Modern Dairy Health and Safety Policy

1. Our Vision

To ensure the health, safety, and well-being of our employees, contractors, visitors, and cattle, and to drive excellence and continuous improvement in health and safety performance in all aspects of our farm operations.

2. Scope of the Policy

Modern Dairy strictly adheres to national laws and regulations, including the “Work Safety Law of the People’s Republic of China” and the “Regulations on Reporting, Investigating, and Handling Production Safety Accidents,” and has formulated the “Modern Farming Health and Safety Policy” (hereinafter referred to as “this Policy”). This policy applies to all employees, contractors (including transportation, loading, and unloading, cleaning, engineering management, etc.), visitors, and cattle involved in our operations, including all our farms, processing plants, transportation vehicles, offices, and other facilities. It covers various aspects of health and safety management, such as risk assessment, hazard identification, health monitoring, emergency response, accident investigation, performance reporting, and continuous improvement. It also outlines the roles and responsibilities of different parties in health and safety affairs. This policy is consistent with our company’s vision, values, and strategic objectives, as well as the relevant health and safety regulations, specifications, and industry standards.

3. Caring for the Health and Safety of Employees and Cattle

Our Employees and Cattle We are committed to providing a safe and healthy working environment for all people involved in our farm activities. We recognize that health and safety is a shared responsibility between the company, our employees, contractors, visitors, and other stakeholders. We value the opinions and feedback of our personnel and encourage them to report any hazards, accidents, or concerns. We provide them with appropriate training, resources, and guidance to enable them to work safely and effectively.

4. Health Management

We develop a health monitoring plan that includes pre-employment physical examination, annual health assessment, hearing test, immunization, injury management, stress management, and health programs. We care about the physical and mental health of our employees and create the safest work environment and the healthiest living space for them.

5. Contractor Management

We ensure that all contractors undergo pre-qualification screening before providing any work for our sites. We also audit their performance and compliance with our health and safety standards. We require all contractors to follow our policies and procedures and report any accidents or hazards to us in a timely manner.

6. Training and Communication

We provide clear instructions, information, induction training, and training to ensure that our personnel are capable of completing their tasks. We communicate and consult with our personnel regularly on health and safety issues and establish health and safety committees that meet regularly to discuss health and safety issues, review policies and procedures, monitor performance indicators, identify improvement areas, and recommend actions. We also provide a comprehensive induction training program for all new employees, covering the company’s vision, values, policies, procedures, expectations, roles, and responsibilities.

7. Monitoring and Reporting

We use defined KPIs to monitor, audit, and report our health and safety performance. We investigate all accidents, incidents, and near misses and take corrective actions to prevent recurrence. We conduct regular risk assessments for all our farm activities, including fire prevention, mechanical operation, manual handling, noise exposure, personal protective equipment (PPE), vehicle safety, working at heights, etc.

After an accident occurs, we first issue a brief report according to the accident level. Within 24 hours of the brief report, we prepare a detailed accident report. After the head of the accident unit signs the report, both electronic and signed versions are submitted to the Operations Center and the Safety and Environmental Protection Department.

8. Accident Investigation and Assessment

8.1 Establishment of Accident Investigation Team

For new occurrences of occupational disease clusters and production safety accidents, the company establishes a joint investigation team composed of representatives from the Safety and Environmental Protection Department, the Discipline Inspection and Discipline Inspection Commission Office, and the Group Labor Union. This team conducts a thorough investigation, and the findings are submitted to the Group Safety Production Committee for review and final decision. Based on this decision, the Human Resources Department issues a formal disciplinary action notice.

8.2 Accident Investigation Report

The accident investigation team issues an accident investigation report within the stipulated timeframe. The report includes the following: basic information about the accident unit; an overview of the accident, emergency response, and aftermath management; personnel casualty information (including hospital diagnostic reports); causes of the accident; determination of the nature of the accident; lessons learned from the accident; and measures to be taken.

9. Accident Handling

All units experiencing production safety accidents must adhere to the “four not-letting-go” principle: not letting go until the cause of the incident is clarified, not letting go until responsible personnel are dealt with, not letting go until corrective measures are implemented, and not letting go until relevant personnel have received education. The Group Safety and Environmental Protection Department, in accordance with the “four not-letting-go” principle, will develop a clear list of corrective actions for follow-up and tracking.

10. Regular Audit

We aim to prevent accidents and work-related illnesses by identifying and managing the risks associated with our farm activities. We comply with all relevant health and safety regulations, specifications, and industry standards, as well as our own policies and procedures. We set clear goals and indicators to measure and improve our health and safety performance.

We also conduct regular audits of the health and safety of our employees and contractors to verify their compliance with our policies and procedures, as well as the relevant laws and regulations. We record the audit results and findings and report them to the relevant parties in a timely manner. We develop improvement plans based on the audit results and follow up on their implementation.

11. Communication and Collaboration

We communicate and consult with our employees, contractors, visitors, and other stakeholders on health and safety matters. To effectively ensure the health and safety of Modern Dairy employees, during the policy-making process, we have fully considered and adopted the suggestions and opinions of the employees. We actively discussed with union representatives about specific issues such as the scope of application and management procedures of this policy, and revised the content of the policy according to their opinions to ensure that it effectively reflects employee demands and safeguards employee welfare. We foster a positive health and safety culture, where everyone is clear about their roles and responsibilities and empowered to participate in health and safety initiatives. We cooperate with other farm companies, industry organizations, regulatory agencies, and communities to share, learn, and adopt good health and safety practices.