Tsingtao Brewery : 2023 Environmental, Social and Governance Report

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Tsingtao Brewery Co., Ltd.

About This Report

Reporting Scope		Content Selection

This is the sixteenth annual report on sustainable development of Tsingtao Brewery Co., Ltd. ("Tsingtao Brewery"), covering the period from January 1, 2023 to December 31, 2023, gathering data and information on the sustainable development practices of Tsingtao Brewery's 57 wholly-owned and controlled brewery enterprises, and 2 associated and joint venture brewery enterprises in China. Based on the continuity and comparability of the Report, some data and information are not limited to 2023.

In the process of selecting the contents of the Report, Tsingtao Brewery followed the principles of importance, quantification, consistency, balance, accuracy, effectiveness and comparability, and presented the Report from the aspects of environment, society and corporate governance. The focus was on the sustainable development responsibility of Tsingtao Brewery in terms of products, environment, employees, communities and business partners.

Principles of Preparation

This Report has been prepared in accordance with the requirements of No. 1 Self-Regulatory Guidelines for Listed Companies of the Shanghai Stock Exchange-Standardized Operation, Appendix C2 Environmental, Social and Governance Reporting Guide of the Main Board Listing Rules of the Hong Kong Exchanges and Clearing Limited, and with reference to relevant requirements such as the GRI Standards and the Reference Indicator System for ESG Special Reports of Central Enterprise Controlled Listed Companies issued by the State-owned Assets Supervision and Administration Commission of the State Council.

Appellation		Publishing Method

Tsingtao Brewery Co., Ltd. is referred to as "Tsingtao Brewery" or "the Company" or "We" in the report, and the copyright of this Report is owned by Tsingtao Brewery Co., Ltd.

The Report is published online and in print. The online version is available on the Company's website (URL:www.tsingtao. com. cn).

Contents

A Speech from the Chairman	02
A Speech from the President	03
Sustainable Development Indicators	04
About Us	06

Focusing on 01

Brewing Good

Beer for 120 Years

Food Safety and Quality Control	14
Whole Process Management	16
Creating Happiness in Life	20

Giving the Stage

to the Endeavors 03 and Applauding

the Achievers

Occupational Health and Work Safety	54
Protection of Rights and Interests	56
Employee Growth	60
Employee Care	64

(Selected) Honors of Tsingtao Brewery 2023	77
Third-party Evaluation	78

Compliance and Sound Operation	08
Environmental, Social and	09
Governance Management

For a Better	02
World
Climate Action	29
Sustainable Water Use	40
Packaging and Waste	44
High-end, Intelligent and Green	48
Development
Creating Social	04
Value Together
Our Value Chain	68
Care for the Community	72
Index of ESG Indicators	79
Your Feedback	82

02 Tsingtao Brewery Co., Ltd.

2023 Environmental, Social and Governance Report

A Speech from the Chairman

Focus on Innovation and

Highlight Quality

The year 2023 marked the 120th anniversary of Tsingtao Brewery. Throughout its long and turbulent development history, Tsingtao Brewery has been "focusing on brewing good beer". Such good beer contains Tsingtao Brewery's dedication to brewing good beer, its mission to create happiness for consumers, its unlimited reverence for the natural environment, its solemn commitment to rewarding investors with its performance, its win-win situation and common prosperity with its partners in the value chain, as well as its unlimited gratitude for the care of the community...This is the strength that has inspired Tsingtao Brewery to march forward in the past 120 years. In the future, it will remain the core of Tsingtao Brewery's high-quality sustainable development

Quality Improvement with Innovation

The new quality productivity represents the direction of higher quality, higher efficiency and more sustainable development. The development of new quality productivity is not to neglect or abandon traditional industries, but to realize transformation and upgrading by replacing old drivers with new ones on the basis of traditional industries. As a century-old traditional manufacturing enterprise, Tsingtao Brewery has found the answer to the question of "Integrity and Innovation"- a way out of the cycle of development by building the business with perseverance and building the brand with quality. Based on the corporate mission of "creating happiness for life", Tsingtao Brewery adheres to the high-quality development strategy, and accelerates the construction of a world-class enterprise as a climber seeking innovation and practicality. We will also build an overall and systematic innovation engine led by scientific and technological innovation, cultivate and expand new consumption, cultivate new consumption growth points such as domestic brands with Chinese design elements, open up new market space with new products and new scenarios, and expand the track for the upgrading of traditional industries. By integrating social responsibility into enterprise development strategy, continuously improving the ability and level of enterprise operation efficiency and sustainable development, Tsingtao Brewery has repeatedly reached a record high in business performance.

Quality Improvement with Intelligence

To cultivate new quality productivity, we must further promote the development of intelligent manufacturing and digital innovation, and promote digital technology to empower traditional industries. Tsingtao Brewery has been improving its quality with intelligence, accelerating intelligent manufacturing, digital management, agile customer service and ecological industrial synergy, and continuously enhancing its value creation capability. For instance, driven by user demand, the world's first industrial Internet "lighthouse factory" in the beer and beverage industry has shifted from large-scale production to personalized customization; the co-construction and sharing value of the marketing digital platform has become more prominent, and digital connection with more than

one million sales points has been realized, which has effectively driven the digital transformation of small and medium-sized enterprises. We will continuously advance the digital transformation capacity enhancement project, focusing on digital integration of innovative practices, cultivating digital talents, comprehensively enhancing digital management capabilities, and promoting quality change, efficiency change and power change.

Quality Improvement with Responsibility

New quality productivity is green productivity in itself. Tsingtao Brewery empowers green transformation through innovation, and accelerates the innovation of green technology and the promotion and application of advanced green technology. The Company further actively explores new models and new paths for the green development and circular development of traditional manufacturing enterprises and the sustainable development of the whole value chain, and explores and provides "Tsingtao Brewery Plan" to build an efficient ecological green industrial cluster. Tsingtao Brewery has been selected as the 2023 Leader of China Industrial Carbon Peaking, and the only case of Business Climate Action Cases at the United Nations Climate Change Conference 2023.

We have taken concrete actions to fulfill our social responsibilities, supporting the construction of public welfare projects regarding rural revitalization, ecological protection in the Yellow River basin, disaster relief, poverty alleviation, and educational assistance in Shigatse of Tibet, Anshun of Guizhou Province, Longnan of Gansu Province, Heze and Pingdu of Shandong Province. Together with the China Green Foundation, we have implemented the Yellow River ecological protection afforestation project named "Tsingtao Brewery Yellow River Greening", contributing to the ecological protection and high-quality development of the Yellow River basin.

The year 2024 marks the 75th anniversary of the founding of the People's Republic of China. It's a key year for realizing the goals and tasks of the "14th Five-Year Plan", and the opening year of Tsingtao Brewery's strategy of "Setting Sail again After One Hundred and Twenty Years". In keeping with the times, we will speed up the development of new quality productivity, continue to give play to the main role of enterprise innovation, focus on optimizing supply and industrial upgrading, promote high-end, intelligent and green transformation of the enterprise. We will also accelerate high-quality development, strive to achieve win-win economic, social and environmental benefits, and work together for a better, greener and more harmonious tomorrow, and scale new heights!

Chairman Huang Kexing

Tsingtao Brewery Co., Ltd.

A Speech from the Chairman / A Speech from the President	03

A Speech from the President Innovation Strengthens the Drivers for Sustainable Development

Over the past 120 years, Tsingtao Brewery's corporate culture of inheritance and innovation has guided its business practices for more than a century, and served as the cornerstone of its sustainable development. In 2023, Tsingtao Brewery, guided by its core value of "Integrity and Innovation, Faithfulness and Prosperity", had its direction and momentum. The management team aims at high-quality development by adhering to the industry, advocating practical work, focusing on actual performance, and continuing to lead the transformation and upgrading of the whole chain of traditional industries with the all-round innovation of the enterprise, so as to inject new power for the sustainable development of the enterprise.

Technology Empowering for Innovation

Development of new quality productivity can promote the upgrading and transformation of traditional industries and boost high-quality development. Tsingtao Brewery focuses on the systematic and overall innovation led by scientific and technological innovation to cultivate new quality productivity, starts the construction of Tsingtao Brewery Innovation Research Institute, comprehensively improves the level of innovation management, and makes innovation the first driving force for corporate development. The implementation of the charm quality improvement project makes the basic quality more solid, the characteristic quality more prominent, the Charm-perceived quality more deeply rooted in the people's mind, laying a solid foundation of the century-old quality. Efforts have been made to promote key core technology research, develop new and quality products, and continuously optimize the product structure with 9 series of products. Winning awards at the international arena and making its appearance in the international summits, Tsingtao Brewery has continuously enhanced its product reputation and brand image. In 2023, corporate performance grew steadily, with key operating indicators reaching new record highs, and operating performance scaling new heights on the basis of the record highs over the past five years. Greater shareable value was created for consumers, employees, investors, value chain partners, and the social community by means of sustainable development.

Digital Reality Fusion for Intelligence

The new quality productivity opens up a new track of development, enhances the new momentum of development, and shapes a new advantage in development. We have taken "digital reality fusion" as a key to effectively promote high-end, intelligent and green transformation and enhance the competitiveness of the industrial system. A number of key investment projects with strong traction and long-term benefits, such as Tsingtao Brewery's Millions of Liters of Craft Beer Production Base and the expansion of 250,000T High-end Malt Raw Materials Base in Tsingtao Brewery Smart Industrial Park have been rolled out; the "Lighting Lighthouse Project" has been Implemented to continuously build new smart factories in Qingdao, Weifang, Zibo, Linyi and other places to promote the improvement of traditional industries with intelligence. The digital transformation of

the supply chain has been accelerated, and the "Mazhilian" Project of one bottle, one code covers all products, effectively building a bridge of direct communication with consumers. The Qingyingxiao digital platform has been built, introducing the innovative instant distribution business model, distributing fresh fine original beer and crystal pure beer products across the country. We have also further promoted the integration of modern service industry and advanced manufacturing industry, introduced new fashion forms of consumption such as the "TSINGTAO1903 Bar" that spread throughout the country, constantly expanded new growth space, and boosted the sustainable development of the Company.

A Low-Carbon and Green Future

New quality productivity is characterized by high technology, high efficiency and high quality, and green empowerment is an important part of it. Focusing on the Double Carbon goal, Tsingtao Brewery has strengthened innovation drive, adopted advanced intelligent, green and low-carbon technologies, and incorporated "green" development into the whole chain. Through green research and development, green procurement, green production and green logistics, Tsingtao Brewery has promoted the comprehensive green transformation of the Company and value chain, and accelerated the formation of an industrial structure with high scientific and technological content, low resource consumption, and less environmental pollution. The Company has realized the optimization and upgrading of the industrial chain in respect of clean production process, recycling of resources, low-carbon energy consumption, green product supply, and medium-high-end industrial structure; 20 factories have been selected as National Green Factory by the Ministry of Industry and Information Technology, ranking first in the industry. These efforts have effectively driven the upstream and downstream players to jointly promote carbon reduction, pollution reduction, green expansion and growth, and accelerate the construction of a full-chain green manufacturing system.

Standing on the new starting point of the 120th anniversary of Tsingtao Brewery, we are aware that Tsingtao Brewery sticking to integrity and innovation pursues "everlasting prosperity". We value immediate gains, and more importantly, long-term development. In 2024, Tsingtao Brewery will continue to adhere to innovation-driven and high-quality development, focus on the transformation and upgrading of traditional industries, accelerate the formation of new quality productivity, and enhance new growth momentum. We will also press ahead to create more high-quality development results, bring more multidimensional value experience to consumers, and realize sustainable contributions to social value.

President Jiang Zongxiang

Tsingtao Brewery Co., Ltd.

04 Tsingtao Brewery Co., Ltd.

2023 Environmental, Social and Governance Report

Sustainable Development Indicators

Economic Responsibility

The Company has always valued returns to investors, and has cumulatively distributed cash dividends over the past 27 years (from listing in 1993 to 2022) up to RMB12.848billion

Sales volume in 2023	Operation revenue in 2023
8.007million kiloliters	RMB	33.937	billion

Environmental Responsibility

National Green Factory	Renewable electricity
New National Green Factories in 2023	Number of factories using renewable electricity in 2023
6	50
Cumulative Number of National Green Factories	Ratio of electricity use from renewable sources in 2023
20	72.4%
Number of National Green Factories in	Number of factories using 100% renewable electricity in 2023
the Beer Industry	31
Ranking First

Social Responsibility

Donations and public welfare investments in 2023

RMB 5.12million

Investments in consolidating poverty alleviation achievements and rural revitalization in 2023

RMB 689,000

Cumulative donations to the cause of the physically challenged RMB 2.36million

Honored with "Weichen

Public Welfare Partner

Unit"by Qingdao Red Cross Weichen Foundation in 2023

Tsingtao Brewery Scholarship Cumulative number of students helped

1,968

Cumulative amount of donations RMB 5.9million

04

Sustainable Development Indicators	05

Net profit attributable to shareholders of parent company in 2023

RMB 4.268billion

Earnings per share in 2023

RMB 3.139

Value of social contribution per share in 2023

RMB 11.447

Greenhouse gas emissions

Decrease of greenhouse gas emission intensity (Scope 1 +2) in 2023 from 2022

35.7%

Decrease of greenhouse gas emission intensity (Scope 1 +2 + 3) in 2023 from 2022

5.1%

Decrease of water consumption per unit product of beer production in 2023 from 2022

8%

Decrease of comprehensive energy consumption per unit product of beer productionc in 2023 from 2022

6.44%

Employee Care Foundation Donations by the Employee Care Foundation in 2023

RMB 580,500

Number of employees suffering from major diseases supported in 2023

17

Expenditure for support to employees suffering from major diseases in 2023

RMB 651,000

Employee Training Employee training coverage rate in 2023

100%

Employee training per capita in 2023

51.1class hours

Digital Courses Person-timescompleting digital courses in 2023 91,657person-times Person-timescompleting digital courses in 2023

98,422class hours

05

06 Tsingtao Brewery Co., Ltd.

2023 Environmental, Social and Governance Report

About Us

Company Profile

Tsingtao Brewery, founded in 1903, is a long-established beer manufacturer in China. Listed in both Shanghai and Hong Kong in 1993, it was the first Chinese mainland enterprise listed in Hong Kong. Tsingtao Brewery has 57 wholly-owned and controlled brewery enterprises, and 2 associated and joint venture brewery enterprises in China. It has established a global marketing network, and its products are exported to 120 countries. It is one of the most famous Chinese brands in the international market, and the brand value reached RMB 240.689 billion in 2023, ranking among the world's top 500 brands.

In 2021, the Party Committee of Tsingtao Brewery was awarded the honorary title of National Advanced Grassroots Party Organization on the 100th anniversary of the founding of the Chinese Communist Party. The m anagement model of "Charm-perceived Quality Based on Digital End-to-End Decoding" created by the Company was Nominated for the 4th China Quality Award and won the First Prize of the National Enterprise Management Modernization Innovation Achievement. Tsingtao Brewery was honored as the world's first "Lighthouse Factory" of industrial Internet in the beer and beverage industry. Relying on the only State Key Laboratory of Beer Bio- fermentation Engineering in the brewing industry, Tsingtao Brewery has won the Second Prize of the only three National Science

and Technology Progress Awards in the beer industry, Advanced Collective of Scientific and Technological Innovation in the Light Industry in the 13th Five-Year Plan Period, and the National Technological Innovation Demonstration Enterprise in 2021. The products have been repeatedly honored with the European Beer Star Award and the Gold Medal of the World Beer Championships. In 2022, the Company was rated a Model Enterprise of Corporate Governance for State-owned Enterprises by the State-owned Assets Supervision and Administration Commission of the State Council and included as an excellent case into the Blue Book of Social Responsibility of State-owned Enterprises (2022). The Company has been listed as one of the Most Admired Chinese Companies for 16 times, and honored as Respected Chinese Enterprise for 18 times.

With the vision of "growing into a globally influential and world- class enterprise", Tsingtao Brewery sticks to integrity and innovation, faithfulness and prosperity, progress with determination, and pursuit of excellence, creating a new future of high-quality development for this 120-year-old brand.

Corporate Governance

Since its listing, the Company has been actively exploring and implementing a corporate governance structure that is in line with international standards, committed to the standardized operation of the governance structure and the timely and accurate disclosure of information on its operating conditions and significant matters. As of December 31, 2023, the 10th Board of Directors of Tsingtao Brewery Co., Ltd. had been composed of a total of 9 directors, including 4 executive directors and 5 independent directors (including 1 female director); The 10th Board of Supervisors had consisted of 5 supervisors, including 2 external supervisors and 3 employee supervisors. The Company is one of the first listed companies in China to establish a structure of Board of Directors and Board of Supervisors composed of a majority of external directors and external supervisors. The current independent directors of the Company come from different professional backgrounds and have extensive professional experience in law, finance and accounting, as well as financial investment and marketing.

In January 2024, the Articles of Association and the Rules of Procedure of the Three Committees of the Company were comprehensively revised in accordance with the latest securities regulations and listing rules. In accordance with the new regulations on independent directors and the revisions of the Articles of Association, the Independent Director System of Tsingtao Brewery Co. Ltd., the Working Rules of the Audit and Internal Control Committee of the Board of Directors of Tsingtao Brewery Co., Ltd., the

Working Rules of the Nomination and Remuneration Committee of the Board of Directors of Tsingtao Brewery Co., Ltd. and the Working Rules of the Strategy and Investment Committee of the Board of Directors of Tsingtao Brewery Co., Ltd. were also revised to further clarify the main responsibilities of the specialized committees of the Board of Directors.

The Company attaches great importance to and actively plans and promotes investor relations management, and in the context of dual listing at home and abroad, the Company has steadily and solidly facilitated communication between domestic and overseas investors by combining international practices and regulatory requirements for dual-listing. The Company has constructed and maintained a smooth channel of communication between the management and the majority of shareholders and potential investors at home and abroad, and has established and consolidated its image in the capital market as a trustworthy, open and transparent company.

In 2023, the Company continued to hold earnings presentations, and the key executives participated in the Company's major investor communication events to communicate with investors and digitally enhance investor relations management. Meanwhile, we continue to strengthen our communication with domestic and foreign investors through daily conference calls and actively participate in the collective activities of investor education and protection for listed companies under the jurisdiction.

About Us	07

General Meeting of Shareholders

Board of Supervisors

Board of

Directors

Internal Control and

Board Secretary's Office

Audit Department

Executive

Team

Corporate Headquarters

Manufacturing Center

Marketing Center

Supply Chain Center

Board of Directors

Board of Supervisors

Honors in the Capital Markets

In 2023, the Company received a number of awards for its excellence in governance practices, information disclosure and investor relations management:

Rated "A" in the evaluation of information disclosure work of the Shanghai Stock Exchange for the Year 2022- 2023; awarded the rating of "A" Grade in information disclosure evaluation of the Shanghai Stock Exchange for 10 consecutive years;

Included as 2023 Best Practice Case in Corporate Governance by the China Association for Public Companies; Awarded 2023 Excellent Practice Case of Best Practice Activities of Board of Directors of Listed Companies by the China Association for Public Companies, and Best Practice Case of Board of Directors of Listed Companies by the China Association for Public Companies for three consecutive years;

Awarded 2022 Best Practice Case of Annual Performance Presentation of Listed Companies by the China Association for Public Companies;

Honored with the Green and Low-carbon Outstanding Contribution Award of China's Listed Companies and the Top 100 Value Listed Companies on the Main Board at the 17th Value Appraisal of China's Listed Companies held by Securities Times;

Honored with the A-share Best Practice Award (Governance) and Hong Kong Stock Best Practice Award (Governance) at the 2022 WindESG Best Practice Listed Companies.

……

08 Tsingtao Brewery Co., Ltd.

2023 Environmental, Social and Governance Report

Compliance and Sound Operation

Risk Control and Management

A sound risk prevention and control system is the basic guarantee for the long-term stable operation of the enterprise. Tsingtao Brewery has put in place a compliance risk identification and early warning mechanism to comprehensively and systematically sort out compliance risks in its operation and management activities, systematically analyze the possibility of occurrence, degree of influence and potential consequences of the risks, and issue timely early warnings for risks that are typical, common and likely to result in more serious consequences.

The Company integrates risk management into its core management and business, and has established a "three-in-

one" risk management system, i.e., "a unified risk management culture and language, a unified risk management system and process, and a unified risk management team", to promote the continuous improvement of its risk management level at all levels.

Thus far, the Company has issued the Risk Management System and the Risk Assessment Management Process. The Risk Management System stipulates the risk categorization, risk level, scope of risk management, risk review, approval and reporting of the Company. The Risk Assessment Management Process defines the process of risk assessment, including risk identification, risk analysis, risk evaluation and risk response.

Business Ethics and Compliance

The Company strictly implements the Constitution of the People's Republic of China, the Implementation Regulations of the Supervision Law of the People's Republic of China and the Criminal Law of the People's Republic of China , strictly observes business ethics, attaches great importance to compliance management, strictly abides by the Anti-MoneyLaundering Law of the People's Republic of China, the Anti- Monopoly Law of the People's Republic of China, the Law of the People's Republic of China against Unfair Competition and other relevant laws and regulations, and improves the responsibility system of clean government work, realizes the joint implementation of anti-corruption and business work, and ensures the integrity and efficiency of its operations.

In 2023, the Company further upgraded its compliance management system by issuing the Compliance Manual of Tsingtao Brewery Co., Ltd. (Trial Implementation). As the foundation and basis for other compliance systems, the Manual provides principled compliance guidelines and specific compliance requirements centering on "Company and employees", "corporate governance and operation", "Company

and society", and "reporting and accountability". It is aimed to convey and implement the value concept of integrity and compliance, and help the Company carry out various operation and management activities according to law.

The Company educates employees to uphold integrity, honesty and self-discipline, abide by laws, and correctly perform their duties; the management system has been constantly improved to regulate employee behaviors, and control compliance risks; by carrying out supervision and inspection, compliance review, special audit, responsibility investigation and other work, we prevent and resolve compliance risks and ensure the compliance operation of the Company. The Company has set up a platform for reporting violations, accepting reports of violations (including violators and violation events) or potential violations, so as to guarantee that employees have the right and means to report violations. During the year, there were no cases of non- compliance with the law arising from the significant impacts of bribery, extortion, fraud and money-laundering.

Intellectual Property Protection

Tsingtao Brewery abides by the Trademark Law of the People's Republic of China, Patent Law of the People's Republic of China, Copyright Law of the People's Republic of China and other laws and regulations related to intellectual property rights, and has formulated internal systems such as the Intellectual Property Rights Management System.

These efforts are to regulate the rights to intellectual property rights such as trademarks, patents, and copyrights and the maintenance and use of these rights, and to prevent infringement upon the intellectual property rights of others, so as to provide protection for the high-quality and innovative development of the Company.