Zhengzhou Coal Mining Machinery : 2020 Social Responsibility and Environmental, Social and Governance Report

About this Report

This report is prepared with reference to the provisions set out in the "Guidelines on Environmental Information Disclosure by Listed Companies" issued by the Shanghai Stock Exchange in May 2008 and the "Environmental, Social and Governance Reporting Guide" issued by The Stock Exchange of Hong Kong Limited in December 2015. For ease of presentation and reading, Zhengzhou Coal Mining Machinery Group Company Limited and its subsidiaries are referred to as the "Company" or "We" in this report. The Company presents its social responsibility performance for the year 2020, namely, from 1 January 2020 to 31 December 2020.

This report focuses on the activities carried out by Zhengzhou Coal Mining Machinery Group Company Limited. In consideration of a range of parameters such as sales values, business types, profits and asset values, the following entities are included in the reporting scope:

• Coal Mining Machinery Segment

Zhengzhou Coal Mining Machinery Group Company Limited, Zhengzhou Coal Mining Machinery Hydraulic Electrical Control Co., Ltd., Zhengzhou Coal Mining Machinery Comprehensive Equipment Co., Ltd., Zhengzhou Coal Mining Machinery Group Material Trading Co., Ltd. For ease of presentation and reading, these four companies are collectively referred to as the "coal mining machinery segment" in this report.

• Auto Parts Segment

ASIMCO Technology, Inc., ASIMCO Shuanghuan Piston Ring (Yizheng) Co., Ltd., ASIMCO Camshaft (Yizheng) Co., Ltd., ASIMCO International Casting Co., Ltd. (Shanxi), Hubei Super Electric Auto Motor Co., Ltd. and ASIMCO NVH Technologies Co., Ltd. (Anhui). For ease of presentation and reading, these six companies are collectively referred to as "ASIMCO" in this report.

For ease of presentation and reading, SEG Automotive Germany GmbH is referred to as "SEG" in this report.

• Investment Segment

Zhengzhou Zhima Street Industrial Co., Ltd., a wholly-owned subsidiary of Zhengzhou Coal Mining Machinery Group Co., Ltd., is one of the three segments under the strategic planning of the ZMJ Group. Zhima Street 1958 Dual Innovation Park (芝麻街1958雙創 園) officially opened in September 2020 and has been included in the scope of this report from 2020. For ease of presentation and reading, Zhengzhou Zhima Street Industrial Co., Ltd. is referred to as "Zhima Street" in this report.

This report is available for downloading at the website of the HKEx (www.hkexnews.hk), and the website of the Company (www.zmj.com).

Contents

Message from the Company	01
Corporate Introduction	02

Management Approach

Social Responsibility Governance 05

Stakeholders' Engagement	05
Key Social Responsibility Issues	06

Themes

Mixed Ownership Reform of SOE 09

Insisting on Independent Innovation	10
Pushing forward Factory
Renovation to Enhance
Social Benefits	12

Market Responsibility

Focusing on Product Quality	17
Provision of Satisfactory Services 18
Supplier Management	19
Anti-corruption	20

2020

Social Responsibility and Environmental, Social and Governance Report

Responsibility towards Staff

Labour Rights and Interests	23
Caring for Employees	23
Career Development	25
Safety and Health	26

Environmental Responsibility

Energy Management	31
Emissions Management	32
Water Resources
Management	34

Community Responsibility

Combating the Epidemic	37
Livelihood Support	38
Voluntary Activities	38

Overview of Social
Responsibility Data	39
Appendix I	41

Content Index Based on the ESG Reporting Guide