China Huajun : Financial Statements/ESG Information –

CHINA HUAJUN GROUP LIMITED

中國華君集團有限公司

(Incorporated in Bermuda with limited liability)

(Stock Code: 377)

ENVIRONMENTAL,

SOCIAL AND

GOVERNANCE

REPORT

2021

ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

CONTENTS

	Pages
ABOUT THIS REPORT	2
STATEMENT FROM THE BOARD	3
GOVERNANCE STRUCTURE	3
STAKEHOLDERS ENGAGEMENT	4
MATERIALITY ASSESSMENT	5
SUSTAINABILITY PERFORMANCE SUMMARY	6
PRINTING BUSINESS	8
ENVIRONMENTAL POLICIES AND MANAGEMENT SYSTEM	8
EMISSIONS MANAGEMENT	9
USE OF RESOURCES	13
THE ENVIRONMENT AND NATURAL RESOURCES	14
CLIMATE CHANGE	15
PRODUCT QUALITY, HEALTH AND SAFETY	15
SOLAR PHOTOVOLTAIC BUSINESS	16
ENVIRONMENTAL POLICIES AND MANAGEMENT SYSTEM	16
EMISSIONS MANAGEMENT	17
USE OF RESOURCES	19
THE ENVIRONMENT AND NATURAL RESOURCES	21
CLIMATE CHANGE	21
PRODUCT QUALITY, HEALTH AND SAFETY	21
ENERGY BUSINESS	22
ENVIRONMENTAL POLICIES AND MANAGEMENT SYSTEM	22
EMISSIONS MANAGEMENT	22
USE OF RESOURCES	25
THE ENVIRONMENT AND NATURAL RESOURCES	26
CLIMATE CHANGE	26
PRODUCT QUALITY, HEALTH AND SAFETY	26
EMPLOYMENT	27
HEALTH AND SAFETY	30
DEVELOPMENT AND TRAINING	31
LABOUR STANDARDS	32
SUPPLY CHAIN MANAGEMENT	33
PRIVACY PROTECTION	33
INTELLECTUAL PROPERTY RIGHTS	33
ANTI-CORRUPTION	34
COMMUNITY INVESTMENT	34
HKEx ESG REPORTING GUIDE CONTENT INDEX	35

ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2021	1

ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

ABOUT THIS REPORT

The board (the "Board") of directors (the "Director(s)") of China Huajun Group Limited (the "Company") is pleased to present the Environmental, Social and Governance ("ESG") Report (this "Report") of the Company and its subsidiaries (collectively referred to as the "Huajun", the "Group" or "us"). This Report mainly introduces our management policies, strategies and achievements in environmental, social and governance and aims at strengthening our communication and relationship with stakeholders.

This Report covers our ESG performance for the year ended 31 December 2021 (the "Current Year"). The reporting scope for the Current Year focuses on the ESG performance of printing business, solar photovoltaic business, and energy business. Our trading and logistics, financial services business, property development and investment business did not contribute significantly to environmental impact, and so these activities are excluded from this Report.

In preparation of this Report, we have adhered to the ESG Reporting Guide (the "Guide") under Appendix 27 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") to disclose our ESG performance in material and related aspects of the Guide during the Current Year. The following reporting principles served as the foundation in preparation of this Report.

Materiality	Quantitative
Following an ESG stakeholder engagement exercise	This Report discloses relevant ESG key performance
and a materiality assessment, this Report is	indicators ("KPIs") and quantitative information of the
structured based on the materiality of ESG issues	printing business, solar photovoltaic business and
of the Group. The Board and management review	energy business. Quantitative information is further
these sustainability issues annually to ensure that	accompanied by descriptions where appropriate.
stakeholder's opinions are reflected. The results of
the materiality assessment process is set out in
the section headed 'Materiality Assessment' in this
Report.

Consistency

This Report follows methodologies that are consistent with previous years, which allows for meaningful comparison of ESG data over time. There was no significant change with the reporting scope of this Report.

We value any comments you may have on our ESG performance. If you have any comments or suggestions on this Report and our ESG performance, please email to [e-mail].

This report is available on the websites of the Company (http://www.chinahuajungroup.com) and Hong Kong Exchanges and Clearing Limited ("HKEx") (http://www.hkex.com.hk).

2	CHINA HUAJUN GROUP LIMITED

ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

STATEMENT FROM THE BOARD

With the development strategy of health and green, diversified group companies that focus on health, printing, equipment, energy, department stores, finance, and real estate, have developed a diversified integrated enterprise business model. The business links are interlinked, reflecting the rich group resources and financial strength, and at the same time giving full play to the synergies to enhance the overall operating efficiency, and guided by national policies, prospectively review and plan for future development, solidify its existing business. At the same time, it will also actively identify merger and acquisition opportunities and seize opportunities for economic development in China and the world. As its business evolves, the Group will continue to create value to its stakeholders as well as strive to uphold its unique strengths and features.

Mission and Objectives

Take people's livelihood and green as strategy development

Take business diversification as the core of group company

It has long been a commitment of the Group to creating economic, social, and environmental value for all stakeholders, including shareholders, employees, customers, etc. An environmental, social, and governance structure was established by the Group to enhance its efforts. The Board is responsible for overseeing the Group's ESG vision, objectives and strategies for the short, medium and long terms. As well as identifying material ESG issues for the Group, the Board also assesses, prioritizes and manages these issues, and considers relevant ESG risks and opportunities.

In order to effectively manage environmental, social, and governance matters, the Group has established an environmental, social, and governance working group to assist the Board in overseeing and promoting the implementation of various ESG strategies. The working group assists the Board in identifying and prioritizing important issues, reporting regularly to the Board about the Group's performance related to environmental and social key performance indicators, as well as preparing an annual ESG report.

To create long-term value for all stakeholders, the Board will continue reviewing and improving sustainable development efforts and performance in the years to come.

GOVERNANCE STRUCTURE

• The Board is responsible for overseeing ESG related
Board	matters, including the formulation of relevant policies and
	procedures.
• The working group is responsible for assisting the Board in
ESG working group	implementing various daily management work for ESG
	matters.
•	Each functional department is responsible for
Functional departments	implementing various measures formulated by the Group
	in connection with ESG matters.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2021	3

ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

STAKEHOLDERS ENGAGEMENT

Understanding the views and concerns of stakeholders is crucial to our sustainable development. Our major stakeholders include customers, suppliers, employees, shareholders, regulatory authorities and the public. We have always maintained a close relationship with our stakeholders and are committed to balancing the opinions and interests of our stakeholders to determine our long-term sustainability direction. In preparation of this Report, we actively gathered the advice of our key stakeholders and understood their recommendations on the sustainability performance and direction of the Group. The information collected will be an important basis for the framework of this Report.

Stakeholders	Communication channels
Customers	•	Interviews	•	Meetings
	•	Visits	•	Email
	• Social platforms (such as
		WeChat Official Account)
Employees	•	Meetings	•	Trainings
	•	Interviews	•	Discussion sessions
Shareholders	•	General meetings	•	Company's website
	•	Telephone conversation	•	Announcements
	•	Financial reports
Suppliers	•	Conversation	•	On-site inspection
	•	Email
Regulatory authorities	•	Conversation	•	On-site inspection
	•	Email
The public	•	Social platforms (such as	•	Interviews
		WeChat Official Account)
	•	Company's website	•	Sharing sessions

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