Anti-corruption

Anti-corruption

 The Company strictly abides by the laws and regulations of countries andregions where Chinese and overseas businesses are located such as theCriminal Law of the People's Republic of China(《中华人民共和国刑法》Anti-Unfair Competition Law of the People's Republic of China (《 中华人民共和国反不正当竞争法》Anti-Money Laundering Law ofthe PeoplesRepublic of China(《中华人民共和国反洗钱法》Several Provisions of theCPC Central Committee for Discipline Inspection on Strictly ForbiddingSeeking of illegal Benefits by Taking Advantage of Duty(《中央纪委关于严格禁止利用职务上的便利谋取不正当利益的若干规定》Rules for CleanGovernance of cPC Officials (《 中国共产党领导干部廉洁从政若干准则》),and CPCs Code ofIntegrity and Selfdiscipline(《中国共产党廉洁自律准则》), and resolutely prohibits bribery, extortion, fraud and moneyaundering. The Company has formulated the lmplementation Measures forDiscipline Inspection Organizations to Handle Complaints and Reports andSupervise Casesof Violations(《纪检组织处理信访举报和案件监督管理工作实施办法》 to handle complaints and reports and supervise cases ofviolations in accordance with rules and regulations resolutely. The Companyhas discipline inspection organizations from its headquarters to itssubordinate enterprises at all levels, which are responsible for the reportingthrough letters and visits in the field of anti-corruption. Discipline inspectionorganizations at all levels set up accounts for the handling of cases and cluesreported through letters and visits, and handle each case and clue in strictaccordance with relevant regulations. The Company strictly adheres to theapproval procedures for reporting through letters and visits, and the relevantstaff are required to strictly abide by the confidentiality system to protect theprivacy and safety of whistleblowers. For those who conceal any case andclues or lose secrets, the relevant personnel will be held accountable.

Integrity system improvement

The Company has continuously strengthened the construction of theintegrity system. The Company holds meetings of the anti-corruptioncoordination group once a quarter to facilitate regular consultations andimplement the responsibilities of functional departments The Companyformulated the lmplementation Rules for Certain Provisions on the Integrityof Leading Personnel (《领导人员廉洁从业若干规定实施细则》)tocontinuously regulate the integrity of the leadership team. lt also formulatedthe lmplementation Measures for Anti-corruption, Fugitive Repatriation.Asset Recovery and Fugitive Prevention (Provisional) (《反腐败追逃追赃与防逃实施办法(暂行)》) to continuously strengthen the governance ofcorruption abroad. The Company explored and studied the supervision ofmixed reform enterprises, and formulated the lmplementation Opinionsof Discipline Inspection Organizations on Strengthening the SupervisionofMixed Ownership Reform of Enterprises (《纪检组织关于加强企业混合所有制改革监督的实施意见》)The Company announced the Noticeon Further Streamlining Documentation and Meetings and StandardizingTravel Management,proposing working requirements for rectification otformalism to reduce the burden on the grassroots; drew up Nine Measuresfor Strengthening Supervision and Accountability for Accepting andGiving Banquets and Gifts in Violation of lnternal Requlations to constantlystrengthen the supervisory responsibilities of disciplinary inspectionorganizations at all levels; formulated the Detailed Rules for lmplementingthe Several Provisions on Leaders' Marriage. Funeral and Other CelebratoryActivities to emphasize the leading role of cadres and promote new healthytrends. We tailored a black list svstem of bribers in engineering constructionto further strengthen the accountability and punishment against bribers andfoster a healthy and fair business environment.

Enhancing integrity supervision

Throughoutsupervisionanddisciplinaryaccountability,theCompany'sdisciplineinspection organization not only held the responsible parties accountable, butalso highlighted “re-supervision" to strengthen integrity supervision. In 2022the Company issued timely supervision proposals to relevant enterprises andfunctional departments based on the problems found, and made supervisionrecommendations. The Company revised the Regulations on Management ofBusiness Conduct of Officials and Their Spouses and Children and Children'sSpouses to promote more standardized, transparent and efficient operation ofpower, We actively built a big coordinated "four-pronged" supervision patterncomprising inspection by Party Committee, supervision by Commission forDiscipline Inspection, audit-based oversight and legal compliance supervisionto strengthen the cage of institutions that prevents corruption. The Companyfurther improved the supervisory measures of key links such as procurementof materials, bidding and tendering.work inspection and pricing.and disposalof waste materials, urged the strict implementation of the "Three Major andOne Bia" decision-makina mechanism, and strengthened the managementof project closing. The Company investigated and prosecuted such prominentproblems as illegal biddina, illegal selection and employment of personnel andabor force (suppliers), and over contract price of completion settlement, andprocured leaders at all levels to change their work style, perform their duties ina down-to-earth manner, and plug management loopholes In 2022, the localcommission for Discipline lnspection and Supervision concluded three cases ofcorruption by the personnel of affiliated enterprises, and the relevant personnelwere held criminallv responsible accordina to the law.

By enhancing the supervision and management of collaborating teamsand subcontractors, and strengthening integrity education, the Companypromoted cooperation in accordance with rules and requlations， andvigorously created a clean and upright business environment.

Emphasis on integrity education

In order to ensure that directors, supervisors and employees are familiarwith the anti-corruption system and requirements, the Company insists oncarrying out reqular anti-corruption and anti-bribery education at differentlevels and categories. Anti-corruption training courses are set up in thetraining courses for different positions such as training courses for leadingpersonnel, training courses for directors, supervisors, secretaries of the board.and training courses for new employees, etc. By carrying out education onParty discipline and national law, training on the anti-corruption system ofenterprises, case warning education, and education on integrity culture, theCompany enhances the ideological consciousness of directors, supervisorsand employees not wanting to be corrupted.

In 2022, the Company sorted out and analyzed typical cases found ininspections，disciplinary reviews, and cooperation with supervision andinvestigation,and held two warning education meetings. The Companycompiled and printed a pocket book named"Rules for the lmplementation ofCertain Provisions on the lntegrity of Officials of CREC" and handed out morethan 900 copies to officials of the Headquarters and 45 secondary enterprises?compiled a clean education book named “Warning and Precaution (2022)'with collected 44 typical cases of violations of the eight-point decisionon improving Party and government conduct, of si Party's disciplinaryrequlations, and crimes over the past two years, and handed out more than32000 copies The disciplinary inspection orqanizations of the Company atall levels conscientiously implemented the Opinions on Strengthening theCultivation of a Clean Culture in the New Era, which advocates cultivation of aclean culture to build a strong foundation, with cases serving as warnings toeducate people to have a profound respect for rules and know when to stopthereby creating a more solid corporate culture of integrity.

n 2022, the Company organized external directors to participate in 13 relevanttrainings held by SASAC and securities requlatory authorities, covering anti.corruption.anti-bribery and other aspects.