On April 28, Luen Mei Quantum (600167.SH) officially issued the Environmental, Social and Governance (ESG) Report 2021, which comprehensively demonstrated its ESG management activities and outcomes, and showed that the company environment, the society and the company governance affairs have been sufficiently integrated into the company's development strategies and operating activities.

As an enterprise citizen who adheres to green and low-carbon development, Luen Mei Quantum has kept pace with the times and issued the Environmental, Social and Governance (ESG) Report for three consecutive years, presenting the value of enterprise social responsibilities to the public in an all-round, multi-dimensional and three-dimensional way.

Based on the new development stage, Luen Mei Quantum has practiced the new development concept and fully promote the connotative development with better structure, newer model and stronger anti-risk ability. In 2021, the company has continuously deepened its understanding of sustainable development in practice, integrated the management concept of promoting social responsibilities into the enterprise strategies and operation management system. And it has systematically improved the overall ESG level by focusing on "Practicing the concept of carbon neutrality, promoting high-quality company governance, and building harmonious community relations".

Practice green development concept and deepen comprehensive energy strategy layout

Luen Mei Quantum first stepped on the road of revolution, brought out a brand new "comprehensive energy strategy upgrading routine". Through developing the low-carbon technologies for energy saving and emission reduction, launching the comprehensive energy business, exploring the electric energy storage market and laying out the hydrogen energy industry, it thoroughly promoted the realization of the carbon neutrality goal.

"Comprehensive energy strategy transformation" is one of the highlights of its business development in 2021. Centering on core products of refrigeration, heating supply, electricity and gas, and combining digital technologies, it integrates the applications of the cutting-edge energy technologies and equipment, providing clients with clean, high-efficiency, safe, stable and comprehensive energy service. While further improving the efficiency of the urban central heating system, it vigorously developed the distributed clean energy technologies to realize the clean upgrading of the source end. At the tail end, it further improves the service quality, and promotes the service reaction speed and accuracy using the Internet of things technologies to realize accurate feedback.

In the future, the hydrogen industry layout will be another effort-exerting direction. The company will give full play to its existing industrial resources and capital advantages, strive to make a breakthrough in the business direction of hydrogen cogeneration and hydrogen distributed power generation, and integrate the upstream and downstream industrial core technologies and equipment, especially in the key links such as clean energy hydrogen production, high-pressure hydrogen storage and fuel cells, in which it will actively lay out, form business collaboration, and build the core competence of hydrogen energy development.

Continuously optimize company governance and improve organizational and institutional guarantee

Luen Mei Quantum was committed to improving the corporate governance structure with the shareholders' meeting, the board of directors, the board of supervisors and the management being the core, and achieved standardized, scientific and efficient governance and provided organizational and institutional guarantee for business decisions, leading the long-term steady development of the company with perfect corporate governance. In addition, the spin off listing of the subsidiary Mega-info Media was successfully completed, realizing the mutual independence and mutual reinforcing of capital platforms between Luen Mei Quantum and Mega-info Media.

Stick to the responsibilities as both citizen and enterprise, overcome difficulties and build a harmonious community

Faced with the severe situation of repeated epidemics, the company took the safe, stable and continuous heat source supply as the main goal and effectively completed the heating work within its jurisdiction in winter while doing a good job in epidemic prevention and control, ensuring the warmth of residents in home quarantine. Meanwhile, zero infection due to well-executed epidemic prevention and control of the company received praise from the government and citizens. In 2021, 5 subsidiaries and 17 employees of Luen Mei Quantum were awarded by Shenyang municipal government during the heating season.

Currently, the ESG system of Luen Mei Quantum has been recognized by relevant authorities. In January 2022, among 50 A-share companies with best ESG rating selected by Shenwan Hongyuan, Luen Mei Quantum was listed as one of the "50 Best ESG" stock pools. In 2022, in the "2021 Sino-Securities Index ESG Rating" released by Sino-Securities Index Information Service Co. Ltd, the ESG rating of Luen Mei Quantum was raised to "AA".

Luen Mei Quantum will also continue to deeply integrate the sustainable development of the enterprise with the national goal of "peak carbon dioxide emissions and carbon neutrality", further accelerate the transformation and upgrading, make green development and scientific and technological energy usage become the core competitiveness of the company, and enable the long-term continuous improvement of enterprise competitiveness with continuous technological innovation, high-quality customer service, operating philosophy of green development, refined management system and steady operating performance.