Sinotruk is keenly aware of the importance of environmental, social and governance (ESG) matters to the risk management and sustainable development of the Group. A three-tier ESG governance structure featuring “the governance tier - the management tier - the execution tier”, has been established as part of our efforts to safeguard the smooth implementation of the ESG work. As the highest decision-making body for ESG issues, the Board assumes full responsibility for the Group’s ESG strategies, ESG-related goal setting, target progress review and ESG performance. As the strategic executor of the Group’s ESG work, the Audit Committee reviews the ESG performance of the Group and advances ESG resolutions of the Board. The Group has established the ESG Management Group within the management tier which is in charge of the management of daily ESG work and established the ESG Working Group in the execution tier which is responsible for the execution of daily ESG work.The Group highly values suggestions and opinions of all stakeholders and continuously identifies and assesses material ESG issues. Based on the communication with major stakeholders through various channels, and with reference with disclosure-related requirements of regulators, industry policies and development trends, and the key concerns of rating agencies, we prioritize material ESG issues as important reference for ESG disclosure.