Seazen : 2021 Environmental, Social and Governance Report

ABOUT THE REPORT

Seazen Group Limited (the "Company", stock code: 1030) is pleased to present the 2021 Environmental, Social and Governance Report (the "Report") of the Company and its subsidiaries (collectively the "Group", "Seazen" or "we"). The Report discloses Seazen's major actions and achievements in environmental, social and governance ("ESG") aspects in 2021, and responds to the expectations and concerns of various stakeholders on the Group's sustainable development performance in a targeted manner.

REPORTING SCOPE

The Report includes the Group's principal activities: property development & investment operations and commercial management business during the period from 1 January 2021 to 31 December 2021 (the "Reporting Period"), and part of this Report covers the first and second quarters of 2022. The environmental KPIs disclosed in this Report cover the Group's urban complex operations. In 2021, the number of urban complexes included in the statistical scope was

124. There is no significant adjustment to the reporting scope compared with the 2020 Environmental, Social and Governance Report.

Details of corporate governance can be found in the "Corporate Governance Report" of the Company's Annual Report 2021.

RESPONSE TO THE REPORTING PRINCIPLES

The Report is prepared in line with the Environmental, Social and Governance Reporting Guide (the "ESG Guide") set out in Appendix 27 to the Rules Governing the Listing of Securities (the "Listing Rules") on The Stock Exchange of Hong Kong Limited (the "Stock Exchange"). During the preparation of this Report, the Group complies with the principles of "Materiality", "Quantitative" , "Consistency" and "Balance" stipulated in the ESG Guide:

"Materiality": The Group has identified material ESG issues through communication with stakeholders and listening to their expectations and concerns. For details, please refer to the sections headed "Management of Stakeholders" and "Management of Material Issues".

"Quantitative": Information on the standards, methodologies and source of conversion factors used for the reporting of emissions and energy consumption has been disclosed. For details, please refer to the section headed "Low Carbon Operation".

"Consistency": The statistical methods and KPIs in the Report are consistent with previous years.

"Balance": The Report provides both positive and negative information about the Company in an unbiased manner.

Meanwhile, the Report makes extensive reference to the following domestic and foreign advanced disclosure guidelines:

• Global Reporting Initiative Sustainability Reporting Standards (GRI Standards)
• United Nations Sustainable Development Goals (SDGs)
• Task Force on Climate-related Financial Disclosure (TCFD) disclosure recommendations on climate change risks and opportunities
• Chinese Academy of Social Sciences China Corporate Social Responsibility Reporting Guidelines (CASS-CSR4.0)
• Social Responsibility National Standard Social Responsibility Guidelines" (GB/T 36000-2015)
• Shanghai Stock Exchange Guidelines for Environmental Information Disclosure of Listed Companies

CURRENCY

Unless otherwise specified, all monetary qouted in the Report are presented in Renminbi ("RMB").

REPORT AVAILABILITY

The Report is available in electronic version which can be viewed and downloaded on the Group's website (http:// seazengroup.com.cn) and the HKEXnews website (http://www.hkexnews.hk).

CONTACT

Capital Market Division, Seazen Group Limited

Address: Floor 11, Seazen Tower B, No. 5, Lane 388, Zhongjiang Road, Putuo District, Shanghai, PRC

Postcode: 200063

Email: ir@xincheng.com

The Committee is pleased to publish the Company's 2021 Environmental, Social and Governance Report of the Company. This is also the fifth year of Seazen Group Limited's public disclosure of the work and achievements in the field of sustainable development. We would like to express our sincere gratitude to all sectors of society for their long-term attention and support to the Group!

Looking back on the past year, against the backdrop of the overall pressure on the real estate industry, we have strengthened our confidence, made steady progress, and integrated the concept of sustainable development into all aspects of the Group's business development from top to bottom. This year, Seazen maintained the Camel Spirit and driven by dual-core strategy of residential and commercial real estate to build the cornerstone of the development of the residential business, and promote the continuous improvement of commercial operations in the second growth curve. Together with, Seazen works with all employees and partners to steadily cross the industry cycle, seek for opportunities in risks, turn crises into new chances for development, repay every Seazen shareholder and investor with stable performance, protects the rights and interests of every Seazen owner and consumer with high-quality products, and help build a beautiful and happy society with responsible low-carbon environmental protection and public welfare actions. In 2021, MSCI upgraded our ESG rating to "BB" level based on our sustainable development performance, and our performance in "Product Safety and Quality" and "Corporate Governance" were better than those of our peers, reflecting the solid confidence of various stakeholders in the long-term investment value and sustainable development management level of Seazen.

In 2021, we focused on the key concerns of stakeholders and adhered to the concept of sustainable development in the overall strategy of Seazen Development. We synergized the sustainable development strategy with the key layout of business development, further optimized the sustainable development dimension of corporate governance, actively embraced green building development opportunities, implemented compliance and integrity management, effectively improved product safety and quality performance,

and ensured the occupational health and safety of employees and partners, and we have effectively identified and avoided the potential risks of the Group at the environmental, social and governance aspects, contributing to performance growth and financial stability.

In 2021, we seized the great opportunities for green building development, and promoted the sustainable green and low- carbon development of the construction and real estate industry based on our accumulated advantages over the year. In 2021, we accurately grasped the national strategies of "Carbon Peak by 2030" and "Carbon Neutrality by 2060", and as a guide in scientific planning, we compiled the Group's Green and Low-CarbonDevelopment Plan for 2022-2024.For the further implementation, we promoted green buildings development, strengthened green building certification, and continuously upgraded the prefabricated building technology system; issued the first green bond to open up diversified financing channels; focused on green development to build a green construction system with "Core Smart Construction" technology; improved green business operations and optimized the big data application of the "New Cloud Platform"; expanded renewable energy application and the proportion of renewable energy usage in commercial projects with the support of Wusheng Energy, and gradually influenced the supply chain and partners, contributing to the country's low-carbonemission reduction across the whole society.

In 2021, we always adhered to the mission of "making happiness simple", listening to the true voices of every individual in the tide of the times, and sharing the happiness results with customers, employees and partners. Customers are the most treasured wealth of Seazen. In 2021, we upgraded the "Happiness 360°" 3.0 version of customer service system and launched the "Happiness Experience Project" to create a comprehensive happiness experience for customers, iterating intelligent, diversified and humanized diversified high-qualityproducts to create a better life scenario for customers. Employees are the most valuable assets of Seazen, and every effort deserves to be respected. This year, we continued to strictly regulate the recruitment and talent training mechanism, provide sound

health and safety protections, and create harmonious and challenging working opportunities. As a result, Seazen has been awarded the title of "Best Employer in China" for 16 consecutive years and won the SHL China Talent Management Best Practice Award 2021. Partners are staunch companions of Seazen in pursuit of long- term happiness development. We are committed to responsible procurement and work with industry partners to promote the development in technology, quality, delivery, environmental protection, safety and other aspects to build a green and sustainable supply chain.

In 2021, "taking from and giving back to the society", we continuously contribute to a better society along with the comprehensive and high-quality development. During the year, we actively participated in urban renewal, brownfield transformation and sponge city projects, embracing into the ecological attributes and human-orientedperspectives, which projects in Hanjiang Road, Changzhou City and Guiyang City have initially explored new sustainable development model of urban renewal. We also insisted on the "Colorful Light Project", a large-scalepublic welfare brand created by the Group for 8 consecutive years, including a series of activities of Seazen Happy Charity Bazaar, "Glorious Library" project and New Green Action. In this year, Seazen Happy Charity Bazaar was launched in Xi'an of Shaanxi Province and Zunyi of Guizhou Province, to support rural revitalization by selling agricultural products online through live broadcast room. The "Glorious Library" project continues to be promoted across the country, creating a good reading environment for rural children. Meanwhile, employees, customers and partners are encouraged to actively participate in the New Green Action, and our tree planting resulting in the continuous expansion of the scale of "Seazen No. 1 Forest" and "Seazen No. 2 Forest", which achieved the strategic goal of million green trees planting half of a year ahead of schedule in advance, with a total of 100,000 saplings donating and about 1,000,000 sq.m. of desert greening completing in 2021, so that Seazen will continue to upgrade our efforts towards the next "five-yearplan" of "five million sq.m of desert greening". We also focused

on various public welfare activities such as supporting epidemic prevention and control, caring for education, and ecological protection, and urgently donated RMB 20 million to the Henan Charity Federation to assist the rescue and flood disaster relief work in Henan Province. In 2021, we are fortunate to be awarded the "2021 Responsible Brand Award" at the 11th Charity Festival of 2021, widely recognized of our practical actions from the society.

Looking forward, we will always adhere to the Camel Spirit of Seazen, actively respond to the uncertainty of the external environment with the stability of the core competence of Seazen, remain true to the original aspiration of integrity, pragmatism, low-carbon and sustainable development. We will join hands with investors, customers, employees, industry partners, society and other stakeholders, and strive to achieve mutual success on the journey of "Century-old Seazen, Sustainable Development".

Seazen ESG Committee

ABOUT SEAZEN

STEADY

OPERATION

NUMBERS IN SEAZEN

COMPANY PROFILE

Seazen was founded in Changzhou, Jiangsu province in 1993 and is headquartered in Shanghai. It is an industrial investment and operation group focusing on the construction of a happy life. In November 2012, the Company was listed on the Stock Exchange (stock code: 1030). In December 2015, Seazen Holdings Co., Ltd. ("Seazen Holdings"), a subsidiary of the Company, was listed on the Shanghai Stock Exchange (stock code: 601155). After 28 years of rapid development, the Group has become a comprehensive real estate group covering residential properties and commercial.

Total commercial operating income(i.e. tax- included rental income)

8.639 billion

Core profit attributable to the parent company

7.044 billion

CORPORATE CULTURE

Green

Building

Certification

Use of

renewable

energy

Green

Total green floor area of new residential developments

1,103 ten thousand sq.m.

Shopping center project won the National Green Building Operation Labeling

12 unit

Completed rooftop distributed photovoltaic power station and completed grid-connected power generation

149 ten thousand kWh

Issuance of 4.25-year green senior notes

Green building coverage of new residential development projects

100%

Wuyue Plaza declared through green shopping malls

11 unit

Annual reduction in carbon emissions

1,539.86 tonne

Finance

Casting

Happiness

Products

Creating

Happiness Experience

Seazen corporate culture and values

Building a

happy team

Happiness

and the World

7,609.34 ten thousand yuan

Employee online training coverage

100%

Total amount of charitable donations exceeded 7,000 ten thousand yuan

0 person

The Company's expenses for helping and sending warmth to employees in need

165.68 ten thousand yuan