The Company strictly abides by and implements the Environmental Protection Law of the PRC, the Atmospheric Pollution Prevention and Control Law of the PRC, the Water Pollution Prevention and Control Law of the PRC , the Soil Pollution Prevention and Control Law of the PRC, the Water and Soil Conservation Law of the PRC, the Law of the PRC on the Prevention and Control of Environment Pollution Caused by Solid Wastes, the Law of the PRC on Prevention and Control of Pollution from Environmental Noise, the Cleaner Production Promotion Law of the PRC, the Energy Conservation Law of the PRC, Measures for the Administration of Permit for Operation of Dangerous Wastes, and other laws and regulations concerning air and greenhouse gas emissions, discharges into water and land and waste generation that have a significant impact on the Company. Concerning the aforementioned laws and regulations, the Company has developed the Environmental Policy Statement of Sinoma International.

The Environmental Policy Statement of Sinoma International, applied across our production operations and business facilities, products and services, distribution and logistics, management of waste, due-diligence, mergers, and acquisitions of the headquarters and all the subsidiaries of the Company, as well as to the commercial activities of the Company and all the subsidiaries with suppliers, contractors, affiliated companies, and other business partners, is to make a statement regarding the following actions we will take:

1. Comply with or exceed all applicable environmental legislation and continually implement and improve our environmental management systems, always striving to meet or exceed industry best practice standards;

2. Reduce the emissions of atmospheric pollutants, water pollutants, harmful waste, and harmless waste, improve resource utilization efficiency, and reduce the negative impact of our production and operation on the environment;

3. Address proactively the challenges of climate change, optimise our use of energy, water, land and other resources, continuously reduce the intensity of GHG emissions, so as to achieve the overall target of “carbon peaking before 2030 and carbon neutrality before 2060”;

4. Promote sustainable product and process innovation and new business opportunities;

5. Develop environmental targets related to energy conservation, emission reduction,  and resource utilization, and continuously improve our environmental performance accordingly;

6. Support and enhance biodiversity management, ensuring legal and compliant use of land, improve land use efficiency, protect arable land, and avoid ecological damage caused by the Company’s operations;

7. Conduct online or offline environmental compliance audits of the Company's operating units annually, and ensure that the compliance audits covers all operating locations;

8. Committed to enhancing environmental awareness among internal and external stakeholders. For employees, we provide various types of training to help them understand the impact of their work on the environment, as well as their environmental responsibilities and obligations; for other stakeholders, we maintain open communication and ensure that our partners such as contractors and suppliers are aware of and adhere to their environmental responsibilities through various stakeholder participation and communication channels; for communities, by maintaining positive relationships with stakeholders, we are committed to bringing positive environmental impacts to the communities where the Company operates.

Roles and Responsibilities

In order to ensure the implementation of the Policy, the Company has established the responsibility structure of environmental management.

1. Governance level

The Board of Directors of the Company is responsible for establishing and improving the Company's environmental, social, and governance (ESG) management system. The Strategy, Investment, and ESG Committee is responsible for evaluating the Company's environmental management work, as well as the risks and opportunities it faces, developing, reviewing the company's environmental management vision, goals, and strategies, and reporting major issues to the Board of Directors.

2. Management level

The chairman and the president jointly assume the leadership responsibility of environmental protection, while the vice president in charge of environmental protection implements the overall environmental protection leadership, while other management staff are responsible for the environmental protection within their respective areas of responsibility. As the first person responsible for the environmental protection work of the department, the person in charge of each department leads the employees of the department to actively implement the contents of the Policy.

3. Employees

All employees of the Company and the subsidiaries of Sinoma International must read and understand their obligations under this Policy and notify their manager of potential or actual violations of environmental permits, regulations or policies.

（The English translation of the Policy Statement is for reference only and the Chinese version shall prevail in case of any inconsistency between the Chinese version and English translation thereof）