Corporate Sustainability

Jinli Group firmly believes that by implementing sustainable corporate development through innovation, social, economic and environmental management, it can create a better future, internalize the spirit of sustainability into Jinli Group’s corporate culture, and connect with external stakeholders, as The inner circle generally expands outward to exert synergy and keep pace with the times, becoming the core value of Jinli Group's implementation of social responsibility.

Adhering to the people-oriented spirit, we provide employees with a safe and healthy working environment, invest and cultivate talents, and practice the role of strategic corporate citizens. We are committed to continuously giving back to the society and exerting a positive social influence through participating in charity activities, educational projects and social work.

We pursue growth by adhering to the core values ​​of "positivity, mutual trust, integrity, and self-examination" and invest in the sustainable development and management of suppliers to ensure that suppliers provide high-quality products and services in a sustainable manner, comply with business ethics, and act responsibly.
 

Item for Evaluation	Implementation			Differences and reasons with the Code of Practice for Sustainable Development
	Y	N	Summary note
1. Has the company established a governance structure to promote sustainable development, and set up a full-time (part-time) unit to promote sustainable development,  , whichis authorized by the board of directors to handle senior management, and supervised by the board of directors? ​	V		1.The Company’s Board of Directors approved the revision of the “Corporate Social Responsibility Code of Practice” on March 30, 2022 and changed its name to the “Sustainable Development Code of Practice”. On June 11, 2024, the Board of Directors assigned the Group’s Finance Department as a part-time unit to promote the sustainable development of the enterprise and established the "Sustainable Development Promotion Unit" which is the company's highest-level sustainable development decision-making center and promotes sustainable development plans with department heads. Senior managers from different fields jointly review the company's core operating capabilities, formulate medium- and long-term sustainable development plans, identify sustainability issues related to the company's operations and stakeholders' concerns, formulate corresponding strategies and work guidelines, compile relevant Budget, plan and implement annual plans related to sustainable development, and track implementation results to ensure that sustainable development strategies are fully implemented in the company's daily operations. 2.In response to the fact that sustainable development covers aspects such as environment, society and corporate governance, the responsible departments collect the concerns of stakeholders on issues such as environmental protection, occupational safety, supply chain management, labor rights, operational performance and corporate governance, and based on respect for stakeholder relationships rights and interests, set interests on the company website Contact the person area. 3.The "Sustainable Development Implementation Group" should hold at least one meeting every year, and the convener will report to the board of directors: (1) identify sustainability issues that require attention and formulate corresponding strategies and action plans; (2) revise goals and policies on sustainability-related issues; (3) supervise and evaluate the implementation of sustainable management matters. 4.The board of directors regularly supervises the team's reports, and the management must propose the company's strategy to the board of directors. The board of directors evaluates the possibility of the strategy's success, reviews the progress of the strategy, and urges the operating team to make adjustments when necessary.	In the future, a sustainable development committee will be established based on the company's operational development.
2.Does the company conduct risk assessments on environmental, social and corporate governance issues related to company operations in accordance with the principle of materiality, and formulate relevant risk management policies or strategies?	V		The performance of this disclosure at major locations covers the period from January 2023 to December 2023. The risk assessment boundary is mainly based on the company, including existing strongholds in mainland China. The company's sustainable development work implementation team conducts analysis based on the principle of materiality, communicates with internal and external stakeholders, reviews domestic and foreign research, integrates the assessment data of various departments and subsidiaries to evaluate material ESG issues, formulate risk management policies to effectively identify, measure, evaluate, supervise and control, and take specific action plans to reduce the impact of related risks. Based on the assessed risks, formulate relevant risk management policies or strategies as follows: Major issues Risk assessment Risk management  strategy Environment Environmental impact and management   Corporate Governance Social economy and legal compliance Products are required to comply with environmental protection regulations, respond to green and clean production, implement sustainable development of environmental protection in the manufacturing process, and regularly track environmental protection plans to ensure that goals are achieved. Corporate Governance Social economy and legal compliance follow By establishing a governance organization and implement internal control system to ensure that our company's personnel and operations actually comply with relevant laws and regulations. Strengthen the functions of directors Directors receive annual refresher courses on current affairs issues and insured directors Liability insurance to protect against lawsuits or the situation of seeking compensation. Communication with stakeholders Analyze important stakeholders and their important issues every year, establish communication channels, and reduce confrontation and misunderstandings. The Group Finance Department handles this and is responsible for responding to investor mailboxes. Society Occupational safety Education and training of firefighting and industrial safety is held regularly every year to train employees on emergency Strain and self-safety management ability. Product safety All products comply with government regulations and statutes, provide products with stable customers quality and improve customer satisfaction degree, regular annual initiative conduct customer satisfaction survey. Check and strengthen mutual cooperation relation.	No significant differences.
3.Environmental issues (1) Whether the company has established an appropriate environmental management system according to its industrial characteristics？	V		The company has established a complete environmental management system based on industrial characteristics and operational needs, and has won: - "2007 Fujian Province Quality Management  Advanced Enterprise" and "Fujian Famous Brand Products" -Issued by Fujian Southeast Standard Certification Center ISO9001:2000 quality control system certification certificate -2008 User Satisfaction Service SA 8000: 2008 Social Responsibility Standard Certification Certificate	No significant differences.
(2) Is the company committed to improving energy efficiency and using recycled materials with low impact on the environment?	V		The Company actively promotes various energy reduction measures to optimize energy usage efficiency. The raw materials used comply with Chinese standards to reduce pollution during the manufacturing process and reduce the impact on the environment. We also reduce unnecessary waste of resources in green manufacturing and seek to develop waste reduction and reuse technologies; we work together upstream and downstream in the value chain to recycle and share packaging materials; in terms of products, we strive to recycle products with low impact on the environment. Material usage measurement maximizes the benefits of circular economy.	No significant differences.
(3) Has the company assessed the current and future potential risks and opportunities of climate change for the company, and taken relevant countermeasures?	V		The Company assesses the impact of climate change. The assessment results and response measures are as follows: Category Factors Countermeasures Energy risk •Government energy policy •Unstable water and electricity supply •When replacing related equipment, we will cooperate with government subsidies to reduce overall costs and reduce energy consumption and demand. •Promote energy conservation and carbon reduction, and reduce water and electricity consumption. Climate risk Total Greenhouse Gas Control Participate in external carbon emission calculation and assessment courses as an Initial plans for response measures plan to reduce carbon emissions in the future emission.	No significant differences.
(4) Has the company counted greenhouse gas emissions, water consumption and total weight of waste in the past two years, and formulated policies for greenhouse gas reduction, water use reduction or other waste management?		V	Although the company has not formulated a corporate energy conservation, carbon reduction and greenhouse gas reduction strategy, it has conducted its major production locations. The greenhouse gas emissions, water consumption and waste amounts in the past two years are as follows: Year 2022 2023 Greenhouse gas emissions 2,130 tons 704.53 tons Water consumption Not checked 14,377 tons	Greenhouse gas reduction, water use reduction and waste management policies will be discussed, including data According to statistics, reduction targets, promotion measures and achievement status.
4.Social issues
(1) Does the company formulate relevant management policies and procedures in accordance with relevant laws and international human rights conventions?	V		The company complies with relevant labor laws and regulations and establishes various management systems and norms such as personnel management regulations and employee work rules to ensure that employees are legally rights and interests.	No significant differences.
(2) Does the company formulate and implement reasonable employee benefit measures (including remuneration, vacation and other benefits, etc.), and appropriately reflect business performance or results in employee compensation?	V		The company has formulated and implemented reasonable employee welfare measures. In addition, the articles of association clearly stipulate that if there is a profit in the current year, more than one thousandth will be allocated as employee compensation and distributed to employees in the form of shares and/or cash. In terms of diversity and equality in the workplace, our company provides equal pay conditions and equal promotion opportunities for both genders to promote a sustainable and inclusive economy. growing up. In 2023, the average proportion of female employees will be approximately 8%, and the average proportion of female supervisors will be approximately 1%.	No significant differences.
(3) Does the company provide employees with a safe and healthy working environment, and conduct regular safety and health education for employees?	V		The company has provided employees with a safe and healthy working environment in accordance with relevant laws and regulations on building public safety, fire safety, etc., and has also conducted employee education and training.	No significant differences.
(4) Has the company established an effective career development training program for employees?	V		The company establishes an annual employee training plan, and regularly conducts internal and external company training for employees based on their job functions and abilities.	No significant differences.
(5) Regarding issues such as customer health and safety, customer privacy, marketing and labeling of products and services, does the company follow relevant laws and international standards,	V		The company has a customer contact hotline and dedicated personnel to handle customer-related issues to protect consumer rights. The company has established personal data protection management systems and policies to manage and protect customer privacy, and safeguard customer data through crisis prevention and education and training.	No significant differences.
(6) Has the company formulated a supplier management policy that requires suppliers to comply with relevant norms on issues such as environmental protection, occupational safety and health, or labor rights, and their implementation status?		V	Although the company has not formulated a supplier management policy that explicitly requires suppliers to comply with relevant standards such as environmental protection, occupational safety and health, or labor rights, At present, suppliers are regularly evaluated every year. In the future, suppliers will be evaluated and reviewed to see whether they have records that impact the environment and society. Depending on the situation, contracts will be signed with major suppliers, including if they violate their corporate social responsibility policies and have any impact on the environment and society. When the impact is significant, it must be terminated at any time.	The company is studying and formulating a supplier management policy, which should have positive and specific requirements for suppliers in terms of environmental protection, occupational safety and health, or labor rights, and also Implement implementation through supplier self-assessment, coaching or education, and performance evaluation.
5. Does the company refer to internationally accepted reporting standards or guidelines to prepare sustainability reports and other reports that disclose the company's non-financial information? Has the previous disclosure report obtained the confidence or assurance opinion of a third-party verification unit?		V	The company has not prepared a sustainability report.	The company expects to start in 2025 in accordance with the internationally accepted reporting guidelines. (GRI Stan dards) to prepares the 2024 sustainability report and will submit it in accordance with regulations.
6. If the company has its own sustainable development code in accordance with the "Code of Practice for Sustainable Development of Listed OTC Companies", please describe the difference between its operation and the prescribed code: The company has formulated a code of practice for sustainable development of listed companies and follows it accordingly.
7. Other important information to help understand the implementation of promoting sustainable development: None.

Implementation of Climate-Related Information:

Item	Execution situation
1. Describe the board of directors' and management's oversight and governance of climate-related risks and opportunities.	The company has not yet established a relevant climate management committee, Management is in the process of evaluating the TCFD and reporting to the Board  of Directors after the evaluation is completed, the relevant information is expected to be disclosed in the 2025 annual report.
2. Describe how the identified climate risks and opportunities affect the business, strategy, and finances of the business (short, medium, and long term).	Management is in the process of evaluating the TCFD and reporting to the Board of Directors after the evaluation is completed, the relevant information is expected to be disclosed in the 2025 annual report.
3. Describe the financial impact of extreme weather events and transformative actions.	Management is in the process of evaluating the TCFD and reporting to the Board of Directors after the evaluation is completed, the relevant information is expected to be disclosed in the 2025 annual report.
4. Describe how climate risk identification, assessment, and management processes are integrated into the overall risk management system.	Management is in the process of evaluating the TCFD and reporting to the Board of Directors after the evaluation is completed, the relevant information is expected to be disclosed in the 2025 annual report.
5. If scenario analysis is used to assess resilience to climate change risks, the scenarios, parameters, assumptions, analysis factors and major financial impacts used should be described.	The Company has not used scenario analysis to assess its resilience to the risks of climate change.
6. If there is a transition plan for managing climate-related risks, describe the content of the plan, and the indicators and targets used to identify and manage physical risks and transition risks.	The Company has no transformation plan to manage climate-related risks.
7. If internal carbon pricing is used as a planning tool, the basis for setting the price should be stated.	The Company has not yet used internal carbon pricing.
8. If climate-related targets have been set, the activities covered, the scope of greenhouse gas emissions, the planning horizon, and the progress achieved each year should be specified. If carbon credits or renewable energy certificates (RECs) are used to achieve relevant targets, the source and quantity of carbon credits or RECs to be offset should be specified.	The Company has not yet set climate-related goals.
9. Greenhouse gas inventory and assurance status and reduction targets, strategy, and concrete action plan.	The company does not meet certain conditions, so it is not applicable.