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LiuGong's Sustainable Future: Key Milestones and Commitments

As the world shifts towards more sustainable practices in business, LiuGong (000528.SZ) is at the forefront, continually proving its commitment. In early 2025, the company celebrated a significant milestone with the first anniversary of its Green Alliance, underscoring its pledge to sustainable development. This initiative was founded in late 2023, partnering with vital clients, distributors, and several non-profits to allocate a portion of its annual revenue from sales of electric products to charitable projects in Africa.

One of the critical achievements of the Green Alliance occurred in May 2024, with the launch of a charity project in South Africa. This initiative involved the introduction of electric construction machinery to the region, alongside the construction of a 150-meter deep solar-powered well, which now supplies clean water to over 25,000 households in Mabeskraal, South Africa. This project not only highlights LiuGong's dedication to social responsibility but also aims to inspire similar efforts across the globe.

The company has made impressive strides in electric equipment development. Currently, LiuGong's lineup includes 11 distinct categories of electric products, inspiring environmental sustainability through its eco-friendly ecosystem. Over the past year, LiuGong sold more than 6,500 electric units worldwide, contributing to a reduction of carbon emissions by an impressive 330,000 tons, which is similar to planting over 18 million trees.

Furthermore, LiuGong is dedicated to promoting worldwide electrification, with electric products constituting over 10% of its monthly international sales throughout 2023. This strategic direction showcases LiuGong's potential to inspire investment in sustainable practices.

The company is also accelerating the independent development of key components and has finished the initial phase of constructing a battery systems manufacturing plant. LiuGong has implemented advanced technologies, including autonomous loaders and rollers in its mining and highway projects, which enhance cost-effective planning and management.

In pursuit of zero pollution and maximum resource recycling, LiuGong invested 41.61 million yuan in 2023 to enhance lifecycle management, focusing on energy conservation and emission reduction efforts. All wastewater emissions and exhaust gas discharge adhered strictly to regulatory standards, with effective handling of hazardous waste ensuring no pollution incidents were reported. LiuGong implemented 27 projects during the year to lower emissions from volatile organic compounds (VOCs), welding fumes, and other pollutants.

The company's commitment extends beyond operations; it also emphasizes building a green supply chain through strategic collaborations and eco-friendly procurement practices. This includes the use of energy-efficient products and transitioning from wooden and cardboard packaging to reusable options. LiuGong's approach involves rigorous supplier management through audits and assessments, factoring in financial aspects, capacity, quality, and ESG commitments, fostering long-term partnerships.

Moreover, digital initiatives such as the SRM platform help save approximately 4.3 tons of paper annually while enhancing real-time interactions with over 1,500 suppliers, thus boosting supply chain efficiency.

Looking ahead, LiuGong plans to intensify its efforts to incorporate sustainability into its business models. The Green Alliance is set to further its mission with the construction of a second well in Gambia, further solidifying its commitment to global sustainability initiatives.

The company's endeavors in pioneering sustainable practices establish LiuGong as a role model in the pursuit of a greener future, effectively blending economic growth with environmental stewardship.