Environment
Environmental Management
Our company strictly complies with the laws and local regulations of the People's Republic of China, including the Environmental Protection Law of the People’s Republic of China, Water Pollution Prevention and Control Law of the People's Republic of China, Atmospheric Prevention and Control Law of the People’s Republic of China, Soil Pollution Prevention and Control Law of the People's Republic of China, and the Law of the People's Republic of China on the Prevention and Control of Noise Pollution. Through the establishment of internal systems and management procedures such as ‘Environmental Protection Management Regulations’, ‘Three Wastes' Emissions Management Policy’, and the ‘Regulations on the Operation and Management of Environmental Protection Facilities’, our company strictly controls pollution sources, ensures the normal operation of all environmental protection facilities, and guarantees the compliance of wastewater, exhaust gas, and solid waste emissions and disposal.
Our company aims to keep our pollution emission compliance rate at 100%. We're committed to building a regular pollution monitoring system and sticking to pollution emission standards, making sure to always keep in mind the importance of emission compliance. Over the past four financial years, the Company is proud to report that it has not incurred any fines or penalties related to the environment or ecology.
Climate Strategy
Our company actively addresses climate change by progressively establishing a structured energy conservation and carbon reduction management system. We conduct comprehensive analyses of climate-related risks and opportunities and integrate the processes of identifying, assessing, and managing climate risks into our overall risk management framework, thereby continuously improving our climate governance capabilities.
The Board of Directors has established the Strategy and ESG Committee to oversee climate-related matters and include them in the board agenda. This committee holds management-level responsibility for climate issues, including formulating strategic climate goals, promoting the implementation of low-carbon transition initiatives, supervising risk control measures, and regularly disclosing governance outcomes. This approach ensures the deep integration of sustainability and climate responsibility into our organizational development. The committee holds dedicated discussions on climate-related issues each year to ensure continuous oversight and integration.
Key performance indicators related to climate change, such as energy conservation, emission reduction, and green manufacturing, have been embedded into the performance evaluation system for senior management and key roles. At the same time, our company has established an incentive mechanism linked to green innovation achievements, encouraging employees at all levels to actively participate in our low-carbon transition.
Biodiversity Protection
Our company places great importance on the protection of biodiversity. A preliminary mechanism for risk identification and assessment has been established, and biodiversity-related risks have been incorporated into our overall risk management framework. We focus primarily on our own operations and neighboring areas, identifying our dependencies and potential impacts on water resources, soil, and ecosystems throughout our business activities.
In conducting biodiversity assessments, we refer to China Biodiversity Conservation Strategy and Action Plan and assess potential ecological impacts during project siting, construction, and operational stages. Key areas of inspection include disturbances to the surrounding ecosystem caused by noise pollution, water resource consumption, and land use. In response to identified risks, we have implemented a range of ecological protection measures, including optimizing plant layout, enhancing emissions control, promoting energy-efficient processes, and establishing green buffer zones to minimize negative impacts on biodiversity.
Adhering to the principle of source prevention and process management, our company is committed to safeguarding ecosystem integrity and biodiversity. We pledge to minimize ecological disruption and damage in our business operations. In 2024, our company and its subsidiaries did not engage in any production or business activities within areas designated under ecological protection redlines.
Social
Human Rights Commitment, Mitigation, and Remedy
Our company places strong emphasis on respecting and protecting human rights throughout its operations. We have established a company-wide system for human rights due diligence, designed to systematically identify, assess, and address potential human rights impacts and risks. Internal policies such as the ‘Labor Rights Protection Policy’, ‘Employee Handbook’, and ‘Production Safety Management System’ have been formulated to ensure all business operations are conducted in a lawful and compliant manner.
These policies apply to all employees, including full-time, part-time, contract, and temporary staff. Throughout our business operations, our company also encourages suppliers, contractors, and other stakeholders to comply with these standards. In addition, we regularly review areas with potential human rights risks to strengthen our preventive mechanisms and response capabilities.
Adhering to the values of equality, inclusion, and diversity, our company strictly prohibits human trafficking, child labor, forced labor, and all forms of discrimination or harassment. We promote the right to freedom of association and collective bargaining and uphold the principle of equal pay for equal work, firmly preventing any form of unfair treatment. Through mechanisms such as employee unions and feedback collection systems, our company actively listens to employees’ concerns and improves the identification and handling of human rights issues. The implementation of these policies aims to help protect the rights of employees, women, children, indigenous peoples in operational areas, migrant workers, and local communities.
Alongside our commitment to human rights, our company has also established procedures for addressing any unforeseen violations. For example, the ‘Child Labor Remediation Plan’ provides actionable guidance for management. If a child labor case is identified within our operations or supply chain, we immediately terminate the employment, verify the individual’s identity, report the case to labor authorities, and arrange for medical examinations and financial assistance. Additionally, we have implemented a Supplier Code of Conduct management system and established an anonymous whistleblowing channel. We strictly protect the identity of whistleblowers and maintain a zero-tolerance policy toward retaliation.
Protection of Employee Rights
Upholding the philosophy of ‘retaining talent with sincerity and treating people with care’, our company regards the respect for and protection of labor rights as an integral part of its sustainable development strategy, and implements this commitment through institutional development and concrete actions. We have established internal policies including the ‘Compensation Management System’, which clearly commits to safeguarding basic employee rights and enforcing the principle of equal pay for equal work. We continue to optimize a comprehensive compensation and benefits system that ensures fair and reasonable returns for employee contributions.
Our compensation policies adhere to the principles of fairness and equity, aligning job roles with appropriate incentives. Through dynamic pay mechanisms, we adjust salary levels to meet the basic living needs of employees, ensuring alignment between income and living costs. We also guarantee full wage rights during annual leave.
Our company utilizes an intelligent attendance system to accurately track working hours. Simultaneously, we are committed to improving the work environment and upgrading production equipment and processes to enhance productivity and minimize unnecessary instances of overtime work.
In the event of large-scale workforce restructuring or economic layoffs, we convene employee representative meetings in advance for discussion, and define minimum negotiation terms or notice periods. We also encourage our contractors and partners to uphold the same employee protections.
Supply Chain Management
Our company integrates the principles of sustainable development across the entire supply chain, establishing a cooperation model that is fair, just, transparent, and compliant. We have issued the ‘Supplier’s Code of Conduct’, which strictly prohibits the use of child labor or forced labor and requires suppliers to protect fundamental labor rights, including freedom of association, collective bargaining, and fair working conditions (e.g., wages, working hours, and environment). All forms of discrimination and harassment are prohibited, and strict occupational health and safety management is required. The ‘Supplier’s Code of Conduct’ also outlines environmental responsibilities, including greenhouse gas reduction, energy efficiency, pollution prevention, waste management, resource efficiency, biodiversity conservation, zero-deforestation sourcing, and sustainable land use.
Our company requires all partners to strictly comply with business ethics standards, such as anti-corruption, anti-bribery, anti-monopoly, and fair competition, By signing the ‘Supplier’s Code of Conduct’ and the ‘Anti-Corruption and Anti-Bribery Policy’. On this basis, we incorporate corporate social responsibility and business integrity clauses directly into procurement contracts, embedding ethical expectations throughout the supplier evaluation system.
From the initial supplier qualification and admission assessments, we conduct rigorous screening. During the cooperation process, we implement real-time monitoring mechanisms, and for termination or risk cases, we have established a well-defined supplier exit and traceability management system. Together, these components form a full-lifecycle governance framework that ensures ethical compliance at every stage.
Furthermore, our company actively encourages suppliers to adopt high standards in ESG practices, working together to build a responsible and sustainable value chain ecosystem, and jointly promote healthy, long-term industry development.
In addition, our company places great importance on the issue of conflict minerals in the supply chain. We explicitly prohibit the procurement of any mineral resources originating from conflict-affected or high-risk areas. Suppliers are required to establish transparent and traceable mineral sourcing mechanisms to ensure that all purchased minerals are free from links to such regions and fully comply with international ethical and responsible sourcing standards.
Governance
Board Diversity
Our company adheres to the principle of diversity and integrates it into the formation of the Board of Directors. During the nomination and appointment process, we comprehensively consider diverse factors such as gender, age, ethnicity, nationality, and cultural background. Our goal is to promote diversity within the board while ensuring professional competence and suitability for office, thereby ensuring the fairness and impartiality of board member selection
Board Effectiveness
To ensure a stable management structure, our company has established a comprehensive talent succession plan to support smooth leadership transitions and sustainable development. Members of the Board of Directors are elected on a three-year term basis through general shareholder meetings, ensuring both independence and dynamism in decision-making. There are no additional restrictions on the performance of directors’ duties, and our company fully supports directors in exercising their powers within the legal framework and Articles of Association, thereby advancing the realization of strategic objectives.
Risk Governance
Our company has established a multi-level risk oversight framework that spans both the Board of Directors and the operational level. The board oversees four key committees, forming a full-chain risk control system covering strategic planning, personnel governance, compensation and incentives, and internal control and compliance. Each committee is primarily composed of independent directors, ensuring independence and professional oversight:
l The Strategy and ESG Committee is responsible for strategic planning and risk assessment.
l The Nomination Committee manages the standards and procedures for executive selection.
l the Remuneration & Appraisal Committee oversees the fairness and rationality of the remuneration system.
l The Audit Committee is responsible for financial supervision, internal control compliance, and risk management.
At the operational level, frontline employees and department heads serve as the first line of defense, responsible for day-to-day risk management. The internal audit department serves as the second line of defense, assessing the effectiveness of frontline controls and conducting independent evaluations of key risk areas. Senior management acts as the third line of defense, overseeing the execution of controls across the organization. The external audit firm provides an independent fourth line of assurance, reinforcing the effectiveness of risk and compliance frameworks. These lines of defense work in coordination to ensure risk remains under control.
In terms of risk management processes, our company conducts regular and comprehensive risk identification, analysis, and assessment to monitor the nature, magnitude, and trends of risks in a timely manner. This enables the development of targeted response strategies and continuously improves risk control effectiveness.
Our company also actively promotes a culture of risk awareness by offering regular training on risk management for directors and senior executives, while reinforcing risk awareness across all staff. Risk management standards are embedded into product and service development processes, and risk management performance is incorporated into the incentive system for key positions, ensuring that the risk control philosophy is fully integrated into all aspects of governance and operations.
Whistleblowing Mechanism
Our company has established a dedicated department to manage its whistleblowing mechanism, ensuring proper procedures and effective implementation. The whistleblowing channels are internally managed and support anonymous submissions. All information is treated with strict confidentiality. We maintain a zero-tolerance policy toward retaliation and provide training to employees on how to use whistleblowing systems. Additionally, investigation processes related to misconduct are appropriately disclosed to enhance transparency and trust.
Donation Principles and Policy
Our company adheres to principles of transparency and prudence in managing donations. All charitable contributions and expenditures are focused on non-profit areas such as public health, charitable assistance, and regional coordinated development. All donations are made based on genuine social needs and are carried out through legal and compliant channels.
