Health and Safety Policy
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, thus issues a series of internal administration measures and emergency plans which are applied to all employees, part-time employees and contractors of the Company, such as the Plant Environment Health and Safety Management Procedures, the Plant Environment Health and Safety Policy and Principles, the Hazard Identification and Risk Assessment Criteria and Method Standards and Work-Related Injuries Handling Procedures, to form an institutional guarantee for the implementation of safety production and prevention of occupational diseases.

Sound Healthy and Safety Management System
Safety production is always the top priority of the Company. The Sustainable Development Committee is the highest executive and responsibility authority concerning EHS (Environment, Health and Safety, EHS) management and regularly listens to the work reports of each Business relating to EHS. All Businesses have set up health and safety management systems, as well as set up full-time EHS management personnel to formulate annual EHS plans, targets, and improvement plan, and to guide and oversee the implementation of all 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 manager and safety personnel, responsible for the undertaking and implementation of safety policies, EHS compliance operation in the factory, daily safety training, potential risks identification and treatment and others, and strictly assigns responsibilities of safety production.

Health and Safety Management System Certification
In 2023, a total of 38 factories of the Company obtained ISO 45001 Occupational Health and Safety Management System certification. All businesses have strictly complied with the requirement of the occupational health and safety management system and classify the mid- and long-term management target and core initiative of safety production to further reduce related risks. 

Health and Safety Targets
Master Kong has set health and safety targets covering all employees and all contractors. The company reviews the achievement of the goals every year and updates the goals for the next year.
In 2024, Master Kong has set the overall target of no occupational disease cases and no work-related fatalities throughout the company.
In addition, each business has set specific targets including:
?    The instant noodles business targeted making the lost time injury rate (LTIR) decrease by 5% in 2024 compared to 2023;
?    The Master Kong beverage business targeted making the lost time injury rate (LTIR) decrease by 5% in 2024 compared to 2023;
?    The Pepsi beverage business targeted making the lost time injury rate (LTIR) decrease by 5% in 2024 compared to 2023.
In 2023, the specific health and safety performance of al business is as follows:
The instant noodles business targeted making the lost time injury rate (LTIR) decrease by 5% as compared to 2022 while the actual lost time injury rate has decreased by 8% during this year, and 12 factories have reached zero accidents.
Both the Master Kong beverage business and the pepsi beverage business aimed at bringing down their LTIR by 10% as compared to 2021, while the actual lost time injury rate decreased by 20% and 15% during the year, respectively.
The Bakery Business brought out a Responsibility System for Safe Production (《安全生产责任制》), which required all members to sign the Safe Production Letter of Commitment（《安全生产责任书》） and they can start working only after receiving three-level training education. To ensure the safety production of contractors, the Bakery Business has entered into the Safety Agreement (《安全协议》 ) with all contractors with no serious accidents and no occupational disease cases during the year.

Safeguard 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 Company attaches great importance to promoting and training employees in health and safety. All new employees are required to receive safety training prior to deployment. The Company regularly conducts safety promotion to ensure a safe working environment and conditions, strengthen monitoring of occupational hazard factors and effectively prevent occupational diseases. Each factory of Master Kong has established complete and effective operation specifications and safety emergency response mechanisms, strictly conducted annual EHS audits, and organized safety and health skill training and emergency drills regularly. 
In 2023, the Company actively carried out three-level training education (factory level, workshop level, team level) , set up EHS specialists to continuously carry out safety education, and regularly organized EHS skills training and competitions to continuously raise the awareness of our staff on production safety.
 

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