Legend : 2022ESG Report

2022

ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

TABLE OF CONTENTS

ABOUT THE REPORT	5
ABOUT LEGEND HOLDINGS	11
Company Profile	11
ESG Management System	14
Analysis of Material Issues	21
SPECIAL TOPIC 1 RESPONSIBILITY • SERVING THE COUNTRY
THROUGH INDUSTRIES	29
Development of Industries	29
Welfare Activities	33
SPECIAL TOPIC 2 PRACTICE • PROTECTING OUR BEAUTIFUL PLANET
WITH GREEN AND LOW-CARBON BEHAVIORS	39
Low-carbon Strategies	39
Towards Carbon Neutrality	41
1. BUILDING A TRANSPARENT AND SUSTAINABLE GOVERNANCE SYSTEM	49
Corporate Governance	49
Comprehensive Risk Management	52
Business Ethics	55
2. CONSTRUCTING A DIVERSE AND OPEN DEVELOPMENT PLATFORM	61
Employee Rights and Benefits	61
Diversity and Equal Opportunity	66
Occupational Health and Safety	68
Employee Training and Development	71
3. PROTECTING THE FAVORABLE ENVIRONMENT OF
LUSH MOUNTAINS AND LUCID WATERS	77
Environmental Management System	77
Responding to Climate Change and Implementing Energy Management	79
Resource Management	88
Emission and Waste Management	91
Biodiversity Management	95

4. FULFILLING THE FAIR AND SHARED RESPONSIBLE OPERATION	99
R&D and Innovation	99
Sustainable Products and Services	102
Supply Chain Management	108
Information Security and Privacy Protection	115
5. CREATING A HARMONIOUS SOCIETY	121
Empowering Rural Revitalisation	121
Promoting Technological Innovation	121
Promoting Social Integrity	121
Supporting Social Welfare	121
QUANTITATIVE PERFORMANCE TABLE	125
Corporate Governance Performance	125
Social Performance	125
Environmental Performance	130
KPIS IN ENVIRONMENTAL, SOCIAL AND GOVERNANCE
REPORTING GUIDE OF HKSE	139

ABOUT THE

REPORT

ABOUT THE REPORT

The Report is the sixth Environmental, Social and Governance (ESG) Report ("the Report") released by Legend Holdings Corporation ("Legend Holdings" or "the Company") that aims to disclose the effort and progress of the Company on ESG-related matters such as corporate governance, employees' rights and development, environmental protection, product responsibility and supply chain management in the Reporting Period of 2022 to stakeholders such as investors.

The Report is released in both Traditional Chinese and English, and is published on the websites of the Company (www.legendholdings.com.cn) and the Stock Exchange of Hong Kong Limited ("HKSE") (www.hkexnews.hk) for access and downloading by the public. Should there be any discrepancies between the two versions, the Traditional Chinese version shall prevail.

SCOPE OF THE REPORT

The Company has selected certain subsidiaries in different business segments and their property assets as the disclosure scope of the Report by considering the proportions of the contributions of its subsidiaries and their property assets to the net assets of the Company and the environmental, health, safety and quality ("EHSQ") risks, including Lenovo Group Limited (stock code: 00992), Banque Internationale à Luxembourg S.A., Levima Advanced Materials Corporation (stock code: 003022.SZ), and Raycom Info Tech Park jointly managed by Raycom Property Investment Co., Ltd. and Raycom Technology Co., Ltd. The above subsidiaries and their property assets have higher EHSQ risks than other subsidiaries and contribute about 80% of the Company's net assets. The ESG performance of Legend Holdings and the above subsidiaries and their property assets have been highlighted in the Report.

Table of Names of Subsidiaries and Their Abbreviations in the Report

Main subsidiaries

Abbreviation in the Report

Lenovo Group Limited

Lenovo

Banque Internationale à Luxembourg S.A.

BIL

Levima Advanced Materials Corporation

Levima Advanced Materials

Raycom Property Investment Co., Ltd. and Raycom Technology Co., Ltd.

Raycom

(including the Raycom Info Tech Park, a property asset managed by the

two companies)

• Legend Holdings Corporation