Tingyi (Cayman Islands) Holding Corp.

Environmental Protection Policy

Preface

Master Kong actively undertakes the responsibility of environmental protection, identifies and complies with the requirements of national and local environmental laws and regulations, minimizes its negative impact on the environment, and continuously contributes to the realization of “Keep Our Nature Green”.??

This policy applies to Tingyi (Cayman Islands) Holding Corp. (hereinafter referred to as “Master Kong”, “the Company” or “We”) and its subsidiaries, aiming to clarify the Company’s commitment to environmental protection, drive continuous improvement in environmental performance, and provide clear guidance for all employees. The Company actively engages in communication with internal and external stakeholders on environmental issues, working collaboratively to create green value across the entire value chain. Furthermore, we actively encourage suppliers and other partners to acknowledge and adhere to this policy, joining hands in building a barrier for ecological and environmental protection.

Governance

The Board of Directors is responsible for overseeing ESG matters, including environmental protection, and holds ultimate accountability for them. The Company's Sustainable Development Committee assists the Board in guiding and monitoring the implementation of ESG initiatives. The Company has set environmental development targets relating to its business to better review and manage the Company’s environmental impact, and the Company’s Board and Sustainable Development Committee are responsible for regularly reviewing and conducting evaluations on the achievement of targets.

Target Setting??

Guided by the Company’s sustainable development philosophy, the Company has set environmental development targets based on the actual situation of our production and operation, combined with analysis of past environmental data and planning for future corporate development, including energy consumption, water consumption, waste and emission. Simultaneously, we regularly review and update these targets to minimize the negative environmental impact of our operations. Furthermore, the Company discloses the progress of these environmental targets through public channels such as the annual Environmental, Social, and Governance Report and Sustainability Report.

Environmental Management

1. Energy and Water Conservation Management:

• Formulate the energy management related measures as the policy guidance for energy saving work, clarifying the responsibilities of relevant units. Meanwhile, each business continuously optimizes its production processes and promotes key energy-saving projects to reduce energy consumption;
• Performance management indicators for energy consumption management have been set up in each business factories to better assess the implementation of energy conservation, and the effect of energy saving and consumption reduction has been incorporated into the performance appraisal indicators of relevant posts and combined with incentives to further enhance the importance of energy saving work by staff in relevant posts;
• Formulate Water Conservation Management System to guide the development of water conservation work and requires production staff to operate in strict compliance with the system. We put water saving and consumption reduction into the performance evaluation index of key supervisors of factory directors to implement effective water saving.

2. Emission and Carbon Reduction Management:

• Establish corresponding internal management systems for different categories of emissions to serve as a control basis, defining and clarifying the responsibilities of relevant positions;
• Continuously apply advanced management tools, optimize production processes, introduce advanced environmental protection facilities and technologies, and implement various environmental projects to mitigate the impact of production operations on the environment;
• Commission qualified third-party units to conduct regular environmental monitoring to ensure that all pollutants are discharged in accordance with standards; Regularly track and review the carbon emissions across the Company's business operations to gain a clear understanding of its emission profile and implement targeted carbon reduction initiatives;
• For hazardous waste generated, we have commissioned qualified professional units to conduct disposal in compliance;
• For nonhazardous waste, we strived to reduce waste generation at the source and promote the recycling and utilization of resources;
• Dispose and facilitate the secondary utilization of waste raw materials and food through qualified companies in compliance with local operational policies, enabling their use in feed production, composting, biodiesel manufacturing, and other applications to ensure proper treatment and resource recovery.

3. Plastic Reduction and Packaging Management:

• Based on the 3R (Reduce, Reuse, and Recycle) principles of a circular economy, it has formulated a green packaging strategy to minimize the environmental impact of product packaging;
• Prioritize packaging lightweighting as a key research focus, while ensuring that product packaging remains aesthetically appealing, practical, securely sealed, and compliant with national standards, Master Kong has reduced or optimized the use of packaging material for some product items. Furthermore, we will prioritize promoting packaging reuse and recycling as a key research focus for the next phase.

4. Digital Production Management:

• Continuously advance the comprehensive application of digital tools to precisely monitor and control various processes in production and operational activities, enhancing overall operating efficiency while reducing resource consumption;
• Optimize digital and intelligent supply chain system, applying scientific tools and management approaches, and progressively advancing the digital transformation of production management. This allows us to enhance corporate performance, promote efficient collaboration from upstream to downstream, and achieve harmonious win-win outcomes.

5. Sustainable Sourcing of Raw Materials:

• Place emphasis on risks that may arise from the production processes of raw materials such as paper products and palm oil. When selecting suppliers for these materials, priority will be given to those with sustainability-related certifications. We also encourage suppliers to enhance traceability and certification of raw materials, aiming to reduce negative impacts on natural resources, the environment, and society through sustainable and responsible sourcing practices.

6. Environmental-related Training:

• Regularly conduct training sessions for employees and suppliers on energy management, water resource management, waste management, and other related topics. By sharing advanced practices and experiences, we aim to achieve collective enhancement of the Company’s environmental management capabilities.

Stakeholder Engagement

Enhance daily communication with all stakeholders and ensure that all employees, business partners, and other relevant parties understand the environmental impact of the Company’s production and operational activities as well as their respective responsibilities, through measures such as publishing and promoting this policy.

The implementation of this policy is overseen by the Master Kong’s Sustainable Development Committee, with major impacts and progress toward goals reported to the Board of Directors. Master Kong regularly reviews this policy and makes revisions based on the latest regulations, regulatory developments, business conditions, and other factors. Employees should stay informed about policy updates to ensure that their actions remain aligned with the requirements of this policy.

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