Shenguan : Environmental, Social and Governance Report 2021

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ABOUT THIS REPORT

Shenguan Holdings (Group) Limited (the "Company", together with its subsidiaries, the "Group", "we", "Shenguan Group") is an enterprise established in the People's Republic of China ("Mainland China") and specialised in utilising collagen. We are committed to the development and application of collagen technologies. We hope that through the annual release of the Environmental, Social and Governance Report (the "Report"), we can enable each stakeholder to understand the Environmental, Social and Governance policies, measures and performances of the Group, and continue to maintain good communication with stakeholders, promote and implement the sustainable development vision and strategy to achieve our sustainable development growth strategically.

REPORTING STANDARDS

The Report is prepared based on the Environmental, Social and Governance Reporting Guide (the "Guide") listed in Appendix 27 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Stock Exchange").

The Report is prepared in accordance with the four major reporting principles stated in the Guide, including materiality, quantitative, balance and consistency, aiming to present true, meaningful and accurate environmental, social and governance information of the Group.

During the year, we conducted a materiality assessment process again to maintain the pertinence and relevance of the key disclosure issues in the Report. We finally determined

the disclosure content and reporting scope based on the analysis of the extent of the material

Materiality impact on the Group's operations or on stakeholders as well as its importance, hoping to disclose the relevant information of the Group's environmental, social and governance in a more accurate and complete manner. For more details, please refer to the "Materiality Assessment" section in this Report.

Balancein an objective, impartial and truthful manner, so as to enhance operational transparency and build stakeholder trust.

The statistical methods disclosed in the Report are the same as last year, which used the same

data statistics and conversion methods. However, we would review and update the relevant

Consistency conversion factors annually to present timely and accurate environmental data. The pertinent historical data has been disclosed in the Report to enable stakeholders to better understand and compare the Group's sustainability performance.

SHENGUAN HOLDINGS (GROUP) LIMITED

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REPORTING SCOPE

The Report mainly covers our efforts and achievements in terms of environmental, social and governance aspects from 1 January 2021 to 31 December 2021 (the "Year", the "Reporting Period" or "the Year of 2021"), including Industry Optimization, Care for Employees, Environmental Protection and Community Investment. The reporting scope includes the principal business of the manufacturing and sales of edible collagen sausage casings, which represented the main operating income of the Group. The subsidiaries involved include Guangxi Shenguan Collagen Biological Group Co., Ltd. (廣西神冠膠原生物集團有限公司) ("Shenguan Collagen") (formerly known as Wuzhou Shenguan Protein Casing Co., Ltd. (梧州神冠蛋白腸衣有限公司)). As the R&D and production based in Singapore have yet to be officially put into production due to the impact of the epidemic, therefore, the relevant environmental, social and governance data is not disclosed during the Year.

The Report focuses on the Group's performance on the environmental and social aspects. For more details on corporate governance, please refer to the Corporate Governance Report set out in the latest annual report of the Group.

Environmental, Social and Governance Report 2021

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Ms. Zhou Yaxian

Chairman of the Board and President of the Company

MESSAGE FROM THE CHAIRMAN

SHENGUAN HOLDINGS (GROUP) LIMITED