Wison Engineering Services Co. Ltd.

(Incorporated in the Cayman Islands with limited liability Stock Code: 2236)

Wison Engineering

Builds a Better World

Environmental, Social and

Governance Report

2023

Wison Engineering Services Co. Ltd.

Environmental, Social and

Governance Report 2023

CONTENTS

MANAGEMENT/CHAIRMAN'S MESSAGE

2

ABOUT THIS REPORT

4

AWARDS AND HONOURS

6

1.

A CLOSER LOOK AT WISON ENGINEERING

9

1.1

AN OVERVIEW OF WISON ENGINEERING

9

1.2

GOVERNANCE SYSTEM

13

1.3

SUSTAINABILITY GOVERNANCE

17

2.

PROMOTING INNOVATIVE DEVELOPMENT

29

2.1

INDEPENDENT R&D

29

2.2

CORE COMPETITIVENESS

33

3.

ENHANCING SUSTAINABLE DEVELOPMENT

34

3.1

SOUND MANAGEMENT SYSTEM

34

3.2

SAFETY FIRST

36

3.3

QUALITY FIRST

40

3.4

GREEN OPERATION

43

4. BOOSTING COOPERATION

AND MUTUAL SUPPORT

58

4.1

CUSTOMER CARE AND COMMUNICATION

58

4.2

SUSTAINABLE SUPPLY CHAIN MANAGEMENT

61

4.3

MUTUAL BENEFITS AND WIN-WIN RESULTS

64

5.

INTEGRATED TALENT DEVELOPMENT

66

5.1

EQUALITY, OPENNESS, AND INTEGRATION

66

5.2

TRAINING AND DEVELOPMENT PLANNING

70

5.3

EMPLOYEE CARE AND BENEFITS

75

6. CONTRIBUTING TO THE COMMUNITY

79

APPENDIX I

LIST OF MAJOR APPLICABLE

LAWS AND REGULATIONS

82

APPENDIX II

CONTENT INDEX OF HKEX

ESG REPORTING GUIDE

84

APPENDIX III

GRI STANDARDS CONTENT INDEX

89

Wison Engineering Services Co. Ltd.

MANAGEMENT/CHAIRMAN'S MESSAGE

In 2023, the petrochemicals and energy market was faced with multi-faceted challenges and opportunities, as the global economic environment and policy continued to change and the energy price fluctuated. Against the backdrop of the times, upholding the strategy of "leading by innovation, focusing on principal operations and establishing global presence", Wison Engineering gave full play to its advantages as a private enterprise in the field of energy and chemical engineering, and calmly responded to the ever-changing market environment. By holding a pragmatic and pioneering attitude, we continuously improved operation and management benefits and created more value for customers, committed to grow into a world-class energy and chemical engineering company.

During the past year, Wison Engineering continued to consolidate its core business market, maintaining a leading position in traditional areas such as ethylene, cracking furnace, propane dehydrogenation (PDH), coal gasification, methanol to olefin (MTO), synthetic ammonia, etc. Meanwhile, by proactively responding to the country's "dual-carbon" policy and fully leveraging its professional advantages, Wison Engineering successfully created new performance growth points and satisfied the new customer needs by several key technological breakthroughs in new energy and new materials such as degradable plastics ("PGA"), methyl methacrylate ("MMA"), hydrogen energy, carbon dioxide ("CO2") emission reductions.

During the Year, Wison Engineering focused on green and low-carbon transformation to cope with climate change and systematically analysed the needs of and technological bottleneck in the transformation to the new energy industry that is driven by technological innovation and electricity-hydrogen coupling. Moreover, the Company focused on the recruitment of technical experts and core talents specialising in electricity-hydrogen coupling, green ammonia and methanol, carbon capture and utilisation, and biomass utilisation, set up a task force to coordinate the in-depth development of the technology roadmaps and solutions for deep decarbonisation of hydrogen, ammonia, methanol, and sustainable aviation fuel (SAF), etc., strove to be part of the strategic global energy transformation and national development of disruptive productive forces, in an early, rapid and professional manner and spared no efforts in creating new business and product lines dealing with services and delivery of renewable energy technology with core competitiveness. During the Reporting Period, Wison Engineering was awarded a number of new energy projects and provided many technical solutions for domestic and international customers regarding their needs and scenarios of low-carbon and green development. These projects included low-carbon methanol synthesis from carbon capture coupled with exhaust gas-hydrogen in an active large-scale refining and chemical integration project, methanol synthesis from carbon capture and hydrogen in a large-scale coal chemical project, hydrogen storage in organic liquids, on-shore carbon capture/liquefaction/shipping of offshore gas reinjection, offshore off-gridwind-based hydrogen and ammonia production.

2

Environmental, Social and Governance Report 2023

MANAGEMENT/CHAIRMAN'S MESSAGE

We valued environmental protection and were committed to the sustainable development. We implemented green construction concepts during the design and operation phases of projects and continously optimized energy-saving and emission-reduction solutions, such as advocating the recycle of waste materials in our projects, organizing the "One Hour Power-Off" campaign on World Earth Day. On the occasion of Safety Month and World Environment Day, both in the Company's headquarter and departments at project sites launched a wide range of safety and environmental protection activities.

During the Year, we continued to strengthen quality, health, safety and environment ("QHSE") management. Following the principle of "pursuing safety throughout the project life cycle", Wison Engineering kept promoting the development of the QHSE management system and standardisation of QHSE management. We also made continuous efforts to promote the "1+3 co-construction" management model with builders, suppliers, construction contractors and strategic partners to create a good ecosystem of QHSE management for integration, collaboration, improvement and win-win results and demonstrated a safe and reliable image of Wison Engineering.

Wison Engineering adhered to the concept of "establishing global presence" at all time. As the international economy and energy demand gradually recovery, we continue to implement the globalisation strategy covering both domestic and international markets with greater confidence, strengthen and upgrade our core products, and utilize our project experience over the years to cooperate with our domestic and international customers to provide quality products and services for them. Meanwhile, we adhered to the talent strategy of cultivating design talents as the priority and international and localised talents as the core. We introduced senior management and technical personnel according to the changes in the external market environment, optimised and expanded the talent team, and encouraged the outstanding talents to give full play to their potentials, so as to bring the Group's innovation capability to a new level.

In the new year, Wison Engineering is committed to the transformation of internationalization in the face of complex and volatile economic environment and challenges. Coupled with opportunities of the emerging global new energy market, the Company aims to develop relevant core competitiveness, and achieve its systematic and comprehensive pivoting towards international market and new energy sector. The Company will continue to strengthen the research and development of independent technology, further expand its competitive products and enlarge investment in new energy and new materials. Moreover, the Company will maximise its bonding and connecting role in the commercialisation of new technologies as an engineering company, to achieve sustainable development and transform itself from a traditional energy and chemical engineering company into a leading provider for international clean energy services in the midst of both opportunities and risks.

Zhou Hongliang

Executive Director and Chief Executive Officer

3

Wison Engineering Services Co. Ltd.

ABOUT THIS REPORT

REPORT OVERVIEW

Wison Engineering Services Co. Ltd. (the "Company" together with its subsidiaries, hereinafter referred to as the "Group" or "Wison" or "we" or "us") is pleased to present the annual environmental, social and governance report for year ended 31 December 2023 (the "ESG Report" or "this Report") to provide an overview of the Group's management of significant issues affecting the operation, including environmental, social and governance ("ESG") matters.

The Group puts the sustainable development of its business as the top priority of its long-term development goals, and incorporate climate-related issues and environmental, social and governance elements into its long- term business strategic planning. As the most important leading role of the Group, the board of directors (the "Board of Directors" or the "Board") has the sole responsibility to oversee, manage and monitor the Group's ESG issues and progress directly. The Board is committed to integrating ESG principles into our business management practices.

Looking ahead, the Board will continue to review and monitor the environmental, social and corporate governance performance of the Group and provide material, reliable, consistent and comparable environmental, social and corporate governance information to its stakeholders for making contributions to create a better environment.

SCOPE OF REPORT

The policies and data contained in this Report cover the Company and its wholly-owned and controlled subsidiaries. Some of the content involves Wison Group Holding Limited (the "Wison Group"). The scope of data disclosure is from 1 January 2023 to 31 December 2023 (the "Reporting Period" or the "Year"), with some additional related information incorporated that may have occurred outside the Reporting Period. Unless otherwise specified, the currency used in this Report is Renminbi ("RMB").

BASIS OF PREPARATION

This Report is prepared based on the Environmental, Social, and Governance Reporting Guide (the "Guide") in Appendix C2 to the Rules Governing the Listing of Securities (the "Listing Rules") issued by the Stock Exchange of Hong Kong Limited (the "Stock Exchange" or "HKEX") with reference to the GRI Standards issued by the Global Sustainability Standards Board (the "GSSB").

The content covered in this Report complies with the mandatory disclosure provisions, "comply or explain" clause, and requirements of four Reporting Principles (i.e. materiality, quantitative, balance, and consistency) of the Guide.

4

Environmental, Social and Governance Report 2023

ABOUT THIS REPORT

Materiality

Quantitative

Balance

Consistency

This Report has clearly

The statistical criteria,

The Report provides a

The statistical methods

identified and disclosed

methods, assumptions,

fair and objective picture

used to disclose

the process of

and/or calculation tools

of the Company's

information in this

significant ESG topics

used to report

performance during the

Report are consistent

and the principles on

emissions/energy

Reporting Period and

with those used last

which such topics are

consumption (if

avoids selections,

year. Any changes will

chosen, as well as the

applicable) in this

omissions, or

be clearly stated in the

description of identified

Report, as well as the

presentation formats

Report.

key stakeholders and

sources of conversion

that may inappropriately

the process and results

factors, are all

influence a decision or

of stakeholder

explained in the Report.

judgment by the Report

engagement.

readers.

SOURCE OF AND RELIABILITY GUARANTEE FOR DATA

The data and cases in this Report mainly come from the Company's statistical reports and relevant files. The board of directors of the Group solemnly undertakes that the Report does not contain any false statements or misleading records, and is responsible for the authenticity, accuracy, and completeness of its content.

ACCESS AND RESPONSE TO THIS REPORT

This Report is available in both traditional Chinese and English versions for readers' reference. In case of any discrepancy, the traditional Chinese version prevails.

The electronic version of this Report is available in the section headed "Financial Statements/Environmental, Social and Governance Information" on the website of the Stock Exchange (www.hkexnews.hk) or on the official website of Wison Engineering (www.wison-engineering.com).

We attach great importance to the suggestions of stakeholders and welcome readers to contact us using the following contact information. Your suggestions will help us further improve this Report and enhance the overall sustainability performance of Wison Engineering.

Tel.: 852-21164313

Fax: 852-21169273

Address: Room 2507, 25th Floor, Central Plaza, 18 Harbour Road, Wan Chai, Hong Kong

5

Wison Engineering Services Co. Ltd.

AWARDS AND HONOURS

Over the years, Wison Engineering has been widely recognised for its quality engineering design, research and development (R&D) of innovative technology, and excellent consultancy results. During the Reporting Period, we once again won a number of awards and honours, which indicated a high level of recognition and acknowledgement from all walks of life.

Awarded projects

Awards

Awarding institutions

Outstanding design results

Shandong Yang Coal Hengtong's

First Prize of Shanghai Excellent

Shanghai Exploration &

300,000-tonne Methanol to

Engineering Exploration and

Design Trade Association

Olefin Project

Design Awards (Industrial Category)

1 Million Tonnes/year Ethylene Plant

Second Prize of Excellent Engineering

China Petroleum &

under Polyurethane Industry Chain

Exploration and Design Awards in

Chemical Engineering Survey and

Integration-Ethylene Project of

Petroleum and Chemical Industry for 2023

Design Association

Wanhua Chemical

200,000 Tonnes/year

Chlorination Method Titanium Dioxide

Second Prize of Excellent Exploration and

Survey and Design Association of

Production Line Project of

Design Awards in Henan Province for 2023

Henan Province

Henan Billions Advanced Material Co., Ltd.

100,000 Tonnes/year Butadiene

Production Plant under 600,000 Tonne/

year Methanol-to-olefins Production

Second Prize of Excellent Exploration and

Survey and Design Association of

Optimization Project of

Design Awards in Henan Province for 2023

Henan Province

Nanjing Chengzhi Yongqing

Energy Technology Co., Ltd.

Huang Ze Shan Oil Transfer, Storage,

Second Prize of Excellent Exploration and

and Transportation Project of

Design Awards for the Second Batch of

China Water Transportation

Guangsha (Zhoushan)

Water Transportation Projects in

Construction Association

Energy Group Co., Ltd.

2022-2023

6

Environmental, Social and Governance Report 2023

AWARDS AND HONOURS

Awarded projects

Awards

Awarding institutions

Excellent consultancy results

Feasibility Study Report on Coal-based

High-performance New Material Project

First Prize of 2023 Excellent Engineering

Association of Engineering

of Jiangsu Jinkong Equipment

Consultancy Awards in Henan Province

Consultation of Henan Province

Xinhengsheng Chemical Co., Ltd.

Feasibility Study Report on 80,000

First Prize of 2023 Excellent Engineering

Association of Engineering

Tonnes/year Melamine Project of Xinjiang

Consultancy Awards in Henan Province

Consultation of Henan Province

Yihua Chemical Co., Ltd.

Feasibility Study Report on New Chemical

First Prize of 2023 Excellent Engineering

Association of Engineering

Materials Project (Phase I) of Xinjiang

Consultancy Awards in Shanghai

Consultation of Shanghai

Xinlianxin Chemical Industry Co., Ltd.

Feasibility Study Report on Methanol to

Second Prize of 2023 Excellent

Olefin and Downstream Deep Processing

Association of Engineering

Engineering Consultancy Awards in

Integration Project of Guangxi Huayi

Consultation of Henan Province

Henan Province

Energy Chemical Co., Ltd.

Feasibility Study Report on Methanol to

Second Prize of 2023 Excellent

Olefin and Downstream Deep Processing

Association of Engineering

Engineering Consultancy Awards in

Integration Project of Guangxi Huayi

Consultation of Shanghai

Shanghai

Energy Chemical Co., Ltd.

Wison Engineering Services Co. Ltd.

AWARDS AND HONOURS

Awarded projects

Awards

Awarding institutions

AAAAA-grade projects in chemical engineering quality evaluation

600,000 Tonnes/year Propane

Dehydrogenation (PDH) Plant under C3

AAAAA-grade Project in Chemical

China National Association of

and C4 Comprehensive Utilization Project

Engineering Quality Evaluation

Chemical Construction Enterprises

of Shandong Binhua New Materials

Co., Ltd.

300,000 Tonnes/year Caustic Soda and

400,000 Tonnes/year PVC Project on the

AAAAA-grade Project in Chemical

China National Association of

Integrated New Materials Base of Huayi

Engineering Quality Evaluation

Chemical Construction Enterprises

Qinzhou Chemical Co., Ltd.

Awards

Awardees

Awarding institutions

Other awards

Outstanding Enterprises with

Wison Engineering (China) Limited

China National Association of

Market Competitiveness

Chemical Construction Enterprises

Top 100 Suppliers in China's Petroleum

Supply Chain Working Committee

Wison Engineering (China) Limited

of China Petroleum and Chemical

and Chemical Industry for 2023

Industry Federation

2023 Green Construction Project

in Chemical Industry (300,000 Tonnes/

year Caustic Soda and 400,000 Tonnes/

Wison Engineering (China) Limited

China National Association of

year PVC Project on the Integrated

Chemical Construction Enterprises

New Materials Base of Huayi Qinzhou

Chemical Co., Ltd.)

2023 Safe and Civilized Construction Site

in Chemical Industry (300,000 Tonnes/

year Caustic Soda and 400,000 Tonnes/

Wison Engineering (China) Limited

China National Association of

year PVC Project on the Integrated

Chemical Construction Enterprises

New Materials Base of Huayi Qinzhou

Chemical Co., Ltd.)

8

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Wison Engineering Services Co. Ltd. published this content on 25 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 April 2024 22:28:20 UTC.