China Merchants Land : ESG Reports (in

Stock code: 978

Environmental, Social

and Governance

Report 2022

Table of Contents

1. About the Report

The Environmental, Social and Governance Report (the "Report") serves as a review of the efforts undertaken and results achieved by China Merchants Land Limited (the "Company" or "China Merchants Land") and its subsidiaries (collectively referred to as the "Group" or "we") on sustainable development in 2022. The Report also focuses on responding to key stakeholders' concerns on the Group's sustainable development. In order to gain a holistic picture of the Group's performance in the areas of environmental, social and governance ("ESG"), the Report shall be read in conjunction with the Company's Annual Report 2022, in particular the "Corporate Governance Report" and "Environmental Policies and Performance" contained therein.

Reporting Scope

The operation scope covered in the Report includes the Company's Hong Kong office and its subsidiaries located in Foshan, Guangzhou, Chongqing, Nanjing and Jurong, Xi'an (Foshan Subsidiary, Guangzhou Subsidiary, Chongqing Subsidiary, Nanjing and Jurong Subsidiary, and Xi'an Subsidiary). Unless otherwise specified, the Report covers the property development business and the hotel and serviced apartment operational projects under the direct control of the Group. Unless otherwise stated, the information and data presented in the Report include the Group's specific ESG policies and performances from 1 January 2022 to 31 December 2022 (the "Reporting Period"). In consideration of the continuity and comparability of the information disclosed, the timeframes of selected contents are adjusted as appropriate in the Report.

Preparation Basis

To ensure transparency in disclosures that is capable in responding to stakeholders' concerns, the Report was prepared in accordance with the Environmental, Social and Governance Reporting Guide (the "ESG Reporting Guide") set out in Appendix 27 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") published by The Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange"). Meanwhile, references were also made to the Recommendations of the Task Force on Climate-related Financial Disclosures ("TCFD"), GRI Sustainability Reporting Standards ("GRI Standards") by the Global Reporting Initiatives, the Guidance on Social Responsibility (ISO26000) by the International Organisation for Standardization, and the Guidance on Social Responsibility Reporting (GB/T 36001-2015) by the People's Republic of China ("PRC"). The Report complies with the "mandatory disclosure requirements" and "comply or explain" provisions of the ESG Reporting Guide and was prepared in adherence to the four reporting principles: materiality, quantitative, balance and consistency. The Group comprehensively discloses its ESG-related strategies, objectives, and key performance indicators. All information cited in the Report is from the documents and statistical reports of the Group. The application of the reporting principles in the preparation of the Report is as follows:

• Materiality: The Group conducted a materiality assessment to identify topics that were considered important to the Group and its stakeholders (the "topics of high importance") during the Reporting Period by engaging with stakeholders through an online questionnaire. After the validation of the board of directors (the "Board"), the Report was prepared with the focus of these topics.

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• Quantitative: The Group has been disclosing the standards, approaches, assumptions and reference basis for the calculation of quantitative data in the Report.
• Consistency: Unless otherwise stated, the methodologies used for data calculation are consistent with previous years to ensure comparability. Changes to the calculation methodologies have been explained in this Report.

Approval and Confirmation

The Board of the Company is fully responsible for the Group's ESG strategies and reporting and has reviewed and approved the Report in March 2023, confirming the reliability, truthfulness and completeness of the information disclosed in the Report.

Access to the Report

The electronic version of the Report is available for downloading on the Stock Exchange's website (www.hkexnews.hk) and the Company's official website. The Report is published in two languages, Traditional Chinese and English. In case of discrepancy in the two versions, the Traditional Chinese version shall prevail.

Your Feedback

Comments from readers are valuable and imperative for the Group's continuous improvement in its governance, environmental and social performances. If you have any enquiries or comments, you are more than welcome to contact us via email.

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2. About Us

2.1 Business Overview

China Merchants Land (formerly known as Tonic Industries Holdings Limited) was founded in April 1997, and listed on the main board of the Hong Kong Stock Exchange in October of the same year. China Merchants Land set up its headquarters' office in Hong Kong, and is a subsidiary of China Merchants Group Limited ("China Merchants Group") and China Merchants Shekou Industrial Zone Holdings Co., Ltd ("CMSK"). Currently, the Group's portfolio of property development projects consisted of 45 projects in Foshan, Guangzhou, Chongqing, Nanjing and Jurong, and Xi'an, with a primary focus on the development of residential properties, as well as residential and commercial complex properties. Types of products include apartments, villas, offices, and retail shops, etc. As of 31 December 2022, the Group holds approximately 4.6 million square meters of saleable gross floor area. The management of the Group believes that the existing landbank is sufficient to fulfil the needs of the Company's project development for the next few years. To achieve a sustainable and quality growth, we will continue to strengthen our ability in various aspects for project implementation, which include progress, quality, safety, customer services, costs and marketing.

2.2 Corporate Governance

Improving the Governance Structure

The Board

The Group believes that a good corporate governance can greatly facilitate the corporate development and enhance the Group's performance. In order to protect the interests of the shareholders of the Company, the Board, as the Company's highest governance body, is committed to establish a sound and hierarchical governance structure to manage the Group's matters efficiently. The Board has set up the Audit Committee, the Nomination Committee and the Remuneration Committee, with the goal to enhance long-term value for shareholders and other stakeholders, as well as to lead and supervise the Group's operations.

Strengthening Risk Management and Internal Control

The Board of the Company emphasises great importance to risk management and is determined to establish and maintain a sound internal control system to protect the Group's assets and shareholders' rights and interests, and to minimise legal risks. The Audit Committee under the Board of the Company is primarily responsible to identify risks to which the Group may be exposed during its operations and the risk level and risk tolerance of the Group. The Audit Committee also reviews the Group's internal control and risk management system to ensure the effective implementation of relevant work.

The Group has developed a systematic risk management system that meets the requirements for an

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