2024 Environmental Social and Governance Report

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Contents

About this report 01

Chairman's speech 03

About Sinoma International 05

Sustainable development management 13

Solidify the foundation for Support the sustainability of the

our sustainable industry society and global

development community

Strengthen the foundation of 27 Guide progress of the industry to 63

governance to secure sustainable enhance overall value for win-win

operation and development results

Sound corporate governance 28 Improve service quality 64

Compliant and ethical operations 31 Sustainable supply chain 74

Guarantee employee rights and interests 37

Adhere to the green concept to 49 Shoulder the mission of the times in 77

ensure environmental friendly pursuit of global development

Outlook 95 developmentConduct an overall layout 19 Green and low-carbon products 78

Green and clean production 50

ESG key performance 97 to build a green and low- Respond to climate change 83

Indicator indexes 108 carbon industrial chain Integration into the circular economy 59 Promote people's well-being 90

Feedback form 1102024 Environmental Social and Governance Report

About this report

Reporting entity Reference standards

The reporting entity is Sinoma International Engineering Co. Ltd. (stock code: 600970) and its affiliated enterprises. In UN Sustainable Development Goals 2030 (SDGs)

this report for ease of expression and reading “Sinoma International Engineering Co. Ltd.” is abbreviated by Sustainability Reporting Standards of Global Reporting Initiative

“Sinoma International” “the Company” and “we” and “China National Building Material Group Co. Ltd.” isrepresented by “the Group". Guidelines on Corporate Social Responsibility Reporting for Chinese Enterprises (CASS-ESG 6.0) issued by the ChineseAcademy of Social Sciences

Reporting scope Reference Indicator System for the ESG Special Report of Listed Companies Controlled by Central Enterprises issued

by the State-owned Assets Supervision and Administration Commission (SASAC) of the State Council

The scope of this report is consistent with the scope of the annual financial disclosure. Unless otherwise stated this Guidelines No. 14 of the Shanghai Stock Exchange for Self-regulation of Listed Companies — Sustainability Report

report covers the environmental social and governance performance of Sinoma International Engineering Co. Ltd. (Trial)

and its affiliated enterprises during the period from January 1 to December 31 2024. Given the continuity and Recommendations of the Task Force on Climate-related Financial Disclosures (“TCFD”)

comparability certain contents of this report may be extended as necessary.Information sources

The information and data in the report are derived from the Company's official documents or internal statistics. The

historical data cited is final statistical data. In case of any discrepancy between the financial data and the annual

report the annual report shall prevail. Unless otherwise stated all amounts of currency involved in this report are

denominated in Renminbi (“RMB”).Reporting language

This report is published in both Chinese and English. In case of any inconsistency between the Chinese and English

versions the Chinese version shall prevail.

1 22024 Environmental Social and Governance Report

Chairman's speech We use "green intelligence" as our brush we sketch the medium- and long-term incentive tools were applied in all

magnificent landscape of "lush mountains and splendid scenarios and a variety of incentive tools were flexibly

rivers striving for perfection. applied according to the enterprise's policy which strongly

With the mission of "promoting green and intelligent stimulated the Company's development momentum so

development and serving a better world" in mind Sinoma that strivers can share the fruits of development and doers

2024 is a key year for fully implementing the spirit of the International takes "high-end intelligent and green" as the can win the future.

20th National Congress and the third plenary session of the development direction and strives unremittingly to As one of the first central enterprises to expand overseas

20th Central Committee of the Communist Party of China achieve the ambitious goal of "world-class service provider Sinoma International has consistently led the way in

and achieving the goals and tasks of the 14th Five-Year in the material industry". In 2024 we successfully launched implementing "The Belt and Road Initiative" with

Plan. 2024 is also an important year for Sinoma the world's first demonstration application of cement determination contributing to the vision of a shared future

International to make steady progress and achieve success oxygen-fuel combustion coupled with carbon capture for mankind. We build our business on a foundation of

in difficulties. technology. The pilot test of new low-carbon cement responsibility and cooperation fostering growth and

In this year we held high the banner united our spirits and equipment completed pilot production and the product opportunity across diverse regions. From participating in

souls achieved remarkable results in reform and system of intelligent factories achieved comprehensive infrastructure construction to dedicating ourselves to

innovation propelling high-quality development to a new implementation. A batch of green low-carbon solid waste public welfare and charity from supporting community

level. The newly signed contracts for the year amounted to recycling large-scale alternative fuel technology services to promoting education development we

RMB 63.4 billion setting a new record; the newly signed equipment was applied in overseas projects such as Egypt demonstrate our commitment through actions touch

overseas contracts amounted to RMB 36.2 billion with a Saudi Arabia and Poland. Driven by innovation and guided hearts with sincerity and ensure that communities along

year-on-year increase of 9% and the operating indicators by green principles we contribute more wisdom and the routes share in the benefits of development. We have

such as operating income and total profit maintained strength to the sustainable development of the global overcome challenges and celebrated successes making

growth against the trend. In this year we worked hard and materials industry. our overseas journey a remarkable story of perseverance

lived up to our mission. We achieved a good result in the We have vigorously built new businesses new models and and achievement. Countless Sinoma International people

list of ENR's "Top 250 International Contractors" ranking new driving forces and actively created comprehensive have worked hard on foreign lands and engraved their

43rd among global companies and 10th among Chinese solutions for overseas strategic mineral resources. We have youth in the magnificent picture of overseas business. From

companies won the "Gold Prize of Round Table" of the shaped a green energy alternative fuel business system the vast Gobi Desert to the lofty plateau from the shores of

board of directors of Chinese listed companies for 11 times. and specialized brand with outstanding advantages and the Red Sea to the countries of the Thousand Islands we

We were selected into the 18th "Growth 100 of Chinese focused capabilities providing deep services for the global have built a bridge of cultural blending with practical

Listed Companies" and was awarded as a Chinese industries. Relying on "green factories" and "green mines" actions and established closer people-to-people ties with

building materials engineering brand enterprise. In this we have promoted efficient use of resources and recycling dedication and commitment.year we successfully held the 2nd Sinoma Cement Green & of waste. Our operation service contract increased by 27% Looking back we have overcome countless challenges;

Intelligence Summit with significant transformation and year-on-year. We have successfully established a new looking ahead we see a future full of opportunities and

upgrading. Its global brand influence has further increased; batch of world-leading green and intelligent demonstration growth.and the establishment of overseas service centers in Saudi factories in Ethiopia the Philippines and Dominica As we look forward to 2025 we will move forward together

Arabia and Indonesia have been accelerated. The orders of embodying the principle that 'lucid waters and lush driven by green development innovation and a strong

overseas and non-cement projects have increased mountains are invaluable assets. sense of responsibility. We will collaborate to establish a

significantly enhancing the overseas layout. With solid and

Pioneering a new chapter for the We use "corporate responsibility" as our ink to paint a leading example for the industry charting a clear and substantial performance and results we have delivered an harmonious tableau of "symbiosis and mutual actionable path for sustainable development. We will

enterprise through sustainable excellent performance report to the owners shareholders flourishing with hearts and minds interconnected." contribute Chinese wisdom to global green development investors and employees.development serving a better Sinoma International has always adhered to a people-

playing a key role in advancing sustainable social

oriented approach continuously strengthening team development.world with green intelligence. building and fostering a culture of collaboration and

innovation. We have continued to improve the assessment

mechanism and deepened the reform of the three

institutional systems improved the market-based selection

and employment and incentive and constraint

mechanisms and successfully won the approval of the

Group's first scientific and technological achievements

transformation incentives. The Group's cash-based Chairman Sinoma International

3 42024 Environmental Social and Governance Report

About Sinoma International Mission and Vision

Company profile

Corporate Corporate

Sinoma International Engineering Co. Ltd. (hereinafter referred to as 'Sinoma International') is a key enterprise in the Mission Vision

engineering technical and service sectors as well as in international business. It operates under the China National

Building Material Group Co. Ltd. a Fortune Global 500 company. It is also the world's leading service provider for

cement technology equipment and engineering system integration a national technological innovation Promote green and intelligent World-class service provider in the

demonstration enterprise a single champion demonstration enterprise in the manufacturing industry a development and serve a better world material industry

demonstration enterprise for national intellectual property and a winner of the China Grand Awards for Industry.In 2001 Sinoma International was established by integrating high-quality assets of the national cement technology

and equipment engineering business. In 2005 it was listed on the Shanghai Stock Exchange (600970.SH). Through

technology import assimilation and independent innovation the Company has successively developed and built a One core two drives

series of production lines ranging from China's first 1000 tpd production line to the world's largest 14000 tpd

production line and made major breakthroughs that enabled China's transformation from an importer of complete Engineering technical services Digital Intelligence

sets of key equipment to full localization and then to an exporter of complete sets thus making great contributions to (Cement mining environmental

China's infrastructure construction and economic development. The company offers a complete industrial chain and protection green energy related +

system solutions covering mining services cement engineering R&D design equipment manufacturing diversification) High-end equipment

construction installation commissioning and production line maintenance and operation management. It is the

only enterprise in the international cement technology and equipment engineering market with a fully integrated The 14th

industrial chain. Five-Year Plan

Sinoma International relies on internationally leading technologies for new dry-process cement production lines development Develop three Four management

backed by independent intellectual property rights. Leveraging its comprehensive industrial chain resources— strategiesindustries principles

spanning cement technology equipment engineering and services—the company promotes the global export of

Chinese products technologies standards and capital through international engineering projects. It has contracted simultaneously Five core capabilities

351 cement production lines in 91 countries around the world maintaining the world's No.1 market share for 17

consecutive years. It has also been repeatedly honored with prestigious awards including the Luban Award for China Optimize and strengthen leading Five support systems

Construction Engineering and the Gold Award for National High-Quality Engineering. It ranked 43rd among ENR's business

"Top 250 International Contractors" in 2024 and ranked 10th among Chinese companies on the list. The brand Strengthen and expand localized

"SINOMA" has become one of the most influential brands in the international building materials and engineering operations

market. Cultivate breakthroughs on the

Today Sinoma International has evolved into a global enterprise with core strengths in scientific and technological second track

innovation core equipment engineering integration digital intelligence and global operations. With steady

improvement in operation quality and prominent advantages in its corporate value the Company is moving steadily

towards its mission of "promoting green and intelligent development and serving a better world" as well as its vision

of becoming a “world-class service provider in the material industry”. Development positioning

Main business indicators in 2024

Operation Newly signed Net profit Effective contract Leader in technological Main force of high-end intelligent and

revenue RMB contract RMB attributable to parent amount innovation; green transformation;

46.127 63.4 company RMB accomplished RMB Industry promoter of green intelligence; Group pioneer of internationalized development;

billion billion 2.983 59.7 Positioning builder of global development billion billion Positioning bellwether of world-class enterprises

5 62024 Environmental Social and Governance Report

Main business segments Market distribution

As of 31 December 2024 the main business segments and affiliated enterprises are as follows:

Engineering technical services High-end equipment manufacturing

Cement and mine engineering green Research and development design processing and 91 100+ 2356

energy environmental engineering and manufacturing technical services etc. of cement Overseas Overseas

diversified engineering The Company's technical equipment mining crushing and material

Countries

institutions employees

main business processing equipment

operations

include:

Production operation and Other business

maintenance services

Project logistics aggregate sales localized product

Operation and maintenance services of sales

cement production lines mining

operation and maintenance services 351 420+ billion 17 years

digital intelligent services green energy Cement Accumulated Stably ranking No.1

and environmental protection services production lines Contract overseas in the world

Business segment Affiliated enterprise

Sinoma International Chengdu Design and CBMI Beijing Triumph

(Nanjing) Engineering Research Institute of Construction International

Engineering Co. Ltd. Building Materials Co. Ltd. Engineering Co. Ltd.segment Industry Co. Ltd

Sinoma (Suzhou) Sinoma (Handan) Sinoma (Zhejiang) Engineering Design &

Construction Co. Ltd. Construction Co. Ltd. Research Institute Co. Ltd

Equipment Group (Tianjin Cement Industry Design & Research Institute Co. Ltd. Hefei Cement

Equipment segment Research & Design Institute Co. Ltd. Zhejiang Boyu M&E Industry Co. Ltd. HAZEMAG & EPR GMBH)

Mining segment Sinoma Mining Construction Co. Ltd.Operation and CNBM Smart Industry Technology Co. Ltd.maintenance services

Digital intelligence Sinoma International Intelligent Technology Co. Ltd.Green energy and

Sinoma Overseas Sinoma International Sinoma International Water

environmental Development Co. Ltd. Environmental Engineering Co. Ltd. Technology (Hefei) Co. Ltd.engineering

Trade logistics Sinoma Technology Services (Beijing) Co. Ltd. Sinoma International Ningrui Co. Ltd.Note: The environmental and social data disclosed in this report are the sum of the data of the Company and its subsidiary enterprises irrespective

of the Company's share of equity.

7 82024 Environmental Social and Governance Report

Honors & ESG Award Comprehensive Award

Awards ENR's 2024 "Top 250 International Contractors" "ESG Growth 100 Index of Central Enterprises"

43rd among global companies and 10th among Chinese companies on the list

AA in Wind ESG Rating Top 100 Listed Companies in China by Health Index

2024 Sinoma International always

adheres to the sustainable

development strategy and is Top 100 No.2 in China's "Overseas EPC Turnover of Survey and Design Enterprises" recognized by domestic and foreign ESG Golden Bull Award

governments and institutions in No.7 in China's "EPC Turnover of Survey and Design Enterprises" in 2024

various aspects.Double Hundred Assessment of the SASAC China's State-owned Enterprises in Deepening

ESG Golden Bull Awards Top 50 Central

Enterprises Outstanding Enterprises

Reform and Practice

1 Outstanding Achievement

China's Enterprise in Reform and Development Management Innovation In Building Materials

The 2nd Easy Board ESG+8 "Value 100" List 2 Outstanding Achievements of the Enterprises

First Prize First prize of 3 typical cases

AA- in China Chengxin Green Finance’s China Construction Building Materials Engineering Golden Bull Award

ESG Rating Brand Enterprise "Award of the Most Investment Value"

Finance Association Zhiyuan Award Top 100 High-Growth

"ESG Pioneer Award" Listed Companies in China

9 102024 Environmental Social and Governance Report

Top 10 ESG Highlights of 2024

Released “1234” Sustainable Development Strategy High-end Intelligent Equipment Park Official Launch of Operations

a charting the Company's sustainable development journey with focuses on two key pillars – a Introducing high-end cement equipment that has won the "Single Champion" CCTV's "Big Country

“solidifying the foundation for sustainable development” and “supporting the sustainability of the Heavy Equipment" and the National Science and Technology Progress Award and creating aindustry society and global community”. leading domestic and international first-class intellectual manufacturing industrial park.Formulated Carbon Peak & Neutrality Implementation Plan The Company's Board of Directors won several governance awards

a the Company clarified the timetable and roadmap for carbon peaking and carbon neutrality launched a the 19th Gold Prize of Round Table - Best Board of Directors and Best Practice Cases of Boards of

"Dual Carbon" platform and expanded the scope of carbon inventory to overseas operations thus Directors of Listed Companies.realizing the full coverage of all subsidiaries.Unveiled the world's first cement Oxyfuel-CCUS Technology

Established Integrity Culture Framework

a released the groundbreaking cement oxyfuel coupled carbon capture technology at the 2024 Building Material Industry conference which won World Cement Association (WCA) 2024 Climate Action a promoting the principle of “Delivering Performance within the Boundaries of Integrity” the

Technology and Engineering Award. initiative introduced the brand of “Uprightness as Foundation of Long-lasting Excellence” and

adopted the vision of “Integrity Nurtures Harmony and Enterprise Vitality”.Green and low-carbon projects in the European market have flourished across multiple Bestowed with dual honors the Company is delighted to have been awarded two

areas driving the new trend in green development prestigious accolades for employee care

a a

with the successive implementation of green and low-carbon projects in France Poland Belgium the Sinoma International Intelligent Technology was jointly awarded "2023 China's Best Employer of

Czech Republic etc. Sinoma International leads Chinese enterprises in European cement industry's the Year " by the Social Survey Research Centre of Peking University and Zhaopin.com while the

green transition with "green" contracts representing 92% of total projects. trade union of Sinoma Mine Xi'an Company was honored as the "National Model Workers' Home."

Hosted the 2nd Cement Green & Intelligence Summit Won "National Green Factory" Title

a held in Nanjing the summit convened 400+ industry leaders and experts from 34 nations to exchange insights on green decarbonization and intelligent transformation fostering collaboration a Zhejiang Boyu M&E Industry Co. Ltd.. a subsidiary of CNBM Equipment Group won the title of

for sustainable industry evolution. "National Green Factory" announced by the Ministry of Industry and Information Technology.

11 122024 Environmental Social and Governance Report

Sustainable development management ESG governance structure

Sinoma International has established an ESG management system under the responsibility of the Board of Directors.Sustainability strategies The system led by the management and initiated by the responsible departments requires cross-departmental collaboration and involvement from entities at all levels.Sinoma International has formulated the "1324" sustainability strategy. Internally the Company builds a The Board of Directors is the highest decision-making body for the Company's ESG efforts being

modernized corporate governance structure adheres to compliant and clean operation and strives to protect rights responsible for comprehensively guiding the Company's sustainable development strategy and overseeing

and interests of employees. By maintaining production and operation in a clean green and recyclable manner supervising deliberating and approving significant ESG-related matters such as the Company's ESG strategy and

Sinoma International aims to solidify the foundation of its sustainable development. annual ESG report. The Strategy Investment and ESG Committee is set under the Board of

Externally Sinoma International continuously improves the quality of its services builds a sustainable supply chain Directors and responsible for researching and formulating the Company's overall objective and implementation

seizes clean technological opportunities seeks for breakthroughs in the innovation of green and low-carbon strategies for ESG management assessing and identifying the Company's ESG risks and opportunities and

products and services and actively responds to climate change thus building a community with a shared future for evaluating prioritizing and managing important ESG-related matters (including waste management and pollutant

contributes to the sustainability of the industry the society and the emission climate changes employee safety and health labor management business ethics etc.) and reporting mankind that significant matters regarding ESG work to the Board of Directors on a regular basis.global community.The Company clarifies the ESG management responsibilities of the leading department and each functional

management department while establishing and improving ESG management norms and processes. Meanwhile the

Company statistically analyzes ESG-related information and data organizes and carries out ESG practice activities

implements specific objectives and action plans set up by the Company in ESG management and establishes

effective communication with ESG stakeholders. Affiliated enterprises clearly define the ESG main responsible

department to carry out various forms of responsibility fulfillment practices in accordance with local conditions

under the unified planning of the Company.Board of Directors

Strategy Investment and ESG Committee

ESG Leading Department + Corporate

Management Department Affiliated Enterprises

Relate remuneration of management to ESG performance

Guided by “one core three values two main lines and four goals” the Company establishes a In accordance with the Company's development strategy and annual budget the Company has clarified the

standardized and transparent governance system creates an honest and clean business environment builds a annual business objectives and the objectives are decomposed and implemented at the three levels of the

dynamic and capable talent team and promotes the healthy and sustainable development of the Company. The Company's managers affiliated enterprises and headquarters departments. The Company has required the

Company constructs a clean and environmentally friendly production mode promotes a low-consumption and signing of the Business Performance Accountability Letter for 2024 and included ESG-related content in

recycling operational model maintains a healthy and harmonious ecological environment and drives the green and assessment indicators covering safety environmental protection energy conservation and consumption

sustainable development of the Company. The Company breaks through innovative and advanced technological reduction “Dual Carbon” integrity privacy protection staff development disclosure of ESG information

capabilities leads the intelligent and high-end industrial upgrading strengthens the partnership for co-construction and ESG rating. The “Energy saving and ecological environment protection” indicator accounts for 7% of

and win-win outcomes and enables the sustainable development of the industrial chain. The Company provides the Company's performance the general manager's performance and the affiliated enterprises' performance

green and low-carbon solutions cultivates the ability to respond to global climate change practices the "Belt and and the performance evaluation of manager level of the Company and affiliated enterprises are both relevant

Road" initiative of consultation co-construction and sharing promotes the deep integration of global technology to this indicator.talent and culture and contributes to the harmonious and sustainable development of the world.

13 142024 Environmental Social and Governance Report

Communication with stakeholders

Sinoma International has identified key stakeholders related to our operations and maintain smooth and efficient Key stakeholders Primary communication Expectations and appeals Communication and response

communication with them. At the same time we actively understand and respond to stakeholders' expectations and channels

demands involving them in the ESG decision-making process.* Phones/Emails * Ensure product quality * Ensure product quality

* Conferences and * High-quality service * Improve client service system

Key stakeholders Primary communication Expectations and appeals Communication and response conversations

Clients * Protect customer rights and * Strengthen technological R&D for channels * ESG materiality assessment interests low-carbon industry development

* ESG materiality * Implement national * Continuously strengthen compliance questionnaires * Develop green technologies * Adhere to green production and

assessment policies management * Response to climate changes construction

Governments and questionnaires

regulatory * Compliant operations by * Participate in government related

authorities * Phones/Emails law meetings and cooperation

* Procurement bidding notice * Practice fair competition * Implement sunshine

procurement

* Conferences and * Support regional * Respond to relevant national policies * Inspection and supervision * Strengthen strategic

conversations development * Supplier/Contractor cooperation * Create a responsible supply chain

conferences * Promote industry * Participate in industry

* Press * Create market values * Continuously create business Suppliers/ * Phones/Emails development organizations and conferences

releases/Announcements Contractors* Control the operation risk performance * Conferences and * Expand multi-party

* ESG materiality * Strengthen information * Improve corporate governance and risk conversations communication

assessment questionnaire disclosure management * ESG materiality assessment

* Annual/Interim * Develop green * Periodically publish reports and questionnaires

performance briefing promptly disclose information

Shareholders/ technologiesmeeting

Investors * Protect the ecological * Hold shareholders' meetings to * Phones/Emails * Practice fair competition * Maintain a healthy market

* Shareholders' meetings environment strengthen investor relationship * Conferences and * Strengthen strategic co- ecosystem

* Investor conferences management conversations operation * Participate in industry

* Strengthen technological R&D for low-

Industry/Business * ESG materiality assessment * Develope Green Technology

organizations and conferences

carbon industry development

partners questionnaires * Promote industry * Expand multi-party

* Adhere to green production and development communication

construction

* Response to climate change * Strengthen technological R&D for

low-carbon industry development

* Board meetings * High-quality service * Lean product quality

* Shareholders' meetings * Compliant operations by * Establish and improve customer service * Phones/Emails * Adhere to energy saving and * Adhere to green production and

* Employee law system * Conferences and emission reduction construction

Directors meetings/seminars * Intensify innovation efforts * Continuously strengthen compliance conversations * Protect the ecological * Improve energy and resource use

supervisors and

senior * ESG materiality * Strengthen information management environment efficiency and implement energy

management Community

* ESG materiality assessment

assessment disclosure * Strengthen technological R&D members/Public questionnaires * Enthusiastic in public welfare

conservation and emission

questionnaires and charity reduction* Periodically publish reports and welfare

promptly disclose information organizations * Support community * Carry out voluntary public welfare

construction activities

* Employee * Remuneration and welfare * Develop a competitive salary system * Assist in rural revitalization

meetings/seminars guarantee and welfare guarantee mechanism * Hold enterprise open day

* Employee performance * Employee growth and * Organize employee training improve activities

appraisal interviews development the promotion mechanism and build

Employees * On-site investigation * Occupational health and the development platform * Press * Maintain good relationships * Expand publicity channels

releases/Announcements

* Employee activities safety * Improve working conditions and care for * Establish positive interaction * Invite stakeholders to visit

* Employee care employees in difficulties Media * Media interview * Communicate with NGOs

* Democratic management * Carry out employee activities and * ESG materiality assessment

strengthen employee communication questionnaires

15 162024 Environmental Social and Governance Report

Materiality assessment High

Sinoma International integrates the materiality assessment into the overall risk management process of the

Company. In order to identify the ESG issues of most concern to the Company's major stakeholders during the Ⅱ- 2

preparation period of this report the Company in combination with the requirements of the Reference Indicator Ⅱ- 6

System for the ESG Special Report of Listed Companies Controlled by Central Enterprises Guidelines No. 14 of the Ⅰ- 5 Ⅲ- 3

Shanghai Stock Exchange for Self-regulation of Listed Companies — Sustainable Development Report (Trial) TCFD Ⅲ- 4Ⅱ- 7 Ⅰ- 1

recommendations has actively understood and responded to stakeholders' concerns about ESG issues through

questionnaires review and summary exchange meetings and other means to assess the materiality of the issues Ⅲ- 2 Ⅰ- 2 Ⅰ- 8

and has taken it as an important reference for defining the scope and boundary of issue disclosure.Ⅱ-1Ⅰ-4Ⅲ-1

Ⅰ-3

Ⅱ-5Ⅰ-6

Update and screen a comprehensive list of potential ESG material issues

Ⅱ-8

Ⅱ-3

Ⅰ-7

Ⅱ-4

Identify ESG issues that are most relevant to the Company

Low Materiality to operational development of the Company High

Conduct stakeholder surveys through questionnaires Environmental Social Governance

Ⅰ- 1 Emission management Ⅱ- 1 Human resource management Ⅲ- 1 Anti-corruption

Ⅲ- 2 Anti-unfair

Ⅰ- 2 Waste management Ⅱ- 2 Occupational health and safety of employees competition

Ⅰ- 3 3 Greenhouse gas emissions and Ⅱ- 3 Career development and training of

Identify material issues by creating materiality matrix based on survey results management employees Ⅲ- 3 Legal compliance

Ⅰ- 4 Energy usage and efficiency Ⅱ- 4 Child and forced labor Ⅲ- 4 Enterprise information disclosure

Ⅰ- 5 Development of green Ⅱ- 5 Environmental and social risks of the

technologies supply chain

Review and confirm the identification results of material issues by Board of Directors Ⅰ- 6 Water usage and efficiency Ⅱ- 6 Product and service quality

Ⅰ- 7 Protection of ecological

environment and biodiversity Ⅱ- 7 Scientific research input and innovation

Procedures of identification and materiality assessment of issues Ⅰ- 8 Response to climate change Ⅱ- 8 Community investment and engagement

Note: Topics marked in blue are considered important.

1718

Materiality to external stakeholders2024 Environmental Social and Governance Report

Conduct an overall layout to build a

green and low-carbon industrial chain Community

Other Industrial and

Commercial Users

The green concept drives transformation and marks a significant step forward in green development. Through the all-

round solution of front-end scientific design mid-range fine construction and efficient operation at the end Sinoma

International integrates the advantageous resources of its subsidiary companies in cement mining equipment

manufacturing and other business segments in the realms of engineering construction equipment manufacturing Domestic Waste

operational management and technological research and development the principles of green and low-carbon are General Solid Waste

thoroughly implemented has successfully built an ecological industrial chain running through the upstream and

downstream and actively accelerates green and low-carbon transformation of the global industrial chain. RDF Processing

Alternative fuel Centers

By consolidating resources the Company has established a specialized platform

green energy platform a comprehensive business development system

encompassing five major areas has been constructed: wind and solar The Company has established a platform for the alternative fuel industry chain

EPC hybrid wind turbine towers smart microgrids new energy and establish an integrated business system for the "collection storage

development and advanced energy storage. This platform provides production transportation and use" of alternative fuel. The platform processes

solutions for the energy structure transformation and low-carbon foreign hazardous waste domestic waste waste textiles and waste tires into

development of the cement industry and other industrial and alternative fuel and supply them to cement production lines bringing

commercial sectors. significant carbon reduction benefits to the industry chain.Green energy and

environment-friendly industry

Green and smart

Green and low- factory

carbon mining Cement Plant

With its low-carbon technology advantages Sinoma International is

Mining The Company has actively carried out green mine construction accelerated the aiming to build a high-quality green factory to achieve efficient

transition to new energy in mining equipment actively explored pilot projects for energy saving and emission reduction. It also integrates cutting-

"net-zero electric mines" and continuously pursued pathways for ecological edge 5G big data artificial intelligence and other technologies into

restoration and management. The concept of green mining has been integrated traditional industrial production to create highly intelligent green

throughout the entire process of mineral resource development and utilization and efficient smart factories.transforming mines into verdant landscapes and pristine waters.Developing green and low-carbon technologies Manufacturing green low-carbon equipment Green and low-carbon engineering and construction Green intelligent global operation

Through vigorous development of green technologies Through the research and development of key Be fully committed to "zero electricity construction" Provide cement production line operation services for

extensive research and application of carbon reduction technologies it has improved product performance actively promote the application of clean energy cement plants in a green intelligent and sustainable

technologies and advancements in carbon capture and promoted the application of low-carbon and ultra-low- equipment rationally distribute solar new energy manner covering production line commissioning

utilization technologies tackling energy-saving and carbon- emission technologies in the cement production process facilities construct photovoltaic power generation production operation technical support expert

reducing technologies in the key areas has been focused and made breakthroughs in the research development systems for the supply of green electricity for consultation personnel training and engineering

including "alternative fuels" "clay calcination" and "full- and manufacture of low-carbon equipment. construction and actively promote the energy structure optimization.oxygen combustion." These efforts have laid a solid technical transformation of cement industry chain.foundation for the low-carbon transformation of the industry.

19 Conduct an overall layout to build a green and low-carbon industrial chain 202024 Environmental Social and Governance Report

Green and smart factory Green and smart factory

* CNBM Smart Industry Technology Co. Ltd. achieved system-wide coverage of intelligent factory products and

In Belgium provided services for the construction of 17 digital intelligent factories throughout the year. The comprehensive

CBMI Construction Co. Ltd. signed the contract for Europe's first "zero- solution of the self-developed industrial internet platform was applied in 9 projects such as Shaofeng South and

carbon" factory—the Go4Zero project. As Holcim Group first oxygen-fuel the first phase of Tongchuan "zero-employee" project was completed for delivery and acceptance.combustion project the project aims to reduce CO? emissions by 30% * The Hunan Jinlei Southern 4900t/d Clinker Cement

clinker heat consumption by 40% and system power consumption by Production Line undertaken by Sinoma Smart

50% with a fuel substitution rate of 95%. After its commissioning the Technology on an EPC basis was designed with full-

project will reduce CO? emissions by 1.1 million tons annually. It will Holcim Group's oxygen-fuel combustion project process digitalization establishing a comprehensive

contribute significantly to global climate change mitigation. digital asset library and a digital twin factory. This

highly automated and unmanned production line is

In the Czech Republic equipped with advanced facilities including a

limestone power generation belt and an unattended

CBMI Construction Co. Ltd. signed a contract for the general pre-homogenization stockyard. Through data and

contracting project of Heidelberg Cement Mokra 3250 T/d model-driven intelligent operation and

clinker line with a fuel substitution rate of 90% and an maintenance the production line has established

annual carbon reduction of approximately 280000 tons. The optimization models for production output quality

project aims to achieve energy conservation and emission and energy efficiency enabling optimal production

Heidelberg Materials Mokra 3250T/d clinker line reduction by building a modern clinker production line. control. Hunan Jinlei South 4900t/d clinker cement production line full view

In France Green and low-carbon mining

the MK3 project in France constructed by CBMI Construction Co. Ltd. has a heat

substitution rate of more than 80%. Supported by digital and intelligent * The Chuzhou China United Cement Corporation

construction design the project derives green low-carbon and environmental (CUCC) mine constructed by Yanzhou Sinoma won

protection and digital innovation into the whole life cycle management of the the first place in the selection of national green

plant which is the most influential cement renovation project approved in mines. The mine was built with an advanced 5G

developed countries in Western Europe in recent years. After the project is put into intelligent mine system which ensures the

MK3 2500t/d new dry operation it can achieve a carbon reduction of 241 kg per ton of clinker reducing minimization of the impact on the environment

cement clinker production carbon dioxide emissions by about 192000 tons per year and is expected to while realizing efficient production in the mine.line generate an annual carbon emission reduction benefit of about EUR 20 million. Chuzhou China United Cement Corporation (CUCC) green mines* Sinoma Mining has undertaken research projects

such as "Ecological Restoration Technology

In Egypt Research and Demonstration Application for Mines The Company has built a total of

in Arid Regions of North China" and "Key Technology

Chengdu Design and Research Institute of Building Materials Industry Co. Development and Demonstration Project for 48 national green mines

Ltd. has built a WNCC cement kiln alternative fuel utilization system with a Reconstructing a Pollution-Reducing and Carbon-

substitution scale of 25 t/h. The project completed and put into Sequestering Functional Ecosystem in the 119 provincial green mines

operation in December 2024 will annually reduce fossil fuel consumption Baojianshan Mining Quarry". These projects address

by 75000 tons of standard coal and carbon dioxide emissions by

approximately 206000 tons. It is expected to generate approximately challenges such as vegetation restoration in arid areas and steep slopes effectively improving issues like severe

15.45 million euros in carbon emission benefits annually. This project has slope disturbance and instability. By utilizing carbon sequestration technologies Sinoma Mining is reconstructing Modification of alternative fuel

significant implications and demonstration effects for improving the local utilization system for cement kiln in mining ecosystems contributing to sustainable environmental restoration.environment and reducing cement kiln carbon emissions. Egypt

21 Conduct an overall layout to build a green and low-carbon industrial chain 222024 Environmental Social and Governance Report

Developing green and low-carbon technologies Manufacturing green low-carbon equipment

* Sinoma International Intelligent Technology Co. * The new generation cement roller press final

Ltd.'s Holcim MAL01 project in Poland is the largest grinding technology of Equipment Group has been

project of Holcim in Europe. This project implements successfully applied in the Qingsong Cement

intelligent plant technologies including one-click Grinding Technical Transformation Project in

start and stop and introduces large-scale alternative Wujiaqu Xinjiang. This project marks the first

fuel cement kiln direct feeding technology achieving commercial application of the second-generation

an alternative fuel calorific value of 16-20 GJ/t and a multi-rotor separator in China achieving significant

fuel calorific value replacement rate of ≥90%. This energy savings. Production power consumption is

project has been successfully included in the "Typical reduced by about 7 kWh/t and ventilation power Equipment Group's Xinjiang Wujiaqu Qingsong cement grinding

Cases of China-EU Green and Low-carbon consumption is significantly reduced. system modification project

Development Cooperation". SPL Project panorama

* The Equipment Group has developed the key technologies and complete sets of equipment for activated

* CBMI Construction undertook the SPL Project in France for Holcim Group delivering the group’s first-ever calcination of raw materials and cement classification and grinding respectively. These innovations have reduced

production line featuring a rotary coupling system to fully replace fossil fuels with clay—achieving a 100% carbon emission intensity for 42.5 cement production ≤ 470 kg/t with a decrease of about 27% in carbon

substitution rate and creating a "zero fossil fuel" green cement plant. produces high-quality LC3 cement emission intensity compared with traditional grinding technology.through clay calcination which can reduce carbon dioxide emissions by 100000 tons per year equivalent to * The Equipment Group has implemented energy-saving and environment-friendly transformation on the 4500 t/d

creating carbon emission reduction benefits of 8.5 million euros per year. Once again the Company has created a cement clinker production line in Ningxia Tianyuan. The project utilizes six-stage pre-decomposition patent

new milestone in the application of low-carbon environmental protection energy-saving and emission reduction technology to optimize the burning system reducing clinker heat consumption by 17.6% saving 22000 tons of

technologies in the field of cement industry. coal annually and reducing carbon dioxide emissions by 59000 tons.* The China United Cement Qingzhou Co. Ltd.'s * Sinoma International (Nanjing) Engineering Co. Ltd. has independently developed a technological for

annual 200000-ton carbon dioxide oxygen- decomposing phosphogypsum to produce sulfuric acid while co-producing cement which has been successfully

enriched combustion enrichment and purification implemented at the world's largest production line of phosphogypsum disposal capacity in Wengfu Guizhou.demonstration project contracted by the This production line reduces annual stockpiling land use by 30 hectares decreases limestone mining by 800000

Equipment Group stands as the largest carbon tons and cuts CO2 emissions from limestone by 300000 tons. It marks a significant breakthrough in the

capture and utilization project in the global company's comprehensive exploration of green utilization of industrial by-product phosphogypsum providing

cement industry within the realm of oxygen- strong impetus for related phosphorus chemical enterprises both domestically and internationally to construct

enriched combustion coupled with carbon phosphogypsum-based acid production co-generation cement production lines. This advancement vigorously

capture technology. This project applied the full- promotes the industry's green transformation and sustainable development.oxygen combustion technology for cement kilns

which was independently developed and achieved

an increase in CO2 emission concentration from 20-

30% to over 80% reduced flue gas emissions by

more than 65% maintained a unit product capture

energy consumption of <1.6 GJ/t.CO2 and lowered

overall energy consumption by over 40% compared

to chemical absorption methods. These

accomplishments were featured in a special report Climate Action Technology and

by the Global CCS Institute and earned the 2024 Engineering Award by the World

Climate Action Technology and Engineering Cement Association (WCA)

Award by the World Cement Association (WCA).Phosphogypsum decomposition to sulfuric acid co-production cement plant of Guizhou Wengfu

23 Conduct an overall layout to build a green and low-carbon industrial chain 242024 Environmental Social and Governance Report

Green and low-carbon engineering and construction Alternative fuel platform

* CBMI Construction Co. Ltd.'s SC3 project in Senegal * By the end of 2024 Sinoma International Environmental Engineering Co. Ltd. has built 11 alternative fuel processing

has implemented a solar water heating system. This centers with an average annual production and processing capacity of 1.2 million tons. The total amount of alternative

system utilizes solar collectors to absorb solar fuels sold was 402000 tons saving 241200 tons of standard coal and bringing 627100 tons of carbon-reducing

radiation which then powers the pump group to benefits to the cement production line.transport purified cold water into heat-absorbing * Key projects for large-scale fuel substitution:

coated collector tubes for heating. The heated water

is circulated into an insulated hot water tank and Shanya Southern Project Hefei Southern Project Jiande Southern High-Proportion

subsequently supplied to staff dormitories via a Fuel Substitution Demonstration

booster pump group providing employees with 24- Sinoma Overseas Development Co. Ltd.'s Saudi Arabia YAMAMA Substitute fuel usage tail coal substitution rate Project (Sino-German Cooperation)

hour uninterrupted hot water. Project 1MW PV plant 69900 tons 45%

Substitute fuel usage

* In March 2024 Sinoma Overseas Development Co. Ltd. invested 5.47 million yuan to officially connect a self-built

1-megawatt photovoltaic power generation system to the grid at the YAMAMA project in Saudi Arabia. This CUCC Xuzhou Project CUCC Bengbu Project 52439 tons

photovoltaic power station is designed to meet the temporary electricity needs of the project's construction Substitute fuel usage tail coal substitution rate

phase. It is expected to reduce carbon dioxide emissions by 5100 tons over the total project cycle and save 2 39600 total coal substitution rate 22%million yuan in construction electricity costs. This initiative marks the Company's first green construction effort in tons 41%

a traditional cement engineering project in Saudi Arabia.Green energy and environment-friendly industry

Green intelligent global operation

Sinoma Overseas Development Co. Ltd. has been

* The intelligent service model of "Remote Maintenance System + Manufacturing Execution Platform (MEP) + developing a specialized platform for green energy and

Factory Intelligent System Module + Intelligent Equipment" adopted by CNBM Smart Industry Technology Co. Ltd. environmental protection with five major areas: wind

in the Saudi Arabia NRCC project has achieved more efficient accurate and flexible management and improved and solar EPC hybrid wind turbine towers smart

the overall energy efficiency. microgrids new energy development and advanced

* The intelligent operation and maintenance platform for Iraq's DCC Cement Production Project operated by energy storage with a total construction scale of 2.3

Sinoma (Suzhou) Construction Co. Ltd. and designed/developed by Sinoma International Intelligent Technology GW. This includes overseas photovoltaic projects with

Co. Ltd. has been successfully launched. This system integrates four core functional modules: production process an installed capacity of 1.39 GW and wind power Southwest Fuyuan project

optimization quality control equipment monitoring & failure warning and production surveillance. Through deep projects with an installed capacity of 130 MW. The

integration with the Company's digital construction platform it establishes a "1+N+M" system architecture that platform is expected to generate an annual electricity output of 2.75 million MWh resulting in an annual carbon

facilitates cost reduction efficiency enhancement and improved consistency in cement product quality. This reduction of 2.24 million tons. Fifteen new contracts were signed with a total investment of 364 million yuan and an

milestone marks a significant advancement in the Company's overseas intelligent production and operation estimated carbon reduction of 95764 tons; the installed capacity of the domestic smart microgrid distributed PV EPC

capabilities. project was 19.27MW with an average annual generating capacity of 17.6080 million kWh and a carbon reduction of

17555 tons.

* Sinoma Overseas CUCC Xuzhou Cement Wind-Solar-Storage Integrated Project combines photovoltaic power

generation and energy storage systems. The photovoltaic section has a total installed capacity of 11.38 MWp

while the energy storage section has a capacity of 10 MW/20 MWh. Upon completion the project is expected to

generate 11.9964 million kWh of electricity annually with an energy storage capacity of 7.30 million kWh. It will

reduce carbon emissions by 11344 tons each year.* Sinoma Overseas Yunnan Fuyuan Project innovatively integrates photovoltaic and wind power to achieve the goal

of zero purchased electricity for the plant. The distributed photovoltaic system has a total installed capacity of

7.2 MWp with an expected annual power generation of 8.76 million kWh reducing carbon emissions by 7759 tons

annually. The wind power section plans to install wind turbines with a total capacity of 20 MW expected to

Intelligent operation and maintenance platform for Iraq's DCC Cement Production Project generate 46.32 million kWh annually and reduce carbon emissions by approximately 38200 tons each year.

25 Conduct an overall layout to build a green and low-carbon industrial chain 262024 Environmental Social and Governance Report

Sound corporate governance

Sinoma International continues to optimize corporate governance standardize the governance structure and

deepen ESG governance. These efforts are designed to robustly safeguard shareholders' rights and interests and

improve corporate governance capabilities.Strengthen the

The Company received a series of awards for

foundation of corporate governance in 2024

governance to * The 19th "Gold Prize of Round Table" Award—Best Board of Directors

* The Best Practice Case of Listed Company Board Offices in 2024 and a 5A rating

secure sustainable of board secretary performance

* The Best Practice Award of Annual Report Performance for Listed Companies

operation and for 3 consecutive years

development * The Best Practice Case of the Boards of Listed Companies in 2024

* 2024 "SSN·Golden Quality" Company Governance Award

* The first Best Practice of Investor Relations Management of Listed Companies

* Sound * Compliant * Guarantee

corporate and ethical employee rights

governance operations and interests Standardize governance structure

In accordance with the requirements of laws regulations and normative documents such as the Company Law of the

People's Republic of China the Securities Law of the People's Republic of China and the Code of Corporate

Governance for Listed Companies Sinoma International has formulated a relatively complete system for listed

companies and established a sound corporate management structure composed of shareholders' meetings Board of

Directors Board of Supervisors and management team. Under these policies and structures clear powers and

responsibilities ensure a scientific standardized and efficient governance system with mutual balance. This

governance approach has led to a continuous improvement in the transparency and effectiveness of corporate

governance at Sinoma International.

27 Strengthen the foundation of governance to secure sustainable operation and development 282024 Environmental Social and Governance Report

In 2024 the Company held Protect shareholders' rights and interests

General meetings Board Supervisory

of shareholders meetings board meetings Sinoma International attaches great importance to creating shareholder value adheres to rewarding shareholders

6 8 6 and strengthens management of proactive investor relations which significantly enhances the Company's image in

the capital market. In addition the Company has established a shareholder rights and interests protection

mechanism improved communication policies with shareholders and timely and accurately discloses important

business decisions financial performance social practice activities and other corporate information to shareholders

The shareholders' meeting is the highest body of power of the Company. The Company strictly winning the trust and support of shareholders and investors.complies with the provisions and requirements of the Rules for the Shareholders' Meeting of Listed

Shareholders' Companies and the Articles of Association to gather and convene shareholders' (general) meetings

(Generally)

Meeting to ensure that shareholders legally exercise their rights and interests treat all shareholders equally

Value creation for shareholders

and provide convenience for shareholders to participate in the shareholders' (general) meetings as In 2024 the Company's operating performance achieved counter-cyclical growth and its value creation capabilities

much as possible enabling them to fully exercise their rights. continued to improve continuously enhancing market recognition and boosting investors' confidence.The Board of Directors of the Company consists of 9 directors including 6 external directors 3 of Since the listing the Company has implemented cash dividends every year

whom are independent directors. The chairman and the president serve separately to ensure the Cumulative cash dividends exceeding Dividend financing ratio of

Board of Directors of the Company is highly independent. The Board of Directors has four special

committees namely the Strategy Investment and ESG Committee the Audit and Risk RMB 6.3 billion more than 15 times

Board of Management Committee the Remuneration and Evaluation Committee and the Nomination

Directors Committee. They have been set up to ensure that the Company's strategies are based on sound

decision-making. Standard information disclosure

The Company takes into account factors such as age educational background professional Sinoma International strictly complies with the Measures for the Administration of Information Disclosure by Listed

experience skills and industry experience to ensure the diversity of the members of the Board of Companies performs our management obligations for information disclosure and ensures the authenticity

Directors. accuracy completeness and timeliness of information disclosure. Our information disclosure focusing on

compliance disclosure detail quality content characteristics and brand building actively spreads the Company 's

business philosophy to investors to assist them in value discovery. The Company strictly implementing the System

The Board of Supervisors independently exercises its supervisory authority supervises the legality

Board of for Registration and Management of Insiders Who Have Access to Insider Information of Listed Companies

Supervisors and compliance of the performance of the Company's directors and senior management standardizes the reporting transmission and confidentiality procedures for significant internal information to ensure personnel and is accountable to all shareholders. information security. This helps shareholders of the Company to timely understand and grasp the Company's

business dynamics financial status and progress of major issues and effectively protects the legitimate rights and

Shareholders' meeting interests of investors. In 2024 the Company disclosed 4 periodic reports and 70 provisional announcements without

amendments supplements or written inquiries. The Company has obtained A-level rating on information

Board of Supervisions disclosure issued by Shanghai Stock Exchange for 6 consecutive years.Strategy Investment and ESG Committee Smooth communication channels

Secretary of the Board of Directors Sinoma International has strengthened the management of proactive investor relations improved investor Board of Directors Audit and Risk Management Committee communication at multiple levels through various channels and in diverse forms and actively communicated with a

large number of small and medium-sized shareholders institutional analysts researchers and potential investors via

Remuneration and Evaluation Committee "online + offline" platforms regarding the Company's business performance development plans and important

events. Through regular performance briefings road shows visual video output and other investment related

Nomination Committee activities we promote direct interaction between the Company's management and investors comprehensively and

Management team accurately convey the Company's values and build a virtuous cycle of business management and value growth.

29 Strengthen the foundation of governance to secure sustainable operation and development 302024 Environmental Social and Governance Report

Compliant and ethical operations Enhance compliance rules

Sinoma International implements the Measures for the Compliance Management of Central Enterprises the

Advertising Law of the People's Republic of China the Trademark Law of the People's Republic of China and the

While confronting complicated and severe situations and various risks and challenges Sinoma International adheres Compliance Management Policy and the Management Guidelines for Overseas Compliance Operations of the Group

to bottom-line thinking and raises risk awareness. The Company has established a comprehensive risk management and the Company. We have also distributed copies of the Overseas Compliant Operation Manual and the Domestic

and control mechanism and strengthened internal control construction. In addition the Company strictly Compliant Operation Manual within the Company and strictly follow the requirements of business ethics including

implements compliance management into practice and has strengthened the building of a clean and honest Party anti-bribery anti-money laundering and business compliance requirements of trademark and advertising

style and built a strong ideological defense against corruption. All these actions can provide a strong guarantee for management. In response to risks in contract signing recovery of accounts receivable investment merger and

the sustainable and high-quality development of the Company. dispute resolution we have issued the Management Manual for Overseas EPC Project Legal and Contract Risks and

the Template of International Project Subcontracts which comprehensively guide the compliance work for affiliated

enterprises.Adhere to legal compliance We pay close attention to regulatory changes and conduct timely compliance checks. In addition we conduct the

work of "abolishment rectification and initiation" of all rules and systems and continuously improve its systems and

Sinoma International continues to strengthen the compliance system building and improve the compliance mechanisms thereby providing a strong guarantee for the compliance management.management mechanism. The Company also assumes compliance management responsibilities and cultivates a

sound compliance culture. In addition we follow the compliance requirements in all operational management areas

and links and integrate these requirements into the whole process of decision-making implementation and In 2024

supervision. These efforts are a strong guarantee for the further reform and high-quality development of the

Company. The Company carried out special Completed the effectiveness evaluation

compliance risk inspections at all levels of the compliance system of

Improve compliance system 16 times 6 enterprises

Sinoma International establishes and improves the compliance management system.Enterprises are required to set their own compliance management committees or legal By the end of

compliance departments or designate a department to manage the legal compliance 2024 the

issues and fulfill their respective compliance responsibilities. The Company fully Cultivate compliance culture

implements the "person of primary responsibility" mechanism for legal compliance and Company and

establishes a management system for legal construction which is led by the person of affiliated

primary responsibility for legal construction under the overall plan and arrangement by enterprises

the compliance management committee and with the legal compliance department Sinoma International has deepened the culture of integrity and compliance

taking the lead under the guidance of the general counsel. The main responsibilities are

assumed by all business and functional departments and the system runs under the

supervision of discipline inspection audit and other departments. We make concerted * Our employees at all levels signed a total of 7275 copies of the Compliance Commitment throughout the year

efforts to promote all compliance management tasks. had a total of * The annual meeting for legal construction and compliance management was held where we analyzed

In addition the Company continues to strengthen the guarantee for legal compliance by 35 full-time achievements and deficiencies in the Company's legal construction and compliance and set key tasks

hiring more professional personnel and keeps building the team of legal compliance * Organized all levels of enterprises to participate in compliance training organized by the SASAC the Group or

professionals full-time and part-time compliance management personnel. compliance

management China National Building Material Company Limited covering topics such as anti-monopoly compliance overseas

In 2024 the Company actively evaluated the effectiveness of the compliance management personnel compliance of enterprises enterprise intellectual property risk response cross-border mergers and acquisitions

system. First we required enterprises at all levels to self-assess their compliance and independently organized a series of legal compliance trainings publicize and implement new laws

management and prepared a Compliance Management Report for the Board of Directors

to review. In addition our compliance management system was monitored reviewed and 400 regulations policies and systems with a total of 83 compliance trainings carried out or participated in part-time

certified by a third-party certification agency to further streamline and refine our throughout the year covering 10071 person-times

compliance management. Our compliance management work has been advanced in compliance

depth. The Company has successfully passed GB/T 35770-2022/ISO 37301:2021 management * Regulatory changes and internal compliance management were promptly communicated to the senior

compliance management system certification and obtained the "double personnel management and department heads through quarterly newsletters office meetings and special training

certification" certificate for its compliance management system issued by SGS. * Violations were timely reported to the leadership for review and accountability actions were taken appropriately

31 Strengthen the foundation of governance to secure sustainable operation and development 322024 Environmental Social and Governance Report

With a commitment to create a risk management environment to ensure that all employees pay attention to

Strengthen internal control risks Sinoma International requires all departments to assign risk management personnel and affiliated companies

to assign risk contact persons. The Company also strengthens the risk management awareness and training

Sinoma International has established a sound internal risk control system and prepared comprehensive manuals. programs and promotes the development of a risk-aware culture. Training related to risk management is carried out

The Company conducts regular internal control evaluations for enterprises at all levels on an annual basis and tracks from time to time in the Company's enterprises. In 2024 a total of two targeted trainings were organized.the progress of corrective actions. We test the effectiveness of key processes and engage an audit firm for our internal

control. In addition we timely disclose the internal control evaluation and auditor's reports and submit them to the

Board of Directors for approval effectively strengthening the governance performance and promoting high-quality Risk management training

development of the Company.* The Company provides regular and occasional risk management training to all directors by taking advantage of

In 2024 the Company further strengthened evaluated and audited the internal control achieving full coverage corporate governance and information disclosure training conferences and specialized training on the reform of

of the internal control system at all levels completed 25 internal control compliance audits completed 100% of the independent director system organized by the Association of Listed Companies.the correction of internal control deficiencies guided the offshore organizations and newly established

organizations of its subsidiaries in the preparation of internal control manuals to strengthen internal control * The Company engaged an intermediary organization to conduct audit quality and risk prevention and control

management. The Company has obtained an unqualified internal control audit report issued by the annual review measures training for internal auditors risk control administrators and compliance administrators to further

agency for 13 consecutive years. enhance the risk sensitivity and preventive awareness of professionals.Deepen risk management Promote fair competition

The Company has established a systematic and effective risk management system with business and functional

departments serving as the first line of defense for daily risk management professional departments such as the legal Sinoma International prohibits unfair competition and implements the Measures for Accountability of Illegal

compliance department serving as the second line of defense for continuous risk monitoring and departments such Operation and Investment and follows requirements in the Company's domestic and overseas compliance manuals

as discipline inspection audit and inspection serving as the third line of defense for risk supervision focusing on regarding trade secrets protection anti-commercial bribery anti-monopoly prohibition of the abuse of dominant

strengthening the three lines of defense. The risk functions for the third line of defense are separate from business market position anti-unfair competition measures. The Company did not engage in any unfair competition including

and functional departments and they report directly to the management and board of directors. abuse of dominant market position for the purpose of competition confusion commercial bribery fake advertising

infringement of trade secrets and deceptive prize-giving sales throughout the year.Sinoma International prepares a risk management report covering the identification and assessment of significant

risks risk management strategies and solutions annually and submits it to a specialized committee of the Board of

Directors for consideration. In 2024 the Company identified and assessed 5 significant risks at the corporate level Stick to the bottom line of integrity

proposed 24 risk measures and did not experience any significant risk events throughout the year.Identification: At the beginning of Assessment: The Company Monitoring: The Company establishes a major risk early In strict accordance with anti-corruption policies and regulations Sinoma International improves policies prevention

each year the Company organizes a assesses risks based on their warning mechanism and promptly updates monitoring and early-warning mechanisms supervision and discipline enforcement and other aspects under the integrity

comprehensive risk inventory impact and likelihood indicators. It organizes affiliated enterprises functional management systems. The Company has taken multiple measures to carry out anti-corruption cultural activities and

collects risks by the main risk- categorizing them as general departments and key projects to participate in the annual has played a role in providing basic education on integrity steadfastly advancing the construction of Party conduct

responsible departments and significant major or critical risk dynamic monitoring and management and each

affiliated enterprises and risks and identifying the top management and control unit is required to report on the and anti-corruption efforts in depth providing strong guarantees for the high-quality development of the Company.continuously updates the risk five risks that require key risk control status and risk development trends on a

information database. management and control. quarterly basis. Uphold the integrity norms

Closed-loop risk management mechanism Sinoma International strictly complies with policies and regulations such as the Several Regulations on the Executives

Enquiry: The Company incorporates risk Response: The Company reviews its risk Analyses: The Company pays close of State-owned Enterprises for Performing Management Duties with Integrity the Code of Integrity and Self-discipline

management into the performance appraisal exposures on a quarterly basis and attention to and analyses the risks that of the CPC the Working Rules of the CPC Discipline Inspection Organ on Supervision and Discipline Enforcement and

indicators for executives and employees adopts a robust risk management policy continue to rise in the dashboards the Regulations of the CPC on Disciplinary Punishments. The Company implements the Provisions on the Prohibition

accounting for 15% of the annual performance based on the assessment that its overall and creates a "Quarterly Risk of Business Relationships with Enterprises of the Group by Relatives of Leaders of Enterprises and Persons with Other

appraisal of the audit department. For the risk appetite is "neutral". The Monitoring Report" that describes risk Specific Relationships Running Businesses of the Group and has officially issued the Sinoma International Integrity

department in charge of risk it is included in the effectiveness of business continuity exposure risk appetite risk

annual performance appraisal indicators and the management plans is constantly performance risk prevention and Culture System formulated policies including the Opinions of the Discipline Inspection Commission on Fulfilling

personnel with special contribution to risk validated and improved through control goals risk prevention and Supervision Responsibility in the Construction of the Party Conduct and Upholding Integrity. The affiliated

management and control are rewarded in the quarterly dynamic risk analysis control measures and newly identified enterprises are required to develop integrity risk control manuals and notices and clarify the anti-corruption

form of merit assessment. monitoring and management. risks. responsibilities and requirements.

33 Strengthen the foundation of governance to secure sustainable operation and development 342024 Environmental Social and Governance Report

Build a strong defense line against corruption Uphold a culture of integrity and probity

Sinoma International strengthens the Party conduct and has established a punishment and corruption prevention Sinoma International integrates the enhancement of a clean and honest Party style with anti-corruption efforts into

mechanism which is regularly maintained to build a strong ideological defense line against corruption. the overall plan for the Company's high-quality development and carries out solid supervision and inspection work

on integrity.Company principals and department heads of headquarters and subsidiaries have signed the Letter of

Guarantee of Responsibility for the Party Conduct and Integrity Building respectively. Additionally middle-level leaders and

integrity Anti-corruption supervision and auditstaff in key positions have also been organized to sign the Letter of Commitment to Integrity and Self-discipline

responsibility

fulfillment consolidating the primary responsibility for building a clean and honest party and enhancing their awareness of * According to the Implementation Measures for the Inspection Work of the Party Committee of Sinoma International and self-discipline and integrity in their roles. the Inspection Work Plan of the Party Committee of Sinoma International the Company's Party committee conducts an

annual inspection covering integrity and anti-corruption issues and achieves 100% coverage of affiliated enterprises

The Company has established email reporting channels for whistleblowing through discipline inspection every five years.commissions at all levels. Once a petition or report is submitted the respective commission will investigate * The Company's Discipline Inspection Commission organizes and carries out the construction of a comprehensive

according to the Working Rules of the CPC Discipline Inspection Organ on Supervision and Discipline

Smooth supervision system resulting in the "Sinoma International Comprehensive Supervision System Implementation Plan".reporting Enforcement and the Discipline Inspection Manual. The investigation will be conducted in accordance with the The Company organizes meetings of the leading group and coordination groups meetings for the building of Party

channels disciplinary workflow. Then the results will be escalated following the investigation. Meanwhile disciplinary conduct and integrity and anti-corruption efforts deploys supervision tasks carries out joint supervision and inspection

inspection personnel at all levels are prohibited from privately retaining disclosing or disseminating the content and leverages the collective power of supervision.of the problem clues the progress of clue investigation the parties involved in the clues the whistleblowers and

other relevant information in any form thereby strictly protecting whistleblowers. * The Commission for Discipline Inspection of the Company organizes special control inspections each year and has

achieved 100% coverage of its enterprises. Enterprises at all levels are required to self-check and self-correct; the Party

organizations of the affiliated enterprises of the Company report the progress of the anti-corruption work every year and

The Company will punish staff who violate the integrity requirements according to the circumstances in forms the Commission for Discipline Inspection of the Company visits grassroots units periodically to listen to their progress of

Clear reward including warning removal from the original positions demotion dismissal and disciplinary punishment within

and anti-corruption efforts.punishment the Party as well as reducing or withholding all performance pay and bonuses in the current year. The Company links remuneration and performance evaluations of employees with their integrity behavior and requires that * The Commission for Discipline Inspection at all levels of the Company establishes an Annual Political Supervision List to mechanism

integrity and discipline carry a certain weight in the performance evaluation forms. promote integrity discipline and anti-corruption in an integrated manner leverage the collective power of supervision

and enhance the quality and effectiveness of its oversight efforts.Digital The Company implements integrity-related policies provisions and standards in the approval processes of digital Learning to Cultivate Integrity

integrity businesses so as to realize system functions such as automatic verification of invoices digital identification of Promoting steadfast adherence to original aspirations

building reimbursement and provide online warnings and reminders of integrity risks. Sinoma Education to 1 Activities to

Shape Integrity Advocate Integrity

International Encouraging standardized Strengthening awareness and ethical behavior 2 Five Integrity 3 and commitment to integrity

Integrity Culture Initiatives and Five

Promotions

Anti- The Company has set up an entertainment expense reporting rule to supervise the expenses and reduce

System Platforms to Families to

Propagate Integrity 4 5 Support Integrity

commercial commercial bribery. The Company proactively signs the Integrity Commitment Letter in external bidding and Ensuring comprehensive Fostering the inheritance of coverage and engagement virtuous family traditions.bribery uniformly issues Procurement Subcontracting Integrity Agreement Template requiring all units to attach it to the

tender document and procurement subcontract to prevent commercial bribery.The Company annually holds a Party conduct and integrity conference

covering all the affiliated enterprises. In the monthly business analysis In 2024

In strict accordance with the Provisions on Prohibiting the Business Transactions between Enterprises Owned or meeting the "monthly discourse with the Secretary of Discipline

Interest Operated by Relatives or Other Specific Associates of Leaders and the Group's Companies the Company

Inspection Commission of the Party-on-Party Integrity Building" is A total of 389 sessions of integrity

avoidance organizes middle-level and higher leaders staff in key positions and project managers to complete and file the specially tailored for leading cadres and key position holders. education and training were conducted

self-investigation form for future reference. Through these efforts we ensure that all suspected violations are Targeting all employees and board members the Company compiles regularly for all full-time employees part-

investigated and reported promptly. educational materials on anti-corruption and integrity as well as a time employees and contractors

monthly magazine on discipline inspection. We subscribe to books

promoting business ethics push "Legal Knowledge" online lectures twice with a total of

The Company engages an audit firm to perform an annual audit on internal controls focusing on the risk of a week organize the viewing of integrity education videos and hold 100% coverage

Fraud audit material misstatement due to fraud and management override controls. education of clean practices presenting real-life examples of impropriety. 29500 of integrity training at

Furthermore we conduct pre-holiday warning education sessions and

invite the Secretary of Discipline Inspection Commission to deliver Party people receiving all levels of the

lectures. Moreover the Company oversees the execution of distinctive training Company

integrity culture awareness programs at its affiliated companies.

35 Strengthen the foundation of governance to secure sustainable operation and development 362024 Environmental Social and Governance Report

Guarantee employee rights and interests With the continuous improvement of global business

operations based on the characteristics of the Company's

high proportion of overseas operations the Company and its

Sinoma International adheres to the people-oriented principle fully respects and protects the basic rights and aff i liated en ter pr i ses for mulate human r esour ces

interests of employees strives to build a sound talent cultivation mechanism and offers greater care for employees management regulations incentive and protection

to make progress and grow together. performance appraisals and compensation management for

overseas employees and other systems based on local

conditions. This approach allows us to attract a diverse range

Enhance rights and interests' protection of talents spanning various nationalities races educational backgrounds work experiences and professional expertise

so as to cultivate an international and diverse talent pool we

Sinoma International strictly complies with the Labor Law of the People's Republic of China the Labor Contract Law also actively carry out policy training related to diversity anti- Diverse and inclusive talent team

of the People's Republic of China the Law of the People's Republic of China on Protection of Minors the Law of the discrimination and anti-harassment. In 2024 the Company

People's Republic of China on the Protection of Rights and Interests of Women the Provisions on Prohibition of Child conducted a survey of its subsidiaries to promote the ESG policy focusing on the employee code of conduct relating

Labor the Special Rules on the Labor Protection of Female Employees the Regulation on Ensuring Wage Payment to to employee inclusion and commitment to diversity covering the Company's key subsidiaries.Migrant Workers and other laws and regulations. Furthermore the Company has developed the Management

Measures for Recruitment and the Management Measures for Labor Contracts to regulate the labor employment The senior management of the Company is responsible for the overall diversity of employees and clearly regards the

practices. "extension of local value chain" as one of the Company's key tasks. With the goal of building an international and diversified talent team the senior management is committed to improving the localization rate of employees.The Company adheres to the principles of openness fairness and impartiality in recruitment and signs labor

contracts with employees according to the law eliminating illegal employment. During this reporting period the In 2024 The number of of which the proportion of middle and high-level foreign employees

Company did not engage in child labor employment or forced labor violations and the labor contract signing rate foreign employees of in the local company of Chengdu Design and Research Institute of

remained at 100%. For employees who have been moved out of their jobs in accordance with the law the Company the Company Building Materials Industry Co. Ltd.will provide them with career counseling to improve their business skills and help them find employment as soon as

possible. If there were any personal disputes such as labor arbitration or other disputes occurring the Human reached 2356 reached 40%

Resources Department Legal Department and trade unions will jointly intervene promptly and ensure that the

legitimate rights and interests of our employees are safeguarded. The Company ensures the rights of female employees. Through various means such as organizing seminars for female

colleagues and establishing female employee committees voices and suggestions of the female employees are

heard. We strive to provide equal opportunities for promotion and growth thereby protecting women's entitlement

Uphold equal human rights to equal employment rights in a tangible manner

Sinoma International promotes equal employment opportunities combats any form of workplace harassment

opposes all forms of discrimination and avoids differential employment based on differences in age gender Smooth appeal channel

nationality ethnicity religious beliefs and health status. We follow the principle of equal pay for equal work and

promote the fair employment and builds a diverse and tolerant corporate culture that enhances cohesion and sense The Company has developed a series of policies and processes to ensure that all employees and contractors can strictly

of identity. follow and maintain the Code of Business Conduct and Human Rights Policy Statement of Sinoma International. To this end

the Company has set up reporting mailboxes providing a confidential and anonymous reporting method and offering

Human rights risk management employees a convenient channel for appeal. At the same time customers suppliers and other stakeholders are also

welcome to raise any concerns they have through this channel.The Company actively carries out human rights due diligence procedures in its own operations and value chain aiming to

actively identify and assess potential impacts and risks related to respect for human rights and take corresponding In terms of business ethics In terms of human rights

human rights improvement and remedial measures. The focus is on forced labor child labor discrimination and unequal

opportunities and the evaluation scope covers the Company's employees with special attention to groups such as jubao@sinoma.com.cn hresg@sinoma.com.cn

women children and migrant workers. For example the Company regularly conducts self-assessment of human rights In 2024 the Company didn't receive any appeals from all over the world through the above

risks at all levels of enterprises including self-check and self-correction of the timely payment of wages to migrant

workers and strengthens the supervision of subcontractors. channel and has not resulted in any disciplinary action. Any behavior suspected of violating laws

policies and guidelines will be considered extremely serious issues by the Company. The Company will conduct careful and

During the year the Company did not identify any potential human rights issues as mentioned above nor did it professional investigations into all appeals and will take appropriate actions based on the findings. It does not tolerate any

experience any incidents that violated the principles of equal opportunity diversity and anti-discrimination. form of retaliation.

37 Strengthen the foundation of governance to secure sustainable operation and development 382024 Environmental Social and Governance Report

Optimize the salary and working hours mechanism

Sinoma International implements standard working hours and formulates systems such as the Salary Management Measures Facilitate employee growth

and the Employee Working Hours Rest Vacation and Leave Management System to regulate and manage the working hours

rest and holiday arrangements of its employees. A dynamic adjustment rule has been established based on job contribution Sinoma International attaches great importance to the employees' growth. With the focus on "optimizing talent

and market prices in the same industry. working mechanism improving talent development environment and motivating talent innovation ability" we

continuously establish and improve the entire chain management mechanisms for talent selection cultivation and

? We implement a basic salary system including basic wage post wage and allowance. We also provide medical insurance

pension insurance industrial injury insurance maternity insurance unemployment insurance and housing fund for 100% of usage. This mechanism is designed to foster three major systems namely a dual channel system for management

the employees and enterprise annuity for 60% of all the employees. and specialties a job qualification system and a rank promotion certification system to systematically promote and

Performance evaluation is conducted on a quarterly or annual basis consisting of various forms of assessment such as continuously carry out the "five key talents" cultivation project: talents of finance and economics talents of science ?

company department project team goal assessment individual goal assessment multi-dimensional performance and technology talents of internationalization talents in operation and talents of outstanding young leaders. Efforts

evaluation and instant communication. After the evaluation results are announced department heads will have one-on-one are made to improve employees' competence and quality maintain a reliable development ladder and achieve

performance interviews with employees to gain a deeper understanding of their work listen to their feedback and provide synergistic development between the enterprise and employees.targeted improvement suggestions development guidance and training for employees.? We align employee performance with the overall benefits of the Company and the achievement of team and individual goals.The floating part of wages of senior management at all levels takes over 60% while the proportion for the middle-class Talent development system

management at the headquarters is 30%-50% and general staff below 30%.? We implement a restricted stock incentive program covering directors senior management core management and business

and technical backbone of the Company. Performance evaluation indicators are set at the company level the affiliated * Talent resource reserve

enterprises level and the individual level. For example for CEO the Company grants a restricted stock incentive plan with a The Company comprehensively coordinated the campus recruitment work at all levels and a total of

three-year assessment period and a two-year lock-up period. The grant conditions and the conditions for release of restricted

shares are strongly linked to the operating performance of the Company. Factors affecting incentives mainly include economic 448 fresh graduates were contracted in 2024; the Company actively participated in the Tsinghua

indicators such as return on net assets and compound growth rate of net profit. As of the end of the reporting period a total of Campus Recruitment Double-Election Fair organized by the Group and assisted its affiliated

264 people at all levels received restricted stock incentives and employee shares accounted for 2.13% of the total equity enterprises in efficiently introducing talents from colleges and universities.

capital of the Company.? We further promote the construction of the medium and long-term incentive mechanism and effectively use six types of * Diversified training systems

incentive tools including excess profit sharing virtual equity and employee stock ownership and increase support for

scientific and technological innovation high-end equipment digital intelligence and other fields. The incentives cover 2483 The Company organizes targeted training courses for all employees including onboard training and

recipients accounting for 16% of the total employees. dual-mentorship systems-on-site mentors and headquarters mentors-for frontline employees thus

? A dual-track increasing salary system is adopted. We conduct regular assessments to employees' income. Upon evaluation giving full play to the role of business backbones as mentors.the salaries of all employees at all levels exceeded the local social average in order to satisfy their living requirements. I. Training types: strategic management business general (including communication computer

? We set up a salary recovery system. Management members who violate relevant laws and regulations of the state or who lose applications data processing etc.) other (according to the needs of specific positions)

assets due to failure to perform or perform their duties properly will be subject to a corresponding reduction in their current

performance annual salaries or recovery of part or all of their paid performance annual salaries and medium and long-term II. Training methods: internal training external training mentoring (business backbone or middle

incentive earnings. and senior managers as mentors) internal rotation self-study etc

Improve democratic management III. Special training: Localized Development Lecture Hall Science and Technology Lecture Hall Digital training English Salon English training for cadres and staff etc

Sinoma International strictly complies with the Trade Union Law of the People's Republic of China the Constitution of All-

China Trade Union and other laws and regulations and promotes the democratic management system based on the * Internal post rotation and exchange

employee congress. The Company builds a platform for employees to express their concerns through various channels such

as staff suggestion boxes staff congress feedback from trade unions and staff symposiums. The Company requires that The Company carries out reasonable planning for personnel for staff shortage departments priority

medium- and long-term incentive programs annual leave programs be implemented after the expression of opinions by the for internal transfer; employees who are interested in other areas of work can apply to the Human

staff congress. By the end of 2024 the Company had a total of 1100 employee representatives and the proportion of Resources Department the Company will evaluated according to the actual situation the internal

employees joining the trade union was 86%. recruitment process to provide them with new career development opportunities. In addition the

Company carries out internal post's rotation and communication sessions among employees to

In 2024 the Company conducted a satisfaction survey for all employees to learn about their job satisfaction and collect enhance their understanding of the Company's overall business and their abilities to solve practical

opinions and suggestions on work experience internal motivation happiness work pressure etc. through online business problems.questionnaires. The survey covers 47.91% of the Company's employees with a satisfaction rate over 95% for all

employees categorized by gender race employee category and age.

39 Strengthen the foundation of governance to secure sustainable operation and development 402024 Environmental Social and Governance Report

Case: Improving the political attainment of cadres to boost corporate quality and efficiency

* Deepen school-enterprise cooperation

In March 2024 the fifth training class for improving the

The Company and Wuhan University of Technology jointly organize and carry out on-the-job political attainment and management ability of middle-

postgraduate training program; the "Chinese Workshop" project of Suzhou Sinoma conducted aged and young cadres of Sinoma International was

the "Chinese + Vocational Skills" localized staff training with Jiangxi Vocational College of successfully concluded at China Business Executives

Applied Science and Technology in Nigeria and has already accumulated the total number of Academy Dalian. The training covered six modules

trainings. More than 200 localized employees have been trained. namely political theory and Party spirit education

strategic management organizational leadership

enterprise management internationalization state- Group photo of the training class for middle-aged and young

* Qualification certificates acquisition owned enterprise reform. cadres and speech by Chairman Yin Zhisong

The Company encourages employees to acquire registered qualification certificates. The After successfully completing their studies 219 young cadres proactively deployed themselves to the frontlines

Company reimburses the cost of examinations related to the position held and pays a one-time of scientific research market development and production operations. This virtuous cycle of "learning through

bonus and a monthly practice allowance upon registration in the unit. practice and improving through application" not only cultivates compound talents but also significantly

contributes to the Company's high-quality development strategy.* Locally-hired talent development

Case: Promoting Sino-Russian technical exchanges and cultivating new modern cement talents

The Company promotes the management model

of "localized employment and localized In March 2024 CEMROS a Russian company and

resources" and strengthens the cultivation and Equipment Group jointly launched a 20-day training on

introduction of locally-hired talents. We also modern cement production technology. The training

employ high-end local talents regarding involved latest technologies such as cement raw fuel

business legal affairs and tax while recruiting firing system and grinding system and field visits to a

local university graduates as new talent to number of enterprises and scientific research platforms providing a platform for learning and cooperation. The

provide human resources support for the long-

Employees from Sinoma (Suzhou) Construction Co. two parties will take this training as an opportunity to

term development in the local area and Ltd. participated in the training and competition of continue to deepen exchanges and cooperation and

contribute to local employment. "China Copper Cup" jointly promote the development of the cement industry Equipment Group and CEMROS jointly held a training on modern cement production technology

in China and Russia.* Scientific and technological talent development

The Company builds a database of key technological talents and highly skilled talents. We have Case: Series of intelligent training to help the Company's strategic transformation

cumulatively applied for the recognition of 39 leading scientific and technological talents and

51 young scientists of whom 9 are included in the Group's leading scientific research talent Sinoma International Intelligent Technology Co. Ltd.

pool and 25 receive special government allowances from the State Council. More than 760 jointly plans and implements a series of intelligent training programs to comply with the strategic direction of

scientific and technological talents enjoy medium- and long-term incentives accounting for the Company's transformation into an intelligent

25% of all talents. technology company and to ensure the smooth

integration of employees into the new business fields.In 2024 The Company hosted or participated with total cumulative average training time 2024 the Company held a total of 28 intelligent and digital

training programs at all levels training time of per employee of thematic trainings with a participation rate of 82% and the designers participated in the REVIT 3-D modelling

2350 898900 hours 67.06 hours competence assessment and passed the test 100% of Sinoma International Intelligent Technology Co. Ltd. digital

which 46 people were certified at the national level and 49 transformation training

people were certified at the second level. In 2024 the

Company organized 28 training sessions on intelligent and digitalization topics with 82% participation. Through

systematic training the Company's entire staff has preliminary digital and intelligent design capabilities laying a

solid talent foundation for strategic transformation.

41 Strengthen the foundation of governance to secure sustainable operation and development 422024 Environmental Social and Governance Report

The Company has established a fitness center within its office premises and offers professional sports venues.Promote employee care Besides we organize a diverse array of cultural and sports events including basketball game badminton

competition table tennis match and fun sports game. These initiatives aim to enrich our employees' spare-time lives

Sinoma International continuously improves the welfare security develops welfare management systems such as the and foster their physical and mental well-being.Employee Leave Management Measures and the Youth Talent Apartment and Subsidy measure. This approach fully

implements employee care during the full-time career cycle fostering a strong sense of belonging. In 2024 The labor Case: "Walking Together" on the new journey

union of the Xi'an Branch of Sinoma Mining Construction Co. Ltd. won the title of "Home of National Model In April 2024 the first employee walking activity of CNBM

Workers". Sinoma International Intelligent Technology Co. was awarded "2023 China's Best Employer Equipment Group themed on "Walking Together" was

of the Year" held simultaneously in Tianjin and Hefei with nearly 1800 by Social Survey Research Centre of Peking University and Zhaopin.com. participating employees. Through this activity CNBM

Equipment Group comprehensively improved the physical

Help and comfort the people in need fitness of employees further enriched their cultural life.The first employee walking activity of Equipment Group

* Sinoma Overseas Development Co. Ltd. continuously pays attention to their needs in various ways such as

visiting the families of overseas employees during the Spring Festival and distributing special assistance and relief Care for female employees

funds to local employees making every effort to support overseas employees and their families. Sinoma International deeply cares about its female employees' difficulties and special needs in the workplace. We

* We deliver festive greetings during holidays such as the Spring Festival Dragon Boat Festival and Mid-Autumn take tangible and warm actions to create a favorable working environment for them.Festival. Additionally the employees receive a birthday cake card at his/her birthday month as a token of our

appreciation and care. Theme activities for fun

* We pay prompt visit to employees who are hospitalized we periodically visit retired employees and assist them in

addressing any urgent issues and difficulties in their daily lives. The Company's trade unions at all levels organized a

* Relying on the Group's Love and Public Welfare Assistance Fund we provide assistance to employees in special series of celebrations for the International Women's Day and invite foreign female employees to participate

difficulties. In 2024 we carried out 881 employee condolence and assistance programs with a cumulative in the colorful theme activities held by the Company's

expenditure RMB 488000. headquarters and affiliated enterprises to enhance

team cohesion.* The Company continued to explore the mechanism of support for overseas employees and issued the

implementation measures for Support and Assistance for Overseas Employees which were thoroughly tested in

Nigeria. The Company has set up a special assistance fund. The Company has set up special funds to help 48

Nigerian employees. International Women's Day celebrations

Maternal and infant care

Continuously care for physical and mental health

The Company extends exceptional support and

Sinoma International deeply cares about the well-being of its employees and always adheres to humanistic care. We attention to "novice mothers". Twelve months after the

regularly organize free medical check-ups for our employees and hire professional doctors to conduct employee expiry o f matern ity leav e ends one ho ur o f

health consultations and provide psychological counselling as needed. We provide flexible working hours for breastfeeding leave per day is granted; in the case of

employees offer "working from home" alternatives for employees in special conditions and allow employees to work multiple births the breastfeeding time is increased by

off-peak in case of extreme weather. Pregnant women can apply for home office to reduce the risk of accidents. The one hour per day for each additional child. Xi'an Branch

Company provides annual parental leave for couples who give birth to a child in accordance with the law and each of Sinoma Mining Construction Co. Ltd. established a

spouse is entitled to ten days of parental leave per year until the child reaches the age of three with the number of provincial second-class nursing room and Tianjin International Women's Day celebrations

days of parental leave being cumulatively stacked in the case of families with multiple children. Sinoma (Suzhou) Cement Industry Design & Research Institute Co. Ltd.Construction Co. Ltd. has established an exclusive online channel to provide free treatment consultation for set up the Mother's Home with supporting facilities such as independent cubicles dedicated to serving

employees fostering a sense of security and happiness within the workforce. pregnant and lactating female employees.

43 Strengthen the foundation of governance to secure sustainable operation and development 442024 Environmental Social and Governance Report

Strengthen safety defence lines

Practice the commitment to safety The Company has formulated a series of safety management objectives and solidly promoted the implementation of

production safety work to achieve results:

Sinoma International adheres to the core concept of "people-oriented safe development and green development"

implements the working principle of "prioritizing safety environmental protection and prevention comprehensive

treatment full participation and continuous improvement" and promotes the formation of a safety management

pattern featuring all-round management whole-process control and full participation to create a safe and stable Traffic or fire accidents during the Production safety liability incidents

environment for the high-quality development of the Company. production process

Emergency with major impacts 0 New occupational cases of illness

Implement safety management

Sinoma International and its affiliated enterprises have formulated an environmental occupational health and safety ? In addition the Company has set a safe work target of no more than 0.8‰ serious injuries

management system based on ISO series standards which is overseen by the board of directors. We continuously In 2024 the Company successfully achieved the

improve and optimize the norms and standards of HSE management and develop a comprehensive institutional

framework that includes the HSE Management Manual and the Compilation of HSE Management System. Leveraging abovementioned goals

robust organizational coordination capabilities and pragmatic work ethos we have diligently implemented safety

management measures successfully achieved our annual safety objectives and maintained a stable and secure

operational environment. The Company continued to strengthen resource support and implement production safety measures:

The Company has established a Production Safety Committee with Safety and environmental protection inspections were carried out for 11 enterprises involving 30

the Chairman and President as co-chairs responsible for: 100%

projects and three equipment manufacturers and covering 100% directly managed

* Organizing the implementation of the Company's production safety responsibility system for all employees

and strengthening the development of production safety standardization.* Organizing the formulation of the Company's production safety management system and operating

procedures and promoting the implementation of safety management measures. Invested in safety and health A total of 2173 involving 45721

* Organizing the formulation and implementation of the Company's production safety education and training over RMB 552 million emergency drills person-times

plans.* Ensuring the effective implementation of the Company's production safety investments.* Organizing the construction of a "dual control" system for risk classification and hazard investigation and 147.59 million safe man- A total of 29006 with a 100%

supervising and inspecting the production safety work of affiliated units. hours (including subcontractors) cases of inspection on rectification

* Organizing the formulation and implementation of various emergency rescue plans for the Company and in 2024 potential risks completion rate

guiding emergency rescue accident investigation and handling work.* Researching proposing and approving the Company's production safety policies objectives and annual

production safety plans and handling and making decisions on major production safety issues. 28106 safety and A total of 37776 with a 100%

* Organizing the implementation of the occupational disease prevention and control responsibility system environmental protection inspections production safety signing rate

establishing the goals of occupational safety and health and occupational disease prevention and control were carried out responsibility letters

work as well as the plans to achieve these goals and regularly supervising and inspecting the plans' signed at all levels

implementation.The Company revised and issued the Sinoma International Production Safety Energy Conservation and

Ecological Environmental Protection Assessment Management Measures which links major safety-related issues Among the enterprises at all representing a proportion of

and targets with the remuneration of senior executives and specifies veto indicators and key KPIs and the levels 47 have obtained the 75%

assessment indicators have a direct impact on the results of the annual assessment of the senior executives and

their remuneration incomes. ISO45001 Certification

Note：The number of enterprises at all levels used to calculate the proportion of ISO45001 certified enterprises refers to

the number of enterprises engaged in engineering construction equipment manufacturing green energy and

environmental protection.

45 Strengthen the foundation of governance to secure sustainable operation and development 462024 Environmental Social and Governance Report

The Company integrates the safety management of subcontractors and labor teams into its comprehensive safety

framework stipulates the safety and environmental responsibilities obligations and rights of both parties clarifies In 2024

the safety and environmental protection access requirements for equipment construction machinery and facilities

provides subcontractors with training on safety management and raises safety awareness supervises and guides The individual protection rate at hazardous The health examination rate

subcontractors to establish safety management systems helps them understand the Company's safety and work sites of the Company was of employees was

environmental management policies and requirements. Unauthorized subcontractors are prohibited while any 100% 100%

violations including work against regulations illegal directives and labor discipline breaches are promptly identified

and corrected. Besides we avoid over-reliance on subcontractors and penalties in safety management.Guard occupational health Build safety culture

Sinoma International places an emphasis on safety education and training diligently improving the professional

Sinoma International conscientiously implements the call for "Health China" strictly abides by the Law of the expertise of its dedicated safety and environmental management team. All affiliated enterprises and the Project

People's Republic of China on the Prevention and Control of Occupational Diseases the Regulations on Work-Related Department guided by three-level safety and environmental protection education adopted various forms of

Injury Insurance and other laws and regulations. The Company conducts occupational health and safety risk and activities such as safety environmental protection and occupational health onboarding training special training

hazard assessment ranking the above risks in materiality order and formulating various contingency plans. In

addition we conscientiously assume the main responsibilities for prevention and control of occupational diseases safety experience training and accident case education. A total of 26575 safety education and training sessions

and carry out activities such as regularly organizing staff for physical examinations giving lectures of knowledge were launched with 572840 trainees and the training ratio of internal employees and contractor employees was

popularization and offering psychological health care for employees so as to effectively protect the health and safety 100%.of employees.The Company attached great importance to the "Safe Production Month" activity and constantly introduced new

In 2024 the Company invited hospital experts to hold lectures on the prevention and treatment of hypertension and approaches to promote safety through activities. Through safety lectures delivered by top leaders knowledge

organized six batches of cardiopulmonary resuscitation training. 62 people obtained the Heartsaver First Aid competitions safety culture promotion and accident case analysis we created a strong safety culture atmosphere.Certificate issued by American Heart Association (AHA). Third-party service agencies were hired to provide medical The Company actively arranges multiple production safety activities thereby enhancing the safety awareness and

occupational health and safety services for domestic and overseas employees and special training on safety and emergency response capabilities of its workforce across the board.occupational diseases were carried out for overseas employees to enhance their awareness of safety and infectious

disease prevention. Case: Foster a culture of safety where "Every Individual Embraces Safety" and ensures "Everyone is

Equipped with Capability of Emergency Handling

In terms of hazardous chemicals and harmful substances the Company strictly abides by relevant laws and

regulations conducts strict procurement control and sets up special storage areas (subject to special requirements Focusing on the "Every Individual Embraces Safety and Everyone is Equipped with Capability of Emergency

such as fire prevention explosion prevention and corrosion prevention) equipped with appropriate ventilation Handling" the Company has enthusiastically carried out the "Safe Production Month" and "Thousand-Mile Safe

facilities. We set up conspicuous warning signs to indicate the hazard and install necessary protective equipment Production Journey" activities. Each affiliated enterprise diligently has developed activity proposals and organized

(such as leakage emergency treatment devices). We provide employees with necessary personal protective diversified events including safe production knowledge competitions special inspections and emergency drills to

equipment and set up safety tips and operation instructions in the workplace. We also regularly check the status of use "meetings" to deploy defenses "training" to build defenses and "inspections" to consolidate defenses. These

relevant equipment to ensure it is in good working condition and reduce the risk of accidents. concerted efforts aim to foster a robust safety culture and cultivate a profound atmosphere of safe production."Safe Production Month" series of activities

47 Strengthen the foundation of governance to secure sustainable operation and development 482024 Environmental Social and Governance Report

Green and clean production

Attaching great importance to green development Sinoma International fully implements the requirements of

"understanding the new stage of development applying the new development philosophy and creating a new

development dynamic" and closely follows the national "Dual Carbon" targets. It persistently carries out clean

production and integrates into circular economy to build a greener and more low-carbon energy structure and

improve the ecological environment painting the brightest background for high-quality development.Adhere to the green Deepen environmental management

concept to ensure Strictly complying with the ecological and environmental laws and regulations of China Sinoma International builds environmental management systems and mechanisms. Through management and control over environmental risks

as well as inspection and supervision of environmental protection it strictly implements environmental protection

environmental policies in various business sectors.friendly Establish an organizational structureIn terms of governance the Board of Directors of Sinoma International is responsible for establishing and improving

the Company's Environmental Social and Governance (ESG) management system. The Strategy Investment and

development ESG Committee is responsible for assessing the Company's environmental management performance identifying risks and opportunities formulating and reviewing the Company's environmental management vision goals and

strategies and reporting major issues to the Board. In terms of management and execution the Company has

established an Ecological and Environmental Protection Leadership Group co-chaired by the Chairman and

President with members consisting of the Company's leadership team heads of directly managed units and

department heads at the headquarters. This group takes the overall leadership of the Company's ecological

civilization and organizes activities related to environmental protection energy conservation and emission

reduction.* Green and * Integration into Improve the organizational system

clean the circular Sinoma International strictly complies with the national environmental protection laws and regulations such as the

production economy Environmental Protection Law of the People's Republic of China formulates a series of environmental protection

systems such as the Responsibility System for Ecological Environmental Protection Management Management

System for Environmental Impact Assessment of Construction Projects the Management Measures for Clean

Production Energy Conservation and Emission Reduction and the Special Environmental Protection Management

System for Overseas Institutions (Projects) covering all aspects including production and operation engineering and

construction and contracting and subcontracting.The Company strictly implements the ISO14001 environmental standard and focuses on building a green and

sustainable environmental management system to effectively control environmental risks. By the end of 2024 47

affiliated enterprises passed the certification for GB/T24001-2016/ISO14001:2005 environmental management

system accounting for 75% and 4 affiliated enterprises passed the certification for GB/T2331-

2020/ISO50001:2018/RB/T119-2015 energy management system accounting for 6% and their environmental

management capabilities have continued to enhance.Note：The number of enterprises at all levels used to calculate the proportion of ISO14001 and ISO50001 certified

49 Adhere to the green concept to ensure environmental friendly development enterprises refers to the number of enterprises engaged in engineering construction equipment manufacturing 50

green energy and environmental protection.2024 Environmental Social and Governance Report

Refine the management mechanism Raise environmental awareness

The Company strictly implements environmental information disclosure In 2024 Sinoma International actively promotes green office video conferencing and paperless conference enables

requirements and each production unit develops an environmental self- electronic office operation through the OA system reduces use of paper prioritizes the purchase of environmental-

monitoring plan equipping relevant monitoring systems for real-time friendly paper and pens with replaceable pen refills and extends the service life of printing and lighting equipment

monitoring to ensure effective management and control of pollutant through repair and recycling. The Company organizes Environmental Protection Day activities and training and calls

emissions. Through the establishment of a robust environmental on its employees to start with daily behaviors such as saving water and electricity sorting waste and traveling in Environmental

management system strict monitoring measures and comprehensive environmentally friendly ways and contribute to the sustainable development of the Group.inspections

emergency plans the Company prevents and responds to potential

7775 The Company actively implements the green and environmental concept and organizes various activities such as tree environmental incidents. planting factory afforestation forum meetings etc. to help create an eco-friendly and healthy environment for

The Company strengthened the environmental protection responsibility at all employees the industry and the society. In 2024 the Company took advantage of the "National Energy Conservation

levels and organized the signing of 32440 copies of environmental Promotion Week" Low-Carbon Day "Beautiful China I Am an Actor" initiative the World Environment Day on June 5

protection responsibility statements by employees at all levels in 2024. While and other activities to publicize environmental protection knowledge policies and regulations through enterprise

completing the rectification tasks of the central environmental protection WeChat groups electronic screens publicity manuals environmental protection slogans and other channels

inspection on time the Company implemented a top-down environmental 74 organize and conduct environmental protection awareness campaigns education and training National Energy Invested

100% Conservation Promotion Week and Low-Carbon Day online quiz and watch the feature screen the documentary titled protection inspection mechanism internally achieving coverage of million yuan in Green Transformation and Energy Saving Efforts to improve employees' environmental protection awareness.

enterprises at all levels. In 2024 a total of 7775 environmental inspections environmental

were conducted at all levels (including external government inspections) protection

identifying 4046 hazards with a rectification rate of 100%. Environmental protection education and training system

The Company integrates environmental management mechanisms into business cooperationGarbage “Waste-free Compliant hazardous waste disposal VOCs waste gas treatmentLogistics and transportation classification factory" and emergency management training facilities and equipment

In accordance with the Management Measures for the Acceptance of Safety Materials the Company requires

suppliers to comply with relevant laws and regulations on environmental protection for the logistics services

provided and take necessary measures to avoid environmental pollution. Transport vehicles are strictly Case: Leading the new trend of green production and contributing to environmental protection

required to prevent scattering leakage and fire hazards ensure safety and prohibit oil leakage. together with stakeholders

EPC services Sinoma Mining Construction Co. Ltd. held the "Good Use of

Resources Day" event of China National Building Material

The Company includes subcontractors in unified management. On signing subcontracting contracts it defines Group in Laizhou inviting more than 30 stakeholders such

the safety and environmental responsibilities obligations and rights of both parties and specifies the safety as government officials media staff and employees to

and environmental access requirements for equipment facilities and construction machinery. It also provides experience the charm of green mining of stone mines which

subcontractors with environmental training to help them understand the Company's environmental was highly recognized by the government. At the Laizhou

management policies and requirements as well as practice environmental-friendly behaviors in their work. International Stone Fair the Company won the "Stone

Green Mines Construction Award" demonstrating its green

Investment and M&A production achievements. Through these activities the

Company effectively promotes external stakeholders to

The Company implements the Management System for the Safety and Environmental Protection Due understand green production measures enhances 缺英文

Diligence for Mergers and Acquisitions and formulates due diligence list guidelines in the four areas of environmental awareness establishes a model of green

business finance law and safety and environmental protection. It also engages third parties to conduct safety development in the industry and builds a beautiful future of

and environmental due diligence on the investment targets. harmonious coexistence between man and nature.

51 Adhere to the green concept to ensure environmental friendly development 522024 Environmental Social and Governance Report

Carry out green production * We strictly comply with the Law of the People's Republic of China on the Prevention and Control of Atmospheric Pollution and implement national standards such as the Integrated

Emission Standard of Air Pollutants the Ambient Air Quality Standard and the Emission

Sinoma International strictly abides by laws and regulations such as the Environmental Protection Law of the Standard of Air Pollutants for Cement Industry to strictly control atmospheric pollution

People's Republic of China as well as policies for energy conservation and emission reduction. In alignment with emissions.world-class environmental protection initiatives the Company promotes clean production and green construction * We give priority to materials that do not generate atmospheric pollutants and low-emission

identifies evaluates and controls the environmental factors involved in production engineering construction equipment to reduce pollution at the source.processes and management activities and assumes the main responsibilities for environmental protection energy Air pollution * We formulate scientific construction plans and adopt enclosed construction installation of

conservation and emission reduction. The efforts aim to prevent and reduce the adverse impact of production and management dust-proof nets and other measures to reduce dust and exhaust gas emissions.operations activities on the environment promote the intensified and economical utilization of resources control

emissions within the limits and continuously improve the production environment thereby building an environment- * We take effective measures to control the exhaust gas. For example we install exhaust gas

friendly enterprise. treatment equipment and innovatively apply integrated drilling machine water bag blasting

technology fog cannon machine for wet dust removal and intelligent spraying systems.In 2024 the Equipment Group's subsidiary Hefei Zhongya Building Materials Equipment Co. Ltd. has been * We strengthen the management of transport vehicles to ensure that they meet emission

successfully awarded the provincial "Green Factory" title while another subsidiary Zhejiang Boyu Electromechanical standards. Corresponding measures such as covering cleaning and watering in the transport

Co. Ltd. has achieved the national "Green Factory" designation. process are taken to reduce dust emission.Reduce pollution * Classified collection and proper disposition: Hazardous wastes are collected and stored by

their characteristics; scraps are recycled at designated locations; solid wastes are stacked at

During the construction of projects Sinoma International strictly complies with laws and regulations such as the Land different areas designated for gold wood soil and rubber storage; and primary soil and

Management Law of the People's Republic of China the Water and Soil Conservation Law of the People's Republic of sandstone are handled separately.China and the Regulations on the Administration of Environmental Protection for Construction Projects. At the same

time relevant environmental protection systems are formulated and implemented on the project site and the "six * Standardized storage and legal transportation: We set up appropriate waste storage

hundred-percent" management requirements are strictly implemented. facilities and locations according to regulations clearly mark the type and danger of waste in

the storage area and ensure that waste transportation complies with relevant laws and

regulations. We strictly implement the transfer plan approval and the duplicate form system

"Six hundred-percent" Waste for hazardous waste and select qualified transportation companies for waste transportation.management * Tailored approaches for compliant disposal: In light of the nature of waste and the legal

Enclosure around the Coverage of bare soil requirements we entrust qualified specialized companies to handle the waste on a regular

construction site 100% schedule and select appropriate disposal methods such as incineration landfilling and Wet operation at demolition site recycling. In 2024 100% self-produced hazardous wastes were disposed.Coverage of materials stacked Closed transportation of soil slag * Strict record-keeping and full-process supervision: We establish a system for recording and

Washing of in-and-out vehicles by vehicles reporting waste disposal which includes information on the quantity of waste generated and

treatment methods. We regularly supervise and inspect the compliance of waste disposal to

ensure adherence to regulations and standards.* We strictly implement national standards such as the Wastewater Quality Standards for

discharge to municipal sewers and the Integrated Wastewater Discharge Standard.* We strengthen the monitoring and management of wastewater discharge and commission a

third party to carry out regular water quality monitoring to ensure compliance with

Sewage wastewater discharging standards. A classified wastewater drainage method is in place for

discharge

management different types of wastewater to promote water reuse.* When constructing camps for projects overseas we adopt facilities such as sewage collection

tanks sedimentation tanks and septic tanks. We hire local qualified sewage treatment

companies to centrally extract and treat wastewater in a bid to ensure compliance with local

discharge standards.

53 Adhere to the green concept to ensure environmental friendly development 542024 Environmental Social and Governance Report

Sinoma International follows the principle of clean production in product manufacturing. Tangshan Sinoma Heavy Enhance energy management

Machinery Co. Ltd. a subsidiary of the Equipment Group passed the acceptance testing of the clean production

expert group of Hebei Province in June 2024. It is estimated to save RMB 583000 per year through the The Company is strengthening the construction of its energy management system to monitor and analyze energy

implementation of the cleaner production program. The effective measures taken to reduce pollution and carbon usage in real time optimize energy distribution and scheduling and reduce energy consumption. An energy

emissions are paying off. conservation and emission reduction management system is constantly improved defining the responsibilities of

each department and position and strengthening supervision and assessment to ensure the effective

Affiliates of Sinoma International Environmental Engineering Co. Ltd. including Huainan CNBM Tengfeng implementation of various energy conservation and emission reduction measures. Regular energy conservation and

Environmental Protection Technology Co. Ltd. Linyi Guojian Environmental Technology Co. Ltd. and Zhongtian emission reduction training and promotional activities are conducted to raise awareness and encourage active

Gongkang Environmental Protection Technology Co. Ltd. were listed as key pollutant discharging entities by local participation fostering a positive corporate culture of energy conservation and emission reduction. Three employees

ecological environment authorities. attended the energy manager training organized by China Energy Conservation Association and obtained

The main pollutants of the key pollutant discharging entities include particulate matters nitrogen oxides carbon corresponding certificates.monoxide sulfur dioxide volatile organic compounds hydrogen sulfide ammonia non-methane hydrocarbons The Company is increasing its investment in the R&D of key technologies for energy conservation and emission

hydrogen chloride etc. Air emission denitrification devices and VOCs recycling and treatment facilities are used for reduction such as high-efficiency raw material pre-treatment technology advanced production process energy-

the disposal. All the key pollutant discharging entities set up emission outlets in the designated area of the plant in saving technology and intelligent energy management technology to further improve energy utilization efficiency

accordance with the environmental impact assessment document and carry out emission monitoring on a regular and reduce carbon emissions from our own engineering and manufacturing processes.basis. A total of 5 exhaust gas outlets are placed distributed in the incineration workshops the emergency exhaust

gas treatment devices and the kiln inlets. All the key pollutant discharging entities have actively responded to the

regulation and developed the environmental self-monitoring schemes in accordance with the requirements of laws Strategies of energy-saving technological transformation projects

and regulations such as the Measures for Self-monitoring and Information Disclosure of Key Enterprises Subject to

Monitoring and the Technical Guidelines for Self-monitoring of Pollutant Discharging Entities. They also configured Improvement of solar dryer and heat pump Enhanced drying efficiency of

monitoring systems for real-time monitoring and prepared contingency plans for environmental emergencies which drying technology biomass feedstock

were reported to the relevant departments of the local government for record as required. The pollutant emission

values of the key pollutant discharging entities are subject to the disclosure of the local ecological environment Research and development of high-efficiency Optimized raw material processing

authorities the pollutant emission information disclosure websites are as follows: crushers and screening equipment flow

Development of novel environment-friendly Reduced carbon emissions from

additives additives

* Huainan CNBM Tengfeng Environmental Protection Technology Co. Ltd.: Plasma cutting upgraded to laser cutting Improved work efficiency

http://39.145.0.253:8081/gfwry/gfwryindexwework_cfm_code

Tangshan Heavy Machinery Co. Ltd. of CNBM Equipment Group saves 135 MWh of

* Huainan CNBM Tengfeng Environmental Protection Technology Co. Ltd. (self-monitoring):

electricity per year resulting in about RMB 101000 in electricity cost savings

https://wryjc.cnemc.cn/gkpt/mainZxjc/340000

* Linyi Guojian Environmental Technology Co. Ltd.:

Optimize the energy consumption structure

http://221.214.62.226:8090/EnvironmentDisclosure/publicReportDetail/lookReportDetailpageFrom=2&r

eportId=16389&reportType=1&batchYear=2024 Actively promoting clean energy equipment and accelerating the construction of renewable energy projects Sinoma

International is strategically deploying solar energy facilities based on the resource conditions of each region

* Zhongtian Gongkang Environmental Protection Technology Co. Ltd.: increasing the proportion of clean energy in energy consumption gradually reducing the dependence on traditional

energy sources and leading its own low-carbon green transformation.http://ywxt.sthjt.jiangsu.gov.cn:18181/spsarchive-

Leveraging its green energy and environmental service resources the Company is promoting energy-saving

webapp/web/viewRunner.htmlviewId=http://ywxt.sthjt.jiangsu.gov.cn:18181/spsarchive- renovations and technical reform of its own office buildings and manufacturing plants and actively advancing rooftop

webapp/web/sps/views/yfpl/views/infoPublic/index.js photovoltaic modifications. As of December 2024 the Company's own buildings achieved a total installed

photovoltaic capacity of 17.2 MW increased more than 5 times than last year.

55 Adhere to the green concept to ensure environmental friendly development 562024 Environmental Social and Governance Report

In 2024 Target:

The Company plans to achieve a 100%

Sinoma Overseas Development Co. Ltd. invested in the construction of a 740kW rooftop photovoltaic biodiversity risk assessment rate for newly invested projects by 2025.project on the Handan Sinoma Building providing clean energy for office operations. The project

generated 472 MWh of photovoltaic power throughout the year saving RMB 280000 in electricity

costs. The Company has issued the Biodiversity Statement reviewed and approved by the Board's Strategy Investment and

ESG Committee pledging strict adherence to relevant laws and regulations in its operating locations. The statement

The Company generated 144 MWh of electricity by the rooftop photovoltaics in the Company's commits to ensuring that its own project development and operation sites are situated away from ecologically

5400 sensitive areas and protected ecological zones and that ecological and environmental protection for new modified headquarters building and sold kWh of electricity back to the grid. and expanded projects is consistently organized and implemented in accordance with the "Three Red Lines and One

List" requirements.Since its operation in July 2024 the High-End Equipment Intelligent Manufacturing Park photovoltaic

project has progressively replaced traditional industrial electricity consumption with solar power

generation yielding an annual output of 2400 MWh and saving RMB 610000 in electricity costs. Comprehensive biodiversity protection measures

Avoidance measures

Sinoma International (Nanjing) Engineering Co. Ltd. distributed photovoltaic power plant project

During the initial project site selection we assess animal migration routes and consider the habitats of terrestrial riverine and generated 472 MWh of electricity in the whole year and sold 86.8 MWh of electricity on the grid marine life to ensure that the plant sites are far away from biological habitats. For example during the implementation of the

with self-consumption savings in electricity tariffs and income from electricity sales on the grid totaling Chizhou CNBM Corridor Project by Sinoma International (Nanjing) and Sinoma Mining Construction Co. Ltd. the project route was

RMB 315000. designed to pass under the river avoiding direct disturbance to the river system and thus effectively protecting the integrity and

stability of the river ecosystem. Strict isolation measures have also been taken for sensitive water areas such as pearl ponds and fish

ponds around the project. Temporary enclosures and protective facilities have been set up to effectively isolate the construction

Equipment Group has installed photovoltaic panels with a capacity of 0.242 MWp in office building area from the surrounding water areas preventing construction activities from damaging aquatic organisms and their habitats.and purchasing a total of 390 MWh of green electricity in 2024.Mitigation measures

Sinoma Overseas Development Co. Ltd. continuously promotes the realization of green power construction in When project lines have to traverse forest areas we prioritize tunnel construction to minimize the damage to forest vegetation. In

cement engineering EPC projects builds photovoltaic power generation systems for green power supply in addition the Company continues to optimize the piercing blasting digging and transport technology research and application of dust reduction and dust suppression technology the implementation of slopes roads soil disposal sites living areas greening

construction and adds sustainable green power benefits for the owner after the cement plant is put into operation projects to achieve the mine trees birdsong and flowers and man and nature in harmony.and actively promotes the transformation of energy structure of the cement industry chain.Restoration measures

The Company is undertaking the adoption of new energy sources to reduce carbon emissions and electricity

consumption. We actively explore the pilot project of the "net zero-electricity mine" and the layout of new business We carry out water and soil conservation and vegetation reconstruction projects during the mining process increasing the green

patterns for green development. Sinoma Mining Construction Co. Ltd. continues to promote the purely electric area of the mine through tree planting grass seeding and slope spraying. We actively explore new paths in the process of mine

transformation of mining equipment and has successfully delivered the first 50-ton oil-fired mining truck purely ecological restoration and management to enhance the carbon sink capacity of local ecosystems. In 2024 based on the projects of

ecological rehabilitation of mines Sinoma Mining Construction Co. Ltd. has used carbon sequestration technology to reconstruct

electric "oil-to-electric remanufacturing" project which achieves the purely electric drive of the whole truck with an the mine's ecosystem.annual working time of more than 5000 hours a 10% increase in power a reduction of about 400 tons of carbon and

a reduction of more than 30% in the maintenance cost of a single truck. Sinoma Mining Construction Co. Ltd. Recovery measures

increased the number of new energy mining vehicle 266 resulting in an annual reduction of 14400 tons of carbon We systematically carry out ecological restoration initiatives. In 2024 Sinoma Mining Construction Co. Ltd. implemented a total of 54

dioxide. Tianjin Mining Shannan Branch has essentially eliminated the need for externally sourced electricity in the projects encompassing mine rehabilitation ecological restoration and geological hazard management. We planted an aggregate of

crushing process and belt conveying system through the deployment of photovoltaic power generation technology. 314512 trees of various species dispersed 37589 kg of grass seeds and revitalized an expanse of 3.5535 million square meters.Ecosystem protection Transformation measures

We carry out ESG awareness cultivation and requirements communication including topics on biodiversity protection at all levels.Actively promoting biodiversity risk assessments within its business activities Sinoma International identifies This effort aims to strengthen the concept of biodiversity protection among all affiliated enterprises and employees mandating that

biodiversity risks across multiple dimensions including its business operation locations and adjacent areas projects continuously monitor the impact of their activities on the surrounding ecological environment to ensure the safeguarding of

upstream supply chains and downstream clients. ecosystems and biodiversity.

57 Adhere to the green concept to ensure environmental friendly development 582024 Environmental Social and Governance Report

Integration into the circular economy Comprehensive utilization of mine waste

Striving to integrate into the circular economy Sinoma International actively explores ways to recycle resources and * Optimization of ore allocation in the ore mining process to enhance the comprehensive utilization rate of waste

deepens its green development concept in all aspects. rock through the scientific allocation of high-grade and low-grade ores.* The waste ores produced during the mining process are treated and converted into building materials road

paving materials or other valuable resources.Recycling and conservation of water * Recycle and reuse waste tires applying reflective paint for flexible vehicle barrier protection and re-purpose them

into on-site landscaping or safety signage.Sinoma International systematically tracks and monitors the availability of water sources at the operating locations * The silt and fine sand produced by the sedimentation tank will be separated from the solid and liquid and used

keeps abreast of real-time changes in the regulation of water harvesting sites and changes in water charges assesses as the greening substrate material of the mine to achieve resource utilization.the risk of water shortage and policy fluctuations and adjusts the Company's water strategy in due course. The

Company has formulated a number of water conservation measures to ensure the rational and effective use of water

resources. The Company clarifies water-saving responsibilities and strengthens supervision and inspection. In the Recycling of construction waste

process of engineering design and construction the Company installs water-saving devices such as low-flow faucets

flushing systems and showerheads and builds rainwater collection tanks to recycle rainwater and reduce the

consumption of construction water. In addition to avoid water waste the Company installs water meters and * Organize contractors for major works projects to prepare a special plan for reducing construction waste on the

monitoring facilities to continuously monitor water consumption and promptly detect and repair water leakage. construction site. This plan should clarify the goals and division of responsibilities for reducing construction

waste and propose specific measures for source reduction classification management on-site disposal and

In terms of water recycling the Company actively promotes the construction of reuse system for gray water. A emission control. The combined use of temporary facilities such as roads and enclosures with permanent facilities

hierarchical treatment system for rainwater spray water and car wash wastewater were established through the should be promoted.construction of rainwater collection tanks and multi-stage sedimentation tanks. After precipitation treatment in the

sand sedimentation tank and deep treatment in the sedimentation tank it is used for watering the roads in the * Encourage all engineering project contractors to recycle and reuse building materials and their own employees

mining area supplying water for the spraying dust suppression system and maintenance of the vegetation. and contractors should be educated and trained. Implement digital processing and information management to

achieve precise blanking and fine management thereby reducing the loss rate of building materials.* Improve the reuse rate of temporary facilities and turnover materials on the construction site promoting the

Chuzhou China United Cement Corporation (CUCC) mine repeated and efficient use of building materials and equipment to extend the life cycle of materials and products

constructed by Yanzhou Sinoma collects surface water that * Prioritize the use of high-strength high-performance highly durable and recyclable materials during the building

infiltrates into the mining pits which after natural sedimentation design phase to ensure ease of disassembly and reuse. For example steel formwork that has undergone

deformation or distortion during construction can be repaired and reshaped for repeated use and waste wood

is utilized for mine greening and dust suppression through water planks and squares can be recycled after lengthening and repair.spraying. This initiative has resulted in an annual reduction of

190000 tons in the consumption of fresh water.

In 2024 the research results of Chengdu Design and Research Institute of Building Materials Industry Co.Ltd. on the coupling of construction waste with building materials utilization were to the Hebei Qingfeng

Green Energy 2 million tons/year comprehensive utilization of construction waste project achieving

Resource recycling 100% resource utilization of zero emissions throughout

By standardizing waste disposal intensifying efforts in resource recycling and promoting the reuse of waste the construction waste the entire process

Company provides the industry with sustainable raw material sources to enhance the circular economy of the

industry.

59 Adhere to the green concept to ensure environmental friendly development 602024 Environmental Social and Governance Report

Comprehensive utilization of waste rock to create a zero-waste mine Simplification and reduction of packaging materials

Sinoma Mining Construction Co. Ltd. extracts limestone ore in Gongga County Shannan City. The waste rock with

a calcium oxide content ranging from 29% to 38% is blended with high-grade ore to ensure the content is Sinoma International promotes simpler and less use of packaging materials to reduce resource consumption.elevated to over 48% meeting the requirements of cement production lines. This achieves zero discharge of mine

waste materials earning the title of "Zero-Waste Mine" awarded by Shannan City.* During the shipment of equipment products the Company adopts a packaging strategy aiming at

lightweight minimalist and circular packaging to optimize space utilization and to reduce energy

consumption during transportation.Forest conservation * By using hard film rust preventive oil and local surface protection we have transitioned some products

that originally required full-enclosure wooden crate packaging to framework or pallet packaging thereby

Wood is necessary for the Company's engineering construction projects. During the processes of mine construction reducing the use of wooden crates.and overburden removal in mining surface vegetation needs to be cleared. Land reclamation involves the purchase * We re-purpose the wooden crates used for packaging motors reducers and bearings to package

of saplings. Additionally wood is necessary for the support of adits and tunnels as well as in the construction of products that require enhanced waterproofing and rust prevention.scaffolding. Therefore we prioritize the protection of forest resources and sustainable development throughout our

business activities. We take numerous measures to avoid damage to forest resources reduce land exposure and * Recyclable metal materials are used for packaging in international engineering projects and are

prevent soil erosion. subsequently recycled as auxiliary materials for engineering construction.* Suppliers are supported in recycling their delivery packaging which improves the efficiency of package

* Compliance with laws and regulations utilization and reduces waste generation thereby promoting the green development throughout the

We comply with all applicable laws and regulations related to forest resources protection to ensure industrial chain.that our business operations meet legal requirements.* Sustainable procurement policies

We develop sustainable procurement policies and require suppliers to provide wood and forest

products from legal sources and obtain relevant forest certifications. Suppliers are encouraged to

utilize forest resources managed in a sustainable manner.* Supplier compliance review

We conduct online or offline supplier review procedures to ensure they adhere to environmental

and social responsibility requirements and implement relevant measures to prevent the

destruction of forest resources.* Wood materials replacement

We consider using steel or aluminum alloy formworks to replace wooden ones or select

high-quality wooden formworks to increase utilization rate thus avoiding excessive use of wood.* Forest resource restoration

We carry out environmental protection actions such as factory greening and reforestation in mines

to protect forest resources and improve the ecological environment.

61 Adhere to the green concept to ensure environmental friendly development 622024 Environmental Social and Governance Report

Improve service quality

Sinoma International is committed to building a world-class enterprise boasting premium products outstanding

brands leading innovation and modern governance. We prioritize quality assurance to fortify our brand ensure

customer-centric brand development and empower brand building through technological innovation. Leveraging

our role of leadership and influence in the industry we strive to solidify and elevate the global status of the SINOMA

brand.Create excellent products

Creating high-quality projects

Sinoma International carries forward the spirit of "pursuing excellence and creating classics" focuses on high-quality

Guide progress of the projects in the process of "building a global brand" and effectively leads the development of the industry. In China the Company has undertaken the construction of a majority of cement capacity. Outside China it has constructed

industry to enhance nearly 351 cement production lines in 91 countries and regions and completed a range of high-quality projects winning widespread praise among clients. In 2024 the entire staff sincerely kept their promises and fulfilled their obligations promoted high-quality construction of overseas projects guaranteeing the stable progress as scheduled

overall value for win- and high quality of the projects.win results

12 projects were 44 19 FAC

successfully launched PAC certificates certificates were granted

* Improve service * Sustainable

quality supply chain

63 Guide progress of the industry to enhance overall value for win-win results 642024 Environmental Social and Governance Report

Case: Lemi Project successfully ignites "Star of Africa" shines in Ethiopia

In 2024 the Company won a series of engineering and Sinoma (Suzhou) successfully ignited the 10000t/d

clinker cement production line for National Cement

technical service awards Company (NCC) in Ethiopia. This project utilizes globally

leading intelligent control systems offering advantages

* The world's first set of cement oxyfuel-coupled carbon capture technology won the award

such as high efficiency environmental protection and

World Cement Association (WCA) Climate Action Technology and energy savings. As the first 10000-ton cement clinker

Engineering Award 2024 production line in Africa to adopt second-generation

6 new dry-process cement technology it was the cement * projects from the Equipment Group were awarded China Building Materials Engineering project with the highest degree of intelligence the best

Construction Association's Excellence Award for General Contracting Projects performance indicators and the largest output scale in 10000t/d clinker cement production line at Lemi

6 projects from the Equipment Group and 3 projects from Sinoma International Intelligent National Cement CompanyEthiopia and is known as the "Star of Africa".

Technology Co. Ltd were awarded the Excellence Award for Engineering Design

5 projects from Sinoma International Intelligent Technology Co. Ltd were awarded the

Excellence Award for Engineering Consultation Case: Completion of the ultrafine grinding project to help realize a "waste-free city"

* Nigeria Manufacturing Company of CBMI Construction Co. Ltd. (FABCOM) was invited to participate

in the Nigerian Architects' Conference and honored with Silica-calcium-based project is the first ultra-fine

grinding project of Engineering Co. Ltd. Chengdu Design

the Industry Outstanding Contribution Award and Research Institute of Building Materials Industry Co.Ltd. After the completion of the project it can achieve

* 2 projects from undertaken by the Equipment Group have respectively won the first and 100% of industrial solid waste in Wuan City

third prizes in the Industrial Engineering Design ComprehensiveCategory “reduction resource harmlessness of the second batch of Anhui Excellent Survey and Design Quality DemonstrationEngineering for the 2022-2023 period industrialization” comprehensive disposal

target effectively reduce industrial waste residue

* JSW project in the United Arab Emirates won the Quality Engineering Award of China oppression of land resources improve the ecological

Building Materials Engineering Construction Association environment and water and soil quality and help to Silica-calcium-based project 3D model results map

The National Classical Project of General Engineering Contracting in achieve the “Waste-free city”.Survey and Design Industry issued by China Survey and Design Association

* 3 projects of the Equipment Group were awarded first-class achievements 74Case: Oil sludge to light aggregates environmental protection demonstration line filling the industry gap

in the 2024 Construction Project Management Results by the China

Association of Construction Enterprise Management The Equipment Group and Kangbo Environmental Technology Co. Ltd. have jointly developed the Shaanxi

Kangbo Environmental Project focusing on the research development and industrial application of new

technologies and products such as producing lightweight and high-strength aggregates from oil sludge. Upon

completion the project will be capable of processing 100000 tons of oil sludge and pyrolysis residue and

130000 tons of fly ash annually providing an innovative solution for the large-scale and harmless treatment of

petrochemical industry waste.

65 Guide progress of the industry to enhance overall value for win-win results 662024 Environmental Social and Governance Report

Strengthen quality control Provide dedicated and credible services

The Company places a high premium on quality control. To improve the overall production quality the Company strives to achieve a Sinoma International is committed to providing customers with high-quality services. To meet clients' lifecycle production needs we

regulated and well-organized business process by strengthening institutional building process control and basic management. In integrate capabilities in design and development equipment manufacturing construction operation and after-sales service

2024 the cement mill and multiple-specifications rotary kilns independently developed by Sinoma-Tangshan Heavy Machinery Co. capabilities establish communication mechanisms with strategic partners including Holcim CRH Heidelberg Materials

Ltd. a subsidiary of CNBM Equipment Group successfully obtained the prestigious the CE certification in Europe. Additionally InterCement Goodfound Cement EPCC and YAMAMA. We strive to build a premium brand image known for integrity capability and

CNBM Equipment Group's Quality Management Upgrade of Engineering Projects Based on Intelligent Construction was selected as superior service.one of the best practices in corporate quality management.The Company conducts monthly quarterly and annual tracking of contract performance quality and service

progress. Regular satisfaction surveys are carried out through questionnaires phone calls and communication.Focus on The Company regularly return visits to important customers to understand customer satisfaction and related needs

Based on the serial ISO standards the Company has established and implemented internal systems customer regarding products services prices and delivery time. In addition a coordinated after-sales service system is

such as the Management Manual for Quality Environment Occupational Health and Safety Systems needs established to continuously improve customer satisfaction. In 2024 77% of the Company's customers

Compilation for Quality Environment Occupational Health and Safety Management System

Institutional Procedures and Identification and Evaluation of Laws and Regulations and Control Procedures for participated in the satisfaction survey among them 85% of the Company's important or long-term customers

assurance Technical Regulations / Standards. It continues to optimize the quality management system. In participated in the satisfaction survey reporting a satisfaction rate of 97%.

2024 another 4 enterprises affiliated to the Company passed the ISO9001 quality system

70 Respond to

certification bringing the total number to 50. customer The Company has set up a smooth and efficient complaint handling mechanism and diversified communication

complaints channels customizing solutions to meet different customer needs. We have established an efficient customer

complaint handling system that integrates the functions of classification investigation and verification planning

The Company integrates the concept of risk management into every stage of product and follow-up and feedback.manufacturing and service provision.* At the industry level we closely follow the latest environmental protection standards of the the participation rate in satisfaction with customer

industry and integrate them into product development and service project approval to cope Target: surveys for the Company's important or satisfaction remaining

with the risks or opportunities brought about by industry technological progress and

environmental protection requirements; By 2025 long-term customers will reach 90% above 97%

* At the product level we adopt scientific performance indicator measurement and supervision

methods such as data collection and analysis expert consulting and report compilation and

Risk evaluation are employed to identify influences and risks in product production and utilization The Company places great importance on the protection of internal and customer privacy. To prevent the risk of

management covering such aspects as energy consumption resource utilization waste discharge carbon private data leakage we have taken measures such as system access control user logs employee confidentiality

emissions labor rights and interests health and safety and social responsibility. We actively Protect clauses/agreements and privacy policy education. In addition we have clearly outlined confidentiality obligations

formulate corresponding improvement measures to deliver high-quality and low-risk products customer privacy in our contracts with suppliers defining responsibilities for confidentiality and for breach.and services;

* At the regional level during the localization of operations the Company integrates specific At the governance level the Board of Directors plays an overall supervisory role in the Company's information

security. The chairman was once in charge of information security work. He led the formulation of the Company's

country risks into the consideration of product and service supply. It pays particular attention digital development plan. Board members have extensive experience in information security management. At the

to the risks brought about by local government policies on environmental protection and executive level the Company has set up a leading group on network security with the Chairman and President as

energy conservation personal safety of expatriate employees religious beliefs and national members and formulated the Rules of Implementation for Network Security at the Sinoma International

cultures. Headquarters clarifying the reporting and management of information system security incidents. Measures such as

awareness development systems and measures improvement and risk assessment are adopted to consolidate the

information security foundation. Information security activities and information trainings are held on the occasion

* The Company continues to the “Five Star Project” program and actively created “Five Guarantee of the National Network Security Week to ensure the continued effectiveness of network and information securityStar Projects” with high-level performance ability fast-growth economic benefits efficient information management.management level high-standard safety engineering and comprehensive support by Party security The Company's portal system and the Internet procurement platform have been certified for National Cybersecurity

building. It has established a project management expert database and built the evaluation Classified Protection (Level 3). Its official website has been certified for National Cybersecurity Classified Protection

Quality index system consisting of 48 evaluation indicators in five categories. The Company organized (Level 2). The third-party vulnerability scanning and hacker attacks simulation are carried out every 1-2 years and

evaluation the first “Five Star Project” interim on-site inspection and the first exchange meeting 4 upon the launch of new systems. We formulate an Information System Security Emergency Plan and perform regular maintenance and updates. We strengthen protection to avoid major information security incidents. The

projects of the affiliated enterprise have been awarded the "Five Star Project" by Sinoma mechanism of linkage with suppliers is strengthened to find the management loopholes and process gaps after

International. detection of problems as soon as possible. Those who violate the information security system are held accountable

* The "Improvement of Limestone Sample Grade Qualification Rate in Cement Mines" declared by to prevent disturbance of business operations by information security incidents.the Equipment Group won the 2024 Tianjin Quality Research Outstanding Achievement Award.

67 Guide progress of the industry to enhance overall value for win-win results 682024 Environmental Social and Governance Report

Lead the industry innovation

Always taking technological innovation as the main driving force Sinoma International actively develops the In 2024 the Company and its subsidiaries won a series

innovative management system strengthens the construction of innovation platforms and vigorously promotes the of awards for innovation and R&D

improvement of independent innovation capabilities. In 2024 Sinoma International successfully organized the 3rd

Sinoma Cement Green & Intelligence Summit which was 34% larger than the previous one and showcased and * The project of Equipment Group "Key Technology Equipment and Application of Low-Carbon

promoted Sinoma International's latest technological achievements at internationally renowned conferences such as Cementitious Materials Prepared from Bulk Inorganic Solid Wastes" won the first prize of

the WCA 2024 Annual Conference. Hubei Science and Technology Progress Award

"The R&D and engineering application of key technology and equipment for intelligent control of

Improve the innovation management mechanism cement preparation won the third prize of Anhui Provincial Science and Technology

Guided by its technological development plan Sinoma International actively responsed to the national strategy of Award

innovation-driven development accelerated the implementation of the "open competition to select the best" * Sinoma International won 3 second prizes and 1 third prize of the Science and

incentive mechanism. and pushed forward the Company's 14th Five-Year Plan series of scientific research projects Technology Award of the China Building Materials Federation

on schedule. In 2024 the Company comprehensively arranged for the second and the third batch of key research

projects the second batch of technological innovation projects in the field of equipment manufacturing and the first * 18 affiliated enterprises won 8 science and technology awards in China Building

and the second batch of cutting-edge science fund projects during the 14th Five-Year Plan period actively undertook Materials Machinery Industry in 2024 among which 2 first prizes

major national innovation tasks and held a signing ceremony for the major scientific and technological special 33 technological innovation awards among which 2 first prizes

project - open competition to select the best during the 14th Five-Year Plan. 5 key scientific research projects in the

first batch and 3 technical innovation projects in the first batch of equipment manufacturing field during the 14th * The project of "Research Development and Application Demonstration of Integrated DeNOx

Five-Year Plan have successfully passed the acceptance inspection. Technology in Cement Industry" of Tianjin CNBM Engineering Research Center Co. Ltd. a

subsidiary of CNBM Equipment Group won the first prize of the Golden Bridge Award of

The Company Actively implements incentives for scientific and technological achievements implement a policy of

treating research and development expenses as profits and provide special rewards for the Company's science and China Technology Market Association

technology awards and innovation awards the award-winning achievements of the patent award as well as The "Complete Set of Technology and Equipment for Cement Kiln Integrated DeNOx" of Tianjin

authorized invention patents and standards promulgation. Additionally special performance rewards will be given to CNBM Engineering Research Center Co. Ltd. a subsidiary of CNBM Equipment Group won the

the implementation teams of key projects. second prize of the 2024 Tianjin Intellectual Property Innovation

The Company strictly abides by the Patent Law of the People's Republic of China the Copyright Law of the People's Entrepreneurship Invention and Design Competition

Republic of China and other relevant laws and regulations. It has formulated the Intellectual Property Management * Sinoma International (Nanjing) "Yushan South Intelligent Factory" won the second prize of the

and Protection Management Measures and the Science and Technology Achievement Award Management Measures second session of the innovation competition in building materials industry

actively protecting intellectual property rights and continuously cultivating new development momentum. In 2024

the Company conducted the first patent award evaluation work selected one gold award patent four silver * Nanjing Mine of Sinoma Mining Construction Co. Ltd. won the first prize of the Science and

award patents and 48 excellent award patents to guide and nurture high value patents. In addition the Company Technology Progress Award of China Blasting Industry Association in 2024

initiated Intellectual Property Day activities to enhance employees' awareness of protecting intellectual property

actively playing the important role of intellectual property in serving innovation and supporting high-quality * The project of Sinoma International (Nanjing) "Digital Design and Construction Technology and

development. Application of Green and Low Carbon Cement Plant" won the second prize in the technical

progress category of the Building Materials Science and Technology Award

Promote breakthroughs in innovative research and development * The project of Research and Application of High-quality Green Development of Xiaoshangyu

Limestone Mine of Nanjing Mining Laiwu Branch of Sinoma Mining Construction Co. Ltd. won the

Sinoma International has strengthened the strategic orientation of innovative development addressed the scientific second prize of Shandong Circular Economy Science and Technology Award in

and technological problems of innovative development focused on breaking through key core technologies and 2024

accelerated the transformation of scientific research achievements such as boiling calcination low-carbon grinding

and hydrogen energy substitution. The world's first demonstration application of the cement full-oxygen combustion

coupling carbon capture technology was officially released. The Company's high-quality development was driven by

scientific and technological innovation achievements.

69 Guide progress of the industry to enhance overall value for win-win results 702024 Environmental Social and Governance Report

In 2024 89 standard projects were in execution including 2 in international standards and 38 in national standards.The Company published 17 national standards and 2 industry standards and successfully signed the third batch of

major scientific and technological projects under the “open competition to select the best” program the second

batch of technological innovation projects in the field of equipment manufacturing and the second batch of cutting- In 2024 the Company and affiliated enterprises

edge science fund projects.achieved many honors in the field of digitalization and intelligence

In 2024 * Sinoma International Intelligent Technology Co. Ltd.'s "Data Elements Enabling Global Factory Operation and Maintenance Service Upgrade" has been selected as one of the typical practice cases of data elements

application scenarios in the industrial field by the Ministry of Industry and Information Technology (MIIT)

192 authorized patents for 13 international in 2024

invention have been recorded patents * Sinoma International Intelligent Technology Co. Ltd has won 4 national 11 provincial and 12 industry-level

honors for digital intelligence.* Equipment Group's "AI empowered unmanned application case of whole-process mining and transportation in

Tiankuangshan" was selected as a typical application case of artificial intelligence by the Ministry of Industry

accumulated 40 high-tech 27 innovation platforms above and Information Technology;

enterprises provincial and ministerial levels The case of "Building Material Equipment Manufacturing Digital Intelligence Application Based on Internet of

Things" was selected as a typical case of intelligent manufacturing by the Ministry of Industry and Information

Technology.The industrial Internet empowerment and public service platform of Equipment Group were selected as the

"Building Materials Industry Industrial Internet Demonstration Project"

The "5G+ digital twin+ unmanned driving" intelligent mine construction program of Yuzhou Chenglei were

selected as "Intelligent Mine Pilot Demonstration Project"

Digital intelligence engine "Building materials industry engineering construction digital collaborative technology and application" project

through the scientific and technological achievements appraisal

The "intelligent design solution for industrial engineering in building materials industry" and "R&D and

Sinoma International has accelerated the construction of a "digital intelligence" driving engine in accordance with application of engineering management collaborative industrial Internet platform" were selected as new"14th Five-Year Plan" development strategy established the “14th Five-Year Plan Digitalization Strategy of Sinoma products of new technologies in in digital design and intelligent construction categories respectivelyInternational”. The Strategy has clarified the digital vision goal of building a fully digital Sinoma International and * CBMI Construction Co. Ltd. Equipment Group and CNBM (Hefei) Mechanical and Electrical Engineering

becoming a world-class provider of intelligent solutions for the materials industry. Technology Co. Ltd. were successfully selected as "2024 Building Materials Industry Demonstration

Enterprises for Integration of Informatization and Industrialization"

* CNBM Smart Industry Technology Co. Ltd. was awarded as the 2023-2024 Building Materials Industry

Management Innovation Enterprise and its Intelligent Transformation to Improve Production Operation and

Maintenance Management of Overseas Cement Plants won the first prize of the 2023-2024 Building Materials

Enterprise Management Innovation Achievement (Case)

* CBMI Construction Co. Ltd. Supply Chain Platform Wins "2024 Industrial Internet Demonstration Project in

Building Materials Industry" and the achievement case of CBMI Construction Co. Ltd. "Digital Empowerment

Intelligent Building for the Future Digital Intelligence Construction Platform Helps Enterprises Digital

Transformation" won the first prize of the "2024 China Enterprise Reform and Development Excellent

Achievements"

* Sinoma International Nanjing Yushan South Intelligent Factory won the second prize in the second Innovative

Design Competition of Building Materials Industry

"Technology and Application of Digital Design and Construction of Green Low-Carbon Cement Plant" won the

second prize of the Building Materials Science and Technology Award of technical progress

71 Guide progress of the industry to enhance overall value for win-win results 722024 Environmental Social and Governance Report

In terms of improving business management efficiency

Sinoma International Corporation focuses on its core businesses such as engineering services high-end equipment Sustainable supply chain

digital intelligence and local operations. Centering on business links of the whole industry chain that includes

"research production supply sales and service" it unifies data standards to achieve integrated empowerment from

design and construction through to business management to comprehensively support the Company's multi-format Sinoma International has established a transparent dynamic and traceable supply chain system. With the concept of

and international layout and gradually transform itself into a digital solution service provider for the materials responsible procurement in mind it has taken measures to manage suppliers and control risks. Attention is paid to

industry. green procurement and sustainable performance of suppliers and long-term stable and sustainable partnership with them to achieve sustainable and win-win cooperation.In 2024 the Company officially released the design digitalisation standard and realized the online operation of the

design empowerment platform started the construction of the equipment ERP system made a new breakthrough in

the "integration of industry and finance" with Sinoma International (Nanjing) as the pilot. The mine data operation Improve supply chain management

management system went online and realized data self-collection in 28 projects. The global cement production

protection operation service platform was put into construction and the "double carbon" management platform was

completed and put online. Sinoma International and its subsidiaries comply with the internal management systems such as Supplier

Management Measures and the Procurement Management System and implement a strict supplier grading

Case: Digitally empowered supply chain linking stable new future management system. Moreover the Company manages suppliers by classifying them into qualified suppliers

potential suppliers and unqualified ones. In 2024 the on-line rate of the Company's procurement platform reached

CBMI Construction Co. Ltd.'s digital supply chain platform with the help of Internet of Things technology realizes the whole 100%.process monitoring and real-time data analysis of raw material procurement transportation warehousing and other links so as

to grasp the supply chain dynamics optimize resource allocation and reduce costs in time. It provides strong support for

efficient collaboration and sustainable development of the industrial chain and was selected as the "2024 Industrial Internet The Company has a strict assessment and selection process for suppliers. For instance

Demonstration Project of Building Materials Industry". suppliers are required to submit the Supplier Information Registration Form. Additionally it Supplier has in place an overall investigation assessment and rating process for suppliers through its

access online procurement platform and third-party professional platforms. Suppliers with a lower

In terms of smart industrial transformation rating are subject to a detailed investigation and review to reduce cooperation risks.Based on the industrial Internet platform and digital technology the Company has worked from the five aspects of

smart equipment automated control smart production smart management and smart ecology creating a top smart The Company actively provides support for suppliers and helps them understand the

manufacturing brand in the industry. The Company and Tianshan Materials jointly established an intelligent working technical requirements of related projects and improve their expertise by organizing technical

group to jointly promote the deep implementation of the intelligent factory standard version 2.0. The first phase of Supplier exchanges and meetings. At the same time the Company communicates to suppliers about its

the "Tianshan Smart Brain" project was completed and launched online and the "Research and Development and management future plans and enters into strategic and framework agreements with high quality suppliers

Demonstration Application of Digital Mine and Cement Factory Intelligent Laboratory System" was implemented in that can supply on a long-term basis to facilitate their better development.Luoyang Huanghun Tongli Cement Co. Ltd.An evaluation review is conducted annually for all registered suppliers to ensure consistency

Case: Developing innovate intelligent solutions and creating efficient factory with the Company's Supplier Code of Conduct. Information review and on-site review are

Supplier conducted for suppliers that perform during the year covering price product quality

Sinoma International Intelligent Technology Co. Ltd.'s Bijie Southwest environmental performance production safety and human rights protection. Suppliers are

Intelligent Factory has built a 6000t/d clinker cement production line evaluation

with intelligent system and it is equipped with 12MW pure low- urged to formulate improvement plans to avoid potential conflicts with ESG requirements in

temperature waste heat power generation project compound respect of unqualified matters.desulphurisation project denitrification project and municipal sludge

disposal project at the same time. Typical scenarios of the project Supplier ESG assessment targets of Sinoma International Intelligent Technology Co. Ltd.include fully automated laboratory system one-key start-stop and

expert optimization control system intelligent inspection system Short-term target Long-term target

production monitoring and management integration IMOM platform

etc. which effectively improves the production efficiency reduces the To increase the proportion of suppliers that will be

labor intensity enhances the product quality and stability and Bijie Southwest Intelligent Factory subject to ESG risk assessment to 30% of the To achieve 100% coverage of

reduces the comprehensive power consumption and standard coal

consumption by about 1% each. total number of existing suppliers.supplier ESG risk assessment.

73 Guide progress of the industry to enhance overall value for win-win results 742024 Environmental Social and Governance Report

The Company maintains close communication with suppliers. It conducts communication and Supplier management training for procurement staff

training to suppliers in accordance with the Company's annual planning development

Supplier direction and project requirements. Also it organizes technical exchanges on ESG topics such In 2024 the Company conducted supplier ESG performance competency assessment training for employees in the procurement

support as “Dual Carbon” goals health and safety management and labor risk management to department to enhance the procurement department team's ability to improve supplier ESG performance. Through the systematic

share best practices and benchmarking. course the procurement team gained a deep understanding of ESG principles and their importance in corporate procurement

decision-making and mastered how to effectively incorporate ESG requirements into supplier evaluation contract management

and daily communication laying a solid foundation for the Company and its suppliers to move towards a greener and more

A supplier selection and phase-out mechanism has been established. We pay close attention responsible future together.to situations that violate the Company's basic ESG requirements such as quality issues

Supplier disputes over payment employment risks and noncompliance with energy conservation and

phase-out environmental protection standards and put forward rectification requirements for suppliers The Company strengthens the regulation of supplier integrity and focuses on In 2024preventive measures by requiring all suppliers to submit a commitment to integrity

identified. For suppliers that refuse to rectify within the specified time or perform poorly we when accessing Sinoma International's online procurement platform. It requires the

put them on the supplier blacklisting. signing of Procurement and Subcontracting Integrity Agreements at the time of 100% coverage of suppliers for

signing contracts with suppliers and provides supervision and reporting channels issuing integrity notification letters or

to restrict procurement behaviors. signing integrity agreements

Reduce supply chain risks

Supply chain integrity supervising and auditing

Sinoma International actively identifies environmental and social risks in the supply chain and pays attention to the

ESG performance of suppliers throughout the duration of cooperation. It integrates ESG requirements to the supplier * The Company conducts regular special integrity inspections on the procurement and outsourcing business of its affiliated enterprises through

access mechanism to reduce supply chain risks. In 2024telephone interviews and other forms;

* Each affiliated enterprise dispatches working groups to the project

department from time to time and conducts in-depth evaluation on the 100% of the affiliated enterprises

Identifying sustainability risks of suppliers effect of the implementation of the supplier's integrity management have conducted or accepted special

through on-site inspection face-to-face interview data consultation and inspection on-site inspection and

The Company classifies suppliers into qualified suppliers potential suppliers and unqualified suppliers based on the supplier's other forms.* The Company conducts regular talks on integrity with key personnel in the return visits related to suppliers

business performance cooperative performance product quality and the following aspects of sustainability risk. procurement department organizes warning meetings on compliance integrity

* Environmental management: whether the supplier has been subject to administrative penalties for environmental problems management and integrity risk holds regular sessions on integrity

etc.; education and warning education.* Social responsibility: whether the supplier has been involved in labor disputes and other legal entanglements or has been * The Company organizes return visits to suppliers or interviews with

subject to penalties from government for safety issues etc.; suppliers at irregular intervals to communicate and understand the integrity of the Company's personnel during business transactions and

* Corporate governance: whether the supplier has been involved in corruption bribery conflict of interest or improper promote the integrity cooperation with suppliers.competition etc.;

* Specific risks: if some countries are stricter with suppliers in terms of social responsibilities suppliers will face higher social risks;

Producers in certain industries or specific commodities of which production processes may involve high levels of pollution or

energy consumption are exposed to higher environmental risks. Ensure the supply chain stability

Green low-carbon and eco-friendly products and services are prioritized for procurement. At the bidding stage of

projects the Company assesses the suppliers' environmental policies environmental management systems and their Sinoma International attaches great importance to the security and stability of the supply chain and maintains

level in resource use and waste management and requires to meet corresponding environmental and emission constant attention to external factors such as wars geopolitics international relations and sanctions.indicators and energy efficiency levels. Besides we pay great attention to product materials and production

processes organizing expert groups to carry out strict technical evaluation. The aim is to ensure that the selected Actively expand supplier Adopt the backup Make comprehensive arrangements for delivery dates. We products are low in consumption and low in pollution during production. During cooperation the Company includes base every year and formulate detailed delivery plans for projects in key regions

subcontractors in its unified management and defines the safety and environmental responsibilities obligations establish a multi-

strategy to manage maintain communication with suppliers freight forwarders

warehouse management suppliers of key goods ports shipping companies and other relevant parties keep

specifies the safety and environmental access requirements for equipment and facilities construction machinery and system to prevent the risk and pay close attention track of shipping routes and other transportation risks and

facilities. At the stage of evaluation on cooperation the Company regularly supervises and reviews the environmental of supply disruption and to market changes to avoid the risk of supply prepare various delivery channels to ensure that the goods

performance of audit suppliers to ensure their compliance with contract and environmental requirements and to ensure the continuity of chain disruption; can reach the designated locations in a timely and safe supply; manner.jointly solve environmental management issues.

75 Guide progress of the industry to enhance overall value for win-win results 762024 Environmental Social and Governance Report

Green and low-carbon products

As a global leader in cement equipment service Sinoma International assumes the responsibility of leading the

industry's transition to green and low-carbon development. The Company is committed to providing owners with

environmentally friendly and high-quality products and services. Leveraging its independently developed and

globally leading cement technology and equipment service system the Company actively develops low-carbon

development technology pathways for the entire cement industrial chain to help industries continuously improve

carbon reduction benefits.The Company seizes the opportunity of clean technology takes green and intelligent as its core development

strategy and integrates this concept into the Company's products and services. In 2024 the Company formulated

internal green product screening criteria to form a Sinoma International green product directory.Screening criteria Green products

Among them:

Shoulder the mission Value: Reduce pollutants and Products aimed at mitigating global Principle I: Application carbon emissions during its own climate change

of green technologies

of the times in construction manufacturing and operation as well as during the use Value: Promoting waste recycling

of equipment products and the reducing the use of fossil energy

pursuit of global Principle II: Products operation of cement production across industries and society and that have obtained a lines by customers and owners. driving the transformation of the green low-carbon energy mix. This reduces carbon

certification In 2024 the revenue from green development emissions contributing to a products reached greener society.Principle III: Products RMB 9.383 billion In 2024 the revenue from products aimed at mitigating

that deliver significant

green benefits to third accounting for global climate change

parties (customers

society communities 20.3% RMB 8.688 billion

etc.) of the Company's total revenue

* Green and * Respond to * Promote

low-carbon climate people's

products change well-being In 2024

the Company's investment in green R&D reached RMB 1.770 billion

In 2024 the Company invested 154 million yuan in the construction of alternative fuel processing center project and

Sinoma (Handan) solid waste resource processing and production of rock fiber board investment projects

distributed photovoltaic projects etc. By 2025 the Company plans to invest 500 million yuan in the field of green

energy and environmental protection focusing on the distributed new energy alternative fuel processing center and

other projects to support the green and low-carbon development of society.

77 Shoulder the mission of the times in pursuit of global development 782024 Environmental Social and Governance Report

R&D of low-carbon emission equipment Research of low-carbon technologies

Sinoma International has been continuously making breakthroughs in the R&D and manufacturing of low-carbon Sinoma International vigorously develops green technology which has researched and applied carbon reduction

emission equipment and promoting the application of low-carbon and ultra-low emission technologies in cement technologies and developed carbon capture and utilization technologies. The Company strives for breakthroughs in

production processes. Tangshan Heavy Machinery has been awarded as a single champion enterprise of energy conservation and carbon reduction technologies with respect to “alternative fuels” “clay calcination”

manufacturing industry in Hebei Province. Technical equipment and projects like green and low-carbon cement the and “oxy-fuel combustion” constructing a solid technical foundation for the low-carbon development of the

utilization of solid waste large-scale alternative fuel technologies were put into use in Egypt Saudi Arabia and cement industry. In 2024 the first new energy storage laboratory was successfully inaugurated.Poland where there have been many overseas programs creating green value for customers in all-round way.In 2024 * Sinoma International (Nanjing) promotes the Jiangsu Province's major scientific and technological achievement

transformation project—the R&D and industrialization of key technologies for low-carbon combustion processes and

? The company's complete set of cement grinding ? The Equipment Group's new key technology equipment in cement kilns with 40% fossil fuel substitution. By developing vortex combustion devices fluidized bed

system was successfully applied in the EPCC project in equipment for low-carbon cement completed pilot

Saudi Arabia. production. low-temperature gasification technology and high-temperature dust and chlorine removal technology the project has

overcome the technical bottleneck of directly suspending the combustion of refuse-derived fuel (RDF) in decomposition

? The slag vertical mill entered overseas markets such as ? The phosphogypsum resource decomposition and furnaces. The fossil fuel substitution rate was increased from the current domestic advanced level of 30% to over 40%

Malaysia for the first time. sulfuric acid co-production cement project passed the with the low-quality alternative fuel substitution rate reaching an internationally leading level. Compared to using only

final acceptance.? The large cement vertical mill was successfully applied fossil fuels this reduces the total CO2 emissions from cement production by more than 10%.in Africa's first 10000-tonne cement production line. ? The coal gauge suspension calcination silicon-alumina

material pilot line was successfully put into production. * The Equipment Group actively carried out research on online carbon emission

? The world's first set of high-efficiency low-resistance

? The first large-scale steel slag ultrafine grinding monitoring technology for cement plants and the independently developed

seven-stage preheater was successfully ignited in process was fully implemented in Hebei Qingfeng "Online Monitoring and Measurement Technology for High-Flow CO2 Emissions

Xuzhou Longshan project. project. under Complex Flue Gas Conditions" successfully passed the scientific and

technological achievement appraisal and carried out pilot research in Fujian

Sanming Southern Cement Co.. to continue to promote the cross-validation of

Case: Slag Micro Powder Production Line New Benchmark for Circular Economy online carbon emission monitoring and accounting methods further improve the accuracy of measurement and reduce the equipment costs. Since April 2024 it has

In the field of slag and solid waste treatment Central Asia Equipment a subsidiary of the Equipment Group with its own reported monitoring data and comparative analysis reports to the General Station

technology and product advantages used slag vertical mills to transform industrial waste into high value-added of Ecological Environment Monitoring on a regular monthly basis and exchanged

products and realized the wide application of slag vertical mills in the international market with a total of nearly 500 sets of experience at the National Pilot Work Promotion Meeting on Deepening Carbon

slag vertical mills for sale which helps the global building materials industry in its green transformation. In 2024 Central Asia Monitoring and Assessment for Thermal Power Iron and Steel and Cement and

Equipment successfully entered the Malaysian market and signed the project of Malaysia's annual production capacity of 1

million tons of slag micropowder production line which uses slag micropowder for the production of slag cement and reduces received a letter of appreciation from the General Station of

carbon dioxide emissions by about 800000 tons/year compared with the traditional cement process effectively realizing the Monitoring of the Ministry of Ecology and Environment.recycling of slag resources with remarkable energy-saving and emission reduction.* Sinoma International Intelligent Technology Co. Ltd. developed precision metrology technology for key flue gas

Through collaboration with external resources carbon management system and digital transformation the parameters including CO? emission concentration and flue gas flow at cement kiln exhaust ports. The Company

Company reduces carbon emissions from equipment production. At the same time the Company actively participated in the pilot work of the Ministry of Ecology and Environment for the cement industry and the formulation of

participates in low-carbon product certification and improves the transparency of the carbon footprint evaluation on carbon online monitoring standards by the China National Environmental Monitoring Center. It also undertook the pilot

its products to help customers better understand the carbon emission status of its products. All this helps the project of carbon online monitoring for Changshan Southern Cement Co. Ltd..Company promote green intelligent and efficient equipment manufacturing. * "Key Technologies for Low-Energy Consumption Calcination Systems in Cement Plants" "Intelligent Wet Flue Gas

Desulfurization Systems and Equipment for Cement Kilns" "Key technology and equipment for co-disposal of domesticCase: R&D of Low-Carbon and Efficient Grinding Equipment to Advance Cement's Low-Carbon Transformation waste in cement kilns" and "Core equipment and technology for final grinding in external cycle cement vertical mills” of

An efficient grinding semi-industrial test platform was established by the Equipment Group. Key technologies and complete Sinoma International Intelligent Technology Co. Ltd. were selected into the Recommended Catalogue of New

equipment for raw material activation calcination and cement graded grinding were developed achieving a carbon emission Technologies Products and Materials of Jiangsu Province's Building Materials Industry.intensity of ≤470 kg/t for 42.5-grade cement a 27% reduction compared to traditional grinding technologies. * Beijing Triumph International Engineering Co. Ltd. participated in the National Key R&D Program "Common Key

In September 2024 the graded grinding project completed performance tests at a Heidelberg cement plant in Thailand. Technology and Demonstration of Carbon Capture in Combustion of Typical Industrial Processes" and the project's

Following the project's official operation the clinker factor for different cement varieties decreased by 7-15% and cement carbon "Industrial Technology Scheme for Carbon Capture in Cement Industry Combustion" passed expert review.emissions were reduced by 60-100 kg/t leading to an annual reduction of 70000-120000 tons of CO2 emissions.

79 Shoulder the mission of the times in pursuit of global development 802024 Environmental Social and Governance Report

Provision of low-carbon services Creation of a low-carbon factory

Sinoma International has accelerated the landing of green energy and environmental protection business developed With its low-carbon technology advantages Sinoma International provides global owners with high-quality green and

alternative fuel industry chain platform and green energy professional platform and helped promote the energy low-carbon engineering services to help them accelerate the decarbonization process and address the globally

transition of global owners and other industrial and commercial users. increasing pressure of energy conservation and carbon reduction. Up to now we have successfully built world-class

green and intelligent demonstration projects in locations such as Huzhou Huaikan Southern Cement Co. Ltd

Sinoma Overseas Sinoma International Wuzhong Saima in Ningxia and the K6 project in France and CUCC Xuzhou first-line energy saving emission

Development Co. Ltd Environmental Engineering Co. Ltd reduction and carbon reduction technology reform project and other emission reduction benchmarking projects.* Has developed a business development system * Is actively building an alternative fuel industry chain

covering wind electric and photovoltaic EPC wind platform establishing an integrated business system

power hybrid towers smart microgrids new energy for the collection storage processing

development and new energy storage. It has a total transportation and use of alternative fuels. It Case: Technological innovation drives service upgrades to create a green transformation model for cement

construction scale of 2.3GW. The company has processes household waste waste textiles and plants

cumulatively served 21 smart microgrid and energy waste tires into alternative fuels for cement

storage projects for basic building materials and production lines bringing significant carbon For the CUCC Taishan 5000t/d Clinker Production Line Energy-saving and Emission-reduction Technical

new material enterprises with a construction scale reduction benefits to the industry chain. Customized

alternative fuel supply services have been provided Renovation Project undertaken by the Equipment Group on of 129MW. 9 projects including tonglu sanshi and an EPC basis the standard coal consumption per ton of

zhuzhou new materials have achieved grid to 46 cement plants increasing the fuel substitution clinker reduced by 18 kgce/t.cl the comprehensive

connection and power generation. rate by 2.5 percentage points with benchmark power consumption per ton of clinker decreased by 15

plants such as hefei south and CUCC nanyang kWh/t.cl and the ammonia water usage decreased by 3

achieving substitution rates of over 35%. By the kg/t.cl and the production cost per ton of clinker decreased

end of 2024 sinoma international environmental by approximately RMB 32 yuan. All indicators have met and

engineering co. Ltd. Had built 11 alternative fuel exceeded the national first-level energy consumption CUCC Taishan 5000t/d clinker production line

processing centers with an annual production and standards setting a benchmark for the green transformation of the industry.processing capacity of 1.2 million tons.Sinoma International (Nanjing) developed the Wuzhong Saima Project which utilizes the high-efficiency low-resistance low-

nitrogen six-stage preheating and pre-decomposition system independently developed by itself. This system significantly

optimizes production operations reduces energy consumption and enhances labor productivity. The project makes full use of

local industrial waste residues (such as iron tailings and fly ash) as raw materials and additives achieving green utilization

Incoming solid waste reception and disposal target of solid waste resources. It is a modern factory integrating green intelligent and high-end features. The project has been

awarded numerous honors including "2021 Intelligent Manufacturing Demonstration Factory" by the Ministry of Industry and

This year the Company disposed of and By 2025 the Company plans to achieve a Information Technology and three other ministries "Intelligent Factory" and "Green Factory" by the Ningxia Autonomous Region

377 "Typical Case of Intelligent Manufacturing and Digital Transformation in the Building Materials Industry" National Green Mine consumed a total of thousand tons of capacity of 2.35 million tons per year

incoming solid waste with the disposing capacity for incoming solid waste consumption and and 2023 Energy Efficiency "Front Runner" in key industries. These accolades have established the project as a benchmark for

disposal. green and intelligent development in the cement industry.of over 1.2 million tons

Case: Photovoltaic power generation transformation and application leads green energy transition

At the beginning of 2024 Sinoma Overseas Development Co. Ltd. collaborated with Turkey's Limak Cement to

complete the first phase of a 28.2MW photovoltaic power generation project. The project covers four plots across

three cement plants of Limak Cement with the scope of work including design procurement supply installation

civil construction and commissioning. The successful signing of this project marks a new chapter in the

cooperation between the Company and Limak Cement in the green energy field. The Company will continue to

Panorama of Wuzhong Saima

support Limak Cement's strategic plan for energy saving and carbon reduction promoting its green development.

81 Shoulder the mission of the times in pursuit of global development 822024 Environmental Social and Governance Report

Respond to climate change Climate active strategies

Sinoma International actively responds to the national "14th Five-Year Plan" the "Dual Carbon" goal and the Sinoma International takes climate change as an important issue and integrates it into the Company's sustainable

Implementation Plan for Carbon Peak in Building Material Industry and follows its Comprehensive Risk Management development strategy. Climate change-related matters are also embedded into all aspects of the Company's overall

System. With reference to the framework recommended by the Task Force on Climate-related Financial Disclosures decision-making production and daily operation which helps alleviate global warming and achieve the "Dual

(TCFD) Sinoma International proactively identifies operational risks that may arise from climate changes and actively Carbon" goal as scheduled.carries out green innovation research and development so as to provide professional support for the industry to

cope with climate risks and help the society to carry out low-carbon transformation.The Company's exposure to climate change involves updates in policies and regulations the application of emerging

technologies shifts in market demand and other fields. Climate risks are prioritized based on their impact and

likelihood of occurrence and effective management measures are established accordingly.Climate change governance

Sinoma International formulates the Implementation Rules of the Strategy Investment and ESG Committee of the

Board of Directors of the Company and determines the supervision and management responsibilities of climate-

related matters. The Strategy Investment and ESG Committee is generally responsible for the climate change-related

matters of the Company including overall monitoring of climate risks and opportunity identification formulation and

review of the Company's sustainable development vision and supervision on the implementation of goals and

strategies. The committee also reviews climate change-related matters every year and reports to the Board of

Directors.The Ecological and Environmental Protection Leadership Group chaired by the Chairman and President is

responsible for overseeing the comprehensive development of the Company's ecological civilization. It organizes and

implements various tasks related to peaking carbon emissions and achieving carbon neutrality. In the process of

strategy formulation enterprise development and project execution the leading group always pays attention to the

risks and opportunities brought by climate change. Under the leadership of the Company each affiliated enterprise

has set up a leading group to respond to climate change issues across disciplines.Likelihood

In the climate risk matrix above different colors represent different levels of climate risk and risks located in areas

with different colors will be subject to different levels of control:

For red areas For orange areas For green areas

* Ensure to avoid and * Strict control of risks * Close monitoring

transfer risks and and specialization of but no additional

prioritize the additional control control measures

implementation of measures

preventive measures

83 Shoulder the mission of the times in pursuit of global development 842024 Environmental Social and Governance Report

Targeted plans and measures have been implemented to address the short-term medium-term and long-term Risks arising from climate change

impacts from climate change. These efforts aim to avoid and adapt to adverse effects while seizing opportunities

presented by climate change. Risk Risks arising Potential impacts on the Time Response measures

categories from climate Company horizon

change

Risks arising from climate change Physical risks

Acute risks Extreme * Strong winds high temperature Long term * The Company analyzed typically

Risk Risks arising Potential impacts on the Time Response measures weather events extreme cold land subsidence good responses to extreme

categories from climate Company horizon and other extreme weather weather events in recent years. In

change events affect the construction 2024 17 of the Company's

schedules construction safety enterprises have emergency plans

and asset safety to deal with extreme weather. The

Transformation risk Company strictly implements

safety regulations such as the

Policies and Stricter * Non-standard information Medium * The Company pays close Technical Code for Safety of

laws regulatory disclosure will result in higher term attention to the latest laws Working at Height of Building

compliance compliance penalties from the and regulations Construction and Safety Operation

requirements government or regulators governmental requirements Procedures for Working at Height

and targets and formulates ensuring the implementation of

plans and measures in emergency plans.accordance with the newly

introduced or updated Chronic Increasing hot * Increasing safety hazards in the Long term * The Company constantly monitors

requirements and targets. risks and cold work environment require more related climate change to make

weather investment in securing timely adjustment to work plans

employees' health and safety and reduce safety hazards in the

Market Industry * Affected by the international carbon Medium * The Company focuses on the work environment.transformation reduction situation the cement term industry trend and analyzes * Decreased stability of energy

trends industry is facing transformation the advantages and supply impels the Company to

pressure and restrictive policies disadvantages of emerging optimize energy structure

technologies brought by new * Incompatibility of the selected

Emerging low- * Newcomers to the market have Medium entrants and the substitution vegetation with the climate at

carbon increased the Company's term risks for current products and the mine sites results in higher

technologies competition pressure in technology technologies. The Company operating costs

also applies environmental

protection technologies

Shortage of raw * Water scarcity makes it difficult to Medium including waste heat recovery Opportunities arising from climate change

materials and obtain water increasing the term power generation

energy Company's water costs comprehensive technical Opportunity Opportunities arising from Possible impacts on the Company Time

categories climate change horizon

* Swelling fuel prices bring about upgrading in energy

higher project costs and lower cost conservation and Products and Innovation and technology * Respond to the market by developing technologies Medium

effectiveness consumption reduction and services development such as renewable energy term

the use of clean energy.* and carbon capture to enhance the Company's

resilience and competitiveness

Technology More stringent * Increasing investment in clean Short term * The Company actively

environmental technology leads to higher operating promotes the construction of More low-emission products * Increase revenue by providing low-carbon products or Medium

standards costs green factories and green and services services term

mines and expands the R&D

and application of green and Energy sources Use of low-emission or * Lower operating costs Long term

clean technologies. renewable energy * Tap into green services to increase operating income

85 Shoulder the mission of the times in pursuit of global development 862024 Environmental Social and Governance Report

Dual Carbon Implementation Plan Invest more in technology research and development to enhance carbon reduction benefits of the industry

In 2024 in accordance with the "Guiding Opinions on Promoting the High-quality Development of Central Enterprises Through further cooperation with universities and research institutions we'll strive to develop and manufacture

to Achieve Carbon Peaking and Carbon Neutrality" issued by the State-owned Assets Supervision and Administration low-carbon equipment promote the application of low-carbon and ultra-low emission technologies in cement production and develop carbon capture and utilization technologies. We will try to make breakthroughs in three

Commission of the State Council and the 'Implementation Plan for Carbon Peaking and Carbon Neutrality' issued by aspects: alternative fuel clay calcination and oxygen-fuel combustion and build creative green factories so as to

China National Building Material Company Limited the Company formulated the "Carbon Peaking and Carbon provide high-quality green low-carbon engineering services for global owners and help them accelerate the

Neutrality Implementation Plan of Sinoma International Engineering Co. Ltd." This plan clarifies the timeline and decarbonization process.roadmap positioning the Company as a leader in achieving the national and Group's "dual-carbon" goals.Strengthen policy research and international cooperation

Establish and improve the carbon management system We will closely monitor changes in domestic and international policies and regulations particularly policy

developments such as the carbon border adjustment mechanism in developed countries and regions including

The Company strengthens energy consumption and carbon emission data statistics. The Company is actively the EU. We will strengthen the research and interpretation of policies make preparations in advance reasonably

participating in low-carbon product certification and improving the transparency of product carbon footprint adjust the development strategy and the mode of production and operation as it works to reduce the impact of

evaluations. By 2024 the Company had compiled and completed the carbon emission accounting guidelines and policy risks on enterprises. We actively participate in international co-operation projects strengthen technical exchanges and co-operation with international counterparts introduce advanced low-carbon technologies and

templates commissioned third-party carbon audits and conducted two training sessions for employees and management experience and promote international development.management including "Dual Carbon Reporting and Policy Interpretation" and "Achieving Carbon Peaking and

Carbon Neutrality from Sinoma International's Perspective".Promote the coordinated development of the industrial chain

We will seek to strengthen communication and cooperation with upstream and downstream enterprises to jointly

Accelerate the electrification of mining equipment and facilities build a green and low-carbon industrial chain. As for the procurement of raw materials we will give preference to environmentally conscious green-minded suppliers. In the sales process we will try to guide customers to adopt

low-carbon methods of use and maintenance. Through industrial chain collaboration we seek to realize resource

The Company adheres to the strategy of equipment large-scale specialized new energy and intelligent sharing and complementary advantages as a way to jointly promote the green development of the whole industry.development to optimize and efficiently utilize energy. The Company actively promotes the electrification of new

energy mining vehicles and non-road mobile machinery conducting cost-benefit and carbon reduction analyses

of new energy vehicle use.Climate risk management

Accelerate the transformation of production and life energy structure Sinoma International attaches great importance to climate risk management and identifies and assesses risks and

opportunities arising from climate change through the following processes which serves as a reference for the

The Company is vigorously promoting the application of oil-to-electricity technology encouraging qualified units Company's strategic planning and business development.to strengthen the construction of photovoltaic and wind power generation continuously improving the energy

structure enhancing energy efficiency. The Company actively explores energy storage technologies to address the

intermittency of renewable energy and ensure energy supply stability. Build a risk information base that includes Complete the Major Risk Assessment Results Table climate risks and opportunities considering by identifying and evaluating climate change-

business and product characteristics including related risks in terms of both risk impact and

the impacts on the Company's finances likelihood and analyzing the level of these risks

production assets supply chain and staff. associated with climate change.Improves the incentive mechanism for energy conservation and emission reduction

The Company has established and improved incentive mechanisms to recognize and reward departments and

individuals who excel in energy conservation and emission reduction efforts. This has motivated employees and Fill in the major risk control form define the Combine the results of the assessment to draw a

ensured the effective implementation of measures. At the same time the Company strengthens the evaluation and main and assisting departments responsible risk heat map with the impact and likelihood as

supervision of the implementation effects of energy conservation and emission reduction measures ensuring the for major risks formulate risk management the axes and clarify the corresponding control

effective implementation of various measures and promptly rectifying any non-compliance. strategies and solutions and submit them to measures according to the different areas.the person in charge for approval.

87 Shoulder the mission of the times in pursuit of global development 882024 Environmental Social and Governance Report

Climate-related indicators and targets Promote people's well-being

Sinoma International has developed a global vision and demonstrated the responsibility of central enterprise. We

paid back to society by concrete efforts including engaging in public welfare and charity services actively supporting

rural revitalization and continuously delivering foreign aid helping to build a community with a shared future for

Targets mankind.By 2025

The carbon emissions intensity including Energy consumption per RMB

Scope 1 and Scope 2 will be reduced by 10000 revenue will be reduced by Contribute to economic growth

2%2%

Sinoma International stays committed to giving back to society while seeking its own stable operations and

The penetration rate of renewable fuels for new construction vehicles purchased by mining development. We will continuously improve investment efficiency strengthen cost-competitive advantages and enhance overall economic performance achieving a balance between economic growth and social responsibility.enterprises will reach 40% We strictly abide by the laws and regulations of various countries and actively fulfill our tax obligations. In addition

according to the tax policy issued by the Ministry of Finance and the State Taxation Administration of the People's

100% Republic of China we promise to use the arm's length principle for transfer pricing. We won't transfer the value of the Company's production enterprises and newly invested production and created to low tax jurisdictions or avoid taxes through confidential jurisdictions or so-called "tax havens". In 2024 the

operation projects will have emergency plans to deal with extreme weather Company saw a tax payment up to RMB 1.908 billion contributing to the economic development of the country

and region where it is located.Investment in green and low-carbon technology research will account for 3.60%

of the output value

Commitment to public welfare and charity

By 2030"zero emission mining Sinoma International is enthusiastic about social and public welfare undertakings and contributes to society with The Company will provide the customers with concrete efforts. We actively donate to the Group’s “Well-constructed" fund encourage our employees toand zero emission cement" volunteer and regularly carry out charitable donations disaster relief and emergency relief project assistance and solution. other activities.Note: "zero emission" refers to zero purchased electricity zero fossil fuels zero primary resources zero carbon emissions and zero waste In 2024

emissions.The Company donated RMB 5.3771 million to the “Well- 1562 employeesconstructed" fund and other charitable institutions as volunteers

Contributed a total of 6798 Participating in or supported 9 activities related to protecting the

hours in the year rights and interests of women children or people with disabilities

89 Shoulder the mission of the times in pursuit of global development 902024 Environmental Social and Governance Report

Supportive to rural revitalization Deepen overseas responsibility fulfillment

Sinoma International earnestly implements the 'Measures for the Implementation of the Rural Revitalization Sinoma International continues to promote coordinated regional development. We have implemented the "Belt and

Accountability System' and fully implements the Group's requirements for supporting rural revitalization. The Road" Initiative followed the approach of consultation and collaboration for shared benefits and adhered to the

Company has established a rural revitalization support organization focusing on areas such as rural revitalization principles of "making contributions to the local economy development cooperating friendly with local enterprises

industrial development project construction social livelihood and consumer assistance. These efforts aim to and serving the local people". We have promoted the integration of global technologies talents and culture

consolidate and expand the achievements of poverty alleviation and effectively link them with rural revitalization in supported the economic and social development of the project site and contributed our efforts to build a community

Yongshan County Yunnan Province where the Company provides targeted assistance thereby fulfilling its social with a shared future for mankind.responsibilities as a central enterprise.In 2024 CBMI Construction Co. Ltd. 's South African company was invited to contribute to the preparation of the Report on

5.304 Social Responsibility of Chinese Enterprises in South Africa (2024) which comprehensively highlights the In 2024 the total investment in rural revitalization amounted to RMB million. significant contributions and positive impact of Chinese enterprises in fulfilling their social responsibilities in South Africa.

Records of assistance provided by Sinoma International in Yongshan County Reach out to community

In the past nine years Sinoma International has dispatched 56 young volunteers to Sinoma International regularly engages with local communities to understand their needs and implements targeted

participate in the "Colorful Class" program letting youth blossom in dedication: measures to support local development thereby improving the quality of life for community residents. During the

In August 2024 the "Good Learning Elite" volunteer service team came again to Hongguang School in Yongshan County implementation of Sinoma Overseas Development Co. Ltd.'s Iraqi project due to the issue of land use by residents outside

Yunnan Province to conduct the "Shan Jian" Colorful Class activities. Ten young volunteers from the Company donated the plant Sinoma proactively assisted the owner in communicating with the local government explaining in detail the

stationery kits to the children and designed diverse courses covering the history of the Party corporate culture natural progress of the project and machinery usage and resolving the relevant issues satisfactorily to safeguard the rights of the

sciences and practical activities for 55 left-behind students. These efforts planted the seeds of dreams in the children's local residents.hearts and ignited hope for rural revitalization.Case: Win-win cooperation between China and Uzbekistan to achieve rapid development of infrastructure

Case: Capturing 'Life Photos' and Lighting Up Childhood with 'Shimmering Light Since its operation the GBM Building Materials Production Base

in Uzbekistan of Beijing Triumph International Engineering Co.Sinoma International's "Shimmering Light Project" is a highlight activity of "Good Construction" "Colorful Class" Volunteer Ltd. has driven the high-quality development of the local

Program. In 2024 volunteers captured 'life photos' for over 60 left-behind children addressing their lack of personal construction industry and infrastructure through its high-quality

photos due to limited family resources. Sinoma International has brought practical care and support to the left-behind building materials making significant contributions to regional

children through the "Shimmering Light Programme" and injected warmth and strength into their growth with infrastructure improvement. It has been highly praised by the

companionship and care. local deputy district mayor and has set an example as for how to

implement the "Three Principles of Win-Win Cooperation" of Deputy District Mayor of Uzbekistan visited GBM Building

Materials Production Base

Sinoma International.Case: Caring for children's growth and accurately assisting community development

During the construction of the L'amali Line 2--5800t/d EPC

Project and the Ganfeng Project in Argentina by Sinoma Overseas

Development Co. Ltd. the company donated children's strollers

worth approximately US$800 for Children's Day to support the

growth of local children. This initiative was highly praised by the

Argentine Construction Workers Association and the local

community demonstrating the Company's social responsibility Sinoma Overseas Development Co. Ltd.'s stroller donation

Photo with children in Sinoma International "Shimmering Light Programme" and humanistic care. campaign

91 Shoulder the mission of the times in pursuit of global development 922024 Environmental Social and Governance Report

Promote cultural integration

Sinoma International fully supports local cultural development and is committed to promoting traditional Chinese The Company encourages local employment and promotes local employment using

culture.more than 20000 local workers throughout the year. The Company has over

Case: Exchange of traditional culture and friendship between the two countries 50% of its employees at all levels hired from a local talent pool.To celebrate the New Year and deep friendship between

the two countries the "Happy Spring Festival Temple

Fair 2024" organized by the Embassy of the People's In Chengdu Design and Research Institute of Building Materials Industry Co. Ltd.Republic of China in the Federal Republic of Nigeria and

the China Cultural Center in Nigeria and co-organized by 84% of the employees are hired locally and 40% of the middle-level and senior

the China General Chamber of Commerce in Nigeria staff are local talent.kicked off in February 2024. CBMI Nigerian perfectly

fused Chinese and foreign cuisines and the meal won

the second prize contributing to the cultural exchange Over the years Chengdu Design and Research Institute of Building Materials Industry Co. Ltd. has

between China and Nigeria. consistently respected local customs and dietary practices. By integrating corporate and local

cultures it has demonstrated special care for local staff during important traditional festivals such

as Kurban Bayrami and Eid al-Adha and established Muslim restaurants in all project camps. This

has strengthened the sense of belonging and identity among Egyptian employees.Case: Focusing on the training of local talents and actively promoting local employment

CBMI Nigerian participated in "Spring Festival Fair" food competition In 2024 Sinoma (Suzhou) Construction Co. Ltd. in collaboration with multiple enterprises and schools established the

Ethiopia Industry-Education Integration Training Center. The center conducts teacher training Chinese language

instruction and job skills training exploring the "Chinese Language + Vocational Skills" model to support international

Support local education production capacity cooperation. It aims to enhance the Chinese language proficiency vocational skills and overall quality

of local employees while cultivating composite local talents proficient in both Chinese language and technology. The

Sinoma International fully supports and encourages the development of local education and contributes to establishment of the center provides strong support for the Company's deep-rooted local operations and social

educational equality. responsibility fulfillment facilitates local talent development and employment and promotes people-to-people

exchanges between China and Africa.Case: Spread love at school: School-enterprise interaction to promote prosperity

The Goodfound Grinding Station Project Department of CBMI Construction Co. Ltd. in the Philippines organized a visit for

employees to TUPAS Primary School located near the project site for a gathering themed 'Caring for Primary School Case: Localized Employment and Skill Enhancement Sinoma OverseasSinoma Overseas

Students.' During the event project department staff teachers and students participated together enabling the children Development Co. Ltd.'s Win-Win Practice in Argentina

to learn about Chinese culture and broaden their horizons through cultural exchange. This not only strengthened the

bonds between the enterprise the community and the school but also built a bridge for cultural exchange between China In the Argentina Ganfeng project Sinoma Overseas Development Co. Ltd. employs over 170 local staff accounting for

and the Philippines providing new momentum for the growth and educational development of local students and approximately 85% of the workforce. This has effectively alleviated local employment pressure and contributed to the

showcasing the enterprise's social responsibility and humanistic care. community's economic development and talent team building.In the L'amali Line 2 5800t/d EPC project Zijin project and Ganfeng project Sinoma Overseas Development Co. Ltd. has

Increase local employment organized over 300 professional and technical training sessions for local staff covering electrical work professional

welding and on-site safety management. These efforts have significantly enhanced the skill levels of local employees and

While providing high-quality engineering and technical services for the owners Sinoma International is committed to achieved win-win development between the Company and the local community.providing employment opportunities for local people and promoting local economic development.

93 Shoulder the mission of the times in pursuit of global development 942024 Environmental Social and Governance Report

Outlook

As the years pass a new chapter begins. We will relentlessly pursue

excellence and strength.The year 2025 marks not only the conclusion of the 14th Five-Year Plan but also the end of the first five-year phase of

the 'Two-Step Strategy' aimed at achieving the Long-Range Objectives Through 2035. Standing at the forefront of this

era we have gained profound insights into the new landscape. We will courageously embrace new responsibilities

and face challenges with unwavering determination and quiet confidence. Guided by Xi Jinping Thought on Socialism

with Chinese Characteristics for a New Era we are committed to crafting a remarkable chapter of high-quality

development with "one core and two drivers " as the cornerstone.Guided by the principles of "one center two priorities three focal points and four roles " we are committed to

shaping a new era of high-quality development for Sinoma International. Focusing on optimized production and

operations we will relentlessly pursue steady growth in performance. By prioritizing the service-oriented

transformation of our core business and extending the local value chain we will significantly enhance our ability to

create value. Concentrating on high-end equipment digital intelligence and low-carbon development we will fortify

the resilience of our industrial chain. We will fully harness the power of innovation-driven development and reform to

fuel progress while effectively fulfilling our roles in risk prevention and supporting the Group's high-quality growth.With unwavering determination and relentless vigor we will inscribe a new chapter in our quest to become a world-

class enterprise.In the grand journey of 2025 we will work together to thrive in a new situation of high-quality development of the

enterprise and steadily go forward on the road of being a world-class service provider in the construction materials

industry. Integrating the industrial chain and having the whole world in view we are committed to promoting

sustainable development in an effort to contribute to the progress of the industry national prosperity and a better

world!

95 962024 Environmental Social and Governance Report

ESG key performance Key performance indicators Unit 2024

Total amount of Industrial waste tons 325852.42

incoming solid Household waste tons 0

Environmental data waste

consumption and Hazardous waste3 tons 43600.00

disposal by type2 Other4 tons 7537.00

Key performance indicators Unit 2024

Total volume of timber purchased by the 10000 m3 1.36

Total emission of nitrogen oxides (NOx) tons 0.70 Timber company

Total emission of sulphur dioxide (SO2) tons 0.12 certification Among them: amount of certified 10000 m3 0.05

Emissions of industrial particulate matter tons 4.62 Among them: amount of non-certified 10000 m3 1.32

Total emission of Volatile Organic Compounds (VOCs) tons 35.32 Timber 10000 m3 0.29

Total amount of Chemical Oxygen Demand (COD) tons 0.42 The proportion of recycled wood5 % 9.96

wastewater Steel 10000 tons 44.86

pollutant Ammonia tons 0.002

discharge The proportion of recycled steel6 % 3.33

Total greenhouse gas emissions 1 tons of CO2e 815068.19 Concrete 10000 m3 168.09

Direct greenhouse gas emissions (Scope 1) tons of CO2e 620300.12 The proportion of recycled concrete % 6.02 Total amount of

Indirect greenhouse gas emissions (Scope 2) tons of CO2e 194768.07 materials used in Aggregate 10000 m3 57.53

Greenhouse gas emissions from engineering services tons of CO2e 83440.63 the construction The proportion of recycled aggregate % 6.87

process

Greenhouse gas emissions from equipment manufacturing Asphalt 10000 tons 1.59

operations tons of CO2e 33608.95 The proportion of recycled asphalt % 25.83

Greenhouse gas emissions from operation and maintenance

services tons of CO2e 686560.47

Cement 10000 tons 51.49

The proportion of recycled cement7 % 8.86

Greenhouse gas emissions from other operations tons of CO2e 11458.14

Other materials 10000 tons 5.37

Greenhouse gas emission intensity tons of CO2e/million yuan (revenue) 17.67

The proportion of recycled other materials % 9.96

Amount of self-produced hazardous solid waste tons 907.71

Direct energy consumption8 MW·h 2253206.97

Intensity of self-produced hazardous solid waste tons /million yuan (revenue) 0.02

Natural gas consumption MW·h 21293.15

Amount of self-produced non-hazardous solid waste tons 5330.67

Petrol consumption MW·h 23001.94

Intensity of self-produced non-hazardous solid waste tons /million yuan (revenue) 0.12

Comprehensive utilization amount of self-produced non-hazardous tons 4589.37

solid waste 2. The Company's method for treating and disposing of external solid waste involves the production of alternative fuel products and co-processing in

cement kilns.Among them: comprehensive utilization amount in previous year tons 7.26 3. For hazardous waste among incoming solid waste the Company adopts the same treatment and disposal method: producing alternative fuel

Comprehensive utilization proportion of self-produced non- products and co-processing in cement kilns.hazardous solid waste % 85.95 4. Refer to fuels derived from industrial waste (e.g. discarded textiles plastics industrial residues) municipal waste and agricultural/forestry waste that possess calorific value (combustibility) falling outside the aforementioned three waste categories. These fuels are widely used in cement kilns and

Total amount of incoming solid waste consumption and disposal tons 376989.42 thermal power plants (including biomass power plants) to replace fossil fuels (coal) thereby reducing carbon emissions and fossil energy consumption.

5. "Recycled wood" includes wooden packaging materials recovered from equipment transportation and reused as well as wooden formwork and

timber reused during construction processes.

6. "Recycled steel" refers to reused steel structures fabricated on-site scrap materials from non-standard equipment and components steel packaging

1. Greenhouse gas (GHG) data encompasses emissions generated by all domestic and overseas operations (limited to operations within China in the materials from equipment transportation and recycled steel scaffolding and formwork used during construction.

previous year). The calculation of GHG data refers to relevant conversion factors provided in the Notice on Completing GHG Emission Reporting and

Verification for Enterprises in Certain Key Industries (2023-2025) as well as a series of guidelines issued by the National Development and Reform 7. "Recycled concrete aggregates asphalt and cement" refers to these materials produced using recycled materials as substitutes for virgin raw

Commission including the Guidelines for GHG Emission Accounting and Reporting Methods for Industrial Enterprises in Other Sectors. All materials.measurements are expressed in tons of CO2 equivalent. 8. Calculations are performed according to the General Principles for Calculation of Comprehensive Energy Consumption (GB/T 2589-2020) standard.

97 982024 Environmental Social and Governance Report

Key performance indicators Unit 2024 Key performance indicators Unit 2024

Diesel consumption MW·h 2190769.22 Total recycled water tons 336089.58

Other energy consumption9 MW·h 18142.65 Recycled water utilization rate % 26.99

Indirect energy consumption MW·h 347844.99 Total environmental investment RMB 10000 7418.23

Purchased heat consumption MW·h 2577.48 Revenue from products with inherent green RMB 10000 69590.57

Electricity consumption MW·h 345267.51 attributes

Purchased electricity consumption MW·h 343162.09 Revenue from Products with various green

Green certifications including but not limited to "China

Purchased conventional grid electricity consumption MW·h 339342.54 product Low Carbon Product Certification" "Green RMB 10000 28102.57

Purchased green electricity consumption MW·h 3819.55 Building Material Product Certification" etc.Self-generated electricity consumption MW·h 2105.42 Revenue from products that contribute to societal

greening RMB 10000 868756.39

Self-generated wind electricity consumption MW·h 39.24

Number of national-level green factories owned unit 1

Equivalent greenhouse gas emission reductions tons of CO2e 32.33

Number of provincial-level green factories owned unit 1

Photovoltaic power generation consumption MW·h 2066.18

Number of national-level green mines owned unit 0

Equivalent greenhouse gas emission reductions tons of CO2e 1702.53

Number of provincial-level green mines owned unit 1

Comprehensive energy consumption10 MW·h 2601051.96

Number of national-level green factories constructed unit 8

Comprehensive energy consumption intensity MW·h/million yuan (revenue) 56.39

Number of provincial-level green factories constructed unit 1

Consumption of non-renewable materials tons 192980.29

Number of green factories of other levels constructed unit 0

Consumption of toxic and hazardous materials tons 487.00

Number of national-level green mines constructed unit 48

Material consumption intensity tons/million yuan (revenue) 4.19

Number of provincial-level green mines constructed unit 119

Total energy expenditures RMB 10000 112378.33

Number of green mines of other levels constructed unit 3

Water withdrawal11 tons 1245356.43

Number of buildings constructed/managed/owned by the Company unit 465

Tap water tons 801966.19

Number of green buildings constructed/managed/owned by the

Groundwater tons 114840.56 unit 13 Company

Surface water tons 321415.10 Area of all manufacturing and operating units m2 2219337.74

Other tons 7134.58 Area for which biodiversity risk assessments have been conducted m2 103484.00

Water withdrawal intensity tons/million yuan (revenue) 27.00 Number of sites for all production operations (e.g. factories mines

Total water discharged tons 7400.00 project sites.)

unit 95

Total water consumption tons 1237956.43 Number of sites for which biodiversity risk assessments have been

conducted unit 5

Number of legal entities with ISO14001 certifications unit 47

Number of legal entities with ISO50001 certifications unit 4

Number of enterprises with climate risk

response/adaptation plans (e.g. extreme weather unit 17

contingency plans) in place

Climate

9. The statistical scope for "other energy consumption" in the current year includes liquefied natural gas (LNG) and liquefied petroleum gas (LPG) while change risks Annual financial impact of risks RMB 10000 158.00

the previous year's scope additionally included diesel and gasoline. and Annual expenditures arising from risk response

10. Energy consumption data includes all energy used by the Company's domestic and overseas operations. opportunities measures RMB 10000 843.78

11. Water resource consumption data includes all water usage from the Company's domestic and overseas operations. Annual costs of capturing climate change

opportunities RMB 10000 15274.60

99 1002024 Environmental Social and Governance Report

Social data

Key performance indicators Unit 2024 Key performance indicators Unit 2024

Total number of employees person 15598 Under 30 years old % 7.31

Male employees person 12342 Employee turnover rate by 30 to 50 years old % 3.37

Total number of ageMale employees in STEM person 6752

employees Over 50 years old % 10.74

by gender Female employees person 3256 Mainland China % 6.50

Female employees in STEM person 618 Employee turnover rate by Region of Hong Kong Macao and Taiwan % 0

Total number of Han employees person 12819 region

employees Overseas % 1.18

by ethnic group Minority employees person 2779 Senior employees % 4.71

Senior management employees person 255 Employee turnover rate by

Female employees person 36 job level

Middle-level employees % 2.79

General employees % 6.06

Female employees in operational

positions person 7 Senior employees % 2.75

Male employees person 219 Voluntary turnover rate by job

level Middle-level employees % 2.30

Male employees in operational General employees % 4.69

positions person 121

Total number of Minority employees person 5

Voluntary turnover rate by Male % 4.45

gender

employees by job Middle-level employees person 1611 Female % 4.36

level Female employees person 562 Under 30 years old % 5.76

Female employees in operational Voluntary turnover rate by person 233 age 30 to 50 years old % 1.95 positions

Over 50 years old % 10.15

Male employees person 1049

Mainland China % 5.02

Male employees in operational person 938 Voluntary turnover rate by positions region Region of Hong Kong Macao and Taiwan % 0

Minority employees person 21 Overseas % 1.14

General employees person 13732 Number of newly hired employees person 805

Total number of Long-term employees person 14057

employees by Number of newly hired

Male person 686

type of Short-term employees person 1541 employees by gender Female person 119

employment Under 30 years old person 610

Under 30 years old person 3816 Number of newly hired

Total number of employees by age 30 to 50 years old person 180

employees by age 30 to 50 years old person 8898

Over 50 years old person 2884 Over 50 years old person 15

Total number of Mainland China person 13241

Senior employees person 6

Number of newly hired

employees by Region of Hong Kong Macao and Taiwan person 1 Middle-level employees person 13 employees by job level

region Overseas person 2356 General employees person 786

Employee Male % 5.78

turnover rate by Number of newly hired

Han person 771

gender Female % 5.40 employees by ethnic group Minority person 34

101 1022024 Environmental Social and Governance Report

Key performance indicators Unit 2024 Key performance indicators Unit 2024

Number of internal transfers or internal applications person 654 Number of employee representatives person 1100

Percentage of internal transfers or internal applications % 44.82 Percentage of employee representatives % 7.05

Received complaints on violations of employees' legitimate rights Number of work-related fatalities person 0

and interests case 0 Fatality rate per thousand employees ‰ 0

Received complaints on discrimination against applicants and Percentage of zero-fatality projects % 100

employees case 0 Lost Time Injury Frequency Rate (LTIFR) for millions of hours of - 0

Number of visits to support special employees and assist employees employees

in need person-times 881 Number of working days lost due to work-related injuries day 0

Number of employees who were helped to send their children in Lost Time Injury Frequency Rate (LTIFR) for millions of hours of - 0

difficulty to school or who were rewarded for sending their children person-times 17 contractors employees

to school Person-times of employees participated in occupational health and person-times 572840

Number of visits to assist critically ill employees person-times 95 safety training

Total expenditure on supporting to special employees and assisting Number of safety inspections conducted times 28106

to employees in need RMB 10.000 48.81 Number of hidden dangers identified unit 29006

Total expenditure on helping children of employees in difficulty to Number of hidden dangers rectified unit 29006

attend school or rewarding employees' children for attending school RMB 10.000 0.70 Rectification rate of identified hidden dangers % 100

Total expenditure on helping critically ill employees RMB 10.000 45.27 Number of emergency drills fire drills and other exercises conducted times 2173

Number of employee activities were organized and participated in times 851 Total expenditure on safety and health RMB 10.000 55213.84

Number of participation in various events organized by relevant Number of companies at safety standardization level I unit 0

industry associations (at provincial level or above) times 54 Number of companies at safety standardization level II unit 11

Number of employees participated in various activities person-times 35937 Number of companies at safety standardization level III unit 9

Total number of employees participated in satisfaction survey person 7474 Number of companies certified to ISO 45001 occupational health and safety management system unit 47

Percentage of total number of employees % 47.91 Percentage of Male employees % 87.28

Percentage of Male employees % 97.67 employees

satisfaction by participated in

gender Female employees % 96.68 training (all

training Female employees % 80.80

Percentage of Under 30 years old % 98.73 categories) by

satisfaction by 30 to 50 years old % 97.85 gender

age Over 50 years old % 96.75 Percentage of Under 30 years old % 82.41 employees

Percentage of Han % 98.40 participated in

30 to 50 years old % 87.05

satisfaction by training (all

ethnic group Minority % 95.13 training

categories) by Over 50 years old % 87.17

Percentage of Senior employees % 99.07 age

satisfaction by Middle-level employees % 97.81 Percentage of Han % 86.55

job level General employees % 96.41 employees participated in

Number of employees covered by the Group's enterprise annuity

plan person 9185

training (all

training Minority % 83.08

categories) by

Number of employees covered by supplementary medical insurance ethnic group

and other insurance types beyond the five mandatory insurances person 10739

Percentage of Senior employees % 93.33

Number of employees who are members of the labor union person 13399 employees Middle-level employees % 94.10

Percentage of employees who are members of the labor union % 85.90 participated in training (all

Number of employees covered by collective agreements person 6948 training General employees % 85.79

categories) by job

Percentage of employees covered by collective agreement % 44.54 level

103 1042024 Environmental Social and Governance Report

Key performance indicators Unit 2024 Key performance indicators Unit 2024

Percentage of employees Senior employees % 84.70 The costs of products or service procured from suppliers with whom

participated in safety and the Company has established long-term cooperation

RMB 10000 2084490.72

Middle-level employees % 53.81

environmental training by Number of suppliers Total unit 7162

job level General employees % 53.45 that have been screened Mainland China unit 7059

Percentage of employees Senior employees % 50.19 and controlled for environmental and

participated in skills-based Region of Hong Kong Macao and Taiwan unit 23 Middle-level employees % 61.26 social risks by the

business training by job Company Overseas unit 80

level General employees % 75.18

The costs of suppliers screened and controlled for environmental and

Percentage of employees Senior employees % 94.90 social risks by the Company RMB 10000 1269283.71

participated in Middle-level employees % 81.12

management training Among the suppliers Total unit 28 that have been screened

(including compliance General employees for environmental and Number of suppliers with whom corrective % 55.10

training) by job level social risks and measures/improvement plans have been unit 15

controlled for long-term agreed upon

Total training hours (calculated by person-time) hour 898900 cooperation by the

Total training hours in safety and environmental protection hour 491461 Group the number of suppliers assessed to Number of suppliers phased out unit 13

Total training hours in technical and operational skills hour 283172 have significant negative

impacts

Total training hours in management hour 124267

Number of suppliers Total unit 1451

Average training hours per Male employees hour 67.09 who have established

employee by gender (all

training categories) Female employees hour 66.94

long-term cooperation

with the Company and Number of suppliers screened and

Under 30 years old hour 65.29 participated in supplier controlled for environmental and social unit 1135 Average training hours per training and capacity risks by the Company

employee by age (all 30 to 50 years old hour 80.64 improvement

training categories)

Over 50 years old hour 27.42 Number of ESG training sessions for suppliers or ESG training

Average training hours per exchange sessions with suppliers

times 718

Han hour 67.49

employee by ethnic group Number of suppliers certified under systems such as quality

(all training categories) Minority hour 65.03 occupational health and safety environmental or energy unit 6952

management

Senior employees hour 67.56

Total hours of training by Total unit 2824

job level Middle-level employees hour 53.04 Number of all suppliers not in long-term co- Number of suppliers screened and

General employees hour 68.11 operation controlled for environmental and social unit 2346

risks by the Group

Training hours per capita (all types of training) hour 67.06

Percentage of products recalled due to safety and health concerns % 0

Total training cost yuan 12572334.56

Litigation cases involving the safety and health of products and

Number of cases involving suspected child labor and forced labor case 0 services case 0

Total unit 8844 Number of complaints received regarding products and services case 0

Number of suppliers who Mainland China unit 8739

have established long-term Number of complaints properly addressed and resolved case 0

cooperation with the Region of Hong Kong Macao and unit 23 Number of cases of suspected infringement of intellectual property

Company Taiwan rights by products and services case 0

Overseas unit 82 Number of complaints due to disclosure of customer information case 0

105 1062024 Environmental Social and Governance Report

Key performance indicators Unit 2024 Key performance indicators Unit 2024

Total number of clients unit 2491 Other RMB 10000 7.31

Number of clients participating in satisfaction surveys unit 1918 Number of support projects unit 3

Number of clients whose survey results were satisfactory unit 1864 Number of special scholarship programs established unit 1

Percentage of clients participating in satisfaction surveys % 76.99 Number of institutions involved in scholarships unit 1

Percentage of customer satisfaction % 97.18 Total scholarships RMB 10000 3.00

Annual number of patent applications case 602 Number of students receiving scholarships person 15

Number of invention patents case 392 Number of entrepreneurship training bases unit 6

Annual number of patents granted case 420 Availability of internships for current students unit 41

Number of invention patents case 192 Number of established volunteer organizations or groups unit 9

Cumulative number of valid patents case 2883 Number of volunteers among employees person 1562

Number of invention patents case 796 Number of hours of volunteer activities hour 6798

Cumulative number of successful software copyright registrations case 871 Amount of corporate support for volunteer activities RMB 10000 7.02

R&D investment RMB million 1769.93 Number of activities involving or supporting the protection of the times 9

Percentage of R&D investment in operating revenue % 3.84 rights and interests of women children or persons with disabilities

Number of R&D personnel person 3071

Number of standards that have been chaired and participated in

the development or revision unit 19

Number of anti-corruption training sessions held and organized times 389

Number of directors attending anti-commercial bribery and anti-

corruption trainings person-times 460 Indicator indexes

Number of employees attending anti-commercial bribery and anti-

corruption training (excluding directors) person-times 29049

Coverage of directors in anti-corruption training % 100

Table of Content Sustainability Guidelines No. 14 for Reference Indicator

Coverage of employees in anti-corruption training % 100 Reporting Standards Self-Regulation of System for the ESG

Number of cases in which employees violated the Group's code of case 0 (GRI Standards) Listed Companies - Special Report of Listed conduct (Corruption or bribery) Sustainability Report Companies Controlled

Number of cases in which employees violated the Group's code of (Trial) by Central Enterprises

conduct (Discrimination or harassment) case 0

About this report GRI1-42-12-2 1-6 G4.1.2

Number of cases in which employees violated the Group's code of

conduct (Customer privacy data) case 0 Chairman's speech / / /

Number of cases in which employees violated the Group's code of About Sinoma International GRI2-1 2-6 / /

conduct (Conflict of interest) case 0 Sustainable development GRI2-9 2-14 2-16 2-22 2-29 1-92-112-122-185-1-515-1- G1.3.3 E.5.1.1 G1.2.2 G3.2.2

Number of cases in which employees violated the Group's code of management 3-1 3-2 3-3 53

conduct (Money laundering or insider trading) case 0 Conduct an overall

Amount of taxes paid RMB 10000 190751.33 layout to build a Special green and low- / / /

Amount of public charity investment (including material donations) RMB 10000 537.71 topic carbon industrial

Donations to targeted support areas（rural revitalization） RMB 10000 530.40 chain

107 1082024 Environmental Social and Governance Report

Table of Content Sustainability Reporting Guidelines No. 14 for Reference

Standards Self-Regulation of Indicator System

(GRI Standards) Listed Companies - for the ESG Special

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Controlled by Thank you very much for reading this report. Your opinions and suggestions are an important basis for us to continuously

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Sound G1.1.1-G1.1.2 G1.2.2

corporate GRI2-9 2-10 2-12 5-1-51 G3.1.1-3.1.2 G3.2.1- Selective questions (please tick √ at the appropriate location)

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Strengthen the

Compliant and G2.1.1-2.1.2 G2.2.1-

1.Please evaluate the degree of impact of Sinoma 2.Please evaluate the extent to which this report

foundation of International on the economy society and responds to and discloses issues of concern to

governance to ethical GRI2-27 205-1 205-2 5-2-545-2-555-2-56

2.2.2 G2.3.1-2.3.2

G5.1.1-5.1.3 G5.2.1- environment reflected in this report: stakeholders:

secure operations 5.2.3

sustainable 〇 Very good 〇 Good 〇 General 〇 Poor 〇 Very good 〇 Good 〇 General 〇 Poor

operation and Guarantee GRI2-23 2-25 2-26 2-30 201-3

development employee 202-1 202-2 401-2 401-3 403-1

S1.1.1 S1.1.3 S1.2.1 -

3.Please evaluate the clarity accuracy and 4.Please evaluate the readability of this report:

rights and 403-2 403-3 403-4 403-5 403-6 4-4-494-4-50

1.2.4 S1.3.1-S1.3.4

403-7 403-8 403-10 404-2 404-3 S1.4.1-1.4.3 S1.5.1 completeness of the information indicators and data interests 〇 Very good 〇 Good 〇 General 〇 Poor405-1 406-1 S2.1.1 disclosed in this report:

E2.1.1-2.1.2 E2.2.1 〇 Very good 〇 Good 〇 General 〇 Poor

Adhere to the Green and

clean GRI302-4 302-5 303-2 304-2 304-3 3-2-29 3-2-303-2-323-2-

E2.3.1-2.3.5 E4.1.1

green concept 33 E5.2.3 E5.4.1 E5.4.2 5.Please give a comprehensive evaluation of this

to ensure production E5.4.3 E5.4.4 E5.4.6 report:

environmental E5.5.1 E5.6.1 E5.6.2

friendly Integration into 〇 Very good 〇 Good 〇 General 〇 Poor

development the circular GRI303-1 306-1 306-2 306-3 306-4 306-5 3-3-34 3-3-37 E1.4.2 E5.2.1economy Open questions

Guide progress Improve service GRI2-28 417-1 4-2-414-2-424-3-444-3- S2.1.2 S2.2.1-2.2.3

of the industry quality 474-3-48 S2.3.1-2.3.4 1.What aspect of this report are you most satisfied with

to enhance

overall value Sustainable GRI308-1 308-2414-1 414-2 4-3-444-3-45 E.5.4.5 S3.1.1 S3.2.1-for win-win supply chain 3.2.3

results 2.What further information would you like to learn

Green and low-

carbon GRI305-5 3-1-203-1-28 E3.2.2 E5.5.3 S4.4.1

products

Shoulder the

mission of the 2-112-122-142-152-162- 3.Do you have any suggestions for our future reports

times in Respond to 182-19GRI201-2 305-5 E3.1.2 E.3.2.1-3.2.2

pursuit of climate change 3-1-203-1-213-1-233-1- E.3.4.1 E5.1.1 E5.3.1

global 27 If it is convenient please tell us your information

development Promote S4.1.1 S4.2.1-4.2.2 Full name: Occupation: Organization:

people's well- GRI203-1 203-2 207-1 413-1 4-1-384-1-394-1-40 S4.3.1-4.3.2 S4.4.2-

being 4.4.4 Address: Telephone: Email:

E1.1.1-1.1.4 E1.2.1-

GRI2-7 2-8 201-1 205-3 206-1 1.2.3 E1.3.1-1.3.5

ESG key 301-1 301-2 301-3 302-1 302-2 3-1-243-1-253-1-26 3-2- E1.4.1 E2.1.3-2.1.4

Our contact information

performance 302-3303-3 303-4 303-5 304-1 E2.2.2 E2.3.2-2.3.5 305-1 305-2 305-4 305-7 401-1 31 3-3-35 3-3-36 4-4-50 E3.1.3-3.1.4 E3.1.6 Company Address: No.16 Wangjing North Road Chaoyang District Beijing

Appendix 403-9 404-1 405-2 418-1 S1.1.2 S.1.4.3 S1.5.3 Postal code: 100102

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