Anhui Conch Cement Company Limited‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌

SOCIAL RESPONSIBILITY REPORT

01 ABOUT THIS REPORT

Statement of the Board

The board of directors (the "Board") of the Company and all members thereof warrant that the content of this report is free from any false statement, misleading representation or material omission and that they shall assume joint and several liability for the truthfulness, accuracy and completion of the content of this report.

Basis of Preparation

This report is prepared in accordance with Appendix 27 "Environmental, Social and Governance Reporting Guide" to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "HK Stock Exchange") and the Guidelines for Preparation of Social Responsibility Reports issued by the Shanghai Stock Exchange (the "SSE"), covering the reporting period from 1 January 2016 to 31 December 2016 (hereinafter referred to as the "Reporting Period"), with certain content dating back to previous years when appropriate. This report is issued on a yearly basis, and the report for the next year is expected to be published in March 2018. This report is simultaneously published on the websites of the HK Stock Exchange, the SSE and the Company.

Social Responsibility Strategy of the Group As an A+H share listed company and a large state-owned holding company, Conch Cement proactively develops its core businesses to create enterprise value, and also continues to promote the concept of sustainable development by integrating performance of social responsibility into its internal management and taking measures to protect the environment and maintain social harmony, in an effort to strike a balance among enterprise development,

environmental protection and social contribution.

Reporting Scope

This report covers Anhui Conch Cement Company Limited and its subsidiaries and branch companies.

Data Sources

The data set out in this report is derived from internal documents and relevant statistics of Conch Cement and its subsidiaries and branch companies, among which the relevant data shown in the financial statements have been audited by KPMG.

Stakeholder Engagement

Stakeholders of the Group in respect of the environment, society and governance include internal stakeholders and external stakeholders, mainly its employees, suppliers, customers, investors, the government as well as the community and the general public. As the Group for the first time prepared the social responsibility report in accordance with the Environmental, Social and Governance Reporting Guide (the "ESG") issued by the HK Stock Exchange in 2016, the materiality assessment was mainly conducted by the management. We will increase the engagement of other stakeholders and review and update the materiality assessment, enabling our report to fully reflect the latest progress in promoting sustainable development by the Group.

Materiality Assessment

Based on the stakeholders and materiality assessment, the following items were identified as having significant impact on the sustainable development of the Group and were listed as important areas for our sustainable development.

  • Air pollution

  • Greenhouse gas emission

  • Electricity consumption

  • Product liability

  • Health and safety

  • Anti-corruption

  • Employee benefits

  • Community investments

Description of references

For easy reference and reading, "Anhui Conch Cement Company Limited" is also referred to as "Conch Cement", "the Group" and "we" in this report.

01

Anhui Conch Cement Company Limited 2016 Social Responsibility Report

Content

1 ABOUT THIS REPORT

2 BUSINESS AND OPERATION DEVELOPMENT OF THE GROUP

  1. ENVIRONMENTAL PROTECTION

  2. Emissions

  3. Utilisation of Resources

  4. Environment and Natural Resources

  5. EMPLOYMENT AND LABOUR PRACTICES

  6. Employee Benefits

  7. Development and Training

  8. Safety Management

  9. Anti-corruption

  10. SUPPLY CHAIN MANAGEMENT

  11. PRODUCT LIABILITY

  12. CONSTRUCTION OF A HARMONIOUS COMMUNITY

  13. Appendix I DEFINITIONS

    Appendix II ESG GENERAL DISCLOSURE REFERENCE LIST

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    Anhui Conch Cement Company Limited 2016 Social Responsibility Report

    02

    BUSINESS AND OPERATION DEVELOPMENT OF THE GROUP

    Business of the Group

    During the Reporting Period, the Group was principally engaged in the production and sale of cement, commodity clinker and aggregate. The Group produced and sold cement products according to market demands, which mainly included 42.5-grade cement, 52.5-grade cement, 32.5-grade cement as well as some special cements such as sulfate-resistant cement, middle-and-low heat cement, cement for road, cement for nuclear power generation and nonmagnetic cement. These products are widely used in infrastructure construction including railways, highways, airports and hydraulic facilities as well as urban property development and rural markets.

    Overview of Operation Development of the Group

    In 2016, as the PRC economy began to stabilise, fixed asset investments saw a slow but stable growth during the year, while demand in the cement market also increased. However, the industry was still in a period of low growth rate with intensified market competition. During the Reporting Period, the Group took proactive measures to overcome various adverse factors in the supply-and-demand market by optimising its marketing strategy in a timely manner, continuing to enhance its internal management and promoting steady progress in project development, and had successfully achieved stable growth in production, sale volume and operating results.

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    Anhui Conch Cement Company Limited 2016 Social Responsibility Report

Anhui Conch Cement Company Ltd. published this content on 23 March 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 23 March 2017 10:02:14 UTC.

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