On 29 April, Blue Moon Group (06993.HK) has officially released the "2021 Environmental, Social and Governance Report" (the "ESG Report"), its second ESG report since listing, presenting its practices and achievements in the fields of environmental, social and corporate governance ("ESG").

Blue Moon, as always, adheres to the ESG principle of “better products (services), healthier environment, and great society.” Towards that end, it is integrating ESG goals with its enterprise development strategies, adopting ESG responsibilities in its daily operations, thereby allowing every family to enjoy a clean, healthy, comfortable, respectable and delightful “Blue Moon” lifestyle.

Promoting clean lifestyle driven by innovation

As a consumer-centric and innovation-driven home cleaning solutions provider, Blue Moon has been adhering to the values of "Constantly raise the bar in pursuit of excellence for users" over the years. While focusing on the cleaning sector, it carefully evaluates the diverse and differentiated needs of consumers, promotes innovation and the upgrade of products and services, and helps consumers to create a clean high-quality life.

In 2021, in response to the ever-changing cleaning needs of consumers, Blue Moon has introduced new products across three major product categories, specifically fabric care, personal hygiene and home care, continuously improving its entire home cleaning solutions, and delivering a new clean lifestyle to more people.

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In the fabric care segment, Blue Moon has launched a number of new products including Supreme Biotechnology bacteria and odor removal laundry detergent and Underwear Laundry Detergent created as a result of examining different scenarios of actual use by consumers as well as the demand shifts within the consumption upgrade trend and amidst the pandemic. For the personal hygiene segment, Blue Moon has successively rolled out related new products such as Automatic Hand Wash Machine and Rinse-free Liquid Soap, in order to bring a convenient and interesting handwashing experience to customers. As for the home cleaning sector, in response to the rising consumer demand for cleaning washing machines, Blue Moon debuted a washing machine cleaner, realizing one-stop antibacterial and cleaning effect in an easy and effective manner.

In the research and development of new products, Blue Moon consistently enhances the cleaning experience of consumers through continuous innovation. For example Supreme ?Biotechnology bacteria and odor removal laundry detergent is highly anti-bacteria^*. Its innovative odor suppression technology reduces the malodorous bacteria enabling consumers to enjoy a clean and healthy life. In addition, its "concentrate+" ^*formula contains various active enzymes, making laundry easier and more environmentally friendly.

A strong R&D capability is indispensable to Blue Moon’s steady launch of new products. The ESG report shows that Blue Moon has an independent research and development center specializing in product development and basic innovation, packaging design, as well as product application research. In November 2021, Blue Moon was recognized as a "Model Enterprise for Industrial Product Green Design" by the Ministry of Industry and Information Technology of the PRC for its outstanding capabilities in technology research and development ("R&D") and innovation, managerial level as well as professional product design and R&D team. In addition,?all manufacturing factories of Blue Moon have attained ISO 9001 quality management system certification. Its Quality Inspection Center has passed the evaluation by the China National Accreditation Service for Conformity Assessment (CNAS) in 2021, providing solid assurance of innovation ?in R&D and product quality.

While providing excellent products, Blue Moon also insists on bringing a comfortable and convenient service experience to consumers through its warm and valuable professional services. Currently Blue Moon has a well-established fully functional consumer service center, to help consumers to solve different cleaning problems. Blue Moon also offers a 7×24 service channels nationwide to consumers. As of 2021, it had opened up a total of 47 consumer communication channels, including hotline, WeChat official account, official website and a social service system. According to the ESG report, since 2000, Blue Moon has conducted consumer satisfaction surveys in three areas, namely products, solutions and customer services, to collect consumer opinions and improve its service capability. In 2021, the system service satisfaction and client review satisfaction have both exceeded 96%.

Integrate environmentally friendly concepts into daily operations to promote green and sustainable development

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In 2021, guided by China's "dual carbon" strategic goal, all industries have formulated planning for green and low-carbon transformation and development. Blue Moon for its part has actively aligned with the "dual carbon" direction by pursuing green development, introducing environmentally friendly green products, practicing clean production, promoting environmentally friendly packaging and incorporating measures to tackle climate change into its daily operation, with these efforts contributing to sustainable development.

As always, Blue Moon implements environmentally friendly concepts throughout the full life cycle of production, actively developing green products and promoting concentration of liquid detergent products, leading the industry to enter a new era of eco-friendly concentration. Blue Moon?also vigorously promotes professional washing methods and cultivates environmental awareness in consumers’ daily lives to promote green development of the detergent sector.

The increased use of concentrated detergents benefits the country as well as the people, bringing an easier, more convenient and more economical washing experience to consumers; reducing the cost and use of packaging plastics, saving storage space and transportation costs and improving shelf utilization for suppliers, thus featuring prominently in promoting overall sustainable development. According to the "China Laundry Detergent Life Cycle Assessment Report" issued by the China Cleaning Industry Association in 2014, if all Chinese consumers use concentrated detergent, this can help reduce 1.7472 million tons of carbon dioxide emissions during the production and transportation processes, and save 8.567 billion kilowatt-hours of electricity and 2.4211 million tons of water.

Blue Moon is one of the first companies in China's detergent industry to develop and promote concentrated products. In recent years, Blue Moon has continued to increase R&D investment in order to realize innovation and upgrade in the concentrated product sector, ushering the industry into the?new era of eco-friendly concentration. In 2015, Blue Moon developed and introduced China's first “concentrated+” liquid laundry detergent product for use in washing machines. Branded “Supreme”, the detergent comes in a bottle with a measurable dispenser pump, which has promoted industry upgrade. In 2018, Blue Moon launched Supreme Biotechnology Liquid Laundry Detergent, which was designated among the “Fifth Batch of Green Design Products” by the Ministry of Industry and Information Technology. In 2021, Blue Moon debuted Supreme Biotechnology bacteria and odor removal laundry detergent, again leading the development of concentration technology in cleaning products.

The ESG report stated that over 90% of Blue Moon’s products have attained the certification of China Environment Labeling, and its?main liquid detergent products have earned China Water Conservation Certification. In 2021, Blue Moon was among the first companies in the industry to obtain the Certificate of China Green Product.?

As climate change issues escalate, various sectors in society are increasingly concerned about the environmental impact of enterprises and the environmental attributes of products. Blue Moon attaches great importance and risks?of the impact of climate change on business operations and?actively promotes carbon emissions management and product carbon labeling. According to the ESG report, in 2021, Blue Moon has earned the first product carbon label evaluation certificate in Guangzhou and will continue to carry out research and investment in carbon emissions accounting, achieving greenhouse gas emissions reduction targets and formulating plans to address climate change issues.

At the same time, Blue Moon has actively promoted clean production, and installed high-efficiency production equipment, adhered to a low carbon footprint and environmental protection in each step of the production and operation management process, driven?continuous optimization and improvement through refined operations and has consistently constructed green factories. The Chongqing and Tianjin factories of Blue Moon have attained ISO50001 energy management system certification, and all manufacturing facilities of Blue Moon have been ISO14001 environmental management system-certified. In 2021, Blue Moon (Tianjin) Co., Ltd. has also been honored as a National "Green Factory."

Actively fulfills corporate social responsibility to help public pursuit of better living

While committed to creating more excellent products and services and constantly improving the ecological environment, Blue Moon?also upholds the concept of growing together with employees and connecting with the community to?provide full-cycle talent training and multi-channel career development internally to create a workplace where employees feel a strong sense of belonging.It?also actively?participates in charity events in order to do everything possible to give back to society.

Blue Moon regards talent as the core strategic resource for sustainable development and thus continuously strives to improve the work experience of its employees. By promoting full-cycle talent training and multi-channel career development, Blue Moon has created a workplace where employees can feel a strong sense of belonging. Beyond this, by arranging a variety of activities for employees, Blue Moon has provided a harmonious, warm and pleasant atmosphere for employees. As of the end of 2021, the overall training rate of employees was 91.4%.

Blue Moon?also cares about the physical and mental health?and welfare?of employees and provides comprehensive health management care and services to them. The ESG report cites?that all manufacturing facilities of Blue Moon have attained?ISO45001 occupational health and safety management system certification.?

Blue Moon continues to optimize and improve in all aspects of its human resources. In 2021, it has obtained several awards including "China Best Employer?Award?TOP100", demonstrating the high recognition it has achieved from professional human resources organizations.

At the same time, Blue Moon actively participates in various public welfare activities, including communicating?the clean and healthy concepts, supporting disaster relief and contributing to rural development, helping people pursue better lives. According to the report, Blue Moon has been acknowledged?as a "Responsible Brand of the Year?of China Charity Festival" for seven consecutive years.

An example of such an effort is?organizing the "Healthy Angel" campaign?in which?Blue Moon promotes clean and healthy concepts?to families with children?and promotes healthy family education among children. According to the ESG report, as of 2021, Blue Moon has invested?a total of RMB38.87 million benefiting?22,000 kindergartens and?families of?17 million children.

In July 2021, Henan Province was hit by heavy rains and floods. Blue Moon donated disinfection, cleaning and protection materials valued RMB 10 million via the Henan Charity General Federation to help Henan carry out post-disaster relief efforts including cleaning, sanitation and preventive disinfection work to safeguard peoples’ health.

In addition, Blue Moon vigorously supports the development of culture and sports, and has taken an interest in the development of youth art and the growth of creativity in China. Since 2014, Blue Moon has been the chief sponsor of College Student Art Fairs in a row, providing museum-level professional opportunities for nearly 5,000 artists to showcase nearly 15,000 works of art.

In 2021, the revitalization of rural areas has been fully implemented and Blue Moon has actively engaged in the construction of a beautiful countryside. It has also participated in the material donation campaign of "Consolidating Poverty Alleviation Achievements and Helping to Build a Beautiful Countryside" co-sponsored by the China Detergent Industry Association and The Department of Economy and Information Technology of the Tibet Autonomous Region, donating laundry detergent, hand sanitizers, disinfectants and other cleaning and disinfection materials to households in Shenmuda Village and Tongmen Village in Qudang Township, Tingri County, Shigatse City, to help villagers develop good hygiene habits. Since 2010, Blue Moon has taken part in the "Poverty Alleviation Day in Guangdong" donation campaigns for 12 consecutive years. It has donated to impoverished areas such as Qingyuan in Guangdong Province and Sandu County in Guizhou Province to improve local infrastructure.

As it celebrates its brand’s 30th anniversary,?Blue Moon will adhere to its ESG principles, to strengthen technological innovation, continue to launch green and environmentally-friendly products, steadily promote clean production, and enhance carbon emissions management. Blue Moon will also team with upstream and downstream partners to develop sustainable development strategies and cooperation models, seek win-win results and synergies through partnership, promote scientific and clean concepts of life to consumers, and advocate scientific cleaning and green consumption, thus making contributions to the realization of China's "dual carbon" strategic goal and ushering in a better future across all walks of life!

*Anti-bacteria: Staphylococcus aureus, Moraxella osloensis, and Escherichia coli are the bacteria used for experiments and tested by professional organizations. Under the condition of laboratory, this product can effectively eliminate the above-mentioned bacteria.

*Concentrated+: The active substance content exceeds 45%, three times more than the minimum national laundry detergent standard.