Huitongda Network (9878.HK) to Showcase Growing Investment Value through Comprehensive Upgrade in ESG Scores and Rating

Recent news shows that several mainstream institutions, including Hang Seng Indexes, China Index, and Wind, have all raised their ESG ratings for Huitongda Network (9878.HK) in 2025.

This highlights Huitongda's consistent approach and adherence to national strategies and missions, maintaining a fine balance between corporate development and social responsibility under guiding policies such as "expanding domestic demand," "building a unified national market," "focusing on developing the real economy," and "cultivating and strengthening emerging industries". It also underscores Huitongda’s growing emphasis on ESG and governance, effectively translating ESG standards into key elements that would support strategic decision-making and long-term development.

The capital market is paying increasing attention to corporate ESG management, and the size of ESG-related funds is also steadily growing. As of the end of June this year, the total market size of global ESG funds exceeded US$3.5 trillion, and market trading activity remained high.

ESG performance has become an important factor for global funds when considering investment decisions, especially those in Europe and the US. Large institutions, including the Norwegian sovereign wealth fund, have fully incorporated ESG performance into their investment assessment systems, with highly rated companies likely to attract international and long-term capital.

Since 2025, Huitongda has made strides in ESG-related work, further improving its ESG governance structure with the establishment of a Sustainable Development (ESG) Committee.

In its annual ESG report released in April this year, Huitongda emphasized that it will deeply integrate ESG concepts into corporate practices, actively promoting rural revitalization, urban-rural integration, the construction of a sustainable industrial and retail ecosystem in the lower-tier markets, and collaborations with upstream and downstream partners and other stakeholders.

Over the past six months, Huitongda's ESG practices have been widely recognized by the industry, earning notable recognitions including the "Outstanding ESG Exemplary Enterprise of the Year" jointly awarded by the Greater Bay Area Financiers Association and China Chengxin Green Finance Co., Ltd, and the “Best ESG Pioneer and Practices – Listed Company” Award at “Golden Kunpeng” China Financial Value Rankings hosted by Hong Kong Commercial Daily.

The Hang Seng ESG rating covers approximately 1,800 major listed companies in Hong Kong and Shenzhen. Its results are directly used to select constituent stocks for the Hang Seng Sustainability Index series, serving as an important "green threshold" for international funds to invest in Chinese assets. The rating not only reflects a company's true resilience across ESG, but also determines whether it falls into the investable universe of passive ESG funds and large sovereign wealth funds.

Huitongda's latest sustainability rating from Hang Seng Indexes has risen from BBB- to BBB. The company comprehensively serves over 250,000 traditional rural family-owned businesses across China by building a "smart supply chain system" and leveraging new technologies such as AI. This helps these stores transform into digital operations, expand sales, and stimulate regional market demand, creating both economic and social value at the same time. Huitongda's business strategies in China's vast rural areas have long been aligned with national policies, and in recent years, it has received numerous qualifications and honors from local governments and authorities.

Meanwhile, Wind ESG upgraded Huitongda's rating from BBB to AA; China Index also upgraded Huitongda's ESG rating from BBB to A with a score of 89.2, ranking first among 45 companies in the multi-category retail industry.

The China Index ESG rating system covers A-shares companies, Hang Seng Composite Index and some Hong Kong listed companies. It uses a nine-tier "AAA-C" system, and is hailed by domestic funds and securities firms as a "localized ESG screener." Companies with higher ratings are more likely to be included in the SSI ESG Leaders Index. As a result, Huitongda's upgrades also reaffirm its outstanding ESG performance and investment value across both A-share and H-share markets.