ESG Report 2024

Wison Engineering Services Co. Ltd.

(Incorporated in the Cayman Islands with limited liability Stock Code: 2236)

Environmental, Social and

Governance Report

2024

Wison Engineering Services Co. Ltd.

MANAGEMENT/CHAIRMAN'S MESSAGE 2

ABOUT THIS REPORT 4

ANNUAL ESG PERFORMANCE 6

AWARDS AND HONOURS 7

1. A CLOSER LOOK AT WISON ENGINEERING 9

   1. AN OVERVIEW OF WISON ENGINEERING 9

   2. GOVERNANCE STRUCTURE 13

   3. PRACTICING SUSTAINABLE DEVELOPMENT 17

2. CONTINUOUS INNOVATION

   AND DEVELOPMENT 29

   1. INNOVATIVE R&D 29

   2. CORE COMPETITIVENESS 33

3. COMPREHENSIVE QHSE MANAGEMENT 34

   1. RIGOROUS MANAGEMENT SYSTEM 34

   2. SAFETY FIRST 37

   3. QUALITY FIRST 43

   4. LOW-CARBON OPERATION 47

4. PROMOTING MUTUAL BENEFIT 67

   1. QUALITY CUSTOMER SERVICE 67

   2. SUSTAINABLE SUPPLY CHAIN MANAGEMENT 70

   3. SPIRIT OF COOPERATION AND WIN-WIN 74

5. CARING FOR AND NURTURING EMPLOYEES 77

   1. EQUALITY, OPENNESS, AND INTEGRATION 77

   2. TRAINING AND DEVELOPMENT PLANNING 81

   3. EMPLOYEE BENEFITS 86

6. CONTRIBUTING TO THE COMMUNITY 91

APPENDIX I LIST OF MAJOR APPLICABLE

LAWS AND REGULATIONS 93

APPENDIX II CONTENT INDEX OF HKEX

ESG REPORTING GUIDE 95

APPENDIX III GRI STANDARDS CONTENT INDEX 101

APPENDIX IV GREENHOUSE GAS

VERIFICATION STATEMENT 108

Wison Engineering Services Co. Ltd. Environmental, Social and Governance Report 2024

During the Year, under the complex and volatile global economic situation, the advancement of global green transformation still promoted the green and low-carbon development of the petrochemical energy industry, bringing unprecedented challenges and opportunities. Against this backdrop, Wison Engineering adhered to its mission of "Technological Innovation Leads to a Better Future". The Group embraced new challenges and opportunities by continuing to accelerate its international transformation, intensifying its refined management, strengthening its risk control, and enhancing its digitalization and modularization capabilities. We continued to develop our core competence in energy and chemical engineering, while expediting our expansion into the new energy and new materials sectors to create value for our customers. Over the past year, we have not only maintained our industrial advantages in key product areas such as ethylene and crackers, propane dehydrogenation (PDH), methanol to olefins (MTO) and ammonia, but also enhanced our investment in new energy business, vigorously developing emerging technologies and products such as degradable plastics (PGA), methyl methacrylate (MMA), carbon emission reduction, green alcohol and green ammonia, butadiene process technology, and catalysts, etc.. Currently, we have achieved significant progress in these areas, promoting the Company's internationalised development and the upgrading and restructuring of our new quality business.

To further strengthen the quality, health, safety and environment (QHSE) management and optimise the management system, Wison Engineering sticks to the principle of "pursuing the whole life cycle of the project", aiming to enhance the standardisation of project QHSE management, design modularisation, prototyping, and digitalisation level. Additionally, it strives to build a "1+3" system of QHSE management with the project constructors, suppliers, and construction contractors, fostering a win-win situation and creating a positive ecosystem. In addition, while providing high-quality products and services to our customers, we have also implemented various measures for the occupational health and safety of our employees and environmental protection. We have successfully accomplished all the HSE-related targets set at the beginning of the year, with HSE performance comparable to that of first-class international engineering companies.

We are actively responding to and mitigating climate change. During the Year, we conducted verification of our direct and indirect GHG emissions through an independent third party in accordance with ISO 14064-3:2019, which is in line with the requirements of ISO 14064-1:2018 and ensures the accuracy of our GHG emissions data. We also conducted an inventory of GHG emissions (Scope 3) to gain a more comprehensive understanding of the carbon footprint in the value chain, so that we can formulate more effective low-carbon emission reduction strategies. During the Reporting Period, we joined hands with Wison Clean Energy to organise a series of activities on World Environment Day, such as a presentation and a quiz session on low-carbon practices and environmental protection for employees. These activities aimed to further enhance their awareness of low-carbon and environmental protection encouraging them to actively implement ESG principles and sustainable development concepts.

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Environmental, Social and Governance Report 2024 Wison Engineering Services Co. Ltd.

In the area of green energy, focusing on the "dual-carbon" goal, we made significant breakthroughs in a number of projects during the Year. These included the conversion of green hydrogen to green ammonia, green power electrolytic water to green hydrogen, biomass to methanol, and ethylene production from ethane oxidation and dehydrogenation. These advancements are accelerating the promotion of the strategic decarbonization pathway for traditional energy projects and the standardization of new energy projects. Among them, our EPC contract for the CO2 hydrogenation to methanol project in the new energy field was signed with a successful commissioning, which marked an important symbol of the Company's transformation from a traditional chemical engineering contractor to a green energy integrated service provider. In the face of the challenges and opportunities brought about by climate change, we are committed to promoting the transition to low-carbon operations using green energy. We have established the Green Hydrogen Product Technology Centre in this Year, focusing on the integration of Proton Exchange Membrane (PEM) electrolytic baths and Balance of Plant (BOP) systems, as well as the design and promotion of standardised and modular products. We have signed cooperation agreements with a number of leading companies in the industry to deepen and advance our strategic energy transformation.

Wison Engineering focuses on the "Three-horsepower Transformation" talent strategy, which is centred on organisation and talent enhancement, culture building and rule optimisation, and long-term incentives and compensation plans. It implements the strategy of talent recruitment and internal training to introduce high-calibre, competent talents specialised in different areas. At the same time, it strengthens the localised development of overseas talent and implements a range of training programs tailored to different talent types. These initiatives aim to empower employee growth, align performance with rewards, and establish a strong human resources foundation to support the Company's development and progress.

The year 2025 marks the conclusion of China's "14th Five-Year Plan". In active response to the country's energy technology reforms, Wison Engineering will promote the industrialisation of hydrogen energy, with focus on the four core products, including green hydrogen, green ammonia, green alcohol, and sustainable aviation fuel. In addition, it will proactively implement and advance its ESG management, while maintaining open and effective communication channels with stakeholders to embrace the challenges and opportunities in ESG. The goal is to achieve sustainable and healthy development of the Company in the long term.

Zhou Hongliang

Executive Director and Chief Executive Officer

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