Sustainability Report (RV9JJ 5KwY1)

(Incorporated in the Cayman Islands with limited liability) (Stock code: 00813.HK)

Shimao Group Sustainability Report 2024

ABOUT SHIMAO GROUP 2

MESSAGE FROM THE CHAIRMAN 2

COMPANY INTRODUCTION 5

ABOUT THE REPORT 6

MATERIALITY ASSESSMENT OF ESG ISSUES 6

SUSTAINABLE DEVELOPMENT WORK 9

ENVIRONMENT 11

GREEN, LOW-CARBON AND SUSTAINABLE DEVELOPMENT 11

CLIMATE CHANGE 18

ENERGY CONSUMPTION 21

WATER RESOURCE USAGE 23

WASTE MANAGEMENT 24

SOCIAL 29

EMPLOYEES 29

SUPPLIERS 38

USERS 43

PRODUCT RESPONSIBILITY 46

BUSINESS INTEGRITY 48

SOCIAL RESPONSIBILITY 52

APPENDIX 57

HKEX ESG REPORTING FRAMEWORK INDEX 57

PERFORMANCE SUMMARY TABLE (ENVIRONMENT) 58

PERFORMANCE SUMMARY TABLE (SOCIAL) 60

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Shimao Group Sustainability Report 2024

In a global context where environmental and social challenges are becoming increasingly severe, Shimao Group deeply recognizes the importance of stable operations and constructing a sustainable development ecosystem. We adhere to our responsibilities and mission, ensuring that all actions and decisions align with sustainable development principles, creating a more prosperous and sustainable world for future generations.

Stable operation is our core strategy. This means we will establish a sound management system, strengthen internal controls, and ensure the efficient use of resources and effective risk management. We will focus on improving efficiency, reducing energy and resource consumption, and driving sustainable operations through innovative methods. We will optimize resource allocation, improve resource utilization efficiency, and reduce waste. At the same time, we will establish a comprehensive risk management system to identify and respond to potential risks in a timely manner. Additionally, we will adopt advanced technology and innovative methods to enhance operational efficiency and environmental performance.

With over 30 years of history in the real estate sector, Shimao Group has led the development of many iconic landmark buildings and super city complexes in China. We take pride in developing high-quality projects and eco-friendly buildings, aiming to provide a healthy living environment and a high-quality lifestyle for everyone. The group always prioritizes product quality and service levels, ensuring that every delivered project meets our clients' high standards. In 2024, Shimao completed the delivery of 73 projects and 136 batches across 49 cities nationwide, with a cumulative delivery of 51,000 units throughout the year, and over 142,200 units delivered in the past two years. On the basis of stable delivery, Shimao actively promotes the collaborative development of diversified businesses, including commercial and entertainment, property management, and hotel businesses. The high-quality development of these businesses not only brings new growth points to the Company but also provides customers with more diverse service options. Through continuous exploration and innovation, Shimao is gradually solidifying the Company's "second curve", laying a solid foundation for future sustainable development.

Shimao Group views addressing climate change as both an important challenge and an opportunity, and has taken a series of energy-saving and emission-reduction measures. We actively implement the national strategy of "Carbon Peak and Carbon Neutrality", striving to achieve carbon peak by 2030 and carbon neutrality by 2060. We continuously invest in and deploy new green solutions to further enhance our environmental performance and provide a better experience for our customers. We believe that green building will become the mainstream of the industry in the future, and Shimao Group will play a key role in this transformation.

In the process of architectural design and construction, we utilize advanced energy-saving technologies to improve the energy efficiency of buildings and reduce carbon emissions. At the same time, we collaborate with suppliers, partners, and other stakeholders to promote the realization of sustainable development. In real estate development projects, we introduce a number of innovative solutions and technologies to further enhance environmental performance and provide a superior experience for our customers, thereby actively contributing to the low-carbon transformation of the industry.

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Shimao Group Sustainability Report 2024

By improving the energy efficiency level of electrical equipment, optimizing the thermal performance of envelope structures, and making full use of renewable and clean resources, Shimao Group has effectively contributed to the realization of the "Dual Carbon" goal. Through the adoption of advanced technology and smart energy systems, we strive to further reduce emissions and waste generation, manage resources more efficiently, and strengthen the implementation of green building principles in more properties we develop and manage.

The real estate industry is changing rapidly, and Shimao Group has demonstrated its core values in the areas of sustainability and advanced technology with its innovative ability and adaptability. The Group's outstanding projects have won numerous awards. Within three years from 2022 to 2024, Shimao delivered a cumulative total of 262,345 units, adhering to quality delivery and earning the honorific title of "2024 Annual Quality Delivery Real Estate Enterprise".

We consistently integrate sustainable development, serving society, and giving back to the community into our core business development strategy. The group is deeply aware of its significant social responsibilities and is committed to creating high-quality built environments, providing stable employment opportunities, and fostering green, cultural, and inclusive living spaces for everyone.

In 2024, we made substantial progress in our sustainable development goals and demonstrated significant achievements in environmental, social, and governance ("ESG") management. We always prioritize the health and safety of our employees, continuously improving our supply chain risk management mechanisms to ensure that it meets high standards of social responsibility. By establishing a comprehensive green supply chain management system, we regularly assess the sustainable development performance of our suppliers and take prompt and effective measures to address potential risks in the supply chain.

We deeply recognize that employees are the core driving force behind the long-term success of a company. Therefore, we are committed to creating a healthy, safe, and opportunity-filled working environment for our staff. In our past practices, we have continuously improved career development opportunities for employees by optimizing internal processes and resource allocation. At the same time, we focus on cultivating an open and transparent corporate culture that encourages active participation in the Company's innovation and development.

We also enhance employee engagement and a sense of belonging by strengthening internal communication mechanisms, making every employee feel valued and appreciated for their contributions. This people-oriented management philosophy not only strengthens team cohesion but also injects a continuous stream of momentum into the sustainable development of the Company. We believe that only by truly caring for the needs and well-being of our employees can we achieve shared growth between the Company and its staff, creating greater value for society.

Shimao Group adheres to its commitment to sustainable development and has disclosed its ESG report to the public for nine consecutive years, showcasing our efforts and achievements in promoting sustainability, green development, and social welfare. By meticulously documenting the major accomplishments and initiatives of 2024, including the implementation of green projects and the enhancement of environmental, social, and governance management, we continue to explore and advance on the path of sustainable development, striving to create greater value for society and to paint a brighter future blueprint for people.

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Shimao Group Sustainability Report 2024

On behalf of the Board of Directors, I would like to express heartfelt gratitude to all stakeholders who have given us unwavering support. Special homage goes to all colleagues, who, in the challenging past year, have faced difficulties head-on with extraordinary courage and relentless effort, overcoming numerous obstacles and making outstanding contributions to the steady development of the Company. It is because of your hard work that we have been able to move forward steadily in a complex and ever-changing environment.

Looking to the future, we expect every employee and partner to actively participate in the great cause of sustainable development. I believe that only through everyone's cohesion can we go further and more steadily on the road of sustainable development. To this end, we will continue to provide diverse range of learning resources and growth platforms to help everyone enhance their awareness and practical ability of the concept of sustainable development, and ensure that this concept is integrated into every work and decision we make. Let us move forward together and jointly write a new chapter of sustainable development that belongs to us and the world!

Hui Sai Tan, Jason

Chairman and President

Hong Kong, 28 March 2025

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