Shimao has built a century-long corporate culture, injecting sustainable development genes and strong internal drive for quality growth with its corporate social responsibility and philosophy of helping people live a better life. The "Giant Aircraft Strategy" is being promoted in an integrated manner to achieve a comprehensive upgrade of urban empowerment and steady delivery of long-term value.

Shimao Group (the “Company”) has established a comprehensive sustainable development management structure, forming a three-level working mechanism of "Decision-making Level - Management Level - Implementation Level" to systematically carry out relevant controlling and ensure the effective implementation of policies and initiatives. The Board of Directors, as the highest Decision-making Level for sustainable development management, oversees all aspects of sustainable development work. The ESG Management Committee is formed by the senior management of the Company. As the Management Level, the Committee reports regularly to the decision-making level. ESG Working Groups were established as the Implementation Level to clarify the work responsibilities of each profession in the sustainability strategy and ensure the smooth operation of related mechanisms.

In order to establish a long-term top down ESG management mechanism, the Company integrates sustainable development performance into the performance assessment of the company's directors and executives, specifying the performance requirements of directors and executives in the areas of employee health and safety, climate change response and ESG reporting management, and prompting the management to optimise and improve ESG management. In the event of a negative ESG incident, penalties will be set at the appropriate level according to the severity of the incident.

Statement by the Board of Directors：The Board of Directors of Shimao Group has delegated to the ESG Management Committee the overall responsibility for overseeing ESG management and conducting ESG communication meetings not less than twice a year. We are responsible for establishing the company's ESG strategy and regularly reviewing its implementation; identifying and assessing ESG risks, discussing and identifying ESG materiality issues; reviewing the ESG management policies and ensuring their continuous implementation and enforcement; reviewing ESG plans and targets setting and regularly reviewing the achievement of ESG targets; reviewing ESG performance and ultimately coordinate, implement and execute relevant procedures through the ESG Management Committee and ESG Working Groups.