01 2024 Environmental Social and Governance Report About the Report 02

About the Report

The Report is the fourth environmental social and governance report (hereinafter referred to as the “ESG Report” or the “Report”)

of Tianshan Material Co. Ltd. (hereinafter referred to as “Tianshan Material” the “Company” or “we”). The Report provides an

update on the Company’s sustainability efforts in 2024. In the Report we hope to deliver the Company’s philosophy initiatives

and performance on environmental social and governance issues to enhance understanding and communication among our

stakeholders.Scope of the Report Principles and BasisUnless otherwise specified the Report discloses information and data covering the Company’s environmental social and In the process of developing the Report we mainly refer to the “Self-Regulatory Guidelines No. 17 for Companies Listed ongovernance practices and achievements for the period from January 1 2024 to December 31 2024 (hereinafter referred to as Shenzhen Stock Exchange - Sustainability Report (For Trial Implementation)” “Reference of ESG Indicators System for ESG“the year” the “reporting period” or 2024). Certain events mentioned in this Report whether before or after the aforementioned Reports of Listed Companies Controlled by Central Enterprises” the “GRI Sustainability Reporting Standards” (GRI Standards)

period are included for the sake of comprehensiveness of context and detail in this Report. The Report defines the scope of of the Global Sustainability Standards Board (GSSB) and the United Nations Sustainable Development Goals (SDGs) for 2030.the organization based on the principle of importance. Unless otherwise stated the materials covered in the Report are from

Tianshan Material and its subsidiaries.Data Description Review and Approval

The Report is actual feedback on Tianshan Material’s environmental social responsibility and corporate governance practices The Report was confirmed by the Management and the Board’s ESG Committee and approved by the Board of the Company on

with all the information and data derived from the Company’s official documents statistical reports or the summary and statistics March 25 2025.of environmental social and governance practices of its subsidiaries. Unless otherwise specified the monetary amounts

mentioned in this Report are measured in RMB.Publication of the Report Contact Information

The Report is published in English and Chinese respectively. In case of discrepancies between the Chinese version and the If you have any comments or suggestions about the Report please feel free to contact us through the following ways:

English translation the Chinese version shall prevail. The Report is issued in both hard copy and electronic form and the

electronic version of the Report is available on the official website of Tianshan Material Co. Ltd. (http://www.sinoma-tianshan. Name: Ye Hong

cn/) Shenzhen Stock Exchange (http://www.szse.cn) and Cninfo (www.cninfo.com.cn). Address: China National Building Material No. 70 Expo Hall Road Pudong New Area Shanghai

Tel: 021-68989175

E-mail: tsgfyehong@126.com03 2024 Environmental Social and Governance Report Glossary 04

Glossary

In the Report unless the context otherwise specifies the following terms shall hereinafter be interpreted as follows:

No. Term Definition No. Term Definition

1 CNBMG China National Building Material Group Co. Ltd. 19 Huadong Material Huadong Materials Co. Ltd.

2 CNBM China National Building Material Company Limited 20 CUCC Qingzhou China United Cement Qingzhou Corporation

3 Tianshan Material the Company we Tianshan Material Co. Ltd. 21 CUCC Tengzhou China United Cement Tengzhou Corporation

4 Company Charter Articles of Association of Tianshan Material Co. Ltd. 22 Huanghe Tongli Huanghe Tongli Cement Co. Ltd.

5 CUCC China United Cement Corporation 23 Yulong Tongli Zhumadian Yulong Tongli Cement Co. Ltd.

6 Henan Tianshan Henan Tianshan Materials Co. Ltd. 24 Shanya South Hangzhou Shanya South Cement Co. Ltd.

7 South Cement South Cement Co. Ltd. 25 Huaikan South Huzhou Huaikan South Cement Co. Ltd.

8 Zhejiang Cement Zhejiang South Cement Co. Ltd. 26 Jiande South Jiande South Cement Co. Ltd.

9 Jiangxi Cement Jiangxi South Cement Co. Ltd. 27 Nancheng South Jiangxi Nancheng South Cement Co. Ltd.

10 Zhongnan Cement Hunan South Cement Group Co. Ltd 28 Hunan Linli South New Material Hunan Linli South New Material Technology Co. Ltd.

11 Southwest Cement Southwest Cement Co. Ltd. 29 Old Town Southwest Lijiang Old Town Southwest Cement Co. Ltd.

12 Yunnan Cement Yunnan Tianshan Cement Co. Ltd. 30 Sichuan Golden Cement Sichuan Golden Cement Co. Ltd.

13 Guizhou Cement Guizhou Tianshan Cement Co. Ltd. 31 Zambia Industrial Park China National Building Material Zambia Industrial Park

14 Jiahua Special Cement Jiahua Special Cement Co. Ltd. 32 Sinoma Pingxiang Sinoma Pingxiang Cement Co. Ltd.

15 Xinjiang Cement Xinjiang Tianshan Cement Co. Ltd. 33 Luopu Tianshan Luopu Tianshan Cement Co. Ltd.

16 Sinoma Cement Sinoma Cement Ltd. 34 Hunan Jiuhua Hunan Jiuhua South New Material Technology Co. Ltd.

17 Sanshi Material Zhejiang Sanshi South New Material Co. Ltd. 35 Hanshan South Hanshan South Cement Co. Ltd.

18 Huanan Material South New Material Technology Co. Ltd. 36 Aksu Tianshan Aksu Tianshan Duolang Cement Co. Ltd.05 2024 Environmental Social and Governance Report Glossary 06

No. Term Definition No. Term Definition

37 Sichuan Guangyuan Commercial Concrete Sichuan Guangyuan Southwest Commercial Concrete Co. Ltd. 57 China Building Materials Academy China Building Materials Academy Co. Ltd.

38 CUCC Beichuan China United Concrete Beichuan Co. Ltd. 58 CUCC Xintai Xintai China United Cement Taifeng Corporation

39 Tonglu Benteng Construction Materials Tonglu Benteng Construction Materials Products Co. Ltd. 59 Sinoma Hengda Sinoma Hengda Cement Co. Ltd.

40 Sinoma Yunfu Sinoma Tianshan (Yunfu) Cement Co. Ltd. 60 Shaoyang South Shaoyang South Cement Co. Ltd.

41 Dinghua Building Materials Huaping County Dinghua Energy Building Materials Co. Ltd. 61 Shaofeng South Hunan Shaofeng South Cement Co. Ltd.

42 Hefei South Hefei South Cement Co. Ltd. 62 Anren South Hunan Anren South Cement Co. Ltd.

43 Shangchen New Materials Fuzhou Dongxiang Shangchen New Materials Co. Ltd. 63 Dazhou Lisen Dazhou Lisen Cement Co. Ltd.

Bureau of Social Responsibility of the State-owned Assets

44 Hami Tianshan Hami Tianshan Cement Co. Ltd. 64 SASAC Bureau of Social Responsibility Supervision and Administration Commission of the State

Council

45 Jinlei South Hunan Jinlei South Cement Co. Ltd. 65 Securities Times Shenzhen Securities Times Co. Ltd.

46 Midong Tianshan Xinjiang Midong Tianshan Cement Co. Ltd. 66 Shanghai Securities News Shanghai Securities News Co. Ltd.

47 Jiaxing Fengqiao South Concrete Jiaxing Fengqiao South Concrete Co. Ltd. 67 Easy Board/Value Online Shenzhen Value Online Information Technology Co. Ltd.

48 Mengxin Company Mengxin Bayin Gala Co. Ltd. 68 The Directors & Boards A magazine organized by Jiangsu People's Publishing House

49 Guilin South Guilin South Cement Co. Ltd. 69 China Fund A newspaper organized by the Bauhinia Culture Group

50 CUCC Ju County China United Cement Ju County Corporation 70 Panorama Shenzhen Panorama Network Co. Ltd.

51 Guzhang South Hunan Guzhang South Cement Co. Ltd. 71 CLS A media organized by Shanghai United Media Group

52 CUCC Jining China United Cement Jining Corporation 72 New Fortune Magazine Shenzhen New Fortune Magazine Co. Ltd.

53 CUCC Xichuan China United Cement Xichuan Corporation 73 SZSE Shenzhen Stock Exchange

54 Chuzhou Huadong Materials Chuzhou Huadong Materials Co. Ltd. 74 The year the reporting period The period from 1 January 2024 to 31 December 2024

55 CUCC Taishan China United Cement Taishan Corporation

56 CUCC Tai’an China United Cement Tai’an Corporation07 2024 Environmental Social and Governance Report Management’s Message 08

Management’s Message“The year 2024 was a leap year for Tianshan Material’s new journey towards higher quality and green transition. Amidst While pursuing excellence we always bear in mind the care and responsibility we have for each and every one of

a multitude of challenges posed by the national macroeconomic environment such as decelerating growth periodic our employees as we firmly believe that health and safety are the most solid foundations. We have made continuous

product fluctuations and profound adjustments in the real estate industry our three core businesses encountered efforts to optimize our safety production management system and strengthen risk prevention and control measures.unprecedented trials. However in these trying times we intently focused on the “3633 Action Plan” and stood united with Furthermore we have carried out diversified safety education and health promotion activities pursued the goal of zero

everyone who cares for Tianshan Material. We deepened our refined management and tapped into internal potential to accidents and zero occupational diseases so as to ensure the life safety and health of every employee and partner.achieve cost savings and higher efficiency. In addition we fully promoted the in-depth integration of the industrial chain

and digital transformation to inject new vitality and wisdom into our development. In the coming years we will continue to adhere to the concept of sustainable development further integrate the green

development concept into our management system and establish a unique sustainable development model featuring

We are acutely aware that each stride forward must be accompanied by a respectful and gentle approach towards “Tianshan characteristics”. Our goal is to make Tianshan Material a trustworthy basic material manufacturer and service

nature. Therefore we have proactively responded to the national “dual carbon” initiative and embraced green and provider leveraging every strength to build a greener more harmonious and better world. We would like to invite each of

sustainable development as our solemn responsibility. In specific we have not only seamlessly integrated the corporate you to join our journey where every choice we make demonstrates the “goodness” of building materials. Together we will

mission that “materials create a better world” into our corporate strategic blueprint but have also actively practiced the witness the power of harmonious coexistence between man and nature in every creation. Let’s make concerted efforts to

philosophy to “use resources in a natural-favorably way and serve in construction”. Centered around the three pillars create a bright future for all people.of “creating low-carbon sustainable advantages strengthening the high-quality talent base and delivering win-wincooperation benefits” we have carefully planned and implemented a series of strategic measures. Between 2024 and

2025 we comprehensively upgraded our sustainable development strategy and delineated a clear path and actionable

goals in a bid to paint a vibrant ecological portrait of green building materials in collaboration with our industrial partners

thereby contributing to the enduring sustainability of our planet.Innovation remains the inexhaustible impetus in our quest for global prominence. We have spared no efforts to

overcoming technological barriers striving to serve society with high-quality products. We have also been dedicated

to energy saving carbon reduction and environmental protection. Through technological transformation and industrial

upgrading we have been promoting the high-end intelligent and green transition of the building materials industry.This year many of our subsidiaries received low-carbon product certification and green factories and mines emerged

as industry benchmarks. These milestones not only cement our role as pioneers in the green transition of the building

materials industry but also exemplify our actionable vision for harmonious coexistence between man and nature.”09 2024 Environmental Social and Governance Report Buiilldiing a New Blueprint for Our Vision 10构筑企业愿景新蓝图

天山材料坚持践行可持续发展理念，不断完善 ESG 管理体系，致力于推动企业与环境、社会和谐共融，提升公司 ESG 管理水平与表现，创造可持续的企业价值。本年度，公司高度重视与各利益相关方的沟通与交流，持续搭建具有“天山特色”的可持续发展战略模型，努力探索生态效益和经济社会效益的平衡之道。11 2024 Environmental Social and Governance Report Building a New Blueprint for Our Vision 12Overview of the Company

Founded in November 1998 and listed on the Shenzhen Stock Exchange (SZSE) in 1999 (stock code: 000877) Tianshan

Material Co. Ltd. leads the country in clinker and commercial concrete production capacity and is a national leader in aggregate

production. The scope of business covers manufacturing and sales of cement clinker commercial concrete and aggregates.Xinjiang Cement

By the end of the reporting period

CUCC

Total assets Legal entities Covering

288074 491 25 Henan Tianshan provinces autonomous regions Jiahua Special

million and municipalities directly under the Cement

central government. Southwest Cement Zhejiang Cement Huadong Material

South Cement

Huanan Material

Guizhou Cement Sanshi Material Jiangxi Cement

Yunnan Cement Zhongnan Cement

Clinker production Aggregate production Commercial concrete Employees

capacity capacity capacity

300 230 360 55 Sinoma Cement

million tonnes million tonnes million cubic meters thousand Overseas: Zambia Nigeria Mongolia13 2024 Environmental Social and Governance Report Building a New Blueprint for Our Vision 14

Sustainable Development Strategy Model ESG Governance Structure

Guided by the mission of “materials create a better world” and the philosophy of “excellence in operation refinement in To align with the Company’s strategies and sustainability needs as well as to achieve higher quality and efficiency inmanagement and robustness in organization” the Company has formed a sustainable development strategy system. This year management the Company has established a sound “governance-management-execution” ESG governance structure

with deep collaboration between the Board’s Environmental Social and Governance Committee (ESG Committee) and various formulated work rules clarified job duties and formed a long-term ESG work mechanism to further promote the win-win

functional departments the optimization of digital tools and the refinement of strategic actions and goals the Company has development with stakeholders achieve the mid- and long-term strategic goals of the Company and promote sustainable

further advanced the sustainability strategy. To support the implementation of this strategy the Company organized a range of development.multi-layer and multi-form meetings including internal alignment sessions management awareness training and meetings with

the general manager of subsidiaries. These efforts are aimed at building consensus and driving shared development. Besides Tianshan Material has formulated and implemented the “Rules of the ESG Committee of the Board” and “Management Rules forthe Company has made comprehensive adjustments to the strategic roadmap and engaged in detailed discussion with key the ESG Working Group” which defines the Company’s ESG governance structure and promotes the implementation of ESG

departments to set the action plans and goals for 2024-2025 laying a solid foundation for achieving sustainable development. management issues.ESG Governance Structure

Strategic planning of Tianshan Material’s sustainable development

The Board

The Board is the highest responsible body for the management and public disclosure of the Company’s ESG issues and

reviews and approves the Company’s ESG strategies and objectives as well as major issues relating to social responsibilities.ESG Committee

The Board has set up an Environmental ● Review the Company’s ESG and climate change-related policies and

S o c i a l a n d G o v e r n a n c e ( E S G ) strategies to ensure that they comply with laws regulations and standards

Committee (hereinafter referred to as ● Review the Company’s ESG and climate change-related management and

“ESG Committee”) which comprises internal supervision system and make recommendations to the Board on its

three directors: Zhao Xinjun Shen Jun appropriateness and effectiveness

and Li Chen and the Chairman Zhao

●

X injun acts as the head of the ESG Assess and sort out the ESG and climate change-related risks and

Committee. The ESG Committee is mainly opportunities of the Company and make recommendations to the Board

responsible for formulating the Company’s ● Review and supervise the goals and implementation of the Company’s

ESG management policies objectives ESG and climate change-related work assess the work and make

strategies and framework identifying recommendations to the Board

ESG development trends and assessing ● Assess how the Company communicates with stakeholders on ESG matters

ESG risks and opportunities faced by the and ensure that appropriate communication policies and channels are in

Three Key Goals for Our Sustainable Development Company and supervising and guiding the place to effectively engage the Company’s relationships with stakeholders

ESG Working Group.● Other job duties delegated by the Company’s Board

Creating low-carbon Strengthening the Delivering win-win

sustainable advantages high-quality talent cooperation benefits

base: ESG Working GroupThe focus of “creating low-carbon The focus of “strengthening The focus of “delivering win-winsustainable advantages” aims the high-quality talent base” cooperation benefits” aims to build The ESG Working Group as the main ● Organize coordinate and supervise the implementation and execution of ESG

to improve Tianshan Company’s aims to promote the common a green industrial chain carry coordinat ing and execut ive body is and climate change-related work by the subsidiaries of the Companyauthorized by the ESG Committee to ●

environmental performance. development of the Company out sustainable procurement and Organize and carry out the ESG work of the Company in accordance with the assist the ESG Committee in guiding and overall ESG and climate change-related management goals strategies and

By applying new energies and employees. While striving meet diversified customer needs. supervising the governance function of the guidelines approved by the ESG Committee formulate relevant systems and

developing green products to become a leading player Tianshan Material seeks to add Company in implementing ESG issues. The processes and report to the ESG Committee for review and approval

and expanding recycling the within the industry the Company value to the society and enhance ESG Working Group is mainly responsible ● Report regularly to the ESG Committee on ESG and climate change-

Company is committed to also provides employees with our social influence. Besides we for formulating ESG-related policies and action plans in line with the Company’s related management (including but not limited to assessment ranking and

achieving green transition to a healthy safe and comfortable improve our business conduct strategy and ESG objectives; managing management of significant ESG related issues)

address climate issues and workplace to improve employees’ enhance the Company’s modern ESG-related risks and issues in Company’s ● Communicate with stakeholders on ESG and climate change-related matters

reduce ecological impacts. well-being and sense of governance capability and daily operations; communicating with the and present feedback concerning important ESG and climate change-related

belonging. effectively implement sustainable Company’s subsidiaries and coordinating matters or the Company’s business to the ESG Committee management or relevant departments

development management and promoting the implementation of ESG-related issues; and collecting collating and ● Other duties and responsibilities delegated by the Board or the ESG

so as to fulfill corporate social compiling the annual ESG report and other Committee

responsibilities. ESG-related issues.15 2024 Environmental Social and Governance Report Building a New Blueprint for Our Vision 16

ESG Performance Highlights

Creating low-carbon sustainable advantages

160 398 431 99.43 kgce/t 92.18% comprehensive energy consumption per unit of recycled water utilization rate of clinker-producing

products certified as green products or companies passed the factories passed the environmental

low-carbon products quality system certification management system certification clinker products down 6.94 kgce/t of standard coal cement companies

compared with last year

431 54 61 100% 0.2396 kg

factories passed the occupational national green factories national green demonstration reusing rate of the treated wastewater for concrete nitric oxide (NOx) emissions per unit of clinker

health and safety management system factories of ready mixed concrete business down 7.86% year on yearcertification

38 103 21 0.0201 kg 0.0194 kg

national green mines provincial green mines smart mines sulfur dioxide (SO2) emissions per unit of clinker particle emissions per unit of clinker

down 1.49% year on year down 23.24% year on year

6312300 m2 Total investment of RMB

of operating area where biodiversity 2034584.2 thousand 40868.76 tonnes 100%

impact assessments have been carried in ecological and environmental of total emission of nitrogen oxides (NOx) overall pass rate of cement products

out and biodiversity management plans protection up 22.12% year on year

have been developed

146604719.03 tonnes 1685.21 tonnes/RMB 1 million 19309556.77 tce 4.00%

of total greenhouse gas of greenhouse gas emissions intensity of standard coal equivalent of total energy consumption thermal substitution rate (TSR) from alternative fuels

11.99% (including total natural gas consumption total power emissions down year on year consumption total renewable energy consumption and

total non-renewable energy consumption)

Strengthening the high-quality talent base Delivering win-win cooperation benefits

Training hours of 685.9 thousand hours 126 thousand hours 410 thousand hours 5220 copies 70404 copies 4452

employees reached

1222 for safety and environmental for management for skills and businessof “Commitment to Integrity and of “Integrity Responsibility anti-corruption (anti-commercialthousand protection Self-discipline of Management” Agreement” were signed bribery) training sessions

were signed

Total expenses for employee training Anti-corruption training with 100% signing rate 100% of the key employeeand development reached RMB 164237 attendances of the “Supplier Integrity participated in the anti-corruption (anti-

42702 thousand up 41.5% year on year by employees and directors Commitment” commercial bribery) training sessions

863374 100% Total investment of RMB RMB 32 million of donations 3319 hours

thousand

employee attendances in occupational AI alert comprehensive 42855.3 to the Shanjian Public Welfare of volunteer activities

health and safety training sessions response rate in public welfare (including Special Fund of the China

material donations) Volunteer Service Foundation17 2024 Environmental Social and Governance Report Building a New Blueprint for Our Vision 18

ESG Awards and Recognitions Investor Communication

In 2024

The Company regards investors as the basis for capital market

development. Respecting protecting and rewarding investors and

treating all investors equally are important principles of corporate

governance. In the year the Company improved and strictly

implemented the “Investor Relations Management Policy” “InvestorJanuary 2024 March 2024 June 2024 Rights and Interests Protection Policy” “Information Disclosure Company hosted 2 annualManagement Measures” and “Management Policy for InternalEasy Board/Value Online China Association for Information and Insiders” so as to disclose the Company’s material performance presentations

Public Companies Securities Times information continue to open up and optimize investor communication

channels and pay attention to and respond to the voices of investors.

2023 ESG Best Practice Best Practices of Investor Relations The 15th Tianma Award for

Award for Listed Companies Management for Listed Companies Investor Relations of Listed Communication with investors is crucial for the sustained growth and

in China Companies in China prosperity of the Company. The Company has set up a seasoned

and professional team for investor relations management which

has extensive experience and deep expertise in investor relations

management financial management and legal affairs as well as good Company organized 82 targeted

communication skills. The Company formulates the annual work plan investor research events

September 2024 July 2024 June 2024 on a yearly basis specifying the objectives and key tasks for investor relations management and updates the work plan every six months to

adapt to market changes and the Company’s development.Panorama China Fund The Directors & Boards

In 2024 the Company was dedicated to expanding and optimizing“The 5th Panoramic Investor 2024 Yinghua Awards for Listed “Special Contribution Award the communication channels and methods with stakeholders so asRelations Gold Award” - Company in China - A Share for Corporate Governance” at to accelerate the development of a digital and intelligent investor

“Outstanding IR Team” Value Award the 19th Golden Round Table relations management system. The Company continues to operate the Received a total of investor

Award for Boards of Directors “Investor Relations” module on the official website and the “Tianshan 365of Listed Companies in China Company Investor Relations” official account and mini-program to visits from research institutions

enable investors to stay informed about the latest developments

of the Company. In addition the Company leverages a variety of

channels to engage with investors including the SZSE interactive

platform performance presentations regular reports on-site research

teleconferences web conferences third-party roadshow platforms

September 2024 November 2024 November 2024 online interactive platforms IR mailboxes and investor relations

telephone lines. We also regularly carry out themed activities focusing

Panorama Bureau of Social Responsibility China Association for on the Company’s business development green and low-carbon Achieved a response

of the State-owned Assets Public Companies transition and dissemination of investment value. Through all of these 100%

Supervision and Administration efforts we aim to communicate extensively with investors and respond rate to investor queries on the SZSE“The 5th Panoramic Investor Commission of the State Council Recognized as one of the positively to the many concerns we have learnt about. interactive platformRelations Gold Award” - “2024 Best Practice Cases“Outstanding ESG Value Selected as one of the best practice in Sustainable Development In 2024 the Company updated the “Annual Investor CommunicationPromotion Award” cases of fulfillment of responsibility in the of Listed Companies” by the Plan” and actively put it into practice. Throughout the year the

“Common Wealth” chapter of the “Blue China Association for Public Company hosted two annual performance presentations one on-siteBook on Social Responsibility of Central Companies research event on special cement production for special analystsState-owned Enterprises (2024)” one collective reception day event for listed company investors and

one large-scale investor education activity co-hosted with the China reverse roadshow sessions

Securities Investor Service Center and the Shanghai Securities News 19

titled “Get to Know My Listed Company” which generated a total of

2.13 million online views. Besides the Company organized 82 targeted

January 2025 December 2024 November 2024 investor research events 19 reverse roadshow sessions and received

a total of 365 investor visits from research institutions involving 669

individuals. The Company issued seven investor relations activity

New Fortune Shanghai Securities News Cailian Press reports participated in 32 strategic and peak meetings achieved Large-scale investor education activity

a 100% response rate to investor queries on the SZSE interactive “Get to Know My Listed Company”“2024 New Fortune Best 2024 Shanghai Securities 2024 Cailian Press Zhiyuan platform and handled over 200 investor inquiry calls. In the year wePublic Companies” - “ESG News Golden Quality Award - Award – Pioneer in Corporate strengthened communication with investors and organized investor million online viewsBest Practices” ESG Award Governance exchange to guarantee the smooth communication between us and 2.13

our investors.19 2024 Environmental Social and Governance Report Building a New Blueprint for Our Vision 20

Materiality Assessment Stakeholder engagement

The Company maintains regular communication with stakeholders via various channels to understand and promptly respond to

Materiality analysis their needs using their feedback and concerns as motivation for continuous improvement of our ESG management. In the year

the key issues of concern of main stakeholders are as follows:

Under the supervision of the Board’s ESG Committee Tianshan Material regularly conducts ESG materiality assessment. The

process is carried out through the following steps and is confirmed by the Board of Directors.Stakeholder Focused Topics Communication Method

Tianshan Material materiality assessment process

● Company strategy and planning

● Company Charter and important policies

● Shareholders’ Meeting

● Important organizational restructuring and

ESG issues relevant to the Company are identified based on ESG disclosure ● Board Meetingpersonnel arrangement

guidelines and ESG disclosure standards from regulatory authorities ESG issues ● Board special committee meetings

● Major investment and financing matters

of concern to the industry and the capital market and recommendations from both Directors ● Independent directors special meetingIdentification of ● internal and external experts. Quality of operations ●

Material Issues Board Consultation● Compliance

● Quality assurance of products and services

The Company engages with internal and external stakeholders through various

communication channels to gather and analyze their opinions on the Company’s

● Optimization upgrading and green transition

ESG management. Stakeholder of production and operation ● Management Meeting

Engagement ● Company governance reform and innovation ● Work reporting and communication

● Compliance of employee occupational safety ● Governance and integrity training and

Company Management and health management etc.The 2024 materiality matrix and ranking of issues are developed based on the ● Anti-corruption and integrity promotion

principles of materiality assessment the materiality of each ESG issue and

Development of the communication with stakeholders.Materiality Matrix

● Safety training and practice

● Employee occupational health and safety

● Career development seminars

● Employee career development and training

The confirmed materiality matrix is presented to the Board of Directors ● Support for employees in difficulty● Labor regulations

for review and approval and then disclosed accordingly. Employees ● Employee representative meetings and ● HR Management

seminars etc.Approval of Material

Issues

Compliance ● ● Reporting on work and regular

communication with regulators

● Quality assurance of products and services

● Participation in conferences and major

● Greenhouse gas emission and management

events

●

Government and Water use and management ● Environmental information disclosure

Regulatory Agencies ● Employee occupational health and safety ● Publishing compliance reports and

● Ecology and natural resource protection accepting supervision21 2024 Environmental Social and Governance Report Building a New Blueprint for Our Vision 22

Stakeholder Focused Topics Communication Method Materiality analysis

● Publication of periodic reports

The Company identifies key issues related to our business that are material from an impact perspective through internal

●

● Quality of operations Holding shareholders’ meeting

performance presentation analyst and external interviews peer benchmarking and expert consultations based on assessments of national policies regulatory

● Green transition presentation roadshow and reverse concerns industry trends and our own development plans.● Compliance roadshow strategy meetings investor

education activities and investor group Tianshan Material analyzes the materiality assessment results and prioritizes the materiality of each issue in the form of a ● Quality assurance of products and services

reception day activities matrix. A total of 20

1 material issues have been identified and the materiality matrix has been formed accordingly which has

● Greenhouse gas emission and management been confirmed by the Board of Directors.● Communication channels such asShareholders/Investors ● Wastewater drainage and management SZSE interactive platform “Investor● Solid waste disposal and management Relations” module on the official● Labor regulations website the “Tianshan Material Investor ESG Materiality assessment results2 Tianshan Material 2024 materiality matrix● Optimization and upgrading Relations” official account and mini-

program investor hotline IR and

High High Moderate Medium Highdirector secretary email

01 Climate response

Climate response 01

●

● Quality assurance of products and services Customer research Energy utilization 06

●

Anti-unfair competition Customer complaint handling and

Medium

● Ecosystem and

callback 17biodiversity protection

● Compliance 02 Innovation

Customers ● Regular disclosure of corporate

Anti-commercial bribery 09

● Anti-corruption and integrity promotion information 03 Circular economy

and anti-corruption

Due diligence 16 Employees05

04 Product and service safety and quality Innovation 02

Environmental Circular

05 Employees compliance economy 03

Supplier management assessment and Waste disposal 10 management

07

●

● Compliance 06 Energy utilization Anti-unfair competition 15 Pollutant 08communication discharge

● Anti-corruption and integrity promotion Supply chain security 11

Contract negotiation and daily meetings 07 Environmental compliance management● Water resources utilization 14

Business suppliers/ ● Quality assurance of products and services 08 Pollutant discharge Stakeholder engagement 13● Regular disclosure of corporate

contractors ● Supply chain management information Equal treatment of SMEs 19

Product and service safety and quality 04

09 Anti-commercial bribery and anti-corruption

Social contribution 20 Data security and 12customer privacy

10 Waste disposal Rural revitalization 18

● Green transition 11 Supply chain security

● Industry communication and seminar

● Sustainable development 12 Data security and customer privacy

● Regular disclosure of corporate

Community/industry ● Anti-unfair competition 13 Stakeholder engagementinformation

associations ● Compliance 14 Water resources utilization

15 Anti-unfair competition

16 Due diligence

● Ecology and natural resource protection

Low

● Optimization and upgrading 17 Ecosystem and biodiversity protection High

● Green transition ● Press interviews Materiality to the Company's development

● Quality assurance of products and services ● Press releases and announcements Moderate

Press

● Solid waste disposal and management 18 Rural revitalization Environmental Social Governance

● Wastewater drainage and management 19 Equal treatment of SMEs

20 Social contribution

●

● Research innovation and investment Research cooperation and

communication

●

Research institutes such Quality assurance of products and services ● Regular disclosure of corporate 1 Tianshan Material is mainly engaged in the traditional construction materials business and our core business includes the production and sale of cement clinker commercial

as universities/research ● Ecology and natural resource protection information concrete and aggregates. We do not conduct scientific research and technology development activities related to life science artificial intelligence or other fields involving science

and technology ethics so the issue of “ethics of science and technology” is not involved.institutes 2 The Company is actively sifting and exploring methodologies for assessing and analyzing the financial materiality of ESG issues to better guide sustainable development

management and information disclosure.Materiality to stakeholders23 2024 Environmental Social and Governance Report Feature: Fulfilling the New Mission on Climate Change 24

五、专题：践行气候变化新使命

公司厚植绿色发展根基，积极响应国家的“双碳”战略目标，主动识别分析影响公司气候变化相关的风险与机遇，并制定气候风险管理办法与应对措施，努力探索生态效益和经济社会效益的平衡之道。为增强透明度与规范性，公司参考气候相关财务信息披露工作组（TCFD）发布的《气候相关财务信息披露工作组建议报告》，披露了公司在气候变化方面的“治理”“战略”“风险与机遇管理”以及“指标与目标”等核心内容。25 2024 Environmental Social and Governance Report Feature: Fulfilling the New Mission on Climate Change 26Advancing Climate Governance Climate Action Strategy

Governance structure Climate change is a significant challenge for human society. At Tianshan Material we continue to refine our strategic framework

to address climate-related risks and actively contribute to the national goals for “Carbon Peaking and Carbon Neutrality”.A solid governance structure and clear management responsibilities are crucial for effective climate change response and Based on regulatory requirements and industry characteristics Tianshan Material identifies and assesses climate risks and

management in enterprises. The Board is the highest responsible body for the management and public disclosure of the opportunities the Company faces. In line with the Company’s strategy and development progress the Company has formulated

Company’s ESG issues including overseeing climate-related risks and opportunities. The Board has set up an Environmental and gradually implemented corresponding measures. Besides the Company requires all subsidiaries to develop short-

Social and Governance (ESG) Committee (hereinafter referred to as “ESG Committee”) which comprises three directors: Zhao medium- and long-term strategies to contribute to positive climate and environmental change.Xinjun Shen Jun and Li Chen who possess diversified expertise and strategic vision and extensive experience in driving the

green transition of the industry and addressing climate change. The ESG Committee is responsible for reviewing the Company’s

ESG and climate change-related policies and strategies examining relevant management and monitoring systems and Climate-related risks and opportunities

assessing the management of risks opportunities and work goal implementation.The ESG Working Group as the main coordinating and executive body is authorized by the ESG Committee to assist the ESG

Committee in the implementation of governance responsibilities and related tasks concerning climate change. Management Taking into account the external environment the Company’s strategic development goals business operations and value

of the Company is responsible for climate change-related tasks including strategic planning management policy formulation chain impacts we analyze the material risks and potential opportunities arising from climate change. Through collaboration

resource allocation target setting and implementation overseeing. The Company has integrated the management of among various departments we identify and assess the potential business and financial impacts of key climate change related

climate change into the duties of various departments including the Technical Management Department and the Safety and risks and opportunities. We also conduct scenario analysis and financial impact assessments based on the current management

Environmental Protection Department. The Technical Management Department is responsible for technological innovation practices.as well as the implementation of emissions reduction plans while the Safety and Environmental Protection Department is

responsible for environmental regulatory compliance and reports to the ESG Committee on a regular basis. We have defined the time horizon of Tianshan Material’s climate change related risks and opportunities across the short

medium and long term aligning closely with the time frame and business direction outlined in the 15th Five-Year Plan providing

strong support for the Company’s sustainable development. Furthermore we have established criteria for classifying the

materiality of the financial impact of climate change risks and opportunities as “high” “medium” or “low” based on the impact of

The Board is the highest responsible body for the management and each risk and opportunity on operating income.public disclosure of the Company’s ESG issues including overseeing

climate-related risks and opportunities.The Board Definitions of Short Medium and Long Term

The ESG Committee is responsible for reviewing the Company’s

ESG and climate change-related policies and strategies examining

relevant management and monitoring systems and assessing the

management of risks opportunities and work goal implementation. Short term Medium term Long term

ESG Committee

Within 1 year after 2 to 5 years after Over 5 years after

the end of the the end of the the end of the

The ESG Working Group as the main coordinating and executive reporting period reporting period reporting period

body is authorized by the ESG Committee to assist the ESG including 1 year including 5 years

Committee in the implementation of governance responsibilities and

ESG Working Group related tasks concerning climate change.(See next page for specific climate change-related risks and opportunities.)

The Company has formulated and implemented the “Rules of the ESG Committee of the Board” and “Management Rules forthe ESG Working Group” which stipulate the composition duties and responsibilities decision-making procedures and rules

of procedure of the ESG Committee at the policy level. The Company holds an ESG Committee meeting at least once a year to

report on matters related to climate change including the achievement of targets and risk management practices.The Company links climate response performance to the compensation of the Company’s management to incentivize them to

actively implement sustainability strategies. These measures are designed to meet stakeholder expectations enhance long-

term competitiveness and reputation of the Company while also optimizing internal management and ensuring regulatory

compliance so as to drive dual achievement of company development and climate-related goals. The Company has signed the

“Responsibility Statement of Annual Operation and Management Target for Regional Companies” with the subsidiaries and the

“Responsibility Statement of Annual Ecological Environmental Protection Target” with the Company’s management persons in

charge of each subsidiary and managers and employees of the subsidiaries and made ESG-related management performance

tied to the KPIs. The signing rate of these responsibility statements was 100%.27 2024 Environmental Social and Governance Report Feature: Fulfilling the New Mission on Climate Change 28

Climate-Related risks

Current Anticipated Current Anticipated

Financial Financial Financial Financial

Type Impact Description Measures to Address Risks Impact Impact Impact Impact Impact Period (Impact on (Impact on Type Period Description Measures to Address Risks (Impact on (Impact on

the Current the Year the Current the Year

Year) Ahead) Year) Ahead)

Transition Risks Increased concerns or

negative feedback from

● Formulate and make continuous improvements to medium- institutional investors and other ● Maintain regular communication with institutional investors

and long-term goals for carbon emissions after in-depth funding providers regarding

research. environmental protection may

and other funding providers and disclose ESG reports Low Low

lead to a tightening of available periodically to address stakeholder concerns.Increased pricing of GHG ● Develop a carbon emissions monitoring program and funds resulting in reduced

emissions leads to increased establish and apply a carbon emissions online monitoring funding for the Company.operating costs (e.g. higher system. Low Low

● Enhance market research and adjust product strategy in a

compliance costs increased

● Set up a Dual-Carbon Management Department and assign

insurance premiums). timely manner. Pay close attention to the demand for low-dedicated personnel to undertake related work. Conduct carbon products and carry out continuous research on

carbon emissions trading-related training to enhance the Low-carbon market trends and innovative low-carbon product solutions.awareness and capabilities of employees responsible for consumer behavior can lead to Tianshan Material's Corporate Research Center collaborates

carbon emissions trading. reduced demand for non-low- with China Building Materials Academy and other relevant Low Low

● Engage with relevant authorities in different regions to gain a carbon products resulting in research institutes to create synergy for innovative low-

deeper understanding of policies and their guidance identify reduced operating income. carbon products. These concerted efforts focus on low

potential risk factors and reduce risks through standardized Medium calcium low energy consumption carbon capture and low Enhanced emission reporting management.term clinker technologies to promote the low carbonization of Short obligations and mandates

●

term on and regulation of existing Take measures to strengthen the accountability of member

cement and its products.products and services lead units including annual work planning and the formulation ● Enhance the penetration of photovoltaic systems in each

to increased operating costs of corresponding policies and management mechanisms to plant explore the potential of photovoltaic power and wind

(e.g. higher compliance costs clarify responsibilities and effectively address incidents and Low Low power and increase the share of green power.increased insurance premiums control costs.● Enhance the R&D and application of water-saving

such as property insurance Fluctuations in market prices

●

and safety production liability Engage third-party agencies to assist the Company in may lead to increases in technologies to reduce water consumption and improve enhancing environmental compliance consultation and production inputs (e.g. energy Medium Mediuminsurance). water efficiency through technological innovation.management. water waste disposal).● Carry out ultra-low emission transformations by adopting

● Impose penalties for environmental violations and continue advanced environmental protection technologies and

to enhance environmental remediation efforts. equipment to reduce pollutant discharge and improve

● Assign the Safety and Environmental Department and the environmental performance.Environmental issue related Legal Compliance Department to monitor all regulatory The limited availability of

litigations may result in fines matters and legal proceedings that may pose significant alternative raw materials and ● Identify alternative raw materials and fuels based on local and judgements which in turn Low Lowrisks to the Company including compliance risk factors alternative fuels in certain conditions taking into account both cost and availability and Low Lowlead to reduced demand and

operating income. related to environmental protection requirements and

regions may lead to increased formulate plans for alternative fuel development.provide updates to management on a regular basis. production costs.Government or other Investment in the R&D of

regulatory agencies introduce Long low-carbon technologies

● Intensify market and technology research to ensure that our

standards requirements and equipment and management R&D is closely aligned with actual needs. Optimize the R&D Low Lowterm

subsidies for green products may lead to increased capital process and improve the efficiency of capital use.or management in the cement expenditures and costs.industry. This in turn urges

real estate developers to Physical Risks

prioritize the use of green

●

building materials when Continuously expand procurement channels enhance

planning new projects. As a inventory management implement dual sourcing and pre-

major producer of cement ● Actively respond to the requirements from stakeholders stock to address supply disruptions and ensure a stable

Medium partners may adjust their across the cement value chain upstream and downstream supply.term procurement criteria in line with

Low Low

regarding climate change such as advancing green product ● Respond promptly to weather risk alerts from China

the new policy and prioritize certification for single-purpose cement and special cement. Increased severity of extreme

cooperation with green cement Meteorological Administration and natural disaster Short weather events can result in producers. A high share of decreased production capacity management agencies and arrange for the shipment Low Low

traditional cement products term higher operating costs and of goods base on the weather conditions. In the event

without a timely transition lower operating income. of extreme weather shipments shall be immediately

to a greener low-carbon suspended and vehicles shall be managed accordingly.product portfolio could lead to ● Establish an internal intelligent production safety

a decrease in demand for the

Company’s products/services management system with certain factories adjusting

resulting in reduced operating production schedules based on flood and rainy seasons

income. and ensuring material and production readiness in advance.Market Policy and Legal

Acute Technical Market29 2024 Environmental Social and Governance Report Feature: Fulfilling the New Mission on Climate Change 30

Current Anticipated

Financial Financial Risk and Opportunity Management

Type Impact Period Description Measures to Address Risks

Impact Impact

(Impact on (Impact on

the Current the Year

Year) Ahead) Climate change scenario analysis

● Appropriately purchase commercial insurance such as

Short Extreme weather may cause catastrophe insurance property insurance and safety

term loss of existing assets.Low Low

production liability insurance to reduce potential property

losses caused by various disasters and accidents. The Company refers to the Shared Socioeconomic Pathways (SSP) from the Intergovernmental Panel on Climate Change (IPCC)

● Respond promptly to flood risk alerts from China and climate change scenarios publicly released by the International Energy Agency (IEA). In addition based on the Company’s

Changes in precipitation Meteorological Administration and natural disaster “Implementation Plan for Reaching Carbon Peaking and Carbon Neutrality” we have selected two applicable scenarios: a low-

Medium patterns and extreme variability management agencies establish an emergency coordination Medium Medium emission scenario and a high-emission scenario to analyze the impacts of critical climate-related physical and transition risks on

term in weather patterns may result mechanism for production and sales establish an internal

in increased operating costs. intelligent production safety management system and our operations.ensure material and production readiness in advance.Climate scenario analysis under physical risks

Optimistic Scenario Pessimistic Scenario

Climate-Related opportunities Scenario Applied RCP2.6/RCP4.5 SSP1 RCP6.0/RCP8.5 SSP3

Climatic Low-Emission scenario: Through effective mitigation High-Emission scenario: Maintaining the status quo

Characteristics measures the greenhouse gas emissions are halved leads to a continuous increase in greenhouse gas

Impact Current Anticipated by 2050. emissions.Type Period Description Measures to Seize Opportunities Financial Financial Impact Impact

Emphasis is placed on the harmonious coexistence of Global governance institutions and leadership are

Under the dual pressure of resource human beings and nature. Cross-regional and cross- relatively weak. Investment in technological R&D has

scarcity and increased cost pressures ● Identify alternative raw materials and fuels Socioeconomic agency cooperation is effective and sustained. Strict decreased. Resource usage intensity has increased. Medium or using alternative raw materials and fuels based on local conditions taking into account Characteristics environmental management rapid technological Environmental policies are not being prioritized with long term not only reduces dependence on limited both cost and availability and formulate future Low Low change improved resource efficiency reduced environmental systems in certain regions severely

natural resources but also helps lower plans for alternative fuel development. difficulties in accessing water and increased water damaged. Water scarcity and safety challenges are

procurement costs for raw materials. safety are witnessed. enhanced by continued population growth.Estimated

● Continue to carry out themed energy-saving Temperature Rise

technical improvements enhance relevant by the End of the <2℃ >4℃

technological R&D and improve production Century

and operation efficiency so as to reduce

Use clean energy to reduce operating operating costs in the long run.Medium or costs and reduced exposure to future ● Promote clean energy and high-efficiency Medium Medium Scenario Source Intergovernmental Panel on Climate Change (IPCC)long term fossil fuel price increases. technologies and continue to improve the

penetration of photovoltaic systems in

factories thereby reducing carbon emissions

by replacing traditional high-carbon energy Climate scenario analysis under transition risks

sources and optimizing energy efficiency.● Carry out R&D of low-carbon cement Scenario Applied

NZE STEPS

Net Zero Emissions by 2050 Scenario Stated Policies Scenario (STEPS)

Increased demand for green products technologies and continue to advance

Short to such as low-carbon cement and low- green product certification for single-purpose carbon concrete in the downstream

medium term cement and special cement. Low Low

This scenario assumes the possibility and impact of

industry chain can contribute to an Scenario global net-zero greenhouse gas emissions by 2050. In This scenario assumes the development trends in

increase in operating income. ● Provide reliable and stable green building description and this scenario countries will introduce strict policies to energy demand and supply without considering the

materials tailored to customer needs. impacts increase the use of energy-efficient technologies and introduction of any new policies or measures.reduce dependence on fossil fuels.Launch cutting-edge carbon reduction Estimated

projects strengthen R&D in carbon ● Actively implement carbon reduction Temperature Rise

Short to reduction technologies and reduce technologies such as Carbon Capture by the End of the

<1.5℃2.4℃

medium term carbon emissions through carbon Low Low

capture and storage from a medium- to Utilization and Storage (CCUS) to reduce Century

long-term perspective thereby lowering carbon emissions.carbon emission costs for the Company. Scenario Source International Energy Agency (IEA)

Resilience Products and

Resource

Services Energy Efficiency Efficiency Chronic Acute31 2024 Environmental Social and Governance Report Feature: Fulfilling the New Mission on Climate Change 32

The prioritization and relevant criteria of sustainability-related impacts risks and opportunities are based on a comprehensive Meanwhile the relevant business departments have carried out the following work:

consideration of their alignment with the Company’s long-term strategy under different climate scenarios the significance of their

impacts on the Company’s operations and financial condition the urgency of the impacts the Company’s control over the issue

and the level of stakeholder concern. Together these criteria guide the Company in identifying and prioritizing issues that are Review Check if there are climate-related risks. For example assess if the Company’s supply chain is vulnerable to current

critical to sustainability ensuring that the Company achieves its triple bottom line goals of economic social and environmental climate events such as floods droughts or extreme weather. business

impacts while addressing the challenges of climate change. The table below shows the degree of impact of the identified risks activities

and opportunities on the Company under different climate change scenarios. Keep a close eye on climate risk trends and policy changes including government regulatory requirements

on carbon emissions and environmental protection as well as industry best practices and standards. By

Monitor

Optimistic Scenario Pessimistic Scenario

Scenario industry

the end of 2024 the Company had invested RMB 835 million in organized transformation and completed

RCP2.6/RCP4.5 SSP1 RCP6.0/RCP8.5 SSP3 trends and selective catalytic reduction (SCR) retrofit projects for 59 enterprises.Impact Low Moderate High Low Moderate High policies

Risks Collect relevant environmental and climate data and conduct both quantitative and qualitative analyses. For

example collect data on energy use carbon emissions and water resource management to understand the

Increased acute extreme weather incidents result in reduced production capacity Collect and Company’s carbon footprint and resource risks. The Company actively advances digital transformation and

damage to assets and reduced operating income. √ √ analyze

climate-related has built the Tianshan Material Production Management Reporting System. The system contains data on

Changes in chronic precipitation patterns and extreme variability in weather patterns data√ √ production energy quality and ultra-low emissions facilitating intelligent data collection and analysis. lead to increased operating costs.Opportunities Foster In line with the “Opinions on Promoting the Implementation of Ultra-low Emission in the Cement Industry”

active

Use of lower-emission sources of energy contributes to reduced operating costs. √ √ stakeholder and certain local government requirements the Company has pushed for the transformation of transportation

engagement methods. Specifically the Company drives initiatives to shift from road to rail transport from road to water

Use of alternative fuels contributes to reduced raw material procurement costs. √ √ transport and to adopt clean transportation together for a sustainable concrete industry.NZE STEPS

Scenario Net Zero Emissions by Stated Policies Scenario Metrics and Targets

2050 Scenario (STEPS)

Impact Low Moderate High Low Moderate High Tianshan Material has set ecological and environmental protection targets which have been reviewed and approved by the

leadership. We have entered into target responsibility agreements with regional companies and evaluated and examined theRisks annual accomplishments of these targets by these regional companies based on the “Management Measures for the EvaluationIncreased pricing of GHG emissions can result in higher GHG emissions costs in the √ √ of Occupational Health Safety and Ecological and Environmental Protection Work”. By doing so the Company aims to become future. an industrial pioneer in green transition.Fluctuations in market prices may lead to increases in production inputs (e.g.energy water waste disposal). √ √ Climate targets and progress

Opportunities The Company has pledged its commitment to green development with environmental consciousness running throughout

Increased demand for green products such as low-carbon cement and low-carbon its operations. The Company strives to contribute positively to the society and environment working towards coordinated

concrete may contribute to increased operating income. √ √ development of the economy society and environment. In line with its targets and business conditions Tianshan Material and

its member units have set up feedback mechanisms and refined reward systems. These efforts are made to spur and sustain

Availability of new products or services through R&D and innovation can enhance √ √ active engagement from teams across all levels in realizing these targets.enterprise competitiveness and increase revenue.In 2025 the Company aims to achieve the following targets:

The Company has implemented a series of key risk mitigation measures to address the challenges of green development

and transformation. The Safety and Environmental Department keeps tabs on regulatory and legal changes related to Average unit clinker CO emissions of 815 kg The proportion of cement clinker production

climate change enabling the Company to adjust its strategies in a timely manner. On top of that a Dual-carbon Management 2reducing by 6.24% from 2021 capacity that reaches the energy efficiency

Department has been established to focus on carbon emission planning and monitoring. The Company also provides training benchmark level exceeds 40%

programs to enhance employees’ expertise in carbon trading. Moreover the Company is actively pushing forward with resource

conservation and technological innovation such as water-saving initiatives and the adoption of renewable energy to enhance

operational efficiency and environmental performance. Average tonne of cement CO2 emissions of 612

kg reducing by 11.10% from 2021 Built 1 carbon capture project

On the marketing strategies the Company is stepping up its market research efforts to quickly adapt to the growing demand

for low-carbon products. The Company also maintains steady communication with stakeholders by regularly publishing ESG

reports. Besides the Company has tightened up its internal management and accountability to make sure environmental Comprehensive energy consumption of tons of

responsibilities are properly carried out. With these moves the Company aims to keep marching forward on the road to clinker decreased by 8.8% from 2021 Green mines meet the 100% standard

sustainable development while ensuring business continuity and compliance.33 2024 Environmental Social and Governance Report Leading the New Chapter of Green Development 3435 2024 Environmental Social and Governance Report Leading the New Chapter of Green Development 36

Embracing Green Actions In terms of carbon emissions monitoring the Company actively participates in the Ministry of Ecology and Environment’s pilot program for “online carbon emissions monitoring.” By the end of 2024 six of our subsidiaries had successfully installed and commissioned

the continuous emission monitoring systems (CEMS) on seven clinker lines now regularly submitting data. We have enhanced our

The Company is dedicated to improving resource utilization and reducing environmental impact. By refining our institutional framework monitoring accuracy through multi-technology solutions ensuring that the uncertainty in carbon emissions measurements remains

optimizing energy management mechanism and adopting low-carbon technologies the Company is making strides toward its targets below 3%. The related technological achievements have earned recognition from the National Institute of Metrology of China marking a

of energy conservation emission reduction and sustainable development. These actions propel the Company toward a greener low- significant leap for the cement industry from broad-scale accounting to precise measurement in carbon monitoring.carbon future with higher efficiency.Beyond that the Company is committed to building a carbon emissions management platform. For example Huaikan South has

realized intelligent centralized control of emissions data. The Company engages a third-party organization to check its greenhouse gas

Environmental Management System Improvement emissions data every year making sure the data is accurate and in line with regulations. At the same time the Company also organizes

internal audits and support to improve its carbon data management capabilities.The Company places a high priority on improving the environmental management system in line with the “dual carbon” goals.By considering the actual operations strategic needs and industry trends the Company constantly improves its environmental Carbon trading management

management mechanisms. We also develop carbon reduction measures and plans tailored to our business promoting a deep

integration of the environmental management system with green and low-carbon development. To proactively address the challenges posed by the national carbon trading market the Company has initiated preparations for inclusion

in the carbon trading market and engaged in research on carbon trading policies for the cement industry. These efforts significantly

Management system improvement boost the Company’s carbon asset management capabilities. The Company has also organized 204 key business persons from 25

subsidiaries to participate in a carbon trading simulation jointly run by the China Building Materials Federation and the Hubei Carbon

Tianshan Material has always prioritized environmental protection as a core corporate value constantly Emission Exchange. This simulation provides us with valuable experience in carbon market trading. Meanwhile to enhance the

enhancing its environmental management system to foster high-quality green and low-carbon capabilities of professional technical personnel and those involved in carbon emissions accounting and monitoring the Company has

development. We speed up “four shifts” of environmental management concepts that is: management conducted training sessions on new guidelines for carbon emissions accounting and verification with a total of 751 participants.strategy shifts from pursuing “zero penalties” for environmental pollution to prioritizing ecological and 431 factories with

green development; management mode shifts from end-of-pipe treatment to reduction at the source; Furthermore to standardize carbon asset management the Company has developed a series of internal management systems certified environmental

management mechanism shifts from routine control to technological innovations driven by energy including the “Measures for Carbon Asset Management (Trial)” the “Measures for Carbon Emissions Data Management (Trial)” the management systems

savings and emission reduction; and management focus shifts from a greater concern for safety to “Rules for Carbon Emissions Trading (Trial)” and the “Measures for the Development and Management of Greenhouse Gas Emissionequal emphasis on safety and environmental protection. Reduction Projects (Trial)”. These systems form the basis of a comprehensive dual-carbon framework that covers carbon emissions

data management trading and emission reduction projects providing a solid foundation for the Company to steadily advance carbonTo bolster environmental management the Company has issued the “Environmental Policy market transactions and carbon asset management.Statement” applicable to the headquarters subsidiaries and suppliers which clarifies the management

responsibilities at all levels. The Board of Directors regularly oversees the implementation of the policy. Environmental awareness enhancement

In addition the Company has been fully promoting the certification of the environmental management

system and the occupational health and safety management system with 431 and 431 factories passing This year Tianshan Material has been actively promoting environmental management communication and training across all levels of

the certification respectively. This year the certification coverage rate of all operating subsidiaries 431 factories with the Company. These training sessions comprehensively enhance the environmental awareness and green development capabilities reached 100%. of all our employees thereby supporting the Company’s sustainable development. The Company has organized multi-level and

certified occupational

The Company has put in place a robust environment-related risk management and prevention system. comprehensive training and communication activities that cover key areas such as environmental management water efficiency health and safety

We have developed policies such as the “Environmental Emergency Management System” and the management waste reduction and energy efficiency management.management systems“Measures of Tianshan Material for the Management of Ecological and Environmental ProtectionIncidents”. These policies clearly outline the processes for environmental risk assessment hidden Training on online monitoring for environmental protection

danger investigation and emergency response. The Company has implemented a closed-loop

management model that combines “supervision mutual inspection and self-inspection” to ensure that Four training courses for online monitoring for environmental protection were held with 220 participants in total. The training

environmental protection work is fully covered and continuously improved. This year the Company had In 2024 covered both theoretical knowledge and practical skills in environmental monitoring significantly boosting capabilities in

no major environmental incidents. environmental data management and online monitoring.This year Tianshan Material faced six administrative penalties from environmental and other relevant

authorities due to environmental incidents with total fines amounting to approximately RMB 1.12 million. Training on dual carbon strategy

These penalties are primarily centered on pollutant emissions and monitoring as well as responses toheavy pollution weather. The Company completed the overall rectifications and accountability measures The certification coverage Leveraging the General Manager Special Training Camp the Company conducted a special training session titled “Tianshanaccording to relevant rules which had no material impact on our production and operation activities. rate of all operating Material’s Journey to Dual Carbon Excellence” for middle and senior management as well as general managers with 215

Moving forward Tianshan Material remains committed to enhancing environmental management subsidiaries participants in total. The training effectively enhanced the management’s understanding and response capabilities regarding

bolstering environmental monitoring and mitigating environmental risks. 100% dual carbon policies.Carbon reduction roadmap improvement Carbon related management system communication and training

In line with the “Dual Carbon” goals the Company is actively pursuing whole-process carbon management including carbon reduction at Multiple online and offline sessions were organized around the Company’s carbon management system and carbon emissions

the source and throughout the process and carbon sequestration at the end point. data management system. These sessions helped employees gain a deep understanding of carbon management requirements

and strengthened their awareness of compliance.The Company implements a range of measures aimed at reducing carbon emissions and supporting the transition to a low-carbon

cement industry. These measures include boosting energy efficiency promoting alternative fuels developing low-carbon cement

technologies implementing carbon metering advancing carbon capture and purification technologies and leveraging carbon dioxide In addition on occasions like National Low-carbon Day the Company organized a range of activities such as special lectures low-

utilization. In 2024 the company reduced emissions by 1495368.14 tons of CO2 equivalent through redesigning production processes carbon initiative signature campaigns and environmental photography contests. These activities integrated education with fun boosting

upgrading equipment improving processes and replacing fuels. employees’ sense of participation and environmental responsibility.37 2024 Environmental Social and Governance Report Leading the New Chapter of Green Development 38

Promotion of Green Operation Energy Efficiency Improvement

Tianshan Material has always been dedicated to green office practices and sustainable operations. The Company has integrated The Company attaches importance to energy consumption management of production lines and explores the potential of energy

the principles of energy conservation and emission reduction into its day-to-day management and is committed to creating saving and carbon emission reduction. We have optimized the kiln system renovated the grate cooler and improved the energy-

a resource-efficient and environmentally friendly workplace. Through institutional improvement practical management and saving technology of fans continuously improving the energy efficiency level of each energy-consuming link. The Company also

enhanced energy efficiency the Company has significantly improved its green office management. conducts regular internal energy management reviews to systematically assess energy efficiency identify potential savings and

optimize its energy management system thereby enhancing the energy management performance. In 2024 the Company hasTo standardize green office practices the Company has revised and implemented the “Management Measures for Administration reduced electricity consumption by 520 thousand MWh achieving savings of 122 thousand tonnes of standard coal and 320Affairs” which clearly outline energy-saving requirements in areas such as meeting management office environment setup and thousand tonnes of CO2 emissions. In the year the comprehensive energy consumption per unit of clinker products reached

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

products reached 48.64 kWh down 1.38 kWh.● Promote remote video ● Launch “5S ● Enforce a strict principle Case Retrofits of energy-efficient fans and permanent magnet motorsor teleconference to Standardized of conservation in thecut down on travel and Management” to consumption of office

resource use; promote the reuse of supplies pushing for Luopu Tianshan actively embraces national policies on energy conservation and emission reduction. The company

discarded documents reuse and minimizing initiated a retrofit project for energy-efficient fans and permanent magnet motors in its kiln and mills with the goal of

and paper recycling; waste. improving energy efficiency and reducing carbon emissions.The project targeted the high-temperature fans circulating fans and tail fans in the kiln and mills. The original operational

efficiency for the equipment ranged from 63.72% to 74.46% resulting in relatively high energy consumption. The

In terms of green operations the Company actively encourages all employees to practice energy-saving and consumption- company introduced energy-efficient fans that meet the Minimum Allowable Values of Energy Efficiency and Energy

reducing concept: Efficiency Grades for Fan (GB19761-2020). After the retrofit the operational efficiency for the fan increased to over 80%

effectively reducing energy consumption. Additionally the company replaced the existing motors with permanent magnet

energy-saving motors which feature high mechanical efficiency and excellent power factor significantly reducing motor

operational losses and improving the overall system efficiency.Turn off lights and equipment when getting off work or leaving offices for a long time to

Electricity reduce standby energy consumption; Following the implementation of the project the electricity consumption per unit of clinker was reduced by 3.37 kWh/t and

conservation the electricity consumption per unit of cement produced was reduced by 0.11 kWh/t. This not only significantly lowered

energy costs but also enhanced production efficiency.Promote double-sided and black-and-white printing to reduce paper use and encourage

Paperless digital workflows;

office

Designate parking areas for bicycles and electric bicycles install charging stations for

new energy vehicles and encourage employees to practice low-carbon travel to reduce

Green transportation-related carbon emissions;

commuting

Canteen energy Post “tip” signs of saving food water and electricity; use energy-efficient stoves and

conservation promote reusable tableware to cut down on single-use items.management

In addition the Company has installed aerospace metal reflective film on the top of the office building effectively reducing solar

heat gain and air conditioning energy consumption and enhancing indoor comfort. The building also features energy-efficient

glass and high-performance thermal insulation materials to optimize thermal insulation reduce heating and cooling loads and

further decrease energy consumption.39 2024 Environmental Social and Governance Report Leading the New Chapter of Green Development 40

Clean Energy Utilization Promotion of low-carbon transport vehicles

To drive long-term sustainable development Tianshan Material is actively advancing the transition to clean energy and is The Company promotes green and low-carbon transport and strives to minimize non-renewable energy consumption and

committed to reducing greenhouse gas emissions. The Company continues to optimize its energy mix and reduce carbon reduce environmental pollution.emission intensity by implementing advanced emission treatment technology upgrades and increasing the proportion of

renewable energy used.Case The use of all-electric concrete mixer trucks boosted

Upgrading of carbon capture technologies

Huadong Material actively embraces the national “Dual Carbon” strategy and has initiated a project at Wuxi Huadong

Materials Co. Ltd. to replace fuel-powered vehicles with all-electric concrete mixer trucks. The company purchased 30

The Company is actively engaged in carbon capture to minimize greenhouse gas emissions. By storing captured CO2 or all-electric concrete mixer trucks becoming one of the first companies in Wuxi to widely promote the use of new energy

converting it into useful products such as building materials CO2 has been reused as a resource. transport vehicles. The project supports the development of a new commercial concrete transportation system that is

energy-saving low-carbon and resource-efficient.By switching to all-electric mixer trucks the project replaces traditional fossil fuels with clean energy effectively reducing

Case The carbon capture project boosts crude oil recovery for Shengli Oilfield and partners with Integrated

fuel consumption and lowering carbon emissions and greenhouse gas emission intensity. By doing so the company has

Modern Agriculture explored a low-carbon development path tailored to the industry’s needs. Beyond reducing carbon emissions all-electric

mixer trucks offer zero exhaust emissions and low-noise operation significantly improving urban air quality and reducing

noise pollution. In addition these trucks decrease hazardous waste from traditional fuel-powered vehicles promoting a

In early 2024 the 200 thousand tonnes per year of carbon capture by oxyfuel combustion pilot project of CUCC Qingzhou transition of the company from a resource-saving to an environmentally friendly model. Consequently the project supports

a subsidiary of CUCC formally commenced production. This project marks the largest carbon capture demonstration line in harmonious coexistence and green development between the company and the city.the global cement industry. The company continuously explores cost-effective carbon capture and purification technologies

strengthening cross-industry collaborations and advancing the industrialization of carbon capture utilization and storage Moreover after the project’s implementation concrete transportation management has become smarter and more digital.

(CCUS). This year Tianshan Material achieved significant milestones in carbon capture projects. The Company signed a The trucks are equipped with advanced in-vehicle monitoring systems and smart dispatch platforms which enhance

cooperation agreement with Shengli Oilfield to enhance crude oil recovery and facilitate carbon storage. The partnership transportation safety while optimizing dispatch efficiency and reducing operating costs.supports Shengli Oilfield’s target of achieving an annual injection capacity of 3 million tonnes by the end of the 15th Five-

Year Plan promoting the green development of the CCUS industrial chain in Shandong Province.Additionally CUCC Qingzhou entered into a strategic cooperation agreement with Qingzhou Nanxiaowang Integrated

Modern Agricultural Development Co. Ltd. (“Integrated Modern Agriculture”) to explore the efficient utilization of carbon

dioxide in modern agriculture and support the green transformation of the agriculture. Carbon capture and purification

technology is widely used in carbonated beverages cold chain logistics and food preservation expanding new scenarios of

CO2 resource utilization. The captured carbon dioxide is further purified and applied to the production of food-grade liquid

carbon dioxide and dry ice.CUCC Qingzhou was awarded the WCA Climate Action Award by the World Cement Association (WCA) at the WCA 2024

Annual General Meeting which fully demonstrated the technical innovation strength of CUCC Qingzhou in promoting the

green transformation of the cement industry energy saving and carbon reduction as well as its positive contribution to

global environmental protection.All-electric concrete mixer trucks at Wuxi Huadong Materials Co. Ltd.CUCC Qingzhou’s 200 thousand tonnes per year of carbon capture by oxyfuel combustion pilot project Furthermore the Company actively partners with major equipment manufacturers to drive the extensive adoption of new energy

vehicles. In 2024 the total number of new energy vehicles used by outsourced units was approximately 600.41 2024 Environmental Social and Governance Report Leading the New Chapter of Green Development 42

Renewable energy application Case 2.5 MW photovoltaic project at Hunan Jiuhua

The Company continues to expand the use of renewable energies and aims to reduce dependence on traditional energies by Hunan Jiuhua has built distributed photovoltaic power stations on the rooftops of the mixing building raw material

constructing solar panels and wind turbines in the Company’s production areas in an attempt to minimize the adverse impact on stacking shed and sand washing production line plant with an area of about 22 thousand m2 and an installed

the environment. By the end of 2024 the company had commissioned 43 PV projects with an installed capacity of 166.16 MW. capacity of 2.5 MW and the estimated average annual power generation capacity is 2.25 million kWh. In 2024

the Company consumed a total of 100.26 kWh of self-generated electricity resulting in cost savings of RMB 295.4

thousand.Case Tianshan Material’s low-carbon transition empowered by photovoltaic projects

To align with the national green and low-carbon development strategy Tianshan Material has been actively advancing

distributed photovoltaic power generation projects. In 2024 six cement plants of Tianshan Material in the Centraland South China region launched a photovoltaic project with a total capacity of 19 MW. The project adopts a “self-generation and self-use and surplus electricity connected to the grid” model and has fully entered the construction

phase.The project covering six cement plants of Shaoyang South Shaofeng South Anren South and Guzhang South

leverages the rooftops of plant buildings to install photovoltaic systems. Once put into operation these systems

will significantly cut the cost of purchased electricity promote clean and low-carbon production and reduce energy

consumption and carbon emissions thereby boosting the core competitiveness of the Company’s cement business.Designed for a 25-year operational lifespan the project is expected to generate an average of 18.3566 million

kWh annually. Compared to thermal power of the same capacity it will save 5519.83 tonnes of standard coal and

reduce CO2 emissions by approximately 15125.84 tonnes each year. Through the construction of these photovoltaic Photovoltaic project at Hunan Jiuhua

projects Tianshan Material has not only met its energy-saving and emission reduction targets but also spurred the

green transformation of the cement industry laying a solid foundation for sustainable development.Case Ruichang aggregate transport corridor photovoltaic project

Ruichang Corridor Transportation Co. Ltd. by fully utilizing the resources within the plant has built a distributed

photovoltaic power station on the rooftop and two facades of the landscape corridor for ore transportation. The

station has applied a total of 4302 pieces of CdTe power generation glass to lay more than 7000 square meters

of photovoltaic power generation equipment. The total installed capacity of the project is about 685 kWp. In 2024

the cumulative power generation of the project was 369 thousand kWh saving 121.01 tonnes of standard coal and

reducing 367.81 tonnes of carbon emissions.Ruichang aggregate transport corridor photovoltaic project43 2024 Environmental Social and Governance Report Leading the New Chapter of Green Development 44

Developing Circular Economy Case Replacement of limestone with acetylene sludge in clinker production for energy conservation and emission reduction

Tianshan Material continues to promote the development of the circular economy and remains committed to minimizing the Midong Tianshan actively responds to national policies by using acetylene sludge to fully replace limestone in clinker

dependence on natural resources. The Company actively increases the proportion of alternative raw materials and fuels production. The company also utilizes fly ash copper slag desulfurized gypsum and silicon powder from power plants

and promotes the water recycling technology to boost resource efficiency and mitigate the impact on the environment by the achieving circular economic development. This not only consumes industrial slag but also eases the environmental

pressure on surrounding enterprises in the park facilitating the coordinated development of the ecological environment and

Company’s production and operation thereby supporting green and sustainable development. land resources. Since its commissioning the clinker production line has operated continuously throughout the year. The

production line has produced approximately 1.5 million tonnes of clinker consumed 2.3 million tonnes of acetylene sludge

Use of Alternative Materials and 300 thousand tonnes of other slag annually achieving a 100% utilization rate of industrial slag. As of December 2024

Midong Tianshan had consumed a total of 38 million tonnes of industrial slag contributing to the protection of the ecological

environment and energy conservation and emission reduction.Tianshan Material actively promotes the use of alternative raw materials and fuels in cement production. This initiative aims to

reduce dependence on traditional resources and lower carbon emissions and environmental pollution. While using alternative materials Midong Tianshan has always prioritized quality. In 2024 the company obtained

certifications for its quality environment energy and occupational health and safety management systems from China

The Company has set clear circular economy management targets and plans. It is expected that the substitution rate of raw Quality Mark Certification Group. In December 2024 the company passed the re-assessment and acceptance of the

materials will reach 2.7% and 3% by 2025 and 2030 respectively. second-level safety standardization and has repeatedly won the excellent award in the Grand Comparison of Cement

Chemical Analysis hosted by the China National Center for Quality Inspection and Testing of Cement.Use of alternative raw materials

We have researched and learnt about applicable alternative resources in the region where each subsidiary is located such as

calcium industrial solid wastes including calcium carbide slag steel slag yellow phosphorus slag fly ash coal slag copper slag

magnesium slag sulfuric acid slag and red mud and gradually improve the substitution rate of raw materials. During the year

the Company conducted a series of initiatives for the comprehensive utilization of resources mainly by adopting alternative raw

materials such as fly ash mineral powder and calcium carbide slag.Excellent award in the 19th National

Midong Tianshan’s acetylene sludge production line Grand Comparison of Cement Chemical

● Approximately 60% of CO2 from clinker production is generated from the raw material Analysis of “Tianbao Huarui Cup”

(i.e. limestone) while alternative raw materials can significantly reduce CO2 emissions

from carbonate decomposition. The Company uses alternative raw materials such as

waste residue after high-temperature calcination and materials that clearly do not contain Case Partial replacement of limestone with magnesium slag to facilitate energy saving and carbon reduction

calcium carbonate and magnesium carbonate. The main types include calcium carbide in clinker production

Clinker slag magnesium slag paper making white mud sulfuric acid slag coal ash and red mud.production In 2024 the Company consumed a total of 9780 thousand tonnes of alternative raw Hanshan South has been deeply exploring raw material substitute technology. The company has innovatively used

materials reducing carbon dioxide emissions by 2.38 million tonnes. magnesium slag a solid carbon-free high-calcium by-product from local metal magnesium production enterprises as an

alternative raw material in the clinker production process. This move fully taps into the carbon reduction potential of solid

waste resource utilization.During clinker production Hanshan South incorporates 5% to 8% magnesium slag into the raw meal partially replacing

● The Company adopts mineral admixtures such as fly ash and mineral powder and limestone and siliceous materials. The application of magnesium slag not only effectively reduces the carbonate content

optimizes their proportions with additive trial blending to improve concrete performance in the raw meal but also plays a role in inducing crystallization lowering nucleation energy and promoting the formation of

and reduce environmental pollution. In the year the Company used 5277.2 thousand silicate mineral crystals during the calcination process. Additionally the CaF2 in the raw meal acts as a mineralizer further

Concrete tonnes of fly ash and 4624.9 thousand tonnes of mineral powder. promoting the formation of C3S and enhancing the burnability of the raw meal. This technological improvement significantly

production reduces the thermal energy required for carbonate decomposition achieving energy saving and consumption reduction.Without affecting the clinker quality the physical coal consumption is reduced by 4.98 kg/t and the comprehensive electricity

consumption is reduced by 1.64 kWh/t achieving remarkable energy-saving results.● We use low-grade limestone and waste stone for aggregate production to achieve 100%

resource utilization.Aggregate

production

● The artificial sand and rock flour produced in the processing process of the aggregate

production line are reutilized by the Company in the cement production line which can

Cement lower the production cost and improve efficiency.production Hanshan South’s production line45 2024 Environmental Social and Governance Report Leading the New Chapter of Green Development 46

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

The Company has developed the “Implementation Plan for Reaching Carbon Peaking and Carbon Neutrality” proposing to

promote the carbon reduction through introducing alternative fuels and other methods. Key Performance Indicator Unit Data in 2024

The alternative fuels used by the Company comprise solid liquid and gaseous alternative fuels. Solid alternative fuels include Percentage of alternative fuels to replace fossil fuels % 4.00

refuse-derived fuel (RDF)3 biomass plastic waste waste tires and petroleum coke. Liquid alternative fuels include mineral oil

waste hydraulic oil and others. Gaseous alternative fuels include coke-oven gas oil refinery gas pyrolysis gas and hydrogen Percentage of clinker in cement % 73.59

energy.The Company is dedicated to the research on regional alternative fuel resources and the R&D of alternative fuel technology and Percentage of alternative raw materials in cement4 % 2.67

equipment in collaboration with an intra-group company. Meanwhile the Company is developing projects for the collection and

storage of RDF biomass fuels and other alternative fuel resources with a focus on promoting the construction of alternative Percentage of alternative raw materials in concrete4 % 36.3

fuel projects in Shandong Henan Anhui Jiangsu Zhejiang Sichuan Guizhou Yunnan and other regions. Furthermore we

conduct research on the application of hydrogen fuel in the cement industry and construct demonstration end-user engineering

projects with large-scale utilization of alternative fuels in due course. By the end of 2024 there were 89 alternative fuel projects

completed and put into operation with excellent progress in carbon reduction.Recycling of Water Resources

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

CUCC Tengzhou has successfully carried out an alternative fuel application project based on its 4600 t/d cement The Company has always placed emphasis on efficient utilization and sustainable management of water resources. We

clinker production line facilitating energy conservation carbon reduction and green transition in cement production. therefore take active and constant measures to promote water resources recycling and improve water use efficiency to realize

green and low-carbon transition. In the year we achieved the following notable results in improving water extraction compliance

It has invested in building a 240 t/d production line which uses alternative fuel. The project employs advanced increasing water reuse rate and enhancing comprehensive utilization of wastewater.alternative fuel metering technology to conduct sophisticated preprocessing of various raw alternative fuels and solid

wastes to ensure that the processed fuel products meet the high-temperature calcination requirements of thermal The Company is committed to water resources recycling and the continuous improvement of water management system. In

equipment in the kiln system while maintaining combustion efficiency and calorific value stability. Supported by the 2024 the water reuse rate in factories recorded 92.18% exceeding the target of annual water reuse rate ≥90%. In addition

high-temperature calcination process of decomposing furnace the alternative fuels completely combust enhancing the commercial concrete enterprises of the Company put more efforts in the construction of water-saving and drainage

energy efficiency while effectively reducing conventional fossil fuel consumption. facilities within their factories achieving 100% comprehensive utilization of treated sewage thereby substantially decreasingthe consumption of fresh water. In 2025 following the management goal of “maintaining the water reuse rate ≥90% in theThe project demonstrates remarkable outcomes achieving annual co-processing of 48 thousand tonnes of factories and decreasing water consumption per unit of product by 0.1%” the Company will continue to strengthen water-saving

alternative fuels. Approximately 26.4 thousand tonnes of standard coal equivalent are replaced and CO emissions management and make more progress in water conservation and consumption reduction.2

are reduced by about 68.8 thousand tonnes per year. This approach not only significantly lowers corporate energy

costs and dependence on traditional fossil fuels but also substantially improves the resource utilization rate of solid For more efficient recycling of water resources the Company has carried out a series of measures including the optimization of

wastes. The project has established a role model for large-scale high-proportion co-processing of alternative fuels production process construction of a recirculation system and sewage treatment and reuse.for cement industry in Shandong Province. In terms of production process the Company has adopted an advanced dry-process rotary kiln cement production process

which significantly reduces water consumption in raw material drying and grinding. We have also updated the clinker calcination

system to enhance thermal efficiency leading to a reduction in the water demand of the cooling system and a decrease in water

consumption.In terms of recirculation system construction the Company has scaled up input in building a highly efficient circulating cooling

water system which realizes closed-circuit recycling of production water except evaporation and natural loss greatly reducing

the need for fresh water supply.In terms of sewage treatment and resource utilization the Company has been upgrading the wastewater treatment station and

improving the sewage treatment capacity with wastewater being safely discharged or reused after meeting the standard through

treatment. In addition the Company actively explores new paths of wastewater reuse. For example wastewater such as the

circulating water of the waste heat power system and reverse osmosis concentrated water are recycled to the reservoir and

then applied for non-productive purposes after processed such as greening of the plant and dust suppression in mines. Such

Alternative fuel production line approach realizes wastewater utilization and further reduces the dependence on natural water bodies.

3 RDF (refuse-derived fuel) is the combustible portion extracted from urban solid wastes and is applied for energy recovery after processing. 4 Alternative materials do not include gypsum volcanic ash and other natural raw materials.47 2024 Environmental Social and Governance Report Leading the New Chapter of Green Development 48

Case Apply smart water control model in an innovative manner to facilitate efficient management of wastewater recycling Innovate Low-carbon Products

Huaikan South has demonstrated bold innovation in the field of industrial wastewater recycling and established an To actively respond to the challenges of climate change and sustainable development the Company continuously develops and

integrated and smart water use management model that effectively drives its green and low-carbon transition. promotes green and low-carbon products and services that meet market demands in a bid to provide customers with sustainable

It has introduced an advanced distributed control system (DCS). This system provides precise flow data for water and innovative solutions.balance diagram based on real-time monitoring of flow rates water pressure and operating status across water-

consuming equipment reinforcing online monitoring and management capabilities for both water and steam

resources in all respects. The comprehensive treatment of circulating water has not only improved water quality but Diverse Products

also reduced circulating water consumption markedly decreasing the reliance on freshwater resources.Carbon reduction of concrete and cement products is a key step in the green and low-carbon development of the industrial

Furthermore Huaikan South has proactively expanded its approach to water resource management by deploying a chain. The Company strengthens quality control of raw materials and management of the mixture proportion technology

rainwater collection system. This system centrally collects and treats precipitation across the facility complex and the improves the quality of aggregates and cement and reduces the use of concrete cementitious materials. Efforts are made to

treated rainwater is extensively utilized for floor cleaning and landscape irrigation realizing efficient rainwater reuse. explore the carbonization and carbon sequestration of concrete and cement products to facilitate the green and low-carbon

This year Huaikan South raised water reuse rate up to 98.7% by reduction of water consumption at source and wider development of the industrial chain.utilization of wastewater. Its smart water use management model is listed in the “2024 Typical Cases List of Industrial In recent years the Company continues to promote the R&D of special cement5 and has achieved noticeable results. SpecialWastewater Recycling” published by the Ministry of Industry and Information Technology. cement is an environmentally friendly product which possesses carbon capture potential and can effectively absorb carbon

dioxide in the process of hardening. In addition this stable and endurable product can reduce the consumption of building

materials and the energy consumption and CO2 emission in the production process.In the year 2513 thousand tons of special cement and 15061 thousand tons of single-purpose cement6 were sold totaling

17574 thousand tons a year-on-year increase of 19.76%.

To reduce the carbon emissions of cement products the Company has made the following efforts:

Reduce carbon emission intensity during clinker production

Reduce carbon emission intensity during clinker production by optimizing the

production process and energy structure;

Cut down clinker usage

Cut down clinker usage by accelerating the R&D and promotion of new low-calcium

clinker raising its proportion in the product mix and lessening the overall carbon footprint;

Save power consumption of grinding

Save power consumption of grinding by deepening the application of graded grinding

technology and developing new mixed materials with high activity;

Optimize clinker indicators

Optimize clinker indicators by the lime saturation factor (LSF) of general silicate cement

clinker and balancing carbon emission intensity while ensuring product performance.

5

In recent years we have made remarkable progress in water conservation and recycling. Our implementation of systematic S pecial cement refers to cement species that have certain special performance or functions over general purpose cement and are suitable for specific purposes or can play special functions and assign special functions to the building.water conservation management and technological innovation has cut down water consumption per unit of product and 6 S ingle-purpose cement refers to those with special treatment or addition of special materials in terms of raw material ratio and production process to meet

improved water reuse rate while achieving effective control of the total wastewater discharged. specific engineering needs and solve specific problems.49 2024 Environmental Social and Governance Report Leading the New Chapter of Green Development 50

Develop low-heat Portland cement resistant to high-geothermal environment to facilitate the

Case Green building materials empower low-carbon development - Concrete products of Sichuan Guangyuan construction of high-standard projects Case Commercial Concrete obtained “Green Building Materials Product Certification”

Jiahua Special Cement Co. Ltd. has developed low-heat Portland cement resistant to high-geothermal environment to address Sichuan Guangyuan Commercial Concrete pursues the idea of green and low-carbon development and maintains sustained efforts

issues such as cracking and poor durability of tunnel secondary lining concrete in high-geothermal environments. Leveraging its self- in the R&D and production of green products. In terms of product innovation it successfully developed C30 permeable concrete

developed “ion doping-crystal structure stabilization and activation” fine clinker technology Jiahua Special Cement has successfully based on technological innovation which demonstrates excellent water permeability and environmental-friendly performance

resolved challenges including premature liquid phase formation and low viscosity during the calcination process of high-magnesium and has achieved commercialization. For production process Sichuan Guangyuan Commercial Concrete has improved enclosed

high-iron low-alumina clinker. This innovation has yielded a cement product dominated by dicalcium silicate (C2S content material storage yards and installed spraying dust suppression systems and pulse dust collectors effectively reducing particulate

≥40%) featuring low heat generation micro-expansion properties high strength and exceptional adaptability to high-geothermal emissions. A newly constructed zero-discharge sand and gravel separator enables complete recycling and zero discharge of waste

environments meeting engineering requirements under complex geological conditions. materials and wastewater further enhancing resource recycling efficiency.Compared with ordinary Portland cement this product reduces raw limestone consumption by approximately 10% lowers calcination This year it obtained the 2-star certification of China Green Building Materials Product Certification for four product categories i.e.temperature by about 100°C and decreases CO2 emissions by roughly 10% significantly enhancing resource utilization efficiency ordinary concrete self-compacting concrete fiber-reinforced concrete and high-strength concrete. Centering on green building

and contributing to green low-carbon development. In practical engineering application the cement demonstrates superior crack materials it strives to drive the green transition of the construction industry and embark on the path of high-quality and sustainable

resistance and durability. It has been successfully applied to major projects including railway construction providing robust technical development.support for advancing high-standard premium-quality infrastructure at a high starting point.Construction of Green Factories

In the year Aksu Tianshan passed the on-site inspection regarding production facilities technological process quality The Company gives priority to the high-end oriented intelligence oriented and environmental protection oriented transition

management and environmental protection control by the certification bodies. Its products the “Tianshan” brand general- of production and service. We continue to optimize business layout and resource allocation in production and facilitates the

purpose cement 42.5 Portland cement and 52.5 Portland cement were all awarded the China Low-carbon Product Certification. green and intelligent development of the production system. The Company establishes a joint working group for intelligent

By the end of 2024 a total of 131 subsidiaries of the Company had obtained the China Green Building Materials Product construction and compiles and perfects the “Intelligent Factory Construction Guide” “Intelligent Factory Evaluation Standard”

Certification. “Digital Mine Construction Guide” “Pilot Project of Intelligent Factory and General Plan for Information-based Production” and

other guiding documents which lay a solid foundation for the implementation of intelligent and green projects to ensure their

efficient implementation standardized operation and promotion.In 2024 we set an annual management goal of “comprehensive utilization rate of mine resources ≥85%” and accomplished the

target by recording 100%.Case Building-integrated photovoltaics promotes energy saving and carbon reduction - Hefei South Cement Co. Ltd. carries out plant green reconstruction

Hefei South Cement Co. Ltd. has incorporated cutting-edge building-integrated photovoltaic (BIPV) technology utilizing innovative

cadmium telluride (CdTe) photovoltaic glass into its plant energy efficiency upgrades. This technology converts conventional

insulating glass into a conductive power-generating material through a five-layer semiconductor film structure deposited on glass

substrates. The CdTe glass features adjustable light transmittance customizable color patterns and recyclability serving as a

multifunctional green building material that integrates energy efficiency renewable power generation and aesthetic design.The project will install 5626 m2 of CdTe photovoltaic glass with a total capacity of 0.58 MW expected to generate 356.3 thousand

kWh of clean electricity annually. This renewable energy supply will offset factory power consumption and reduce operational energy

consumption. Additionally it is estimated to cut annual CO2 emissions by 267.2 tonnes and conserve 100.1 tonnes of standard coal

equivalent markedly improving energy utilization efficiency.Subsidiaries of the Company obtained the “Certificate for China Low-carbon Product Certification”

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

CUCC Beichuan has emerged as a trailblazer in sustainable manufacturing advancing

its “eco-friendly and resource-conserving” vision through intelligent upgrades and

clean energy integration. It has pioneered an integrated co-processing system for solid

waste and alternative fuels leveraging breakthroughs in technological innovation to

enhance resource efficiency and minimize reliance on conventional fuels. The distributed

photovoltaic power generation project is also launched to diversify its energy mix with

renewables and achieve carbon reduction at the source. Upon full implementation these

measures are expected to drive significant annual reduction in carbon emissions boost

energy efficiency and accelerate its transition to low-carbon operations. Recognized forits exemplary practices of green manufacturing CUCC Beichuan was named to the “2024Green Manufacturing List” and certified as a National Green Factory. Its achievements

have set a new industry benchmark for eco-conscious cement production and propelled

the industry toward a carbon-neutral future.Subsidiaries of the Company obtained the “Certificate for China Green Building Materials Product Certification”51 2024 Environmental Social and Governance Report Leading the New Chapter of Green Development 52

Biodiversity Protection Case Promote the integration of “intelligent industry” and “ecological beauty” to build a national green mine benchmark

Huanghe Tongli actively practices the idea of ecological civilization and promotes the construction of green minesThe loss of biodiversity has been recognized as one of the greatest global risks at present and biodiversity protection is under the integration of intelligent industry” and “ecological beauty”:

essential for human well-being and the health of our planet. As the largest cement company in the world the Company pursuing

the concept of green development takes active actions to preserve the ecological environment and avoid or minimize the Green mining and resource utilization: Its advanced production lines enable green mining and efficient processing

pollution and damage to the ecological conditions caused by our production and operation. We aim to make contribution to the of ores to fully utilize waste rock. The industrial wastes are reused as reclamation material thereby alleviating land

harmonious coexistence between man and nature and the building of a beautiful China shortage and achieving waste reduction and recycling.According to UN Sustainable Development Goals (UNSDGs) the “Kunming-Montreal Global Biodiversity Framework” adopted Ecological restoration and revegetation: Huanghe Tongli insists on ecological restoration throughout the lifecycle of

at the 15th meeting of the Conference of the Parties to the “Convention on Biological Diversity” the “Opinion on Further mines and takes actions such as water diversion and construction of impounding reservoir regreening more thanStrengthening Biodiversity Conservation” issued by the General Office of the Central Committee of the Communist Party 400 thousand square meters of land. Around 300 thousand seedlings have been planted with a high survival rate.of China and the General Office of the State Council and related conventions and opinions on biodiversity protection the Under its efforts a four-season evergreen garden mine has been built up. In 2024 the orchard saw a good harvest.Company has issued the “Policy Statement on Biodiversity” which applies to all operating regions suppliers associates and

other business partners. The Company is committed to protecting biodiversity and incorporates biodiversity as a key issue in our Digitally smart mine: Huanghe Tongli drives digital and intelligent transition and has installed intelligent car-washing

ESG governance system which is supervised by the Board’s ESG Committee and shall be implemented by the ESG Working surveillance and environmental protection monitoring systems to achieve an all-round and real-time monitoring. A

Group and relevant functional departments. range of technologies are integrated to promote the construction of 5G smart mine with higher level of management

efficiency and resource utilization.Biodiversity Risk Assessment

The Company actively carries out biodiversity risk assessments covering our operations surrounding areas and upstream

and downstream activities to avoid adverse effects on biodiversity. The Company continuously improves the prevention and

control system of biodiversity risk management and assessment and applies assessment standards and framework related to

biodiversity to identify analyze and evaluate the potential impact on biodiversity and natural capital by production operation

procurement and acquisition and to avoid operation in areas of world or national biodiversity importance.Guide by the red line policies for ecological and environmental protection the Company has strengthened its management

philosophy regarding ecological conservation and conducted rigorous assessments for factory site selection and layout

planning. Where potential ecological impacts are identified within the scope of the ecological conservation red line we will cease

operations relocate projects or decommission facilities to ensure the integrity of ecosystems. This year the Company did not

initiate new production activities beyond red line or have any operation ceased or facility decommissioned.For operations at terrestrial or marine sites adjacent to key ecological functional zones natural reserve and ecologically

sensitive and vulnerable regions the Company has implemented a series of ecological protection and restoration measures.These include optimizing plant layout minimizing disturbances to natural habitats executing vegetation restoration projects and

carrying out soil and water conservation practices to mitigate impact on surrounding ecosystems. We conduct regular monitoring

of ecological conditions around operational sites to ensure preservation of original ecological functions. In 2024 the Company

effectively lessened ecological pressures on sensitive areas maintained stability in surrounding ecosystems preserved

ecological functions in relevant regions without significant degradation and sustained favorable environmental quality.Conservation of natural habitats and wildlife

Biodiversity Protection Actions During our operations at factories and mining sites we prioritize the protection of natural habitats wetlands forests wildlife

corridors and agricultural land and minimize ecological impact to the greatest extent possible. To ensure habitat integrity we

We value the management of risks and opportunities arising from ecological and environmental changes bend ourselves adopt mining techniques and transportation plans according to local conditions to significantly weaken disturbance to regional

to minimizing the damage caused by our production and operation to the environment and produce cement products in an ecosystem. In 2024 we restored native vegetation of certain zones in plenty of projects reinforcing ecological quality and

ecologically friendly manner. Abiding by the principle of “concurrent mining and reclamation” the Company takes practical strengthening both biodiversity and ecosystem resilience. The habitat conditions for numerous indigenous species were more

actions to protect biodiversity. livable and ecological connectivity were smoother across regions.53 2024 Environmental Social and Governance Report Leading the New Chapter of Green Development 54

Case Sichuan Golden Cement's ecological restoration and reclamation of limestone mine accelerate Case Huanghe Tongli’s efforts for a green mine – the integration of “intelligent industry” and “ecological beauty”transition towards green mine

Under the global consensus on ecological civilization and environmental protection the ecological restoration of The Lujiaoling Mine is located in Fancun Town Yiyang County and covers an area of 1.8989 square kilometers.mines has become a crucial indicator for evaluating regional and enterprises capabilities of advancing sustainable Since the beginning of the mine's development Huanghe Tongli had adhered to an eco-priority development path.development. Sichuan Golden Cement actively responds to the “Technical Specifications for Ecological Restoration Upholding the principle of “reclamation during excavation greening during construction and beautification duringof Mines” issued by the Ministry of Natural Resources. Adhering to the philosophy of “giving priority to ecological production for a green mine” the company made every effort to minimize the impact on the natural environment.protection and maintaining green development” it fully implements ecological restoration at the Wulongdong Cement By establishing a sand and gravel aggregate production line and a commercial concrete production line capable of

Limestone Coal Mine contributing to green mine transition. utilizing 100% of the mine waste rock Huanghe Tongli has achieved green mining and processing of ore at Lujiaoling

Mine. To cope with the limited land for reclamation and significant challenges associated with it the company used

Based on mining operations and climate patterns Sichuan Golden Cement has scientifically formulated an industrial waste such as filter cake separated from sand washing as materials for artificial slope reconstruction. This

ecological restoration plan to conduct remediation strategies by phase and by region. Innovative application of solved the land shortage issue and achieved waste reduction reuse and decontamination to a large extent.lawn hydroseeding technology combined with interlaced planting of shrubs and vines has significantly enhanced

vegetation recovery. By the end of 2024 the comprehensive remediation and regreened area reached 17 hectares Through restoration efforts the company regreened a total area of over 400 thousand square meters at Lujiaoling

with 100% greening coverage. Sichuan Golden Cement also places emphasis on organic integration of ecology Mine. Additionally the company diverted water from the Luohe River built reservoirs and applied fertilizers to

and landscape. The key projects including viewing terrace pavilions and central scenic areas are embellished by maintain the eco-environment of the mine. These greater efforts successfully consolidated the company’s greening

colorful floral displays rockery landscapes and tranquil corridors creating a “Beautiful Mine” image that elevates achievements and ensured a survival rate of over 99% for the saplings planted there.ecological and cultural value of the mining field.The reclamation of Wulongdong Mine has achieved remarkable results. The substantially increased vegetation

coverage provides quality habitats for diverse species thus establishing a stable ecosystem that effectively controls

soil erosion and mitigates potential water/soil contamination possibility from mining activities.Case Dazhou Lisen’s efforts for a “green safe intelligent and efficient” mining system

Bearing in mind the concept that “mountains rivers forests farmlands lakes and grasslands are a life community”

Dazhou Lisen a subsidiary of Southwest Cement has been actively exploring an “ecological mine restoration+”

model and practicing remediation during mining under the rule of “ensuring evergreen mountains”. In this regard the

company has planted herbaceous plants and flowers that regreen in different seasons and built a unique landscapeviewing pavilion successfully transferring “the abandoned mine to lucid waters and lush mountains and to invaluableassets”. To date more than 6.3 thousand trees 36 thousand bamboo plants and 1.2 thousand flowers have been

planted about 1.5 thousand kilograms of grass seeds have been sown. An ecological area of about 78 mu (around

52 thousand square meters) has been restored and every greenable place in the mine has been greened.In March 2024 Dazhou Lisen actively responded to CNBM’s green planting campaign – “Building a Green Homeland:Building Materials Empowering Carbon Peaking and Neutrality” by planting more than 4.8 thousand holly trees along

the mine roads continuously working on the mine’s green construction and highlighting its high-quality development

with green concept. In April 2024 Dazhou Lisen Mine was awarded as “Green Mine” by Sichuan Province.Restoration project of limestone mine ecology55 2024 Environmental Social and Governance Report Leading the New Chapter of Green Development 56

Case Dinghua Building Material supports the construction of beautiful villages by improving rural living Case Ecological restoration projects for the green development of minesenvironment

Longdong River Area located in Xingquan Community Xingquan Town Huaping County Lijiang City Yunnan In active response to China’s development concept of “lucid waters and lush mountains are invaluable assets”

Province is named after the river formed by water flowing out of karst caves. This area serves as a primary living Hunan Linli South New Material is committed to steering the mining industry towards the path of green developmentand agricultural zone for the local residents. Due to lack of planning Longdong River Area has long faced problems thus contributing to the construction of ecological civilization. Upholding the principle of “concurrent mining andsuch as dirty environment and river pollution which affect local biodiversity and the life quality of residents. regreening” the Company collaborates with the Chinese Academy of Sciences Hunan University Central South

University and Anhui University of Science and Technology to establish an integrated base for production academia

At the beginning of 2023 Xingquan Community proposed a beautiful village construction plan for Longdong River research and training. This initiative aims to restore the ecological integrity of mines enhance land productivity and

Area. Dinghua Building Material as a local company actively responded to the community initiative and donated explore a region-specific green restoration model.

100 solar street lights at the end of 2023. In the year Dinghua Building Material donated 100 tonnes of cement for

the community infrastructure renovation with a total investment of nearly RMB 300 thousand effectively supporting In the practice of ecological restoration the Company adopts the restoration method combining planting and sowing.the environmental improvement and infrastructure construction of the village. Specifically the Company innovatively uses the technical means of planting seedlings in nutrient bags and sowing

seeds to gradually establish ecosystems with natural succession capacity and realize the sustainable improvement

In October 2024 the beautiful village construction project in Longdong River Area was completed and put into of the ecological environment of the mining area. Since the establishment in 2019 the Company has completed the

use. The plan has improved the living environment of residents and demonstrated the harmonious coexistence of ecological restoration for a total area of 152 thousand m2 with a restoration rate of 100% effectively promoting the

biodiversity conservation and rural revitalization. restoration and reconstruction of the ecological environment of the mining area.With the outstanding results of green development Hunan Linli South New Material was invited to participate

in the Hunan International Green Development Expo hosted by the Department of Natural Resources of Hunan

Province. In the Expo the Company showcased its excellent achievements in mine ecological restoration and green

development fully demonstrating the exemplary and leading role of the Company in promoting the sustainable

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

Ecological restoration and soil and water conservation of mines

The Company has formulated and implemented a restoration plan of mine ecology and carries out work on the principle of

“concurrent mining and restoration” with a focus on greening and ecological integration around the mining area. The Company

has constructed ditches and retaining walls and launched soil and water conservation projects in mining slope areas thereby

effectively reducing the erosion of slopes by rainfall and the risk of soil erosion. In addition the Company increases the

proportion of electric mining vehicles used in mining and transporting reducing exhaust emissions and mitigating the pollution

to the surrounding environment. In the year the Company effectively reduced soil erosion and ecosystem degradation in the

mining area. As a result the ecological environment and natural landscape around the mining area gradually recovered to a

more stable condition fostering harmonious coexistence of the mining area and the surrounding ecosystems.57 2024 Environmental Social and Governance Report Leading the New Chapter of Green Development 58

Conservation and sustainable utilization of biological genetic resources Emission Compliance Management

The Company focuses on the conservation of biological genetic resources. Following the principles of sustainable utilization and

access and benefit sharing the Company carries out regular biodiversity monitoring in the mining area and around the project Tianshan Material attaches great importance to emission compliance management and regards it as an important part ofsite to identify and protect plants and animal resources of significant ecological value. The Company actively participates in the environmental management. The Company has established internal management policies such as the “Pollution Preventionearly warning and management of biodiversity risks and formulates special management programs for high-risk areas to reduce and Control Management System” and the “Pollutant Discharge Permit Management System”. As a result the Company’s

the potential impacts of its operations on biological genetic resources. The establishment of the biological genetic resource emission activities throughout operations comply with relevant laws and regulations and standards. In addition the Company

management system has enabled the Company to protect biodiversity through a professional and systematic approach. This actively implements diversified emission reduction measures and conducts waste discharge publicity and training to promote

approach also ensures that the habitats of key species are not significantly disturbed and promotes the sustainable utilization the sustainable development of society and the industry. In the year the Company’s pollutant discharge was in compliance

and long-term protection of biological genetic resources. with the requirements of relevant laws and regulations and no incidents of excessive pollutant discharge occurred. In the year

the Company did not experience any pollutant discharge incidents that had adverse effects on the health of employees or

Ecological impact management throughout the product lifecycle community residents nor was the Company subject to any significant administrative penalties or criminal liability as a result. The

Company’s environmental monitoring program and risk management measures were effectively implemented.To reduce the impact on ecosystems biological species and their habitats throughout the lifecycle of its products the Company

implements green management strategies in all aspects including product design raw material procurement manufacturing More Robust Waste Gas Management

transportation use and disposal. By promoting the construction of green mines and green factories we advance the application

of clean production technologies to reduce the discharge of greenhouse gases and pollutants. The Company introduces eco- The Company focuses on exhaust emission management carries out audits of waste gas management invests in independent

friendly materials in certain projects to reduce resource consumption and environmental burden. Green management measures development and introduction of advanced environmental protection processes which greatly cut down pollution emissions. The

have effectively reduced the ecological footprint of products throughout their lifecycle enhanced resource conservation and Company’s main waste gas pollutants include industry-specific pollutants such as nitrogen oxides (NOx) sulfur dioxide (SO2)energy efficiency and further solidified the Company’s position as an industry leader in sustainable development. particulate matter (PM) as well as controlled substances such as mercury specified in the “Basel Convention on the Control ofTransboundary Movements of Hazardous Wastes and Their Disposal”.We will continue to strengthen biodiversity conservation management optimize ecological and environmental protection

measures and foster the deep integration of biodiversity into corporate sustainable development. The Company is dedicated to The Company has formulated the “Key Periods of Atmospheric Pollution Control Work Plan”. According to the ultra-low emission

becoming an industry benchmark in ecological protection and green development and making greater contributions to global standards and implementation progress requirements of each region the Company has accelerated the ultra-low emission

biodiversity conservation. transformation of cement enterprises and implemented the upgrading and renovation projects of environmental protection

facilities represented by SCR denitrification tubes wet desulfurization and other technical routes.Tianshan Material’s key performance indicators related to the biodiversity assessment in 2024 In the year the Company signed the “Eco-environmental Protection Goal Responsibility Statement” with each regional company

specifying the target of reducing NOx SO2 and PM emissions per unit product in 2024. That is the emissions of NOx SO2 and

Key Performance Indicators Unit Data in 2024 PM per tonne of clinker would be decreased by 1.5% 0.8% and 0.6% year on year respectively. By the end of 2024 through

emission reduction measures such as ultra-low emission transformation control of sulfur content of raw combustion materials

and upgrading of existing dust collection equipment emissions of clinker NOx SO2 and PM had decreased by 7.86% 1.49%

Total number of operation premises \ 507 and 23.24% respectively. All emission targets were achieved in the year.Total area of operation premises m2 82063440 Exhaust emission management measures

Total number of operation premises conducting biodiversity impact

assessment \ 472 Ultra-low emission

and emission Conduct emission reduction technology transformation for new dry-process

Total area of operation premises conducting biodiversity impact m2 75440101 reduction cement clinker line to reduce NOx and ammonia escape emission concentration;assessment technology

Total number of operation premises with great impact on

biodiversity \ 0

Dust collection Implement dust collection bag expansion and transformation and optimize

Total area of operation premises with great impact on biodiversity7 m2 0 bag expansion and transformation production lines to significantly reduce PM emissions;

Total number of operation premises carrying out biodiversity

management plans \ 102

Total area of operation premises carrying out biodiversity m2 6312300 Denitrification Apply reliable denitrification technology to convert polluting waste gas into management plans8 transformation harmless gas and reduce waste gas emissions;

7 Total area of operation premises with great impact on biodiversity refers to the total area of mines and woodlands within the scope of the Company’s place

of business that may have a significant impact on biodiversity. Desulfurization Introduce compound desulfurization technology to effectively control pollutant

8 transformation emission concentration while ensuring the stability of kiln system operation. Total area of operation premises carrying out biodiversity management plans refers to the total area of the Company covered by the biodiversity

management plan.59 2024 Environmental Social and Governance Report Leading the New Chapter of Green Development 60

Case Zhejiang Cement adopts “P-N-SCR ultra-low emission technology” to facilitate innovative breakthroughs

The Company has established a management objective to specify that the Company shall discharge wastewater in strict

in carbon neutrality accordance with the pollutant discharge permit standards. In the year the Company built corresponding facilities for centralized

sewage processing and automatic monitoring equipment based on requirements of environmental impact assessment and

Zhejiang Cement continuously enhances energy conservation emission reduction and sewage discharge license. The Company also networked with the monitoring equipment of the ecological and environmental

green and low-carbon technology innovation and has launched the P-N-SCR ultra-low protection authorities to achieve real-time monitoring of sewage data. Meanwhile we have explicitly prohibited setting up

emission technology innovation project. The project integrates source emission reduction sewage outfalls in the protection zone of drinking water sources. All other established sewage outfalls will discharge sewage

process control and end-of-pipe treatment. Through the three core technologies of highly after processing in strict accordance with discharge requirements.integrated pipeline denitrification precise selective non-catalytic reduction (SNCR)

and innovative selective catalytic reduction (SCR) the project has built an efficient and By the end of 2024 the Company’s four wet aggregate production lines had been equipped with wastewater treatment systems.coordinated online pollution reduction and carbon reduction system. After adopting this The treated wastewater can be recycled to realize zero wastewater discharge.technology Jiande South a subsidiary of Zhejiang Cement saw a significant reduction

in NOx emissions from the kiln tail flue gas with the concentration dropping to 45 mg/

m3. The ammonia consumption per tonne of clinker was reduced to below 1.00 kg and Case 100% recycling of wastewater from mixing plants contributes to green development

ammonia escape was effectively controlled within 5 mg/m3. This resulted in an annual

reduction of 1100 tonnes of NOx and 2520 tonnes of CO2 emissions.Tonglu Benteng Building Materials actively practices the concept of green development and has launched a project

The project has achieved an organic integration of multi-stage collaborative governance for 100% recycling of wastewater from mixing plants. By jointly leveraging the sand and gravel separator and the bar

efficient emission reduction and energy saving and carbon reduction driving a screen grit chamber the project effectively intercepts and filters wastes and precipitates suspended matter to purifycomprehensive improvement in environmental performance and energy efficiency. Certificate of honor for “Top Ten Science wastewater. The quality of treated water is monitored in real time and used in concrete production after meeting theTherefore it has been honored with the “Top Ten Science and Technology Innovation and Technology Innovation Awards forCarbon Peaking and Carbon Neutrality standards achieving closed-loop management of the entire process.Awards for Carbon Peaking and Carbon Neutrality in Zhejiang Province in 2024”.in Zhejiang Province in 2024”

In recent years relying on independent R&D and management system reform the Company has continuously

In addition the Company conducts regular air quality monitoring to ensure that production activities do not have a negative impact on optimized sewage treatment and recycling technologies. By doing so the Company effectively achieves multiple

employee health and surrounding communities. goals such as recycling water resources reducing production costs and improving resource utilization efficiency.By the end of 2024 the project had cumulatively reused wastewater for 21291 times with an average of 1.44 m3

Strict Wastewater Management of wastewater recycled each time. This had resulted in a total water saving of approximately 30659 m3. The project

has significantly reduced the Company’s reliance on fresh water and contributed to meaningful achievements in

The Company keeps a watchful eye on the water use and indicator management in the production of cement products and applies digital energy conservation emission reduction and green transition.tools to monitor water consumption data in real time so as to minimize water waste. The Company’s main pollutants in wastewater

discharged are industry-specific pollutants reflected by indicators such as chemical oxygen demand (COD) and ammonia nitrogen

content.Wastewater drainage managementThe Company strictly abides by the principle of “clean water and sewage diversion rainwater and sewage diversion separate collectionand processing by quality” to ensure the scientific and environmental management of wastewater discharges.The Company effectively separates industrial and domestic wastewater at the source through a robust management system

and equipment control measures ensuring that all kinds of wastewater meet the discharge standards or can be reused after

appropriate treatment. At present all factories of the Company have been equipped with processing equipment for domestic

wastewater and all processed wastewater is reused. Wastewater of washing tanks from enterprises under the Company

operating commercial concrete business can be reused after collection and processing.To reduce the risk of rainwater runoff pollution the drainage system has been rationally planned to ensure that rainwater and

sewage are discharged separately. Water quality monitoring wells are set up as required before rainwater and sewage pipes are

connected to municipal rainwater and sewage pipes which can monitor the collection and discharge of rainwater in real time. In

the year the Company carried out special management for unorganized emissions and diversion of rainwater and sewage and

all potential risks investigated were rectified effectively enhancing the management of rainwater and sewage diversion.In accordance with the requirements of environmental impact assessment and discharge license the Company strictly

implements the separate collection and treatment of wastewater ensuring that the concentration discharge methods and total

volume of wastewater comply with environmental standards. To prevent hazardous substances entering the surrounding area

through rainwater runoff enterprises discharging wastewater containing heavy metals and toxic and hazardous substances

shall be equipped with rainwater collection facilities and shall not directly discharge rainwater so as to minimize the pollution to

natural water and soil.The Company taking into account the characteristics of wastewater employs a range of diversified treatment technologies

including physical chemical and biological methods to effectively remove hazardous substances from wastewater. The quality

of treated water is stable and meets the required standards for safe discharge or reuse. Such efforts further enhance the water

use efficiency. Treatment process for the zero discharge of wastewater

Processing Separate Rainwater Clean water

by category collection and sewage and sewage

diversion diversion61 2024 Environmental Social and Governance Report Leading the New Chapter of Green Development 62

Water quality monitoring and management Stronger Waste Management

To ensure water safety the Company has established a sound water quality monitoring and management mechanism. Based Tianshan Material actively promotes waste management focusing on the principles of “reduction recycling and harmless disposal” to

on this mechanism the Company conducts regular water quality testing to ensure the sustainable use of water resources during optimize waste classification and recycling. The Company highly values the management of waste resources generated from cement

production and operations. products manufacturing and standardizes the classification separation and recycling of wastes thereby protecting the soil environment

around the production line while reducing resource waste.Adhering to the principle of “transition of cement enterprises into urban solid waste purifiers” we adopt cement kilns to co-dispose

The Company annually engages qualified third-party professional organizations to conduct water of domestic wastes solid wastes and hazardous wastes. The co-disposal project closely integrates cement production and waste

quality tests on the extracted groundwater. These tests focus on whether the water quality meets treatment and utilizes the heat energy generated from the incineration of solid wastes for cement production and the “residue” after

the relevant national and local standards to ensure the safety and reliability of the water source. incineration as auxiliary raw materials for cement achieving zero-emission treatment of solid wastes while saving social resources. In Groundwater

monitoring 2024 the Company set and achieved a management target of 100% disposal rate for solid wastes and achieved this target.The Company solves the problem of industrial and urban waste reuse and disposal based on the technological progress of solid waste

The Company regularly carries out random sampling of production water taken from rivers and consumption and resource recycling. In this process the Company strictly adheres to relevant regulatory requirements for the treatment

sends the samples to internal or external laboratories for comprehensive testing. This enables of hazardous wastes that cannot be recycled. The Company ensures that such wastes undergo accurate identification standardized

the Company to monitor water quality changes in real time and promptly identify and address

Surface water classification and proper storage before engaging qualified third parties to conduct high-temperature incineration or harmless landfill

monitoring potential risks. treatment. This approach aims to minimize the potential impact on the environment and human health. Meanwhile the Company

has developed and released the “Safety and Environmental Protection Identification and Protection Standards” which clarifies the

requirements for hazardous waste management so as to ensure the standardization and traceability throughout waste management.To ensure the safe operation of production boilers and avoid water quality problems the

Company strictly treats the water used in boilers. Specifically the Company adopts the industrial By continuously optimizing the waste management process the Company has established 57 cement kiln co-disposal production lines

salt softening process to reduce water hardness prevent scaling and corrosion and ensure with an annual disposal capacity of 5.96 million tonnes. In 2024 the Company disposed of 1.17 million tonnes of hazardous wastes and

Boiler water efficient and stable operation of equipment. solid wastes through rotary kiln co-disposal thus continuously promoting waste reduction and recycling and supporting the green and management sustainable development of the Company.Reduction of water consumption In 2024

Faced with global water shortages and increasingly severe environmental challenges the Company actively responds to the

sustainable development strategy by continuously promoting water-saving management and technology innovation. In this way

the Company is committed to improving water use efficiency and reducing total water consumption.Company set and achieved， a management A total of million tonnes of hazardous solidtarget of 100% disposal rate for solid wastes 1.17waste was disposed of through rotary kiln co-disposal

Water-saving Meticulous Cultivation of

technology management water-saving

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

Through technology The Company employs We carry out water- Jiaxing Fengqiao South Concrete closely follows the government’s pace in creating a “waste-free city” and strictly

improvement and digital monitoring saving publicity and implementing its corporate responsibility for the prevention and control of environmental pollution from hazardous wastesequipment upgrade methods to track water training across the and solid wastes. Jiaxing Fengqiao South Concrete has established a steering group for the creation of a “zero-dischargethe Company use data in real time Company to enhance factory” set up a working mechanism with clear division of labor and well-defined rights and responsibilities and refined the

reduces unnecessary precisely analyze water employees’ water-saving work content.water consumption use efficiency at each awareness advocate a Jiaxing Fengqiao South Concrete continuously increase its investment in environmental protection using new sand and

and increases the stage and promptly water-saving mode in gravel separator and sewage reuse system to clean vehicles when they return to the factory. The system uses recycled

proportion of recycled identify and rectify work and daily life and wastewater for vehicle cleaning capable of cleaning over 36 m3 of leftover materials per hour. The sand and gravel

water in the production abnormal water use. establish a water-saving separated after cleaning are recycled for production and the wastewater is reused. In addition Jiaxing Fengqiao South

process maximizing management system Concrete strictly implements the diversion of rainwater and sewage. It has newly built a 210 m3 initial rainwater collection

the recycling of water with the participation of tank to ensure that the rainwater is discharged in compliance with required standards during heavy rainstorms. The wharf

resources. all employees. environment improvement project has been implemented to enhance the overall environmental hygiene there. Hoppers

have been equipped with spraying systems for dust suppression and spraying poles and dust monitoring systems have

been installed on both sides of the wharf so as to provide a dual guarantee for “zero-dust emissions” during the unloading

process. Ship wastewater reception tanks have been purchased to ensure that all ship wastewater is properly collected.63 2024 Environmental Social and Governance Report Leading the New Chapter of Green Development 64

Case Cement kiln co-disposal of solid wastes to build a “waste-free city” Case Pursuing green development to help create a “waste-free city”

Jiangxi Cement actively responds to the national call for the construction of ecological civilization and the recycling Shangchen New Materials is committed to developing circular economy. While saving energy and reducing

of solid wastes. It has successively completed the Nancheng South project with an annual disposal capacity of emissions it focuses on increasing the greening rate of the manufacturing process and technology thus helping build

100 thousand tonnes of hazardous wastes and solid wastes and the Sinoma Pingxiang project with an annual Fuzhou into a “waste-free city”.

disposal capacity of 26.4 thousand tonnes of municipal sludge. The projects fully leverage the unique advantages of

cement kiln co-disposal technology in the field of solid waste disposal contributing to improving regional ecological To solve the problem that the original dry-process sand production line could not dispose of the waste residue

environment and building a “waste-free city”. generated during aggregate production Shangchen New Materials has actively explored new processes and carried

out a technical reform to build a 1.4 million tonne wet-process sand production line for the disposal of abandoned

Compared with traditional solid waste disposal methods such as incineration the cement kiln co-disposal technology mines and waste residue. It has been calculated that compared with the dry-process sand production process the

has significant advantages such as low disposal cost strong operating stability less land occupation and high new process will increase the profit by about RMB 8 per tonne.recycling efficiency. Under the incineration conditions of high temperature (approximately 1450 °C) and long

retention time the incineration state of solid waste remains stable so that the organic components therein can Shangchen New Materials has upgraded the original dry-process sand production line to a wet-process one. By

be completely decomposed. This effectively prevents the generation of harmful gases such as dioxins and avoids implementing measures such as enclosing the belt conveyors and storage bins (sheds) and covering the transport

secondary pollution. In addition the inorganic components in wastes can be fully utilized as raw materials for cement vehicles with tarpaulins effectively eliminating dust emissions during production transportation and loading

clinker achieving harmless disposal reduction and recycling of solid wastes. processes. These measures have prevented dust pollution to the environment and achieved zero pollutant discharge.By the end of 2024 Jiangxi Cement had cumulatively treated 8530 tonnes of hazardous wastes 15267 tonnes

of non-hazardous solid wastes and 32387 tonnes of municipal sludge. This has significantly alleviated the

environmental pressure arising from hazardous wastes and solid wastes in the local area reduced the ecological

risks associated with waste landfill and incineration and effectively contributed to the improvement of regional

environment quality.Jiangxi Cement contributes to building a “waste-free city” Shangchen New Materials is dedicated to creating green factories and green mines65 2024 Environmental Social and Governance Report Establishing a New Talent Development Center 6667 2024 Environmental Social and Governance Report Establishing a New Talent Development Center 68

Fulfilling Talent Strategy Case Tianshan Material’s excess achievement in 2024 campus recruitment program

The Company is committed to building a diverse and inclusive workforce maintaining zero tolerance for any form of In the year Tianshan Material conducted targeted

discrimination or harassment thereby ensuring that every employee feels fully respected and supported. In strict compliance publicity to 75 universit ies to attract talents.with relevant employment laws and regulations we effectively protect the legitimate rights and interests of our employees. Throughout the year we organized and participated

Moreover we categorically prohibit the employment of child labor and forced labor. We uphold the principles of equality in more than 70 job fairs at key universities such

as Wuhan University of Technology Southwest

openness and impartiality in employment. We continuously refine our employee communication mechanism actively embrace University of Science and Technology and University

employee feedback and enhance their sense of identity and satisfaction. of Jinan. Through these activities we recruited about

580 outstanding graduates from universities all over

the country. Meanwhile echoing the national policies

Employee Recruitment and Retention the Company recruited 29 graduates from universities or native places in the western provinces such as

Xinjiang Tibet and Qinghai. These graduates were

allocated to key positions such as technology R&D

The Company abides by the “Labor Law of the People’s Republic of China” the marketing sales finance and human resources

“Labor Contract Law of the People’s Republic of China” the “Law of the People’s bringing fresh blood and vitality to the Company.Republic of China on Promotion of Employment” and other laws and regulations. We Campus recruitment of Tianshan Material in Southwest University of Science and Technology

also advocate the international initiatives for the protection of human rights such as

the International Labor Organization Convention and the United Nations Convention Company recruited

on Human Rights. Moreover we have established internal rules and regulations on 1617 new employees The Company expressly prohibits the employment of child labor and forced labor. The Company strictly reviews the identity salary and dismissal recruitment and promotion equal opportunities diversity anti- information of new employees to ensure that they are 18 years old or above. Meanwhile the Company follows the principle ofdiscrimination anti-harassment and other welfare benefits such as the “Recruitment equality voluntariness and consensus to ensure that all employees are employed voluntarily and to eliminate forced labor. If anyManagement Measures” and “Labor Contract Management Measures”. Based on violations of employment rules are discovered the Company will report to the Human Resources Department for a thorough

them we protect the legitimate rights and interests of our employees and treat them investigation. Following the investigation we will take appropriate measures in accordance with relevant laws and regulations

fairly and equitably. In the year the Company recruited 1617 new employees. which may include negotiating a solution and implementing compensation or indemnification. Furthermore the Company will

conduct in-depth analysis of the cause of the incident and provide education and training as well as necessary disciplinary

For recruitment and hiring the Company always adheres to the principle of fair competition and merit-based selection. We action to the relevant responsible persons. In the year the Company had no child labor or forced labor.standardize management procedures for hiring contract signing probationary management dismissal etc. Authentic accurate

and valid personal information is required to be provided by all new employees upon hire and will be verified by the Company. The Company clearly specifies employees’ working hours and leave hours to guarantee their rights to rest and leave.Candidates whose information is found to be false will not be hired. In doing so we protect the legitimate rights and interests of Management procedures of employees’ leave and rest have also been improved. For overtime employees overtime payments

both the Company and our employees and regulate employment conduct. will be made in accordance with relevant management regulations on employee salary.In the year the Company prepared and released the “Campus Recruitment Management Measures” and the “2025 CampusRecruitment Program” to clarify the recruitment process and responsibilities. In addition we have formulated detailed recruitment Diversity Equity and Inclusion

plan and job description. To enhance the efficiency and quality of talent recruitment and create more job opportunities the

Company has implemented the following measures:

In the year the Company strictly abided by the “Policy Statement of Human Rights” (“Policy of Human Rights”) and other internal

policies. This statement covers the operations of the Company and its subsidiaries suppliers and other partners. The Policy of

Human Rights includes the Company’s commitment to adhere to all internationally recognized human rights principles as set

forth in the “United Nations Universal Declaration of Human Rights” the “Declaration on the Protection of Human Rights” and

We have introduced the digital recruitment platform for efficient and intelligent recruitment the core conventions of the International Labor Organization. In the Policy of Human Rights the Company also upholds diversity

Introducing digital process. This platform integrates resume management online assessment and in employment and opposes discrimination guarantees equal pay for equal work and respects freedom of association for

recruitment

platform video interview which not only shortens the recruitment period but also improves the

employees.candidates’ experience and engagement.In order to ensure the effectiveness of the Policy of Human Rights the Company regularly identifies and assesses potential

human rights risks. The scope of identification includes the operation of the Company’s businesses upstream and downstream

value chain as well as new businesses (mergers and acquisitions and associates). Topics contain forced labor child labor

freedom of association collective bargaining equal pay for equal work and discrimination and involve a variety of groups

including employees women and children original inhabitants migrant workers contract workers and local communities. On

an annual basis we review the effectiveness of human rights management in accordance with the “Policy of Human Rights”

To improve the recruitment efficiency and accuracy we adopted the AI-based technology set targets and based on these continuously improve management capabilities. If violations of the “Policy of Human Rights”

Using AI-based to automatically conduct resume screening and preliminary interview this year to rapidly

recruitment tools such as child labor or forced labor are discovered we will immediately report them to the Human Resources Department for identify qualified candidates. The number of contracts signed through 2025 campus cause trace and conduct a comprehensive investigation. Following the investigation the Company will communicate with

recruitment increased by 5% compared to previous year. those responsible to find solutions including providing compensation in accordance with laws and regulations and will impose

administrative penalties on the violators. They are also required to participate in training on respecting employees’ rights and

interests to prevent recurrence.69 2024 Environmental Social and Governance Report Establishing a New Talent Development Center 70

Employee Communication and Engagement Protection of Employees’ Rights and Interests

Tianshan Material continues to improve the democratic management system in enterprises with the workers’ representatives The Company values the development of a diverse and inclusive culture. We

congress as the core. The Company strengthens the establishment and development of trade unions at all levels protecting regularly train all employees on diversity inclusion anti-discrimination and anti-

employees’ rights to know to participate to be heard and to oversee. This ensures smooth feedback for employees’ opinions harassment. We also explicitly prohibit harassment (including sexual harassment) In the year the Company

and suggestions. In the year the Company ensured the participation of employees in the decision making and management of and discriminatory behavior in the “Policy of Human Rights”. and all its subsidiaries

daily operations through the following ways:

Any employee who experiences harassment or discrimination can lodge a

complaint by submitting a letter to the suggestion box or reporting the situation

Appointment of worker directors and worker supervisors directly to the relevant leaders of the Human Resources Department either in

writing or verbally. The Company will organize the Human Resources Department

The Company has appointed worker directors and worker supervisors in accordance with the law. Their rights include to conduct a thorough investigation in collaboration with the Disciplinary Had a total of

listening to the opinions and suggestions of the workers representing them in exercising their rights to participate to be Inspection Department. Once the investigation is completed the complainant will

heard and to oversee. senior managersbe provided with a response either verbally or in writing. 1124

The Company places a high priority on safeguarding the rights and interests of among which female managers were

Improvement of trade unions female employees. We provide equal opportunities and treatment for women

The Company has established trade unions and equips them with appropriate part-time personnel to ensure their in key areas such as hiring training and promotion and ensure equal pay for

109

standardized daily operation. By the end of the year the trade unions had 54433 employees with union membership equal work. We also encourage and support female employees to develop their accounting for up to

rate of 98.9%. leadership and take up management positions. In the year the Company and

all its subsidiaries had a total of 1124 senior managers among which female 9.7%

managers were 109 accounting for up to 9.7%.Implementation of the workers’ representatives congress

The Company values and protects the rights and interests of local residents and we explicitly oppose employment discrimination

The Company has set up the workers’ representatives congress and held annual congress meetings to report to the on the basis of ethnicity race gender age and religious beliefs and employ them on an equal basis. The Company is also

representatives on the production and operation of the Company. In addition the Company collects opinions and committed to developing communities in countries other than China. In projects in countries like Zambia Nigeria and Mongolia

suggestions from all employees at the meetings. The business departments concerned then make sure that the opinions we actively engage in community development helping residents improve infrastructure and partnering with local communities

expressed and suggestions made are implemented. for shared growth.In 2024 Tianshan Material proactively tackled various challenges in labor relations management. The Company addressed

Improvement of factory affairs disclosure a significant number of issues related to employees’ rights and interests through amicable communication and robust internal

The Company discloses major corporate matters and various matters involving the interests of employees in a lawful mediation mechanisms. A small fraction of these issues was escalated to professional labor arbitration and judicial procedures.timely truthful and scientific manner and guarantees employees’ rights to know about important matters. Throughout the process Tianshan Material remained steadfast in its commitment to safeguarding employees’ rights and

interests fostering harmonious labor relations and fulfilling its corresponding responsibilities and compensation obligations

where necessary. Appropriate resources were utilized to ensure that the issues were properly resolved thereby underscoring

our unwavering dedication to creating a harmonious workplace.Case Effective implementation of the powers and functions of the workers' representative assemblies and the building of harmonious labor relations

Case Protection of employees’ rights and interests by Aksu Tianshan

In 2024 the Company revised the “Implementation Measures for the Workers’ Representatives Congress”. Thisrevision aimed to continuously strengthen the democratic management system in enterprises with the workers’ Aksu Tianshan firmly believes in the philosophy that “employees are the cornerstone of the enterprise’s survivalrepresentatives congress as the fundamental form ensuring that the workers’ representatives congress was held in and development.” It actively leverages the role of the workers’ representatives congress to safeguards employees’

a standardized manner. We also work to expand channels for employees’ suggestions strictly enforcing the proposal rights and interests and broadens public channels to make democratic management more transparent. Moreover

mechanism of the Group’s workers’ representatives congress and effectively implementing proposal handling and it strictly enforces attendance policies to ensure timely salary payments promptly pays all social insuranceexecution to actively promote harmonious labor relations. In the year the Company exercised and implemented a contributions to effectively protect employee interests and upholds a culture of care through “visits to the sicktotal of 789 powers of workers’ representatives congress in accordance with the law and Jiangxi Nancheng South congratulation on festivals holiday greetings mourning for the deceased and helps for those in need”. AksuCement Company Limited was awarded the “Demonstration Unit for Open and Democratic Management of Factory Tianshan organizes a variety of activities such as fun sports meetings Mother’s Day celebrations and workers’Affairs in Jiangxi Province”. representative congress to enrich employees’ lives. These activities strengthen employee unity.Honorary credential of demonstration

unit for open and democratic

management of factory affairs71 2024 Environmental Social and Governance Report Establishing a New Talent Development Center 72

Employee Salary and Welfare BenefitsTianshan Material strictly complies with the “Labor Law of the People’s Republic ofChina” the “Labor Contract Law of the People’s Republic of China” the “Social InsuranceLaw of the People’s Republic of China” and other laws and regulations. Based on themwe have established and improved internal policies such as the “Management Measuresfor Employee Salary and Benefits “Management Measures on Leave and Attendance”

and “Management Measures for Benefits of Headquarters Employees”. We are dedicated

to developing a fair rational and competitive compensation and welfare benefits system

to ensure that all employees receive the treatment they deserve.Salary and Performance Management Employee Benefits

Tianshan Material has formulated internal policies such as the “Performance Management Measures” the “Measures for Tianshan Material provides employees with diverse welfare benefits and has formulated internal policies such as theTenure System and Contract-based Management for the Manager-level Personnel of the Company” the “Evaluation Measures “Management Measures for Employee Salary and Benefits” and the “Management Measures for Benefits of Headquartersfor Business Performance of Manager-level Personnel of the Company” and the “Implementation Measures for Annual Employees” to safeguard employees’ legitimate rights and interests. We provide work meals health checkups enterprisePerformance Evaluation of Departments and Employees at Headquarters”. Building on these documents the Company has annuity and other benefits and conducts activities such as high-temperature care sick care funeral sympathy and wedding and

set up a multilevel and grade-based performance management system using a variety of methods to manage and evaluate birth blessings for our employees. The Company has established a Dietary Committee to actively listen to employee feedback

employees’ performance. on issues related to catering continuously improve services and ensure that employees are provided with healthy nutritious

and delicious food.● The manager-level personnel are subject to the tenure system and contract-based We also take care of our employees’ physical and mental well-being. We provide fitness equipment and organize lectures on

management and sign the Letter of Responsibility for Business Performance during the mental well-being irregularly to enhance employees’ physical health and help them reduce stress. With these efforts we strive to

Manager-level Term Letter of Responsibility for Annual Business Performance and Job Appointment create a healthy energetic and positive workplace.personnel of the

Company Agreement. Their tenure and annual business performance evaluation are implemented

in accordance with the signed Letter of Responsibility for Business Performance with

evaluation indicators divided into organizational and individual indicators. Case Sinoma Yunfu advanced the development of healthy enterprise to safeguard employees’ physical and mental health

Sinoma Yunfu highly values the physical and mental health of its employees and provides annual occupational

● The department heads at the Company’s headquarters are subject to annual evaluations health checkups. The company has upgraded the noise control technologies for production equipment and working

with results contingent upon annual evaluation results the completion of annual environment significantly enhancing operating conditions. Moreover the company has installed fitness facilities

department KPIs and key work debriefing review and department satisfaction.Middle-level promoted healthy eating habits and provided professional psychological counselling services. It has also organized

cadres and ● The department heads of regional companies and member enterprises are evaluated a series of health knowledge activities including health skills training seminars and post first-aid skills competition.employees of the monthly or annually by their respective companies based on functional divisions key work These initiatives have improved employees’ physical fitness and reduced their stress. For its efforts the company

Company arrangements and established evaluation methods. has won the title of “Healthy Enterprise in Guangdong Province” for four consecutive years and four employees

Other personnel are evaluated monthly or annually by their respective departments based were awarded “Occupational Health Expert in Yunfu”. Through these comprehensive measures the company has ●

on key departmental tasks job responsibilities and established evaluation methods. fulfilled its corporate responsibility to safeguard employees’ physical and mental health facilitating the healthy and

sustainable development of both the company and its employees.Tianshan Material pays salaries to employees in full and on time based on their positions job performance and the Company’s

salary policies. The Company makes reasonable personnel changes based on business development needs and employees’

circumstances to ensure the efficient operation of the team and meet employees’ career development needs. The Company

signs labor contracts or agreements with flexible employment personnel in accordance with laws clarifying the rights and

obligations of both parties to ensure that their legitimate rights and interests are protected. In the year the Company optimized

the performance evaluation plan and the salary standard for annualized compensation employees and strengthened the linkage

between performance evaluation results and salary payment.To share the fruits of the Company’s development with employees the Company continuously improves its salary incentive

policies and has established a salary system that primarily focuses on market-based incentives supplemented by medium- and

long-term incentives. For employees below the management level the Company implements medium- and long-term incentive

programs through various forms such as equity incentives excess profit sharing and phantom equity.73 2024 Environmental Social and Governance Report Establishing a New Talent Development Center 74

Employee Training and Development Employee Training SystemThe Company has formulated and implemented the “Training ManagementTianshan Material places great emphasis on employee growth and development. To this end we have established a professional In 2024 Measures”. We have also established a three-tier (i.e. the Company

platform for qualified personnel management at all levels creating more opportunities for employees to learn and improve through headquarters - regional companies - member enterprises) training

diversified training programs and clear promotion channels. The Company also gives employees a platform to display themselves management system which defines the full process from training needs

and helps them unlock their potential thereby achieving the mutual growth. analysis to effectiveness assessment. This system ensures systematic and

standardized training.Employee Promotion Mechanism The Company follows the principle of “Three Tiers and Three Definitions”9and a training method of “mainly internal training sessions supplemented by 96.57% of employees wereThe Company has built a competency model in the Company headquarters regional companies and member enterprises. external training sessions”. By fully utilizing resources at all levels we have included in the training

By following the principles of introducing systematically selecting competitively cultivating comprehensively and assessing established a multi-channel multiform multilevel employee growth training

incentively a platform for qualified personnel management at all levels has been built step by step to meet short-term and long- platform with special emphasis. In this way we can continuously cultivate

term qualified personnel needs for business development. Meanwhile the Company has improved the career development system professional talents and improve employees’ skills. Relying on the three- A total of 1.222 million class

by developing differentiated promotion standards and channels for managerial and technical positions. This allows all employees tiered training system the Company closely aligns its training efforts with the hours

to follow a development path that matches their job characteristics and clearly sets out their career development prospects. core training plans. Departments at all levels are responsible for planning

and implementing corresponding training programs. Training formats include

on-site training online training and other forms. The training content covers The completion rate of key training

MMaannagaegmemenetn ste sqeuqeunecnece a wide range of areas including functional management professional programs was

technology safety and environmental protection dual-carbon field and 100%

multi-skill training for front-line employees. In 2024 96.57% of employees

were included in the training with a total of 1.222 million class hours. The

Rank (from low to high) Promotion requirements completion rate of key training programs was 100%.Tianshan Material continues to improve its training system. In the year the

Assistant supervisor Employees below middle-level deputy level are performance-oriented. Their highlights of employee training included:

senior manager assistant immediate department heads propose promotion applications based on their

general manager middle- individual performance which are then reviewed by the Human Resources

level deputy middle-level Department and approved by the Company’s leadership. For middle-level

chief assistant president deputies and above cadres the Company adheres to the principle of combining

management team Party supervision with market-oriented employment mechanisms. In addition

deputy and management To strengthen team building enhance employees’ skills and overall quality and meet

team chief we have optimized the cadre training selection and appointment mechanism. Operation of two the Company’s strategic development needs Tianshan Material has established the

We continue to step up efforts to promote young and professional talents who training bases Changxing Training Base and an operating entity in Huzhou Zhejiang. Additionally

have worked at the grassroots level and achieved market success to the cadre to further optimize the layout of the basic building materials business advance the

team providing them with broader career platforms and more development strategy on developing a quality workforce and improve the talent development system

opportunities. Meanwhile we innovate the cadre management mechanism and Tianshan Material established the Southwest Cement Training Center and Tianshan

fill the cadre team with professionals and promising young people. Material Training Center Deyang Base in Deyang Sichuan on March 26 2024.The Company fully leverages the geographical advantages of the Deyang Base to

comprehensively expand the coverage of training programs. Both bases have operated

effectively for over 200 days.Technical sequence: The Company implements a “dual channel” mechanism for technical talents

Ranks in professional Ranks in operational Promotion

sequence sequence requirements

The Company has set up a regional training working group mechanism to jointly compile

Technician assistant Junior technician The appointment to professional sequence Compilation of an operation manual for training demand survey training implementation and training operation manual

engineer engineer intermediate technician and operational sequence is determined evaluation. The aim is to ensure standardized and consistent training.deputy chief engineer senior technician master based on the professionalism and

chief engineer and technician senior master operational skills of employees including

expert engineer technician and special ethics job fulfillment performance and

master technician professional skills

9 “Three Tiers and Three Definitions”: “Three Tiers”: the Company headquarters - regional companies - member enterprises “Three Definitions”: defined

location defined position and defined intention.75 2024 Environmental Social and Governance Report Establishing a New Talent Development Center 76

Case Tianshan Material advanced human resources system training course Occupational Health and Safety

Tianshan Material employs a practical training approach for its Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era the Company implements the critical

advanced human resources system training course. The four- deployment of production safety and ecological and environmental protection forming the “22532” management idea: Adhering

month training includes four offline and four online seminars to “Two First” believing in “Two Can” highlighting “Five Enhancements” accelerating “Three Shifts” and achieving “Twothat closely focus on the four key human resources issues Goals”. Through the application of the Group’s intelligent production safety management system and the ultra-low emission

i.e. performance improvement talent introduction talent transformation the Company strengthens the management at source. With a focus on the performance of responsibilities the

development and organization and personnel optimization. Company promotes the transformation of the safety and environmental protection management model to pre-event prevention

Corresponding action learning topics are tailored to these to support the high-quality development of the Company.issues. The training is supplemented by five professional

courses including strategic human resources planning

organizational change and lean human efficiency system. The

aim is to deepen participants’ understanding and application

of the four core topics through systematic knowledge delivery 2 2and practical exercises. This approach comprehensively Pursuing the value concept of “people Zero work-related fatality and zeroenhances the professional quality of the participants and first and life first” “Two first” “Two goals” environmental penalties

boosts the organizational and personnel efficiency.

2 “22532” management 3

Upholding the management “Two can” idea “Three major The response of leaders shifts fromThe key performance indicators for talent attraction and retention in the Company in the year are shown in the table below: orientation of “all accidents can be shifts” words to deeds the roles of functional

prevented and all accidents can be departments shift from participants

avoided to responsible parties and the roles“Five of employees shift from operatorsenhancements” to managers of their respective

Training hours per Total expenses for Employee Voluntary turnover rate territories.employee (all types employee training and satisfaction (include voluntary turnover 5

of training) development and retirement) Safety quality enhancement of enterprise leaders safety and environmental protection

23 4270.2 98.5% 6% managers and team leaders; employees safety skills and consciousness enhancement; on-site protective equipment and facilities enhancement; rectification of safety hazards

Hour/person RMB 10000 (like leakage of gas or liquid) and enhancement of on-site management; and renovation and optimization of on-site protective equipment and facilities

The Company has formulated the “Occupational Health and Safety Policy Statement” (“Policy Statement”) and other internal

policies. This Policy Statement applies to all employees of the Company headquarters holding subsidiaries suppliers

employees of contractors associates and other business partners. The Board and management together regularly review and

improve the implementation of the Policy Statement. The content of the Policy Statement includes the Company’s commitment

to setting quantitative targets for occupational health and safety to improving the related management system and to

encouraging employees or their representatives to provide feedback or suggestions.The Company has set quantified targets of zero work-related fatalities zero new case of occupational diseases and a minor

and serious injury rate of ≤ 1‰. We also actively promote the safety culture and effectively fulfill our safety management

responsibilities. In the year the Company had 0 new cases of occupational diseases and achieved a minor and serious injury

rate at ≤0.015‰. The expenditure on production safety amounted to RMB 1204 million.In the year

Company had 0 new cases Achieved a minor and Expenditure on production safety serious injury rate at amounted to RMB

of occupational diseases

≤0.015‰ 1204 million77 2024 Environmental Social and Governance Report Establishing a New Talent Development Center 78

Production Safety Management System Production Safety Management Measures

We effectively fulfill our safety management responsibilities and continuously improve our safety management system. Tianshan The Company continuously promotes normalized standardized and technological management and the improvement of production

Company has formulated internal rules and regulations such as the “Production Safety Responsibility System” the “Production Safety safety. We seriously investigate hidden safety dangers and risks and implement safety management responsibilities. In 2024 theManagement Regulations” the “Occupational Health Management System” and the “Health and Safety Management System of Company formulated the “Measures of Tianshan Material for the Management of Production Safety Incidents” and the “Measures ofRelated Parties”. With these policies we clarify the basic principles organizational structure division of responsibilities investigation Tianshan Material for the Management of Ecological and Environmental Protection Accidents”. These policies are aimed to optimize

and handling and emergency response requirements for production safety so as to standardize our management process. the grading standards for production safety and ecological and environmental protection accidents standardize accident reporting

procedures and clarify the accountability rules in case of any administrative penalties. The standards also help foster and enhance

The Company has thoroughly revised the existing indicator system dividing the indicators into five categories including production safety awareness at all stages of production thereby continuously mitigating production safety risks.safety targets control indicators binding indicators leading indicators and no-no indicators. For the production safety targets the

Company is determined to avoid production safety accidents of Class B or above and comprehensively promote the transformation of

production safety and environmental protection management to pre-event prevention. Key control indicators include zero major safety

accidents very low serious injuries efficient rectification rate of general and major safety hazards rectification rate of production safety Implement production safety responsibilities

problems and zero new case of occupational disease. The binding indicators specify the proportion of certified safety management

personnel the pass rate of safety education and training the proportion of manufacturing enterprises that have implemented the The Company works to better secure the implementation of production safety responsibilities andintelligent production safety management system and the warning response rate and KPI score of the system. A Category B or above enhance the safety awareness of all employees. In alignment with the principle of “horizontal to theaccident or concealing any accident or major negative public opinion event is considered a no-no indicator. edge and vertical to the bottom” Tianshan Material signs a letter of responsibility for production

safety and occupational health goals with its member companies clarifying the responsibilityThe Company has established a three-level safety management system encompassing “Headquarters - Regional Companies - Member of every party involved for production safety. The Company has included contract workers The AI alertEnterprises” clearly defining the safety management responsibilities at all levels to ensure efficient communication across all levels. and temporary workers in its unified management. Detailed policies are in place to clarify the comprehensive

The system enforces “supervision and random inspection” at the headquarters level “inspection and mutual inspection” at the regional responsibilities of the safety management department the business management department and response rate

company level and “review and self-inspection” at the member company level forming a comprehensive safety management system the local management department as a guarantee for production safety.that guarantees the orderly advancement of safety work. 100%

The Company has established a quarterly work meeting policy and a key work scheduling and

The Company has established the Production Safety Management Committee (“Safety Committee”) at the headquarters. It is the top reporting mechanism for the safety management system of the headquarters and regionaldecision-making body overseeing the Company’s production safety and occupational health with the Company’s main responsible companies. In 2024 a total of three quarterly work meetings were held to carry out “monthlyperson serving as the director main persons in charge as deputy directors and department heads as members. Responsibilities include implementation and quarterly scheduling” for a series of key matters including the investigation

the deployment and oversight of the production safety related work. The Safety Committee holds meetings every quarter to learn the and rectification of hidden dangers of major accidents the investigation and rectification of

state’s production safety policies summarize the production safety work in the last quarter and deploy the key jobs for the next quarter hidden dangers in high-altitude corridors general managers’ public classes communication and

to ensure robust implementation of safety responsibilities. conversation with cadres and near incident reporting. In addition the Company has vigorously

developed CNBMG’s intelligent safety production management system and by the end of 2024 a

The Safety Committee has offices that are led by the Company’s Safety and Environmental Protection Department. Responsibilities total of 279 companies had launched the system. During the reporting period 322731 hazardous Rate of safety

include implementing the decisions of the Safety Committee and the routine management. Each regional company also has its own operations were reviewed and approved through the system; the AI alert comprehensive response hazards detected

safety committee and an independent safety and environmental protection department with dedicated staff responsible for regional rate reached 100%; 137570 potential safety hazards were detected; and the rate of safety hazards and eliminated was

safety management work. Each member company sets up their own Safety and Environmental Protection Department according to the detected and eliminated was 99.81%. In 2024 the Company conducted external safety audits foractual needs with sufficient staffing for safety and occupational health management to ensure the effective safety management within 129 entities in accordance with the “‘1+N+X’ Three-Year Audit Plan for Safety and Environmental 99.81%the enterprise. Protection” with a completion rate of 91%. Regional companies and member companies completed

internal audits for 196 entities in total and started to see the initial results of the audits.Enhance implementation of the production safety

management system

The Company attaches great importance to the implementation of the safety system. In 2024

the Company deployed sufficient safety management personnel to enhance safety management

including 1540 full-time and 3704 part-time employees. Among these persons 779 were

certified safety engineers (124 newly obtained certificates and 45 obtained qualifications foradditional disciplines). In addition the Company revised the “Measures of Tianshan Material forthe Management of Hazardous Operations” which defined the key links and processes such as

operational risk identification control measures emergency response and monitoring filling the

gaps in the management of hazardous operations. The Company also carried out comprehensive Achieving

safety performance assessment in 2024. Jiangxi Cement and Guizhou Cement were assessed for

their performance and held accountable for substandard items with a range of safety indicators 100%

directly linked to the performance of these regional companies.standardized production

In 2024 with the continuous implementation of the standardized production safety management safety management

system as the core the Company further promoted the standardized operation and continuous for production-oriented

improvement of the system. We newly recognized 38 enterprises that had standardized production enterprises

safety management and had 68 entities passing the due re-assessment achieving 100%

standardized production safety management for production-oriented enterprises.79 2024 Environmental Social and Governance Report Establishing a New Talent Development Center 80

Carry out special rectifications for safety hazards Guarantee employee health and safety

Employee health is always our first priority. The Company has formulated internal policies and regulations to fully guarantee

The Company organized four safety training courses on the determination of major accident hidden dangers to improve the employees’ health such as the “Occupational Health Management System” the “Personal Labor Protective Equipmentability of personnel at all levels to investigate and rectify major accident hidden dangers. We invited experts from the Safety Management System” and the “Management System of Health and Safety of Related Parties”. In 2024 the Company achieved

and Environmental Protection Research Institute of China Testing & Certification International Group Co. Ltd. (CTC) to conduct a 100% coverage of the ISO 45001 Occupational Health and Safety Management System Certification for all entities at all

training on the hidden dangers of major accidents identified in the “1+N+X” safety audit. Meanwhile the Company has prepared levels.and issued the “Three-Year Action Plan of Tianshan Material for Addressing the Root Causes Endangering Production Safety

(2024-2026)” and organized supervision and inspection actions for the detection and rectification of hidden dangers of major The Company continues to step up occupational health management. We strictly implement the “three-simultaneous”accidents with 100% of the hidden dangers rectified on schedule. In 2024 the Company organized special actions for the management of production safety and occupational health for “new renovation and expansion” projects ensuring that the safety

investigation and rectification of hidden safety hazards in construction projects limited space operations high-altitude corridors and occupational health protection facilities are designed constructed put into production and used at the same time as the

and mines and achieved a 100% on-schedule rectification rate. main project. In response to the occupational health protection initiative Tianshan Material fulfills its principal responsibilities

as a corporate. This includes continuously improving internal rules and regulations related to workers’ health strengthening

The Company pays close attention to overseas production safety management and makes efforts to build a Chinese- occupational health supervision and management and paying work injury insurance in full and on time thereby protecting

foreign integrated safety and environmental protection culture with the Company’s characteristics. In 2024 the Company employees’ health and other rights and interests. In addition the Company continues to improve its infrastructure. All necessary

saw remarkable improvement in its safety and environmental protection management the intrinsic safety of production sites technical measures such as enclosure spray sprinkling and sound insulation are taken to reduce the intensity of occupational

and the safety awareness and skills of employees. This was demonstrated by the achievement of the five “zero” goals i.e. disease hazards. Efforts are also made to create for employees a clean and hygienic work and production environment boasting

zero production safety accidents zero ecological and environmental protection accidents zero security incidents zero new rational layout and well-equipped facilities to promote the sustainable development of the Company. In 2024 CUCC Juxian

occupational disease cases and zero administrative penalty on safety and environmental protection. was recognized as a “National Demonstration Enterprise for Safety Culture Construction”. Shanya South Guilin South CUCC

In 2024 Tianshan Material continued to strengthen safety and environmental protection inspection and research. The work was Qingzhou and CUCC Jining passed the re-assessment of “National Demonstration Enterprise for Safety Culture”. Huaikan

done in a mode of “hearing reporting checking records inspecting the site interviewing the staff discussing safety matters and South and CUCC Xichuan were recognized as Winner Companies in the National “Ankang Cup” Competition. The Safety andorganizing exams” adopting a four-in-one inspection mechanism of “inspection direction training and service”. The inspection Environmental Protection Office of Chuzhou Huadong Materials and the Electric Team of CUCC Taishan were selected as

and research covered 32 member companies of regional companies including GUCC and South Cement aiming to achieve the Winner Teams in the National “Ankang Cup” Competition. CUCC Xintai Old Town Southwest Sinoma Hengda and Sinoma

goal of “focusing on individuals to drive overall advancement and enhancement”. Yunfu were awarded the “Provincial Health Enterprises”.The Company attaches high importance to the prevention and control of occupational diseases. We prevent control and reduce

occupational hazards in the following ways:

The Company continues to improve the facilities and first-aid equipment for dust proof anti-

poison noise reduction and emergency management at production workplaces while strictly

Sinoma Cement is highly appraised by the host government for its outstanding performance in health safety ecological and complying with the requirements of labor protection to equip employees with work clothes

environmental protection as well as social contribution greatly improving the overseas brand image of the Company. China helmets safety shoes gloves anti-noise earmuffs anti-dust masks and other protective

National Building Material Zambia Industrial Park was awarded the “Africa Safety Award for Excellence (AfriSAFE)” Mengxin equipment with reliable quality. In addition the Company requires every employee exposed

Company was awarded the Best Award of “Health and Safety” in Mongolia and the head of the Safety and Environmental to occupational hazards to sign the “Occupational Health Notice” ensuring that they all

understand the relevant risks and safety measures.Department was awarded the “Safety Contribution Award” in Tuv Province.The Company annually provides a health checkup package for all full-time and

outsourced employees covering internal medical test surgical test eye tests

(including the slit lamp exam) E.N.T exam dental exam and ECG exam. Besides

the Company adjusts the items based on the age and sex of the employees to

ensure targeted and comprehensive coverage of health checkups.In accordance with the “Law of Occupational Disease Prevention” and the

“Regulations on Supervision and Management of Occupational Health” the

Company regularly organizes occupational disease examinations for employees

exposed to occupational hazards to understand their health condition. For

employees with occupational contraindications the Company will arrange a

AfriSAFE Best Award of “Health and “Safety Contribution Award” of Tuv transfer for them. Meanwhile the Company works with third-party institutionsfor Zambia Safety” in Mongolia for Province to the Head of the Safety to regularly detect occupational hazards in the workplace assess the risk level

Industrial Park Mengxin Company and Environmental Department and take corresponding measures to ensure a safe working environment.The Company strictly complies with laws and regulations pays work injury

insurance premiums for employees every month and reasonably arranges the

working hours of employees to avoid overworking and safeguard the physical and

mental health and legitimate rights and interests of employees.81 2024 Environmental Social and Governance Report Establishing a New Talent Development Center 82

Tianshan Material places emphasis on the health and safety management of outsourced employees and applies the same Application of intelligent production safety management system at Aksu Tianshan Duolang

occupational safety management standards for them as for internal employees to ensure that they enjoy the same safety Case Cement Co. Ltd.protection. The Company organizes safety education and training for outsourced employees before they take on the job and

conducts evaluation on their learning results and the safety risks to ensure that the outsourced employees fully understand the

potential risks and safety requirements in the working environment. To avoid safety

hazards arising from

To ramp up oversight of contractors’ ability of health and safety management the Company requires each member enterprise the application of new

to strictly review the safety management qualification of contractors. At the contract signing stage the Company incorporates technologies and

occupational health and safety clauses into the contract and requires contractors to sign the “Safety Agreement” to clarify equipment and properly

their safety management responsibilities. Before a project starts construction the unit in charge of the project shall review the solve the contradictions

safety certificates tool lists and other materials provided by the contractor and then submit the materials to the safety and between people

environmental protection department for verification. The construction permit is issued only after the verification is passed. In this vehicles facilities and environment within the

way we guarantee the health and safety of outsourced employees. If a contractor is found with violations of safety management factory Aksu Tianshan

regulations the Company will impose appropriate penalties in accordance with the terms of the “Safety Agreement” to ensure Duolang Cement Co.effective implementation of safety management measures. Ltd. has established a

comprehensive dual

The number of work-related fatalities and the lost time injury frequency rate (LTIFR) of the Company and contractors in 2024 are prevention mechanism

shown in the following table: for hidden hazards

investigation and risk

management and

Number of work-related fatalities in Lost time injury frequency rate (employees) control in accordance

production safety liability accidents with the GB/T33000

(excluding related parties) 0.0182 Case (s)/ million working hours standard. This makes the Company a

0 Person(s) demonstrative enterprise of production safety

management in the

Number of work-related fatalities (contractors) Lost time injury frequency rate (contractors) industry. The Company

0 also uses artificial Person(s) 0.0209 Case (s)/ million working hours intelligence technology

to identify and monitor

risks and hidden

During the year the company's employees invested in safety as follows: dangers in various types

of production.During the year the company's

employees invested in safety as follows: RMB 10000 4372.42

Investment in employees' work safety

liability insurance RMB 10000 70601.80

Coverage rate of employees' work-related

injury insurance % 96.69 Build up emergency response capability

Coverage rate of employees' work safety

liability insurance % 41.11 The Company has established a risk identification and assessment mechanism to strengthen risk management and control. In

accordance with the “Notice on the Recording and Reporting of Near Accidents” the Company summarized a total of 311 near

Enhance safety management with advanced technologies accidents and prepared printed and released 10 issues of the “Safety Incident Risk Alert”. Meanwhile the Company actively

carries out emergency drills. In 2024 our member companies carried out a total of 4604 emergency rescue drills with 67540

The Company continues to advance the construction of intelligent safety system. We have established a regular coordination participants. The drills tested the rationality and effectiveness of emergency plans and enhanced the ability of emergency

meeting mechanism and hold bi-weekly meetings on project construction advancement. We also actively promote the response teams to handle emergencies effectively improving the emergency management level of the Company.construction of cement grinding commercial concrete and aggregate systems. In 2024 the Company completed the construction

of intelligent production safety management system for 146 companies producing commercial concrete and aggregate 119

mines and 68 grinding companies including five cement kiln companies newly completing the system implementation. The In 2024

Company comprehensively promotes the application of the Group’s intelligent production safety management system and

intensifies online inspections. The companies found with deficiencies are urged to rectify the problems and address the safety

hazards and violations in a timely manner.Tianshan Material continues to enhance safety management with advanced technologies. We encourage companies to adopt Our member companies carried out a total of Emergency rescue drills with

advanced and applicable safety technologies and promote the application of new equipment process and standards forproduction safety. The Company also implements the strategy of “achieving mechanization and automation to reduce human 4604 emergency rescue drills 67540 participantsinvolvement”. Digital and intelligent means are adopted to prioritize prevention and continuously enhance the work of production

safety.83 2024 Environmental Social and Governance Report Establishing a New Talent Development Center 84

Production Safety Publicity Safety publicityThe Company prioritizes safety culture development. To this end the Company proactively organizes a variety of safety culture The Company places utmost importance on production safety and risk prevention training. We have established a “level-exchange initiatives and training programs all aimed at continuously reinforcing employees’ safety awareness. Through regularly category- and personnel-based” mechanism for safety and environment protection training. Moreover we continuously enhance

safety knowledge seminars emergency drills and case study sharing sessions the Company strives to educate employees on employees’ safety knowledge through the approach of “mandatory examination and training through examinations”.safety practices deepen their understanding of potential safety risks and improve their ability to respond. Moreover we actively

encourage employees to engage in the development of safety culture fostering a collaborative effort to build a safe and healthyworkplace. “Safety director talks Certified safety engineer Adjustment of safety andabout safety” initiative training program environmental expert pool members

Safety culture development A total of 335 participants engaged in Two sessions of the certified safety To fully leverage the technical a training and teaching competition engineer training program were support and innovative contributions

with 50 outstanding safety and successfully held with a total of of specialized talent in safety

The Company keeps fostering a safety culture. We organize related activities during the “Production Safety Month” including environmental internal trainers 278 participants. These programs and environmental initiatives the

safety quizzes to enhance employees’ awareness and ability of identifying and preventing safety risks. In the current year recommended from regional effectively enhanced the expertise Company dynamically adjusted the

companies. One specialized training of professionals in the field of safety and environmental expert poolsession for internal trainers was environmental safety management in accordance with the “Tianshanconducted aimed at cultivating a high- thereby strengthening the Company’s Material Safety and Environmentalcaliber internal trainer team. technical foundation in environmental Expert Management Policy”. Currently

The Company compiled and released a total of 13 issues of the “Safety and Environmental Protection Work Briefing” and safety management practices. the pool comprises 69 safety experts

introducing the excellent practices of member enterprises in production safety in a bid to drive member enterprises to and 38 environmental experts.rapidly improve their safety management capability by learning from each other.Based on the common problems typical industrial accidents and seasonal risk characteristics found during inspectionsthe Company timely prepared and released 10 issues of “Warnings for Safety and Environmental Protection Accident Case Company-wide safety and environmental examination initiative at Aksu TianshanRisks” to warn enterprises at all levels to enhance risk control and prevent the presence of accidents.The Company prepared and released “Compilation of Production Accidents in the Cement Industrial” and “ProductionAccident Cases in Commercial Concrete Enterprises” covering 16 accidents of 379 types. The Company required all To enhance company-wide safety awareness Aksu

member enterprises to learn a lesson from those accidents and create a stable and favorable environment for safe Tianshan organized a specialized examination through

production based on their own conditions. its intelligent production safety management system. The

examination featured role-specific questions enabling

The Company has established the “zero violation” feedback mechanism to encourage employees to engage in safety employees to master knowledge relevant to their

management. In addition to the mechanism the Company also promoted the safety culture through safety talks and respective positions. This initiative aimed to enhancethe public safety lecture by the general manager. In this way our employees have changed their mindset from “pursue employees’ grasp of production safety knowledgesafety for the sake of requirements” to “pursue safety for the sake of ourselves”. empowering them to integrate safety knowledge into their

daily operations and ensuring the practical transformation

and utilization of this knowledge.Case Huanan Material’s Production Safety Month to fortify defense lines for safe production Case Huadong Material’ Suzhou Commercial Concrete Operating Platform – Key personnel safety skills enhancement program

To enhance production safety and flood prevention efforts Huanan Material launched a company-wide production safety To strengthen the demonstrative and supervisory role of “key personnel” in enterprise safety management Huadong

month under the theme of “everyone aware of safety and able of emergency response - ensuring clear lifeline”. The Material partnered with the CTC Safety and Environmental Protection Science Research Institute to provide comprehensive

initiative included safety lectures case studies hazard identification and emergency drills. Additionally the company’s training for 120 key safety personnel from the company and its external partners. The training covered legal and regulatory

Safety and Environmental Protection Department organized targeted training on safety management for related parties requirements hazard identification and risk grading and control dangerous operations and emergency response to

strictly implementing the “Ten Requirements for Safety Management of Related Parties”. This safety production month accidents. Additionally Huadong Material organized hands-on practical training sessions during inspections of key facilities

activities to enhance the safety awareness of all personnel safety literacy to lay a solid foundation for safe production at the Suzhou site including the 10kV power room transformer room mixing building and dock. This comprehensive

work; at the same time strengthen the implementation of the responsibility of the relevant parties to manage the work has training program enhanced the safety knowledge and hazard detection capabilities of the key personnel. It also deepened

achieved substantial improvement to achieve the goal of creating a corporate safety culture. their understanding of the importance of production safety responsibilities.85 2024 Environmental Social and Governance Report Driving a New Journey of Co-creating Social Value 8687 2024 Environmental Social and Governance Report Driving a New Journey of Co-creating Social Value 88

Modernized Governance The Company integrates compliance management into development strategies and annual plans and incorporates compliance performance into the performance evaluation system. Employees who adhere to behavioral standards and compliance regulations

are recognized while violators face appropriate penalties. By doing so we incentivize employees to actively uphold compliance

requirements.Tianshan Material places a strong emphasis on law-based governance. The Company has established and improved a

management system that ensures compliance operations and lawful governance. By steadfastly upholding business ethics and Tianshan Material and its subsidiaries have established a robust compliance training mechanism. The Company holds quarterly

strengthening information security measures the Company ensures that compliance efforts are effectively implemented. and semi-annual compliance meetings along with specialized general counsel meetings of the two-tier headquarters to guide

legal compliance efforts across subsidiaries. Training sessions on compliance management compliance management system

development overseas compliance intellectual property management dispute management policy interpretation and legal

Compliance Management compliance reviews of major decisions are provided to enhance employees’ compliance awareness and risk identification

capabilities. Furthermore the Company has established multiple communication channels including regular meetings OA and

Tianshan Material consistently adheres to lawful and compliance operations striving to build an efficient compliance corporate WeChat. These channels facilitate employee inquiries on compliance issues reporting of violations and submission of

management system supported by comprehensive policies. The Company reinforces compliance publicity and ensures improvement suggestions thereby fostering the dissemination and exchange of compliance culture. This year Tianshan Material

that compliance measures are firmly grounded in practice. To this end the Company has developed a compliance manual and its subsidiaries conducted various compliance training sessions involving 20218 participants.specifying the key compliance obligations and requirements of the Company management and employees regarding corporate

governance and operations investment and development human resources finance and assets trade secret protection and

data security intellectual property business partners procurement management anti-commercial bribery and anti-corruption Tax obligations

mining compliance production safety quality management environmental protection management marketing management

anti-monopoly and anti-unfair competition and overseas business management. In addition the Company has issued a series Fulfilling tax obligations in accordance with the law is the most fundamental social responsibility of enterprises. As a responsible

of supporting compliance policies in terms of internal audit risk management confidentiality and information security. These global corporate taxpayer Tianshan Material adheres to international tax regulations in its global transactions and fulfills reportingpolicies provide clear compliance requirements and guidelines ensuring that all actions are rule-based and violations are and tax payment obligations as stipulated by both domestic and international laws. We have publicly disclosed our “Tax Policyeffectively prevented. In 2024 the Company revised the “Compliance Management Measures” and formulated and improved Statement” on the Company’s official website (For details please see http://www.sinoma-tianshan.cn). By actively enhancing

the “Compliance Risk Identification List” the “List of Key Job Responsibilities” and the “Business Process Control List” covering our tax management system establishing tax management policies and standards and implementing supporting tax-related

three major business modules (cement commercial concrete and aggregates as three specific areas and one general processes we ensure that the Company’s tax management operations are conducted in a standardized orderly and efficient

functional category) at three levels. The content includes but is not limited to sources of compliance obligations non-compliant manner.behaviors and consequences of non-compliance.The Company has established the Rule of Law Construction Working

Organization and the Compliance Management Committee. These two This year

Business Ethics

organizations carry out the construction of the central enterprise under the rule

We remain unwavering in our dedication to upholding business ethics and operating at a higher standard of integrity. We strictly

of law and compliance management. We ensure the implementation of the

adhere to laws and regulations related to anti-unfair competition anti-monopoly anti-bribery extortion fraud and money

responsibility of the first person responsible for the rule of law construction.laundering. We continue to deepen systematic management optimize diversified oversight and auditing and improve complaint

In the decision-making process the Company has set the review of legal

and whistleblowing mechanisms. These efforts aim to foster a work environment characterized by integrity and self-discipline.compliance as an essential pre-procedure and “one vote veto” for all violations

and requires the Compliance Management Committee to fully perform its Tianshan Material signed a total of

This year there were no reported incidents of commercial bribery or corruption.function. Additionally the leadership of the Company and its subsidiaries has copies of the The Company has formulated and published the “Code of Business Conduct” and “Anti-Corruption Policy” for all full-time part-

taken the lead by signing the “Compliance Commitment” setting an exemplary 29858 time and outsourced employees. The two policies cover many aspects including corruption bribery discrimination information

standard and actively fulfilling their compliance pledges. This year Tianshan “Compliance Commitment” confidentiality conflicts of interest antitrust/anti-competition money laundering and/or insider trading reporting environment

Material signed a total of 29858 copies of the “Compliance Commitment”. health and safety. The “Anti-Corruption Policy” is also applied to all stakeholders that have business with the Company and all

subsidiaries. It clearly forbids briberies in the form of kickback donation sponsorship political contributions or any other illegal

The Company has three lines of defense against potential compliance risks consisting of business departments functional and improper payments.departments and supervision departments in a bid to fully carry out compliance management:

The Company integrates the “Code of Business Conduct” into employees’ performance assessment which is directly connected

The first The second The third

to their salary and promotion. We hold a “zero-tolerance” attitude to any violation of business ethics. Any employees who are

line of line of line of directly or indirectly involved in violation of the “Code of Business Conduct” are subject to administrative punishment including defense defense defense warning record of demerits demotion removal and dismissal based on the severity of violations with their salaries deducted in

accordance with the company-related system. Moreover the employees are disqualified for promotion and any award nomination

Business departments of The Legal Compliance The Disciplinary Inspection during the effective period of disciplinary action.the Company and member Department which performs Department Audit Department and We also require all suppliers to sign the “Integrity Commitment”. Once we are aware of a supplier’s violation of business ethics

enterprises which identify the internal control and other related departments which including corruption we will impose punishment such as request for correction suspension of business elimination of business

assess control collect and compliance of business supervise or urge enterprises to

report risks in operation and lines through business make timely rectification to the and inclusion in the “blacklist of partners” in accordance with national laws and regulations and internal rules. We have established

business and make timely management supervision identified issues and investigate strict management process regulations for supplier access inspection performance audit and withdrawal management to improve

rectifications. and inspection and organizes risk incidents that have resulted in the standardization and transparency of the procurement process. Meanwhile the supervisory department of the Company

other departments for losses and enforce accountability assists business departments in supervision of bidding and other processes to ensure that employees of both parties conform to

rectification. according to rules. the “Code of Business Conduct” and protect the legitimate rights and interests of both parties.89 2024 Environmental Social and Governance Report Driving a New Journey of Co-creating Social Value 90

Integrity training Information Security

The Company conducts regular integrity culture promotion activities in forms such as lectures specialized training sessions and The Company has established the “Tianshan Material Network Security and Information Security Management Policy”. The

case studies to educate and train all employees. These initiatives are designed to consistently foster a culture of integrity and policy is formulated to strengthen the management of network security and information security across Tianshan Material and

establish clear boundaries to reinforce ethical awareness. its subsidiaries at all levels thus ensuring the stable operation of network systems and the security of information data. The

Company also established the Cybersecurity and Informatization Working Group. The chairman of the Company is the team

Integrity training for all employees leader and the president and the vice president in charge of the digital department are the deputy leaders. The Chief Data

Officer (CDO) and the deputy general managers in charge of business departments are team members. We have established

the responsibility system of information security management. The system clarifies the responsibilities of information security

We guided them to fasten the “first button” of integrity - have the awareness of

For new joiners management positions including network administrator system administrator database administrator and safety administrator. integrity and adhere to the principle of integrity when working.We have also included the number of information security and cybersecurity incidents into the annual KPI assessment of

employees of the digital department. By doing so we have strengthened their attention to information security and cybersecurity

We supervised and urged them to fulfill their double duties of their positions and further improved our prevention and control over the risks of information security and cybersecurity.For responsible and integrity building to carry out the Party management and governance. We

persons required them to be aware of responsibilities shoulder responsibilities and fulfill The Company employs advanced information security technologies to comprehensively protect privacy and data security. We

responsibilities to put their organization under sound management. have implemented data encryption firewalls and Intrusion Prevention Systems (IPS) to significantly enhance the defense

capabilities of our network environment. To ensure the ongoing security of our systems and software we regularly conduct

updates and upgrades for systems and software. This has promptly patched known vulnerabilities and mitigated potential

We regularly organized integrity training for employees in purchase finance and risks. In pursuit of enhanced information security management we have also established stringent information segregation

For employees in other important positions and revealed integrity risks in business. We reminded mechanisms and implemented precise access control strategies. These mechanisms effectively isolate sensitive information

important positions business employees to constantly hold the discipline principle and conscientiously from routine operations and ensure that only authorized users can access specific sensitive data thereby greatly improving data

resist corruption to remain undefiled. protection capabilities.Furthermore we perform regular comprehensive security audits and monitoring for information systems ensuring their security

and integrity. Through these activities we can promptly identify and address potential security threats and vulnerabilities and

Highlights of this year’s training initiatives swiftly implement targeted measures for repair and optimization.This year Tianshan Material actively participated in the national cybersecurity initiative and organized cybersecurity training

● We hosted a company-wide conference on promoting integrity and combating corruption. Activities sessions. As a result we have further strengthened our cybersecurity awareness and capabilities and better safeguardedincluded watching educational films conducting case studies and signing the “Integrity and Anti- network security.Corruption Responsibility Agreements”.● We organized integrity lectures to share essential requirements and regulations for upholding integrity

in the workplace. Information security feedback and handling

● We conducted targeted training sessions on “Four Malfeasances” and the CPC Eight-point Decisions.The training provides comments and suggestions on meals accommodation courtesy and other The Company emphasizes on the timely reporting and resolution of information security issues. To ensure this multiple feedback

aspects in the light of the problems identified in the daily inspections. channels and a rigorous handling process have been established. If an employee finds an information security issue he/she can

● We held the warning conference to share the typical cases handled by the disciplinary inspection report it to the Digital Department through internal OA email WeChat telephone and other means. Upon receiving a report the

committees at all levels and give warnings. Digital Department conducts an initial verification and investigation on the issue. If the department confirms it is an information

● We shared cases on the OA discipline inspection platform which garnered over 103 thousand views. security issue the department will take corresponding measures. If the issue can’t be handled in a short time the department

will initiate the emergency plan. After the issue is handled the department will feed back the result to the reporter and record the

issue. This year there were no reported data security incidents or breaches of customer privacy.Reporting channels Third-party evaluation

We have opened efficient channels for reporting violations of business ethics. We encourage our employees and partners to To prevent the information technology system interruption or cyber attacks we have established emergency response plans

report any actual or suspected violations of the “Code of Business Conduct” through telephone email visit mail and other for information and cybersecurity events. We also test whether the emergency response plans work every year. We regularly

means. Once receiving the reporting the disciplinary inspection department analyzes the reported case and assigns the case to engage a third party to scan the security vulnerabilities of our information technology system. Then we improve present

the appropriate responsible department based on the findings. safety strategies and processes based on the safety risk report provided by the third party to strengthen our information and

cybersecurity management. We have obtained the certification of cybersecurity protection III and get timely re-certification asWe place a high priority on the protection of whistleblowers and reporting content. In accordance with the “Rules for Protecting required. Upon reassessment Tianshan Material has confirmed that five core systems that meet the second-level requirementsWhistleblowers and Accusers by the Central Commission for Discipline Inspection of the Communist Party of China and the in the national classified cybersecurity protection testing and evaluation.Ministry of Supervisory of the People’s Republic of China” we spare no effort in safeguarding the security and confidentiality of

whistleblower information and forbid any forms of reiteration and framing on the whistleblower. By doing so we strictly protect

the privacy and lawful rights of whistleblowers.91 2024 Environmental Social and Governance Report Driving a New Journey of Co-creating Social Value 92

Responsible Procurement

Staying committed to building an efficient and sustainable supply chain Tianshan Material collaborates with partners to advance ● Develop more detailed supporting management measures according to the supplier

sustainability strategies aiming for mutual benefits while creating positive impacts for society and the environment. We have management measures of the Company headquarters.formulated and published the “Supplier Code of Conduct” and “Sustainable Supply Chain Management Policy” for all suppliers.●

We require all suppliers to fulfill their commitment to employees’ rights environmental protection risk management and other Conduct qualification reviews and access assessments of suppliers organize on-site inspections and evaluations of new suppliers by relevant personnel and select

aspects. We are committed to continuously optimizing supplier management and fully advancing the development of a green qualified suppliers.low-carbon supply chain.● Establish and maintain the database of suppliers in the region including potential

Supply chain supplier database potential qualified supplier database qualified supplier database

Supplier Management Structure management and ineligible supplier database.departments of

●

regional companies Evaluate suppliers of the materials collectively purchased by regional companies

The Company has established a three-tier management structure for suppliers comprising headquarters regional companies regularly manage them based on evaluation results and ratings and refine the

supplier database of regional companies.and member enterprises. We also conduct on-site reviews of our suppliers on an annual basis and are committed to building a

competitive and sustainable product supply chain. ● Be responsible for the management of material procurement logistics services

and other service suppliers in the region and formulate corresponding procurement

strategies and management plans.● Formulate and publish the supplier management measures and supervise the

implementation; establish the lifecycle management mechanism covering supplier

registration and access performance evaluation and elimination.● Establish and improve the supplier evaluation system; establish the evaluation

standards and process; regularly evaluate suppliers of the materials collectively ● Implement the supplier management systems of Tianshan Material’s headquarters

purchased by the headquarters. and regional companies.● Conduct qualification review and access assessments of suppliers of the materials ● Be responsible for the management of the enterprise’s material procurement logistics

collectively purchased by the headquarters organize on-site inspections and services and other service suppliers and formulate corresponding procurement Supply chain evaluations of new suppliers by relevant personnel and select qualified suppliers. Supply chain strategies and management plans.management

department of the management ● Establish and maintain the database of suppliers including potential supplier ● Establish maintain the enterprise’s supplier database and ensure timely updates and

headquarters departments of database potential qualified supplier database qualified supplier database and member enterprises maintenance of the data.ineligible supplier database. ● Evaluate cooperative suppliers regularly and manage them based on evaluation

● Comprehensively manage suppliers of material procurement logistics services and results and ratings.other services and formulate corresponding procurement strategies and management ● Participate in supplier evaluation and sourcing efforts of Tianshan Material’s

plans. headquarters as needed.● Coordinate and instruct the supply chain management departments of regional

companies and member enterprises.93 2024 Environmental Social and Governance Report Driving a New Journey of Co-creating Social Value 94

Supplier Lifecycle Management

suppliers that received responsibility assessment and review 8518

By incorporating ESG-related requirements into the supplier lifecycle management the Company defines ESG management

requirements for the processes of supplier access cooperation review and exit. This approach aims to identify assess and suppliers sustaining long-term cooperation with the Company 10747

manage environmental and social risks throughout the supply chain.suppliers that passed quality management system certification 5258

Review and analyze the compliance qualifications of suppliers to assess whether they comply with the

requirements of the Company’s “Supplier Code of Conduct”; suppliers that passed occupational health and safety management system certification 5258

Review suppliers’ production equipment qualifications certificates and other relevant documents by

means of remote video or on-site verification to ensure that they satisfy the Company’s standards; suppliers that passed environmental management system certification 5258

Collect and analyze suppliers’ ESG reports encourage suppliers to provide certification results such as

ISO 45001 ISO 9001 and ISO 14001 certification to evaluate suppliers’ ESG performance. The Company suppliers that passed energy management system certification 5258

gives priority to suppliers with better ESG performance when they perform similarly in other areas.Require suppliers to strictly adhere to environmental standards human rights (including respect for key suppliers that passed the online/on-site assessment 8518

employee rights anti-discrimination anti-harassment prohibition of forced labor and child labor and

protection of vulnerable groups) working conditions compensation health and safety and business ethics.key suppliers assessed as having significant actual/potential negative impacts 32

Conduct rigorous assessments of suppliers’ green production and energy-saving capabilities including

but not limited to evaluating the compliance of their production processes with environmental standards

the adoption of energy-efficient methods in production and the implementation of effective environmental key suppliers with rectification plans implemented 32

management systems; and define the percentage of system certification scores in sourcing documentation.key suppliers with significant actual/potential negative impacts who have been terminated from cooperation 23

Access

process

Supplier Risk Management

To ensure supply chain continuity and resilience against emergencies and market changes while maximizing the protection of

the Company’s reputation and financial interests the Company has developed a comprehensive risk management framework

covering all aspects of the supply chain. The Company has established a specialized team dedicated to supply chain risk

management. This team regularly organizes training sessions for employees focusing on enhancing their awareness and

Exit Review Cooperation response capabilities to various risks. By doing this the team ensures that risk management practices remain effective and

process process process timely.Terminate the Conduct level-and category- Sign “Integrity Risk identification and definitioncooperation with based assessments on Commitment” with all

suppliers who cooperative suppliers; conduct suppliers to clearly define A robust mechanism has been developed for identifying and defining potential risks in the supply chain including

still fail to meet sustainability risk assessments the standards of integrity risks related to suppliers natural disasters political instability and other factors.the Company’s for key suppliers annually in and codes of conduct

minimum ESG accordance with the Company’s between both parties.requirements after “Supplier Management Measures”

rectification. and “Supplier Code of Conduct”; Supervise and reviewdevelop rectification and the signing of “Integrityimprovement plans for suppliers Commitment” to ensure Risk assessment and monitoring

with high sustainability risks (such all suppliers’ strict

as those with potential labor compliance with the Risk assessments of key suppliers are conducted. For this purpose a supplier risk assessment system has been

issues high energy consumption relevant regulations and maintain the integrity of established and the supply chain’s operational status is continuously monitored to promptly identify potential issues and integrity concerns) and follow the supply chain. and take appropriate measures.up their subsequent progress.95 2024 Environmental Social and Governance Report Driving a New Journey of Co-creating Social Value 96

Customer Relations Management

Diversification of suppliers

Multiple suppliers are selected to reduce dependency on any single supplier thereby minimizing the risk of supply

chain disruptions due to the failure of a single supplier. The Company has built a diversified supply chain system The Company is committed to establishing long-term stable mutually beneficial and win-win business partnerships with

through strategic cooperation with large state-owned enterprises. By integrating the “Wo Zhao Che” platform within customers. In the year continuous efforts have been made to optimize product quality and strengthen intellectual property

the Group and upstream and downstream industries such as Nanjing Fiberglass Research & Design Institute protection. We actively listen to our customers and continuously enhance our products and services by collecting and analyzing

Co. Ltd. the Company has optimized key resources while extending and strengthening the industrial chain. This their feedback. This commitment helps us build a more robust and reliable product and service network providing solid support

integration has also introduced competitive enterprises further enhancing the robustness of the supply chain system. for the Company’s long-term sustainable development.Product Quality Guarantee

Resilient supply chain development

Tianshan Material is committed to providing customers with high-quality and high-standard products and services. By setting

The supply chain’s resilience has been bolstered through our optimized logistics network increased inventory levels stringent requirements for product quality while improving the efficiency and precision of quality management with information

and robust backup plans. These measures enable the supply chain to remain stable against external shocks and and intelligent technologies the Company enhances product competitiveness and maintains the leading position in the industry.quickly return to normal operations The Company adheres to the principles of “improving quality and efficiency embracing optimization and upgrade” and deeply

implements a development strategy that centers on quality. To this end we have developed and implemented a series of

rules and regulations such as the “Quality Management Measures” and the “Product Quality Supervision and ManagementAdditionally the implementation of supply chain risk management strategies and measures has continuously reduced the risk Measures” to ensure standardized and effective quality management. In terms of the commercial concrete business the

of supply chain disruptions. This has not only improved the reliability and stability of the supply chain but also enhanced its Company has further refined the quality management requirements and established a series of specialized policies including

adaptability and flexibility in the face of emergencies and market changes. the “Technology and Quality Management Measures of Commercial Concrete Business” the “Inspection and Evaluation Outlinesfor Basic Technology and Quality Management of Commercial Concrete Business” the “Quality Management Measures forRaw Materials of Commercial Concrete Enterprises”. These documents clearly stipulate the technical requirements production

Supplier Capability Development processes and raw material management of commercial concrete products. Moreover the Company has established a

comprehensive system for the retention of quality files. To maintain product quality the Company implements stringent measures

to tackle quality issues or incidents. Should such events arise a thorough investigation is launched to identify root causes and

The Company actively promotes ESG improvements among suppliers and is committed to building a green supply chain. To hold responsible parties accountable under established regulations ensuring ongoing product quality enhancement.this end the Company has taken a series of measures to help suppliers better understand and practice ESG concepts and to

enhance their management and practice capabilities. Fully embracing the ISO 9001 quality management system the Company conducts regular sampling inspections of products

from its subsidiaries and continually assesses and updates relevant standards based on the analysis of sample performance

The Company provides comprehensive ESG training and information support to help suppliers systematically understand the indicators as well as market trends customer needs and inspection results. Furthermore for issues and shortcomings identified

core content and requirements of ESG management through professional training materials. The Company also keeps suppliers during inspections we promptly refine our quality improvement measures. All of these efforts are aimed at boosting the quality

regularly updated on the latest trends and practice cases in the building materials industry to enhance their awareness and and market competitiveness of our cement products. In 2024 the Company achieved a 100% comprehensive cement product

attention to ESG. In the year the Company developed an ESG scorecard for self-assessments and reviews of core suppliers pass rate a 100% pass rate for national-level sampling inspections of main business products a 100% pass rate for main

helping them clearly understand their performance and identify strengths and weaknesses. Based on the assessment business products submitted for inspections. No major liability incidents related to safety and quality of products and services

results the Company provided targeted suggestions to motivate them to make improvements. The Company also provided have occurred.comprehensive technical support to suppliers including technical consulting technology transfer and sharing and joint R&D

and innovation. This support aims to enhance suppliers’ technical capabilities and ESG performance thereby promoting the

sustainable development of the supply chain. These measures help improved the ESG management level of suppliers and Case CUCC Tai’an intelligent control system achieves quality improvement goals

promoted the sustainable development of the entire supply chain demonstrating the Company’s leadership in this industry.This year a total of 1622 key suppliers participated in capability building programs with the training covering 28.37% of China United Cement Tai’an Corporation (CUCC

suppliers. Tai’an) launched a fully automated laboratory project to

build an intelligent quality control system. This system

establishes a quality model that tracks the entire material

Protection of suppliers’ rights and interests flow from raw materials to finished cement using big

data to optimize plant-wide control. It enables rapid and

To effectively improve the efficiency of accounts payable payments we have developed a detailed strategy. Firstly we will accurate testing based on data from the automated lab

categorize and assess the urgency of each payment to determine appropriate payment deadlines and schedules. Secondly and online analyzers thereby improving testing efficiency

based on the Company’s current cash flow we will prioritize payments to ensure timely settlement of the most urgent accounts and accuracy. The system also automatically records

payable. Lastly for payments that may not be made on time we will actively negotiate with suppliers to explore feasible and stores test data and generates standardized

solutions such as deferred or installment payments. The Company had no outstanding payments due to SMEs that that needed reports without manual intervention streamlining data

to be disclosed to the public through the National Enterprise Credit Information Publicity System. management and auditing.97 2024 Environmental Social and Governance Report Driving a New Journey of Co-creating Social Value 98

Intellectual Property Protection Responsible Business Operations

Strengthening the protection of intellectual property is crucial for driving product innovation and solidifying customer trust. The Company

systematically analyzes and identifies the risks associated with intellectual property and develops corresponding risk management Adhering to the principles of openness sharing friendship and mutual assistance the Company actively fulfills its social

strategies and countermeasures to keep risks identified always controllable governed and tolerable. For trademark management the responsibilities through concrete actions. We actively participate in industry exchanges contribute to rural revitalization and

Company has established a trademark information database and implemented comprehensive measures to manage all aspects of the engage in public welfare activities. We also integrate social responsibility into our corporate strategy and daily operations

trademark including trademark registration trademark maintenance trademark licensing trademark disposal and trademark protection. striving to achieve synchronous progress in both corporate growth and the fulfillment of social responsibilities.Moreover the Company has also formulated assessment and accountability mechanisms. Meanwhile the Company continues to

refine the “Trademark Management Measures” to protect intangible assets like the Company’s trademarks and enhance trademark

management. Industry Communication and Cooperation

The Company continues to increase the investment in technological innovation driving high-quality development through technological

innovation. In the year the Company accumulatively held 4261 valid patents (including 3423 utility model patents and 501 invention Tianshan Material consistently maintains an open and collaborative approach seeking mutual benefits and win-win outcomes.patents) and successfully registered a total of 337 software copyrights. Among them Sanshi Material obtained the design patent for the The Company collaborates with government organs and peer companies to share resources and complementary strengths

independently developed Sealed Sampling Container for Concrete Raw Material Inspection from China National Intellectual Property and proactively explores new pathways for technological innovation and product upgrading thereby driving the high-quality

Administration; Sinoma Yunfu successfully applied for two patents i.e. “Anti-Blocking Mechanism for Bucket Elevator” and “Bag Insertion development of the cement industry.Device for Cement Production Packaging Machine”.Case Tianshan Material - communication with customers

In the year

Company accumulatively 3423 501 Successfully registered a To accelerate the green and low-carbon transition and 4261 337 enhance the utilization and recycling of waste gas Tianshan held total of software utility model patents invention Material together with Farizon Transport under Geely

valid patents patents copyrights Commercial Vehicle Group paid a visit to Henan Shunli

Alcohol Hydrogen Energy Technology Co. Ltd. a subsidiary

of Henan Shuncheng Group for exchange on innovation

Voice of Customers achievements. Through visits and inspections Tianshan Material learned about the methanol production process and

carbon dioxide capture technology. This visit also included

Upholding the “customer-oriented” service philosophy the Company has formulated internal policies such as the “Customer Relationship discussions on carbon dioxide capture and disposal storageManagement Measures for Cement Business” and the “Customer Complaint Management Process Manual”. These documents clearly and transportation high-value utilization and recycling

outline the handling process for customer complaints including complaint channels complaint receiving and registration analysis and and the pilot operation of methanol vehicles in sand and

categorization formulation and implementation of complaint resolution and tracking and feedback of complaint handling results forming gravel transportation scenarios. This visit promoted the

a closed-loop management covering the customer complaint collection response processing feedback and tracking of handling results. communication and sharing of innovative technologies within

This ensures that the Company can respond swiftly to customer complaints and provides timely responses thereby enhancing customer the industry and expanded opportunities for cooperation

service efficiency. among industry players.For handling customer complaints the Company actively facilitates access to service inquiries through multiple channels including

the 400 hotline email and the Internet+ customer management platform. Complaint types are categorized into quality packaging

measurement shipment service sales personnel service and flow direction complaints. Within 24 hours upon receiving a complaint the Case Tianshan Material - communication with experts

complaint coordinators will work with relevant departments to verify the complaint and propose solutions and emergency responses.They will also track the implementation and effectiveness of the complaint handling process.For customer satisfaction the Company partners with third-party agencies to conduct annual satisfaction survey. The survey is In September 2024 Tianshan Material received leaders

conducted anonymously. The survey covers various dimensions such as overall satisfaction product quality packaging quality delivery and researchers from Shenwan Hongyuan Securities Co.service technical service sales personnel service settlement and payment convenience and complaint handling. In the year the survey Ltd. for an in-depth discussion on carbon trading industry

covered 97% of our customers and our customer satisfaction reached 95% 1 percentage point higher than the previous year. development and business management in the cement

sector. Based on the current carbon emission situation in

cement production they jointly discussed energy-saving

Satisfaction survey (Point) and carbon-reduction technologies and explored the long-

term impact of carbon trading in the cement industry. As the

cement industry was set to be included in the carbon trading

market this symposium aimed to identify the industry’s

carbon emission situation enhance awareness and attention

9.64 9.73 to carbon emissions among industry players promote the 9.77 innovation and application of carbon reduction technologies enhance the industry’s strength to respond to the carbon

trading market and facilitate the industry’s green and low-

carbon transformation.

2022 2023 202499 2024 Environmental Social and Governance Report Driving a New Journey of Co-creating Social Value 100

Rural Revitalization Initiatives Case Hami Tianshan – “Leading Corporate Efforts to Support Rural Revitalization”

In the year Tianshan Material and its subsidiaries earnestly fulfilled social responsibility through actively engaging in 34

assistance projects in local communities and villages where operations were carried out. To enhance the quality of life for local To implement the rural revitalization strategy andresidents and create more development opportunities the Company continuously carried out rural revitalization projects. These further promote the “Hundreds of Enterprisesprojects covered several key areas including strengthening infrastructure construction providing educational support and Helping Hundreds of Villages” initiative Hami

addressing agricultural product sales bottlenecks. Through these efforts the Company effectively promoted the socio-economic Tianshan has played a key role in leading

development of the assisted areas. corporate efforts to support rural revitalization.To help farmers in Taoj iaguan Vi l lage to

overcome the difficulty of selling watermelons

the company’s trade union purchased 3.1 tonnes

In the year: of unsold watermelons and used them for heat

stroke prevention and cooling at operation sites.Number of counties receiving targeted assistance for rural revitalization: 3; number of townships This action as part of the company’s efforts to advance rural revitalization promoted the sale of

receiving targeted assistance for rural revitalization: 1; number of villages receiving targeted agricultural products and drove the development of rural featured industries.assistance for rural revitalization: 30; total assistance funds: RMB 2284.4 thousand

of which direct invested funds: RMB 1767.4 thousand introduced funds: RMB 220 Case Yunnan Cement - innovative ways to support rural revitalization

thousand and consumption assistance funds: RMB 297 thousand;

Yunnan Cement has persistently upheld and expanded its distinctive support models continuously exploring and

Number of organizations receiving targeted assistance for rural revitalization: 28; total amount of innovating ways to deepen targeted support efforts.agricultural products from poverty alleviation areas that are sold with the assistance of the Company:

The company conducted Party building and co-building activities established libraries and

RMB 4836.8 thousand; provincial or ministerial awards: 2; municipal awards: 1. activity rooms and boosted the development of the beef cattle and kiwifruit industries.The company’s Party Committee Secretary made field visits to the assistance projects to

advance industrial support including mining resource development.The company have dispatched volunteers to provide educational assistance and renovate

kindergarten facilities for six consecutive years.Case Jiahua Cement - support in infrastructure construction for rural revitalization

The company offered consumption support by purchasing agricultural products and

organizing trade union activities.In October 2024 Jiahua General Cement Factory of Jiahua Special Cement Co. Ltd. donated 50 tonnes of M32.5

bagged cement valued at RMB 13.5 thousand to Jiangcun Village Hulu Town Shawan District Leshan City

Sichuan Province. The donation was used for the construction of local rural roads. The donation alleviated the

Through these diverse initiatives Yunnan Cement has promoted cultural co-construction using cultural revitalization

material shortage in local infrastructure construction improving travel conditions for villagers. It also contributed to

to drive rural revitalization. In this way the company has continuously deepened the assistance effectiveness

the development of a better support service system and a more convenient transportation environment both crucial

making significant contributions to the local economic development and social progress.for rural economic development.Infrastructure construction

project for rural revitalization in

Jiangcun Village Hulu Town

Shawan District - road paving101 2024 Environmental Social and Governance Report Driving a New Journey of Co-creating Social Value 102

Public Welfare Activities

Tianshan Material has continuously organized volunteer teams to carry out various public welfare activities including blood Case Ruichang Platform - warm-hearted assistance action

donation caring for poor children visiting lonely seniors and providing convenience services. These activities represent the

Company’s concrete efforts to deliver love to the society. In 2024 the Company donated RMB 32 million to Shanjian Public

Welfare Special Fund of China Volunteer Service Foundation which was used for poverty alleviation volunteer teaching In October 2024 Party member representatives and volunteers from Ruichang Platform of Huadong Material

employee care volunteer service and other public welfare fields. Member enterprises actively took part in local social welfare delivered rice cooking oil and other daily necessities as well as charitable funds to the elderly in Beishan Village

activities in a coordinated manner with a total donation of about RMB 42855.3 thousand throughout the year. In particular Xiachaohu Village and Jinsi Village. In addition the company launched a scholarship donation campaign providing

cement ready-mixed concrete limestone and other physical objects for the construction of public and social security equipment a total of RMB 50 thousand in tuition and living allowances for more than 20 impoverished students at Huangjin

and facilities equivalent to about RMB 6540.6 thousand were donated based on the industry characteristics. These measures Township Central Primary School and Matou Middle School. These activities not only reinforced the company’s

reflected the Company’s proactive commitment to social responsibility and its contributions to social development. sense of social responsibility and mission but also strengthened its harmonious relationship with the local

community and promoted educational equity.Case Hefei South - humanitarian care for employees in need

Carrying forward the spirit of unity and mutual support

in times of difficulty the General Communist Party

Branch and the Trade Union of Hefei South called on

all employees to make charitable donations to help a

colleague in need Suqin. All Party members cadres

and staff responded generously and every drop of their

contributions was collected and delivered to the colleague

and his family to help them get through the hard times.Hefei South has always paid close attention to the work

and living needs of all employees offering more care

and assistance to those in need and actively building a

humanistic enterprise through concrete actions.Case Jinlei South Company - care for people in disaster area

Shuili Village in Xingning Town of Zixing City is the assistance target village of Jinlei South Company for rural

revitalization. On July 27 2024 it suffered a severe flood disaster as a result of Typhoon “Gaemi”. The company

donated 144 tonnes of cement valued at RMB 49.3 thousand to support the post-disaster reconstruction there.Case Yulong Tongli - donation to the Queshan County Police Association to reward “righteous deeds” The company’s active participation in social welfare activities and relief donations has been recognized by the

government and society at large.Yulong Tongli adheres to the core values of socialism

and encourages “righteous deeds”. In a concerted effort

to promote police-business cooperation the company

donated RMB 50 thousand to the Queshan County

Police Association. This donation will be used to reward

outstanding cases of “righteous deeds” further raising

public awareness of righteous deeds and jointly promoting

social harmony and public safety. Such action has

deepened the cooperation between Yulong Tongli and the

public security organ in Queshan County laying a solid

foundation for building a safe and harmonious community

and a more positive business-local relationship.People in the disaster area use the The village road rebuilt with the

donated cement to rebuild their homes. donated cement after the disaster103 2024 Environmental Social and Governance Report Appendix 104

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

of our conclusions; and

● The scope of the Assurance Engagement is confined to the information and data provided by Tianshan Material. Any queries regarding the content or re-

Independent Assurance Statement lated matters within this independent assurance statement should be addressed to Tianshan Material only.V. Methodology of the Assurance Engagement

CECEP (HK) Advisory Company Limited (“CECEPAC (HK)” or “We”) has been engaged by Tianshan Material Co. Ltd. (“Tianshan Material”)

to conduct an independent limited assurance engagement (“Assurance Engagement”) on the information and data related to sustainable CECEPAC (HK)’s Assurance Engagement was conducted at the headquarters of Tianshan Material and part of its subsidiaries. The assurance

development in Tianshan Material Co. Ltd. 2024 Environmental Social and Governance (ESG) Report (“ESG Report”) and to disclose the results work included:

and conclusions of the assurance in the form of an independent assurance statement to the users of the ESG Report. ● An assessment on the suitability of Tianshan Material’s stakeholder engagement participation process;

CECEPAC (HK) has been engaged to assure Tianshan Material adherence to the four AA1000 Accountability Principles (Inclusivity Materiality ● On-site interviews with Tianshan Material’s sustainability management and other personnel involved in the preparation and provision of the content and

Responsiveness and Impact) set out in the AA1000 Assurance Standard v3 (“AA1000AS v3”). CECEPAC (HK) has also been engaged to information in the ESG Report;

provide limited assurance on the reliability and quality of specific performance information disclosed in the ESG Report that have been selected ● An assessment on whether the reporting and management approach disclosed in the ESG Report responded to the principles of Inclusivity Materiality

in accordance with the Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange (“Shenzhen Stock Exchange”) – Responsiveness and Impact as defined in the AA1000AS v3;

Sustainability Report (For Trial Implementation) (“Sustainability Report Guideline”). ● Random sampling of sources of reliability and quality evidence pertaining to selected key performance indicators;

If there is any inconsistency or ambiguity between the English version and the Chinese version of this independent assurance statement the ● Recalculation of selected key performance indicators; and

Chinese version shall prevail. ● Other procedures we deemed necessary.I. Independence and Competence The Assurance Engagement was performed and the conclusions within were based upon information and data provided by Tianshan Material

and on assumptions that the information provided was complete and accurate.CECEPAC (HK) was not involved in collecting and calculating data or in the development of the ESG Report. CECEPAC (HK)’s activities are

independent from Tianshan Material. There is no relationship between Tianshan Material and CECEPAC (HK) beyond the contractual agreement VI. Inherent Limitations

for providing this Assurance Engagement.CECEPAC (HK)'s assurance team consists of professional personnel who are experienced in the industry and have received professional training The absence of a significant body of established practice on which to draw to evaluate and measure non-financial information allows for different

in sustainability-related standards such as GRI Standards issued by Global Reporting Initiative AA1000AS v3 Sustainability Report Guideline but acceptable measures and measurement techniques and can affect comparability between entities.issued by Shenzhen Stock Exchange ISO 17001 and ISO 9001 etc. VII.Conclusions

CECEPAC (HK)'s assurance team has rich experience in conducting assurance work and has a full understanding and practical ability of

AA1000AS v3. Meanwhile the assurance team of CECEPAC (HK) carries out assurance work on sustainable development issues in accordance In accordance with the principles of Inclusivity Materiality Responsiveness and Impact in the AA1000AS v3 our findings and conclusions are

with the internal assurance regulation of CECEPAC (HK). detailed as follows:

Inclusivity

II. Tianshan Material’s Responsibilities

Tianshan Material has identified key stakeholders. Continuous communication with the key stakeholders is carried out in various way to

Tianshan Material is responsible for the preparation and presentation of the ESG Report in accordance with the Sustainability Report Guideline understand their expectations and concerns. On this basis Tianshan Material has formulated policies in consideration of key stakeholders’

issued by Shenzhen Stock Exchange. Tianshan Material is also responsible for implementing internal control procedures and ensuring that expectations and its impact on stakeholders. In our professional opinion Tianshan Material adheres to the Principle of Inclusiveness.contents of the ESG Report are free from material misstatement whether due to fraud or error.Materiality

III. Assurance Provider’s Responsibilities

Tianshan Material conducted the material topic analysis for its ESG Report collected opinions from key stakeholders determined material topics

CECEPAC (HK) is responsible for issuing an independent assurance statement according to AA1000AS v3 to the Board of Directors of Tianshan through appropriate methods and presented the results in its ESG Report. In our professional opinion Tianshan Material adheres to the Principle

Material. This independent assurance statement applies solely to the ESG Report in the specified scope expresses a conclusion on the of Materiality.assurance work and does not serve any other intents or purposes. Responsiveness

CECEPAC (HK) ensures that all personnel involved in assurance work meet professional qualification training and experience requirements

and are proficient in conducting assurance engagements. The results of all assurance and certification are internally reviewed by senior staff to Tianshan Material has established relevant communication channels for its key stakeholders to gather their concerns and has responded on

ensure that methodologies used in the process are sufficiently stringent and transparent. material topics related to sustainable development to its key stakeholders. In our professional opinion Tianshan Material adheres to the Principle

of Responsiveness.IV. Scope of the Assurance Engagement

Impact

● The scope of the Assurance Engagement is limited to the information and data in the ESG Report that relates to Tianshan Materia and its subsidiaries Tianshan Material has invested resources in understanding measuring assessing and managing the impacts caused by the company in order to

and does not include data or information provided by Tianshan Material’s suppliers contractors and other third parties; achieve more effective decision-making and results-based management within the organization and has appropriately disclosed the impacts in

● Type 2 Moderate Level of Assurance was adopted to evaluate the nature and extent of Tianshan Material adherence to the four AA1000 Accountability the ESG Report. In our professional opinion Tianshan Material adheres to the Principle of Impact.Principles set out in the AA1000AS v3;

● Tianshan Material and CECEPAC (HK) reached an agreement to select the specific performance information in the ESG Report as part of the content for Specific Performance Information

Assurance Engagement; Based on the procedures CECEPAC (HK) has performed and the evidence we have obtained nothing has come to our attention that causes

us to suspect the reliability and quality or the conformity with the preparation basis set out in the ESG Report of the 15 selected specified

No. Assurance Indicators Unit No. Assurance Indicators Unit performance information of the ESG Report.

1 Total emission of nitrogen oxides (NOx) tonnes 9 Number of companies having passed the quality system certification companies

2 The expenditure on production safety RMB one Total energy consumption (including total natural gas hundred million consumption total power consumption total renewable tonnes of standard coal

3 Number of work-related fatalities in production safe-

10 energy consumption and total non-renewable energy equivalent

ty liability accidents (excluding related parties) people consumption)

4 Number of national green factories factories 11 Thermal substitution rate (TSR) from alternative fuels %

5 Number of factories passed the occupational health and safety management system certification factories 12 Total greenhouse gas emissions tonnes

6 Number of factories passed the environmental man-agement system certification factories 13 Greenhouse gas emission intensity

tonnes per RMB

1 million

7 The rate of safety hazards detected and eliminated % 14 Total investment in public welfare (including material RMB ten

March 25 2025

donations) thousand

Coverage of the key employee participated in the Hongkong China

8 The AI alert comprehensive response rate % 15 anti-corruption (anti-commercial bribery) training ses- %

sions105 2024 Environmental Social and Governance Report Appendix 106

ESG Key Performance Key Performance Indicators Unit 2024 2023 2022

Developing Circular Economy

Total water withdrawal Tonne 961173442.25 1055005407.81 1127148466.85

Key Performance Indicators Unit 2024 2023 2022 Recycled water utilization rate of clinker-producing cement companies % 92.18 93.56 92.45

Leading the New Chapter of Green Development Total water consumption Tonne 75169699.00 79353902.00 85135405.00

Embracing Green Actions Water consumption intensity Tonne/million revenue 864.07 739.00 642.14

Total greenhouse gas emissions Tonne 146604719.03 166579684.27 188226668.00 Reusing rate of the treated wastewater for

Greenhouse gas emissions (scope 1) Tonne 141472149.69 163036585.43 184836532.00 commercial concrete business

%100100100

Greenhouse gas emissions (scope 2) Tonne 5132569.34 3544098.25 4235019.00 Biodiversity Protection

Land area affected by business operations m2 11576100.00 9877700.00 11132500

Combined energy consumption Tce 19309556.77 23314709.59 25956559.36

Restored land area m2 6312300.00 3099050.8 7613200

Combined energy consumption per Tce/million 221.96 217.12 195.78 Investments in green mine construction and million revenue revenue ecological restoration projects RMB 10000 8638.76 3052 7557

Total non-renewable energy

consumption MWh 157079589.65 264105793.07 312864965

National green factories Number 54 53 26

National Ready-Mixed Concrete Green

Demonstration Factory Number 61 69 62Total coal consumption Tonne 21784398.18 27650916 30220942

National green mines Number 38 38 38

Total gasoline consumption L 184690.00 263940.00 364140.00

Provincial green mines Number 103 98 78

Total diesel consumption L 25400620.00 32934430.00 33214030.00

Emission Compliance Management

Total natural gas consumption m3 1872100.00 2804000 5505400 Total waste gas/total waste gas pollutant 3

emissions m 493427362600.00 575146395700.00 687118979200.00Total power consumption MWh 20045636.80 20567391.40 21555104.80

Total Emission of Nitrogen Oxides (NOx) Tonne 40868.76 52908 61630

Total renewable energy consumption Tce 64789.76 21630.77 23734.84

Total Emission of Sulfur dioxide (SO2) Tonne 3429.85 4152 4525

Consumption of renewable resources

as a proportion of total consumption of % 0.34 0.09 0.09 Industrial particulate matter emission Tonne 3307.06 5138 7113

corresponding resources Direct mercury emission Tonne 2.59 2.03 0.39

Total direct energy consumption MWh 133351169.70 169275522.20 185002135.30 Chemical oxygen demand (COD)emission11 Tonne 9.38 0.06 0.80

Total indirect energy consumption10 MWh 20045636.80 20567391.40 21555104.80 Proportion of companies meeting noise level

standards % 100 100 100

Purchased electricity consumption MWh 15312201.70 14356101.00 14771652.80 Proportion of recyclable cement packaging % 100 100 100

Self-generated electricity bags

consumption MWh 4733435.10 6211290.4 6797789.23 Total amount of waste generated

12 Tonne 9551603.19 1961883.09 1432400.00

Self-produced hazardous solid wastes 10000 t 0.07 0.09 0.24

Clean energy use MWh 54212.45 53033.04 77921.97

Total hazardous waste generated per million Tonne/million

Including: natural gas consumption m3 1872100.00 2804000.00 5505400.00 revenues revenue 0.01 0.01 0.02

Including: percentage of natural gas Self-produced non-hazardous solid wastes 10000 t 955.09 211.34 168.27

consumption % 35.80 57.21 76.46 Total amount of non-hazardous waste Tonne/million

generated per million revenues revenue 109.79 19.68 12.69

Including: wind energy consumption MWh 0 0 0 Self-processed non-hazardous solid wastes 10000 t 948.04 193.72 166.08

Including: percentage of wind energy Absorbed and discharged volume of solid % 0 0 0 wastes 10000 t 7543.60 7587.97 7657.81consumption

Absorbed volume of industrial wastes 10000 t 6405.10 7209 7139.70

Including: solar energy consumption MWh 34807.00 22688.70 18343.60 Discharged volume of solid wastes 10000 t 955.09 47.16 137.45

Including: percentage of solar energy % 64.20 42.78 23.54 Discharged volume of other wastes 10000 t 183.41 331.54 380.66consumption Amount of waste recycled Tonne 9480423.96 1921585.55 1407800.00

11 2024 statistical caliber increase in domestic sewage discharges to the Park's wastewater treatment plants

10 Total indirect energy consumption includes purchased electricity consumption and self-generated electricity consumption. 12 One additional plant (CNBM NEW MATERIALS CO. LTD.) in 2024 with the main waste being the comprehensive utilization of waste mines.107 2024 Environmental Social and Governance Report Appendix 108

Key Performance Indicators Unit 2024 2023 2022 Key Performance Indicators Unit 2024 2023 2022

Establishing a New Talent Development Center Occupational Health and Safety

Fulfilling Talent Strategy Near accident rates of contractual personnel % 0.00 0.01 0

Total number of employees Number 55034 61662 67956 Number of work-related fatalities Person-time 0 3 5

Total number of employees by gender Death rate per thousand people ‰ 0.00 0.05 0.07

Male Number 42687 47651 53482 Accumulated number of companies with occupational health and

safety management system certification Number 431 472 418Female Number 12347 14011 14474

Driving a New Journey of Co-creating Social Value

Total number of employees by employment type

Full time Number 54760 60321 65089 Modernized Governance

Other (including part-time intern and outsourced) Number 274 1341 2867 Number of anti-corruption training sessions held and organized Number 4452 2855 1269

Total number of employees covered by anti-commercial bribery and

Total number of employees by age anti-corruption training Number 55034 61662 67956

30 and below Number 5380 6491 6795 Percentage of employees covered by anti-bribery and anti-

Between 30 and 50 Number 34184 38070 43493 corruption training

%100100100

Including: the total number of directors covered by anti-commercial

50 and above Number 15470 17101 17668 bribery and anti-corruption training Number 9 9 9

Total number of employees by region Percentage of directors covered by anti-bribery and anti-corruption

training % 100 100 100

Chinese mainland and Hong Kong Macao and Taiwan Number 54914 61545 67848 Including: total number of management staff covered by anti-

Overseas Number 120 117 108 commercial bribery and anti-corruption training Number 4956 4858 /

Proportion of women in senior management of the Company % 9.70 7.49 3.3 Percentage of management staff covered by anti-bribery and anti-

corruption training % 100 100 /

Employee Salary and Welfare Benefits Percentage of employees in key positions covered by participation

Number of employee activities held and organized annually Number 1593 2006 4049 in anti-corruption (anti-bribery) trainings

%100100100

Number of employees (including directors) who participated in anti-

Number of employees participated in activities in the year Person-time 69540 81935 107952 corruption training Person-time 164237 46675 52153

Comforting special employees and helping employees with Person-time 1543 3108 2550 Amounts involved in litigation or significant administrative penalties difficulties in a year due to the company's unfair competition behavior during the RMB 10000 0 0 0

Total expense on comforting special employees and helping reporting period

employees with difficulties RMB 10000 174.09 268.5 317 Responsible Procurement

Assistance to children’s education of the difficult employees or Number of suppliers who have established long-term cooperation

enrollment scholarship for employees’ children in a year Person-time 434 589 627 with the Company Number 10747 12006 10241

Total expense on offering grants to the children of employees Including: Chinese mainland and Hong Kong Macao and Taiwan Number 10719 11973 10239

with difficulties in going to school or rewarding the children of RMB 10000 60.54 93.87 69 Overseas Number 28 33 2

employees to go to school

Number of suppliers screened and controlled by the Company’s

Helping employees with critical diseases in a year Person-time 131 179 186 environmental and social risks Number 7792 6444 7388

Total expense on helping employees with critical diseases RMB 10000 41.76 36.8 57 Including: Chinese mainland and Hong Kong Macao and Taiwan Number 7698 6444 7386

Employee Training and Development Overseas Number 94 0 2

Number of employee trainings Number 24056 26467 47827 Customer Relations Management

Employee training coverage/percentage of employees trained % 96.57 98.29 97.00

Expenditure investments in scientific research and innovation RMB hundred 24.97 31.69 37.49

Amount of training expenditure RMB 10000 4270.20 3017.95 4243.00 million

Occupational Health and Safety Number of R&D employees Number 7863 9481 8908

New cases of occupational diseases Number 0 0 0 Percentage of R&D employees % 14.28 15.38 13.54

Serious injury rate per thousand persons ‰ 0.00 0.44 0.8 National intelligent manufacturing demonstration factories Number 2 1 1

Accident rates of minor and serious injuries ‰ 0.03 0.44 0.06 Provincial intelligent manufacturing demonstration factories Number 22 21 21

Investment in Workplace Safety RMB 10000 120400 100486 80000 Digital mine Number 21 15 10

Lost work days due to work injuries Day 11 18030 30000 Number of patent applications for inventions during the reporting

period Number 129 188 /

Number of employees participated in occupational health and Number of patents for inventions granted during the reporting period Number 85 92 /

safety training Person-time 863374 663943 1068530

Near accident rates of full-time employees % 0.0187 0.024 0.02 Number of active patents during the reporting period Number 4261 3857 /109 2024 Environmental Social and Governance Report Appendix 110

Key Performance Indicators Unit 2024 2023 2022 Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen

Customer Relations Management Stock Exchange - Sustainability Report (For Trial Implementation)

Accumulated number of patents for utility models Number 3423 3398 2474

Accumulated number of invention patents Number 501 429 278

Chapter Section Guideline Chapter in the Report

Accumulated number of design patents Number 11 11 15

Products recalled due to safety and health concerns % 0 0 0 Article 20 Leading the New Chapter of Green Development

Lawsuits involving product and service safety and health Case 0 0 0 Article 21 Feature: Fulfilling the New Mission on Climate Change

Cement product overall pass rate % 100 100 100 Article 22 Feature: Fulfilling the New Mission on Climate Change

Number of complaints about products and services Article 23 Feature: Fulfilling the New Mission on Climate Change

received during the year Number 68 143 125 Section 1 Article 24 Feature: Fulfilling the New Mission on Climate Change

The percentage of complaints properly replied to and % 100 100 100 Article 25 Feature: Fulfilling the New Mission on Climate Changedisposed accounted for

Article 26 Feature: Fulfilling the New Mission on Climate Change

Number of complaints due to the disclose of customer

information Number 0 0 0 Article 27 Feature: Fulfilling the New Mission on Climate Change

Responsible Business Operations Article 28 Feature: Fulfilling the New Mission on Climate Change

Chapter 3

Total amount invested in public welfare (including material RMB 10000 4285.53 4967 6569.84 Article 29 Leading the New Chapter of Green Developmentdonations) Article 30 Leading the New Chapter of Green Development

Amount of targeted assistance/rural revitalization

investment (including material donations) RMB 10000 3377.73 3531.7 3276 Section 2 Article 31 Leading the New Chapter of Green Development

Amount of educational investment (including material Article 32 Leading the New Chapter of Green Development

donations) RMB 10000 111.29 137.9 231 Article 33 Leading the New Chapter of Green Development

Amount of public facility construction investment RMB 10000 465.60 668.42 1107 Article 34 Leading the New Chapter of Green Development(including material donations)

Article 35 Leading the New Chapter of Green Development

Other donations RMB 10000 330.91 629.35 1787.84 Section 3

Article 36 Leading the New Chapter of Green Development

Number of industrial assistance projects Number 34 70 76

Number of people reached by rural revitalization Number 3400 3684 3520 Article 37 Leading the New Chapter of Green Development

Number of established volunteer organizations or groups Number 13 41 64 Article 38 Driving a New Journey of Co-creating Social Value

Participation in volunteer activities Person-time 2405 3680 5486 Section 1 Article 39 Driving a New Journey of Co-creating Social Value

Number of volunteers among employees Number 1159 3233 3833 Article 40 Driving a New Journey of Co-creating Social Value

Hours of volunteer activities Hour 3319 13107 17445 Article 41 Driving a New Journey of Co-creating Social Value

Total investment of all subsidiaries’ annual support in Section 2 Article 42 Driving a New Journey of Co-creating Social Value

volunteer activities from the Company in a year RMB 10000 3.83 3.1 40.7 Article 43 Not Applicable

Number of participations in or support activities related Chapter 4 Article 44 Driving a New Journey of Co-creating Social Value

to the protection of the rights and interests of women Number 71 310 131

children or the disabled Article 45 Driving a New Journey of Co-creating Social Value

Number of entrepreneurial practice bases Number 3 4 8 Section 3 Article 46 Driving a New Journey of Co-creating Social Value

Student internship position situation Person/day 14760 20200 22597 Article 47 Driving a New Journey of Co-creating Social Value

Number of events participated organized by industry Article 48 Driving a New Journey of Co-creating Social Value

associations (above the provincial level) Number 191 152 141 Article 49 Driving a New Journey of Co-creating Social Value

Section 4

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

Article 51 Building a New Blueprint for Our Vision

Section 1 Article 52 Driving a New Journey of Co-creating Social Value

Article 53 Building a New Blueprint for Our Vision

Chapter 5

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

Section 2 Article 55 Driving a New Journey of Co-creating Social Value

Article 56 Driving a New Journey of Co-creating Social Value111 2024 Environmental Social and Governance Report Appendix 112Indexes of “Reference of ESG Indicators System for ESG Reports ofListed Companies Controlled by Central Enterprises”

Disclosure Information Chapter in the Report Disclosure Information Chapter in the Report

Environmental Indicators Product Safety and Quality Driving a New Journey of Co-creating Social Value – Customer Relations Management

Level I Level II Product

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

Water Resources Leading the New Chapter of Green Development – Developing Relations ManagementCircular Economy Management Driving a New Journey of Co-creating Social Value – Customer

Materials Leading the New Chapter of Green Development – Developing

Innovative Development Relations Management

Source Circular Economy

Leading the New Chapter of Green Development – Embracing Supplier Management Driving a New Journey of Co-creating Social Value – Consumption Energy Supply Green Actions Responsible ProcurementChain Safety

Leading the New Chapter of Green Development – Emission Management Supply Chain Management Driving a New Journey of Co-creating Social Value – Packaging Material Compliance Management Responsible Procurement

Wastewater Leading the New Chapter of Green Development – Emission Tax Payment /Compliance Management

Prevention

and Control of Waste Gas Leading the New Chapter of Green Development – Emission Community Co-building

Driving a New Journey of Co-creating Social Value –

Responsible Business Operations

Pollution Compliance Management Social

Leading the New Chapter of Green Development – Emission Contribution Public Welfare Activities Driving a New Journey of Co-creating Social Value – Solid Waste Compliance Management Responsible Business Operations

Greenhouse Gas Emissions Feature: Fulfilling the New Mission on Climate Change Responding to National Strategies Driving a New Journey of Co-creating Social Value – Responsible Business Operations

Emission Reduction Management Feature: Fulfilling the New Mission on Climate Change

Climate Change Governance Indicators

Environmental Rights Transaction Feature: Fulfilling the New Mission on Climate Change Level I Level II

Climate Risks Management Feature: Fulfilling the New Mission on Climate Change

Governance Strategy and Procedure Driving a New Journey of Co-creating Social Value –

Biodiversity Impacts of Production Services and Leading the New Chapter of Green Development – Biodiversity

Governance Modernized Governance

Products on Biodiversity Protection Strategy and Organizational Structure and Driving a New Journey of Co-creating Social Value –

Low-carbon Development Goal Formulation

and Strategic Measures Feature: Fulfilling the New Mission on Climate Change

Organization Functions Modernized Governance

Framework

Leading the New Chapter of Green Development – Embracing Remuneration Management

Establishing a New Talent Development Center – Employee

Resource Management Measures Salary and Welfare BenefitsGreen Actions Developing Circular Economy

Measures for Energy saving and carbon reduction Internal Control Driving a New Journey of Co-creating Social Value –

Resource and statistical detection & assessment reward Feature: Fulfilling the New Mission on Climate Change Modernized Governance

Environment and punishment system Regulating Driving a New Journey of Co-creating Social Value –

Management Green Action and Measures Leading the New Chapter of Green Development – Embracing Governance

Integrity Building Modernized Governance

System Green Actions

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

Green and Low-carbon Certification Leading the New Chapter of Green Development – Innovate Low- Modernized GovernanceCarbon Products

Environmental Legitimacy and Compliance Leading the New Chapter of Green Development – Emission

Investor Investor Relation Management Building a New Blueprint for Our Vision – Investor

Compliance Management Relations Communication

Management Shareholders’ Equity Building a New Blueprint for Our Vision – Investor Social Indicators and Communication

Level I Level II Shareholders’

Creditors’ Equity Building a New Blueprint for Our Vision – Investor

Establishing a New Talent Development Center – Fulfilling Talent Equity CommunicationRecruitment and Employment Strategy Building a New Blueprint for Our Vision – Investor

Employee Salary and Welfare Benefits Establishing a New Talent Development Center – Employee Salary

Transparency Information Disclosure System Communication

and Welfare Benefits of Information

Employees’ Building a New Blueprint for Our Vision – ESG Awards and

Rights and Employee Health and Safety Establishing a New Talent Development Center – Occupational

Disclosure Information Disclosure Quality Recognitions

Interests Health and Safety

Employee Development and Training Establishing a New Talent Development Center – Employee

Compliant Compliant Operation Driving a New Journey of Co-creating Social Value –

Training and Development Operation Modernized Governance

Establishing a New Talent Development Center – Fulfilling Talent and Risk Driving a New Journey of Co-creating Social Value – Employee Satisfaction Strategy Management

Risk Management Modernized Governance113 2024 Environmental Social and Governance Report Appendix 114

Feedback

Dear Reader

Thanks for your time! Thanks for reading Tianshan Material Co. Ltd.’s 2024 Environmental Social

and Governance Report. To provide you and other stakeholders with more valuable information and

effectively promote the Company to improve its ability and level of corporate social responsibility we

sincerely look forward to your comments and suggestions.Name: Ye Hong

Address: China National Building Material No. 70 Expo Hall Road Pudong New Area Shanghai

Tel: 021-68989175

E-mail: tsgfyehong@126.com

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