admission,the allocation of safety personnel, and the use of protective equipment. Additionally, the Company organizes an annualspecial safety inspection and evaluation of subcontractors to ensure strict compliance with these measures. This initiativehelps to establish a long-term safety management mechanism for subcontractors, effectively preventing safety incidents.

Stakeholder Safety Management

Case Study

Caring for Employees: Ensuring Safety and Health

Occupational Health ProtectionIn strict compliance with the , the Companyadheres to the policy of “laying stress on prevention and combining prevention and treatment”. It implements an occupationalhealth management model that integrates classi?ed management with comprehensive governance. Based on its certi?edoccupational health and safety management system, the Company has established a scienti?c and standardized mechanismfor the prevention and control of occupational diseases. This mechanism addresses three key dimensions: prevention at thesource, process control, and hazard elimination. Additionally, the Company conducts regular testing and evaluations ofoccupational hazard factors, provides personalized health protection plans for its employees, and maintains detailedoccupational health records for dynamic tracking and management.

8586

2024 Safety Production Month

On May 30, 2024, the Company launched its 2024 Safety Production Month event at its Zhengzhou headquartersunder the theme “Ensuring Everyone Have Safety Awareness and Know Emergency Response – Smoothening LifePassage”. The kick-off meeting was attended via video conference by the General Manager, representatives fromthe Technical Safety Department and the Construction Management Center, as well as delegates from variousdepartments, subsidiaries, and project teams. Throughout Safety Production Month, the Company organized a seriesof activities, including safety management observation exchanges, emergency drills, and safety knowledgecompetitions, designed to ensure that every employee deeply recognizes the importance of safety production andinternalizes a safety-?rst mindset with robust bottom-line thinking.

Safety Awareness Cultivation

The Company places great emphasis on cultivating safety awareness among employees as a core element of its safetyproduction management. It has established a comprehensive safety education system characterized by “full participation,complete coverage, and all-round integration.” The Company also regularly conducts safety education and training and fostersa robust safety culture, signi?cantly enhancing overall employee safety literacy through systematic and diverse initiatives.

Safety Education and TrainingDuring the Reporting Period, the Technical Safety Department meticulously organized and implemented the2024 Annual Safety Training and Education Program. The program comprised 22 company-level safety coursestotaling 22 class hours, with a total attendance of 1,000. Course topics include, among others: Safety Trainingfor Temporary Electric Power on Construction Sites, Fire Safety Training, Guidelines for Identifying High-RiskProjects and Preparing Plans, Prevention of Falls in Building and Municipal Engineering. The curriculum covereda broad range of subjects such as applicable laws and regulations, the Company’s safety management systems,emergency response plans, specialized techniques for lifting and temporary electrical safety, general safetyknowledge, and reviews of frequently occurring case studies.

Case Study

Case Study

Caring for Employees: Ensuring Safety and Health

Acting in Good Faith:

Building a ResponsibleSocietyThe Company actively assumes corporate social responsibility byfully leveraging its resource advantages and professionalexpertise. It contributes to key areas such as ecological protection,rural revitalization, and the Belt and Road Initiative. Moreover, theCompany engages in public welfare activities, such as ?oodcontrol and disaster relief, to help create a more harmonious andsustainable societal environment.

Responded TopicsContribution to Society, Rural Revitalization

0505

Acting in Good Faith: Building a Responsible Society

Supporting Rural RevitalizationResponding enthusiastically to the national call for “agriculture, rural areas, and farmers,” the Company has seamlesslyintegrated its corporate social responsibility efforts with its rural revitalization strategy. Under the “Green Rural RevivalProgram” banner, the Company has developed a series of exemplary rural revitalization projects that substantially contributeto modernizing agriculture and rural regions. Furthermore, by promoting industry-driven initiatives, providing technical support,and cultivating local talent, the Company helps stimulate economic prosperity, social progress, and a more sustainableecological environment in rural areas.Leveraging its expertise in industrial planning, project design, construction, and comprehensive operations, the Companyoffers holistic solutions for rural industry development, igniting endogenous growth and vitality in rural areas and therebysigni?cantly contributing to rural revitalization. In recent years, the Company has been actively involved in developinghigh-standard farmland and has consecutively secured contracts to develop over 1.2 million mu of such farmland.. Theseendeavors not only augment the Company’s revenue but also markedly enhance agricultural production ef?ciency and cropyields, ultimately increasing farmers’ incomes and driving robust rural economic development.

8990

Responding to the “Belt and Road”InitiativeThe Company actively supports the national “Belt and Road” initiative by fully leveraging its business advantages to engagein environmental and landscape design projects across multiple countries along the route. These projects encompass urbanparks, commercial districts, residential developments, hotels, and other sectors, contributing to economic and socialdevelopment while building bridges of friendship and connectivity.

Assistance for Rural Revitalization in Lankao County

In Lankao County, the Company has established 5 high-standard farmland demonstration projects covering morethan 210,000 mu of arable land. By harnessing the potential of land resources and technological innovation,providing both immediate bene?ts and long-term self-suf?ciency, the large-scale development of high-standardfarmland transforms small plots into expansive ?elds and turns barren areas into fertile croplands. Theseinitiatives effectively address issues of fragmented arable land and low levels of mechanization. Moreover, theaccompanying construction of irrigation channels not only enhances watering ef?ciency and saves time and laborbut also signi?cantly improves water utilization and strengthens previously weak agricultural infrastructure.

Agriculture

Assistance for Rural Revitalization in Lankao County

The overall project planning places a strong emphasis on environmental protection and restoration. With a focuson industrial upgrading and improving people’s livelihoods, the Company strives to achieve a harmoniouscoexistence between economic development and ecological conservation.

Ecology

In Yifeng Town, Lankao County, the Company has pioneeredan integrated development model that unites farmland,gardens, and villages. This innovative approach enablesvillagers to generate additional income without leaving theirhometowns by operating cultural and creative outlets, suchas boutique shops, restaurants, homestays, bakeries, andtea shops, thus enriching the rural landscape and bolsteringcommunity vitality.

Cultural and Tourism Development

Case Study

Case Study

Acting in Good Faith: Building a Responsible Society

Practicing Social Welfare

The Company actively ful?lls its social responsibilities by encouraging employees to participate in initiatives such asemergency relief, poverty alleviation, community development, and environmental protection. By demonstrating its corporatecommitment, the Company spreads love and warmth throughout society. To regulate its external donation practices, theCompany has established the , ensuring that assistance activities are carried out in alegal, compliant, ef?cient, and transparent manner.During the Reporting Period, when natural disasters struck, the Company responded swiftly, providing practical support toaffected areas.

Laos Saysettha Project

The Saysettha Low-Carbon Demonstration Zone project marks the ?rst collaborative initiative between Chinaand Laos to address climate change. This project offers valuable insights into achieving low-carbon, sustainabledevelopment in industrial parks along the “Belt and Road”, adding a prominent new dimension of green,low-carbon, and mutually bene?cial cooperation to the shared community of destiny between China and Laos.Currently, the development zone hosts 145 enterprises and serves as an essential platform for Chinesecompanies actively participating in the China-Laos community of shared destiny. Moreover, the project hascreated over 7,000 local jobs in Laos, making it not only the preferred destination for foreign investment but alsothe ?rst choice for local residents for employment, leisure, recreation, and sports, thereby signi?cantly enhancingthe well-being of the Lao people and fostering mutual understanding between the peoples of China and Laos.

Kind Support for Flood Control and Disaster Relief in MeizhouIn June 2024, Meizhou City in Guangdong Province was hit by severe ?ooding caused by heavy rains. In a raceagainst time to deliver disaster relief, the Company promptly assumed its social responsibilities by donating 5,000jin of rice to Meixian, offering immediate material support to those affected by the ?oods.

Regional Efforts for Post-Disaster Reconstruction Following Typhoon “Capricorn”In September 2024, Typhoon “Capricorn” caused sudden devastation in multiple areas of Hainan Province. TheCompany’s Hainan Regional Of?ce Team united with an immense sense of responsibility and mission, workingresolutely on the front lines of post-disaster reconstruction. Concurrently, the team undertook a government-as-signed project to repair a 7-kilometer stretch of coastal road (from Haikou South Port to Changbin Road). Uponnoti?cation, personnel and machinery were quickly deployed, enabling the team to rapidly complete tree stabili-zation and site clearance, thereby restoring road access and ensuring safe, unobstructed travel for localresidents.

Case Study

Case Study

Case Study

Acting in Good Faith: Building a Responsible Society

Key Performance Form

Governance Performance

Social Performance

Employees’ Rights and Interests

Afterword to this Report

IndicatorUnit2024Remuneration for Directors, Supervisors and Senior Managers (including current

and former members)Number of Employees Participating in Training on Anti-commercial Bribery and

Anti-CorruptionTotal Duration of Training on Anti-Commercial Bribery and Anti-CorruptionAverage Duration of Training on Anti-Commercial Bribery and Anti-CorruptionNumber of Directors and Senior Managers Participating in the Training on

Anti-commercial Bribery and Anti-CorruptionPercentage of Directors and Senior Managers Participating in the Training on

Anti-commercial Bribery and Anti-CorruptionTotal Duration of Training on Anti-Commercial Bribery and Anti-Corruption for

Directors and Senior ManagersAverage Duration of Training on Anti-Commercial Bribery and Anti-Corruption for

Directors and Senior ManagersTotal Number of Anti-corruption and Anti-bribery Incidents Reported

In RMB 10,000Person

HourHourPerson%HourHour/PersonTimes

489.30

44.50

4.94

22.50

3.75

IndicatorUnit2024

Labor Contract Signing RateSocial Insurance Coverage RateNumber of Employees with DisabilitiesNumber of Employees of Minority Nationalities

Proportion of Female Managers

%%PersonPerson%

34.00

Employment

IndicatorUnit2024

Number of Employees on Maternity LeaveReturn Rate from Maternity LeaveThe Number of Projects Approved by the Employee CongressNumber of Projects Approved by the Trade UnionProportion of Trade Union Members to In-Service Employees

Person%PiecePiece

%

IndicatorUnit2024

Total Number of Employees

Number of Female Employees

Number of Male Employees

Person

PersonPerson

Under 30 years old30 (inclusive) to 40 (exclusive) years old40 (inclusive) to 50 (exclusive) years old

50 years old or above

PersonPersonPersonPerson

Senior ManagementMiddle Management

Others

PersonPersonPerson

Number of Employees (by Gender)

Number of Employees (by Age)

Number of Employees (by Employee Level)

Afterword to this Report

Employee Training and Development

Employees Health and Safety

IndicatorUnit2024Investment in Employee Trainingin RMB 10,000

20.00

IndicatorUnit2024

Identi?cation and Recti?cation Rate of Hidden Danger

Total Number of Work-Related DeathsTotal Number of Work-Related InjuriesNumber of Safety Production Accidents

Number of Security Emergency DrillsTotal Hours of Safety and Quality TrainingNumber of safety and Quality Training SessionsNumber of Participants in Safety and Quality TrainingCoverage Rate of Safety Production Liability InsuranceCoverage Rate of Work-Related Injury Insurance for EmployeesCoverage Rate of Physical Examinations for Employees

Percentage of Special Operators Licensed

%PersonPerson

CaseSession

HourSessionPerson%%%%

1,200

1,100

Doctoral degreeMaster’s degreeBachelor’s degree

College degreeHigh school degree or below.

PersonPersonPersonPersonPerson

ManufacturingTechnologySalesFinance

AdministrationNumber of New Employees

PersonPersonPersonPersonPersonPerson

Number of New Female Employees

Number of New Male Employees

PersonPerson

Number of Employees (by Education Level)

Under 30 years old30 (inclusive) to 40 (exclusive) years old40 (inclusive) to 50 (exclusive) years old

50 years old or above

PersonPersonPersonPerson

Number of New Employees (by Age)

Number of Employees (by Function)

Number of New Employees (by Gender)

Innovation-Driven Development

IndicatorUnit2024

Investment in R&DTotal R&D Team Members

in RMB 100,000,000Person

1.42

Number of Employees (by Academic Quali?cation)

Bachelor’s degree

Doctoral degreeMaster’s degreeBelow bachelor’s degree

PersonPersonPersonPerson

Afterword to this Report

Safety and Quality of Products and Services

IndicatorUnit2024

Product Percent of PassNumber of Customer ComplaintsCustomer Complaint Resolution Rate

%Times%

Supply Chain Security

IndicatorUnit2024

Total number of suppliersPercentage of New Suppliers that Have Signed the Total Number of New Suppliers that Have Signed the Number of Incidents with Signi?cant Risks and Impacts in the Supply Chain

/%/Piece

17,465

IndicatorUnit2024GHG Emissions

Total Purchased ElectricityTotal Water ConsumptionNumber of Incidents in which Major Administrative Penaltieswere Imposed by Ecological and Environmental Authorities as

a Result of Environmental Incidents

tCO2eKWhTonPiece

304.05

566,618

1,658

Number of Employees (by Gender)

FemaleMaleRatio of R&D Personnel to Total Employees

Number of patent applicationsCumulative Number of Granted Patents (In-Force Patents)

PersonPerson

%PiecePiece

12.18

Patents (by Type)Cumulative Number of Granted Invention Patents

Cumulative Number of Granted Design PatentsCumulative Number of Granted Utility Model PatentsCumulative Number of Published PapersCumulative Number of Software Copyrights

Cumulative Number of TrademarksSpecialized and Sophisticated Enterprise that Produces

Novel and Unique ProductsNational High-Tech Enterprise

PiecePiecePiecePiecePiecePiece//

Environmental Performance

Afterword to this Report

IndexesShenzhen Stock Exchange 

Disclosure RequirementsCorresponding Sections of This ReportResponse to Climate Change

Pollutant EmissionsWaste DisposalEcosystem and Biodiversity ProtectionEnvironmental Compliance Management

Energy UtilizationWater Resource UtilizationCircular EconomyRural Revitalization

Contribution to Society

Green Design: Creating a Harmonious Ecosystem - Responding to

Climate Change

Innovation for Empowerment: Focusing on Collaborative Industry

Advancement - Deepening R&D and Innovation

Innovation for Empowerment: Focusing on Collaborative Industry

Advancement - Maintaining Stable Supply Chain

Innovation for Empowerment: Focusing on Collaborative IndustryAdvancement - Strengthening Quality Management

Caring for Employees: Ensuring Safety and Health

Green Design: Creating a Harmonious Ecosystem - Strengthening

Environmental Compliance ManagementGreen Design: Creating a Harmonious Ecosystem - Strengthening

Environmental Compliance ManagementGreen Design: Creating a Harmonious Ecosystem - Protecting

Ecosystem and BiodiversityGreen Design: Creating a Harmonious Ecosystem - Strengthening

Environmental Compliance ManagementGreen Design: Creating a Harmonious Ecosystem - Improving

Resource Ef?ciencyGreen Design: Creating a Harmonious Ecosystem - Improving

Resource Ef?ciencyGreen Design: Creating a Harmonious Ecosystem - Improving

Resource Ef?ciencyActing in Good Faith: Building a Responsible Society - Supporting

Rural RevitalizationActing in Good Faith: Building a Responsible Society - Responding

to the “Belt and Road” InitiativeActing in Good Faith: Building a Responsible Society - Practicing

Social Welfare

Disclosure RequirementsCorresponding Sections of This ReportInnovation-Driven Development

Technology Ethics

Supply Chain SecurityEqual Treatment of Small and Medium-Sized

EnterprisesSafety and Quality of Products and

ServicesData Security and Customer Privacy

ProtectionEmployees

Due Diligence

Communications with Stakeholders

Anti-Bribery and Anti-Corruption

Anti-Unfair Competition

Sustainable Development Governance - Communications with

Stakeholders

Steady Operations: Enhancing Compliance Governance -

Strengthening Compliance Management

Not Applicable

Not Applicable

Innovation for Empowerment: Focusing on Collaborative Industry

Advancement - Protecting Data Privacy

Steady Operations: Enhancing Compliance Governance -

Strengthening Compliance ManagementCaring for Employees: Ensuring Safety and Health - Protecting the

Rights and Interests of Employees

Steady Operations: Enhancing Compliance Governance -

Strengthening Compliance Management

Indexes

Which of the following stakeholders is most relevant to you in relation to Palm Eco-Town?

□Employee □Client □Shareholder or Investor □Supplier or Partner □Government & Regulatory Authority

□Industry Association and Organization □Community, Public & Media □Others________ (please specify)

1. Your overall assessment of this year’s sustainability report:

□ Excellent □ Good □ Average □ Below Average □ Poor

2. Do you think the information disclosed in the report is accurate, clear, and complete?

□ Excellent □ Good □ Average □ Below Average □ Poor

3. Do you ?nd the report readable?

□ Excellent □ Good □ Average □ Below Average □ Poor

4. Do you think the report comprehensively re?ects the Company’s signi?cant impacts on the economy,

society, and environment?

□ Excellent □ Good □ Average □ Below Average □ Poor

5. What is your evaluation of the report’s logical reasoning, structural arrangement, and layout design?

□ Excellent □ Good □ Average □ Below Average □ Poor

6. Which topics in this year’s sustainability report most captured your attention?

7. What additional information would you like to see in the report?

8. Do you have any other comments regarding our sustainability report, sustainability work, or sustainable

development management?

Thank you for taking the time to read the  We greatly value and eagerlyanticipate your opinions and suggestions on the Company’s sustainabledevelopment efforts and management. Your feedback is an important foundationfor our continuous improvement in sustainable development work and theenhancement of our sustainability management. We sincerely invite you tocomplete the questions in the “Reader Feedback” section and share yourresponses with us through the modes provided below. Once again, thank you foryour strong support of our sustainable development work.

Tel.: 0371-88927000 (Zhengzhou)/020-85189888 (Guangzhou)Fax: 0371-55075666 (Zhengzhou)/020-85189000 (Guangzhou)Address of Zhengzhou Of?ce: 16-18 Floors, Haihui Center, at the intersectionof Dongfeng South Road and Kangning Street, Zhengdong New District,Zhengzhou City, Henan Province, ChinaAddress of Guangzhou Of?ce: 6 Floor, Block B, Zhuguang XinchengInternational Center, No. 3 Qingyi Street, Machang Road, Tianhe District,Guangzhou City, Guangdong Province, China

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