Master Kong strictly complies with national laws and regulations such as the Law of the People’s Republic of China on Work Safety, the Law of the People’s Republic of China on Prevention and Control of Occupational Diseases, and the Fire Services Law of the People’s Republic of China. We have accordingly issued a series of internal management measures and emergency plans covering all employees, part-time workers, and contractors, including Plant Environment Health and Safety Management Procedures, Plant Environment Health and Safety Policy and Principles, Hazard Identification and Risk Assessment Criteria and Method Standards and Work-Related Injuries Handling Procedures, to form an institutional guarantee for the implementation of work safety and prevention of occupational diseases.

Improving Management System

The Company always views production safety as its priority. The Sustainable Development Committee is the highest executive and responsible body for the management of Environment, Health, and Safety (EHS) issues within the Company. It regularly reviews the EHS work reports of each division. Each business establishes and improves its health and safety management system, as well as sets up full-time EHS management personnel to formulate annual EHS plans, targets, and improvement schemes, and to guide and supervise the implementation of various safety projects. To further enhance the grassroots production safety management and implement safety supervision and inspection, each factory has set up an EHS working group. The EHS working group is composed of safety supervisors and safety officers, responsible for the undertaking and implementation of safety policies, factory EHS compliance operations, daily safety training and potential hazard investigation and governance, to strictly implements production safety responsibilities.

In 2022, 38 factories of the Company obtained ISO 45001 Occupational Health and Safety Management System certification, and 13 factories obtained GB 33000 Guideline of China Occupational Safety and Health Management System certification. Each business strictly implemented the requirements of the occupational health management system and identifies the mid-to-long term management goals and core measures of production safety to further reduce risks on production safety. In 2022, each business has set and achieved an overall goal of zero occupational disease incidence and zero work-related death. The incidence of work-related injuries in the Instant Noodle Business decreased by 60% compared with 2021, and a total of 12 factories achieved the goal of zero work-related injuries. The Master Kong Beverages Business and the Pepsi Beverages Business have set targets for reducing the annual lost time incident rate (LTIR) by 10% compared with 2021, and the actual LTIRs of these two businesses have decreased by 15% and 12% respectively. The Bakery Business has formulated a series of goals including zero serious work-related accidents, zero fire accidents, less than 4% of work-related minor injuries, 100% rectification rate of potential safety hazards, 100% coverage of certification for specialized job positions, and 100% coverage of physical examination for personnel in positions with occupational hazards. It also implemented the safety production responsibility system for all employees, requiring all employees to sign the safety production responsibility letter to ensure the achievement of annual safety goals.

Ensuring Employee Safety

For positions with potential safety hazards and occupational health risks, the Company provides employees in these positions with personal protective equipment that meets national standards and conducts occupational health physical examinations for employees in related positions every year. For specialized operation positions, the Company requires employees to obtain the corresponding certificates. In terms of emergency management, the Company has established complete operation specifications and emergency handling mechanisms, and actively organized emergency drills such as fire safety practice to improve employees' safety emergency awareness and self-protection ability.

The supervision and training of employees in health and safety are of great importance to the Company. All new employees are required to receive safety trainings prior to deployment. Each factory of Master Kong has established complete and effective operation specifications and safety emergency response mechanisms, conducted safety and health annual review attentively, and organized safety and health skill trainings and emergency drills regularly. In 2022, the Instant Noodle Business carried out safety-related activities such as "I Require Safety" for 100 days and Kiken Yochi Training (KYT) danger prediction drills and encouraged the Company's safety officers to obtain the national registered safety engineer certificate. The beverage businesses increased the proportion of safety assessment and guided the factory to strengthen process management. The Bakery Business continued to carry out annual safety trainings covering all employees to consistently enhance employees' awareness of safe production.

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