Fullshare : 2022 Enviromental, Social and Governance Report

Fullshare Holdings Limited

(Incorporated in the Cayman Islands with limited liability) Stock Code: 00607

ENVIRONMENTAL,

SOCIAL AND

GOVERNANCE REPORT

2022

Contents

2 Message from the Management

7 Fullshare's Sustainability at a Glance

8 About This Report

10 About Fullshare

12 Fullshare's Approach to Sustainability Management

21 Devoted Building • Green Life

33 Devoted Cultivation • People-Oriented

42 Devoted Service • Serving with Sincerity

55 Devoted Care • Contributions to Community

59 Key Laws and Regulations

60 ESG Reporting Guide Content Index

Environmental, Social and Governance Report 2022  Fullshare Holdings Limited

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Message from the Management

FULLSHARE STRIVES FOR AN IMPACTFUL AND HEALTHY LIFE

2022 was a challenging but meaningful year. Affected by the resurgence of the COVID-19 pandemic, operations of all industries became increasingly difficult amidst downward pressure in a complex international environment marred by uncertainties including global economic turmoil, supply chain disruptions and sluggish consumer market. Fullshare Holdings Limited ("Fullshare Holdings" or the "Company", together with its subsidiaries, collectively the "Group", "we" or "us"), with great resilience and perseverance, overcame these challenges by adhering to our planned strategies and development initiatives through enhanced business operations and resources consolidation under difficult and challenging conditions, seizing new opportunities when market improves. Against the backdrop of a complicated economic and international situation, we abided by our mission of developing green, healthy and sustainable business operations with low carbon emission, and continued to deliver on our commitment to sustainability. By enhancing professional skills of our employees, adjusting business layout and consolidating resources, we made continuous efforts on strengthening our competitive edges to create more opportunities for our employees, business partners and the society, while moving forward with our partners to face the ups and downs ahead. Meanwhile, we formulated a standardized and transparent corporate governance system and strive to continuously improve our corporate management and operation levels.

Having developed from "green building technology" to a "provider of green technology and integrated health solutions" to a "global leader in healthy lifestyle", we have persistently adhered to our mission of "green and healthy sustainable development" towards the direction of "creating integrated synergies through high-end manufacturing and Grand Healthy-based service". To this end, we are committed to building "healthy environment" and "healthy lifestyle" by means of investments, co-operations, incubations and business operations focusing on "production, ecology and lifestyle" to tap into "Grand Healthy-based lifestyle" business. Leveraging our integrated advantages in green low-carbon, Chinese medicine healthcare, as well as project development and operations accumulated over the years, we continue to expand our business operations and industry value in the post-pandemic era, with an aim to create a comprehensive platform of services, experiences, industry and career for the society, consumers, business partners and employees.

The Group always upholds the core value of "healthy employee, healthy enterprise, healthy career and healthy society". We strive to promote sustainable development in our business development, corporate culture, cooperate governance and social responsibilities. During the process, we have demonstrated strong business resilience and sustainability, powerful cohesion and solidity among employees with a steady and continuous improvement in corporate governance to gain widespread recognition and high reputation in the society.

FULLSHARE'S APPROACH TO SUSTAINABILITY MANAGEMENT

Driven by our vision for sustainable development, we continued to abide by and responding to the United Nations Sustainable Development Goals ("UNSDGs") by investing into technology enhancement on energy, green and ecology, and making continuous efforts on social responsibilities, corporate governance and employee development, to promote our participation in sustainable development.

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Message from the Management

We always advocate and adhere to our core values of sustainability development: healthy career, healthy enterprise and healthy society. "Healthy career" gives clear answers to the questions of what approach Fullshare has been and will be taken. Being an enterprise focusing on green energy and healthcare services, we stick to our commitment to sustainable development and expand further into other business segments leveraging on our competitive edges. "Healthy enterprise" demonstrates the visions of Fullshare. We work closely to foster a corporate culture that embraces a high standard of openness, transparency and good corporate governance practice with unique characteristics including ecological cooperative platforms to build internally and externally, as well as the establishment of corporate structure in order to attain better business management and healthy development of the Company. "Healthy society" lays the foundation where Fullshare believes instrumental to help building a better society based on its core values and visions.

By fully implementing its core values spanning across sustainability, Fullshare Holdings is committed to develop its own ecological system, makes continuous efforts to promote and contribute to the global call to end poverty, protect our planet and improve our lives and future by 2030 through active participation towards sustainable development. During the Reporting Period, our approach to sustainability management was aligned with the ten UNSDGs. We have actively implemented relevant measures to contribute to building a sustainable future and environment.

We value all suggestions and opinions on our business operations and development. We also endeavor to actively engaging with the society, employees and stakeholders through various communication methods and channels, hoping to hear more suggestions on FullShare's development to make further progress, and to deliver our mission and values to everyone. During the year, under the leadership of the Board of Directors of the Group (the "Board"), with help of the feedback given by stakeholders, we optimized our policies and strategies of sustainability management and incorporated more new measures into the ordinary business operations of various business segments, establishing sound corporate governance to support the Group's long-term development and performance improvement. Based on the business characteristics, we are actively improving the environmental, social and governance ("ESG") strategies, corporate structure and action plans of the Company, as we believe ESG is the core competency of a company which gears the continuous formulation and implementation of business planning, operation strategies, management models and brand culture building for a company.

1. Building Sustainable Resilience

Under the background of Grand Healthy concept, the Chinese government urges to construct for Health China by "advocating a healthy and civilized way of living, fostering Grand-hygiene and Grand Healthy concept, with a view to accelerating the promotion of a shift from focusing on curing diseases onto focusing on the people's health", which represents a much broader and in-deep implementation comparing to mere health concept, with more industries involved and being built around the holistic concept of various aspects including psychology, mind and body, society and environment. Health is key to sustainability, as we believe, plays an indispensable role to all levels, ranging from consumers, enterprise, society, the whole world or even the entire planet. With this in mind, Fullshare strives to stay focus on expanding health strategy which is of utmost importance amongst everything around us.

Adhering to the goal of "common prosperity", Fullshare Holdings believes this means much more than mere wealth. Having a health body and mind is the greatest wealth on earth. We are committed to promote healthy lifestyle and prevent illness, which is another kind of "common prosperity" we are striving for.

Environmental, Social and Governance Report 2022  Fullshare Holdings Limited

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Message from the Management

At Fullshare, we make continuous efforts to promote Grand Healthy investment and strategy through our initial plans of providing various health related production and services such as clinical services, health care and nutrient products, health and leisure, healthcare management etc, ensuring our corporate development towards the core values of "healthy career, healthy enterprise and healthy society". From the perspectives of business sustainability, we also believe the road to a Grand Healthy future is promising, valuable and meaningful, yet full of challenges and long-term commitment.

The outbreak of COVID-19 pandemic has unavoidably posed new challenges to many industries. On the other hand, it also creates many stimulates a rapid development of Grand Healthy industry. China's health expenditure has initially reached RMB10,000 billion in 2021, which is expected to reach RMB15,000 billion in 2023. In respect of securities market, health care investments and financing are continuously increasing, including remote medical services, mental health, in vitro diagnostics and family health care. In terms of private equities, health technology, artificial intelligence, e-commerce and semi-conductors are top three industries with highest number of unicorn companies in China, as compared to software services, fintech and health technology being the top three industries with highest number of unicorn companies in the United States. Health technology ranks top in both countries. We believe, our commitment to develop Grand Healthy future has laid a sound and solid ground for further business expansion.

2. Promoting Green Development Continuously

We endeavored to improving our green ecology and environmental performance in order to enhance the sustainability of our operations and our climate resilience, and to achieve emission reduction targets. In order to cope with the increasing demand on wind power clean energy in China and around the world, we continued to expand the capacity of the wind power business of our subsidiaries, to provide users with reliable, efficient and stable core equipment and services with an aim to support global energy consumption shifting from coal petrochemical to green and clean energy. With a strong emphasis on the application of renewable energy, energy saving environmental materials, high-efficiency equipment and green sustainable technology, we were able to support companies to lower energy consumption, reduce carbon emissions and to increase enterprises' low-carbon operations via integrated building design, space construction as well as service operations. In line with the mainland government's vision to achieve carbon neutrality by 2060, we gradually increased the number of electric vehicle charging stations during the year, including those in the property segment and the tourism segment. This was to encourage more people to use electric vehicles, so as to reduce carbon footprints and mitigate climate change. We launched a number of environmental efficiency upgrade programs, such as the replacement of original lighting installations and the full installation of light-emitting diode ("LED") lighting systems, greening projects, etc., in order to enhance the efficiency of resource use.

In addition, we incorporated green and sustainable concepts into our business operations to encourage different stakeholders to adopt a more environmentally friendly lifestyle. For example, vegetarian restaurants and the "Green Tourism Experience Program" were introduced in the tourism segment to raise the awareness of our guests as well as the public on low-carbon diets and ecological protection, fulfilling our responsibility for environmental protection. We also worked with suppliers and business partners to promote environmental and social responsibility, and improved the suppliers' ESG Proposal and green procurement guidelines during the Reporting Period, encouraging the suppliers to establish a sustainable supply chain with us.

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