1.Quality and Safety Committee

To promote the high-quality development of enterprises, improve engineering quality and safety management level, and fully utilize the technical and management expertise of line professionals, CIFI Group founded Engineering Quality and Safety Management Committee (hereinafter referred to as the “Quality and Safety Committee”). The Quality and Safety Committee is established to promote the evaluation of quality and safety schemes for crucial and difficult projects, daily guidance and acceptance of dangerous subdivisional work, emergency response to quality and safety incidents, green construction of ESG projects, environmental protection, occupational health and safety, etc.

I. Structure of Quality and Safety Management Committee

Quality and Safety Committee of the Group:

·Chairman of committee: Executive President of the Group;

·Deputy chairman of committee: Chief engineer and director of engineering management department of the Group;

·Members: composed of members of the engineering management department of the Group and heads of the frontline companies in charge of engineering.

II. Duties

2.1 Chairman:

·Responsible for establishing Quality and Safety Committee and the selection and appointment of the deputy chairman and members;

·Formulating the annual activity plan and main work of the Quality and Safety Committee;

·Evaluating the Committee's work results.

2.2 Deputy Chairman:

·Assists the chairman with carrying out quality and safety management activities.

III. Work Content:

3.1 Quality and Safety Committee

·Responsible for developing annual line quality goals, safety and environmental governance;

·Responsible for developing research and promotion strategies of annual quality and safety special topics;

·Investigates the causes of major quality, safety and environmental governance incidents within the Group, clarifying responsibilities, and providing final handling and guidance;

·Responsible for preparation and examination of the ESG engineering segment of the report before publication;

·In charge of carrying out the feasibility study and pilot project of engineering quality and safety technology innovation within the Group;

·Responsible for holding a quality and safety meeting every six months to summarize semi-annual and annual major quality and safety production problems, and study and decide the next work arrangement;

·Responsible for coordinating work related to quality and safety with other functional lines.

IV. Personnel Requirements:

The members of the Quality and Safety Committee of the Group must have a job grade of 7.1 or above and have relevant professional abilities and qualifications. They have tenure for more than one year, with relevant experience in key work, and they are familiar with the Group’s requirements and standards. They have strong working willingness and motivation.

V. Work Development:

According to the specific work needs, the Group’s Quality and Safety Committee shall be convened by the chairman or deputy chairman to carry out work in stages according to the specific affairs. Members of the organization shall give priority to the relevant work of the Quality and Safety Committee in case of conflict with their own work.

VI. Examination, Incentives and Withdrawal:

6.1 According to the annual management performance of the frontline companies, the Group’s Quality and Safety Committee commends and encourages the teams that have made outstanding achievements in actively promoting the affairs of quality, safety and environmental governance;

6.2 For those individuals or teams who have made outstanding value or contribution to the quality and safety management of the Group, the Quality and Safety Committee of the Group may recommend the general manager’s special incentive fund to the frontline companies.

6.3 The tenure of the Quality and Safety Committee is two years, and the chairman is responsible or he entrusts deputy chairman to be responsible for the general election of the Quality and Safety Committee. The members and deputy chairman can be replaced or retained according to the actual performance and work needs.

6.4 The Group’s quality and safety management indicators shall serve as annual performance evaluation indicators for members of the Quality and Safety Committee and the management team. In case of casualties and serious economic losses caused by negligence and major mistakes in quality and safety management, they will be held accountable as per the Accountability Management System of CIFI Group.

The Group has obtained the ISO 9001 quality management system certification, and ISO 45001 occupational health and safety management system standard certification and carried out product quality and safety management in accordance with the standard.

2. Safety First

The Group strictly observes laws and regulations such as the “Production Safety Law of the People’s Republic of China”, and has its “Safe and Civilised Management System” and “Operational Guidelines for Safe, Civilised and Standardised Management” in place. Such regulations set out the inspection standard of safe and civilised construction, as well as the division of responsibilities of relevant unit in terms of safe and civilised construction. The regulations have also clarified the work procedure of safe and civilised construction, with the purpose of achieving a scientific, standardized and systematic management on safe production.

To ensure the smooth achievement of the goal, the Group decomposes the goal into different construction stages and scopes, controls the hazard sources in real time, and formulates corresponding plans and management and control measures for major hazard sources and important environmental factors to achieve the goal. At the same time, the Group strives to create "safe and civilized construction sites at various national, provincial and municipal levels" and incorporates corresponding awards into the Group's engineering management reward and punishment system.

The Group adopts strict civilized construction management and control measures, and continuously strengthens standardized construction health and safety management and control:

（1）Safety risk and emergency management

The Group carries out safety risk identification and evaluation of the project, and establishes standard procedures for handling accidents to ensure that they can respond quickly after a safety accident occurs, prevent accidents from expanding, and reduce adverse effects; ensure that the safety and civilization of the project under construction are under control and prevent safety accidents To realize the normalized management of project safety and civilization.

（2）Safety inspection and training

The Group implements a safety production education and training system. All construction personnel must undergo "three-level" safety education, and various special types of work must undergo special safety operation technical training; the project department conducts safety inspection education for project employees once a week. Rectify immediately or within a time limit; for major construction projects and hazardous operations, employees must conduct targeted safety education before working. In addition to the safety inspections by the construction party and the project department, third-party flight inspections also include construction safety management within the scope of key inspections, and strive to eliminate all potential safety hazards.

（3）Construction entrance management

Employee access is based on real-name attendance, and safety production signs should be set up at the entrance. Construction personnel must wear safety helmets, buckle up straps, and properly use personal labor protection equipment when entering the site.

（4）Fire safety management

Develop on-site fire protection work system and fire prevention and disaster relief plan, and clarify the fire protection person in each area. The hot work area shall be delineated on the construction site and fully closed management shall be implemented. The construction site is equipped with sufficient fire-fighting equipment and regularly inspected.

（5）Management of sanitary facilities

The construction site must supply drinking water that meets hygienic standards. Summer constructions should have heatstroke prevention and cooling measures. Special smoking rooms must be set up and signs should be set up for smoking in the construction work area. The construction site should be equipped with medical care and trained first-aid personnel.

（6）Management of office and living facilities

Temporary buildings and structures such as office life must be stable, safe, tidy and meet the requirements of fire protection. It is forbidden to double the construction in progress as the accommodation of construction personnel, and it is strictly forbidden to pull the wire to connect the electricity or use the electric stove and open fire to cook food.

（7）Technology empowering construction safety management

The visualized control platform established by the Group strengthens the control of the construction site by adding a full-coverage camera, empowering construction safety management with technology. The development unit, supervisory unit and construction unit could monitor and control the construction site through the remote online platform.

Through efficient construction safety management, the Group recorded zero accident liability for safety in 2022.

3. Employee Health

The Group internally advocates the employee's value proposition of "happiness, health, prosperity and progress", and provides employees with professional and physical health protection through various forms:

（1）The Group provides employees with high-quality annual physical examination and additional commercial insurance (depending on the situation in the territory) above the average market level, and arranges one-to-one or one-to-many medical professional consultation for physical examination and health;

（2）Various associations (basketball, football, badminton, hiking, running, etc.) organise and operate various interest groups for employees, so as to enhance their physical fitness and enrich their lives;

（3）Through various activities such as Gobi hiking, urban hiking and team-building hiking, the Group works actively to shape its “hiking” atmosphere and sports label, and conveys the concept of healthy life to employees during their intensive work;

（4）The atmosphere of teamwork is promoted through regular internal team building, travel, dinner party and other ways, to ease the work pressure of employees;

（5）The Group continuously improves the office environment and facilities, and through the use of high-quality materials and furniture, makes the staff’s office more comfortable and efficient.

（6）In response to the government's call for anti-pandemic, the Group actively deployed prevention and control work to protect employees' health and safety. In 2021, a temporary vaccination station was set up at CIFI's headquarters in collaboration with the district pandemic prevention office, and nearly a thousand people got vaccinated for each dose. In addition, the Group provided food supply packages to employees in Shanghai 3 times in order to solve the worries of food shortage.

The Group, committed to building a cultural atmosphere of “Simplicity, Fairness, Sunshine, Respect, Trust and Openness”, advocates the employees’ value proposition of “Happiness, Health, Prosperity and Progress” and pursues universal values, so that employees can work safely in a simple professional atmosphere filled with sunshine and feel the sense of belonging, cohesion and achievement.