2022 Environmental, Social, and Governance Report

Empowering Employees and Communities

M&G Stationery prioritizes a people-oriented approach by implementing measures to promote employee growth and development, improve employee care, and support public welfare and charity initiatives. Through these efforts, the Company strives to achieve a two-way empowerment for both employees and communities, contributing to the growth of employees and the harmony of communities while the enterprise continues to develop.

     l Talent Cultivation

 ● Protection of Rights:

 M&G Stationery places great importance on respecting and protecting human rights, adhering to legal and compliant employment practices. Through democratic management and supervision, the Company is dedicated to safeguarding the legitimate rights and interests of employees, treating each employee equally, and fostering a sense of happiness among employees through a scientific and reasonable compensation and benefits system.

  ● Employee Development:

  M&G Stationery highly values the cultivation of talent and puts comprehensive focus on employees' career development. By expanding talent promotion channels and development paths, building multi-level learning approaches, and shaping versatile talents, the Company enables employees to maximize their potential and achieve their true value.

  ● Health and Safety:

  M&G Stationery is committed to creating a healthy and safe work environment for employees. Through the establishment of occupational health and safety management systems, we have established a comprehensive occupational health and safety management system. We identify potential safety hazards by recognizing hazard sources in advance, analyzing potential risks and occurrence probabilities in the work environment, and reduce accident rates through regular inspections and rectification of unknown hazards. In 2022, the Company invested 2.22 million RMB in labor protection, and there were no cases of death due to work-related injuries or occupational diseases.

  ● Employee Care：

  M&G Stationery focuses on humanistic care, not only organizing a variety of activities to enrich employees' leisure time but also enhancing employee cohesion and happiness through caring for female employees and assisting employees in need.

      l Giving Back to Society

  Throughout its history, M&G Stationery has demonstrated a strong sense of social responsibility and commitment, donating funds to establish the Shanghai M&G Charity Foundation to promote goodwill within the industry. The foundation has been actively involved in public welfare initiatives in the areas of quality education, environmental protection, and humanitarian care. In 2022, M&G Stationery contributed a total of 5.33 million RMB to public welfare donations, including 4.25 million RMB in cash donations and 1.08 million RMB in in-kind donations.

  Case：Golden Seed Plan

  Launched by M&G Stationery in 2015, the "Golden Seed Plan" is a public welfare initiative that, on one hand, creates customized stationery gift packages tailored to the needs of teachers and students in regional schools, providing material support. On the other hand, it sets up scholarships to offer financial assistance to outstanding students and teachers. In 2022, M&G Stationery donated over 10,000 stationery sets through the "Golden Seed Plan" in 9 provinces and cities in China. Meanwhile, the plan has expanded overseas, donating 10,000 gift packages to the local government in Pakistan during flood reconstruction to help students resume their studies; collaborating with the China Charity Federation to donate 2,500 Golden Seed stationery gift packages to Laos; and partnering with the United Nations Refugee Agency to donate stationery to learning centers in the Kakuma and Dadaab refugee camps in Kenya, benefiting more than 40,000 people.

    "Golden Seed Plan" domestic donations

    Donating 2,500 Golden Seed stationery gift packages to Laos

    Donating stationery to education centers in the Kakuma and Dadaab refugee camps in Kenya

Case：Art Education Plan

The "M&G Art Education Plan" is a collaborative art education project carried out by the Shanghai M&G Charity Foundation, the Jack Ma Foundation, the Hylink Charity Foundation, the Shanghai Charity Education and Training Center, and several other organizations. The project takes advantage of M&G's unique strengths and focuses on art education, conducting a variety of activities. As of the end of 2022, the project has reached 18 provinces and 37 cities, benefiting nearly 300,000 people. Through the public welfare platform established by the project, the Shanghai M&G Charity Foundation has donated painting materials to more than 30,000 children, including supporting the Hylink Charity Foundation's remote art project with 4,000 teaching material packages, donating 2,000 gift packages through China Writing Instrument and the China Charity Federation, and donating 22,000 oil pastel boxes to the One Foundation Warm Package Project to empower children's artistic dreams. In 2022, the Shanghai M&G Charity Foundation and the Hylink Charity Foundation jointly expanded online art courses, enabling more children to access more professional and creative art classes through remote teaching.

Creative classroom project:
providing standardized desks, chairs, and other hardware facilities for schools

M&G Stationery is devoted to fostering quality education through the "M&G Art Education Plan," coordinating painting contests and public welfare classes for young people to raise environmental awareness. We have enabled 6,300 children from mountainous regions to participate in the New Energy Solutions Painting Competition, co-organized by the National Committee of the Chinese People's Political Consultative Conference and the China Association for Science and Technology, and provided Golden Seed gift packages to children with exceptional works.

In 2022, we continued our annual "M&G Stationery Cup" Children's Art Creative Painting Collection event, which has grown into one of China's largest children's art competitions since its inception in 2013. The 10th edition of the "M&G Stationery Cup" in 2022 spanned six months, featuring 11 special contests and drawing 272,000 entries from 30 provinces and cities. This event provides children with a platform to showcase their creativity while celebrating each child's unique talents and achievements.

The 10th M&G Stationery Cup children's creative painting contest in 2022

Owing to the Shanghai M&G Charity Foundation's significant contributions in aesthetic education, we received the Sustainable Development Benefit Award at the 5th Caijing Evergreen Award, organized by Caijing magazine in December 2022.

Case：Art Education Plan

M&G Stationery actively engages in rural revitalization efforts in response to national initiatives, contributing to rural development. Capitalizing on its unique strengths, M&G Stationery concentrates on enhancing aesthetic education in rural areas, offering support for talent development and preserving cultural innovation. In 2022, the Company invested a total of 1.38 million RMB in rural revitalization, benefiting 16,000 students. We have consistently supported Yunnan Province for many years, donating 400,000 RMB worth of stationery in 2022 alone. Since 2020, we have contributed more than 1.5 million RMB worth of stationery to Baoshan City, Chuxiong Yi Autonomous Prefecture, and Honghe Hani and Yi Autonomous Prefecture in Yunnan Province.

In 2022, M&G Stationery received the "GoldenKey—Sustainable Development Solutions Winner" award in the "Quality Education" category at the 2022 "Golden Key—China's Initiative for SDG," hosted by the China Sustainability Tribune Magazine

Case：Training and Education for Special Needs

M&G Stationery supports special needs groups, such as autistic children, through painting training. In 2022, the "Autism Children with M&G" public welfare project continued offering painting training courses for autistic children, with approximately 2,000 autistic children participating. Their exceptional works were transformed into cultural and creative products, with profits from sales being donated back to the project, exemplifying M&G's care for the society in the form of public welfare marketing.

Guiding autistic children in painting and handicrafts

| Children's Health

M&G Stationery prioritizes children's health, ensuring their well-being through medical assistance and other means. In 2022, we partnered with the Shanghai Children's Foundation to initiate the "M&G for Brightness" Children's Eye Health Care Plan. This plan provides eye health medical assistance to children aged 3–16 in Shanghai and remote areas of Yunnan, Guizhou, Xinjiang, and Tibet, which are supported by Shanghai. Additionally, it extends support to children with eye diseases who cannot receive timely treatment due to family circumstances, offering specialized care and helping them achieve a brighter future.

"M&G for Brightness" children's eye health care plan launch