• Compliant employment: Zangge Mining strictly abides by the “Labor Law of the People’s Republic of China” and other national laws and regulations, formulates the employee management systems such as the “Employee Recruitment Management System” and the “Internal Transfer System” based on its own situation, implements the concept of compliant employment thoroughly, and builds harmonious labor relationship continuously. The Company recruits employees on the concepts of equality, diversity and inclusion, anti-discrimination, gender equality, and prohibition of child labor, pays “five social insurance premiums and one provident fund” for all employees, strictly executes the national standard for working hours, guarantees that the employees shall be entitled the holidays as stipulated by the state, and protects the legitimate rights and interests of the employees.

• Incentive and welfare: The Company formulates relevant regulations such as the “Measures for Management of Compensation” and the “Measures for Management of Performance Assessment and Compensation for Senior Managers”, and establishes the compensation structure mainly composed of post energy efficiency system, measurement system, annual salary system, and special salary system. During the reporting period, the Company makes objective and comprehensive assessment of the contributions made by each employee in accordance with Mercer’s International Position Evaluation Method, in order to adjust the salary, and fully mobilize the enthusiasm of employees by the variable salary system and employee stock ownership. The Company establishes the performance feedback communication and representation mechanism to guarantee the fairness and transparency of the performance assessment process. In 2021, in order to stimulate the sense of identity and the sense of belonging of the enterprise managers and the core technical personnel, the Company launched the employee stock ownership plan in the first phase to further improve employee welfare and enhance employee cohesion, and share the results of enterprise development with the employees.

• Talent cultivation: Zangge Mining adheres to the core concept of “enabling the talents to become the key force for enterprise development”, and makes annual training plan according to the management systems such as the “Measures for Management of Employee Career Development” and the “Measures for Management of Training”, so as to promote the growth of employees at a high level. The Company makes great efforts on campus recruitment and social recruitment continuously, further improves the internal talent echelon of the Company, increases the talent density of each business segment, provides employees with the career development channel based on management sequence, professional sequence, technical sequence, marketing sequence, and operation sequence, and giving talents sufficient space for development.

• Over the years, the Company has always taken “serving the society and repaying the society” as the supreme pursuit, and taken “helping those who are old and weak, caring for the disabled, relieving the people in disasters, supporting public welfare, showing charity, and benefiting the whole world” as the purpose of repayment to the society. The Company makes active response to the needs of the community by means of participation in rural revitalization, donation to school, and targeted poverty alleviation, and builds mutually beneficial partnership with the community.

• Integration into the community: In 2022, the Company donated RMB 1.00 million Yuan to the 18^th Games and the Fourth National Fitness Conference of Qinghai, and sponsored the track and field events of the Games. In the Golmud Section of the 21^st “Tianyoude Cup” Tour of Qinghai Lake International Road Cycling Race in 2022, the Company organized 56 employees to participate in volunteer service and donated RMB 150,000 Yuan for purchase of special masks. During the COVID-19 epidemic, the Company organized 73 employees to provide volunteer services in communities, sub-districts, plants and workshops, and donated RMB 2.00 million Yuan to Golmud Red Cross Society to support the fight against COVID-19 epidemic in Golmud.

• Rural revitalization: The Company supports rural poverty alleviation campaign, implements targeted poverty alleviation and key assistance mechanism, helps poverty alleviation, and actively participates in public welfare activities in the community. In 2013, the Company started to help more than 10 villages and towns including Xiangride Rive Zhuyu Village in Dulan County, Xinhua Village and Qingshuihe Village in Guolemude Town, Golmud City and donated about RMB 1.80 million Yuan.

• Caring about education: The Company actively supports the cause of education, makes donations to construction of Golmud pilot Primary School and reconstruction of Yushu Vocational Middle School after the occurrence of disaster, donates money and books to Beijing University of International Business and Economics and other college education foundations, and make the total contribution in the amount of approximately RMB 82.63 million Yuan to the cause of education.