China BlueChemical : 2022 ESG Report

over

40,000tons

Reduced over 40,000 tonnes of carbon dioxide and greenhouse gas emissions

100%

Annual online environmental protection emission data pass rate was 100%

RMB 20.3million

Total annual expenditure on charity and public welfare amounted to approximately RMB20,300,000

In 2022, international commodity prices rose rapidly due to geopolitical conflicts that disrupted the international energy and grain markets, resulting in a general high inflation across the world. The growth of the world population exceeded 8 billion, and the rigid demand for grain has driven the growth of demand for fertilisers. As "a state-owned enterprise with the highest production volume and production capacity of chemical fertilisers", the Company actively implemented the mission of "as a strong enterprises in China to addresses the three rural issues", strived to ensure chemical fertilizer supply, made a contribution to national grain security, and provided solutions to the problem of hunger. In addition, the Company cooperated with its partners to provide an efficient soil testing and application of fertilisers technology to help farmers increase production and income.

In 2022, with implementation of the concept of green development and practicing the green and low-carbon strategy, the Company focused on the "14th Five-Year" development plan, implemented green development leap-forward projects and strived to promote the transformation of green energy to "accelerate again". The Company continued to maintain its leading position in terms of energy efficiency with its methanol production plants honoured as the "Leading Enterprises in Energy

Efficiency" for 11 consecutive years by the China Petroleum and Chemical Industry Federation and ammonia production plants honoured as the "Leading Enterprise in Water Efficiency" for 3 consecutive years by the China Nitrogen Fertiliser Industry Association, respectively. As part of the initiatives to promote "carbon peak" and "carbon neutrality", the Company vigorously developed the carbon emission management strategy, promoted the implementation of energy-saving and carbon reduction projects, and reduced over 40,000 tonnes of carbon dioxide and greenhouse gas emissions, making positive contributions to tackling climate change. In 2022, the Company's environmental protection facilities operated steadily, with all pollutant discharge indicators being normal, and the total amount of emissions far below the permitted quota. The Company's annual online environmental protection emission data pass rate was 100%.

In adherence to our principle of being "people-oriented and employee-caring", by pursuing a personnel policy that is scientific, reasonable and highly-efficient, we enhanced the establishment of our talent pool and motivation mechanism. In addition to financial supports to employees in poverty, we were also concerned about the physical and mental well-being of employees. By enriching

employees' afterwork life, solidarity could be created in the enterprise. The Company regards employee development and training, adheres to the strategy of talent development, refines the talent nurturing and development mechanism and enhances the comprehensive ability and quality of core and high-level talents, the company has 1 National "May Day" Labor Medal owner, 2 National Craftsmen, and 10

National Technical Experts.

The Company accords great importance to the development of the local communities of the places where we operate and deems it obligatory to give back to the general society. In 2022, the Company entered into a strategic cooperation agreement with the Agricultural Divisions of Hainan Province. With the support of the Agricultural

Divisions of Heilongjiang Province, the Company pioneered the "direct supply model of the original plant to eliminate intermediaries through government- enterprise cooperation" in China to reduce farmers' burden and increase economic benefit. The Company paid attention to the rights and interests of migrant workers, and set up special accounts for migrant workers for large acrylonitrile project. The Company also actively participated in charity work, rendered services for community building, made donations and provided aid for students, so as to promote the harmonious development of both the Company and society. In addition, the Company took the initiative in charity donations and targeted assistance, and the total annual expenditure on charity and public welfare amounted to approximately RMB20,300,000. The Company assigned outstanding cadres to Hezuo City and Xiahe County in Tibetan region throughout the year to serve as temporary deputy county chiefs, and projects were carried out to help local economic and social development.

In 2023, under the guidance of the Board, the Company will adhere to the guidance of the "14th Five-Year Plan", actively follow the trend of low-carbon transformation, a n d c o n t i n u e t o i m p r o v e d i g i t a l empowerment and scientifi c research and innovation capabilities. The Company will also promote the implementation of its green value-added compound fertilizer project in an orderly manner, promote the implementation of its green methanol concept, conduct in-depth research on the comprehensive utilization of carbon dioxide chemistry and the alternatives of clean energy, sufficiently reduce the impact of production activities on the climate, so as to facilitate the Company to achieve the "dual carbon" goal, and create a new situation for the Company in transformation and upgrading towards high-quality development.

Hou Xiaofeng

Chief Executive Officer (CEO), President

Hainan Phase II methanol plant