China Resources Beverage (Holdings) Company Limited ("CR Beverage" or the "Company") adheres to the commitment to environmental protection and has formulated scientific and reasonable management guidelines covering the whole lifecycle of packaging materials. While ensuring that packaging materials comply with environmental standards, the Company actively promotes the innovation and research of eco-friendly packaging materials and leads the green transition of packaging materials.

1 Purpose

This Policy aims to reduce the environmental pressure caused by business operations through compliant and efficient management of the use of packaging materials. In the meantime, on the basis of ensuring compliance with environmental standards, the Company actively seeks to reduce packaging material usage, adopt recyclable and reusable designs, explore the application of renewable and degradable materials, and deepen the whole lifecycle management of product packaging, thus reducing the environmental impact of packaging products at the source and offering consumers more choices of green packaging.

2 Scope of Application

This Policy applies to CR Beverage and its subordinate entities at all levels. All business partners, including cooperative partners, contractors and suppliers, are encouraged to comply with this Policy.

3 Laws, Regulations and Internal Systems

CR Beverage complies with laws, regulations and industry standards related to packaging materials in the regions where it operates, including but not limited to the Food Safety Law of the PRC, the National Food Safety Standard Standard for Uses of Additives in Food Contact Materials and Their Products and the Measures for the Metrological Supervision and Administration of Quantitatively Packed Commodities. In the meantime, the Company has formulated a number of internal policies, such as the Standards for PET Bottles for Drinking Water and the Standards for Cardboards for Drinking Water, to ensure that the environmental impacts potentially caused by the business operations are within the requirements of laws and regulations.

4 Policy Content

4.1 Strategies of Packaging Material Usage

The Company actively implements the lightweight packaging strategy, which focuses on product design and packaging materials and aims to reduce the consumption of packaging materials for drinking water and beverages from the source. Through packaging upgrades and alternative materials, the Company continues to reduce the negative environmental impact of packaging material usage.

4.2 Objectives of Packaging Material Usage

The Company sets targets for packaging reduction and lightweighting. The Company aims to gradually reduce the packaging material consumption required per unit product without compromising product protection and consumer experience and promotes green packaging transformation to achieve 100% usage of recyclable packaging materials. At the same time, the Company continues to assess the comprehensive impact with the reduction and lightweighting strategies on product costs, the environment and consumer acceptance, so as to ensure that the achievement of packaging material usage targets can deliver sustainable social, economic and environmental benefits.

4.3 Management Measures for Packaging Material Usage

Reduce

·  The company manages the usage of packaging materials precisely, strictly controls the packaging material management process from the source, and reduces resource consumption while guaranteeing material quality.

·  The company deeply explore the structural optimization of packaging materials and introduces packaging lightweighting and reduction solutions without compromising product safety and performance.

Reuse

·  The company explores sustainable iterations paths of packaging materials, implements green incentive efforts, actively promote eco-friendly concepts, and facilitate material reuse along the value chain.

Recycle

·  The company continuously promotes the testing and development of recyclable packaging materials, and actively adopt recyclable materials to achieve long-term recycling of outer packaging materials.

·  The company carries out special activities on packaging material recycling to encourage societal participation in the plastic recycling campaign.

Recovery

·  The company takes systematic environmental-friendly measures to promote resource conservation and green packaging.

·  The company actively engages in industry cooperation and exchanges to facilitate the formulation of stricter and more scientific packaging material standards and to promote the sustainable development of the beverage industry.

5 Revision and Review

The Company will regularly review this Policy and make appropriate revisions when necessary.