Chairman & CEO’s Statement

The year 2021 was a milestone year in the history of China International Marine Containers (CIMC). In the face of the complicated situations caused by the intertwining effect of global changes and the COVID-19 pandemic, CIMC firmly focused on the strategic direction of “becoming a globally respectable leading enterprise in its industries”, adhered to the strategic theme of “operating prudently and pursuing quality growth”, rose to the challenge, forged ahead with determination, and achieved progress. As a result, CIMC’s operating income exceeded RMB100 billion for the first time, net profit hit a new record-high, the Group’s comprehensive strength was further improved, and the winwin development of the economy, environment and society was promoted, creating new value for all stakeholders.

Over the past year, we have systematically improved CIMC’s ESG governance and reporting system, and have established a working mechanism for duties and responsibilities at different levels. The Board of Directors and the subordinate Strategy Committee have been debriefed about the Group’s ESG work report on a regular basis. Both the Group and its listed subsidiaries have been performing their respective duties according to the ESG work operation mechanism, effectively identifying and managing substantive issues in sustainable development, and achieving ESG improvements through the implementation of the Group’s strategic themes. We have continuously pushed forward the implementation of the Group’s 2025 green development goals, established and improved incentive and restraint mechanisms, and made continuous improvements to effectively enhance our capacity for sustainable development.

Over the past year, we have maintained operational resilience under the intertwining impact of the pandemic and global changes, and have steadily pushed forward operational work in all areas. We have fully leveraged the competitive advantages of CIMC accumulated over the years, and have actively responded to the expectations and needs of various stakeholders. We have thoroughly implemented our high-quality development strategies, continuously attached importance to R&D innovation, and successively launched green and low-carbon products in the market, so as to support national strategies and shore up industry weakness. We have steadily promoted the transformation and upgrading of industrial digitalization and intelligentization, with “lighthouse factory” construction in full swing. At all times, we regard the health and safety of products as the core of product responsibility, and regard product quality as the foundation of CIMC Group.

Over the past year, faced with the risks and challenges brought about by climate change, we have earnestly promoted the implementation of our green development plan. Through accelerating the elimination of high-energy-consumption and high-polluting equipment, we have actively researched and introduced cleaner production technologies and processes, and have vigorously developed and promoted green environment-friendly products and services. In response to the national policy requirements for the “3060” carbon emissions peak and carbon neutrality target, we have conducted special studies on energy conservation, carbon reduction, photovoltaic energy, etc., carried out carbon footprint examinations of typical products on a pilot basis, and made plans to fully promote the application of rooftop photovoltaic, energy storage and other projects across the Group. In 2021, the total energy consumption and carbon emissions of CIMC Group increased slightly along with its scale of operation, while the total emission intensity significantly decreased.

Over the past year, we have maintained close communication and cooperation with our stakeholders such as shareholders, customers, employees, government bodies and communities to achieve shared growth. We insisted on advocating the core human resource management philosophy of “People Oriented, Common Cause”, focused on the protection of employees’ rights and interests, and vigorously promoted the establishment of mechanisms including review, succession planning, post training and precise incentives for backbone staff. We comprehensively strengthened HSE management and solidly advanced the construction of green factories. With our obligations as social citizens firmly in mind, we also truly cared for the society and people’s livelihoods, strived to create a sound operating environment for enterprises, and supported the development of local economy and social welfare activities. While guarding our own frontier of pandemic prevention and control, we also have actively contributed our efforts to the anti-epidemic work for the society and communities.

Over the past year, we have actively responded to the requirements of the United Nations’ Sustainable Development Goals and China’s new development philosophy, and have made all-around exploration and efforts in sustainable development, which has promoted the harmony and unity of economic, environmental, and social performance. In 2021, the Group’s performance in ESG has been recognized by external institutions and organizations. During the year, the Group received 13 external awards in terms of social responsibility, including “2021 GoldenBee Leading Enterprise” and “Top 100 Chinese Enterprises for Sustainable Development” from the China Business Council for Sustainable Development, and was selected to be included in the “ESG practice cases of listed companies of China Association for Public Companies” and two other external casebooks, which greatly enhances the Group’s social responsibility influence and brand reputation.

Entering the “14th Five-Year Plan” period, the Party and the national government have put forward new missions and new requirements for enterprise development, with high-quality development expected to become the theme of China’s economic and social development. CIMC will continue to follow our original aspirations and shoulder our original mission bestowed by China’s reform and opening up, actively fulfill our social responsibility, keep up with the times, and strive to head towards the goal of becoming a globally respectable high-quality enterprise.

In terms of business development, in the face of increasing external risks and challenges and growing downward pressure on the economy, we must fully tap into the opportunities arising from China’s adherence to the policy of expanding domestic demands and the in-depth implementation of sustainable development strategies, firmly promote the implementation of strategic themes with focus on cold chain, clean energy, rural revitalization, and clear waters and green mountains, and build a new development pattern for the future.

In terms of sustainable development, we must resolutely implement the requirements of the new national development concept, unswervingly integrate the principles and concepts of sustainable development into the corporate development strategy, and continuously push forward green development plans. We must further clarify the responsibilities and targets of green development, steadily reduce energy consumption and emission intensity of major pollutants, form a regular communication and reporting mechanism on the progress of key issues, and continue to build a solid foundation for enterprise risk management. We must effectively assess the risks and opportunities in response to climate change and the “dual carbon” policies, take 2-3 years to effectively advance the work of energy saving and carbon reduction in the dimensions of manufacturing processes and product life cycles, and launch the CIMC “dual carbon” roadmap in due course. We must insist on innovation-driven development, extend the green and low-carbon concepts in “champion products,” and explore to build a new track of “champion products.” We must further improve the employee rights protection system, enhance the first distribution of common wealth, formulate the medium and long-term public welfare strategies, prepare to launch the corporate public welfare foundation, expand the employee volunteer team, and continuously carry out scholarships and grants and rural revitalization projects.

Our dream continues to move forward with time. In 2022, we are celebrating the 40th anniversary of CIMC Group’s operation. Let’s bring with us our 40 years of history and cultural genes, unite our efforts to forge ahead, uphold the corporate spirit of “Unremitting Striving, Pursuing Excellence”, adhere to the philosophy of high-quality and sustainable development, achieve long-term growth with stability, build an everlasting enterprise, and make more valuable contributions to the sustainable development of human society.

Chairman & CEO

Mai Boliang

March 2022