01 Shandong Hi-speed Company Limited Corporate Social Responsibility and Environmental, Social and Governance Report 2020 « Corporate Social Responsibility and Environmental, Social and Governance Report 2020 02

About the Report

The report truly reflects the efforts of Shandong Hi-speed Company Limited. to fulfil its economic, social and environmental responsibilities for achieving comprehensive, coordinated and sustainable development. The forward-looking statements including the business plan and development strategy involved in the report do not constitute the Company's substantive commitment to investors.

Time Period Basis of Preparation

The time period of the report is from January 1 to December 31, 2020, and some contents are beyond what is The report is prepared with reference to the Guidelines for Environmental Information Disclosure of Listed mentioned above. Companies complied by the Shanghai Stock Exchange.

Scope of the Report Description

The report covers Shandong Hi-speed Company Limited and its subsidiaries. Shandong Hi-speed Company Limited is referred to as “Shandong Hi-speed”, “the Company” or “we” in the report for easier description and reading.

Data Source Access

All the information and data are taken from the formal papers, statistical reports and financial reports of the departments and units of Shandong Hi-speed Company Limited, as well as the environmental, social The report is available on the website of Shandong Hi-speed Company Limited (www.sdecl.com.cn) and the and governance information collected and audited by the Company. The report is issued in both Chinese website of Shanghai Stock Exchange (http://www.sse.com.cn). and English. In case of any inconsistency, the Chinese version shall prevail. The unit of currency is RMB unless otherwise stated. 03 Shandong Hi-speed Company Limited Corporate Social Responsibility and Environmental, Social and Governance Report 2020 « Corporate Social Responsibility and Environmental, Social and Governance Report 2020 04

Chairman's Statement

The year 2020 is a challenging year. In this year, the COVID-19 pandemic circling across the world and the We always remember every partner who makes progress together amid our growth and expansion. Committing sluggish social and economic development made a noticeable impact on the transportation industry. Shandong to being a listed company with good business performance and handsome returns to shareholders, the Hi-speed grasped the nettle, demonstrating a toughly good growth. In 2020, the Company achieved operating Company learned from advanced governance experience, implemented the equity incentive scheme, increased income of RMB 11.365 billion, an increase of 9.13% year-on-year, and registered net profit attributable to the the percentage of shareholders' dividends to 60%, and issued a five-year dividend plan which paid 89.66% parent company of RMB 2.039 billion; by the end of 2020, the Company's total assets reached 92.917 billion, of the incomes to shareholders in 2020. In addition, the Company also created a broad development space an increase of 5.56% over the beginning of the year and net assets attributable to the shareholders of the and a warm atmosphere with cohesiveness for employees and built a career development platform for both listed company were RMB 31.451 billion. The Company has been recognized by the capital market for good employees and the Company to grow together. During the pandemic, Shandong Hi-speed strictly carried out performance and won a series of honors, such as "Best Board of Directors", "Tianma Award of the 11th China relevant policies and allowed vehicles loaded with anti-pandemic materials without stopping, inspecting and Listed Company Investor Relations" and "Top 100 Enterprise 2020 of China". charging. During that period, 56.51 million vehicles are allowed to pass free of charge, with the toll reduced by RMB 2.5 billion. As our important mission is to ensure the transportation of pandemic prevention materials and safe travel in special periods, we quickly mobilized the CPC members, cadres and employees to work in In this year, Shandong Hi-speed focused on the main responsibility and business, and firmly moved forward from the front-line such as expressway stations and service stations, so as to provide a full range of services and "high speed" to "high quality". The construction project has been steadily advanced. After being reconstructed supports, and also donated money and materials to Hubei and other anti-pandemic front-line. In 2020, the and expanded, the annual traffic counts of the Jinan-Qingdao Expressway increased by 45.89% (including the Company won the "Social Responsibility Award of the 14th China Listed Company Value Evaluation" and " free passages during the pandemic). And the reconstruction and expansion project in the Dezhou-Qihe section Ethical Enterprise of China", and our performance of social responsibility was highly appreciated by all sectors of the Beijing-Taipei Expressway was accelerated as well. The Company invested RMB 3.810 billion in 2020, of the society. which is 100.13% of the planned RMB 3.805 billion. The reconstruction and expansion project in Jinan-Qingdao As 2021 is the first year of the 14th Five-Year Plan, Shandong Hi-speed, focus on the main business of roads Expressway won a number of awards on quality at home and abroad, used many environmentally-friendly and bridges, seize the growth opportunity brought by the shifting from the old power to a new one and strive to technologies and became a green expressway that is reconciled with the natural environment. We create four offer high-quality travel services for the public; in addition, we will also devote ourselves to become a first-class unique service brands: smooth high-speed, smart high-speed, harmonious high-speed and safe high-speed", and investment and construction operation service provider on transportation infrastructure in China and the main would continuously improve the quality of service through digital intelligent tools and innovative technology. driving force facilitating the shift of the transportation pattern so as to create values for the society, increase benefits for shareholders, bring welfare to employees, achieve high-quality development, and contribute to building a strong transportation power in Shandong and China!

Sai Zhiyi, Chairman

March, 2021 05 Shandong Hi-speed Company Limited Corporate Social Responsibility and Environmental, Social and Governance Report 2020 « About Us 06

About Us Honors and Awards

Company Profile Shandong Hi-speed is picked as a constituent for the Shanghai Stock Exchange 180 Index, CSI 300 Index, SSE Corporate Governance Index and SSE Dividend Index successively. The Company is nominated as the Outstanding Board of Directors of Shanghai Stock Exchange and is named as the top 100 Valued Listed Companies on the Main Shandong Hi-speed Company Limited established on November 16, 1999, was sponsored by Shandong Hi-speed Board, and the China Excellent IR’ Information Disclosure Award. Besides, Shandong Hi-speed wins the "National Group Co., Ltd. and China Merchants Expressway Network & Technology Holdings Co., Ltd. (formerly known as China Advanced Enterprise in implementing Excellent Performance Model" four times and receives honorary titles such as Merchants Huajian Highway Investment Co., Ltd. ). On March 18, 2002, the Company was listed on Shanghai Stock "Youth Civilization Unit" and "Civilization Demonstration Unit" successively. Exchange with the ticker: 600350 and the registered capital of RMB 4.811 billion, The Company mainly engaged in the investment and operation of transportation infrastructure, as well as equity investments in related industries, finance, environmental protection, and other fields in the highway industry chain and value chain. In 2020, the Company blossomed and harvested the Level A Information Disclosure and "Best Board of Directors" of Shanghai Stock Exchange, "the As of the date of this report, the Company has operated and managed a total of 2,575 kilometers of roads and bridges, Outstanding Project of the 19th National Quality Award", "The International including 1,314 kilometers of self-owned road and bridge assets which are Jinan-Qingdao Section of G20 Qingdao- Road Federation’s Global Road Achievement Awards (GRAA) 2020”, "Social Yinchuan Expressway, Dezhou-Tai'an Section of G3 Beijing-Taipei Expressway, Jinan-Laiwu Section of G2 Beijing- Responsibility Award of the 14th China Listed Company Value Evaluation", Shanghai Expressway, G42 Wuhan-Jingzhou Expressway in Hubei, and G55 Jiyuan-Jincheng Expressway and other "Corporation of China", "Tianma Award of the 11th China Listed Company Investor six expressways, and Lijin Yellow River Bridge and No. 2 Yellow River Bridge in Jinan. Besides, the Company is Relations" and "Top 100 Enterprises 2020 of China". also delegated by Shandong Hi-Speed Group to manage the road and bridge assets with the total mileage of 1,261 kilometers, includingS38 Zaozhuang-Linyi Expressway and S11 Yantai-Haiyang Expressway in Shandong, as well as Xuchang-Bozhou Section of S32 Yongcheng-Dengfeng Expressway in Henan and other 9 expressways The International the Outstanding Road Federation’s Best Board of Project of the Global Road Level A Directors 19th National Achievement The Company is also Quality Award Awards (GRAA) Operated and Managed delegated by Shandong Hi- 2020 a total of Speed Group to manage the 1,314 kilometers road and bridge assets with of self-owend road and the total mileage of 2,575 kilometers bridge assets Social of roads and bridges Responsibility Tianma Award of 1,261 kilometers Award of the the 11th China Top 100 Corporation of 14th China Listed Listed Company Enterprises 2020 China Company Value Investor Relations of China Evaluation

Shandong Hi-speed’s Award in 2020 07 Shandong Hi-speed Company Limited Corporate Social Responsibility and Environmental, Social and Governance Report 2020 « Corporate Culture 08

Corporate Culture Core Value Our Vision Virtue-based operation

Devoted be a Century Enterprise, and Building the No. 1 Brand of Expressway in China We emphasize ethics, morality and commitment. Good morality For sticking to independent innovation unswervingly focusing on the main business and improving its core competence, is fundamental for people to live the Company seizes opportunities to develop its main business of road and bridge in a snowballing manner to better and for enterprise to succeed. ourselves. As well, the Company expands its business through acquisition, merger and cooperative development, People-oriented diversifies its business to some degree, and constantly searches for new profit growth sources for increasing the management development potential and making the Company be a sustainable century enterprise. We respect people, train them and With strong social responsibility, the Company promotes environmental protection and local prosperity, rewards make them better. The humanitarian investors with continuous good performance, provides customers with high-quality and efficient services, and offers good system and management motivate protection and growth environment for employees, aiming to gain the respect from the public, building No. 1 expressway employees with humanistic care. brand in China, and becoming a well-deserved industry leader. Honesty-based work We have sincerity, honesty Our Mission We emphasize high quality, high efficiency, and good faith. We keep high caliber. Quality is the lifeblood of sincere and honest with corporate development, so we pay more Quality-based good faith forever. attention to quality while expanding the Make our employees rich and our company strong development Company and focus on efficiency while accelerating the development. The development of enterprises, the progress of society, the improvement of the environment, and the prosperity of the country depend on people. For expressing our gratitude to our employees, we share our achievements with them to make them wealthy both materially and spiritually, creating opportunities for the well-development of their careers, and boost their life satisfaction. We also thank partners and stakeholders for their cooperation in good faith and harmonious coexistence. We always lead the industry in China and strive to become a leading company in the world to fulfill the responsibilities assigned by the government, serve the public, and forge a strong enterprise. Spirit of Enterprise

Giving back to society "3A" spirit

The Company provides infrastructure for passenger and freight transportation and provides fast, smooth, beautiful, civilized and safe roads for drivers and passengers through scientific operation and careful maintenance of roads and bridges. Besides, the Company also constantly improve charge, maintenance, road administration and other services to achieve scientific and efficient management, smooth and safe road, civilized and fair law enforcement, orderly driving, clean and smooth environment, and warm and thoughtful service, for ensuring long-term, stable, and profitable returns to shareholders. Accountable Aggressive Advanced

We actively assume responsibilities We never rest on our laurels; instead, Advancement is the highest and commitments, have prudent and we rebel against the status quo, aspiration for the Company. We give down-to-earth attitudes, keep honest seize the opportunity, and strive full consideration to every detail and trustworthy. Our responsibilities for the company's leap-forward and strive for keeping improving include responsibilities to the public development; we dare to embrace from time to time. Relying on our (drivers), responsibilities to society, the challenge whiling remaining rich experience and continuous responsibilities to shareholders, and dauntless and optimistic in the face of betterness, we can cultivate the responsibilities to employees. difficulties. persistent spirit of making everything perfect. 09 Shandong Hi-speed Company Limited Corporate Social Responsibility and Environmental, Social and Governance Report 2020 « Responsibility Management 10 11 Shandong Hi-speed Company Limited Corporate Social Responsibility and Environmental, Social and Governance Report 2020 « Responsibility Management 12

Social Responsibility Management Stakeholder Involvement

Shandong Hi-speed sets up an inter-departmental organizational structure for environmental, social and governance While expanding business development, Shandong Hi-speed is committed to improving the long-term value of the (ESG) to carry out work on ESG in an orderly manner. Meanwhile, the Secretariat of the Board of Directors leads the Company to protect the interests of all stakeholders. The Company attaches importance to the communication with efforts to prepare ESG action plan, collect and sort ESG-related qualitative and quantitative data, entrusts related parties stakeholders, respects and listens to their opinions, understands the operation projects and important points to be to prepare and preliminarily review ESG report, and helps the presentation of ESG report to the Board of Directors. Each improved, and makes responses accordingly. In addition, Shandong Hi-speed communicated with stakeholders through department, including the inspection office, safety management department, office, Party Committee affair department, different channels and invited stakeholders to give feedback. The following table indicates the communication channels engineering maintenance department, trade union office, discipline inspection commission office, enterprise management between Shandong Hi-speed and others, the main concerns and expectations of stakeholders, and the corresponding department, human resources department, audit department, investment management department and operation measures taken by the Company. department, is responsible for the regular collection and management of relevant ESG information. Each department arranges ESG information management staff to regularly collect, report and audit ESG information and make sure that data and information are comprehensive and accurate. Stakeholder Expectations and requirements Means of communication

Implementation of national policies, laws and regulations Reporting documents Promotion of local economic development Suggestions and advice Creation of more local jobs Government and Special report Driving the development of the industry regulators Negotiation and cooperation Compliance emission Upholding honesty and trustworthiness, we develop We are committed to "making Information disclosure Energy-saving and, emission reduction our business legally and continuously enhance the the best use of employees Ecological protection profitability, risk resistance capacity and sustainable and their talents", promoting development ability of the enterprise for creating the all-around development of Company’s announcement more values for our shareholders and the society. employees, protecting the rights Shareholders Revenue and return Special report and interests of employees, and and investors Compliance operation The general meeting of shareholders enabling employees to share Roadshow and counter roadshow the achievement of enterprise Uniting employees development. Protection of rights and interests to seek common Employee forum growth Safety in production Make efforts Face-to-face communication to develop for Occupational health Employee Social media everlasting Salary and benefits Workers' Congress development Career development Questionnaire The social We are committed Assuming all responsibility goals of responsibility for harmonious development Shandong Hi-speed to offering safe, Quality of service comfortable and easy Safe travel Business communication is to become an industry Customers and Performance of the contract according to law User feedback traffic services for social responsibility leader partners Honest management Exchange and discussion drivers and passengers, High-quality products and services with an orientation to customers’ needs. Green purchasing Supplier assessment We are committed to Focusing on Compliance management Work jointly on customers to meet Supplier The phone call and mai social welfare and strive to diverse needs Product liability ecology to practice achieve comprehensive, the Green China sustainable and coordinated initiative Compliance emission development for the Energy-saving and, emission reduction Press conference and forum enterprise, society and We are committed to researching and Ecological protection Media and NGOs Promotion of local economic development Social media environment promoting the construction of ecological and Creation of more local jobs Official website environmentally-friendly demonstration roads Driving the development of the industry and the ecological diversity system of highways

Improvement of the community environment Official website Community and Participation in public welfare Community interaction and public the public Open and transparent information welfare activities Social media 13 Shandong Hi-speed Company Limited Corporate Social Responsibility and Environmental, Social and Governance Report 2020 « Responsibility Management 14

We identify and screen the environmental, social and governance issues related to Shandong Hi-speed by means Shandong Hi-speed invites internal and external stakeholders to identify environmental, social and governance issues of suggestions from the Company's management, research on peer benchmarking at home and abroad, multimedia and assess their importance. Through employee interviews, on-site visits, questionnaires and others, the Company fully information analysis and on-site investigation, so as to understand the level stakeholders are concerned, and ultimately understands the sustainable development issues of concern by internal employees and external stakeholders. determine the material issues.

Procedures for screening environmental, social and governance issues Quality of road service Emission of pollutant Road safety Response to climate change Employee compensation Standard and control of road noise and benefits Source of issues Contribution to sustainable Employee training and development Safety in production and development Water utilization occupational health Energy conservation General concerns of the stakeholders Anti-corruption Suggestions from the Company's management ESG guides for material issues

Analysis and suggestions by In line with the Company's needs for strategic development internal and external specialists Employment and labor standards Multimedia information analysis Public welfare in the community Rational use of land Research on peer benchmarking Supply chain management Impact on biodiversity Screening criteria ESG related standards and guides sustainable development Importance to stakeholders’ Consumer privacy protection

Importance to the Company’s sustainable development

Shandong Hi-speed’s ESG materiality matrix in 2020 15 Shandong Hi-speed Company Limited Corporate Social Responsibility and Environmental, Social and Governance Report 2020 « Responsibility Management 16

The Company insists on equally treating every shareholder and fully protecting the rights and interests of shareholders, Corporate Governance especially the interests of minority shareholders by providing online voting of shareholders' meetings and counting the votes of minority investors separately. The Company has set up an investor helpline to listen to the suggestions and opinions of shareholders and investors, and timely reply to shareholders' questions, so as to protect their right to involve in corporate governance to the utmost. In 2020, the Company held 4 general meetings of shareholders, 18 meetings of In strict accordance with the Company Law of the People's Republic of China, Securities Law of the People's Republic the board of directors and 7 meetings of the board of supervisors, in which we deliberated 93 topics such as review on of China, Code of Corporate Governance for Listed Companies in China, Rules Governing the Listing of Shanghai Stock change of leadership and equity incentive and disclosed nearly 160 announcements and attachments. In July 2020, the Exchange and relevant rules and regulations of China Securities Regulatory Commission, Shandong Hi-speed has Company also issued a five-year (2020-2024) plan for shareholder return and promised that annual cash dividend shall formulated the Articles of Association, Rules of Procedure of the General Meeting of Shareholders, Rules of Procedure not be less than 60% during such period, greatly boosting market confidence. of the Board of Directors, Rules of Procedure of the Board of Supervisors, Work Policy of Secretary of the Board of Directors and External Information Submission Policy, which are disclosed on the website of Shanghai Stock Exchange. In 2020, the Company strictly abided by the laws and regulations and the Company's policies; there was no violation of the above laws and regulations and the Company's internal management policies. In 2020, 7 meetings of the board of supervisors, Shandong Hi-speed makes earnest efforts to protect the interests of the Company and all shareholders by constantly in which we deliberated the Company held 93 improving the corporate governance structure, strengthening the internal management, establishing and perfecting the 4 topics such as review on change of leadership general meetings of shareholders, internal control policy, standardizing the corporate operation, and strengthening the control of information disclosure. and equity incentive The Company has established a governance structure composed of the general meeting of shareholders, the board of directors, the board of supervisors and the management. Based on the Articles of Association, the multi-level governance 18 meetings disclosed nearly 160 rules are formulated by the Company to specify the responsibilities and obligations of the Parties. In this way, the general of the board of directors announcements and attachments meeting of shareholders, the board of directors, the special committees, the board of supervisors and the management perform their duties respectively and coordinate with each other amid effective check and balance to improve the level of corporate governance and efficient decision makings. The Company attaches importance to investor relations and proactively communicates with investors. In 2020, Shandong Hi-speed took General meeting of In 2020, the initiative to visit investors for roadshows shareholders and organized more than 60 on-site and online Shandong Hi-speed took the initiative to visit meetings; the Company also proactively invited investors for roadshows and organized Board of Director a number of institutions to the Company for 20 counter roadshows and received more than 100 more than on-site and online meetings exchange and investment institutions. In 2020, 60 Board of Supervisors we held earnings announcement in time and the first open day for the investors from the market The Company also proactively invited a number received more than 30 investors and replied to 39 of institutions to the Company for investors' concerns through the SSE e-interaction counter roadshows platform. In 2020, the Company's institutional 20 investors had direct dialogues with the chairman, Strategic Development Remuneration and general manager and other senior managers, The Audit Committee Nomination Committee Received more than exchange and Committee Appraisal Committee 100 and fully communicated on the Company's investment institutions strategy, development planning and protection of shareholders' rights and interests. And then, the We held earnings announcement in time and the Secretary of the Board leadership answered the questions from institutional investors about the Company's development and first open day for the investors from the market operation decisions and institutional investors received more than investors while those institutional investors gave relevant 30 suggestions on corporate governance as well. General manager Replied to 39 investors' concerns through the SSE e-interaction Deputy General Manager, Chief Enginner,Chief Accountant, platform Chief Economist,Chief Legal Advisor

The corporate governance structure of Shandong Hi-speed 17 Shandong Hi-speed Company Limited Corporate Social Responsibility and Environmental, Social and Governance Report 2020 « Responsibility Management 18

Case Shandong Hi-speed held Investor Day 2020 Adherence to Integrity and Compliance

On December 16, 2020, the Company held an Investor Day, which attracted nearly 30 investment institutions and media from Zheshang securities, CICC securities, UBS Securities, and Huatai Securities. During the We always adhere to the corporate culture featuring integrity and honesty, and strictly abide by the relevant laws and Investor Day, the investors made field visits to Shandong Hi-speed Monitoring and Dispatching Center, regulations such as the Supervision Law of the People's Republic of China, the Anti-Money Laundering Law of the reconstruction and expansion of bridges and tunnels in Dezhou-Qihe section of Beijing-Taipei Expressway, People's Republic of China, as well as Party rules including the Constitution of the Communist Party of China, Guidelines and Jinan East Service Area of Jinan-Qingdao Expressway, while they also communicated with the on Political Life Inside Party under the New Situation, and the Supervision Regulations of the Communist Party of China. management on the overall investment and development strategy of the Company. This Investor Day was In addition, the Company developed 13 policies including the Rules for Implementing Responsibility Policy for Party a new path for the Company to continuously communicate with the capital market and improve investor Conduct and the Clean and Honest Government Building, Opinions on the Implementation of Establishing and Perfecting relations. Moreover, it also helped to enhance investor confidence and project an image of a high-class listed the Corruption Punishment and Prevention Policy, Evaluation Rules of Integrity Risk Prevention and Control Mechanism company that has excellent performance and focuses on investor return at the capital market. and Regulations on Reporting, Investigating and Handling Petition Letter by Discipline Inspection and Supervision Department. Those rules and regulations standardize the professional behavior of the Company's management and all employees, stipulate their responsibilities in the anti-corruption work, solidify the supervision and inspection mechanism and policy, and continuously monitor and prevent the integrity risk to put an end to corruption. In 2020, the Company have no corruption-related litigation and lawsuits.

The Company has established an effective complaint, visit, and investigation procedure to prevent corruption. The informant can report the problems in the form of letters, phone calls, e-mail, and visits. The Company fully protects the privacy and legitimate rights and interests of the informant, and timely handles the received complaint, visit, and reporting according to the procedures. In 2020, the Company gave feedback to all valid reports.

In 2020, Shandong Hi-speed set up a coordination The team dynamically revised the integrity risk group in charge of strict Party disciplines, Party prevention and control policies in 2020 conduct and integrity to build a collaborative mechanism where inner-party supervision is partially complemented by all kinds of supervision. The team dynamically revised the integrity risk prevention and control policies, sorted out 2,163 Sorted out power categories, investigated 7,976 risks, and formulated 8,230 prevention and control measures. In 2,163 addition, the Company also organized or coordinated power categories activities including supervising and inspecting the implementation of the "three major and one large" system (decisions on major issues, appointment and removal of major cadres, arrangement of major Investors’ field trip projects, and a large number of funds must be agreed Investigated Formulated through discussion), specially solved the problems of "departmental coffer" and arranged the activity of 7,976 8,230 “looking back” for the audited items; supervised and prevention and risks control measures standardized the expenditure, bidding, salary and benefit payment; strengthened the review during cadre selection and chose of the best; responded to 32 opinions on selecting cadres with integrity, made conversation with 23 cadres before taking the office, and updated 146 records of leading cadres working with integrity. 19 Shandong Hi-speed Company Limited Corporate Social Responsibility and Environmental, Social and Governance Report 2020 « Responsibility Management 20

Shandong Hi-speed keeps creating a culture of integrity during regular education and pays attention to integrity education activities. In 2020, the Company conducted more than 4,050 integrity-related talks, organized 630 early warning educations and showed 8 educational films such as Sharp Sword of Inspection. What’s more, the Company increased the publicity on the WeChat official account on "discipline at our fingertips", sent 207 messages on integrity during the holiday to create a governance atmosphere that is honest and clean. In addition, we invited external specialists to give lectures on the spot, organized training on professional knowledge twice and related tests once to all discipline inspection personnel within the Company.

warning education and theoretical knowledge test on discipline inspection with the Case Study theme of "holding original aspiration and moving forward with integrity"

On July 30, 2020, the Company organized and carried out the warning education and theoretical knowledge test on discipline inspection with the theme of "holding original aspiration and moving forward with integrity". More than 230 employees including leaders of the Company, cadres and employees of all departments and offices at the headquarters, team members of all units owned by Shandong Hi-speed and discipline inspection personnel participated in the activities. During the process, the employees were organized to watching the warning videos of serious violations of disciplines and laws and tested their knowledge over discipline inspection. Thus, the activity improved the sense of integrity and self-discipline of cadres and employees and was of great significance to build a strong ideological line of defense against corruption.

Party Building

Guided by Xi Jinping's Thought on Socialism with Chinese Characteristics and the guidelines of 19th National Congress of CPC, Shandong Hi-speed earnestly performs the main responsibility in an all-out effort to enforce strict Party discipline and play an exemplary role of Party organizations and The Party committee of Warning education and theoretical knowledge test on discipline inspection with Party members to provide strong political guarantee for the Shandong Hi-speed has the theme of "holding original aspiration and moving forward with integrity" development of the Company. 188 party organizations The Party committee of Shandong Hi-speed has 188 party at the grassroots level organizations at the grassroots level, including 23 Party Anti-corruption education and training within the Company in 2020 committees, 4 general Party branches and 161 party branches, with a total of 2,250 party members. The Party committee of Party committees the Company strictly plays the leading and guaranteeing role 23 The total duration of anti-corruption Number of participating in anti-corruption of Party building party development, insists on strengthening education(hours) education(people) the Party building based on the problems and being guided by the Party building principle of “New Era, New Highway, 4 general Party branches and Go All the Way”. The Company continues to explore the new path to deeply integrate Party building and production 252 8,052 and operation, promotes the 1000-mark assessment system, improves the construction of Party branches, and explores the 161 Party branches implementation of the project-based pattern of Party building 261 460 management and the Party member contract responsibility system for important work and other innovative measures to achieve high-quality Party building and development. A total of

employees senior management employees senior management 2,250 Party members 21 Shandong Hi-speed Company Limited Corporate Social Responsibility and Environmental, Social and Governance Report 2020 « Responsibility Management 22

In 2020, Shandong Hi-speed continued to the greatest achievement, and integrate all production improve the quality of Party building and and operation into a pattern of wide Party building. carries out a series of activities.

Developing Party building with problem orientation and drawing up the mind map of Building excellent Party member and cadre Party building team to play the exemplary and vanguard role At the beginning of 2020, the Company held a discussion on "Adherence to the problem-oriented " to In 2020, with the help of the provincial Party school, free ourselves from old ideas. Party organizations at all Shandong University and other think tanks, Shandong levels investigated 111 problems in six aspects, including Hi-speed offered a series of outstanding Party- awareness, road and bridge operation, investment and related courses, such as Regulations on the Work of development, and Party building, and 15 of them were CPC Branch (Trial), Regulations on Educating and at the Party committee level of the Company and 96 at Managing CPC Members, Socialist Industrialization the Party committee level of each unit. As a response to under the Relationship Between Workers and Farmers those issues, the Company timely issued the Opinions and Between Urban and Rural Areas, Civil Code: on the Implementation of "1 + 5" Project Management Encyclopedia of Life and among others to further for Party Building, focus on Party building breakthrough broaden the new horizons of Party members and projects at the grassroots level together with the Party leading cadres and improve the political skills and secretary. Aiming at the problems found in the production comprehensive ability. and operation, for every Party building project, the Company assigns a responsible leader, builds a Party In addition, the Company held lecture circuits on "paying team, develops a set of the implementation plan, homage to the anti-pandemic heroes and discovering provides a work fund and forms a result verification good examples around us" and printed three issues mechanism. of the special issue. We extended our efforts in road and bridge operation, investment and development, As of the end of 2020, the Company has initially formed and major engineering construction and proactively a library of 36 Party building projects and achieved promoted the model Party branches and members in good results in solving production and operation urgent, difficult and dangerous tasks, emergencies and problems such as targeted marketing and engineering Forming a network is the joint construction and sharing development. On such basis, the Company proactively crises. construction. of Party building at the level of the Company's Party connected with major customers, and improved the quality committee. Guided by "New Era, New Highway, Go All and level of our service to the society. At present, 66 the Way", the branches in different regions and lines Party organizations have signed agreements with local Shouldering political responsibility and win Fostering wide Party building by point-by- develop and share knowledge on the Party building work governments, logistics enterprises, industrial parks, local the fight against COVID-19 point breakthrough, linking the line and together and enable production and operation through scenic spots, restaurants and hotels, and achieved good forming a network better Party building by means of joint creation and co- results. After the outbreak of COVID-19, the Company construction of Party building, regional cooperation, issued the Notice on Strengthening the Leading and The point-by-point breakthrough is to build an excellent promotion of model Party organizations, selection of Shandong Hi-speed proactively promotes the construction Guaranteeing Role of Party Building and triumphing Party branch in an all-round way at Party branch. In the best examples, on-site discussion and exchange, of major projects led by Party building. In the reconstruction over COVID-19 and Proposal to Party Organizations 2020, Shandong Hi-speed compiled and printed the printing of special issues. and expansion of the Dezhou-Qihe section of Beijing-Taipei Instructions for Building Excellent Party Branches, Expressway, the Company started the activity “flying the at All Levels and Party Members of the Company, 197 formulated more than 160 standardized templates, forms Party’s flag and shining the Party’s emblem to win in the Party organizations at the grassroots level and 2,379 and reports, and summarized over 30 progressive and crucial year". The Party members and Party organizations Party members were on a war footing quickly. The main enlightening methods of Party building. The standard- Highlighting empowerment of Party building, were involved in all aspects of the project construction to leaders focused on the front line, the team members reaching rate of 161 excellent Party branches was 100%. and continuously promoting the deep ensure the smooth implementation of major construction took charge of different regions, and the key personnel integration of Party building and production projects through Party members' innovative laboratory, stopped vacations and returned back to their posts. linking the line means that on the basis of building and operation Party cadre team, Vanguard of Party members, technology The Company also formed Party vanguard, the Party’s excellent Party branches, the Party organizations of all commando, the first responsible Party members in every fighting team and the Party’s assault force, and selected units owned by Shandong Hi-speed considered the key In 2020, the Company formulated and issued the station and "1 + N" assistance mechanism. the model Party members, the model team and the most work such as welcoming national inspection", the year Guiding Opinions on Implementing Joint Creation and effective team. In this way, the Party members were of improving expressway service and countdown key Development of Party Building. The Company carried We strive to achieve comprehensive integration of Party arranged in every key part and key areas and soldiered reform tasks, find out the place to focus on and start with the idea of “Party building, resource sharing, problem- building, production and operation. In 2020, Shandong Hi- on in every anti-pandemic battlefront of the toll, road to create a demonstration road and a demonstration line, solving, civilized joint creation and joint activities", and speed formulated and issued the Implementation Plan for management, maintenance, information, and service and form a leading and converged Party building brand organized Party organizations at all levels to make joint the Year of Party Building Innovation and Promotion, so as areas to fight against COVID-19 when all units and which is unique in the region. to achieve ideological integration, regard Party building as projects returned to production on schedule. 23 Shandong Hi-speed Company Limited Corporate Social Responsibility and Environmental, Social and Governance Report 2020 « Safe Travel and Win-Win Cooperation 24 25 Shandong Hi-speed Company Limited Corporate Social Responsibility and Environmental, Social and Governance Report 2020 « Safe Travel and Win-Win Cooperation 26

Won the Global Road Achievement Awards (GRAA) 

Road Security In November 2020, Jinan-Qingdao Expressway Reconstruction And Expansion Project won the Quality Management Category of the International Road Federation’s Global Road Achievement Awards (GRAA) 2020. The GRAA is a significant honor in the industry to recognize innovative projects and exemplary people that place the road industry at the forefront of worldwide social and economic development. This award proved that the Jinan-Qingdao expressway Engineering Construction reconstruction and expansion project meets international standards and further increased the international presence of our brand.

In the past two years, the Company has focused on the upgrading, reconstruction, and expansion projects of road sections on Jinan-Qingdao Expressway and Beijing-Taipei Expressway. In 2019, the reconstruction and expansion project of Jinan-Qingdao Expressway was completed. For the reconstruction and expansion project featuring the longest mileage and largest investment in China, which was finished without delay, we overcame many problems including constructing when the road kept running although the volume of traffic went beyond the limits, topped China and the world in many aspects, and improved the brand of Shandong Road. In 2020, drawing on and copying the successful experience of the reconstruction and expansion of the Jinan-Qingdao expressway, the Company vigorously promoted the reconstruction, and expansion projects of road sections on the Beijing-Taiwan Expressway, which was to be completed and put into operation as soon as possible while ensuring the quality of the project.

Report Card of Jinan-Qingdao Expressway reconstruction and expansion

Passed the acceptance and assessment and rated as the international leading one Won the Global Road Achievement Awards (GRAA)

In December 2020, China Highway and Transportation Society and Shandong Provincial Department of Transportation held the technology project acceptance and assessment meeting of Jinan-Qingdao Expressway reconstruction The Outstanding Project of the 19th National Quality Award 2020-2021 and expansion project in Jinan to accept and assess three technology projects undertaken by Shandong Hi-speed,  （ ） Shandong Institution of Transportation Sciences and Beijing Xinqiao Technology Development Co., Ltd. According to expert evaluation, "fatigue damage test and residual life prediction of in-service reinforced concrete beams", "structural The Annual Conference of China Association for Quality was held in Beijing in December 2020. The Jinan-Qingdao and stress analysis of bridge integrated deck based on model test and verification of real bridge" and "research on BIM- Expressway reconstruction and expansion project won the "the Outstanding Project of the 19th National Quality based integrated bridge construction technology " have all reached the top level globally. Award (2020-2021)" in recognition of its five extraordinary methods, nine key technologies and a series of high-quality technical achievements which can be promoted and applied on a large scale.

Passed the acceptance and assessment and rated as the international leading one The Outstanding Project of the 19th National Quality Award 2020-2021  （ ） 27 Shandong Hi-speed Company Limited Corporate Social Responsibility and Environmental, Social and Governance Report 2020 « Safe Travel and Win-Win Cooperation 28

Road Maintenance and Upgrading

Shandong Hi-speed values road maintenance. We strictly follows the current national standards and specifications such as Technical Specifications for Maintenance of Highway, Codes for Maintenance of Highway Bridge and Culvert, Technical Specifications of Maintenance of Highway Tunnel, Technical Specifications for Maintenance of Highway Cement Concrete Pavements, Technical Specifications for Maintenance of Highway Asphalt, and formulates management systems including Management System for Highway and Bridge Maintenance, and Maintenance Management Rules and Daily Highway Maintenance Rules. Following the principles of "comprehensive maintenance, prevention, timely maintenance, improvement of quality and well-maintained", the Company standardizes road maintenance work to ensure the daily road operation is safe and stable.

In the daily road maintenance operation, the Company persists in the principle of "machine comes first and human workers second", and proactively implement the comprehensive mechanization operation. We implement the order dispatching system. Each road and bridge operation unit shall issue a dispatching orders to the maintenance contractor in time in a response to the problems found during patrol inspection on maintenance. After the maintenance, they accept, sign and confirm, and settle on the tasks. In this way, the daily maintenance patrol, dispatch, acceptance, and settlement can be realized by using the scientific decision-making system of maintenance to ensure the quality of work. We establish a regular inspection mechanism to maintain, record, sort out and summarize the inspection results through Inspection Checklist, and manage the inspection types, contents, frequency and methods in a standardized manner. Emergency Rescue If any major hidden dangers are identified, we are timely informed and then rectify them through an internal reporting mechanism, without leaving any safety risks.

In view of extreme weather, traffic accidents and other emergencies happening on the expressway, the Company The Company repaired arranges emergency rescue work and internally formulates many emergency plans, such as Special Emergency Plan Elevated Reconstructed for Flood Prevention and Rescue, Special Emergency Plan for Snow Removal and Anti-Skid and Special Emergency 92 kilometers Plan for Earthquake Prevention and Disaster Reduction. When arranging the emergency rescue work, the Company meters strengthens the capability in early warning of flood, snow and disaster, pays close attention to the weather change and of single pavement of the 23,100 meters of 45,300 keeps abreast of meteorological and hydrological information to prepare the rescue team, materials and equipment Weifang-Laixi mainline bridge concrete guardrail of steel guardrail in advance. In this way, the Company can provide the foundation for the smooth progress of emergency rescue work, ensure road safety under special circumstances, and create a safe and free travel environment for the public. In 2020, we have worked a lot in emergency response: China's first "life cycle wet reflective pavement marking" appeared in Beijing-Taipei Case Expressway In terms of snow removal and anti-skid work, we mobilized 4,470 employees, used 439  snow removal vehicles and sprayed 6,300 tons of snow melting agent to ensure the safety of On September 2, 2020, the Yancheng interchange ramp roads under our jurisdiction. of Dezhou-Qihe section of Beijing-Taibei Expressway reconstruction and expansion was equipped with life-cycle wet reflective pavement markings for the first time, which is also the first one in China, and led the upgrading of In view of the different speed limits between the exit ramp at the service area of the toll  expressway markings nationwide. station and the ramp at the junction interchange and the mainline, we rectified signs of speed limit on expressways and found 1,139 problems in total, which have been rectified. The wet reflective pavement marking in wet and rainy conditions is very important for safe driving in special weather. The Company set up a marking R&D team in the The emergency drill of flood control and emergency rescue was carried out. The drill was highway maintenance section. Due to repeated tests to  explore the material composition and technology, the first precisely planned with major focus, orderly coordinated and smoothly operated to test whether life-cycle wet reflective pavement marking was successfully the flood control plan is applicable and complete, which has demonstration and guiding developed in China. From the beginning of drawing the significance for the emergency rescue work. markings to the end of marking life (average daily traffic volume is 80,000 for more than 4 years), it can maintain good reflective performance no matter under dry and wet We proactively dealt with and worked on the safety of the bridge structure, investigated  conditions or with continuous rainfall, greatly improving the hidden dangers of the bridge’s single-column pier, and upgraded and reconstructed road and traffic safety. bridge projects to ensure structural safety. 29 Shandong Hi-speed Company Limited Corporate Social Responsibility and Environmental, Social and Governance Report 2020 « Safe Travel and Win-Win Cooperation 30

early prediction, early deployment, early prevention, Shandong Hi-speed fought Instantaneous Case snow in a high quality and efficient manner Instantaneous Instantaneous handling of special scanning search circumstances

As of 2020, snowfall hit most areas of Shandong Province. Considering the reality, each road management sub-center of Shandong Hi-speed timely launched the Special Emergency Plan for Keeping Roads Instantaneous Instantaneous Instantaneous Instantaneous unblocked in Bad Weather, established a mechanism to link relevant departments, and strengthened reading; counting ticketing contacts the three-in-one inspection. The Company optimized and improved the snow removal and anti-skid plan process, and organized an emergency support team consisting of over 2,000 peoples to supply and dispatch materials and equipment. The Company sprayed snow-melting agents more frequently in the road section, bridge, ramp and tunnel entrance which was intended to freeze, with a total of over 3,000 tons of snow melting agents. In this way, the work of snow removal and antiskid was completed in a top-quality and efficient manner and the road was safe and smooth. Reduce congestion

We actively improve the abilities and service quality of our employees. The Company organized the "100-day improvement of the service quality on the hotline (96659)" activity, strengthened training and learning, business assessment, and carried out random spot checks on all on-job information service staff. The pass rate of recording service increased to 98.49%, which comprehensively improved the service awareness and professional skill of information service staff. In 2020, we answered 2.651 million calls via hotlines (96659), a year-on-year increase of 27.88%. More than 1.203 million calls were answered by customer service representatives, a year-on-year increase of 18.15%; and 76,000 messages of road operation information were dealt with, a year-on-year increase of 94.53%. Removing snow and conducting antiskid on site

Quality Service We answered More than 76,000 million calls via million calls were messages of road operation Shandong Hi-speed consistently provides customers with high-quality travel services, practices the concept of “allowing 2.651 1.203 information were dealt with, the public to enjoy high-quality travel services”, strictly implements specifications for operation management service, and hotlines (96659), a year-on- answered by customer service a year-on-year increase of continuously improves standardization. year increase of representatives, a year-on-year 94.53% increase of Over the years, the Company has adhered to the operating philosophy of "unimpeded access makes benefit", integrated 27.88% 18.15% the service hotline (96659), introduced a vehicle-mounted visual dispatching and command system, addressed the requirements of tow and rescue service brand, and successfully secured and protected smooth travel during important periods such as National Day and major events. The number of delays at toll gates and the daily average congestion were reduced by 94% and 97% respectively. We mainly standardize service by serving with a smile and setting 96659 as the service hotline, a truly civilized service, create a service brand featuring "visible plus audible smile" and provide high- quality services for drivers and passengers; at the same time, we improve road environment, further manage the quality Process 1,419 complaints of toll collection environment so as to surely improved it, and save time for drivers and passengers; in addition, multiple measures are taken to continuously enhance the efficiency of ETC lanes by continuously optimizing the ETC system, and improving the smooth travel on ETC lane plan and other effective measures.

In 2020, we upgraded the revision of service standards and specifications and the training, updated 13 major standard revisions, and fulfilled the promotion and training of the standards and specifications on video; fully updated the hardware In order to improve the driving experience of drivers and passengers on the road, the Company has accelerated of the service hotline system (96659), monitored the new version of the hotline system, and upgraded BC recording the rectification of illegal advertisements on the road. In 2020, the Company comprehensively screened and sorted system, BC statistical analysis and management system, greatly improving the stability of the hotline system (96659). unapproved illegal advertisements at present on the large pillars and overpass bridges in the expressway land and building areas under its jurisdiction, reported the illegal advertisements in the form of letters to the local government and comprehensive transportation law enforcement, in the place the Company operates and asked them to actively clean up and rectify illegal advertisements. 31 Shandong Hi-speed Company Limited Corporate Social Responsibility and Environmental, Social and Governance Report 2020 « Safe Travel and Win-Win Cooperation 32

Smart Innovation Applying results of the Company's smart expressway

Smart Expressway The Company vigorously developed used a visualized smart dispatching command system. The system integrates basic Smart expressway serves as the main project of transportation information such as sites, personnel, construction in the digital age. The Company is committed to vehicles, road monitoring, incidents, improving service quality and building a more convenient and weather, and traffic control and visually comfortable travel experience for drivers and passengers with dispatches, commands and controls the smart high-speed construction. process of handling incidents, greatly The smart expressway business of Shangdong Expressway improving the efficiency of incident centers on the Big Data Integration Platform and the Smart handling. It also strengthens the linking Expressway Joint Innovation Center and is guaranteed by management and control of personnel, technology to combine safety, efficiency and smoothness, and vehicles and incidents to comprehensively continues to promote the construction of the smart expressway. trace the emergency handling process. We have upgraded and improved the six systems: toll inspection platform, road management resources real-time positioning and control, electromechanical equipment’s operation data monitoring, embedded broadcasting in the tunnel, scientific decision-making on maintenance, and standard data of pavement diseases. The system forms a smart operation model of unified business data, PassCode System on Jinan-Qingdao Expressway for precise control coordinated business processing, and in-place supervision on operation, contributing to a more smooth and safe road operation. The Company, along with the Expressway Traffic Meanwhile, we apply more research on big data of transportation, Police Corps of Shandong Provincial Public Security intelligent transportation system, transportation IoT and other Department, developed and built a PassCode system fields, accelerate the transformation of technology, and enhance and operated it on the Jinan-Qingdao Expressway. The the Company's core competitiveness. system is recognized by the public since it can provide customers with precise travel services in traffic control conditions, reduce the impact of traffic control measures on-road operations and travel and provide a smart and green refreshing experience for public travel, and ensures a good traffic order. Technology In August 2020, the PassCode System on the expressway was reviewed by the Copyright Protection Center of China of the National Copyright Administration and obtained the "Computer Software Copyright Registration Certificate". Big Data Integration Platform

Smart high-speed Benefit Unblocked construction Smart Expressway Joint Innovation Center "Operation In Hand" mobile App

A mobile App for "Operation In Hand" is developed by making full use of operational big data. It can statistically research and judge the data of the Company's business and road network operation, providing timely and Safety accurate data support for daily operations and decision-making. 33 Shandong Hi-speed Company Limited Corporate Social Responsibility and Environmental, Social and Governance Report 2020 « Safe Travel and Win-Win Cooperation 34

Driven by Innovation Lane-level information release and precise control

The method provides accurate services Shandong Hi-speed focuses on cultivating a corporate culture of innovation and actively promotes technological and realizes lane-level information innovation and transforms the achievement. In 2020, the Company relied on the innovative maintenance studios, release and precise control. The trial on carried out innovation and efficiency activities, established 25 innovation studios, and initially launched 41 projects, and Jinan-Qingdao Expressway makes full reaped rewards for 7 achievements. use of the existing variable information signs, realizes the "full display in graphic In 2020, the Company spent RMB 67,632,800 on research and development expenses and had 80 authorized patents and text" of the main line variable throughout the year. About 7 technological achievements passed reviewed and were accepted and the Company message board, and achieves "divided published 49 papers (books) in major journals and participated in the drafting of 1 standard. lane control", that is to display signs for the truck prohibition on the lane 1 and lane 2 for the passenger of the four lanes on Jinan-Qingdao Expressway, In 2020, separate passenger vehicle and truck, and ensure both can pass safely and the Company spent RMB Development expenses efficiently on separate lanes. 7

and had 80 67,632,800 technological achievements on research authorized patents passed reviewed throughout the year Measures for traffic early warning guiding and prompting at toll gates

We, together with Expressway Traffic Police, introduce measures for traffic early warning guiding and prompting at toll stations. LED screens or F-pole-type early warning screens are installed at the junction of the ramp of the Participated in the drafting of toll gate on the Jinan-Qingdao Expressway and the local roads. When there is a travel control at the toll station, Company published 49 vehicles are controlled on the road to be passed after timely issuing control information and detour routes. It can avoid turning around and waiting at the toll plaza, and causing congestion and accidents to guide vehicles papers (books) in major 1 standard to pass properly. journals

Intelligent guidiing system Case The Company's first external innovation branch was established

The Company installs solar-powered smart road spikes and roadside control units at the ramp of Jinan-Qingdao Expressway to build an intelligent guiding system. The Company builds functions such as driving route guiding, On August 27, 2020, the Company signed a strategic cooperation agreement with China Merchants a reminder for unusual conditions, traffic information detection at merging/diverging ramp on the expressway, Chongqing Communications Technology Research & Design Institute Co., Ltd. to build the "Innovation improves the quality of expressway management, better identify the right lanes at night and on other occasions Sub-Center of Shangdong Expressway -China Merchants Chongqing Communications Technology". The when there is bad visibility, and build a smart roadway on trial featuring luminous highway. two parties will further strengthen cooperation in the formulation of standards and regulations, research on major technological projects, and construction of scientific research platforms. In this way, the Company leverages respective advantages, builds external innovation sub-centers with high standards and levels, and accelerate the advancement of basic research in expressway transportation, breakthroughs in key core technologies, innovation of system integration and the transformation of research results, and make every effort to improve the level of research innovation. 35 Shandong Hi-speed Company Limited Corporate Social Responsibility and Environmental, Social and Governance Report 2020 « Safe Travel and Win-Win Cooperation 36

Growing Together with Suppliers

We regard suppliers as important partners, strictly control the quality of supply, standardize supply chain management, After the completion of each bidding project, the continue to empower suppliers, and strive to achieve sustainable development together. Company evaluates the bidding behavior of the In 2020, bidders and regularly conducts supplier assessment. We follow laws and regulations such as the Law of the People's Republic of China on Tendering and Bidding, The Company comprehensively assesses suppliers the Company signed contracts with and Regulations on the Implementation of the Law of the People's Republic of China on Tendering and Bidding, with a different focus and imposes fines on the suppliers 249 and internally formulate management systems such as Management Measures for Bidding and Procurement and corresponding directors of the maintenance project Management Measures for Non-bidding Procurement. We follow the principle of openness, fairness, impartiality, honesty department according to the monthly point deduction Including suppliers signed supplier’s and credibility, and protect the interests of the Company and the legitimate rights and interests of the parties involved in of road appearance assessment, 117 bidding for professional management and standardized operations. We require all units owned by us to formulate their integrity agreements own internal control systems in a targeted manner and establish a top-to-bottom bidding and procurement management We inspect the environmental and social performance system. of suppliers. Some projects require suppliers to provide ISO14001 or ISO45001 certification on Accounting for 47% We conduct systematic and hierarchical environmental management, and GB/T28001 or management of bidding projects, which are OHSAS18001 certification on occupational health divided into Type I projects, Type II projects and and safety. The Company signed a supplier’s integrity other projects. The whole process management agreement with each supplier. In 2020, the Company In 2020, is implemented for Type I and Type II bidding signed contracts with 249 suppliers including 117 In 2020, projects through the smart bidding system. suppliers signed supplier’s integrity agreements, the Company signed contracts with In addition, we have established a complete accounting for 47%. we completed 28 bidding projects bidding management process to ensure the suppliers orderliness and fairness of the bidding process. In 2020, the Company signed contracts with 249 249 In 2020, we completed 28 bidding projects, suppliers, including 197 enterprises within the 18 Type I projects including 18 Type 1 projects and 10 Type 2 province, and 52 suppliers in the Chinese Mainland Including 197 enterprises within the province projects. The total amount of bidding projects outside Shandong Province. was RMB 949 million and the amount by winning suppliers in the Chinese Mainland outside 10 Type II projects bidding was RMB 896 million. We also finished 52 127 non-bidding projects The total amount of Shandong Province non-bidding projects was RMB 168 million and The total amount of bidding projects the amount by winning bidding was RMB 152 was RMB 949 million million.

The amount by winning bidding was RMB 896 million

Finished 127 non-bidding projects

The total amount of non-bidding projects was RMB 168 million

The amount by winning bidding was RMB 152 million 37 Shandong Hi-speed Company Limited Corporate Social Responsibility and Environmental, Social and Governance Report 2020 « Safe Travel and Win-Win Cooperation 38

Safe Operation

In terms of safety in production, Shandong Hi- company-level hazards, defined control measures for "questionnaire-styled" inspections on the high rise external training. We launched a safety-related open speed adheres to the policy of “life first, safety first, each security risk, established a hierarchical dynamic buildings fire management and construction sites class entitled "eliminating hidden dangers of accidents prevention first, and comprehensive management”, control account, and realized dynamic risk tracking of reconstruction, expansion projects, which further and strengthening safety lines of defenses", which and builds a full-process safety management and and control. improved the professional detection of unforeseen was lectured by the Company's general manager, control system based on precise risk management hazards. increasing the sense of urgency, responsibility and and control while also creating the safety brand of In order to promote the regular implementation of consciousness of all units at all levels to implement “Shandong Hi-speed Smoothness and Safety 365”, safety inspections, the Company conducts various The Company carries out many safety publicity and safety-related work. While leveraging the unique strengthening the awareness of the red line, and forms of safety inspections throughout the year. In education every year to continuously strengthen and advantages of internal lecturers, we actively maintaining the existing position of safety. 2020, we carried out the potential safety hazards improve employees' awareness and quality of safety. introduced external teachers to implement teaching discovery activities and discovered 5,227 potential We compiled standard regulations of safety for office on demand. We carried out special lectures on The Company continues to improve the safety in safety hazards for investigation and rectification, operation, and entry instructions on workplace safety advanced safety philosophy such as training on the production management responsibility system creating a good atmosphere where everyone management information system organized special safety management personnel qualification and and builds a complete responsibility chain including investigates hidden hazards and guarantees safety". training on system entry and safety hazards discovery overall concept on safety and improved the literacy responsibility breakdown, supervision and inspection In addition, we invited third-party social service and searched for safety management models within on the safety of safety manager of all units. In 2020, as well as evaluation, rewards and punishments. The agencies and regulatory agencies in the industry to the Company to provide efficient safety guide. We Shandong Hi-speed witnessed no safe production Company signs the letter of responsibility in safety in conduct external safety inspections and experts in fire improved employees' knowledge and practice in accidents due to dereliction of duty throughout the production goal with the units owned by Shandong protection and engineering construction to conduct safe production with online and on-site internal and year. Hi-speed and also signs the safety in production responsibility agreement at all levels to break down the responsibility to the organization and each employee at each level, forming a safety responsibility network covering all employees, processes, and areas. Meanwhile, we strengthen the implementation of emergency management responsibilities and issued special documents specifying the division of responsibilities, reserve standards, and time to ensure that emergency supplies for natural disasters, accidents and disasters, and public health issues in all units are in place on time.

We promote hierarchical management and control mechanisms for safety risks, carry out identification of hazards, risk assessments and control activities in accordance with the principle of “comprehensiveness, systematic manner, multi-angle, and no omissions”, and launch management and control of safety risks layer by layer. In 2020, the Company identified more than 3,000 security risks at all levels, confirmed 221

Systematic manner

Comprehensiveness Multi dimension

No omissions Principle 39 Shandong Hi-speed Company Limited Corporate Social Responsibility and Environmental, Social and Governance Report 2020 « Green Environmental Protection and Clean Operation 40 41 Shandong Hi-speed Company Limited Corporate Social Responsibility and Environmental, Social and Governance Report 2020 « Green Environmental Protection and Clean Operation 42

The Company also put forward new requirements on environmental protection compliance and ecological protection Green Construction of project maintenance and established a special construction environment coordination department to coordinate drainage and irrigation systems, floating dust, coordination and repairs of temporary projects, sewage discharge, water and soil conservation, and many other environmental issues that may affect construction. In addition to complying with environmental protection regulations, the Company also promotes requirements of green environmental protection In the process of project construction, the Company always follows the principle of "maximum protection, strictest to relevant parties and implements an environmental protection responsibility system for contractors; assigns full- control, minimum damage, and strongest maintenance", and takes multiple measures simultaneously to build a green time environmentalist to implement various environmental protection measures; conducts environmental education expressway and achieve the goal of achieving standard environmental protection and integrating into nature. for construction personnel and holds them responsible for construction sites and their surrounding environment and ecological protection work. All construction projects strictly follow the national energy-saving design standards, implement more power, water, and energy-saving measures for construction, work for better process management and control. The Company lists the Shandong Hi-speed is well aware of the importance of biodiversity protection and restoration of biological habitats. indicators of environmental protection and safety, quality, and progress as assessment goals at the same time, and During the construction process, the Company follows the Technical Guidelines for Environmental Risk Assessment adopt a series of management and technical means for environmental management: of Construction Projects of the People's Republic of China. The selected construction site of the project is away from wetlands, and wildlife habitats; protected measures are adopted to respect the locals and reduce the impact on the community.

Require plans and measures for resource conservation and environmental protection in each project, improve the construction plan, construct properly, and strengthen environmental monitoring based on the characteristics of the project. Green business card for the reconstruction and expansion project of Jinan- Case Qingdao Expressway

Conduct technical clarifications to avoid wasting manpower, material and financial In June 2017, the Ministry of Transport approved the project to implement the green technology resources caused by rework, thereby reducing raw material and fuel consumption. demonstration project for the reconstruction and expansion of the Jinan-Qingdao Expressway. Around the concept of greenness, the reconstruction and expansion project focus on 5 special key technologies, that is, "integrated design and construction throughout the life cycle, construction transportation organization and safety assurance improvement with uninterrupted traffic, recycling of old road materials and bulk Actively promote environmentally-friendly new technologies, new materials, new industrial waste, ecological protection and energy-saving and emission reduction, and improved efficiency equipment and new processes. in information construction, management, and maintenance". The Company researched, promoted and applied 27 technological sub-projects.

There is mostly high-quality arable land along the road of Jinan-Qingdao Expressway. The land resources are precious, so it is impossible to bury or temporarily store waste materials. Therefore, the disposal Actively promote the recycling of waste to minimize the impact of construction on the of old road materials such as many milling materials, concretes, and corrugated-beam steel guardrails environment. generated during the construction process is an urgent problem that needs to be resolved. By high-quality cold recycling, recycling waste concretes into aggregates, recycling guardrail, waste materials can be processed and recycled and the utilization rate has reached 100%; and through the development and Eliminate building earthworks through measures such as roadbed backfilling, local application of new technologies, the Company is the first in the world to make red mud, the solid industrial municipal planting, and construction of access road, with a reuse rate of 90%, effectively waste, harmless and apply them to expressway construction, providing an effective way to resolve the reducing the occupied land resources. Hazardous wastes are transported to designated problem of red mud pollution. The reconstructed and expanded Jinan-Qingdao Expressway has become discharge places for safe and proper disposal according to their different characteristics. a veritable modern green expressway with "safety and durability, resource utilization, energy conservation and environmental protection, and wisdom sharing".

Set up a level-3 sedimentation tank to treat wastewater produced during construction. The treated wastewater is used to mix concrete and reduce dust in the mixing plant, with The Company's resource consumption in office in 2020 a reuse rate of 100%.

The construction site adopts dust reducing measures such as an automatic water spraying system, water truck, and dust control measures including green net coverage, Consumption of Consumption of Consumption of Water consumption Gasoline consumption and planting of turf and grass seeds. electricity natural gas liquefied petroleum gas in office of official vehicles 127,314,400 613,300 275.35 599,600 1,780,400 kWh cubic meters tons tons liters 43 Shandong Hi-speed Company Limited Corporate Social Responsibility and Environmental, Social and Governance Report 2020 « Green Environmental Protection and Clean Operation 44

Green Maintenance Material Saving and Recycling

The Company has continuously increased investment in key technologies such as material saving and recycling in Preventive Maintenance the maintenance process and has formed a series of energy-saving and emission-reduction programs suitable for expressway maintenance. We widely adopt various recycling technologies. Through the recycling process, we maximize the use of waste asphalt mixtures, saving a lot of raw materials, reducing the damage to the ecological environment Compared with traditional maintenance methods, preventive maintenance represents the best way to reduce the caused by stone mining, and also occupying fewer land resources due to stone mining and waste asphalt mixture maintenance cost of the whole life cycle of roads, and it enjoys the obvious advantages of being green and low-carbon. stacking. In response to the damage of the guardrail board, the Company actively explores the shaping technology of the The Company actively adopts new technologies and new materials for preventive maintenance of roads. The application waste guardrail board and reuses the old guardrail to reduce waste. of micro-surface technology, fog seal technology, ultra-thin anti-skid surface technology, bridge jacking technology without interrupting traffic, bridge external prestressing technology, and cable replacement technology for the cable- The in-situ thermal recycling unit, researched and developed by the Company and others, is currently the leading multi- stayed bridge is the industry leader in China. step on-site recycling equipment for asphalt pavement in China. It has been widely promoted in Shandong, Jiangsu, Guizhou, Inner Mongolia, Tianjin, Zhejiang and other provinces, regions and cities, and well received by the industry. For the first time, the equipment can simultaneously add hot asphalt, regenerating agent, warm mix agent and new Linzao Maintenance Sub-center applies asphalt mixture, so it forms a set of mature recycling system covering pavement applicability investigation and research, TL-2000 preventive maintenance concrete mix design, construction technology, quality control, and follow-up inspection and evaluation, greatly improving technology construction technology. After removing the rust from the rusty swelling In 2020, the Company recycled 5943m³ of waste asphalt and saved 10,924 tons of basalt, 716 tons of SBS modified steel bars of the guardrail, the Linzao Maintenance asphalt, 1,290 tons of mineral powder, 1,240 tons of limestone, and 52 tons of Grade 70 asphalt. Sub-center tries to repair it with rust-resisting mortar, spray the exterior coating, and apply TL- 2000 (asphalt) to the bottom of the anti-collision In 2020, guardrail, which effectively prevents the snow removing and melting agent from corroding the the Company recycled Saved 10,924 tons of basalt 716 tons of SBS guardrail in winter while restoring the guard bar. 5,943m³ of waste asphalt modified asphalt

Zaozhuang Maintenance Sub-center pioneered the disposal method of "high tons of mineral powder tons of limestone tons of Grade 70 asphalt polymer quick repair material plus CSC 1,290 1,240 52 anti-skid ultra-thin sealing material"

After continuous exploration in the maintenance practice, Zaozhuang Maintenance Sub-center has Road Vegetation Maintenance pioneered the disposal method of "high polymer quick repair material plus CSC anti-skid ultra-thin In terms of road vegetation maintenance, Shandong Hi-speed actively maintains road cleaning and greening based on sealing material". The high polymer quick repair actual conditions so that the central zone is flat and free of weeds, and the road appearance has been greatly improved; material is adhesive to the asphalt pavement on the Company takes multiple measures to ensure that the main road and the ramp in the interchange area are clean, and the basis of thin construction layer and is not easy use the existing idle assets and blank areas to grow seedlings in nutrition bowl. In 2020, the Company upgraded and to fall off in the later stage and can harden faster., transformed the planting in five ramp circles in the north section of Jinan along Jinan-Qingdao Expressway, including thereby shortening the closing time of expressways Airport Interchange, Cuizhai Interchange, Jinjia Interchange, Biaobaisi Interchange, and Jiaobin Interchange, witnessing and minimizing the impact on traffic. At the same a brand new outlook along the route. time, the black anti-skid ultra-thin sealing material is used to apply the part which is repaired, eliminates the color difference with the asphalt Noise Reduction pavement and maintains a good road appearance. The Company actively adopts measures including installing new noise reduction devices and replacing sound barriers to reduce the impact of road noise and prevent noise pollution. Jinan Maintenance Sub-center along the Jinan- Qingdao Expressway has adopted a new type of shock-resistant and noise-reducing expansion device to replace the 6-lane DS160 expansion joints of the Yellow River Third Bridge in Jinan, which reduces road noise and subsequent maintenance costs, and improves safety; the 3390-meter sound barrier was replaced along the Zibo section of Jinan- Qingdao Expressway and Jinan-Laiwu section of the Beijing-Shanghai Expressway. 45 Shandong Hi-speed Company Limited Corporate Social Responsibility and Environmental, Social and Governance Report 2020 « Green Environmental Protection and Clean Operation 46

Green Service Emergency Handling

The Company formulates environmental risk emergency plans, continuously improves the pertinence and operability of Shandong Hi-speed actively implements the operation concept of green service and provides green, reliable, efficient environmental risk emergency plans, and reduces environmental risks in sudden environmental risk accidents. When an and high-quality services to the public through measures such as promoting ETC lanes and toll gate reconstruction on environmental emergency occurs, the Company responds in a timely manner. Road management personnel cooperate expressways. with multiple departments such as environmental protection, fire protection, first aid, and traffic police to carry out obstacle clearance and rescue and road cleaning. The timely, proper and professional handling makes environmental risks of the incidents controllable. Promoting Lanes for ETC Case Treatment of gasoline leak

The Company promotes lanes for ETC. As of the end of 2020, a total of 556 lanes for ETC have been opened, and lanes On March 12, 2020, a large truck scratched a hazardous chemicals transport vehicle (which is loaded with for ETC in toll gates has covered all place under its jurisdiction. The ETC lanes improve the road and bridge operation gasoline) in the westbound direction of the K99 North Line of the G2001 Jinan Ring Expressway, resulting in and management mode reduced personnel, and enhance traffic efficiency. In addition, it provides good and convenient a gasoline leak. The road management personnel cooperated with multiple departments to efficiently clean services. The number of Lutong Card issued and the amount of recharge has been steadily increasing, thus raising the the road and control environmental risks. proportion of non-cash payments.

Lanes for ETC can efficiently save energy and reduce emissions, and can effectively reduce pollutant emissions during driving. Research shows that each vehicle passing through ETC consumes 0.03 liters less fuel than those passing through lanes for manual toll in each trip, emits about 0.7 gram less CH compound, 4.7 grams less CO compound and 0.3 gram less NO compound per trip. Also, 10,000 ETC transactions will save 314 liters of fuel and reduce the emission of various pollutants by 55.96 kg.

The scene of oil cleanup

Case PassCode System is launched on Jinan-Qingdao Expressway

In June 2020, the PassCode system jointly Green Office developed by the Company and the Expressway Traffic Police Corps of Shandong Provincial Public Security Department was officially The Company integrates the concept of sustainable development into every link of the Company's operations, starts launched on Jinan-Qingdao Expressway. The from the details, and takes practical actions to contribute to green and low-carbon office. The Company promotes office launch of the system disturbs the inherent automation, requires employees to use paper on both sides as much as possible, promotes the recycling of office mode of the traditional extensive management supplies, and effectively reduces the use; extensively carries out publicity on energy-saving, posts energy-saving signs, of traffic control. The PassCode management publishes proposals to create an energy-conserving atmosphere; actively advocates garbage sorting, practices low- measures can effectively improve the utilization carbon life, and creates a good office space; contributes to energy saving and emission reduction, and creates a green rate of highways, conserve energy and reduce culture in the office. emissions, and also provide a smart and green new experience for public travel. In terms of water and electricity conservation, the Company sends personnel to conduct regular inspections and maintenance to prevent "long-flowing water", deal with the problem of "water running, spilling, dripping, and leaking" in a timely manner, properly reuse water resources, and improve the utilization rate of water resources; to advocate for PassCode on Jinan- turning off lights when employee leaves, widely apply energy-saving technologies such as intelligent light control, and Qingdao Expressway air-conditioning temperature control, establish an electricity management system and conduct quantitative assessments. 47 Shandong Hi-speed Company Limited Corporate Social Responsibility and Environmental, Social and Governance Report 2020 « Green Environmental Protection and Clean Operation 48

In terms of waste treatment, the Company organizes unified storage and centralized recycling of waste batteries, In terms of official vehicle management, the Company formulated the Vehicle Management Measures and Vehicle replaces old toner cartridges and ink cartridges with new ones, and recycles waste electrical and electronic products; and Driver Safety Management Measures to detail vehicle energy-saving measures, effectively control the frequency sets up bins for waste medical materials during the pandemic period, timely disinfects them, and submit them to the local of running vehicles, promote green travel, prioritize carpooling, and encourage employees to take shuttles and public epidemic prevention department for centralized treatment regularly, striving to achieve waste reduction, recycling and transportation for commuting; regularly organize skills training, business competitions, carry out fuel-saving rewards, harmlessness. The wastes generated by the Company's operations in 2020 were as follows: reduce exhaust emissions, and mitigate environmental pollution; promptly eliminate old vehicles that exceed standards and reduce gasoline use.

Type of wastes Quantity Green Investment

Waste lamps 2,769 Lucid waters and lush mountains are invaluable assets. We adhere to green development, committed to sharing green benefits with society. During the "13th Five-Year Plan" period, the Company moved into environmental protection based Waste printer cartridges 2,043 on its main business industry value chain, continuously innovated investment models and broadened its development distribution. The Company is the third-largest shareholder of Longma Environmental Sanitation Equipment Co., Ltd. and has a seat on the board of directors. It invests in and operates the sewage treatment plant in Hanting District, Weifang; in Waste batteries 11,631 terms of the main industry chain, the Company participates in the establishment of Shandong Hi-Speed Green Ecology Development Co., Ltd., and the establishment of Shandong Hi-speed Yuhetian (Shandong) City Operation Service Co., Waste ink cartridges 1,007 696 recycled Ltd., continues to thrive on the environmental protection sector and realize the upstream and downstream extension of （ ） the main business industry chain.

Waste paper 5,074 bags

Domestic waste 3,418.78 tons

Kitchen waste 832.44 tons 49 Shandong Hi-speed Company Limited Corporate Social Responsibility and Environmental, Social and Governance Report 2020 « Putting People First for Common Development 50 51 Shandong Hi-speed Company Limited Corporate Social Responsibility and Environmental, Social and Governance Report 2020 « Putting People First for Common Development 52

In order to build a fair and just work environment, Shandong Hi-speed strictly implements the Company's system of Salary Respecting the Rights and Interests of Employees and Benefits Management Procedures, establishes a relatively complete reform system for three systems, and continues to optimize the human resources information system to effectively protect the rights and interests of employees. The Company has established a medium- and long-term incentive system to fully use salary to motivate employees. Through post-fixed salary, post-specific salary, employee assessments, rewarding the diligent and punishes the lazy. We ensure that each employee enjoys Shandong Hi-speed employs people legally fair and just access to jobs. In addition, the Company has established and improved a wage payment guarantee mechanism and and compliantly to create fair, just and open paid employees’ wages in full and on time in the form of currency in accordance with the labor contract. At the same time, the jobs for all employees and candidates. We In 2020, Company strives to sign labor contracts with and conduct performance appraisals for all employees and the results are linked adhere to the principles of equality between the Company organized recruitments and with salary. men and women, equal pay for equal work, 4 and non-discriminatory employment, create In addition to the base salary, the Company protects employee benefits and personal privacy. We purchase social insurance an equal and diverse work environment, created 177 jobs for society and housing provident fund and other national statutory benefits for employees in strict accordance with relevant national respect the customs of ethnic minorities, and regulations. In 2020, the Company introduced the Supplementary Medical Insurance Measures and other management systems, treat employees of different nationalities, which improved the supplementary medical standards for employees and expanded the scope of assistance. It provides races, genders, ages, religions and cultural supplementary medical insurance for employees to the greatest extent possible, helps employees reduce the burden caused backgrounds fairly. In 2020, the Company by serious illnesses, and improves the level of medical insurance for our current employees and retired employees. In order to organized 4 recruitments and created 177 guarantee employees benefits after retirement, the Company has also established corporate self-determined benefits such as jobs for society. corporate annuities. In 2020, all employees in the Company accepted medical examination and social security. In addition, by improving the employee information confidentiality mechanism and setting up a full-time personnel information administrator responsible for viewing and maintaining the basic personal information of our employees, the personal privacy of our employees was effectively protected. In 2020, the Company's workforce structure was as follows:

Distribution by personnel Case The Company officially launched an equity incentive plan

Employees in the major subsidiaries Employees in the parent company In 2020, Shandong Hi-speed launched an equity incentive plan for the first time, intending to offer 48 million 1,040 17.15% 5,024 82.85% stock option incentives for the Company's senior executives, middle management and other key personnel, including 16 senior executives, such as the chairman and general manager, 111 middle-level managers, and 60 other key personnel. The implementation of the equity incentive plan greatly stimulated employees’ sense of ownership and the Company's innovative vitality and demonstrated to the capital market the effective Total number of improvement of corporate governance and confidence in development. employees 6,064 100% Employees in the parent company

Employees in the major subsidiaries

Educational structure Professional structure

Below junior Administration staff Postgraduate college Financial staff 621 10.24% 447 7.37% 605 9.98% 95 1.57% Technicians 956 15.77%

Junior college Production worker Salesman 4,376 72.16% 1,873 30.89% 16 0.26% Undergraduate 3,139 51.76%

Postgraduate Junior college Production worker Financial staff Technicians Undergraduate Below junior college Salesman Administration staff 53 Shandong Hi-speed Company Limited Corporate Social Responsibility and Environmental, Social and Governance Report 2020 « Putting People First for Common Development 54

In order to provide better care for employees, we organized and carried out the heart-warming activities of "Care in Spring", Facilitating Employee Development "Cool in Summer", "Golden Autumn Aid for Education" and "Warmth in Winter". We appropriated over RMB 1 million to vigorously explore new carriers and methods for employee care and support. We continue to extend greetings to employees for their marriage, childbirth, sickness, funeral, retirement and during two festivals, promptly conveying the warmth from the union organization to the hearts of employees. For sick employees, the Company has improved the three-level assistance mechanism: Shandong Hi-speed attaches great importance to the comprehensive quality and career development of our employees, grassroots labor unions, company labor unions and superior labor unions, and provided more than RMB 100,000 aid funds, provides them with a wider stage for development, empowers employees to grow together with the Company. enhancing employees' sense of security and corporate cohesion. In addition, the Company carried out a wealth of offline According to the Company's annual training plan, we provide front-line employees with management training, system training, activities under the pandemic prevention regulations by holding sports events to enhance the physical fitness of employees, skills training, professional training, safety training, and other skills training, and encourage employees to actively improve carrying out family cultural activities to enrich the spiritual world of employees, and helping to create a virtual atmosphere where their academic qualifications. On the basis of general training for employees, each road and bridge operating unit focuses on employee love company as much as their home and joint building of home and company. strengthening the training on new toll system, mast system, professional knowledge of ETC fee display and clearing system and Sports activities mechanical and electrical equipment maintenance, aiming to train employees with multiple skills for one post and improve their professional capabilities. In 2020, various departments, operation management centers and subsidiaries of the Company carried out a total of 538 training sessions and organized more than 800 training activities.

In order to ensure the fairness, impartiality and openness of employee appointment and promotion and provide employees with multi-sequence development channels for vertical promotion and horizontal communication, we revised and upgraded the Post Management Measures, designed a career development channel system consisting of 3 post sequences, 18 ranks and 26 levels of positions, regulated the relevant qualifications for the selection of first-line outstanding employees to serve as professional technicians at the system level. We have also set up the position - engineer in charge and deputy chief engineer - for road and bridge and information engineers to broaden the upward mobility for dedicated professional technicians of high professional competence. In 2020, in accordance with the requirements of the Vocational Skills Appraisal and Evaluation Center of the Shandong Provincial Department of Human Resources and Social Security, the Company drafted and completed Table tennis competition Walking activities at Weifang East Toll Gate the work plan for toll collector and supervisor self-assessment to help employees supervise and promote themselves.

Family cultural activities

In 2020,

In 2020, various departments, operation management centers and subsidiaries of the Company the Company organized recruitments and 4 carried out a total of 538 training sessions created jobs for society 177 Organized more than 800 training activities Parent-child outdoor development activities by Jinan Transportation Museum Visiting by Dezhou Transportation Management Cente Management Center along Beijing-Taipei Expressway

Caring for Employees' Life

Outside work, we fully respect and care for employees’ personal life, hope that employees can develop a healthy lifestyle and positive attitude towards life while working, and feel the warmth from the Company, through our active guidance. Cultural Corridor Visiting by Weilai Transportation Management Center Theme Sharing Activity Entitled "Good Habits Helping Me to Grow" by In 2020, we have established employee communication channels and the "Corporate WeChat Colleagues Group", through Weifang Transportation Management Center which employees can log in and post at any time to make suggestions and share advanced experience. The Company listened to the voices of front-line employees through such channels, collects their feedback and provides timely assistance to effectively During the special times of the COVID-19, we pay special attention to the health, safety and real needs of employees, especially motivate employees to work. those working in frontline positions. The Company raised and allocated more than RMB 550,000 special funds to purchase pandemic epidemic products such as disinfectants and masks, and issued anti-epidemic kits when anti-epidemic materials were In order to facilitate the work for female employees, since 2020, the grassroots labor unions have built seven "Loving Mothers in short supply; visited and supported the families of medical workers aiding in Wuhan, frontline employees who long work in Room". Among them, "Mother Room" in Xiajin Toll Gates and Ganggou Toll Gates was awarded a license by the Provincial remote places and employees and families who had recovered from COVID-19 to help solve their practical problems. In order Federation of Trade Unions. In addition, the Company invested more than RMB 100,000 special funds to set up "The Class at to coordinate the pandemic prevention and control and the resumption of work and production, the Company immediately 4:30 PM" and "Mom Class" to create a "Room plus" service model, which effectively enhanced the sense of gain, happiness and organized and launched a competition “Fighting Against COVID-19, Guaranteeing Work Hour, Pursuing Contributions” to security of female employees, and stimulated their spirit of hard work and entrepreneurship. improve employees’ awareness of pandemic prevention and control and motivate them. 55 Shandong Hi-speed Company Limited Corporate Social Responsibility and Environmental, Social and Governance Report 2020 « Jointly Combating COVID19 and Supporting Communities 56 57 Shandong Hi-speed Company Limited Corporate Social Responsibility and Environmental, Social and Governance Report 2020 « Jointly Combating COVID19 and Supporting Communities 58

The "First Secretaries" of Shandong Hi-speed to carry out poverty alleviation work Social Welfare Case study in the village. According to the unified deployment of the central government, Shandong Provincial Party Committee and provincial government, in 2020, the Company has sent the "First Secretary" to continue to carry out a series We responded to the call of the Party and the country and carried out works in industrial assistance, infrastructure of poverty alleviation projects in Dali Village, Yidukou, Lingcheng District, Dezhou City, Zhangzhuang and renovation, pandemic prevention and control, and improvements of rural living conditions. Additionally, by promoting Niulou Administrative Village, Wudian Town, Mudan District, Heze City. Details are as follows: accurate poverty alleviation and continuously consolidating the corresponding results, we have made unique The "First Secretaries" in Zhangzhuang Village and Niulou Village helped the villages build achievements in rural revitalization. photovoltaic power generation projects followed by building poverty alleviation workshops, which improved collective economic income in the villages and enhanced the supports for the poor households. Besides, the Company also worked to promote the construction of beautiful Report of the Company's poverty alleviation work in 2020 countrysides through applying for assistance funds to reconstruct dilapidated households, village cultural centers and upgrade village-level party-building facilities. Moreover, the construction of village lighting, beautification projects and the household-to-household communication project have also been conducted.

With a total capital investment of RMB million. We used RMB million for materials 1.22 4,700 We’ve set up a college entrance examination award fund in Zhangzhuang Village to carry out and helped people out of poverty. donations and student assistance activities. A youth entrepreneurship fund is also in place to 234 support villagers' entrepreneurship.

The "First Secretary" in Niulou Village actively supported Yimao Flower and Agriculture Cooperative as the leading role of industrial demonstration, which absorbed 7 poor households for employment, with an annual output value of more than RMB 2.1 million, helping the village to become a well-known "Rose Village". Education for poverty Industrial poverty alleviation Employment transfer alleviation In combination with the epidemic prevention, control and the resumption of production, the "First Secretary" in Dali Village continued to promote the implementation of farmland irrigation 3 industrial poverty alleviation With the investment of RMB renovation and poverty alleviation projects, solving problems such as villagers' difficulty projects RMB 50,000 irrigating the land by installing a new system. with an investment amount of 100,000 was invested in aiding in vocational skills training, When a shortage of epidemic prevention materials happened at the initial stage of the RMB 1,047,500 epidemic, the Company's "First Secretaries" in villages hastily contacted the manufacturers, we’ve helped 3 poor students. purchased disinfectant to distribute for free to the villagers, especially the ones in greater need. Through guiding villagers to scientifically disinfect courtyards and houses, the local epidemic helping 234 people 7 poverty-stricken people prevention and control ability has been further enhanced. out of poverty; to obtain employment;

We’ve visited households in need and sent daily necessities to major festivals.

At the National Summary and Commendation Conference on Poverty Alleviation, the "First Secretaries" team selected by Shandong Hi-speed in Mudan District of Heze City was commended by the CPC Central Committee and the State Council as the national advanced collective for poverty alleviation, and it was the only team in Shandong provincial enterprises that won this honor.

Carrying out agricultural products Conducting donation activities in exhibition activities in the service area primary school of supporting villages 59 Shandong Hi-speed Company Limited Corporate Social Responsibility and Environmental, Social and Governance Report 2020 « Jointly Combating COVID19 and Supporting Communities 60

Combating the Epidemic Through Joint Efforts

Shandong Hi-speed fulfilled its corporate social responsibility to the highest degree in the battle against the epidemic. After the outbreak, the Company rapidly mobilized 197 grass-roots party organizations and 2,379 party members into a wartime state for anti-epidemic actions and deployed work correspondingly in key positions and areas of the front line such as toll collection, road management, maintenance, information and service areas. Our employees also provided assiduous services for medical workers, drivers, passengers and the public at the front line of prevention and control of expressways and service areas, especially in key areas such as Hubei Wujing Company.

As a state-owned enterprise, we shouldered our mission and actively cooperated with local governments and relevant departments to carry out joint prevention and control. We’ve installed epidemic prevention inspection points in toll stations The Company also carries out a variety of voluntary and public welfare activities. Party committees at all levels have to achieve full export coverage also other inspection points in service areas under jurisdiction are in place to assist local organized several volunteer activities in different formats, such as blood donation, planting trees, cleaning up white health authorities for vehicle detection and investigation. The Company strictly implemented the requirements of the waste, preventing snow from slipping, helping students with education, caring for left-behind children, and helping poor Ministry of Transport on "Three No, One Priority" for vehicles carrying emergency materials for epidemic prevention and students in pairs, etc. Therefore, by setting up "Pioneer Post for Party Members" and "Volunteer Service Team for Party control and set up a fast lane to release emergency materials for free and fast transportation. Whilst doing a supreme Members", we have contributed to spreading environmental protection concepts, helping education and extending job in epidemic prevention and control, we made precise arrangements for resuming work and production, and did their love and care. In addition, we receive retired and resettled soldiers every year to promote local employment. They are utmost to ensure smooth roads, providing comprehensive service guarantee during the most difficult time. arranged to work in front-line posts such as toll stations and road management centers with pre-job training to adapt to Apart from guaranteeing clear roads, the Company also called on sharing kindness to the society and workers to show job requirements as soon as possible. their commitment. With the momentum of donations to the epidemic areas, we’ve raised more than RMB 700,000 for those most in need, interpreting the responsibility of state-owned enterprises with practical actions, and rallying high Case study Environmental protection activities facilitate ecological civilization construction morale to win the battle till the very end.

Shandong Hi-speed actively undertakes eco-responsibilities in actions such as creating a green environment, setting up a green concept and spreading a green civilization. All relevant organizations also implement environmental protection concepts into practices.

Dezhou Transportation Management Center took Arbor Day as an opportunity to carry out green protection actions, tree planting and “adoption” activities to enhance the awareness of caring for trees and protecting the environment. Incorporated with the "Youth Day" on May 4th, we put forward the volunteer activities of "Love and Health, Healthy You and Me" and organized young employees to pick up garbage in public places such as scenic spots and parks. Also, we participated actively to create a civilized city of Dezhou, organized party members, cadres and workers to go into communities and streets for cleaning up and distributing environmental protection brochures, which jointly practice the idea of environmental protection for strengthening urban civilization.

Linyi Transportation Management Center sent employees to branches and communities to publicize and popularize health knowledge, in ways of conducting voluntary tree planting, health campaign and beautify their homes as planned by environmental protection activities such as Arbor Day education, Theme Day of learning Lei Feng’s spirits and title events of "Labor makes me look beautiful" and "Live a health and civilized life".

In December 2020, Shandong Hi-speed Party Committee won the honorary title of "Shandong Advanced Collective in Fighting COVID-19 " jointly awarded by the Shandong Provincial Party Committee Organization Department, Human Resources and Social Security Department Tree planting activities lunched by Dezhou Voluntary garbage picking activity and Health Committee. 61 Shandong Hi-speed Company Limited Corporate Social Responsibility and Environmental, Social and Governance Report 2020 « Corporate Social Responsibility and Environmental, Social and Governance Report 2020 62

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