Stock Code：688268

Guangdong Huate Gas Co. Ltd. 2023

Phone: 400-888-1188 ENVIRONMENTAL SOCIAL AND

Address：LiShui Heshunjinfeng Road Nanhai District Foshan City Guangdong GOVERNANCE (ESG) REPORT

Province Website：http://www.huategas.com/index.aspx HUATE GAS’S 2023 ESG REPORTAbout this Report

This Report is the 2nd Environmental Social and Governance Report of Guangdong Huate Gas Co. Ltd. Based on objective Appellation Description

comprehensive regulative and transparent principles this Report expounds management ideas key practices and annual achievements

for environmental social and governance work of Huate Gas in 2023.Scope of the Report Abbreviation of Company Full Name of Company

Huate Gas Company or we Guangdong Huate Gas Co. Ltd.Unless otherwise stated this Report includes Guangdong Huate Gas Co. Ltd.’s headquarters all the branches and subsidiaries with the Southern China Special Gas Institute Guangdong Southern China Special Gas Institute Co. Ltd.same scope of 2023 Annual Report of Huate Gas.Xinhui Special Gas Insititute JiangMen City Xinhui Special Gas Insititute Co. Ltd.Time Range

Zhongshan Huaxin Zhongshan Huaxin Gas Co. Ltd.Suining Country United Chemical Suining Country United Chemical Co. Ltd.From 1 January 2023 to 31 December 2023 (the "reporting period").Jiangxi Huate Jiangxi Huate Electronic Chemical Co. Ltd.In order to enhance the comparative and forward-looking nature of this report some of the contents are retrospective or

forward-looking where appropriate. This report is issued on an annual basis in line with the financial year. Asia Pacific Gas Asia Pacific Gas Industry Co. Ltd.Reporting Guidelines

Report Preparation and Approval

Guidelines on Self-regulation of Listed Companies on the Science and Technology Innovation Board of Shanghai Stock Exchange No. 1—Standard Operation

Rules Governing the Listing of Stocks on the Science and Technology Innovation Board of Shanghai Stock Exchange This report was approved by the Board of Directors of the Company on 11 April 2024 and was published at the same time as the Annual

Report. The Board of Directors undertakes to monitor the contents of the report and to ensure that it does not contain any false

The Chinese Corporate Social Responsibility (CSR) Report Preparation Guide (CASS-CSR5.0) information or misleading statements and is responsible for the truthfulness accuracy and completeness of the contents.Global Reporting Initiative Sustainability Reporting Guidelines (2021 edition)

This report is published in Chinese. The English version has been translated from the Chinese version and in case of any discrepancy

Sustainable Development Goals of the United Nations between the two versions the Chinese version shall prevail.Sustainability Accounting Standards Board SASB Guidelines

The Guidelines on Corporate Social Responsibility of State-owned Companies Access to the Report

Accuracy

You may browse or download the Report (the electronic version) at the official website of Huate Gas (www.huategas.com) or at the

website of Shanghai Stock Exchange (www.sse.com.cn) .The sources of data used in the report include the original data of the Group's actual operation public data from government

departments annual financial data relevant internal statistical statements third-party questionnaires and third-party evaluation

interviews. The financial data in this report is denominated in CNY and if there is any inconsistency with the financial report the

financial report shall prevail.Governance Product Communities

About this Report 01 Governance System 22 Innovation 48 Green Public Welfare 82

Compliance Governance 25 Product Responsibility 52 Donation 83

Message from the Chairman 05 Investor Relations Management 26 The Huate Gas Supply Chain 57 Strategic Cooperation 84

Corporate Ethics 28 Caring for Customers 60 In response to the special Report Highlights 07 85action initiative aimed at

Information Security 28 "Enhancing Quality Boosting

About Huate Gas 09 Party Building 31 Efficiency and Generating Returns"

Sustaianble Management 15

Environment Our People Future Expectations

Environmental Management 34 Rights and Benefits 64

Environmental Risk Management 37 Personnel Training 70

Resources 41 Health and Safety at Huate Gas 74

Emissions Management 43

Biodiversity Preservation 46

Appendix & Disclosures

ESG Data Summary 89

Index Table of Indicators 91

Feedback Form 92Shanghai Aerospace Automobile Electromechanical Co. Ltd.ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT (2023)

Message from the Chairman

With the rapid development of the global economy the concept of sustainable development has gained increasing popularity. Huate In terms of our people Huate Gas takes people as the centre and builds a talent highland. We uphold the principle of protecting

Gas always sticks to the original intention and is committed to realising the long-term development of the enterprise contributing the rights and interests of our employees and fostering a sense of unity. It has integrated the goal of providing the best platform for

our wisdom and strength towards the prosperous development of the gas industry and thereby contributing to the construction of employee development into our business mission. We respects the rights and dignity of our employees and priority their growth and

a better future. development. We will enhance employee welfare benefits improve the training mechanism provide employees with more development

opportunities create a positive working atmosphere and strengthen the sense of belonging and cohesion among employees.In terms of governance Huate Gas adheres to the norms and strengthens the cornerstone of governance. We always adhere to

the principle of "orderly governance solid enterprise" constantly improve the corporate governance structure ensure the In terms of social responsibility Huate Gas is grateful and actively fulfils the social responsibility. We understand the way of

transparency and compliance of our operation actively fulfil the obligation of information disclosure disclose our operation and symbiosis between the enterprise and the society and have deeply planted the guideline of "concentricity in public welfare and

financial status to shareholders and the public in a timely manner and strengthen credibility and social recognition. harmonious progress" in our actions. We actively participate in social welfare undertakings and contribute to the society through

environmental protection and donations.In terms of environment Huate Gas advocates green and carries out low-carbon production. We adhere to the road of "green

first sustainable development" strictly abide by the national environmental protection laws and regulations increase the investment Huate Gas will adhere to the core strategy of sustainable development continue to enhance its green development strategy strengthen

in environmental protection introduce advanced environmental protection technology and equipment and reduce the pollution its innovation capacity promote strategic cooperation within the gas industry and continuously optimize welfare benefits for

emission in the production process. At the same time We actively advocate green office green travelling and other environmental employees. With a more open mindset we will actively fulfill our social responsibility and join hands with all parties to create a better

protection concepts encourage employees to participate in environmental protection activities and jointly contribute to the future for the gas industry.protection of the environment.In terms of industrial development Huate Gas embraces innovation as our core soul and shares the fruit of value. Innovation is

the first power to lead the development the company to "innovation-driven industrial take-off" as the strategy focusing on Chairman：

technology research and development and product innovation and constantly improve product quality and service level to provide

customers with safer and more efficient gas products and services. We actively cooperate with upstream and downstream

enterprises to promote the synergistic development of the industrial chain and achieve resource sharing and mutual benefit.

05 06Shanghai Aerospace Automobile Electromechanical Co. Ltd.

ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT (2023)

2023 Report Highlights Governance Performance

Shareholders' general meeting 4 times

Board meeting 17 times

Supervisory board meeting 14 times

Economic Performance Anti-Corruption training 25 times

Operation revenue CNY 1.5 billion Internal risk management training 20 times

Net Profit CNY 172 million Legal training 4 times

Interest expense CNY 29 million

Total shares CNY 120 million

R&D Performance

R&D investment CNY 50.4288 million

Environmental Performance

Patents 213

Total environmental expenses CNY 944.6 million

Software publications 73

Electricity 10129154.65 kWh

Trademarks 51

Total water consumption 118376 Tonnes

Published papers 64

Total GHG emissions 14794.35 tCO2e

Our key figures

Social Performance

The total social contribution value of the company in 2023 is about CN Y 41 9 MILLION No. of volunteers 180

The social contribution value per share is CNY 3.48

Public input CNY 448.4 million

Note: Total social contribution value = Net profit + income tax expense + business tax and surcharges + cash paid to and for employees +

current employee compensation - previous employee compensation + financial expenses + donation - sewage and clean-up costs Employee benefit expenses CNY 27.676 million

Social Contribution Value per share = The average of total social contribution Value/total number of shares at the beginning and end of

the period

Employee training coverage 100%

07 08About this Report Shanghai Aerospace Automobile Electromechanical Co. Ltd.

ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT (2023)

Huate Gas Profile

Guangdong Huate Gas Co. Ltd. was founded in 1999 andwas listed on the Science and Technology Innovation Board

of Shanghai Stock Exchange on December 2019 with the stock abbreviation of “Huate Gas” (Stock Code:

688268.SH)which is the the first company in Foshan to be listed on the Science and Technology Innovation Board and

the first gas industry enterprise in China to be listed on the Science and Technology Innovation Board.We are committed to the localisation of special gases to break the very large-scale integrated circuits new display

panels and other high-end fields of gas material constraints the main business of special gases as the core of the R&D

production and sales supplemented by common industrial gases and related gas equipment and engineering business

to provide a one-stop integrated application of gas solutions.About Huate Gas

Our Culture

Vision Enterprise Spirit

Committed to gas R&D and

Harmonious enterprising

application and becoming a

pragmatic adaptable.leader in the gas industry.Business Philosophy

Achievement of customers and

get self-improvement.Values Mission

Provide the best platform for

employee development enhance

Identity responsibility equality

the competitiveness of Chinese

safety and environmental

gas industry and create

protection.maximum value for customers

and society.

09 10About this Report Shanghai Aerospace Automobile Electromechanical Co. Ltd.

ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT (2023)

20192021

Our Development

Listed on the Science and Our products enter the well-known

Technology Innovation Board. semiconductor factory in Germany.

2014 2017 Awarded the title of “Chinese 4 k i nds o f gas p roduc t s fo r 2008 Enterprise with the Advantage photolithography obtained the of Intellectual Property”. certification of Gigaphoton Inc. of Japan.

Undertook the research and Obtained Excellence Award

Identified as a high-technologyOu r p r o d u c t s development of the “Special of National Patent Award “A enterprise for the fourth time. Awarded the title of the Fourth (2021)e n t e r e d t h e Gases for Flat Panel Displays” purification method for “Top 10 Professional Electronicwell-known memory in the project of Pilot Cluster hexafluoroethane”.

1999 2011 Awarded the title of the Third Chemical Materials Manufacturers in manufacturers in Development of Strategic (2019) “Top 10 Professional China” in China’ s electronics materials South Korea. Emerging Industr ies in O u r p r o d u c t s f o r Electronic Chemical Materials industry.

Guangdong P rov i n c e p h o t o l i t h o g r a p h yManufacturers in China” in

Our products enter (next-generation display independently developed

Foshan Huate Gas Co. Participated in the research China’ s electronics materials

1996 the well-known

technology) . by us ob ta ined the

Ltd. was established. 2006 and development projects industry.semiconductor certification of ASML.combining production factory in Singapore. education and research of Awarded the title of the

Guangdong ProvincialThe research and Successfully developed Second (2017) “Top 10 Department of Educationdevelopment of special the excimer laser gas 2012 Professional Electronic mainly in respect of special gas blends was started independently and Chemica l Mater ia l s gases appl ied in theand we l aunched realized the import Manufacturers in China” in semiconductor field.Ar+CO2 blends which substitution of clinical The Hong Kong subsidiary

China’s electronics materials

became the f i r s t medical gases. was established. industry.domestic special gas

container gas.

2022

Our products have passed the

certif ication of famous

semiconductor factory in Korea.

2013 Awarded the title of “Top 20 2018 Listed Companies in Respect of 2005 2010 Corporate Governance in the Greater Bay Area in 2022”.Undertook the “High Purity Electronic GasResearch and Deve lopment and Our products into

1993 Formal ly entered the Identified as Industrialization” in the major national R&D China's well-known 2023research and development a High-tech project “Extremely Large Scale Integrated sem iconduc to r and application of electronic enterprise. Circuit Manufacturing Equipment and factory.special gases and the Complete Sets of Technology” (02 special Awarded the title of “Top 20Southern China Special Gas products entered 4 inch project) in charge of the topic “Research Listed Companies in Respect ofInstitute (the predecessor of 1998 semiconductor factories for and Development and Pilot Plant Test of Corporate Governance in the Huate Gas) was established. the first time. 2007 High Purity Trifluoromethane”. 2015 2020 Greater Bay Area in 2022”.

20th anniversary. Awa rd ed " Gu a ngdong

The rare gas products were Our products successfully entered Inaugurated a joint laboratory with Our products

Specialised Specialised and New

the Taiwan semiconductor market. Foshan Electronic Gas Research and Guangdong Industrial Technology entered the Small and Medium-sized developed and successfully

Enterprises" "Guangdong

applied to downstream. Development Center was established. Research Institute . wel l -known

semiconductor I n n o v a t i v e S m a l l a n d

Our fluorocarbon products entered the Obtained Guangdong Provincial factory in South Medium-sized Enterprises"

well-known semiconductor factory in Enterprise Technology Center Korea. "Guangdong Patent Award of

Taiwan. recognition. Excellence" "Guangdong

Manufacturing Industry Individual

Our products into China's well-known Champion".semiconductor factory.

11 12About this Report Shanghai Aerospace Automobile Electromechanical Co. Ltd.

ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT (2023)

Shareholding Structure Enterprise Honors

Honor Title Awarding Unit

Zhang Suiping

The 6th "IC Innovation Award" China Integrated Circuit

Achievements Industrialization Award Innovation Alliance

Shi Pingxiang

Huate Investment

Honor Title Awarding Unit

Fu Zhuhong

Specialized and Sophisticated SMEs The Ministry of Industryand Information Technology

Huajin Investment Huahe Investment Huahong Investment Shi Sihui

Honor Title Awarding Unit

Zhang Suihua Guangdong Patent Award of Excellence

The People's Government

of Guangdong Province

Honor Title Awarding Unit

Guangdong Huate Gas Co. Ltd. Leading Enterprises of Foshan Nanhai Nanhai District Science and

District Science and Technology Technology Bureau of Foshan City

Honor Title Awarding Unit

2023 Foshan Science and Technology

Leading Enterprises The People's Government of Foshan City

(Innovation Effectiveness)

Honor Title Awarding Unit

Specialized and Sophisticated SMEs Guangdong Provincial Department of

in Guangdong Province Industry and Information Technology

Honor Title Awarding Unit

Innovative Small and Medium-sized Guangdong Provincial Department of

Enterprises in Guangdong Province Industry and Information Technology

Honor Title Awarding Unit

Guangdong Patent Award of Excellence The People's Government ofGuangdong Province

Honor Title Awarding Unit

Guangdong Manufacturing The People's Government of

Individual Champion Guangdong Province

Shareholding Structure of Huate Gas

Honor Title Awarding Unit

National Intellectual Property China National Intellectual

Advantage Enterprise Property Administration

1314

Axiom Gases Sdn.Bha

Asian Gas Investment

Asian industrial gases

Asia International

Asia Pacific Gas

Shanghai Huayao Ding Thailand Huate

Dongguan High Energy

East China Jiangxi

Zhongshan Huaxin

Huizhou Hualong

Xinhui Institute

Guangdong Baogus Shenzhen New Dragon Changxing

Huakai Heihe

Foshan Huayan

Zhejiang Huake

Shenzhen Huaxiang

Foshan lint

Qingyuan Liansheng

Huate New Materials

Huaqi New Materials

Sihui Moistening

Huapu Technology

Jiangxi Huate

Chenzhou Xiangneng

Suining United Chemical Industry

Foshan Huayue

South China Research InstituteSustaianble Management Shanghai Aerospace Automobile Electromechanical Co. Ltd.ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT (2023)

Sustaianble Management Sustainability DevelopmentHuate Gas is well aware of the far-reaching impact of corporate social responsibility and sustainable development

on society. While continuously pursuing economic benefits We are firmly committed to the path of sustainable

development. Through the practice of sustainable development we can enhance the comprehensive value and

contribute to the sustainable development of the society.Optimising the governance mechanism of the three

Governance councils and strengthening risk management awareness.Issues Adherence to honest business principles and transparent

and reasonable disclosure of information.Improve the environmental management system and

Environmental enhance the efficiency of resource use.Issues Strict emission pollution management focusing on

ecological environmental protection.Promote the development of innovation ability and refine

Industrial the supply chain management.Issues Commitment to product quality improvement improve

customer service system.Maintaining a diverse and equal workplace and

Employee promoting the development of employees' abilities.Issues Protecting employees' occupational health and creating

shared value together.Commonwealth Focus on creating social value and actively assume social

Issues responsibility.

15 16Sustaianble Management Shanghai Aerospace Automobile Electromechanical Co. Ltd.

ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT (2023)

Sustainability Goal

Huate Gas’s Supporting Initiatives UN SDGs Huate Gas’s Supporting Initiatives UN SDGs

Integration of sustainability concepts into corporate Provide equal opportunities in recruitment welfare

strategy and daily operations； promotion training and do not discriminate against

Established a perfect governance structure of our three employees on the basis of gender age race religion

committees in accordance with the law adhered to the etc.；

principle of operating in compliance set up the Audit

Department and continuously maintained and improved Ensure fairness in employee income and establish a

our internal control system； reasonable remuneration system and incentive Governance mechanism；

Standardise the information disclosure process broaden

investor communication channels and give investors Provide women with the same job opportunities as

continuous and scientific profit distribution； Employee men and ensure equal opportunities for women in the

Continuously improve the construction of our business recruitment and promotion process；

ethics system and regularly conduct anti-corruption and Creating a female-friendly work environment

anti-unfair competition training. supported by appropriate facilities；

Provide training and retraining opportunities for the

Strengthening environmental protection measures and professional development of employees；

improving environmental and environmental risk Provide safety training and protective equipment to

management systems； safeguard the occupational health and safety of

Increased efficiency in the use of resources； employees.Establishment of wastewater waste gas and solid

waste treatment facilities to ensure that they meet Fulfil social responsibility make external charitable

standards for discharge or reuse；

Environmental donations and actively support the development of

Reduce the discharge of wastewater waste gas and charitable and public welfare undertakings；

solid waste and reduce the pollution of the ecological Participate in public welfare organise our employees

environment of the waterside； Communities to take to the streets to pick up discarded rubbish on

Firmly implement the concept of "three simultaneous" the road surface and put it into separate places；

and regular ly monitor the ecological and Promotion of co-operation and communication

environmental impacts within 5 kilometres of the between Russia and China in the field of gases.boundaries of our plants.Increase investment in scientific and technological

research and development and promote scientific and

technological innovation in the field of electronics；

Strengthening co-operation with universities and

scientific research institutes and promoting the

integration of production learning and research；

Strictly control the quality of products and provide high

Industrial quality service；

Establishment of perfect supply chain management

system and long-term stable cooperation relationship

with suppliers；

Customer demand-oriented enhance customer

satisfaction to achieve long-term stable development

and the customer's bilateral.

17 18Sustaianble Management Shanghai Aerospace Automobile Electromechanical Co. Ltd.

ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT (2023)

Stakeholder Engagement Identification of Material Issues

We are committed to establishing close communication and co-operation with all stakeholders to ensure that views and suggestions Huate Gas is committed to building a sustainable industrial ecosystem with stakeholders to achieve long-term win-win co-operation.are well received at all levels. Diversified communication channels have been established with government and regulatory authorities Based on global standards and industry best practices we conduct self-assessment to identify substantive issues and conduct in-depth

shareholders employees partners and the community to ensure that the needs and expectations of all parties are fully understood. We analyses and research on internal and external stakeholders to determine the most important issues for the year.always respond positively and endeavour to meet the needs of all parties and jointly promote the sustainable development.Stakeholder Topics of Interest Communication Channels

Environmental Protection Process for Identification of Material issues

Energy Saving and Carbon Reduction

Water Resource Management

Government Communication Meeting Policy and Regulation Company Fundamental Industry Best Practice External Public

Government Circular Economy Regular reports & Announcements Benchmarking Study Analysis Benchmarking Opinion Analysis

& Production Safety

Regulatory Agencies Daily Communication and ReportingEmployee Rights

Listed Company Training Activities

Business Ethics

Data Protection and Privacy Material issues

Social Welfare

Environmental Protection

Corporate Governance

Economic Performance General Meeting of Shareholders

Investors We identified and assessed the importance of materiality topics sorted out materiality issues and formed a materiality matrix based onSustainability Regular reports & Announcements

& the level of importance of the issues in terms of "Importance to the Company" and "Importance to the Stakeholders".Risk Management Announcement of Important Project Progress

Shareholders

Information Disclosure Investor Communication

Business Ethics

Data Protection and Privacy

Staff Congress

Employee Symposium

Corporate Governance Suggestion Box Environmental ProtectionInformation Disclosure

Production Safety Employee Satisfaction Survey Production Safety

Employees R&D Innovation

Employee Rights Corporate Culture Activities Corporate Governance

Data Protection and Privacy Proposal Management Employee Rights

Regular Training Business Ethics Product Quality

Internal Magazine and WeChat Energy Sawing and Carbon Reduction

Employee Training Law Compliance Governance

Corporate Governance Supplier Exchange Meeting Data Protection and Privacy

Suppliers Business Ethics Technology Exchange and R&D Co-operation Waste Management Customer Service

Chain of supply management Mail & Telephone Social Welfare Ecological Conservation Chain of supplymanagement

Corporate Governance

Intellectual Property Protection

Sustainability Factory Visit Water Resource Management

Data Protection and Privacy Customer Satisfaction Survey Party Building

Clients Business Ethics Customer Feedback

Shareholder and Investor Rights Protection

Product Quality Mail & Telephone

Chain of supply management

Environmental Protection

Production Safety Public Welfare Activities

Importance to Huate's Sustainable Development

Community Environmental Social Governance

Employee Rights Community Monitoring

Social Welfare

1920

Importance to StakeholdersShanghai Aerospace Automobile Electromechanical Co. Ltd.ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT (2023)

01 Governance SystemGovernance StructureIn accordance with the requirements of relevant laws and regulations we have established a three-chamber governance structure comprising the General Meeting of Shareholders the Board of Directors and the Supervisory Committee which forms a mechanism for coordination and mutual checks and balances among the authorities decision-making bodies supervisory bodies and management with clear powers and responsibilities and standardised operation which has effectively safeguarded the interests of shareholders and in particular ensured that small and medium-sized shareholders

are able to enjoy equal rights.Governance

Guangdong Huate Gas CoLtd.Shareholders

general meeting

Strategy Committee Board of Supervisors

Remuneration and Board of Directors

Appraisal Committee

Secretary of

Board of Directors

Nominating Committee

General Manager

Audit Committee

Governance Framework

2122

Securities Dept.Civil Gas Dept.R&D Center

Production Dept.Safety office

Logistics Dept.Domestic Sales Dept.Electronic Special

Gas Dept.Quality Control Dept.GM Office

Investment Planning

Dept.IT Dept.Procurement Dept.International Business

Dept.HR Dept.Financial Dept.Audit Dept.Governance Shanghai Aerospace Automobile Electromechanical Co. Ltd.ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT (2023)

“Three Boards” Governance

Shareholders’ General Meeting

The shareholders' meeting is the highest authority of Huate Gas andwe convene and hold the shareholders' meeting in strict In order to effectively promote the standardised governance and ensure scientific decision-making we have set up four special

accordance with the provisions and requirements of the Articles of Association and the Rules of Procedure for Shareholders' Meetings of the Company. committees in accordance with the relevant regulations which are responsible to the Board of Directors and perform their duties in

accordance with the Articles of Association and the authorisation of the Board of Directors and have formulated the working rules of the

The Board of Directors convened and organised the Annual General Meeting by using a combination of on-site and Internet voting to committees so as to provide the Board of Directors with scientific and professional opinions and references for the decision-making.facilitate the participation of investors in the voting at the Annual General Meeting and by counting the votes of retail investors

individually on all proposals thereby effectively safeguarding the rights of retail investors to participate in and supervise the Annual Independent Director Non-independent Director Independent Director

General Meeting. as Chairperson

21

During the Reporting Period Audit Committee √

4 Strategy Committee General meetings of 3 Extraordinary General 16 Motions were 2 3 ×

shareholders were held Meetings of Shareholders considered and passed

Nomination Committee 2 1 √

Board of Directors Remuneration and Appraisal

Committee 2 1 ×

The Board of Directors is the decision-making organ of our operation and management and the business executive organ of the

General Meeting of Shareholders responsible to the General Meeting of Shareholders for safeguarding the interests of the Company

and all shareholders. We have formulated the Rules of Procedure of the Board of Directors of Guangdong Huate Gas Co. Ltd. to clarify the work

responsibilities and ensure the standard operation of the Board of Directors' deliberation and decision-making procedures as well as During the Reporting Period

the level of scientific decision-making.We takes into full consideration the gender age educational background professional knowledge and skills industry experience and 11 meetings of specialised committees were held and a total of 23 motions were considered.other factors of the Board members to ensure the diversity of the composition of the Board of Directors while meeting the needs of

each business. The Board of Directors consists of seven directors and the existing members of the Board of Directors have

diversified professional backgrounds and they actively utilise knowledge related to their respective specialisations for the purpose of ● Audit Committee 4 times considering 11 motions;

making decisions.● Remuneration and Evaluation Committee 3 times considering 8 motions;

During the reporting period Huate Gas has held 17 meetings of the Board of Directors.● Strategy Committee 2 times considering 2 motions;

Board of Directors 7 ● Nomination Committee 2 times considering 2 motions.Chairman of the board 1

Job Title Director 4 Board of Supervisors

Independent director 3

41-50 years old 2 The Board of Supervisors is the supervisory body of us responsible to the General Meeting of Shareholders for the operation and

Age

51 years and above finance as well as the performance of duties by the Directors President and other senior management. We have formulated the Rules 5 of Procedure of the Board of Supervisors of Guangdong Huate Gas Co. Ltd. to safeguard the legitimate rights and interests of the Company and

Male 5 shareholders.Genders

Female 2

The Board of Supervisors consists of 3 supervisors including 1 chairman.Metallurgy 3

Professions Accountancy 2

Others 2 During the Reporting Period

Junior college and below 1

Undergraduate 2 We held a total of 14 meetings of the Board of Supervisors and considered 47 motions.Educational Background

Master 3

Doctor 1

23 24Governance Shanghai Aerospace Automobile Electromechanical Co. Ltd.ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT (2023)

Compliance Governance

Risk Prevention and Control Related Transaction Management

We have always adhered to the principle of compliant operation following national laws and regulations and regulatory requirements In respect of the management of connected transactions we have formulated the Decision-making System for Connected Transactions in

and have made risk management compliance management and internal control the cornerstones of business development. Through accordance with the PRC Company Law the Accounting Standards for Enterprises No.36 the Rules Governing the Listing of Stocks on the STAR Market of the

internal audits and corrective actions it ensures the standardisation and accuracy of business operations. Meanwhile we attach Shanghai Stock Exchange and other relevant laws and in conjunction with our actual situation to clearly stipulate the deliberation and

importance to the establishment of risk and internal control management systems continuously improve relevant systems and disclosure procedures decision-making procedures etc. are clearly stipulated. We strictly implement the connected avoidance

processes and enhance the risk awareness and response capabilities of our employees. For surety business we strictly monitor and mechanism and when considering connected transaction matters connected directors and connected shareholders must avoid voting.ensure that it complies with the law and avoids any irregularities. We always follow the legal requirements to ensure the compliance

and soundness of the business.Through the operation analysis and evaluation of the internal control system we effectively prevent risks in operation and management

and promote the achievement of internal control objectives. We will continue to strengthen the construction of internal control further During the Reporting Period

establish and improve the internal control system that is compatible with our scale of operation and business scope etc. so as to

promote the healthy and sustainable development.We did not engage in any irregular connected transactions.Internal Control Management

Huate Gas has always insisted on operating in compliance with the law and has formulated a series of systems such as Basic

Standard for Internal Control of Enterprises Internal Audit System and Internal Reporting System for Material Informationwhich provide

comprehensive guidance and norms and ensure the effective operation of internal control. In order to guarantee the safety of our Investor Relations Management

operation and management and to improve the operation efficiency and profitability we have organised 20 times of internal

control training with 15 participants and 15 hours of training. In order to strengthen communication between Huate Gas and investors especially small and medium-sized investors and to promote

The Audit Committee is the highest responsible department for our internal control and the Audit Department has been set up investors' understanding of us. In accordance with the Guidelines for the Administration of Investor Management for Listed Companies and other

under it to inspect and supervise the establishment and implementation of our internal control system etc. which provides relevant regulations and taking into account the actual situation we have formulated the Investor Management System which aims to

reasonable assurance for our lawful compliance in operation and management safety of the assets financial reporting efficient enhance the transparency of our production and operations enable investors to better understand our operations and effectively

operation and the truthfulness and completeness of relevant information. We continuously pay attention to and evaluate the safeguard the rights and interests of investors.operation of internal control and regularly invite third parties to evaluate and certify our internal control system so as to

effectively prevent risks and provide guarantee for sound development. The annual Internal Control Assurance Report is published on

the website of Shanghai Stock Exchange together with the annual report.Information Disclosure

During the reporting period we conducted a self-evaluation of the effectiveness of internal controls at the head office and subsidiaries

and no significant deficiencies in the design and implementation of internal controls were identified throughout the year. We standardise the information disclosure process and strictly implements our internal Information Disclosure Management System

Information Suspension and Exemption Disclosure Business Management System Voluntary Information Disclosure Management System and other relevant

systems to strengthen the quality of information disclosure ensure the truthfulness accuracy completeness and timeliness of

information disclosure and safeguard the investors' right to know which are published in China Securities Journal Shanghai Securities Journal

Tax Payments Securities Times Securities Daily and the website of Shanghai Stock Exchange and other platforms for investors to read.We strictly comply with national tax laws and regulations always uphold the principle of paying taxes in accordance with the law

complete tax declaration and payment in a timely and accurate manner in accordance with tax management regulations ensure that

taxes are paid in full and does not engage in any unlawful acts such as tax evasion and tax avoidance. Our management attaches great

importance to tax management and ensures the compliance and accuracy of tax processing by strengthening the construction of

internal control and supervision mechanisms to reduce tax risks. During the Reporting Period

During the reporting period we achieved good tax management results which effectively safeguarded the sound development. We 4 Periodic reports ; 153 Interim reports have been disclosed to the public.have always adhered to the principle of operating in good faith and resolutely eliminated any form of tax violation to safeguard our

reputation and long-term interests.

25 26Governance Shanghai Aerospace Automobile Electromechanical Co. Ltd.ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT (2023)

Investor Communication Corporate Ethics

In order to further strengthen the communication between Huate Gas and investors and potential investors to enhance investors'

understanding of us and to further improve the corporate governance structure we have established an investor relations management Anti-Corruption

function formulated the Investor Relations Management System taking into account the actual situation actively organised performance

briefings through various channels platforms and levels and conducted investor relations management activities using new media. At Well aware of the importance of integrity and honesty for the development of the company Huate Gas attaches great importance to

the same time we have set up an "Investor Relations" section on our official website (www.huategas.com) to facilitate investors' access the work of advocating cleanliness and anti-corruption construction and resolutely prevents corrupt behaviours. We strictly abide by

to relevant information. We also actively respond to investors' questions through emails conference calls on-site surveys and SSE the laws and regulations and regulatory requirements and have formulated the Business Ethics Management System which adopts a

e-interaction and strive to present a true transparent and compliant image of the listed company. zero-tolerance attitude towards any illegal and corrupt behaviours and resolutely stops and combats them.During the Reporting Period During the Reporting Period

We held a total of 4 regular report performance briefing sessions 1 collective investor reception day e interactive We organised 25 training sessions on anti-corruption and integrity with 50 hours of training. We did not experience

response to 49 the response rate of 100%. At the same time we organise 100+ investor exchanges with 400+ any major violation of integrity management incidents no corruption and no facts of legal proceedings involving

participating organisations. violation of any domestic or foreign misconduct throughout the year.Investor Returns Anti-Unfair Competition

We attach importance to creating value for our shareholders focus on rewarding our shareholders and society with excellent Huate Gas is well aware of the importance of the principle of fairness and honesty in business competition which is not only related

performance strictly implement the profit distribution policy stipulated in the Articles of Association formulate the shareholder return to the reputation and long-term development of the enterprise but also the respect and maintenance of consumers and the whole

plan for the next three years (2022-2024) and continue to establish and improve the system related to profit distribution in conjunction market order. Therefore we firmly reject all unethical or illegal business practices such as false publicity price fraud commercial

with the actual situation further improve the decision-making and supervision mechanism of dividend distribution in a sustainable bribery and so on.scientific and stable manner and actively reward the majority of our investors.During the Reporting Period

Huate Gas's 3-year Cash Dividend CNY

There were no lawsuits related to anti-unfair competition antitrust and antimonopoly.Key performance 2023 2022 2021

Dividend per 10 shares Information Security

53.993.5

(including tax)

Information Security Management System

Cash dividend amount

(including tax) 59941393.50 47893302.82 42000000 In order to protect the interests of the company from being infringed upon enhance the competitiveness of the enterprise and

strengthen the management of our trade secrets Huate Gas has formulated the Confidentiality Management Provisions IT Information Security

Management Provisions and other internal management systems and put forward the information security policy of Active Prevention

Cash dividend amount as a Timely Detection Rapid Response and Ensuring Security to enhance the awareness of the staff of the information security to

percentage of total profit 46.62% 42.62% 32.48% provide a reliable guarantee for the stable operation of the information system so as to achieve the laws and regulations to be

distribution observed and acted in accordance with the rules and regulations.At the same time we have set up the Information Security Organisation to ensure the safe efficient and stable operation of the

security system.

27 28Governance Shanghai Aerospace Automobile Electromechanical Co. Ltd.ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT (2023)

Safeguards

Concept Our Actions ● Employees need to sign a confidentiality agreement

● Continuously improve and implement information security measures to prevent information ● All project team members of high-security projects sign a special confidentiality agreement

Proactive Prevention Management of

security incidents. and receive information security training and project personnel are required to work centrally

Information

in the project area.● Through the information network monitoring platform and centralised log management system Security Personnel

Timely Detection together with administrative monitoring security and other measures information security risks ● According to the Key Positions (Information Security) Management Rules establish a list of key

are detected in a timely manner. positions for information security and conduct information security training.● Relying on the alarm events provided by the information security support system and the early ● Organise information security training for new employees to ensure that employees are clear

warning information provided by the administrative security and various functional departments Information about their information security responsibilities.we will do real-time follow-up and report different events to the relevant business leaders Security Training

Regularly organise information security training for current employees.Rapid Response respectively; ●

● For those that may cause local or global impacts they are promptly reported to the IT manager ● Establishment of internal audit team.for processing and according to the level of the incident they are sequentially reported to the

● Carry out information security internal audit at least once a year.information security leading group for processing.Strengthening of ● The audit team promotes the relevant responsible departments to improve on the problems

Safety and found in the audit.Security Capacity

● Adopting data encryption tools to prevent unauthorised leakage of confidential data.Information Security Organisation

● Monitor the real-time status of servers and network devices in the domain through monitoring

software and generate logs.● Coordinate and organise our information security work and report directly to the immediate

leader. ● Set up an emergency response team to control the scope of information leakage and

Information

● According to the needs of business development formulate the our information security system investigate the incident.Leakage Incident

planning and promote the deployment implementation and evolution of the information security

Contingency Plan ● Formulate HT-IT-002 IT Major Emergency Overall Emergency Response Plan to deal with the

system.Information emergency situation in the information server room.Security Officer ● Organise security system audits and fully explore assess and eliminate our information security

risks.● Formulate contingency plans for information security risks. During the Reporting Period

● Organise the disposal of information security emergencies.

4 Information security training sessions were conducted 20 participants in training

● Preventive warning and notification of information security.

6 hours of training 0 Information security-related incidents

Information ● Organise and manage the technical team of the department coordinate the resources and

Security division of labour of the department.Leadership ● Participate in the construction of information security system and projects and promote the

Group implementation.● Carry out the tasks assigned by the superior responsible for dealing with unexpected information

security incidents to ensure that our IT system is safe efficient and stable operation.Department ● Responsible for monitoring and managing the information security of the department and

Manager requiring the information security of the department to be implemented according to the

national information security requirements. And cooperate with IT department to implement the

overall IT security construction.

29 30Governance Shanghai Aerospace Automobile Electromechanical Co. Ltd.ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT (2023)

Party Building Visit to the Former Site of Nan San Hua Labour Committee

Huate Gas adheres to the original intention taking Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as the After the learning and exchange meeting of party building activities the party members arrived at the former site of South

guidance closely combines with the spirit of CPC Central Committee and Guangdong Provincial Party Committee's Economic Work Sanhua Labour Committee for a visit together. Through the combination of theory and practice the party members

Conference closely combines the Party building work with production and operation and takes the Party building as the leading role revisited the history of the party traced the red marks and once again deeply felt the struggling spirit of the Communist

in promoting the overall development. Party of China which is not afraid of hardship and difficulties and inspired the mission to bear.During the reporting period in order to strengthen the staff's understanding of the history of the Party and the Party committee’s

theories we organised a number of staff to participate in activities to learn about the Party's history and to visit the old site of the

Workers' Committee. It also stimulated the enthusiasm and creativity of the party members and injected a strong spiritual impetus for

the sustainable development and innovation. Huate Gas will continue to deepen the party history learning and education promote the

overall quality of the staff team and contribute to the realisation of our development goals.Party and Group Construction

The Party branch of Foshan High-tech Industry Association and the Party branch of the company jointly carried out the

Party building activities with the theme of "Remembering the mission of the beginning strengthening the responsibility to

bear" with the participation of nearly 30 Party members and activists. The activity invited the professor of Marxism School

of Foshan Institute of Science and Technology to share the spirit of the 20th CPC National Congress socialist core values

and patriotism which strengthened the sense of responsibility of the party members."School-Society-Enterprise" Joint Theme Day Activity

In the afternoon of 25th April the party branch of Heshun Primary School together with Lishui Town Education Development

Centre Hefeng Village and Huate Gas Co. The party members first visited the production area of Huate Gas and experienced

the advanced technology. Afterwards they studied the important speech of General Secretary Xi Jinping in the party building

room. Finally the three branches of "school society and enterprise" had in-depth exchanges on the topics of party building

improving the professional ability of party members and exploring new modes of party building work.

31 32Shanghai Aerospace Automobile Electromechanical Co. Ltd.

ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT (2023)

02 Environmental ManagementPerfection of Environmental Management SystemHuate Gas consistently puts environmental protection and ecological civilization construction in the core position upholds the policy of conservation protection and restoration promotes the coordination of development and resources and environment so as to build a resource-saving and environment-friendly enterprise.Key indicators of Huate Gas’s environmental performance in 2023

Environment CNY 944.6 Thousand in total environmental protection expenditures;100% simultaneous operation of environmental protection facilities;

100% implementation rate of "three simultaneous" environmental protection for construction projects.

We conduct in-depth research and implementation of environmental protection laws and regulations focusing on

enhancing strategies and systems while continuously integrating green and low-carbon concepts and technologies

into production and operations. To address existing and potential ecological environmental issues effectively as

well as to strike a proper balance between production operations and the ecological environment we have

developed a comprehensive set of environmental management rules and regulations that have been compiled into

reference materials.Our environmental management system is certified for compliance with the requirements of ISO 14001:2015

“Environmental management systems – Requirements with guidance for use”.ISO 14001:2015 Environmental Management System ISO 14001:2015 Environmental Management System

Certification of Guangdong Huate Gas Co. Ltd. Certification of Jiangxi Huate Electronic Chemical Co. Ltd.

33 34Environment Shanghai Aerospace Automobile Electromechanical Co. Ltd.ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT (2023)

Structure of Environmental Management System Implementation of the Environmental Policy

We place great emphasis on environmental protection efforts increase investment in environmental protection and strictly adhere to As a responsible manufacturing enterprise we earnestly fulfill our environmental obligations and are committed to realizing our

the relevant rules and regulations for environmental management. The general manager assumes the highest responsibility and commitment to being environmentally friendly. We continuously improve our environmental management system increase

decision-making authority for safety and environmental protection utilizing the HES department as a liaison to connect with department investment in environmental protection and set environmental management targets based on business situation and national

heads in order to establish Huate Gas's environmental management structure. "double carbon" goals.Structure of Environmental Management System Environmental Target and Achievement Status

Executives of Responsibility Target

Structural Units

Environmental Target Actual Performance Achievement

● Responsible for managing quality environment and safety by establishing an effective management Status

system and ensuring the successful implementation; No gas pressure vessel explosion and major leakage

The number of leakage accidents is zero

General ● Communicate the significance of complying with customer and regulatory requirements to the entire accidents

Manager company and identify and provide the necessary resources for effective management system

implementation; Non-fire accident The number of fire accidents is zero

● Responsible for assessment continuously improve quality environment and safety management system.Hazardous waste is transferred legally and handed over

Full legal disposition All achieved

● The highest principal of wastes treatment; to qualified units for treatment

● Conscientiously promote and enforce environmental protection policies laws and regulations while

Reduce electric power consumption Output value per kWh ≥ 150 thousandsclosely monitoring and inspecting their implementation across various departments with particular

emphasis on the production workshop;

● Responsible for cooperating with superior authorities to carry out inspection and investigation Noise emission compliance No excess emission

Division formulating the rules of environmental protection management system as well as maintenance and

Principal improvement of various environmental protection equipment;

● Responsible for the formulation of assessment methods for environmental protection staff and put

forward rewards and punishments for contributors to environmental protection and those responsible for

accidents; In order to ensure the steady progress of environmental protection work achieve expected environmental protection goals strengthen

● Implement the work plan of cleaner production organize and coordinate environmental monitoring work; leadership and management in environmental protection efforts safeguard employee health during production labor and prevent

pollution of the environment as well as effectively prevent incidents of environmental pollution we have established an Environmental

● Organize investigation of environmental accidents. Responsibility System and Environmental Protection Target Responsibility System ensuring vertical accountability from top to bottom and

horizontal responsibility across all levels.● Develop environmental protection work plan layout testing projects;

● Supervise the implementation of environmental protection management system organize the relevant

departments to negotiate and discuss the problems found come up with solutions to the problems and

report to leaders at any time;

● Apply for technical transformation of environmental protection equipment electrical appliances etc;

HSE

● In the management of construction projects strictly control the "three simultaneous" and ensure the

normal operation of environmental protection facilities;

● Responsible for the preparation of environmental accident emergency plan and regularly organize

personnel to conduct drills and overall planning of hidden danger investigation;

● Responsible for the daily management and operation of environmental protection work.Ministry Investment Quality

of Audit Planning Control Finance Sales Product

International

Business

Functional

Department Research and

Purchasing Human Logistics Technology

Resource Bond IT DevelopmentCenter

35 36Environment Shanghai Aerospace Automobile Electromechanical Co. Ltd.ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT (2023)

Emergency Measure

Environmental Risk Management

We continue to monitor and manage environmental risk receptors environmental risk source substances environmental risk units and

Our System major risk sources regularly analyze and review historical environmental emergencies and prevent and control environmental emergencies.Huate Gas follows the principle of "prevention first" strictly carries out environmental risk inspection and assessment and establishes

a series of environmental risk management systems such as Risk and Opportunity response measures control Procedures Environmental factor Risk group Description Risk management Probability

identification and importance control procedures and Hazard identification Risk assessment and control measures determination procedures. We are

committed to carefully implementing risk control measures to further strengthen the monitoring and management of environmental Leakage of Develop hazard inspection system and arrange personnel to conduct regular

risks and strengthen environmental supervision. hazardous The leakage mater ia l i s inspection and set up 24h monitoring in the storage tank area.chemicals in tank discharged into the surface Set fire hydrants in the corresponding positions in the warehouse and storage

Low

Huate Gas regularly conducts strict inspection and assessment of the environmental risk management system and timely reevaluates area or storage water through the storm water tank areas.and revises the control procedures to ensure their adequacy and suitability. area network. A 150m3 cofferdam area is set up in the methanol storage tank area as an

Chemical leakage Hazardous wastes such as fire emergency pool and a 750m3 emergency pool is set up in the northeast side Low

Domestic sewage sand used in the accident are of the plant area equipped with valves and pumps.and production not properly disposed of and Empty barrels are set in the raw material warehouse to transfer leaking Low

Our Approach wastewater leakage affect the environment. chemicals.Hazardous waste Leaking chemicals volatilize and The plant rainwater discharge outlet is equipped with a cut-off valve

pollute the atmosphere.Huate Gas continues to improve the environmental risk prevention and control and emergency measures system formulates the "Huate leakage in holding Waste fire sand and other hazardous waste used in the accident shall be Low

Gas Emergency Plan" sets up an emergency organization and builds an environmental emergency response plan for us and room disposed of outside.surrounding enterprises district level and municipal level. Through the cooperation we can minimize the loss event impact and The fai lure of waste gas

pollution level in the shortest possible time and with minimal resources. treatment facilities leads to the

Gas leakage escape of waste gas which Stop filling and other processes of production. Low

endangers human health and

pollutes ambient air.Establish hazard inspection system and arrange personnel to conduct regular

inspection.Emergency Plan for During the fire fighting the fire The warehouse and storage tank area are equipped with more perfect fire Emergency Command

fighting wastewater containing fighting facilities fire lanes and fire spacing.Environmental Emergencies

in Foshan City chemicals is produced which

There is a 750m3 emergency pool in the northeast corner of the factory and

spi l ls everywhere and is the rainwater collection pipe network in the factory is used as the fire waste

discharged into the surface water collection pipe network in the whole factory. We set a cut-off valve at

Fire accident water through the rainwater the total rainwater discharge outlet and the rainwater pipe network at the Medium

Emergency Office pipe network. other end is connected to the emergency pool. The cut-off valve is also set

In the process of fire a large before the emergency pool and the bottom of the rainwater stop valve is flat Hainan District Emergency

number of toxic and harmful and the rail is set. By closing the rainwater cutoff valve and opening the cutoff Plan for Environmental

smoke is produced which valve of the emergency pool the rainwater drainage in the factory can be cut

Emergencies pollutes the atmosphere. off. The fire fighting wastewater enters the emergency pool through the

rainwater pipe network in the factory. If the amount of rainwater and fire

fighting wastewater is too much the water pump can be used to quickly

pump it to the emergency pool.Guangdong Huate Guangdong Huate

Other Emergency

Gas Co. Ltd. Gas Co. Ltd.Rescue Plans for

Production Safety Emergency Plan

Surrounding

Accident for Environmental

Enterprises

Emergency Plan Emergencies

Huate Gas emergency rescue organization structure Huate Gas emergency plan system

150m3 emergency pool 750m3 emergency pool

3738

Logistics Support Group

Emergency Monitoring Team

Integrated Coordination Group

Site Disposal TeamEnvironment Shanghai Aerospace Automobile Electromechanical Co. Ltd.ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT (2023)

Training Climate Change

In order to better carry out emergency rescue operations for environmental risk accidents we have set up an emergency rescue team Huate Gas followed the relevant laws and regulations and formulated a comprehensive emergency response plan for production safety

which is based on the engineering production operators. After the team is set up the training of safety knowledge and rescue accidents aiming to further improve our defence strategy in the face of various natural disasters and to build a set of systematic

professional knowledge is carried out once a month. The environmental protection technicians teach the rescue personnel safety and standardised and institutionalised response mechanism against typhoons and rainstorms.rescue professional knowledge and regular drills and assessments are carried out.In order to ensure that rescue and relief operations in the event of typhoons and storms are carried out in an orderly and efficient

manner we have set up a typhoon and storm emergency response team to ensure that in the event of a disaster we can minimise

Hydrogen tube bundle filling leakage fire sudden environmental events casualties and property damage and ensure that normal safe production and life are not affected.and emergency evacuation drill

To improve safety awareness and emergency response Raising Environmental Awareness

among employees we conducted an emergency

environmental incident and evacuation drill on July 18 To ensure our employees understand the relevance and

2023. The drill aimed to enhance self-rescue and importance of their work to the environmental management Reporting period

rescue ski l ls in the event of special equipment system we provide regular training sessions. These sessions

accidents improve rapid response emergency rescue deepen their knowledge and understanding of the

and collaborative rescue abilities and comprehensively environmental management objectives and enhance 6 environmental training in calendar year 2023;

improve the ability to deal with sudden production communication through regular meetings thematic studies

safety accidents and environmental incidents such as and cultural newsletters. Our aim is to contribute to the 71 employees participated in training.hydrogen tube bundle car charging leakage and fire. achievement of the management objectives.Inspections

We have established a responsibility system for environmental impact hazard investigation and management with the Environmental

Protection Health and Safety Department as the responsible organisation for hazard investigation and management and departmental

managers leading departmental technicians and cooperating with the relevant departments of the enterprise to carry out environmental

impact hazard investigation and management and to establish and implement a post responsibility system for environmental impact

hazard investigation and management on a level-by-level basis.Environmental Impact Hazard Identification To improve the superv is ion and management of

environmental protection regulate employee behaviour and

enhance their environmental awareness we have created

In order to identify assess and control risk factors that the 'Environmental Protection Reward and Punishment

may have a negative impact on the environment we Management System'. This system will punish employees

conduct regular general hazard inspections specialised who violate environmental regulations based on the severity

hazard inspections seasonal hazard inspections of their actions and reward those who make outstanding

pre-vacation hazard inspections and daily hazard contributions to environmental management.inspections. Hidden hazard inspections are used to detect

unsafe human behaviour unsafe conditions and

environmental influences in advance and to identify and

resolve potential problems in time to prevent and reduce

environmental pollution.Ethylene Oxide Gas Leakage Emergency Disposal Exercise

39 40Environment Shanghai Aerospace Automobile Electromechanical Co. Ltd.ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT (2023)

Resources

Energy Management Energy Efficiency

Huate Gas consumes mainly electricity diesel and petrol during production and operation. To enhance energy management we Energy Saving Technologies

diligently study and implement General Secretary Xi Jinping's guidance on energy conservation and environmental protection. We

continuously refine our energy management system to achieve our energy-saving and consumption-reduction objectives. To strengthen corporate energy and conservation management we prioritize energy-saving technological transformations and promote

enhanced energy efficiency and reduced emissions through our technological innovation strategy. During the reporting period Huate

Gas focused on transforming production facilities to save energy planning plant areas more efficiently and developing a recycling

economy. These efforts were aimed at exploring energy-saving potentials improving energy efficiency and reducing energy waste.Energy Conservation Leading Group

Layer Person incharge Duty

● Responsible for researching and making decisions on major issues of energy conservation and

General listening to regular reports on the work of the deputy head and members of the team.Group leader

manager ● Formulate work requirements for promoting energy conservation and energy management and

propose specific energy conservation targets to the Energy Conservation Group.● Regularly check the implementation of energy-saving measures in each department and host a

Director of regular meeting on energy management once a month.Deputy leader

Operations ● Formulate assessment methods with clear rewards and punishments.● Implementing the renovation funds for energy-saving planning.● Responsible for specific energy management and promoting the implementation of our energy

efficiency improvement energy saving planning energy saving training and energy saving

publicity.Departmental

Members ● Handle the relationship between daily production and energy-saving renovation implement the managers maintenance and renovation time of energy-saving projects and ensure the successful

completion of renovation projects.● Energy efficiency training and energy efficiency promotion.Energy Saving Technology - Energy Saving Air Compressor

Energy Consumption by Huate Gas (2023)

Diesel（tons） 2762.41 Promotion

Direct Energy

Huate Gas is committed to promoting energy-saving and emission reduction by actively carrying out energy-saving training and

Petrol（tons） 111.58 publicity. We urge our employees to form good behavioural habits of consciously fulfilling energy-saving and emission reduction

eliminating waste and contributing to the development of the enterprise. This will ensure that the overall development strategy can

be achieved.Indirect Energy Electric power（KWh） 5409225

We focus on low-carbon operations and always aim to save resources and eliminate waste in our daily office work. We also strive to

Note: The above data are consolidated. promote awareness of the low-carbon economy energy-saving and green office practices among our employees. To achieve this we

strictly control the power consumption of lighting and electrical equipment in the office area and encourage employees to practice

Huate Gas commits to complying with energy laws regulations and other requirements. We actively implement the national energy-saving actions. Our goal is to enhance the awareness of energy-saving and emission reduction among our employees.'dual-carbon' strategy promote clean production reduce energy consumption at the source and adopt new energy-saving Additionally we frequently organise events focused on energy conservation and carbon reduction to enhance employees'

technologies processes and materials to improve energy efficiency and promote the development of a circular economy. It uses energy comprehension of the importance of energy efficiency and emission reduction. This will enable us to more effectively advance our

efficiently establishes and improves energy management fulfils the social responsibility and achieves sustainable development. objective of achieving carbon neutrality.

41 42Environment Shanghai Aerospace Automobile Electromechanical Co. Ltd.ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT (2023)

Water Stewardship Wastewater Management

We value the management of water resources and adhere to the concept of conserving every drop of water. We prioritize the To improve our environmental performance competitiveness and promote sustainable development while achieving cleaner

daily maintenance and management of water supply equipment and pipelines during production and office operations. We strictly production Huate Gas has developed a wastewater management system in compliance with relevant laws and regulations. This system

prohibit running risking dripping and leaking and eliminate the occurrence of prolonged water flow to ensure the rational use strengthens our control and management of water pollutant discharges during our production process.of water resources.The wastewater generated in our production operation includes staff living sewage kitchen wastewater production wastewater and

empty 12mL gas cylinder cleaning wastewater. During the reporting period we continued to recycle wastewater developed advanced

Reporting period industrial wastewater treatment technologies such as the recycling of RO concentrated water optimized wastewater management and

promoted wastewater and sewage reduction.

118376 tonnes of water consumption 6180 tonnes of water saving 5% of water recycled

Reporting Period

Green Office 46333 tonnes of wastewater Recycled 9159 tonnes of wastewater

At Huate Gas we pay attention to details and guide our work based on concepts. We incorporate the idea of resource conservation

into every aspect of our work. We aim to improve our office's sustainability by implementing several measures. Firstly we will strengthen Wastewater Discharge Indicators

our management of office supplies and reduce the issuance of paper notices. We also encourage double-sided printing and will publish

all notices and announcements online. Additionally we have established a management system for the collection and use of office Sewage Processes

supplies and accounts to reduce the waste of disposable office consumables. Secondly we will adopt the form of telephone or video Type Discharge

conferencing instead of traditional on-site meetings to reduce unnecessary travel. We will also regulate the use of cars for travelling in 2023 tons Preprocessing Methods Disposal

and advocate the use of new energy vehicles to effectively save travelling costs and reduce the consumption of resources. Domestic

66340 Tertiary septicsewage After meeting the local Guangdong pre-treatment

"Hydrolytic acidification + contact provincial standard it is discharged to

Kitchen Grease trap5847 oxidation + precipitation + disinfection the Hegui Wastewater Treatment

wastewater pre-treatment process" treatment. Plant via the Lishui Municipal Pipeline

Production

Emissions Management 29800 Network.effluent

Self-built sewage treatment facilities

Recirculation back to the cleaning

Water for (treatment process of coagulation and Huate Gas adheres strictly to all relevant laws and regulations and continuously strengthens the management of environmental 7620 line equipment cooling make-up sedimentation + A/O biochemical +

emissions to ensure compliance with applicable laws regulations and standards. cleaning water and water spray make-up membrane b io logica l react ion)

water no external emissions.treatment.Environmental Pollution Management Measures Air Pollution Management

● Environmental monitoring is implemented with a focus on monitoring each pollution source and maintaining accurate Huate Gas is committed to managing air pollution by strictly controlling air pollutants generated during production and operations. We

records. A third party is commissioned quarterly to test exhaust gas wastewater and other pollutants. aim to minimise the environmental impact on our operation site by monitoring exhaust emissions at least four times a year during

periods of relative production stability.● Manage the environmental protection facilities operation record ledger strictly. This includes the purchase use and

storage management ledger of raw and auxiliary materials hazardous waste collection and handover records transfer and We use a combination of classified collection efficient treatment equipment and refined management to reduce emissions.handover records and records of environmental emergencies. Additionally we use spray purification towers to recycle and treat exhaust gases.● Hazardous wastes generated are entrusted to qualified units for treatment.● Each production department and team maintains equipment and facilities to prevent leakage.Reporting Period

● Implement a pollution accident reporting system. In the event of a pollution accident issue a preliminary report to the

district environmental authority. 1702.1 tonnes of exhaust gases were emitted in fiscal year 2023.

43 44Environment Shanghai Aerospace Automobile Electromechanical Co. Ltd.ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT (2023)

Noise Control Storage Room for Hazardous Waste

Huate Gas generates noise during the operations mainly from the operation of vehicles and various mechanical equipment. As an

enterprise committed to building an efficient and environmentally friendly production process Huate Gas is well aware of the impact Regarding the end treatment we established a

of noise on our employees and the surrounding community. To minimize the impact on the surrounding acoustic environment we have temporary storage room for hazardous waste in

implemented several measures. These include regular monitoring of ambient noise at the plant boundary as well as the use of sound compliance with GB18597-2001 regulations. We

isolation and vibration-damping techniques. Our goal is to ensure that the noise at the plant boundary complies with Category 2 displayed warning signs for the hazardous waste storage

standards as outlined in the Standard for the Emission of Noise from the Plant Boundaries of Industrial Enterprises (GB12348-2008). area and implemented measures to protect against

wind rain and sunlight. Additionally we packed the

Waste Handling hazardous waste in bags attached hazardous waste

labels to the packages in a visible location and

Huate Gas has formulated Waste Management Control Procedures to manage solid waste generated during production and operations. We submitted a hazardous waste management plan along

have also established a responsibility system for pollution prevention and environmental control throughout the entire process of solid with solid waste disposal measures to the competent

waste generation collection storage transportation utilization and disposal. In addition Huate Gas has created solid waste department of ecology and environment.management accounts to accurately record the types quantities flow storage utilization and disposal of solid waste. These measures

ensure that solid waste can be traced and queried and prevent industrial solid waste from polluting the environment. We must establish

a solid waste management account to record the type quantity flow direction storage utilization and disposal of solid waste truthfully.It should also ensure that solid waste is traceable and accessible while taking measures to prevent and control environmental pollution To ensure our employees fully comprehend the dangers of hazardous waste and the significance of environmental protection we have

caused by industrial solid waste. arranged professional training on hazardous waste management and disposal.To comply with legal requirements we engage qualified third parties to dispose of or reuse solid waste generated during production.This helps to reduce waste pollution in the environment. Key waste discharge units will regularly disclose waste disposal information to

the public.Solid Waste Emission Indicators

Generation in 2023 Processing flow

(tons)

Generation ● Domestic and office solid waste should be collected and handed over

capacity 82.26 to the sanitation department for disposal.General

waste Quantity ● Industrial solid waste should be uniformly stacked in the general solid

disposed 82.26 waste bin and recycled by general waste recycling companies.Generation ● Once a certain amount of hazardous waste has been collected and

capacity 35.56 stored in the designated bin it will be regularly handed over to

Hazardous professional environmental protection recycling and disposal Environmental Equipment Hazardous Waste Management Training Hazardous Waste Standardised Management Training

waste Quantity organisations for treatment.disposed 27.24 ● The waste catalyst is recycled by the manufacturer. Biodiversity Preservation

We strongly advocate for reducing industrial solid waste at the source and promoting the efficient and comprehensive large-scale

utilization. We also prioritize the high-value recycling of renewable resources. Our focus is on replacing outdated equipment through Huate Gas complies with national environmental regulations and considers environmental protection a crucial aspect of our develop-

technological reforms to increase production rates and reduce emissions targets. Additionally we are developing new processes to ment. We are committed to preventing harm to both marine and terrestrial ecosystems and executing our projects in an environmentally

enhance the efficiency of industrial resource utilization and the comprehensive utilization of solid waste. friendly manner.In our investment projects we always prioritize reducing negative environmental impact. We firmly implement the 'three simultaneous'

concept which means that environmental protection facilities are designed constructed and put into operation at the same time as

the main project. We regularly test the ecological and environmental impacts within a 5-kilometre radius of the plant boundaries. This

includes surface water groundwater atmosphere and acoustic environment to ensure compliance with national and local environmen-

tal quality standards.No changes were made to the original text as it already meets the desired characteristics of clarity conciseness precision formality

structure professional vocabulary grammatical correctness and preservation of original meaning and quotes. The text is free from

errors and effectively conveys the intended message without the need for further modifications.

45 46Shanghai Aerospace Automobile Electromechanical Co. Ltd.

ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT (2023)

03 InnovationInnovation ManagementWe place significant emphasis on research and development (R&D) and innovation. To standardise the process of designing and developing new products we have implemented the New Product Development System and the Project R&D Management System. To standardise the process of designing and developing new products we have implemented the 'New Product Development System' and the 'Project R&D Management System'. To standardise the process of designing and developing new products we have implemented the 'New Product Development System' and the 'Project R&D

Management System'. These systems aim to strengthen the management and supervision of the R&D process ensuring

Product that it is carried out in an orderly manner.Once the development of new products is complete a third party will test them to ensure that the indicators meet

customer needs. Qualified products will then be sent to customers for trial and user reports will be issued.During the reporting period all of our research and development processes complied with the requirements and we

conducted phased audits in accordance with the progress of the project with a cumulative total of four audits.Project Initiation Project Project ProjectDesign Review Implementation Acceptance

Huate Gas R&D Process

Incentive Scheme

Innovation is crucial for development. To better mobilise the enthusiasm and creativity of technology research and

development personnel we have developed the R&D Personnel Performance Appraisal Methods and Core Technical Personnel Project

Payroll Management System. These measures will effectively improve the efficiency of R&D resource allocation stimulate

innovation and accelerate the promotion of our major scientific and technological research and development results

transformation.To encourage employees to innovate technologically we have established the Provisions on Project (Patent) Declaration Reward

and other innovation reward systems. These systems provide bonus incentives to those who provide clues or suggestions

for research and development projects. Additionally a one-time high bonus will be given to those whose contributions are

particularly significant.During the Reporting Period

CNY 411796 incentive bonus granted to employees in fiscal year 2023.

47 48Product Shanghai Aerospace Automobile Electromechanical Co. Ltd.ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT (2023)

Collaboration with R&D Centers and Universities Our Results

Cooperation with universities is an essential aspect of our R&D platform building initiatives. We have formulated a management system Through continuous innovation and research and development we focus on special gas R&D as our core and strive to perfect our

for industry-university-research cooperation. Currently we have a close R&D partnership with South China University of Technology. electronic special gas product line. We continuously expand our special gas product categories and work towards localising more

Additionally we have established a post-doctoral research mobile station to sustain R&D investment and keep our products advanced. constrained electronic special gas varieties. We are continuing to introduce new technologies and develop products while also

deepening our technical cooperation and exchange. We aim to strengthen the integration of production learning and research.Foshan City Industrial Field Project As of the end of the reporting period we have now cumulatively achieved import substitution of more than 55 products and constantly

strengthen the continuous investment and transformation of independent intellectual property rights in-depth practice of our mission

This project focuses on researching the depth purification of electronic special gases used in advanced semiconductor as a national high-tech enterprises. Through long-term product development and certification we have successfully achieved over 90%

processes of 8 inches and above analyzing and detecting trace impurities treating the inner walls of gas cylinders and customer coverage of domestic IC manufacturers above 8 inches.developing gas storage and transportation technologies. The goal is to achieve breakthroughs in the purification

technology of ultra-high purity nitrogen. The production line will manufacture ultra-high purity argon krypton and xenon Our flagship lithography gases (Ar/Ne/Xe Kr/Ne F2/Kr/Ne F2/Ar/Ne) are certified by ASML and GIGAPHOTON and are the only gas

as well as high purity octafluorocyclobutane. The products will reach a leading level in the country with some indexes companies in the country with two certifications. Our products have been supplied in batches to 14nm 7nm and other production lines

reaching the advanced level internationally. Additionally there have been breakthroughs in the purification technology of and some fluorocarbon products and hydrides have been used in 5nm advanced manufacturing processes and are continuing to expand

ethylene and propylene hydrocarbons. The purification technology for ethylene and propylene hydrocarbons is used to coverage. Our self-developed whole-industry chain product - germanane - passed the certification of the 5nm process production line

create technical reserves and provide strong technical support for large-scale production. Additionally forward-looking of the largest memory company in South Korea and generated orders. During the period under review our excimer laser gas products

technology development and research is carried out to address basic common technical problems in related areas. This also passed the 193nm test of the German laser manufacturer further enhancing the Company's recognition and visibility in the field

helps to solve common weak links such as process equipment testing standards and production quality. Ultimately this of excimer laser gases.leads to the gradual formation of a complete electronic gas industry with independent development capability. Accelerate

the adoption of domestic electronic gases in the production and manufacture of chips in the semiconductor and

integrated circuit industry in Guangdong Province and throughout the country. This will help to substitute imported gases

with locally produced ones and enhance the market application of these gases while promoting the transformation of

scientific and technological achievements.R&D and Engineering Platform for Electronic Gases for

Semiconductors and Integrated Circuits

Through independent science and technology projects and actively undertake all kinds of science and technology plans

and projects in view of the technical needs of the industry and industrial development especially limited imports and

products of strategic significance in the semiconductor field carry out common technology research and solve the

common weak links such as process equipment testing standards and production quality. Build a technology research

and development and engineering verification platform for electronic special gases key materials in the semiconductor

and integrated circuit industry chain including research laboratories and technical service platforms (gas purification gas

mixing gas analysis gas cylinder treatment) and pilot test platforms for achievement transformation and actively promote

the localization process of electronic special gases.Fostering and Supporting Young Scientists

To meet the demands of the market economy and foster innovation we have developed a talent management system that evaluates

individuals based on their academic qualifications professional knowledge and work experience. This helps to improve the talent

structure and allocation of human resources.China National Accreditation Service for Conformity Assessment Laboratory Accreditation Certificate

The recruitment of R&D personnel is primarily accomplished through various channels including talent markets university job fairs and

internal employee referrals. For exceptional candidates we offer a more flexible compensation and benefits package to enhance our

appeal to a diverse range of highly skilled professionals and technical experts.

49 50Product Shanghai Aerospace Automobile Electromechanical Co. Ltd.ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT (2023)

Product Responsibility

Quality Management System

During the Reporting Period

We adhere to the quality policy that states 'quality is the foundation of enterprise survival'. We have established a quality management

system that covers the entire life cycle of our products. Our focus is on applying advanced management tools and concepts to enhance

CNY 50428.8 Thousand i nvestments in R&D in 2023 our quality management practices. The implementation of the SPC 6σ management system ensures product stability and compliance

with semiconductor industry quality control standards for raw materials. Additionally the SQC management method guarantees

quantitative and scientific quality control resulting in efficient and consistent product quality improvement.By the end of the reporting period

● Total of 213 authorised patents; 32 authorised patents for invention; 178 authorised patents for utility

Quality Director

models; 51 trademarks; 64 papers published

● Hosted or participated in the development of a number of electronic industrial gases including 1 international

standard 55 national standards 6 industry standards and 11 group standards. QA Manager QC Manager

We have conducted significant scientific research projects including the R&D and Pilot Project of High Purity Trifluoromethane as part of the

National Major Science and Technology Special Project (02 Special Project) as well as the R&D of 'Specialty Gases for Flat Panel Quality Engineer ISO Specialist/Clerk Deputy Director of

Displays' in the Pilot Project of Regional Concentration and Development of Strategic Emerging Industries in Guangdong Province (New Quality Inspection

Generation of Display Technology). We were selected as the only gas company for three consecutive years as one of the 'Top 10

Electronic Chemical Materials Companies in China' in 2017. Additionally we were selected as one of the 'Top 10 Electronic Chemical

Materials Professionals in China' for three consecutive years in 2017 2019 and 2021. In 2023 we were awarded the sixth 'IC Innovation

Award' by China IC Innovation Alliance for the industrialisation of achievements ('IC Innovation Award'). In 2023 we won the sixth 'IC

Innovation Award' from China IC Innovation Alliance for their research and development and industrialisation of dilute photolithography

gas for integrated circuits. They were also selected as one of the fifth batch of national specialty specialty and new 'small giants' Industrial Gas/ Complaint

enterprises. The text mentions several honourable titles including the Guangdong Provincial Patent Award the Guangdong Provincial Special Gas Medical/Food Nail Crack Electronic Material/ProcessGas Inspector Gas Examiner Gas Inspector Control Inspector

Processing/

Manufacturing Industry Single Champion and the 2023 Foshan City Science and Technology Leading Enterprises (Innovation Inspector File Manager

Effectiveness) award.Intellectual Property Protection Quality Management Structure

We place a high value on safeguarding intellectual property rights. To enhance the management of intellectual property rights and

safeguard the interests of the company and the affiliates we have developed methods for managing intellectual property rights based

on relevant laws and regulations. Additionally we have established an Intellectual Property Office to collaborate with the administrative Our quality management system and food safety management system are certified for compliance with the requirements of ISO9001

and R&D departments in this regard. We regularly provide training on intellectual property protection to raise awareness among all and ISO22000. We advocate for the implementation of total quality management. The general manager should lead the quality control

employees. to create a new quality management model.

51 52Product Shanghai Aerospace Automobile Electromechanical Co. Ltd.ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT (2023)

Quality Assurance

Huate Gas implements full-process management for incoming materials production processes and after-sales quality supervision.Equipment Develop equipment management and control procedures and carry out the management work

management related to production equipment according to the prescribed procedures.Warehouse write the inspection form

and attach the supplier report

Wait for inspection Check report Packaging appearance

Quality inspection

Below

Material standard

management Leak detection pressure weightQualified

ISO9001 Quality Management System Certificate ISO22000 Food Safety Management System Certificate The quality control department will

issue a report within three days

Gas quality detection

Quality Risk Management Warehouse entry

We place significant emphasis on managing product quality risks and have established Control Procedures for Identification and Warehouse keeper classifies and marks them

Response to Risks and Opportunities. These procedures involve regular surveys of stakeholder needs and expectations risk

identification and assessment and updates to responses for risks and opportunities.External factors such as laws and regulations technological innovation market competition and market

Risk factors Production with qualified raw materials

(internal/ external) demand as well as internal factors like company values management documents professional knowledge and production according to order

company performance all play a significant role in shaping a business's success.Each department head identifies risks and opportunities related to their department's operations records the The production department completes

results in the Risks and Opportunities Assessment and Analysis Form and submits it to the Quality Control the finished product

Department.The QC department summarizes the list of risks and opportunities and reports it to the management

Description Packaging appearance

representative.Quality inspection

The management representative will identify the risks and opportunities that require attention at the company BelowProduction

level considering all internal and external factors the requirements of relevant parties and the risks and standardprocess Leak detection pressure weight

opportunities identified by each department. management Qualified

Quality inspection labeling

reporting sealing

Gas quality detection

Risk management Risk Avoidance、 Risk-taking、 Risk reduction、 Changing the likelihood and consequences of risk、 Risk sharing、

/mitigation Deferring risk.Warehouse entry

Timely update of results of When changes occur in the management system or in internal or external factors affecting the management

risk and opportunity

identification and response system the evaluations of risks and opportunities and responses should be updated.Shipment

Product Quality Risk & Opportunity Control Process

5354

Return or concession acceptance (within one week) Production department reworkProduct Shanghai Aerospace Automobile Electromechanical Co. Ltd.ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT (2023)

Non-Conformity Management

To prevent non-conformity and potential issues in our product quality management and social responsibility operations Huate Gas has Huate Gas has established a comprehensive product recall mechanism for unqualified products with potential and significant quality

developed the Corrective and Preventive Measures Control Procedure in compliance with relevant laws and regulations. This will effectively hazards. Upon discovery of any issues production and sales will be halted immediately and a recall will be initiated. The defects will

prevent similar problems from recurring and ensure the continued efficient and effective operation of our management system. be assessed and remedial measures will be taken.Determine the extent and

severity of the impact

Internal

discovery

Found Responsible

YES Preliminary

unqualified Fail to review department to Initiate Quality appraisal hazardanalyze the cause assessment

Customer

complaint NO

NO

YES

Implementation Need for Recall plan

measure Definite measure evaluation News release

Recall

designation

measures confirmationYES

In vain NO

Trace verification Reintroduce measures

Correct or stop

Submit for

Effective Record keeping management Implement Acceptance Record archiving

review a recall and treatment

Nonconforming product

control procedures

Huate Gas correction and prevention process

Huate Gas product recall process

55 56Product Shanghai Aerospace Automobile Electromechanical Co. Ltd.ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT (2023)

Product Quality Training New supplier selection

We are committed to enhancing staff awareness of quality risk responsibility and improving the enterprise's level of quality

management. This will enable us to achieve high-quality development in the competitive market. As per the quality management

system we regularly provide training to our staff on quality management topics including regulations policies quality knowledge and

job skills. This training is designed while considering the annual quality management objectives business development needs and job

competence requirements. Basic survey of suppliers

Sampling

NG Sample confirmation

Distribution group Delivery time

OK

Production class

Small batch use Price

ISO three system internal auditor training

Quality

OK

Qualified supplier entry

The Huate Gas Supply Chain

Evaluation points

Life Cycle Management

Huate Gas adheres strictly to relevant laws and regulations. It has formulated Procurement Control Procedures that take into account our own

Supplier assessment Evaluation procedure

actual situation. We have established a multi-dimensional and multi-departmental participation assessment system that effectively NG

ensures the continuous iterative optimization of suppliers' resources. This guarantees the supply chain's sustainable performance and

establishes a supply chain environment with fair competition integrity transparency and strong traceability.OK Evaluation principle

Who We Chose

Deadline improvement Further purchase

Before commencing the procurement process we will conduct initial audits of suppliers to assess their qualifications legitimacy

performance capability and reputation in accordance with the Procurement Control Procedures. In addition to assessing basic qualifications

we will also evaluate suppliers' performance in areas such as quality management systems EHS management systems social Procurement selection process

responsibility and environmental protection.

57 58Product Shanghai Aerospace Automobile Electromechanical Co. Ltd.ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT (2023)

Holding the Highest Standards

Huate Gas categorises suppliers into four groups based on the materials and services they provide. Different selection criteria are Supplier Annual Performance Appraisal Dimensions

applied to each type of supplier.Group Material Selection Method

● Issue the 'New Supplier Investigation and Evaluation Form' and 'Supplier

Environmental Status Questionnaire' to new suppliers. Require suppliers to strictly

adhere to the form's requirements and provide the necessary qualification

documents. Quality Delivery date Price Service HSE

● Purchasing staff should verify the information provided on the 'New Supplier Survey

Production of raw materials and Evaluation Form' and complete the 'New Supplier Initial Evaluation and

A packaging valves distribution Assessment Form'. Submit the form to the relevant departments for approval.of products ● After approval the QC department will organise a written or on-site audit for the

supplier.● The Purchasing Department obtains samples from the suppliers and sends them to

the relevant departments for testing and trial production. The results are then fed Procurement Ethics

back to the Quality Control Department Quality Control Office Purchasing

Department and R&D Centre. In order to promote the construction of integrity in the supply chain we have signed the Letter of Agreement on Integrity with our suppliers

requiring them to strictly comply with relevant national laws and regulations on integrity as well as the relevant rules on integrity

● The purchasing clerk assesses suppliers' business qualifications; management formulated by Huate Gas.B Equipment accessories reagents

● The using department verifies that the required materials meet their needs. During the reporting period the signing rate of the Letter of Agreement on Integrity by all our suppliers reached 100%.● Selection of logistics providers: review their business qualifications including their

Logistics outsourcing testing business licence and road transport permit for hazardous chemicals.C cer t i f i ca t ion metro logy ● Selection of measurement and testing service providers: review their business

calibration and other services qualifications including their business licence measurement and testing capacity

recognition and system certification. Caring for Customers

Auxiliary materials office labour

D insurance products hardware ● Buyers do not need to qualify suppliers and can purchase directly from online shops. Service System

accessories

Huate Gas attaches importance to the construction of customer service management system continue to implement the

"customer-centric" service concept the "customer-oriented" core values into practice for which we have formulated the Customer Service

Control Procedures the establishment of a smooth customer communication channels to ensure a clear understanding of customer

Supplier Engagement and Accountability requirements to do a good job in the pre-sale sales after-sales service improve customer satisfaction.Huate Gas conducts annual performance evaluation of existing qualified suppliers at the beginning of each year and adopts the form

of Annual Supplier Evaluation Form for suppliers in category A and with more than 3 batches of supply volume in the previous year and

conducts comprehensive evaluation of their one-year supply performance together with relevant departments. Customer Complaint Handling

We comprehensively consider the annual performance evaluation and the annual system audit to assess the grades and dynamically Huate Gas adheres to the service concept of customer first set up a special rights and interests of the service hotline to ensure that

adjust the List of Qualified Suppliers. During the reporting period we evaluated a total of 86 suppliers in category A with an evaluation customer feedback on product quality and applications for return of products will be promptly responded to and dealt with after the

completion rate of 100 per cent. implementation of processing procedures 100% of customer complaints should be responded to and the results of processing the

archives and gradually to achieve customer complaints to zero.At the end of each month all quality feedback is categorised and summarised according to production plants product categories and

causes of defects and summary information is produced which is passed on to the production plants as a data reference for continuous

improvement of quality work.

59 60Product Shanghai Aerospace Automobile Electromechanical Co. Ltd.ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT (2023)

Customer complaint

Customer complaint record

(completed by service assistant)

In accordance with complaint

handling principles

Reasonable complaint Unreasonable complaint

Maintain process

control procedures Explain to the user

Complaint processing closed YES Customer acceptance Digital Customer Complaint Handling Platform

NO

Report to service manager Customer Satisfaction Monitoring

(give advice)

YES In order to fully understand the needs of customers we regularly conduct customer satisfaction surveys every year to understand the

product through multiple dimensions and improve the quality management system based on the results of the survey. For customer

dissatisfaction or survey form scored less than 80 points of the project or the overall assessment of dissatisfaction in accordance with

the relevant procedures to issue a report and instruct the relevant departments to respond and improve.After-sales manager

records and records Consult according to opinion

During the Reporting Period

NO Service manager reports

Customer acceptance to chief engineer

97.12% Customer satisfaction index 10 Customer complaints 100% Response rate

Complaint Handling Report

Finish (prepared by QOQ) Chief engineer's final proposal Privacy Protection

Huate Gas is committed to complying with relevant laws and regulations and to strictly protecting customer privacy. All customer

Customer Complaint Handling Procedures information is treated confidentially and we guarantee that all channels of information collection are legal and appropriate.During the year there were no incidents of breaches of customer privacy or disclosure of customer information by Huate Gas.To improve the efficiency of handling customer complaints Huate Gas has implemented a digital complaint handling system and

formulated customer service control procedures to monitor and handle product quality complaints.

61 62Shanghai Aerospace Automobile Electromechanical Co. Ltd.

ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT (2023)

04 Rights and BenefitsCompliance EmploymentEmployees are the most invaluable assets of us. We consistently adhere to a people-centered management philosophy and strictly comply with pertinent laws and regulations. We have formulated a comprehensive Employee Manual that covers areas such as recruitment and employment as well as wages and benefits to ensure that every applicant receives equal employment opportunities throughout the recruitment process. Additionally we are committed to safeguarding the legitimate and reasonable rights and interests of our employees.

In the Employee Handbook we define a diversified recruitment channel to ensure the wide dissemination of recruitment

Our People information. Recruitment channels are divided into online recruitment on-site recruitment and our official website etc. providing employees with a variety of choices to facilitate understanding and applying for positions.During the reporting period we offered employment to 153 job seekers.Campus job fair A pro bono job fair

Key performance

1186 Headcount as of December 312023 35.08% of employees are women;

97.39% Labour contract coverage 95.62% Coverage of five insurance policies.

63 64Our People Shanghai Aerospace Automobile Electromechanical Co. Ltd.ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT (2023)

Inclusion and Diversity

Overall 1186

male 770 Harassment and Discrimination

Gender Huate Gas has established the Anti-Discrimination Control Procedure to ensure a positive and welcoming working environment for all

female 416 employees. We encourage employees to show mutual respect provide support to one another and grow and progress together. All

employees have the right to work in an atmosphere free from harassment and Huate Gas strictly prohibits any conduct that creates a

up to 30 y.o. 253 coercive hostile or uncomfortable work environment. This includes but is not limited to disparaging or inappropriate remarks actions

gestures jokes or epithets as well as the public display of slanderous obscene derogatory or offensive signs posters cartoons

Age 30 to 50 y.o 777 photographs or images. We also condemn any form of unlawful sexual harassment.over 50 y.o. 156 Women's Empowerment

production 336 We place utmost priority on safeguarding the rights and interests of women and are deeply committed to enhancing the welfare of

female employees in the workplace. Female employees are entitled to paid maternity leave breastfeeding leave and various other

sales 119 benefits as stipulated by national regulations. Furthermore in accordance with relevant national laws we provide appropriate "four

stages" protection to female employees ensuring that pregnant and breastfeeding women are not assigned to perform tasks that may

finance 45 harm their health or the fetus.Position administrative 78 The trade union of us has established a dedicated committee for female workers aimed at guiding them in actively participating in

enterprise construction. This committee carries out education on "self-esteem self-confidence self-reliance and self-improvement" to

Technology 166 enhance the overall quality of female workers. It also demonstrates care for the daily lives of female employees and ensures the

protection of their unique rights and interests.Transport 319

Others 123

Ethnic Minority 29

Disabled 8

Headcount as of the end of the reporting period people

To safeguard the physical and mental well-being of minors uphold the compulsory education system and protect their legitimate rights

and interests we have established rigorous Prohibition of Child Labor and Control Procedures for Underage Workers. We strictly scrutinize the

identity information of candidates during the recruitment process to eliminate any instances of child labor. If a minor is discovered 38 Women's Day Activities

working their employment will be promptly terminated and a comprehensive health assessment will be conducted by a professional

medical institution to ensure that no harm to their health has occurred. Additionally we will ensure that the minor is safely escorted

back to their guardian. During the reporting period

The number of employees currently benefiting from maternity leave stands at 6 with a maternity leave

return rate of 83.33%;

The number of employees enjoying paternity leave is 2 and the return rate of paternity leave is 100%;

65 66Our People Shanghai Aerospace Automobile Electromechanical Co. Ltd.ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT (2023)

Compensation Huate Gas Welfare System

Structure Statutory welfare National statutory holidays five insurance and one fund.In order to standardize salary management ensure effective salary incentives and fairness and foster a positive team atmosphere we Weekends and weekends sick leave work injury leave marriage leave funeral leave maternity leave paternity Leave benefits

have crafted the Salary Management Regulations tailored to our unique circumstances. These regulations provide clear direction for our leave personal leave etc.salary administration fully leveraging the incentive power of salary distribution and ultimately enhancing our core competitiveness.Apartment-type dormitory high-quality meals shuttle bus annual travel and physical examination holiday

Adhering strictly to the principles of fairness competitiveness incentive and legitimacy we establish and adjusts salaries for each Other benefits benefits housing provident fund student fund telephone subsidy private car allowance cultural activities help

position. It ensures a scientific and rational compensation system by reasonably setting salary levels for diverse roles taking into account to solve staff difficulties staff self-improvement rewards.factors such as job responsibilities skill requirements and the complexity of work.Salary Structure

Education/

Basic pay Merit pay Seniority wage title subsidy other

Huate employees parent-child fun games Staff canteen

Financial Incentives for Employees

To enhance our appeal to exceptional talents and spark their endogenous motivation and potential we have crafted and implemented

an equity incentive plan. During the reporting period we thoroughly reviewed and approved two crucial proposals: the Proposal on the First

Grant of Restricted Stock to the Target of the 2023 Restricted Stock Incentive Plan and the 2023 Restricted Stock Incentive Plan of Guangdong Huate Gas Co. LTD.(Revised Draft). It has been decided that March 20 2023 will mark the initial grant date for our 2023 restricted stock incentive plan. A

total of 329200 restricted shares will be awarded to 25 eligible incentive subjects at a grant price of 41.36 yuan per share.Time Away

To standardize attendance management enforce strict work discipline and effectively promote employee professionalism the Working

Time Management Procedure has been established. This procedure stipulates that all employees are entitled to at least one day of rest every Staff rest area

seven days and the overall weekly working time shall not exceed 60 hours. We adopt a combination of mobile phone attendance and

manual attendance to ensure accurate tracking. In cases where overtime work is necessary employees will be compensated in

accordance with the overtime management regulations subject to the approval of the leadership.During the reporting period

Life and Family

Total CNY 27.676 MILLION employee welfare investment:

To ensure the provision of fundamental employee benefits and foster a stronger sense of belonging to the enterprise we adhere strictly

to national laws and regulations. The Employee Manual comprehensively details the various benefits offered and we are committed to CNY 15.389 MILLION statutory welfare expenses CNY 12.3674 MILLION non-statutory welfare allocations.delivering diverse welfare security measures that enhance the quality of life for our employees.

67 68Our People Shanghai Aerospace Automobile Electromechanical Co. Ltd.ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT (2023)

Human Rights

Labor Union Employee Respect Degree

To better safeguard the legitimate rights and interests of employees stimulate their enthusiasm for work and foster the growth of the Huate Gas carries out an annual employee respect survey encompassing all personnel with the goal of attentively listening to the voices of

enterprise we have established a trade union organization in accordance with the Trade Union Law and the Constitution of the Chinese Trade Union. our employees addressing their demands and expectations through tangible actions enhancing the overall employee experience and

Regularly convening the workers' congress we uphold employees' rights to information and participation and actively listen to their opinions ultimately fostering positive business outcomes.and suggestions.During the reporting period the employee satisfaction score was 3.3 out of 5.Four functions of Huate Gas union

Maintenance Represent and safeguard the legitimate rights and interests of employees

Construct Participate in the democratic management of enterprises and exercise democratic supervision Working Communication Departmental Corporate

environment mechanism cooperation culture

Participation Guide employees to participate in enterprise construction and complete production and operation tasks

Education Strengthen staff education and improve staff quality

During the Reporting Period Employee respect degree survey dimension

30.02% union members are active employees.

Staff Safety Compensation

training management Performance and welfare

Diversified Communication Channels

To foster active communication and interaction with employees we have implemented various initiatives including the establishment of

suggestion boxes and feedback forms conducting employee respect surveys organizing tea parties theme salon activities and employee

symposium procedures. We encourage employees to voice their suggestions and opinions regarding our operations and business aiming to Personnel Training

continually enhance performance and improve work efficiency.If employees believe they have been discriminated against they have the option to report through our Prevention of Disciplinary Control Procedures Training Platform

and Employee Advice and Complaint Management Procedures. Once the Human Resources Department verifies the claim the reporting employee will

be rewarded and their information will be kept confidential whenever necessary. Recognising that employees are the driving force behind the sustainable development of our enterprise we actively create a clear

and flexible growth path for our personnel. We strive to unlock their potential and provide ample development opportunities. We are

committed to their career planning and personal development encouraging continuous learning and improvement.To support the personal development of our employees we have established the Human Resource Control Procedures and implemented

the Huate Training System Plan. These initiatives are designed to ensure that employees receive the required training and support

to achieve their career goals.During the Reporting Period

Total CNY 530000 in training investment 8322 employees of Huate Gas participated in the

training in calendar year 2023;

Staff seminar 127923 training hours in Huate Gas in FY2023 538 hours of training per person.

69 70Our People Shanghai Aerospace Automobile Electromechanical Co. Ltd.ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT (2023)

Induction Training Talent InventoryProject Blue Project Result Output To guarantee the professionalism and efficiency of the trainer team we have meticulously crafted the Trainer Management System and Training

Talent Assessment Instructor Evaluation Management System. These systems outline the selection training utilization performance and evaluation processes for trainers Coach Training

(Internal + External) Training -TTT ensuring they possess the necessary skills and awareness to fulfill their roles effectively. During the reporting period we successfully certified

a total of 16 internal instructors.Human Resources Third Party Agency Leadership Group Human Resources Human Resources

Newcomer Entry Core Backbone

Hierarchical Training

Corporate Culture

Middle Management Develop Professional To enhance the professional capabilities of our employees we conduct comprehensive and systematic professional training tailored to the

Courses at All Levels

specific characteristics and job responsibilities of each business department. We carefully design professional knowledge training plans and

Safety Training skills training programs aimed at fostering the holistic development of our workforce.Whampoa Troupe

System Training

Platform-solidified Course Training Training

Program Object Training Content

New employee Provide employees with safety knowledge company regulations and business skills required

New employee

training for the position. The training time is two days after the entry.Talent Inventory Talent Replication Curriculum Consolidation

Senior executives

Youth and Blue Project Old Bring New Training Courses at All Levels Executive and general

Provide training on strategic planning and implementation for senior management.strategy training managers of

each subsidiary

New We offer training for management trainees encompassing a diverse range of topics including

Management

management R&D skills production processes product information and knowledge packaging expertise

trainee

trainee training sales know-how fundamental financial understanding and career planning.To enhance the proficiency of workshop personnel in utilizing safety facilities strengthen

Workshop safety Workshop staff

emergency management and improve their capacity in safety production management the

skills training on duty

R&D center conducted a workshop safety skills training session.Huate training system planning

7172

Upload and Record Tape-broadcast

Course

Record

Completion Export Core Curriculum

Training Middle and Senior

Implementation Talents

Talents at All Levels

Warehousing

Incentive Grassroots Talent

Courses at All Levels

Feedback Check

Project

Implementation

Competency Model

Warehouse B Warehouse A

Mentor Training

Talent Pool

Closed Beta Test External Survey

Storage Condition

Key Behavior Instruction Chart

Curriculum System

Evaluation System Competency Model

Planning Item Carry Out Fulfiiment Exportation Planning Item Carry Out Result OutputOur People Shanghai Aerospace Automobile Electromechanical Co. Ltd.ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT (2023)

Internal Post Transfer Mechanism

We utilize internal transfers as a means for horizontal talent transmission promptly filling vacant positions within the organization thereby

enriching the talent pool and maintaining a healthy flow of talent. Furthermore we encourage employees to pursue horizontal development

across various positions based on their individual aspirations fostering internal talent mobility and enabling employees to achieve autonomous

growth and progress.Health and Safety at Huate Gas

Protecting Our People

Huate Gas upholds the occupational health and safety policy of being

"people-oriented prioritizing employee well-being; committed to safe

Executive strategy training 21 new management trainee training

production and environmental protection through systematic and scientific

management; adhering to legal compliance and continuous improvement

striving for industry-leading standards." We consistently prioritize the health

and safety of our employees continuously enhancing our occupational

health and safety systems identifying and mitigating workplace hazards

and making every effort to fortify a robust defense line for employee health

and safety.To ensure the effective implementation of safety measures we have

established internal rules and regulations including the Compilation of

Occupational Health Management Systems and strictly adheres to these systems

in the operations and management. Furthermore we have established an

HSE organizational structure to effectively prevent control and eliminate

occupational hazards thereby further preventing the occurrence of

occupational diseases and safeguarding the health rights and interests of

Workshop safety skills training The first employee Skills competition of Huate Gas our employees. During the reporting period we successfully obtained

ISO45001 Occupational Health and Safety Management System

certification actively fostering a safe and harmonious working GB/T 45001-2020/IS0 45001:2018Occupational health and safety management system certification

environment and demonstrating a commitment to employee well-being.Education Promotion Training

With the aim of fulfilling our corporate mission of "providing the best platform for employee development" and upholding a people-oriented

approach we establish long-term and stable partnerships with reputable educational institutions. This collaboration serves as a reliable avenue Main person in charge

for employees to enhance their academic qualifications constantly motivating them to maintain a positive mindset pursue continuous

learning and elevate their professional standards. Additionally we encourage employees to participate in professional title assessments and

offer commensurate rewards to recognize their achievements.In charge of safety

Career Development

HSE department

Promotion Management

Huate Gas places significant emphasis on employee self-development and currently intends to introduce classified management tailored to

the nature of work across various positions. This approach aims to empower employees to select their own career development paths both

Quality

horizontally and vertically while assisting them in enhancing their professional capabilities and competitiveness. Audit Securities Control Financial Sales

International Investment

Dept. Dept. Dept. Dept. Business

Production Procurement HR Dept. R&D Logistics Planning IT Dept. Technical

Dept. Dept. Dept. Dept. Center Dept. Dept. Dept.HSE Management Organizational Structure Diagram

73 74Our People Shanghai Aerospace Automobile Electromechanical Co. Ltd.ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT (2023)

2023 Occupational Health and Safety goals Achievements in 2023

Hidden Danger Investigation

● No food poisoning incidents;

We have established and continuously refined a comprehensive safety production responsibility system for all employees explicitly outlining

● No occupational diseases among employees; the responsibilities and requirements of personnel at every level in safety production. This system serves to enhance the safety awareness

● No major driving accident; All achieved and accountability of employees thereby ensuring the effective implementation of safety measures.● No significant death rate due to work-related injury; To further safeguard our production safety the organization has developed a comprehensive Hidden Hazard Investigation and Management System.● Minor injuries of employees (within 3000 yuan/piece) control ≤ This system mandates regular inspections of potential hazards within the plant premises ensuring prompt rectification and notification. It also

5 pieces/year. entails documenting evaluating classifying grading and analyzing the causes of these hidden hazards followed by the implementation of

countermeasures and treatment plans to guarantee their timely elimination. Additionally to standardize employee behavior we have

Occupational Health and Safety Goals for 2024 established a set of regulations governing employee rewards and punishments aimed at actively mobilizing the enthusiasm of employees

eradicating safety hazards preventing major safety accidents and ultimately enhancing work efficiency and business performance.● No general accidents and above security incidents; ● Major industrial accidents ≤3 cases/year;

● No workplace accidents with serious injuries or more occurred; ● There were zero major security risks in the on-site review of

government departments;

● No fire accidents;

● Safety education and training pass rate 100%;

● No food poisoning incidents;

● Safety hazard rectification rate is 100%;

● Zero incidence of occupational diseases;

● Special operations and special equipment operators have a

● Safety equipment and facilities integrity rate of 100% certified work rate of 100%.Security Risk Management

To standardize the processes of hazard identification risk assessment and risk control we have developed a comprehensive Security Risk

Classification Management and Control System. This system ensures that all types of risks are effectively contained thereby enhancing our safety

management standards and safeguarding the personal and property safety of our employees. Additionally we have established a dedicated

security risk management and control group to facilitate the seamless implementation of "full staff whole process all-round all-weather" risk

management and control practices.Hidden danger investigation and management on-site inspection photos

75 76Our People Shanghai Aerospace Automobile Electromechanical Co. Ltd.ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT (2023)

Emergency Preparedness and Response Safety Management Measure

We firmly adhere to the principles of safety and prevention being paramount prioritizing special investigations and comprehensive treatment. Contractor Safety Management

Guided by our century-old plan and quality-centered safety policy we have formulated a comprehensive Emergency Plan for Production Safety

Accidents. This plan includes contingency measures for accident rescue the establishment of an accident emergency management system In order to strengthen the safety management of contractors and prevent the occurrence of production safety accidents and environmental

and the definition of handling procedures for various accidents based on the identification of accident factors and risk levels both within and damage incidents we have formulated the Contractor Safety Management System in accordance with the Production Safety Law of the People's Republic of

outside the plant. Additionally we have established a dedicated Safety Management Office which is responsible for overseeing production China the Environmental Protection Law of the People's Republic of China the Occupational Disease Prevention and Control Law of the People's Republic of China etc.safety and emergency management matters. The head of this office serves as our directly responsible person for safety management and in combination with the actual situation. Among them it clearly stipulates the contractor's safety management responsibilities HSE

emergency management and safety production. Our approach to safety management aims to achieve "five simultaneities": planning layout access HSE protocol management HSE education during construction etc. so as to ensure the contractor's operation safety.inspection summary and evaluation must all occur concurrently.The emergency rescue team has organized and conducted numerous practical drills of emergency plans ensuring that employees have a Smarter Chemistry

profound and comprehensive understanding of the measures to be taken in the event of production safety accidents. During the reporting

period we successfully conducted 40 emergency drills further enhancing the team's readiness and response capabilities. In order to enhance the safety management of our hazardous chemicals and prevent potential safety accidents we have developed a

comprehensive hazardous chemicals safety management system including chemical leakage emergency disposal cards and other pertinent

documents tailored to our specific operational context. Additionally we have clearly defined the responsibilities and authorities of each

department to guarantee the secure storage usage and handling of hazardous chemicals ultimately safeguarding the safety of our

employees and the enterprise.Prevention and Control of Hazardous Chemicals

Undertake a thorough review of our suppliers ensuring that they furnish safety technical

Purchasepurchase

management instructions and chemical safety labels. Concurrently exercise rigorous control over the purchase

and storage quantities to ensure compliance and safety.Warehouse

Vehicle injury accident emergency drill Food poisoning emergency drill program training management Before storage check and register according to the purchase order.When handling dangerous chemicals it is imperative to wear protective equipment to ensure

Unload safe and light loading and unloading. During the unloading process designated personnel should

be assigned to oversee and monitor the operation ensuring the smooth and safe execution.Based on the type and characteristics of the chemical substances appropriate ventilation fire

Storage prevention explosion-proof and gas-resistant isolation safety facilities are established to

ensure safety.Our process operation rules and safety operation regulations must be strictly adhered to when

Use using and it is mandatory to wear labor protection equipment and appliances for operation.Hydrogen tube bundle filling leakage fire emergency drill Equipment line overload fire emergency response drill

77 78Our People Shanghai Aerospace Automobile Electromechanical Co. Ltd.ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT (2023)

Training Occupational Health Security

We place significant emphasis on safety awareness training for our employees in their daily work. We firmly believe that the safety and stability We will conduct physical examinations before during and after work for employees in hazardous occupations to identify any risks of

of the entire production process can only be guaranteed when every employee possesses a profound understanding of and adherence to the occupational diseases. It is also important to standardise the creation of individual occupational health monitoring files for each worker. In

safety production system and operational procedures. addition we have established occupational health protection facilities in relevant workplaces and regularly perform on-site occupational health

monitoring. Risk assessments are conducted and control measures are developed based on monitoring and assessment outcomes to ensure

employee safety and well-being.Monthly Security Meeting in November

During the reporting period all employees underwent medical examinations.On November 9th our Safety and Environment Department

of convened a monthly safety meeting in the 403 training Occupational Health Protection Measures

room. The primary focus of this meeting was safety training

● By rationalizing the design process engineering and enhancing production equipment along with operational methods we can

encompassing fundamental knowledge of occupational effectively mitigate issues such as leakage. For instance the employment of film presses with excellent sealing capabilities is a key

health workplace hazard management occupational health measure to prevent leakage.examination procedures and the use of labor protection ● Cryogenic pipelines such as liquid nitrogen liquid argon and liquid oxygen adopt cold protection measures to prevent personnel

equipment. This training aimed to enhance employees' from touching frostbite.comprehension of occupational health and safety measures

● The production and filling areas utilize various ventilation and cooling measures including natural ventilation mechanical ventilation

thereby strengthening safety management within the and the installation of air conditioning systems to ensure optimal environmental conditions.workplace. Additionally it holds immense significance in

elevating the overall safety management standards of the ● Strengthen personal protection. Employees shall be equipped with safety helmets labor protection shoes overalls protective glasses protective masks positive pressure breathing apparatus and other labor protection supplies and wear them correctly

company mitigating the risk of occupational diseases and according to requirements.safeguarding the lives and health of our esteemed employees.● Good staff health monitoring. Every year the occupational-disease-inductive post shall have an occupational health inspection and

other posts shall have a health inspection.● Make reasonable work rest time to ensure the combination of work and rest.Digital Management Platform ● Strengthen the training of employees' occupational health knowledge and enhance their awareness of occupational health protection

and safety.Utilizing the intelligent safety management platform we have implemented comprehensive real-time monitoring and multi-tiered warnings

across the 376 combustible toxic monitoring points 2 major hazard sources and 376 real-time data monitoring interfaces. This not only

enables synchronized large-screen functionality on the computer end but also thoughtfully incorporates mobile-side functionality. This

approach offers us a comprehensive suite of intelligent data management and control capabilities encompassing rapid perception real-time

monitoring early warning emergency response and system evaluation. Additionally it significantly reduces the risk of security accidents

safeguarding our intelligent operational safety.Entry safety instructions Wear a helmet

During the reporting period

CNY 1061.24 Thousand t otal security investment.

79 80Shanghai Aerospace Automobile Electromechanical Co. Ltd.

ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT (2023)

05 Green Public Welfare

Communities Huate Gas remains steadfast in the commitment to embodying the "Lei Feng Spirit" and elevating the image of a civilized city. During the reporting period we successfully hosted the "Low-Carbon Environmental Protection - I Can Do It"

initiative encouraging our employees to actively participate in picking up pavement waste and properly classifying it.This endeavor not only fostered a sense of community responsibility among employees but also contributed significantly

to the local green development efforts."Low-carbon Environmental Protection I can do" Activity

Concurrently Huate Gas embodies the low-carbon philosophy through practical actions steadfastly fulfilling the Green

Mission. In March 2023 we organized a meaningful "March 12 Tree Planting Activity" for our employees and their families

thereby deeply ingraining the principles of green and low-carbon living into the hearts of our workforce.

3. 12 Tree Planting Activities

81 82Communities Shanghai Aerospace Automobile Electromechanical Co. Ltd.ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT (2023)

Donation Strategic Cooperation

Common prosperity has been the dream and pursuit of the Chinese nation for thousands of years. Huate Gas actively participates in On June 6 2023 the first tank of liquid helium land transportation project of Huate Gas and the Russian Federation successfully ushered

social welfare undertakings enthusiastically engages in social welfare activities and actively contributes to the society in areas such as in the first tank of liquid helium marking an important step in the development of Huate Gas in the helium business. The success of

charitable donations environmental protection and care for students. this land transportation project is not only a supplement to the strategic resources for the development of Huate Gas but also an

affirmation of our long-term commitment to high-quality gas products and services.Natural disasters are indeed merciless but humanity remains compassionate. In response to the devastating 6.2-magnitude earthquake

that struck Jishishan County Linxia Gansu Province Huate Gas promptly took action. Through the Red Cross Society of Foshan City

we actively donated funds to support relief efforts and post-disaster reconstruction in the affected areas. We understand that in times

of crisis every small act of kindness can amass into a powerful force that brings hope and warmth to those in need. Huate Gas stands

ready to stand shoulder to shoulder with the people of the disaster-stricken regions joining forces to embrace a brighter future in the

aftermath of this tragedy.Education is instrumental in nurturing talent and driving social progress. In October 2023 Huate Gas demonstrated the commitment to

this noble cause by donating scholarships to Chongwen School in Huangpi Town Xingning City through the Xingning Charity

Association. This donation aims to further inspire the enthusiasm and positivity of teachers and students injecting fresh momentum into

the pursuit of high-quality education. Huate Gas has long been a staunch supporter of educational endeavors dedicated to providing

tangible support to teachers and students. By doing so we jointly contribute to the flourishing and advancement of education.Furthermore Huate Gas remains actively engaged in numerous charitable endeavors. We have made generous donations to various

organizations including the Lecong Charity Association of Shunde District in Foshan City the Nanhai Charity Association and the China

Soong Ching Ling Foundation. These donations reflect our profound concern and commitment to fulfilling our societal responsibilities.Huate Gas firmly believes that the success is not only measured by the economic performance but also by our ability to make

meaningful contributions to society and improve the well-being of the people. We are committed to actively fulfilling our social

responsibilities and will continue to make significant contributions to the development and promotion of charitable enterprises.The first tank of liquid helium was successfully transported by land between Huate Gas and Russian Federation

Liquid helium a rare and crucial industrial gas finds extensive application in various high-tech sectors encompassing semiconductor

production medical diagnosis and scientific research. The successful execution of the liquid helium land transportation project between

us and the Russian Federation has not only fostered enhanced cooperation and communication between China and Russia in the gas

industry but also spurred the flourishing development of the global gas market. Furthermore it has facilitated optimal resource

allocation fostering a mutually beneficial and win-win scenario.

83 84Communities Shanghai Aerospace Automobile Electromechanical Co. Ltd.ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT (2023)

In response to the special action initiative aimed at "Enhancing Quality Boosting "Improve quality

and Generating Returns" increase efficiency Operation Huate and return"

Action Goal"

Huate Gas is committed to promoting listed companies to continuously improve their management and standardise their governance Investor Returns

system. In order to deeply practice the special action initiative of "Improving Quality Increasing Efficiency and Focusing on Returns" for Focus on ● Developed the Guangdong Huate Gas Co. Ltd Dividend Return Plan for Shareholders for the Next Three Years (2022-2024).companies listed on the Science and Technology Innovation Board to actively give back to investors to help restore market confidence shareholder ● Implemented dividends every year since listing on 26 December 2019 to date with cumulative cash dividends of

approximately CNY 156 million.to maintain the stability of the capital market and to promote the high-quality development of the economy we have specially returns and share

formulated the "Improvement of Quality Increasing Efficiency and Strong Returns" special action programme of Huate Gas for the year the fruits of Share buyback

of 2024."Special Action Programme. development ● Issued a share buyback plan in May 2022 and October 2023 respectively and the repurchased shares will all be used for

employee share ownership plan or share incentives."Improve quality

increase efficiency Governance StructureOperation Huate

and return" ● Established a three-chamber governance structure comprising the general meeting of shareholders the board of directors

Action Goal" and the supervisory board with clear responsibilities mutual coordination and checks and balances.Focus on market demand and our own technical advantages to formulate development objectives Risk Control

● Focusing on product development of electronic special gases with R&D of special gases as the core and continuously ● The Audit Committee is the highest responsible department for the Company's internal control and the Audit Department

Focus on the realising the localisation of more restricted varieties of electronic special gases.has been established under it to check and supervise the establishment and implementation of the Company's internal

control system.main business ● Practising the product development mode of "one batch for mass production one batch for R&D and one batch for reserve". ● We complete tax declaration and payment in a timely and accurate manner in accordance with tax management regulations

promote Multi-species development strategy for speciality gases to ensure that taxes are paid in full.high-quality ● Enhance product reserves and increase investment in technological transformation and project construction. Share Incentive

development ● Keeping up with the future development trend of the downstream field and customers' needs we conduct R&D on the Strengthen the ● We implemented the Restricted Share Incentive Scheme in June 2021 and March 2023 with the first grant date being 20 application of advanced process technology around our advantageous products. cornerstones of March 2023.● Based on electronic special gas and extended to other pan-semiconductor materials with high-end products as the main

direction of attack. governance and Implementation of "ESG" concepts

enhancing

● We will continue to disclose the Environmental Social and Governance (ESG) Report.Completion of the industry chain operations

Improve the ● We will fully integrate ESG concepts into the strategies and daily operations with the Board of Directors overseeing ESG ● Promote the upstream extension of the industrial chain to gradually realise the autonomy of more types of materials. matters and being responsible for the effectiveness of management.material industry ● Extend large categories from small categories and lay out the whole industry chain of fluorocarbon and silicone-based Enhance communication with directors and supervisors

chain and products.enhance Developing a layout that capitalises on our strengths ● Maintaining close communication with the "key few" such as real controllers controlling shareholders shareholders holding

more than 5% of shares and directors and supervisors.competitiveness ● Launching more applications of advanced process products through the regional advantages of overseas companies and the

key technological advantages "Training for "Key Minorities

Vigorous promotion of investment in science technology and innovation ● Enhance compliance training for directors supervisors and senior management to ensure that directors supervisors and senior management understand the latest laws and regulations.● Launched a number of new products in the fluorocarbon series and achieved certification by well-known semiconductor ● Organising and inviting professionals on a regular or irregular basis to disseminate the latest laws and regulations and

customers. strengthen compliance awareness.● Accumulated more than 55 types of products that have achieved import substitution.R&D Management Information Disclosure

● We formulate New Product Development System and Project R&D Management System to standardise the R&D process. ● Huate Gas standardises the information disclosure process strengthens the quality of information disclosure ensures true Enhanced accurate complete and timely disclosure of information and protects investors' right to know.R&D Incentives investment Investor Communication

● We have formulated the Regulations on Project (Patent) Declaration Rewards to provide bonus incentives to relevant personnel. management

● We have set up a securities department and actively organised performance briefing sessions through various channels

Leverage the Strengthen the continuous investment and transformation of our independent intellectual property rights oriented to platforms and levels.strengths of R&D ● Our self-developed industry chain product germanium has passed the certification of the 5nm process production line of investor needs ● We have set up an "Investor Relations" section on the official website (www.huategas.com) to facilitate investors' access to

to develop new the largest memory company in Korea and generated orders. relevant information.● Our products have been supplied to 28nm 14nm 7nm and 5nm production lines in bulk.quality ● We have actively responded to investors' questions through emails teleconferences on-site surveys and SSE e-interaction.● Continuously expanding the scope of application of advanced process products.productivity

Hosting or participating in the formulation of industry standards Project Construction

● Presided over or participated in the formulation of 55 standards including many national standards for electronic industrial ● Accelerating the construction and transformation of convertible bond investment projects releasing production capacity and

gases 6 industry standards 1 international standard and 11 group standards. Actively promote output value enriching product lines and enhancing the company's competitiveness.fundraising

Introduction of R&D talents Funds Management

● Maintain cooperation with universities and colleges to cultivate talents who are familiar with the core technology of electronic

projects

● Continuously strengthen the management of fund-raising projects prudently use the fund-raising funds and effectively

speciality gases. ensure the fund-raising projects to be smoothly promoted according to the plan.● Attaching importance to the introduction of high-precision technical talents and continuous investment in R&D to maintain

the advanced nature of products.● Attracting talents through multiple channels such as talent market university double-selection meeting internal staff For more information please refer to the Announcement of Guangdong Huate Gas Co. Ltd. on the Action Programme of "Improving Quality Increasing

recommendation etc. and providing more flexible salary system and benefits for outstanding talents to improve the Efficiency and Focusing on Returns".attractiveness.

85 86Shanghai Aerospace Automobile Electromechanical Co. Ltd.

ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT (2023)

06 Amidst the ever-evolving global economy and the relentless advancement of science and technology Huate Gas stands at the cusp of unparalleled opportunities and daunting challenges. In our future development Huate Gas remains steadfast

in the commitment to the innovation-driven quality-focused philosophy. It will actively expand our market presence

Future Expectations bolster competitiveness and strive for sustainable development.In terms of corporate governance Huate Gas remains committed to enhancing internal management and oversight

mechanisms thus ensuring transparency and compliance throughout the operations. Concurrently we are dedicated to

fulfilling the social responsibilities fostering stronger communication and cooperation with regulators investors and the

public and ultimately bolstering our social credibility.Huate Gas is firmly committed to minimizing environmental pollution and resource consumption in the production

processes. Through the optimization of production workflows and the enhancement of energy efficiency we aim to

significantly reduce carbon emissions and waste generation thereby achieving green production. Additionally Huate Gas

actively participates in environmental protection and public welfare activities contributing to the promotion of

environmental awareness within the society.Huate Gas remains steadfast in the commitment to technological innovation. It will continue to invest heavily in research

and development strengthening the capacity for independent innovation. This focus on innovation will lead to further

advancements in our technical systems enhancing the quality and performance of our products and accelerating the

localization process of electronic special gases. Additionally Huate Gas will foster stronger cooperation and exchanges with

leading international enterprises introducing cutting-edge technology and management expertise to bolster the core

competitiveness. Moreover we will enhance the exchanges and collaborations with international counterparts drawing

inspiration from global best practices actively engaging in international market competition and expanding the presence

in overseas markets.With regard to talent acquisition Huate Gas remains committed to broadening the avenues for attracting retaining and

nurturing top talent. We are dedicated to safeguarding the rights and welfare of our employees ensuring a conducive work

environment that fosters growth and development. By doing so Huate Gas aims to build a robust talent pool that will

power our sustainable development and propel it towards future success.Huate Gas is steadfast in the pursuit of achieving more stable and sustainable development through comprehensive

enhancements in environmental social and corporate governance. With a more open and inclusive mindset Huate Gas

remains committed to exploring and implementing innovative practices collaborating closely with all stakeholders to jointly

forge a brighter future.

87 88Appendix & Disclosures Shanghai Aerospace Automobile Electromechanical Co. Ltd.ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT (2023)

ESG Data Summary

Indicators Units 2023 2022 Indicators Units 2023 2022

Total assets CNY Billion 3.162 2.395 Technological Innovation & Intellectual Property Protection

Net assets attributable to shareholders of a listed company CNY Billion 1.825 1.542 Investment in R&D CNY Ten thousand 5042.88 6011.84

Operation Revenue CNY Billion 1.5 1.8 R&d incentive bonus CNY 411796 /

Economic Net profit attributable to shareholders of listed companies CNY Billion 0.171 0.129 Cumulative number of patents granted / 213 172

Performance Operating cash flow CNY Billion 0.17 / Trademark / 51 45

Total Taxes Paid CNY Billion 0.093 0.085 Responsible Supply Chain

Basic earnings per share CNY/share 1.43 / Industrial Evaluate suppliers / 86 /

Weighted average return on equity % 9.77 / Performance Supplier evaluation of completion rate % 100 /

Shareholders' meeting convened Times 4 3 Supplier integrity agreement signing rate % 100 /

Proposal deliberations at shareholders' meetin Items 16 / Customer Service

Board of Directors Persons 7 7 Number of customer complaints Times 10 /

Independent director Persons 3 3 Customer complaint resolution rate % 100 /

Female director Persons 2 2 Customer satisfaction % 97.12 /

Special committee meeting Times 11 7 Violation of customer privacy and disclosure of customer

information Times 0 0Special committees examine bills Items 23 /

Supervisory board meeting Times 14 8 Employee Rights and Benefits

The Board of Supervisors considers the proposal Items 47 / New employee Persons 153 116

Internal control training Times 20 20 Total number of employees Persons 1186 1156

Participate in internal control training Person-time 15 15 Coverage rate of labor contract % 97.39 97.57

Regular report disclosure Pieces 4 / Coverage of five social insurance and one financial fund % 95.62 98.82

Governance Interim announcement disclosure Pieces 153 / Female employees Persons 416 203

Performance Regularly report on performance presentations Times 4 3 Minority employees Persons 29 20

Investor group reception Day Times 1 1 Disabled employee Persons 8 4

e Interactive reply Times 49 28 Number of employees on maternity leave Persons 6 /

Investment question response rate % 100 100 Maternity leave return rate % 83.33 /

Dividend payout per 10 shares (tax included) CNY 5 3.99 Number of employees on paternity leave Persons 2 /

Cash dividend amount (tax included) CNY 59941393.50 47893302.82 Paternity leave return rate % 100 /

The amount of cash dividends as a proportion of the total profit % 46.62 42.62 Compensation and Benefitsdistribution Grants restricted stock to employees Persons 25 /

Anti-corruption training Times 25 2 Granted restricted number of shares Ten thousand shares 32.92 /

Major breach of business integrity Times 0 0 Total welfare expenditure CNY Ten thousand 2767.63 /

Information security training Times 4 / Statutory welfare expenditure CNY Ten thousand 1530.89 /

Information security related incidents Times 0 0 Non-statutory welfare payments CNY Ten thousand 1236.74 /

Environmental Management Democratic Management

Investment in Environmental Protection CNY Ten thousand 94.46 52 Active employees are union members % 30.02 /

Synchronous operation rate of environmental protection facilities % 100 100 Employee Participate in employee respect survey Persons 157 100

Construction project environmental protection "three

simultaneous" implementation rate % 100 100 Performance Employee respect rating - 3.3 1.76

Gas pressure vessel explosions and major leakage incidents Times 0 0 Staff training and Development

Annual fire accident Times 0 0 Investment in Employee Training CNY Ten thousand 53 33.6

Hazardous chemicals/hazardous waste spills Times 0 0 Participate in staff training Person-time 8322 4400

Other major environmental violations Times 0 0 Executive training Person-time 20 /

Environmental risk emergency drill Times 6 7 Total duration of employee training Hour (s) 127923 173394

Environmental training Times 6 / Average length of training for employees Hour (s) 538 24

Resource Management Employee training coverage % 100 100

Diesel consumption Tons 2762.40 747 Certified in-house instructor Persons 16 /

Liquefied petroleum gas consumption Tons 111.58 / Occupational Health and Safety

Outsourced power Kwh 10129154.65 4269144.09 Total safety input CNY Ten thousand 1061.24 574.86

Total water use Tons 118376 66576 Food poisoning incident Times 0 0

Environmental Management of Three Wastes Discharge Occurrence of occupational disease Times 0 0

Performance Discharge of wastewater Tons 46333 / Major traffic accident Times 0 0

Amount of waste water recovery Tons 9159 / Death accident due to work injury liability Times 0 0

Exhaust emission Tons 1702.1 / Work safety inspection Times 41 12

General waste generation Tons 82.26 / Safety hazard Items 172 71

General waste disposal volume Tons 82.26 / Safety hazard rectification completion rate % 100 100

Amount of hazardous waste produced Tons 35.56 / Production safety emergency drill Times 40 /

Quantity of hazardous waste disposal Tons 27.24 / Safety awareness training Times 107 281

Three wastes discharge and disposal training Times 6 / Employee physical examination coverage % 100 100

Greenhouse Gas Emission Management Social Welfare

Total greenhouse gas emissions Tons 14794.35 12668.88 Charitable donation CNY Ten thousand 44.84 66.11

Direct greenhouse gas emissions (Scope 1) tCO2e 9017.69 / Social Number of volunteers Persons 180 /

Direct greenhouse gas emission intensity (Scope 1) tCO2e/million CNY Revenue 6.01 / Performance Number of public welfare project activities Times 4 /

Indirect greenhouse gas emissions (Scope 2) tCO2e 5776.66 / Number of employees participating in public welfare volunteers Person-time 480 /

Indirect greenhouse gas emission intensity (Scope 2) tCO2e/million CNY Revenue 3.85 / Number of public welfare recipients Persons 3000+ /

89 90Appendix & Disclosures Shanghai Aerospace Automobile Electromechanical Co. Ltd.ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT (2023)

Index Table of Indicators Feedback Form

Catalogue CASS-ESG 5.0 （GRI Standards）

Basis of reporting P1.1/P1.2/P1.3/G3.7 2-2/2-3/2-4

Message From Chairman P2.1/P2.2 /

Highlights of Sustainable A2 / Dear reader

Development in 2023

About Huate P4.1/P4.2/P4.3/P4.4 2-1/2-6/2-9 Greetings! Thank you so much for dedicating your precious time to review this report amidst your busy schedule. To ensure

ESG governance that you and other stakeholders receive even more valuable ESG insights we kindly request your assistance in completing

philosophy G3.2 2-9/2-14 the feedback form and providing us with feedback in the areas mentioned below. Your inputs will greatly assist us in further

ESG governance enhancing our ESG management capabilities.Sustainable

development objectives

G3.2 2-22

governance Stakeholder engagement G3.6 2-16/2-29 1. Which category of stakeholder do you belong to

Substantive issue G3.5 3-1/3-2/3-3 □ Shareholders and Investors □Government and regulatory agency □Employeeanalysis

□ Customer and partner □Supplier □Community and public □Other

Corporate governance G1.1/G1.2 2-9/2-10/2-11/2-12/2-27

Law-abiding and

compliant G1.3/G1.4 2-12/207-1/207-2 2.Your overall assessment of this year's ESG report

Orderly governance Investor relation □Excellent □Good □Fair □Poor □Bad

management G1.10 2-16/2-27/2-29stable enterprises

Business Ethics G1.5/G1.7/G1.8 205-1/205-2/205-3/206-1 3. What do you think of this report

Information Security S4.6 418-1 Information disclosure：□Excellent □Good □Fair □Poor □Bad

Party Building / 2-27 Layout：□Excellent □Good □Fair □Poor □Bad

Environmental E1.1/E1.2/E1.3/E1.6 2-12/2-27 Readability：□Excellent □Good □Fair □Poor □Badmanagement

Environmental risk

Green first management E1.4/E1.5/E1.7 201-2 4. Which issues are most concerns to you (You can choose 3 options)

sustainable Resource use E2.1/E2.2/E2.9/E2.10/E2.12/E2.13/E2.14 302-1/302-2/302-3/302-4/302-5/303- Governance Issues:

development /E5.1 1/303-3/303-5

Emission management E3.1/E3.2/E3.3/E3.4/E3.5/E3.6/E3.8 303-2/303-4/306-1/306-2/306-3/306

□ESG governance □Governance structure □Investor relations management

-4/306-5 □Business Ethics □Compliance operation

Ecological environmental

protection E4.1/E4.2 304-1/304-2 Social Issues:

R&d innovation V2.1/V2.2/V2.3/V2.4/V2.5 203-1 □Digital construction □Research and Development Innovation

Innovation-driven Product liability S4.1/S4.4 416-1 □Industry development and win-win □Privacy and data security

industry takes off Responsible supply chain S5.1/S5.2 414-1 □Product and service quality □Customer service □Supply chain management □Diversity and equality

Customer rights S4.5/S4.7/S4.8 416-1 □Talent introduction and retention □Employee rights and benefits □Staff training and development protection

□Occupational health and safety □Intellectual Property Protection □Social Welfare

Employee rights and S1.1/S1.2/S1.3/S1.4/S1.6/S1.7/S1.8/S1.9/ 2-7/2-19/201-3/401-1/401-2/405-1/406

benefits S1.10/S1.11 -1/407-1/408-1/409-1 Environmental Issues:

Protection of rights □Fight climate change □Environmental Management □Energy-saving technology

and interests Staff training and S2.1/S2.2/S2.3/S2.4 404-1/404-2/404-3development

solidarity □Resource utilization □Emission management □Smarter chemistry

Occupational health and S3.1/S3.1/S3.3/S3.4/S3.5/S3.6/S3.7/S3 403-1/403-2/403-3/403-4/403-5/403

safety .8/S3.10/S3.11 -6/403-7/403-8/403-9/403-10

5.Is the information you are concerned about reflected in this year's ESG report

Public welfare is of the Green public welfare V4.4 203-1/413-1

same mind advancing Charitable donation V3.4 □Yes □No （What other information would you like to see_________________________________________）203-1

together in harmony Strategic cooperation V2.8 /

Future Expectations A1 / 6.What other comments or suggestions do you have regarding our ESG reporting or ESG efforts and

Performance table A2 / sustainability management

Appendix & Disclosure Reporting Index A4 / ______________________________________________________________________________________________________________

Feedback Form A5 2-16

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