China Northern Rare Earth (Group) High-Tech Co. Ltd. Stock code﹕600111

Environmental Social and

Governance Report

China Northern Rare Earth (Group) High-Tech Co. Ltd.Address: 83 Huanghe Rd Baotou Rare Earth High-Tech Industrial

Development Zone Baotou Inner Mongolia Autonomous Region 中

Tel: 0086-0472-2207799 国北方稀

土China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

About this Report

Introduction This Report is the third environmental social and governance report (this “Report”) released by China Data All information and data presented in this Report are from publicly available materials provided by

Northern Rare Earth (Group) High-Tech Co. Ltd. to disclose and exhibit Company’s performance in governmental agencies as well as the Company’s formal documents public disclosures and internal

environmental social and governance aspects to the stakeholders. This Report has been reviewed by Source statistics. Financial data referenced herein is sourced from the audited financial statements in the

the Company which will be responsible for the authenticity and validity of the information contained 2024 Annual Report. Unless stated otherwise all monetary amounts are denominated in Chinese

herein. yuan.Reporting The reporting period is from January 1 2024 to December 31 2024 unless stated otherwise. To Basis of Guidelines No.14 of Shanghai Stock Exchange for Self-Regulation of Listed Companies—ensure the Report’s completeness some information extends beyond this specified period.Period Sustainability Report (Trial)Preparation Reference of ESG Indicators System for ESG Reports of Listed Companies Controlled by Central

State-owned Enterprises published by the State-owned Assets Supervision and Administration

Commission of the State Council

Reporting Unless stated otherwise this Report is about the China Northern Rare Earth (Group) High-Tech Co. IFRS Sustainability Disclosure Standards S1 — General Requirements for Disclosure of

Ltd. covering its headquarters branches and subsidiaries with the scope of data disclosure that is Sustainability-related Financial Information and IFRS Sustainability Disclosure Standards S2 —

Scope identical to the scope of the consolidated financial statements. Any deviation from the scope will be Climate-related Disclosures issued by the International Sustainability Standards Board（ISSB）

specified in the Report. Sustainability Reporting Standards published by Global Reporting Initiative (GRI)

01 02China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

Abbreviations and Glossary

Unless otherwise indicated in the context the terms used shall have the following meanings in this report:

Definitions of frequently used terms Definitions of frequently used terms

Northern Rare Earth the Company Ningbo Zhaobao refers to Ningbo Zhaobao Magnet Co. Ltd.refers to China Northern Rare Earth (Group) High-Tech Co. Ltd.We

Suzhou Torin refers to Suzhou Torin Drive Equipment Co. Ltd.Baogang Baogang Group refers to Baotou Iron and Steel (Group) Co. Ltd.Souwest Magnetech refers to Ningbo Souwest Magnetech Development Co. Ltd.Smelting Branch refers to Smelting Branch of Northern Rare Earth

Northern Rare Earth Recycling Resources (Darhan-

Recycling Resources refers to

Huamei refers to Baotou Huamei Rare-Earth High-Tech Co. Ltd. Muminggan Joint Banner) Co. Ltd.Inner Mongolia Northern Rare Earth Magnetic Materials Company Law refers to The Company Law of the People’s Republic of China

Northern Magnetic Materials refers to

Co. Ltd.Securities Law refers to The Securities Law of the People’s Republic of China

Huaxing Rare Earth refers to Baotou Huaxing Rare Earth Technology Co. Ltd.SSE refers to Shanghai Stock Exchange

Hefa refers to Baogang Steel Hefa Rare Earth Co. Ltd.The largest base for rare earth new materials in China

Zibo Lingzhi refers to Zibo Baogang Lingzhi Rare Earth Hi-tech Co. Ltd. Two Rare Earth Bases refers to and a leading base for rare earth applications across the

world

Gansu Rare Earth refers to Gansu Rare Earth New Materials Co. Ltd.RMB 1 yuan RMB 10000 yuan RMB 100 million yuan

Energy Conservation & Environmental Baogang Group Energy Conservation & Environmental Yuan 10000 yuan 100 million yuan refers to

refers to the legal currency of China

Protection Protection Technology Industry Co. Ltd.Reporting Period refers to From January 1 2024 to December 31 2024

BRIRE refers to Baotou Research Institute of Rare Earths

ESG refers to Environmental Social and Governance

Xi'aoke refers to Inner Mongolia Xi’aoke Hydrogen Storage Alloy Co Ltd.Inner Mongolia Baotou Rare Earth International Trading

International Trading refers to

Co. Ltd. Board This report has received thorough review and approval during the second session of the ninth Board

of Directors Northern Rare Earth. The Board and Directors affirm that the information contained

Tianjiao Seimi refers to Baotou Tianjiao Seimi Rare Earth Polishing Powder Co. Ltd. Statement in this report accurately reflects Northern Rare Earth’s status containing no false information

misleading statements or significant omissions and assume legal responsibility for the authenticity

Ruixin refers to Baotou Ruixin Rare Earth Metal Materials Co. Ltd.accuracy and completeness of the information presented herein.Jingrui refers to Baotou Jingrui Advanced Materials Co. Ltd.Report This Report is released in the form of electronic version and can be obtained from the website of the

Xinfeng Xinli refers to Xinfeng County Baogang Xinli Rare Earths Co. Ltd. Release Shanghai Stock Exchange (www.sse.com.cn) and the official website of the Company (www.reht.com).Jinmeng refers to Baotou Jinmeng Rare Earth Co. Ltd.ZXAT refers to ZXAT New Materials (Inner Mongolia) Co. Ltd. Readers To continuously improve the Company's ESG management enhance the quality of ESG information

disclosure and drive the Company to effectively implement the ESG development strategy we wouldNorthern Jiaxuan refers to Inner Mongolia Northern Jiaxuan Technology Co. Ltd. Feedback like to solicit opinions from readers for this Report (as detailed in Appendix II “Reader FeedbackForm”). We welcome your opinions and comments submitted to the following email address:

Northern Zhaobao Magnetic Industry (Inner Mongolia)

Northern Zhaobao refers to cnrezqb@126.com.Co. Ltd.

03 04China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

Message from the Chairman

In 2024 the People’s Republic of China celebrated its 75th anniversary marking a pivotal year for

Northern Rare Earth. During this time we effectively implemented the directives of General Secretary Xi

Jinping during his inspection of Inner Mongolia by assuming primary responsibility for the development

of the Two Rare Earth Bases. This year was also critical for executing our 14th Five-Year Plan.Throughout the past year Northern Rare Earth has steadfastly pursued its founding mission diligently

embracing the new development concept by complete and accurate application. We have accelerated

the establishment of a new development framework prioritizing innovation-led growth while committing

Liu Peixun

to environmentally sustainable practices. Furthermore we have enhanced our corporate governance

and deepened internal reform as a state-owned enterprise ensuring a robust framework for social Secretary of the Party Committee

responsibility. Notably we have achieved further advancements in our ESG management performance and Chairman of the Board

heading steadily high-quality and sustainable development. Our concerted efforts have laid a strong

foundation for future success and resilience in a rapidly evolving economic landscape.Over the past year we have made new achievements in leading the low-carbon and green development. Underpinned by sustainable Over the past year we have made progress in lawful compliant and honest operations. We remained committed to advancing our State-

principles we have completed and operationalized the first phase of our next-generation green mining beneficiation and smelting upgrade project Owned Enterprise (SOE) reform. We have optimized our corporate governance and enhanced standardized practices thereby modernizing our

for rare earths. As a frontrunner in the industry we conducted the first comprehensive self-examination for greenhouse gas emissions of industrial- management efficiency. By prioritizing efficiency profitability and compliance we have successfully implemented institutional reforms through

chain and built the inaugural carbon accounting platform in the rare earth sector. This initiative has enhanced our precise carbon management management innovation lean practices and comprehensive performance evaluations. By means of the refinement of our governance structures

capabilities. Additionally we released four Environmental Product Declaration (EPD) reports for rare earth products. In a further demonstration of and institutional mechanisms we have significantly heightened the effectiveness and performance of all governing entities. In our commitment to

leadership we played a pivotal role in formulating the industry standard titled Green Factory Evaluation Requirements for Rare Earth Polishing compliance management we have proactively aligned with high-standard international frameworks. Notably Northern Rare Earth and its affiliates—

Powder. Advancing our digital-intelligent transformation we have established a high-standard green manufacturing system with subsidiaries such including the Smelting Branch and International Trading—attained dual certifications for ISO 37301:2021 and GB/T 35770-2022 marking it as

as Hefa Huaxing Rare Earth and Xi'aoke receiving Green Factory certification in the Inner Mongolia Autonomous Region. We have strengthened the first SOE in Inner Mongolia with such achievement and underscoring our unwavering dedication to compliance operations. Furthermore we

environmental protection infrastructure development significantly enhancing pollution reduction and treatment capabilities and resource recycling enhanced our environmental social and governance (ESG) practices and market capitalization management by establishing robust ESG frameworks

efficiency. and promoting awareness. More ESG information reporting helped Company’s governance and recognition of improved ratings as well as multiple

accolades in the capital markets. By strategically integrating market capitalization initiatives with long-term planning we executed a series of

Over the past year we have seen new advancements in shared development of a harmonious enterprise. We unequivocally demonstrated mergers and acquisitions strengthened our disclosures and investor relations optimized cash dividends and efficiently managed our capital

our commitment to national priorities while fulfilling our foundational mission. Operating under the guiding principles of innovation-driven growth operations. As a result of these focused efforts we have solidified our standing as the highest-valued listed company in the rare earth permanent

collaborative engagement and people-centered development we have made substantial progress across supply and industrial chains while magnet industry.proactively addressing our social responsibilities. In strict accordance with national rare earth industry strategies we have rigorously implemented

state-mandated production quotas. This approach has ensured a stable supply of high-quality products and services thereby reinforcing market Where the heart desires one can indeed advance. By pursuing our ambitions with unwavering resolve we are poised to transform our aspirations

price stability and operational reliability. Through strategic mergers including the acquisition of ZXAT and the establishment of a joint venture into reality. Looking ahead we will steadfastly adhere to the principles of Xi Jinping Thought on Socialism with Chinese Characteristics for a New

Northern Zhaobao we have significantly enhanced and diversified our industrial frameworks. These initiatives have facilitated upstream and Era. We will ground our initiatives in a comprehensive understanding of the broader socio-economic landscape while systematically planning the

downstream synergies and optimized value creation. As a pivotal national force in rare earth science Northern Rare Earth has undertaken a evolution of our industry. Our strategic focus entails accelerating the development of new quality productive forces while continuously enhancing

multitude of state-level research and development projects achieving significant breakthroughs. We have created China’s inaugural National our performance in ESG management and fulfilment of duties. We shoulder critical responsibility for the establishment of the Two Rare Earth Bases

Technical Standard Innovation Base for rare earth elements. We have also spearheaded the formulation of the first international standard for the and we are committed to expediting our progress toward becoming a world-class leader in the rare earth sector. Collaborating closely with all

global rare earth industry to facilitate technological advancement. In addition to our business endeavors we have taken social welfare initiatives stakeholders we will embody our corporate responsibilities as we embark on this new journey. Together we will contribute to the comprehensive

that promote energy-saving and low-carbon technologies and provided support for rural revitalization. Central to our mission is a steadfast focus advancement of a modern socialist country and co-author a transformative chapter in building the nation with robust rare earth industry.on employee wellbeing. By initiating multiple types of staff care cultivating family-friendly workplaces and fostering inclusive cultures we have

significantly enhanced staff satisfaction.

05 06Contents

About this Report 01 Governance Quality Leadership for Social Responsibility

Message from the Chairman 05 Optimization for Solid Operational in Common

About Northern Rare Earth 09 Foundation Excellence Prosperity

ESG Management 21

Governance Effectiveness 35 Product Quality 81 Rural Revitalization Support 125

Compliant Operations 37 Safety Bottom Line 85 Public Welfare 126

Development Empowered by Digital and 42

Responsibility for Customers 93

Intelligent Forces

Rights and Interests of Shareholders 50 Green Procurement Practices 95

Technological Innovation 97

[ Topic ]

The Innovation and Intelligence Engine

is steering the development of the Two

Rare Earth Bases and poised to outline a

transformative blueprint for the green

industry

Strategic Navigation: New Chapter in 28 Green Transition People Centered Outlook 130

High-Quality Development toward Harmonious Growth in Love Appendix I: Index of Indicators 131

Innovation-Driven: New Engine for Industrial 28

Advancement Coexistence Appendix II: Reader Feedback Form 143

Rights and Interests of Employees 109

Green Technologies: New Benchmarks for 30

Ecological Transition Ecological Environment Management 55 Employee Development 112

Climate Change 59 Occupational Health 117

Resource Efficiency 64 Employee Life 119

Pollution Prevention and Control 71

Green Living 76中国北方稀土

07 08China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

About Northern Rare Earth

Currently the Company possesses nine state-level scientific and technological innovation platforms including the State Key

Company Profile Laboratory for Research and Comprehensive Utilization of Baiyun Obo Rare Earth Resources the National Innovation Center for

Rare Earth Functional Materials the National Technical Standard Innovation Base (Rare Earth) and the Rare Earth New Material

China Northern Rare Earth (Group) High-Tech Co. Ltd. was established in 1961 and Testing and Evaluation Platform (Rare Earth Industry Center). Notably the Rare Earth New Material Testing and Evaluation

operates as a subsidiary of Baogang (Group) Co. Ltd. Notably in 1997 it was listed on Key Performance Platform is the sole platform sanctioned by the Ministry of Industry and Information Technology in the rare earth sector

the Shanghai Stock Exchange (SSE) recognized as China’s Premier Rare Earth Stock. underscoring its unique significance. In addition to these platforms the Company is home to two national-level enterprise

In 2015 Northern Rare Earth took the lead in establising the nation's first rare earth technology centers: the Technology Center of China Northern Rare Earth (Group) High-Tech Co. Ltd. and the Technology Center

Number of Branches

group successfully instituting centralized and unified management of light rare earth of Gansu Rare Earth New Materials Co. Ltd. Furthermore it operates two national-level post-doctoral research workstations—the

and Subsidiaries

resources in northern China. Today Northern Rare Earth has a robust infrastructure Post-doctoral Workstation of Baotou Research Institute of Rare Earths and the Post-doctoral Workstation of China Northern Rare

comprising 42 affiliates including branches and subsidiaries employing more than 42 Earth. The Company also has an impressive array of 16 provincial (autonomous region-level) technological innovation platforms

9000 individuals across 11 provinces municipalities and autonomous regions within which include the Inner Mongolia Autonomous Region Engineering Technology Research Center for Rare Earth Abrasive Materials

the country. As a globally recognized leader in the rare earth industry the Company the Inner Mongolia Autonomous Region Key Laboratory of Rare Earth Functional Materials and the Technology Innovation Center

Employees over

has achieved remarkable cross-regional cross-ownership and multi-sector synergy for Rare Earth New Materials.positioning itself as the largest highest-output and most profitable integrated 9000

rare earth enterprise in the world. Its excellence spans production research and

development and trade affirming its dominant role in the global rare earth market. 2Distribution 9

National-Level Post-

State-Level Scientific Doctoral Research 16

Utilizing the distinct resource advantages inherent to the Baiyun Obo Mine Northern 11 and Technological Workstations Provincial (autonomous Innovation Platforms region-level)

Rare Earth has successfully established the world’s largest production base for raw Technological Innovation

Provinces (municipalities and Platforms

materials and rare earth functional materials. The Company possesses the capacity autonomous regions) 2

to manufacture 11 major categories of rare earth products encompassing over 100 National-Level

varieties and nearly 1000 specifications. With an annual smelting and separation Enterprise Technology

Centers

capacity of over 200000 tons and a rare earth metal production capacity of 42000

tons Northern Rare Earth ranks as the world’s top supplier of rare earth raw materials.In the realm of rare earth functional materials it achieved an annual production

capacity of 100000 tons in magnetic alloys making it the largest producer in the

world; the polishing materials of 36000 tons per year claiming over 50 percent of

the domestic market share; and the hydrogen storage alloys of 8300 tons per year. It

also produces catalysts generating 20000 units each year. Furthermore the Company

produces 1270 rare earth permanent magnet motors annually.

09 10China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

Corporate Culture Overview of Products

Category and Name Applications

Used in manufacturing special alloys precision optical glass high-refractive-

Lanthanum oxide

Northern Rare Earth Northern Rare Earth index optical fiber panels ceramic capacitors and others.Used in producing among others special alloys rare earth catalytic materials

Cerium oxide

Vision Mission rare earth colorants and rare earth thermal stabilizers.Becoming A World-class To Develop and Expand Rare earth polishing materials agricultural fertilizers and water treatment Lanthanum-cerium carbonate

Leader in the Rare Earth China’s Rare Earth systems.Sector Industrial Chain and Build

Raw

A High-Quality Ecological materials Praseodymium-neodymium Rare earth metals electronic industry and others.Framework for Rare Earth

Sector Praseodymium-neodymium Magnetic materials

metal

Neodymium Metal Magnetic materials

Lanthanum-Cerium Metal Hydrogen storage materials flint (for lighters) and others.Northern Rare Earth Northern Rare Earth

Lanthanum metal Hydrogen storage materials fuel cells and rare earth alloys.Cerium metal Hydrogen storage materials magnetic materials fuel cells and rare earth alloys.Core Values Spirit

Improve Ourselves Relentless Resilience Drive motors servo motors micro/special motors.Empower the Society Beyond Competency Magnetic materials Among these samarium-cobalt (SmCo) permanent magnets serve as

critical materials for China’s Shenzhou spacecraft series.Nickel-Metal Hydride (Ni-MH) batteries and hydrogen storage &

Hydrogen storage materials transportation.Materials

LCD/hard disk glass substrates smartphone cover glass crystal

Polishing materials rhinestone jewelry conventional & precision optical components

semiconductor photomasks and integrated circuits.Catalytic materials Automotive exhaust purification and industrial waste gas treatment.Corporate Mascot Rare earth alloys Steel production construction materials and automotive manufacturing.Bao Xiaoxi is a winged divine horse symbolically portrayed as a white

Mongolian steed. The choice of white represents rarity hope and Products Permanent magnet motors

Wind power new energy vehicles electronic communication and high-

unwavering determination. The horse’s wings are depicted in a technology- end healthcare.inspired blue. Encircling its neck is a collar embellished with the 17 rare earth

elements which signifies the strategic importance of the resource industry. Samarium oxide Magnetic materials ceramics glass electronic components and others.Collectively these elements illustrate how technological advancement and

Europium oxide Phosphors optical materials etc.the development of new quality productive forces empower Northern Rare

Earth to ascend to new heights. In this context rare earth materials and Gadolinium oxide Electronic components medical and healthcare etc.other emerging industries can be viewed as the wings of progress. Medium- Terbium oxide Alloys magnetic materials phosphors etc.heavy rare

earths Dysprosium oxide Alloys magnetic materials phosphors etc.Holmium oxide Optical communication devices medical and healthcare etc.Erbium oxide Ceramics optical materials laser applications etc.Lutetium oxide Optical materials laser applications semiconductors and so on.

11 12China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

Awards and Honors The End-to-End Rare Earth Digital-Intelligent

Benchmark Enterprise in the SASAC’s Management Smart Factory recognized as a 2024

Sci-Tech Reform Initiative Excellence-Level Smart Factory (First Batch)

State-owned Assets Supervision and Ministry of Industry and Information Technology

Administration Commission of the State Council

Top 100 Companies at the Second

Included in 2024 China Corporate ESG 100 Index Guoxin Cup ESG Golden Bull Award

People’s Daily China Securities Journal Baotou Rare Earth Products Exchange was recognized

Flagship Enterprise under the National as a 2024 Outstanding Case of Real-Digital Integration

Quality Empowerment Strategy in China’s Commodity Sector

State Administration for Market Regulation Commodity Trading Market Circulation Branch

China Federation of Logistics & Purchasing (CFLP)

Golden Quality ESG Award Top 100 A-share Listed Companies

Shanghai Securities News Securities Times Gansu Rare Earth’s 11000-ton per year solvent extraction Ningbo Baogang Zhanhao’s 10000-ton per

production line recognized as a Digital Workshop in Smart year strip recognized as a 2023 Ningbo Digital

Manufacturing System Construction by Gansu Province Workshop in Ningbo

Department of Industry and Information Technology of Ningbo Zhejiang

Gansu Province

Top 100 A-share Listed Companies Outstanding ESG Practice Award

Phoenix Television Hong Kong ESG Reporting Awards 2024 Inner Mongolia Brand Inner Mongolia Top 100 Most

Development Benchmark Enterprise Recognized Brands

Department of Agriculture and Animal Husbandry Department of Agriculture and Animal Husbandry

Development and Reform Commission and Development and Reform Commission and

Department of Industry and Information Federation Department of Industry and Information

Best Listed Companies 2024 Capital Market Value Awards - of Industry and Commerce and Brand Promotion Federation of Industry and Commerce and Brand Promotion

Enterprise of the Year (Impact Category)

New Fortune magazine Association in Inner Mongolia Autonomous Region Association in Inner Mongolia Autonomous Region

Yi Cai Media Group

Northern Rare Earth Northern Magnetic Materials

8th Batch National Manufacturing “Single and Xinfeng Xinli recognized as ProvincialChampion” Enterprise Manufacturing “Single Champion” Enterprises

2023-2024 Information Disclosure 26th Golden Information Disclosure

A-Rating (Outstanding) Department of Industry and Information Department of Industry and Information Technology Award for Listed Companies

Technology of Inner Mongolia Autonomous Region of Inner Mongolia Autonomous Region Department of

Shanghai Stock Exchange China Securities Journal Industry and Information Technology of Jiangxi Province

ZXAT and Xinfeng Xinli recognized as SRDI Tianjiao Qingmei Huaxing Rare Earth Jinmeng ZXAT

Huamei Tunnel Kiln Automation Project in smelting (specialized refinement differential innovation) and Xinfeng Xinli recognized as Innovative Small/

sector recognized as the 2024 Best Practices of 2024 Best Practice Cases in Sustainable Enterprises Medium-Sized Enterprises

Digital Transformation in China’s Listed Companies Development by Listed Companies Department of Industry and Information Technology Department of Industry and Information Technology

China Association for Public Companies China Association for Public Companies of Inner Mongolia Autonomous Region Department of of Inner Mongolia Autonomous Region Department of Industry and Information Technology of Jiangxi Province Industry and Information Technology of Jiangxi Province

Best Cases for 2023 Earnings 2024 Outstanding Board Office Practice 2023-2024 National Outstanding Ideological and Gansu Rare Earth received the Fifth Government

Briefing Case among Listed Companies Political Work Unit in Metallurgical Industry Quality Award of Baiyin City

China Association for Public Companies China Association for Public Companies

The Metallurgical Enterprises Political Work Baiyin Municipal People’s Government

Association of China

13 14China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

Technology Awards Awards for Standards

Award Technology Issuing institution Award Technology Issuing institution

Key Technology for Metallurgical

1st Prize of Rare Earth National Standard - Technical Specification

Quality Control in High-Performance The Chinese Society of Rare Earths 1st Prize for Outstanding

Science and Technology for Sintered Rare Earth Permanent Magnet SAC/TC229

Rare Earth-Containing Magnesium Association of China Rare Earth Industry Technical Standards

Awards Assemblies

Alloys and its Applications

1st Prize of the Science Development of the First Batch

The Nonferrous Metals Society of China 2nd Prize for Outstanding National Standard - Rare Earth-Based Hydrogen

and Technology Awards of of Critical International Rare Earth SAC/TC229

China Non-Ferrous Metals Industry Technical Standards Storage Alloys for Solid-State Hydrogen Storage

Chinese Non-ferrous Metal Standards-Rare Earth Terminology

Association

Industry Series

2nd Prize for Outstanding Industry Standard - High-Purity Ytterbium (Yb)

SAC/TC229

Research and Development and Technical Standards Metal Targets

2nd Prize of Rare Earth Industrialization of Key Technologies

The Chinese Society of Rare Earths

Science and Technology for the Reduction of Precious Metals

Association of China Rare Earth Industry National Standard - Chemical Analysis of Non-

Awards and the Enhancement of Stability in Rare Earth Impurities in Rare Earth Metals and

Rare Earth-Based Catalysts 3rd Prize for Outstanding Their Oxides - Part 21: Determination of Sulfate SAC/TC229

Technical Standards

Research on Key Technologies Content in Rare Earth Oxides - Barium Sulfate

2nd Prize of Rare Earth for Preparing High-Purity Highly Turbidimetric Method

The Chinese Society of Rare Earths

Science and Technology Dispersed Nano-Ceria via Spray

Association of China Rare Earth Industry

Awards Pyrolysis of Rare Earth Extraction 3rd Prize for Outstanding Industry Standard - Rare Earth Polishing Powder

SAC/TC229

Separation Liquors Technical Standards for LCD Glass Substrates

2nd Prize of Rare Earth Development of Resource Recovery

The Chinese Society of Rare Earths

Science and Technology Process for High-Salinity Wastewater

Association of China Rare Earth Industry

Awards in Rare Earth Industry

2nd Prize of Rare Earth Applied Research on High-Efficiency

The Chinese Society of Rare Earths

Science and Technology Detection Technologies in Ultra-High

Association of China Rare Earth Industry

Awards Purity Rare Earth Analysis

2nd Prize of Metallurgy Development and Application of Key

China Iron & Steel Association

Science and Technology Technologies for High-Quality Rare

The Chinese Society for Metals

Awards Earth Master Alloy Production

3rd Prize of Metallurgy R&D of Low-Speed High-Torque Rare

China Iron & Steel Association

Science and Technology Earth Permanent Magnet Drive Motor

The Chinese Society for Metals

Awards Systems

15 16China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

2024 Milestones

A new heavy rare earth mineral Baiyun Yttrium-Barium Ningbo Baogang Zhanhao’s 10000-ton per year strip casting The innovation base established by Northern Rare Earth received formal approval Northern Rare Earth was recognized as a

Ore was discovered in Baiyun Obo. flakes production facility was recognized as a 2023 Ningbo signifying the establishment of the only national technical standard innovation base high-skilled talent training base at the Inner

Digital Workshop in Ningbo. in China’s rare earth sector at Northern Rare Earth. Mongolia Autonomous Region level marking

The Rare Earth Heat Insulation Coating and Rare Earth

a significant achievement as it became the

Coated Glass developed by the BRIRE Tianjin Branch For the first time Northern Rare Earth developed and published the Vocational

first enterprise in the region’s rare earth

was included in the 2023 Recommended Catalogue Skill Standard of Northern Rare Earths in effectively addressing a critical gap in

industry to receive this esteemed honor.of Technologies and Products for Ecological and vocational skill standards within the country’s rare earth industry.Environmental Governance under the Belt and Road

Initiative.Jan Feb Mar Apr

Northern Rare Earth entered into a tripartite agreement with Fudan University and Inner

Mongolia University to establish the Northern Rare Earth - Fudan University - Inner Mongolia Northern Rare Earth was positioned The Rare-Earth Infrared-Reflective

University Rare Earth Materials Research Joint Laboratory. This collaboration is poised to among the top ten entities in China’s Hollow Insulating Polyamide Fiber

significantly advance research and development in several key areas including precision brand value within the metallurgy and jointly developed by BRIRE Tianjin The international standard titled Praseodymium-Neodymium Metal developed

polishing technologies lanthanum-cerium material applications novel materials for energy nonferrous metals sector.Branch and Tianjin Branch of by the BRIRE was officially registered with the International Organization for

conversion and storage and biomedical applications. China Textile Academy earned the Standardization (ISO). This milestone marks it as the first international standard

distinction of being recognized as the

The group standard titled Technical Requirements for Low-Pressure Solid-State Hydrogen for rare earth products to be approved and initiated by ISO/TC298.Top Ten Scientific and Technological

Storage developed under the main leadership of the BRIRE was officially released on 中国

Achievements in 2024 by GENERTEC 北

China’s National Group Standards Information Platform. This standard establishes essential 方稀

China Textile Academy. 土

technical specifications that will play a pivotal role in advancing the commercialization of

low-pressure solid-state hydrogen storage solutions.Northern Rare Earth was named a National Pioneering Enterprise in Rare Earth New Materials.Aug Jul Jun May

Northern Rare Earth initiated the Safety Specification for Rare Earth

Smelting project marking the establishment of the first safety standard The Northern Rare Earth High-End Magnetic Materials

for rare earth smelting in China. Academician Workstation collaboratively established with

Hefa Huaxing Rare Earth and Xi'aoke received Northern Rare Earth and its affiliates— including the Smelting Branch and Academician Jiang Chengbao from the Chinese Academy

Green Factory certification in the Inner Mongolia Two industry standards have been officially implemented: the Technical International Trading—achieved dual certifications for ISO 37301:2021 and of Sciences received official registration from the following

Autonomous Region. Specification for the Evaluation of Green Design Products - Rare Earth GB/T 35770-2022 marking it as the first SOE with the accomplishment in entities: the Inner Mongolia Department of Science and

Polishing Powder (XB/T808-2023) and the Evaluation Requirements for Inner Mongolia.Technology the Organization Department of the Party

The Smelting Branch attained Level 3 (Integrated) Green Factories of Rare Earth Polishing Powder (XB/T812-2023) both led

Certification in the Smart Manufacturing Capability by Tianjiao Qingmei. The first automatic batching line system in China’s neodymium-iron-boron

Committee and the Inner Mongolia Association for Science

Maturity Assessment positioning itself as the first rare strip-casting alloy industry jointly developed by Magnetic Materials has

and Technology.earth enterprise in China to achieve this distinction in Gansu Rare Earth’s extraction and separation production line with an been in full production. The End-to-End Rare Earth Digital-Intelligent Management

the production processes of rare earth carbonate and annual capacity of 11000 tons has been recognized as one of the Smart Factory from Northern Rare Earth was recognized

oxide. Digital Workshops in the latest cohort of Gansu Province’s intelligent

Baotou Rare Earth Products Exchange was recognized as a 2024

Outstanding Case of Real-Digital Integration in China’s Commodity Sector. as a Ministry of Industry and Information Technology 2024 manufacturing system initiative.Excellence-Level Smart Factory (First Batch) in China’s

The first phase of the green smelting upgrading and transformation national evaluation.project at Northern Rare Earth has been put into operation.Sept Oct Nov Dec

17 18China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

2024 Performance Highlights

Operation Environmental

performance Performance Special environmental protection Percentage of the Company and

Total assets Net assets attributable to the parent

Revenue

expenditure its affiliates with environmental

45.381 company 32.966 0.648 management certification22.432 billion yuanbillion yuan billion yuan

billion yuan 91.66%

Environmental protection training Comprehensive energy

Total profit Net income attributable to the parent

sessions consumption per unit of output

1.837 company

billion yuan 1.004 91 919kgce/tREObillion yuan

Governance

Performance Social

Party Committee meetings General meetings Board meetings Performance

34 4 14 R&D expenditure R&D expenditure to Product on-time delivery rate

16.04 revenue ratio 100%

Supervisory Committee Management meetings at Meetings of special 100 million yuan 5.11%

meetings General Manager level committees

12 25 21 Safety inspections Customer satisfaction Total employees878 100% 9867

Special meetings of Percentage of independent Distribution of cash

independent directors directors dividends in 2023

0.253 Total training expenditure

Occupational health Employee care and

5 35.71% billion yuan 4.8511 examination coverage assistancemillion yua 100% 1.2584million yuan

Rural revitalization Public welfare Volunteering duration

expenditure expenditure

5.3941 1.2245 3128Hours

million yuan million yuan

19 20China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

ESG Management Board of Directors

ESG Management System Evaluate and approve the Company’s ESG strategic planning objectives framework

and policies;

The Company is committed to the continuous enhancement of its corporate governance and the elevation of its ESG Assess the relevant ESG-related risks and their materiality to the Company;

management practices. It has established a robust ESG management framework which comprises three integral levels: Review and endorse the disclosure of pertinent information including the Company’s

the Board of Directors the Strategy and ESG Committee and the ESG Working Groups. This structure provides a solid ESG report;

organizational foundation for advancing the Company’s ESG governance thereby facilitating the effective implementation of Examine any major negative ESG events that may arise; and

ESG considerations across all levels of the Company. Oversee the effective implementation of the Company’s ESG management operations.The Company has established comprehensive Guidelines on Environmental Social and Governance (ESG) Management that

integrate ESG considerations into its strategic and operational frameworks. By incorporating ESG factors into its business

development and operational management processes the Company effectively fulfills its ESG responsibilities and meets the Strategy and ESG Committee

diverse expectations of its stakeholders.The Company enhances its ESG management system by establishing a comprehensive ESG indicator management Formulate and propose updates to the corporate ESG policies encompassing key

framework. It strengthens the integration and mutual reinforcement between conceptual implementation and operational areas such as climate change health and safety environmental stewardship human

management. Furthermore the Company compiles and discloses high-quality annual reports on its ESG performance rights and anti-corruption. It is imperative to ensure that the Company’s position

effectively presenting its performances. As a result the Company has improved its ESG ratings and was recognized as an and performance on global ESG issues align with the times and international

Outstanding Practice Cases of Listed Companies in 2024 by China Association for Public Companies. Additionally it has standards;

received several prestigious awards in the capital market including the Top 100 of the Second Guoxin Cup ESG Golden Advise on climate change response initiatives greenhouse gas (GHG) reduction

Bull Award and the Golden Quality ESG Award thereby providing robust ESG management support for its high-quality targets green product development clean energy technology adoption and

development. operational safety and stability protocols;

Conduct studies analysis and risk assessments on ESG matters and propose ESG

strategies targets and policy enhancements;

Coordinate and monitor ESG policy implementation management performance and

goal attainment progress and provide corrective action recommendations;

Review and submit ESG reports to the Board of Directors;

Evaluate material ESG-related matters requiring board-level attention; and

Board of Directors Exercise other ESG-related authorization granted by the Board of Directors.ESG Working Group

Research and formulate ESG policies and action plans aligned with the Company’s

Strategy and ESG Committee

strategy and ESG objectives;

Oversee day-to-day ESG-related risks and matters which include compliance

monitoring and incident response protocols;

Liaise with relevant functions subsidiaries and branches to ensure effective ESG

implementation and resolve any execution bottlenecks;

Collect consolidate and draft ESG disclosure documents for ESG information

ESG Working Group disclosure; and

Other ESG tasks.

21 22China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

Communication with Stakeholders

The Company has set regular and efficient communication channels with stakeholders given the industry’s characteristics

and operational dynamics. We identify stakeholder expectations and address their needs to enhance our ESG performance.Stakeholders Stakeholder expectations Our actions and responses Stakeholders Stakeholder expectations Our actions and responses

Developing strategies and management Taking part in industrial activities

*Industry contribution

framework Developing relevant standards

*Green transformation

*Strategic response Holding formal meetings in accordance Enhancing technology research and

*Digital transformation

Board of Directors *Modern corporate governance with laws Industry associations development

Supervisory Committee *Risk and compliance management Improving risk control and internal

*Brand and image management control framework

Management Level

Obtaining compliance certifications Optimizing supplier management

Monitoring the public opinion procedures

*Supply chain management

Enhancing technology research and

*Green transformation

development

*Technological innovation

Improving staff management system Performing Industry-University-Research

*Equal opportunities in employment Partners

Organizing comprehensive safety Institute (IUR) cooperation

*Protection of interests and rights

inspections

*Occupational health and safety

Employees Hosting cultural and sports activities*Development and promotion

Improving promotion mechanism Taking part in industrial activities

*Industry contribution

Hosting environmental protection

*Ecological governance

Media awareness campaigns

*Product quality and safety Enhancing after-sale management

*Communication mechanisms and procedure

*channels Creating complaint channels

Customers *Strategic response Respond to national strategies.*Modern corporate governance Improving management system

Governmental bodies *Business ethics Building the compliance system

and regulators

Holding general meetings

Improving risk control and internal

*Modern corporate governance control framework

*Investor relations management Obtaining compliance certifications Engaging with communities around our

*Community relationship

External investors *Risk and compliance management Coordinating investor visits and research project sites

Shareholders *Rural revitalization*Performance growth Holding earnings briefings

NGOs Contributing to rural revitalization*Activities for the public interests

Attending brokerage investment Communities Organizing public welfare activities

conferences

23 24China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

Double Materiality Analysis Matrix of Material Issues

The Company applied the Double Materiality principle (impact materiality and financial materiality) to conduct an online

questionnaire distributed to senior management and stakeholders. This approach enables a comprehensive analysis of

stakeholder perspectives and expectations and facilitates the establishment of the 2024 Double Materiality Matrix which

represents priority of ESG issues. Innovation-Driven

Development

Employee Training and Development

Occupational Health & Safety

Determination of Double Materiality Issues Equal Employment and Labor Climate Change Practices Mitigation

Emissions Product Safety

Management Energy Efficiency & Utilization & Quality

Investor Rights Protection

Supply Chain Customer Service and Communication

Security Digital Transformation

By referencing core indicators from domestic and international ESG reporting Corporate Governance Water Resource Management

guidelines such as the Guidelines No. 14 of Shanghai Stock Exchange for Self- Information Disclosure Data Security and Customer Privacy

Regulation of Listed Companies—Sustainability Report (Trial) and the Global Impact Anti-Corruption and Risk and Compliance

Reporting Initiative (GRI) Sustainability Reporting Standards and aligning with Materiality Business Ethics

Circular Economy National Strategic Alignment

Identify national policies and industry characteristics the Company has systematically Practices

Green Operations Intellectual Property Management identified and organized key ESG issues.Environmental Compliance ESG Structure

Rural Party Building Leadership

Revitalization

Initiatives

Social Contribution Programs

Ecosystem and Biodiversity Protection Environmental

Conducting stakeholder issue surveys through online questionnaires we analyzed

the results in a quantitative manner to prioritize issues based on their level of Socia

concern. This approach helped determine the impact materiality and financial

Assess Governancemateriality of each issue.Financial Materiality

Highly Material

Innovation-Driven Development Product Safety & Quality Occupational Health & Safety Climate Change Responses

and Energy Efficiency & Utilization

Moderately Material

Employee Training and Development Equal Employment and Labor Management Emissions Management Customer

Service and Communication Supply Chain Security Investor Rights Protection Digital Transformation Corporate

Governance Water Resource Management Information Disclosure Data Security and Customer Privacy Risk and

Compliance Anti-Corruption and Business Conduct Circular Economy National Strategic Alignment IPR Management

ESG Governance Structure and Party Building Leadership

Material

Environmental Compliance Rural Revitalization Social Contribution Programs Green Operations and Ecosystem

and Biodiversity Protection

25 26China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

Topic Strategic Navigation: New Chapter in

High-Quality Development

The Innovation and Intelligence Engine is

The Company is steadfastly committed to a new trajectory of high-quality development

steering the development of the Two Rare Earth characterized by ecological priority and green development principles. It aims to position itself as

a high-tech enterprise at the forefront of the global green and low-carbon transformation and

Bases and poised to outline a transformative provide comprehensive services tailored to the rare earth industry ecosystem.blueprint for the green industry The Company is strategically advancing towards a transformation characterized by high-end intelligent and environmentally sustainable development. It is scaling up the production

of premium products including high-purity rare earth oxides compounds metals and target

materials. In addition the Company is actively engaged in research and development of advanced

permanent magnetic materials polishing materials and hydrogen storage solutions targeting

critical sectors such as national defense military applications and precision equipment. This

strategic focus positions the Company to accelerate its evolution into a world-class leader within

General Secretary Xi Jinping during his inspection of Inner Mongolia underscored the necessity of leveraging the rare earth industry. By effectively harmonizing resource utilization with innovation-driven

the region’s strategic resources. He advocated for the protective development high-quality utilization development the Company is demonstrating its commitment to high-quality growth.and standardized management of these resources emphasizing the importance of enhancing local deep

The Company proactively aligns with national strategies and has pioneered the formulation of

processing of energy resources to advance the strategic resource industry effectively. In alignment with the first international standard in the rare earth industry. By enhancing the global presence of

this vision the State Council’s Opinions on Promoting the High-quality Development of Inner Mongolia and its products brands and standards across the entire industrial chain the Company significantly

Striving to Write a New Chapter in Chinese-style Modernization delineates a clear objective: Baotou is to be bolsters the influence and competitiveness of China’s rare earth sector on the world stage.developed into China’s largest base for rare earth new materials and a globally leading hub for rare earth

applications. The Company is committed to fully embodying the principles established at the 20th National

Congress of the Communist Party of China as well as the directives and important addresses delivered by Innovation-Driven: New Engine for

General Secretary Xi Jinping during the Second and Third Plenary Sessions of the 20th Central Committee

that pertain to Inner Mongolia and the development of the rare earth industry. By aligning with these Industrial Advancement

strategic frameworks the Company effectively navigates the new phase of development and implements

the new development concepts in a manner that is thorough precise and comprehensive. The Company Rare earths are China’s advantageous strategic resources and play an important role in promoting the

acknowledges its pivotal role in fulfilling the national strategic mission and commits to advancing the development of global strategic emerging industries such as new energy new materials advanced

healthy and stable development of the rare earth industry as a core responsibility. It actively engages in manufacturing and electronic information. The Company is committed to technological innovation

by integrating scientific and technological innovation resources to accelerate the development of

the foundational work of establishing the Two Rare Earth Bases leveraging its capabilities as a key player

new quality productive forces construct a new development pattern and promote the high-quality

in this initiative. By prioritizing new-quality productivity the Company is dedicated to achieving significant development of China’s rare earth industry.advancements in high-end transformation intelligent upgrading and green development. The Company

is poised to accelerate its efforts in becoming a world-class leader in the rare earth sector contributing

meaningfully to the resilience and security of China’s rare earth industry chain and supply chain. Through Intelligent Manufacturing Upgrade

these strategic initiatives it aims to reinforce the construction of the Two Rare Earth Bases ensuring that it

not only meets but exceeds national expectations in this critical industry. The Company is strategically advancing its industrial upgrade featuring high-end intelligent and green transformation

through several key initiatives. We promote the layout and achievements transformation of major projects such as large-

scale molten salt electrolyzers continuous intelligent production equipment for NdFeB alloys as well as rare earth

permanent magnet motors. Our robust infrastructure includes a dedicated hydrometallurgy pilot base and specialized

In 2024 the Company successfully completed the merger and restructuring of Baotou ZXAT Magnetic Materials Co. Ltd. pilot lines for the development of rare earth flame retardants and modified PLA products. Additionally we have startedeffectively addressing a critical gap in its production capabilities for lanthanum and cerium metal products. The Company constructing the incubation bases for high-purity rare earth metals and specialty alloys. These efforts help bridge the “lasthas collaborated with Ningbo Zhaobao Suzhou Torin and Souwest Magnetech to jointly establish Northern Zhaobao. Thismile” of tech commercialization to ensure R&D breakthroughs reach industrial scale.partnership aims to develop a state-of-the-art production line for high-performance neodymium-iron-boron magnetic

materials with an ambitious annual output target of 3000 tons. This initiative further extends the Company’s magnetic

materials industry chain.

27 28China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

Case Reconstruction and Expansion Project of Tianjiao Qingmei’s Case

Study The Permanent Magnet Motor Project of Northern Jiaxuan 9000-Ton Rare Earth Polishing Powder Production Facility Study

The Commission of the main equipment in the newly constructed The flexible production line for permanent magnet motors

production workshop for the Tianjiao Qingmei project has been along with a comprehensive motor testing platform and an

successfully completed. The new production line establishes a open laboratory at Northern Jiaxuan is completed. This project

benchmark within the industry for both environmental sustainability

uniquely addresses the need for permanent magnet motor

and technological intelligence. Upon commencing production Tianjiao

Qingmei will be positioned to manufacture polishing powder products products with voltage ratings of 3.15 megawatts and below

across five distinct series encompassing over 40 specifications and effectively filling a critical gap in the Inner Mongolia Autonomous

models. This comprehensive product range will effectively address Region’s permanent magnet motor sector. By eliminating

various market segments including low medium and high-end rare traditional components such as speed reducers and couplings

earth polishing materials significantly bolstering the company’s core and by optimizing system design the permanent magnet drum

competitiveness. Moreover this development signifies that Tianjiao

motor substantially enhances system reliability and transmission

Qingmei’s production capacity is on the verge of reaching the 10000-

ton threshold heralding a new era of growth and innovation for the efficiency thereby achieving notable energy savings.company.Green Technologies: New Benchmarks for

Case Second-Phase Expansion Project of Huaxing Rare Earth’s Facility

Study

with an Annual Capacity of 8000 Tons of Rare Earth Metals Ecological Transition

In alignment with China’s vision of ecological civilization green development has become essential to achieving high-quality

The second-phase expansion project at Huaxing Rare Earth is a pivotal

economic growth in the contemporary era. The emergence of new quality productive forces signifies an inherent shift

initiative aimed at significantly enhancing production capacity and

achieving high-quality development within the sector. This project towards sustainable industrial transformation. The Company is at the forefront of this green transformation through several

incorporates the 18KA electrolytic cell recognized as the largest single- strategic initiatives.unit production capacity available in China while leveraging advanced

domestic processing technologies and state-of-the-art environmental The Company consistently aligns itself with the latest advancements in the industry leveraging its substantial advantages

protection systems. Notably the innovative approach of electrolyzing in rare earth resources to strengthen its resource utilization and maintain its leading position. It is committed to rigorous

rare earth oxides within a fluoride system ensures 100% utilization research development and application of energy-saving and low-carbon technologies within rare earth production

of rare earth elements alongside the recycling of fluorine resources. continuously exploring innovative solutions. Furthermore the Company actively promotes the implementation of established

This process not only yields superior quality rare earth metals but also

reduces production costs. process technologies and products such as solid-state hydrogen storage devices and rare earth permanent magnet

motors. By guiding the industry towards specialization and sustainability the Company is determined to establish itself as a

benchmark for green and low-carbon practices in the rare earth sector.Efficiency Enhanced by Permanent Magnet Motors

The Company is dedicated to advancing the application of permanent magnet motors and intelligent production lines

thereby facilitating the rapid evolution of equipment. By seamlessly integrating the industrial supply chain of rare earth

magnetic materials with rare earth permanent magnet motors the Company is driving the end-use of rare earth resources

and the progression of permanent magnet motor technology. It is committed to establishing a leading R&D center and

production facility for permanent magnet drive systems in northern China. This initiative will significantly contribute to the

expedited development of the Two Rare Earth Bases.

29 30China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

Case

Study Green Smelting Upgrading and Transformation Project The Company is firmly committed to a pathway of high-quality development that prioritizes ecological sustainability and

green practices. It plays a pivotal role in advancing the Rare Earth Environmental Product Declaration (EPD) platform . This

The first phase of the green smelting upgrading and transformation

initiative significantly contributes to the promotion of green product design as well as the establishment of environmentally

project at the Company has been put into operation. This project

represents the largest and most comprehensive rare earth friendly factories and sustainable supply chains within the rare earth industry. The Company has successfully integrated

smelting and separation initiative globally. It replaces the previous a life cycle assessment (LCA) for rare earth products across its operational framework. In response to the unique

production line and exemplifies a significant advancement in new characteristics of the rare earth industry it has refined the calculation model for resource depletion potential and

quality productive forces. The innovative process technology significantly enhanced the background database utilized for LCA evaluations. Furthermore the Company actively engages

state-of-the-art equipment and robust environmental protection in the development of product category rules (PCR) and group standards within the rare earth EPD platform thereby

measures not only set industry standards but also maximize the

reinforcing its commitment to the platform’s high-quality operation and advancing sustainability in the sector.supply of various raw material products to meet the diverse

needs of downstream enterprises effectively. This project marks a

groundbreaking advancement in the rare earth industry achieving

continuous automated production across multiple stages for the first time. By integrating a suite of cutting-edge

equipment it ensures that the control rates of key processes and the digitalization of production equipment are Case Study The First Release of EPD Reports

among the highest in the industry.In April 2024 the Rare Earth Environmental Product Declaration (EPD) Platform was officially launched in

The transformation and extraction workshop C serves as the cornerstone of the first phase of the project. The

Beijing a collaborative initiative spearheaded by the Chinese Society of Rare Earths Association of China Rare

state-of-art magnesium bicarbonate process for smelting and separating Baiyun Obo rare earth ore alongside the

Earth Industry the China Quality Certification Center and various other key stakeholders in the rare earth

hyperlinks solvent extraction and transformation technology for rare earth sulphate are employed. This innovative

sector including authoritative certification bodies and both upstream and downstream enterprises. The EPD

approach effectively integrates transformation and separation processes streamlining the overall technological

serves as a scientifically grounded comparable and internationally recognized mechanism for disclosing the

workflow. As a result it significantly reduces costs associated with raw and auxiliary materials and decreases the

environmental impact of products and services throughout their entire life cycle—from raw material extraction

unit consumption of acid and alkali by over 30%. Additionally it facilitates the recycling of resources including

to final disposal. It undergoes rigorous third-party verification and is rooted in life cycle assessment (LCA)

magnesium carbon dioxide and water.thus providing a credible “green identity card” that enhances transparency and accountability in the rare earth

industry. The Company has taken the lead in releasing four EPD reports for rare earth products on the EPD

platform. This initiative positions the rare earth EPD platform as a pivotal resource for Chinese enterprises

within the rare earth industrial chain facilitating their proactive engagement in green international trade. The

Case Development and Application of the Process for Efficient Decomposition of platform aims to establish international recognition of the environmental performance of Chinese rare earth

Study

Rare Earth Compounds in the Rotary Kiln undertaken by Gansu Rare Earth products significantly enhancing their green competitiveness. Moreover it contributes to the value creation

for sustainable low-carbon development and promotes the green transformation and upgrading of China’s rare

earth industry.Gansu Rare Earth is committed to enhancing its scientific

and technological innovation capabilities and expediting

the research and development of effective methodologies.This initiative has not only generated valuable insights

into the calcination of rare earth carbonates but has also

significantly improved the level of automation within

the production processes. The fully automated rotary

kiln boasts several advantages including low energy

consumption substantial production capacity and a high

level of automation. This advanced system effectively

recycles high-temperature waste heat enhances production

capacity and product quality improves the production

environment and reduces labor intensity. Furthermore

the production line has successfully conducted trial runs

for praseodymium-neodymium carbonate achieving

stable product quality and a notable decrease in the unit

consumption of natural gas.

31 32Governance Optimization 01

for Solid Foundation

The Company is committed to fostering robust Party leadership while advancing the standardization and modernization of its

governance framework. By prioritizing compliant operations and enhancing risk prevention and control measures the Company

safeguards the rights and interests of its investors. Furthermore it has improved its information disclosure mechanisms and accel-

erated its digital transformation efforts. These initiatives establish a strong defense for information security thereby laying a solid

foundation for high-quality development and ensuring the achievement of long-term objectives.Performance Highlights in 2024

Party Committee meetings General meetings Board meetings Supervisory Committee meetings Contribution to UN SDGs

3441412

General Manager Meetings of special- Special meetings of Percentage of indepen- Distribution of 2023 annual

Office meetings ized committees independent directors dent directors cash dividends

25 21 5 35.71% 0.253 billion yuan

33 34China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

Governance Effectiveness Three Bodies

The Company rigorously adheres to the Company Law the Corporate Governance Guidelines for Listed Companies and other By prioritizing the enhancement of governance through the Three Bodies i.e. the Board the Supervisory Committee and

relevant laws and regulations. We are committed to establishing a governance system that is standardized transparent and efficient. the general meeting. The Company has significantly refined the delineation of responsibilities and operational mechanisms

This commitment is achieved through a continuous enhancement of governance effectiveness a clear delineation of rights and for the three bodies. This strategic approach fully leverages the capabilities of the Board of Directors the various specialized

responsibilities among all governance entities and the strengthening of foundational governance structures. By prioritizing these committees independent directors’ meetings and the Supervisory Committee. As a result the Company has markedly improved

principles we ensure a robust framework that supports our operational integrity and promotes stakeholder trust. the standardization of its decision-making processes reinforcing its commitment to effective corporate governance.Governance Structure General Meeting of Shareholders

General Meeting Performance

In alignment with the objectives of establishing a modern state-owned enterprise system with Chinese characteristics the The Company strictly adheres to the Rules of Procedure for General

Company is committed to the ongoing modernization of its corporate governance framework and capabilities. This commitment Meetings in executing convening procedures proposal mechanisms General meetings Proposals approved

involves the systematic development of a governance structure characterized by clearly defined roles and responsibilities. Each and voting processes to safeguard shareholder rights with particular at general meetings

department is empowered to fulfill its specific tasks effectively fostering operational efficiency and informed decision-making attention to minority shareholder protections and guaranteed exercise of 4

thereby significantly enhancing overall governance effectiveness. fundamental rights including the right of information participation right 19

right to raise inquiries and voting right.Management Structure of Northern Rare Earth

General Meeting Board of Directors

Board Performance

The Board of Directors plays a pivotal role in formulating strategies

Party Committee Supervisory making informed decisions and mitigating risks. It effectively leverages

Committee Board meetings Proposals approved

the capabilities of its four specialized committees: the Strategy and ESG

by the Board

Committee the Nomination Committee the Audit Committee and the

Board of Special Committees 14

Directors under Board Remuneration and Review Committee. This structure enables the Board 63

to enhance the quality and efficiency of its decision-making processes

Strategy and ESG continuously. In 2024 the Board engaged in critical discussions regarding

Committee the Company’s ESG report.Nomination Committee Meetings of specialized Special meetings

Audit Committee

Management Level Remuneration and Review Comprising 14 members with independent directors representing 35.71% committees

of independent

Committee and female directors also accounting for 35.71% the Board benefits from directors

a diverse array of professional expertise in rare earths finance and law. 21

This diverse composition not only enriches the board’s structure but also 5

establishes a robust foundation for informed and scientific decision-making

within the Company.Supervisory Committee Supervisory Committee Performance

The Supervisory Committee diligently fulfills its oversight responsibilities by

regularly assessing the Company’s financial status discussing key issues Supervisory Proposals approved

and monitoring the performance of both directors and senior management. Committee meetings by the Supervisory

Comprising seven members the Supervisory Committee includes three Committee

employee representative supervisors. Non-employee supervisors are elected 12

during the general meeting of shareholders while employee representatives 38

are democratically selected by the employee representative congress and

other relevant bodies. This structure ensures comprehensive oversight and

demonstrates a commitment to accountability and transparency within the

Company.

3536

Technology Center

Marketing Dept

Equipment and

Engineering Dept

(Legal Affairs Dept)

Securities Dept

Group Management Dept

(Environmental Protection

Dept)

Safety Management Dept

Production and

Technology Dept

Planning and

Development Dept.Plan and Finance Dept

Audit Dept

Discipline Inspection

Commission

(HR Dept Trade Union)

Party Committee Work Dept

General OfficeChina Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

Compliant Operations Overview of Business Ethics Management

Ethical Business

The Company adheres rigorously to applicable laws and regulations while continuously enhancing its internal control and audit Improper Conduct Types ResponseConduct

systems. By ensuring legal compliance in its financial and operational practices it effectively mitigates legal and tax risks.The Company prioritizes robust legal and tax management fosters a strong ethical business culture and elevates compliance *Avoid entering into any agreements with competitors that may

*be deemed monopolistic;

awareness among all employees. Furthermore it has established a comprehensive risk management framework that serves as a *Implement comprehensive training programs focused on anti-

formidable defense against potential threats thereby ensuring the enterprise’s sustainable and high-quality development. *Monopoly agreement *monopoly compliance for all employees;

Anti-monopoly *Abuse of market dominance *Monitor the activities of trade associations ensuring that

In 2024 the Company enhanced its management framework by introducing 25 new management policies and revising 37 existing *Suspected monopolistic conduct *our involvement does not lead to participation in any form of

ones. This initiative effectively strengthened enriched and refined the overall management structure thereby establishing a *monopolistic behavior;

robust institutional foundation for standardized operations. *Promptly report any suspected monopolistic conduct;

*File concentration of undertakings declarations.In November 2024 the Company along with its affiliates—the Smelting Branch and the International Trading—successfully

completed the certification review for both international and domestic standards specifically ISO 37301:2021 and GB/T 35770- *False advertising *Build brand equity and protect intellectual property rights;

*Misleading commercial practices

2022. This achievement marks a pivotal moment as the Company became the first state-owned enterprise in the Inner Mongolia Fair competition *Take prompt legal action against unfair competition practices;*Commercial defamation

to obtain dual certification of its compliance management system setting a new industry benchmark for compliant operations. *Strict enforcement of bidding and tender laws.*Bid rigging

*Promote a culture of integrity and strictly enforce laws and

*Give bribes to transaction *regulations;

Anti-commercial *counterparts; *Maintain accurate accounting records for all business activities;

*Establish specialized management protocols and implement

bribery *Accept bribes from transaction *robust anti-bribery safeguards;

*counterparts. *Conduct regular system evaluations and keep immediate

*reporting of bribery incidents.*Implement a comprehensive framework that categorizes

*commercial secrets to facilitate tailored protection measures

*for each type of sensitive information;

*Obtain trade secrets through *Oversee individuals with access to classified information by

Business *improper means; *enforcing stringent access controls and requiring the signing

secrets *of confidentiality agreements to ensure accountability;

protection *Disclose use or permit others to *Establish uniform protocols for the handling storage and

*use trade secrets. *transmission of sensitive information across all platforms and

*locations to bolster information security;

Compliance Management System Certificates of the Company *Develop robust emergency response strategies to address

*potential leaks and infringements promptly.Business Ethics

Whistleblowing Channels

The Company unequivocally upholds the highest standards of business ethics prioritizing integrity and fair competition as

The Company has established efficient channels for reporting incidents via letters and visits utilizing various methods such as

foundational principles in its corporate development. To this end we have established the Northern Rare Earth Compliance

mail telephone email and in-person submissions. It rigorously follows established acceptance procedures to ensure that all

Management Guidelines encompassing 18 essential areas including anti-monopoly regulations anti-unfair competition anti- reporting activities are conducted in a standardized and orderly manner thereby safeguarding the rights and interests of all

bribery compliance and trade secret protection. These guidelines are meticulously compiled into a comprehensive Compliance parties involved.Handbook which serves as the operational standard across all critical business functions ensuring effective compliance

management. Furthermore the Company is committed to adhering to national laws and regulations regarding whistleblower protection.We have enhanced our internal confidentiality mechanisms and strengthened protective measures for whistleblowers. The

Company prioritizes the protection of anonymous reporting by explicitly prohibiting the unauthorized verification of details

The Company rigorously adheres to the Anti-Monopoly Law of the People’s Republic of China actively fostering fair market

such as handwriting network IP addresses and other identifying information of anonymous whistleblowers. In instances where

competition safeguarding small and medium enterprises and promoting a robust competitive ecosystem. In 2024 we tracing the identity of a whistleblower is deemed necessary particularly in cases involving potential disciplinary violations or

successfully completed the Northern Zhaobao concentration of undertakings filing. false accusations a stringent approval protocol must be adhered to. Furthermore any deliberate disclosure of whistleblower

information or retaliatory actions against whistleblowers will be met with rigorous consequences upon verification.

37 38China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

Bottom Line of Compliance Case Special Training on the Updated Company Law of the

Study

The Company effectively integrates compliance management into every facet of its operations ensuring that adherence to People’s Republic of China

legal and regulatory requirements is not merely an obligation but a foundational principle guiding our business practices. Key In January 2024 the Company implemented a specialized training program entitled the Impact of Revised Company

measures taken to strengthen this commitment include the formulation of essential regulatory documents such as the Northern Law on Listed Companies and Corresponding Strategies. This session provided participants with a comprehensive

Rare Earth Compliance Management Measures and the Working Rules of the Northern Rare Earth Compliance Management understanding of the amended provisions and their implications thereby significantly enhancing the Company’s

Committee. These documents serve as critical frameworks for compliance adherence. In addition we have significantly compliance management capabilities. As a result of this training the Company has established clear response

strengthened our legal and compliance frameworks which are designed to navigate the complex regulatory landscape with strategies to effectively address the legislative revisions thereby ensuring robust support for lawful operations and

confidence and clarity. Our refined tax management system focuses on mitigating tax risks ensuring that we remain compliant promoting high-quality development in alignment with the updated legal framework.while optimizing our financial strategies. Furthermore we have made substantial strides in optimizing our internal control

mechanisms and enhancing our internal audit processes. These efforts ensure all business activities adhere to legal and

regulatory requirements.Tax Payment Management

Case

Study Specialized Compliance Training within the Company

The Company strictly adheres to tax policies and regulations in all jurisdictions where

In August 2024 the Company conducted a specialized training it operates. To standardize tax management practices Northern Rare Earth Tax Tax Payment Performance

session focused on compliance management. Esteemed experts Management Measures have been established ensuring accurate tax calculation and

were invited to interpret the standards of the compliance accounting timely tax refund and payment and effective tax risk prevention. Total tax payments

management system and elucidate the practical aspects of

enterprise compliance management. Through case analyses In 2024 the Company conducted comprehensive training programs covering 0.837

discussions and interactive communication participants corporate income tax final settlement digital electronic invoice operations tax risk

signif icantly enhanced their compliance awareness and billion yuanmanagement year-end financial and tax reconciliation. These programs aimed

capabilities. This training not only established a robust foundation to enhance the professional capabilities of finance teams guarantee compliant

for the Company’s legal and compliance framework but also operations mitigate tax-related risks and optimize financial management processes.played a pivotal role in advancing the development of the Two

Rare Earth Bases reinforcing our commitment to becoming a

world-class leader in the rare earth industry.Case

Study Training on Operations for Corporate Income Tax Final Settlement

Legal Compliance

The Company has devised revised and implemented key policy documents including the Contract Management Measures of In March 2024 the Company successfully implemented

Northern Rare Earth and the Legal Dispute Management Measures of Northern Rare Earth. These initiatives clearly delineate the a specialized training program titled Practical Corporate

responsibilities and authorities associated with contract management standardize legal service processes and standards and Income Tax Sett lement and High-Frequency Tax

enhance mechanisms for the prevention and resolution of legal disputes. Consequently we have significantly elevated the overall Risk Prevention in the Era of Big Data. This session

management standards of our legal services. comprehensively addressed essential topics including

recent tax policy updates risks associated with tax

accounting discrepancies optimization of tax incentives

Legal Training Performance and applications for R&D expense super-deductions.As a result of this targeted training the finance team

significantly enhanced its tax compliance capabilities

Law awareness training Law awareness training Law awareness training thereby strengthening the Company’s ability to mitigate

sessions duration participation tax-related risks and capitalize on available tax benefits.

11 32Hours 1100

39 40China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

Case The Company Held a Special Training on Tax-related Compliance and

Study Application Cases of Various Tax Types

Risk Control and Management Training Performance

In June 2024 the Company conducted a specialized training

session titled Tax-Related Compliance and Application Cases of

Various Tax Types for Enterprises Under the Precise Supervision Risk control and compliance Risk control and compliance Risk control and compliance

of Golden Tax Phase IV. This comprehensive training addressed training sessions training duration training participation

critical compliance policies and risk management strategies 9 32Hoursassociated with key tax categories including value-added tax 750

corporate income tax individual income tax and stamp duty.Through in-depth case analyses and the interpretation of relevant

policies participants effectively grasped essential elements of Risk Control Measures

tax compliance and developed strategic approaches to enhance

both the accuracy of the Company’s financial data and the overall

compliance of tax-related processes. Mitigating Project Reducing Risk Identification

Investment Risks Construction Project & Control

Risks Optimization

Internal Audit The Company requires relevant The Company has implemented The Company conducted

management departments a comprehensive legal risk an annual risk assessment

The Company is committed to enhancing its internal audit reform by establishing a comprehensive and standardized auditing

to systematically review risk management training program for to review risk events from

system. This initiative includes the creation of an independent audit department which significantly strengthens the internal

prevention measures closely all subsidiaries and branches. This the past year refine the risk

audit and oversight functions. To facilitate this process several key policies have been developed including the Internal Audit

monitor implementation initiative emphasizes the strict control checklist and enhance

Management Measures of Northern Rare Earth and the Economic Responsibility Audit Management Measures for the Main

effectiveness and mitigate standardization of construction risk detection and response

Leading Personnel of Northern Rare Earth. By positioning itself as a leader in economic supervision the Company prioritizes its

potential investment risks. project management aims to mechanisms.critical objectives and high-risk areas while ensuring a thorough and extensive coverage of audits thereby elevating the rigor

enhance compliance with safety and

of its audit supervision. The Company has enhanced the professional competence and practical capabilities of its audit team

regulatory protocols and promotes

through participation in targeted audit training and other developmental initiatives. It systematically addresses issues identified

the proactive identification of

in audits by regularly monitoring the progress of corrective actions and ensuring accountability for these rectifications. This

contractual and operational risks.proactive approach effectively mitigates operational risks thereby providing a solid foundation for informed decision-making in

the corporate-wide operations and management.In 2024 the Company successfully executed 29 audit projects encompassing operational audits specialized audits and post-

project evaluations with a strategic focus on annual priorities significant subsidiaries and critical risk areas. Development Empowered by

Internal Controls Digital and Intelligent Forces

The Company enhances its internal control processes by developing comprehensive frameworks including the Internal Control The Company recognizes digital and intelligent technologies as the primary catalyst for its transformation and modernization.Management Measures of Northern Rare Earth and the Standards for Identifying Internal Control Deficiencies. By conducting Its progression toward digital and intelligent capabilities has evolved from a state of local optimization to one of comprehensive

integration. By establishing a secure network and data operational environment and enhancing the construction and application

thorough internal control evaluations aligned with applicable laws and regulations it effectively prepares detailed evaluation

of its informatization control systems at the corporate level the Company has improved the intelligent manufacturing capabilities

reports identifies areas for improvement and diligently implements corrective actions thereby standardizing and reinforcing a of its individual units. Furthermore the dissemination of exemplary cases and implementation experiences fosters an environment

robust internal control system. that supports the high-quality development of the entire industrial supply chain.Comprehensive Risk Management In 2024 the Company implemented the Outline Plan for the Digital Transformation of Northern Rare Earth through the introduction of new standards and detailed assessment rules. This includes the Data Coding Design Specification for the

The Company has developed the Measures for Identifying and Evaluating Compliance Risks (Trial) to systematically identify Application System of Northern Rare Earth the Data Exchange Specification for Northern Rare Earth and Its Subsidiaries/

assess and provide early warnings for compliance risks. This initiative integrates compliance reviews into core business Branches the Specification for the Manufacturing Execution System (MES) of Northern Rare Earth and the Detailed Rules

for Professional Management Assessment. By adhering to the 2024 Digital and Intelligent Work Plan of Northern Rare Earth

processes clearly delineating responsibilities among key stakeholders. By preventing and controlling compliance risks the along with the Revised Measures for the Management of Digital and Intelligent Projects and the Guiding Opinions on the

Company ensures the legality of its operations while establishing a solid foundation for achieving its long-term strategic Implementation of Intelligent Manufacturing the Company confidently advanced its annual agenda for digital and intelligent

objectives. development.

41 42China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

Digital and Intelligent Infrastructure Information Security Management Measures

The Company is committed to robust network and cybersecurity infrastructure development establishing essential systems

such as a private cloud platform video conferencing capabilities and centralized control centers. This strategic investment

has enhanced our operational support capabilities fostering a secure and stable environment for equipment operations. Such

We establish an inventory of critical information systems with designated responsible personnel; implement

measures are instrumental in laying a strong foundation for efficient operations and advanced intelligent management. Data Security data confidentiality and anti-tampering protocols eliminating weak passwords; and conduct regular data

Protection

backups and monitor security logs to ensure stable system operations.In alignment with these efforts the Company has enacted comprehensive policies including the Computer Confidentiality and

Security Management Measures of Northern Rare Earth and the Network Emergency Plan of Northern Rare Earth. We adopt a

rigorous network security responsibility system that emphasizes the protection of network boundaries and effective terminal

security management. Our approach incorporates advanced detection and audit systems intrusion prevention measures

Network Isolation and Zoned Protection: Critical information networks and business systems are physically

situational awareness platforms and terminal anti-virus solutions thereby creating a multi-layered and extensive network security isolated from the internet; Internal networks are segmented by functional zones with security devices and

architecture. Furthermore the Company conducts regular network security training and emergency response drills to enhance access policies deployed to ensure zone security.information security awareness among employees. This comprehensive approach ensures the secure and stable operation of our

Internal Network Architecture and IP Planning: The internal network employs a robust three-layer two-

information systems thereby providing a robust foundation for successful digital transformation initiatives.tier architecture ensuring optimal performance and scalability through the configuration of core devices in

hot standby redundancy. IP address allocation is aligned with business requirements. The external network

Cybersecurity Training Performance is structured in a flat architecture with IP addresses being centrally managed to maintain streamlined

Technical accessibility and control.Information security Information security training Information security training Safeguards Internet Gateway Protection: Firewalls and intrusion detection systems are deployed at network gateways to

training sessions duration participation for Network safeguard the infrastructure. Real-time monitoring of external network traffic ensures proactive response to

Security

3 52 141 potential threats. Furthermore branches and subsidiaries within the Inner Mongolia adhere to standardized Hours gateway controls while external branches are continuously monitored for security compliance.

Detection and Audit Systems: Security auditing threat detection and situational awareness systems are

developed comprehensively assess security status. Continuously monitor vulnerabilities and cyberattacks

performing regular scans and remediation.案Ca例se Study Emergency Drill for Network Equipment Switching

Website Protection: The official website is integrated with a cloud-based security platform. All access

In June 2024 the Company executed a comprehensive emergency drill focusing on the active/standby engine requests are filtered through cloud protection software to enhance defense capabilities.switchover of the core N18012 switch. This exercise encompassed a series of critical operational protocols including

accessing the management console verifying module status restarting the primary engine module monitoring the

standby engine switchover process and conducting thorough network connectivity tests. The practical nature of 案Case Stu例dy Unified Internet Gateway Project

this drill effectively validated both the stability and reliability of our core network infrastructure during critical engine

failover scenarios. Our technical team emerged from this exercise with significantly enhanced capabilities to respond In 2024 the Company launched the Unified Internet Gateway

to unexpected network outages. The insights gained and skills developed during this training are instrumental in Project aimed at centralizing internet access management

ensuring the high-performance operation of our network systems. across all branches and subsidiaries within Inner Mongolia

while simultaneously gathering cybersecurity threat logs from

those situated outside the region. This initiative involved

the deployment of new gigabit-level internet gateways and

advanced network security devices seamlessly integrating

them with the existing infrastructure to create a dual-gigabit

internet gateway environment. The project successfully

achieved three significant outcomes. First it established

centralized control over internet access for regional branches. Second it facilitated real-time log monitoring for

external subsidiaries. Third it optimized costs by reducing gateway infrastructure investments thereby enhancing

security for external data access.

43 44China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

Intelligent Operations Development

The Company has established a comprehensive smart operations management system that operates across three essential

layers: business execution group oversight and strategic decision-making. This digital transformation initiative has resulted in Engineering The system oversees process control and management for projects within the annual investment

a robust operational framework designed to support informed strategic decisions. To date the Company has made significant

Project plan managing over 3000 transactions. It establishes a standardized engineering project

strides in developing and integrating intelligent management systems on a group-wide scale. These systems encompass

Management management framework enabling comprehensive digital oversight throughout the entire project

collaborative office platforms human resources management financial operations production energy safety management lifecycle. This approach ensures precise execution and consistent compliance with established

System

asset and equipment tracking engineering project oversight procurement and sales systems and product traceability solutions. engineering standards thereby enhancing the efficiency and reliability of project implementation.Collectively these components establish a solid digital foundation for modernized management enabling data-driven decision-

making and significantly enhancing operational efficiency throughout the Company.Group-Level Intelligent Management System Purchase and Sale The primary functions of the system encompass sales operations procurement management for

Management raw materials and spare parts and inventory control. It oversees material structures contracting

manufacturing supplier relationships demand planning quotation processes procurement

The platform features an integrated suite of corporate portals email communications workgroup System execution inventory management and diverse reporting functions.Synergy chats diverse query functions and streamlined business processes. With nearly 300 configured

Management workflows and applications facilitating over 100000 transactions it has markedly optimized work

Platform processes substantially enhanced office efficiency and effectively transitioned to paperless

operations. This system effectively manages essential lifecycle data pertaining to raw materials products

Product and quality analysis at pivotal stages. It generates comprehensive product inventory records and

Traceability quality inspection reports systematically linking them to business contracts and invoices. This

System integration ensures complete product traceability and robust lifecycle management meeting

Human It has achieved comprehensive digital management of all core HR functions including employee regulatory reporting requirements to MIIT.Resource records attendance tracking payroll processing training certifications labor contracts and

Information position agreements. This integrated system enhances the standardization and accuracy of data

System analysis while improving management efficiency and effectiveness. Intelligent Production Development

The Company has prioritized equipment automation centralized control systems automated material handling and intelligent

sensor and instrumentation technologies as its core development directions. By emphasizing three pivotal performance

The system includes advanced cost accounting and capital management functionalities facilitating indicators—namely the increased adoption of CNC technology in critical processes and enhanced digitalization rates of

Financial

direct bank connectivity for corporate transactions. It allows for swift cost analysis and centralized production equipment—we have emerged as leaders in automation solutions throughout various production stages. Our

Management

financial oversight throughout the Company. Additionally it offers 22 standard report templates industry-first automation initiatives encompass several key processes including roasting transformation and extraction

System

ensuring effective data consolidation and accurate financial reporting across the entire Group. operations ammonium bicarbonate preparation continuous precipitation concentration procedures and calcination processes.Noteworthy tangible outcomes of our efforts include a significant reduction in energy consumption per unit a marked decrease

in wastewater volume and associated treatment costs improved raw material utilization rates increased product yields and a

substantial reduction in manual labor requirements. Furthermore these advancements have led to significant enhancements in

Production The system facilitates comprehensive report generation and dynamic data analysis by capturing work environments through the automation of hazardous operations.Management real-time production data. This capability enhances the collection application and scalability

Information of information across key business operations including production energy environmental

System protection and safety management. Two Indicators in Intelligent Production

CNC Adoption Rate in Critical Production Equipment

Assets and Processes Digitalization Rate

The system facilitates the standardized efficient and precise management of assets and

Equipment

equipment—encompassing fixed assets diverse devices and specialized personnel certifications.Management 79.19% 56%

Every unit effectively employs the system to conduct daily inspection tasks.System

45 46China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

90

Digital Process Control Rate 80 Automatic weighing

discharging and The transformation encompasses the integration of automated weighing and disharging devices

70

conveying upgrading the implementation of production rhythm-matching algorithms and the introduction of robotics

Digital Production Equipment Rate 60 in RE carbonate for bag handling hoisting and weighing. These advancements have been deployed at the Green

50 precipitation Smelting Upgrade Project as well as at Gansu Rare Earth and Hefa.

40

Linear (Digital Process Control Rate) workshop

30

Linear (Digital Production Equipment Rate) 20

10

0 Extraction Process This project employs advanced 3D visualization and IoT technologies to enhance inspection safety

Early 14FYP 2022 Year End 2023 Year End 2024 Year End Safety and efficiency in hazardous extraction environments. Its successful implementation at Gansu Rare

Enhancement Earth demonstrates significant advancements in operational effectiveness.Linear (Digital Process Control Rate) 70 74.37 77.4 79.19

Linear (Digital Production Equipment Rate) 30 45.97 49.18 56

This project incorporates four-way shuttle vehicles conveyors and elevators alongside

The Company has established intelligent demonstration lines across various production scenarios deploying smart robots in Smart Warehouse advanced warehouse management software. As a result metal products automatic storage

highly repetitive and labor-intensive positions. This initiative earned recognition as a 2024 Excellence-Level Smart Factory System capability has increased by 30% while labor intensity has significantly decreased at the

(First Batch) in China’s national evaluation by the Ministry of Industry and Information Technology. Building on this success Green Smelting Upgrade Project.

we piloted intelligent transformation at our Smelting Branch (Huamei) driving smart upgrades in rare earth smelting and

separation. This made us the nation's first enterprise to achieve Smart Manufacturing Capability Maturity Level 3 for both

rare earth carbonate and oxide production processes. Leveraging our group management strengths we've extended these

The system delivers an extensive framework for automated control systems and control nodes

demonstration-line experiences to multiple subsidiaries fostering resource sharing and technological collaboration across Manufacturing effectively integrating production planning scheduling and process monitoring alongside

the Company. Execution

System (MES) equipment energy and data management. This robust solution has been successfully adopted by

Gansu Rare Earth Magnetic Materials and Hefa.Implementation and Promotion of Intelligent Demonstration Lines at the

Smelting Branch

案Ca例se Study NdFeB Strip-Casting Alloy Automated Batching Line Project by Magnetic Materials

Tunnel Kiln The Company has automated the tunnel kiln production line encompassing all critical processes

The automated batching line system for NdFeB strip-

Automation Project including ignition rare earth carbonate filling and weighing calcination and material discharge

(Calcination casting alloy newly developed by Magnetic Materials through the implementation of advanced robotic and conveyor systems. This integrated solution

Process) has officially begun operations representing a significant has been effectively deployed at Gansu Rare Earth Hefa and Jingrui.milestone as the first of its kind in China. The system

features a steel-structured frame storage silos anti-

Automated Automated Guided Vehicles (AGVs) that are equipped with advanced visual recognition and bridging devices automated weighing units and

Transfer industrial-grade computer controls. By employing

from Tunnel unmanned traffic management technologies efficiently transport high-temperature rare earth

Kiln to oxides from tunnel kilns to mixing and packaging stations utilizing sophisticated intelligent high-precision screw feeders and intelligent variable-

Mixing/Packaging

warehouse dispatching systems. frequency speed regulation this system seamlessly Process integrates automated material feeding with precise ratio

control. The key outcomes of this advancement include

a 50% reduction in manual labor a 200% increase in

Automated The upgraded system incorporates several advanced features including chain-conveyor automated production efficiency enhanced product consistency

Concentrate feeding and an expert control system for rotary kilns which realize the automatic mixing weighing and a substantial decrease in the physical workload for

Feeding System and discharging of rare earth concentrate. operators.

47 48China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

Case

Study The Automated and Intelligent Carbonate Production Line in Hefa Rights and Interests of

Hefa has successfully implemented an automated carbonate

production line that features PLC-based automation control Shareholders

with specialized software an intelligent forklift dispatch

system and AGV smart forklift control allowing for real- The Company demonstrates a robust commitment to investor relations management effectively enhancing its value

time monitoring of the packaging line. As a result the creation capabilities. By fulfilling legal obligations for information disclosure the Company fosters transparent and effective

production line operates entirely autonomously eliminating communication with both current and potential investors. These strategic efforts safeguard the rights of all shareholders

the need for human intervention. The AGV carts equipped particularly minority shareholders while promoting consistent growth in the Company’s market value. This comprehensive

with multi-sensor arrays and obstacle-avoidance systems approach underscores the Company’s strategic vision and dedication to stakeholder engagement.contribute to 24/7 uninterrupted operation enhance

transport safety and efficiency and enable adaptive

production scheduling to meet fluctuating workflow Information Disclosure

demands.The Company adheres rigorously to information disclosure regulations ensuring that all communications are truthful accurate

complete timely and fair. By effectively conveying corporate developments to investors the Company enhances transparency

and bolsters investor confidence while safeguarding their legitimate rights including the right to be informed. In 2024 the

Company issued four periodic reports and 65 interim announcements submitting a total of 107 documents to SSE. The Shanghai

Case

Study Rapid Analyzer Automated Inspection Line Project of Huaxing Rare Earth Stock Exchange recognized the Company’s information disclosure efforts for the 2023-2024 period with an A (outstanding) rating

and awarded it the Golden Bull Award for Information Disclosure at the 26th China Securities Journal Listed Companies Awards

Huaxing Rare Earth has implemented an automated underscoring its strong reputation among regulators and within the capital market.rapid inspection line for rare earth metals resulting in a

remarkable 72.22% enhancement in detection efficiency.This innovation signifies a pivotal shift from traditional

sampling-based inspections to comprehensive 100% Information Disclosure Performance

product testing. The integrated inspection line includes

features such as automated sample coding real-time

analytical detection and a substantial reduction in Announcements disclosed Regular announcements released Interim announcements released

repetitive manual tasks. Key benefits include immediate

and accurate feedback on production and quality 69 4 65

alongside a data-driven foundation for optimizing

processes and enhanced decision-making support.Case

Study Gansu Rare Earth 70-meter Roller Hearth Kiln Automatic Loading & Return Line Investor Relations Management

The 70-meter roller hearth kiln utilized by Gansu Rare Earth The Company firmly embraces a commitment to protecting investor rights while pursuing high-quality development through

is equipped with a fully automated loading and unloading an investor-centric value philosophy. By prioritizing effective information disclosure and robust investor relations management

system alongside advanced Distributed Control System the Company actively engages in market value management significantly enhancing both the frequency and quality of

(DCS) technology. This innovation has revolutionized communication with a diverse range of investors. The Company continually innovates its investor relations initiatives to safeguard

the rare earth calcination process transforming it into legitimate investor rights particularly the right to be informed thereby improving corporate transparency and bolstering investor

a fully automated “digital and intelligent work section”. confidence.By eliminating the previously labor-intensive practices

To facilitate meaningful engagement the Company has established a range of communication mechanisms that leverage various

of manual crucible handling and material collection the

channels including its official website social media platforms and the SSE E-Interaction platform (https://sns.sseinfo.com/).operation of this automated calcination production line

It employs diverse formats such as general meetings earnings briefings and on-site investor research sessions to effectively

has remarkably enhanced single-kiln output significantly

convey its development progress and investment potential. These concerted efforts not only deepen investors’ understanding

reduced production costs and substantially improved

and recognition of the Company but also cultivate and sustain a positive image within the capital market. In acknowledgment of

overall production efficiency.its exemplary practices the Company was recently awarded the 2023 Best Cases Award for Annual Performance Briefings held

by China Association for Public Companies.

49 50China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

Investor Communication Performance Shareholder Returns

The Company rigorously upholds the legal rights of its

Performance briefings Investor relations activity records Responses at http://sns.sseinfo.com/ shareholders to receive asset returns and other entitlements

5 released 65 embodying an investor-centric approach that aligns with our 24 operational philosophy of rewarding investors with strong

performance. We have established and implemented a

comprehensive shareholder return plan which encompasses

measures such as cash dividends to ensure reasonable returns

for our investors. In 2024 the Company completed the profit

distribution for 2023 disbursing a total of 253 million yuan

in cash dividends. Since our initial public offering we have

allocated a cumulative total of 5.419 billion yuan to shareholders

through cash dividends and share repurchases which have

been subsequently canceled. This significant return positions

the Company as a leader among listed rare earth enterprises in

cash dividend distribution further illustrating our commitment

to sharing our developmental achievements with investors and

enhancing their overall sense of value.

2024 Half-Year Performance Briefing Investors Visit China Northern Rare Earth

Case

Study Investor Themed Reception Day of Northern Rare Earth

In August 2024 in conjunction with the 16th China

Baotou Rare Earth Industry Forum the Company hosted

an investor-themed reception day titled A Date with

the Grasslands: Explore the Rare Earth Resources in

Northern China. This event attracted a diverse group

of attendees including representatives from the Inner

Mongolia Listed Companies Association institutional and

individual investors securities firms and financial media.Throughout the day investor delegates participated in

key activities including the Rare Earth Industry Forum

where they attended expert presentations and toured significant sites such as the Baiyun Obo rare earth mineral

processing production line the Mining Memory Museum and the Baotou Rare Earth Museum. These experiences

provided attendees with comprehensive insights into the status and prospects of the rare earth industry. Furthermore

direct discussions were performed with the Company’s management team. Overall this event successfully enhanced

investors’ recognition of both the rare earth industry and the Company thereby bolstering investor confidence and

strengthening the Company’s positive image in the capital market.

51 52Green Transition toward

Harmonious Coexistence02

The Company is firmly committed to the national strategic goals of carbon peaking and carbon neutrality. We steadfastly embrace

the development philosophy that prioritizes environmental sustainability as a vital asset. By adhering to the principle of establish-

ing new systems prior to phasing out outdated ones we meticulously plan the steps necessary for energy conservation and carbon

reduction. Furthermore we are actively exploring and implementing diverse pathways for green and low-carbon transformation

positioning ourselves as a pioneer in sustainable development practices.Performance Highlights in 2024

Special environmental protection expenditure Percentage of the Company and its affiliates with Contribution to UN SDGs

0.648 environmental management certificationbillion yuan 91.66%

Training sessions Comprehensive energy consumption per unit of output

91 919kgce/tREO

53 54China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

Ecological Environment Environment Management Objectives

Management Progress of the 2024 Environmental Protection Management Targets

The Company has robustly integrated environmental protection into its corporate strategy and governance processes thus Environmental protection facilities at all production units maintained a 100% synchronous operation rate. Entities within Inner

establishing a solid foundation for high-quality sustainable development. We systematically enhance our ecological and Mongolia achieved “zero discharge” of industrial wastewater while those outside Inner Mongolia ensured all pollutants meet

environmental management systems delineate clear environmental protection objectives and fortify the accountability of our emission standards.environmental responsibilities. Additionally we actively improve our risk prevention capabilities and management practices

concerning ecological conservation. In 2024 we allocated 648 million yuan in dedicated funds to further advance our Under the Greening Beautification Illumination and Sanitation initiative six projects have been successfully completed.environmental protection initiatives. Furthermore fourteen facilities have fulfilled their obligations by submitting industrial noise emission declarations as mandated

by pollution discharge permits.Environment Management System Three facilities have received recognition as regional-level green factories by the autonomous region.Management Structure

The Company maintains strict compliance with environmental protection laws and regulations including the Environmental Environmental Compliance Management

Protection Law of the People’s Republic of China alongside national and local environmental standards. A well-defined three-

tiered environmental management structure has been established providing a robust framework for oversight. At the apex of this The Company systematically conducts thorough reviews of environmental compliance risk

structure is the Environmental Protection Committee which serves as the highest decision-making body responsible for guiding inventories and implements robust environmental supervision and inspection programs.our overall environmental strategy. The Environmental Management Department functions as a dedicated unit that supervises Additionally we carry out initiatives for identifying environmental risk hazards. To further

inspects and directs the daily environmental activities of subsidiaries and branches. Each subsidiary/branch is accountable for its enhance our environmental management practices we ensure that all production units update

own environmental management ensuring comprehensive implementation of all prescribed environmental protection measures. their emergency response plans for unforeseen environmental incidents. Simultaneously

we promote environmental protection awareness through comprehensive educational

campaigns. These coordinated efforts significantly bolster employees’ understanding of

Responsibility Fulfillment their environmental responsibilities thus ensuring effective implementation and continuous

improvement in our environmental management practices.The Company has significantly advanced its environmental management system

framework by enhancing coordination mechanisms and establishing a clear and

collaborative structure for environmental protection with defined responsibilities. This Environmental Supervision and Inspection

strategic approach ensures the effective and efficient implementation of environmental The Company has undertaken a comprehensive revision of the Solid Waste Pollution Prevention and Control Management

initiatives thereby promoting sustainable and stable progress in our environmental Measures of Northern Rare Earth aimed at enhancing environmental supervision management and performance evaluation and

management practices. As of the end of 2024 both the Company and its 22 affiliates promoting standardized environmental protection practices across all operational levels. All affiliates are required to rigorously

have successfully achieved ISO 14001 Environmental Management System certification. adhere to the principle of “dual responsibility of Party and business leadership and dual accountability for each position” in

Certificate of ISO 14001 Environment their environmental protection efforts. Compliance with environmental laws and regulations is non-negotiable; therefore each

Management System of the Company subsidiary/branch must sign the Environmental Governance Target Responsibility Agreement thereby reinforcing their primary

responsibility for environmental stewardship. Furthermore in 2024 the Company executed 12 specialized inspection campaigns

Environment Management System Certifications among the Company and its Affiliates including New Year and Spring Festival inspections environmental protection audits in its subordinate companies and self-

inspections in preparation for regulatory reviews. All identified issues have been thoroughly addressed and rectified.Environment Management System Certifications among the Company and its Affiliates

Quantity of the Company and its affiliates Percentage of the Company and its affiliates

that have successfully acquired environmental that have successfully acquired environmental

management certification management certification

2291.66%

55 56China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

Environmental Risk Assessment and Prevention Environmental Protection Awareness

The Company has released the Environmental Factor Identification Assessment and Control Measures of Northern Rare Earth The Company consistently holds training programs focused on ecological and environmental protection laws regulations and

establishing a robust tiered management system for environmental factors. This system meticulously evaluates the probability technical skills. In 2024 it successfully conducted five corporate-level environmental training sessions that addressed key areas

of sudden environmental incidents their potential impact severity detectability preventability regulatory compliance existing including pollution discharge permit management solid waste management environmental management system expertise

monitoring measures and historical incident records. By conducting comprehensive analyses the Company effectively and the management of associated radioactive solid waste. These initiatives effectively bridged existing gaps in environmental

assesses both the likelihood and consequences of environmental risks enabling precise identification classification and the management across affiliates and significantly enhanced the professional competencies of the environmental personnel.implementation of preventive measures to mitigate potential environmental emergencies.To further enhance environmental hazard screening and remediation the Company prioritizes soil and groundwater pollution

Environmental Protection Training Performance

prevention and control. Through effective collaboration with relevant authorities it ensures timely detection and prompt

rectification of environmental risks substantially reducing the likelihood of sudden incidents. In alignment with the Guidelines

for Soil Pollution Risk Screening of Key Regulated Units (Trial) affiliates including Hefa Huaxing Rare Earth and Jingrui have

Training sessions Training duration Training participation

successfully conducted comprehensive soil pollution risk assessments. This initiative has notably fortified the standards of

environmental management across the Company. 91 182Hours 6075

Environmental Emergency Management

The Company has significantly enhanced its emergency response system by establishing an Emergency Management Leadership

Group which operates under the direct oversight of the General Manager. This group is tasked with centralized decision-making

and command coordination. Additionally subsidiaries and branches have developed comprehensive emergency and specialized Case Study Specialized Training on Environmental Protection Management

contingency plans customized to their unique operational contexts. Through ongoing emergency training and drills the Company

systematically fortifies its emergency management capabilities and improves its incident response effectiveness. In May 2024 the Company conducted a thematic training

session focused on environmental management using a

hybrid format that combined both online and in-person

Case

Study Acid-Alkali Leak Emergency Drill engagement. This session was led by responsible personnel

from the Environmental Management Department who

In June 2024 the Company successfully conducted an emergency response drill focused on acid-alkali leakage provided comprehensive guidance on standardized reporting

incidents. This exercise significantly enhanced employees’ comprehension of safety protocols and their proficiency procedures for crucial modules within the production control

in utilizing rescue equipment properly. Moreover participants developed a clear understanding of how to respond system. Key areas covered included supervision and task

effectively to unexpected emergencies meeting the objective of achieving a “proper safe orderly and rapid” tracking wastewater data management industrial solid waste

response to acid-alkali leaks. The drill also improved coordination among employees in workshops handling acid- reporting and routine inspection protocols. The training

alkali materials during critical incidents thereby strengthening the command and response capabilities across effectively integrated specific legal requirements and critical

all departments. Overall the exercise yielded the anticipated training outcomes demonstrating the Company’s compliance considerations with relevant corporate case

studies which facilitated a deeper understanding among trainees of essential management strategies for environmental

commitment to robust emergency preparedness.protection. Notably the session enhanced awareness of environmental law compliance among operational staff at

all levels reinforced the principle of primary responsibility for environmental stewardship and significantly improved

technical competencies and management skills within environmental operations.In 2024 the Company made significant strides in the development of its One Enterprise One Policy environmental management

inventories successfully implementing customized inventory frameworks for eight smelting and separation enterprises. A

proactive approach led to the organization of specialized training sessions across seven affiliates including Tianjiao Qingmei

and Ruixin. Key components of these sessions included a comprehensive interpretation of core inventory requirements cross-

enterprise exchanges to share best practices and strengthened oversight mechanisms to ensure effective execution. As a result

this initiative has enabled precise environmental management and markedly improved operational efficiency across all facilities.

57 58China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

Furthermore the Company has instituted a long-term carbon management strategy that encompasses multiple dimensions

Climate Change including energy structure optimization production process advancements and resource recycling initiatives. Complementing

these efforts the Company has implemented an advanced carbon emission monitoring system alongside a carbon asset

management platform. These initiatives not only accelerate progress toward the Dual Carbon goals but also position the

The Company is resolutely committed to addressing China’s Dual Carbon goals—achieving carbon peaking and carbon

Company as a leader in green and low-carbon transformation driving decarbonization across the entire industrial chain.neutrality—by capitalizing on its unique strengths and adhering to global agreements including the United Nations Framework

Convention on Climate Change (UNFCCC) and the Paris Agreement. In alignment with the International Sustainability Standards Long-term Strategic Planning for Carbon Management within the Company

Board (ISSB)’s climate-related disclosure standards (IFRS S2) the Company has systematically identified climate-related risks

and opportunities conducted comprehensive research on carbon peaking pathways and implemented effective measures to

continually enhance its climate governance performance. 1 Establish a comprehensive group-level smart carbon management system.Climate-related Governance

Define key quantitative indicators to guide carbon reduction initiatives and develop

The Company has developed a robust climate change governance framework to effectively manage the impacts of climate- 2 actionable plans tailored for specific sectors and business lines.related issues on its operations. This framework enables comprehensive risk governance for climate-related challenges facilitates

strategic development aligned with low-carbon transitions and ensures compliance with international disclosure standards. By

implementing this structured approach the Company confidently addresses both climate risks and opportunities. 3 Implement an internal mechanism that directly links carbon management efforts to economic benefits.The Board serves as the highest decision-making authority regarding climate-related issues.Its responsibilities include approving the Company’s climate change management strategy Conduct in-depth research on carbon reduction strategies in critical process

establishing medium-term to long-term plans and annual action plans setting climate risk 4 technologies.Board of control targets and discussing milestones for the carbon neutrality strategy during regular

meetings.Directors

The group functions as the authoritative body for managing climate change Strengthen corporate governance structures to ensure effective execution of the

risks within the Company. It convenes regularly to facilitate cross-functional 5 carbon neutrality strategy.Carbon Neutrality collaboration among internal departments on carbon emissions and carbon

Strategy Leadership neutrality. This approach guarantees comprehensive oversight and informed

Group decision-making across all levels of the Company.

6 Build a collaborative carbon reduction system within the industrial chain engaging downstream application enterprises for collective impact.

They effectively enforce the Company’s climate change resolutions

Functions/Branches/ ensuring strict management of carbon emission targets and actively

Subsidiaries pursuing energy conservation and emission reduction objectives.

7 Promote the growth of the rare earth resource recycling industry.

Climate-related Strategies Management of Climate-related Impacts Risks

To advance the Dual Carbon goals the Company has developed the comprehensive Technology Roadmap for 14th Five-Year Plan and Opportunities

Carbon Peaking and Carbon Neutrality across the Entire Industry Chain of Northern Rare Earth. This roadmap entails a thorough

The Company acknowledges the significant impact of climate change on its operations and proactively assesses associated risks.analysis of the Company’s current carbon emissions applying standardized calculation methods to assess emissions throughout

By implementing efficient pollution control and resource recycling systems it effectively mitigates climate-related challenges.the industry chain. By forecasting peak emissions it establishes detailed technological pathways toward carbon reduction and

This proactive approach not only addresses risks but also seizes emerging opportunities ensuring sustainable business growth

neutrality effectively providing a strategic action plan to meet these ambitious targets.and a competitive edge.The Company employs a rigorous analysis to evaluate the impacts of various capacity expansion strategies and the integration of

Capitalizing on green opportunities emerging from new energy development the Company transforms its resource advantages

green electricity on overall carbon emissions. This approach generates grounded projections for peak emissions and associated

into product excellence. We are committed to providing optimal materials for carbon reduction in new energy vehicles wind

pathways thereby informing more effective emission reduction strategies.power and other eco-friendly applications actively contributing to global decarbonization efforts

59 60China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

List of Climate-related Risks List of Climate-related Opportunities

Risk type Impact Opportunity time-frame Potential impact Response Opportunity impact Responsetype

Physical risk

The rapid expansion of China’s wind and solar power capacity has

significantly enhanced the price competitiveness of green electricity leading

Extreme heat and cold waves pose significant to a gradual decrease in corporate procurement costs and offering more

r i sks to employee hea l th resu l t ing in We establish comprehensive work stoppage protocols sustainable energy alternatives. Concurrently regulatory frameworks—such We will develop complementary photovoltaic

Short

Acute risk increased operational costs. Specifically these ensure the availability of emergency supplies and

as mandatory green certificate consumption quotas for energy-intensive power stations to enhance the coverage of

term temperature fluctuations elevate expenses develop early warning systems in collaboration with enterprises—are accelerating the transition toward low-carbon operations. green electricity.related to temperature control in smelting meteorological agencies. Energy

processes. sourcing Furthermore the emergence of the hydrogen energy sector presents We will increase development efforts in

transformative opportunities. Specifically green hydrogen smelting technology clean and low-carbon technologies to

has the potential to replace fossil fuels drastically reducing emissions accelerate the transition to a sustainable

Intensified drought conditions in northern China in metal production. Inner Mongolia with its abundant wind and solar future.have resulted in significant water scarcity in

essential mining regions particularly Inner To enhance water resource management we implement

resources provides an optimal environment for cost-effective green hydrogen

production enabling corporations to develop robust green hydrogen value

Mongolia. This shortage adversely affects advanced water-saving technologies and develop

Chronic Middle to comprehensive water recycling systems. chains and optimize their energy mix for effective decarbonization.critical processes such as rare earth mining ore

risk long term dressing and smelting operations. We establish real-time monitoring of mining area stability

Thawing permafrost undermines geological and employ reinforcement techniques in permafrost We enhance energy efficiency through

stability in these areas dramatically heightening regions. Utilization strategic upgrades to environmental

the risk of landslides. The low-carbon transition strategy effectively enhances resource and energy protection equipment along with the

efficiency efficiency leading to three significant advantages — reducing operational costs gradual retirement of high-energy-

through efficiency improvements strengthening long-term competitive positioning in consuming machinery.Transition risk of the market and aligning with growth opportunities in the burgeoning global green

resources economy ultimately creating sustainable value. We optimize water management by using advanced recycling systems to enable

We strategically reshape our energy portfolio by closed-loop water utilization.The transition to a low-carbon economy is substantially enhancing the utilization of natural gas

likely to result in tighter carbon emission and green hydrogen. We also implement pilot projects

Medium

Policy risk quotas the implementation of carbon taxes

for carbon capture utilization and storage (CCUS) The sustained growth of green industries particularly in new energy vehicles

technologies. Furthermore all subsidiaries and branches We rigorously investigate the carbon

term and the establishment of stricter environmental (NEVs) wind power and photovoltaics is significantly driving the demand for are mandated to perform thorough carbon emission Products reduction potential of rare earth products standards. Collectively these may increase low-carbon products and advanced materials such as rare earth permanent inventories and verification processes thereby establishing across critical application fields while production costs significantly. and magnets. This trend enhances corporate competitiveness.a solid foundation for advanced energy conservation and simultaneously intensifying our research

decarbonization initiatives. Hydrogen energy has emerged as a promising sector functioning both as and development initiatives focused on services

a clean energy carrier for decarbonization and as a foundational industrial low-carbon technologies and sustainable

We enhance the applications of rare earth elements feedstock with distinct competitive advantages. product innovation.Demand fluctuations in the new energy sector are

Short likely to diminish the need for rare earth permanent

in emerging sectors such as energy storage and

magnets while advances in circular economy hydrogen technologies and establish closed-loop term

technologies may lessen dependency on primary supply chains and refine recycling innovations. We conduct comprehensive carbon

Market risk Medium rare earth materials. We accelerate a transformative shift toward a

accounting throughout the rare earth

industrial chain to establish a robust

term Increasing consumer preference for low-carbon green l ow-carbon indus t ry by imp lement ing The swift evolution of green trade is propelling companies toward low-carbon reductions in source-level emissions increasing the carbon footprint database for rare earth products and services is driving stringent Market transitions where early adopters will secure competitive advantages and products.Long term requirements for emission reductions during adoption of renewable electricity promoting the effectively navigate international green trade challenges.production phases. use of permanent magnet motors and significantly We accelerate strategic init iatives reducing the carbon footprints of products. in the new energy sector driving a

transformative energy mix.Public and investor scrutiny regarding high

carbon emissions and water-intensive production We effectively integrate green and low-carbon principles

practices poses a significant threat to brand value into our strategic development and operational

and customer loyalty. management. By implementing energy-saving and

Reputation Medium emission-reduction initiatives we directly address Climate-related Indicators and Objectives

risk term Climate risk mitigation strategies are now under stakeholder concerns.rigorous examination by regulators investors ESG

rating agencies and the public. Failure to adopt We prioritize collaboration with external partners to

meaningful measures risk may cause skepticism strategically explore pathways for achieving the Dual

Low-Carbon Objectives

and damage the reputation of the Company. Carbon goals in the rare earth industry.The Company is firmly aligned with the national development

To advance our sustainability initiatives we will establish strategy actively driving the transition toward green and low-carbon 2025 Low-carbon Targets

We are firmly aligned with China’s Dual supporting photovoltaic power stations secure long-term practices. It has established a comprehensive system for carbon

Short Carbon objectives which necessitates ongoing agreements for green electricity procurement and actively emission statistical accounting alongside a robust product carbon

enhancements in energy-saving and emission- pursue renewable energy subsidies.Carbon emission intensity of 7 key entities ≤2.956 tCO2/

Technology term reduction technologies the broader adoption labeling certification system and an effective product carbon footprint tREO

risk of renewable energy sources and increased

We will enhance energy efficiency through process management framework. Additionally the Company enhances

Medium upgrades in high-consumption sectors. Carbon emission intensity of the smelting and separation investments in research development and the carbon market trading system and the voluntary greenhouse

term infrastructure. These commitments may elevate We will invest in the development of young STEM talent segment ≤2.63t CO2/tREO carbon emission intensity of

operational costs. gas emission reduction trading mechanism all while confidently to strengthen our innovation capabilities and expedite metal facilities ≤6.98 tCO2/t

breakthroughs in essential technologies. advancing towards achieving the ambitious goals of carbon peaking

and carbon neutrality.

61 62China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

Greenhouse Gas Emissions Case

Study Our Carbon Emission Accounting Platform Certified by Chinese Society of Rare Earths

1 In 2024 the Chinese Society of Rare Earths convened a scientific Greenhouse Gas Emissions

and technological achievement appraisal meeting in Beijing.At this meeting a significant milestone was reached with

Direct carbon emissions (Scope 1) Indirect carbon emissions (Scope 2) the appraisal of the Carbon Emission Accounting Platform of

343967.58 696684.16 Northern Rare Earth which aligns with the Technology Roadmap tCO2e tCO2e for 14th Five-Year Plan Carbon Peaking and Carbon Neutrality

across the Entire Industry Chain of Northern Rare Earth.Experts in attendance unanimously recognized this platform

as the world’s first dedicated carbon emission accounting

Others indirect carbon emissions (Scope 3) Total carbon dioxide emissions system for the rare earth industry. With capabilities for online

227513.93tCO2e 1268165.67 analysis intelligent evaluation and precise calculation this tCO2e platform has achieved international advanced standards and has

successfully passed the appraisal for scientific and technological

achievements.

1 The Company employs the operational control approach for greenhouse gas emissions accounting ensuring comprehensive quantification of emissions from all facilities

under its management thereby achieving 100% accuracy in its reporting.Greenhouse Emissions Reduction Practices Resource Efficiency

As a leader in the industry the Company has taken significant strides in implementing rare earth carbon emission verification The Company effectively integrates the principles of circular economy and resource conservation throughout its production

and securing product carbon footprint certification. Notably we have developed eco-friendly processes and embraced renewable and operational processes. By harnessing digital construction and advancing energy-saving it significantly enhances resource

energy solutions. These initiatives not only bolster the green competitiveness of our products but also reflect our commitment to utilization efficiency. The Company is dedicated to the responsible management of resources thereby promoting sustainable

sustainability. development and solidifying its reputation as an environmentally conscious enterprise committed to conservation.A key achievement is the successful connection of our 5.93 MW distributed photovoltaic power plant at the Smelting Branch to

the grid. This project generates an impressive 7 million kWh annually providing substantial environmental benefits. Specifically

it saves 860 tons of standard coal each year and reduces CO2 emissions by 4000 tons. In addition we have constructed a 5000 m2 Energy Management

solar carport providing 96 parking spaces and six complimentary electric vehicle charging stations for our employees.Energy-related Governance

The Company fully adheres to the Energy Conservation Law of the People’s

Republic of China and actively revises internal policies including the Energy

Management Measures of Northern Rare Earth to enhance energy management

accountability. A dedicated energy management leadership group has been

established to rigorously implement national energy conservation policies and

regulations. The Company formulates and executes comprehensive energy

conservation management rules objectives plans and technical transformation

initiatives thereby strengthening the energy management framework to ensure

optimal operational efficiency. As a testament to its commitment by the end of

2024 the Company and 11 key energy-consuming affiliates successfully obtained ISO 50001 Energy Management

ISO 50001 energy management system certification. System Certificate

5.93 MW Distributed Photovoltaic Power Plant PV Car Port

63 64China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

Energy-related Strategies Energy-related Indicators

The Company has successfully launched and implemented the Guidelines for Green and Low-Carbon Management of Northern and Objectives

Rare Earth which effectively standardizes and normalizes its energy conservation and carbon reduction initiatives. By establishing

a robust energy management platform pursuing energy-saving technological transformations and integrating renewable energy The Company strategically develops annual energy 2025 Energy Saving Targets

sources the Company systematically enhances the management and performance of energy conservation and carbon reduction management plans that incorporate well-defined

across its branches and subsidiaries. These comprehensive measures ensure the quality achievement of its green and low-carbon measurement targets. It enhances energy consumption

11 key energy-consuming entities must maintain collective energy use

development objectives establish a reputable and sustainable rare earth brand and significantly bolster its competitiveness in monitoring and performance evaluation processes

≤285200 tons of standard coal equivalent (tce)

the market. thereby ensuring the successful attainment of its yearly Energy consumption intensity of 7 key entities lower by 6% YoY

objectives.Energy Saving Technologies

Renovations for saving energy

Energy Consumption Performance

The waste heat recovery project for air compressors significantly reduces the Company’s reliance on external heating

sources while indirectly lowering greenhouse gas emissions (e.g. CO2). This initiative has led to a substantial improvement Indicator Unit 2022 value 2023 value 2024 value

in comprehensive energy utilization efficiency.Comprehensive

The adopt of high-efficiency mixing approach for rare earth hydrometallurgy smelting process has achieved about 40% energy consumption kgce/tREO 1175 997 919

reduction in electricity consumption and can generate annual cost savings of 1.3 million yuan. per unit of output

The newly introduced rare earth concentrate drying system has reduced natural gas consumption per rotary kiln by over Indirect energy consumption

20% and increased ore processing capacity per kiln by more than 25%.

Purchased

Green power usage electricity

MWh 643017 739771 819687

Purchased steam Tons 79318 119186 41225

The Company actively leverages Inner Mongolia’s competitive electricity supply advantages to secure green power quotas.Direct energy consumption

Natural gas m3 95983976 73386298 69759526

Energy-related Risk Management

Petroleum Tons 50 58 44

The Company identifies several energy-related risks that could impact its

operations including water resource shortages in key production areas delays

in the development of new energy projects and the pressing need to enhance Diesel Tons 944 1065 931

equipment energy efficiency. To address these challenges the Company has

implemented proactive strategies to secure water rights ensuring a reliable Coke oven gas m3 27951160 22052458 20456292

water supply essential for uninterrupted production. Furthermore it has advanced

the construction of distributed photovoltaic projects and developing hydrogen

energy technologies thereby optimizing its energy structure and progressively Power Coal Tons 91856 102459 90899

increasing the share of renewable energy sources. The Company has also initiated

the Guidelines for Green and Low-Carbon Management of Northern Rare Earth New energy/ renewable energy sources

which serves as a comprehensive framework for energy management. This

initiative includes the establishment of dedicated energy management roles the New energy/

formulation of energy-saving target indicators and the enhancement of equipment renewable energy MWh / / 93750

data tracking systems. Additionally specialized training programs on energy consumption

management are conducted to elevate the skillset of employees. By systematically

promoting the standardization and practical implementation of energy conservation Percentage of new

and carbon reduction efforts the Company has enhanced the management and energy/ renewable % / / 4

performance levels across its branches and subsidiaries thereby ensuring efficient energy consumption

and compliant energy management.

65 66China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

Case

Study Energy Management Platform

Case Project for Solid-State Hydrogen Storage Device with Hydrogen

Study

Recycling Supply

In 2024 the Company successfully completed the second phase of its energy management platform deployment. This By integrating rare earth hydrogen storage materials with solid-state systems this project pioneers a novel

phase builds upon the initial functionalities achieving seamless integration of energy consumption data collection approach to thermal management within hydrogen storage. The outcomes include versatile applications that fulfill

statistics and analysis. The platform now facilitates real-time monitoring and analysis of energy usage significantly hydrogen storage requirements across various scenarios showcasing its adaptability. Furthermore the project

enhancing operational efficiency. Eight key energy-consuming units within the Company have established their IT- introduces proprietary solid-state thermal regulation technology which enhances the efficiency of the system.based energy platforms enabling comprehensive capabilities for energy monitoring early warning and analysis. Most notably it significantly improves heat exchange rates during hydrogen absorption and desorption processes

These advancements collectively contribute to a marked improvement in energy use efficiency across the enterprise. achieving performance metrics that meet and exceed both domestic and international standards. This technological

achievement has been robustly recognized and selected for inclusion in the 2023 China Excellent Technologies

Project Database (Category C) by the China Association of Productivity Promotion Centers as publicly announced.Water Resource Management

Water Resource Management Framework

The Company adheres rigorously to all relevant laws and regulations including the Water Law of the People’s Republic of China

the Regulations on the Administration of Groundwater and the Regulations concerning Water Intake Permits and the Collection of

Water Resources Fees. Additionally it follows the Policy on the Administration of Water Resources Demonstration of Construction

Projects and the Guidelines for Water Intake Permits. In alignment with its operational realities the Company has developed the Water

Resources Management Policy of Northern Rare Earth. This policy prioritizes water conservation imposes stringent constraints on

water resource usage enhances water resource management practices and advocates for the efficient and intensive use of water

resources.All subsidiaries and branches diligently implement these water resource management protocols ensuring compliance with these

stringent standards and contributing to sustainable water resource stewardship.Water Saving Targets

2025 Water Saving Targets

Operations in Inner Mongolia consistently exceed the advanced benchmarks set by the Industrial Water Quota and

Standards of Inner Mongolia Autonomous Region (DB15/T385-2022).Smelting Branch (Huamei) uses 2.06 million tons of purified water from Yellow River.

67 68China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

Water Saving Measures

Development of Material Processes

The Company has effectively enhanced its source water intake control and optimized its water usage strategies demonstrating

a robust commitment to conservation. By integrating state-of-the-art water-saving processes and technologies the Company The upgraded process from the Green Smelting Upgrade Project significantly reduces chemical material consumption in actual

has successfully replaced a significant amount of freshwater usage with unconventional resources. It actively promotes rainwater production achieving green efficient and clean manufacturing.recycling improves wastewater reuse and continuously increases the efficiency of water resource utilization.Tianjiao Qingmei’s “Packaging Optimization Project” has successfully reduced material costs by 104000 yuan through

improved packaging techniques and minimized auxiliary material usage.Water Management Performance Gansu Rare Earth effectively replaces traditional ammonium chloride packaging with recycled magnesium oxide woven bags

thereby enhancing resource utilization efficiency.Indicator Unit 2022 value 2023 value 2024 value

Fresh water consumption Circular Economy

per unit in rare earth m3/tREO 15.71 13.99 13.47

smelting and separation

The Company rigorously implements the principles of the circular economy by seamlessly

Recycled water

ML 6106 6039 8030 integrating them into all facets of its production and operational processes. In alignment with

consumption its actual production needs the Company significantly enhances its investment in technological

transformation. It actively promotes the upgrade of green process technologies emphasizing

energy conservation emission reduction resource recycling and clean production methods.This comprehensive approach ensures the maximized utilization of resources reflecting the

Case

Study Hybrid (Dry/Wet) Cooling Tower Company’s unwavering commitment to advancing a circular economy that harmonizes economic

and social benefits.In compliance with the National Catalog of Encouraged

Industrial Water-Saving Technologies Equipment and In 2024 the Company proudly achieved the SGS Recycled Content Certification. Furthermore

Processes (2023) the Company has implemented innovative it effectively organized its branches and subsidiaries including Ruixin Huaxing Rare Earth and

upgrades to its hybrid cooling towers. Specifically it has Gansu Rare Earth to process 15 tons of recycled praseodymium-neodymium metal monthly.installed top-mounted horizontal dampers and vertical damper This initiative underscores the Company’s proactive efforts in enhancing resource efficiency and SGS Recycled Content Certification

baffles to resolve air distribution challenges between dry and advancing the principles of the circular economy.wet sections of water-saving fog-dissipating cooling towers;

it applied detachable snap-on lightweight dust screens

effectively preventing clogging of finned tubes by dust and 2024 Resource Circularity Performance

airborne debris. This design ensures easy cleaning and

replacement of air filtration systems and enables a reduction

in water consumption of over 50% compared to conventional Ammonia recovered from Cooling water recovered from industrial Ammonium sulfate recovered

systems. industrial wastewater wastewater from industrial wastewater

133483.24Tons 4258710.188Tons 85632.11Tons

Material Management Ammonium chloride recovered Sulfuric acid recovered from industrial Hydrofluoric acid recovered from

The Company adheres to the principles of green low-carbon and high-quality development by implementing strict controls from industrial wastewater wastewater industrial wastewater

across all packaging processes including classification specifications labeling surface printing and material selection.

33

Committed to advancing intelligent manufacturing the Company has independently developed innovative packaging 126335.209Tons 41275.401m 41024.81m

technologies. Through digital solutions such as vacuum packaging and automated coding-inspection lines it has reduced

material consumption and enhanced production sustainability and efficiency.

69 70China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

As a frontrunner in green and low-carbon development within the rare earth industry the Company is steadfast in its

commitment to process optimization and facility enhancements. By implementing environmentally sustainable initiatives— Waste Gas Management

including boiler flue gas desulfurization and denitrification VOCs treatment and oxalic acid recovery—the Company has achieved The Company demonstrates a steadfast commitment to environmental compliance by rigorously adhering to the Law of the

substantial upgrades to its wastewater and exhaust gas treatment systems. These advancements facilitate the categorized People’s Republic of China on the Prevention and Control of Air Pollution. Emissions of waste gases from its branches and

recycling disposal and resource utilization of wastewater and emissions substantially enhancing resource efficiency and subsidiaries within Baotou City consistently fall below the stringent limits outlined in the Emission Standards of Pollutants

significantly advancing the Company’s transition toward a green and low-carbon operational model. from Rare Earths Industry. To address primary air pollutants including nitrogen oxides sulfur dioxide and particulate matter

the Company employs effective source control measures and real-time monitoring systems aimed at minimizing emissions.案Ca例se Project Oxalic Acid Recovery from Precipitation Pregnant Liquor Solution Furthermore by advancing the adoption of clean energy solutions the Company fundamentally reduces air pollutant emissions Study

at their source. Through process optimization and the installation of advanced equipment such as spray devices and dust

Jingrui has developed an innovative process to recover oxalic acid from wastewater and reuse it in production removal towers the Company significantly mitigates dust generation during production. These concerted efforts not only ensure

achieving significant results including reduced oxalic acid consumption decreased wastewater treatment volume and compliance with environmental protection standards but also reflect a proactive approach to sustainable industrial practices.cost savings of about 1.6 million yuan within six months of implementation. The oxalic acid precipitation pregnant

liquor solution undergoes extraction separation and recovery processes which effectively remove impurities from

byproducts obtain oxalic acid and recycled acids recover high-purity oxalic acid and reusable acids eliminate Air Pollution Prevention and Control Objectives in 2024

impurity interference during ammonium chloride evaporation improve byproduct quality and comprehensive resource

utilization.The concentration of waste gas emissions will adhere to the specific limits established for air pollutants in the

Emission Standard of Pollutants from Rare Earth Industry (GB 26451-2011) and its amendments.案Case Stu例dy Project of Magnesium Bicarbonate Preparation and Recycling Production Line

This project innovatively utilizes magnesium sulfate wastewater Progress of Air Pollution Prevention and Control Objectives in 2024

generated during the smelting and separation processes of Baotou

rare earth concentrate combined with recycled carbon dioxide to The emission concentrations of waste gases from each pollution source consistently fell below the limits outlined

produce magnesium bicarbonate solution in a circular manner. The in the Emission Standard of Pollutants from the Rare Earth Industry and its amendments. Furthermore the actual

magnesium bicarbonate solution effectively replaces solid magnesium emissions were significantly below the national permissible limits.oxide in the saponification of organic phase extraction transformation In response to yellow heavy pollution weather in Baotou City we launched the “one enterprise one policy”

and separation of rare earths. Through this approach we achieve approach ensuring targeted and effective emission reductions.significant recycling of water resources and valuable chemical

materials including magnesium and carbon dioxide while eliminating

the pollution associated with ammonia-nitrogen wastewater at the

source. Additionally this methodology circumvents complications

arising from calcium sulfate scaling and impurities such as aluminum and iron thus streamlining the extraction process. As a Waste Gas Management Performance

result the utilization rate of rare earth resources is enhanced leading to improvements in product quality. Furthermore this

innovative process significantly reduces production costs promoting an environmentally friendly efficient and sustainable

method for rare earth production. The project boasts an impressive annual output of 1.87 million tons of magnesium

SO2 emissions SO2 emissions intensity NOx emissions

bicarbonate recycles 970000 cubic meters of magnesium sulfate wastewater and recovers approximately 11 million tons of

carbon dioxide. 313.22Tons 1.80kg/tREO 347.94Tons

Pollution Prevention and Control NOx emissions intensity Flue gas and dust emissions Flue gas and dust emissions

The Company is firmly committed to meeting stringent ecological and environmental protection standards by continuously

enhancing its pollution prevention mechanisms. It adopts a comprehensive approach to the integrated management of waste gas 1.99 38.17

intensity

kg/tREO Tons 0.22kg/tREO

wastewater solid waste and industrial noise strictly regulating and reducing environmental pollution. This dedication supports

the Blue Skies Clear Waters and Clean Lands initiative driving forward green and sustainable development with confidence and

determination.

71 72China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

案CaStu例se dy Wastewater Lime Digestion Transformation Project in Huamei Water Source Conservation

The newly constructed lime digestion project represents a significant advancement The Company rigorously complies with the Regulations of Inner Mongolia Autonomous Region on Building a Key Ecological

in operational efficiency and safety. A key enhancement involves transitioning the Security Barrier in Northern China. These regulations require that all enterprises build comprehensive wastewater treatment

mode of transportation from ton bags to tank trucks thereby streamlining the facilities to ensure compliance with discharge standards strengthen soil and groundwater management to prevent leakage and

logistics process. Upon arrival at the designated site the lime is pneumatically groundwater contamination and establish a real-time groundwater monitoring system to track water quality changes issue

conveyed into storage silos addressing potential safety hazards associated with the timely warnings and safeguard against pollution risks. These measures ensure that rare earth resource development does not

intersection of the unloading area and production zone. This method effectively compromise surrounding water sources protecting both ecological security and residential water safety.minimizes uncontrolled dust dispersion during unloading. For the subsequent

silo discharge and digestion processes the implementation of a quantitative

screw feeder in conjunction with a tank-type digester replaces the previous Waste Management

system that relied on electric hoisting belt conveyors and horizontal digesters.This improvement facilitates more precise measurement during digestion and

strengthens production continuity. Moreover the new lime digestion system is integrated with a Distributed Control System (DCS) General Waste

allowing for automated interlocking control throughout the operation. This transition shifts the operational environment from a

semi-closed to a fully closed system significantly mitigating the release of dust and steam. The dust and steam produced during The Company’s general waste composition consists predominantly of

operations is effectively captured by the newly installed bag filter and spray tower ensuring a controlled workshop environment. desulfurization gypsum spent dust removal ash discarded refractory materials

The process boasts zero leakage of waste gas and dust. calcium fluoride residue and construction debris. In alignment with the Solid Waste Pollution Prevention and

Solid Waste Pollution Prevention and Control Management Guidelines of

Control Objectives in 2024

Northern Rare Earth the Company has significantly enhanced its solid waste

The compliance rate for the comprehensive

management protocols through several decisive measures: bolstering pollution

Wastewater Management process of industrial solid waste collection prevention and control establishing clear primary responsibility for solid storage transportation and disposal should

waste oversight and promoting the 3R principle—Reduce Reuse Recycle.The Company’s wastewater primarily comprises ammonium chloride (NH?Cl) ammonium sulfate ((NH?)2SO?) and magnesium sulfate reach 100%.These initiatives aim to achieve waste minimization resource recovery and

(MgSO?) generated through smelting processes. In alignment with China’s stringent Water Pollution Prevention and Control Law

the Company is committed to continuously enhancing its wastewater treatment methods by investing in resources and leveraging environmentally sound disposal practices.technological innovations. Through a systematic approach involving categorized collection quality-based treatment and recycling Progress of Solid Waste Pollution Prevention

initiatives the Company has successfully achieved Zero Discharge of industrial wastewater across all facilities within Inner Mongolia The Company adheres rigorously to all relevant laws regulations and standards and Control Objectives in 2024

while also progressing towards Near-Zero Discharge for facilities outside Inner Mongolia. These proactive measures ensure sustainable governing solid waste pollution control. It maintains comprehensive lifecycle

water management practices. management of domestic waste construction waste general industrial The Company achieved 100% compliant

solid waste and hazardous waste. This robust framework encompasses the disposal of solid waste including the proper

Wastewater Management Performance monitoring of waste generation storage transportation and disposal processes treatment of 760000 metric tons of gypsum.to ensure absolute compliance with regulatory requirements. To ensure

transparent and standardized management the Company has successfully

Total wastewater discharge Industrial waste water discharge Household waste water discharge

implemented a real-time digital tracking system that interfaces directly with

1719887.56 1502739.60 217147.96 China’s National Solid Waste Management Information System. This advanced Tons Tons Tons

system meticulously records waste categories quantities and flow trajectories

with precision.COD discharge COD discharge intensity Ammonia nitrogen discharge 案Ca例se Study The Renewable Resource Landfill Project of Northern Rare Earth

48.26Tons 0.278kg/tREO 7.06Tons The Company has made a substantial investment of 300 million yuan to establish Recycling Resources a

renewable resource subsidiary which will lead the development of the Company’s Renewable Resource Landfill

Project. This initiative effectively addresses the landfill disposal requirements for water-leached slag produced by

the Company’s smelting and separation processes in the Baotou region. It not only enhances the utilization of the

Ammonia nitrogen discharge intensity Company’s rare earth raw materials but also accelerates the implementation of the Two Rare Earth Bases. Upon

0.041 completion the project is anticipated to fulfill the Company’s water-leached slag landfill needs for approximately kg/tREO 33.2 years thereby providing a robust foundation for sustainable production and operations.

73 74China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

Hazardous Waste Green Living

The Company’s hazardous waste primarily comprises mineral oils and waste acids produced during smelting and processing

operations. Adhering rigorously to the Cleaner Production Promotion Law of the People’s Republic of China the Interim Measures The Company is committed to integrating ecological and environmental protection principles into the daily practices of its employees.for Cleaner Production Audit and the Solid Waste Pollution Prevention and Control Management Guidelines of Northern Rare Through comprehensive awareness campaigns and hands-on initiatives we effectively promote ecological conservation obligations

Earth the Company has implemented comprehensive management protocols. These protocols facilitate meticulous tracking of and advocate for best practices in sustainable operations. Our programs are designed to protect ecosystems and biodiversity. We are

the hazardous waste lifecycle ensuring that all waste transfers undergo thorough transport qualification reviews contractual fostering a culture of environmental stewardship to drive collective Sustainability.agreements and manifest requirements. Storage facilities are constructed in accordance with stringent national Three

Protections standards which ensure leak-proof corrosion-resistant and spill containment measures. Standardized warning signs

are displayed. Green Operation Practices

Furthermore process optimization initiatives prioritize the use of environmentally

friendly materials including non-toxic and low-toxicity alternatives low-VOC or zero-

VOC raw materials and enhanced production controls to uphold internal standards Green Office

effectively reducing hazardous material usage.The Company has effectively implemented a robust array of energy-saving and environmental protection measures. Key initiatives

include energy efficiency upgrades such as the installation of timers and low-flow irrigation systems to optimize resource utilization

as well as replacing conventional lighting with LED tubes. The procurement strategy prioritizes energy-efficient water-saving and

renewable products while actively phasing out high-energy-consumption office equipment. Moreover behavioral awareness campaigns

Waste Management Performance have been instituted featuring conservation reminders in office environments the adoption of paperless workflows and the promotion

of green commuting options. Stringent management of official vehicles further ensures fuel efficiency. Lastly we advocate for waste

reduction through structured waste sorting and our Clean Plate campaigns significantly minimizing food waste.Flue-gas desulfurization gypsum Discharge intensity of general Mineral oil

763249.04 industrial solid wasteTons 4389.71 26.18Tons Green Office Management Performancekg/tREO

Office paper consumption Office paper savings Electronic waste discharge

Discharge intensity of hazardous Total general waste generation per million-yuan revenue

waste 23.15 30.59Tons 3.56Tons 0.4Tons0.15 Tonskg/tREO

Toner cartridge consumption Ink cartridge consumption Household waste generation

Noise Management 2.36Tons 2.07Tons 1572.20Tons

The Company fully complies with the Noise Pollution Prevention and Control Law of the People’s Republic of China and the Technical

Specification for Application and Issuance of Pollutant Permit——Industrial Noise. To effectively manage and mitigate noise pollution

we have implemented several strategic measures. We prioritize the utilization of low-noise equipment and have successfully replaced

Kitchen waste generation Gasoline consumption EV charging station

459 conventional motors with permanent magnet motors as of 2024 significantly reducing noise at the source. Additionally we

have installed sound insulation shields and noise barriers to enhance noise suppression. Our commitment to noise reduction extends 172.3Tons 114371.7L 29

to proactive equipment management involving technical modifications to further minimize noise impact. Regular inspections and

maintenance are conducted to ensure reliable equipment operation while periodic noise emission monitoring guarantees compliance

with established factory boundary standards. Moreover we have completed industrial noise pollution permit applications for 14

subsidiaries and/or branches in 2024.

75 76China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

Environmental Awareness Biodiversity Protection

The Company demonstrates unwavering commitment to compliance with pertinent laws and regulations including the Environmental

The Company prioritizes enhancing environmental awareness and reinforcing eco-friendly practices through comprehensive initiatives.Protection Law of the People’s Republic of China the Wetland Protection Law of the People’s Republic of China the Forest Law of the

These include conducting diverse awareness campaigns to promote sustainable principles engaging employees in sustainability

People’s Republic of China and the Regulations on Nature Reserves of the People’s Republic of China. To mitigate ecological impacts

efforts and fostering a collaborative culture dedicated to environmental protection.the Company employs strategic measures in its operations. Site selection processes intentionally exclude ecologically protected areas

and environmentally sensitive zones. Furthermore all subsidiaries and branches are mandated to incorporate biodiversity conservation

measures at each project stage—design construction and operations. Comprehensive and continuous monitoring ensures timely

The Company organized an online environmental quiz on the YouSpace platform

addressing key topics such as environmental laws pollution control technologies and assessment of ecological effects facilitating prompt corrective actions when unintended impacts arise.sustainability best practices. The initiative drew participation from 2600 employees

significantly enhancing their environmental awareness and knowledge retention while Land Resource Protection

fostering greater engagement in corporate sustainability initiatives.The Company effectively manages and utilizes land resources through optimized allocation robust protection and comprehensive

ecological restoration measures. A key achievement in 2024 includes the implementation of soil and groundwater monitoring at the

The Company also initiated a best practice competition focused on environmental

tailing ponds of the Baiyun Boyu Rare Earth Beneficiation Plant and the Har Oboo Beneficiation Plant. Following rigorous verification

management solutions garnering 18 submissions. Entries were rigorously evaluated

the Company successfully closed and deregistered these tailings ponds demonstrating compliance with Inner Mongolia’s Dynamic

according to techniques environmental performance cost efficiency and scalability.Environmental As a result six exemplary cases were selected for company-wide implementation Adjustment Scheme for Tailings Pond Environmental Supervision List (Trial) regarding vegetation recovery and remediation outcomes.Protection Awareness fostering cross-departmental knowledge sharing to promote continuous improvement in

Campaigns environmental practices. 案Case Stu例dy Green Transformation at the Baiyun Obo Mine

The Baiyun Obo Mine recognized as the largest iron and rare earth co-existing ore in reserves in northwest region

China and home to the world’s most substantial rare earth reserves stands as a prominent asset within Inner

Environmental Protection for Public Interest Mongolia. However its challenging environmental conditions—characterized by strong winds low rainfall high

evaporation rates and deep groundwater levels—have historically hindered effective ecological restoration. Key

The Company demonstrates its commitment to social responsibility through the corporate of environmental public welfare initiatives

obstacles have included poor soil water retention a deficiency of essential nutrients for plant growth and historically

including tree-planting campaigns and by promoting sustainable low-carbon lifestyles. These initiatives aim to enhance employees’

low vegetation survival rates.awareness of energy conservation and environmental stewardship while cultivating a culture of sustainability throughout its operations.In response to these challenges and to promote green mining

practices while facilitating Inner Mongolia’s transition to low-carbon

案Ca例se Spring Time for Tree Planting mining the Energy Conservation & Environmental Protection has Study

implemented a series of innovative solutions. These include soil

I n March 2024 t he Company revitalization techniques that achieve a reduction in the bioavailability

facilitated a spring voluntary tree- of lead and cadmium pathogen elimination salt-alkali decomposition

planting initiative. This initiative for enhanced soil structure and the application of microbial

effectively demonstrated employees’ inoculants alongside drought-resistant forage grasses. The outcomes

collaborative spirit and commitment of these initiatives have been remarkable transforming waste dumps

to environmental stewardship through into vibrant grasslands significantly increasing biodiversity and

active involvement. It also contributed enhancing carbon sequestration capabilities.significantly to the establishment

of a green modern state-owned

enterprise and reinforced China’s

northern ecological security barrier.

77 78Quality Leadership for

Operational Excellence 03

The Company firmly establishes quality as the foundation of its corporate development prioritizing safety management as a core

principle. Our commitment to responsible business practices allows us to continually enhance customer satisfaction through the

implementation of a sustainable high-resilience supply chain the promotion of technological innovation and the facilitation of

collaborative value creation. Our ultimate objective is to emerge as a world-leading rare earth enterprise.Performance Highlights in 2024

R&D expenditure R&D expenditure to revenue ratio Product on-time delivery rate Contribution to UN SDGs

1.604 billion yuan 5.11% 100%

Safety inspections Customer satisfaction

878100%

79 80China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

Product Quality

The Company prioritizes quality as its foundational pillar which drives continuous improvement through enhanced quality management *Internal control line

systems innovative quality models and cultural transformation with total staff quality awareness. We aim to provide consistent

products with premium quality. Three-Line *Enterprise standard line

*National standard line

Product Quality Performance Highlights

Rate of product/service- Product recall Product on-time delivery rate Major liability incidents related *Total staff

related complaints 104 100 to product safety and quality0.5 Tons % 0 Three-Total *Total processes%

*Total dimensions

Quality

Management

Quality-related Governance Mode *Strictly verify all inputs from the preceding process

The Company embraces the quality philosophy of Customers First Brand Uppermost by Three-Process *Meticulously manage current production process

vigorously advancing the development of its quality management system. Adhering to

pertinent legislation including the Product Quality Law of the People’s Republic of China *Provide flawless outputs to the subsequent process

the Company executes its quality management responsibilities in alignment with the

Management Manual of Northern Rare Earth the Procedure Documents of Northern Rare

Earth and the Quality Management Guidelines of Northern Rare Earth. This comprehensive Three-Line Three-Total and Three-Process Management Mode

approach enhances the standardization normalization and specialization of quality

management practices.To ensure effective implementation the Company has established a robust three-level

organizational structure featuring a Chief Quality Officer a Quality Committee and Quality 案Ca例se Study Northern Rare Earth is Recognized as a Flagship Enterprise under the

Champions system. It has also formulated and finalized annual quality objectives while National Quality Empowerment Strategy

strategically coordinating efforts to achieve ISO 9001 certification. Consequently this

framework guarantees the sustained effectiveness of the Company’s quality management ISO 9001 Quality Management In December 2024 the National

operations. System Certificate Qual i ty Leadership Exchange

Conference titled Quality-Driven

Quality-related Strategies Enterpr ises Co-Creat ing the Future was convened in Beijing.During this prestigious event the

The Company strategically emphasizes quality as a cornerstone of its development implementing a comprehensive approach to quality

Company was distinguished as

management. By instituting management measures such as quality planning product quality oversight quality dispute resolution and

a Flagship Enterprise under the

rigorous supervision and assessment the Company continuously enhances the quality of its rare earth products. This commitment

National Quality Empowerment

significantly contributes to establishing a robust quality-driven country.Strategy uniquely representing the

The Company has introduced an innovative quality management mode encompassing Three-Line Three-Total and Three-Process. The Inner Mongolia Autonomous Region

Three-Line framework enforces stringent internal control standards effectively creating a protective net for product quality. The Three- among the selected organizations.Total model broadens accountability establishing a responsible chain that underscores product quality at every level. Meanwhile the

Three-Process framework facilitates hierarchical control forming a robust regulatory mechanism for quality assurance. As a testament

to these efforts the Company achieved an impressive one-time pass rate of 99.12% for rare earth products during OQC process in

2024.

81 82China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

Quality-related Risk Management 案Ca例se Study Quality Month Activities

During the 2024 Quality Month campaign the Company

The Company underscores its commitment to product quality management through the rigorous implementation of the Northern effectively unified all subsidiaries and branches to achieve

Rare Earth Procedures Documents. It has established comprehensive control systems including Non-Conforming Product Control several key objectives. We systematically reviewed quality

Procedures and Quality Dispute Resolution Procedures. These initiatives ensure the timely and effective resolution of quality disputes achievements benchmarked against industry-leading

the proper handling of non-conforming products and the protection of customer rights and interests. The Company achieved zero practices and shared advanced quality methodologies.major quality incidents and no product recalls in 2024. Collaborative efforts were initiated to address recurring

quality challenges and enhance critical process controls.Furthermore we implemented a robust training program

Quality-related Indicators and Objectives that included 66 sessions on total quality management

(TQM) and 17 Chief Engineers on Quality workshops

featuring in-depth technical discussions. These initiatives

Quality Management Objectives were complemented by tailored activities to develop

employee skills culminating in online quizzes knowledge

competitions and technical skill contests

2024 Quality Management Targets Progress

First-pass yield rates across all product lines —Separation >98%; Functional Materials >98%; Metals

Completed

Segment >93%; End-Use Applications >97% Lean Management Initiative

Zero quality incidents at secondary-level or higher operating entities Completed The Company has developed the Detailed Rules for Lean Management Implementation to strengthen digital lean management and

optimize lean processes. We have consistently performed targeted improvements and created model lean production lines as per the

internal policy.Customer satisfaction with products and services ≥ 98.5%. Completed

Year-over-year growth in production of high-value products — high-value raw materials ≥10%; High-

Completed

value functional materials ≥12% Lean Management Performance

The integrated management systems for Quality Environment Occupational Health & Safety (OHS)

Completed Lean projects Lean groups Lean production lines

and Energy continue to operate effectively and sustainably.

76368

Quality Culture Development

The Company actively fosters a culture of quality excellence through a multifaceted approach that prioritizes the implementation of

quality responsibilities at all levels. By conducting comprehensive tiered training and awareness initiatives the Company cultivates an

environment that emphasizes quality as a core value. This strategic focus enhances employee engagement and instills ownership and Six Sigma Management

pride in delivering superior products.The Company is committed to advancing its quality control processes through the rigorous application of Six Sigma methodologies.Structured Quality Control (QC) group activities further mobilize all employees in the pursuit of quality improvements empowering These efforts aim to enhance quality management capabilities boost efficiency and bolster resilience in the face of market

frontline staff to spearhead enhancements. Initiatives such as Quality Month and skills competitions encourage subsidiaries and fluctuations thereby establishing a sustainable competitive advantage in product quality. In 2024 we successfully completed eight Six

branches to engage in ongoing training facilitate targeted quality breakthroughs promote a mindset of continuous improvement and Sigma projects implemented 51 effective Quick Win improvements standardized 76 best practices developed 15 comprehensive work

stimulate internal innovation. This commitment ensures that quality remains at the forefront of the Company’s operational agenda. instructions and expanded the application of quality tools to ensure continuous improvement.

83 84China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

Ca

S案tu例se dy Six Sigma Project Kickoff and Champion Training Safety-related Strategies

The Company has released the 2024 Work Safety Standardization Implementation

In May 2024 the Company conducted Plan to enhance safety standardization across all operations. This initiative emphasizes

a Six Sigma Project Kickoff Meeting robust internal audits and self-assessments while improving internal review

alongside a Champion Training Session. mechanisms and tracking corrective actions. Additionally the launch of the Safety

The object ives inc luded out l in ing Standardization Tier-Upgrading Plan aims to bolster compliance among subsidiaries

project goals elucidating the strategic and branches.context for Six Sigma implementation

defining project requirements fostering In 2024 this commitment has yielded significant achievements with five affiliates

organizat ional al ignment bui lding obtaining Tier-2 Safety Standardization Certification and eighteen achieving Tier-3

consensus on methodologies across Certification.departments and unifying efforts to

enhance the development of new quality The Company has initiated the Development of Safety Standards for the Rare Earth

productivity initiatives. Industry research project spearheading the development of the mandatory industry

standard titled Safety Regulations for Rare Earth Smelting. This initiative confidently

aims to define safety norms and boundaries establish clear operational guidelines

standardize hazard controls enhance industry-wide safety promote unified safety Tier-2 Safety Standardization

management practices and significantly reduce workplace accidents through Certificate

proactive preventive measures.Safety Bottom Line Safety-related Risk Management

The Company rigorously upholds fundamental workplace safety principles by diligently enforcing safety production responsibilities and

continually enhancing safety management systems and operational procedures. These initiatives are designed to strengthen safety Safety Risk Management

awareness among employees develop smart safety-focused factories and establish a secure operational foundation for sustainable

business growth. For 2024 a dedicated safety investment allocation amounts to 49.537 million yuan. The Company has launched the Three-Year Action Plan for Fundamental Improvement in Work Safety (2024–2026). This plan is

designed to enhance risk management improve the quality of hazard identification and rectification and ensure the dynamic clearance

of major accident risks. Additionally it aims to strengthen intrinsic safety and modernize the work safety governance system fostering

a virtuous cycle of high-quality development alongside elevated safety standards. As of 2024 100% of identified risk points under daily

Safety-related Governance management have been effectively controlled.Safety Management System Graded Risk Management

The Company firmly upholds the Three-Manage and Three-Must principle—encompassing The Company is committed to advancing i ts r isk

management of business operations and production while prioritizing safety in alignment with management system through several strategic initiatives.China’s Work Safety Law. To enhance safety management the Company has implemented First it has established detailed protocols by formulating the

several key initiatives. It has revised and strengthened the Comprehensive Work Safety Implementation Rules for the Dual-Prevention Mechanism of

Responsibility System optimized safety responsibility lists specific to departments and positions Risk Classification and Hidden Hazard Investigation. In addition

introduced quantitative evaluation criteria for annual safety performance assessments. expert-led teams are organized to conduct thorough safety risk

reassessments ensuring comprehensive risk identification. The

Also the Company has established ten distinct safety management policies including the Dual-Prevention Mechanism for Safety Company employs the LEC Method to classify risks by severity

Risk Classification and Hidden Hazard Investigation of Northern Rare Earth. It has augmented safety supervision frameworks and assigning tiered ownership for effective mitigation. Finally it

organizational structures. Moreover a Work Safety Committee has been formed as the core decision-making body complemented by guarantees that all identified risks are both manageable and

the establishment of a dedicated Safety Committee Office to oversee daily enforcement of safety measures. These actions reflect the preventable reinforcing its dedication to workplace safety.Company’s unwavering commitment to fostering a culture of safety. Four-Color Risk Identification Map

85 86China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

In 2024 the Company launched the Notice on Launching the ‘Identify Risks Eliminate Hazards’ Special Campaign reinforcing its

A detailed hazard inspection plan is established explicitly defining the scope of inspections

commitment to comprehensive safety enhancements across all operational units. As a result of this initiative 4562 hazards were identified 1 Plan specific checkpoints assigned responsibilities and risk-based inspection frequencies.company-wide with 22 major/high-risk hazards earmarked for priority control. Furthermore the campaign has strengthened baseline safety

protocols and intensified risk management measures establishing a robust framework for ongoing safety improvements.The inspection system must ensure comprehensive coverage through integrated approaches

2 Inspect combining scheduled and ad-hoc inspections specialized technical reviews with cross-functional

audits as well as routine checks complemented by focused priority-area verifications.Safety-related Indicators and Objectives

3 Remedy Upon identification general hazards shall trigger immediate remediation procedures while critical

Safety Management Targets hazards demand emergency containment measures.Post-remediation qualified technicians must conduct thorough effectiveness evaluations to

2024 Quality Management Targets Progress 4 Assess confirm hazard control or elimination.

No significant incidents recorded in production safety equipment safety traffic safety or fire safety Completed The originating inspection department verifies completion through formal acceptance protocols

5 Accept updates relevant control measures and documents the closed-loop management process to

ensure full accountability.Lost-time injury frequency rate (LTIFR) per 1000 employees ＜0.6‰ Completed

Specific Process for Safety Hazards Inspection

The implementation rate of the safety training plan full-staff training rate three-level safety education

Completed

rate and certification training rate for special operations and equipment operators all reach 100%.In 2024 the Company successfully implemented a multi-layered safety supervision system across all subsidiaries and branches. The

Annual inspection of special equipment along with periodic inspections and registration/certification

Completed methodologies employed included Self-Audits and Peer Reviews Comprehensive Checks and Targeted Inspections as well as On-

processes reaches 100% completion rate. Site Inspections and Off-Site Monitoring focusing on Key Entities and Construction Projects. These initiatives ensured the effective

implementation of the work safety responsibility system while enhancing the rigor and effectiveness of safety management practices.All identified risk points are controlled by daily management with a 100% hazard rectification rate. Completed

案Case Stu例dy Pre-Holiday Safety Inspection

Spotting Safety Hazards In September 2024 just ahead of

the National Day holiday executives

The Company is committed to enhancing its hidden hazard identification mechanism through several strategic initiatives. These include

of the Company undertook thorough

the integration of risk classification and control outcomes to establish a comprehensive hazard investigation and rectification checklist.safety inspections at Magnetic

Furthermore it specifies detailed criteria for hazard identification and enhances incentive and disciplinary mechanisms for effective

Materials and Tianjiao Qingmei. The

hazard management. Additionally the Company strengthens its information archiving systems to ensure robust documentation and

primary objectives were to verify

facilitates effective implementation. Collectively these efforts provide a solid foundation for ensuring workplace safety.the implementation of work safety

protocols enhance the management

of production safety and ensure

Safety Hazards Inspection Performance stable operations throughout the

holiday period.Safety inspections Safety hazards corrected Correction rate of safety hazards

8784435100%

87 88China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

Safety Emergency Management Safety Culture

The Company has taken significant strides in strengthening its emergency Safety Emergency Drill The Company is committed to enhancing workplace safety through comprehensive training programs and initiatives that promote safety

Performance

management regulations. This includes the standardization of procedures in alignment awareness among employees. By standardizing operational procedures and improving safety competencies the Company effectively

with the Work Safety Emergency Response Plan. Notable enhancements involve the cultivates a culture of safety. Utilizing digital tools it has elevated safety management standards to ensure a secure and stable working Emergency drills

development of unified emergency response cards that comprehensively outline environment. In 2024 various tailored safety training sessions were implemented specifically designed for distinct employee groups

hazard types response procedures essential precautions evacuation routes and 472 reinforcing safety awareness and equipping all staff members with essential knowledge and skills.emergency contact numbers. Additionally the Company has amplified on-site

preparedness and improved the response capabilities of its staff.Safety Training Performance

Emergency drill participation

In 2024 the Company successfully conducted 472 emergency drills addressing various

scenarios including fire emergencies confined space rescues electric shock incidents 5505 Safety and occupational health Safety and occupational health Safety and occupational health

and crane accidents. All part-time emergency response teams received training

training sessions training duration training participation

strengthening the Company’s overall crisis management framework.

314 872Hours 23845

案Case Stu例dy Fire Drill

案Ca例se Study Safety Management Skills Enhancement Training

In June 2024 Gansu Rare Earth executed a comprehensive chemical firefighting and rescue drill simulating I n N o v e m b e r 2 024 t h e C o m p a n y

diverse levels of chemical leaks in workshop areas. The exercise effectively activated internal emergency protocols successfully conducted six sessions of

deployed the on-site professional fire brigade and tested multi-level response strategies. Outcomes included Safety Management Skills Enhancement

enhanced technical skills and improved coordination among emergency teams significantly bolstering company- Training addressing critical topics such as

wide emergency preparedness. regulatory compliance criteria for identifying

major accident hazards standardized

workplace safety practices and safety

management of high-risk operations and

equipment. Additionally the training covered

the proper use of safety measures funds

and the development of a robust safety

culture. Part icipants gained a deeper

understanding of workplace safety through

the interpretation of safety regulations

analysis of real-world accident cases and introduction to the latest safety technologies. These initiatives undeniably

strengthened employees’ safety management competencies establishing a solid foundation for a safer and more

compliant work environment.The Company has consistently reinforced its commitment to safety culture by organizing a comprehensive series of Workplace

The Company has released the Notice on Strengthening Emergency Duty and Safety Management During Extreme Weather and Safety Month activities under the compelling theme “Safety is Everyone’s Responsibility Emergency Preparedness is Everyone’s Skill”.Critical Periods which outlines comprehensive preventive measures for addressing extreme weather challenges. Furthermore a Through a variety of engaging formats including pre-shift meetings safety warning education sessions and knowledge competitions

strategic work deployment meeting was convened to coordinate and enhance preparedness and response initiatives specifically for the Company actively cultivates a heightened awareness of safety culture. These initiatives not only foster employees’ sense of

the upcoming flood season. belonging to the corporate safety framework but also ensure the integration of safety principles throughout all production processes.

89 90China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

案Case Stu例dy Workplace Safety Month Smart and Safe Factories

In May 2024 the Company successfully The Company is resolutely enhancing its information technology capabilities while expediting the upgrade of intelligent equipment. Building

in i t iated i ts Workplace Safety Month upon the 3D transformation project we have advanced the implementation of mechanization to replace manual operations automation

campaign aptly themed Safety is Everyone’s to minimize workforce exposure and intelligent systems aimed at achieving unmanned production. Key achievements include remote

Duty Emergency Preparedness is Everyone’s monitoring of critical hazard control parameters development of a smart safety factory through intelligent and digital solutions significant

Skill - Keeping Escape Routes Clear. This enhancements in intrinsic safety across all operational domains and effective reduction of overall safety risks. These initiatives fundamentally

comprehensive initiative incorporated a range reinforce the Company’s inherent safety management system.of online and offline activities designed to

enhance safety awareness boost employee

engagement in safety initiatives and support

the Company’s commitment to exceptional

corporate development through improved

safety performance.Workplace Safety Management System

Safety-themed Artworks Safety Culture Wall

Safety Culture Corridor Safety Warning Signs Intelligent Forklift Intelligent Inspection Line

91 92China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

Responsibility for Customers The Company has developed the Northern Rare Earth Product After-Sales Quality Dispute Management Procedures which incorporate a robust customer complaint mechanism that ensures a comprehensive closed-loop management system. This system encompasses

the categorization of complaint types meticulous documentation of complaint details thorough investigation of root causes proposal

The Company places high importance on customer service quality continuously optimizing the customer service system and refining of effective solutions tracking of resolution progress and provision of feedback and evaluation to customers. Notably in 2024 the

service standards. We are committed to protecting customer rights through ongoing initiatives strengthening data privacy safeguards Company didn’t receive customer complaints.building long-term mutually beneficial partnerships and creating shared value and collaborative growth with our clients. By fostering

reciprocity and win-win cooperation we achieve shared development with our customers.Customer Satisfaction Survey

Customer Service System The Company prioritizes customer experience through the Northern Rare Earth Customer

Satisfaction Measurement Management Procedures which encompass systematic customer

The Company unwaveringly follows a customer-first service philosophy and rigorously enforces the Consumer Rights Protection Law Customer Satisfactionsatisfaction surveys standardized evaluation protocols and a robust assessment framework.of the People’s Republic of China. To standardize customer management and elevate market service awareness we have developed This comprehensive approach facilitates the collection of insightful feedback on products

comprehensive internal regulations including the Northern Rare Earth Customer Management Procedures and the Northern Rare Earth 100%and services identification of improvement areas implementation of targeted enhancements

Marketing Service Management Procedures. These initiatives effectively strengthen brand influence enhance market competitiveness and continuous elevation of quality management and service standards. Notably in 2024 the

and maintain the highest standards of service excellence. Company achieved a remarkable 100% customer satisfaction rate.Customer Information

Development Management Customer Communication

Customer Classification Customer Service

and Review Management The Company continuously enhances its marketing strategies by closely monitoring policies from national and local governments

Management

strengthening collaborations with local authorities maintaining ongoing dialogues with customers and deepening partnerships with

high-quality strategic allies. Through multi-channel engagement—encompassing phone email and site visits—we have established a

closed-loop communication system that facilitates demand insight service upgrade and ecosystem synergy.Customer Admission Customer Complaint

Customer Relations Management

Maintenance

Management Customer Privacy Protection

Customer Management Structure

Customer Information Archive

The Company prioritizes the protection of customer rights and provides exceptional end-to-end services—encompassing pre-sales The Company places a significant emphasis on the management of customer information

during-sales and after-sales—to optimize the user experience. Our commitment lies in fostering long-term stable and collaborative through the implementation of a comprehensive customer data archive system. This system

partnerships with our customers. methodically collects and preserves essential information including credit profiles sales

contracts business correspondence and legal dispute resolutions. Through centralized

Before Sale During Sale After Sale management regular updates and consolidated reporting we guarantee data accuracy and

timeliness while enhancing the completeness and reliability of information. Consequently this

Our integrated service model The sales cycle is managed To ensure continuous robust framework supports informed decision-making and fosters more efficient professional

delivers comprehensive information through end-to-end tracking improvement we implement

with proactive progress updates satisfaction surveys establish services. The ultimate outcomes are a strengthened customer satisfaction and reinforced support through market research

product promotion campaigns and to clients complemented by dedicated complaint hotlines with client trust.structured feedback systems. We scheduled follow-ups to monitor multiple reporting channels and

provide customized solutions via evolving needs and satisfaction conduct periodic relationship Customer Privacy Protection

efficient inquiry processing and levels. reviews with key accounts

specialized technical evaluations for through mutually scheduled visits. The Company upholds exemplary standards in customer privacy protection strictly adhering to the Consumer Rights Protection Law

unique product requirements.of the People’s Republic of China. We have implemented stringent protocols to safeguard all customer information obtained during

business operations prohibit unauthorized access or disclosure of client data and eliminate any potential breaches of customer

Customer Service System privacy. As a testament to our effectiveness we achieved zero incidents of customer data breaches in 2024.

93 94China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

Green Procurement Practices

The Company actively enhances its supply channels to ensure a reliable procurement of essential bulk materials. By establishing

The Company is resolutely committed to establishing a secure healthy and stable supply chain through several strategic initiatives.strategic partnerships with leading domestic and international suppliers we reinforce the resilience of our supply chain. Additionally

These include the integration of ESG principles into supply chain management equitable treatment of all suppliers the adoption of

we have implemented robust emergency procurement protocols that effectively maintain stability during disruptions. In 2024 we

green and transparent procurement strategies and the enhancement of supplier management standards. Our purpose is to actively

achieved zero major supply chain incidents and sustained uninterrupted material supply.co-create a collaborative and sustainable supply chain ecosystem ensuring long-term viability and ethical responsibility.Supplier Management Supply Chain Risk Management

The Company firmly employs the principles of “categorized management and dynamic maintenance” establishing robust supplier Critical risk incidents in the Suppliers involved in critical Persons involved in critical

management systems through internal regulations notably the Northern Rare Earth Supplier Management Procedures. We have supply chain supply chain risk incidents supply chain risk incidents

implemented standardized processes for supplier sourcing qualification and tiered evaluation as well as optimal resource utilization

and quality-assured procurement mechanisms. This comprehensive framework facilitates the development of a transparent efficient 0 0 0

and sustainable procurement and supply chain management system.Supply Chain Risk Management Synergistic Development with Suppliers

The Company is diligently enhancing its supplier ESG management by explicitly integrating ESG principles into its Supplier

The Company as well as its subsidiaries and branches uphold several core principles in supplier

Management Procedures. This integration encourages the incorporation of ESG criteria throughout the entire supplier lifecycle

engagement that emphasize the importance of strategic partnerships and quality. Our approach

including admission performance evaluation and ongoing assessment. We maintain rigorous oversight of supplier practices in critical

prioritizes collaborations with manufacturing enterprises while focusing on creditworthiness

areas such as labor rights protection environmental compliance occupational health and safety and business ethics. Our categorized

and service excellence. To strengthen market development we engage in comprehensive

supplier management system ensures stringent control over admission performance evaluation and exit procedures facilitating

resource research conduct in-depth negotiations and expand our strategic supplier network.effective supplier risk assessment and strengthening the stability and reliability of our supply chain.The enhanced collaboration framework employs multiple engagement channels including phone

calls correspondence on-site visits and strategic partnership forums. Our strategic objectives

are to establish long-term relationships with suppliers deepen industrial collaboration and

Supplier Management Mechanism

share developmental achievements all while ensuring an efficient and interconnected industrial

ecosystem. This approach guarantees end-to-end supply chain stability culminating in optimized

Suppliers are required to adhere to national regional and industry regulations as well

Suppl ier as the Company’s standards for quality safety and environmental management. For the supplier network structures enhanced resilience and sustainable value co-creation.admission procurement of bulk raw materials and critical equipment it is essential to implement

mandatory traceability verification and conduct on-site inspections.Efficient Procurement Transparency

Supplier We carry out both regular and annual assessments that emphasize quality performance

service reliability and compliance records. Essential requirements include: zero violation The Company operates within a robust procurement governance framework that mandates strict adherence to principles of review and

records complete supply chain compliance and the development of sustainable transparency fairness and impartiality. Our procurement practices are underpinned by a commitment to good faith and scientifically

assessment

partnerships. informed selection ensuring regulatory compliance with essential guidelines including Procurement Procedures for State-Owned

Enterprises and the Northern Rare Earth Procurement Management Procedures. To enhance competitiveness and efficiency we

employ a diverse array of procurement methods such as public tendering price inquiries comparative selection and competitive

Supplier Approved suppliers are systematically categorized into three distinct classifications: negotiations. Our strategic partnership model emphasizes the establishment of long-term agreements with reputable suppliers striking

classification Strategic Suppliers Key Suppliers; and General Suppliers. a balance between supply stability risk mitigation and mutual value creation.We foster an ethical procurement ecosystem by prioritizing professional development through regular competency training and anti-

The evaluation results will inform the following actions: downgrading suppliers based on corruption compliance programs. Our strict integrity safeguards and comprehensive ethical oversight create a culture of accountability

Supplier exit performance metrics; or removing suppliers from the approved list as necessary. underpinned by mandatory integrity agreements with suppliers and transparent practices. Through our commitment to pioneering

clean procurement standards and driving ethical industry practices we fulfill our corporate responsibility with tangible actions.

95 96China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

Technological Innovation Technological Innovation Strategies

The Company has effectively developed and implemented the Collaborative

Guided by the principle that Technology Enables Development Innovation R&D Expenditure Sci-Tech Innovation Work Plan and the Research Funding Management

Leads the Future the Company identifies technological innovation as Technological Innovation Principles

Guidelines utilizing a Block Grant + Negative List mechanism. This strategic

the fundamental driver of corporate growth. We strategically integrate

R&D expenditure R&D expenditure to approach ensures the efficient integration of R&D resources fostering a Centered on addressing industrial needs.our innovation chain with the industrial chain effectively transforming

1.604 revenue ratio robust environment for the transformation of research achievements. Key technological advancements into a powerful engine for cultivating new Propelled by open collaboration among implementation measures include the rigorous execution of the Northern

high-quality productive forces. This resolute commitment positions us as 5.11 stakeholders.billion yuan Rare Earth Sci-Tech Innovation Leadership Plan and the establishment of an a premier rare earth enterprise and establishes us as a key contributor to

open shared and collaborative innovation ecosystem. This framework fully Anchored in the development of robust

the creation of the Two Rare Earth Bases. In 2024 we marked significant

leverages the leading and driving role of sci-tech innovation positioning the platforms.achievements in research and development with an expenditures of 1.604

Company for sustained success in its endeavors. Invigorated by institutional reform.billion yuan representing an R&D dedication of 5.11% of total revenue.Technological Innovation Governance

The Company has successfully established a comprehensive and robust research and development management system underscored Technological Innovation Risk Management

by a series of internal regulations. These include Research and Development Project Management Procedures Research and

Our R&D compliance framework is rigorously aligned with pertinent policies and regulations. We conduct regular compliance reviews

Development Funding Management Procedures and R&D Achievement Transformation Procedures. Key features of this system allow

to systematically examine our research activities identify potential risks and provide corrective recommendations. In accordance

for end-to-end project management optimal utilization of societal science and technology resources enhanced incentive mechanisms

with the Northern Rare Earth R&D Project Management Procedures we have established daily research integrity protocols and clear

for achievements and a strengthened framework for the application and promotion of research outcomes.accountability mechanisms. These measures have led to significant risk control outcomes ensuring regulatory conformity maintaining

Moreover the Company has adopted an innovative architecture titled One Hub + Three Bases. This structured framework incorporates operational standardization and proactively mitigating innovation risks.the National Enterprise Technology Center as the core hub facilitating organizational coordination management oversight and

resource integration across various platforms. The three-tier innovation chain encompasses an R&D Base for achievement cultivation Technological Innovation Indicators and

a Pilot Base dedicated to product trial production and an Incubation Base focused on commercial output.Objectives

Science and Technology Management

Committee of Northern Rare Earth * We will develop new products new processes and new equipment;

Innovation * We will undertake standardization pilot and/or demonstration projects

Science and Technology Expert Objectives * We will complete the transformation from technological innovation to industrialization;

Committee of Northern Rare Earth

* We will build demonstration production lines.Northern Rare Earth Technology Center

We will intensify annual R&D investment to maintain our status as a National High-

Tech Enterprise

We will cultivate domestic-leading research teams specialized in advanced materials

and related fields.Management We will consistently participate in national provincial and municipal-level research

Incubation Objectives initiatives each year.R&D Base Pilot Production

Base Base We will expand our portfolio of national-level technological innovation platforms and

achieve recognition as a Little Giant enterprise specializing in niche technologies.We will strengthen postgraduate talent development programs to foster a robust

Technological Innovation Framework pipeline of master's degree and above professionals.R&D and Innovation Management Objectives

97 98China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

R&D Platform Infrastructure S案Ca例se tudy Establishment of Joint Laboratory of Rare Earth New Materials and Applications

The Company strategically leverages sophisticated science and technology platforms as essential drivers for enhancing its capabilities During the opening ceremony of the 16th China·

thereby securing national recognition as a technology innovation demonstration enterprise and a high-tech enterprise. Its platform Baotou Rare Earth Industry Forum the Company was

portfolio comprises nine national innovation and service platforms two national enterprise technology centers two national honored with the prestigious title of National Leading

postdoctoral research stations and sixteen provincial-level (autonomous region) innovation platforms. This strategic utilization not only Enterprise in Rare Earth New Materials. This recognition

accelerates project commercialization but also effectively addresses technical bottlenecks broadens industrial perspectives tracks underscores the Company’s commitment to advancing

cutting-edge advancements and supports transformative innovations. the field of rare earth materials. A key achievement in

this pursuit is the establishment of the Joint Laboratory

of Rare Earth New Materials and Applications in

Ca

S案tu例se dy Establishment of Magnetic Materials Academician Workstation with Beihang University collaboration with Xiamen Tungsten Co. Ltd. The

laboratory focuses on several research areas including

In June 2024 we entered a strategic partnership rare earth smelting and separation the development of

rare earth metals and alloys the creation of permanent

with Beihang University to establish the Magnetic

magnetic materials rare earth hydrogen storage

Materials Academician Workstation. This collaboration

material and solid-state hydrogen storage installations

will concentrate on the development of rare-earth and the advancement of optical functional materials

permanent magnetic materials magnetostrictive and permanent magnet motors.materials and other advanced materials and

applications. The primary objectives of this initiative

include conducting fundamental and cutting-edge

research developing core technologies accelerating

technology transfer and commercialization and

creating a high-level open innovation platform. This

partnership is poised to significantly enhance our

innovation capabilities and strengthen its market

competitiveness.Enterprise Technology Center National Level Key Laboratory

案Ca例se Study University-Enterprise Joint Laboratory for Rare Earth Materials Research

In 2024 the Company successfully established

a joint laboratory agreement with Fudan

University and Inner Mongolia University

resulting in the formation of the University-

Enterprise Joint Laboratory for Rare Earth

Materials Research. This initiative focuses National Engineering Research Center International Science and Rare Earth New Material Testing and Evaluation

on addressing critical technical bottlenecks Technology Cooperation Base Platform (Rare Earth Industry Center)

streamlining technology commercialization

and contributing to industrial upgrading The Company has enhanced its strategic partnerships with esteemed universities and research institutions including Zhejiang

through efforts around four areas. University Lanzhou University and Inner Mongolia University of Science and Technology. By concentrating on critical areas such

as the development of scientific and technological innovation platforms addressing significant research challenges facilitating the

transformation of scientific achievements and nurturing talent the Company fosters a robust integration of industry academia and

research to generate substantial momentum for the innovative advancement of the sector. In 2024 the Company successfully forged

cooperative relationships with four additional industry-university-research institutions and allocated an expenditure of 20.59 million

yuan to support strategic collaboration projects with universities.

99 100China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

R&D Training & Development National Projects undertaken in 2024

The Company organizes specialized research training programs tailored to the specific needs of the rare earth industry. These

Key Technologies and Application Demonstration for Intelligent Preparation of High-Quality

initiatives are designed to foster a sustainable innovation ecosystem unlock the potential of science and technology talent enhance 1

employees’ independent innovation capabilities elevate research quality standards and continually upgrade technical competencies. Ce-Pr-Nd Alloys

2 Project Task 4 of Integrated Demonstration of Green and Efficient Development and Utilization of Baiyun Obo Polymetallic Resources

R&D-related Training and Knowledge-sharing Performance

R&D training and exchange Project Task 5 of Integrated Demonstration of Green and Efficient Development and R&D training and exchange participation

sessions 3

4225

Utilization of Baiyun Obo Polymetallic Resources

4 Metallurgical Process and Flake Structure Formation Mechanism of High-Quality Rapidly Solidified Strips

案Ca例se Study Training on Standardization Policies and Requirements for Standard Project Declaration 5 Preparation and Property Control of High-Stability Nano-Ceria Polishing Slurries

In December 2024 a comprehensive training course titled

Standardization Policies and Requirements for Standard

Project Declaration was conducted. This initiative significantly

enhanced participants’ understanding of standardization Technological Innovation Awards

policies and clarified the essential requirements for effective

project declaration. As a result participants experienced The Company has established itself as a formidable leader in the rare earth sector leveraging its exceptional technical expertise and

improved capabilities in establishing and declaring standard innovative spirit to engage in the research and development of advanced technologies. By effectively addressing critical technical

projects. Furthermore the training contributed to the challenges the Company has achieved a series of impactful research milestones that underscore its preeminent position and

development of a robust standardization talent pool and innovative capabilities within the industry. These accomplishments not only demonstrate the Company’s technical leadership but also

facilitated the high-quality construction of the national set a standard for high-quality development across the sector. In 2024 the Company garnered significant accolades including a first

technical standard innovation base reinforcing the importance prize and four second prizes of the Rare Earth Science and Technology Awards a first prize of the Science and Technology Awards of

of standardization in advancing technical excellence. the China Nonferrous Metals Industry and multiple awards from the National Rare Earth Standardization Technical Committee.案Ca例se We Receive the First Prize of the Science and Technology Awards of the Study

Chinese Non-ferrous Metal Industry

R&D Achievements The Company’s leadership in the development of the First Batch of Critical International Rare Earth Standards—Rare Earth Terminology Series has

earned it the prestigious first prize of the Science and Technology Awards

The Company has solidified its position as a leading innovator driving collaborative advancements in key technologies and advanced

of the Chinese Non-ferrous Metal Industry. This notable achievement

research. This strategic focus has yielded original high-quality technological achievements that reinforce our commitment to

significantly elevates China’s rare earth industry standards on the global

innovation. Through technological innovation we are poised to industrial innovation industries and enhance our core competitiveness.stage providing a robust foundation for the establishment and advancement

In 2024 our R&D portfolio highlights the execution of over 30 major projects including six national-level initiatives 25 projects aligned of relevant international standards. Consequently it fosters enhanced global

with Inner Mongolia’s Technology Breakthrough initiatives two municipal-level projects in Baotou and several internal priority projects collaboration and drives technological progress within the rare earth sector.that collectively underscore our strategic vision.

101 102China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

Transformation of R&D Achievements

Overview of Standards

The Company accelerates the transition from laboratory innovations to industrial applications by implementing a robust mechanism

for transforming scientific research achievements. This strategic approach ensures a seamless integration of research innovation

Total standards developed in the year

with industrial development.In 2024 the Company submitted applications for 176 patents comprising 134 inventions and 42 utility models. Notably the Thermal 56

Stabilizer of Ternary Complex of Rare Earth-Stearic Acid-8-Hydroxyquinoline and Its Preparation Method has been distinguished as

a recommended project for the Invention (Utility Model) Patent category in the 25th China Patent Award.International standards National standards Industrial standards

1182

Overview of Patents

Total patents authorized by the Total patents newly authorized

end of the year in 2024 New patent applications in 2024 Local standards Group standards Enterprise standards

6245

144

42

413 Technological Innovation Incentives958 531 150 176 The Company has implemented a robust patent reward and evaluation system designed to drive technological innovation. 51 This system encompasses Achievement Transformation Management Procedures and Innovation Performance Assessment

95 134 Guidelines alongside effective motivation mechanisms. Noteworthy initiatives include recognizing outstanding innovation units

awarding exceptional R&D teams and individuals and enhancing the professional prestige of researchers. As a result the

Company has achieved comprehensive technological breakthroughs across the entire industry chain significantly accelerating the

Inventions authorized Inventions authorized Invention applications commercialization of research outcomes and laying a strong foundation for new quality productive forces. In 2024 the Company

Utility models authorized Utility models authorized Utility model applications recognized 29 qualified patents and distributed a total of 85000 yuan in rewards.Industrial designs authorized Industrial designs authorized

Industrial designs applications0

IPR Protection

The Company rigorously complies with all relevant laws and regulations including the Trademark Law and the Patent Law of

the People’s Republic of China. We have established and refined the Northern Rare Earth Patent Management Procedures to

In 2024 the Company achieved notable advancements in technological innovation marking two core technology breakthroughs and strengthen our intellectual property (IP) management system. Our initiatives include implementing a comprehensive patent

the development of eight new processes and pieces of equipment. Additionally it successfully commercialized eight research and incentive and evaluation mechanism conducting regular IP protection training programs and motivating employees to innovate.development outcomes and formulated or revised 56 standards. These accomplishments underscore the Company’s commitment We are committed to enhancing technological innovation and upholding high standards of IP protection.to integrating technology with industry accelerating the transformation of research into practical applications and affirming its In 2024 we focused on developing a robust patent portfolio in smelting and separation technologies implementing a patent

leadership role in establishing China’s Two Rare Earth Bases. early-warning system in pyrometallurgy and significantly upgrading our IP management capabilities.

103 104China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

IPR Training Performance National Technical Committee for Baotou Energy Conservation

Standardization of Rare Earth (SAC/ Industry Association

TC229) associations

IPR protection training sessions IPR protection training participation IPR protection training duration

2 153 7 Inner Mongolia Society Baotou Rare Earth Hours of Rare Earths Industry Alliance

Association of Inner Mongolia Inner Mongolia Association for

Rare Earth Industry Public Companies

案Case Stu例dy Training on the High-quality Development of Intellectual Property

Ca

S案tu例se dy Northern Rare Earth Showcased on 2024 China Brand Day

In April 2024 the Company in collaboration with the BRIRE the

Technology Innovation Center for Rare Earth New Materials the In May 2024 the Company prominently showcased its

National Technical Standard Innovation Base (Rare Earth) and the innovations at the China Brand Day event held at the Shanghai

Inner Mongolia Autonomous Region High-value Patent Cultivation World Expo Exhibition and Convention Center. The exhibition

Center held a training course focused on advancing the high- featured an array of high-end application products including

quality development of intellectual property. This training course polishing solutions solid-state hydrogen storage systems

provided in-depth insights into essential topics including the and rare earth permanent magnet motors alongside notable

fundamentals of patents strategies for patent mining techniques scientific research advancements. Utilizing physical models

for patent application writing effective patent layout and the analysis of patent navigation applications. Such graphic displays video presentations and comprehensive

comprehensive training significantly enhances the professional capabilities of intellectual property management brochures the Company effectively elevated its brand image.personnel cultivates a strong awareness of intellectual property protection and fosters the effective transformation This multifaceted approach successfully garnered significant

and application of intellectual property. attention and engagement from diverse sectors of society.Industry Exchange and Cooperation

案Case Stu例dy China (Baotou) Rare Earth Permanent Magnet Motor and Rare

The Company is committed to advancing industry exchange and collaboration by strengthening ties with industry associations and Earth High-end Application Exhibition

external enterprises. By effectively integrating resources and expertise it promotes technological progress and catalyzes industry In August 2024 the Company showcased its prowess at the Second China (Baotou) Rare Earth Permanent Magnet

development. Furthermore the Company clarifies its brand value objectives refines its brand strategy and enhances its influence Motor and Rare Earth High-end Application Exhibition. The exhibition featured multiple designated areas including

through strategic partnerships all of which empower the sustainable growth of the rare earth industry. those for Northern Jiaxuan Northern Zhongjiate the Rare Earth Products Exchange and the National Innovation

Center. These comprehensive displays effectively highlighted the Company’s significant advancements in rare

earth permanent magnet motors and high-end rare earth applications thereby enhancing its brand recognition and

influence in the industry.Chinese Association for Quality

China Non-Ferrous Metals Industry

Association of China Association/Rare Earth Branch of China

Rare Earth Industry Non-Ferrous Metals Industry Association

The Chinese Society of Industry China Association for

Rare Earths associations Public Companies

105 106People Centered Growth

in Love 04

The Company is committed to integrating its business operations with a strong sense of social responsibility. Internally it embrac-

es a human resources philosophy that emphasizes the importance of character development and talent cultivation with the goal

of empowering individuals to achieve personal fulfillment while strengthening the enterprise and benefiting its employees. Exter-

nally the Company adheres to a harmonious development approach that focuses on accountability fulfilling societal obligations

and actively giving back to the community. This strategy not only serves the industry and local area but also fosters win-win

cooperation and collective progress thereby enhancing synergy between the enterprise its employees and society at large.Performance Highlights in 2024 Contribution to UN SDGs

Total employees Total training expenditure Occupational health Employee care and assistance

9867 4.8511 examination coverage expensemillion yuan 100% 1.2584million yuan

107 108China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

Rights and Interests of Employees

154417583

The Company prioritizes the protection of employees’ rights and interests continuously enhancing its salary and benefits system 1965

to ensure fair compensation for employees’ contributions. By actively implementing democratic management practices the

Company effectively safeguards employees’ legally entitled rights while fostering a collaborative environment. This commitment

not only promotes individual well-being but also drives the sustained and stable development of the Company. Employees

Employees by by education

Legal Employment level background

The Company demonstrates rigorous compliance with labor laws and ethical employment practices ensuring adherence to the

Labor Law and Labor Contract Law of the People’s Republic of China. It firmly upholds core employment principles prioritizing 7319

9296

equality diversity and inclusion in all human resources practices. Non-discrimination policies are enforced throughout the

Senior Management Three-year college or below

recruitment employment and promotion processes ensuring equal rights and development opportunities for every employee.Middle management Bachelor’s degree

The ethical compliance framework incorporates a strict zero-tolerance policy for child labor and forced labor guarantees equal

Other employees Master’s degree or above

pay for equal work regardless of gender and mandates employment contracts for all employees. In 2024 the Company reported

zero violations regarding child or forced labor and achieved full contract coverage for its workforce.Mainland China New employees

Staff Composition 9867 1284

Total employees Employees with special needs

9867 Employees with disabilities 208 Employees turnover rate Employment contract rate Percentage of local employees Social security rate 0.83% 100% 99.14% 100%

1286

22182626

Remuneration and Benefits

The Company is committed to establishing a comprehensive equitable and scientifically-designed compensation and benefits

Employees by Employees by system. This system effectively aligns rewards with corporate performance and individual contributions while allowing for

gender age group flexible adjustments to total compensation through rigorous evaluation and control. By fostering a transparent and appealing

remuneration environment the Company ensures market-competitive pay structures performance-linked incentive mechanisms

and sustainable compensation governance. Ultimately this strategic approach not only supports long-term organizational stability

but also enhances talent retention and motivation thereby driving shared success for both employees and the Company.

7649 5955 Types of Employee Benefits

Male 30 years old or below

Statutory social insurance (pension medical work injury maternity unemployment) housing

Female 30 - 50 years

Basic Benefits provident fund enterprise annuity and supplementary medical insurance.

50 years old or above

Paid leaves (national holidays full annual leave sick leave maternity/paternity leave nursing leave)

109 110China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

Performance metrics are ambitious targeting a 100% satisfaction rate in proposal responses strengthened quality control

through enhanced worker inspections and increased employee satisfaction through participatory management practices.*Employee accident mutual aid insurance and supplementary medical coverage

Additional

Benefits *Allowances (meal transportation winter heating) and festival/birthday gifts

案Ca例se The Third Session of the Third Workers’ Representative Study

Congress and the Fifth Session of the Third Members’ Congress

The Company successfully conducted the third session of the

Term-based performance incentives General Manager Reward Fund employee innovation third Workers’ Representative Congress and the fifth session of

improvement awards management innovation prizes and so on. the third Members’ Congress where representatives engaged

Incentive in a thorough evaluation of the Company’s leadership and the

Programs Monetary awards for model workers (all levels) outstanding Communist Party members master development of the Workers’ Home. Empowered by a profound

craftsmen advanced production workers Top Ten Outstanding Youths outstanding female sense of responsibility worker representatives actively contributed

employees and “Five-Virtue Civilized Family”

by sharing their experiences providing suggestions and offering

effective strategies tailored to their specific roles. This collaborative

effort reflects a commitment to advancing the collective goals of

Trade Union the Company as they embark on a promising new journey together.The Company prioritizes employee welfare leveraging the labor union to meticulously design and implement targeted welfare

programs. Through a range of initiatives the Company significantly enhances employees’ sense of value and satisfaction thereby

providing robust support for their holistic development. This commitment not only fosters a positive workplace culture but also

promotes overall success. Employee Development

The Company effectively implements a strategy centered on strengthening the enterprise with talents thereby aligning its

Trade Union Performance

efforts with the objectives of the 14th Five-Year Plan and the pursuit of high-quality development. By prioritizing the meticulous

introduction cultivation retention and utilization of talent the Company is committed to fostering a robust talent system and

mechanism. This approach not only enhances the Company’s operational capabilities but also ensures a strong talent backbone

Total trade union members Full-time trade union staff Number of trade union essential for establishing itself as a world-class leader within the rare earth industry. Furthermore it positions the Company as a

9867 23 24 key contributor to the construction of the Two Rare Earth Bases.

Talent Acquisition and Cultivation

Trade union satisfaction Rate of requests resolved by trade union Global Inclusion Collective Brilliance

99.23%100%

In 2024 the Company successfully recruited a total of 42 high-level talents comprising two

The Company is committed to enhancing its employee-centered democratic management system with implementation primarily

facilitated through the Workers’ Congress and the Open Factory Affairs Disclosure. Key initiatives include regular operational doctoral degree holders 20 master’s graduates and 20 undergraduates. Notably the influx

briefings which promote transparency and an efficient proposal handling process via the Workers’ Congress. Additionally the of graduates from Double First-Class universities has doubled.establishment of multi-channel communication platforms empowers employees while safeguarding their rights to information

participation and oversight.

111 112China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

Sound Environment Talent Blossoming The Company demonstrates a strong commitment to recognizing and promoting exceptional professionals

The Company has developed robust talent cultivation employment and incentive mechanisms. By fostering an environment of through various prestigious awards at multiple levels including national autonomous region and municipal levels.genuine support and implementing practical measures it effectively empowers a diverse range of talents providing them with

expansive opportunities for innovation and creativity. In 2024 notable achievements in talent cultivation included the selection of one expert

for the National Master Craftsman Development Program at the national level. At the

Special Actions for Talent Cultivation autonomous region level accolades included one Outstanding Contribution Expert one

Young Innovation Talent one Western Light Visiting Scholar and one candidate for the

Special Action for We enhance collaboration with prestigious domestic higher education institution. By jointly offering master’s Baotou Craftsman Development Initiative. Furthermore there are pending nominations

Improving Educational degree programs in key disciplines and facilitating the pursuit of doctoral degrees for exceptional technical

Attainment for four candidates for the Leading Innovation Talent Awards two for the Young Elite

personnel we will continuously elevate the knowledge and educational qualifications of our workforce.Talent Awards three for the Government Special Allowance and 18 specialists within

Special Action for We are committed to the principle of bringing in experts and sending out employees for learning. By

implementing diverse strategies we will facilitate knowledge renewal and expand the perspectives of talent at all the Key Advanced Materials Field.Improving Innovation

Ability levels.Special Action We develop and implement robust selection cultivation and training mechanisms for Baiyun Scholars Chief Rarefor “Head Geese Earth Scientists Professional Scientists and Rare Earth Craftsmen. This initiative will significantly enhance theNavigation” development of local top-tier talent.案Ca例se Study The Company Released the Vocational Skill Standard Filling a Gap in the IndustrySpecial Action for We enhance the cultivation of key talents reinforcing the core competencies of R&D and technical professionals

Cultivating Outstanding

Engineers to establish a powerful driving effect. To effectively address the demands of

establishing a world-class leader in the

We implement systematic job attachments and practical training that foster strong connections between

Special Action for rare earth industry and to advance the

Multi-dimensional the Company and its branches/subsidiaries as well as between research institutions and production teams. development of the Two Rare Earth

Practical Training of This approach facilitates meaningful engagement between upstream and downstream technical processes.Outstanding Talents Consequently it enables young professionals to expand their perspectives refine their skills and develop Bases the Company has developed

holistically across various domains. and published the Vocational Skill

Standard of Northern Rare Earth for

the first time. This bridges a significant

Talent Cultivation Initiatives gap in vocational skill standards within

China’s rare earth sector offering

essential support for the cultivation and

evaluation of skilled professionals in

rare earth enterprises.Management Talent Technical Talent Emerging Talent

Empowerment Project Revitalization Project Pipeline Project

The Innovation-Driven Leadership We optimize the professional technical We strive to build an emerging talent

Enhancement Program is designed tack to ensure comprehensive coverage ecosystem which comprises a dynamic

to expand our talent pipeline through for all technical career paths. We reserve database tailored for young

foundational training. The Colt Program implement robust accountability professionals. It features customized Case

focuses on identifying and nurturing systems that include responsibility growth roadmaps a technical S案tu例dy The Company Has Become an Autonomous Region-level High-skilled Talent Training Base

promising young high-potential contracts a merit-based Challenge competency mining system and a

individuals. A robust Secondment Reserve List for assignments and military-style talent-friendly culture that actively In April 2024 the Department of Human Resources and Social Security along with the Department of Finance of the

Program ensures we have a rotation- commitment pledges. Additionally a fosters rapid advancement. These

ready talent pool. Furthermore the Steed dual-contract compensation model is components are designed to optimize Inner Mongolia Autonomous Region announced the List of Entities for the Construction of Autonomous Region-Level

Program aims to develop a strong core established combining a base salary the development and success of High-Skilled Talent Training Bases and Skill Master Studios. The Company is proud to be designated as a high-skilled

of middle management while the Stallion with performance-based incentives emerging talent.Program cultivates expertise among and project-completion bonuses. This talent training base at the regional level. With a focus on developing the Two Rare Earth Bases we are committed

subject-matter specialists. Together strategic approach fosters accountability to cultivating a highly skilled workforce and enhancing our employee education and training programs to optimize

these initiatives create a comprehensive and excellence within our technical operational effectiveness.framework for leadership development workforce.within our Company.

113 114China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

Precision Deployment Better Growth Employee Training

The Company firmly adheres to the principles of hierarchical and needs-based training. It implements a comprehensive employee

Promotion Channels training program that encompasses diverse formats while establishing a standardized training management system thereby

creating a distinctive training framework. It also intensifies its focus on training and certification for skilled personnel which leads

The Company has implemented a comprehensive Employee Career Pathway System designed to optimize the potential and to a gradual increase in the overall number of high-skilled professionals. This proactive approach accelerates the knowledge

expertise of every individual. This initiative fosters an environment where all talents are effectively utilized and specialized skills renewal process for these individuals equipping them to meet the demands of production operational efficiency technological

are strategically aligned to enhance overall success. innovation process transformation and industrial optimization.To further enhance learning motivation and maximize training effectiveness the Company employs various methods including

the Cloud Classroom platform partnerships with educational institutions on-site developmental assignment benchmarking with

Management Track (Sequential promotion levels) leading enterprises the mentor-apprentice system and targeted single-point lessons. These initiatives collectively foster a culture

of continuous learning and skill enhancement.C D E FA B

Employee training performance

Technical Track

Total training expenditure Total training sessions Total participation

Regional Technical Professional Regional Technical Senior Technical

Chief Technical

Technical Expert Expert

Technical Assistant 4.8511million yuan 336 32988Specialist Supervisor Technical SupervisorSupervisor

R&D Track

Average training duration per Average training duration per Average training duration per

Senior Researcher Distinguished Associate Lead

Researcher Lead Researcher

Chief Researcher

Researcher employee senior manager middle managerAssistant Researcher Researcher

117Hours 182Hours 90Hours

Business Track

Business Senior Business Business Chief Business Business Business Average training duration per

Business Associate Manager Manager Director Director Percentage of employees covered by training Specialist Supervisor

average employee programs

Skilled Trades Track 79Hours 98%

Chief Skill

Intermediate Senior Master

Senior Master Operations Skill Master Master Case

Junior Technician Technician Technician Technician Expert S案tu例dy Special Training Sessions for Improving the Competencies of Middle and Senior Management PersonnelTechnician

From July to December 2024 the Company successfully conducted

13 specialized training sessions aimed at enhancing the competencies

of middle and senior management personnel. These sessions featured

Talent Reserve esteemed external experts and notable scholars alongside key

personnel from various professional disciplines within the Company.The Company has instituted the Reserve Talent Cultivation and Selection Management Procedures to develop a robust multi- The curriculum covered a wide range of important topics including

policy interpretation trends in the rare earth industry strategic

layered talent pipeline. This initiative incorporates a comprehensive selection mechanism comprising bottom-up nominations

planning leadership in Party building corporate culture human

from business units and open merit-based competitions for specialized roles. The talent pool is structured in tiers by

resource management managerial philosophy lean management risk

organizational level complemented by specialized cohorts in various professional fields. Our cultivation methodology emphasizes

control the integration of business and finance digital transformation

early-stage identification multi-channel development through rotations and mentoring and dynamic assessment via regular and rare earth production processes. A total of 1950 participants

performance reviews. The strategic outcomes of this approach include a balanced talent structure across generations and a engaged in this training resulting in significant improvements in the management team’s capabilities. This initiative not

sustainable leadership pipeline that ensures continuity from junior to senior roles. only elevated work quality and efficiency but also broadened perspectives thereby fostering the high-quality development

of the enterprise.

115 116China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

The Company is committed to fostering professional growth among its employees by encouraging the attainment of various Mental and Health Wellbeing

professional credentials. These include vocational skill certifications professional title qualifications and practitioner licenses. Our

strategic focus centers on the continuous enhancement of technical competencies and the holistic development of professionals. The Company implements a comprehensive employee health and safety program that underscores its commitment to

workplace safety and employee well-being. This program includes a robust health monitoring system featuring annual routine

health checkups for all employees and specialized occupational hazard examinations for high-risk positions achieving a 100%

案Ca例se Study The Vocational Skill Level Assessment Examination in 2024 compliance rate in workplace hazard factor testing. To ensure safety the Company regularly distributes certified protective

From July to October 2024 the Company successfully hosted the equipment and maintains on-site emergency medical resources including CPR training manikins and essential emergency

2024 Vocational Skill Level Assessment Examination with over medications. Additionally wellness initiatives such as mental health workshops and confidential counseling services provide

800 employees participating. The examination encompassed 40 essential support for employees. The strategic outcomes of this program include enhanced self-rescue capabilities among

distinct occupations including roles such as rare earth extraction employees comprehensive support for both physical and mental well-being and a strengthened foundation for sustainable

workers rare earth permanent magnet material workers industrial operations.wastewater treatment specialists and safety officers. Notably the

overall pass rate reached an impressive 71.62%. During this period

the Company also provided proactive support to ensure that each

unit efficiently accessed subsidies for skill level enhancement

thereby streamlining the vocational skill level assessment process

across the Company.Occupational Health

The Company is unwavering in its commitment to safeguarding the occupational health of its employees. It continuously

enhances its occupational health management policies and has established a comprehensive system for safety and health

management. By cultivating a safe healthy and comfortable working environment the Company effectively promotes its

occupational health initiatives and ensures the physical and mental well-being of all staff members. In 2024 the Company Standards for Wearing PPEs Occupational Hazard Warning Signs

allocated a dedicated fund of 3.0621 million yuan toward advancing occupational health initiatives.Occupational Health System S案Catu例se dy Special Training on Improving the Work-related Injury Prevention

The Company rigorously complies with pertinent laws and regulations notably the Law of the People’s Republic of China on the In May 2024 the Company conducted two specialized

Prevention and Control of Occupational Diseases. It has developed the Implementation Rules for Safety Management (Occupational training sessions aimed at enhancing the capability of

Health) to continuously enhance and refine its occupational health and safety management system. This commitment has led to employees to prevent work-related injuries. These sessions

the establishment of a comprehensive occupational health protection framework and the formation of a dedicated committee for focused on critical aspects including pertinent laws and

the prevention and control of occupational diseases ensuring the effective execution of preventive measures. regulations related to workplace safety comprehensive

understanding of work-related in jury prevent ion

identification of occupational hazards and effective

emergency response measures for handling injuries. The

training also included practical instruction on essential skills

In 2024 the Company successfully passed an external audit for its occupational such as cardiopulmonary resuscitation (CPR) the Heimlich

health and safety management system certification. Notably the Company and its 19 maneuver and wound care. By integrating theoretical

affiliates at a rate of 83.3% are covered by ISO 45001:2018 certification. knowledge with hands-on practice this initiative significantly improved employees’ awareness and competence in

injury prevention. Consequently this proactive approach effectively mitigated the occurrence of workplace accidents

at their source thereby fortifying the “safety net” for employees and establishing a robust foundation for achieving

Certificate of Occupational Health excellence in the rare earth industry.and Safety Management System

117 118China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

案Case Stu例dy Stress Relief and Emotional Adjustment - Mental Health Workshop 案Ca例se Study Sending Care during the Spring Festival

In October 2024 the Company successfully organized a mental health workshop centered on stress management and

During the Spring Festival Company leaders actively

emotional regulation employing interactive strategies to promote employee well-being. The workshop featured visual

engaged with various teams to convey their support to

discussion sessions with image-based activities personalized psychological assessments to evaluate stress levels and

numerous cadres and employees across Baotou. These

practical sharing of coping strategies for emotional adjustment. As a result participants demonstrated improved skills

included personnel from the Xi'aoke Ruixin Tianjiao

in stress identification enhanced self-regulation capabilities and a significantly strengthened workplace culture.Qingmei Northern Jiaxuan Huaxing Rare Earth Jinmeng

Jingrui Hefa the Production Dispatching Command

Center and the International Trading. Furthermore the

leaders extended their well-wishes to exemplary workers

Occupational Health Performance distinguished individuals and those facing hardships

affirming the Company’s commitment to its staff and

offering heartfelt Spring Festival blessings.Occupational health examination Incidence rate of occupational Work safety liability insurance

coverage rate health problems coverage rate

100% 0% 100% 案Ca例se Study Combating Heat Delivering Care Boosting Morale

In July 2024 Company executives conducted a visit to

Hefa and Ruixin to distribute summer cooling supplies.Employee Life This initiative not only provided essential relief but also recognized the dedication of frontline workers who

persistently endure extreme high temperatures. The

The Company is dedicated to fostering a supportive and harmonious workplace environment. It prioritizes the well-being of

executives’ engagement underscores the Company’s

employees particularly in safeguarding the rights and interests of female staff. Additionally the Company regularly implements

commitment to employee well-being and operational

diverse cultural and athletic activities significantly enhancing employees’ sense of happiness and belonging within the Company.excellence.Employee Care

The Company is unequivocally committed to ensuring the welfare of its employees by fostering an environment that prioritizes

Case

their quality of life. It places significant emphasis on supporting vulnerable groups and those facing difficulties thereby S案tu例dy Doing “Food-related” Things for Employees

enhancing employees’ sense of identity belonging and overall well-being. Through tangible initiatives the Company conveys its

dedication to employee care. In October 2024 the Smelting Branch (Huamei)

undertook a comprehensive upgrade of its staff

Notably it consistently promotes programs such as Doing Practical Things for People and You Propose I Do. In 2024 the cafeteria enhancing both the menu and service quality.Company disbursed over 6 million yuan to successfully execute more than 200 “good deeds”. Furthermore it has allocated more This initiative was driven by a commitment to address

than 1 million yuan to improve the production and living environments of its workforce. employees’ nutritional safety health and culinary

preferences in accordance with seasonal demands.Additionally the cafeteria implemented the Two Frees

Employee Care Performance and One Subsidy policy which includes complimentary

porridge and pickled vegetables for all employees at

breakfast. For those in need lunch subsidy coupons

Employee care and assistance Employees covered by assistance per

were distributed and a Convenient Kitchen was

1.2584 100 million-yuan of revenue established to support single employees and those million yuan 0.39 working overtime thereby reinforcing the Company’s

dedication to employee welfare and fostering a sense

of communal care.

119 120China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

Female Staff Protection 案Ca例se Study Mid-Autumn Festival Networking Activity

In September 2024 the Company held the Mid-

The Company prioritizes the protection of female employees’ rights and

Autumn Festival networking activity themed Full

interests by rigorously adhering to the Special Collective Contract for the

Moon Brings People Together. It built a platform

Protection of Female Employees’ Special Rights and Interests. Compliance

for young employees to showcase themselves

with the state-mandated policy is meticulously enforced ensuring that female

make friends and seek romantic relationships. This

employees receive essential benefits including maternity leave breastfeeding

activity fully demonstrated the vibrant healthy

leave and regular gynecological examinations as stipulated by law.and positive spiritual outlook of young employees

Additionally the Company actively fosters an equitable and inclusive workplace

in the Company enhanced the young employees’

by hosting events for female employees on International Women’s Day thereby

sense of gain and happiness and enabled them

reinforcing its commitment to creating a supportive and friendly environment Theme Activities on International to contribute their youthful strength to the high-

for all. Women’s Day quality development of the enterprise.Employee Activities

Case

The Company systematically organizes a diverse range of cultural and sports activities aimed at enhancing enterprise cohesion S案tu例dy Themed Fun Sports Meeting

and cultivating a strong sense of belonging among employees. In 2024 a total of 63 activities of varying levels and types were

successfully implemented to achieve these objectives. In November 2024 the Company organized the

themed fun sports meeting titled Gathering

Hearts Forg ing the Soul Demonstrat ing

Responsibility and Pooling Strength for the Fourth

Number of Employee Activities - Quarter Push. Over 100 employees from 11

units enthusiastically joined in. This event served

a dual purpose. It provided employees with a

Number of sports and cultural Number of employee activities of chance to unwind physically and mentally while

activities for employees other types simultaneously reigniting their fighting spirit and

63 75 elevating their morale. As a result they are now primed to fully immerse themselves in production

operation and construction endeavors armed with

a more passionate work ethic and a harmonious

stable work mindset.S案Catu例se dy Strengthening National Unity and Advancing Dual Rare Earth Bases - Wellness Walk

In June 2024 the Company successfully organized

a themed wellness walk aimed at promoting

awareness of Chinese national community

consciousness and reinforcing our pivotal role as

fundamental builders of China’s Two Rare Earth

Bases. The event yielded several key outcomes:

it enhanced cross-ethnic collaboration among

employees revitalized team morale and mental

focus and strengthened engagement in production

operat ions . These resul ts underscore our

commitment to fostering a cohesive and motivated

workforce.

121 122Social Responsibility in

Common Prosperity 05

The Company robustly embraces core socialist values and aligns its initiatives with the rural revitalization strategy engaging in

social welfare activities. As it advances its own growth the Company commits to societal contributions equitably distributing its

developmental gains and fulfilling its social responsibilities thereby exemplifying the ethos of a state-owned enterprise.Performance Highlights in 2024

Contribution to UN SDGs

Rural revitalization expenditure Public welfare expenditure Volunteering duration

5.3941million yuan 1.2245 million yuan 3128Hours

123 124China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

Rural Revitalization Support

The company has implemented a robust labor initiative arranging for ten individuals from three

The Company is fully committed to advancing the rural revitalization strategy focusing on infrastructure improvement industrial supported natural villages to gain employment in its metal workshop.support and the modernization of agriculture. By tailoring initiatives to local conditions we promote rural economic revitalization In a decisive move towards consumption-based assistance the company demonstrated its commitment

and livelihood improvement actively supporting sustainable rural development through a range of diversified efforts. In 2024 the during the New Year’s Day and National Day holidays by purchasing over 1435 kilograms of mutton

Company disbursed a total of 5.3941 million yuan in rural revitalization initiatives. and 12500 kilograms of potatoes from these villages amounting to a substantial total value of 111000 Gansu

yuan. Additionally the company’s employees facilitated the acquisition of agricultural and sideline

Rare Earth products worth 38000 yuan through the resident working teams in the villages. These efforts have

effectively enhanced sales channels for local produce thereby increasing farmers’ incomes and

Rural Revitalization Performance bolstering their motivation for agricultural activities.Furthermore the donation of 60 high-quality solar streetlamps to Zhangli Village has significantly

improved rural road lighting contributing to a safer and more welcoming environment for elderly

Rural revitalization expenditure Number of people covered Number of people covered by assistance residents women and children.

5.3941 by assistance per 100-million yuan of revenue million yuan 9141 28

Public Welfare

The Company is deeply committed to rural revitalization and enhancing farmer income through an array of strategic initiatives.Key components include continuous rural infrastructure improvement multi-faceted poverty alleviation efforts encompassing The Company actively advances social welfare initiatives through charitable programs and volunteer services. Charitable

industrial support projects and employment assistance programs and measures for sustainable economic stabilization. donations help people in need and on-going volunteer services help strengthen community resilience. These measures promote

Additionally the talent support program facilitates the annual deployment of elite cadres to villages focusing on industrial social welfare support community development and demonstrate the Company’s SOE leadership in social responsibility.revitalization environmental enhancements and Party building initiatives that foster agricultural development.Social Welfare Performance

Rural Revitalization Measures Social contribution events Public contribution event Social contribution duration

94 participation 1688Hours

A new 26.3-kilometer high-voltage line (10kV) and a 5.14-kilometer low-voltage line (0.4kV) have been 637

Northern successfully constructed for Bayin Hala Gacha located in Mandula Town Darhan Muminggan Joint

Rare Earth Qi which is situated over 20 kilometers from the national border. Additionally 13 transformers were

Number of volunteer services Volunteer service duration

installed to adequately meet the electricity demands of 16 herdsmen households. Volunteer service participation

326 3697 3128Hours

The company conducted a themed initiative entitled Advancing Hand in Hand to Build a New Rural

Dream: Internet-based Joint Event for Rural Revitalization. This initiative included the procurement Public welfare expenditure

Huamei of essential goods and educational materials which were subsequently donated to local schools and

families in need. Such efforts significantly enhance the educational opportunities and daily living 1.2245million yuan

conditions for rural children.

125 126China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

案Ca例se Delivering Warmth and Compassion 案Case Study Stu例dy Regular Public Welfare Service in the Paired Community

In March 2024 the Company successfully In 2024 the Company consistently engaged in public

conducted a charity visit to the Baotou Welfare welfare initiatives within its partnered community. Each

Center where it provided essential supplies. month over 100 volunteer employees dedicated their

Additionally it implemented targeted support efforts to services such as community clean-up and

to address children’s specific needs and offered promoting civic awareness in the 15th Neighborhood of

emotional care programs featuring interactive Tuanjie Community Kunqu District Baotou City. Their

activities and companionship. The Company contributions significantly advanced the establishment

actively champions the Lei Feng spirit effectively of a civilized city clearly demonstrating the social

encouraging Party members and young members responsibilities inherent to a state-owned enterprise

of the Communist Youth League to develop a through tangible actions.profound sense of social responsibility. It inspires

these individuals to translate their lofty ideals and

moral pursuits into tangible actions positioning

them as engaged participants advocates and The Company has effectively promoted the volunteer service brand Turn to ‘Xiaoxi’ When in Need by establishing a robust and

disseminators of social welfare initiatives. sustainable framework for volunteer initiatives. This effort has expanded the scope and significance of volunteer services while

increasing the brand’s recognition and popularity. Currently the Company has eight volunteer service sites 25 dedicated teams

and over 1100 committed volunteers demonstrating its strong commitment to community engagement and social responsibility.Volunteer Service Performance

案Case Stu例dy Sustaining Life and Conveying Goodness

Number of volunteer services Volunteering duration Volunteer service participation

An employee from Zibo Lingzhi has successfully donated hematopoietic stem cells to an overseas Chinese. This

selfless act exemplifies the commitment and sense of responsibility displayed by young professionals within the 326 3128Hours 3697

rare earth industry in the contemporary era. Moreover it underscores the company’s robust support and proactive

engagement in social welfare initiatives.Turn to ‘Xiaoxi’ When in Need - Volunteering Service Brand

127 128China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

案Ca例se Study Welcoming the 70th Anniversary of the Company Demonstrating

Responsibility through Youth Volunteer Service Outlook

In March 2024 the Company executed a themed volunteer service initiative titled Welcoming the 70th Anniversary

of the Company Demonstrating Responsibility through Youth Volunteer Service by Bringing Fire Safety into the

Community. This initiative involved the donation of essential fire-fighting equipment to the community accompanied

by educational sessions that outlined usage protocols and pertinent safety information. Furthermore practical drills

In 2025 we will align Company’s operations with Xi Jinping Thought on Socialism with Chinese Characteristics for a

on emergency self-rescue techniques were implemented. This multifaceted approach not only fostered deeper

New Era ensuring a comprehensive implementation of national policies pertaining to the rare earth industry and other

communication and connection with the community but also significantly enhanced the Company’s corporate image. major strategic initiatives. Committed to a new trajectory of high-quality development we will prioritize ecological

protection and green development. By taking a proactive leadership role we will serve as a model for the green

transformation and high-quality advancement of the rare earth sector setting a benchmark for sustainable practices.We will capitalize on the historic opportunities offered by the “dual carbon” goals. By strategically leveraging our

competitive advantages and driving innovation through technological advancements we will expedite the development

of high-quality productive forces. Furthermore we are committed to advancing high-quality green technologies to

provide low carbon choices in climate change responses. We are dedicated to enhancing resource utilization markedly

decreasing energy consumption and pollutant emissions. Through these efforts we are guiding the rare earth industry

toward elevated intelligent and sustainable development. This strategic direction provides robust support for the

nation’s pursuit of its “dual carbon” objectives reinforcing our commitment to environmental stewardship.We remain steadfast in fulfilling our social responsibilities by emphasizing employee well-being and continually

enhancing our talent development ecosystem. We actively participate in public welfare initiatives including rural

revitalization and community co-development. These efforts reflect our dedication as a state-owned enterprise to the

principle of serving the people. Through these initiatives we are contributing to the establishment of a harmonious

society and demonstrating our commitment to sustainable development.S案Ca例se tudy All Ethnic Groups as One Unified Family Aspiring to be Like Pomegranate Seeds

We are committed to advancing the reform of state-owned enterprises by refining a modern corporate structure tailored

In September 2024 the Company conducted a volunteer service to Chinese characteristics and enhancing governance practices to uphold standardized operations and promote market

value increase. We will reinforce the integration of Party leadership within corporate governance implementing robust

activity titled All Ethnic Groups as One Unified Family Aspiring

internal control systems that adhere to elevated standards. Furthermore we will drive innovations in management

to be Like Pomegranate Seeds within the framework of civilized to bolster our compliance capabilities. Through these initiatives we assure that decision-making processes are well-

practice. Volunteers engaged with passers-by community informed and grounded execution remains resolute and effective and oversight is comprehensive and meticulous. This

residents and students in a Party building-themed park by strategic approach will create more value for shareholders.distributing posters that promoted ethnic unity. This initiative

Looking forward we will collaborate with partner to promote technological innovation and industrial reform to pioneer

significantly strengthened the bonds among employees from a new era of sustainable development within the rare earth industry demonstrating even greater determination and

diverse ethnic backgrounds by highlighting exemplary instances a more pragmatic approach in our endeavors. We are committed to delivering exceptional products and services that

of ethnic solidarity. Furthermore it effectively encouraged both positively impact society yield remarkable returns for our shareholders and engage collaboratively with stakeholders to

employees and community members to unite and support one fully integrate ESG principles. By enhancing our management standards and performance accountability we aspire to

another thereby enhancing their collective sense of identity achieve new milestones in our mission to build the Two Rare Earth Bases propel our transformation into a world-leader

in the rare earth sector and drive high-quality development. This endeavor represents a significant milestone and a

and pride in the Chinese nation.transformative advancement in our journey toward excellence.

129 130China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

Appendix Index of GRI Sustainability Reporting Standards issued by Global Sustainability Standards Board

(GSSB)

Index ofIndicators GRI

Disclosure Section in this Report

Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of Listed Companies— Standard

Sustainability Report (Trial) GRI2:General Disclosures

Dimension Number Topic Section in this Report 2-1 Organization details About Northern Rare Earth

1 Climate change tackling Climate Change 2-2 Entities included in the organization’s sustainability reporting About this Report

2 Pollutant discharge Pollution Prevention and Control 2-3 Reporting period，frequency and contact About this Report

3 Waste disposal Pollution Prevention and Control 2-4 Restatements of information /

4 Ecosystem and biodiversity protection Green Living 2-5 External assurance /

Environment

5 Environmental compliance management Ecological Environment Management 2-6 Activities value chain and other business relationships About Northern Rare Earth

2-7 Employees Rights and Interests of Employees

6 Energy usage Resource Efficiency

2-8 Workers who are not employees /

7 Usage of water resources Resource Efficiency

2-9 Governance structure and composition Governance Effectiveness

8 Circular economy Resource Efficiency

2-10 Nomination and selection of the highest governance body Governance Effectiveness

9 Rural revitalization Rural Revitalization Support

2-11 Chair of the highest governance body Governance Effectiveness

10 Contributions to the society Public Welfare Role of the highest governance body in overseeing the

2-12 Governance Effectiveness

11 Innovation-driven Technological Innovation management of impacts

2-13 Delegation of responsibility for managing impacts Governance Effectiveness

12 Ethics of science and technology /

2-14 Role of the highest governance body in sustainability reporting ESG Management

13 Supply chain security Green Procurement Practices

Society 2-15 Conflicts of interest /

Equal treatment to small and medium-sized

14 Compliant Operations

enterprises 2-16 Communication of critical concerns Rights and Interests of Shareholders

15 Safety and quality of products and services Product Quality 2-17 Collective knowledge of the highest governance body ESG Management

2-18 Evaluation of the performance of the highest governance body /

Data security and customer privacy

16 Responsibility for Customers

protection 2-19 Remuneration policies /

People Centered Growth in Love

17 Employees 2-20 Process to determine remuneration /

Safety Bottom Line

2-21 Annual total compensation ratio /

18 Due diligence Management

2-22 Statement on sustainable development strategy ESG Managemen

Sustainability 19 Communications with stakeholders Management 2-23 Policy commitments ESG Managemen

related

Corruption-free Organization

governance 20 Anti-commercial bribery and anti-corruption

Business Ethics 2-24 Embedding policy commitments /

21 Anti- unfair competition Business Ethics 2-25 Processes to remediate negative impacts /

131 132China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

GRI GRI

Disclosure Section in this Report Disclosure Section in this Report

Standard Standard

2-26 Mechanisms for seeking advice and raising concerns / 301-1 Materials used by weight or volume /

2-27 Compliance with laws and regulations Compliant Operations 301-2 Recycled input materials used Resource Efficiency

2-28 Membership associations / 301-3 Renewable products and their packaging materials Resource Efficiency

2-29 Approach to stakeholder engagement ESG Management 302-1 Energy consumption within the organization Resource Efficiency

2-30 Collective bargaining agreements / 302-2 Energy consumption outside the organization /

3-1 Process to determine material topics ESG Management 302-3 Energy intensity Resource Efficiency

3-2 List of material topics ESG Management 302-4 Reduction of energy consumption /

3-3 Management of material topics ESG Management 302-5 Reductions in energy requirements of products and services Resource Efficiency

201-1 Direct economic value generated and distributed About Northern Rare Earth 303-1 Interactions with water as a shared resource Resource Efficiency

Financial implications and other risks and opportunities due to

201-2 Climate Change 303-2 Management of water discharge-related impacts Resource Efficiency

climate change

303-3 Water withdrawal Resource Efficiency

201-3 Defined benefit plan obligations and other retirement plans Rights and Interests of Employees

303-4 Water discharge Resource Efficiency

201-4 Financial assistance received from government /

303-5 Water consumption Resource Efficiency

Ratios of standard entry level wage by gender compared to local

202-1/

minimum wage Operational sites owned leased managed in or adjacent to

304-1 protected areas and areas of high biodiversity value outside Green Living

202-2 Proportion of senior management hired from the local community / protected areas

203-1 Infrastructure investments and services supported /

Significant impacts of activities products and services on

203-2 Significant indirect economic impacts Rural Revitalization Support 304-2 /biodiversity

204-1 Proportion of spending on local suppliers /

304-3 Habitats protected or restored Resource Efficiency

205-1 Operations assessed for risks related to corruption /

IUCN Red List species and national conservation list species with

Communication and training about anti-corruption policies and 304-4 /

205-2 / habitats in areas affected by operation

procedures

305-1 Direct /Scope 1 GHG emissions Climate Change

205-3 Confirmed incidents of corruption and actions taken /

305-2 Energy indirect /Scope 2 GHG emissions Climate Change

GRI206:Anti-competitive behaviour

305-3 Other indirect /Scope 3 GHG emissions Climate Change

Legal actions for anti-competitive behaviour anti-trust and

206-1 Compliant Operations

monopoly practices 305-4 Intensity of GHG emissions Climate Change

207-1 Approach to tax Compliant Operations 305-5 Reduction of GHG emissions /

207-2 Tax governance control and risk management Compliant Operations 305-6 Emissions of ozone-depleting substances /ODS /

207-3 Stakeholder engagement and management of concerns related to tax / Nitrogen oxides /NOX Sulfur oxides /SOX and other significant

305-7 Pollution Prevention and Control

air emissions

207-4 Country-by-country reporting /

133 134China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

GRI GRI

Disclosure Section in this Report Disclosure Section in this Report

Standard Standard

306-1 Waste generation and significant waste-related impacts / 406-1 Incidents of discrimination and corrective actions taken /

306-2 Management of significant waste-related impacts Pollution Prevention and Control

Operations and suppliers in which the right to freedom of

407-1/

306-3 Waste generated Pollution Prevention and Control association and collective bargaining may be at risk

306-4 Waste diverted from disposal Pollution Prevention and Control Operations and suppliers at significant risk for incidents of child

408-1/

labour

306-5 Waste directed to disposal Pollution Prevention and Control

Operations and suppliers at significant risk for incidents of forced

308-1 New suppliers that were screened by using environmental criteria Green Procurement Practices 409-1 /

or compulsory labour

Negative impacts of the supply chain on the environment and

308-2/

actions taken 410-1 Security personnel trained in human rights policies or procedures /

401-1 New employee hires and employee turnover Rights and Interests of Employees

411-1 Incidents of violations involving rights of indigenous peoples /

Benefits provided to full-time employees that are not provided to

401-2 Rights and Interests of Employees

temporary or part-time employees Operations with local community engagement impact assessments 413-1 Topic

and development programs

401-3 Parental leave Rights and Interests of Employees

Operations with significant actual and potential negative impacts

402-1 The shortest notice periods regarding operational changes / 413-2 /on local communities

403-1 Occupational health and safety management system Occupational Health

414-1 New suppliers that were screened using social criteria Green Procurement Practices

403-2 Hazard identification risk assessment and incident investigation Safety Bottom Line

403-3 Occupational health services Occupational Health 414-2 Negative social impacts in the supply chain and actions taken /

Worker participation consultation and communication on

403-4 Occupational Health 415-1 Political contributions /

occupational health and safety

403-5 Worker training on occupational health and safety Safety Bottom Line Assessment of the health and safety impacts of product and 416-1 Product Quality

service categories

403-6 Promotion of worker health Occupational Health

Incidents of non-compliance concerning the health and safety

416-2/

Prevention and mitigation of occupational health and safety impacts of products and services

403-7/

impacts directly linked by business relationships

417-1 Requirements for product and service information and labelling Technological Innovation

404-1 Average hours of training per year per employee Employee Development

Programs for upgrading employee skills and transition assistance Incidents of non-compliance concerning product and service

404-2 Employee Development 417-2 /

programs information and labelling

Percentage of employees receiving regular performance and career 417-3 Incidents of non-compliance concerning marketing communications /

404-3/

development reviews

Substantiated complaints concerning breaches of customer privacy

Governance Effectiveness 418-1 /

405-1 Diversity of governance bodies and employees and losses of customer data

Rights and Interests of Employees

405-2 Ratio of basic salary and remuneration of women to men /

135 136China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

Reference of ESG Indicators System for ESG Reports of Listed Companies Controlled by Tier 1 Indicator Tier 2 Indicator Tier 3 Indicator Section in this Report

Central State-owned Enterprises issued by State-owned Assets Supervision and Administration E.2.3.2Management of general industrial

Commission of the State Council Pollution Prevention and Controlsolid waste

E.2Pollution E.2.3.3General industrial solid waste

prevention and E.2.3Solid waste Pollution Prevention and Controldisposal

treatment

Tier 1 Indicator Tier 2 Indicator Tier 3 Indicator Section in this Report E.2.3.4Management of hazardous waste Pollution Prevention and Control

Environmental E.2.3.5Hazardous waste disposal Pollution Prevention and Control

E.1.1.1Fresh water consumption Resource Efficiency E.3.1.1GHG sources and types Climate Change

E.3.1.2Management of GHG emissions Climate Change

E.1.1Water E.1.1.2Recycled water consumption Resource Efficiency

resources E.1.1.3 Proportion of recycled water consumption / E.3.1.3Scope 1 emissions Climate ChangeE.3.1GHG emissions

E.1.1.4Intensity of water consumption / E.3.1.4Scope 2 emissions Climate Change

E.1.2.1Non-renewable materials consumption / E.3.1.5Scope 3 emissions Climate Change

E.1.2Materials E.1.2.2Toxic and hazardous materials consumption / E.3.1.6Intensity of GHG emissions Climate Change

E.1.2.3Intensity of materials consumption / E.3.2.1Reduction management of GHG

E.1Resources E.3Climate E.3.2Reduction

Climate Change

emissions

consumption E.1.3.1Fossil energy consumption Resource Efficiency change management E.3.2.2Reduction of GHG emissions /

E.1.3.2Non-fossil energy consumption Resource Efficiency

E.3.3.1Participation in the Carbon

E.1.3Energy E.1.3.3Proportion of non-fossil energy usage / /Emissions Trading Exchange

E.1.3.4Total energy consumption / E.3.3.2Participation in usage rights

E.3.3Environmental

E.1.3.5Intensify of energy consumption Resource Efficiency water rights and pollution discharge /rights trading

rights trading exchange

E.1.4.1Packaging materials usage /

E.1.4Packaging E.3.3.3Participation in green power

materials E.1.4.2Lightweigt and minimization of packaging // trading

materials

E.3.4Climate risks

E.2.1.1Wastewater discharge compliance Pollution Prevention and Control E.3.4.1Climate risks management Climate Change

management

E.2.1.2Wastewater management and emissions

Pollution Prevention and Control E.4.1Impacts of

reduction measures

activities products E.4.1.1Impacts of activities products and

E.4Biodiversity Green Living

E.2.1Wastewater E.2.1.3Wastewater discharge Pollution Prevention and Control and services on services on biodiversity

E.2.1.4Wastewater and pollutants discharge Pollution Prevention and Control biodiversity

E.2Pollution

E.2.1.5Discharge concentration of wastewater and E.5.1Formulation

prevention Pollution Prevention and Control

pollutants of low-carbon E.5.1.1Formulation of low-carbon

and development goals development goals and strategic Climate Change

treatment E.2.2.1Waster gas emissions compliance Pollution Prevention and Control E.5System for and strategic measures

E.2.2.2Waster gas and pollutants discharge Pollution Prevention and Control resource and measures

E.2.2Waste gas

E.2.2.3Discharge concentration of waste gas and environmental E.5.2.1Management of water usage Resource Efficiency

Pollution Prevention and Control

pollutants management E.5.2Measures for E.5.2.2Management of materials usage Resource Efficiency

E.2.3.1Solid waste disposal compliance with laws resource management

E.2.3Solid waste Pollution Prevention and Control E.5 .2 .3Energy usage and energy

and regulations Resource Efficiencyconservation management

137 138China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

Tier 1 Indicator Tier 2 Indicator Tier 3 Indicator Section in this Report Tier 1 Indicator Tier 2 Indicator Tier 3 Indicator Section in this Report

E.5.3Energy conservation S1.4.1Employee stimulations and promotion

and carbon reduction E.5.3.1Energy conservation and carbon Employee Developmentpolicies

statistical monitoring and reduction monitoring statistical reporting Resource Efficiency

S1.4Employee development

systems for assessment and assessment system S1.4.2Employee education and training Employee Development

and training

rewards and punishments

S1Employee S1.4.3Employee career development and job

E.5.4.1Clean production Pollution Prevention and Control Employee Development

rights and changes support

E.5.4.2Green technological transformation

Pollution Prevention and Control interests S1.5.1Employee satisfaction survey /

and recycling use

E.5.4Green environmental S1.5.2Labor disputes /E.5.4.3Green Building Renovation / S1.5Employee satisfaction

protection actions and

E.5.4.4Green offices and operations Green Living Rights and Interests of

measures S1.5.3Employee turnover

E.5System for E.5.4.5Green procurement and green supply Employees

Green Procurement Practices

resource and chain management

S2.1.1Policies and measures for manufacture

environmental E.5.4.6Environmental protection public Product Quality

Green Living practices management interest activities

S2.1Products safety and

E.5.5.1Environmental Management System S2.1.2Quality management Product Quality

Ecological Environment Management quality

Certification

S2.1.3Product recall and withdrawal Product Quality

E.5.5Green and low- E.5.5.2Green and low-carbon enterprise

/

carbon certification certification S2.1.4Negative events on products or services /

E.5.5.3Green and low-carbon products and

/ S2Products S2.2.1Customer satisfaction Responsibility for Customers

services certification

and services S2.2Customer services and

E.5.6.1Emergency response plans for S2.2.2Customer complaints and handle Responsibility for Customersmanagement benefits

E.5.6Environmental Ecological Environment Managementenvironmental emergencies

compliance with laws S2.2.3Customer information and privacy protection Responsibility for Customers

and regulations E.5.6.2Violations of laws and regulations in / S2.3.1R&D and innovation management system Technological Innovation

environmental sector

Social S2.3.2R&D expenditure Technological Innovation

S2.3Innovation development

S1.1.1Enterprise recruitment polices and

Rights and Interests of Employees S2.3.3Innovation achievements Technological Innovation

executions

S1.1Recruitment and S2.3.4IPR protection Technological Innovation

S1.1.2Employee structure Rights and Interests of Employees

employment

S1.1.3Avoid employing child labor or S3.1.1Supplier selection and management Green Procurement Practices

Rights and Interests of Employees

compulsory labor S3.1Supplier management

S3.1.2Supplier amount and distribution /

S1.2.1Remuneration concepts and policies Rights and Interests of Employees S3Supply

S3.2.1Supply chain management policies and

S1.2Remuneration and S1.2.2Working time rest and vocation Rights and Interests of Employees chain Green Procurement Practicesmeasures

S1Employee benefits S1.2.3Remuneration and benefits guarantees Rights and Interests of Employees safety and S3.2Supply chain

rights and S1.2.4Employee democratic management Rights and Interests of Employees management S3.2.2Supply chain safety guarantee and management /

interests emergency response plans

S1.3.1Employee occupational health and

Occupational Health

safety management S3.2.3Major risks and impacts (supply chain) /

S1.3.2Risk prevention and control for

Safety Bottom Line S4.1Tax payment S4.1.1Tax paymen Bottom Line of Compliance

S1.3Employee health and employee safety

safety S4.2.1Policies and measures for participation

S1.3.3Safety incidents and occupational S4Social Rural Revitalization Support

Safety Bottom Line

injury measures contributions S4.2Community co-

in local community construction

construction S4.2.2Contribution and impacts for local

S1.3.4Employee caring and assistance Employee Life Rural Revitalization Supportcommunity

139 140China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

Tier 1 Indicator Tier 2 Indicator Tier 3 Indicator Section in this Report Tier 1 Indicator Tier 2 Indicator Tier 3 Indicator Section in this Report

Policies and measure for participation in G2.1.1Internal audit Compliant Operations

Public Welfare

public interest activities G2.1Internal control G2.1.2Internal control structure mechanism

Compliant Operations

S4.3社会公益活动 S4.3.2Investment and effectiveness of and process

Public Welfare

participation in public interest activities G2Normative G2.2.1Integrity construction criterion /

S4.3.3Barrier-free environment construction / governance G2.2Integrity

construction G2.2.2Effectiveness of integrity construction /

S4Social S4.4.1Industrial transformation Topic measures

contributions

S4.4.2Rural revitalization and regional G2.3.1Fair competition criterion Compliant Operations

Rural Revitalization Support

coordinated development G2.3Fair competition

S4.4Response to G2.3.2Effectiveness of fair competition Compliant Operations

national strategies S4.4.3The Belt and Road and overseas measures/

duties performance G3.1 .1 Investor relat ions management Rights and Interests of

S4.4.4Industrial characteristics and other strategy Shareholders

Topic

social duties performance G3.1Investor relations Rights and Interests of

G3.1.2Investor communication

management Shareholders

Governance

G3Investor G3.1.3Construction of investor relations Rights and Interests of

G1.1.1Governance strategy implementation Governance Effectiveness relations management department Shareholders

management

G1.1.2Process to supervise governance

and G3.2.1General meeting Governance EffectivenessGovernance Effectiveness

G1.1Governance strategy strategy shareholder G3.2.2Shareholder communication Governance Effectiveness

and process equity G3.2Shareholder equityG1.1.3Process to approve and review

Governance Effectiveness G3.2.3Informat ion part ic ipat ion and

governance strategy Governance Effectiveness

determination rights of shareholders

G1.1.4Party leadership /

G3.3.1Credit information /

G3.3Creditor equity

G1.2.1Ownership duties Governance Effectiveness G3.3.2Performance in bond market /

G1Governance G1.2.2rganizational structure and functions G4.1 Information G4.1.1Financial information disclosure About Northern Rare Earth

strategy and of the Board of Directors the Supervision Governance Effectiveness G4Information G1.2Structure and disclosure system G4.1.2Non-financial information disclosure About Northern Rare Earth

organizational Committee and the management disclosure function

structure transparency G4.2Information G4.2.1Regularly supervision audit and Rights and Interests of G1.2.3Process to appoint the Board of disclosure quality assessment on information disclosure Shareholders

Directors the Supervisory Committee and Governance Effectiveness

the management and its structure G5.1.1Compliance management system Compliant Operations

G5.1Compliance

G1.3.1Remuneration plan of directors and G5.1.2Compliance system construction Compliant Operations

/ management

supervisors G5Compliance G5.1.3Compliance review process Compliant Operations

management

G1.3Remuneration G1.3.2Remuneration transparency of the and risk G5.2.1Risk identification and early-warning Compliant Operations

/

management Board of Directors management

G5.2Risk management G5.2.2Risk control and trace Compliant Operations

G1.3.3Remuneration reasonability of the

/ G5.2.3Risk reporting and management Compliant Operations

management

141 142China Northern Rare Earth (Group) High-Tech Co. Ltd. 2024 Environmental Social and Governance Report

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