Ensuring Energy Security and Stability

Kunlun Energy adheres to the working principle of “guaranteeing livelihoods, public utilities, and key sectors.” Focusing on our core responsibilities and primary businesses, we leverage the advantages of integrated value chain synergy to provide high-quality assurance for uninterrupted supply and stable peak-shaving in key regions, during critical periods, and for vital industries, serving as a “mainstay” for energy supply security.

  • 2025 Key Performance Indicators

    Equipment Integrity Rate above
    99%
    a total of
    280kilometres of ageing
    pipeline networks were renovated
    emergency rescue drills were conducted
    9,679times
    pipeline protection and emergency repair technical personnel training was conducted
    4,399times
    Hainan Subsidiary Secures Energy Supply for a Zero-Carbon Grand Event
    During the Boao Forum for Asia Annual Conference in March 2025, Kunlun Energy's Hainan subsidiary achieved “zero errors, zero accidents, and zero complaints” through its “four-in-one” supply security model, successfully completing its mission. Six specialised task forces were established, forming a responsibility closed-loop based on a “four-defined mechanism” (defined personnel, positions, responsibilities, and timelines). The Company conducted two rounds of “penetrating” inspections, covering 19 stations across 7 units, and utilised “grid-based” management to achieve full-coverage protection of pipelines and pressureregulating boxes. Regarding resource assurance, a dual-gas-source mechanism was activated, precisely scheduling the unloading of two LNG vessels to provide sufficient gas support for the conference. In terms of collaborative mechanisms, the Company implemented joint prevention and control horizontally with local governments and mutual guarantee of supply vertically with resource providers, creating a powerful synergy for supply security.

Safeguarding Health and Safety

Kunlun Energy insists on the coordinated management of development and safety. We are fully committed to building a safety governance system compatible with a world-class enterprise, leveraging digital and intelligent technologies to enhance levels of intrinsic safety. The Company continues to construct a safety production network involving all employees, driving a sustained and stable improvement in our safety performance and consolidating a robust foundation for the Company's high-quality development.

  • Health and Safety Management System

    Kunlun Energy has established “QHSE Committee” across all levels of the organisation to serve as the supreme decisionmaking bodies for QHSE affairs. Under these committees, specialised sub-committees and QHSE Management Offices have been established. For major safety and environmental initiatives, the Company also forms leadership groups and specialised task forces led by senior management.

  • Safety Production

    Kunlun Energy continuously strengthens the prevention and control of production safety risks, deepening the implementation of the “Two Lines of Defence” responsibilities and executing risk-tiered prevention and control for work safety.

  • Occupational Health

    Kunlun Energy has firmly established a philosophy of safe development, fully implementing the “Healthy China” initiative. The Company has organised diverse and content-rich occupational health promotion and training activities. By vigorously promoting the construction of Healthy Enterprises, the Company has achieved a continuous enhancement in the management levels of employee health and safety.

2025 “Work Safety Month” Campaign
In June 2025, during the 24th National “Work Safety Month,” the Company launched 14 themed activities across 6 categories, including speech contests, Safety Publicity and Consultation Days, and safety knowledge competitions. By combining top-level design with grassroots innovation, the Company developed a signature model for Work Safety Month activities, with a cumulative participation of 40,000 person-times.

Strengthening the Foundations of Quality

Kunlun Energy consistently adheres to the quality policy of “Honesty and Trustworthiness, Excellence and Perfection.” We reinforce our quality foundations through systematic construction, continuously deepening quality technology innovation and the upgrading of management efficiency. We embed excellence throughout the entire product lifecycle. By safeguarding public livelihood through quality and forging the future through responsibility, we continue to enhance the core resilience of the Company’s sustainable development.

  • 2025 Key Performance Indicators

    The company actively carries out mass quality activities and promotes the evaluation and improvement of mass quality activities
    20participants
    produced
    409activity outcomes
    Received awards for QC outcomes and trustworthy teams from our Parent Company
    16items
    Received QC awards at or above the provincial and ministerial level
    20items
    Advanced quality unit recognitions at or above the municipal level
    4items
2025 “Quality Month” Activities
In September 2025, the Company organised “Quality Month” activities themed “Strengthen Comprehensive Quality Management, Promote the Construction of a Quality-Strong Nation.” Through diverse formats including specialised training, case studies, skills competitions, and quality self-inspections, we enhanced employees' quality awareness and management capabilities, further solidified the quality foundation, fostered a robust quality atmosphere, and promoted an excellent quality culture. During the “Quality Month” period, over 50 media reports were published, and 99 “Quality Open Day” and “Customer Experience Day” events were held, with 2,113 participants.

Improving Customer Experience

Kunlun Energy consistently prioritises customer service as a core element of the business and development. The Company firmly adheres to the customer service philosophy of “Starting with Customer Needs, Achieving Customer Satisfaction, and Exceeding Customer Expectations,” continuously innovating service models, enhancing customer service effectiveness.The Company regularly conducts customer satisfaction surveys using methods such as telephone interviews, online surveys, scheduled on-site interviews, and “mystery shopper” undercover inspections. These provide a comprehensive understanding of user experiences. At the same time, we promptly address customer complaints through multiple online and offline channels, notify customers that their complaints have been logged, build trust, clarify follow-up procedures, incorporate customer feedback and suggestions into our product and service design and improvement processes, conduct analyses of customer service quality and implement corrective measures, and continuously optimize our service levels.

  • Reducing the burden of gas bills
    for low-income groups
  • Caring for Vulnerable
    Groups
  • Promoting Benefits for Residents
    and Businesses

  • For low-income and vulnerable users—including widows, widowers, the lonely and isolated, people with disabilities, elderly people living alone, and those on minimum income support—the company has established a dedicated register for special users and routinely carries out free home safety inspections and equipment upgrades. For users who are unable to make payments independently or are facing financial hardship, the company also provides door-to-door assistance with online top-ups; for households experiencing temporary financial difficulties, a fast-track gas supply enquiry service has been launched, whilst the company continues to explore mechanisms for implementing instalment and deferred payment arrangements, thereby refining a multi-tiered financial support system to prevent residents’ gas supply from being cut off due to payment issues.

  • The company continues to refine service measures for vulnerable groups and complex situations. It has established ‘Senior Citizens’ Service Desks’, where customer service staff patiently guide elderly customers—who may be unfamiliar with the procedures—and provide step-by-step assistance with bill payments and service transactions; ‘Uyghur-language Service Desks’ have been set up to eliminate language barriers; and the company continues to upgrade accessibility and convenience in its service centres, installing facilities such as wheelchair ramps and safety handrails in accordance with accessibility standards.

  • Kunlun Energy’s Wuhan branch in Hubei Province applies residential natural gas tariffs to childcare service providers—including full-day, half-day, hourly and temporary care facilities—serving infants under three years of age within its operational area. The reduction in gas prices following tariff adjustments amounts to 28 per cent, significantly lowering the operational gas costs for micro and small enterprises providing inclusive childcare services. This supports the stable operation of the public welfare service sector and implements an inclusive support mechanism through price discounts.

  • 2025 Key Performance Indicators

    the customer satisfaction survey covered
    119.5million users
    Customer Satisfaction
    99.5%
    Resolution Rate of Received Customer Complaints
    100%
    the Company recorded
    0incidents of privacy protection violations

Driving Technological Innovation

Kunlun Energy adheres to the principle of “aligning the innovation chain with the business chain and enhancing the value chain through the innovation chain.” We have built a highly efficient technology enablement system, focusing on breakthroughs in key technologies and the promotion of innovative achievements. By leveraging technological innovation to stimulate endogenous momentum and improve overall innovation efficiency, we are committed to achieving a higher level of technological self-reliance and self-strengthening, thereby driving the high-quality development of the natural gas industry.We have established the Kunlun Energy Technology System, which encompasses 7 major technology domains, 18 technical areas, and 42 core technologies. It comprehensively covers every link in the company’s industrial chain, prioritizes the needs of the company’s core businesses—including natural gas market forecasting, lean marketing, production operations, and safety management—and effectively guides the company’s scientific and technological innovation efforts.

  • 2025 Key Performance Indicators

    Patent application acceptance
    31document
    including
    27invention patent applications
    patents were granted
    10document
    document
    1 international standard and co-authored 1 international standard
    Participate in the compilation of international standards
    1item
    Participated in the formulation of
    7 national standards
    Participate in the formulation of industry standards
    4item
    Participate in the formulation of group standards
    6item
Construction Method Creativity for LNG Storage Tank Outer Walls at Fujian LNG Terminal
In June 2025, the Fujian LNG Terminal project, a subsidiary of Kunlun Energy, achieved a major breakthrough in the construction methods for storage tank outer walls. The project’s independently developed track-based hydraulic climbing formwork system successfully completed key technical verification and was applied for the first time in the construction of large-scale domestic full-containment LNG storage tanks. Powered by 116 hydraulic jacks and supported by an independently developed intelligent synchronous control system, the system can complete a wall lift of 3,600mm in just 40 minutes. This reduces lifting operations by over 1,300 instances and improves efficiency by 36 times compared to traditional methods, saving approximately 28 days of construction time per storage tank. Furthermore, the system is designed to withstand the high winds and typhoons prevalent at the project site, effectively overcoming construction challenges in adverse weather conditions.

Collaborating with Value Chain Partners

Kunlun Energy continuously refines the management standards for partners and strengthens the sustainable resilience of the supply chain. By leveraging digital and intelligent means, we enhance supply management efficiency and consistently promote the construction of long-term mechanisms for green procurement management. We systematically prevent and control supply risks, striving to create a supply chain ecosystem characterised by compliance, transparency, efficient synergy, and green sustainability.

ESG Factors Considered in Supplier Screening and Onboarding

Incorporating certifications and management performance in areas such as environment, quality, occupational health and safety (OHS), and business ethics into the screening criteria. Based on the verification of corporate qualifications and other information, we comprehensively evaluate business suitability, country and region, industry sector, risks associated with product categories, and ESG performance to ensure the sustainable operational capacity and stability of potential partners from the outset.

Under equivalent conditions, priority is given to the selection of high-efficiency, energy-saving,
eco-friendly, low-carbon, and recyclable green technologies, processes, and products. Preference is granted to products manufactured by Green Factories or those with green certifications, while the procurement of products with valid carbon neutral certificates is encouraged.

Establishing green procurement clauses within procurement and tendering schemes, explicitly defining requirements for the selection of green suppliers, green products, green logistics, and green packaging.

  • 2025 Key Performance Indicators

Adhere to the People-oriented Principle

Kunlun Energy regards talent as the vital source of corporate innovation and development, placing significant emphasis on the construction of the workforce and the accumulation of human capital. Adhering to the philosophy that “talent is the primary resource”, we remain steadfast in advancing our strategy of strengthening the enterprise through talent. We are committed to effectively safeguarding the legal rights and interests of every employee and stimulating the vitality of talent in value creation, thereby injecting powerful “talent momentum” into the high-quality development of the Company.

  • Employee rights protection
  • Enhancing Employee Experience
  • Promoting Employee Development

  • Kunlun Energy resolutely practises the philosophy of equal employment and has formulated and published the Labour and Human Rights Commitment, dedicated to building an inclusive, diverse, fair, and just employment environment. We strictly reject all forms of discrimination and do not differentiate between candidates based on non-professional competence factors such as gender, age, ethnicity, religious belief, or disability status, ensuring that all workers enjoy equal employment opportunities. Furthermore, we explicitly preclude the use of child labour and resolutely forbid any form of non-compliant employment practices, including forced labour or compulsory overtime. In 2025, no cases related to workplace discrimination occurred within the Company, nor were there any violations involving child labour or forced labour.

    Kunlun Energy adheres to the principle of distribution according to work, fully implements an equal pay for equal work policy, and regularly monitors the gender pay gap. The company has established a comprehensive compensation and benefits system to ensure that employees receive statutory benefits such as the “Five Insurances and One Fund,” occupational safety equipment, and paid leave, while also providing various supplementary benefits, including a corporate pension plan and critical illness coverage. The company consistently ensures that wage levels remain no lower than the estimated cost of living or the benchmark standard.

  • Kunlun Energy adheres to the principle of resonance between employee growth and enterprise development. By building a systematic career development plan and empowering training system, it comprehensively cultivates talents, motivates talents with career goals, and empowers enterprises with talents. It is committed to creating a development environment where everyone can succeed and fully display their talents, and continuously cultivates the talent dvantage of high-quality enterprise development.

    • Leadership Development Programme

      Implementing the three-tier talent development framework comprising the ‘Kunpeng Programme’, ‘Kunyu Programme’ and ‘Rainbow Programme’, we have tailored development programmes for young high-potential talent, specialist technical staff and frontline skilled workers. We are continuously nurturing current and future management backbone personnel, systematically enhancing managers’ capabilities in innovative thinking, business coordination, the implementation of low-carbon strategies and the application of new technologies; Implement tiered and categorised training management, allocating training authorisation according to management levels, and driving the implementation of training through a line-management accountability system to achieve targeted empowerment for all staff.

    • Digital Transformation and Artificial Intelligence Competency Development Programme

      In line with the wave of AI industry development and the company’s digital and intelligent transformation objectives, dynamically iterate the training curriculum. New courses on AI tool applications, intelligent operations and digital business processes have been introduced to support the digital transformation strategy, helping all staff master emerging digital technologies, continuously enhance digital productivity, and underpin the realisation of the company’s smart operations and digital-intelligent business deployment objectives; we focus on reskilling staff, providing retraining for those whose roles are affected by technological change to ensure a fair and inclusive transformation process.

    • Specialised Training on Climate Change Response and Just Transition

      Grounded in the broader context of the energy sector’s low-carbon transition, we are continuously expanding training content related to green and low-carbon initiatives, new energy businesses, greenhouse gas management and sustainable operations. We take into account the development needs of staff in different roles throughout the energy transition process, providing frontline staff with training in new skills such as new energy business operations and low-carbon technologies to help employees adapt to the industry’s low-carbon transformation.

Practising Public Welfare Responsibilities

Kunlun Energy integrates supporting charitable causes and contributing to rural revitalization into the corporate DNA, striving to be a practitioner and promoter of social public welfare. By establishing long-term public welfare mechanisms and deepening multi-value synergies, the Company continues to drive improvements in people’s livelihoods, community development, and social progress, translating national sentiment and social responsibility into tangible actions.

“Oil Seedling Plan” by Xinjiang Branch
In June 2025, Kunlun Energy's Xinjiang Branch, in collaboration with Karamay Vocational and Technical College, held the induction ceremony for the 2025 graduates of the “Oil Seedling Plan.” Simultaneously, the programme launched the on-the-job internships for the 2026 class of the Green Industry College “Orderbased” training programme. This school-enterprise collaborative education model represents a deep commitment to rural revitalisation through educational advancement and talent assistance.

Social Data Summary

  • Safety Production
  • Customer Service
  • Supplier Management
  • Employee Development
  • Social Welfare

  • Lost Time Injury Rate (LTIR)Total Recordable Incident Rate (TRIR)Customer SatisfactionResolution Rate of Received Customer Complaints

  • Number of Resident Households Inspected for SafetyNumber of Commercial Users Inspected for Safety

  • Total Number of Employees TrainedAverage Training Hours per EmployeeTraining Rate of Frontline Employees

  • Total Amount of
    Public Welfare Donations     Total Hours of
    Public Welfare Service     Number of Participants
    in Public Welfare Services     Number of Beneficiaries
    of Public Welfare Service

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