On August 26, Mega P&C officially released its inaugural Sustainability Report 2024 (hereinafter referred to as the "Report"). As the company's first systematic disclosure in the field of sustainable development, the Report was prepared in strict accordance with the GRI Standards and underwent third-party assurance by the British Standards Institution (BSI), ensuring its framework and content meet international requirements.

"In recent years, we have developed a more systematic sustainability strategy not simply for compliance, but because we firmly believe that only by coexisting harmoniously with nature and growing alongside society can a business thrive in the long run," said Ms. Wong Yin Yee, Chairwoman of Mega P&C. "From establishing comprehensive waste management systems to launching the MEGA P&C Foundation, from safeguarding employee health to setting carbon targets and optimizing resource efficiency, we have always walked this path with unwavering determination. I hope MEGA P&C will be remembered not only for its advanced industrial coatings but also as a compassionate and responsible enterprise."

The Report is structured around four core pillars: Green Environment, Corporate Culture, Innovative Products, and Partners, identifying 8 material topics and corresponding quantifiable targets ⁽¹⁾. Key highlights include:

Green Environment

?Achievements: In 2024, the company established Energy Management Committee and started the certification for ISO 50001 Energy Management System, ISO 14067 Product Carbon Footprint, and ISO 14064 Greenhouse Gas Inventory⁽²⁾, laying a solid management foundation for green development.

?Goals: By 2030, reduce absolute Scope 1 and 2 emissions by 42% and reduce water intensity by 20%  against a 2024 baseline, driving continuous improvement in environmental performance.

Corporate Culture

?Achievements: Established DEI Committee and started ISO 30415 Human Resource Management: Diversity and Inclusion certification; achieved 0 work-related fatality cases.

?Goals: Achieve 0 cases of recordable work-related injuries⁽³⁾ and 0 cases of recordable work-related discrimination; increase average employee training hours by 20% by 2030 against a 2024 baseline, further deepening care and support for employee growth.

Innovative Products

?Achievements: Developed the definition of "Sustainably Advantaged Products" based on five key areas; Achieved GB/T 35602-2017 "Green Product Assessment: Coatings" certification (9 Products).

?Goals: Increase the share of "Sustainable Advantages Products" to 30% of the total product portfolio by 2030, contributing 85% of annual revenue.

Partners

?Achievements: Invested over RMB 1.5M in CSR initiatives; developed a green supply chain system to build a sustainability-oriented supplier partnership framework.

?Goals: Achieve an average customer feedback score of 9+ points; invest >0.8% of annual net profit in CSR initiatives each year by 2030; ensure 100% of active raw material suppliers obtain environmental certifications by 2027, continuously enhancing sustainability collaboration across the value chain.

The release of the first Sustainability Report not only systematically summarizes Mega P&C's past sustainable practices but also provides clear guidance for future development. Moving forward, the company will strive toward the targets disclosed in the Report, further integrating sustainability into its operations across green environment, corporate culture, innovative products, and partners. Through concrete actions, Mega P&C will fulfill its commitment to being a caring and responsible enterprise, working with all stakeholders to build a green, inclusive, and sustainable future.

(1) Baseline year: 2024.

(2) The company obtained these three certifications in Q1 2025.

(3) According to OSHA standards, recordable occupational injuries and illnesses include cases resulting in death, days away from work, restricted work, or requiring medical treatment beyond first aid.

Mega P&C's Sustainability Report 2024