Hua Gong Technology Industry Co., Ltd.
Sustainable Development (ESG) Management System (Draft)
(Applicable after H-share issuance and listing)
Chapter 1 General Principles
Article 1 In order to further strengthen the ESG (Environmental, Social, and Governance) management of Hua Gong Technology Industry Co., Ltd. (hereinafter referred to as "the Company"), actively fulfill ESG responsibilities, and in accordance with the relevant laws, regulations, and normative documents such as the "Company Law of the People's Republic of China," "Guidelines for the Governance of Listed Companies," "Basic Norms for Internal Control of Enterprises," "Self-Regulatory Guidelines No. 1 for Listed Companies on the Shenzhen Stock Exchange - Standardized Operations," "Self-Regulatory Guidelines No. 17 for Listed Companies on the Shenzhen Stock Exchange - Sustainable Development Reports (Trial)," "Securities Listing Rules of The Stock Exchange of Hong Kong Limited" and its appendices, as well as the relevant provisions of the "Articles of Association of Hua Gong Technology Industry Co., Ltd." (hereinafter referred to as "the Articles of Association"), and in combination with the actual situation of the Company, this system is formulated.
Article 2 The ESG responsibilities referred to in this system mean the responsibilities and obligations that the Company should fulfill in terms of environmental (Environmental), social (Social), and corporate governance (Governance) during its operational development, mainly including the protection of the natural environment and resources, the assumption of social responsibilities, and the soundness and transparency of corporate governance.
Article 3 The stakeholders referred to in this system are organizations or individuals whose interests may be affected by the Company's decisions or operational activities, including shareholders (investors), creditors, employees, partners, customers, suppliers, community organizations, and relevant government departments.
Article 4 This system applies to the Company and its wholly-owned and controlling subsidiaries included in the scope of the Company's consolidated financial statements (hereinafter referred to as "subsidiaries").
Chapter 2 ESG Responsibility Philosophy and Principles
Article 5 The Company considers social benefits, actively fulfills its environmental, social, and corporate governance (ESG) responsibilities, and strives to achieve a coordinated unity of social benefits and economic benefits.
Article 6 The Company fully implements the new development philosophy of innovation, coordination, green development, openness, and sharing, integrating it into all areas and processes of operational development. Through active practices in safety production, technological innovation, corporate governance, and talent cultivation, the Company promotes high-quality industrial development, committed to contributing to society while achieving environmentally friendly development.
Article 7 The Company respects and protects the legitimate rights and interests of stakeholders, committed to promoting effective communication and interaction with stakeholders, and providing necessary conditions and guarantees for safeguarding their legitimate rights and interests.
Article 8 The Company supports the employee representative assembly, employee congress, and trade union organizations in exercising their powers according to the law. The Board of Directors and management should widely listen to employees' opinions and suggestions regarding the Company's operations and significant matters involving employee interests through diversified communication channels.
Article 9 The Company actively practices the concept of green development, incorporates ecological and environmental protection requirements into the Company's development strategy and governance processes, and actively participates in ecological civilization construction, pollution prevention and control, resource conservation, and ecological protection.
Article 10 While ensuring the Company's sustainable development, enhancing operational performance, and safeguarding shareholder interests, the Company actively participates in regional construction, disaster relief, and public welfare undertakings, effectively fulfilling its corporate social responsibilities.