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ZJLD Conferred Metro Finance GBA ESG Achievement Awards 2024

HONG KONG SAR - Media OutReach Newswire - 23 September 2024 - The first baijiu company listed on the Hong Kong Stock Exchange and the second Chinese sauce-aroma baijiu stock being publicly listed, ZJLD Group Inc.

("ZJLD" or the "Company", SEHK stock code: 06979. HK), has been awarded the prestigious "Outstanding Social Sustainable Awards" and "Outstanding Green Sustainable Awards" by the Metro Finance's "GBA ESG Achievement Awards 2024". This high-profile recognition greatly acknowledges the group's initiatives in responsible consumption and production, as well as its climate action efforts.

The "GBA ESG Achievement Awards" is hosted by Metro Finance and supported by ten institutions and organizations, including the Hong Kong Quality Assurance Agency, the Hang Seng University of Hong Kong, and the CFA Society Hong Kong. Since 2020, the award has been commending outstanding enterprises in social sustainable development, green sustainable development and corporate governance for five consecutive years. In recent years, ZJLD has boldly innovated its approach in production and distribution in addressing climate change. The Group has persistently reinforced its governance foundation and steadily implemented its sustainability practices, which have led to this recognition and accolade.

In terms of social responsibility, the Group is committed to becoming a pioneer and leader in ESG initiatives in the baijiu industry, advocating for "sustainable distilling and responsible marketing". From responsible procurement and green production to rational drinking, the Group has actively incorporated advanced sustainability measures across the entire industry value chain of baijiu production and promotion. Since 2022, the Group has introduced a comprehensive ESG assessment mechanism for suppliers, with an additional scoring system for outstanding suppliers to promote energy conservation and emission reduction. The Group mainly promotes outer-packaging-free baijiu, emphasizing high quality and simplifying the packaging to embrace minimalist aesthetics, allowing the essence of the baijiu to shine. Furthermore, the Group encourages consumers to recycle empty baijiu bottles. It has already collected nearly 30,000 bottles from 2023 to the first half of 2024, setting a target of not less than 47,000 bottles for 2024.

Regarding environmental protection, the Group has actively taken proactive climate action through a series of energy conservation and emission reduction initiatives, setting and adhering to its sustainable development goals. The Group conducts climate scenario analyses annually to identify climate-related risks and opportunities and has formulated corresponding countermeasures. To enhance energy efficiency, the Group has replaced all coal-fired boilers with natural gas boilers and achieved the interim target of utilizing 50% renewable electricity in the first half of 2024 by installing rooftop distributed photovoltaic systems. As of 2023, the Group has successfully reduced its Scope 1 and Scope 2 carbon emission intensity by 20.7%, achieving its 2025 target ahead of schedule. While we celebrate our achievements, as a responsible company who actively support the national "dual carbon" strategic goals and strive to support the 1.5℃ temperature control target of the Paris Agreement, the Group have decided to further enhance our ambition in responding to climate change, committing to peaking carbon emissions by 2028 and achieving carbon neutrality by 2050 in our own operations. The "2850 dual carbon" dedication has been carefully elaborated into annual targets as well as detailed action plans and approved by the Board of the Group in the third quarter of 2024.

Through our enduring efforts, we have made great progress in implementing a series of ESG improvement projects with encouraging results in the first half of 2024. The water consumption intensity, electricity consumption intensity and natural gas consumption intensity decreased considerably compared to 1H2023. Our ESG efforts have also been recognized by reputable public organizations and institutions. In June 2024, we received ESG rating of "AA" from Wind, ranking top 1 among 60 listed companies in the beverage sector. In addition, Zhen Jiu was among one of the five baijiu enterprises to be awarded as "National Green Factory".

Mr. Ng Paul, the Executive Director and Head of International Operation of ZJLD Group, stated, "It is an honor to be recognized by the "GBA ESG Achievement Awards 2024" and to win the two key awards of "Outstanding Social Sustainable Awards" and "Outstanding Green Sustainable Awards", which fully affirms the comprehensive strength of ZJLD Group. Looking ahead, we will actively respond to national strategies and overall social needs, implement sustainable development concepts and make all-out efforts to stabilize growth, create brand value, prevent risks, and fulfill our responsibilities. We aim to contribute to enhancing the vitality, competitiveness, and influence power of the baijiu industry, and demonstrate the social responsibility that should be shouldered by an outstanding enterprise in the Greater Bay Area."

Hashtag: #ZJLD

The issuer is solely responsible for the content of this announcement.

About ZJLD Group Inc.

Zhen Jiu was established in 1975 in Zunyi, Guizhou, China's primary production area of sauce-aroma baijiu. In 1988, it was honored with the National Quality Award at the 5th National Wine Appreciation Conference. It is one of the "Three Representative Sauce Flavor Brands in Guizhou", along with Moutai and Xijiu. In the same year, it was announced by the Protocol Department of the Ministry of Foreign Affairs, the Communication Department of the Ministry of Economy and Trade, and the Great Hall of the People Management Bureau to become one of the two sauce-aroma baijiu served at state banquets.

ZJLD Group Inc. is a leading baijiu group in China that is devoted to offering baijiu products, including sauce-aroma, mixed-aroma, and strong-aroma, with sauce-aroma being its core. In terms of revenue in 2023, the Company was the third-largest private baijiu company in China, according to Frost & Sullivan statistics. The Company operates four baijiu brands in China, including Zhen Jiu, Li Du, and two leading regional names, Xiangjiao and Kaikouxiao. ZJLD prides itself on inheriting the time-honored baijiu-brewing techniques and reinvigorating them to develop iconic products. It strives to create a wide variety of aromatic and mellow baijiu products to meet the diverse preferences of consumers, seize broader market opportunities, and promote traditional Chinese baijiu culture.

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