CR Beverage is deeply committed to advancing sustainable development initiatives, upholding the responsibility culture inherited from the China Resources Group. We proactively integrate social responsibility and ESG principles into our corporate development strategies, major decision, and production operations. Starting with top-level design, we have formulated the corporate ESG strategy to chart a clear direction and set well-defined goals. Through the CR Beverage Social Responsibility and ESG Management Measures, we comprehensively address the needs of diverse stakeholders, including shareholders, customers, employees, partners, and communities. By actively implementing responsible practices, we drive the company's sustainable and high-quality development.

ESG Strategy

CR Beverage integrates its corporate vision with the principles of sustainable development, establishing a comprehensive strategy centered around Six Responsibilities, which lays a solid foundation for creating long-term value and positive social impact. With the strategic vision of "Better and stronger: to become a world-class beverage enterprise", the Company embeds sustainability into every facet of its business operations, thereby forming a strategic framework based on the Five Pillars and the Six Responsibility Areas.

The Five Pillars of sustainable development present the CR Beverage's comprehensive commitment to environmental protection, social responsibility, product innovation, industry collaboration, and employee welfare. These pillars encompass key ESG topics such as low-carbon operations, water resource management, community investment, public welfare and charity initiatives, pro

duct quality, innovative R&D, collaborative industry efforts, responsible supply chain management, talent development and occupational health. These pillars not only showcase its comprehensive strength in advancing green development, promoting social harmony, and enhancing customer experience but also reflects its long-term commitment to generating multi-dimensional value for its stakeholders.

In addition, the Company bases its sustainability strategy on Six Responsibility Areas: environmental, economy, customer, partner, employees and public responsibilities. This approach precisely delineates the boundaries of corporate responsibility and clarifies the practical pathways for the Company across various dimensions. This system not only strengthens the ESG governance capabilities but also helps the Company achieve a harmonious balance between economic benefits and social value in high-quality development, further conveying CR Beverage's corporate image as an organization that upholds integrity and fosters innovation.

By systematically developing its sustainability strategy, CR Beverage has not only established a comprehensive and robust governance framework but also continues to advance industry progress through practical actions. Moving forward, the Company will always uphold its mission and responsibilities as an industry leader, continuously steering industry development while providing safe, healthy, and high-quality living experiences for society.

ESG Organizational Structure

CR Beverage incorporates its ESG efforts into daily management practices and continuously refines its organizational structure for sustainability management.

Decision-making level: The Board of Directors is designated as the highest decision-making body for sustainability management, overseeing all sustainability-related matters comprehensively; Additionally, the Sustainable Development Committee has been established to supervise and manage the Company's social responsibility and ESG-related issues. This committee is tasked with conducting preliminary research on topics that require approval from the Board of Directors.

Management level: Managed by the headquarters office, people at this level are tasked with the comprehensive management of ESG-related matters. They ensure the formulation and scheduling of specific research and implementation tasks related to ESG strategies, while also providing regular reports to the Sustainable Development Committee.

Execution level: Comprised of departments at headquarters and business centers, people at this level are tasked with the execution of specific ESG tasks. They promptly communicate actual work conditions back to the headquarters office and are responsible for disseminating internal ESG-related information.

ESG Capacity Building

CR Beverage places significant emphasis on the latest developments in the ESG field and further focused on its commitment to ESG and deeply engaged in the research of the "Top Ten ESG Research Topics in China". The Company also participated in the development and research of two authoritative ESG information disclosure standards: the General Framework of the Chinese Corporate Sustainability Report Guide (CASS-ESG 6.0) and the Chinese Corporate Sustainability Reports (CASS-ESG 6.0) for the Alcohol, Beverage and Refined Tea Manufacturing Industry. Through these contributions, CR Beverage aims to help enhance the sustainability management practices among industry enterprises and support the establishment of an ESG evaluation system that reflects Chinese characteristics.Furthermore,actively builds platforms for promotion and empowerment. The Company conducts regular training and capacity-building initiatives.