Weiye : SUSTAINABILITY REPORT FY2020

蓄 勢 待 發 共 繪 精 彩

2 0 2 0

S U S T A I N A B I L I T Y R E P O RT

年度可持績發展報告

Contents
About This Report ............................................................................................	1
Reporting Period ..........................................................................................	1
Reporting Scope ...........................................................................................	1
Reporting Basis .............................................................................................	1
Information and Feedback ............................................................................	1
Sustainability Management .............................................................................	2
Introduction ..................................................................................................	2
Sustainability Strategy ..................................................................................	3
Stakeholder Engagement ............................................................................	4
Materiality Assessment .................................................................................	4
Environmental Aspects ....................................................................................	5
Emissions .......................................................................................................	5
Use of Resources ...............................................................................................	6
Green Building ..............................................................................................	6
Green Office ..................................................................................................	7
The Environment and Natural Resources ....................................................	7
Environmental KPIs .......................................................................................	7
Social Aspects .................................................................................................	10
Supply Chain Management..........................................................................	10
Product Responsibility ....................................................................................	11
Product Quality ...........................................................................................	11
Customer Services .......................................................................................	12
Employment and Labour Standards ..............................................................	13
Overview of Employees ..............................................................................	13
Health and Safety .......................................................................................	15
Development and Training ........................................................................	17
Anti-corruption ...............................................................................................	19
Community Involvement ..............................................................................	19

About This Report

Weiye Holdings Limited (the "Company" together with its subsidiaries, hereinafter referred to as the "Group") is pleased to present our Environmental, Social and Governance Report for year ended 31 December 2020 (the "Report") to provide an overview of the Group's management of significant issues affecting the operation, including environmental, social and governance ("ESG") issues.

The board of directors (the "Board") has overall responsibility for the Group's ESG strategy and reporting. The Board is responsible for evaluating and determining the Group's ESG- related risks and ensuring that appropriate and effective ESG risk management and internal control systems are in place. For details on corporate governance, please refer to the "Corporate Governance Report" of the Group's 2020 Annual Report.

Reporting Period

The Report illustrates the Group's initiative and performance regarding the environmental and social aspects during the reporting period from 1 January 2020 to 31 December 2020 (the "Reporting Period").

Reporting Scope

This Report covers certain subsidiaries of the Group with core business that principally engaged in property development for residential and commercial properties. Among the business segment of property development, we disclosed certain key performance indicators ("KPIs") for those entities with actual equity interest of over 50% and with completed project progress of over 50% during the Reporting Period.

Henan Province		Hainan Province		Guangdong Province
• Henan Weiye Construction		• Weiye Holdings Group		• Huizhoushi Dajinzhou
Development Group Co., Ltd.		(Hainan) Co., Ltd.		Property Development Co.,
• Henan Xingwei Zhuolian		• Wanning Yingde Property		Ltd.
Property Co., Ltd		Co., Ltd.		• Guangdong Leiding Property
• Henan Tiandao Assets		• Tunchang Hongji Weiye		Development Co., Ltd.
Management Co., Ltd.		Property Development Co.,		• Huizhou Dayawan Pengrun
• Henan Xingwei Property Co.,		Ltd.		Property Co., Ltd.
Ltd.		• Tunchang Yajing Property
• Xinxiang Weiye Property Co.,		Co., Ltd.
Ltd.

Reporting Basis

The Report is prepared with the ESG Reporting Guide set out by Appendix 27 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules"). The Group has complied with the disclosure requirements of the "comply or explain" provisions set out in the ESG Reporting Guide. Certain KPIs which is considered as material by the Group during the Reporting Period are disclosed in the Report. The Group will continue to optimize and improve the disclosure of KPIs. The Report is prepared and published in both English and Chinese. In the event of contradiction or inconsistency, the English version shall prevail.

Information and Feedback

The Group values your views on this Report. Should you have any comments or suggestions, please feel free to email us at [e-mail].

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Sustainability Management

Introduction

Founded in 1999, Weiye Holdings Limited is principally engaged in developing large-scale and multi-phased property projects in the People's Republic of China (the "PRC"). The Group was listed on the Mainboard of the Singapore Exchange Securities Trading Limited (the "SGX-ST") in August 2011 and dual primary listed on the Stock Exchange of Hong Kong Limited in April 2016. In August 2018, the Company voluntarily delisted from the SGX-ST.

After more than 20 years of development, Weiye has become the leading green living lifestyle provider and operator in the PRC. With the enterprise mission of "Carrying people's dream of living in peace and drawing pictures of happy life for people" and the enterprise development theme of "environment-friendly housing investment and development", Weiye firmly seizes the historical opportunity of the rapid rise of the Central Plains Economic Zone and the vigorous development of Hainan International Tourism Island. Weiye has completed its strategic layout from Henan to Hainan, and successfully entered China's first- tier metropolitan areas such as the Pearl River Delta and Yangtze River Delta, with products covering industrial bases, tourism real estate, high-end residences, commercial offices and commercial complexes.

At of 31 December 2020, the Group's portfolio comprised of 33 property development projects which were either completed or under various stages of development in the PRC, the development of which is set out below:

Project Type	Number	Total GFA (ten thousand
square meters)
Completed	24	300.76
Under development	8	54.05
Held for future development	1	7 (planned GFA)

In addition to developing its own real estate projects, the Group also engages in joint real estate development projects and provides project management services for partner landholders in real estate development.

Due to its quality standards in construction and management, the Group has built the brand and attained numerous awards from past years such as "Top 50 Property Development Enterprise of Comprehensive Strengthen in Henan", "Leading Property Development Enterprise in Zhengzhou City", "Excellence Property Development Enterprise in Zhengzhou City" (鄭州市房地產開發優秀企業), "Best Residential Landscape Design in Kaifeng City" (開封 市最佳人居景觀設計獎), and "Economy Development Contribution Enterprise Excellence in Hongqi District" (紅旗區經濟發展突出貢獻企業獎).

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On the basis of consolidating the development and construction of real estate projects, the Company takes financial capital and intelligent technology as two wings, and extends its business to several fields at home and abroad at the same time, such as cold chain business, technology purification equipment business, etc.

In the future, Weiye will continue to create high quality environment-friendly products from the perspective of the user. Weiye will continuously carry out product innovation to improve product quality, and realize people's dream of having great housing by providing an environment-friendly and healthy living environment. To become a world-class green residential and living industry group trusted by the public with more responsibility and value, Weiye is contributing to the promotion of urban and rural construction and sustainable social development.

Sustainability Strategy

Senior management of the Group is primarily responsible for managing the Group's sustainability performance and reporting to the Board on a regular basis. The Board also oversees them to ensure the alignment of the overall sustainability performance with the business strategy.

As a premium property developer, the Group fully understands the importance of sustainability-driven operation to its long-term business development. While pursuing economic growth and meeting consumer needs, we also focus on protecting the environment, caring for our employees, serving the community, and creating a healthy and comfortable living environment. We are committed to maintaining communication and cooperation with our stakeholders to mitigate environmental and social risks in our business operations, to enhance our environmental and social benefits, and to drive a long-term stable development of our business.

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Stakeholder Engagement

The Group is well aware of the interaction and importance of its business operations with internal and external stakeholders. Thus, we set up and constantly improve our effective communication mechanisms to understand and manage the expectations and needs of our key stakeholders through various channels and to maintain a collaborative relationship with stakeholders for the long term.

Stakeholders	Communication Channels	Frequency
	The Board	Board meeting	Quarterly
	Reporting to the Board	Throughout the year
Internal		Intranet, email and
Stakeholders	Employees	meetings	Throughout the year
	Employee trainings
		Employee activities
	Government and	Regular information	Monthly
	regulatory agencies	reporting
		Announcements and	Throughout the year
	Shareholders and	newsletters
	investors	Annual General Meeting	Annually
		Company website	Throughout the year
		Customer service center	Throughout the year
		and hotline
External
	Customer satisfaction	Upon project
Stakeholders
Customers	survey	handover
		Social media platforms
		(such as WeChat public	Throughout the year
		account)
	Suppliers	Bidding process	Throughout the year
		Social media platforms
	Community	(such as WeChat public	Throughout the year
		account)

Materiality Assessment

The Group re-examined and reviewed the materiality issues determined in the 2017's Report in accordance with the "Materiality" principle in the "ESG Guide" of the Stock Exchange. On this basis, we have further determined the materiality issues that are necessarily prioritized for consideration during the Reporting Period. Details of such materiality issues are as follows:

Environmental Aspects

Materiality issues	Corresponding
	section(s)
• Environmental	• Emissions
Compliance	• Use of Resources
• Use of Resources

Social Aspects

Materiality issues	Corresponding
	section(s)
• Product	• Product Quality
Responsibility	• Development and
• Development and	Training
Training	• Health and Safety
• Health and Safety	• Anti-corruption
• Anti-corruption

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Environmental Aspects

Emissions

The Group fully acknowledges that, as a company engaged in property development, construction and use of buildings will generate certain emissions and its business activities will inevitably cause environmental impacts. Therefore, in response to the government requirements, the Group undertakes to minimize negative impacts on the environment during its business operations. The Group implements stringent oversight of emissions, such as sewage discharge, dust control, construction waste management and noise control. In addition, project managers regularly communicate with construction contractors to review the environmental compliance on the construction sites.

The Group's construction and residential sewage discharge strictly complies with national and local standards, and sewage is precipitated before being discharged into the municipal sewage pipe network. To reduce dust, we adopt the water-based dust control method to carry out ground works by spraying water regularly and setting fog cannon spray machine in the construction site. The construction site is covered with dust filter materials. We monitor the real-time air pollution index by using site dust monitoring system. To store and dispose waste, we place and classify construction wastes in specific areas to take measures to manage different types of wastes and recycle them where practicable. For toxic materials such as chemicals and oils, seepage control is applied to storage sites. We require the waste cleaning and transportation unit to obtain a transportation permit. Transportation vehicles are completely blanketed to prevent the overflow of waste and flying dust during transportation. The cleaning equipment is installed at the entrance of the construction site to ensure that the incoming and outgoing vehicles are cleaned. In order to reduce the impact of noise on the surrounding environment during construction, we not only deploy a dense network of acoustic barriers for the buildings, but also measure the noise level of the construction site in accordance with the relevant standards so that the daytime noise level of the construction site is strictly controlled within the standard limits. We have also taken steps to reduce fuel emissions, such as using smaller vehicles and performing regular maintenance to ensure optimal engine performance and fuel use.

Fog cannon spray device

Covering exposed loess on site

In strict compliance with relevant laws and regulations on environmental protection, such as the Environmental Protection Law of the PRC, Law of the PRC on Environmental Impact Assessment, Law of the PRC on the Prevention and Control of Atmospheric Pollution and Law of the PRC on Prevention and Control of Pollution from Environmental Noise, the Group did not breach any environmental laws and regulations during the Reporting Period.

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Use of Resources

Green building

The Group actively applies environmental protection elements to its property development. It also draws on and adopts the experiences of leading companies in the industry in the architectural design, construction and operation to develop environmental management plans and emergency rescue plans. The Group takes effective measures to reduce environmental load while improving performance.

All property development projects of the Group are designed based on the "Code for Green Design of Civil Buildings"《民用建築綠色設計規範》, "Assessment Standard for Green Building"《綠色建築評價標準》, "Green Building Evaluation Technical Rules"《綠色建築評價

技術細則》, "Supplementary Instructions to Green Building Evaluation Technical Rules"《綠 色建築評價技術細則補充說明》, "Design Standard for Energy Efficiency of Buildings"《建築節

能設計準則》and green building and energy saving standards at provincial level. In order to meet the requirements of energy efficiency standards, the materials such as hollow bricks, aerated concrete, thermal insulation material of exterior walls and aluminum alloy windows are used in the construction of the Group's property projects to improve the insulation performance of the building. We also take various measures to improve the water efficiency. For example, a map of water distribution regarding the construction site is prepared to ensure that the water source is clearly identified and controlled; water pipes and equipment receive regular inspection to prevent leakage; a recycling pool is established to collect water for washing machines, equipment and vehicles; and use of new materials or processes is vigorously promoted to improve water efficiency.

Due to the nature of the Group's business, the Group has not encountered any problems in obtaining suitable water sources.

Given that lighting energy consumption accounts for a large proportion, the Group has replaced incandescent lamps for all property projects with energy-efficient LED lamps. In addition to the lighting system, we also reduce energy consumption by optimizing heating and cooling system, setting constant air conditioning temperature in summer, adopting municipal unified heating in winter, disposing of company public vehicles and promoting public transport and ride-hailing. Starting from 2018, Xinxiang Weiye Property Co., Ltd. and Henan Xingwei Property Co., Ltd adopted the Sponge City Construction System to collect rainwater for flushing and greening, and enhanced the environmental awareness of residents by organizing property owners to participate in environmental protection campaigns, as well as offering books and periodicals on environmental protection.

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Green office

To promote cost-effective office values and reduce waste of resources, the Group has developed the "Office Supplies Management Policy", which stipulates that office supplies, as needed, shall be purchased, distributed and managed. The Group also maintains a policy of "reduce", "recycle" and "reuse". We have fully implemented the electronic information approval system, and actively promoted paperless office and WeChat group office. We also reduce long-haul flights by means of video and telephone conferences. In addition, we encourage our staff to turn off electricity and water equipment when they are not in use. Furthermore, double-sided printing is encouraged for delivery of documents and waste papers are used for printing informal documents.

Environmentally-friendly slogans for offices

The Environment and Natural Resources

According to the Group's "Environmental Policy", the Group raises staff's awareness on environmental issues through education and training and enlist employees' support in improving the Group's performance, promote environmental awareness amongst the customers, business partners and shareholders and support community activities in relation to environmental protection and sustainability and evaluate regularly and monitor past and present business activities impacting upon health, safety and environmental matters. With the integration of policies mentioned in sections "Emissions" and "Use of Resources", the Group strives to minimize the impacts to the environment and natural resources.

Environmental KPIs

During the Reporting Period, set out in Table 1 are the basic data of the subsidiaries disclosed. Table 2 to Table 6 cover data related to offices, sales department (or marketing center), staff canteen, dormitory of the Company, construction sites, staff canteen and dormitory at worksites.

Table 1

Category	Data	Unit	Remarks
		ten thousand	The total GFA and total office
Total area	143.35	area of subsidiaries disclosed as of
square meters
		31 December 2020

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Table 2

Major air pollutant emissions from use of vehicles during the Reporting Period and the corresponding period in 2019 are set out as follows:

Air Pollutant Emission

	2020	2019
Type of Air Pollutants	(kg)	(kg)
Sulphur dioxide	3.92	0.76
Nitrogen oxides	53.31	205.79
Particulate matter	3.93	19.62

Table 3

Greenhouse gas ("GHG") emissions from our operation during the Reporting Period and the corresponding period in 2019 are set out as follows:

GHG Emission

			2020		2019
		Equivalent	Equivalent
Type of GHG emissions	CO2	emission	CO2	emission
			(tonne)		(tonne)
Scope 1	Direct emissions		111.07		114.82
Scope 2	Indirect emissions		680.55		975.64
Total			791.62		1,090.46
Intensity (tonne/ten thousand square meters)		5.52		9.26

Note:

The calculation of the GHG is based on the "Corporate Accounting and Reporting Standard" from greenhouse gas protocol.

Scope 1: Direct emissions from vehicles that are owned by the Group and liquefied gas used in the canteen

Scope 2: Indirect emissions from the generation of purchased electricity consumed by the Group

Table 4

Due to the nature of our business, the hazardous waste generated by the Group during the Reporting Period was only waste paint, and the amount of waste disposed of was not significant.

Hazardous waste

	2020	2019
	(tonne)	(tonne)
Hazardous waste	1.56	0
Intensity (tonne/ten thousand square meters)	0.01	0

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Table 5

Non-hazardous waste generated during the Reporting Period and the corresponding period in 2019 are set out as follows:

Non-hazardous waste

	2020	2019
	(tonne)	(tonne)
Non-hazardous waste	185.09	1,793.32
Intensity (tonne/ten thousand square meters)	1.29	15.22

Table 6

Energy consumption by the Group during the Reporting Period and the corresponding period in 2019 are set out below:

Energy Consumption

	2020	2019
Type of energy	(kWh)	(kWh)
Direct energy consumption
Petrol	368,713.20	427,529.39
Diesel	-	33,808.82
Indirect energy consumption
Liquefied gas	2,221.33	1,757.09
Gaseous natural gas	4,340.44	8,809.78
Purchased electricity	1,185,914.78	1,450,686.50
Total	1,561,189.75	1,922,591.58
Energy intensity (kWh/ten thousand square meters)	10,890.76	16,298.58

During 2020, no diesel consumption was generated by the Group. It is because the Group did not use the diesel shuttle bus due to safety consideration and avoided crowds during the epidemic period.

Note:

There is a change in the adoption of calculation methodology of indirect energy consumption related to natural gas. The data for FY2020 is based on the calculation method adopted in "Energy Statistics Manual" issued by the International Energy Agency.

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Table 7

Water consumption by the Group during the Reporting Period and the corresponding period in 2019 are set out below:

Water Consumption

	2020	2019
	(m3)	(m3)
Water	52,215.01	23,483.41
Intensity (m3/ten thousand square meters)	364.25	199.33

Social Aspects

Supply Chain Management

Supply chain management is an important factor in ensuring the quality of products and services. The Group regards supplier management as partner management, as a good partner could guarantee the smooth progress of property projects. Therefore, we are committed to optimizing supply chain operations, so that the supply chain could operate efficiently to the satisfaction of end customers' needs at the most reasonable cost from the procurement process to other processes, which will deliver suitable products to consumers in a timely and accurate manner at a reasonable price. Our close collaboration with a number of suppliers and contractors starts from supplier access, supplier performance evaluation and supplier classification management, allowing us to effectively manage the quality of supply and project, as well as to actively promote the sustainable development of the supply chain.

The supplier selection of the Group is open to the public, and all suppliers can recommend themselves or be recommended to participate in the construction of the resource library. According to our own needs and "Supplier Management Measures", we conduct review on the information of the required suppliers, pay on-site visits to such suppliers when the suppliers meet the requirements of the Group, and then determine whether to approve the suppliers' access based the on-site inspection opinions and interviews with its senior management. We implement dynamic hierarchical management based on the supplier's competitive advantages and performance evaluation. When considering inclusion of a supplier into our resource library, the management system certification obtained by the supplier will be one of the evaluation factors. At the time of bidding, we explicitly request the bidders to formulate detailed environmental protection management systems and measures in the technical tender, which will also be an important part of the review. We specify environmental protection agreements in the contract with the suppliers, including the management of environmental impact factors, such as noise and dust. When the construction affects the surrounding environment, we will strictly stop the constructors, and urge them to make improvements and strengthen supervision and management in a timely manner. We also reduce the negative impact of the construction on the environment by purchasing or leasing dust-reducing equipment. At the same time, we monitored and disclosed the use of water, electricity and fuel of certain subsidiaries during the Reporting Period to assess the efficiency of resource utilization in relation to the construction. For relevant data, please refer to the section headed "Environmental KPIs".

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The Group has formulated the "Management Measures for Bidding and Procurement" and "Supplier Management Measures" to regulate the bidding procurement workflow and conduct dynamic management of qualified suppliers to improve the supervision and management and risk prevention mechanisms for bidding and procurement, thus increasing the cooperation efficiency with suppliers and contractors and the quality of bidding and procurement. We include the track records of the suppliers, such as credit, non-compliance records or conflicts of interest, in the assessment. In the future, the Group will continue to improve the supply chain management to reduce environmental and social risks in the supply chain.

Product Responsibility

Product Quality

Adhering to the principle of "integrity, pragmatism, professionalism and innovation", the Group aims to build a high-end brand and deliver quality housing and services.

In order to supervise the quality and safety level of real estate projects, strengthen the program control of the project schedule, quality and safety of real estate projects, further improve the project management level of each regional group and the projects under its control, pre-control the project management risks of each project, and promote the substantial improvement of the project quality of each project, the Group has developed relevant policies, such as the "Structure Safety and Function Quality Control Measures", "Production Safety Management Measures", "Operation Results Management Measures" and "Construction Supervision Management Policy". The Group regularly carries out sample checks on safety, construction and bidding process, and completes and reviews necessary documentation. In order to ensure the safe and effective operation of the facilities, we also require the responsible departments to record and properly maintain the construction plans, equipment maintenance plans and test records, fire protection system, water pipes and water pressure test records, and water supply pipe flushing and disinfection records.

The Group's Operation Management Division, Regional Group and Project Team are engaged in product quality management to meet the expectations of different internal stakeholders. The Operation Management Division and the project team are responsible for supervising project compliance to ensure that the projects follow the Group's internal policies and procedures, and comply with the standards such as the "Unified Standards for Constructional Quality Acceptance of Building Engineering" and various engineering construction quality acceptance specifications. Throughout the project construction process, the regional team is responsible for monthly checking and evaluating the quality level and safety of projects under construction in respective regions according to the acceptance standards, while the Operation Management Division is responsible for performing quarterly inspections. As for the project team, the Group requires the project manager to monitor the quality of raw materials through sample inspections, and to check the factory certification or inspection and test reports for new equipment. At the same time, we also carry out the supervision and management of the projects under construction during the process by engaging professional supervision companies, to ensure that the quality complies with the construction project management regulations.

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Customer Services

The Group views customer satisfaction as a tool to understand customer demands and improve the quality of our products and services. The Group focuses on building long-term relationships with our clients and hence puts much effort in providing clients with one-stop services including after-sales maintenance management.

The Group pursues consistency and standardization in customer service. We have established the "After-Sales Maintenance Management Policy", "Member Management Manual" and "Measures to Establish, Manage, and Use Customer Resource Library", with a view to delivering consistent and well managed services to our customers, including aftersales maintenance, product warranties, managing and resolving customer complaints, and improving relations with the members of the Club. For example, the "After-Sales Maintenance Management Policy" stipulates that the maximum turn-around time to respond to a customer's report or complaint is three work days. Apart from that, the policy also clarifies the scope of maintenance work, supervision, quality requirements, warranty period, maintenance flow chart and time required, and standard operating procedures to ensure that all complaints are addressed and resolved professionally.

The Group's sales and marketing service center has set up a call center to provide a platform to collect customer enquiries and feedback in order to optimize customer relationships and improve customer service standard. We have established a "Call Centre Management System". The call center handles matters such as sales complaints, maintenance, property delivery complaints, and property owners enquiry. The sales support center is responsible for tracking the repair and maintenance process, and supervising the third parties and suppliers during repair and maintenance. In addition, they collect feedback from clients regarding their satisfaction of the maintenance work.

In the process of publicity and sales, the Group abides by the Advertising Law of the People's Republic of China and other relevant laws and regulations, strives to provide accurate information on promotional materials, and prohibits employees from making any false, misleading or inaccurate statements in any form of marketing activities. The Group strictly abides by the Patent Law of the People's Republic of China, Trademark Law of the People's Republic of China and other relevant laws and regulations.

During the Reporting Period, the Group recorded no non-compliant incident of the relevant laws and regulations governing health and safety, advertising, labelling, privacy matter and methods of redress related to products and services provided. The customer complaint rate of the Group was below 2%. We intend to select pilot venues during the Reporting Period to launch a series of membership activities to boost the activity of owners and improve satisfaction on community culture.

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Employment and Labour Standards

Overview of Employees

In strict compliance with the relevant laws and regulations on labour in the jurisdiction where it operates, such as the Labour Contract Law in the PRC and the Employment Ordinance in Hong Kong, the Group is committed to safeguarding the legitimate rights and interests of its employees. Employees are entitled to have equal opportunities and benefits in recruitment, promotion, advancement, and personal development regardless of gender, age, ethnicity, and cultural background.

The Group's recruitment, allocation and promotion management practices are developed to meet the Group's strategic development needs, which aims to establish high-quality workforce, optimize talent allocation, improve talent selection and stimulate work motivation. Following the principle of "openness, fairness and justice", the Group recruits external staff by using diversified recruitment channels and selects appropriate talents in accordance with the recruitment and probation process in accordance with the law.

The "Remuneration and Benefit Policy" of the Group follows a fair and motivational principle of providing employee with rewards based on positive contributions, appraisals and performance. In addition, the "Award and Penalty Policy" is designed to stimulate the enthusiasm and potential of employees. We strictly abide by the minimum wage requirements in each place of operation, and comply with laws and regulations in terms of social insurance, paid annual leave, and salary and benefits during work-related injuries. In terms of promotion and advancement, the Group provides employees with a two-channel promotion system for technology and management positions, where employees can choose their development based on individual needs. In terms of demission and dismissal, the company strictly follows the Labour Law and the Labour Contract Law. The Group will not tolerate unjustifiable dismissal of employees under any circumstances. Any termination of employment contract will be based on reasonable and lawful reasons and internal policies. The Group strictly prohibits any form of unfair or unreasonable dismissal.

As far as labour standards are concerned, the Group strictly abides by the Labour Law. During the Reporting Period, the Group has not violated laws and regulations on equal opportunity, diversity, anti-discrimination and other treatment and benefits, nor has there been any violation of child labour or forced labour. In terms of working hours, the Group adopts 5 working days per week and 7 working hours per day. The Group also provides various holidays for employees, including annual leave, study leave, marriage leave, paternity and bereavement leave, work-related injury leave, maternity leave, sick leave, etc. The application, use and payment of various holidays are detailed in the related policies of employee leave management.

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Below is a detailed breakdown of our employees by gender, age group and employment category as at 31 December 2020:

	2020
	Number of		% of total
	staff
By gender
Male	84		57
Female	63		43
Total	147		100
By age group
Below 30	57		39
30-50	87		59
51 or above	3		2
Total	147		100
By employment category
Normal	108		74
Middle	27		18
Senior	12		8
Total	147		100

Below is a detailed breakdown of our employees turnover rate by gender and age group as at 31 December 2020:

	2020
Turnover rate by gender
Male	34%
Female	20%
Turnover rate by age group
Below 30	34%
31-50	32%
51 or above	25%

The Group's 2020 Work Planning Conference	The Group's semi-annual operation analysis meeting
in 2020

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Health and Safety

The Group regards employees as the most important assets and promises to provide a safe and healthy working environment for each employee. Safety operation is listed as one of the KPIs. It is the responsibility of the regional manager to ensure that the Company's overall safety levels across the business are monitored and managed effectively. We prevent occupational health and safety risks by purchasing accident and injury insurance policies and providing annual health checks for our employees.

In light of the spread of the novel coronavirus in early 2020, the government rallied for a full-scale pandemic prevention and control campaign at the end of January. By recognizing the importance of prioritizing the health and safety of its employees, customers and suppliers, the Group promptly made arrangements relating to the pandemic prevention and control throughout its operation management divisions, regional groups, and project companies, whereby focusing on the establishment of the staff health management, procurement of pandemic supplies, project safety management, and other areas, while planning and coordinating the Group's pandemic prevention and control in each region. To strengthen the pandemic monitoring and reporting, the Group maintains a daily report on the health conditions of all employees and their family members, pays a closer attention to anomalies, and took appropriate pandemic prevention and control measures.

• On 1 February 2020, the Group was briefed on the daily health of our employees using the DingTalk Mobile Workplace to gain immediate access to the health of our employees during the pandemic.
• Office buildings of the subsidiaries were required to turn off the central air-conditioner, and air purifiers were used to clean and disinfect public areas before the commencement of work.
• Our employees who were required to return to their workplaces carried out a home or centralized quarantine for fourteen days, and submitted reports to the community management office in a timely manner.
• Each unit was required or encouraged to provide flexible workplaces or allow for home offices based on actual local conditions.
• Online conferences using video conferencing systems, WeChat, etc. were held instead of large conferences during the pandemic.
• Our employees were required to take their temperature every 4 hours per day, and were provided with masks to ensure that the on-the-job employees wore masks as required.
• Daily disinfection was required for public areas, shared items, and key crowded areas as required by the pandemic prevention and control authorities.
• Staggered meal hours were required to ensure that the employees kept a distance of at least one meter from each other, and no face-to-face dining was permitted with the canteen closed temporarily.

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• During the pandemic, the employees were prevented from travelling, and business activities were conducted through online communications.
• We effectively managed the influx of visitors to prevent public premises from exposure to major potential pandemic risks.

In order to strengthen the safety management at the workplace, the Group has designated safety inspectors to conduct daily safety inspections of offices and workplaces in accordance with the "Regulations Governing the Use of Office by Employees and their Responsibilities" 《員工辦公室使用行為及責任規定》, and "Office Environment, Office Order and Safety Management System" 《辦公環境、辦公秩 序及安全管理制度》 to ensure the normal operation of infrastructure such as windows, emergency exits, wires, and electrical equipment. We also provide firefighting training to all employees to improve their fire response capacity and fire prevention awareness. We engage a professional cleaning company to be responsible for the daily cleaning of the office and install an indoor air purification system in areas with poor air quality to ensure a comfortable and healthy working environment.

At the construction sites, we also attach great importance to the occupational health and safety of construction workers and ensure construction safety by implementing the following measures:

• Set up occupational health and safety management objectives and establish safety management organizations;
• Organize pre-job training and establish the certificate-for-job system;
• Strictly implement the rules and regulations on work safety, and establish a safety production responsibility system for management staff at different positions;
• Develop implementation rules on safety production and safety fire management;
• Prepare an emergency rescue plan for safety production accidents;
• Divide the living quarters of workers and implement environmental and health protection measures;
• Implement health protection measures on food storage and processing;
• Implement detailed dust control measures; and
• Implement measures to reduce the hazards of vibration and noise.

During the Reporting Period, the Group did not have any violations in terms of health and safety, including but not limited to the Law of the People's Republic of China on the Prevention and Control of Occupational Diseases, Fire Law of the People's Republic of China, and did not have any major safety accidents related to work.

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Development and Training

Employees play an important role in the growth and development of the Group. The Group attaches great importance to the professional development and personal growth of its employees. Through the enhancement of internal training, the Group strengthens the overall quality and learning capabilities of its employees.

Guided by the Group's sustainable development strategy, the Group has established a training system combining internal training and external training with the goal of improving employees' business skills, comprehensive quality and management ability. Internal training focuses on corporate culture, institutional process and professional knowledge training in order to stimulate employees' innovation ability, sense of belonging and sense of urgency, and constantly enhance the vitality and cohesion of the enterprise. It is mainly applicable for middle management, normal employees and new employees.

External training focuses on improving the management concept, ideology, innovation, and resource management, so as to improve the comprehensive quality and management ability of employees. It is mainly applicable for middle and senior management of the Company.

In 2020, the company has launched a series of activities called "Everyone as a Lecturer, Everyone as a Student", which covers all staff learning, lecturer course empowerment, team knowledge base building and other activities, aiming to promote the cognitive unity among business departments, accumulate organizational experience for the company, and promote the sustainable development of the company. Throughout the activities the participants established the role of team operation officer to carry out the training construction activities, certified the seed lecturer to improve the quality of learning and training, and submitted the certification courses to promote the knowledge sharing within the various departments.

The Group regards training as a routine management of the Company in which different type of training will be held 2-3 times a month on average.

Below is a detailed breakdown of the percentage of trained employees by gender and employment category during the Reporting Period:

	2020
Employee trained by gender
Male	100%
Female	100%
Employee trained by employment category
Normal	100%
Middle	100%
Senior	100%

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The average training hours for employees by gender and employment category during the Reporting Period is as follows:

	2020
By gender	Hours per
employee
Male	55
Female	54
By employment category
Normal	53
Middle	57
Senior	61

Corporate culture training	"Everyone as a Lecturer, everyone as a Student"
training program

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Anti-corruption

The Group has consistently adopted a zero-tolerance policy on all forms of corruption, bribery, fraud and money laundering, and strictly complies with laws and regulations in the PRC and the Prevention of Bribery Ordinance in Hong Kong. During the Reporting Period, there was no violation of relevant laws and regulations that resulted in internal disciplinary actions or external condemnation, and no bribery, extortion, fraud or money laundering. The Group has formulated rules and regulations such as the "Code of Conduct", the "Conflict of Interest Policy", the "Whistle Blowing Policy", the "Regulations on Business Discipline Ordinance", the "Independent Commission against Corruption Policy", and so on, which detail out the guidelines for employees to prevent various illegal and improper behaviors and to avoid potential conflict of interests with related parties, as well as the provisions for supervision and verification in bidding and procurement. The terms of the commitment to integrity will be stated when entering into business contracts with our customers, suppliers and other partners, to eliminate any violations of business Integrity.

The Legal Department of the Group is responsible for updating the internal policies according to the latest changes with the relevant laws and regulations, and informs relevant teams to prevent violations. Above these preventive mechanisms, we have also established annual training provided to all employees, and require all newly recruited employees to undergo the "Code of Conduct" training. The Group has setup independent mailbox, e-mail and hotline to encourage its employees to report any concerns about misconduct, malpractice or irregularities in any matters related to the Group. Every reasonable effort will be made by us to maintain the confidentiality of all whistleblower, and the mechanism will be followed by careful investigation procedures.

Community Involvement

The Group rewards the society through charitable donations and participation in poverty alleviation organized by government. The Group attaches great importance to the investment and construction of the community, and encourages companies in all regions to actively fulfill corporate social responsibility. In accordance with the internal policies of Weiye Holdings, social welfare programs are initiated and implemented by each region, and are reviewed and supervised by the group. During the Reporting Period, Henan Xingwei Property Co., Ltd made charitable donation to charity federation in Jinshui District, Zhengzhou City for charity activities, such as disaster relief, poverty alleviation, helping the elderly, health aid and assistance for the impoverished students.

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