Water Stewardship We know well that without water, there is no baijiu. As a responsible baijiu enterprise, we incorporate stringent water stewardship throughout our operations and make every drop of water count. We have enhanced our water related rules in our ZJLD Environmental Policy emphasizing our commitment to minimizing the environmental impact on wastewater discharge, reduction on water usage and protection of the ecosystem of watersheds in which we operate. We have set stringent criteria for wastewater discharge, enabling us to fully meet or surpass local and national regulatory standards. To prevent water pollution from its source, we have implemented a diversion system to separate rainwater, production wastewater and domestic wastewater. Each of our distilleries is equipped with wastewater treatment plant(s) and holds sewage discharge permit. We aim to further reduce chemical oxygen demand (COD) and ammonia nitrogen in sewage in order to return all wastewater to the environment in a most eco-friendly way. To unlock higher water use efficiency, we have implemented or are implementing different measures, including but not limited to the recycling of cooling water and bottle-cleaning water, utensils water-saving transformation and setting water use efficiency as a KPI for each workshop. Particularly, in our Zhenjiu distillery, the water-cooling system was replaced by air-cooling in 2021, which has saved nearly 400,000 tons of water in the whole year of 2021. Against a 2021 baseline, we aim to continuously improve water use efficiency with the goal to save 200,000 tons of water by 2025 by implementing the measures mentioned above as well as developing other water use efficiency initiatives.