China Resources Beverage (Holdings) Company Limited ("CR Beverage" or the "Company") adheres to the principles of sustainable development, and consistently practices responsible water resource management in the course of production and operations. The Company continues to improve the water resource utilization and reduce the adverse impact of its operations on local water resources.

1 Purpose

In order to ensure steady progress towards sustainable development, we are committed to the comprehensive protection and rational utilization of water resources. By formulating and implementing scientific and effective water resource management policies, we aim to effectively reduce the adverse environmental impact and make positive contributions to the protection of water resources.

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 relating to water resources in the regions where it operates, including but not limited to the Environmental Protection Law of the PRC, the Regulations on Water Conservation (the Order No. 776 of the State Council of the PRC). In the meantime, the Company has formulated a number of internal policies, such as the Environmental Monitoring and Measurement Management Regulations, to ensure that the environmental impact potentially caused by our business operations meets legal and regulatory requirements.

4 Policy Content

4.1 Water Source Management

·  The Company identifies and assesses water sources based on factors such as water volume, water quality and environmental conditions to ensure the quality of water intake and its environmental impact;

·  The Company conducts regular water quality testing and analysis to ensure clean and safe water sources. If any water quality problems are detected, the Company will immediately initiate emergency plans and promptly implement corrective measures;

·  The Company regularly identifies environmental risks arising from water intake, including monitoring soil erosion and identifying damaged soil and vegetation;

·  The Company protects the water ecosystems at the locations of its operations or locations of water intake to ensure that water sources are not overdrawn or polluted due to its business operations.

4.2 Water Conservation Management

·  The Company sets short-term and mid- to long-term goals for reducing water consumption and intensity, and conducts regular assessment and review on such goals to evaluate the effectiveness of water conservation;

·  The Company formulates corresponding water-saving measures through the whole lifecycle management of water footprint to continuously reduce water consumption in the course of its business operations and production.

4.3 Recycled Water and Alternative Water Sources

·  The Company uses recycled water or other non-freshwater sources when local laws and regulations permit and when such sources meet the company's water demand and safety standards;

·  Under conditions that are allowed, the Company installs water recycling or rainwater collection facility in order to increase the recycling rate of water resources.

4.4 Water Conservation Promotion and Training

·  The Company communicates the importance of water resource management to its employees, suppliers, partners, consumers and other stakeholders, and encourages them to protect water resources and implement water conservation measures in their ordinary operations and daily lives;

· The Company regularly organizes water conservation training to enhance all employees' awareness of environmental protection and water conservation.

5 Revision and Review

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