On 27 April 2023, Longfor Group Holdings Limitedpublishedits 2022 Sustainability Report (the "Report"),the third independent sustainability report releasedby Longfor Group .

The ReportoutlinesLongfor Group’sobjectives and practices in environmental, social, and governanceaspects.It covers sixdimensions:Good Governance, Good Service, Good Public Welfare, Good Cooperation, Good Nature and Good Care.

Following thevalueof "For You Forever”, Longfor Group continues to devote itself to public welfare undertakings.Relying on its distinct advantages,the Grouphas rolled outvariouscharitable activitiesfeaturing Longfor characteristics.Their scope coversrural revitalization,elderly and youth support, and educationenrichment,thusshowcasing itscorporate responsibility and commitment with practical actions. Longfor Group,its founder and Longfor Foundation have donated more than RMB1.8 billion in total.

Achievingtop rankingwithvariousaccolades

In 2022, the landscape of the real estate marketunderwent rapid and profound changes,which posed numerous difficulties.Longfor Group followed the policy and seized this momentum toridethrough the cycle smoothly. Last year, Longfor Group achieved revenue of RMB 250.57 billion,a year-on-year growth of 12.2%, core attributable profit of RMB 22.54 billion.The Group has maintained a strongfinancial position, a safe debt structure, and synergistic business development in all channels,allowing it to preserve itsfull“investment-grade”credit ratings.

While developing its business, Longfor Group attaches great importance to the development of the ESG management system.Since havingestablisheda board-level ESG Committee in 2020,the Group has made substantial strides in improving governance.Due toitssuccessin ESG, Longfor Groupearned a series of recognition in 2022, including“BBB” by MSCI ESG rating,“Three Green Star”certificationfrom the Global Real Estate Sustainability Benchmark (GRESB),as well as“Low Risk” rating by Sustainalytics, with a risk scoreof15.2—the lowest among Chinese real estate developers.It wasalsonamed inthe2022 Forbes China ESG50.

Facilitating thegoal of carbon peaking and carbon neutralityforeco-friendliness

In the wake of“carbon peaking” and “carbon neutrality”commitment underpinning the advancement of ecological civilization,enterprises are duty-bound to become more energy-efficient and reduce carbon output.In 2021, Longfor Group establisheda team dedicated to drivingcarbon peaking and carbon neutralityprograms, supervised bythe ESG Committee,to embedthosecapabilities in the toplevel of the organization. At the same time, the Group set the goal of reducing carbon emissions intensity (per unit area) by 15%* by 2030 to helpachieve the national goal of carbon peaking and carbon neutrality.

Longfor Group combines sustainable development with the full life cycle of buildings, setting a model of green, healthy living. By the end of 2022, the cumulative area that meet the national green building standard exceeded 130 million square meters. In 2022, 100% ofnew projects meetnationalgreen building standards, with the proportion of new projects that meet national green building

standards of one star or above reached 80%.In 2022,33.1% of new projects used solar energy and 17.0% utilized air energy.In addition, Longfor signed over 15,000 green lease contracts with its tenants, accounting for 96% of new tenants, promoting green development on a wider scale.

It is worth mentioning thatleveragingBuilding Information Modeling (BIM),theLongfor Intelligent Constructioncreatesgreen building technologies about energy consumption and provides digital technology empowerment with whole business formats and the whole cycle to help its partners to achieve green and low-carbon development.

Focusing on green development and coexistence with the environment, Longfor has formulated and issued theClimate Change Response Policyto deal with the impact of climate change. With reference to the framework proposed by theTask Force on Climate-related Financial Disclosures (TCFD), Longfor formulated management approaches and countermeasures about climate-related risks,complimented by aBiodiversity Frameworkto guide biodiversity conservation and promote the harmonious coexistence of humans with nature.

Committing to safe, healthy growth and powering production with smart technology

Longfor continuously prioritizessafety production in its development process, actively mitigating and eradicating potential safety hazard.In 2022, the Group formulated theHealth and Safety Management Policy, covering all business lines,and required all suppliers and contractors to comply with this policy, aiming to create a safe, civilized, and harmonious work environment for employees and other companions.

Meanwhile, Longforadopted smart technologiesforproduction,by usingsmart construction site tools such as smart helmet, hook visualization, and blind spot visualization reinforce safety line of defense for construction.

While ensuring safe production, Longfor continued to improve the Group’s quality management system and improvedproduct quality requirementsbyrevisingtheThird Party Engineering Quality Management System of Real Estate Headquarter.Special attention was devoted to enhancing thestandardization of the quality system and promotingthe ISO 9001:2015 quality management system certification.Furthermore,Longfor developed 74 process methods and established reliable construction standards for the civil engineering, electromechanical, and decoration dimensions. Meanwhile, the Groupfurther instituteda three-level quality management and control system of “group-region-project”, ensuringthe quality of engineering at all levels. In 2022,the “Sunshine Workshop”was promoted,providing customerswitha unique insight into the entire construction process fromcivil engineering process to delivery,thereby facilitating joint supervision over product quality.

Longfor was committed to providing users withreliableand safe products and servicesof superior quality, made possible by itsincreasinglysoundquality management and control system, from design to delivery.Throughthe model of “preferred brand, centralized procurement, and exclusive supply”, Longforinsists onthestringent selection of materials from the source.The Prime Home Considerate Decoration systemenables users to experiencea “fusion, arrangement, health, convenience and quality”in the living space. The considerate delivery system-“providingan abode with devotion”- ensuresfull life-cycleservices from stress-freedelivery.

Last year, Longfor Group deliveredan impressive 110,000+houses, all on time,-40%of themevenone monthearlier than planned, leading tocustomer satisfactionof90%.

Sowingthe seeds of public welfareforkindness

Driven by the mission of“For You Forever”, Longfor is devoted to creating a mutually beneficial and harmonious ecosystem for employees, customers, the industry, the environment and society.

In 2022,Longfor went a step further with their Da Tong Yuan Employee Care Program’s“Great Reunion”section, broadening its coverage to  include not just employees, spouses and children but their parents as well. It includes not only a basic commercial medical insurance scheme but an optional“one million coverage hospitalization insurance plan”too. Ultimately, the plan provides medical and health protection for employees’families, benefiting over 100,000 people.

Growing up in thecultural soilof “Being Kind”, Longfor has alsoexportedthis positive value to society. Last year, Longfor Group paid RMB 21.1 billion in taxes. While fulfilling its corporate citizenship responsibilities as a taxpayer, Longfor also lit up more lives through its charitable practices. Since its establishment, Longfor Foundation successively carried outcharitable campaigns, such as the "The Xinya Project", "The Huguang Project", "The Flying Project", "The Stream Project", and "The Evergreen Project"–in the fields ofcare for the elderly and children, rural revitalization and "education promoting–which helped more than 1.64 million people in total.

In 2022, Longforachieved a flawlessscore in the China Foundation Transparency Index (FTI), and was awarded the "Star of Glory" annual collective, "China Charity List" Annual Model FoundationAnnual Model Organization, Chongqing Charity Award andnumerous other accolades.

This year marks the 30th anniversary of Longfor Group's establishment.All these years,Longforhas been steadfastly faithful tothe original intention of "treating people with kindness", andtakinglong-termismaction and cultivating virtue, and pushing forward resolutely and enthusiastically.

Going forward,Longfor will continue tostay true to its key value of“Being Kind” andlive up to itssocial responsibility. While promotingitssustainable development,Longfor will create a better space for the city and humans, renew the city withmore considerateservices, and promote the harmonious development ofoursociety.

For more ESG information ofLongfor Group, pleasevisit https://www.longfor.com/en/mobile/social/41/

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