Our Board is responsible for formulating and supervising overall ESG strategies of our Group and determining the ESG-related risks. Our ESG Working Group and Emission Reduction Leading Group comprise many employees from different departments, and each of the groups is headed by the deputy general manager of Yantai Zhongjia. The ESG Working Group is responsible for assisting the formulation of ESG strategies and implementing the ESG policies and measures across all departments. It is also responsible for regularly identifying and reviewing the ESG issues and risks and putting forward improvement suggestions. In order to achieve the long-term emission reduction goals, Emission Reduction Leading Group is established to primarily focus on matters relating to energy consumption and emission. They will supervise and check the energy management of all departments, formulate the relevant management systems and work plans, and regularly conduct energy calculation for the production units, so as to continuously improve the energy utilisation efficiency of our Group. Emission Reduction Leading Group will organise annual meetings, summarise the work for the year and set the work goal for the next year, while the ESG Working Group will also supervise and check the relevant work progress. Both groups will report to our Board.

In addition to our internal operating environment, we also value the environmental and social risk management in the supply chain. We have formulated the environmental and social risk policies for the supply chain management, and encourage all the suppliers to proactively promote the environment protection and improve the employee benefits protection, so as to reduce the environmental and social risks in the supply chain.