Supporting community development

The Group complies with local laws and regulations in its operations to minimize potential adverse impacts on the community and to help promote community development.

The Group pays attention to community communication and actively promotes the relationships between the villages and the Company. In 2023, the Group actively liaised with the villager committee of the Sanbaoyaozi Village of Zhunge’er Banner in Inner Mongolia on the discussion of coal overburden removal, soil covering, and soil excavation and signed the Cleaning and Disposal of Waste Drainage Site and Earth Moving with Zhunge’er XiongFu Trading Co., Ltd (准格爾旗雄富商貿有限責任公司), a wholly-owned enterprise of the villager committee of the Sanbaoyaozi Village with a contribution of RMB1.92 million, which effectively reduced the costs of soil acquisition and increased the income of the village committee. In order to establish a good relationship with the village committee of Sanbaoyaozi Village, the Company had sponsored RMB40,000 for the “Cultural Temple Fair” in Sanbaoyaozi Village, Xuejiawan Town. In order to establish a good relationship with the village committee of Majiata Village, the Company had sponsored RMB5,000 for the “Cultural Temple Fair” in Majiata Village, Xuejiawan Town. The Group entered into the Maintenance Fee of the New Large City Channels with the village committee of Sanbaoyaozi Village, Xuejiawan Town, Zhunge’er Banner, Inner Mongolia to support the village’s collective economy with an amount of RMB100,000. The Group invested RMB134,469 to complete the maintenance project of the Hashilagou Bridge on the New Dacheng Line in Sanbaoyaozi Village, helping local villagers solve potential travel safety hazards. The Group entered into the Machinery Lease Contract with the village committee of Majiata Village, Xuejiawan Town, Zhunge’er Banner, Inner Mongolia to support the village’s collective economy with an amount of RMB150,000, which increased the income of the village committee.

In 2023, to further build an excellent and responsible corporate image, the Group has continued to provide free heart-warming coal to local people. The Group cooperated with the Women’s Federation of Zhunge’er Banner to carry out the “Consultation to Hundreds of Women and Children” care action and once again organized visits nursing homes to send warmth and promote consumption assistance of approximately RMB330,000. The Group actively supports the development of local economy, employing local workers to promote local employment. In 2023, Kinetic (Qinhuangdao) Energy Co., Limited was awarded the title of “Star Enterprise (明星企業)” in Beidaihe, Qinhuangdao for eight consecutive years. On 27 June 2023, it obtained the quality management system certification which covers the sales of coal. Its quality management system complies with national (GB/T19001) and international (ISO9001) standards. In 2023, the Group made a total tax payment of approximately RMB1,604,907,388.20, in which Kinetic Coal made a total tax payment of approximately RMB945,805,850.40. As of the end of the reporting period, the Group has hired a total of 214 employees whose household registered locally in Ordos, thus local employees accounted for 22.9% of total employees of Kinetic Coal.