Safeguarding of Staff's Rights and Interests

Safeguarding of Staff's Rights and Interests

The Company strictly abides by the Labor Law of the People's Republic ofChina(《中华人民共和国劳动法》,Labor Contract Law ofthe People'sRepublic of China《中华人民共和国劳动合同法》,Provisions on theProhibition of Using Child Labor(《禁止使用童工规定》)Special Rules onthe Labor Protection of Female Employees(《女职工劳动保护特别规定》and other relevant laws and regulations that have significant impact on theemployee management of the Company in countries where the Companyconduct operations. The Company constantly strengthens contractualmanagement and formulates systems such as Regulations on theManagement ofTalent Introduction (《人才引进管理规定》), Guidance onLabor Contract Management(《劳动合同管理指导意见》),EmployeeSalary Management Measures(《员工薪酬管理办法》),and Guidance onSalary and Attendance Management for Employees(《员工薪酬及休假管理指导意见》).The Company resolutely resisted and opposed any form ofchild labor and forced labor practices. In the process of signing laborcontracts, the Company strictly verifies the identity information ofcandidates, clearly prohibits the employment of child labor, and sets out indetail the rights and obligations of both parties in the contractemphasizing the timely payment of employees' salaries in accordance withthe law, safequarding employees'rights to rest, and firmly safequarding theegitimate rights and interests of the employees. The Company has aSpecial Collective Contract for the Protection of Rights and Interests ofFemale Employees, which is dedicated to reducing and solving the specialdifficulties of female emplovees due to their phvsiological characteristics inlabor, thereby protecting the health of female employees. During thereporting period, no incidents of child labor and forced labor were found.

Enterprises at all levels of the Company hold the workers' congress annuallyand continue to promote the standardized construction of the four-levelworkers' congress. In 2022, the Company held the 3rd session of the thirdworkers' congress, and in accordance with the procedures, completed thereview of the administrative work report, the proposal solicitation andprocessing report, the collective contract performance report, and thedemocratic evaluation of employees, directors and supervisors, and thesigning of the collective contract. The Company achieved the “review ofproposals one by one" for the 195,215 proposals solicited through theworkers' congress, and the rate of representative's satisfaction with thereview of proposals is 100%. Application was made for 1 proposal asnational outstanding employee representative proposal. We standardizedcommunity-level democratic management, and guided 23 enterprises tocomplete the establishment and replacement of their workers' congresses.We promoted the development of democratic management systems, andtook the lead in formulating the Measures for Democratic Management ofEnterprises among central enterprises. We enhanced the daily democraticmanagement, guided 5 enterprises to complete the establishment andreplacement of their workers' congresses and guided 47 enterprises toconvene their workers' congresses to perform democratic procedures andimplement the power of the workers' congress.

Recruitment and labor contract management

The Company earnestly implemented the requirements of the three-yearaction plan for deepening reform of state-owned enterprises (2020 - 2022).continued to promote the reform of the three systems, improved the market-oriented employment mechanism, and insisted on legal employment andstandardized management, so as to build a harmonious employmentrelationship, and maintain sound human resources reserve for the highquality development of the Company.

In terms of talents recruitment, the Company has formulated Regulations onthe Management ofTalent Introduction. We adhere to strict and standardizedsystems including recruitment, employment and introduction, improve themarket-based recruitment mechanisms that are open, competitive anomerit-based, guide college graduates to participate in employment througha variety of ways and channels, while introducing high-end talents in linewith the strategic development of the Company. ln recruitment of high-endtalents who meet needs but the enterprise is unable to cultivate throughinternal training in short period of time, it is possible to recruit through agreen path of "one policy for one talent and implement the talentrecruitment policy in a more welcome and flexible manner.

in terms of labor contract management, the Company conscientiouslyimplements the Labor Law (《 劳动法》and the Labor Contract Law (《 劳动合同法》, and has formulated Guidance on strengthening labor contractmanagement《加强劳动合同管理的指导意见》We adhere to theprinciples of compliance with the law, consensus, risk prevention andinnovative development to strengthen contract management, and sign laborcontracts with all employed persons in accordance with the law to clarify therights and obligations in labor protection, labor compensation, insuranceand welfare, professional ethics, etc, as well as criteria and procedures forcontract changes, cancellation, termination and renewal, strictly perform thecontract terms, and continuously strengthen the whole processmanagement of labor contracts.

For the overseas entities and projects of the Company, we have formulatedlocalized labor management systems in accordance with the local labor lawsand social security laws to standardize local employee recruitment, contractsigning, social security payment, attendance management, leave system.salary standards, and dismissal process.

In terms of staff promotion, the Company has formulated managementregulations on the evaluation and promotion of personnel qualifications invarious series of engineering, accounting and economics, clearly definedpromotion standards and evaluation procedures, and set up a correspondingqualification evaluation organization, which has opened up channels for staffpromotion.

Remuneration and benefits

In accordance with the requirements of the modern enterprise system, theCompany continues to develop a market-based mechanism for salarydistribution. Following the general principles of “benefit-based decision,efficiency-based adjustment, and level regulation” we optimized thepayroll management, and promoted the allocation of compensationresources towards talents who make outstanding contributions and dofrontline jobs that are key, arduous, dirty and dangerous. We vigorously

promoted the payroll registration system, giving enterprises greaterindependence. We differentiated the confirmation of the payroll linkageindicators to suit our actual development. We highlighted efficiency-basedadjustments and unleashed the leading role of the input-output ratio ofhuman resources. We continuously improved the allocation system basedon various factors, actively and prudently advanced medium and longterm incentives, completed the first grant of restricted stock incentive planand equity reservation registration, and deeply bound the interests of coreemployees to the interests of the enterprise. We achieved full coverage ofpost-based dividends for technology-based enterprises, and the role ofknowledge as a factor for distribution is obvious, We strengthened andguaranteed the incentive for scientific and technological innovation andlaunched the implementation of a plan to establish the mechanism forpromoting such incentives. We highlighted the role of science andtechnology in driving the development of productivity. We ensured thepayment of employees' wages and established a long-term mechanism toprotect the bottom line of “zero arrears" and cultivate harmonious laborrelations.

The Company earnestly protects employees' legitimate social securityrights and urges member companies to promptly pay basic endowmentinsurance, basic medical insurance, work injury insurance, unemploymentinsurance and maternity insurance. We have established a lifelong seriousillness insurance system for employees, and implemented groupsupplementary medical insurance for long-term serious diseasesthroughout the Company, so as to provide full life cycle health insurancefor employees to the maximum extent.

According to the requirements of State and SASAC policies the Companyhas established a mechanism where the level of annuity payment is linkedto the quality of enterprise operation and where dynamic adjustments arepermitted. The mechanism enables the reasonable determination ofpayment level and gives play to the role of annuity protection andincentives. We have standardized the allocation of annuity contributionsamong enterprises, strengthened the operation and management ofannuity investment, and enhanced the performance evaluation of annuityfund investors and managers. We have strengthened daily management,supervised affiliated enterprises to improve annuity coverage, andenhanced investment risk prevention and control, in order to protect therights and interests of employees.

Caring for employees' physical and psychological health

The Company ensures that all employees undergo at least one physicaexamination a year while continuing to improve examination standardsand quality.The Company promotes the application of big datatechnologies in the analysis and evaluation of the physical examinationsand implements effective prevention of group and universal problems. TheCompany formulated the lmplementation Rules of the Special Fund folTargeted Poverty Relief for Workers with Serious lllnesses, and continued toexpand the scope of assistance to those in need. In 2022, we granteoRMB3.413 million to 424 families of poverty-stricken workers and 35workers with major diseases for assistance purpose. We provided employeecare and life protection during the pandemic prevention and controsending a Letter of Condolence to all employees who had assisted in thebuilding of the cabin hospitals, and producing a psychological counselingvideo. We allocated RMB1.25 million of special condolence money, andRMB5.68 million of condolence money to 59 second-tier companies. Wealso widely carried out activities to help doctors and the poor, Throughoutthe year, we spent more than RMB70 million of special funds, whicheffectively strenathened emplovees' ability to resist maior diseases anoaccidents.

The Company popularizes the implementation of the employee health careplan, strengthens the construction of the team of internal specialists,guides qualified project departments to actively build employees' mentastations, and sets up exclusive spaces and facilities such as psychologicaconsultation rooms, relaxation rooms, gyms, and physical examinationinstruments. By relying on psychological consultation, employee assistance program (EAP) and health management technologies, the Companyprovides counseling assistance to employees in terms of psychologicalhealth, career development, interpersonal relationship, marriage andfamily, stress management, and disaster response, to effectively boost thephysical and psychological health of employees. We held the second EAPgroup counseling competition, and carried out online and offlinepsychological care for more than 70,000 people in total. To give full play tothe internal and external EAP teams, we offered the 24-hour onlinepsychological counseling services and psychological counseling hotline, inorder to provide “three-level psychological protection" for employeesaround the clock.

Work-life balance guarantee

The Company strictly abides by related national labor laws and regulations,and earnestly implements the Regulation on Paid Annual Leave for Employees(《职工带薪年休假条例》and various other vacation regulations and hasvarious systems in place, such as the Labor Contract Management Regulations.Pursuant to these laws and regulations, employees are entitled to the annualleave, sick leave, marriage leave, funeral leave and other rights. With regard toproduction and operation, particularly the actual situation of front-line projectdepartments, the Company makes an overall plan for employees' rest andvacation by adopting flexible and diverse forms and measures, such as havingholidays by turns, having holidays for working an extra shift, leaving home tovisit the workers, granting subsidies, and extending vacation time on majorfestivals. The Company also implements the system of notifying the number ofvacation days and performing the annual settlement. The Company formulatesand implements the Guidelines for Remuneration and Vacation Managementof Overseas Employees to protect their vacation rights. The Companyimplements the relevant requirements of the Ministry of Human Resourcesand Social Security on the implementation of the special working hour system,and formulates Management Measures for Working Hours and Vacation tostrengthen the management of working hours according to laws andregulations, with practicing 8-hour standard working hour system mostly, andapplies for implementing a special working hour system for posts satisfyingthe prescribed conditions, to earnestly safeguard the rights and interests ofemployees.

The Company strengthens the "three-site" construction of"site culture, sitelife, and site hygiene" carries out the activity of creating "a happy familythrough 10 key projects", and puts the funds for creating “a happy family'into use. The Company works to improve the working environment andliving standards of front-line employees from various aspects includingbeautifying the working environment, building a platform for makingachievements, enriching the cultural life of the construction site, caring forthe physical and psychological health of employees, safeguarding thelegitimate rights and interests of employees, and building a spiritual homefor employees. In addition to employee interest associations such asliterature, calligraphy, photography, cartoons, bridge, table tennis and newmedia, the Company set up new interest associations such as music.recitation, dance and seal cutting associations.