China Tourism Group Duty Free Corporation Limited

Stock Abbreviation：CTG DUTY-FREE

A Share Stock Code：601888.SH

H Share Stock Code：01880.HK

2024

Environmental Social and

Governance Report

China Tourism Group Duty Free Corporation Limited 2024 Environmental Social and Governance Report2024 Environmental Social Stock Abbreviation: CTG DUTY-FREE China Tourism Group Duty About this Report 01and Governance Report Stock Code: 601888.SH 01880.HK Free Corporation Limited

About This Report

Reporting Introduction

This report is the fourth Environmental Social and Governance Report (hereinafter “ESG Report” “this Report” or “the Report”) issued by

China Tourism Group Duty Free Corporation Limited (hereinafter “CTG DUTY-FREE” “the company” or “we”).Reporting Scope

Unless otherwise stated the scope of content disclosed in the ESG Report is consistent with that of the company’s Annual Report.Reporting Period

The period of this Report is from 1 January to 31 December 2024. To enhance the readability of the Report some contents or data refer to

previous years or extend to the date of disclosure of the Report.Source of Information

The information and data provided in the Report have been obtained from our internal documents statistical reports and ESG-related

performance summaries. Unless otherwise specified the currencies involved in the Report are all measured in CNY.Reporting Guidance

This Report is prepared in accordance with the ESG Metrics System for ESG Reports of Listed Companies Controlled by Central

State-owned Enterprises issued by the State-owned Assets Supervision and Administration Commission of the State Council (the “SASAC”)Sustainability Report (Trial) issued by the Shanghai Stock Exchange and the Environmental Social and Governance Reporting Code (“ESGCode”) Appendix C2 to the Rules Governing the Listing of Securities on the Main Board of The Stock Exchange of Hong Kong Limited

(“Hong Kong Stock Exchange”) and with reference to the following rules:

* The Guidelines for State-owned Enterprises Directly under the Central Government on Fulfilling Corporate Social Responsibilities

issued by the SASAC;

* The Guidelines No. 1 for Application of Self-regulation Rules for Listed Companies – Standardised Operation issued by the Shanghai

Stock Exchanges (the “SSE”);* The Guidelines on Corporate Social Responsibility Reporting in China released by Chinese Academy of Social Sciences (“CASS-ESG

6.0”)

* Global Reporting Initiative’s Sustainability Reporting Standards (“GRI Standards”)

* The Ten Principles of the United Nations Global Compact

* United Nations Sustainable Development Goals (SDGs)

Reporting Principles

Materiality: We identified key ESG issues through materiality assessment the process and results of which have been disclosed in this

report.Quantitative: For those indicators need calculation calculation sources have been disclosed in this Report.Balance: This ESG report should provide an unbiased picture of the company’s performance and to ensure that the information disclosed

truthfully reflects the company’s performance in environmental social and governance aspects.Consistency: We follow a consistent approach for disclosure statistics and maintain the same disclosure statistics for this report in respect of

information previously disclosed in the report for last year to the largest extent.Release Form of the Report

The electronic version of this Report can be downloaded from the company’s official website or obtained by

following the WeChat official account of “CTG DUTY-FREE Investor Relations”. This Report is published in

Simplified Chinese Traditional Chinese and English. In the event of any discrepancy between the three versions

the Simplified Chinese version shall prevail.CONTENTS

01 About This Report Topic 1

Working Together to Promote

04 Letter from the Chairman 01 03

Prosperity and Grow Our

06 Key Sustainability Footprint in Hainan Principles of People

Performance Metrics

Governance

08 Honors and Awards 18 Meeting Our Responsibilities 84 Employee Rights and

in Rural Revitalisation Promoting Their Interests

12 Statement of the 22 With a Dual Focus Co-Creating 38 ESG Strategy: Clarifying Key 91 Diversified Training to

Board of Directors a New Development Blueprint Priorities Promote Staff Development

13 Company Overview 24 Sailing with Momentum: 44 Robust Governance System for 94 Operational Safety and

A Decade of Excellence Long-term Stable Operations Physical and Mental Health

16 Sustainability Milestones by 48 Complying with Commercial

Month in 2024 Ethics to Reinforce Internal Control

Compliance

Topic 2

Pursuing a Green Future and

Carrying Out Excellent 02 04

ESG Initiatives

Prosperity Planet

119 Appendix 26 Conserving Energy and Reducing

Carbon throughout the

119 Glossary of Terms 58 Upholding Original Beliefs 100 Addressing Climate Change to Entire Building Process and Mission to Ensure Protect the Environment

121 ESG Metrics 33 Combatting the Typhoon with Trusted Business Operations 107 Focusing on New Quality Productive

Determination and United Efforts 66 Robust Green and Forces to Develop a Circular Economy

129 Index 35 Green Alliance: Joining Hands with Intelligent Supply Chain

110 Green and Low-Carbon

Brands to Open a New Chapter 69 Setting the Industry Benchmark for Operations for a Better Life

High-quality Development

77 Engaging in Charity Initiatives to

Act as a Responsible Corporate04 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Letter from the Chairman 05

Dear stakeholders:

2024 marked the 40th anniversary of CTG DUTY-FREE a key under the circular economy model. To put our commitment

milestone for the company. It was also a significant year for the to green and low-carbon operations into practice we have

company’s efforts to actively align itself with national strategies and implemented a range of initiatives such as reducing packaging

Letter from the Chairman forge ahead in pursuit of innovation and breakthroughs. During materials and monitoring their utilisation. In addition starting with the year we acted in line with our corporate mission: Share the digitalising the devices that we use to deliver services we have

joy of shopping and extend the enjoyment of travel. We are fully carried out several comprehensive customer service improvement

committed to pursuing high-quality development and took the programmes and we have put in place a standardised customer

company’s ESG and sustainability practices to new heights. On service management system that features unified management

behalf of the Board of Directors of CTG DUTY-FREE I would like practices operational practices and standards.to express my heartfelt thanks to those who have been long-time

supporters of the company. Joining hands with stakeholders to drive green development

We are well aware that cooperation with stakeholders is

Responding to the government’s call and staying true to essential to our sustainability. In 2024 the company continued

our original aspiration to deepen cooperation with brands suppliers and consumers

We are aware at all times of our mission to serve national advocate a green philosophy among consumers and promote

strategies as evidenced by the concrete actions we have taken sustainability across the industry. We worked with brands to carry

to fulfil our responsibilities in this regard. In 2024 the company out environmental protection activities and marketed a rangecontinued to expand its strategic footprint in Hainan and contribute of ESG-certified products from suppliers to spread the “Greentowards local efforts to build Hainan into a free trade port. To this CTG DUTY-FREE” message. At the same time to respond to the

end we added greater variety to our offshore duty-free brands challenges presented by climate change the company reduced

further improved our services and cultivated a more convenient its carbon emissions and improved its climate adaptability through

shopping experience. At the same time the company actively initiatives such as green buildings and renewable energy. In

responded to the Belt and Road Initiative and executed its the fight against Typhoon Yagi we worked together to devise

overseas business plans in an orderly manner. We opened new science-based responses which demonstrated our ability to

duty-free stores in various countries – including Singapore Sri effectively safeguard against mitigate and recover from disasters

Lanka and Japan – to help Chinese brands go global. In addition and further improved the company’s climate resilience.we continued to promote rural revitalisation by providing assistance

for our two paired counties. Meanwhile our Xing Lv Yun Pin stores Implementing a people-oriented approach to ensure

are selling local distinctive agricultural products to increase the employee welfare

visibility of these goods in the national market and drive common Our people are the company’s most valuable assets. In 2024

prosperity. we continued to optimise systems that are designed to protect

employees’ rights and interests. We attach great importance to

Engaging in trusted business operations and providing our people’s physical and mental health and provide them with

excellent services a variety of training courses and career opportunities. During the

In 2024 we actively responded to President Xi’s call to turn policies year more than 830 key training programmes were implemented

into growth drivers. In line with our business philosophy which is to help employees grow. We adhere to a safety-focused approach

focused on engaging in trusted business operations and providing to production and operations to ensure that employees are

excellent services we pursued service innovation to promote the working in a safe and healthy environment. At the same time

upgrading of duty-free consumption and recognised outstanding the company actively promotes diversity and equal employment

stores in Sanya International Duty-Free Shopping Complex and is committed to creating an inclusive and diverse corporate

as demonstration sites for integrity and quality. We attached culture so that every employee can enjoy a sense of belonging and

importance to building an integrity-oriented business system and achievement.establishing a system of standards for services. In order to move inline with our global peers we put forward the “Do everything in our Joining hands to create a bright futurepower to ensure consumers are comfortable with shopping with The pursuit of sustainability is a long-term arduous task that weus globally” value proposition after consulting with our employees. will not be able to accomplish without our stakeholders’ support

Meanwhile we have put in place a service value system featuring and cooperation. Going forward in 2025 we will be presented with

eight categories of services and 98 standards as part of our effort both challenges and opportunities. As a competitive and influential

to build our shopping complexes – including Sanya International player in the global travel retail industry we will continue to work

Duty-Free Shopping Complex – into models for the domestic travel together with various parties to meet challenges drive prosperity

retail industry. and deepen sustainability practices. In this way we will strike a

balance in pursuing environmental social and economic results

Upholding integrity and pursuing innovation to empower respond to stakeholders’ expectations and work towards a better

sustainability future in which humans coexist with nature.We steadfastly focus on our main responsibilities and activities

and embrace technology to keep pace with the times. In 2024

the company adopted a pragmatic approach to technological

Mr. FAN Yunjun innovation. We increased R&D spend and leveraged emerging Mr. FAN Yunjuntechnologies such as 5G Internet of Things robots big data and Chairman

AR/VR to drive efficiency and digitalisation across the company. March 2025

Chairman At the same time the company is actively exploring opportunities06 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Key Sustainability Performance Metrics 07

Key Sustainability Performance Metrics

Market Social

First class 363000 16027 employees CNY21.77 million

First-class travel retailer in the world Selling over 363000 SKUs of goods There are 16027 total employees as at the end of We invested CNY21.77 million in operation safetyRanked No. 1 among travel retailers in the “Top 500 2024 organised 770 safety trainings for 32300 participantsMost Valuable Brands in China” rankings for the 21st

consecutive year 1524 well-known brands

About 1524 well-known brands in the world are in 100% training coverage CNY13.72 million

our duty-free shops

Ranked first more than 633700 training Spent CNY13.72 million in free aid in rural revitalization

hours implemented 15 assistance projects and helped raise

Ranked No.1 among China’s duty-free commodity CNY6.42 million in assistance funds

operators Nearly 200 million The employee training coverage reaches 100% with

Ranked No.1 among China’s travel retailers The company provides duty-free commodity services more than 633700 training hours in total.to nearly 200 million domestic and foreign tourists

every year 57.7% 38.68 million

Top two Females in employees account for 57.7% and 38.68 million registered cdf members

We operate the two largest duty-free shops in the world – females in the Board of Directors and the Supervisory

Haikou International Duty-Free Shopping Complex and Committee account for 36.36% females in the senior

Sanya International Duty-Free Shopping Complex managerial roles account for 25% and in middle

managerial roles account for 37.25%.Most comprehensive Environmental

With full coverage on on-board aircrafts borders

foreign ships passenger stations railway stations Green building certifications 31 certifications

diplomatists cruises and downtown channels we are

the travel retail operator with the complete types of Sanya International Duty-Free Shopping Complex Zone 31 stores/counters have received LEED certifications

duty-free shops and the largest number of retail stores C obtained 2-star Green Building certification; Haikou including 29 LEED Gold certifications and 2 LEED Sliver

in a single country worldwide International Duty-Free Shopping Complex (Block certifications

No.4) obtained 2-star Green Building pre-certification

60.53 million 0.04 tonnes of carbon

The company provided 60.53 million shopping bags dioxide equivalent

that meet environmental requirements in the past three Greenhouse gas emissions per square metre are 0.04

years and effectively reduced the generation of non- tonnes of carbon dioxide equivalent

degradable plastic waste

0.0162 tons of standard

coal/m2

0.0162 tons of standard coal/m2 of comprehensive

energy intensity

* Except otherwise specified all the above are data as of the end of 2024 or for the year 2024.08 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Honors and Awards 09

Honors and Awards1

ESG and CSR Awards Received in 2024: External Governance and Investor Relations Awards Received in 2024:

Included in 2024 ESG-Pioneer 100 Index Received the “Best Practices Received the “Best Practices in Investor Relations Management” award from the China Association for Public

01 of Central Enterprises sponsored by Case for Performance Companies. The company was also included in the Best Practices Cases in Investor Relations Management of Chinese the Bureau of Social Responsibility under 02 Presentations” award from the 08 Listed Companies

SASAC and Responsible Cloud Research China Association for Public

Institute Companies

The company was included in three lists Received the 2024

03 of the Sino-Securities Index ( 华证指数 ): “National May Day the “2024 Top 100 Outstanding ESG 04 Labour Award” from the

Performances among A-share Listed All-China Federation ofCompanies” (No. 33) the “2024 Top Trade Unions

20 A-share Listed Companies in terms

of Corporate Governance (G) BestPractices” (No. 3) and the “2024 Top

10 ESG Performances among A-share

Listed Companies in the Consumer Received the “2024 Selected into the “Grade A (Excellent) Companies” in theDiscretionary Industry” (No. 3) 05 Excellent ESG Cases 09 Information Disclosure Evaluation of the Shanghai Stock among Chinese Exchange for nine consecutive yearsEnterprises” award from the

China Enterprise Reform and

Development Society and

China Comment Magazine

under Xinhua News AgencyReceived the “2024 Best Practices Case for Received the “Best Practices Case forReceived the 2024

06 10 Boards of Directors of Listed Companies” Performance Presentations” from the China Evergreen Award award from the China Association for Public 11 Association for Public Companiesfor Sustainable Companies

Development and the

Internal Control from

Caijing Magazine

Ranked first in the ESG-V rating

07 list released by Ji’an Fintech

Corporation. The company wasalso included on the “S-socialrating” “G-supervisionmechanism rating” and “V-valuerating” (investment value) lists

1 Only included part of honors and awards here.10 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Honors and Awards 11

Brand Communication Awards Received in 2024:

Included on the “Best IR among Received the title of “Most Honoured Company” from the Ranked first in the selection of “China’s 500 Most Received the “2024 Whiskey Tourism Retailer”

12 Hong Kong Listed Companies 13 authoritative international financial magazine Institutional Investor (on 16 Valuable Brands of 2024” for the tourism service 17 title in the China category of the Icons of Whisky (A+H)” list. The company was

the only listed commercial retail both lists of Asia Pacific region and the Chinese Mainland) ranked sector by World Brand Lab awards released by the global authoritative whiskey

company in the ranking second in the list of “Best Board of Directors” (in the list covering industry publication Whisky Magazine

Asia Pacific and the Chinese Mainland) and ranked third in the list

of “Overall ESG Performance” (in the list covering the Chinese

Mainland)

Received the 2024 German Design Award

18 sponsored by the German Design CouncilReceived the “Best Capital Market Recognised among the

14 Communication Award” “Best Information 15 “Corporate GovernanceDisclosure Award” and “Best ESG Award” at Pioneers” in the KPMG

the 8th China IR Annual Awards ESG 50 AwardsReceived the title of “2024

19 Influential Enterprise in

Cultural Tourism Brand ValueCommunication” at the 10th

Green Development Forum ( 绿

色发展论坛 )12 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Company Overview 13

Statement of the Board of Directors Company Overview

In order to standardise the ESG management mechanism and During the reporting period the Strategy and Sustainability Company Overview

enhance the quality of ESG management CTG DUTY-FREE Committee of the Board of Directors was involved in assessing

has established an ESG governance structure with the Board of prioritising and managing ESG-related issues (including the

Directors having the highest responsibility and decision-making company’s business risk). In accordance with the Sustainability China Tourism Group Duty Free Corporation Limited (stock and other places in the Asia Pacific region and major domestic

authority for ESG matters. The Board of Directors is ultimately Report (for Trial Implementation) issued by the Shanghai Stock abbreviation: CTG DUTY-FREE; stock code: 601888.SH 01880. border ports Sanya International Duty-Free Shopping Complex

responsible for the company’s ESG strategy target management Exchange the committee performed a double-material ity HK) was listed on the Shanghai Stock Exchange in October 2009 Haikou International Duty-Free Shopping Complex and so on.and information disclosure. This responsibility includes reviewing assessment of sustainability-related topics and identified six topics (previously known as “China International Travel Service Co. China Duty Free Group has developed into a travel retailer with theand approving major decisions and improvement suggestions of both financial materiality and impact materiality and 15 topics Ltd.” the stock abbreviation “China CITS”) and was listed on the most complete types of duty-free shops and the largest number of

related to ESG. The Strategy and Sustainability Committee under of only impact materiality but not financial materiality with a view Main Board of the Hong Kong Stock Exchange in August 2022. retail stores in a single country in the world.the Board of Directors is the main committee responsible and to determining the prioritised topics. Financially material topics Our company mainly engages in duty-free business including the

its key responsibilities include: conducting research and advising include climate change energy utilisation product and service wholesale and retail of duty-free commodities such as fragrance The “courageous professional efficient cooperative innovative”

on the company’s ESG-related strategies policies and targets; security and quality employees supply chain security data luxury jewellery watch etc. Moreover the company is also corporate culture has been fostered during the company’s

overseeing and measuring progress towards ESG targets; security and customer privacy protection. After a careful review of involved in investing and developing commercial complexes with development over the years and it is with this culture that we face

reviewing the company’s sustainability reporting and ESG-related these topics the company developed corresponding targets and duty-free business as the core. challenges bravely and overcome difficulties. In recent years the

matters to ensure that they meet regulatory requirements and measures to manage the topics. Going forward we will update our company’s core functions and capabilities such as procurement

stakeholder expectations; and supporting the Board of Directors sustainability-related management strategy and implementation Over 40 years of rapid development the company has established operations channel expansion digitalisation and marketing have

to effectively perform ESG governance functions. To ensure our plans to reflect changes in the external environment and the long-term and stable cooperations with more than 1500 renowned been continuously enhanced. Our business has been steadily

ESG practices are systematic and standardised the company circumstances and facts specific to the company to continuously brands worldwide. It has set up over 170 duty-free shops in 28 transformed and upgraded achieving leapfrog development.establishes the ESG Leadership Group which is headed by the improve our sustainability capabilities. provinces cities autonomous regions and special administrative

Chairman of the company; the deputy head of it is the General regions in China and also Japan Singapore Cambodia Sri In the future our organisation will maintain the continuous stable

Manager; and its members include heads of departments. The ESG The Report provides detailed information on the progress and Lanka and other places covering airports on-board aircrafts and healthy growth of the duty-free business adhering to the

Leadership Group is responsible for managing and coordinating achievements regarding CTG DUTY-FREE’s ESG efforts in 2024 borders passenger stations railway stations foreign cruise supply concept of “customer-centered market-oriented” with “duty-freethe company’s ESG-related work which establishes and improves and has obtained approval from the Board of Directors on 28 diplomatists cruises and downtowns (offshore departures) in business” as the core to upgrade the value chain and “tourismthe company’s management system and operating mechanism March 2025. The Board of Directors and all directors of the these regions. Its main sales channels cover large domestic hub retail” as the extension to upgrade the industrial chain to build a

for ESG-related work and it also formulates ESG work plans and company hereby guarantee that the information presented in this airports in Beijing Shanghai Guangzhou Chengdu Hangzhou and more globally competitive world-class travel retailer.integrates the company’s development strategy image branding Report is free from any false records misleading statements or Hong Kong SAR international airports in Singapore Cambodia

and operations with ESG concepts. material omissions and undertake joint and several liabilities for the

authenticity accuracy and completeness of the information.Corporate Culture

Brand Core Corporate Operation

positioning Values Mission Concept

The representative of the Courageous Share the joy Customer-

duty-free industry in China professional efficient of shopping centered

The largest luxury operator cooperative and extend the market-oriented

in China innovative enjoyment of travel14 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Company Overview 15

Development Milestones

Over the past 40 years

the company has became the first-class travel retailer in the world:

19841995200420092014201820212023

The PRC State Council officially high-quality products We are selected as one of We are successfully listed - Our Sanya International - Acquired Sunrise We remained the No.1 travel Awarded the title of

authorised the establishment from China’s the franchised retailers for on the Shanghai Stock Duty-Free Complex Duty Free (Shanghai) retail operator in the world. Model for World-

of China Duty Free Company. established brands the 2008 Beijing Olympic Exchange. commenced its business Co. Ltd. class Specialised and

were released for trial Games. operation as the first travel Innovative Enterprise by

1989 sales in 10 duty-free retail complex in China. It - The first independent SASAC.stores. was the largest standalone cruise duty free shop

duty-free store in the world in China commenced

An office of China Duty Free in terms of sales area at its business operation.Corporate was established in that time.Hong Kong SAR to strengthen - Our first overseas

the overseas procurement downtown duty-free store

and distribution capability of commenced operation in

duty-free merchandise. Angkor Cambodia.

19901996200620112017202020222024

Our Beijing Downtown Our Heihe Border We entered the Our Sanya Downtown Acquired Sunrise Duty - Acquired Hainan - Listing on the Hong A dedicated project

Duty Free Shop Duty Free Store the international market Duty Free Store Free (China) Co. Ltd. Duty-free Co. Ltd. Kong Stock Exchange team was set up to

the first downtown first duty-free shop and established its first commenced its support China-chicduty-free store in on the border of sales terminal in the business operation - We became the - Grand opening of products’ “goingChina commenced its Asian countries was overseas market. as the first offshore world’s largest travel Haikou International global” efforts leading

business operation. established. duty-free store in retail operator; the Duty-Free Shopping the charge for this

Hainan province. membership system Complex the largest new trend in the travel

of cdf was officially single duty-free shop retail industry.launched marking a worldwide

historic breakthrough

in online and offline - Ranked as the world’s

interconnection largest travel retail

domestic operator for the three

and overseas consecutive years

interconnection.16 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Sustainability Milestones by Month in 2024 17

Sustainability Milestones

by Month in 2024

2 In March 4 In April 6 In May 8 In September

the Sanya Downtown Store held a we participated in the 4th China as the event’s Diamond sponsor we China Duty-Free International joined

launch ceremony for its volunteer International Consumer Products attended the 2024 TFWA Asia Pacific hands with the cdf Macau Grandservice brand “Jing Lan Hu Lv ( 净 Expo. In our elaborately designed Exhibition & Conference in Singapore Lisboa Palace Shop to attend thepavilion covering a total area of 600 third China (Macau) International蓝护绿 )” and a tree planting activity square metres we showcased the where we discussed the latest trends High-Quality Consumption Expo and

called “Dance with the Trees” in the latest trends in the industry and and opportunities facing the travel Hengqin World Bay Area Forum.Qingmei Port Mangrove Reserve attendees had the opportunity to see retail market. During the event they demonstrated

Yalong Bay Sanya. and experience popular and eye- the exquisite craftsmanship of well-

catching products and services. known watch brands and provided a

comprehensive interactive experience

using augmented reality (AR) and

artificial intelligence (AI).

1 In March 10 In November

the company’s cdf Boao Duty- as a Platinum partner the company

Free Shop carefully designed attended the Trinity Forum in Ho Chi

and developed a comprehensive Minh City Vietnam which was co-

service plan for the Boao Forum hosted by The Moodie Davitt Report

for Asia Annual Conference (an authoritative publisher in the global

2024 in Boao Hainan and duty-free and travel retail industry) ACI

successfully provided full high- World and ACI Asia-Pacific & Middle

quality support for the event. East.

3 In April 5 In May 7 In June 9 In the face of strong winds and heavy

rains brought by super typhoons

we took action in response to the in line with the relevant national the company integrated its platform Trami and Yagi our people worked

instructions of President Xi Jinping to strategic plan the company project teams and launched a new together and took appropriate disaster

build cdf Sanya International Duty- established a dedicated project team travel service platform called ctgo prevention and mitigation measures

Free Shopping Complex into a model for China-chic products that are which connects with six business lines and we carried out efficient disaster

for “trusted business operations and “going global” in order to accelerate of China Tourism Group (certificates recovery and reconstruction workexcellent services” with a focus on their progress and chart the path buses retail scenic spots hotels and showcasing our ability to respond and

enhancing related systems and our for this new trend in the travel retail credit cards) with the aim of providing adapt to climate risks.system of service standards. industry. better services and expanding our

market share in Hong Kong SAR.18 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Topic 1 19

Topic 1

Working Together to Promote Prosperity and ▍Enhancing accountability for assistance and engaging in more exchanges

Grow Our Footprint in Hainan In 2024 the company strengthened exchanges with and paid more visits to Menglian county and Ximeng county in Yunnan province to conduct on-site surveys on assistance programmes and identify areas to focus on in the future. The company carried out work in a down-

to-earth manner and successfully completed the assistance tasks set for the year. In accordance with the Agreement on Responsibilities for

CTG DUTY-FREE actively responds to United Nations (UN) Sustainable Development Assistance Work in 2024 we held four special Party committee meetings to assess the assistance work changes in assistance programmes

Goals (SDGs) 1 2 8 10 and 12 by extensively engaging in rural revitalisation with a view to and donations of school uniforms in 2024. Leaders from the company conducted on-site inspections to supervise the implementation of the

promoting common prosperity and promoting local prosperity in the place of operation. assistance programmes.▍Harnessing consumption to provide assistance and consolidate poverty alleviation achievements

In an effort to promote consumption the company has taken various measures such as setting up “Xing Lv Yun Pin” – a special area for

agricultural products at Sanya International Duty-Free Shopping Complex and Haikou International Duty-Free Shopping Complex and

establishing WeChat groups among commissioned officials to facilitate the sales of local agricultural products and encourage farmers to

participate in trade fairs. Harnessing our extensive customer resources we have also strived to promote the sale of local speciality products

across the country which helps improve the brand awareness of agricultural products from counties recently lifted out of poverty.CTG DUTY-FREE actively aligns itself with the national rural 2024 was a key year for comprehensively implementing the spirit of Trade unions at various levels across the company purchased

revitalisation strategy and leverages its travel retail channels. the 20th National Congress of the Communist Party of China and During the reporting period the

distinctive agricultural products worth more than CNYSpecial areas have been set up for agricultural products in our “Xing for thoroughly implementing the 14th Five-Year Plan. It also marked 1.88company continued to promote million from four counties recently lifted out of poverty includingLv Yun Pin” stores to expand market prospects for agricultural the 10th anniversary of Sanya International Duty-Free Shopping assistance through consumption Menglian county and Ximeng county.products from counties recently lifted out of poverty and empower Complex. In the past 10 years we have achieved fruitful results. and purchased and helped sell

farmers. During this time the company has successfully enhanced the distinctive agricultural products The company’s Xing Lv Yun Pin stores in Sanya and Haikou

impact of its brand and injected vitality into the travel retail market worth more than CNY5.95 million helped sell distinctive agricultural products worth more than

in Hainan. from the counties in order to help CNY2.15 million from 7 counties for which the group has been

residents recently lifted out of assigned to provide general assistance and 1 county for which

poverty increase their income and the group has been assigned to provide special assistance.Meeting Our Responsibilities in Rural Revitalisation consolidate poverty alleviation

Employees serving as temporary cadres in Menglian county and

achievements:

Ximeng county helped sell distinctive agricultural products worth

In l ine with the Opinions of the Central Committee of the In 2024 the company appointed employees to serve as temporary

Communist Party of China and the State Council on Effectively cadres in the two counties and these individuals helped implement more than CNY1.92 million.Promoting the Comprehensive Revitalisation of Rural Areas through 15 assistance programmes that are designed to revitalise localLearning and Applying the Experience of the “Thousand Villages industries the local talent pool the local culture local ecosystemsDemonstration and Ten Thousand Villages Renovation” Project and local organisations. During this effort the company worked

the company actively fulfils its social responsibilities and steadily closely with the two counties. In addition to allocating CNY279000

contributes towards rural revitalisation in the two paired counties. in paid assistance the company helped raise CNY6.42 million in Case study Fulfilling our responsibility while creating a new duty-free shopping experience

In 2024 the company delivered CNY13.72 million in free aid to assistance funds and provided training for 497 grassroots cadres

Menglian county and Ximeng county in Yunnan province marking a 84 champions in rural revitalisation and wealth creation and 562 On 27 December 2019 the Xing Lv Yun Pin stores for

total of CNY39.19 million in contributions over the past three years. technicians. distinctive agricultural products in Sanya International Duty-

Free Shopping Complex opened for business. Based on the

Data for 2024 local characteristics of 7 cities and counties in 4 provinces

for which the group has been assigned to provide assistance

(Ximeng county Menglian county Shangri-La city and Deqin

county in Yunnan province; Linxia city in Gansu province;

Delivered CNY13.72 million Helped raise CNY6.42 million in Bazhou in Xinjiang province; and Lichuan county in Jiangxi

province) the company tentatively launched products under 9

in free aid assistance funds brands across 8 categories such as ice wine beef jerky and

honey which have been adapted to the tastes of consumers in

the Duty-Free Shopping Complex. The company continues to

Provided training for Provided training for Provided training for explore and select high-quality goods with ethnic features from

these counties. By leveraging duty-free stores to showcase

497 grassroots 84 champions in rural 562 technicians items the company is working to promote locally distinctive

cadres revitalisation and wealth goods in the nationwide market while also helping farmers Xing Lv Yun Pin store in Sanya International

increase their income.creation Duty-Free Shopping Complex

▼20 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Topic 1 21

▍Promoting the High-Quality Development of Rural Industries ▍Improving living and working conditions to forge beautiful rural areas

In recent years the company has increased support for rural park. In 2024 the company took action to further improve living

Assistance in the areas by helping them take advantage of local cultural and tourism facilities and sewage treatment in the Likan area.Cultural Sector resources. For example the company has helped carry out a

programme to develop a pastoral leisure resort in the Likan area of The company has engaged with local residents in the area to help

Mengsuo village Mengsuo town Ximeng county. The project aims increase their income. First the company employs local residents

The company is dedicated to helping Menglian and Ximeng counties maintain their unique ethnic minority cultures while also exploring the

path to rural revitalisation through the development of the cultural sector. to develop a cultural and tourism resort that integrates sightseeing in construction and operations. Second the company provides

fitness entertainment folklore and local customs to promote the guidance for villagers to start their businesses. For example

development of relevant industries and increase local residents’ trolleys are available for free and villagers can use them to sell

income. Since 2022 we have spent CNY13.48 million on Phases snacks and handicrafts. Third the village can access new sources

I and II of the project. So far a leisure and entertainment area has of income by using vacant houses and land to participate in the

been built which includes a food plaza a beach and park a fishing programme. The project is expected to benefit 354 residents from

area a pond with an enhanced landscape a swimming pool 71 households and deliver an increase of more than CNY7000 in

connected with mountain springs a camping site and a karting per capita income.Akha Swing: a wooden swing for A park used for fishing by Hani A Hani ethnic restaurant in Aka Stage: an event venue for

folk activities used by Hani ethnic ethnic minorities in Yongqian old Yongqian old village decorated Hani ethnic minorities in Yongqian

minorities in Yongqian old village village for the Eni Juema Banquet old village

Assistance for

Rural Industry

We strive to use innovative business models to cultivate new local production and operations management and also improvedindustries in rural areas. Under the government’s “One Industry Comparison of before and after the Likan Leisure Resort was built The children’s beachsand park with waterwheelsfarming techniques. At the same time we have focused onin One County” strategy we have been focusing on the avocado weaknesses in the development of village-level collectively owned

industry in Menglian County carrying out assistance programmes enterprises. To this end we invested CNY697000 to help build

focusing on talent pools the construction of bases and trademark avocado sorting plants and promote industrial transformation and

registration to boost the local avocado industry to empower local upgrading which benefited 1720 residents from 448 households.farmers increase their income and reach rural revitalisation. CTG In addition the company also attached importance to branding as

DUTY-FREE has invested more than CNY2.75 million in assistance

to help develop the local avocado industry in Menglian county and evidenced by its investment of CNY1.06 million to implement a Five

consolidate poverty alleviation achievements since 2020. Modernisations programme. Through a number of comprehensive

init iatives including shooting promotional videos building

In terms of talent development CTG DUTY-FREE has spent CNY1 observation sites and enhancing branding efforts the company

million in assistance funds implementing programmes designed has helped improve the popularity of the Menglian avocado which

to train skilled workers for the avocado industry and building an has been included in the national list of famous special and new

exchange and training centre where a series of trainings have been agricultural products. In 2024 the first Menglian avocado festival

delivered for a total of 4575 participants. Through these efforts was held. These measures have played an important role in The swimming pool The Love in Ximeng activity during the An aerial view of the camping site and the

we have helped improve the scientific and technological aspects of promoting the development of Menglian’s avocado industry. Double Seventh Festival children’s karting park

A training session to improve farmers’ A training session to improve farmers’ An on-site training session on avocado growing

techniques for growing avocados techniques for growing avocados techniques

An avocado sorting plant An avocado sorting plant Display boards at the avocado base in Mangjie

village Nayun town

▼▼▼

▼▼▼

▼▼▼

▼▼

▼ ▼ ▼ ▼22 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Topic 1 23

With a Dual Focus Co-Creating a New Development Blueprint Leveraging brands services and creativity the company has been able to steadily introduce premium-brand flagship stores that offer a

unique shopping experience and set an example for innovation in duty-free consumption in China.Adhering to the business philosophy of “engaging in trusted business operations and providing excellent services” taking advantage of

the favourable policies for Hainan Free Trade Port we have opened six offshore duty-free stores in Haikou Sanya and Boao striking a

geographical balance in an effort to fully cover visitors leaving Hainan by “plane ship or train”. Moreover Sanya International Duty-Free

Shopping Complex and Haikou International Duty-Free Shopping Complex – located at the southern end and northern end of Hainan Islandrespectively – are strongholds in our Hainan network and act as integrated tourism retailers with a dual focus on “duty-free retail and culturaltourism” with duty-free business as the foundation.The company is also committed to driving the upgrading of the tourism industry.Aligning with shared development goals and leveraging its comprehensive

industrial chain advantages it has participated in the China InternationalConsumer Products Expo for four consecutive years establishing a “CDF NewConsumption Scenarios” exhibition zone at Haikou International Duty-Free

Shopping Complex to showcase its industry leadership promote innovative

Haikou Riyue Square consumption models and unleash consumer potential. Concurrently the

company’s Hainan stores launched promotional activities leveraging the expo’s

spill-over effects to expand and boost the tourism retail market.Haikou Meilan We are committed to continuously satisfying consumers’ growing demands

Haikou International International Airport and pursuit of a better life. To this end we are steadily introducing more brands

Duty-Free Shopping Complex and better services and providing a more convenient and pleasurable retail

experience to Hainan’s offshore duty-free consumers with a view to offering

travellers the joy of “seeing the world and shopping at cdf”.Qionghai Boao

CDFG Sanya Duty-Free Store

Airport Duty-Free Store

-re

s]

Sanya International ow

Duty-Free Shopping Complex [L24 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Topic 1 25

Sailing with Momentum: A Decade of Excellence ▍A Decade of Innovation: Pioneering Premium ServicesSupported by Hainan’s offshore duty-free policy and measures supporting domestic In 2024 the complex launched the “Integrity in Operations Beyond physical amenities like luggage storage wheelchair rentals Sanya International Duty-Freeconsumption Sanya International Duty-Free Shopping Complex – under the company Excellence in Service” pilot initiative under which it established a medicine kits electronic navigation systems AR navigation and

Shopping Complex welcome over– celebrated one decade of successful operations on 1 September 2024. As a leader service framework that includes the ethos “Global Shopping with payment services the complex is steadily promoting and advancingin China’s tourism retail sector the company has upheld the principles of “Integrity in 70 Care Dedicated to You” eight service pillars and 98 operational online platforms the member experience tiered membership million visitors from aroundOperations Excellence in Service” enabling the complex to welcome over 70 million visitors standards. The complex strives to provide customers with an systems and large model/AI-driven solutions in order to deliver

from around the world. This success has significantly redirected overseas consumption the world elegant and comfortable environment sincere and caring services seamless one-stop luxury experiences.back to China and bolstered Hainan’s duty-free market. and convenient and efficient experiences and it is committed

to building a service benchmark for the domestic tourism retail

As a key contributor to the Hainan Free Trade Port the complex prioritises customer-centric

industry.innovation with a view to enhancing the shopping environment and upholding service

quality. By introducing diverse international and domestic brands it offers consumers

seamless and luxurious experiences elevating its competitiveness in the domestic market ▍A Decade Ahead: Celebrating a New Chapter

and supporting national economic policies.For its 10th anniversary the complex hosted high-profile events to Looking ahead over the next decade the complex will continue to

give back to consumers and various segments of society. Under pursue its “Integrity in Operations Excellence in Service” missionthe theme “Journey of a Thousand Miles Embracing the Light with a view to building an organisation that promotes international▍A Decade Retrospective: Building a Duty-Free Benchmark of Time” we staged various activities such as “Ten Lucky Ones consumption and blends luxury convenience and personalisation.Free to Order” “Ten Celebrities in the Store” “Ten InvitationsThe complex’s journey has included both challenges and opportunities: to a Charter Flight Experience” and “One Billion Cash CouponDelivery” to forge a deeper bond between the complex and

consumers. Meanwhile luxury brand exhibitions and galas were

held to showcase the company’s premium image blending visual

2009 2011 splendour with world-class service.

In 2009 CDF opened Sanya’s first In 2011 the implementation of Hainan’s offshore

downtown duty-free store achieving duty-free policy propelled the store into national

a “100-day miracle” and making duty- leadership.free retail history.

2014

In 2014 Phase 1 of the complex debuted as the world’s largest standalone duty-free store featuring a very

large scale numerous brands and advanced services and marking China’s entry into the global large-scale

duty-free retail market.Subsequently the opening of Phase 2 and the operation of the Global Beauty Plaza in Zone C further

promoted the complex’s renewal and upgrading.

20222024

I n 2022 P res iden t X i By 2024 when t he

Jinping’s on-site inspection comp lex ce lebra ted

affirmed its achievements its 10th anniversary it

i n s p i r i n g c o n t i n u o u s hosted more than 850

s e r v i c e i n n o v a t i o n . internationally famous

The comp lex ac t i ve l y brands and hundreds

responded to President of thousands of goods

X i ’s ca l l cont inuous ly so l id i fy ing i ts status

innovated services and as a Hainan tour ism

improved the shopping landmark.experience.26 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Topic 2 27

Topic 2

Pursuing a Green Future and Carrying Out So far the company’s progress in applying green building measures for certain key projects is as follows:

Excellent ESG Initiatives Haikou International Duty-Free

Shopping Complex (Block No.1) Haikou International Duty-

Free Shopping Complex

CTG DUTY-FREE is actively responding to UN SDGs 9 11 12 and 13 by focusing green * 2-star Green Building (Block No.5)

HAIKOU INTERNATIONAL DUTY FREE SHOPPING COMPLEX

development developing resilient buildings and implementing energy saving and carbon pre-certification cdf海口国际免税城

Haikou China * LEED Gold certification

reduction throughout their life cycle as active responses to climate change risk. HAS FULFILLED THE REQUIREMENTS OF THE LEED GREEN BUILDING RATING SYSTEM CERTIFICATION ESTABLISHED * LEED Gold certification application BY THE U.S. GREEN BUILDING COUNCIL AND VERIFIED BY GREEN BUSINESS CERTIFICATION INC.LEED v4

BUILDING DESIGN AND CONSTRUCTION: CORE AND SHELL DEVELOPMENT

in progress

March 2023

PETER TEMPLETON PRESIDENT & CEO

U.S. GREEN BUILDING COUNCIL & GREEN BUSINESS CERTIFICATION INC.Sanya International Duty-Free Shopping Complex Zone C

* 2-star Green Building * LEED Gold certification

certification

To address growing challenges from climate change and environmental issues green development has become a global consensus in SANYA INTERNATIONAL DUTY FREE SHOPPING COMPLEX BLOCK C三亚国际免税城C区

Sanya China

fulfilling the mission of the new era. We are committed to pursuing a green future and taking productive practical actions to incorporate ESG HAS FULFILLED THE REQUIREMENTS OF THE LEED GREEN BUILDING RATING SYSTEM CERTIFICATION ESTABLISHED BY THE U.S. GREEN BUILDING COUNCIL AND VERIFIED BY GREEN BUSINESS CERTIFICATION INC.LEED v4

BUILDING DESIGN AND CONSTRUCTION: CORE AND SHELL DEVELOPMENT

concepts into our business.October 2023

Conserving Energy and Reducing Carbon throughout the Entire Building Process PETER TEMPLETON PRESIDENT & CEOU.S. GREEN BUILDING COUNCIL & GREEN BUSINESS CERTIFICATION INC.The company is committed to implementing the national Green Building Action Plan and strictly implements energy-saving standards for

newly constructed buildings. It has also formulated the “White Paper on Low-Carbon Planning for Construction Projects” in order to integrate Haikou International Duty-Free

the concept of sustainable development into every link of the design construction and operation of buildings and ensure the quality of green Shopping Complex (Block No.4)

buildings throughout their life cycle. We extensively engage in resource conservation environmental protection and pollution reduction to * 2-star Green Building pre-

make our buildings efficient healthy and liveable while realising harmonious coexistence nature. certification

Haikou International Duty-Free

Shopping Complex (Block No.6)

* Plan to apply for 2-star Green

Building certification

In 2024 China Duty-Free (Sanya)

Investment Development Co.Ltd. was recognised as a “Near-Zero Carbon Pioneer in CoolingCooperation”. Sanya International Duty-Free Shopping

Complex Phase 1 Plot 2 Hotel Project

* 2-star Green Building pre-certification

application in progress

Sanya International Duty-Free

Shopping Complex Phase 3

Plans to apply for

* 2-star Green Building

* LEED Platinum

* WELL Platinum

* SITE Platinum certifications28 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Topic 2 29

▍Green Planning BIM has been adopted in the design and construction process and Plot 5 provides

the project will feature prefabricated buildings and fine decorations.Based on the low-carbon technologies applied at Haikou International Duty- adopted that meet the standards for fabricated buildings and the standards Various intelligent high efficiency and energy-saving capabilities such 8800 cubic metres

Free Shopping Complex’s project plots and with reference to low-carbon for fully-furnished delivery. The smart and effective technical measures taken as building shape optimisation building space utilisation building of reclaimed water throughout the year

experience gained through other commercial projects the company has include optimising the shape of the building envelope system integrating insulation materials natural lighting design sponge cities rainwaterprepared the “Low-Carbon Technology Guidelines for CDFG’s Investment the design of the lighting and shading system in the atrium and adopting recycling garbage classification charging piles solar energy smart Plot 1 reclaimsin Tourism Retail Complexes (Commercial Hotel and Office Complexes)” energy-efficient heating ventilation and air conditioning (HVAC) equipment lighting convenient automated payment and smart parking will be

(hereinafter referred to as the “Low-Carbon Technology Guidelines”) which temperature humidity and air quality monitoring systems the concept of adopted to reduce the buildings’ energy consumption and ensure 12000 cubic metres

designed to help reduce the carbon emissions of buildings and promote sponge cities primary wearable sensing devices (WSDs) irrigation with compliance with low-carbon standards. For example the reclaimed of water throughout the year

energy efficiency. Going forward the company will refer to these guidelines reclaimed municipal wastewater soundproofed construction materials and

when developing projects that involve the use of low-carbon technologies. smart system integration management. With these measures the Project water system of Haikou International Duty-Free Shopping Complex

was able to satisfy the 2-star Green Building standards in the five areas of Plot 5 provides 8800 cubic metres of reclaimed water throughout the

Sanya International Duty-Free Shopping Complex Zone C Commercial Project safety and durability health and comfortableness convenience resource year which can be used for outdoor landscaping.has adhered to the philosophy of resource conservation and environmental conservation and friendly living spaces. Through the application of these

protection since its planning and design stage focus on constructing high- technologies the Project met international standards for sustainable site Meanwhile the reclaimed water system of Haikou International Duty-

quality green buildings that support sustainable development with reference selection indoor and outdoor water efficiency energy consumption reduction Free Shopping Complex Plot 1 reclaims 12000 cubic metres of

to domestic and international green building standards. During the Project’s waste management and indoor environmental quality among other areas. water throughout the year for outdoor landscaping and waterscape

design stage a number of green and energy-saving technologies were The Project has obtained 2-star Green Building certification. replenishment. The water used for the outdoor landscaping area

(covering about 9000 square metres) is entirely collected by the

reclaimed water system. The installation of the reclaimed water

equipment was completed in 2024 and it will be put into use in 2025.▍Carbon Footprint ManagementThe company strives to meet the goals of carbon peaking and carbon neutrality. To this end we are following the “Action Plan for CarbonPeaking and Carbon Neutrality” and we plan to prioritise carbon emissions accounting as part of our effort to identify the company’s carbon

footprint. We are also exploring new carbon reduction solutions that harness technological breakthroughs and innovations with the goal

of optimising our energy structure and using more clean energy. We fully leverage the market’s role in resource allocation and actively

participate in carbon trading to reduce costs related to carbon reduction.Under the direction of the “Low-Carbon Technology Guidelines” the

company incorporates green building materials as much as possible

during project construction. Suppliers of equipment and materials

(such as cables air conditioners refrigerators diesel generators

The design of the Sanya International domestic water supply pumps air conditioning chilled water pumps

Duty-Free Shopping Complex Phase oil separators etc.) for Sanya International Duty-Free Shopping

3 Project adopts a number of energy- Complex Zone C project are all required to obtain the Certificate for

saving green technologies such as a Environmental Management System Certification and among which

photovoltaic pool roof a sunken green cables already obtained carbon footprint assessment report. Props

plaza design a waterscape recycling suppliers for Haikou International Duty-Free Shopping Complex

system solar photothermal technology Sanya International Duty-Free Shopping Complex and various

a special acoustic design a fresh air airport comprehensive duty-free stores are also required to obtainfiltration system low-volatility coatings environmental green certifications such as “Certificate for Certification ofenvironmentally-friendly refrigerants a The coloured glaze dome of the atrium has been effectively Automatic remote metering system integrated China Environmental Labelling Product” “Environmental Managementhigh-performance and multi-split variable designed in terms of heat insulation and daylighting (photo of energy management system and air quality System Certification” “ISO14001” and “FSC Certification” etc.monitoring system (photo of Sanya International

frequency system and fresh-air heat Sanya International Duty-Free Shopping Complex Zone C) Duty-Free Shopping Complex Zone C)

recovery technology. In addition to these The Haikou International Duty-Free Shopping Complex Plot 5 Project

energy conservation technologies the actively promotes the application of new technologies and in March

Project also boasts an optimised structural 2023 won the Certificate for the Second Rank Achievement in Green

design and it has adopted a series of Construction issued by the China Construction Industry Association for

smart and efficient measures such as its construction process control efforts.energy-efficient equipment green energy-sav ing bui ld ing mater ia ls resource In terms of low-carbon planning the company prepared the “White Paper on Low-Carbon Planning of Haikou International Duty-Freerecycling and renewable resource use (the Shopping Complex” for the six plots of the Project. According to the company’s calculations the carbon emissions from Haikou International

“four innovative technologies”) as well as Duty-Free Shopping Complex Plot 1 and Haikou International Duty-Free Shopping Complex Plot 4 are approaching the standards for low-

smart system integration management carbon buildings. After all plots are completed the Project will be considered a pioneer among low carbon buildings. In the future the

to comprehensively promote carbon Curtain of Sanya International Duty-Free Light coloured pavement and sunshade structures in an outdoor

Shopping Complex Zone C square (photo of Sanya International Duty-Free Shopping Complex company will use the low-carbon practices adopted for the Haikou International Duty-Free Shopping Complex Project in other projects so

reduction at the source. Zone C) as to deliver green messages and continuously explore low-carbon development initiatives.▼▼

▼ ▼30 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Topic 2 31

▍Green Construction Management ▍Green and Energy-Saving Operations

The company also implements green and During the construction process the company adopts the following management measures to reduce Aspect Low Carbon & Environmental Protection Measures

low-carbon standards during construction the impact on the environment and natural resources: Sanya International Duty-Free

Shopping Complex Project The building’s energy-efficient design complies with national standards. The design of the building’s processes to strengthen its green building shape orientation the distance between buildings and window-to-wall ratio among other aspects werecredentials. The “four conservations and one optimised to reduce overall energy consumption.protection” principles (energy conservation The facade curtain walls of Sanya International Duty-Free Shopping Complex Zone C adopt tempered

land conservation water conservation 1 Adoption of an environmentally-friendly architectural design and related materials to Based on the operational data of Sanya double-silver ultra-white Low-E hollow glass structures and double-silver coating technology to effectively

material conservation and environmental reduce any negative impact on the environment. International Duty-Free Shopping Complex prevent heat waves from penetrating inside which efficiently improves the performance of the building’s

thermal insulation without affecting the light transmission rate needed to keep the room bright.protection) are applied throughout the whole 2 A preference for reusable materials and equipment such as stainless steel glass Phase 1 and Phase 2 Phase 1 has

process from planning development design The Low-E coating helps reflect outdoor thermal radiation prevents heat from entering the room and products etc. reduced energy use by more than 15% reduces the energy consumed by air conditioning. For buildings in climate zones with hot summers and

and construction through to operations for warm winters this coating technology helps improve energy-saving efficiency and blocks most ultraviolet

properties and commercial complex projects 3 Plastic material management of avoiding the use of one-off plastic products. If plastic and Phase 2 has reduced energy use by rays reducing the damage inflicted by ultraviolet rays on indoor furniture floors and fabrics and extending

invested in and constructed by the company. materials are unavoidable choose recyclable and biodegradable ones and fully

Energy

more than 18%. consumption their useful lives.Measures are taken to ensure safe construction recycle and reuse them by reducing damage and waste. Plastic waste resulting from Intelligent elevator management: The escalators’ intelligent speed monitoring capabilities and the elevator

sites a clean environment on time delivery and construction is collected and disposed of by its type to avoid environmental pollution. group control system reduce power consumption.sufficient funds. Construction units are required Implementation of environmental protection publicity and education to enhance the Intelligent fresh air control system: Fresh air is circulated into the buildings during transition seasons. 4

to prepare comprehensive special schemes Minimum fresh air volumes are used to operate the system when the outdoor temperature is higher than public’s awareness and knowledge of environmental protection.on green construction beginning at the design the indoor temperature in summer.stage and establish effective support systems The building’s intelligent lighting considers the time of the day and scenarios to reduce electricity and

to ensure that green construction is fulfilled as energy consumption.scheduled. The building has been outfitted with a variety of intelligent control systems including intelligent office

capabilities energy efficiency capabilities intelligent lighting intelligent monitoring access control systems

and vehicle management systems.For the construction of the company’s projects CDF Investment Development requires that a green construction programme be formulated. The Adopting rainwater storage system and permeable pavement in the building’s “sponge city”: The

programme includes site environmental protection comprehensive utilisation of materials and resources energy conservation and comprehensive permeable pavement has been used to efficiently penetrate ground rainwater which reduces pressure on

utilisation of energy water conservation and comprehensive utilisation of water resources land conservation and construction land protection the drainage system and maintains the urban soil’s ecological balance.construction waste management noise pollution control light pollution control indoor environmental pollution control and other measures. Multiple Sewage and wastewater classification treatment: Sewage is discharged into the municipal network after

green technologies and measures have been adopted for these Projects such as the primary use of local and recycled building materials advanced being treated by the outdoor septic tank and kitchen sewage is discharged into the municipal is also Water

construction techniques tool stereotyping bare soil coverage for dust suppression water-sprinkling devices on the site to control dust recovery network after being treated by oil separators twice.and soil

and comprehensive utilisation of construction waste reducing resource consumption and environmental pollution throughout all stages of the resources Phase 2 also equipped with a river revetment and plant maintenance capabilities which enable the building to meet floodwater discharge requirements thereby ensuring a stable riverside and preventing

construction process to protect the natural surroundings to the largest extent. During the construction process CDF Investment Development and water and soil erosion.its affiliates require the supervisory party to supervise the construction process to ensure that green measures are implemented strictly in accordance We perform disinfection and algae-killing treatments on fountain water on a regular basis and remove

with relevant national provincial and municipal regulations. The supervisory party is also required to perform robust and timely inspections during the and recycle sediment at the bottom of the pool by sewage suction pump to extend the fountain water

construction process to ensure that green construction measures are fully implemented. replacement cycle and lower the frequency of water change.The high-efficiency oil fume purifier has been designed to the highest emission standard of 1.0mg/m3

which is stricter than the national standard for environmental protection and emissions in China. These

measures effectively improve the park’s air quality.Clean air The building layout distance between buildings and ventilation placement have been optimised to improve on-site air circulation.Phase 2 is equipped with an intelligent garage ventilation system. The induced ventilation system in the

underground garage automatically controls the operation of the garage fan according to the carbon

monoxide concentration which improves air quality in the garage.Noise Noise and vibration control: Fans pumps and other equipment emit low noise and shock absorption

management devices have been deployed in relevant locations on the premises.Haikou International Duty-Free Reducing the heat The project reduces ground parking spaces uses light-coloured paving materials and uses light-

Shopping Complex Project island effect coloured materials or highly reflective coatings for roofing materials as much as possible.Sanya International Duty-Free Shopping Complex Phase 1 Plot 2 Hotel Project takes advantage of energy-efficient processes and construction High efficiency water- The project uses all Grade I sanitary ware to achieve high-efficiency water savings and the cooling

techniques to reduce particulate and waste discharge at construction sites. During the construction process six types of high-quality innovative saving appliances tower’s water flow rate meets LEED requirements.building materials (i.e. light-transmitting insulating glass expanded perlite concrete environmentally friendly latex paint low-loss transformers variable Rainwater recycling All on-site rainwater will be collected treated and reused for greening irrigation and road washing to save fresh water.frequency fans and water pump equipment) were used for energy-saving and environmental protection purposes.A comprehensive energy consumption simulation has been conducted based on the design of the

Energy efficiency project envelope and the HVAC system the equipment’s energy efficiency and the indoor lighting power

optimisation density. According to the simulation’s calculations the designed building will reduce costs by 16.3%

annually compared to the ASHRAE benchmark building.High efficiency air The project adopts G4+F8 medium- and high-efficiency filtration devices to guarantee indoor air quality.treatment In addition to basic ventilation the volume of fresh air will be increased by 30% to avoid insufficient fresh air when there are many people in the building.In addition to basic commissioning the project will also ensure that an efficient operational strategy

Enhanced is maintained for the energy consumption system and that timely support is provided for operations

commissioning through functional testing and problem documentation of HVAC the HVAC control system and the

lighting system.Full life cycle The project has conducted a full life cycle assessment (LCA) of the new building to calculate the

assessment percentage reduction in various environmental impact indicators of the new building compared to the benchmark building.32 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Topic 2 33

The Haikou International Duty-Free Shopping Complex Project and Sanya International Duty-Free Shopping Complex Zone C are equipped We will increase the use of renewable energy including by expanding the Main features of the project:

with building automation systems air quality monitoring systems intelligent lighting systems and other intelligent control systems. During use of solar photovoltaic technology. China Duty-Free (Haikou) Investment

their operating periods the following measures have been taken to promote green and low-carbon operations: Development Co. Ltd. has signed strategic cooperation agreements with

photovoltaic manufacturers and has devised an overall plan under which Low-carbon image: Integrated design:

photovoltaic technology will be installed in stages for the Haikou International

Duty-Free Shopping Complex Project. By the end of 2024 the intelligent Establishing a photovoltaic carport Integrating photovoltaic systems

optical storage and charging microgrid system of the Haikou International system in the charging space at energy storage systems and

Duty-Free Shopping Complex Plot 1 Project was still under construction. The the main entrance and exit areas of charging pile power distribution

Making full use of the building automation system taking into Using the air quality monitoring system to perform real-time

account the actual operating needs of the projects to optimise monitoring of indoor air quality (such as analysing carbon system consists of a photovoltaic carport system an energy storage system

the park. systems as necessary to realiseintegrated “generation – storage –operating strategies and realising intelligent group control of cold dioxide PM and other indicators) and enabling intelligent and a charging/discharging system. According to the plan for this project 2.5 we will build a photovoltaic carport system with a capacity of 275.55kW an charging” capabilities.station equipment. Frequency conversion technology is also regulation of the fresh air system and air purification

applied to the water system and air system to comprehensively equipment to ensure that indoor air quality meets relevant energy storage system with a capacity of 100kW/215kWh and five 360kW

reduce the energy consumed by the transmission and distribution standards. charging pile systems and one 480kW charging pile system.system of the refrigerator equipment and the operation of air

conditioning terminals so as to conserve energy and reduce Economic effectiveness: Intelligent control:

consumption and carbon emissions.Through photovo l ta ic power With ECC an intelligent energy

generation we can achieve the management system we can

goal of self-generation for self- engage in energy management

consumption in an automated and orderly dispatching covering

manner and feed any surplus photovoltaics energy storage

electricity into the grid or consume charging piles (clusters) and the

Using the intelligent lighting system which features refined The projects are also equipped with Intelligent Operations all the self-generated electricity power grid. In this way we will

lighting design and diversified lighting styles to exercise Centres (IOCs) which harness the Internet of Things effectively reducing power costs. digital ise our energy use and

control of landscape lighting by zone point location system passenger flow perception intelligent security solutions harness the Internet of Things to

time interval and mode and create multiple lighting scenes energy consumption analysis and ticketing services among connect multiple systems.while saving energy consumed by the lighting system. other tools to facilitate low-carbon operations.Mono- Photovoltaic String 480kW Split-type Integrated

crystalline Carport Inverter Charging Pile Energy Storage

Single-sided System

Solar Module

550Wp 100kW/215kWh

Combatting the Typhoon with Determination and United Efforts

In 2024 typhoons such as Super Typhoon Yagi and Severe During the pre-warning for Super Typhoon Yagi and the duration

Typhoon Bebinca landed in China bringing unprecedented of its landfall the company’s director and general manager Mr.challenges to our business operations. However in fighting against CHANG Zhujun visited the front line personally and organised all

the storms we demonstrated our strong coping capacity and units in Hainan to quickly establish an emergency headquarters to

climate adaptability and we worked together with determination to combat the typhoon. Specifically he organised five coordination

implement scientific disaster prevention and mitigation measures video calls to track the dynamics of the typhoon in real time

and conduct efficient post-disaster recovery and reconstruction. issue typhoon prevention guidelines and safety tips and gain a

full understanding of Yagi’s impact on all units. He also deployed

In order to effectively mitigate damage caused by typhoons and targeted defence measures and closely l iaised with local

ensure the safety of the company’s properties and employees emergency departments to set up an efficient and unified command

In 2024 the company conducted energy-saving renovations for existing buildings the company and its stores have formulated the “Comprehensive system. Haikou International Duty-Free Shopping Complex Riyue Case study through various initiatives Emergency Plan” the “Emergency Plan for Typhoon Mitigation (and Plaza Duty-Free Shop Sanya International Duty-Free ShoppingFlood Control” the “Emergency Plan for Typhoon Prevention of Complex Meilan Airport Duty-Free Shop China Duty-Free (Haikou)Sanya International Duty-Free Shopping Complex” the “Emergency Investment Development Co. Ltd. and other units set up their ownThe company actively promoted the application of energy-saving equipment in the buildings so as to further optimise resource Management Regulations” and other relevant requirements. respective typhoon and flood prevention working groups which

equipment by installing energy-saving lighting air conditioners use and make the environment more comfortable. CDF Investment Development also requires each project under organised Party-member management and employees to patrolfans and other equipment in all duty-free complexes and stores construction to prepare a “Construction Plan for Flood Typhoon key areas such as duty-free stores warehouses and projectswhile eliminating equipment with high energy consumption In August 2024 based on Hainan province’s policy of cancelling and Lightning Prevention”. All affiliated enterprises are required under construction. They also added wind barriers and stored

installing time control switches and imposing strict limits on the difference between peak and valley time-of-use (TOU) to pay close attention to and strengthen monitoring and alerts sufficient sandbags rain gear and other emergency supplies to

equipment usage. We also cleaned air conditioners on a regular electricity prices Sanya International Duty-Free Shopping for extreme weather events such as typhoons. They must devise strengthen vulnerable areas and transferred goods to safe areas to

basis to improve their energy efficiency. Complex Phase 2 carried out technical transformation of its detailed work plans build robust defences and prepare to prevent minimise the impact of typhoons.existing ice storage system. Specifically we renovated the and address typhoons such as Super Typhoon Yagi Severe

Haikou International Duty-Free Shopping Complex and Sanya air-conditioning circulation pipelines to directly connect the Typhoon Bebinca and Severe Tropical Storm Pulasan so as to

International Duty-Free Shopping Complex Zone C separately refrigerators with the terminals which reduces pipeline loss keep our people and properties safe from harm.measured power consumption water consumption and natural improves the thermal efficiency of the refrigeration system and

gas consumption and used the integrated building management lowers electricity costs. Statistics show that the average daily

system (IBMS) to compile monthly carbon emission statistics energy savings resulting from this renovation amount to 2300

and engage in related analysis. kWh and annual electricity savings are about 690 MWh.The Sanya International Duty-Free Shopping Complex Building In addition Sanya International Duty-Free Shopping Complex

A and Building B Renovation Project upgraded the buildings’ Phase 2 has replaced the lighting equipment in its basement

control and energy management system to improve the comfort parking lot logistics corridor and other public areas with LED

safety energy efficiency and management efficiency of the lamps which are expected to save 10.5 MWh of electricity

buildings. Using the intelligent building management system annually.we are able to exercise centralised control over and coordinate Night patrol at the Riyue Plaza Reinforcement of doors and Reinforcement of doors and Reinforcement of doors and

Duty-Free Shop windows at the Riyue Plaza windows at the Meilan Airport windows at the Boao Duty-

Duty-Free Shop Duty-Free Shop Free Store

▼ ▼ ▼ ▼34 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Topic 2 35

In the aftermath of the typhoons all units of the company in Hainan “paid equal attention to two aspects” (“两手抓”) namely resumption Green Alliance: Joining Hands with Brands to Open a New Chapter

of work and production and post-disaster recovery. To this end they thoroughly investigated and measured the damage suffered by each

unit and carried out a “comprehensive and exhaustive” (“拉网式”) safety inspection and physical stocktaking of goods and materials in key

areas such as offices stores warehouses and staff dormitories. They also actively cooperated with government departments to carry out Over the years the company fully leverages its influence in the supply chain and connects upstream brands and downstream customers to

comprehensive investigations to detect hidden safety hazards in key areas such as power facilities fire-fighting facilities fences billboards carry out green environmental protection activities. In this way we convey the “green cdf” message and encourage customers to embrace

elevators and building facades with a focus on preventing secondary hazards from building parts loosening and falling off road collapse the philosophy of sustainable consumption with the goal of promoting the transition to a better consumption ecosystem and promoting theengineering equipment failure and post-disaster infectious diseases. Meanwhile all units in Hainan also organised Party and “mass development of the entire industry in a more green and sustainable direction.commando teams” (党群突击队) to carry out post-disaster clearance and siltation alongside government departments facilitating urban

reconstruction.Case study The company cooperated with partners to carry out “Coral Reef Conservation”

8 June 2024 marked the 16th World Oceans Day and the 17th National Marine Publicity Day. On this special date the Sanya

Downtown Store together with the Lancaster brand and Blue Ribbon Ocean Conservation Association visited Wuzhizhou Island

Tourist Area and Sanya Haichang Fantasy Town to carry out public welfare activities for marine conservation. The activities were

themed “Guarding the Pure Coral Reef with LAN ( 与 LAN 同行守护纯净珊瑚海 )”. During the event volunteers planted “trees”

(precious coral seedlings) on the seabed making a valuable contribution to the restoration of the marine ecosystem.Hainan DF volunteered to assist in post-disaster Post-typhoon warehouse inspection The Boao Duty-Free Store engaged in

recovery and reconstruction after Super Typhoon Yagi reconstruction work after Typhoon Trami

▍Green Buildings with Excellent Adaptability

When Hainan was hit by Super Typhoon Yagi the company’s duty-free stores rose to the challenge:

Case study The company launched the “Blue Sea Action ( 蔚海行动 )” public welfare project to make every payment-by-tapping an act of charity

* Haikou International Duty-Free Shopping Complex and

Sanya International Duty-Free Shopping Complex Zone C are * Haikou International Duty-Free Shopping Complex Sanya On 27 December 2024 the company’s sixstreamlined buildings which reduced the damage inflicted by International Duty-Free Shopping Complex Zone C Haikou duty-free stores in Hainan all launched the “payYagi. Haikou International Duty-Free Shopping Complex Plot International Duty-Free Shopping Complex Plot 1 Haikou by tapping” payment service which provides

1 Haikou International Duty-Free Shopping Complex Plot 4 International Duty-Free Shopping Complex Plot 4 and the consumers with a more convenient and efficient

and the Sanya International Duty-Free Shopping Complex Sanya International Duty-Free Shopping Complex Phase 1 consumption experience. At the same time these

Phase 1 Plot 2 hotel projects under construction are subject to Plot 2 hotel projects have been effectively designed to meet stores launched the “tap and donate (你碰我捐)”

strict requirements in terms of the size of window sashes and the requirements of ecological adaptability and ecological public welfare initiative. For every payment made

decorative components and they are outfitted with reinforced protection. For example a variety of local plants have been by tourists using the “pay by tapping” service in

anti-falling fixtures. Wind tunnel tests have been conducted selected for their landscaping which greatly improves the any CTG DUTY-FREE store we will donate CNY1

to determine the wind load of the projects demonstrating adaptability of the projects in typhoons and other severe to the SEE Foundation to support the protection

the safety of the projects’ structures and curtain walls under weather conditions. and repair of seaweed beds in Hainan with a daily

typhoon conditions. For areas with high local wind speeds we limit of 10000 on the number of payments. This

strengthened structures and curtain wall components to improve was also the first case in which the company has

the wind resistance and safety of indoor and outdoor sites. incorporated “pay by tapping” into a charitable

* The sites of Haikou International Duty-Free Shopping initiative.Complex Haikou International Duty-Free Shopping

Complex Plot 1 Haikou International Duty-Free

Shopping Complex Plot 4 and the Sanya International Case study The company planted more than 10000 saplings to jointly cultivate

Duty-Free Shopping Complex Phase 1 Plot 2 “a marine forest”

hotel projects are equipped with a large number

of permeable paving materials rainwater storage In March 2024 the company and Edrington Group held an activity in Sanya that was

tanks and sunken green spaces. As a result the themed “jointly planting a marine forest”. On the day the activity was launched volunteers

projects are able to quickly collect rainwater in strong planted more than 360 seedlings making a significant contribution to the mangrove

rainstorms maximise the absorption and mitigation reservation in Qingmei Port. The larger project which started in November 2022 aims to

of rainwater by buildings roads and green spaces restore the Sanya Mangrove Reserve. By November 2024 a total mangrove area of 30

and leverage the role of green facilities in emissions mu had been repaired and expanded with more than 10000 seedlings planted.reduction so as to relieve pressure on the urban

drainage pipe network.▼▼▼01

Principles of

Governance

ESG Strategy: Clarifying Key Priorities 38

Robust Governance System for Long-term 44

Stable Operations

Complying with Commercial Ethics to 48

Reinforce Internal Control Compliance

CTG DUTY-FREE actively responds to United Nations (UN) Sustainable

Development Goals (SDGs) 16 and 17 and has been continuously improving

corporate governance and empowering corporate sustainability with ESG.38 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Principles of Governance Prosperity People Planet 39

ESG Strategy: Clarifying Key Priorities Planning for SustainabilityWith high-quality development as our core direction we have implemented the five development concepts of “innovation coordination▍Sustainable development strategy going green openness and sharing”. CTG DUTY-FREE actively fulfils its social responsibilities as a central state-owned enterprise and we are preparing for a new stage of development under the direction and goals described in the 14th Five-Year Plan (14th FYP) and are striving

CTG DUTY-FREE strategic vision and strategic objectives in respect of the 14th Five-Year Plan to achieve these goals.To become a f irst-class travel retai l operator with global integrated development across online-offline platforms duty- Take actions that promote shared

competitiveness international influence and leading profitability. free and taxable goods airport and city locations domestic and development strategies and common

international markets and imported and domestic products. By prosperity

With a focus on customers and adapting to evolving market enhancing synergies in procurement supply and sales pursuing

Adhere to green development principles

dynamics the company aims to consolidate its domestic duty- digital transformation and strengthening our capital operations and advocate for the peak emissions and Stepping up rural vitalisation

free leadership while optimising business structures refining new capabilities we are confident that we will achieve high-quality carbon neutrality goals Boosting regional economic

retail models accelerating international expansion and driving sustainable growth. development

Strengthening green building capabilities Improving of income distributionand implementing “four savings and one and sharing the fruits of company developmentStrategic positioning: conservation” Planning for

Improving green logistics capabilities to Sustainability

reduce shipping costs

* For the country and society: Serve as a key driver of Enhancing green warehousing

national strategies build a first-class brand image and capabilities to make warehousing more Actively participate in public service

social influence maximise value and meet unified political intelligentCo-creation co-existence

economic and social responsibilities. co-sharing The Building green duty-free complexes

Customers country & Promoting green consumption and Improvement of public service system

* For customers: Commit to meeting people’s growing society facilitating the green transformation of Development of public service projects

demand for a better life treating customers as co-creators consumption

Customer- Purpose-of value and delivering high-quality fashion products driven

premium services and lifestyle experiences. centricity CTG commitment

DUTY-

* For the industry: Lead the industry in terms of scale FREE

efficiency and operational excellence foster collaborative Collaboration Shared growth The company has been included in various domestic and international sustainability indexes demonstrating capital markets’ recognition of

and healthy competition innovate alongside suppliers and the company’s ESG efforts.partners and cultivate competitive-cooperative relationships

with peers.Industry Employees

* For employees: Share the fruits of corporate growth Hang Seng (China A) Corporate Sustainability

with employees empower them through value-driven Benchmark Index (“HSCASUSB”) FTSE4Good Index Series

development and serve as a platform for their professional Continuously improve enterprise value

advancement.Hang Seng SCHK China Central Central State-

owned Enterprises (SOEs) ESG Leaders Index CSI 800 ESG Benchmark index

Hang Seng SCHK China Central SOEs ESG 40 Index Shanghai and Shenzhen 300 ESG Benchmark index

Hang Seng SCHK China Central State-owned

To build a central state-owned enterprise that upholds Enterprises ESG Enhanced Index SSE 180 ESG Benchmark index

ESG

the principles of integrity safety environmental

Targets

awareness and harmony. Hang Seng SCHK China Central State-owned

Enterprises ESG Index China Reform Central- SOEs ESG Growth 100 Index40 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Principles of Governance Prosperity People Planet 41

CTG DUTY-FREE’s 2024 ESG performance and 2025 ESG targets ▍Stakeholder Communication

Stakeholder Communication Mechanisms

Sector Achievement of 2024 ESG targets 2025 ESG targets

The company attaches great importance to communication with stakeholders and actively builds a robust internal and external

* Continued to advocate energy conservation and emissions * Continue to advocate energy conservation and emissions

reduction fully implemented energy conservation and reduction and improve green operations management communication platform. We pay attention to material issues of concern to our stakeholders and continuously reinforce our management to

environmental protection initiatives and thoroughly put the capabilities and energy efficiency better respond to their expectations and create value for them.“Green and Low Carbon Initiative” into practice

Green office * Avoid major incidents involving energy conservation or

* In 2024 no major incidents involving energy conservation environmental protection violations and avoid penalties or

or environmental protection violations occurred and notifications from environmental protection authorities

the company received no penalties or notifications from Stakeholders Stakeholder expectations Communication and participation mechanism Corporate response

environmental protection authorities

Improvement of market

capitalisation and profitability

* Sanya International Duty-Free Shopping Complex Zone * Follow green building standards in new construction Protecting shareholders’ rights

C obtained 2-star Green Building certification projects and apply for green building certifications and interests Periodic reports and announcements Provision of truthful and adequate

* Haikou International Duty-Free Shopping Complex (Block * Continue to promote energy-efficient transformation of Standardisation corporate Communication via SSE e-interactive platform information disclosure

No.4) obtained 2-star Green Building pre-certification existing facilities governance Official website new media platforms Improvement performance and

Green Accurate information disclosure telephone fax and emails General Meeting generate profits

building * Continuously optimised existing facilities’ energy * Actively explore the use of new energy sources Shareholder/ Smooth investor communication of Shareholders performance presentations Diversified investor communication efficient transformation and conducted carbon footprint * Facilitate brand partners to obtain LEED certification Investors Improvement of ESG roadshows analyst meetings investor reception channels

management performance day investor seminars Improvement of ESG practices

* Worked with brand partners to apply for LEED certifications: Business Strategies

13 stores/counters obtained LEED certifications Changes in Industry Policy

Business Development Directions

* 129 responsibility pledges were signed regarding * Achieve 100% signatures for the responsibility pledge Product quality guarantee Meeting product quality

operational safety targets reflecting 100% coverage and regarding operational safety targets and 100% coverage of Improvement of shopping Communication during service process Good service quality

full coverage of operational safety responsibility (for leads in operational safety responsibility experience Diversified after-sales channels Improvement of the mechanism of

charge) was achieved * 100% coverage of operational safety inspections (for all Protecting customers’ legitimate Customer satisfaction surveys after-sales serviceConsumers

* Conducted routine inspection and expert diagnostic safety places) rights and interests Innovative service practice

inspection activities and full coverage of operational safety * 100% coverage of operational safety training (for all staff) Enhancement of the remuneration

inspections (for all places) was achieved

Operational * No safety accidents and no work-related fatalities

and welfare system

* Held 770 operational safety trainings 218 themed

safety throughout the year

Improvement of the system for

lectures drawing 32300 participants and full coverage of Guaranteed remuneration

operational safety training (for all staff) * Continue to enhance automation and smart operations to Good working environment Employment contracts

general meetings of employee

empower operational safety Improvement of communication Trade union general meetings of employee

representatives

* No safety accidents and no work-related fatalities mechanisms representatives Provision of a strong career

throughout the year * Guarantee investments in operational safety Employees Employee development and Seminars and condolence visits

development ladder

Diversified staff trainings

* Enhanced automation and smart operations diligently career paths Various staff activities

staged emergency drills Establishment of healthy and safe

* Spent a total of CNY21.77 million in operational safety working environment

Legal perform of contracts and

* Invested CNY9.54 million in employee training; total training * Guarantee investments in employee training

hours exceeded 633700 hours; training coverage reached Honest fair and provision of

agreements

* Guarantee investments in launching training activities mutual benefits Daily business exchanges Arrangement for open and fair Training 100% of personnel; and on average each employee tendering

participated in 40.03 training hours * Continue to diversify training courses Maintenance of long-term Business meetings and negotiationscooperation Document correspondence Open and transparent business

Business Complying with business ethics Procurement activities principles

partners Collaborations on environmental

* Conducted onboarding integrity training for 100% of new * Conduct onboarding integrity training for 100% of new Promotion of supply chain’s Industry forums

sustainable development projectsleaders leaders Continuous diversification of

Anti- * Carried out seven anti-commercial bribery and anti- * Conduct onboarding integrity training for 100% of new cooperation models

corruption corruption trainings for all employees three anti-commercial joiners

bribery and anti-corruption trainings for Managerial Actively participation in public

advocacy * Achieve a 100% coverage rate in annual anti-corruption Community engagement and Research via site visitemployees and one anti-corruption training for directors development Public service activities servicestraining

and supervisors including independent directors with a Public services support Targeted assistance Targeted assistance projects

training coverage rate of 100% Community development supportCommunities Social development concerns Volunteer services Advocation of green development

* Spent CNY13.72 million in free aid in rural revitalization * Closely monitor and respond to community and societal Abiding by laws and policy

implemented 15 assistance projects and helped raise needs Law-abiding compliant

operations Participation in relevant trainings and conferences

requirements

CNY6.42 million in assistance funds

Undertaking social responsibility Daily communication and information reporting

Tax payment in accordance with laws

Compliant information disclosure

Public * The company fully leveraged its influence in the supply Government Promotion of economic

Document notifications Promoting regional economic

chain and cooperates with multiple partners – from brand and development Cooperation between government and enterpriseservices developmentpartners to consumers – to jointly explore innovative paths regulators Increase of local employment

to green and sustainable development

* Actively participate in environmental protection education Performing duties as an association

community activities and other public welfare undertakings Daily communication member

Promotion of industry Document notifications Participating in conferences and activities held by industry

Industry development Participation in associations’ conferences and associations

associations activities Sharing our experiences with a wide

audience42 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Principles of Governance Prosperity People Planet 43

Doub le Mate r i a l i t y Assessment fo r CTG DUTY-FREE’s double materiality topics database

Sustainability Topics

The company assesses the double materiality of sustainability topics from the two dimensions of “financial materiality” and “impactIn accordance with the requirements from Sustainability Report We collect topics of concern to critical internal and external materiality”. Based on an effective selection from the database and sufficient stakeholder engagement the company has depicted a

(Trial) issued by the Shanghai Stock Exchange the company stakeholders includes employees management investors materiality assessment matrix and finally identified 6 topics of both financial materiality and impact materiality 15 topics of only impact

conducted a double materiality assessment of key topics. consumers brand names etc. through questionnaires and materiality but not financial materiality and 4 topics that are neither of financial materiality nor of impact materiality.Considering the unique characteristics of the travel retail industry interviews. Then we perform the double materiality assessment

and its operational focus the company evaluated whether each and rank the results to identify the company’s financial material and

identified topic significantly impacts corporate value (hereinafter impact material environmental social and governance topics and

referred to as financial materiality) and whether its performance disclose them in the Report.in respect of these topics could substantially affect the economy

society and environment (hereinafter referred to as impact Category Number Sustainability Financial Impact topics materiality materiality

materiality). Important

1 Climate change ? ?

CTG DUTY-FREE’s process for assessing the materiality of sustainability topics tackling Environmental compliance

Environmental management Packaging material

2 compliance ? management Waste disposal

management Usage of water resources Circular 01 Identify the topics and form a database economy Collaborating with brand Climate change tackling

Packaging material partners to promote environmental 3 ? Energy usage Safety and management protection Excellent service quality of products and

experience Contributions to services Employees，● We form a basic database based on the findings of the Sustainability Report (Trial) issued by the Shanghai Stock 4 Waste disposal ? the society Intellectual property Supply chain security，DataExchange the ESG Code issued by the Hong Kong Stock Exchange and the ESG Metrics System for ESG Reports protection Response to national 5 Energy usage ? ? security and customer privacy strategies and rural revitalization

of Listed Companies Controlled by Central State-owned Enterprises issued by the SASAC; and in combination protectionUsage of water Innovation-driven Anti-commercial

with international sustainability frameworks and disclosure standards such as the GRI standards UN SDGs the 6 Environment resources ? bribery and anti-corruption Anti -

Sustainability Accounting Standards Board (SASB). unfair competition Communications

7 Circular economy ? with stakeholders Due diligence

● To form the final database we incorporated macro policies key areas of the company’s sustainability work feedback

from stakeholders industry topics concerned by capital markets such as MSCI S&P DJSI CDP Morningstar and Collaborating with brand partners

topics disclosed by peer companies at home and abroad. 8 to promote ?

environmental

protection

9 Pollutant discharge

02 Pollutant discharge Ecosystem Communication and survey with stakeholders Ecosystem and and biodiversity protection Ethics

10 biodiversity of science and technology Equal

protection treatment to small and medium-sized

enterprises

● Prepare the online questionnaire to assess material sustainability topics and the questionnaire is designed to take into 11 Excellent service ?

account two dimensions (financial materiality and impact materiality) then invite stakeholders to rate the materiality of experience

relevant topics; Safety and quality

12 of products and ? ?

● Interview stakeholders to collect feedback and suggestions on sustainable development practices from supply chain services

partners ESG specialist and others on our sustainability practices and their views on future sustainability strategy. Not relevant Important

13 Employees ? ?

14 Contributions to the ? The materiality on impacts of the company’s financesociety

03 Engaging with key stakeholders and experts 15 Supply chain security ? ? CTG DUTY-FREE’s double materiality topics matrix

Data security and

16 customer privacy ? ?

● In terms of financial materiality the financial department identified topics with potential financial materiality which were then Social protection

reviewed and confirmed by the relevant departments who are responsible for operational management of these topics.Intellectual property

● The topics with potential financial materiality that had been confirmed on a preliminary basis were then compared 17 protection ?

against the company’s key areas of business management SASB and disclosures of peer companies at home and Response to

abroad with no significant differences found. We then further screened the list of topics with financial materiality.

18 national strategies and rural ?

revitalization

19 Innovation-driven ?

04 Topic confirmation and approval 20 Ethics of science and technology

Equal treatment to

● The assessment results of the double materiality assessment were then submitted to the Board’s Strategy and 21 small and medium-

Sustainability Committee under the Board for deliberation; sized enterprises

● Relevant departments further strengthened sustainability management and disclosures regarding the approved Anti-commercial 22 bribery and anti- ?

financially material topics. corruption

23 Anti – unfair Governance competition ?

05 Communications Review and continuous follow-up 24 with stakeholders ?

25 Due diligence ?

● After the end of the reporting period the company will organise stakeholders to give feedback on the contents of the

Report and prepare for the future sustainability management and disclosure.The materiality on impacts of the economy society and environment44 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Principles of Governance Prosperity People Planet 45

Robust Governance System for Long-term Stable Operations Professional backgrounds of Board members

Environmental protection/

▍Corporate Governance Name Business Retail Finance & Legal Digital

Information energy conservation and

Management industry accounting expert transformation security/cyber security emission reduction/resource and energy use

Robust Governance System

1 FAN Yunjun ? ? ? ?The company has established a governance system consisting Board of Directors”. Four special committees namely the Strategy

of the Party Committee General Meeting of Shareholders and Sustainability Committee the Audit and Risk Management 2 LIU Kun ? ? ?

the Board of Directors the Supervisory Committee and the Committee the Remuneration and Evaluation Committee and

Management with a clear division of authority responsibilities the Nomination Committee have been set up under the Board 3 WANG Xuan ? ?

and regular operations. The Party Committee plays a leading of Directors to provide consultation and advice to the Boardrole in “setting the direction managing the overall picture and on significant decisions. The Supervisory Committee as the 4 CHANG Zhujun ? ?ensuring implementation” and implements the decisions and plans supervisory body is responsible for overseeing the performance of

5 WANG Yuehao ? ?

made by the CPC Central Committee and national development the Board and management. The management level is responsible

strategies. The General Meeting of Shareholders represents the for the operation implementation and administration and is 6 GE Ming ?

highest decision-making authority and plays an overall guiding subject to the management of the Board of Directors and the

role in the company’s operation and development. The Board of supervision of the Supervisory Committee. In 2024 the company 7 WANG Ying ?Directors plays the role of “setting strategy making decisions and convened 2 shareholders’ meetings 15 board meetings and 6preventing risks” exercising decision-making power on major supervisory board meetings. The special committees of the board 8 WANG Qiang ? ?

issues of the company in accordance with legal procedures and of directors held 19 meetings in total. Among these meetings the

the “Articles of Association” and carrying out its work strictly with Board of Directors Strategy and Sustainability Committee held 4

the “Articles of Association” and the “Rules of Procedure of the meetings in total.General Meeting

of Shareholders The company incorporated sustainable development governance into strategic decision-making and daily management strengthened

(Authority) awareness of sustainable development governance in a practically manner and constantly promoted standardisation and institutionalisation.

Departments and affiliated companies have designated sustainability governance officers to oversee the implementation of relevant

Board of Directors Supervisory measures. For details please refer to the “Statement of the Board of Directors” section of this report.

(Decision-making Committee

Body) (Supervisory Body)

Board of Directors Board of Directors Board of Directors

Audit and Risk Board of Directors Nomination Committee Strategy and Sustainability Remuneration and Management Committee Committee Appraisal Committee * The highest decision-making authority for the company’s sustainable development matter

Management

* conducts research and makes recommendations on matters relating to the

The Company’s sustainable development including but not limited to vision targets

CTG DUTY-FREE has formed a corporate governance system state-owned enterprises financial enterprises and accounting Board of and policies;

based on the “Articles of Association” and concerning the “Rules firms and they possess strong professional qualifications and * studies the Company’s sustainable development strategy and the material Directors issues that stakeholders are concerned about and put forward correspondingof Procedure of the General Meeting of Shareholders” the “Rules experience in financial audit legal risk control new retail and suggestions;of Procedure of the Board of Directors” the “Rules of Procedure digital transformation. Their presence enhances the diversity * tracks and inspects the implementation and improvement of sustainableof the Supervisory Board” and the “Rules of Work of the General and complementarity of the company’s Board in terms of the development matter to ensure that the management and decision-makingManager” in accordance with the requirements of the Company members’ experience and capabilities. We are committed to The Strategy and mechanism of important sustainability issues including but not limited to environment anti-corruption occupational safety and health comply with the

Law and the Code of Governance for Listed Companies. During cultivating a professional and diverse Board of Directors that aligns Sustainability Committee of requirements of relevant laws and regulations

the reporting period the company established and refined its with the strategic positioning of the company as a world-class the Board of Directors Main * reviews the Company’s reports on sustainable development matters and

“1+N” corporate governance system. It made high-quality revisions tourism retail enterprise. All directors have a term of three years Committee on Sustainability reports to the Board of Directorsto 12 governance-related documents including the “Articles of and accessible for re-election when their term of office expires if GovernanceAssociation” the “Rules of Procedure of the General Meeting of eligible. Independent non-executive directors are not allowed to* headed by the Chairman of the company; the deputy head of itShareholders” the “Rules of Procedure of the Board of Directors” hold the position for more than six consecutive years. In terms is the General Manager; and its members include heads of each

the “Independent Director System” and the rules of procedure of educational background 3 directors have doctorate degrees main departments

for special committees thereby strengthening the foundation of 4 have master’s degrees and one has a bachelor’s degree. The the Sustainable Development Leadership Group * leads the company’s sustainable development work and

corporate governance. We continued to enhance the operational directors have a balanced mix of knowledge and skills. They is responsible for managing and coordinating the establishes and improves the company’s management system

and operating mechanism for sustainable development related

mechanisms of the Board optimised the Board’s composition obtained degrees in various areas and possess experience from sustainable development related work work

actively promoted Board member diversity and leveraged the different industries and sectors. The current Board is characterised * integrates the development strategy image brand and operations

effectiveness of special committees with a view to substantially by significant diversity in terms of skills experience knowledge with sustainable development concepts

improving the quality and efficiency of decision-making. gender age and other areas in compliance with the requirements

on Board diversity. CTG DUTY-FREE Sustainable Development Governance Structure

As of 31 December 2024 the company’s Board comprised

eight directors including two female directors representing The company’s Supervisory Board comprises three members

25% of the board of directors. Three independent directors are including two female members (67% representation). The

mainly drawn from first-class universities research institutes company’s senior management consists of 8 executives including

and think tanks. They have held important positions in large 2 female executive representing 25% of senior management

personnel.46 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Principles of Governance Prosperity People Planet 47

▍Information Disclosure Diversified Communication MechanismThe company has formulated the “Information Disclosure As an A+H l isted company CTG DUTY-FREE has beenManagement System” to strengthen its management of information addressing the differences in capital market regulatory concepts

disclosures including sustainable related information and protect and rules between the A-share market and the H-share market. Investor relations Strategy sessions with The SSE Investor reception day emails brokersinvestors’ legitimate rights and interests. The company disclose The company follows the principle of “early start frequent e-interactiveinformation truthfully accurately completely promptly and fairly in communication and focus on quality and efficiency” to optimise its

platform

strict compliance with the Company Law the Securities Law and system for regular reporting announcements and key information Online and Offline

other laws and regulations as well as the relevant regulations of the disclosure and to regulate related-party transactions dividend The investor investor research

CSRC SSE HKEX. We continue to regard “zero-error” information planning and other details. hotline meetings

disclosure as its basic goal and we are steadily improving our Investor Relations

information disclosure system accordingly to effectively protect In line with SASAC’s requirements for enhancing the quality of Roadshow WeChat official account

shareholders’ right to know and enhance the effectiveness of our listed central enterprises the company prioritises investor needs presentations Field research activities Performance and applet

information disclosures. by innovating disclosure content and formats and continuously The company’s presentations

improving transparency and granularity. The company has been General Meetings of official website

awarded an A-grade evaluation for information disclosures by the Shareholders

SSE for the past nine consecutive years (fewer than 3% of listed

▍Investor Relations companies have achieved this honour for nine consecutive years).The company strictly complies with the Company Law the Securities Law the Listed Company Investor Relations Management Guidance Case study cdf-style Hainan sharing session – inviting investors to experience cdf

and other laws and regulations. To improve corporate governance deliver greater overall value and protect investor rights in 2024 the

company revised the “Investor Relations Management System” actively responded to market demand and carried out a series of appealing In April 2024 during the 4th China International Consumer engaged in in-depth discussions on investor concerns including

multi-tiered investment activities for the capital market and investors. Products Expo in Haikou Hainan province the company invited business enhancement measures membership expansion/

key institutional investors to gather for a research seminar on management and customer service improvements. After the

the island. At the flagship Hainan store we held a thematic session investors participated in interactive brand experiencesIn 2024 the company improved its mechanism for investor sharing session titled “Looking at High Mountains Gazing at giving them the chance to enjoy cdf’s premium servicesrelations (IR) activities: Long Rivers”. The company’s representatives outlined cdf’s firsthand.* Developed and executed annual IR plans and related schedules future strategies for Hainan’s offshore duty-free business and

with clear timelines

* Conducted targeted IR activities for different groups based on

information disclosures made by the company

* Based on the company’s business activities innovated cdf-

specific IR activities that align with market initiatives

* Established mechanisms to monitor public sentiment and

provided proactive guidance to cultivate a positive perception of

the company in the market

* Enacted structured dividend distribution policies to strengthen

the value of the company as perceived by investors

In 2024 the company:

Held 3 business tracking Staged 3 performance Conducted 62 investor surveys and 4 field Case study Livestream performance presentation – pioneering a “zero distance” IR model

exchange meetings presentations research activities

136 126 On 5 June 2024 at the Shanghai Stock Exchange Roadshow Held strategy sessions Conducted diverse communication activities Centre in Beijing the company’s leadership held the 2023

with brokers annual and 2024 Q1 performance presentation using a

“livestream + onsite presentation + multi-platform interaction”

4600 3556 approach. At the session executives presented corporate Interacted with about investors including institutional investors updates and addressed investor queries in detail. Using this

omni-channel approach we were able to bridge communication

gaps between the company and institutional investors retail

1000 150+ investors and brokers resolving concerns while directing the Fielded over investor hotline Sent email responses focus of the market to key areas and providing information

inquiries

regarding strategic adjustments that will be made in the future.This presentation was recognised as a “Best Practices Case forPerformance Presentations” by the China Association for Public

Guided by the needs of investors the company continuously enriches and improves the smooth investor communication channels to Companies.enhance pertinence and effectiveness. We also improve the quality of investor relationship management and convey corporate investment

value to the market precisely and timely to promote high-quality development of the company.48 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Principles of Governance Prosperity People Planet 49

Complying with Commercial Ethics to Reinforce Internal Control Compliance Improving the evaluation report mechanism and Deepening and expanding the study of early warning

strengthening the foundation for risk management indicators for risks

▍Compliance Management In order to strengthen overall analysis and trend analysis of internal In order to further improve the company’s risk quantification

and external risks and enhance the company’s basic capabilities capabilities and enhance the scientific and practical design of early

Risk Management in respect of enterprise risk management the company has further warning indicators for risks the company has carried out a re-

strengthened the risk assessment processes of key subsidiaries. inspection of early warning indicators for risks for the headquarters

While offering guidance on the objectives methods and tools of starting from its business objectives. Based on a retrospective

The company formulated the “Measures on Comprehensive Risk Management” and the “Management Regulations on the Reporting of risk management reporting we are requiring for the first time that analysis of historical tracking data we have optimised and refinedSignificant Operational Risk Events” to establish an effective and comprehensive risk management system; improve risk prevention and key subsidiaries prepare their own risk management reports based the existing indicator system. At the same time key subsidiaries

management; clarify the collection collation and reporting of significant operational risk events; and safeguard the company’s stable on annual risk assessments. The company considers these risk have been selected to serve as pilot entities in our effort to actively

operations and sustainable development. management reports to be an important method for comprehensively extend early warning and monitoring of risks to key third-level

summarising evaluating and supervising the risk management work enterprises.In terms of risk governance the company has specified the top-level personnel responsible for operational risk management the top-level of each key subsidiary. Gradually we will form a risk managementpersonnel responsible for monitoring and auditing risk management performance and their relevant reporting lines. model that entails “highlighting key points hierarchical management Strengthening risk event handlingand three-dimensional risk prevention and control” enabling

quantitative full-coverage visualised management of operational risks

The Board of Directors is the leadership group responsible for the company’s In order to properly prevent and resolve the major business risks

Board of across all the company’s important sectors.overall risk management and for ensuring the effectiveness of comprehensive risk of the company and its affiliated enterprises a comprehensive

Directors management. investigation of risks and hidden dangers was organised in 2024.The company thoroughly investigated risk events in the business

Three-

Audit and Risk areas of the headquarters and affiliated enterprises and the Risk internal control and compliance responsibilities have been incorporated into the Highlighting Hierarchical dimensionalManagement causes of risks were analysed in depth. We formulated disposal

Committee under the duties of the Audit and Risk Management Committee under the Board of Directors to

key points management risk prevention

and control and resolution measures to properly prevent and resolve major

Board of Directors refine the risk management corporate governance structure. business risks and continuously improve the company’s business

management capabilities.The company’s general manager is responsible for guiding the company’s overall

risk management approving risk management matters subject to its authorisation Conducting special training on risk compliance topics and cultivating a risk management cultureGeneral manager

and authorising the company’s leads in charge to be responsible for organising and

promoting risk management. The company delivers training on compliance risk topics to all staff on a quarterly basis to enhance their awareness of the importance of

compliance issues.The company’s leads in charge of risk management preside over the daily work of

Leads in charge of comprehensive risk management. They are accountable to the general manager We have taken the following actions to create an effective risk management culture within the company:

risk management and they exercise their risk management duties subject to the general manager’s

authorisation. According to the requirements of the company’s “14th Five-Year” strategic plan to comprehensively improve risk management and controlThe departments in charge of comprehensive risk management are the Legal and we comprehensively organise and implement tasks related to the risk management and control system and tasks related to the “year forDepartments in charge Risk Control Department. They are responsible for constructing and operating the strengthening compliance management”. The company plans to establish a long-term management mechanism to enhance its overall

of comprehensive risk comprehensive risk management system; organising coordinating supervising management and risk prevention capabilities.management and inspecting risk management; and evaluating the effectiveness of subsidiaries’ risk management. They provide professional advice for the company’s major risk

decisions.The company also embeds its own requirements on risk

To this end we have initiated the systematic construction management and control into specific control points and

The company performs an annual assessment of material risks based on two dimensions: the possibility of risk and the magnitude of of an internal control system conducted risk analysis and maps specific responsibilities to information in the risk

impacts. CTG DUTY-FREE trained the compliance risk topics to all staff quarterly to enhance their awareness. diagnosis of business processes throughout the system database. In this way we ensure that the company’s

urged relevant units to implement rectifications according internal control lists and programmes and internal control

Organising a company-wide risk assessment to study and determine the risk situation in the coming year to the risk diagnosis report and put forward optimisation system are vertically linked and horizontally consistent.suggestions for key issues such as the company’s digital Using the system we can generate useful management

In this regard the first objective is to establish the risk classification and refining how indicators and early warning thresholds are set transformation to support management decision-making and tools such as a practical internal control manual that

of each business fully apply the results of risk loss event analysis and cooperating with the risk management system that achieves enhance the company’s overall operations and management. reflects the company’s business reality as well as risk

internal control supervision and inspection quantify the relevant daily full coverage and visual management of operational risks control blacklists and whitelists.criteria for risk analysis and form a panoramic risk list for each across all the company’s important sectors.business through bottom-up aggregation of risks.The third objective is to evaluate the probability and impact of At the end of the reporting period the company had not identified any long-term emerging risks that could have a significant impact on

The second objective is to further deepen and expand the study each risk according to specific risks in the risk database. The future business. The company will continue to conduct risk assessments and analyse the potential impacts of emerging risks and formulate

of risk early warning indicators the key business areas are evaluation team comprises the company’s management various solutions if any long-term emerging risks are identified.selected and the selection of industry indicators and the design departments and key subsidiaries. Ultimately the team determines

of early warning thresholds are studied from both quantitative and the risk priorities for the coming year based on the comprehensive

qualitative aspects to form a holistic risk early warning indicator assessment and response plans are devised for the top 10 risks.applicable to the company. Starting from the existing system of The company monitors and tracks its risk response on a quarterly

early warning indicators for risk the company has been optimising basis to improve its risk response capabilities.50 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Principles of Governance Prosperity People Planet 51

Internal control management Compliance management Anti-money laundering (AML)

To improve the company’s compliance regarding operations We strictly comply with the Anti-money Laundering Law and other laws and regulations in the regions in which we operate. Accordingly

In accordance with the -Basic Standards for Enterprise Internal Control and management and to meet corporate needs in preventing we have developed AML policies and procedures such as “Know Your Customer” procedures transaction monitoring and suspiciousthe Application Guidelines for Enterprise Internal Control the Guidelines compliance risks the company has formulated the “Compliance transaction reporting and recordkeeping. The company is constantly looking for ways to further improve its anti-money laundering measures.for Corporate Internal Control Assessment and other regulations the Management Measures” to strengthen compliance management In addition we provide AML training to our employees to ensure that they are kept abreast of laws regulations and updates to our AML

company has formulated the “Management Measures on Internal Control” and build an effective compliance management system. In 2024 policies and procedures.to establish a robust and comprehensive internal control system. The

company has established a management and organisational system for the company’s compliance management focused on the following:

internal control comprising the Board of Directors Board of Supervisors Case study The company conducted special training on compliance management

Operating Department Internal Control Construction Department First we strived to make special achievements in the

Internal Control Operations Department and Internal Control Supervision construction of the compliance system.Department. For internal control management the company adopts a On 29 March 2024 the company’s Legal and Risk Control Department held a special training session on compliance management

system of “centralised leadership and hierarchical responsibilities” which In 2024 with a focus on pursuing special achievements in the with more than 700 people participating. The training which was delivered by members of the company’s compliance system

combines the comprehensive management of internal control supervision construction of the compliance system we held the company- construction project team focused on the necessity of the construction of the company’s compliance system compliance

and management departments with the professional management of wide “Special Training for Compliance Management Work” session management requirements the structure of the compliance management organisation the responsibilities of compliance management

functional departments. providing training on compliance management tools and promoting in respect of the “three lines of defence” the operating mechanism and supporting tools for compliance management and the

the use of such tools to all employees. We also held special specific use of project results (the CTS duty-free compliance risk list the general compliance control list the compliance management

The company implements the internal control evaluations and prepares achievement planning meetings with key subsidiaries that have manual etc.).the “Internal Control Evaluation Report” annually which is disclosed on dedicated compliance management departments supervised the

the SSE website concurrently as the Annual Report. on-site implementation of compliance management projects and

promoted the gradual improvement of subsidiaries’ compliance

management systems.The company carry out various internal evaluations for affiliated companies

to ensure the full coverage of corporate top-down internal management.Annual internal self-assessment covers all affiliated companies the Second we strengthened organisational leadership and

evaluated areas including social responsibility safety and health overall coordination in compliance management.environmental protection etc. Core entities perform semi-annual internal

self-assessment regarding focused areas. On-site internal supervisory To reinforce professional leadership in respect of the rule of law

assessment is implemented irregularly. External auditors carry out the and compliance management in 2024 key third-level enterprises

auditing task of annual internal control. established compliance management committees to study and

plan important compliance work; promote the implementation of

According to the relevant regulatory provisions the company formulated

the company’s rule of law governance and compliance operationsthe “Management Regulations on Rectification of Issues Identified in and management; and form a work model that embeds complianceInternal Audits”. These regulations aim to standardise relevant rectification Special training on “Risk Prevention against Legal Violations by Employees” was management across the entire organisation from top to bottom.processes strengthen the implementation of audit rectification and Case study successfully completed

improve the effectiveness of audit oversights. They also seek to clarify

rectification responsibilities rectification procedures result identification On 13 September 2024 the company’s Legal and Risk Control

supervision and inspection responsibility constraints and result Third the company established and improved its violation

implementation while improving the internal audit system. Department held a special training session on “Risk Prevention reporting mechanism. against Legal Violations by Employees” which was attended byIn 2024 the company revised the “Management Measures on Internal relevant employees from the Sanya store the Phoenix AirportControl” to further optimise the organisation structure of internal control In July 2024 a reporting platform for violations was established Duty-Free Shop and IPRO Company (智科公司). The training

improve the internal control supervision mechanism ensure that the internal to accept reports of violations by the company’s enterprises and

control system always meets the needs of enterprise development and lay employees at all levels and the “Notice on Reporting Violations”

was offered in both online and in-person formats. The main

venues for the offline training were the Beijing headquarters and

a solid foundation for the long-term stable development of the company. and relevant guidelines for acceptance and disposal were issued.In addition the company established a risk database for violation certain companies in Hainan. The training session which was

events and violation reporting and suspected cases of violations are attended by about 2000 employees was designed to further

According to the annual plan the company has rolled out the required are required to be reported to relevant departments in a improve the company’s compliance management raise theinternal control oversight and evaluation of its affiliated companies. promptly manner. legal compliance awareness of employees and promote the Special training on “Risk Prevention against Legal Violations byThe evaluation aims to comprehensively assess and review development of a compliance culture. Employees”

the formation of stores’ risk and internal control systems and

identify and rectify any potential risks and deficiencies. Following Fourth we implemented a compliance administrator

this suggestions for rectification were proposed to promote mechanism.the optimisation and standardisation of the stores’ internal Specifically the company established and piloted the CTG DUTY- Case study The company launched the activities of “Protecting Life with the Law” in Constitution Week

control processes implementing the use and optimisation of the FREE compliance administrator mechanism. The headquarters and

internal control manual and other management tools so that subordinate enterprises have set up compliance administrators

employees pay closer attention to risk prevention and control in based on their own specific conditions. By the end of 2024 a total 4 December 2024 marked the 11th National Constitution Day.an environment in which all employees actively participate and of 119 compliance administrators had been established covering According to the requirements of the Ministry of Justice’s

promote internal control. all enterprises and key business areas and links. The compliance “2024 National Constitution Week” from 2 to 6 December the

administrators ensure that responsibilities in areas such as system company carried out the Constitution Publicity Week activity

During the reporting period the company conducted multiple construction and compliance review are fulfilled in accordance with with the theme of “Protecting Life with the Law.” On these days

internal audits including an audit of the economic responsibilities regulations. we played promotional videos publicising legal topics on the

for employee termination at subsidiaries and an audit of subsidiary company’s LED display screens.operations and management. In respect of expense management

internal auditors performed spot-checks of vouchers to inspect the

performance and compensation of enterprise leaders as well as the By the end of 2024 a total of

compliance of business expenses. In addition to ethical codes the

audit also covered corporate governance strategic decision-making Constitution Publicity Week Activity: “Protecting Life with the Law”

human resources management financial management procurement 119 compliance administrators

management project management investment management

information systems and other business areas.▼

▼52 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Principles of Governance Prosperity People Planet 53

▍Business Ethics Intellectual Property Right (IPR) Protection Data Security and Customer Privacy

We attach great importance to works related to IPR and has Protection

The company strictly abides by the Law of the People’s Republic of China Against Unfair Competition and other laws and regulations. We formulated the “Brand Management Measures” and “Trademarkparticipate in fair market competition according to business ethics and market rules and forbid commercial bribery and we continuously Use Management System” which regulates the management and ● Governance

optimise the company’s anti-bribery mechanism to ensure its effectiveness. We are earnest in conducting self-examinations and self- use of IPRs including the standardised management of the Brand

rectifications and we do not violate any laws regulations business ethics or market rules in business activities or engage in any unfair Visual Identity (VI) system and the use of trademarks.trading practices that undermine fair competition. The company continues to attract consumers by engaging in trusted business operations Pursuant to relevant laws and regulations including the

and providing excellent services and we continue to promote anti-corruption anti-monopoly and human rights protection initiatives in Cybersecurity Law of the People’s Republic of China the As of 31 December 2024 the company had obtained the following

relation to our suppliers. Data Security Law of the People’s Republic of China the intellectual property rights: Personal Information Protection Law of the People’s Republic

of China the Regulations on Protecting the Security of Critical

Working with Customs to combat the practice of the “reselling duty-free goods” CTG Duty Free makes efforts to raise the legal and Information Infrastructure and the Administrative Measures

compliance awareness of consumers by informing them of the consequences of such practices and strengthening self-supervision. Number by

Metrics Unit the end of 2024 for the Multi-level Protection of Information Security we have

developed a system of cybersecurity policies taking intoAnti-corruption Number of IPRs Item 72 (including 46 software account the “Cybersecurity and Information Policy of Chinasuch as trademarks copyrights in 2024) Tourism Group Duty-Free Corporation Limited.”

and copyrights

System and Mechanisms Advocacy against corruption To respect and protect customer privacy we strictly abide by

Number of valid Item 2 the Personal Information Protection Law and other laws and

The company has formulated a supervisory and management The company continues cultivating an integrity-based culture to patents regulations and develop our own policy documents such as

system covering its headquarter and affiliated companies and create a stable and law-abiding operating environment. Throughout the “CDFG Privacy Policy”.established a leading group and a coordinating group for upholding 2024 the company implemented the “Detailed Work ArrangementsNumber of effective Item/CNY 0.004

anticorruption. The anti-corruption leading group convened two of the Company’s CPC Committee in Implementing the Opinions

patents per 100 million Development of information and data security systems

meetings during the year to study and analyse the development on Strengthening the Development of an Integrity Culture in the

CNY100 million ofof anti-corruption Party building anti-corruption trends and the New Era” “Detailed Measures of the Company’s CPC Committeerevenue

ecosystem of corporate politics and then draws up work plans. on Further Implementation of the Central Party Leadership’s The company and affiliated companies have established andThe coordinating group comprises Disciplinary Inspection Audit Eight-point Decision” to reinforce the construction of a culture of improved various cyber and information management systems

Inspection the Party Office the General Office Human Resources integrity and the disciplinary structure. Moreover the company held Number of software Item/CNY 0.127 and standards to suit the company’s digitalisation needs. CTG

Finance and Legal among other departments held two meetings various anti-corruption and compliance training sessions engaged programs per 100 million DUTY-FREE formulated information security management

during the year. They coordinate the supervision of all parties to in anti-corruption dialogue with new hires during the on-boarding CNY100 million of systems that cover informat ion secur i ty management

enhance supervisory effectiveness in accordance with the working process staged educational seminars for all CTG DUTY-FREE revenue network security management data management information

rules. employees to warn against the dangers of corruption carried out encryption rules information security emergency plans and

educational activities through the “cdf e-Party” application and other aspects of information security management. In this

strengthened education for company cadres to remind them to We established a comprehensive retail terminal VI system which way we have developed comprehensive information security

distance themselves from corruption and stay committed to acting conveys the corporate philosophy culture and norms to the public management systems that feature well-defined responsibilities

Reporting Mechanisms with integrity and complying with the law. and eventually shapes a unique corporate image. a clear division of labour and a combination of technology

and management. In line with national standards industry

The company accepts letters visits and telephone reports and For trademarks with more comprehensive applications the standards and the circumstances specific to the duty-free

announces telephone numbers e-mail addresses and physical In 2024 the company conducted seven anti-commercial bribery company has a team of professional lawyers to monitor trademark industry we have developed our first system of information

mailboxes for reporting. Our staff must strictly comply with the and anti-corruption training sessions for all employees; three infringement both at the time of registration and use; we will defend technology standards which establishes principles and

confidentiality and avoidance mechanism precisely control anti-commercial bribery and anti-corruption training sessions for our rights vigorously in the event of a violation. standards for the performance of information technology-

the information scope and the clues of problems and strictly

prohibit any disclosures regarding the case information and management personnel each with a duration of 2 hours and a

related work. The company’s Board of Directors is the highest

coverage rate of 100%; and one anti-corruption training session for Anti-unfair competition responsibility and decision-making authority with regards to disposal solution. As a protection measure for whistle-blowers information security and privacy protection. The Information

the company’s Disciplinary Inspection Committee enforces the directors and supervisors including for independent directors with Technology (IT) Department is responsible for specific work“Rules on the Handling of Whistle-blowers’ Reports by Disciplinary a coverage rate of 100%. The company has always strived to conduct its business in information security and privacy protection. The BrandInspection and Supervision Organs” and other regulations activities in a legal compliant and ethically responsible manner and Marketing Department is responsible for carrying out the

strictly prohibits the revealing of whistle-blowers’ information and strictly complying with relevant laws and regulations such as the

giving priority to handling the accusations with a real name; for specific work for customer privacy protection. To keep the

Anti-monopoly Law of the People’s Republic of China and the

anonymous reports and reporting materials unauthorised checks team updated with the latest IT knowledge IT staff members

of the whistle-blowers’ information are strictly forbidden. Law of the People’s Republic of China against Unfair Competition. are required to receive regular training.The company is fully committed to implementing relevant legal

provisions including prohibitions on entering into arrangements Customer privacy protection

In 2024 the company concluded one corruption lawsuit and no the company conducted seven with distributors customers and suppliers that may harm

anti-commercial bribery and anti-corruption training sessionscorruption-related violations occurred during the year. The number competition and consumer rights and prohibitions on abuse of We have developed relevant policies including the “Privacy for all employeesof effective corruption reports received was 0. market dominance. At the same time the company is steadily Protection for Customer Services” and the “Checkpoints forintegrating the concepts and values of anti-unfair competition into Customer Services”. In November 2024 the company updated

the daily behaviour of its employees. its customer privacy policy which is available to consumers

and other stakeholders on its website (http://www.ctgdutyfree.Dedicated Supervision Select and appoint cadres with integrity com.cn/p/yinsizhengce.html).The company regularly implements special supervisory inspections The company has formulated the “Conclusive Evaluation Methodincluding monitoring and reviews before festivals and holidays. for Personnel Selection and Appointment and Operational Integrity”

These approaches cover persons who are in leadership positions in order to thoroughly meet the rigorous requirements for the

examine their performance of duties and scrutinise their business Party’s governance strengthen the selection and appointment of

expenditures. Special supervisory inspections are also conducted cadres by the company’s CPC Committee select honest people

for compliance operations. with integrity and prevent corrupt officials from being promoted.54 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Principles of Governance Prosperity People Planet 55

● Strategy ● Management of impacts risks and opportunities ● Metrics and Targets

Security strategy Cybersecurity Data security: In 2024 we carried out 46 privacy protection training sessions

for customer service staff. With each session lasting 1 hourThe company regularly carries out special actions related The company has revised the “Cybersecurity Policy of China 1. Dimensions of data security impact we provided a total of 46 hours of training for each person;to information system security. We also incorporate data Tourism Group Duty-Free Corporation Limited”. Under the 1 Social impact and we offered 30 online courses on information securitysecurity into our overall strategy and clearly define the types guidance of the headquarters all key subsidiaries are required and privacy protection topics including “Confidentiality –■of data security events which include data tampering data to develop their cybersecurity policy which should define Duty-free consumers’ data may be abused in a way that results in Confidentiality Obligations Responsibilities and Awareness”

counterfeiting data leakage social engineering data theft and overall objectives and responsibilities and cover cybersecurity violations of offshore duty-free quotas such as the smuggling of

duty-free goods by “purchasing agents” (traders reselling duty-free and the Data Security Law of the People’s Republic of China.data interception. management host security management terminal security

management application development security management goods) in Hainan.In 2024 we performed an analysis of the company’s network and data security management to ensure the company’s ■ Leakeage of passenger behaviour data may result in the data being Case Conducting a complete security check on information

architecture and its ability to prevent risks. To safeguard the network and information systems operate in a safe reliable systems and network boundaries to improve staff’s used for targeted scams which would undermine social trust.company’s network we applied an approach that combines and stable manner. The company has also established a sound study cybersecurity awareness

“in-depth defence” and “active defence”. We developed an emergency plan for cybersecurity incidents which includes 2 Impact on the country

“in-depth defence” system that covers coordination at different both safeguards and emergency measures and defines the ■ Illegal cross-border transfer of consumers’ data may present a threat In 2024 the company’s headquarters and key subordinate

levels correlation analysis and concerted actions; and an central leadership and responsibilities at each level. Under to the customs supervision system. companies developed a special company-wide work

“active defence” system that can quickly and accurately the direction of the central team we coordinate to mount a

■

perceive and prevent risks based on the sources methods quick response and appropriately handle incidents; we take Duty-free supply chain data that has been manipulated overseas may plan for cybersecurity with a focus on system protection

and pathways of an attack. precautions first and also put in place emergency measures; present a danger to the safe distribution of strategic resources. plans. According to the plan a central steering team andand we adhere to the principle of “Those who are in charge 3 Impact on the business a special working group were set up. They conductedand those who handle operations bear responsibility”. Using ■ Leakage of membership information may cause the business to lose a complete security check over the company’s existing

this emergency system and its safeguards and under the high-end customers and incur costs in repairing damage to its brand. information systems and network boundaries and carried

central leadership we are able to coordinate communicate

effectively respond rapidly and work efficiently to address ■ If the payment system becomes a target of online blackmail duty-

out enhancements for scanned vulnerabilities phishing

incidents. free shops may suffer revenue loss. drills and safety training for staff. Through these efforts we

4 Impact on individuals established a robust protection and response system which

enables us to respond immediately and coordinate across

■ Leakage of biometric information may result in identity theft.Define the central Coordinate different levels to work efficiently and appropriately handle any

leadership effectively

■ Analysis of consumption trails may result in the exposure of personal identified incidents. We delivered a high-quality performance

trip information and privacy violations. in the national-level cybersecurity drills. During the drills we

Security and achieved our goal of “preventing every mock attack” and

Appropriately Work efficiently 2. Risk managementemergency enhanced staff’s cybersecurity awareness.Indepth defence Active defence handle system 1 Risk identification and assessment

incidents ■ Maintaining a dynamic risk list with a focus on monitoring the

following risks: membership system data leakage supply chain data

Communicate Respond rapidly tampering etc.; regularly carrying out attack surface mapping which

effectively covers online malls’ API interfaces offline self-service terminals and

other attack vectors.

2 Risk controls

■ Technical protection: Applying the national security algorithm’s

Data security Customer privacy protection encryption technology to customs declaration data.■ Authority control: Implementing the principle of “separationThe company cooperates with leading domestic security In accordance with the Personal Information Protection Law of powers” with sensitive operations requiring dual biometric

server providers and adopts a variety of security protection and our customer privacy protection policy we take the authentication.means to guarantee the security of key information systems. following measures to protect customers’ information: ■ Monitoring and early warning: The system is configured to detect

The company also establishes a reliable data backup plan to abnormal traffic and send alerts if transactions within a membership

provide double protection to ensure the information security of Encrypted storage and transmission of information – Data account in a day exceed the set threshold.our company. masking for customer information – Hierarchical access

management – Multi-measure access control – Member 3. Opportunity management

The company inspects its information system regularly for information not exportable – Establishing a sound system log –

all types of operating and maintenance events and performs Membership system passes Level-3 Security Certification Realising the value of data; building a data centre; and exploring

checks to safeguard the system’s health. Daily automatic or how should we handle duty-free consumers’ data to comply

manual inspections are carried out for key information system A customer can register cdf memberships at the system of with the offshore duty-free policy.to ensure that the information system operates in a routine and member terminal (cdf membership applet cdf membership

stable manner 24 hours per day. The company guarantees App cdf Membership Club and other channels) in a self-

sound operations and maintenance for vital activities and service manner. Once the information is entered the key Cybersecurity:

events and has formed a working mechanism to efficiently parts of the personal data are desensitised; and the customer

resolve problems and rapidly rectify them afterwards. has the right to access adjust and delete his/her personal

information at any time. The company obtains personal Each year the company regularly conducts one or two

To improve the safety of employee work habits raise information from the self-input of customers and does not simulation exercises using phishing and other social engineering

awareness of safety precautions protect the company’s collect personal data from third parties (except when required attacks which allows employees to learn how to identify

data assets and ensure that security threats are reported in by law). The company undertakes to delete customer data and respond to various cybersecurity threats in a real-lifea timely manner the company conducted an online “Safety within the time limit required by law and does not provide environment enhancing their security awareness.Awareness Training” for all employees. The company provides personal data to any third parties (except when required by

data security training for all staff at least biannually. law).02

Prosperity

Upholding Original Beliefs and Mission to 58

Ensure Trusted Business Operations

Robust Green and Intelligent Supply Chain 66

Setting the Industry Benchmark for High- 69

quality Development

Engaging in Charity Initiatives to Act as a 77

Responsible Corporate

CTG DUTY-FREE actively responds to United Nations (UN) Sustainable

Development Goals (SDGs) 4 10 11 12 and 15 and focus on meeting

our social responsibility pursuing excellence and providing consumers with

quality products and services.58 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Principles of Governance Prosperity People Planet 59

Upholding Original Beliefs and Mission to Ensure Trusted Business Operations Strategy

We also constantly improve our talent management and staff The company has been improving the disclosure of merchandise

training system. We have been developing a system of service information to achieve the orderly classification of goods the

On 11 April 2022 President Xi Jinping visited Sanya International Duty-Free Shopping Complex. While there he stressed the advantages of standards to produce a standardised library and training system full disclosure of product information and fair and transparent

leveraging China’s huge market size the need to foster a favourable market environment with the necessity of trusted business operations covering areas such as product information customs policies prices. Duty-free goods and non-duty-free goods are showcasedand excellent services in attracting customers all with the aim of making a greater contribution to the development of “a free trade port with platform-based policies after-sales standards and customer service separately on different web portals to avoid misleading consumers.Chinese characteristics”. rules and standards. In this way we aim to minimise deviations

from the company’s standards. The company continuously carries In strict adherence with the provisions of the Interim Measures for

out various training including leadership training professional the Return without Reasons of Commodities Purchased Online

▍Service Safety and Quality skills training for front-line staff and general knowledge training within Seven Days the company provides clear procedures and

to ensure that employees at all levels possess professional service guidance on the return of goods without the need to specify a

The company actively carries out training on integrity and related business skills. We have also established a “Work Plan for Service Quality” capabilities. The ultimate goal of the training is to accurately grasp reason and clearly identifies and confirms with consumers those

to improve our system of quality standards for businesses and services and promote the “quality product” and “luxury product” strategies customers’ core demands. goods that are not applicable under the policy in accordance with

demonstrating the company’s philosophy of “trusted business operations and excellent services”. The company has improved its customer the law. The company does not arbitrarily expand the scope of

which goods are not applicable under the return of goods without

service capabilities and standards across various business lines to provide consumers with high-quality products and services. specifying a reason.Governance

In compliance with current laws and regulations such as the Digitalisation and omni-channel are the developmental priorities of In accordance with the instructions of the

Consumer Rights Protection Law and the Personal Information the tourism retail industry. The company continues to integrate its administrative guidance meeting for duty-free industries organised by the State AdministrationProtection Law the company continues to improve its service online and offline channels providing consumers with “pre-sales for Market Supervision (SAMR) the companystandards effectively carries out its work in accordance with sales and after-sales” tourism retail services that are both more headquarters arranged for its subsidiaries to

established procedures and policies and requires subordinate convenient and of higher quality fully meeting consumer shopping jointly make a public commitment to society.companies to develop their own policies. needs and ensuring consumers undergo a comfortable shopping The platform shopping guidance was revised to delete additional restrictions on the return and

experience throughout the entire process. replacement of goods. Only four categories of

Customer service system in Hainan: goods have been specified as not applicable

under the policy of return of goods within seventhe “cdf After-sales Service Management Policy in HainanFor the company has a training system in place to improve days without the need to specify a reason: (for Physical Stores)” and the “Detailed Rules for Handling the quality of talent and provide professional service near-expired goods damaged goods goodsCustomer Complaints at Different Levels” pre-sales support. without plastic packaging and goods with a

short shelf-life. The applicability of the policy

to particular goods is clearly specified on the

Customer service system in Qianhai: During the company offers a convenient shopping experience product web portal. Consumers are asked to

The “Customer Service Centre Management Policy” the by upgrades to the membership system called sales confirm their understanding of the “Shopping“Business Rules for the Customer Service Centre” the OneID and through optimising the store environment. Guidance” and tick an additional check box“After-sales and Return Rules for the Customer Service for their acceptance of goods that cannot be returned or replaced within seven days withoutCentre” the “Rules for the Use of Free Items to Address For the company has used digitalisation to standardise its specifying a reason.Customer Complaints for the Customer Service Centre” and after-sales after-sales services.the “Emergency Response Rules for the Customer ServiceCentre” We have established a closed-loop management process for customer feedback. Under this process we collect data on user experience

Moreover the company uses the quality services provided on its and customer feedback in real time through the customer service system’s evaluation section after-sales tickets and complaints; prepare

Customer service system at Sunrise: major e-commerce platforms to demonstrate its responsibility and send the “Monthly Customer Service Centre Report” to the corresponding departments each month and request that they make“cdf Sunrise’s Letter of Commitment on Making Outgoing warmth and commitment to customers. The company’s cdf improvements or adjustments; and set different response timeframes based on the gravity of the feedback/complaints to ensure the relevantCalls” which applies to cdf Sunrise’s online staff when they Membership Club fully guarantees the quality of goods by the three issues are addressed in a timely manner. During the reporting period as part of cdf Hainan’s centralised overall planning the company

make outgoing calls in the after-sales stage or to handle established and improved after-sales service standards across Hainan Island to enhance the customer service experience.dimensions of quality control of incoming goods logistics servicescomplaints and “cdf Sunrise’s Online Team ‘Mystery and after-sales services to strengthen the quality of goods and To ensure cdf Hainan’s after-sales service standards are consistent and of high-calibre and enhance the customer service experience theShopper’ System” which applies to the online team when it services. It also focuses on the five optimisations of expanded company has updated the “After-sales Service Management Policy (for Physical Stores)” and the “After-sales Service Management Policyis monitoring the service quality and information security of service channels standardised services timely services automated (for Online Malls)” and optimised the structure of the service team. We also took the following steps to ensure that after-sales services were

outside contractors. services and outcome-oriented services to effectively improve efficient and satisfactory:

service quality maximise consumer satisfaction and service

efficiency and increase consumer confidence and comfort in their

consumptions. 1 Engaging with relevant government agencies and establishing a co-working 4 Putting together a dedicated professional after-sales service team setting up a

Each month we develop a monthly inspection plan to monitor mechanism with functional departments to implement the “Receive and Handle” rule 24-hour hotline service and enabling 24-hour access to online customer service to

service quality and assign a monitoring team to carry out for customer complaints received on external channels; provide a service guarantee; and improving efficiency in handling customer complaintsinspections across all service types in specified frequencies with the following goals: “the call centre answer rate should exceed 97% responses

2 Performing a detailed analysis of customer complaints devising specific solutions for

depending on whether it is peak sales season. The team to online customer service inquiries should be made within 10 seconds and the specific types of complaints and implementing the “Respond with 30 minutes” rulesummarises its findings in a monthly report and includes satisfaction rate should exceed 99%”;to improve efficiency in handling customer complaints and enquiries; and setting up

suggested remedial actions for recurring issues and sends the a co-working station with relevant organisation to solve customer demands on site 5 Leveraging the smart customer service platform to make after-sales services traceable

report to the corresponding business departments and the human during major holidays; and achieve consistency transparency and efficiency in how we handle them;

resources department. The team requests that the business 3 Handling customer complaints within a shorter timeframe and implementing proper 6 Advancing the digital transformation of customer services to realise the potential of

departments develop a rectification plan and the team provides the delegation of powers to reach a satisfactory solution with customers quickly and the smart customer service system. The system features a chat robot that is available

human resources department with service quality-related training close more customer complaints; and driving cross-departmental cooperation in the 24/7 to answer questions and return calls and the system enables self-services to

where necessary. The completion status of these rectification plans regular analysis and discussion of issues related to products and delivery orders to be processed instantly significantly improving the efficiency of after-sales services. By

is reflected in the monthly inspection results. improve after-sales management; harnessing human-computer interaction in this way we were able to increase the one-time answer rate to over 95%.60 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Principles of Governance Prosperity People Planet 61

Management of impacts risks and opportunities To meet their shopping needs and provide a better experience for Negative impacts: Our network-wide monitoring includes

customers the company has taken the following steps: real-time monitoring of the “Black Cat” platform and relevant

Positive impacts: government departments’ open channels to collect information

on a real-time basis. In this way we aim to stay up to date

operate a closed-loop monitoring system and issue early

To respond to customers’ voices we assign more resources to customer-preferred activities or products such as by putting popular stores warnings 24/7 for sensitive issues involving public opinion

in premier locations and staging promotional activities (in cdf Hainan). We obtain customer feedback evaluate the feedback and determine Set up a central call centre system which provides a and distributes information to all departments and stores in

how it relates to different departments and hold discussions about how to enhance and adjust processes with a view to improving our unified customer service hotline number (4001-100100) a timely manner for their effective handling. After classifying

service system and raising customer satisfaction. leverages smart technologies to transfer distribute and evaluating customer complaints the company deals

and process services uses standardised processes with them by applying corresponding handling strategies.Conducting customer satisfaction surveys and optimising service processes and consistent script and conducts centralised data Analysis and judgment are steadily strengthened to take collection and analysis. Currently the system has been targeted preventive and control measures and prevent and

made accessible through the membership hotline eliminate adverse impacts on time. The company dynamically

Every year our company conducts consumer satisfaction surveys. stores across three channels with a total of 9176 questionnaires the cdf Membership Club in about 50 cdf stores in tracks unexpected negative information and post-handling

Before we implement phone interviews we seek customers’ (user perspective) received; and we received an average score Guangzhou and Hangzhou and cdf Sunrise; developments and continuously monitors relevant information.permission regarding their willingness to accept the survey through of 89.91 for the three areas from “Mystery Shoppers” (specialist Customer complaints are promptly summarised sorted out

SMS. perspective) which were used 153 times. In these surveys we Made duty-free shopping and pick-up easier for and reflected on upon their occurrence dissemination and

received better results from both perspectives than in the mid-year customers. For example cdf Meilan introduced “liquor handling to safeguard the company’s steady development. If at airport stores” “cross-store purchasing” and “remote we identify a negative media report or an announcement fromIn 2024 we conducted two customer satisfaction surveys – one survey. purchasing of taxed items” and cdf Boao introduced regulators we establish a special team to communicate with

from July to August and one from November to December – “pick-up upon return” in 2024; relevant stakeholders as soon as possible to minimise any

with a view to improving customer service. The survey which The company’s subordinate stores took measures to effectively negative impact and prevent any reputational damage to our

was administered through the company’s physical stores online improve service efficiency. For example the cdf Hainan store Continuously carried out specific services at different group’s brand.platforms and call centres covered four areas: products shopping designed and implemented a three-step optimisation work plan in stores. For example cdf Sun Moon Plaza launched aenvironment services and membership. We used questionnaires April 2024. In step 1 the store established a customer feedback wide range of personalised services such as optometry Emergency management: The “Detailed Rules for Handlingand “Mystery Shoppers” to collect customer suggestions. and self-review mechanism and clarified that customer feedback services gift packaging and makeup customisation and Emergency Events for the Customer Service Centre” has

should be sent to the relevant front-line service teams. In addition upgraded its maintenance centre to include leather care been formulated which defines the severity of complaints

jewellery cleaning watch demagnetisation and watch

We received an average score of 93.7 for the three areas in the July the store enhanced oversight over the improvement process the response measures required for customer services and chain adjustment to enhance the shopping experience. feedback on the handling of issues. The customer service

to August survey which was conducted for nine stores across three reducing the error rate to 3.84% (from 15.51%) in reviews of centre holds a specific drill on complaint handling every month

channels with a total of 4309 questionnaires (user perspective) tickets on the smart customer service system. In step 2 the store Established a two-way interaction mechanism with to ensure that front-line customer service representatives can

received; and we received an average score of 86.46 for the three optimised the return process and shortened handling time by nearly consumers in Hainan; by embedded online customer understand and implement the requirements.areas from “Mystery Shoppers” (specialist perspective) which were 48 hours. Finally in step 3 the store monitors service efficiency service access on the “product details” page the

used 33 times. We summarised our overall findings in a single and quality and prepares a special daily monitoring report to ensure “order” page and the “service module” page to Metrics and Targets

report and detailed the findings for each store in a separate report. that special customer complaints receive responses in real time improve access to online customer service and service

and are handled within 24 hours. Meanwhile the store prepares representatives for the cdf Membership Club and cdf We always strive to provide our customers with satisfactory

We received an average score of 94.25 for the three areas in the a mandatory daily report for logistics tickets issues warnings for Hainan Mall; and contacted customers through multiple services. Our centralised call centre achieves a 30% response channels to meet customers’ needs before during and

November to December survey which was expanded to include 22 frequently returned orders and follows up on the status of special rate using the IVR system. In 2024 the company’s customer after the sales. satisfaction rate remained above 96%.tickets to prevent recurring complaints with the goal of further

improving service efficiency and quality.To mark the “10th anniversary of cdf Sanya International Duty-FreeShopping Complex” the store upgraded its supporting service

To l i s ten to customers ’ facilities and established a comprehensive tourist centre. These

voices cdf Hohhot installed amenities which have a large capacity provide a wide range

of functions and services including 202 luggage lockers for

a cus tomer sugges t ion manual luggage storage services additional translation machines Details regarding customer complaints the company received

box and reviewed opinions umbrellas child harnesses baby stools women’s shawls and during the reporting period:

received from time to time so women’s supplies and other services for children and women.as to improve services in an Total complaints received: 76546

all-round manner. Average hours used to handle each complaint:

141.81 hours

The company provides accessible facilities to cater for As at the end of 2024 complaints handled as a proportion of

special needs groups.total complaints received during the year: 99.72%

Going forward as our customer

compla in t management sys tem

grows more mature we will disclose

c u s t o m e r s a t i s f a c t i o n m e t r i c s

alongside “complaint handling” details

in this report.62 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Principles of Governance Prosperity People Planet 63

Case study Organising groups visiting abroad to promote the high quality development Accelerating the effort to develop Sanya International Duty-Free Shopping Complex into an of outward looing economy Case study example of “trusted business operations and excellent services”In 2024 the company organised 182 overseas visiting groups To develop a model of “trusted business operations and emotional connections with customers. The eight supportingwith 398 person times for business purpose to France Italy excellent services” Sanya International Duty-Free Shopping pillars include: trusted operations as the cornerstone; an elegant

Japan South Korea Cambodia Singapore Vietnam Sri Lanka Complex conducted multiple internal discussions and employee and comfortable environment sincere and considerate services

Switzerland the United Kingdom Hong Kong Macao and other surveys and benchmarked against peers. Through these efforts and a convenient and efficient experience as the three pillars

places. The purposes of these visitings include procurement In 2024 the company organised the complex designed a system of service standards comprised of customer services; and robust service standards effective

and ordering overseas store tours participation in industry of one value proposition eight supporting pillars and 98 training sound service quality supervision and comprehensive

conferences brand learning and exchanges and development 182 overseas visiting groups with 398 policies and standards. Under the service value proposition of technical support as the four employees-related pillars.of important projects greatly promoted the high quality person times for business purpose “comfortable global shopping with a focus on you” the complex Meanwhile the 98 policies and standards govern operational

development of outward looing economy. aims to provide customers with sincere & patient warm & processes before during and after sales as well as supporting

meticulous and professional & efficient services and establish processes related to training supervision and digitalisation.Case study Enhancing our customer services and improving the customer service management system

In July 2024 the company carried out a customer service stores online platforms and the customer service centre based

enhancement project. We conducted industry research and on their different natures. Moreover as part of the service

internal interviews with a focus on the company’s eight system we established processes delegation of power and

representative physical stores three online platforms and call authorisation rules a KPI assessment policy a central call

centre. To ensure the feasibility of our service system we centre system and an organisational structure for customer

conducted 24 one-on-one interviews with the front-line teams services; and defined development goals in the short medium

from major stores collected nearly 90 internal service charters and long term. Starting with changing mindsets and concepts

and benchmarked them against service charters from more and digital transformation we aim to develop a standardised

than 10 leading companies in the industry at home and abroad. customer service management framework comprised of uniform

Based on our findings we updated CDFG’s service system controls standards and systems that operate consistently. We

which now classifies customer services between physical have already made significant progress in this regard.The launch ceremony for the programme to build a model of “trusted Staff training on “trusted business operations and excellent services”business operations and excellent services”

Case study cdf Hangzhou held multiple training sessions to help staff provide high-quality services

Case study The Malt & More Whisky Museum opened at the cdf Haikou International Duty-To upskill its front-line teams and ensure high-quality services cdf Hangzhou carried out four training sessions on skills and tips to Free Shopping Centre

improve customer services and product displays.In November 2024 the Malt & More Whisky Museum opened on the 4th floor of the cdf Haikou International Duty-Free Shopping

Centre to tell the story of black and gold whisky made from barley in Glencairn glasses.Inside the Malt & More Whisky museum

In 2024 the company launched the programme to build a model of “trusted business operations and excellent services” as part of its effortto implement President Xi Jinping’s guidance on the importance of “attracting consumers with trusted operations and excellent servicesto accelerate the construction of a free trade port with Chinese characteristics”. We also launched a series on this topic on our WeChat

account to communicate what we have achieved through this programme including our experience and practices in improving management

service capabilities that can be applied across the company to support our effort to develop into a world-class company.▼

▼ ▼64 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Principles of Governance Prosperity People Planet 65

▍Product Safety and Quality

Governance Metrics and Targets

The company has formulated a “Service Quality Work Plan” and product recall process is triggered due to product quality problems During the reporting period the company did not experience any

has been providing employees with training on integrity culture the company can take timely actions to protect the rights and product recovery (recall) events negative events (e.g. regulatoryand related business skills. Meanwhile the company’s “Service interests of customers. The company attaches importance to the penalties and negative news reports) or countermeasures for theQuality Work Plan” aims to improve standards for business and handling of product quality problems and actively works with company’s products or services.service quality promote quality goods and boutique strategies and suppliers to ensure product quality standards are met so that ouruphold the concept of “trusted business operations and excellent users can shop with confidence. In 2024 we actively introduced ESG-based products. As at the end we had introduced 32 products that had been certifiedservices” with a view to comprehensively improving customer of 2024 we had introduced 32 products that had been certified environmentally or socially by a third party and we generated

service standards and ensuring the provision of quality goods and In terms of food and beverage safety the company has made every environmentally or socially by a third party and we generated

services to consumers. effort to establish and improve its comprehensive management income of CNY22.24 million from those products in 2024. income of CNY22.24 million from those products in 2024.systems including those related to food management rules

Strategy and management of impacts risks and supervision and monitoring traceability cooperation inspection

and testing to ensure the food safety of our pre-packaged

opportunities goods. We adhere to standardised online and offline management

standards with respect to food safety and exercise whole-process

Product Quality Guarantee control in this area. In accordance with the Law on Product Quality

the requirements of the commodity quality standards issued by the

The company strictly enforces procurement management measures SAMR and the National Standardisation Administration and other

and continuously monitors supplier selection and product quality laws and regulations the company has re-signed agreements withassurance. In 2023 the company issued the “Regulations on domestic liquor producers and suppliers and the new agreements In December 2024 CDFI completed itsSafety Management Quality-Risk Early Warnings Inspection and include the “Liquor Quality Assurance Agreement” which helps annual audit of the quality managementTesting for Imported Commodities (Trial)” which standardises and the company ensure the quality of its products protect the rights s y s t e m ( I S O 9 0 0 1 ) t o p r o v i d e

institutionalises quality and safety management for our imported and interests of consumers. For goods with special storage assurance regarding the adequacy and

commodities. We have strengthened safety and quality control requirements such as chocolate that needs to be stored below 20 appropriateness of its internal controls

for imported commodities to ensure that the company meets its degrees our stores strictly enforce the storage and transportation and refined management.responsibilities and protects consumers’ rights and interests. standards provided by suppliers and maintain daily temperature

and humidity measurement records. We identify productsThe company formulated the “Procurement Management that contain oil chemicals according to the suppliers’ shippingMeasures” and strictly enforced the procurement approval process information in the early stage and check these items properly when

including the methods and procedures for supplier selection Notice on CDFI passing the making declarations. annual quality management

the methods used to assess suppliers and supplier bidding and system review

procurement behaviour. For the supplier sourcing process we In respect of the management of goods close to expiration the

have strengthened the supervision and review of suppliers to guard company disposes of them by means of return shipments returns

the “entrance gate”. The company has also established a list of to suppliers for exchange selling them at a discount offering ▍Responsible Marketing

qualified suppliers and incorporated compliance performance special promotions and destroying them under the supervision

requirements into the evaluation process for suppliers. We of customs in accordance with the product categories and actual We attach great importance to the management of advertisements and optimise tourism retail operations. Through this analysis work

dynamically adjust the qualified suppliers list by promptly removing circumstances. The company strives to reduce goods close to and new media marketing. In accordance with the Advertising the company was able to effectively mine the commercial value

any suppliers involved in irregularities. expiration by forecasting market demand flexibly deploying goods Law and other laws and regulat ions the company has of its membership data and devise plans for how to use this dataand improving procurement efficiency with the goal of enhancing formulated relevant documents such as the “Regulations on the more effectively in the future. In addition the company carries outThe company regularly communicates with suppliers on how to resource use efficiency and operating effectiveness. Management of Press Release” and the “Marketing Activities a refined approach to the operation of online malls self-mediafurther improve product quality. The company requires suppliers Management Measures” to strengthen management and control platforms and fan communities. The company collects and

to establish a mechanism for information exchange so that if the over marketing activities. The company’s affiliated companies analyses user profiles and behaviours targets specific groups and

also formulate detailed management regulations following their provides them with a more personalised interactive experience. Inrespective business conditions including the “Regulations on the this way we use personalised product recommendations searchManagement of Promotional Videos and Brochures” “Regulations engines and marketing to enhance user stickiness satisfaction andon Advertising and Publicity Management” “Regulations on the loyalty creating a new retail model that incorporates personalisedManagement of Marketing Activities” and “Regulations on the marketing.Management of External Publicity Information” etc. to regulate all

aspects of marketing management. The company continues to develop brand stories expand

communication channels and innovate new communication

To explore sustainable development strategies for its brands methods. News pictures videos activities and other publicity

the company has accelerated its transition towards digital channels are used to showcase the new brand styles and narrow

management with the aim of becoming a global leader in this the distance between brands and consumers using rich brand

area. The company comprehensively improved its data capabilities content and diversified forms of expression.and developed a membership system called OneID therefore

formed CTG DUTY-FREE’s own member tracking system. Based In 2024 the company offered products from 1524 brands with

on the results the company has been able to empower its brand; more than 363000 SKUs.enhance collaboration consumer services and marketing activities;

▼66 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Principles of Governance Prosperity People Planet 67

Robust Green and Intelligent Supply Chain

Impact Risk and Opportunity Management

The company aims to establish a green supply chain to align its operations with the nation’s goal to construct an ecological civilisation. Through effective risk and internal control management the company maintains its strong market reputation customer satisfaction and

Based on standardisation and driven by green intelligent and innovation the company has continuously been optimising its supply chain industry-leading position. By continuously optimising supply chain processes we enhance efficiency and effectiveness ensuring the

management. development of stable secure and sustainable supply chains.▍Supply Chain Security 1. Identification * Post-risk assessment and contingency measures: We

The company comprehensively reviews supply chain operations develop emergency response plans for natural disasters

collects and analyses data across all stages and conducts regular accidents social safety incidents etc. detailing protocols for

risk identification and assessment processes. We have established incident reporting on-site handling and personnel relocation.Governance Strategy risk information channels to maintain close communication with The company also conducts quarterly training and drills on

suppliers logistics partners and industry associations ensuring fire safety typhoon preparedness cargo security transportThe company has formulated the “Warehouse Goods Anti- Supplier admission timely updates on industry risks and developments. safety and specialised equipment operations to validate planTheft and Safety Management Regulations” the “Warehouse For public procurement projects such as open bidding open effectiveness and ensure that all staff possess the requisiteFire Prevention and Emergency Response Plan” the “Vehicle competitive negotiations and open inquiries the winning bidder 2. Assessment and prioritisation safety awareness and emergency response capabilities.Safety Transportation Regulations and Training Protocols” the or the bid awardee can be directly included in the company’s

“Special Equipment Safe Operations Management System” Supplier evaluation and management plan: We conduct * We establish systems to safeguard our operational premises supplier database. In addition to public procurement interested

the “Typhoon Prevention and Emergency Response Plan” thorough risk assessments of existing suppliers covering their goods transport vehicles business partners and personnel. suppliers should apply to relevant divisions for admissionthe “Hainan Provincial Duty-Free Goods Co. Ltd. Internal production capacity quality control and delivery capabilities. Regular warehouse safety self-inspections and inventory according to the procurement relationship and the managementAudit Regulations for Import-Export Activit ies” and the Historical data and experience are used to quantify the checks are performed to identify and rectify potential hazards procedures.“Hainan Provincial Duty-Free Goods Co. Ltd. Import-Export probability of identified risks escalating potential losses and and uphold the safety-first principle. At our warehousesBusiness Partner Management System”. In 2024 we updated safety hazards with a view to clarifying the severity and urgency we have realised full surveillance coverage and put in place

the “Procurement Management Measures” adding more Tiered supplier management of risks. Based on these assessments we formulate supplier facial and fingerprint recognition tools for access as well asdetailed provisions on supplier selection methods evaluation According to the company’s “Supplier Management Regulations classification strategies and engage in heightened monitoring intelligent lock systems for transport vehicles.procedures performance assessment criteria and tender (Trial)” the company based on the results of dynamic evaluation and management for high-risk suppliers. * The company implements internal audit systems to supervise

procurement practices while strictly enforcing procurement manages suppliers under a tiered system that includes:

approval processes. Simultaneously we actively seek new high-quality suppliers to

and inspect compliance in import/export activities.reduce reliance on single sources and diversify supply chain risks.Grade A (excellent suppliers) * We optimise inventory management plans by monitoring

The company has formulated more detailed regulations market fluctuations and sales data to determine rational

on the methods and procedures for supplier selection the When a division issues a procurement invitation Grade A suppliers 3. Monitoring stock levels; and we use inventory monitoring and inventory

methods used to assess suppliers and supplier bidding within the division should be given priority to participate in the We continuously collect supply chain logs including information alerts to promptly address overstocking or stockouts and

and procurement behaviour. During the year we formulated procurement project within its scope of business under the same regarding critical incident reports emergencies unresolved take corresponding measures to make timely adjustments.the “Supplier Management System” to establish a unified commercial terms. Grade A suppliers shall be downgraded to issues and future plans. Key risk indicators are monitored in By optimising inventory management we can reduce

supplier database and enhance the management of supplier Grade B if they have not had procurement transactions with the real-time through supply chain management systems which inventory costs improve the efficiency of capital use and

qualification reviews selection performance evaluations division for one year since the date of the last completed contract. are aligned with internal control early-warning mechanisms; and reduce supply chain risks caused by inventory problems.incentives penalties and supervision. Suppliers are required to regular reports on supply chain risk monitoring are provided to

demonstrate a sound commercial reputation tax compliance * The company regularly communicates with suppliers on how management to support decision-making.records sales performance and product quality. They must Grade B (good suppliers) to further improve product quality. The company requires

possess the necessary professional equipment technical suppliers to establish a mechanism for information exchange

capabilities and ongoing delivery capacity to fulfil contracts; Suppliers with which there is regular business cooperation.

4. Management so that if the product recall process is triggered due to

and they must have quality control and assurance measures * Operational procedures are streamlined and standardised product quality problems the company can take timely

and plans customer service support oriented to client needs to proactively mitigate risks. actions to protect the rights and interests of customers. The Grade C (suppliers subject to rectification)

and no history of legal violations in business operations. We company attaches importance to the handling of product

conduct periodic performance evaluations and implement quality problems and actively works with suppliers to ensure There are deficiencies that should be focused on and subject

tiered management of suppliers based on our evaluation of product quality standards are met so that our users can to rectification. Generally procurement transactions shall be

compliance and service quality. shop with confidence.suspended during the rectification period. For an individual supplier

with which a procurement transaction cannot be suspended the

In the process of selecting and approving suppliers we purchaser shall negotiate with the main person responsible inform

conduct research and studies on the supplier market steadily the supplier to improve its service level and supply quality and try Metrics and Targets

strengthen supplier development and require that domestic to develop or cultivate alternative suppliers.suppliers be certified through a state-certified supervisory Data regarding the company’s suppliers in 2024 is as follows:

and management information platform. The company reviews

suppliers’ certification information and business information Grade D (suppliers should be phased out) Metrics Tier 2 metrics Unit 2024

runs checks to determine whether suppliers have any record of Total number of brand partners / Number 631

legal or regulatory violations and strictly implements supplier Suppliers with which procurement transactions should be

audit and selection processes. suspended for three years. Chinese Mainland Number 202

Number of brand partners by

Hong Kong SAR Macau SAR and Taiwan region Number 140

geographical region

In according with the requirements of the SASAC the company Overseas Number 289

implements a supplier evaluation model that combines dynamic Total number of non-brand suppliers / Number 3392

evaluation and annual qualification inspection and under which

Chinese Mainland Number 3326

the dynamic evaluation results serve as an important basis for Number of non-brand suppliers by

supplier grading and selection. Hong Kong SAR Macau SAR and Taiwan region Number 0geographical region

Overseas Number 66

Classification of non-brand suppliers Total number of Level I suppliers Number 21968 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Principles of Governance Prosperity People Planet 69

Intelligent Supply Chain

▍Green Supply Chain Supplier ESG Management

Intelligent Supply Chain The company signs Sustainable Development Agreements with example we included goals for reducing packaging waste to save

suppliers to clarify responsibilities in respect of environmental resources and promote sustainable development. In 2024 we

protection and social accountability. During supplier qualification conducted in-depth communication with and audits of suppliers

We are committed to digitalising and visualising the supply chain As a result operational efficiency is improved for enterprises and assessments we evaluate factors including product quality to ensure they meet the latest environmental standards and

system and improving its efficiency and resilience by improving supply chain partners and they are able to engage in harmonious requirements. For example we give priority to suppliers with ISO

information transparency. Through a visualised supply chain win-win cooperation. pricing delivery timelines environmental compliance and

system we can monitor and track the logistics inventory deliveries social responsibil ity. In addition we regularly collect data 14001 certification for environmental management systems. In

and other key indicators along the entire supply chain in real time. The company considers the geographical location and climate regarding suppliers’ sustainability and ESG performance verify terms of supervision we have strengthened our mechanism for

Using visualised data the management and relevant teams can of key suppliers in its supply chain management. Through the their environmental certification credentials (e.g. ISO 14001) evaluating and monitoring suppliers’ environmental performance.clearly understand the status and trend of the supply chain. A visualised intelligent supply chain platform logistics personnel can and conduct annual risk assessments related to suppliers’ For procurement projects exceeding CNY5 million during the

digitalised supply chain system can be used to more accurately identify optimal shipping routes and prioritise deliveries to reduce environmental and social factors. prequalification stage bids are evaluated based on whether

predict demand optimise inventory management and achieve carbon emissions. We have implemented an advanced logistics suppliers have obtained the ISO 14001 certification. Shortlisted

rapid responses and flexible adjustments of the supply chain transportation management system that is able to intelligently Meanwhi le the company urges suppl iers to use more suppliers must demonstrate robust environmental protection

reducing costs and risks. analyse optimal loading plans based on real-time order data. In environmentally friendly products and services. For example capabilities and submit Safety and Civilised Construction Plans so

this way the company ensures each logistics vehicle achieves suppliers are asked to use recyclable materials no-glue cartons we can ensure they will adhere to local environmental requirements

The company is clearly aware of the key role played by suppliers maximum load efficiency minimising empty runs and partial loads and other environmentally friendly packaging materials. The during operations.in the supply chain. Data exchange and supply chain integration and reducing fuel consumption and carbon emissions. Additionally environmental requirements and audits of suppliers are also

between suppliers manufacturers and distributors is achieved we conduct regular training for drivers and dispatchers to enhance tightened. In terms of oversight we conduct regular reviews to monitor

through a visualised platform and digitalised supply chain helping their understanding and skills in respect of efficient transportation suppliers’ environmental performance with a focus on their

provide standardised and digitalised information of merchandise. and ensure that resource utilisation is maximised for each trip. We recently updated the company’s procurement policies and implementation of environmental pol icies and measures.guidelines and defined environmental requirements in detail. For Meanwhile the company fosters collaborative partnerships with

Green Warehousing suppliers to advance shared sustainability goals.The company is actively responding to national policies in warehouse surpass the previous height limits imposed by manual

the comprehensive implementation and promotion of green order picking. As a result the warehouse has been able to expand Setting the Industry Benchmark for High-quality Development

warehousing. We aim to reduce transportation costs and improve the number of shelf layers from 4 to 7 which has doubled its cargo

warehousing efficiency in order to conserve energy and reduce box storage capacity from 4500 to 9000. In addition the box-type

emissions. robot operates in a paperless manner by skipping order printing.▍Following the Trends of the Time to Promote Industry Development

The company adopts a scientific and reasonable warehouse The company has promoted robotic sorting in the Sanya

layout to integrate warehouses and ensure optimal loading E-Commerce warehouse Sunrise Shanghai e-Commerce On the global stage the company is using international events leveraging the expo’s spill-over effects to expand and support the

capacity and vehicle utilisation. In the process of warehouse warehouse and other sites. The intelligent console intelligently such as the China International Consumer Products Expo (CICPE) tourism retail market.operations goods are stored and handled taking into account monitors the entire process which greatly improves picking the Trinity Forum and the Boao Forum for Asia (BFA) to tell a new

their characteristics and shipping requirements to minimise accuracy and sorting efficiency. In 2024 the company installed an story about the tourism retail industry in China. We are calling for

inventory losses. At the “CICPE Sub-Venue” which was held for the first time in automated sorting system at the Sunrise China Winter Olympics

Warehouse enabling intelligent handling picking and sorting. This enhanced cooperation among all stakeholders to deliver a bright 2024 the Haikou International Duty-Free Shopping ComplexThe company gives priority to the use of energy-saving significantly improved operational efficiency and storage density per future for the industry. launched the themed campaign “Embrace New Consumptionenvironmentally-friendly and recyclable logistics equipment and unit area and reduced land use and energy consumption. Enjoy Duty-Free Shopping”. During the expo it hosted pop-up

facilities such as LED lighting and clean energy equipment. Harnessing the 4th CICPE China Duty Free Group launched exhibitions such as the “Latest Domestic Consumer Products”

The company has fully applied artificial intelligence (AI) and diverse activities in Hainan to stimulate consumption exhibition a jade culture exhibition (“Jade Path”) Li ethnic cultural

remote control technologies to improve overall warehousing performances (“Li Rhythms”) and an immersive interactive game

and logistics efficiency with a view to reducing costs From 13 to 18 April 2024 the fourth China International Consumer (“Secret Forest”). Additionally the complex set up two major

increasing efficiency and promoting green development. A Products Expo was held in Hainan province under the theme “Share runways for the “4th CICPE Fashion Week” organising nine fashionwarehouse management system is installed and adopted in Open Opportunities Co-create a Better Life” featuring over 4000 shows (which included brands such as Mini Mode and Stolen

each centre to standardise warehouse operations in a more brands from 71 countries and regions. This marked the fourth year Stores) and a fashion dialogue forum.scientific and reasonable way to improve the efficiency of in which the company has participated in the expo. The company

warehouse management and to reduce energy waste. We

have deployed the Internet of Things (IoT) and management established a “CDF New Consumption Scenarios” exhibition This array of exhibitions and activities attracted significant attention AGV robots storage Clothing hanging chains

control systems such as automated guided vehicle (AGV) zone at the Haikou International Duty-Free Shopping Complex to from expo attendees and tourists. During the event Haikou

robots and autonomous case-handling robots (ACR) and showcase innovative consumer experiences. Concurrently the International Duty-Free Shopping Complex received nearly 100000

automatic equipment such as clothing hanging chains company’s Hainan stores actively launched promotional activities visitors representing a 35% increase compared to pre-expo foot

and four-way shuttles for integrated storage handling and traffic.warehousing in logistics centres in Shanghai Shenzhen and

Hainan. These systems and equipment enable intelligent

handling picking and sorting and optimise processes for

inbound warehousing inventory management replenishment

sorting and shipping. Compared with traditional warehousing

the operational efficiency and storage capacity per unit are

significantly improved substantially reducing land use and Four-way shuttles and AGV robots storage

energy consumption.The box-type robot can pinpoint and transport goods with specific The company gives priority to partners who focus on

SKUs enabling higher sorting precision. The official launch of the environmental protection and sustainable development

box-type robot has significantly improved the overall operating to ensure that all players involved in the supply chain are Opening up new consumption Fashion shows The expo and consumpt ion Promotional activities in cdf storescapacity of the Qianhai e-commerce warehouse and doubled committed to emissions reduction energy conservation and scenarios and driving the “CICPE promotion activities created a in Hainanits order picking capacity resulting in an error rate of less than intelligent optimisation. + Duty-Free” consumption trend vibrant atmosphere

1/10000. Moreover the box-type robot has also helped the

As of the end of the reporting period the company’s warehousing

centres covered a total area of 586000 square metres.▼▼▼▼

▼

▼ ▼70 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Principles of Governance Prosperity People Planet 71

* Providing quality services during the Boao Forum for Asia * Participating in the third China (Macao) High-Quality * The 2024 Asian High Fashion Art Exhibition held its

Consumption Exhibition grand opening at the cdf Sanya International Duty-

The 2024 Boao Forum for Asia (BFA) Annual Conference was held in Boao Hainan from 26 to 29 March 2024. The company’s Free Shopping Complex

Qionghai Boao Duty-Free Shop meticulously planned and implemented comprehensive service solutions that aligned with international From 25 to 29 September 2024 the cdf Grand Lisboa Palace

conference standards to fully meet the diverse needs of attendees. The store successfully completed its mission of offering high-quality Shop operated by CDFI joined the third China (Macao) High- On 15 October 2024 the Asian High Fashion Art Exhibition

service support contributing to the development of the Hainan Free Trade Port through concrete actions. Quality Consumption Exhibition & Hengqin Global Bay Areas officially commenced at the You Art Centre (有时艺术中

Forum. At the event we offered a preview of the cdf Macau 心) within the cdf Sanya International Duty-Free ShoppingWatch & Jewellery Festival under the theme “Journey Through Complex. The exhibition highlighted the unique charm of Asia’sTime” showcasing exquisite craftsmanship from multiple watch fashion culture and served as a catalyst for advancing Sanya’s

brands and delivering interactive experiences that combined fashion consumption industry.visual tactile augmented reality (AR) and artificial intelligence

(AI) elements.

* Attending the Trinity Forum 2024 marking our second year of attendance

On 5 November 2024 the Trinity Forum – which was jointly

organised by the Moodie Davitt China Travel Retail Report (the

authoritative media report in the global tourism retail industry) Grand opening of the 2024 Asian High Fashion Art Exhibition

ACI World and ACI Asia-Pacific & Middle East – was held Preview of the cdf Macau Watch & Jewellery Festival

in Ho Chi Minh City Vietnam. The company attended the

Trinity Forum 2024 as a Platinum Partner of the event. Zhao

Feng Deputy General Manager of China Duty Free Group

participated in the forum while Sun Fang Assistant General * Supporting the establishment of the Hainan Offshore Duty-Free Association to drive the high-quality

Manager delivered a keynote speech on the opening day. development of the industry

She shared insights on the recovery of China’s tourism and

consumer markets the rise of domestic “Guochao” (China-chic) In full alignment with President Xi Jinping’s series of important directives on the construction of the Hainan Free Trade Port and the

brands and the company’s product selection and channel inspiring speech he delivered during his inspection of the Sanya International Duty-Free Shopping Complex the Hainan Offshore Duty-

strategies. Free Association (“the Association”) was officially approved on 5 August 2024. This milestone heralds a new phase for Hainan’s offshore

duty-free sector and is expected to foster coordinated development among market entities encourage the development of industry

ecosystems and lead to the creation of a world-leading industrial cluster.Sun Fang Assistant General Manager of China Duty Free Group delivered

a keynote speech on the opening day of the forum The Association which operates under the supervision of the

Department of Commerce of Hainan Province was jointly

initiated by the Department of Commerce and eight entities:

China Duty Free Group (Hainan) Operation Headquarters Co.* Attending the 2024 TFWA Asia Pacific Conference to explore opportunities in tourism retail Ltd.; China Duty Free (Haikou) International Duty-Free City Co.Ltd.; Hainan Provincial Duty Free Co. Ltd.; Hainan Tourism

Investment Duty-Free Co. Ltd. (海南旅投免税品有限公司);

From 12 to 16 May 2024 the Tax Free World Association Global Consumer Goods (Hainan) Trading Co. Ltd. (全球消

(TFWA) Asia Pacific Exhibition & Conference was held in 费精品(海南)贸易有限公司); CNSC (Sanya) Duty-Free Co.Singapore. As a Diamond Sponsor the company engaged in Ltd. (中服(三亚)免税品有限公司); Shenzhen Duty-Free Group

fruitful exchanges with industry partners at the event. On 14 (Hainan) Operations Headquarters Co. Ltd. (深免集团(海南)

May during the “China Watch” seminar themed “Opportunities 运营总部有限公司); and Hainan Outlets Tourism DevelopmentCo. Ltd. The Association aims to foster a market environmentand Development” the company’s personnel discussed trends that supports governmental coordination competition and

in the duty-free and tourism retail sectors. collaboration among market players collective promotional

efforts and bargaining power in respect of global procurement.First inaugural general assembly of the Association

The company participated in the TFWA Asia Pacific conference

▼

▼

▼

▼ ▼72 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Principles of Governance Prosperity People Planet 73

▍Diligent industrial planning bears fruitful results The cdf store on Astro Ocean Piano Land opened for business

As a leader in duty-free business the company has been building its presence in commercial complexes and cruises with a focus on duty- On 25 July 2024 Piano Land Astro Ocean’s first cruise ship set sail from its home port in Shanghai. cdf’s duty-free store opened

free business for many years and it has maintained its leadership in the travel retail industry. on the Piano Land cruise ship on the same day offering a wide range of options and convenient shopping services for passengers.With a gross tonnage of 70000 Piano Land is 261 metres long and 32 metres wide and has a capacity of 1800. The duty-free store

on the cruise ship is located on the 6th and 7th floors covering an area of 650 square metres. It features a comprehensive collection

The Dalian Downtown Store reopens delivering new momentum in duty-free consumption of world-class luxury brands covering a wide range of categories including wine leather goods bags accessories sunglasses

cosmetics perfume and food.In August 2024 the Ministry of Finance the Ministry of

Commerce the Ministry of Culture and Tourism the

General Administration of Customs and the State Taxation

Administration issued a joint notice to refine downtown duty-

free store policies and standardise management practices.On 31 December 2024 the company’s Dalian Downtown

Store reopened marking the first downtown duty-free

store launched under the new policy framework. Dalian – a

pivotal economic trade port industrial and tourism hub in

northeastern China and a gateway for the internationalisation

of the region – hosts the store on the ground floor of the

Nova Xinghai Centre (新星*星海中心) which is only two

kilometres from iconic Xinghai Square. The store offers an

array of products spanning beauty and skincare perfumes

and fragrances watches and jewellery sunglasses alcoholic

beverages and gourmet foods catering to varied consumer

demands. Leveraging policy advantages the store also sells Grand opening of the Dalian Downtown Store

domestic “Guochao” (China-chic) brands giving them equal The Astro Ocean cruise ship that cdf’s duty-free store on the Astro Ocean cruise shiphouses cdf’s duty-free store

exposure alongside international labels.The first Wuliangye franchise store under the travel retail model opened in Sanya International Duty-Free

The cdf Adora Magic City store opened on the first made-in-China cruise ship Shopping Complex

On 1 January 2024 the company opened a store on Adora Magic City the first made-in-China cruise ship. Adora Magic City is 323.6

metres long with 15 decks and can accommodate 5246 guests. The cdf Adora Magic City store has an area of nearly 1200 square Although sales of domestic liquor products by duty-free

metres and a collection of more than 200 well-known Chinese and foreign brands across a range of categories including cosmetics stores are restricted under offshore duty-free policies CTG

wine luxury jewellery and watches. DUTY-FREE has adopted a proactive approach and started

selling domestic liquor products in the Hainan travel retail

market under an innovative duty-paid business model. On

19 September 2024 the first Wuliangye store under the

travel retail model opened in Sanya International Duty-Free

Shopping Complex marking a new chapter in the partnership

between the two groups.The first Wuliangye store under the travel retail model opened in Sanya

International Duty-Free Shopping Complex

Interior of Adora Magic City cdf Adora Magic City store

▼▼

▼

▼▼

▼74 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Principles of Governance Prosperity People Planet 75

▍Telling China’s Story: CDF Expands Globally Singapore

The company actively explores overseas markets in an effort to align with the long-term growth of international tourism. Building on its

established presence in Asia Pacific in 2024 the company entered Japan Singapore and Sri Lanka and signed a strategic memorandum of The Asia Pacific region is the key market for cdf’s expansion and Singapore Changi Airport is also one of the most important markets

understanding (MOU) with Vietnam’s Imex Pan Pacific Group (IPP Group) marking significant milestones in the company’s global expansion. for tourism retail. On 9 February 2024 the company partnered with Qeelin – a luxury jewellery brand under Kering Group – to open a

boutique at Singapore Changi Airport.Cambodia

At the end of 2024 the company had opened three downtown duty-free stores in Phnom Penh Siem Reap and Sihanoukville along

with one airport duty-free store at Siem Reap-Angkor International Airport.During the 2024 Cambodia-China People-to-People Exchange Year in order to deepen cultural tourism and service exchanges and

cooperation between China and Cambodia Deputy Governor of Siem Reap NGOUV SENGKAK and 22 tourism representatives visited

the cdf Angkor Downtown Duty-Free Store and held the “Siem Reap Tourism Development Forum” to discuss collaboration in regional

tourism.The Qeelin Boutique at Singapore Changi Airport

On 30 October 2024 the company collaborated with the

German high-end brand Modern Creation München (MCM)

to launch a luxury store in Terminal 3 of the airport. This is the

company’s second luxury store at the airport reinforcing its

commitment to Singapore’s tourism retail market.The Siem Reap Tourism Development Forum Representatives from the tourism industry visiting the cdf Angkor Downtown Duty-Free Store

The Singapore Changi Airport store jointly operated by cdf and MCM

Japan

Sri Lanka

In 2024 the company actively explored the demand in

overseas markets for Guochao gold jewellery. As part of this On 26 September 2024 the company officially opened its first

effort we opened “Japan Duty Free GINZA” – an airport-style duty-free shop in Sri Lanka cdf Sri Lanka Duty-Free Store

downtown store in Tokyo’s Ginza district – which features a in the “The Mall” shopping centre in Port City Colombo. The

dedicated counter for Chow Tai Fook Jewellery a renowned store offers a diverse range of high-end products covering

Chinese luxury brand. Travellers and residents can place more than 400 internationally famous brands including

duty-free orders at the store and then collect their goods at fashion accessories renowned watches and jewellery

the Haneda or Narita airport upon departure. perfumes famous wines specialty food from around the

world and souvenirs. As the company’s first venture in South

Asia the store fills a gap in the local duty-free market and

CDF’s “Japan Duty Free GINZA” store in Tokyo’s Ginza district introduces a premium shopping experience to the region.cdf Sri Lanka Duty-Free Store

Vietnam

On 6 November 2024 the company and Vietnam’s IPP

Group signed a MOU and formally established a strategic

partnership with the aim of exploring opportunities in tourism

and travel retail while fostering economic collaboration

between China and Vietnam.cdf and Vietnam’s IPP Group signed a MOU and formally established a

strategic partnership

▼

▼

▼

▼

▼▼

▼76 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Principles of Governance Prosperity People Planet 77

“Guochao” (China-chic) brands going global Engaging in Charity Initiatives to Act as a Responsible Corporate

To implement the national strategy of vigorously promoting models to accommodate diverse brand and market needs. For

the overseas expansion of Guochao products and fulfilling its instance we secured exclusive agency agreements in Thailand ▍Environmental Protection

responsibility as a central state-owned enterprise in advancing with iFLYTEK and Chamelo alongside a general agencyglobalisation the company established the Guochao Brand agreement for Asia Pacific tourism retail channels with Chamelo. The company leverages its strengths to actively promote green environmental practices prioritising the concept that “development andOverseas Expansion Project Team in May 2024. Under this In addition we have opened a joint venture flagship store with environmental protection should go hand in hand” and exemplifying corporate social responsibility.initiative we aim to fully promote trendy domestic goods 52TOYS in Hong Kong highlighting the project’s innovative andaround the world and enhance the global influence of the adaptable approach. Aligned with its strategic focus on Hainan the company’s Sanya Downtown Store launched the “Clean the Blue Ocean Guard the Green“Made in China” brand. For the Guochao project the company Forest ” volunteer initiative. For this campaign which is tailored to the duty-free industry we are collaborating with local organisations to

signed a strategic cooperation agreement with the Jinjiang Brand collaborations. We have made significant progress by conduct over 15 tree-planting beach-cleaning and ecological educational activities. These efforts received wide coverage from media

Municipal People’s Government and successfully organised partnering with leading brands. In respect of these partnerships outlets such as Sanya Daily and People’s Daily. In 2024 the Sanya Downtown Store recruited 650 registered volunteers investedthe “Government-Enterprise Collaboration: Jointly Charting iFLYTEK’s initial order is expected to reach 2000 units while approximately CNY180000 and organised 30+ eco-protection traffic management and community service initiatives with over 2500participants volunteering 1000+ hours of service.Development” special promotional event. Additionally the “Rising Chamelo will operate on a pilot basis at the Sanya Haitang BayTide Grand Event: Setting Sail for Global Markets” series for store. 52TOYS is planning a pop-up store in the GLP Grand

Guochao sports brands debuted at the Haikou International Hall and Bebebus will open its first outlet at New Town Plaza.Duty-Free Shopping Complex generating total sales in excess These developments underscore the project’s effectiveness in

of CNY100 million. With these efforts we comprehensively driving brand collaboration.deepened collaboration with Chinese sports enterprises making

significant progress in the internationalisation of Chinese brands. Developing a Guochao zone. A dedicated Guochao zone was

launched at the Macau cdf Grand Lisboa Palace Shop featuring

Since establishing the Guochao Brand Overseas Expansion over 10 cosmetics brands including Rellet Dr. Alva Comfy

Project in 2024 the company has made endeavours across and CHANDO. As part of this effort we also collaborated with

multiple fronts – including introducing brands piloting business eBest the largest Chinese e-commerce platform in Australia to

models engaging in brand collaborations on a trial basis advance the overseas expansion of domestic cosmetics brands

developing a Guochao zone promoting 3C electronics reflecting the project’s impact on regional development.exports expanding offerings of Chinese-style tea beverages On 12 March 2024 we held the launch ceremony for the “Clean the Blue On 22 April 2024 the company organised the “Cherish the Earth Clearand supporting new energy vehicle initiatives – and achieved Promoting 3C electronics exports. Discussions are underway Ocean Guard the Green Forest” volunteer service brand and the “Journey Waters” beach-cleaning campaign at Haitang Square in Haitang districtof Light: Dancing with the Forest” tree-planting activity at the Qingmei Port

substantial results. with Thailand’s One Bangkok and Singapore’s Frasers Mangrove Reserve in Yalong Bay Sanya

retailers to establish 3C electronics pop-up stores with a view

Introducing brands. The project team has secured an intention to facilitating the global outreach of brands like Bear Home

to cooperate with over 80 Guochao brands spanning apparel Appliances (小熊家电) and Usmile. These initiatives mark the

sunglasses electronics fragrances and cosmetics. Notable proactive strides the project is making in the 3C sector.brands such as KALME Chamelo iFLYTEK Rellet and Dr. Alva

have formally signed contracts with the company demonstrating Chinese-style tea beverage initiatives. By engaging with

the project’s strong brand appeal. leading brands such as CHAGEE and Molly Tea we are

exploring franchising and joint venture models with plans

Piloting business models. The team has actively explored to introduce these brands in overseas travel retail channels

flexible cooperation frameworks including in respect of trade underscoring the project’s commitment to promoting Chinese

consignment joint ventures distribution and self-operated tea culture globally.On 28 May 2024 leveraging the Haitang District Party Building Alliance On 8 June 2024 a group of pioneers from the Sanya Downtown Store

New energy vehicles. The project team (党建大联盟交流平台) the Sanya Downtown Store participated in the transformed into “Guardians of the Blue Planet” conducting marine

is exploring implementation pathways “Haitang Vision” Phase 2 roadshow event titled “Building Ecological conservation activities at Wuzhizhou Island Tourist Area and Sanyafor new energy vehicle agency and Civilisation Practising Green Development – Green Vitality” under Haichang Fantasy Town

the theme Haitang in Action. Focusing on fulfilling the company’s

distribution operations in Hong Kong with responsibilities as a central enterprise and advancing ecologicala view to broadening product boundaries conservation the branch promoted its “Integrity in Operations Excellenceand pursuing innovative approaches and in Service” model and secured second place in a competition among key

breakthroughs in the new energy vehicle cultural-tourism enterprises in the region

sector.The “Guochao Summer Play” display The Guochao Cosmetics Hall at The Guochao × Sports catwalkat the cdf Haikou International Duty- the Haikou International Duty-Free show From 24 to 28 June 2024 the Sanya Downtown Store held “Clean the On 5 December 2024 (International Volunteer Day) the Sanya DowntownFree Shopping Complex Shopping Complex Blue Ocean Guard the Green Forest” week. During this time nearly 100 Store organised 28 volunteers for the “Green Mountains Clear Waters”

staff and volunteers undertook beach and forest cleanup efforts in three ecological research activity at Nanta Reservoir in Yucai Ecological Zone

rounds at Coconut Island Sanya.▼▼

▼▼▼

▼▼

▼ ▼78 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Principles of Governance Prosperity People Planet 79

Educational Support

On 20 September 2024 the company collaborated with On 29 May 2024 28 Party members from the Sanya Downtown The Sanya Downtown Store actively undertook efforts to Additionally the store dispatched a group of young

French brand Guerlain on a bee conservation project visiting Store visited a children’s charity in Jiyang district Sanya to meet its social responsibility by prioritising local employment professionals to teach at youth night schools in Jiyang and

Xuhui District New World Primary School in Shanghai to conduct the “Love Builds Dreams Warmth Touches Hearts” and refining campus recruitment. In 2024 the store recruited Haitang districts with a view to helping youth in Hainan Free

promote bee protection to 140 second-grade pupils through initiative. They donated milk bread tissues and other supplies to approximately 50 graduates contributing to regional Trade Port acquire skills while enriching their leisure lives and

themed workshops with a view to fostering environmental 19 children with special needs (referred to as “Slow Angels” – those economic development and talent retention. nurturing their intellectual growth.awareness among young people. facing developmental delays speech impairments or mobility

challenges due to congenital or acquired conditions) offering care

and support for these individuals.Community Initiatives

The company has organised annual clothing donations for 16 On 6 February 2024 in the run-up to Lunar New Year the Sanya On 11 October 2024 the Riyue Store (日月店) partnered with On 5 March 2024 during peak hours at Sanya International

consecutive years to deliver care to those in need. In 2024 Downtown Store sent volunteers to the Jiyang District Elderly Care Haikou Qiongshan District authorities to visit the Hongming Elderly Duty-Free Shopping Complex 30 volunteers in red vests

Hangzhou cdf donated 80 kilograms of used clothing to the China Home for the “Spring Warmth Deep Compassion” event. Care Home in Sanmenpo town Haikou offering companionship conducted a traffic safety campaign at a T-junction.Charity Federation and Hohhot cdf launched a clothing drive via and support to seniors who might otherwise have l imited

the “White Whale Platform” to help keep people warm. opportunities to socialise.80 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Principles of Governance Prosperity People Planet 81

During the 9th “China Charity Day” the Sanya Downtown In November 2024 volunteers from the Sanya Store assisted in On 5 March 2024 the Riyue Store organised a blood On 30 September 2024 the Riyue Store participatedStore co-hosted a charity bazaar in Haitang district to maintaining order at the 12th National Traditional Ethnic Games’ donation drive and received successful donations from 55 in Qiongshan district’s “75 Years of Glory: Party Flagspromote philanthropy rallying local participation and wrestling venue and the hotel that housed the athletes. people who contributed 12300 millilitres of blood a portion Illuminating Splendour” volunteer music gala in Haikou.advancing charitable causes. of which was used to provide emergency support for a

university student.Following Typhoons Yagi and Trami Hainan On 5 March 2024 volunteers from the Meilan Store In February 2024 freezing rain and snowfall occurred in In 2024 our subsidiaries established dedicated volunteer groups.DF staff engaged in post-disaster cleanup provided guidance luggage assistance and inquiry Hubei province. In response Wuhan cdf formed a volunteer For example Chengdu cdf’s Youth League encouraged staff

debris removal and sanitation efforts to help support at Haikou Meilan International Airport team of 11 people who donned eye-catching volunteer vests to register as volunteers on the official “Civilised Rongcheng”

restore the area. embodying the “Spirit of Lei Feng”. and went straight to the front line to provide compassionate volunteer platform and actively participate in community volunteer

services such as inquiry guidance and question-and-answer services mandating 20 or more service hours per year. Meanwhile

assistance for passengers conveying warmth through Hangzhou cdf formed the “Qihang Pioneer Team” to address

practical actions. urgent operational tasks through volunteer efforts.In 2024 the company conducted 59 ESG-related activities

including a number of volunteer initiatives with 3580 employees

contributing a total of 7940 hours.Overseas Social Responsibility

On 1 August 2024 CDFI organised volunteers for a tree-planting activity in Hong Kong’s country parks with a view to

enhancing green ecosystems and biodiversity. A total of 500 saplings including Ardisia punctata Daphniphyllum calycinumand Helicia cochinchinensis were planted symbolising resilience in line with the concept of “rooting downward growingupward and standing firm against the wind”.03

People

Employee Rights and Promoting 84

Their Interests

Diversified Training to Promote Staff 91

Development

Operational Safety and Physical and 94

Mental Health

CTG DUTY-FREE actively responds to United Nations (UN) Sustainable

Development Goals (SDGs) 3 5 and 8. As a people-oriented organisation we

care for our employees. We provide them with training and create a platform

for the company and our people to develop together.84 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Principles of Governance Prosperity People Planet 85

Employee Rights and Promoting Their Interests Holiday and Working Hours Management In accordance with national and local policies we have established

and implemented a welfare system to make timely and complete

payments of social insurance and housing provident funds for

We strictly observe regulatory requirements regarding national

employees; and we also offer annuities supplementary medical

▍Employee Rights statutory holidays employees are entitled to annual leave care canteen dining and other welfare programmes to our

maternity leave marriage leave parental leave parental care

staff. In this way we have built a multi-level welfare guarantee

We consistently uphold the “people-oriented” management philosophy regarding talent management and strictly comply with the leave for single-child families and additional blood donation leave system based mainly on social insurance with corporate welfare

Labour Law the Labour Contract Law and other laws and regulations as well as the international human rights and labour conventions parent-teacher conference leave etc. According to the company’s programmes acting as a supplement. 60% of annual remuneration

and protocols that China has signed such as the Equal Remuneration Convention and the Elimination of Discrimination in Respect situation we implement two working hour systems: standard and for corporate managers at all levels is linked to corporate

of Employment and Occupation. We respect the Declaration on Fundamental Principles and Rights at Work issued by International comprehensive working hours. We strictly enforce the monthly 174

Labour Organization (ILO) and Guiding Principles on Business and Human Rights by the UN. We adhere to the principles of honesty performance assessments. Actual performance-based pay working hour working system. As for excess working hours we

trustworthiness fairness and justice in our dealings with employees and we fully guarantee their rights and interests. correlates with both enterprise evaluation scores and individual arrange compensated leave or pay overtime according to labour

managerial assessments.laws and regulations. While we strictly adhere to the Labour Law

● Governance stipulation that employees’ monthly overtime shall not exceed 36 Regarding remuneration compliance all employee compensation

hours to effectively protect employees’ rights to rest.The company has established a clear governance framework for employee-related matters. The responsibilities of the Human Resources and welfare systems undergo rigorous scrutiny during the

Department and its subordinate teams are defined in the “Headquarters Department Responsibilities and Organisational Structure”. formulation and revision stages to ensure they are aligned with

Meanwhile we have specified the implementation measures for tenure-based and contractual management of managerial personnel in Comprehensive Remuneration Management corporate policies and legal and regulatory requirements. Prior to

the “Performance Management Measures for Headquarters Employees” which establishes fundamental principles for comprehensive implementation these systems are also subject to strict review

performance evaluation and clarifies supervision mechanisms for employees’ work. The company adheres to the concepts of market-oriented procedures conducted by the staff representative assembly.remuneration regular reviews of applicable salary standards Meanwhile the Party Committee conducts inspections and

specialised audits to comprehensively examine subsidiary

Human Resources Department/Party are conducted determines remuneration standards based on

the “double benchmarking” principle and matches the incentive enterprises’ salary and welfare performance on an annual basis.Committee Organisation Department

General Manager/Department Head level with the company’s development and talent strategy. The

company has established a performance and remuneration Democratic Management

management system which aligns with the prioritises performance

Deputy General Manager/General Deputy General Manager/General and follows the principles of fairness positive motivation and

We continue to improve its democratic management system which

Manager Assistant/Deputy Department Manager Assistant/Deputy Department sustainable development. We set the basic and performance salary

is based on the trade union and the staff representative assembly.Head/Department Head Assistant Head/Department Head Assistant ratios based on market practices. In this regard the company

The company’s trade union is committed to safeguarding collective

determines the basic salary based on the position duties personal

bargaining rights of employees; and it carries out its work following

capabilities and other factors. The performance salary is linked to

the Trade Union Law the Constitution of the Chinese Trade Union

the company’s comprehensive performance the department’s

Organisation & Cadre Talent Recruitment Talent Development Compensation & Performance Employee Relations and other laws and plays a vital role in public affairs. The trade

Management & Allocation & Training Benefits Management Management Management performance and the individual’s performance forming a union effectively promotes the participation of employees in the

Team Head Team Head Team Head Team Head Team Head Team Head mechanism of effective incentives and restraints. company’s democratic management and deliberations involving

major issues concerning the vital interests of employees.The company actively implements the spirit of common prosperity

Organisation &

Cadre Management Workforce Planning

Talent Development Compensation Performance Employee Relations

& Training Management Management Management to share the fruits of its corporate development with employees. In Specialist When formulating revising and deciding rules regulations and Specialist Specialist Specialist Specialist Specialist addition to basic salaries we have implemented enhanced salary material issues that are directly related to the vital interests of

safeguards for front-line staff and strengthened baseline protections

our employees such as labour remuneration working hours

for lower-income employees and employees whose positions

Recruitment & rest and leave labour safety and health management insurance Benefits may expose them to hardship danger and heavy workload. The

Allocation Team Management and welfare employee training labour discipline headcount company formulates “One Enterprise One Policy” wage standards

Specialist Specialist management etc. we collect opinions from general meetings based on regional average wages and our salary levels are

of employee representatives to ensure that decisions are made

significantly higher than the local minimum wage standards. Any

through consultation and on an equal basis. We then make public

employees who work a full year and receive incomes below this

● Strategy Management of impacts risks and Employment Management announcements to all employees or notify the relevant departments standard are compensated accordingly.opportunities or individuals after decisions are made. Employees may also

In regards of prohibiting child labour we strictly abide by labour appeal to the trade union through email WeChat inperson The company is actively advancing medium-to-long-term incentive

laws and regulations check ID card during on-boarding procedures talks and other channels. In 2024 the company implemented

Recruitment Management mechanisms. In terms of medium – and long-term incentives the and forbid the employment of child labour. In terms of preventing requirements to strengthen the Women Employees Committee’sforced labour we strictly prohibit restricting employees’ freedoms company comprehensively implements a system under which organisational structure studied the “Work Regulations for theThe company has developed a comprehensive employee or forcing employees to work by collecting deposits detaining corporate managers at all levels are contractually managed on a Trade Union’s Women Employees Committee” and enhanced

recruitment system and has recruited our employees through documents or engaging in threats. During the reporting year tenure basis. Under the system managers are required to sign

on-campus recruitment job fairs recruitment agencies online women employees’ committees at the corporate and subsidiary our company did not have any violations of laws and regulations contracts that reward them strictly in accordance with performance

recruitment platforms and internal recruitment. We sign labour involving child labour or forced labour. levels.appraisal results. Tenure incentives are only awarded to

contracts with employees. managers who meet the contractual performance standards. The

Resignations Management company has not yet implemented equity incentives or employee

We adhere to the recruitment principle of focusing both on integrity

and ability. We also respect differences encourage diversity and shareholding plans. We will introduce such measures in eligible Unless exceptional circumstances arise we general ly do

prohibit any form of discrimination from upholding the principles of enterprises when conditions mature.not voluntarily sever or terminate the labour relationship with

fairness impartiality and openness. Our company has formulated employees. If it is necessary to terminate or rescind an employee’s

hiring criteria according to the actual needs of each position labour contract we strictly follow the process in accordance with

without imposing any restrictions related to age gender ethnicity the requirements and procedures of labour laws and regulations.religious beliefs or other characteristics. For high-end talents Those who should be given economic compensation according to

we insist on a combination of external introductions and internal the law will receive corresponding compensation according to the

trainings attracting more talents on a selective basis and selecting legal requirements. The company generally does not try to restrict

the best candidates to target for recruitment. employees’ choice of new jobs. For cases involving competition

restrictions such restrictions are handled according to the signed

agreement.86 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Principles of Governance Prosperity People Planet 87

● Metrics and Targets The number of employees by gender

2024 2023 2023 2023 9285 Person 55.3% 7504 Person 44.7%

Total number of employees The number of ethnic minority employees The percentage of ethnic minority employees2024 2024 6775 Person 42.3% 9252 Person 57.7%

16027 1468 9.16 Female Male Person Person %

16789 Person 1169 Person 6.96% The number of employees by employee category

10 Person 0.06%

217 Person 1.29%

The percentage of ethnic minority

employees in the management The number of foreign employees The percentage of foreign employees 2023 16562 Person 98.65%

4.55% 504 Person 3.14% 2024 15917 Person 99.31%

102 Person 0.64%

10% 448 Person 2.67% 8 Person 0.05%

Senior Middle General

managerial roles managerial roles employees

The percentage of foreign employees The number of physically Females in the Board of Directors

in the management challenged employees and the Supervisory Committee The number of employees by age group

0.91% 128 Person 36.36% 7 Person 0.04%

431 Person 2.57%

1649 Person 9.82% 423 Person 2.52%

/ 134 Person 37.5% 2023 2023 6234 Person 37.13% 8045 Person 47.92%

2024 6670 Person 41.62% 6871 Person 42.87%

Females in the management Females in the senior managerial roles Females in the middle managerial roles 2024

1799 Person 11.22% 254 Person 1.58%

425 Person 2.65%

36.36% 25% 37.25% 8 Person 0.05%

Over 60 50-60 40-49 30-39 22-29 Below 22

34%20%35%

The number of employees by region

Share of women in management positions in revenue-generating

functions (e.g. sales) as % of all such managers Total number of new employees

484 Person 2.88%

694 Person 4.13%

36% 1905 Person 251 Person 1.50%

1978 Person 11.78% 418 Person 2.49%

/ 2949 Person 2163 Person 12.88% 108 Person 0.64%

2023 2023 10693 Person 63.69%

Internal hire rate 2024 2024 9767 Person 60.94%

2225 Person 13.88% 40 Person 0.25%

45.35% 2184 Person 13.63% 307 Person 1.92%

238 Person 1.48%

15% 727 Person 4.54%

539 Person 3.36%

North China East China South and Northwest Southwest Northeast China Hong Kong Overseas

central China China China SAR Macau

SAR and

Taiwan region88 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Principles of Governance Prosperity People Planet 89

The number of new employees by category ▍Employee Care

Based on the principle of “understanding our people meeting their needs and addressing their difficulties” we continuously strive to care

The number of new employees by gender The number of new employees by employee category for our employees’ needs. Our company also improves employees’ working conditions enhances and ensures their quality of life increases

their happiness and satisfaction and generally creates conditions that make employees “proud to work at CTG DUTY-FREE”.

0 Person 0.00%

2023 2023 4 Person 0.21%

1180 Person 61.94% 725 Person 38.06% 1901 Person 99.79%

2024 2024 Employee benefits

Female Male Senior Middle Generalmanagerial roles managerial roles employees In terms of employee benefits we have formulated the “AdministrativeRegulations on Assistance for Sick Employees and the Collective Welfareof Trade Unions”. The company’s trade union conducts complete

investigations to collect employees’ opinions. It sends warm and

The number of new employees by age group The number of new employees by ethnicity considerate blessings to employees on holidays and birthdays based on

their age tastes and living habits. The company demonstrates care for

0 Person 0.00% various groups such as employees with difficulties and female employees.

20 Person 1.05% 141 Person 7.40% 141 Person 7.40%

2023 131 Person 6.88% 2023 The company advocates an inclusive culture and fully considers the needs 194 Person 10.18%

558 Person 29.29% 1055 Person 55.38% of ethnic minority employees. For example we have set up a halal canteen 1570 Person 82.41% Halal canteen

2024 2024 for Hui staff. The total amount of employee benefits in 2024 is CNY248 million.

Over 60 50-60 40-49

Han ethnic Chinese ethnic China’s Hong Kong SAR Macau

30-39 22-29 Below 22 group minorities SAR Taiwan region and overseas

The number of new employees by nationality

141 Person 7.40%

2023

1764 Person 92.60%

2024

Chinese nationality Foreign nationality

2024 cdf dinner party and the “Auspicious Serpent Delivers Blessings and a Joyous New Year” Spring Festival activity organised by trade unions.

Employee turnover rate

Total employee turnover rate 15.71% of which employee voluntary turnover rate was 9.63%. We enhance staff well-being and belonging through diverse T h r o u g h t r a d e

Employee turnover rate

Employee turnover rate by category Employee turnover rate by age group Employee turnover rate by

activities including literary salons spring outings networking union subgroups

by gender geographical region events and hiking. t h e c o m p a n y

conducted over

Male 17.53% 16.09% Senior Over 60 52.94% 58.52% Chinese 18.14% 15.65% 20 spring outings

managerial 25% 9.09% Mainland

roles 50-60 12.53%

– including hiking

14.99%

China’s Hong flower appreciation

Female 14.33% 17.05% Middle 40-49 6.98% 8.95% Kong SAR exhibi t ion v is i ts

managerial 5.88% 4.82% 11.73% 12.22% Macau SAR and 30.54% 31.01%30-39roles a n d s p o r t i n g Taiwan region

General 22-29 19.23% 19.55% events – with nearly

employees 18.72% 16.77% Below 22 48.58% 39.57% Overseas 16.14% 22.31% 4 0 0 e m p l o y e e s

participating.

20242023

Staff library

▼

▼

▼90 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Principles of Governance Prosperity People Planet 91

Festival activities Reading and sports activities Diversified Training to Promote Staff Development

In terms of festival activities the subordinate In terms of reading and sports activities we also stage cultural programmes We have established talent-specific training systems that align with operations and international standards to build smooth career paths for

trade unions carried out a series of activities to and reading-sharing events to cultivate a “reading-friendly” culture. The our employees and provided them with a robust platform for their career development.celebrate special days such as International “Embrace Nature: Autumn Trek” at Yanqi Lake’s Western Hills trailsWomen’s Day the “May Fourth Happy Youth allows staff to relieve stress bond with colleagues and rejuvenate. In ▍Employee TrainingHike” “Infinite Childhood Sweetness” Children’s 2024 we participated in Group’s Second Staff Sports Games and won

Day events and “Ode to the Motherland” championships in five-a-side football badminton and table tennis and won The company regards strategic development as the core goal of training and is committed to establishing a robust talent development

National Day choir competitions. third prize in 3x3 basketball. We also released a “Creative Excellence Award” and training mechanism. Through a combination of online and offline trainings and under the management principle of “grading andto recognise employees who demonstrated a bold challenge-embracing classification and training for all employees” we independently provide various trainings to stimulate learning and cultivate talented

spirit. professionals who will support the company’s sustainable growth. At the same time the company adopts a multifaceted training approach

to boost engagement and satisfaction.In 2024 the company conducted a variety of tiered training activities:

Type of training

Senior Middle Front-line managers/

management management store managers General staffExternal offline programmes on Training on internal controls compliance Through live broadcasts special online courses and other formats the “China Duty-corporate strategy innovation and market operations supplemented by Free Academy” platform offered courses on product information sales techniques

International Women’s Day activities Hiking activities Sports meeting and leadersh ip to enhance benchmark enterprise visits and research and office skills to further improve the comprehensive capabilities and practical skills

political awareness and strategic projects to strengthen awareness of of employees in all lines. For a large number of front-line sales personnel training

vision. internal control management and encourage focused on comprehensive skills covering enhanced customer services and online

innovation in operating models. traffic conversion with a view to strengthening their comprehensive abilities.Leadership development

Work environment

Senior management Middle management Front-line managers/store managers

In terms of the work environment we have made With a focus on key areas such as corporate 1. Organised participation in thematic training programmes Leveraging our interna l on l ine learn ing

various efforts to improve office facilities provide strategy innovative development and leadership on political literacy compliance management and marketing p la t fo rm “Ch ina Duty -F ree Academy”

convenient services and ensure that employees we participated in specialised training courses operations which were conducted by SASAC the Academy of diversified training formats including live-

are satisfied with the company canteen. Our organ ised by the Organ isat ion Depar tment Governance (中大院) and other authorities. These programmes streamed lectures thematic seminars andcompany is fu l ly committed to creat ing a of the CPC Centra l Commit tee the State- included the “Xi Jinping Thought on Socialism with Chinese specialised courses were used to deliver owned Assets Supervision and Administration Characteristics for a New Era Study Programme for Central capabi l i ty enhancement programmes onconvenient and comfortable working environment. Commission (SASAC) the Central Academy of Enterprise Cadres” the “Rotational Training on the Spirit of the team-building compliance governance andThe company has regularly accessible staff Sciences (中大院 ) other high-level authorities Third Plenary Session of the 20th CPC Central Committee” store operations. In 2024 total participation inactivity rooms that offer table tennis treadmills and external institutions. The content included the and the “2024 S ta te -Owned En te rp r i se Comp l i ance these courses exceeded 1000 attendances.and billiards. In 2024 employee interest groups “Online Special Course on Improving Enterprise Management Online Training” accumulating approximately For newly promoted managers we offer roleorganised 229 activity sessions (drawing 1884 Technology Innovation Mechanisms” the “Special 210+ attendances. In this way middle managers were able cognition and team leadership courses toparticipants) for yoga basketball badminton and Course on Promoting High-Quality Development to comprehensively enhance their political awareness and facilitate smooth role transitions. Managersfootball. Research” and “Central Enterpr ise Art i f ic ia l administrative capabilities. 2. Arranged for subsidiary enterprise wi th 3-5 years’ tenure took innovat ion Staff centre with 247 square metres Employee recreational and sports centre: Intelligence Talent Training”. By participating in managerial personnel to deepen their understanding of industry- mindset and risk control courseswith a view

equipped with central air conditioning dance these courses our managers were able to enhance leading management models and operational strategies through to comprehensively upgrading their skil ls

mirrors soft seating fitting rooms and other their political awareness and strategic thinking and intensive workshops visits to exemplary enterprises and and injecting new momentum into business

necessary equipment and facilities broaden their international perspectives. research projects holistically improving their managerial skills. development.Technology innovation & intelligent empowerment training

Senior management Middle management Front-line managers/store managers General staff

In addition we provide comfortable nursing rooms Safe and comfortable We attended programmes offered by external professional institutions including Through our internal mobile platform “China Duty-Free Academy” external experts

48 the “Online Specialised Course on Improving Enterprise Sci-Tech Innovation delivered live-streamed courses such as “Innovative Thinking Enhancement” and spaces for female staff to use during sensitive periods to protect the we conducted Mechanisms” “AI and Strategic Management” and “Enterprise-wide Value Chain “AI-powered Office Efficiency Improvement” effectively elevating employees’privacy and rights of breastfeeding mothers and generally show respect for congratulatory or Innovation within Innovation Ecosystems – Singaporean Case Studies” to enhance technological innovation skills.female employees. their digital and intelligent thinking and innovation capabilities.condolence visits for

employees who were

In 2024 to demonstrate care for our people we conducted 48 getting married giving birth The company cultivated internal resources by establishing a lecturer team which delivered

congratulatory or condolence visits for employees who were getting experiencing bereavement a lecture series called “Excellent Teachers and Excellent Courses”. In 2024 the team

married giving birth experiencing bereavement and retiring offered four delivered eight live lectures which drew 1500 participants. This “training-through-practice”

tributes to annual model workers and delivered heart-warming greetings to and retiring offered approach strengthened internal trainers’ comprehensive abilities.staff members facing financial difficulties and front-line workers who were

on duty during New Year’s Eve and Spring Festival. four tributes to annual The company attaches importance to the training of young talents and continues to carry

model workers

out management trainee training programmes. Taking into account the company’s strategic In 2024 830 key training

business objectives we used the “job rotation and research” training format to accelerate sessions were held.professional growth cultivate talent pipelines for critical roles and enhance the core

competitiveness of the company.▼▼

▼ ▼ ▼92 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Principles of Governance Prosperity People Planet 93

▍Employee Development

In May the company launched From May to June the company conducted learning

a spec ia l i sed d i rec to r t ra in ing pathway workshops for front-line sales positions leveraging Based on employees’ career development needs we continuously improve the talent management system and consolidate the foundation

p r o g r a m m e w h i c h o f f e r s 1 4 best practices to develop 12 core courses and establish a of talent management to offer smooth career development channels to assist employees in achieving their dreams and living up to their full

customised onl ine courses and “training-examination-archiving-certification” mechanism. In this potential.examination banks with a view to way we are accelerating the cultivation of talent and effectively

improving directors’ professional improving the service quality of front-line sales personnel.skills. According to the actual circumstances of the company we have established a ranking system covering all grades and types of positions

based on a hierarchical management system and job qualification criteria. The company determines the function level and rank of

employees according to their abilities performance and qualifications. We allow two-way movement between management positions and

In October taking into account the In August we held a six-day induction programme for professional positions and use a ranking system that reaches every level and grades horizontally and vertically across our headquarters and

characteristics of the duty-free industry new employees that incorporated a corporate overview subsidiaries. We have built multiple career paths – including through annual rank promotions promotions based on professional reviews

and authentic business scenarios we professional ethics training and outdoor team-building open recruitment of executives and an internal system for regular talent exchange – to align the development of each employee’s careeradopted an immersive “shared instruction activities. Trainees actively participated in the programme+ group discussions + real-scenario drills” demonstrated their individual strengths and deepened with the overall development of the company’s talent. We adopted the Management by Objectives (MBO) Key Performance Indicators (KPI)

format for front-line sales training further their understanding of our corporate values and core and 360°Feedback for integrated employee performance management. Performance evaluations are conducted at least once a year. The

elevating sales staff’s comprehensive operations. These initiatives showcased the boundless assessment includes both work performance and professional capability and the performance assessment results are determined throughcompetencies and practical skills. creativity and youthful vigour of the new generation of “cdf the ranking of the overall scores of employees responsible for the same tasks covering 100% of the employees.people” highlighting their perseverance collaborative spirit

and youthful energy.In November the company organised intensive

offline training for subsidiary enterprise managers

incorporating benchmark enterprise visits The company is committed to cultivating vocational talent.research projects and reporting sessions. In terms of professional title reviews employees are actively

This enabled our people to gain an in-depth encouraged to review and apply for professional titles at

understanding of industry-leading management all levels and the company has seen steady growth in the

models and operating strategies while also

strengthening their internal control awareness number and quality of various professional and technical

advancing modern management concepts and talents. In 2024 the number of professional certifications

promoting efficient operations through innovative held by our engineering accounting auditing and archival

business approaches. professionals grew 17% from the previous year. Meanwhile

the company’s subsidiaries obtained the authority to engage

in self-accreditation for “merchandise sales” and “labourWe consistently operate the “China Duty-Free Academy” online training platform for all staff effectively integrating internal and external relations coordinator” certifications which aligns with theirinstructional resources to deliver professional and diversified curricula and continuously enrich course content. The “China Duty-Free operational needs. In 2024 the company pioneered in-houseAcademy” online platform had achieved full staff coverage (16200 accounts) by the end of 2024. In 2024 courses for 26 topics were primary/intermediate “merchandise sales” assessments

introduced and 13 live training sessions were held resulting in a total of more than 430000 attendances and 8.2 average training hours using evaluations that combine theory and practice andcompleted per employee. Concurrently to enhance learning engagement and promptly disseminate educational resources the “China first-time candidates achieved an 86% pass rate. In this wayDuty-Free Academy” official WeChat account constantly releases course updates and knowledge-sharing content to employees. we established an “internal cultivation + certification” talent

development framework effectively charting vocational career A vocational skills certification venue

In 2024 we conducted trainings as follows: pathways.The total expenditure of employee training and

development Percentage of employees trained by gender Percentage of employees trained by category

CNY9.54 million

2023100%2023100%

CNY7.54 2023million 2023

Average cost of training and development

per full-time employee 20242024 100% 20242024 100% Case study Improving vocational skills to boost corporate development

595.55 CNY/Person Female Male Senior management Middle management General employee

449.28 CNY/Person The company’s trade union rigorously implements President Xi Jinping’s directives on industrial workforce development organising

Average training hours completed Average training hours completed Average training hours completed per “Duty-Free Artisans” labour and skills competitions to promote practice-driven learning and productivity.Percentage of employees trained

per employee by gender per employee by category employee by region

100% Male 26.79 Senior Chinese The Sanya Downtown Store’s trade union conducted 17 themed competitions under the “trusted business operations and excellent hour 24.4 hour management 1 142.45 hour 152.1 hour Mainland 41.76 hour 34.2 hour

100 services” model engaging 3389 participants. Meanwhile the Haikou International Duty-Free Shopping Complex’s trade union % Chinese Hong

Middle 75.05 Kong SAR 13.29 organised sales and other professional skills competitions with more than 500 participants. Guangzhou Xinmian’s trade union Total training hours Female 36.58 hour 30.3 hour management hour 35.2 hour 18.1 hourMacau SAR and hour organised a beauty contest and Shenzhen supply chain trade union actively organised employees to participate in CPR training and

Taiwan region

633700 General hour employee 34.90 hour 32.7 hour flower arrangement training. Through these competitions we effectively communicated the company’s service value concepts while Overseas 14.27 hour 19.8 hour also enhancing employee skills and service quality.

547000 hour

20242023

Average training hours

completed per employee

40.03 1 As far as the training courses organised by the company are concerned there is no significant difference hour for employees at different categories; however the senior management participated in more intense

32.8 trainings subject to the requirement on the training hours in the Regulations on the Education and hour Training of Cadres issued by the CPC Central Committee.

▼94 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Principles of Governance Prosperity People Planet 95

Operational Safety and Physical and Mental Health Science and Technology

The company attaches importance to using safe reliable efficient and practical safety management technology to improve safety management. All ongoing

construction projects in 2024 incorporated intelligent simulation safety experience centres. These centres use computerised optoelectronic technology to

▍Operational Safety replicate accident scenarios and enable immersive worker training thereby enhancing our people’s emergency response capabilities.We vigorously carry out the establishment of a safety culture cultivate and refine the safety culture system with the characteristics of CTG

DUTY-FREE firmly establish the safety concept of “people-oriented service first and safety first” focusing on five major pillars of safety

including Party construction law mechanism science and technology and employee awareness to achieve the goal of “zero accidents” in The Haikou International Duty-Free The Haikou International Duty-Free The Sanya Duty-Free Shopping In addition the Sanya Duty-Free

operations safety. Shopping Complex project and S h o p p i n g C o m p l e x p r o j e c t Complex actively utilises smart fire S h o p p i n g C o m p l e x h a s

the Sanya International Duty-Free implemented an intelligent hardhat protection systems and an urban enhanced its public stakeholder

Safety Compliance Party Construction Shopp ing Complex Phase 3 system to track worker trajectories fire monitoring information platform. management platform by addingproject deployed a smart safety ana l yse pe rsona l p ro tec t i ve Using a “QR codes + app + online online modules for three-levelThe company str ict ly abides by laws and Party organisations of the company at all levels give full play to their leading role improving the system of “equal platform that integrates personnel equipment (PPE) compliance issue systems” approach the complex “hot work” approvals and safetyregulations such as the Work Safety Law the Law responsibilities for CPC committees and government dual responsibilities and joint management”. All Party members management training modules audio alerts in restricted zones engages in efficient paperless fire penalty notices. In this way the

on the Prevention and Control of Occupational should play an exemplary role in performing their duties and ensure the implementation from the five aspects of safety safety inspection controls for key and enable incident reporting with inspection management to ensure complex has made its operations

Diseases and to promote regulatory compliance regulations publicity safety deployment implementation safety funds investment safety performance supervision and zones and safety accountability the goal of eliminating blind spots the rectification of potential hazards. more paperless and achieved

and policy evaluation the company revised/ safety awareness enhancement. The company adheres to President Xi Jinping’s important statement on operations profiling substantially improving in monitoring. full-process online application

established six safety management systems in safety to arm ourselves intellectually and to guide our practice. Party organisations at all levels give full play to their on-site safety and oversight. approval greatly improving the

2024 including the “Work Safety Management leading role improving the system of “equal responsibilities for CPC committees and government dual responsibilities efficiency of stakeholder safetyMeasures” the “Regulations for Work Safety and joint management”. All Party members should play an exemplary role in performing their duties and ensure the management.Committee Operations and Regular Meetings” implementation from the five aspects of safety regulations publicity safety deployment implementation safety fundsthe “Work Safety Assessment and Evaluation investment safety performance supervision and safety awareness enhancement.Regu la t i ons ” t he “Occupa t i ona l Hea l t h In 2024 the company thoroughly implemented the guiding principles of the Third Plenary Session of the 20thManagement Regulations” and the “Overseas CPC Central Committee and President Xi Jinping’s directives on work safety reinforcing organisational safetySafety Management Regulations and Safety Safety publicityawareness. The Party Committee organised four study sessions on the central government’s decisions and workIncident Management Procedures” forming a safety conferences and convened two Work Safety Committee meetings and six thematic meetings with the goal of

systematic coherent and operationally effective The company continued to cultivate a culture of “safety publicity”.consolidating red-line awareness and bottom-line thinking to ensure we meet our responsibilities.regulatory framework.The company organised all subsidiaries to conduct For Production Safety Month in 2024 employees Subsidiaries used diverse methods – includingSafety Mechanism in-depth safety education campaigns including were organised to collectively watch promotional bulletin boards banners online learning “openOperational Safety Month Fire Prevention Publicity videos titled “Production Safety: Shouldering our lectures” and quizzes – to promote awarenessMonth Publicity Week for the Law on the Prevention Responsibility” and “Analysis and Warnings for of safety laws and regulations and educateIn terms of operations safety management the company has persistently out investigations of potential safety hazards and they personally led 436 safety and Contro l of Occupat ional Diseases and Typical Cases Violating the Fire Protection Law”. They employees about safety issues.advanced work safety standardization and has clarified the composition and inspections at construction sites retail outlets warehouses and staff dormitories to National Safety Publicity and Consultation Day. also analysed case studies such as the Shenzhen

responsibilities of the Safety Committee. All large-scale stores and projects under identify operational risks. External experts were invited to deliver fire safety Happy Valley “10.27” equipment collision incident.construction are equipped with full-time safety management personnel as required training while online safety knowledge tests were

ensuring the smooth implementation of all safety work. Concurrently we optimised In terms of emergency management of safety risks the company has formulated administered via OA systems and questionnaires.the composition and responsibilities of Work Safety Committees at all levels in the Contingency Plan for Operational Safety Accidents. Emergency management was The company’s leadership team participated fully

response to personnel changes and operational demands. Subsidiaries were enhanced through annual drill plans fire equipment training and realistic evacuation with over 8800 employees actively engaging in these

guided to refine committee mechanisms establish dedicated safety departments exercises. In 2024 subsidiaries conducted 326 emergency drills (including 84 joint activities.and deploy qualified full-time and part-time safety personnel. By the end of 2024 exercises with local authorities and adjacent entities) engaging 17400 participants.the company had 267 safety officers (46 full-time 221 part-time) and our number Through these efforts we significantly improved the company’s crisis response In 2024 the company organised and carried out 770 safety trainings for 32300 participants and 199 examinations on operational safety knowledge for

of certified safety engineers met regulatory requirements. capabilities with a view to maintaining the safety of employees and protecting 26500 participants. In addition we compiled and issued the “Corporate Safety Culture Manual” which covers safety concepts management practices

customers’ lives and property. behavioural norms occupational health emergency protocols and safety knowledge. Extensive reading and study sessions were organised to encourage

The company actively encourages its subsidiaries to standardise production our people to practise safety principles in their daily work.safety. The Sanya International Duty-Free Shopping Complex initiated a In terms of operations safety inspections and prevention and control the

certification project and engaged expert consultants to develop systematic company continues to carry out the investigation and rectification of potential

documentation achieving comprehensive control over production safety and safety hazards; strengthen management of special equipment fire safety electrical

fire risk management. Under this project the complex established standardised systems construction e-vehicle usage and gas usage; improve the quality and

operational protocols intrinsically safe facilities and customised workplace efficiency of the investigation and rectification of potential safety hazards; and fully In 2024 the company invested CNY21.77 million in production safety with a cumulative three-year investment of CNY85.24 million and this

layouts to secure safety certification. Meanwhile CDFI obtained certifications in eliminate production safety accidents. safety investment provided a strong guarantee for the safe development of the business. In the past three years the company did not record

the three areas of Occupational Health & Safety Environmental Management any safety accidents. During the reporting period work-related fatalities and injuries for the company and its contractors were as follows:

and Quality Management with a view to upholding internal controls and precision The company insists on carrying out diagnostic troubleshooting and rectifications

management. under the guidance of experts. In 2024 the company invited a group of external

experts to carry out operational safety inspections and assessments on focus Metrics Tier 2 metrics Unit 2024 2023

During the year the company signed 129 copies of the Letter of Commitment areas and major projects including Sunrise Shanghai Sunrise China and key areas Employee Number of people 0 0

to Operational Safety Energy Conservation and Environmental Protection in Hainan. This project was designed to promote reform leverage inspections to Work-related fatalities

covering each department and affiliated company to clarify management and check the effectiveness of training and strengthen troubleshooting and governance Contractors Number of people 0 /

assessment requirements and reward and punishment standards and guide of safety hazards in critical premises such as the company’s tax-free complexes

and supervise companies at all levels in the detailed implementation of related projects under construction and logistics centres. Furthermore the company’s Work The fatality rate of the Company’s employees due to

measures. Each department and affiliated company are encouraged to sign the Safety Committee has strengthened oversight of hazard identification and heightened / % 0 0work-related injuries2

Letter of Commitment and shoulder its responsibility so that the company can scrutiny during critical periods (e.g. year-end the “Two Sessions” holidays and

implemented its main responsibilities. In December 2024 the company conducted peak seasons) with a view to bolstering overall safety management and preventing Total number of work-related injury cases / Cases 0 0

safety evaluations for its subsidiaries shifting from post-incident response to operational safety accidents. We also undertake special initiatives such as pre-festival

preventive process control to enforce corporate accountability. Moreover using safety checks fire safety self-audits root-cause rectifications and special equipment Number of working days lost due to work-related Employee Days 0 0

electronically signed pledges on the OA system we obtained energy conservation safety inspections. In 2024 the company’s enterprises at various levels carried out a injury

and environmental responsibility commitments from 100% of the company’s staff. total of 1238 safety inspections and identified and rectified 2214 safety hazards. Contractors Days 0 /

Lost-time injury frequency rate (per one million hours Employee % 0 0At the same time the company further strengthened production safety Under the “Internal Reward Management Measures for Work Safety Hazardresponsibilities for individuals who are primarily responsible. First for the fourth Reporting” an incentivised hazard reporting mechanism was trialled at the Haikou worked)3 (LTIFR) Contractors % 0 /

consecutive year enterprise principals at all levels delivered 218 safety-themed International Duty-Free Shopping Complex mobilising all employees to actively

lectures spearheading regulatory compliance education and cultivating identify and report potential risks and encouraging workforce engagement in safety

organisation-wide red-line awareness. Second principals took the lead in carrying stewardship. 2 Fatalities due to work-related injuries (per 100 workers) = number of fatalities due to work-related injuries/number of workers*100%;

3 Lost-time injury frequency rate (per one million hours worked) (LTIFR) = number of lost time injuries/total number of man-hours worked in the accounting

period*100000096 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Principles of Governance Prosperity People Planet 97

▍Physical and Mental Health During Publicity Week the heads of the Sanya Downtown Store led a team to visit front-line staff to better understand occupational hazards

facing each post and the implementation of preventive and control measures. CDF Investment Development organised specialised workers

We are fully committed to fulfilling our duties as a people-oriented company and puts the safety and and operators paint insulation professionals and other operators at sites under construction to carry out education and training related tophysical and mental health of employees first. In 2024 the company revised and issued the “Occupational occupational disease prevention and checked the certification of specialised operators to ensure that 100% of the workers were certified.Health Management Regulations” adjusted content related to organisational structures job requirements In addition all stores held regular meetings to educate their staff about occupational disease prevention and control and they displayed

reporting mechanisms and other areas and organised all subsidiaries to establish relevant systems posters and played videos to cultivate a culture that upholds occupational disease prevention and control. Moreover Sunrise China

GB/T 45001-2020 / ISO 45001:2018

simultaneously to improve the standardisation of occupational health management. In terms of occupational organised a lecture on first-aid and invited experts from Safety and Health Education to explain and demonstrate emergency treatments for

health management the company provides benefits that includes annual physical examinations and health emergencies and heatstroke.comprehensive medical insurance for employees including accident insurance serious disease insurance www.cqc.com.cn

and medical insurance. During the year the company’s total amount of work-related injury insurance

expenses is CNY539100 with a coverage rate of 100% of employees. In addition the company provides

medical insurance that covers overseas medical institutions for expatriate employees and those who are

on overseas business trips relieving employees of the burden of medical expenses while they are working

abroad. Paediatric medical insurance regular traditional Chinese medicine (TCM) consultations and mental Not i ce o f Con fo rm i t y

health support programmes were also provided to support the physical and mental health of employees. in the Annual Audit of

C D F I n t e r n a t i o n a l ’ s

CDFI passed its occupational health and safety management system (ISO45001) audit in December 2024. O c c u p a t i o n a l H e a l t h

Management System

The company provides employees with a safe and healthy work environment to minimise workplace injuries. The company’s staff at

construction sites may be exposed to a range of occupational hazards including noise dust vibrations toxic and harmful gases and

high temperatures. Meanwhile merchandise handlers in logistics centres may be exposed to the occupational hazards of high and low

temperatures. The company always pays attention to the physical and mental health of staff members and takes multiple measures to

prevent occupational diseases:

The Sanya Tangpan project organised free physical examinations for The Haikou project held a special training session on the use of labour

construction personnel protection appliances

Special training: Organise Publicity Activities:

We organise special training on occupational health and The company organised affiliated companies at all levels to

promote education on occupational health management stage activities for Publicity Week for the Law on the Prevention In 2024 the trade unions of the company’s subsidiaries organised the “Healthy Hangzhou Co-creation and Co-sharing” “Wellness CDF (健including the identification and prevention of occupational and Control of Occupational Diseases. We carried out a seriesdisease hazards occupational disease classification and of publicity and educational activities to promote education 康沐免)” and cardiovascular prevention lecture series and they also offered annual health checks set up psychological counselling hotlines

categories personal protective equipment and employee related to occupational disease prevention and effectively and released stress management journals.occupational health rights to reinforce the foundation of the raise employees’ awareness of occupational hazards. During

company’s occupational health management. Publicity Week a total of 1450 occupational health publicity

materials were distributed; 158 themed lectures were held; Case study Free clinic visits for staff

and 129 educational reminder activities and 39 publicity

consultations were carried out. Through these efforts wewere able to reach a total audience of 11548 effectively In order to enhance the health awareness of employees in November the company’s trade union held the second “Caring forCase study: strengthening the foundation of the company’s occupational Employee Health” free clinic activity. Physicians from external medical service organisations were invited to provide consultations and

TCM physiotherapy for employees serving more than 60 employees in total. At the event a personalised conditioning programme

The company collects and publicises typical cases of health management. was developed based on employees’ conditions to guide them to seek medical treatment and live a healthy life.occupational health and studies and analyses incidents such

as deaths caused by inadequate implementation of heatstroke

prevention measures administrative punishments for improper

management of occupational hazards and failures to issue

occupational hazard notifications to provide reminders and Case study Enhancing emergency response to provide customers with a safe and lessons for employees and increase their awareness of the comfortable shopping experience

importance of occupational health management.On 26 November 2024 at a store on the third floor of Zone

A in the Sanya International Duty-Free Shopping Complex a

Occupational health articles At stores occupational health customer suffered cardiac arrest and fainted presenting an

Identification and rectification: were published on official knowledge was promoted among unexpected emergency. A team comprising trained medical

The company regularly updates and inspects employees’ work social media accounts employees and customers personnel from the store sales staff and bystanders performed

equipment to reduce accidents caused by equipment damage. CPR within the critical 4-minute window and successfully

We carry out troubleshooting and rectification actions against resuscitated the person. In 2024 Sanya International Duty-Free

occupational hazard factors examine the working status of Shopping Complex properly handled 4 critical emergencies

occupational disease prevention facilities and the distribution and more than 150 incidents through refined protocols and

and use of PPE comprehensively check the implementation of cross-departmental coordination. Since 2020 the Sanya

occupational disease prevention measures for all units under

construction establish occupational health protection plans International Duty-Free Shopping Complex has organised

and emergency plans for occupational health accidents and more than 30 professional medical trainings covering first-aid

focus on preventing and resolving potential risks in the field of knowledge methods for using basic medical supplies

occupational health. emergency plans and on-site emergency response procedures.Hainan DF launched onl ine Staff viewings of thematic videos

training courses were organised

▼▼

▼▼

▼▼

▼04

Planet

Addressing Climate Change to 100

Protect the Environment

Focusing on New Quality Productive 107

Forces to Develop a Circular Economy

Green and Low-Carbon Operations 110

for a Better Life

CTG DUTY-FREE cares for the planet based on its business features and in

light of environmental characteristics of its main business locations. We are

actively responding to UN SDGs 2 6 7 9 11 12 13 14 and 15 by engaging

in multiple environmental protection initiatives such as water resource

management active responses to climate change green and low-carbon

operations and promote a circular economy.100 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Principles of Governance Prosperity People Planet 101

Addressing Climate Change to Protect the Environment Current scenario 1.5°C – Net-zero world scenario 3°C – Greenhouse world scenario

Physical risk output of risk RCP 1.9 RCP 6.0

Climate change is having a broad and far-reaching impact on the world CTG DUTY-FREE analyses the potential challenges that climate exposure based on 2021

change may bring actively deploys mitigation and adaption measures and explores opportunities. This section describes our efforts and IEA Net-Zero by 2050 IEA Stated Policies benchmarkfuture plans for addressing climate change according to the framework of “Governance Strategy Impact risk and opportunity management NGFS Net-Zero 2050 Scenarios (STEPS)Metrics and targets”.SSP1 – Sustainability NGFS NDC scenario

Shared Socio-Economic Pathway –

Fossil-fuelled development

▍Governance

We have established an ESG governance structure which covers responsibilities within their terms of reference. In addition thethe all-round governance on ESG matters including addressing company has also set up a “Leadership Group on Carbon Peaking Risk impact under the Physical risk Risk impact of Risk impact under theclimate change. and Carbon Neutrality” please refer to “Green and Low-Carbon Climate risk type 3°C – scenario (hereinafter category current scenario 1.5°C – scenario1Operations for a Better Life”. “high emissions scenario”)

2

The Board of Directors of the company is the highest decision-

making authority to address climate change and the Strategy We have made it clear that the Board of Directors has to Extreme heat Extreme high Extreme high Extreme high

and Sustainability Committee of the Board of Directors is the incorporate climate considerations into its review and instructions

committee assuming the primary responsibility. We established on strategies important action plans risk management policies

the ESG Leadership Group and it is headed by the Chairman annual budgets and business plans its formulation of performance Extreme cold Low Low Low

of the company; the deputy head is the General Manager; and goals for organisations its monitoring on implementation and its

its members include heads of departments. ESG governance supervision on significant capital expenditure acquisitions and Chronic risks Precipitation (heavy rain) High High Highstructure strategy and the terms of reference of the Strategy divestitures. The ESG Leadership Group and the “Leadershipand Sustainability Committee and the ESG Leadership Group Group on Carbon Peaking and Carbon Neutrality” provide support Extreme snowfall Extreme low Extreme low Extreme lowplease refer to “Robust Governance System for Long-term Stable for this.Operations”. The Strategy and Sustainability Committee holds

meeting once a year and the ESG Leadership Group holds We steadily carry out the current status reviews strategy Extreme wind Extreme low Extreme low Extreme low

regular meetings. By integrating ESG matters including responses formulation risk management and identification and tracking of

to climate change with daily operations and management the metrics and targets for risks and opportunities arising from climate Coastal flooding High Medium Medium

concerned departments and subsidiaries perform their specific change that the company may be exposed to or can embrace.Fluvial flooding Medium Medium Medium

▍Strategy Acute risks Typhoons Extreme high Extreme high Extreme high

In view of the characteristics of the tourism retail industry and the We referred to the TCFD framework to identify the physical risks Wildfires High High High

company’s medium to long-term business planning we continue related to climate change (hereinafter “physical risks”) and the

to focus on and monitor business operations and risk management transition risks related to low-carbon economic transformation River low flow Extreme low Extreme low Extreme low

to identify quantify and manage potential threats and uncertainties (hereinafter “transition risks”). For physical risks we use a risk

caused by global climate change. We then analyse the potential forecasting tool based on climate change scenarios (provided

impact of these risks on the company’s own operations and the by MSCI) to assess the potential business and financial impacts Subject to the assessment of the geographical location of the company’s assets exposure and severity the company’s overall business

entire industry chain from upstream to downstream processes subject to the geographical location of the company’s assets was exposed to extremely low to moderate risk under all climate scenarios including extreme cold extreme snowfall extreme wind fluvial

with the aim of safeguarding the steady development of the their exposure and their hazard patterns. On this basis we have flooding and river low flow. We identified physical risks with high or higher risk levels such as extreme heat precipitation coastal flooding

business. developed systematic response strategies in site selection typhoons and wildfires and further elaborated on the targeted description in terms of impact assessment impact cycle scope of impact

emergency management supply chain and inventory optimisation potential financial impact strategies mitigation and adaptation measures and comprehensively analysed the related risks including direct

and online business development. We then integrated these loss operation interruption customer loss and the impact of supply chain disruption on all links of the company’s business value chain. We

strategies into the company’s daily business management to actively promote the climate adaptability design of buildings creation for a more resilient supply chain online and offline business integration

enhance its organisational resilience. and other measures improve the company’s ability to address climate risks enhance the durability and stability of business operations and

continue to provide customers with quality goods and services.Scenario analysis

Based on the analysis of chronic and acute physical risks under different climate scenarios we comprehensively assess the potential impact

of physical risks on corporate strategy business operations and financial conditions under different scenarios. We then prioritise climate

risks optimise resource allocation and improve risk management.We selected the current scenario the relatively orderly pathway toward 1.5°C set by the Network for Greening the Financial System (NGFS) 1.5-°C NGFS orderly “Net-Zero 2050” scenario: the adoption of the net zero emissions by 2050 scenario that is the global energy sector achieving net zero

(i.e. reaching net zero around 2050) alongside the climate scenario of 3°C Nationally Determined Contributions (NDCs) set by the NGFS (i.e. CO2 emissions by 2050 is consistent with limiting the global temperature rise to 1.5°C with no temperature overshoot (with a 50% probability).global warming of 3°C scenario around 2050) for scenario analysis. 2 3-°C NGFS Nationally Determined Contributions “NDC” scenario: taking into consideration all pledged but not yet implemented policy measures. The

estimated physical risks would be slightly lower than in the Current Scenario case but still well above the Paris Agreement targets.102 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Principles of Governance Prosperity People Planet 103

Physical

Climate risk Scope of Potential financial

risk Impact Assessment Impact cycle Strategies mitigation and adaptation measures

category impact impact

category

High temperatures will increase demand for water supply and cooling Extreme high temperatures may cause a very Medium and Operation Increase in Follow green standards for the construction of new buildings from their design and planning

in summer resulting in increased energy consumption and equipment high risk to the company’s operations in Hainan long-term operating expenses continue the energy-saving optimisation of existing facilities effectively reduce costs while saving

maintenance costs. Extreme high temperatures may lead to excessive province the GBA and Southeast Asia. Under the Upstream energy and promote the use of clean energies.power loads increase safety hazards such as short circuits and fires high emissions scenario the number of operations Increased in

and have an adverse impact on normal operations brought by power with an extremely high risk will further increase investment Regularly check maintain and update in-store electrical circuit and facilities and formulate

supply tension or power failures. for example operations in Fujian province will also emergency plans to deal with power supply interruptions such as by installing standby power Decrease in

be exposed to extremely high risks. supply system to prevent sudden power failure.Ex t reme h igh tempera tu res may a lso a f fec t log is t i cs and operating income

transportation such as the storage and distribution of refrigerated This will be the most common climate risk faced Rigorously monitor cold-chain logistics to guarantee the quality of temperature-sensitive products

Extreme heat goods or lead to traffic interruption in some areas affecting by the company. in hot weather strengthen inventory management and prepare goods in advance to deal with

commodity supplies and passenger flow in tourist destinations. possible logistics delays.Continue to expand the online business integrate online and offline businesses and maintain a

good momentum of development to minimize the adverse impact of climate risk on the company’s

Chronic

offline business operations.risks

Heavy precipitation may lead to road flooding traffic interruption or Nearly half of the company’s operation sites Medium and Operation Increase in Geographical factors shall be fully considered when selecting sites for project development to

potential safety hazards and reduce consumers’ willingness to go out are exposed to a high or extremely high risk of long-term operating expenses avoid the severe impact of disasters on infrastructure.and buy. In addition it may also lead to instability of supply or delayed precipitation especially certain operation sites Upstream

delivery posing challenges to inventory management and customer located in the Yangtze River Delta Chongqing city Decrease in Check waterproof facilities to ensure that the in-store waterproof facilities are effective and prepare Downstream

services. and Fujian province. operating income necessary emergency supplies such as waterproof sandbags drainage equipment emergency

lighting etc.Continuous heavy rain may affect the sales of some seasonal

commodities such as outdoor products for summer. By optimising inventory management we can improve the inventory turnover rate while maintaining

adequate inventory to ensure the stability of the supply chain when the logistics and transportation

Precipitation is interrupted.Adjust marketing strategies launch targeted promotional activities and encourage consumers to

place orders online.Coastal flooding may cause seawater to flood stores and damage Some operations of the company located in Short medium Operation Increase in Flood levees shall be built around stores and the threshold shall be raised to reduce the possibility

store facilities. Goods soaked in water may decay or get damaged Hainan province the GBA the Yangtze River and long-term operating expenses of seawater flooding. Sandbags waterproof baffles and other materials shall be prepared for rapid

resulting in economic losses. Delta and the Bohai Rim region are exposed to Upstream deployment in case of floods.high or extremely high risks.Coasta l f looding may cause delays or interrupt ions in port Downstream Develop a detailed emergency response plan including employee evacuation customer evacuation

transportation and logistics facilities which may affect the supply goods transfer and other processes and conduct regular drills to ensure that employees are

chain thus affecting sales of goods. Coastal flooding may damage familiar with the emergency process.power and communication infrastructure leading to power failures

and communication interruptions in stores affecting their normal By diversifying the supply chain we avoid heavy dependence on a single supply channel and Coastal

improve the flexibility of the supply chain.flooding operations.Muddy water pollutants and pathogens left over after floods may Adjust the inventory strategy avoid overstocking high-risk goods and take appropriate moisture-

pose risks to the health of employees and customers. proof and mold-resistant measures for goods that are vulnerable to floods.Typhoons may blow down trees or billboards causing damage to the Some operations of the company located in Short medium Operation Increase in Pay close attention to the forecast and early warning information follow the weather forecast and

external structure of duty-free stores and threatening the safety of Hainan province Fujian province the GBA and the and long-term operating expenses make timely adjustments to the store operating plan according to the extreme weather forecast.these stores. Typhoons often bring heavy rainfall which may lead to Yangtze River Delta are exposed to a very high

the flooding of roads and surrounding areas thus affecting the safe level of typhoon risk. Under the high emissions Decrease in Strengthen the maintenance and inspection of the store structure and fix and reinforce it when

Acute risks access to stores of customers and employees and leading to business scenario the number of high-risk operations operating income necessary to ensure the structure is firm enough to withstand strong winds.interruption. Typhoons may affect the logistics system leading to slightly increases. Establish stable cooperation with suppliers to ensure timely replenishment of goods even when the

supply chain interruptions and delays in goods replenishment supply chain is interrupted.Typhoons affecting store inventory and sales.Strengthen the safety training for employees to improve their awareness of and ability to cope with

typhoons.The actual losses caused by wildfires may increase additional costs of Some operations in Hainan province Heilongjiang Short medium Operation Increase in Establish a wildfire monitoring system to keep abreast of the fire development take preventive

maintenance. province Ji l in province Anhui province are and long-term operating expenses measures in advance to ensure the safety of employees and customers.exposed to high risk. Downstream

The smoke and particles generated by wildfire will seriously affect the Decrease in

air quality resulting in reduced visibility and posing a threat to the operating income

health of employees and that may affect the shopping experience of

customers leading to reduced passenger flow.Wildfires may lead to the blocked roads or traffic congestion making

Wildfires it difficult for customers and employees to access the dutyfree stores.If a wildfire spreads to the nearby airport or port it may affect the

supply chain and logistics of duty-free stores.104 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Principles of Governance Prosperity People Planet 105

Transition risk impact assessment and response:

Risk category

Policy and legal risks Technology risk Market risk Reputation risk

National and local climate related polices may be tightened Given the synergistic effect of information technology and As consumers become increasingly aware of If the company fails to switch to a low-carbon Stakeholders are increasingly concerned about

(such as the carbon price mechanism stricter carbon energy technology during our transit ion towards lower lower-carbon alternatives and environmental operation mode in time it may have a negative climate-related issues and we may suffer from

emiss ion compl iance requ i rements and in format ion carbon and greener operations the green innovative and protection they will opt for more environmentally impression on the company due to consumers’ reputation r isk i f we fai l to meet stakeholder

Description disclosure requirements) which may increase the company’s intelligent management requirements in supply chain (including friendly products which will reduce the demand preference to spend on a greener and stable expectations or if we engage in any behaviour that

management inputs and costs and may put the company transportation and packaging l inks) and the operational for traditional products and present related platform affecting brand reputation and market violates relevant laws and regulations.under regulatory pressure without the timely improved maintenance requirements of online business will increase our market risks for our partners and us. share.compliance of management. technology costs.Impact cycle Medium and long-term Short medium and long-term Short medium and long-term Short medium Short medium and long-term

Scope of impact Operation Operation Downstream Downstream Operation

Potential financial impact Increase in operating expenses Increase in asset investment Decrease in operating income Decrease in operating income Increase in operating expensesThe company is continuously monitoring the introduction The company adheres to the transformation development We have established a smooth mechanism for We continued to convey “Green CTG DUTY- We have established a smooth mechanism forand updating of relevant policies and regulations and we strategy advancing the integration of online and offline tourism communication with consumers to understand FREE” concept to the mass public through communication with stakeholders and respond to

study implementation requirements as they are released and retail operations strengthening technology empowerment and their demands and preferences in a t imely media channels to boost customer confidence. their concerns in multiple ways.formulate relevant measures on time. continuously elevating digitalisation intelligence and green manner and meet their needs for environmentally

initiatives. friendly products. We have incorporated ESG considerations into ourStrategies mitigation and The company is developing the “Work Plan for Implementing business operations via specific implementationadaptation measures the Spirit of President Xi Jinping’s Important Speech on Optimising resource allocation further increasing investments tasks to continuously improve the quality of the

the Construction of an Ecological Civilisation and ‘Carbon in channel expansion and platform development and improving company’s ESG disclosure while enhancing ourPeaking and Carbon Neutral i ty’”. In addit ion we are supply chain management digital innovation applications communication with stakeholders via regular release

steadfastly promoting the construction of an ecological marketing promotion and brand building to provide robust of ESG reports and other methods to disclose our

civilisation as we work to build a world-class green tourism support for sustainable growth. efforts and achievements.retailer and pursue high-quality green development.Climate opportunity impact assessment and response:

Area Description Impact cycle Scope of impact Potential financial impact Strategies mitigation and adaptation measures

The

Short medium and long- The construction of infrastructure with better climate resilience can help defend against climate disasters make full use of natural resources and efficiently

company’s Build climate resilient infrastructure Operation Decrease in operating expenses

term save energy and reduce emissions. For details please refer to “Conserving Energy and Reducing Carbon throughout the Entire Building Process”.operations

Collaborate with brand partners to promote Upstream As consumers prefer environmentally friendly green products we have collaborated with brand partners to promote sustainable green products to meet their

Short and medium-term Increase in operating income

green products Downstream consumption demands.Products and

services

Short medium and long- To better cater to consumer shopping habits we have continued to enhance the integration of the on-line and off-line businesses to provide consumers with

Integrate online and off-line businesses Downstream Increase in operating income

term more convenient integrated services covering on-line and off-line channels.We have adhered to the use of recyclable and biodegradable green packaging have proactively promoted the automatic and intelligent upgrading of

packaging and have been committed to applying single-sheet receipts and slim tape into the logistics chain.Promote green logistics & packaging Short and medium-term Upstream Decrease in operating expenses

We have established a waste material recycling system to recycle packaging cartons wastepaper and other materials which helps extend the life cycle of

packaging materials and improve the overall utilisation efficiency of resources.Supply Chain Compared with air transport ocean transport gives off less carbon emissions and provides a higher efficiency in energy conservation and emissions

Optimise freight transport Medium and long-term Upstream Decrease in operating expenses reductions. Therefore we have worked with brands to gradually increase the proportion of sea transportation during the procurement and transportation

process.Short medium and long- We have vigorously promoted the use of clean energy equipment and made full use of electric-powered forklift trucks to replace traditional fuelled ones so

Promote the use of new energy tools Upstream Decrease in operating expenses

term as to reduce carbon emissions and environmental pollution.106 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Principles of Governance Prosperity People Planet 107

▍Impact Risk and Opportunity Management Focusing on New Quality Productive Forces to Develop a Circular Economy

We have incorporated climate change risks into our overall risk address issues arising from high seismic intensity large structuresmanagement process. Please refer to “Complying with Commercial and irregular geometry. We also use structural analysis software The company prioritises new quality productive forces with a view to drive sustainable development through innovation and circularEthics to Reinforce Internal Control Compliance” for the risk (PKPM and midas Gen) and verification tools (Sausage and economy initiatives.management process. Abaqus) that meet international standards and we have enlisted

domestic structural design experts to conduct rigorous reviews to

We regularly monitor the development trends of climate risk ensure safety reliability cost efficiency and architectural feasibility.analyse the impact of risk on the company’s operations and supply In foundation design load-bearing tests were conducted for anti- ▍Circular Economy Initiatives

chain and take the initiative in developing mitigation and adaptation floating anchor rods to balance safety and economy.measures to improve the company’s resilience and adaptability The company actively implements circular economy principles adopting concrete measures in resource recycling process transformation

to potential climate uncertainty in the future. To strengthen our The design of the Haikou International Duty-Free Shopping and technological innovation.ability to monitor climate-related impacts all subsidiaries of the Complex the Sanya Regent Hotel Phase 1 project and the

company intensified collaboration with meteorological authorities company’s office building in Haikou which are classified as

to obtain real-time disaster weather alerts and initiate timely irregular super high-rise structures have undergone government- Green Transportation Green Packaging

defensive and emergency responses. Dedicated personnel monitor mandated seismic reviews conducted by national experts to

rainfall and flood conditions analyse potential risks to operational guarantee their structural integrity.safety issue early warnings and implement pre-emptive mitigation We strive to optimise the loading efficiency of logistics vehicles to We have formulated unified environmental protection policiesmeasures. During extreme weather events such as floods the In addition wind-induced vibration analyses and wind tunnel minimise resource waste. To this end the company has deployed and guidelines and adhere to the philosophy of “responsiblesenior management of subsidiaries lead on-site inspections and pressure simulations were conducted for the Haikou Duty-Free an advanced logistics transportation management system that packaging” and carries out green packaging actions:

operations to identify risks enforce emergency protocols and Shopping Complex Sanya Duty-Free Shopping Complex Block C intelligently analyses optimal loading plans based on real-time

ensure rigorous implementation of flood season safety measures. and the Sanya Regent Hotel Phase 1 project to validate typhoon order data. Furthermore we have adjusted our policy to allow We respond to the national “plastic restriction” policies. Our

Subsidiaries continuously refine their emergency response plans resistance and inform the design of their facades. The wind tunnel mixed-load transportation of duty-free goods and non-dutiable company rigorously implement plastic reduction and prohibition

for typhoons and floods establish specialised rescue teams and tests replicated local climatic airflow patterns to assess and items eliminating mandatory separate shipments and ensuring measures. The company prohibits the purchase and use of

conduct regular disaster preparedness training and drills with a optimise the buildings’ resilience against extreme weather and each vehicle achieves maximum loading efficiency. By reducing plastic bags and utensils listed in the banned plastics catalogue.view to enhancing their emergency support capabilities. Employees ensure the safety of main structures and enclosures. Structural and empty runs and partial loads we are able to effectively lower fuel We educate customers on reducing plastic use and promote

receive training in natural disaster prevention risk avoidance self- facade reinforcements were applied to wind load-sensitive areas consumption and carbon emissions. Additionally we conduct alternatives. The company’s stores in Hainan and its duty-free

rescue and mutual aid to improve their awareness and response to enhance safety. For the Sanya Regent Hotel’s multi-platform regular training for drivers and dispatchers to enhance their skills stores in major airports all provide paper shopping bags for free

skills. Emergency supplies including sandbags pumps torches design the indoor pedestrian wind environment was assessed to in respect of efficient transportation and ensure optimal resource other packaging bags are made of biodegradable materials as

drinking water and non-perishable food are stockpiled to ensure enhance architectural quality usability and the guest experience. utilisation for each delivery. required by environmental protection regulations. In 2024 the

they can be rapidly deployed during any crisis. At the same time all company provided more than 10.62 million shopping bags that met

units enforce rosters for 24/7 duties for critical roles and leadership The design of the Haikou International Duty-Free Shopping In distribution we actively promote efforts to replace traditional environmental protection requirements and provided 60.53 million

oversight during summer and flood seasons ensuring uninterrupted Complex which has been operating since 2022 achieved a 15% single-use cardboard boxes with reusable plastic crates. These shopping bags that met environmental requirements in the past

communication and immediate reporting of emergencies. reduction in steel usage compared to similar projects through durable crates which are designed to be used for multiple cycles three years. The company effectively reduced the generation of

optimised structural design balancing functionality safety and significantly reduce demand for new boxes and waste generation. non-degradable plastic waste.To address climate-related risks we use advanced construction low-carbon principles. The building withstood Super Typhoon We have also established a robust crate recovery network to

methodologies. For recent projects in Haikou and Sanya Hainan Capricorn in 2024 validating its robustness. ensure timely collection and reuse of crates after each delivery. In compliance with the Hainan Special Economic Zone Regulations

Province – both typhoon-prone regions with maximum historical on Prohibiting Non-Degradable Disposable Plastic Products all

wind speeds of grade 17 – we have integrated cutting-edge The Sanya Regent Hotel Phase 1 (under construction) has Our logistics department facilitates the circular use of wooden Hainan subsidiaries exclusively use 100% biodegradable plastic

engineering solutions. undergone wind engineering expert reviews and other site-specific pallets. When goods arrive at our warehouse the used pallets are bags. Meanwhile Sunrise Shanghai strictly adheres to international

analyses. Reinforced concrete was used for the main tower’s core properly kept and incorporated into our recycling system. After aviation standards for duty-free packaging uses certified sealed

The design of the Haikou International Duty-Free Shopping structure reducing steel consumption by about 45% and resulting being unloaded the pallets are stored inspected and cleaned bags and strives to increase product capacity per bag to reduce

Complex incorporates advanced seismic damping technologies to in total cost savings of over CNY120 million. before being reused in subsequent warehousing operations. costs.This approach eliminates the need for purchases of new pallets

reduces costs and minimises resource consumption. The company adheres to the use of recyclable and degradable

green packaging and continuously develops and adopts

▍Metrics and Targets Furthermore the Haikou International Duty-Free Shopping innovative eco-friendly packaging technologies such as reusable

Complex aligned with the call to develop a low-altitude economy by and biodegradable materials to promote sustainability and

Metrics related to climate change response include energy In light of the evolving conditions of the company’s operating innovatively adopting drone delivery for duty-free goods. Departing environmental protection. Packaging bags used by the company’s

consumption and the resulting GHG emissions. Please refer to location and the market dynamics we will constantly review from the complex drones can reach the Haikou Railway South stores in Hainan are all made of biodegradable and environmentally

“Green and Low-Carbon Operations for a Better Life” for specific our practical activities and adjust our objectives and proposed Port Terminal located 1 kilometre away in only 1 minute and 24 friendly materials. Cartons and gas columns used as filling materials

data during the reporting period. As for green buildings as of the measures in a timely manner. We will further improve our seconds reducing transportation costs by nearly 30% and cutting for e-commerce operations by CDFI are all made from recyclableend of the reporting period please refer to “Conserving Energy and governance strategy formulation risk management identification delivery times from 20 minutes to 3 minutes. materials.Reducing Carbon throughout the Entire Building Process”. Please and management of metrics and targets and work with all sectors

refer to “ESG Strategy: Clarifying Key Priorities” for relevant targets. of society to cope with climate change and achieve common Reduce the packaging materials used. To avoid resource waste

sustainable development. and excessive packaging suppliers are required by the company

to deliver their goods directly to their destination skipping any

unpacking and repacking procedures needed during transportation.Our duty-free stores use sealing bags that meet international

standards by strictly following the duty-free packaging requirements

of International Aviation. We also try to put all goods into one

shopping bag of an appropriate size to make it easy for customers

to carry around practising the principles of environmental

protection and resource conservation.108 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Principles of Governance Prosperity People Planet 109

Establish a materials recovery system. The company has also We cooperate with subordinate companies and stores to jointly ▍Innovation-Driven Development

established a system to recycle waste materials extend the explore best practices in green packaging including in respect of

life cycle of packaging materials and improve the utilisation of packaging material selection packaging process optimisation and The company prioritises scientific and technological innovation as a cornerstone of its development strategy positioning it as a core driver of

resources. For example the company recycles cartons used during packaging waste management. We provide training and support high-quality growth.the logistics process and reuses them as containers on storage to strengthen subordinate companies’ implementation capabilities

shelves alternative turnover boxes during transportation and and foster the development of sustainable packaging solutions. Innovation Empowers Digital Transformation

packing boxes for the transfer of outbound goods so as to reduce Through this cooperation the company works alongside its

the quantity of newly purchased cartons. subordinate companies and stores to contribute to environmental

protection and advance efforts around green packaging. Adhering to an innovation-driven philosophy the company is

Promote packaging automation and intelligent upgrades. The committed to vigorously advancing technological innovation

company uses single-sheet receipts and slim tapes into the increasing R&D investment and applying cutting-edge technologies

logistics chain and explores the use of tape-free cartons at the such as 5G IoT robotics big data and AR/VR to enhance

end of the logistics chain. Tape-free cartons are sealed entirely operational efficiency and digital capabilities across all business

physically and they also allow consumers to feel that they are segments. The company participates in the State-owned Assets

Supervision and Administration Commission’s (SASAC) Innovation

participating in environmental protection initiatives during the Consortium project; and under this initiative we are leading the first

unpacking process. By making this change we hope to spread large-scale big data platform research initiative for China’s duty-

green consumption among large numbers of consumers. free industry. In 2024 the company achieved remarkable success

in technological innovation.The company insists on combining publicity with inspection to

promote the implementation of a green philosophy. Stores actively At the Sanya Downtown Store we have implemented systems

popularise the knowledge of plastic prohibition and restriction to including the customs declaration system the warehouse Air column bags have been replaced with honeycomb paper The company’s cdf Data Centre The company’s Duty-Free

customers and guide them on how to implement plastic reduction management system (WMS) the transportation management

system the GPS tracking system and the order sorting/pickup Platform won the Bronze Award and Duty-Paid Omnichannel and waste classification. Kindly reminders are sent to customers

system. With these tools we can engage in real-time data at the 18th “Revitalisation Cup” Membership Integration and

when they pick up goods to encourage them use their own canvas collection dynamically analyse big data and gain end-to-end National Youth Vocational Skills Management Enhancement

bags or backpacks and to discourage misuse of environment- operational visibility allowing us to swiftly identify and resolve Competition (Innovation and Project received a Merit Award

friendly paper shopping bags. The company has set up a anomalies. Efficiency Competition) at the same competition

dedicated team to carry out occasional inspections on prohibited

plastic items in the Hainan area. Once identified items listed in the

prohibited plastic item catalogue will be sealed up. Innovation Empowers Energy Conservation and

Innovation Empowers Operations

Open-top cartons have been replaced with tear-open designs to reduce Consumption Reduction

adhesive tape usage

We use virtualisation technology to virtualise servers and By deploying equipment to collect data regarding product weight

We set specific goals: Implementation plan:

storage devices improving the utilisation efficiency of and volume the company has built a foundational database that

hardware resources and reducing their energy consumption will support future optimisations to operations.Virtualisation and

No new pallet purchases; eliminate 1 Collect classify and reuse supplier pallets and cartons;

levels. We have also migrated part of the workload onto

cloud computing: cloud platforms to share resources and for better scalability

single-use storage containers; 2 Improve the upstream and downstream information system for the supply while avoiding energy wastage caused by excessive

chain to reduce paper usage; equipment procurement. Innovation Empowers Supply Chains

Mandate environmentally friendly 3 Purchase only environmentally friendly biodegradable and recyclable

d e g r a d a b l e a n d r e c y c l a b l e packaging materials; We have optimised the design and operation of data centres

materials. By adopting electronic smart locks we can monitor logistics 4 Ensure that logistics tools meet the requirements for recycling. Green data to reduce their energy consumption through the adoption of

centre efficient servers energy-saving air-conditioning systems in

vehicles in real time. Alerts are triggered immediately for anomalies

computer rooms and green cooling technologies. We also such as unauthorised stops or tampering enabling the company construction:

use renewable energy such as solar and wind energy to to quickly respond to safeguard goods and determine whether

Current Status of Packaging Material Usage power data centres and reduce carbon emissions. emergency measures should be taken.The Sanya Downtown Store recycles supplier delivery cartons

Metrics Tier 2 metrics Unit 2024 based on their size and composition and reuses them for storage

Total amount of packaging materials used by the company / Ton 505.23 We promote remote working and video conferences to

Remote working transport and repackaging. Through these efforts we are able

Total amount of packaging materials used by the company reduce commuting time and business travel for our people and video to reduce single-use carton purchases by over 600000 units / Ton/CNY10000 0.009

in unit operating income leading to a reduction in energy consumption and carbon conferencing: annually preserving nearly 20000 trees. Meanwhile by reusing emissions. With informatisation tools and platforms remote

Paper Ton 404.13 supplier pallets the company reduced purchases of new pallets by collaboration and communication between staff can be

Board Ton 0 6000 units saving nearly 300 trees. By establishing the upstream achieved that improve work efficiency and save energy. and downstream information system for the supply chain the

Procurement quantity of packaging materials by category Plastic Ton 101.11 company has become more paperless and digital supply chain

Glass Ton 0 systems have reduced paper usage. Using these tools the Sanya

Metal Ton 0 We reduce the energy required for data storage and Data Downtown Store is saving 1.8 million sheets of A4 paper annually. transmission through data compression and optimisation.Procurement quantity of packaging materials that were Recyclable Ton 387.12 optimisation and We have contracted with a dedicated recyclable materials service Data compression algorithms de-duplication and

recyclable/non-recyclable Non-recyclable Ton 99.51 compression: provider to recover packaging materials including cardboard and compression technologies are used to reduce the demand plastic pallets.Procurement quantity of packaging materials that were Reusable Ton 452.98 for and energy consumed by storage devices.reusable/non-reusable Non-reusable Ton 45.40 Fingerprint locks and AI facial recognition have replaced paper-

based inventory logs further promoting paperless operations.The proportion of degradable plastic packaging of the company’s plastic packaging materials are 100%.▼

▼ ▼ ▼110 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Principles of Governance Prosperity People Planet 111

Green and Low-Carbon Operations for a Better Life The quantity of waste generated by the company in 2024 was as follows:

Metrics Unit 2024The company continues to improve the four key capabilities of “green building green warehousing green duty-free complexes and green Toner kg 113consumption” and promote green and low-carbon production and lifestyles. Selenium drum kg 5

▍Environmental Protection and Standardised Operations Preserving Biodiversity

The Ministry of Ecology and Environment released China National

In accordance with the Environmental Protection Law the Law on Prevention and Control of Atmospheric Pollution the Law on Prevention

Biodiversity Conservation Strategy and Action Plan (2023-2030)

and Control of Water Pollution the Law on Prevention and Control of Environmental Pollution Caused by Solid Wastes the Energy For example Sanya is located within a tropical marine

which defines China’s biodiversity conservation strategy in the

Conservation Law of the People’s Republic of China and other Chinese laws and regulations as well as the Measures for the Supervision and monsoon climate zone with high temperatures and

new era. The company concerns about and protects biodiversity

and Administration of Energy Conservation and Ecological Environmental Protection at Chinese Central State-owned Enterprises the a relatively high humidity all the year round. This makes it

with action. We actively leverage our advantages to engage more home to diversified biological species and helps with the

company has formulated the “Administrative Measures on Energy Conservation and Ecological Environmental Protection” which stipulates

people to the cause of biodiversity protection. shaping of its healthy benign and sustainable ecosystem.the strict control of pollutant discharges and the prohibition of the arbitrary discarding stockpiling and dumping of solid waste as a move to During the development and construction of the Sanya

avoid environmental pollution.The Company takes biodiversity conservation into consideration International Duty-Free Shopping Complex Project we paid attention to the protection of the surrounding ecological

in the development and construction of the project and takes the

During the reporting year the company had no cases where it acted against the laws and regulations on energy conservation and environment and biodiversity and adopted various green

following main measures to minimise the impact of its operations

environmental protection nor any cases where it was punished or criticised by environmental protection authorities. construction technical measures to minimise the impact of

on biodiversity the Project on the ecological environment and biodiversity

such as enclosure noise control dust control etc..Reducing Our Impact on the Environment and Natural Resources

To reduce the significant impact of our activities on the environment and natural resources and promote resource recycling we have B a c k f i l l s t o p s o i l Prefers local plants

dug out during the

constructed green buildings and launched sustainable concept stores actively applying prefabricated buildings and recyclable materials to for landscaping to d e v e l o p m e n t a n d

reduce carbon emissions during the construction process. reduce the impact on construction process

the environment and

a s e n v i r o n m e n t a l

ecology.The company has signed “Responsibility Letters for Achieving Safety Production Energy Conservation and Environmental Protection Goals” compensation.(the “Letters”) with all departments and subsidiaries to resolutely reduce and prevent potential contamination during the construction

production and operating process.Emissions Management ▍Green Operations and Low-carbon Living

The company’s categories of emissions include greenhouse gas (GHG) emissions exhaust gases wastewater and solid waste. In terms ● Governance

of emissions management the company attaches importance to controlling exhaust gases and GHG emissions and takes up emissions

reduction measures to improve air quality. For wastewater and soil management the company is committed to protecting water and The company has issued the “Administrative Measures on Energy Conservation and Ecological Environmental Protection” and the “Actionsoil resources in accordance with relevant standards by taking appropriate treatment measures to meet the requirements for discharged Plan for Carbon Peaking and Carbon Neutrality” and has set up the “Energy Conservation and Environmental Protection Leadership Group”

wastewater. and the “Carbon Peaking and Carbon Neutrality Leadership Group” led by heads of the company. These have put forward management

requirements regarding procurement production & operations green buildings green logistics the promotion of green consumption and

For solid waste management the company is strongly against dumping stacking and discharge of waste without permission and performs the implementation of a green office and a lowcarbon lifestyle. The company has also improved the rewards and punishment mechanism

its duties in terms of source reduction and classification of solid waste as required by law. It has established compliant waste storage for energy conservation and environmental protection and organised the publicity implementation training and assessment of various

processes and works with qualified third parties for waste disposal under the laws and regulations to prevent environmental contamination. systems and action plans so as to solidly promote the systematisation institutionalisation and standardisation of energy conservation and

As for pollutant emissions it has established standardised pre-treatment facilities such as sedimentation tanks septic tanks and oil environmental protection work.separators which are subject to regular inspection and maintenance to ensure the compliant emissions. For recyclable waste such as

cartons subsidiaries implemented the “Waste Cardboard Management Regulations” to standardise disposal. CDFI stores and warehouses

established recycling systems for cardboard and packaging materials to boost paper reuse.In terms of waste reduction cdf Cambodia a subsidiary of CDFI began replacing paper price tags with e-tags in July 2024 to reduce

consumption of paper-based products. The Hong Kong Downtown Store introduced P-Life eco-material shopping bags (self-degrading)

to comply with new regulations on disposable plastic released by the Hong Kong government that were effective from 22 April. Our one-

person stores in Macao promoted paperless operations and eco-paper bags (no plastic). Meanwhile the Shenzhen Supply Chain Company

eliminated VIP-specific packaging to curb the excess use of packaging materials.112 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Principles of Governance Prosperity People Planet 113

Green Office and Low-Carbon Operations

● Strategy Management of impacts risks and opportunities

The company continues to carry out the standardisation construction of energy

We are focused on implementing the “carbon peaking and carbon neutrality” goals to promote our all-round energy-saving and conservation and environmental protection. In December 2024 CDFI passed its

environmental protection initiatives. We also actively build upon our management methods and strengthen our green operations and environmental management system (ISO14001) audit driving waste reduction energy

management capabilities as part of our continuous efforts to promote energy utilisation efficiency and improve the energy conservation and efficiency and eco-standards across Hong Kong and Macau stores.utilisation of our commercial complexes and duty-free stores. Environmental management system

(ISO14001) certificate

01 Duty-free complexes are equipped with an IOC smart building We fully promote garbage classification. For example Sanya integrated management platform which supports real time quantitative 04 International Duty-Free Shopping Complex Haikou International Duty-

analysis of energy consumption data and indicators and identification Free Shopping Complex are equipped with independent domestic

of energy consumption abnormalities to explore more energy saving garbage rooms and kitchen waste refrigerators to facilitate garbage Case study The company continues to promote green complex energy optimisation

opportunities and reduce energy consumption costs. classification. Caterers in these shopping malls are also required to

classify kitchen garbage in strict accordance with relevant regulations

02 We actively promote the application of energy-saving equipment with cleaning staff arranged to guide customers on domestic garbage In 2024 the company upgraded lighting air conditioners fans and other equipment for green complexes:by installing energy-saving lighting air conditioners fans and other classification. We have also signed waste recycling agreements and

equipment in all duty-free complexes and stores while eliminating garbage disposal agreements with qualified professional third parties

equipment with high energy consumption installing time control to ensure recycling and the safe disposal of solid wastes.switches and imposing strict limits on usage. We also maintain air * In collaboration with brand partners theconditioning systems on a regular basis to improve their energy 05 We put green philosophy into practice by creating a favourable company has in tegrated green des ign * Block C of Sanya International Duty-Free Shopping efficiency. atmosphere for “anyone to make savings in any scenario at any principles into shop and counter renovations Complex Installed timers to shorten HVAC operationtime”. For example we organised subsidiaries to learn and implement

03 We focus on improving the management of energy conservation the spirit of President Xi Jinping’s important speeches and instructions

as well as exhibition stand construction utilising hours; Energy saving renovations have also been carried

and green operations by controlling energy and water consumption and his comments on carbon peaking and carbon neutrality as part eco-friendly materials to support brands in out for the lighting systems in public areas of Block A and

across all duty-free complexes and stores according to the optimal of our continuing efforts to further promote the transformation to obtaining LEED certification. These efforts aim Block B we replaced T5 fluorescent tubes with LED stripsoperating strategy. We also formulate classified management systems green and low-carbon development. We released the “Green andand operating plans for equipment and facilities based on their actual to create consumer spaces that harmonise (saving about 12684 kWh/month);Low-Carbon Proposals” to encourage employees to lead the way in

conditions define red lines for daily energy consumption and carry carrying out low-carbon and energy-saving practices and in conveying fashion with environmental sustainability

out regular maintenance and statistical analysis on energy consuming green messages. Other measures include putting up signs around amplifying collective conservation impact.equipment and facilities as a means of reducing energy consumption. * Sanya International Duty-Free Shopping offices to remind employees to turn off the lights and save water

and organising publicity campaigns and training sessions on energy Complex formulated an operation strategy * T h e u n d e r - c o n s t r u c t i o n

conservation and environmental protection. for air conditioning fan equipment based

Haikou International Duty-Free on weather temperature and passenger

Shopping Complex (Plots 1 f low changes. We adjusted HVAC

We focus on improving the management of energy conservation and green operations by controlling energy and water consumption and 4) plans to install 2500 schedules and temperature settings

according to the optimal operating strategy including: m2 of solar photovoltaic panels (from 21°C to 24-25°C for return air

on rooftops and bicycle shed temperature) cutting electricity use of

canopies with a total installed Block A and Block B by 787000 kWh

capacity of 635 kW. Scheduled

The temperature of air condit ioners in We have installed induction water faucets in restrooms for compared with 2023;

offices and dormitories shall be no lower water saving purposes. for full commissioning by 2026

than 26 °C in summer shall be turned off the system is expected to Develop good habits and turn off the faucet after water

20 minutes before leaving and shall be generate approximately 1270 use to prevent water from running to waste. * Haikou Internat ional Duty-Free

powered off if left unattended for a period MWh annually. Solar-generated Shopping Complex saved about

of time. Report spills drips and leaks to the Engineering and electricity will prioritise internal 15500 kWh of electricity per month

Property Management Department in a timely manner for

Printers computers fans water heaters consumption with surplus repair. by renovating the air source air

lighting and other power supplies shall be power sold to grid operators. conditioning return air outlet installing

turned off before leaving the place of work aluminum buckle lights on the flying

(and be shifted to standby mode during non- ladder and installing radar induction

office hours).We strictly implement the Measures on Administration of controllers in the parking lot and

Before the store opens no lights more than * CDFG (Cambodia) Limited replaced Fuel Cards and Vehicles and resolutely prohibit the misuse * In August 2024 Haikou logistics channel lighting systems;

those required for work routines shall be all lighting facilities with LED lighting of company vehicles and excessive refuelling.switched on; electricity equipment to meet to reduce electricity consumption. Riyue Plaza Duty-Free Shop

operating needs shall only be turned on We develop fuel-efficient driving trainings for fleet operators A monitoring mechanism for the implemented a multi split * In 2024 Haikou International Duty-

10 minutes before opening; all electricity strictly carry out daily maintenance and smartly select use maintenance and procurement air conditioning centralised Free Shopping Complex carried out

equipment and lights shall be turned off driving routes. of of f ice equipment had been c o n t r o l s y s t e m w h i c h the renovation of logistics channels

after the closure. established with regular evaluations enabled centralised control and staircase lighting installed radarWe have establ ished sound electr ic i ty o f equ i pmen t ope ra t i on and of air conditioning start and sensors to achieve “lights off whenconservation management systems and performance status and approval stop real-time monitoring people leave”. During flight intervals

equipment operation procedures to reduce We promote a paperless office. for the replacement of high energy and ana l ys i s o f ene rgy airport stores should promptly turn off

unnecessary office electricity equipment and We adopt e-tag and e-billboard to reduce paper usage. consuming equipment. I t a lso consumption and dynamic non-essential lighting facilities to reduce

non-office electricity consumption. We adopt an office supplies procurement system to bring replaced high fuel consumption adjustment of environmental electricity consumption;

We have regular maintenance and energy about online integrated procurement. This system helps vehicles with those who have better temperature further reducing

audits for HVAC systems pumps fans centrally control procurement quantities and amounts so fuel saving performance; energy consumption;

elevators and l ighting etc. to reduce as to improve procurement efficiency cut expenses and

energy consumption. reduce waste.▼

Saving Water Saving Saving Office Gasoline Supplies

Saving Electricity114 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Principles of Governance Prosperity People Planet 115

Metrics and Targets

By the end of 2024 the company had a total of

Energy Consumption

The company mainly consumes electricity natural gas diesel gasoline and water during its daily operations. Our energy consumption Supporting brands 31 stores/counters had received 29 stores/counters 2 stores/counters had

resource usage greenhouse gas emission and intensity3 in 2024 are shown in the table below: in obtaining LEED LEED certification of which had received LEED Gold received LEED Silver

certification certification and certification.Metrics Unit 2024 2023

Electricity MWh 85810.28 74773.52

Natural Gas m3 562061 326352

Diesel Litre 143182 145046 In December 2021 the Armani Beauty In October 2022 the Balenciaga shop at Sanya International

Gasoline Litre 210526 203336 counter at Sanya International Duty-Free Duty-Free Shopping Complex received LEED Gold

Shopping Complex received LEED Gold certification.Comprehensive energy consumption tce 11617 10026.57 certification.Comprehensive energy intensity tce/m2 0.0162 0.0177

Water consumption m3 537987 391373.54

Water consumption intensity m3/m2 0.75 0.69

In January 2022 the Cartier shop at Sanya International Duty-

Free Shopping Complex received LEED Gold certification

Greenhouse Gas Emissions

Our greenhouse gas emissions4 from energy use in 2024 are shown in the table below:

In January 2023 the Lanc?me shop at Haikou International

Metrics Unit 2024 2023 Duty-Free Shopping Complex received LEED Gold

certification.Total greenhouse gas emissions tCO2e 28540 24632

Greenhouse gas emissions intensity tCO2e/m

20.040.04

Direct greenhouse gas emissions (Scope 1 emissions)5 tCO2e 2631 2056

Indirect greenhouse gas emissions (Scope 2 emissions)6 tCO2e 25909 22576

In March 2022 the YSL Beauté counter

at Sanya International Duty-Free Shopping

Complex received LEED Gold certification.In March 2023 the Helena Rubinstein shop at Haikou

In April 2022 the Kiehl’s store at Sanya International Duty-Free Shopping Complex received LEED

Internat iona l Duty-Free Shopping Gold certification.C o m p l e x r e c e i v e d L E E D G o l d

certification.In April 2022 the Lanc?me counter

a t Sanya In te rnat iona l Duty-Free

Shopping Complex received LEED Gold

certification.In March 2023 the Kiehl’s shop at Haikou International Duty-

Free Shopping Complex received LEED Gold certification.In September 2022 the De Beers shop at Sanya International

Duty-Free Shopping Complex received LEED Gold certification.

3 The statistic scope of natural gas electricity diesel gasoline includes the building of company’s headquarters Haikou International Duty-Free Shopping Complex Sanya International

Duty-Free Shopping Complex Sunrise Shanghai and Sunrise China which have already covered the majority of the company’s operating area and revenue. The company will gradually

expand the statistical scope in the following years.

4 The statistic scope of natural gas electricity diesel gasoline and the resulting GHG emissions includes the building of company’s headquarters Haikou International Duty-Free

Shopping Complex Sanya International Duty-Free Shopping Complex Sunrise Shanghai and Sunrise China which have already covered the majority of the company’s operating area

and revenue. The company will gradually expand the statistical scope in the following years.

5 Direct GHG emissions: The company’s gasoline and natural gas consumption multiplied by the corresponding emission factors which are determined with reference to * China Energy

Statistical Yearbook * IPCC 2006.

6 Indirect GHG emissions: The company’s purchased electricity consumption multiplied by the corresponding emission factor which is determined with reference to the Notice on

Reporting and Verification Greenhouse Gas Emissions of Enterprises in Certain Key Industries from 2023 to 2025 issued by the Ministry of Ecology and Environment of China.116 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Principles of Governance Prosperity People Planet 117

In March 2023 the YSL Beauté shop at Haikou International In July 2023 the YSL shop at Haikou International Duty-Free In February 2024 the Armani shop at Sanya Duty-Free In May 2024 the Shu uemura shop at Sanya Duty-Free

Duty-Free Shopping Complex received LEED Gold certification. Shopping Complex received LEED Gold certification. Shopping Complex Block C received LEED Gold certification. Shopping Complex Block C received LEED Gold certification.In February 2024 the Maison Margiela shop at Sanya Duty-

Free Shopping Complex Block C received LEED Gold In June 2024 the Prada shop at Haikou International Duty-

Free Shopping Complex received LEED Gold certification.In April 2023 the De Beers shop at Haikou International Duty- In January 2024 the Helena Rubinstein shop at Sanya certification.Free Shopping Complex received LEED Gold certification. Duty-Free Shopping Complex Block C received LEED Gold

certification.In March 2024 the Kiehl’s shop at Sanya Duty-Free

Shopping Complex Block C received LEED Gold certification. In August 2024 the Valentinoshop at Sanya Duty-Free

Shopping Complex Block C received LEED Gold certification.In May 2023 the Cartier shop at Haikou Meilan Airport Duty- In January 2024 the L’Oréal shop at Sanya Duty-Free Shopping

Free Shop received LEED Gold certification. Complex Block C received LEED Gold certification.In April 2024 the Lanc?me shop at Sanya Duty-Free

Shopping Complex Block C received LEED Gold certification.In May 2022 the Van Cleef & Arpels shop at Sanya

International Duty-Free Shopping Complex received LEED

In June 2023 the Balenciaga shop at Haikou International In January 2024 the SAINT LAURENT shop at Sanya Duty-Free Sliver certification.Duty-Free Shopping Complex received LEED Gold certification. Shopping Complex Block C received LEED Gold certification.In April 2024 the Prada Beauty shop at Haikou International

Duty-Free Shopping Complex received LEED Gold

certification.In July 2023 the Van Cleef & Arpels shop at Haikou

In July 2023 the Cartier shop at Haikou International Duty-Free In January 2024 the Prada Beauty shop at Sanya Duty-Free International Duty-Free Shopping Complex received LEED

Shopping Complex received LEED Gold certification. Shopping Complex Block C received LEED Gold certification. Sliver certification.In April 2024 the SkinCeuticals shop at Sanya Duty-Free

Shopping Complex Block C received LEED Gold certification.118 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Appendix 119

Saving Food

The company complies with the Anti-Food Waste Law and implements the spirit of President Xi Jinping’s important instructions and Appendix

comments on “firmly combating extravagancy in foods” as well as the important requirements of the 20th National Congress of the Chinese

Communist Party on “advocating frugality and thrift in the whole society”. We improve our employees’ awareness of saving food by taking

actions during daily meals in staff canteens. Glossary of Terms

* Put up posters advocating reducing leftover food such as * Prepare food in batches based on the number of staff to be

“Clear Your Plate” in the eye-catching areas of canteens; served as reported by each department and offer smaller

servings to prevent waste; Term Definition

* The staff meal is in a buffet form to encourage staff to only CTG DUTY-FREE the company refers to China Tourism Group Duty Free Corporation Limited together with its affiliated companies

our company we

take the amount they need;

ESG Report the Report this refers to The Environmental Social and Governance Report

* Offer mixed coarse-grains to enrich food variety and reduce Report

waste;

The reporting period the current refers to From 1 January 2024 to 31 December 2024

* Set up a tableware recycling desk to discourage food waste year

and supervise the effective classification of leftover food;

China Tourism Group refers to China Tourism Group Co. Ltd.* Carry out anti-food waste awareness activities for example

Sunrise Shanghai has established a dedicated team to save CTS Holdings refers to China Travel Service (Holdings) Hong Kong Limited

food and combat food waste behaviours. The team helps

CDF Investment Development refers to CDF Investment Development Co. Ltd.improve diners’ food waste awareness through publicity

activities and by equipping canteens with dedicated staff to Sanya Downtown Duty-Free Store refers to China Duty Free Group Sanya Downtown Duty Free Store Co. Ltd.encourage good dining behaviours.Sunrise China refers to Sunrise Duty Free (China) Co. Ltd.In 2024 the total weight of food loss and waste generated

by the company was 101.89 tons7 the total amount of food Sunrise Shanghai refers to Sunrise Duty Free (Shanghai) Co. Ltd.loss and waste used for alternative purposes was 28.89

tons the total amount of food discarded was 73 tons and Hainan DF refers to Hainan Provincial Duty Free Co. Ltd.the intensity of food loss and waste was 0.039 tons/person.CDFI refers to China Duty Free International Limited

CDFG (Cambodia) Limited refers to China Duty Free Group (Cambodia) Co. Ltd.▍Green Transportation with Lower Emissions

Guangzhou Xinmian refers to Guangzhou Xinmian Duty Free Merchandise Co. Ltd.The National Development Plan for Comprehensive Transport Services We are well aware of the synergistic effect of the supply chain and have

during the 14th Five-year Plan Period specifies accelerating the collaborated with brands to optimise freight modes gradually increase CDFCS refers to China Duty Free Cruise Services Limited

construction of a clean and low-carbon green transportation system by the proportion of ocean transportation in the procurement process. Our

encouraging enterprises to adopt integrated efficient green and low- company has also continued to strengthen communication and exchanges Dalian cdf refers to Dalian Port China Duty Free Merchandise Co. Ltd.carbon freight and logistics systems. The company acts as a role model in with suppliers and relevant authorities in Hainan province to expand the Hangzhou cdf refers to CDFG Hangzhou Duty Free Merchandise Co. Ltd.the building of a green transportation system. number of categories and products shipped by sea to reduce carbon

emissions further. Our efforts in this area have received massive attention Sanya Downtown Store refers to CDFG Sanya Downtown Duty-Free Store Co. Ltd.We have vigorously promoted the use of clean energy equipment and and support from many brands supplier groups in the industry.made full use of electric powered forklift trucks to replace traditional fuelled Haikou Meilan Airport Duty-Free refers to Hainan Duty Free Haikou Meilan Airport Duty Free Store Co. Ltd.ones to reduce carbon emission and environmental pollution at the end With the goal of raising transportation efficiency and reducing energy Shop

of the reporting period the proportion of electric forklifts in the company consumption in its transportation processes to facilitate the construction

had reached 100%. of a green transportation system and we have obtained the TAPA8 and Shenyang cdf refers to CDFG Shenyang Duty Free Merchandise Trading Co. Ltd.WCA9 certifications.The company makes continuous efforts to build an advanced and Hohhot cdf refers to Hohhot China Duty Free Merchandise Co. Ltd.appropriate warehousing system by combining warehouses scattered Wuhan cdf refers to CDFG (Wuhan) Airport Duty Free Merchandise Co. Ltd.across key areas to form an integrated warehouse distribution centre

and by leveraging big data and intelligent route optimisation algorithm Chengdu cdf refers to CDFG Chengdu Airport Duty Free Merchandise Co. Ltd.technology to coordinate transportation routes with improved logistics

efficiency for duty-free goods by sea land and air. Such measures help Shenzhen Supply Chain refers to China Duty Free (Shenzhen) Supply Chain Technology Co. Ltd.maximise carrying capacity thereby reducing the number of trips needed

the amount of energy consumed and carbon emissions throughout the Duty-free merchandise refers to Imported goods that are exempt from customs duties value added tax (VAT) and consumption tax on

transportation process. For long-distance transportation the company imports and domestically produced goods that are subject to tax rebates (VAT and consumption tax) that

opts to ship by sea with relatively low carbon emissions per unit where are sold in duty-free shops Certificate of Membership by Certificate of Membership by

possible. For short-distance land transportation the company strictly Transported Asset Protection World Cargo Alliance (WCA) Duty-free store refers to With the approval of the General Administration of Customs business units set up sales sites and

regulates the use of vehicles to ensure that they meet the standards for Association (TAPA) supervised warehouses for storing duty-free commodities in places approved by the State Council of the

emissions in their operation regions. people’s Republic of China or its authorized departments to sell duty-free commodities to specified sales

targets

7 In 2024 the scope of the company’s food loss and waste statistics only covers Sunrise Shanghai and the Haikou International Duty-Free Shopping Complex.

8 TAPA: Transported Asset Protection Association

9 WCA: World Cargo Alliance

▼ ▼120 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Appendix 121

Term Definition ESG Metrics

Offshore duty-free policy refers to The tax preference policy is to implement import duty-free shopping with limited value limited quantity

and limited variety for passengers leaving the island by plane train or ship (excluding departures) make

payment in duty-free shops or approved online sales windows where the tax-free policy is implemented Environmental Performance Metrics

and pick up goods from the island at designated areas of airports railway stations and ports. The tax

exemption policies for the island include customs duty import VAT and consumption tax

Metrics Tier 2 metrics Unit 2024

SASAC refers to The State-owned Assets Supervision and Administration Commission of the State Council

Resource usage

CSRC refers to China Securities Regulatory Commission

Electricity1 MWh 85810.28

SSE refers to Shanghai Stock Exchange

Natural Gas1 m3 562061

HKEx refers to Stock Exchange of Hong Kong Limited

Diesel1 Litre 143182

Company Law refers to Company Law of the People’s Republic of China

Gasoline1 Litre 210526

Securities Law refers to Securities Law of the People’s Republic of China

Comprehensive energy consumption tce 11617

Anti-money Laundering Law refers to Anti-money Laundering Law of the People’s Republic of China

Comprehensive energy intensity tce/m2 0.0162

Anti-Unfair Competition Law refers to Anti-Unfair Competition Law of the People’s Republic of China

Water consumption m3 537987

Advertising Law refers to Advertising Law of the People’s Republic of China

Water consumption intensity m3/m2 0.75

Cybersecurity Law refers to Cybersecurity Law of the People’s Republic of China

Total amount of packaging materials used by the company Ton 505.23

Data Security Law refers to Data Security Law of the People’s Republic of China

Total amount of packaging materials used by the company in

Personal Information Protection refers to Personal Information Protection Law of the People’s Republic of China Ton/CNY10000 0.009unit operating income

Law

Paper Ton 404.13

Anti-monopoly Law refers to Anti-monopoly Law of the People’s Republic of China

Board Ton 0

Protection of Rights and Interests refers to Law of the People’s Republic of China on the Protection of Rights and Interests of Consumers

of Consumers Law Procurement quantity of packaging materials by category Plastic Ton 101.11

Product Quality Law refers to Product Quality Law of the People’s Republic of China Glass Ton 0

Labour Law refers to Labour Law of the People’s Republic of China Metal Ton 0

Labour Contract Law refers to Labour Contract Law of the People’s Republic of China

Procurement quantity of packaging materials that were Recyclable Ton 387.12

Trade Union Law refers to Trade Union Law of the People’s Republic of China recyclable/non-recyclable Non-recyclable Ton 99.51

Work Safety Law refers to Work Safety Law of the People’s Republic of China

Procurement quantity of packaging materials that were Reusable Ton 452.98

Law on the Prevention & Control of refers to Law of People’s Republic of China on the Prevention & Control of Occupational Diseases reusable/non-reusable

Occupational Diseases Non-reusable Ton 45.4

Fire Control Law refers to Fire Control Law of the People’s Republic of China

Environmental Protection Law refers to Environmental Protection Law of the People’s Republic of China

Prevention and Control of Air refers to Law of the People’s Republic of China on Prevention and Control of Air Pollution

Pollution Law

Prevention and Control of Water refers to Law of the People’s Republic of China on Prevention and Control of Water Pollution

Pollution Law

Prevention and Control of refers to Prevention and Control of Environmental Pollution Caused by Solid Wastes

Environmental Pollution Caused by

Solid Wastes Law

Energy Conservation Law refers to Energy Conservation Law of the People’s Republic of China

Anti-food Waste Law refers to Anti-food Waste Law of the People’s Republic of China

Product Quality Law refers to Product Quality Law of the People’s Republic of China122 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Appendix 123

Social Performance Metrics

Metrics Tier 2 Metrics Unit 2024

Metrics Tier 2 metrics Unit 2024

Hire

Climate Change

Total number of employees Person 16027

Total greenhouse gas emissions2 tCO2e 28540

The number of ethnic minority employees Person 1468

Greenhouse gas emissions intensity tCO2e/m

20.04

The percentage of ethnic minority employees % 9.16

Direct greenhouse gas emissions (Scope 1 emissions)3 tCO2e 2631

The percentage of ethnic minority employees in the management % 4.55

Indirect greenhouse gas emissions (Scope 2 emissions)4 tCO2e 25909

The number of foreign employees Person 504

Emission

The percentage of foreign employees % 3.14

Toner kg 113

Waste The percentage of foreign employees in the management % 0.91

kg kg 5

The number of physically challenged employees Person 128

Notes: Females in the Board of Directors and the Supervisory Committee % 36.36

1. The statistic scope of natural gas electricity diesel gasoline includes the building of company’s headquarters Haikou International Duty-Free Shopping Complex Sanya

International Duty-Free Shopping Complex Sunrise Shanghai and Sunrise China which have already covered the majority of the company’s operating area and revenue. The Females in the management % 36.36

company will gradually expand the statistical scope in the following years.

2. The statistic scope of natural gas electricity diesel gasoline and the resulting GHG emissions includes the building of company’s headquarters Haikou International Duty- Females in the senior managerial roles % 25

Free Shopping Complex Sanya International Duty-Free Shopping Complex Sunrise Shanghai and Sunrise China which have already covered the majority of the company’s

Females in the middle managerial roles % 37.25

operating area and revenue. The company will gradually expand the statistical scope in the following years.

3. Direct GHG emissions: The company’s gasoline and natural gas consumption multiplied by the corresponding emission factors which are determined with reference to * China Share of women in management positions in revenue-generating

Energy Statistical Yearbook * IPCC 2006. % 36functions (e.g. sales) as % of all such managers

4. Indirect GHG emissions: The company’s purchased electricity consumption multiplied by the corresponding emission factor which are determined with reference to the Notice

on Reporting and Verification Greenhouse Gas Emissions of Enterprises in Certain Key Industries from 2023 to 2025 issued by the Ministry of Ecology and Environment of Total number of new employees Person 1905

China.Internal hire rate % 45.35

Employee productivity CNY/Person 376911

Female Person 6775

The number of employees by gender

Male Person 9252

Senior managerial roles Person 8

The number of employees by employee category Middle managerial roles Person 102

General employees Person 15917

Over 60 Person 8

50-60 Person 425

40-49 Person 1799

The number of employees by age group

30-39 Person 6670

22-29 Person 6871

Below 22 Person 254124 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Appendix 125

Metrics Tier 2 Metrics Unit 2024 Metrics Tier 2 Metrics Unit 2024

North China Person 2184 Male % 17.53

Employee turnover rate by gender

East China Person 2225 Female % 14.33

South and central China Person 9767 Senior managerial roles % 25

Northwest China Person 40 Employee turnover rate by category Middle managerial roles % 5.88

The number of employees by region Southwest China Person 307 General employees % 18.72

Northeast China Person 238 Over 60 % 52.94

Hong Kong SAR Macau SAR 50-60 % 12.53

Person 727

and Taiwan region

40-49%6.98

Overseas Person 539 Employee turnover rate by age group

30-39%11.73

Male Person 725

The number of new employees by gender 22-29 % 19.23

Female Person 1180

Below 22 % 48.58

Senior managerial roles Person 0

Chinese Mainland % 18.14

The number of new employees by employee category Middle managerial roles Person 4

China’s Hong Kong SAR Macau

Employee turnover rate by geographical region % 30.54

General employees Person 1901 SAR and Taiwan region

Over 60 Person 0 Overseas % 16.14

50-60 Person 20 Health and Safety

40-49 Person 131 The coverage of work-related injury insurance % 100

The number of new employees by age group

30-39 Person 558 The total amount of work-related injury insurance expenses CNY10000 53.91

22-29 Person 1055 Total expenses in operations safety CNY10000 2177

Below 22 Person 141 Safety trainings Session 770

Han ethnic group Person 1570 Safety trainings participants 10000 People 3.23

Chinese ethnic minorities Person 194 Employee Person 0

The number of new employees by ethnicity Work-related fatalities

China’s Hong Kong SAR Macau Contractors Person 0

Person 141

SAR Taiwan region and overseas

The fatality rate of the company’s employees

%0

Chinese nationality Person 1764 due to work-related injuries5

The number of new employees by nationality

Foreign nationality Person 141 Total number of work-related injury cases Case 0

Employee Day 0

Number of working days lost due to work-related injury

Contractors Day 0

Lost-time injury frequency rate Employee % 0

(per one million hours worked)6 (LTIFR) Contractors % 0126 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Appendix 127

Metrics Tier 2 Metrics Unit 2024 Metrics Tier 2 Metrics Unit 2024

Training and Development Product liability

The total expenditure of employee training and development CNY10000 954.48 Percentage of the total number of products sold or shipped that

%0

need to be recalled for safety and wellness reasons

Average cost of training and development per full-time employee CNY/Person 595.55

Total complaints received Number 76546

Percentage of employees trained % 100

Average hours used to handle each complaint Hour 141.81

Male % 100

Percentage of employees trained by gender As at the end of 2024 complaints handled as a proportion of total

Female % 100 % 99.72

complaints received during the year

Senior management % 100

Intellectual property rights

Percentage of employees trained by category Middle management % 100

Number of IPRs such as trademarks and

Item 72

General employee % 100 copyrights at the end of 2024

Total training hours 10000 hours 63.37 Number of IPRs such as trademarks and copyrights during 2024 Item 42

Average training hours completed per employee Hour 40.03 Number of valid patents Item 2

Male Hour 26.79 Number of effective patents per CNY100 million of revenue Item/CNY100 million 0.004

Average training hours completed per employee by gender

Female Hour 36.58 Number of software programs per CNY100 million of revenue Item/CNY100 million 0.127

Senior management7 Hour 142.45 Community investment

Average training hours completed per employee by category Middle management Hour 75.05 Free assistance funds CNY10000 1372

Total expenditure on rural revitalization

General employee Hour 34.9 Paid assistance funds CNY10000 27.9

Chinese Mainland Hour 41.76 Number of various assistance projects implemented Number 15

Chinese Hong Kong SAR Total amount of assist in introducing assistance funds CNY10000 642

Average training hours completed per employee by region Hour 13.29

Macau SAR and Taiwan region

Number of grassroots cadres trained Person 497

Overseas Hour 14.27

Number of champions in rural revitalisation and

Person 84

Supply Chain Management wealth creation trained

Total number of brand partners Number 631 Number of technicians trained Person 562

Chinese Mainland Number 202 Notes:

5. Fatalities due to work-related injuries (per 100 workers) = number of fatalities due to work-related injuries/number of workers * 100%;

Hong Kong SAR

Number of brand partners by geographical region Number 140 6. Lost-time injury frequency rate (per one million hours worked) (LTIFR) = number of lost time injuries/total number of man-hours worked in the accounting period * 1000000

Macau SAR and Taiwan region

7. As far as the training courses organised by the company are concerned there is no significant difference for employees at different categories; however the senior management

Overseas Number 289 participated in more intense trainings subject to the requirement on the training hours in the Regulations on the Education and Training of Cadres issued by the CPC Central

Committee.Total number of non-brand suppliers Number 3392

Chinese Mainland Number 3326

Hong Kong SAR

Number of non-brand suppliers by geographical region Number 0

Macau SAR and Taiwan region

Overseas Number 66

Classification of non-brand suppliers Total number of Level I suppliers Number 219128 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Appendix 129

Index

Governance Performance Metrics Shanghai Stock Exchange Sustainability Report (Trial) Index

Metrics Tier 2 Metrics Unit 2024

Number Topic Relevant section in this report

Anti-corruption

1 Climate change tackling Addressing Climate Change to Protect the Environment

Sessions Time 7

Anti-corruption trainings for employees 2 Pollutant discharge No significant relevance8

Coverage % 100

3 Waste disposal Green and Low-Carbon Operations for a Better Life

Sessions Time 3

4 Ecosystem and biodiversity protection Green and Low-Carbon Operations for a Better Life9

Anti-corruption trainings for management Coverage % 100

5 Environmental compliance management Green and Low-Carbon Operations for a Better Life

Duration Hour 2

6 Energy usage Green and Low-Carbon Operations for a Better Life

Anti-corruption trainings for director and supervisor Sessions Time 7

including independent director 7 Usage of water resources Green and Low-Carbon Operations for a Better LifeCoverage % 100

8 Circular economy Focusing on New Quality Productive Forces to Develop a Circular Economy

9 Rural revitalization Meeting our responsibilities in rural revitalisation

10 Contributions to the society Green Alliance: Joining Hands with Brands to Open a New Chapter

Engaging in Charity Initiatives to Act as a Responsible Corporate

11 Innovation-driven Focusing on New Quality Productive Forces to Develop a Circular Economy

12 Ethics of science and technology No significant relevance10

13 Supply chain security Robust Green and Intelligent Supply Chain

14 Equal treatment to small and medium-sized Robust Governance System for Long-term Stable Operations

enterprises

15 Safety and quality of products and services Upholding Original Beliefs and Mission to Ensure Trusted Business Operations

16 Data security and customer privacy Complying with Commercial Ethics to Reinforce Internal Control Compliance

protection

17 Employees Employee Rights and Promoting Their Interests

Diversified Training to Promote Staff Development

Operational Safety and Physical and Mental Health

18 Due diligence Compliance Management 11

19 Communications with stakeholders Stakeholder Communication

20 Anti-commercial bribery and anti-corruption Business Ethics

21 Anti – unfair competition Business Ethics

22 Packaging material management Green and Low-Carbon Operations for a Better Life

23 Intellectual property protection Focusing on New Quality Productive Forces to Develop a Circular Economy

24 Excellent service experience Upholding Original Beliefs and Mission to Ensure Trusted Business Operations

25 Collaborating with brand partners to promote Green Alliance: Joining Hands with Brands to Open a New Chapter

environmental protection

Notes:

8. Neither the company nor its subsidiaries have been included in the list of enterprises that are legally required to disclose environmental information. This topic holds neither

financial materiality nor impact materiality.

9. The company’s operation activities have no significant impact on the ecosystem and biodiversity but we also take it into consideration for project development and construction

and disclosed in the report.

10. The company does not engage in scientific research or technological development within ethics-sensitive domains; this topic is not applicable.

11. Due diligence regarding sustainability-related adverse impacts or risks is described in relevant issue-specific chapters.130 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Appendix 131

ESG Metrics System for ESG Reports of Listed Companies Controlled by Central State-

owned Enterprises Index

Disclosure of content

Location/Note

Disclosure of content Relevant section Tier 1 Metrics Tier 2 Metrics Tier 3 Metrics

Basic information of the Company and the Report About this report Sources and types of GHGs Green and Low-Carbon Operations for a Better Life

Conserving Energy and Reducing Carbon throughout the Entire

ESG governance ESG STRATEGY: CLARIFYING KEY PRIORITIES

GHG emissions management Building ProcessAddressing Climate Change to Protect the Environment

ESG risk and opportunities Complying with Commercial Ethics to Reinforce Internal Control Compliance Greenhouse gas Green and Low-Carbon Operations for a Better Life

emission

Stakeholder engagement Robust Governance System for Long-term Stable Operations Scope 1 GHG emissions Green and Low-Carbon Operations for a Better Life

Scope 2 GHG emissions Green and Low-Carbon Operations for a Better Life

Materiality assessment Robust Governance System for Long-term Stable Operations

Climate Change GHG emissions intensity Green and Low-Carbon Operations for a Better Life

Conserving Energy and Reducing Carbon throughout the Entire

Disclosure of content Emission reduction GHG mitigation management Building ProcessLocation/Note management Addressing Climate Change to Protect the Environment

Tier 1 Metrics Tier 2 Metrics Tier 3 Metrics Green and Low-Carbon Operations for a Better Life

Environmental Aspect indicators Conserving Energy and Reducing Carbon throughout the Entire

Building Process

Fresh water consumption Green and Low-Carbon Operations for a Better Life Climate risk management Climate risk management Combatting the Typhoon with Determination and United Efforts

Addressing Climate Change to Protect the Environment

Conserving Energy and Reducing Carbon throughout the Entire Green and Low-Carbon Operations for a Better Life

Water Recycled water consumption

Building Process Impacts of activities Impacts of activities products and Conserving Energy and Reducing Carbon throughout the Entire Biodiversity products and services on Building Process

Intensity of water consumption Green and Low-Carbon Operations for a Better Life biodiversity services on biodiversity Green and Low-Carbon Operations for a Better Life

Fossil fuel consumption Green and Low-Carbon Operations for a Better Life Low-carbon development

target and strategic Low-carbon development target ESG Strategy: Clarifying Key PrioritiesResource and strategic measures Addressing Climate Change to Protect the Environment

Consumption Energy Total energy consumption Green and Low-Carbon Operations for a Better Life measures

Energy consumption intensity Green and Low-Carbon Operations for a Better Life Water utilisation management Green and Low-Carbon Operations for a Better Life

Focusing on New Quality Productive Forces to Develop a Circular

Focusing on New Quality Productive Forces to Develop a Circular

Packaging material usage Resource management

Material usage management Economy

Economy measures Green and Low-Carbon Operations for a Better Life

Packaging materials Conserving Energy and Reducing Carbon throughout the Entire

Packaging material lightweight Focusing on New Quality Productive Forces to Develop a Circular Energy use and conservation

management Building Processand reduction Economy Green and Low-Carbon Operations for a Better Life

Wastewater discharge compliance Green and Low-Carbon Operations for a Better Life Conserving Energy and Reducing Carbon throughout the Entire

Building Process

Effluents Wastewater management and

Green and Low-Carbon Operations for a Better Life Green technologies and recycling

Addressing Climate Change to Protect the Environment

Focusing on New Quality Productive Forces to Develop a Circular

reduction measures Economy

Green and Low-Carbon Operations for a Better Life Resource and Green and Low-Carbon Operations for a Better LifeEnvironmental

Exhausts Exhaust emission compliance Conserving Energy and Reducing Carbon throughout the Entire Management System Green building Renovation Conserving Energy and Reducing Carbon throughout the Entire

Pollution Control Building Process

Building Process Measures

Green initiatives and Addressing Climate Change to Protect the Environment

Legal compliance of solid waste measures Green office and operations Focusing on New Quality Productive Forces to Develop a Circular Green and Low-Carbon Operations for a Better Life

disposal Economy

Solid waste Green and Low-Carbon Operations for a Better Life

General industrial solid waste

Green procurement and green Robust Green and Intelligent Supply ChainGreen and Low-Carbon Operations for a Better Life

management supply chain management Focusing on New Quality Productive Forces to Develop a Circular Economy

Environmental public welfare Green Alliance: Joining Hands with Brands to Open a New

activities ChapterEngaging in Charity Initiatives to Act as a Responsible Corporate

Green and low-carbon Environmental management

certification system certification Green and Low-Carbon Operations for a Better Life

Environmental legal Environmental emergency Combatting the Typhoon with Determination and United Efforts

compliance response plan Operational Safety and Physical and Mental HealthAddressing Climate Change to Protect the Environment132 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Appendix 133

Disclosure of content Disclosure of content

Location/Note Location/Note

Tier 1 Metrics Tier 2 Metrics Tier 3 Metrics Tier 1 Metrics Tier 2 Metrics Tier 3 Metrics

Social aspect indicators Taxes payment Tax Payment Situation Refer to the 2024 Annual Report or other corporate documents

Corporate Recruitment Policy and

Implementation Employee Rights and Promoting Their Interests Meeting our responsibilities in rural revitalisation

Employee Recruitment Employee Structure Employee Rights and Promoting Their Interests Policies and Measures for With a Dual Focus Co-Creating a New Development BlueprintAnd Employment

Avoiding Child Labor or Forced Participating in Local Community Sailing with Momentum: A Decade of Excellence

Labor Employee Rights and Promoting Their Interests Construction Setting the Industry Benchmark for High-quality Development

Compensation Philosophy and Employee Rights and Promoting Their Interests Engaging in Charity Initiatives to Act as a Responsible CorporatePolicy Community building

Working Hours and Rest Periods Employee Rights and Promoting Their Interests

Employee Compensation Meeting our responsibilities in rural revitalisation

and Benefits Compensation and Benefits

Security Employee Rights and Promoting Their Interests

With a Dual Focus Co-Creating a New Development Blueprint

Contribution and Impact on the

Sailing with Momentum: A Decade of Excellence

Employee Democratic

Management Employee Rights and Promoting Their Interests

Local Community

Setting the Industry Benchmark for High-quality Development

Employee rights Occupational Health and Safety Engaging in Charity Initiatives to Act as a Responsible CorporateManagement for Employees Operational Safety and Physical and Mental Health

Employee Safety Policies and Measures for Operational Safety and Physical and Mental Health Meeting our responsibilities in rural revitalisation

Employee Health and Risk Prevention and Control Participating in Social Charity

Safety Response to Safety Accidents and Engaging in Charity Initiatives to Act as a Responsible CorporateOperational Safety and Physical and Mental Health ActivitiesWork-related Injuries

Investment and Effectiveness of

Employee Care and Assistance Employee Rights and Promoting Their Interests National strategic Operational Safety and Physical and Mental Health Social welfare activities Meeting our responsibilities in rural revitalisation

response Participating in Social Charity

Employee Motivation and Engaging in Charity Initiatives to Act as a Responsible CorporateActivities

Promotion Policy Diversified Training to Promote Staff Development

Employee Development

and Training Employee Education and Training Diversified Training to Promote Staff Development Construction of Accessible Upholding Original Beliefs and Mission to Ensure Trusted

Career Planning and Position

Change Support for Employees Diversified Training to Promote Staff Development

Environment Business Operations

Employee Satisfaction Employee Turnover Employee Rights and Promoting Their Interests Upholding Original Beliefs and Mission to Ensure Trusted

Production Standard Management Upholding Original Beliefs and Mission to Ensure Trusted Industrial Transformation Business Operations

Policies and Measures Business OperationsOperational Safety and Physical and Mental Health Setting the Industry Benchmark for High-quality Development

Quality Management Upholding Original Beliefs and Mission to Ensure Trusted Product Safety and Meeting our responsibilities in rural revitalisationBusiness Operations Rural Revitalisation and Regional

Quality With a Dual Focus Co-Creating a New Development Blueprint

Product Recall and Withdrawal Upholding Original Beliefs and Mission to Ensure Trusted National strategic Coordinated DevelopmentBusiness Operations Setting the Industry Benchmark for High-quality Development

Negative Events Related to Upholding Original Beliefs and Mission to Ensure Trusted response Belt and Road Initiative

Products or Services Business Operations

Upholding Original Beliefs and Mission to Ensure Trusted and Overseas Fulfillment of Setting the Industry Benchmark for High-quality Development

Product and Service Customer Satisfaction Business Operations Responsibilities

Management

Customer Service & Customer Complaints and Upholding Original Beliefs and Mission to Ensure Trusted

Advocacy Handling Business Operations Industry Features and Other Social Setting the Industry Benchmark for High-quality Development

Customer Information and Privacy Complying with Commercial Ethics to Reinforce Internal Control Responsibility Fulfillment

Protection Compliance

R&D and Innovation Management Focusing on New Quality Productive Forces to Develop a Circular

System Economy

R&D Innovation Achievements Focusing on New Quality Productive Forces to Develop a Circular Economy

Intellectual Property Protection Complying with Commercial Ethics to Reinforce Internal Control Compliance

Supplier Selection and

Management Robust Green and Intelligent Supply Chain

Management of Suppliers

Number and Distribution of

Supply Chain Suppliers Robust Green and Intelligent Supply Chain

Security and

Management Supply Chain Management

Policies and Measures Robust Green and Intelligent Supply ChainSupply Chain

Management Supply Chain Security Assurance

and Emergency Plan Robust Green and Intelligent Supply Chain134 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Appendix 135

Disclosure of content Disclosure of content

Location/Note Location/Note

Tier 1 Metrics Tier 2 Metrics Tier 3 Metrics Tier 1 Metrics Tier 2 Metrics Tier 3 Metrics

Governance Aspect indicators Financial Information Disclosure Refer to the 2024 Annual Report or other corporate documents

ESG Strategy: Clarifying Key Priorities Information disclosure

system Non-financial Information Robust Governance System for Long-term Stable Operations

Governance Strategy Formulation Transparency 2024 Environmental Social and Governance Report

Complying with Commercial Ethics to Reinforce Internal Control Disclosureof information

Compliance

disclosure Regular Supervision Audit

Quality of information Complying with Commercial Ethics to Reinforce Internal Control

ESG Strategy: Clarifying Key Priorities and Evaluation of All Disclosed

Governance Strategies Governance Strategy Supervision Robust Governance System for Long-term Stable Operations

disclosure Compliance

Information

and Processes Process Complying with Commercial Ethics to Reinforce Internal Control

Compliance Robust Governance System for Long-term Stable Operations

Robust Governance System for Long-term Stable Operations Compliance Management System Complying with Commercial Ethics to Reinforce Internal Control

Governance Strategy Approval

Complying with Commercial Ethics to Reinforce Internal Control Compliance

and Review Process

Compliance

Robust Governance System for Long-term Stable Operations

Party Building Leadership Robust Governance System for Long-term Stable Operations Construction of Compliance Compliance Complying with Commercial Ethics to Reinforce Internal Control

System

Governance Strategy Ownership Responsibilities Robust Governance System for Long-term Stable Operations Compliance

and Organizational Organisation Structure and

Structure Robust Governance System for Long-term Stable OperationsFunctions of the Board of Specific Process of Compliance

Robust Governance System for Long-term Stable Operations

Organisational Directors Supervisory Board and Complying with Commercial Ethics to Reinforce Internal Control Review

composition and Management Compliance and Risk Compliance

functions

Appointment Procedures and Management Robust Governance System for Long-term Stable Operations

Composition of the Board of Risk Identification and Early

Refer to the 2024 Annual Report or other corporate documents Complying with Commercial Ethics to Reinforce Internal Control

Directors Supervisory Board and Warning

Compliance

Management

Compensation Plan for Directors Robust Governance System for Long-term Stable Operations

Refer to the 2024 Annual Report or other corporate documents

and Supervisors Risk management Risk Control and Tracking Complying with Commercial Ethics to Reinforce Internal Control

Compensation Transparency of Board Compliance

Refer to the 2024 Annual Report or other corporate documents

management Compensation Robust Governance System for Long-term Stable Operations

Reasonableness of Management

Refer to the 2024 Annual Report or other corporate documents Risk Reporting and Management Complying with Commercial Ethics to Reinforce Internal Control

Compensation Compliance

Complying with Commercial Ethics to Reinforce Internal Control

Internal control Internal Audit

Compliance

Standardize Integrity Construction System Complying with Commercial Ethics to Reinforce Internal Control

governance Norms Compliance

Integrity in Construction

Effectiveness of Integrity Complying with Commercial Ethics to Reinforce Internal Control

Construction Measures Compliance

Investor Relations Management

Robust Governance System for Long-term Stable Operations

Strategy

Investor Relationship

Investor Communication Robust Governance System for Long-term Stable Operations

Management

Construction of Investor Relations

Robust Governance System for Long-term Stable Operations

Management Department

Investor Relations General Meeting of Shareholders

Refer to the 2024 Annual Report or other corporate documents

Management and Situation

Shareholder Rights

Shareholder Communication

Shareholders’ equity Refer to the 2024 Annual Report or other corporate documents

Situation

Shareholders’ Right to Know and

Robust Governance System for Long-term Stable Operations

Participate in Decision-making

Creditors’ rights and

Credit Status Refer to the 2024 Annual Report or other corporate documents

benefits136 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Appendix 137

HKEX Appendix C2 Environmental Social and Governance Reporting Code Index

Aspect Content Report Content Aspect Content Report Content

Part B: Mandatory Disclosure Requirements Aspect A2: Use of Resources

A statement from the board Statement of the Board of Directors General Disclosure

A2 Policies on the efficient use of resources including energy water and Green and Low-Carbon Operations for a Better Life

Reporting Principles About this report other raw materials.Reporting Boundary About this report Direct and/or indirect energy consumption by type (e.g. electricity gas

Part C: “Comply or explain” Provisions KPI A2.1 or oil) in total (kWh in ’000s) and intensity (e.g. per unit of production Green and Low-Carbon Operations for a Better Life

volume per facility).A. Environmental

Water consumption in total and intensity (e.g. per unit of production

Aspect A1: Emissions KPI A2.2 Green and Low-Carbon Operations for a Better Life

volume per facility).General Disclosure

Description of energy use efficiency target(s) set and steps taken to

Information on: KPI A2.3 Green and Low-Carbon Operations for a Better Life

achieve them.(a) the policies; and

A1 (b) compliance with relevant laws and regulations that have a Green and Low-Carbon Operations for a Better Life Description of whether there is any issue in sourcing water that is fit for

KPI A2.4 Green and Low-Carbon Operations for a Better Life

significant impact on the issuer relating to air and greenhouse purpose water efficiency target(s) set and steps taken to achieve them.gas emissions discharges into water and land and generation of Total packaging material used for finished products (in tonnes) and if Focusing on New Quality Productive Forces to

hazardous and non-hazardous waste. KPI A2.5 applicable with reference to per unit produced. Develop a Circular Economy

KPI A1.1 The types of emissions and respective emissions data. Green and Low-Carbon Operations for a Better Life Aspect A3: The Environment and Natural Resources

KPI A1.2 [Repealed 1 January 2025] Conserving Energy and Reducing Carbon throughout

Total hazardous waste produced (in tonnes) and where appropriate Green and Low-Carbon Operations for a Better Life General Disclosure the Entire Building Process

KPI A1.3

intensity (e.g. per unit of production volume per facility). ESG Metrics A3 Policies on minimising the issuer’s significant impacts on the Address ing Cl imate Change to Protect the

environment and natural resources. Environment

Total non-hazardous waste produced ( in tonnes) and where

KPI A1.4 Need further improvement Green and Low-Carbon Operations for a Better Life

appropriate intensity (e.g. per unit of production volume per facility).Conserving Energy and Reducing Carbon throughout

KPI A1.5 Description of emission target(s) set and steps taken to achieve them. Green and Low-Carbon Operations for a Better Life Description of the significant impacts of activities on the environment

KPI A3.1 the Entire Building Process

and natural resources and the actions taken to manage them.Description of how hazardous and nonhazardous wastes are handled Green and Low-Carbon Operations for a Better Life

KPI A1.6 and a description of reduction target(s) set and steps taken to achieve Green and Low-Carbon Operations for a Better Life

Aspect A4: Climate Change

them.A4 [Repealed 1 January 2025]

KPI A4.1 [Repealed 1 January 2025]

B. Social

Employment and Labour Practices

Aspect B1: Employment

General Disclosure Information on:

(a) the policies; and

B1 Employee Rights and Promoting Their Interests

(b) compliance with relevant laws and regulations that have a

significant impact on the issuer

Total workforce by gender employment type (for example full – or part-

KPI B1.1 Employee Rights and Promoting Their Interests

time) age group and geographical region.KPI B1.2 Employee turnover rate by gender age group and geographical region. Employee Rights and Promoting Their Interests138 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Appendix 139

Aspect Content Report Content Aspect Content Report Content

Aspect B2: Health and Safety Aspect B6: Product Responsibility

General Disclosure

General Disclosure Information on: Information on:

(a) the policies; and (a) the policies; and Upholding Original Beliefs and Mission to Ensure

B2 (b) compliance with relevant laws and regulations that have a Operational Safety and Physical and Mental Health KPI B6 (b) compliance with relevant laws and regulations that have a Trusted Business Operations

significant impact on the issuer relating to providing a safe working significant impact on the issuer relating to health and safety

environment and protecting employees from occupational hazards. advertising labelling and privacy matters relating to products and

services provided and methods of redress.Number and rate of work-related fatalities occurred in each of the past

KPI B2.1 Operational Safety and Physical and Mental Health Percentage of total products sold or shipped subject to recalls for Upholding Original Beliefs and Mission to Ensure

three years including the reporting year. KPI B6.1 safety and health reasons. Trusted Business Operations

Number of products and service related complaints received and how Upholding Original Beliefs and Mission to Ensure

KPI B2.2 Lost days due to work injury. Operational Safety and Physical and Mental Health KPI B6.2 they are dealt with. Trusted Business Operations

Description of occupational health and safety measures adopted and Description of practices relating to observing and protecting intellectual Complying with Commercial Ethics to Reinforce

KPI B2.3 Operational Safety and Physical and Mental Health KPI B6.3

how they are implemented and monitored. property rights. Internal Control Compliance

Upholding Original Beliefs and Mission to Ensure

KPI B6.4 Description of quality assurance process and recall procedures.Aspect B3: Development and Training Trusted Business Operations

Description of consumer data protection and privacy policies and how Complying with Commercial Ethics to Reinforce

Upholding Original Beliefs and Mission to Ensure KPI B6.5

General Disclosure they are implemented and monitored. Internal Control Compliance

Trusted Business Operations

B3 Policies on improving employees’ knowledge and skills for discharging Aspect B7: Anti-corruption

Diversified Training to Promote Staff Development

duties at work. Description of training activities. General Disclosure

Operational Safety and Physical and Mental Health Information on:

The percentage of employees trained by gender and employee Operational Safety and Physical and Mental Health (a) the policies; and Complying with Commercial Ethics to Reinforce

KPI B3.1 B7

category (e.g. senior management middle management). Diversified Training to Promote Staff Development (b) compliance with relevant laws and regulations that have a Internal Control Compliance

significant impact on the issuer relating to bribery extortion fraud

The average training hours completed per employee by gender and and money laundering.KPI B3.2 Diversified Training to Promote Staff Development

employee category. Number of concluded legal cases regarding corrupt practices brought Complying with Commercial Ethics to Reinforce

KPI B7.1 against the issuer or its employees during the reporting period and the

Internal Control Compliance

Aspect B4: Labour Standards outcomes of the cases.Description of preventive measures and whistle-blowing procedures Complying with Commercial Ethics to Reinforce

General Disclosure KPI B7.2 and how they are implemented and monitored. Internal Control Compliance

Information on: Complying with Commercial Ethics to Reinforce

(a) the policies; and KPI B7.3 Description of anti-corruption training provided to directors and staff.B4 Employee Rights and Promoting Their Interests Internal Control Compliance

(b) compliance with relevant laws and regulations that have a Community

significant impact on the issuer relating to preventing child and

forced labour Aspect B8: Community Investment

General Disclosure

Meeting our responsibilities in rural revitalisation

Description of measures t o review employment practices to avoid child Policies on community engagement to understand the needs of the

KPI B4.1 Employee Rights and Promoting Their Interests B8 Engaging in Char i ty In i t ia t i ves to Act as a

and forced labour. communities where the issuer operates and to ensure its activities take Responsible Corporate

into consideration the communities’ interests.KPI B4.2 Description of steps taken to eliminate such practices when discovered. Employee Rights and Promoting Their Interests Meeting our responsibilities in rural revitalisation

Focus areas of contribution (e.g. education environmental concerns

KPI B8.1 Engag ing in Char i ty In i t ia t i ves to Act as a

Operating Practices labour needs health culture sport). Responsible Corporate

Aspect B5: Supply Chain Management Meeting our responsibilities in rural revitalisationResources cont r ibuted (e .g . money or t ime) to the focus

KPI B8.2 Engag ing in Char i ty In i t ia t i ves to Act as a

area.General Disclosure Upholding Original Beliefs and Mission to Ensure Responsible Corporate

B5 Policies on managing environmental and social risks of the supply Trusted Business Operations Part D: Climate-related Disclosures

chain. Robust Green and Intelligent Supply Chain The governance body(s) responsible for oversight of climate-related Address ing Cl imate Change to Protect the

(I) Governance

risks and opportunities Environment

KPI B5.1 Number of suppliers by geographical region. Robust Green and Intelligent Supply Chain Address ing Cl imate Change to Protect the

(II) Strategy Climate-related risks and opportunities.Description of practices relating to engaging suppliers number of Upholding Original Beliefs and Mission to Ensure Environment

KPI B5.2 suppliers where the practices are being implemented and how they are Trusted Business Operations The processes and related policies it uses to identify assess prioritise Address ing Cl imate Change to Protect the (III) Risk Management

implemented and monitored. Robust Green and Intelligent Supply Chain and monitor climate-related risks Environment

Address ing Cl imate Change to Protect the

Description of practices used to identify environmental and social risks Greenhouse gas emissions Environment

KPI B5.3 Robust Green and Intelligent Supply Chain

along the supply chain and how they are implemented and monitored. Green and Low-Carbon Operations for a Better Life

(IV) Metrics and Targets Address ing Cl imate Change to Protect the

Description of practices used to promote environmentally preferable Robust Green and Intelligent Supply Chain Climate-related transition risks Environment

KPI B5.4 products and services when selecting suppliers and how they are Focusing on New Quality Productive Forces to Address ing Cl imate Change to Protect the

implemented and monitored. Develop a Circular Economy Climate-related physical risks Environment140 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Appendix 141

GRI Standards Index

GRI Standard Disclosure Location/Note GRI Standard Disclosure Location/Note

GRI 1: Foundation 2021 Strategy policies and practices

Report foundation including GRI content index and instructions for About this report Statement of the Board of Directors

1 Foundation 2021 2-22 Statement on sustainable development strategy

use etc GRI Standards Index ESG Strategy: Clarifying Key Priorities

GRI 2 General Disclosures 2021 Statement of the Board of Directors

ESG Strategy: Clarifying Key Priorities

The organization and its reporting practices

2-23 Policy commitments Complying with Commercial Ethics to Reinforce

2-1 Organizational details About this report Internal Control Compliance

2-2 Entities included in the organization’s sustainability reporting About this report Employee Rights and Promoting Their Interests

2-3 Reporting period frequency and contact point About this report Statement of the Board of Directors

ESG Strategy: Clarifying Key Priorities

2-4 Restatements of information No relevant incidents during the reporting period.

Complying with Commercial Ethics to Reinforce

2-5 External assurance Need further improvement 2-24 Embedding policy commitments Internal Control Compliance

Activities and workers Upholding Original Beliefs and Mission to Ensure

Trusted Business Operations

2-6 Activities value chain and other business relationships Company Overview

ESG Strategy: Clarifying Key Priorities

Employee Rights and Promoting Their Interests

Complying with Commercial Ethics to Reinforce

2-7 Employees Diversified Training to Promote Staff Development

2-25 Processes to remediate negative impacts Internal Control Compliance

Operational Safety and Physical and Mental Health Upholding Original Beliefs and Mission to Ensure

2-8 Workers who are not employees Operational Safety and Physical and Mental Health Trusted Business Operations

Governance ESG Strategy: Clarifying Key Priorities

Robust Governance System for Long-term Stable 2-26 Mechanisms for seeking advice and raising concerns Upholding Original Beliefs and Mission to Ensure

2-9 Governance structure and composition

Operations Trusted Business Operations

Robust Governance System for Long-term Stable

2-10 Nomination and selection of the highest governance body Refer to the 2024 Annual Report.

Operations

2-11 Chair of the highest governance body Refer to the 2024 Annual Report. Upholding Original Beliefs and Mission to Ensure

Statement of the Board of Directors 2-27 Compliance with laws and regulations Trusted Business Operations

Role of the highest governance body in overseeing the management

2-12 Robust Governance System for Long-term Stable Employee Rights and Promoting Their Interests

of impacts

Operations Green and Low-Carbon Operations for a Better

Life

2-13 Delegation of responsibility for managing impacts Refer to the 2024 Annual Report.

Setting the Industry Benchmark for High-quality

Statement of the Board of Directors 2-28 Membership associations

Development

2-14 Role of the highest governance body in sustainability reporting Robust Governance System for Long-term Stable

Operations Stakeholder engagement

2-15 Conflicts of interest Refer to the 2024 Annual Report. 2-29 Approach to stakeholder engagement ESG Strategy: Clarifying Key Priorities

2-30 Collective bargaining agreements Employee Rights and Promoting Their Interests

2-16 Communication of critical concerns ESG Strategy: Clarifying Key Priorities

GRI 3: Material Topics 2021

Statement of the Board of Directors

Robust Governance System for Long-term Stable 3-1 Process to determine material topics ESG Strategy: Clarifying Key Priorities

2-17 Collective knowledge of the highest governance body

Operations 3-2 List of material topics ESG Strategy: Clarifying Key Priorities

ESG Strategy: Clarifying Key Priorities 3-3 Management of material topics ESG Strategy: Clarifying Key Priorities

2-18 Evaluation of the performance of the highest governance body Refer to the 2024 Annual Report. GRI 201: Economic Performance 2016

2-19 Remuneration policies Refer to the 2024 Annual Report. Key Sustainability Performance Metrics

201-1 Direct economic value generated and distributed

2-20 Process to determine remuneration Refer to the 2024 Annual Report. Refer to the 2024 Annual Report.

2-21 Annual total compensation ratio Refer to the 2024 Annual Report. Financial implications and other risks and opportunities due to Addressing Climate Change to Protect the 201-2

climate change Environment

201-3 Defined benefit plan obligations and other retirement plans Employee Rights and Promoting Their Interests

201-4 Financial assistance received from government Refer to the 2024 Annual Report.142 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Appendix 143

GRI Standard Disclosure Location/Note GRI Standard Disclosure Location/Note

GRI 202: Market Presence 2016 GRI 303: Water and Effluents 2018

Ratios of standard entry level wage by gender compared to local Conserving Energy and Reducing Carbon

202-1 Employee Rights and Promoting Their Interests

minimum wage throughout the Entire Building Process303-1 Interactions with water as a shared resource

Green and Low-Carbon Operations for a Better

202-2 Proportion of senior management hired from the local community Need further improvement Life

GRI 203: Indirect Economic Impacts 2016 Conserving Energy and Reducing Carbon

Meeting our responsibilities in rural revitalisation throughout the Entire Building Process303-2 Management of water discharge – related impacts

Green and Low-Carbon Operations for a Better

With a Dual Focus Co-Creating a New

203-1 Infrastructure investments and services supported Life

Development Blueprint

Sailing with Momentum: A Decade of Excellence Green and Low-Carbon Operations for a Better 303-3 Water withdrawal

Life

Meeting our responsibilities in rural revitalisation

303-4 Water discharge Need further improvement

With a Dual Focus Co-Creating a New

203-2 Significant indirect economic impacts

Development Blueprint 303-5 Water consumption Need further improvement

Sailing with Momentum: A Decade of Excellence GRI 304: Biodiversity 2016

GRI 204: Procurement Practices 2016 Conserving Energy and Reducing Carbon

throughout the Entire Building Process

204-1 Proportion of spending on local suppliers Need further improvement Operational sites owned leased managed in or adjacent to Addressing Climate Change to Protect the

304-1 protected areas and areas of high biodiversity value outside

GRI 205: Anti-corruption 2016 Environmentprotected areas

Green and Low-Carbon Operations for a Better

205-1 Operations assessed for risks related to corruption Need further improvement Life

Communication and training about anticorruption policies and Complying with Commercial Ethics to Reinforce

205-2 Conserving Energy and Reducing Carbon

procedures Internal Control Compliance throughout the Entire Building Process

205-3 Confirmed incidents of corruption and actions taken No relevant incidents during the reporting period. Significant impacts of activities products and services on Addressing Climate Change to Protect the 304-2

biodiversity Environment

GRI 206: Anti-competitive Behavior 2016 Green and Low-Carbon Operations for a Better

Legal actions for anti-competitive behavior anti-trust and monopoly Complying with Commercial Ethics to Reinforce Life

practices Internal Control Compliance Green and Low-Carbon Operations for a Better 304-3 Habitats protected or restored

Life

GRI 207: Tax 2019

IUCN Red List species and national conservation list species with

207-1 Approach to tax Refer to the 2024 Annual Report. 304-4 No relevant incidents during the reporting period.habitats in areas affected by operations

207-2 Tax governance control and risk management Refer to the 2024 Annual Report. GRI 305: Emissions 2016

Stakeholder engagement and management of concerns related to

207-3 ESG Strategy: Clarifying Key Priorities Green and Low-Carbon Operations for a Better

tax 305-1 Direct (Scope 1) GHG emissions Life

207-4 Country-by-country reporting Refer to the 2024 Annual Report. Green and Low-Carbon Operations for a Better 305-2 Energy indirect (Scope 2) GHG emissions

Life

GRI 301: Materials 2016

305-3 Other indirect (Scope 3) GHG emissions Need further improvement

Focusing on New Quality Productive Forces to

301-1 Materials used by weight or volume

Develop a Circular Economy Green and Low-Carbon Operations for a Better 305-4 GHG emissions intensity

Life

Focusing on New Quality Productive Forces to

301-2 Recycled input materials used 305-5 Reduction of GHG emissions Need further improvement

Develop a Circular Economy

305-6 Emissions of ozone-depleting substances (ODS) Need further improvement

Focusing on New Quality Productive Forces to

301-3 Reclaimed products and their packaging materials Nitrogen oxides (NOx) sulfur oxides (SOx) and other significant air

Develop a Circular Economy 305-7 Need further improvementemissions

GRI 302: Energy 2016 GRI 306: Waste 2020

Green and Low-Carbon Operations for a Better

302-1 Energy consumption within the organization Green and Low-Carbon Operations for a Better

Life 306-1 Waste generation and significant waste related impacts Life

302-2 Energy consumption outside of the organization Need further improvement Green and Low-Carbon Operations for a Better 306-2 Management of significant waste related impacts

Life

Green and Low-Carbon Operations for a Better

302-3 Energy intensity

Life 306-3 Waste generated Need further improvement

Conserving Energy and Reducing Carbon 306-4 Waste diverted from disposal Need further improvement

throughout the Entire Building Process 306-5 Waste directed to disposal Need further improvement

302-4 Reduction of energy consumption

Green and Low-Carbon Operations for a Better GRI 308: Supplier Environmental Assessment 2016

Life 308-1 New suppliers that were screened using environmental criteria Robust Green and Intelligent Supply Chain

302-5 Reductions in energy requirements of products and services Need further improvement 308-2 New suppliers that were screened using environmental criteria No relevant incidents during the reporting period.144 China Tourism Group Duty Free Corporation Limited * 2024 Environmental Social and Governance Report Appendix 145

GRI Standard Disclosure Location/Note GRI Standard Disclosure Location/Note

GRI 401: Employment 2016 GRI 410: Security Practices 2016

401-1 New employee hires and employee turnover Employee Rights and Promoting Their Interests 410-1 Security personnel trained in human rights policies or procedures Not applicable.

Benefits provided to full-time employees that are not provided to

401-2 Employee Rights and Promoting Their Interests GRI 411: Rights of Indigenous Peoples 2016

temporary or part-time employees

411-1 Incidents of violations involving rights of indigenous peoples No relevant incidents during the reporting period.

401-3 Parental leave Employee Rights and Promoting Their Interests

GRI 413: Local Communities 2016

GRI 402: Labor/Management Relations 2016

402-1 Minimum notice periods regarding operational changes Need further improvement Meeting our responsibilities in rural revitalisation

Engaging in Charity Initiatives to Act as a

GRI 403: Occupational Health and Safety 2018 Operations with local community engagement impact assessments

413-1 Responsible Corporate

403-1 Occupational health and safety management system Operational Safety and Physical and Mental Health and development programs With a Dual Focus Co-Creating a New

403-2 Hazard identification risk assessment and incident investigation Operational Safety and Physical and Mental Health Development Blueprint

403-3 Occupational health services Operational Safety and Physical and Mental Health Operations with significant actual and potential negative impacts on

413-2 No relevant incidents during the reporting period.

Worker participation consultation and communication on local communities

403-4 Operational Safety and Physical and Mental Health

occupational health and safety

GRI 414: Supplier Social Assessment 2016

403-5 Worker training on occupational health and safety Operational Safety and Physical and Mental Health

414-1 New suppliers that were screened using social criteria Robust Green and Intelligent Supply Chain

Employee Rights and Promoting Their Interests

403-6 Promotion of worker health

Operational Safety and Physical and Mental Health 414-2 Negative social impacts in the supply chain and actions taken No relevant incidents during the reporting period.Prevention and mitigation of occupational health and safety impacts GRI 415: Public Policy 2016

403-7 Operational Safety and Physical and Mental Health

directly linked by business relationships 415-1 Political contributions Not applicable.Workers covered by an occupational health and safety management

403-8 Operational Safety and Physical and Mental Health GRI 416: Customer Health and Safety 2016

system

Assessment of the health and safety impacts of product and service Upholding Original Beliefs and Mission to Ensure

403-9 Work-related injuries Operational Safety and Physical and Mental Health 416-1

categories Trusted Business Operations

403-10 Work-related ill health Operational Safety and Physical and Mental Health

Incidents of non-compliance concerning the health and safety

GRI 404: Training and Education 2016 416-2 No relevant incidents during the reporting period.impacts of products and services

404-1 Average hours of training per year per employee Diversified Training to Promote Staff Development

GRI 417: Marketing and Labeling 2016

Programs for upgrading employee skills and transition assistance

404-2 Diversified Training to Promote Staff Development Upholding Original Beliefs and Mission to Ensure

programs 417-1 Requirements for product and service information and labeling

Trusted Business Operations

Percentage of employees receiving regular performance and career

404-3 Diversified Training to Promote Staff Development

development reviews Incidents of non-compliance concerning product and service 417-2 No relevant incidents during the reporting period.information and labeling

GRI 405: Diversity and Equal Opportunity 2016

Robust Governance System for Long-term Stable 417-3 Incidents of non-compliance concerning marketing communications No relevant incidents during the reporting period.

405-1 Diversity of governance bodies and employees Operations GRI 418: Customer Privacy 2016

Employee Rights and Promoting Their Interests

Substantiated complaints concerning breaches of customer privacy

405-2 Ratio of basic salary and remuneration of women to men Need further improvement 418-1 No relevant incidents during the reporting period.and losses of customer data

GRI 406: Non-discrimination 2016

406-1 Incidents of discrimination and corrective actions taken No relevant incidents during the reporting period.

GRI 407: Freedom of Association and Collective Bargaining 2016

Operations and suppliers in which the right to freedom of association

407-1 No relevant incidents during the reporting period.

and collective bargaining may be at risk

GRI 408: Child Labor 2016

Operations and suppliers at significant risk for incidents of child

408-1 No relevant incidents during the reporting period.

labor

GRI 409: Forced or Compulsory Labor 2016

Operations and suppliers at significant risk for incidents of forced or

409-1 No relevant incidents during the reporting period.

compulsory labor