We have developed programs to reduce water consumption that covers the entire production chain,centered around a closed-loop management system of "source reduction,process control,and end reuse",dedicated to achieving efficient utilization and sustainable development of water resources. At the source level, we have reduced water consumption in production processes through measures such as optimizing aseptic water nozzles and upgrading CIP(Clean-in-Place)processes.

Simultaneously,we recycle water from mechanical seals for cooling towers,and production concentrated water for water-consuming scenarios such as landscape irrigation and toilet flushing in the plant, thus significantly increasing water reuse rates. Until now,our water-saving program has been implemented in 100% of our national production bases, primarily covering regions such as East China, South China,and Southwest China.

To ensure the steady progress of the water-saving program,we have established rigorous safeguard mechanisms. We set annual KPIs for water resource consumption and conduct comprehensive monitoring and evaluation of the implementation of the water-saving plan across all factories on a regular basis.

We continue to carry out energy-saving and carbon reduction emissions programs across key value chains, including production, packaging, and logistics.

• At the production stage, we reduce energy consumption and carbon emissions in the production process through energy-efficient equipment retrofits and process upgrading and optimization. In 2024, we carried out a heat recovery project for low-pressure air compressors and an optimization and upgrading project for the medium-temperature wet process line, which effectively enhanced the efficiency of heat energy (steam) utilization and reduced steam consumption.

• In the packaging phase, we adopt a core strategy of lightweighting packaging materials. By reducing the amount of packaging materials used and increasing the loading efficiency during product transportation, we aim to lower transportation loads, reduce the generation of packaging waste, and minimize the environmental impact of packaging materials. Through our lightweighting action program for packaging materials, we expect to reduce the use of PET raw materials by over 10,000 tons and PP raw materials by nearly 3,000 tons annually. Currently, 48.48% of our product categories ^[1]have successfully achieved packaging weight reduction, such as Eastroc 500ml and 250ml PET bottles have reduced weight by 1g and 2.5g respectively; 555ml bottles of Eastroc Water Boost & Fruit Tea have reduced weight by 2g, and 1L PET bottles of Eastroc Water Boost & Fruit Tea have reduced weight by 1g. Additionally, we have introduced laser coding technology to replace traditional inkjet coding, achieving a reduction in ink usage through the transition from ink to laser. Currently , 66.7% of our product categories ^[2]have completed ink to laser inkjet, such as Eastroc, Shangcha Series and Eastroc Water Boost Series. In 2024, we cumulatively used 425,100 tons of packaging materials, including 120,000 tons of paper, 300,000 tons of plastics, 4,500 tons of metals and 600 tons of glue.
  

• During the logistics and transportation phase, we reduce unnecessary mileage by optimizing distribution routes and accurately scheduling vehicle dispatching, thereby reducing fuel consumption and carbon emissions during transportation. In the loading process, we use purely electric forklifts to replace traditional fuel forklifts, implement the transportation mode with boards, and prioritize the whole truck transportation scheme, which significantly improves the loading efficiency and reduces the loss of cargo transshipment. Additionally, our capless packaging design and adoption of 4-/6-pack bundling decrease packaging void space, increasing single-truck load capacity and further lowering transportation-related carbon emissions.
  

Note:[1][2]Eastroc Beverage has The currently marketed product categories of Eastroc Beverage are classified according to the GB/T 10789 General Standard for Beverage and relevant regulations, comprising 9 major categories with 33 products.

We are committed to deeply integrating the concept of product health into our core business system, providing consumers with healthier and more natural beverage choices through the application of natural ingredients and product sugar reduction programs.

• Regarding the use of natural ingredients, we have implemented a "0 preservatives, 0 artificial colors" formulation standard in 21 products, including tea beverages (Shangcha Series), coffee (Coffee Master), and Coco Island Coconut, etc. These products currently account for 64% of the available product categories^[1].We are advancing the process of replacing artificial additives through the use of natural ingredients verified by strict quality control procedures and the introduction of natural sugar substitutes (stevioside) to bring consumers a purer and healthier beverage experience.

• In terms of reducing the sugar content of our products, we have been continuously carrying out sugar-reduction and sugar-free upgrades for 19 products, and currently, low-sugar and sugar-free products cover 58% of the available product categories^[2].Our low-sugar products include:Coffee Master(Classic Latte/Coconut Latte),Chrysanthemum Tea,Winter Melon Juice Drink, Chrysanthemum Honey, Honey Green Tea,Preserved Mandarin Peel Drink etc.Sugar-free products include: Shangcha Series (Oolong Tea/Jasmine Tea / Pu'er Tea /Yinghong Tea),Eastroc 0 Sugar,and Eastroc Water Boost Zero-sugar Lychee Flavor etc.

^{Note:[1][2]The currently marketed product categories of Eastroc Beverage are classified according to the GB/T 10789 General Standard for Beverage and relevant regulations, comprising 9 major categories with 33 products.}