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

2023

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	9
ENVIRONMENTAL POLICIES AND MANAGEMENT SYSTEM	9
EMISSIONS MANAGEMENT	10
USE OF RESOURCES	15
THE ENVIRONMENT AND NATURAL RESOURCES	17
CLIMATE CHANGE	17
PRODUCT QUALITY, HEALTH AND SAFETY	18
ENERGY BUSINESS	19
ENVIRONMENTAL POLICIES AND MANAGEMENT SYSTEM	19
EMISSIONS MANAGEMENT	19
USE OF RESOURCES	22
THE ENVIRONMENT AND NATURAL RESOURCES	23
CLIMATE CHANGE	23
PRODUCT QUALITY, HEALTH AND SAFETY	24
EMPLOYEES	25
HEALTH AND SAFETY	28
DEVELOPMENT AND TRAINING	29
LABOUR STANDARDS	30
SUPPLY CHAIN MANAGEMENT	30
PRIVACY PROTECTION	31
INTELLECTUAL PROPERTY RIGHTS	31
ANTI-CORRUPTION	31
COMMUNITY INVESTMENT	32
HKEx ESG REPORTING GUIDE CONTENT INDEX	33

ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2023	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") and its subsidiaries (collectively referred to as the "Huajun", the "Group" or "us") is pleased to present the Environmental, Social and Governance ("ESG") Report (the "Report"). Our ESG report is not only to share our sustainability strategies, management approaches and performance with our stakeholders, but also to comprehensively introduce our ongoing activities for our sustainable development towards the society and environment.

This Report covers our ESG performance for the year ended 31 December 2023 (the "Current Year"). The reporting scope for the Current Year focuses on the ESG performance of printing business and energy business. This Report excludes our trading and logistics, property development and investment businesses due to their insignificant environmental impacts. For financial services business, due to volatile and weakness in capital market and continuing operating loss incurred by the financial services business, the Group has reduced its scale and disposed of the core financial services business in May 2023.

In preparation of this Report, we have adhered to the ESG Reporting Guide (the "Guide") under Appendix C2 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Stock Exchange"). This Report has been prepared according to the "comply or explain" provisions and reporting principles in the ESG Reporting Guide, which includes:

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 and energy business. Quantitative
of the Group. The Board and management review	information is further accompanied by descriptions
these sustainability issues annually to ensure that	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.
Balance	Consistency
The Report impartially describes the Group's	This Report follows methodologies that are consistent
performance for the Current Year, to avoid selections,	with previous years, which allows for meaningful
omissions, or presentation formats that may	comparison of ESG data over time. There was no
inappropriately influence a decision or judgment by the	significant change with the reporting scope of this
report reader.	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

The Group has long been committed to creating economic, social, and environmental value for all stakeholders, including shareholders, employees and customers, etc. An ESG structure was established to manage and assess ESG performance and the relevant policies. The Board is the highest decision-making level of the Group which takes full responsibility for ESG strategy and reporting. The Board is responsible for overseeing the Group's ESG vision, objectives and strategies for the short, medium and long terms. The Board also identifies, assesses, prioritizes and manages material ESG issues for the Group, and considers relevant ESG risks and opportunities.

In order to effectively manage ESG matters, the Group has established an ESG working group. The working group assists the Board in overseeing and promoting the implementation of various ESG strategies. The working group is responsible 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.

We also get all functional departments of the Group involved in responsible for organizing, promoting, and implementing various ESG related tasks under the Group's ESG management policies and strategies.

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.

Mission and Objectives

Take people's livelihood and green as strategy development

Take business diversification as the core of group company

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 2023	3

ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

STAKEHOLDERS ENGAGEMENT

We believe understanding the views and concerns of stakeholders is crucial to our sustainable development. 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 engage with different stakeholder groups through various communication channels on a continuing basis to allow two way communication 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)
Staff	•	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

4	CHINA HUAJUN GROUP LIMITED

ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

MATERIALITY ASSESSMENT

To ensure this report has adequately addressed and responded to the major concerns of stakeholders, in addition to regular contacts with them, the Group has made reference to certain information such as the matters covered in ESG reports of the previous years, internal policies of the Company, industry trends and the Materiality Map introduced by the Sustainability Accounting Standards Board, to identify issues that have potential and practical impact on the sustainable development of the Group. The Group has analysed and prioritised the ESG issues based on certain factors such as its strategies, development and objectives, and the results are as follows:

High

Significant to Stakeholders

Low

	8	14	13
6	4	11	9

15	2	7	1	10
3
		12
5

		Significant to our Group	High
1	Exhaust gas and greenhouse gas emissions	2	Hazardous waste
3	Non-hazardous waste	4	Energy consumption
5	Water consumption	6	Environment and natural resources
7	Climate change	8	Employment
9	Employees' health and safety	10	Employees' development and training
11	Labour standards	12	Supply chain management
13	Product responsibility	14	Anti-corruption
15	Social responsibility

ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2023	5

ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

SUSTAINABILITY PERFORMANCE SUMMARY

The following table summarises our sustainability performance during the Current Year.1

		Printing business	Energy business		Total
Air emissions
Nitrogen Oxides (NOx)	645,926.40	g	110,984.80	g	756,911.20	g
Sulphur Oxides (SOx)	621.94	g	260.61	g	882.55	g
Particulate Matter (PM)	52,453.27	g	10,631.70	g	63,084.97	g
Greenhouse gases
Total greenhouse gas emissions	7,947.08	tonnes	158.21	tonnes	8,105.29	tonnes
Direct emissions (Scope 1)	440.59	tonnes	47.13	tonnes	487.72	tonnes
Indirect emissions (Scope 2)	7,508.49	tonnes	114.53	tonnes	7,623.02	tonnes
Greenhouse gases removal	2.00	tonnes	3.45	tonnes	5.45	tonnes
	(Tree Planting) (Scope 1)
Greenhouse gas emissions intensity	0.98	tonnes/tonnes	71.06	kg/tonnes of
			of production		production
			volume		volume
Hazardous waste
Total hazardous waste produced	109.11	tonnes	-	tonnes	109.11	tonnes
Hazardous waste produced intensity	13.49	kg/tonnes of	-	kg/tonnes of
			production		production
			volume		volume
Non-hazardous waste
Total non-hazardous waste produced	2,587.04	tonnes	3.00	tonnes	2,590.04	tonnes
Non-hazardous waste produced intensity	0.32	tonnes/tonnes	1.32	kg/tonnes of
			of production		production
			volume		volume
Energy consumption
Total energy consumption	13,788.40	MWh	392.30	MWh	14,180.70	MWh
Energy consumption intensity	1.70	MWh/tonnes	0.17	MWh/tonnes
			of production		of production
			volume		volume
Water consumption
Total water consumption	122,113.00	m3	14,800.00	m3	136,913.00	m3
Water consumption intensity	15.10	m3/tonnes of	6.51	m3/tonnes of
			production		production
			volume		volume
Packaging material
Total packaging material	2,963.03	tonnes	-	tonnes	2,963.03	tonnes
Packaging material intensity	0.37	tonnes/tonnes	-	tonnes/tonnes
			of production		of production
			volume		volume
1	The annual production volume of printing business is calculated based on the weight of finished products in tonnes and

the annual production volume of energy business is calculated based on the weight of goods delivered in tonnes.

6	CHINA HUAJUN GROUP LIMITED

ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

	Printing business	Energy business			Total
Employment
Total employees (As at 31 December 2023)	948	persons	62	persons	1,010	persons
By gender
Male	463	persons	38	persons	501	persons
Female	485	persons	24	persons	509	persons
By age group
<25	34	persons	-	persons	34	persons
25-29	51	persons	5	persons	56	persons
30-39	180	persons	28	persons	208	persons
40-49	422	persons	26	persons	448	persons
>50	261	persons	3	persons	264	persons
By employment type
Junior staff	827	persons	14	persons	841	persons
Senior staff	108	persons	38	persons	146	persons
Management	13	persons	10	persons	23	persons
By geographical region
Hong Kong	8	persons	2	persons	10	persons
PRC	940	persons	60	persons	1,000	persons
Turnover rate
Total turnover rate	25	%	-	%	23	%
By gender
Male	28	%	-	%	26	%
Female	22	%	-	%	21	%
By age group
<25	132	%	-	%	132	%
25-29	43	%	-	%	39	%
30-39	38	%	-	%	33	%
40-49	10	%	-	%	9	%
>50	22	%	-	%	22	%
By geographical region
Hong Kong	-	%	-	%	-	%
PRC	25	%	-	%	23	%
Health and safety
Deaths due to work	-	persons	-	persons	-	persons
Number of work injury cases	11	cases	-	cases	11	cases
Lost days due to work injury	100.5	days	-	days	100.5	days

ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2023	7

ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

	Printing business	Energy business		Total
Employee training
Employees participated in training	948	persons	43	persons	991	persons
By gender
Male	464	persons	25	persons	489	persons
Female	484	persons	18	persons	502	persons
By employment type
Junior staff	827	persons	-	persons	827	persons
Senior staff	108	persons	33	persons	141	persons
Management	13	persons	10	persons	23	persons
Average training hours
Employees participated in training	3.83	hours/employees	3.37	hours/employees	3.81	hours/employees
By gender
Male	4.17	hours/employees	1.18	hours/employees	3.94	hours/employees
Female	3.51	hours/employees	4.17	hours/employees	3.54	hours/employees
By employment type
Junior staff	4.00	hours/employees	-	hours/employees	3.93	hours/employees
Senior staff	2.77	hours/employees	3.03	hours/employees	2.84	hours/employees
Management	2.00	hours/employees	3.00	hours/employees	2.43	hours/employees
Employees trained
By gender (% of total number of
employees trained)
Male	49	%	58	%	49	%
Female	51	%	42	%	51	%
By employment type (% of total number of
employees trained)
Junior staff	87	%	-	%	84	%
Senior staff	12	%	77	%	14	%
Management	1	%	23	%	2	%
Supply Chain Management
Number of suppliers
Hong Kong	29		-		29
PRC	436		24		460
Others	4		1		5

8	CHINA HUAJUN GROUP LIMITED

ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

PRINTING BUSINESS

Being an environmentally conscious and sustainable company, we are committed to protecting the environment. We have established an environmental management mechanism in accordance with the "Environmental Protection Law of the People's Republic of China", the "Law of the People's Republic of China on the Prevention and Control of Environmental Pollution by Solid Waste" and the "Law of the People's Republic of China on Conserving Energy", aiming to:

• ensure compliance with national and local environmental protection laws, regulations, standards and guidelines in places where we operate;
• minimise waste generation as much as possible during the production process;
• avoid pollution to the environment during the production process;
• monitor the implementation of environmental, health and safety measures, as well as the performance of partners in relevant aspects;
• enhance product quality and efficiency through research, product development and trainings to save energy and resources; and
• increase staff awareness of energy conservation systematically.

ENVIRONMENTAL POLICIES AND MANAGEMENT SYSTEM

Establishing a sound environmental management system is an effective way to reduce the environmental impact of production and promote our sustainable improvement. Therefore, we have been making efforts to establish and improve our environmental policies and management system.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2023	9