Contents
[Spotlight] 03 Innovation & Digital
Smart Innovation Powers the Two Rare Responsibility
Earth Bases Development Charting a Community &
About this Report 03
Green Industry Future 05
Message from the Chairman 07 Technology-Driven Quality and 83 Social Impact
Building Platforms for Collaborative 26 Efficiency
About Northern Rare Earth 09 Innovation Rural Revitalization 143Quality Benchmarking 95
ESG Management 19 Empowering Industry to Accelerate 28 Community Engagement and 144Integrity and Consumer Protection 101
Commercialization Philanthropy
Product Safety and Sustainable 103
Supply Chain Collaboration and Industry 29 Operations
Ecosystem Building
Supply Chain Collaboration and 116
Ecosystem Building
02 Climate Action &
Decarbonization 04 People & Workplace Future Outlook 14601 Governance & Culture Appendix I. ESG Performance 147
Corporate Foundation Environmental Compliance 53 Appendix II. Content Index 157Management
Employee Rights and Protection 121
Appendix III: Reader Feedback 169
Climate Change Response 57 Employee Development 125 Form
Enhancing Governance 33
Performance Resource Recycling Utilization 65 Employee Well-being 132
Ensuring Ethical Compliance 35 Pollution Prevention and Occupational Health and Safety 138
Control 73
Investment Accountability 40
Advocating A Green Lifestyle 77
Advancing Digital-Intelligent 42
TransformationChina Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
About this Report
Introduction Data Sources
This Report is the fourth Sustainability Report (previously titled the ESG Report in prior years) released by China Northern Rare All information and data presented in this Report are from publicly available materials provided by governmental agencies
Earth (Group) High-Tech Co. Ltd. to disclose and exhibit its performance in environmental social and governance aspects to its as well as the Company’s formal documents public disclosures and internal statistics. Financial data referenced herein is
stakeholders. This Report has been reviewed by the Company which will be responsible for the authenticity and validity of the sourced from the audited financial statements in the 2025 Annual Report. Unless stated otherwise all monetary amounts
information contained herein. are denominated in Yuan.Reporting Period Basis of Preparation
The reporting period is from January 1 2025 to December 31 2025 unless stated otherwise. To ensure the Report’s Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of Listed Companies—Sustainability Report (Trial)
completeness some information extends beyond this specified period.Guide No. 4 for Self-Regulatory Supervision on Listed Companies of the SSE—Compilation of Sustainable Development
Reports (Revised in January 2026)
Reference of ESG Indicators System for ESG Reports of Listed Companies Controlled by Central Enterprises issued by State-
Reporting Scope owned Assets Supervision and Administration Commission of the State Council
Sustainability Disclosure Standards of IFRS S1—General Requirements for Disclosure of Sustainability-related Financial
Information and Sustainability Disclosure Standards of IFRS S2—Climate-related Disclosures issued by the International
Unless stated otherwise this Report is about the China Northern Rare Earth (Group) High-Tech Co. Ltd. covering its
Sustainability Standards Board（ISSB）
headquarters branches and subsidiaries with the scope that is identical to the scope of its consolidated financial statements.Any deviation from the scope will be stated in the Report. Sustainability Reporting Standards of the Global Reporting Initiative (GRI)
03 04China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
Terms Abbreviations and Glossary
Company Law refers to The Company Law of the People’s Republic of China
Unless otherwise indicated in the context the following terms shall have the following meanings in this report:
Securities Law refers to The Securities Law of the People’s Republic of China
Abbreviations and Glossary
Northern Rare Earth the
refers to China Northern Rare Earth (Group) High-Tech Co. Ltd. SSE refers to Shanghai Stock Exchange
Company We
The largest base for rare earth new materials in China and a
Baogang Baogang Group refers to Baotou Iron and Steel (Group) Co. Ltd. Two Rare Earth Bases refers to leading base for rare earth applications across the world
Smelting Branch refers to Smelting Branch of Northern Rare Earth ESG refers to Environmental Social and Governance
Yuan 10000 Yuan 100
Huamei refers to Baotou Huamei Rare-Earth High-Tech Co. Ltd. refers to RMB 1 RMB 10000 RMB 100 million the legal currency of Chinamillion Yuan
Northern Magnetic
refers to Inner Mongolia Northern Rare Earth Magnetic Materials Co. Ltd. Reporting Period refers to From January 1 2025 to December 31 2025
Materials
Hefa refers to Baogang Steel Hefa Rare Earth Co. Ltd.Zibo Lingzhi refers to Zibo Baogang Lingzhi Rare Earth Hi-tech Co. Ltd. Board Statement
Gansu Rare Earth refers to Gansu Rare Earth New Materials Co. Ltd. This report has been reviewed and approved at the 12th meeting of the ninth Board of Directors of Northern Rare Earth. The
Board of Directors and all directors warrant that the contents of this report contain no false information misleading statements
BRIRE refers to Baotou Research Institute of Rare Earths or material omissions. They accept full legal liability for the authenticity accuracy and completeness of the information
presented herein.Tianjiao Seimi refers to Baotou Tianjiao Seimi Rare Earth Polishing Powder Co. Ltd.Ruixin refers to Baotou Ruixin Rare Earth Metal Materials Co. Ltd. Report Release
Xinfeng Xinli refers to Xinfeng County Baogang Xinli Rare Earths Co. Ltd.This Report is released in the form of an electronic version and can be obtained from the website of the Shanghai Stock
Jinmeng refers to Baotou Jinmeng Rare Earth Co. Ltd. Exchange (www.sse.com.cn) and the Company’s official website (www.reht.com).Xi’aoke refers to Inner Mongolia Xi’aoke Hydrogen Storage Alloy Co Ltd.ZXAT refers to ZXAT New Materials (Inner Mongolia) Co. Ltd. Readers Feedback
Beijing Sanjili refers to Beijing Sanjili New Materials Co. Ltd. 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 philosophy we invite readers to provide feedback on this Report (as
Northern Rare Earth (Anhui) Permanent Magnet Technology Co.Anhui Permanent Magnet refers to detailed in Appendix II “Reader Feedback Form”). Please send your opinions and comments to the following email
Ltd.address: cnrezqb@126.com
Ningbo Zhanhao refers to Ningbo Baogang Zhanhao New Materials Co. Ltd.Baiyun Mineral Processing Inner Mongolia Baogang Steel Union Co. Ltd. Baiyun Mineral
refers to
Branch Processing Branch
05 06China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
Seasons change and new splendid chapters unfold. In 2025 Northern Rare We remain firmly committed to green development advancing a new chapter of low-carbon growth with confidence
Earth achieved significant breakthroughs in its operations and development. and determination. The Company has consistently embedded sustainability into its corporate philosophy and translated this
Amid complex and volatile domestic and global economic conditions the commitment into concrete action. In response to global climate challenges it has actively aligned itself with China’s Dual
Company remained committed to National Priorities of Paramount Importance Carbon strategy. During the reporting period the Company completed an upgraded green smelting project with the best
led the implementation of industrial policies and integrated ESG principles into environmental performance introduced world-leading technologies and established a resource recycling system that enables
its corporate strategy and daily operations. By steadily expanding production the circular utilization of MgSO4 wastewater CO2 and other resources. In addition Northern Rare Earth strengthened its
and ensuring stable supply and pricing it achieved record-high output of major carbon footprint management system accumulated Life Cycle Assessment (LCA) data for rare earth products and issued
products throughout the year. Its operating revenue surpassed 40 billion yuan 11 Environmental Product Declaration (EPD) certification reports through the Rare Earth EPD Platform. The Company also
for the first time. The Company maintained its leading position in the industry in facilitated six carbon footprint accounting projects for raw and auxiliary materials conducted by its suppliers. As a result
terms of operating revenue profit output and market capitalization. In doing so the carbon emission intensity of its core products has continued to improve. Moreover the commissioning of the automated
it effectively safeguarded the security and stability of China’s rare earth industrial recycling production line for NdFeB waste materials at Jinmeng represents a meaningful step forward in resource recycling.and supply chains and advanced the high-quality development of the nation’s rare Through these solid and effective measures Northern Rare Earth continues to protect the ecological environment while
earth industry to a new level. reinforcing its position as a leader in green development.We advocate technology for the public good and jointly build an ecosystem characterized by harmony and mutually
beneficial outcomes. Guided by a people-centered philosophy Northern Rare Earth regards technological innovation as a
powerful driver of social responsibility fulfillment. Supported by multiple national-level innovation platforms the Company
has overcome multiple critical technologies that constrained industrial development and has also translated innovative
achievements into everyday applications. Rare earth-modified fibers have been developed into functional garments used in
households nationwide while solid-state hydrogen storage technology provides clean energy for hydrogen-powered two-
wheelers making the value of technology accessible to a broader public. With the philosophy of treating employees as valued
Secretary of the Party members the Company has fully implemented its talent-strengthening strategy and established a three-tier talent development
Committee and Chairman of system. Over the course of the year we conducted 279 training programs reaching more than 23800 participants in total
the Board and remained committed to supporting the growth and development of every employee. We uphold transparent and fair
procurement practices treat small and medium-sized enterprises equitably and work with partners to build a responsible
——Liu Peixun and resilient industrial ecosystem. We also actively participate in rural revitalization and public welfare initiatives fulfilling the
responsibilities of a state-owned enterprise through concrete action and ensuring that the benefits of development extend to a
wider range of communities.We strengthen governance empowerment and lay a solid foundation for steadiness and long-term development. Northern
Rare Earth continues to refine its three-level governance framework led by the Board of Directors guided by the Strategy
and ESG Committee and implemented by the ESG Working Group. The Company fully integrates compliance requirements
into decision-making processes and operational value chains thereby establishing a comprehensive and well-structured
ESG institutional system that has effectively advanced ESG management. Its ESG rating has been upgraded to AAA and it
has received numerous honors including the Golden Lion Award for Excellent Annual Environmental Responsibility Case in
ESG Practice. We also continue to reinforce integrity building and internal control while improving the “1+N” compliance
management system. The scope of compliance review has been further clarified with particular attention given to high-risk
business areas such as exports trade bidding and procurement. By strengthening rules and regulations to close management
loopholes the Company has improved both the efficiency and compliance of its operations. In addition we continuously
enhance information disclosure steadily improving both quality and transparency while our investor relations management
has gained broad market recognition. Through standardized corporate operations we uphold the trust of all stakeholders and
provide sustained governance momentum for the Company’s high-quality development.A new chapter has begun and the time to advance is now. Looking ahead Northern Rare Earth will remain firmly committed
to its goal of becoming a world-class leader in the rare earth sector. We will further deepen ESG practices with a broader
vision continue advancing green and low-carbon transformation strengthen innovation-driven development fulfill our social
responsibilities and further optimize our corporate governance framework. By pursuing sustainable development through
higher standards and more substantive measures we will contribute our expertise and efforts to the development of the Two
Rare Earth Bases and to the healthy high-quality and sustainable development of China’s rare earth industry.Finally on behalf of Northern Rare Earth I extend our sincere gratitude and highest regards to all shareholders partners
employees and friends from all sectors of society who have long supported and cared for the development of our
organization.
0708
Message from the
ChairmanChina Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
The Company has consistently driven high-quality development through technological innovation. It currently operates
About Northern Rare Earth two national-level innovation platforms eight ministerial-level platforms one academician workstation two post-doctoral workstations and seventeen provincial-level scientific research platforms. Its subsidiary the Baotou Research Institute of
Rare Earths has supplied key materials and components for key national projects including the Long March series carrier
rockets and the Shenzhou series crewed spacecraft. Guided by the principles of ecological priority and green development
the Company was the first in the industry to achieve zero discharge of production wastewater. It also led the formulation of
Company Profile the first carbon emission accounting standard in the rare earth industry and continues to strengthen its ESG governance and compliance capabilities. Looking ahead and in close alignment with the country’s strategic priorities the Company will
accelerate its transformation into a world-leading rare earth enterprise. It will make a greater contribution to safeguarding
China Northern Rare Earth (Group) High-Tech Co. Ltd. founded the security and stability of China’s rare earth industrial and supply chains and advancing the goal of building a rare earth
in 1961 and headquartered in Baotou Inner Mongolia was listed powerhouse.on the Shanghai Stock Exchange in 1997 as China’s first publicly China’s first
listed rare earth company. As a holding subsidiary of Baotou Iron publicly listed rare
and Steel (Group) Corporation the Company led the restructuring earth company
of the major rare earth conglomerate in 2015 thereby achieving
the centralized and unified management of northern rare earth 2 8 1 2 17
resources. At present the Company has nearly 40 branch and The Company has nearly national-level ministerial- academician post-doctoral provincial-level
subsidiary companies and more than 10000 employees. Its industrial innovation platforms level platforms workstation workstations scientific research
footprint spans 11 provinces municipalities directly under the Central platforms
Government and autonomous regions nationwide. It is widely 40 branch
recognized as a global leader in the rare earth industry distinguished
by its scale output value and operational performance and is also a
national-level single champion enterprise in manufacturing. Its industrial footprint spans
Relying on the unique resource advantages of the Baiyun Obo
provinces Corporate Culture
Mine the Company has established a complete industrial chain 11
spanning rare earth raw materials functional materials and terminal municipalities directly under the
applications. It is capable of producing rare earth products in 11 Central Government The Company actively fosters and practices core socialist values and builds its distinctive cultural brand Light of Rare Earth.categories more than 100 varieties and nearly 1000 specifications. It has established its corporate vision of becoming a world-class leader in the rare earth sector and its corporate mission to
Among these the Company ranks first globally in rare earth raw develop and expand China’s rare earth industrial chain and build a high-quality rare earth ecosystem.material supply capacity magnetic material alloy production
capacity and polishing material production capacity. Its annual
production capacity of rare earth permanent magnet motors for Northern Rare Earth Northern Rare Earth
terminal applications reaches 1270 units and sets. Its products are
exported to countries and regions including the United States the Mission:
European Union and Japan. The Company actively fulfills its primary Vision: To Develop and Expand
responsibility for developing the Two Rare Earth Bases strengthens Becoming a World-Class China’s Rare Earth
and enhances its position in strategic industries vigorously advances Leader in the Rare Earth Industrial Chain and
new quality productive forces and reinforces its core functions and Sector Build a High-Quality
core competitiveness. It is driving the rare earth industry toward Ecological Framework
intelligent green and integrated development while striving to for Rare Earth Sector
become a benchmark enterprise leading the industry’s green and
low-carbon transformation.Northern Rare Earth Northern Rare Earth
Values: Spirit:
Improve Ourselves Relentless Resilience
Empower the Society Beyond Competency
09 10China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
Case Study Publication of Light of Rare Earth Overview of Products
The Company published the book Light of Rare Earth: Interviews with Distinguished
Figures in the Rare Earth Industry . The book features face-to-face interviews Category and Name Applications
with 100 distinguished representatives including academicians experts and
entrepreneurs in the rare earth sector as well as outstanding employees of the Used in manufacturing special alloys precision optical glass high-refractive-Lanthanum oxide
Company. It comprehensively authentically and systematically records the arduous index optical fiber panels ceramic capacitors and others
pioneering journey of generations of rare earth practitioners and fully explores Used in producing among others special alloys rare earth catalytic materials Cerium oxide
the fine cultural genes of pioneering perseverance and innovation passed down rare earth colorants and rare earth thermal stabilizers
among veteran and new employees in the rare earth industry. The book has been Lanthanum-cerium Rare earth polishing materials agricultural fertilizers and water treatment
distributed to relevant national provincial and municipal government authorities carbonate systems
rare earth industry associations and academic societies as well as industry Praseodymium-
academicians and experts. It extensively showcases the outstanding contributions of Rare earth metals electronic industry and othersneodymium oxide
Northern Rare Earth to the high-quality development of China’s rare earth industry Praseodymium-
through technological breakthroughs and industrial chain expansion. Book-Light of Rare Earth Magnetic materialsneodymium metal
Neodymium metal Magnetic materials
Lanthanum-cerium metal Hydrogen storage materials flint (for lighters) and others
Case Study The Company’s In-depth Implementation of the “One Rare Earth” Cultural Integration
Raw Materials Lanthanum metal Hydrogen storage materials fuel cells and rare earth alloys
Initiative Hydrogen storage materials magnetic materials fuel cells and rare earth Cerium metal
alloys
Samarium oxide Magnetic materials ceramics glass electronic components and others
In 2025 the Company completed a comprehensive
upgrade of its brand image and launched a brand Europium oxide Phosphors and optical materials
visual identity system. It systematically integrated Gadolinium oxide Electronic components and healthcare
corporate mission vision values logos flags
and IP imagery across all controlled subsidiaries Terbium oxide Alloys magnetic materials and phosphors
and the parent company. This initiative further Dysprosium oxide Alloys magnetic materials and phosphors
established a unified group identity and effectively
Holmium oxide Optical communication devices and healthcare
strengthened the sense of belonging and strategic
collaboration among affiliated entities. Erbium oxide Ceramics optical materials and laser applications
Lutetium oxide Optical materials laser applications and semiconductors
Permanent magnet
Drive motors servo motors micro-special motors
Promotional Training on the Brand Visual Identity System materials
Hydrogen storage Nickel-Metal Hydride (Ni-MH) batteries and hydrogen storage &
materials transportation
Materials Liquid crystal/hard disk glass substrates mobile phone cover plates，Polishing materials crystal rhinestone jewelry，conventional & precision optical components，Corporate Mascot semiconductor photomasks etc.Catalytic materials Automotive exhaust purification and industrial waste gas treatment
Rare earth alloys Steel production construction materials and automotive manufacturing
Bao Xiaoxi is a winged divine horse symbolically portrayed as a white Mongolian
Permanent magnet motors: wind power new energy vehicles industrial
steed. The choice of white represents rarity hope and unwavering determination Permanent
motors electronic communication high-end medical devices humanoid
qualities that are essential in the pursuit of excellence. The horse’s wings are magnet motors
robots energy storage motors，low-altitude aircraft and other related fieldsdepicted in a technology-inspired blue reflecting the essence of innovation that is Products
crucial for advancing industry. Encircling its neck is a collar embellished with the Hydrogen refueling stations: hydrogen-powered electric two-wheelers solid Hydrogen
17 rare earth elements which signifies the strategic importance of the resource hydrogen storage forklifts solid hydrogen storage sightseeing vehicles for refueling stations
industry. Collectively these elements illustrate how technological advancement scenic spots parent-child vehicles and other related fields
and the development of new productive forces empower Northern Rare Earth
to ascend to new heights. In this context rare earth materials and emerging
industries can be viewed as the wings of progress underscoring their pivotal role
in driving economic and technological growth.
11 12China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
Awards and Honors
The Rare Earth Production Data Four Affiliated Entities Were Listed in
First Batch of Outstanding Nomination Award of the China Integration and Application project
the Public Notice on the Second Batch
Was Awarded the Excellence Award of Emerging Industry Enterprises in Intelligent Factories Quality Award the Autonomous Region for 2025
Issuing Institution Issuing Institution Issuing Institution Issuing Institution
Inner Mongolia Autonomous Region
Ministry of Industry and State Administration for Market Inner Mongolia Autonomous
Administration of Government
Information Technology (MIIT) Regulation (SAMR) Region Department of Industry
Services and Data Management
and Information Technology
Five Affiliated Entities Were Listed as Four Affiliated Entities Were
Nominated Unit for the 8th
Best Practices in Investor Management Specialized Refined Characteristic Recognized as Innovative SMEs in the National Civilized Unit
Issuing Institution by Listed Companies (2024)
and Innovative (SRDI) SMEs Inner Mongolia Autonomous Region
Issuing Institution Issuing Institution Issuing Institution
Office of the Central Guidance
Commission on Building China Association for Public
Inner Mongolia Autonomous Inner Mongolia Autonomous
Region Department of Industry Region Department of Industry
Spiritual Civilization Companies and Information Technology and Information Technology
The Low-Pressure Solid-State Hydrogen Storage
2025 Best Practice Cases in Baiyun Obo Brand Ranked among the And Refueling System Integrated Equipment
Sustainable Development by Listed Best Practice of Board Office Top 10 of the Inner Mongolia Famous Was Listed in the First Set (Batch) Recognition
(Top 100) Brands List Catalogue for Technical Equipment Key Companies Case Components and New Materials
Issuing Institution Issuing Institution Issuing Institution Issuing Institution
China Association for Public China Association for Public Inner Mongolia Brand Inner Mongolia Autonomous
Companies Companies Development Promotion Region Department of Industry
Association and Information Technology
Baotou Research Institute of Rare Earths Was
Listed in the First Batch of 2025 Proposed
Best Cases for Annual Earnings ESG Technology Leadership Registration List for Inner Mongolia Science and Best Listed Company
Briefing Golden Bull Award Technology Innovation Enclaves
Issuing Institution Issuing Institution Issuing Institution Issuing Institution
China Association for Public China Securities Journal Inner Mongolia Autonomous New Fortune magazine
Companies Region Department of Science
and Technology
Gansu Rare Earth was named among
the Second Batch of Provincial
Single-Champion Enterprises in Gansu Provincial Quality Award
Manufacturing Issuing Institution
Issuing Institution
People's Government of Gansu
Gansu Province Department
Province
of Industry and Information
Technology
13 14China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
Technology Awards
Second Prize of Inner Mongolia
Autonomous Region Science and
China's Top Ten Textile Technologies Technology Progress Award
Second Prize of Rare Earth Science and
Technology：Rare Earth Modified Functional Protective Technology：Key Technology Development and
Technology Awards
Fiber and Fabric Preparation Technology Application for High-Quality Rare Earth Master
Technology：Key Technology Development and Alloy Preparation
Issuing Institution：China National Textile and Apparel
Application of High-Performance Rare Earth- Second Prize of Rare Earth Science and
Council (CNTAC) Technology Awards Issuing Institution：Communist Party of China Containing Waste-Recycling Energy-Saving
Inner Mongolia Autonomous Region Committee
Refractories
Technology：Industrialization Technology People's Government of Inner Mongolia
Second Prize of Rare Earth Science and Issuing Institution：The Chinese Society of
Development and Application of High- Autonomous Region
Technology Awards Rare Earths，Association of China Rare EarthPerformance High-Temperature-Resistant
Industry Samarium-Cobalt Permanent Magnet Materials
Technology：Key Technology Development of Third Prize of Hebei Province Science and
Issuing Institution：The Chinese Society of
Four-Stage Hydrogen Storage Materials for Technology Progress Award
Rare Earths，Association of China Rare EarthMetal Hydride-Hydrogen Compressors Second Prize of Rare Earth Science and Industry Technology：Key Technology and Application
Technology Awards
Issuing Institution：The Chinese Society of of Catalytic Materials for Diesel Engine Exhaust
Rare Earths，Association of China Rare Earth Technology：Research on New Energy-Saving PurificationIndustry and High-Efficiency Recovery Technologies for First Prize of Inner Mongolia Autonomous Issuing Institution：People's Government of
Rare Earth and Valuable Elements from NdFeB Region Technical Invention Award Hebei Province
Waste
Technology：Key Manufacturing Technology
Issuing Institution：The Chinese Society of for New Environmentally-Friendly Rare Earth
Rare Earths，Association of China Rare Earth Functional Additives Third Prize of Gansu Province Science andIndustry Technology Progress Award
Issuing Institution：Communist Party of China
Inner Mongolia Autonomous Region Committee Technology：Green and Energy-Saving
People's Government of Inner Mongolia Upgrade and Industrialization Application of
Autonomous Region Post-Treatment Process for Light Rare Earth
Chlorides
Issuing Institution：People's Government of
Gansu Province
15 16China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
2025 Milestones
The Company obtained dual domestic and During the 2025 Boao Forum for
November December
international certifications for its compliance Entrepreneurs the 2025 Xinhua Index
management system in accordance with GB/ Boao Annual Conference hosted by The Xibeisi Intelligent Fiber
October T 35770-2022 and ISO 37301:2021 marking China Economic Information Service Product Launch Conference was
announced the achievements of the
held at the Rare Earth Building significant progress in its compliance framework.Manufacturing Power Series Indices
unveiling core advancements in The national occupational standard for Rare Earth including the Rare Earth Price Index
new rare earth materials. This Smelter compiled by the Company passed final of the China (Baotou) Rare Earth
marks a new stage in the large- review filling a gap in China’s vocational skills Exchange.scale industrialization of China’s standards.The first mass production demonstration line rare earth functional fibers.September
for rare earth giant magnetostrictive materials
in the Inner Mongolia Autonomous Region
was completed at Inner Mongolia North New
Materials Technology Co. Ltd. marking a
significant advancement in the transition of
high-end functional materials from laboratory Xi’aoke constructed Inner Mongolia’s August
preparation to industrial application. first low-pressure solid-state
hydrogen storage and refueling
The China (Baotou) Rare Earth Exchange demonstration station advancing the The scientific research project Preparation and
officially launched its new trading system. Julyhydrogen energy industrial chain and Application of Highly Dispersed Noble Metal
Centered on data security trading efficiency supporting the region’s green energy Composite Catalytic Materials Supported on CeO2 The Company was included in the CSI
and risk control it establishes a safer smarter transition. proposed by BRIRE was approved and received June A50 Index for the first time further
and more efficient rare earth trading platform. special funding of one million Yuan from the 2025 demonstrating the capital market’s
The Company ranked among the Central Government Guided Local Science and recognition of its market position
Top 50 Revenue Enterprises and Top Technology Development Fund. brand value and influence as a leading
30 Net Profit Enterprises in China’s
enterprise in the rare earth industry.non-ferrous metal industry in 2024 Xi’aoke’s hydrogen-powered electric two-wheelers
demonstrating its strong industrial were officially launched with a range exceeding 90
foundation and core competitiveness. kilometers providing essential equipment support
for the company’s hydrogen energy industry
Building on its core
development. April
products including
independently
developed rare earth
alloys with proprietary
intellectual property
rights the Baotou
Ruixin obtained Grade AA certification for the Integration of Informatization and Research Institute
March
Approved by the National Postdoctoral Industrialization Management System. This achievement reflects the Company’s of Rare Earths
February
The Company held exchanges and Management Committee the progress in advancing the deep integration of informatization and industrialization officially secured
January
discussions with Wolong Electric Company was authorized to establish and further strengthens its industry reputation. trademark registration
engaging in in-depth communication a national-level postdoctoral research for Xixin from the
regarding the establishment of joint workstation advancing the integration The Company convened the First Extraordinary General Meeting of 2025 along China National
laboratories industrial cooperation in rare of scientific and technological with the First Meeting of the Ninth Board of Directors and the First Meeting of the Intellectual Property
earth permanent magnet motors and the innovation with industry-university- Ninth Supervisory Committee thereby completing the transition of the new Board Administration.research development and application research collaboration to a new level. of Directors Supervisory Committee and senior management team.of rare earth lightweight alloys and Hefa’s Digital Transformation Project in Production Support Areas successfully
magnetic materials. passed the acceptance inspection conducted by the Baotou Municipal Bureau of
Industry and Information Technology and has secured policy funding support. The
project establishes a benchmark for the digital and intelligent transformation of
production in rare earth smelting and separation.
17 18China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
ESG Management
By deeply integrating ESG principles into its operations and management the Company continuously advances the
development of its ESG management system and professional training programs thereby strengthening ESG capacity and
enhancing employees’ awareness of sustainable development to support the Company’s long-term growth. Research and formulate ESG policies and action plans aligned with the Company’s strategy
and ESG objectives;
Oversee day-to-day ESG-related risks and matters which includes compliance monitoring
and incident response protocols;
ESG System ESG Working Liaise with relevant functions subsidiaries and branches to ensure effective ESG
Group implementation and resolve any execution bottlenecks;
Collect consolidate and draft ESG disclosure documents for ESG reporting;
The Company has established a three-tier ESG management framework comprising the Board of Directors the Strategy and Other ESG tasks.ESG Committee and the ESG Working Group thereby creating a governance structure with clearly defined responsibilities
and effective internal coordination. The Board of Directors provides strategic oversight and decision-making; the Strategy
and ESG Committee delivers professional analysis and institutional support; and the ESG Working Group manages day-to-day
implementation. This triangulated framework strengthens the Company’s overall sustainable development governance capacity.ESG Strategy and Institutional System
Evaluate and approve the Company’s ESG strategic planning objectives framework and
The Company places strong emphasis on its ESG institutional framework advancing sustainable development through top-level
policies;
design. Building on the previously issued Measures for Environmental Social and Governance (ESG) Management of Northern
Assess the relevant ESG-related risks and their significance to the Company;
Rare Earth and its ESG indicator management system the Company developed the 15th Five-Year ESG Plan of Northern Rare
Review and endorse the disclosure of pertinent information including the Company’s
Earth in 2025. It also formulated policy statements addressing four key issues: human rights community relations biodiversity
Board of ESG report;
and climate change. As a result a comprehensive and well-structured ESG institutional system with clear objectives has been
Directors Examine any major negative ESG events that may arise;
established strengthening integration with daily operations and promoting systematic long-term ESG governance.Oversee the effective implementation of the Company’s ESG management operations.ESG Oversight and Due Diligence
Ensure the corporate’s position and performance on globally relevant ESG issues are in
The Company has established an ESG oversight
line with contemporary and international standards; formulate and propose updates to
and assessment mechanism integrat ing
the corporate ESG-related policies covering but not limited to climate change health
departmental information disclosure into
and safety environment human rights and anti-corruption;
performance evaluations and dynamically
Advise on climate change mitigation initiatives greenhouse gas (GHG) reduction targets
optimizing relevant indicators. It also conducts
green product development clean energy technology adoption and operational safety
due diligence in accordance with applicable
and stability protocols;
guidelines strictly supervises procedural
Strategy and Conduct studies analyses and risk assessments on ESG matters and propose ESG standardization ensures the full integration of
ESG Committee strategies targets and policy enhancements; due diligence into the governance structure
Coordinate and monitor ESG policy implementation management performance and goal
and promotes the incorporation of sustainable
attainment progress and provide corrective action recommendations;
development goals into business operations.Review and submit ESG reports to the Board of Directors;
Evaluate material ESG-related matters requiring board-level attention;
Exercise other ESG-related powers granted by the Board of Directors.
19 20China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
Communication with Stakeholders
During its operational development the Company fully addresses and respects the legitimate concerns and expectations of all
stakeholders. By establishing regular and diverse communication channels it actively listens to and responds to stakeholder
concerns while striving to build long-term and mutually trusting cooperative relationships.Stakeholders
Board of Directors External Investors Industry Governmental Bodies NGOs
Employees Customers Partners Media
Management Level Shareholders Associations and Regulators Communities
Strategic response
Equal opportunities in
Modern corporate Modern corporate governance
employment Supply chain Strategic response Community relationship
governance Product quality and safety Investor relations management Industry contribution
Stakeholder Occupational health and management Industry contribution Modern corporate Rural revitalization
Risk and compliance Communication Risk and compliance Green transformation
Expectations safety Green transformation Ecological governance governance Activities for the public
management mechanisms and channels management Digital transformation
Development and Technological innovation Business ethics interests
Brand and image Performance growth
promotion
management
Holding general meetings
Developing strategies and Optimizing supplier
Improving staff Improving risk control and
management framework Taking part in management procedures
management system internal control framework Responding to Engaging with communities
Our Holding meetings in industrial activities Enhancing technology Taking part in industrial Organizing comprehensive Enhancing after-sale Obtaining compliance national strategies around our project sites
Actions and accordance with laws Developing relevant research and activitiessafety inspections management procedures certifications Improving Contributing to rural
Responses Improving risk control and standards development Hosting environmental Hosting cultural and sports Establishing complaint Welcoming investor visits and management system revitalization
internal control framework Enhancing technology Engaging in Industry- protection awareness
activities channels research Building the Organizing public welfare
Obtaining compliance research and University-Research campaigns
Improving promotion Holding performance briefings compliance system activities
certifications development Institute (IUR)
mechanism Attending brokerage investment
Monitoring public opinion cooperation
conferences
21 22China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
Material Issues Analysis Matrix of Material Issues
The Company conducts materiality assessments of ESG issues based on two dimensions: "materiality to the Company’s China Northern Rare Earth (Group) High-Tech Co. Ltd.financial performance" and "materiality to economic social and environmental impacts". It fully solicits the views and
expectations of various stakeholders and evaluates and prioritizes the issues accordingly. 2025 ESG Report Materiality Matrix
Innovation-Driven
Development
Determination of Double Materiality Issues Employee Training and Development
Occupational Health &
Equal Employment and SafetyClimate Change
Labor Practices Response
Product Safety &
By referencing core indicators from domestic and international ESG reporting Supply Chain Security Emissions Energy Efficiency & Quality
Utilization
guidelines such as the Guidelines No. 14 of Shanghai Stock Exchange for Self- Management
Investor Rights Protection Digital
Regulation of Listed Companies—Sustainability Report (Trial) and the Global Customer Service Transformation
Reporting Initiative (GRI) Sustainability Reporting Standards and aligning with and Communication
Identification Corporate Governancenational policies and industry characteristics the Company has systematically Water Resource Management
Data Security and Customer
identified and organized key ESG issues. Anti-Corruption and Business Ethics Privacy
Impact Information Risk and Compliance
Materiality Disclosure Circular Economy National Strategic
Practices Alignment
Intellectual Property
Management
Green Environmental ESG Structure
Operations Compliance Rural Revitalization Party Building
The Company conducts issue assessment and performs quantitative analysis Initiatives Leadership
Social Contribution
based on survey results to understand the issues’ materiality to its finance Programs
Assessment economy society and environment.Ecosystem and Biodiversity
Protection Environmental
Social
Governance
The Company establishes its 2025 matrix of issues and ranks these issues
Ranking and from high to low in terms of materiality. Financial Materiality
Confirmation
Dual Innovation-Driven Development Product Safety & Quality Occupational Health & Safety
Materiality Climate Change Response Energy Efficiency & Utilization and Digital Transformation
23 24China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
Smart Innovation Powers the Two Building Platforms for Collaborative Innovation
Spotlight Rare Earth Bases Development Scientific and technological innovation platforms are essential vehicles for strengthening innovation capacity. In
Charting a Green Industry Future alignment with national strategies and practical business needs the Company has promoted the deep integration of scientific research and industrial development and continuously strengthened the construction of such innovation
platforms. During the 14th Five-Year Plan period the Company fully implemented the innovation-driven development
strategy deepened reforms of scientific and technological systems and mechanisms and made substantial progress
in improving the innovation system accelerating platform development and facilitating the transformation of scientific
and technological achievements. Building on its industrial-scale advantages the Technology Innovation Center for Rare
Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era the Company fully Earth New Materials has brought together academicians and industry experts to conduct research in eight key areas
implements the guiding principles of the 20th National Congress of the Communist Party of China and including green and low-carbon rare earth extraction magnetic materials optical functional materials and energy
subsequent plenary sessions of the 20th CPC Central Committee. It also follows General Secretary Xi Jinping’s storage materials thereby advancing new pathways for the high-value utilization of rare earth resources and green
important instructions regarding the development of Inner Mongolia and the rare earth industry. With the efficient production.goal of fostering a strong sense of community for the Chinese nation the Company fully accurately and
comprehensively applies the new development philosophy. It coordinates high-quality development with high-
level security and remains committed to its vision of becoming a world-class leader in the rare earth sector.The Company fulfills its responsibility as the principal force in developing the Two Rare Earth Bases. Upholding Case Study Unveiling of the Joint R&D Base for Rare Earth Bio-metallurgy by the Industrial
intelligent green and integrated development and treating reform and innovation as its fundamental driving Technology R&D Center and Technology Innovation Center for Rare Earth New
forces the Company focuses on its core responsibilities and primary businesses. It vigorously advances new Materials
quality productive forces strengthens core functions and enhances core competitiveness. Through these
efforts the Company is well positioned to achieve higher-quality more efficient fairer more sustainable and
safer development while safeguarding the security and stability of China’s rare earth industrial and supply In June 2025 the Joint R&D Base for Rare Earth Bio-metallurgy co-established by the Company’s Industrial
chains. Technology R&D Center and the Technology Innovation Center for Rare Earth New Materials was officially
inaugurated at the Smelting Branch of (Huamei). Leveraging world-leading synthetic biology-based rare earth
recovery technologies the base fully capitalizes on the Company’s integrated industrial chain application
Performance on Two Rare Earth Bases scenarios and supporting services while enabling technology transfer through the Technology Innovation Center
for Rare Earth New Materials. It has developed an innovation model that integrates frontier academic research
Sustained consolidation of industrial-scale leadership enterprise-led industrial implementation and collaborative platform support thereby bridging the final gap
between laboratory research and industrial-scale production. Focusing on the research and development of rare
A total of 32 projects commenced construction during the year of which 15 were completed and placed into earth biometallurgical separation technologies the base is constructing engineered microbial systems to achieve
operation. Output of major products including rare earth smelting and separation products rare earth metals efficient leaching enrichment and separation of rare earth elements from rare earth tailings and urban rare earth
magnetic materials hydrogen storage materials and polishing materials all reached record highs. waste. At present a pilot demonstration line with an annual processing capacity of 10 tons of rare earth tailings
and ton-scale rare earth waste has been established. The base provides innovative technical support for the green
Sustained Intensification of R&D Investment and efficient separation of rare earth tailings and waste and it effectively enhances both the recycling efficiency of
rare earth resources and the added value of related products.R&D intensity in the rare earth sector has consistently remained above 5%. Phased tasks under eight national
major science and technology projects and twelve autonomous regional science and technology breakthrough
projects were completed. The Company developed three new technologies and four sets of new equipment and
achieved breakthroughs in two core technologies. Throughout the year 130 patents were granted including six
international patents and 79 inventions. In addition 82 standards were issued of which two were international
standards. As a result the Company’s independent innovation capability has continued to strengthen.Sustained Elevation of Industrial Influence
Taking the lead in promoting and implementing the Regulations on Rare Earth Management the Company
developed the Rare Earth Price Index and released it at the 2025 Xinhua Index Boao Annual Conference
providing an effective price benchmark for rare earth transactions across the industry. It also advanced the green
transformation of the entire rare earth industrial chain by leveraging the Rare Earth EPD Platform and completed
EPD certification for 11 products during the year.
25 26China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
Case Study National Innovation Center for Rare Earth Functional Materials
Empowering Industry to Accelerate
The National Innovation Center for Rare Earth Functional Materials is the only national-level manufacturing
innovation center in the rare earth sector. Focused on the incubation and early commercialization of scientific Commercialization
research achievements in the rare earth industry it has established a framework comprising four centers and
eleven platforms. Targeting application fields such as next-generation information technology clean energy The Company closely aligns with the national agenda of securing strategic rare earth resources and advancing high-
and aerospace it has built 12 industrial demonstration lines for technology transfer in areas including rare earth quality industrial development. It firmly assumes the responsibility of serving as a principal force in the construction of
permanent magnets hydrogen storage materials rare earth alloys and optical functional materials. A series the Two Rare Earth Bases. By expanding production capacity and extending the rare earth application industry chain
of innovative achievements has emerged including high-performance samarium-cobalt permanent magnet the Company accelerates the conversion of resource advantages into industrial strength and economic value.materials rare earth-based solid hydrogen storage devices and intelligent lighting systems using rare earth
light sources. These achievements have been steadily advanced through market-oriented promotion yielding The Company focuses on bridging the final gap of technology commercialization by strengthening the alignment
significant results. between technological innovation and industrial demand and accelerating the transformation of R&D outcomes into
productive capacity. It seeks to promote synergistic integration and clustered development across upstream and
downstream segments thereby enhancing the resilience and overall competitiveness of the rare earth industry chain.By continuously improving the industrial ecosystem and optimizing the allocation of production factors the Company
is establishing a new model of high-quality development characterized by efficient resource utilization industrial
coordination and innovation-driven growth. In doing so it makes a substantive contribution to the national strategic
security of rare earth resources and the industry’s green and low-carbon transformation.Case Study New High-Performance NdFeB Strip-Casting Alloy Project
The new high-performance NdFeB (neodymium-iron-boron) strip-casting alloy project undertaken by the
Company’s subsidiary Northern Magnetic Materials represents a strategic initiative to capitalize on policy
opportunities and market demand while advancing the development of downstream rare earth materials and the
broader application industry chain. From the outset the project has been designed to support intelligent high-
end and green manufacturing. It employs advanced continuous vacuum melting equipment supplemented by an
automated batching line automated loading and unloading systems and an intelligent conveying system. These
technologies enable precise control throughout the production process and significantly enhance operational
efficiency. Upon completion the facility will become China’s largest single-site rare earth magnetic material alloy
plant offering leading quality and superior cost efficiency. It will further extend the industrial chain strengthen
supply capacity in support of the Two Rare Earth Bases and accelerate the transformation of rare earth resource
advantages into integrated upstream and downstream industrial development.National Innovation Center for Rare Earth Functional Materials
Case Study ZXAT Expansion of Rare Earth Metals and Alloys Project
This project is a significant initiative by the company to respond to market demand and expand production
Case Study Pilot Base for High-Purity Rare Earth Compounds capacity. Upon completion the annual output of rare earth metals and alloys will increase substantially. The
project has also been optimized through upgrades to both process equipment and intelligent systems improving
workflow efficiency and enhancing electrolysis equipment to increase current efficiency and reduce unit energy
Serving as a vital bridge between laboratory research and industrial production the pilot base focuses on four consumption. As a result it is expected to serve as a highly efficient energy-saving demonstration line forcore platforms: pilot-scale wet smelting of rare earth minerals treatment and resource utilization of “the three rare earth metal production. In addition an information collection system has been introduced to record keywastes” (waste gas wastewater and solid waste from rare earth smelting） rare earth separation and purification parameters including electrolysis temperature feed amount voltage and current in real time thereby enabling
and the synthesis of fine rare earth chemicals and powder materials. Together these four platforms cover key digital management of production data. Each electrolysis unit is equipped with an automatic feeder connected
segments of the entire rare earth industrial chain. to a PLC control system ensuring intelligent feed control and providing precise data support for production
management.
27 28China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
Case Study Jinmeng’s NdFeB Scrap Recycling Automatic Production Line Enters Trial
Supply Chain Collaboration and Industry Production Stage
Ecosystem Building Jinmeng’s newly constructed NdFeB scrap recycling automated production line has entered the trial production
stage. This project is a key component of the company’s One South and One North strategy for building a ten-
thousand-ton-level rare earth resource comprehensive utilization system. From the outset the production line was
The Company fully implements the national strategic vision of designed around full-element recovery technology overcoming the limitations of conventional rare earth recycling.ecological priority and green development integrates green Its equipment processes and degree of automation are industry-leading enabling the comprehensive recovery
development into the construction of the Two Rare Earth Bases and utilization of metal elements from scrap. The line further advances the resource recycling model integrating
and drives industrial upgrading through a green transformation PrNd metal and scrap while filling a gap in rare earth scrap processing in Inner Mongolia. It provides strong
of its development model. momentum for regional industrial upgrading and the efficient utilization of recycled resources.Leveraging its integrated advantages in resource supply and
industrial chain development the Company reinforces its core
position in the global supply of rare earth raw materials while
aligning with industry transformation trends under the Dual The Company leverages the development of a green manufacturing system as a key driver to comprehensively advance
Carbon goals. It is accelerating the development of a clean energy conservation carbon reduction water conservation emission reduction and cleaner production thereby
efficient circular and low-carbon green manufacturing system. accelerating the industry’s transition toward low-carbon circular and sustainable development. By the end of 2025
Through technological breakthroughs in energy conservation three of the Company’s subsidiaries/branches had been recognized as National Green Factories; five had obtained
and emissions reduction as well as continuous process Autonomous Region-level Green Factory certification; four had been designated as Municipal Green Factories; four
optimization the Company is advancing the transition of the products had received the National Green Design Product title; one product had been awarded the Provincial Green
entire value chain—from rare earth smelting and separation to Design Product title; and three subsidiaries/branches had been awarded Provincial/Autonomous Region Green Supply
new material preparation—toward lower energy consumption Chain honors. Collectively these achievements have provided strong impetus for establishing the Two Rare Earth Bases
and emissions. It also promotes the integrated innovation of as a benchmark for green and low-carbon development in the industry.resource recycling systems and green smelting technologies
thereby improving the comprehensive utilization efficiency of
rare earth resources through a circular economy model and
achieving full-chain green management from source reduction
to end-of-pipe treatment. 3 5 4
of the Company’s had obtained had been
subsidiaries/branches
Case Study Green Smelting Upgrade and Renovation Project Autonomous Region designated as had been recognized level Green Factory Municipal Green
as National Green certification Factories
Factories
To promote the green transformation and high-quality development of the rare earth smelting industry the
Company invested in a green smelting upgrade and renovation project. Phase I is now in operation with the
full production line connected while Phase II is under construction and progressing steadily. The project adopts
internationally leading processes and through process optimization technological innovation and equipment
upgrades establishes an internal recycling system for multiple resources. This approach effectively reduces
the consumption of raw and auxiliary materials as well as freshwater use while significantly enhancing energy
conservation and emission reduction performance. Overall the project is driving the green and intelligent 4 1 3
transformation of rare earth smelting enabling efficient low-consumption and high-quality smart production. product had been subsidiaries/branches had
It provides strong support for the industry’s green and low-carbon development goals and demonstrates the products had received the awarded the Provincial been awarded Provincial/
Company’s firm commitment to environmental responsibility and sustainable industrial progress. National Green Design
Product title Green Design Product Autonomous Region Green
title Supply Chain honors
29 30China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
31 32China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
Enhancing Governance Performance General Meeting of Shareholders
In strict compliance with the Company Law the Rules for General Meetings of Listed Companies the Rules of Procedure for
General Meetings and other applicable laws regulations and the Company’s articles of association the Company standardizes
The Company strictly complies with the Company Law the Governance Guidelines for Listed Companies and other applicable
the convening conduct and voting procedures of general meetings. This ensures the equal protection of all shareholders’
laws and regulations. It continues to advance the reform of state-owned enterprises by clearly defining the powers and
rights particularly those of small and medium-sized shareholders including the rights to information participation inquiry and
responsibilities of each governance body thereby establishing a modern corporate governance system characterized by
voting.legally defined and transparent rights and responsibilities coordinated operation and effective checks and balances. Through
improved systems optimized mechanisms and strengthened oversight the Company consolidates its governance foundation
enhances governance effectiveness and ensures that robust governance provides a strong guarantee for high-quality
development. General Meeting Performance
Organizational Structure Number of general Number of proposals passed meetings at general meetings
The Company has established a corporate governance structure with clearly defined responsibilities and efficient coordination. 3 22
A decision-making framework comprising the General Meeting the Party Committee the Board of Directors and its special
committees and the executive management team ensures the Company’s strategic direction governance standards and long-
term sustainable development.At the operational management level the Company has established functional departments including the Group Management
Department Production Technology Department and Planning and Finance Department. Working in coordination these
departments support strategic planning production operations financial risk control technological innovation market Board of Directors
development supply chain management and digital transformation. Collectively they constitute an integrated management
system that spans the entire operational process and strengthens organizational capacity for the Company’s high-quality As the Company’s operational decision-making and executive body the Board of Directors fulfills the functions of strategic
sustainable development. planning decision-making and risk prevention. It is accountable to the general meeting and oversees the Company’s assets
Organizational Chart of the Management Body in accordance with law. The Board has established four special committees: the Strategy and ESG Committee the Nomination
Committee the Audit Committee and the Remuneration and Review Committee. Each committee exercises its authority in
General Meeting accordance with its respective charter.Comprising 14 members with independent directors representing 35.71% the Board benefits from a diverse array of
professional expertise in rare earths finance and industrial economy. This diverse composition not only enriches the board’s
structure but also establishes a robust foundation for informed and scientific decision-making within the Company.Board of Directors Specialized Committees under the Board
The Company fully leverages the professional expertise and advisory role of its independent directors. Current independent
directors are invited to deliver a series of thematic lectures aligned with their respective research areas thereby diversifying
Strategy and ESG Committee the forms of duty performance broadening professional perspectives enhancing employee capabilities and supporting the
Nomination Committee strategy of building a talent-strong enterprise. The Company continues to implement the requirements of the independent
Audit Committee director system ensuring that independent directors play a greater role in decision-making oversight and checks and balances
Management Level Remuneration and Review Committee and professional consultation. These efforts provide strong support for accelerating the Company’s development into a world-
class leader in the rare earth sector.Board Performance
Board meetings Proposals approved by Meetings of specialized Special meetings of
the Board committees independent directors
1055132
3334
(Industrial Transformation Center)
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. 2025 Sustainability Report
Case Study Themed Lecture Delivered by Independent Directors Enhancing Clean Governance
In March 2025 the Company hosted a themed The Company remains firmly committed to advancing Party conduct and integrity building and to combating corruption. It
lecture delivered by an independent director on strengthens risk prevention and control for clean governance across Party organizations at all levels with particular attention
Artificial Intelligence and the Transformation and to areas where power is concentrated and capital and resources are highly concentrated. Targeted oversight is conducted over
Upgrading of Corporate Financial Management. critical processes such as bidding and tendering procurement of materials and investment decision-making. The Company
The lecture addressed the development of a world- applies the Four Forms of supervision and discipline with precision maintaining a sustained high-pressure stance against
class financial management system the digital corruption.transformation of finance and frontier practices The Company deepens the practice of using case-based learning to promote rectification and governance. By organizing
in digital and intelligent development. By fully disciplinary warning education meetings and conducting immersive educational visits to integrity exhibition halls and detention
leveraging the independent director’s professional centers it strengthens the awareness of integrity and self-discipline among Party members and cadres. It also delivers
expertise the Company strengthened its efforts integrity-themed Party lectures at the grassroots level integrating disciplinary training with Party member education to build
to cultivate versatile high-quality talent. Over the a multifaceted ideological defense line. At the same time the Company fully implements the spirit of the Central Committee’s
past two years the Company has organized nine Eight-Point Regulation continuously addresses the Four Forms of Decadence closes risk loopholes and safeguards the
themed lectures by independent directors with Company’s high-quality development through a clean and upright corporate culture.cumulative attendance exceeding 1200 thereby
firmly supporting its talent-strengthening strategy. The Company has implemented a comprehensive anti-corruption program with focused rectification campaigns in bidding
Themed Lecture Delivered by Independent Directors
and procurement R&D funding and official vehicle use. Through inspections audits and compliance reviews it has rigorously
addressed violations including improper hospitality and self-dealing practices. Updated management policies significant fleet
reductions and lower operating costs have been achieved while supervisory effectiveness and integrity risk controls continue
to be strengthened.Performance in Anti-Corruption and Integrity Management
Ensuring Ethical Compliance
Metric 2025 Value
Number of anti-corruption training sessions 48
The Company regards integrity and compliance as the foundation of its development. It continuously improves its business
ethics code and integrity management system strengthens risk prevention and targeted rectifications in key areas and
enhances internal audit oversight and compliance review mechanisms. Through coordinated multi-dimensional efforts the Of which: Management-level anti-corruption training sessions 42
Company reinforces its defenses for lawful and compliant operations and supports high-quality development through a clean
and principled corporate culture. Employee-level anti-corruption training sessions 6
Total hours of anti-corruption training 77
Upholding Business Ethics
Of which: Management-level anti-corruption training hours 68
The Company strictly complies with business ethics standards including the Fair Competition Law of the People’s Republic of
China and has established the Guidelines on Anti-Monopoly Fair Competition Anti-Bribery and Trade Secret Protection. In Employee-level anti-corruption training hours 9
ensuring fair competition efforts the Company systematically investigates and addresses practices such as false advertising
and bid rigging and adopts legal measures to safeguard market order. In anti-bribery management it has implemented Total attendance in anti-corruption training 32323
prevention and reporting mechanisms to foster a culture of integrity. Meanwhile the Company has strengthened its trade
secret protection system by enhancing the management of personnel and information carriers to ensure the security of core Of which: Management-level attendance in anti-corruption training 3552
business information.Employee-level attendance in anti-corruption training 28771
Enhancing the Policy Framework Anti-corruption training coverage rate (%) 97
The Company strictly complies with the Regulations on Disciplinary Actions Under the Communist Party of China and the
Regulations on Disciplinary Actions for Managers of State-Owned Enterprises among other applicable legal requirements. It Percentage of directors receiving anti-corruption training (%) 91
continuously strengthens its integrity and business ethics framework by revising core policies including the Implementation
Plan for Strengthening Oversight of the Top Leader and the Leadership Team the List of Decision-Making Matters and the Percentage of management personnel receiving anti-corruption training (%) 100
List of Matters Requiring Preliminary Party Committee Review. Guided by the principle of error correction rectification and
accountability the Company enhances follow-up supervision of issues identified through inspections and audits thereby Percentage of employees receiving anti-corruption training (%) 80
promoting the integration of corrective actions and systemic improvement and establishing a solid institutional basis for
compliant operations and clean governance.
35 36China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
Case Study 2025 Work Conference on Party Conduct Integrity and Anti-Corruption Strict Control of Compliance Risks
In April 2025 the Company convened its work conference on The Company integrates compliance management into all aspects of its operations. It has formulated and implemented the
Party Conduct Integrity and Anti-Corruption together with List of Compliance Review Authorities clearly defining compliance review responsibilities and authority boundaries at every
a disciplinary warning education meeting. The conference level to advance the optimization and enhancement of its compliance management mechanism. With a focus on legal risk
communicated the spirit of the plenary sessions of the higher- prevention and internal audit supervision the Company strengthens policy implementation standardizes processes and
level discipline inspection commission outlined key tasks for deepens professional training and capability development. Through systematic and refined compliance controls the Company
the year and required Party organizations at all levels to fully safeguards lawful operations and sustainable development.implement the spirit of the Central Committee’s Eight-Point
Regulation intensify efforts to strengthen discipline improve The Company formulated the Measures for the Identification and Assessment of Compliance Risks and conducted risk
conduct and combat corruption. Participants collectively identification evaluation and early warning. It embedded compliance review into business processes with a focus on key areas
viewed the warning education video Building a New Type of such as project investment and engineering construction and strengthened risk prevention measures and implementation
Clean Government-Business Relationship. The conference oversight. In addition the Company conducts regular risk inspections dynamically updates the risk prevention and control
further reinforced the responsibility of Party committees for list and continuously enhances its capabilities in risk identification and response thereby laying a solid foundation for stable
governance and discipline thereby fostering a clean and operations and the achievement of strategic objectives.upright political environment to support the Company’s high-
quality development.
2025 Work Conference on Party Conduct Integrity and
Anti-Corruption Risk Control and Compliance Training Performance
Total hours of compliance Total attendance in compliance Total number of compliance
Case Study Xi’aoke Holds Themed Party Day Activity on Integrity Education risk training risk training risk training sessions
In July 2025 Xi’aoke organized Party members 35 1000 14
and Party applicants to visit the Baogang Integrity
Education Exhibition Hall for a themed Party Day
activity. All Party members solemnly faced the
Party flag and reaffirmed their Party oath. Through
viewing typical warning cases and realistic exhibits Legal Compliance
they gained a deeper understanding of the harms
of corruption and underwent a profound ideological The Company has strengthened its legal compliance management system by formulating revising and implementing
purification. This activity encouraged Party institutional documents including the Measures for Legal Dispute Management of Northern Rare Earth. It has clarified
members and cadres to strengthen their defenses responsibilities and authorities for contract management standardized procedures and criteria for legal services reinforced
against corruption and moral erosion maintain a mechanisms for the prevention and resolution of legal disputes and enhanced the professional quality of legal services thereby
strong sense of integrity and self-discipline and providing robust legal support for the Company’s law-based operations and standardized management.consistently uphold the political qualities of loyalty
integrity and responsibility. Special Training on Legal Dispute and Legal Service Management Policy Themed Party Day Activity on Integrity Education at Xi’aoke Case Study
In January 2025 the Company conducted
specia l ized tra in ing on pol icies related to
Whistleblowing Channels legal disputes and legal services. The session provided a systematic interpretation of the
Measures for Legal Dispute Management of
The Company has established a three-dimensional online-and-offline supervision and reporting network. It has standardized
Northern Rare Earth and the Measures for Legal
the installation of physical complaint boxes and public notice boards across all subsidiaries publicized reporting hotlines
Service Management of Northern Rare Earth
and expanded online supervision channels through the Clean Wind in Baogang platform. The Company strictly implements
and addressed issues identified in legal and
procedures for handling petitions and reports and applies unified registration and closed-loop management to written letters
compliance inspections conducted in 2024. The
phone calls in-person visits and online submissions thereby effectively safeguarding the supervision rights of employees and
training further standardized the Company’s legal
the public.affairs management procedures and enhanced
The Company strictly implements measures to protect whistleblowers strengthens internal confidentiality mechanisms the professional competence and risk prevention
allows anonymous reporting and prohibits unauthorized verification of information related to anonymous whistleblowers. Any capabilities of legal department. Special Training on Legal Dispute and Legal Service Management Policy
intentional disclosure of informant information or retaliation against whistleblowers will be subject to severe accountability
upon verification thereby effectively safeguarding their legitimate rights and interests.
37 38China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
Lawful Tax Payments
Tax Payment Performance Investment Accountability
The Company strictly complies with national tax policies and
regulations as well as those of the regions in which it operates. It
has established the Tax Administration Measures of Northern Rare Total tax payments
Earth continuously standardizes tax payment practices ensures (billion) The Company places great importance on investor relations and adheres to an investor-oriented business philosophy
accurate tax calculation and timely completes tax declaration recognizing it as essential to strengthening corporate governance and enhancing corporate value. It responds promptly to
and payment. Meanwhile it strengthens whole-process dynamic
supervision to prevent tax risks. 1.74 market and investor inquiries continuously improves the accuracy and completeness of information disclosure effectively protects shareholders’ legitimate rights and interests and seeks to advance the coordinated growth of enterprise value and
shareholder returns.Internal Auditing Information Disclosure Compliance
The Company has advanced internal audit reform and established a series of regulations including the Internal Audit
The Company strictly complies with laws and regulations
Management Measures and the Measures for Auditing Economic Responsibilities of Principal Executives. In accordance with
including the Company Law the Securities Law and the Measures
the requirement of full audit coverage it conducts thorough audit supervision by focusing on key tasks and high-risk areas.for the Administration of Information Disclosure of Listed Information Disclosure Performance
The Company also continuously strengthens the audit team through professional training. It maintains ongoing follow-up on
Companies . It ensures that information disclosure is truthful
audit findings regularly monitors rectification progress and reinforces rectification accountability. These measures effectively
accurate complete timely and fair thereby communicating
prevent and mitigate operational risks while providing strong support for operational management and decision-making.corporate development information to investors enhancing Number of Number of
announcements regular reports
In 2025 the Company successfully completed 15 audit projects focused on annual priorities key subsidiaries and major risk transparency improving investor satisfaction and safeguarding
areas. the legitimate rights and interests of investors including their right
disclosed released
to know. In 2025 the Company disclosed 4 periodic reports and
65 ad hoc announcements submitting a total of 114 documents 69 4
to the Shanghai Stock Exchange. The Company was awarded
Internal Auditing Performance Grade A (Excellent) in the Shanghai Stock Exchange’s 2024–2025
information disclosure assessment.Number of audit projects Audit project correction rate (%)
15 95 Investor Relations
The Company integrates the protection of investors’ rights and interests throughout the entire process of high-quality
development. It regularly holds earnings briefings and general meetings of shareholders proactively communicates operational
updates and investment value through the Shanghai Stock Exchange E-Interaction platform and new media channels
continuously enhances the frequency and quality of investor communication and safeguards investors’ legitimate rights and
interests including the right to information.Case Study The Company Attended an Audit Professional Training on Construction Projects at
Baogang Group The Company has been recognized for two consecutive years by the China Association for Public Companies with the
Outstanding Board Office Practice Case and the Best Case for Annual Earnings Briefings. This achievement reflects strong
recognition from regulators investors and the capital market of the Company’s performance briefings and investor relations
In November 2025 the Company organized key management.personnel involved in construction project management
from all affiliated entities to participate in professional
training on construction project auditing hosted by
Baogang Group. Centered on the core elements of Investor Engagement Performance
the full project lifecycle engineering audit methods
and post-project evaluation framework development
the program combined classroom instruction with Number of Number of investor Number of questions answered e-Interactive
case analysis. It systematically enhanced participants’ earnings briefings engagement activities via e-interactive platform response rate (%)
professional expertise and practical capabilities laying held conducted (https://sns.sseinfo.com/)
a solid foundation for the further standardization of 100
the Company’s construction project management and
Audit Practice Training 4 50 210
supporting high-quality development.
39 40China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
Case Study The Company Hosted 20 Institutional Investors for a Research Visit
Advancing Digital-Intelligent
In July 2025 the Company hosted 20 institutional investors for a research visit including Changjiang Securities China
Asset Management and E-Fund. The parties engaged in in-depth discussions regarding industry development trends the Transformation
Company’s strategy and progress on key projects. Leveraging its strong operating performance and industry influence
the Company continues to attract considerable attention from the capital markets. The Company adheres to an investor-
centric approach innovates its communication methods enhances mutual trust and understanding and strives to improve
its investor relations management capabilities thereby supporting its goal of becoming a world-class leader in the rare The Company regards digital and intelligent transformation as a core driver in its efforts to become a world-class leader
earth sector. in the rare earth sector. It continually enhances its digital and intelligent architecture by establishing a leadership team for
IT and intelligent development strengthening top-level planning formulating an overall strategic plan and monitoring its
implementation. A dedicated office coordinates the development of digital and intelligent infrastructure improves digital
intelligent and information security management systems deepens collaboration among industry academia and research
institutions and supports talent development. Through systematic planning the Company fully harnesses the value of digital
Case Study The Company Hosted the SSE “I Am a Shareholder” Event for Investors and intelligent technologies creating a strong foundation for high-quality development.In August 2025 Northern Rare Earth hosted the
Shanghai Stock Exchange’s “I Am a Shareholder” Governance
event one of the most sought-after visits among
investors to listed companies. More than 50 investors
toured the production lines and museum gaining a The Company has established an Information and Intelligent Technology Group as a dedicated unit for digitalization responsible
firsthand understanding of the Company’s innovation for coordinating digital and intelligent planning project management and policy development. The team covers three core
achievements and development strengths. During business areas—infrastructure support smart operations and intelligent production—forming an organizational structure
the Q&A session management addressed investors’ with clearly defined responsibilities and specialized collaboration to advance the implementation of the digital and intelligent
questions on development strategy business planning transformation strategy.and related matters individually fostering open and The Company advances the intelligent development of its operational management and control systems. Focusing on three
substantive on-site dialogue. The event established an levels—business execution group management and control and strategic decision-making—it is building a group-level smart
efficient and transparent communication platform and operations management system accelerating the integration of digital and intelligent technologies and steadily establishing a
reflected the Company’s open and inclusive approach new model of information-based management and control. These efforts help drive digital transformation across all business
to investor relations management. areas. In parallel the Company develops a data acquisition and visualization platform. Through data aggregation optimization
“I Am a Shareholder” Event for Investors and standardization it conducts indicator analysis and visualization applications thereby providing accurate data support
for strategic decision-making. The Company also promotes the intelligent development of production management. By
emphasizing equipment automation centralized control automated material handling smart sensors and smart instruments
it marches toward a high level of equipment automation. In addition it accelerates the deployment of MES (Manufacturing
Execution Systems) across major production units to optimize the allocation of resources related to manufacturing efficiency
cost and quality while continuously strengthening the foundation for smart manufacturing. With respect to infrastructure the
Shareholder Return Commitment Company has established a unified platform through the Northern Rare Earth private cloud platform a comprehensive Northern Rare Earth data network system a security defense system and a video conferencing system as well as the completion of the
Northern Rare Earth centralized control center. Together these initiatives provide a solid foundation for digital transformation.The Company adheres to an investment-oriented approach
fully respects shareholders’ statutory rights to asset returns and
upholds the operating philosophy of rewarding investors with strong Since its listing the Company
performance. It formulates and implements the profit distribution has paid dividends
policy set forth in its Articles of Association as well as its shareholder
return plan. Through a sustained stable and transparent cash
dividend policy the Company effectively safeguards investors’ 22 times
reasonable investment returns.with cumulative dividend
In 2025 the Company implemented its 2024 profit distribution plan payments totaling
distributing a total of 127 million yuan in pre-tax cash dividends to all
shareholders. Since its listing the Company has paid dividends 22
billion yuan
times with cumulative dividend payments totaling 5.546 billion yuan 5.546
ranking first among listed rare earth industry companies in dividend
scale and delivering substantial returns to shareholders and investors.
41 42China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
Smart Operations Architecture for Digital Transformation Strategy
The Company has positioned its strategy around building a smart rare earth ecosystem and becoming a world-class leader
in the rare earth sector. It has applied advanced technologies including cloud computing big data the Internet of Things
mobile internet artificial intelligence and blockchain to support business development. Centered on the construction goals
Group Control of one platform five lines two supports and one set of standards the Company has developed a digital model characterized
by intelligent operational management and smart production operations. This approach continues to create value through cost
reduction efficiency improvement energy conservation emissions reduction and compliant operations thereby strengthening
overall operational performance and competitive position.Decision Analysis Applications Investment Management
The Company deepens industry-university-research collaborative innovation and actively engages in IT project cooperation with
KPI & Investment Project Initiation Post-investment research institutions and industry-leading enterprises. Through technology transfer and joint R&D it continuously enhances the
Strategic Financial Decision Plant Digital Fixed Assets Post-project
Indicator Planning & & Feasibility Study & Property Rights
Management Analysis Support Operations Operations Implementation Evaluation level of digital and intelligent development. In project implementation the Company promotes the deployment of intelligent
Control Scheduling Decision-making Management
equipment and integrated systems accelerates automation upgrades and control system improvements and steadily increases
the numerical control rate of key processes and the digitalization rate of production equipment. It also introduces smart
Financial Budget Capital & Fund Financial Statement Financial Shared Audit Legal Compliance Collaborative
System Management System Accounting System Consolidation Services System Management System Management & Control warehousing and robotic applications using intelligent technologies to improve both production efficiency and management
General Online
Budget Budget Fund Financing Fixed Data Set Consolidation Service Entity Audit Major Matter Contract Collaborative Office System oversight. At the same time the Company places strong emphasis on developing digital talent by expanding professional
Ledger Reimburse-
Formulation Control Planning Management Assets Management Calculation Platform Management Database Management Management
Accounting Management ment training and encouraging employee participation in project implementation to gain practical experience. In doing so it is
HR Management System
Authorization
Data Query Consolidation Document Electronic Audit
Budget Budget Cash Risk Audit Case & Investment building a team of digital and intelligent professionals with solid theoretical foundations and extensive practical expertise
Management Management & Entry & Analysis Imaging Accounting Organization Analysis Adjustment Assistance Management Approval
Management Management Management Archives Management Production Control System
Management thereby establishing new competitive advantages in the digital economy era.Party Building Management Assets & Equipment Management Supply Chain Management R&D Management Cost Management Digital Transformation Risks and Opportunities
Party Affairs Party Member Fixed Assets Real Estate Procurement Purchase Project Product Cost Cost
Management Education Management Management Planning Order Management Design Accumulation Accounting Risk/Opportunity Potential Financial Influence on
Risk/Opportunity Responses
Process Process Cost Cost
Cadre Democratic Intangible Assets Asset Information Inventory Procurement Description Impact Decision-making Design Simulation Allocation Analysis
Management Evaluation Management Management Management Settlement
File Management Engineering Project Management
Party Member Party Equipment Information Operation Sales Delivery Data centralization Business
Services Publicity Management Management Planning Management File File Project Project
Collection Inquiry Initiation Execution This will affect We continuously expands interruptions lead
Party Affairs Data Maintenance Material Customer Sales File Statistics Project Project the feasibility strengthen our
Supervision Analysis Management Management Management Settlement Classification Management Monitoring Evaluation organizational to efficiency losses
and sustainability network protection
boundaries and data breaches
of digital system monitor
broadens the attack trigger compliance
Cybersecurity transformation antivirus operations
surface thereby fines and litigation
and Data as well as the in real time and
Risk complicating compensation Security Company’s risk use encryption
security while system
control business technology to
management and recovery and
operations safeguard sensitive
elevating the risk of emergency
The Company has established several internal policies including and strategic data among other cyberattacks and response incur
the Measures for the Evaluation of Digital and Intelligent investments. measures.data breaches. additional costs.Management the Rules on Data Security Management of
Information Systems and the Emergency Response Plan for This compels
Cybersecurity Incidents thereby strengthening its information By leveraging digital We are building us to place
security governance framework. Its official website has obtained platforms to connect By applying industry-level digital digitalization at
Grade-3 certification under the National Information System upstream and automation to platforms to enhance the core advances
Security Level Protection scheme. Core systems including downstream players reduce labor data interoperability the organization’s
human resources engineering project management and asset across the industrial costs and drive and business transformation
management have completed Grade-2 protection assessments chain we can drive revenue growth collaboration toward platform-
providing a solid foundation for digital and intell igent Empowering business model we can improve deepening based and
development through standardized governance and robust Information System Security Level Protection Industrial innovation and the collaboration data analytics
Opportunity ecosystem-security controls. Certificate Development industrial ecosystem efficiency of the and intelligent oriented models
collaboration industrial chain applications to
and structure
achieving a leap lower end-to-end improve decision-
resource allocation
from internal operating costs making accuracy
and business
efficiency gains and explore new and drive value
strategies
to industry-wide markets. enhancement across
around industrial
empowerment. the industrial chain.collaboration.
4344
Financial
Statement
Payables
Receivables
Strategic Decision- Group Management Business
making Layer & Control Layer Execution LayerChina Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
Case Study Precise Collaboration in Software Development to Create New Management Models Case Study The Company Scaling Up Its Digital and Intelligent Workforce
In 2025 the Company advanced the deep integration of information technology and industrialization. In collaboration In 2025 the Company intensified its professional training initiatives in digital transformation intelligent manufacturing and
with strategic partners it jointly developed an engineering project management and control system an asset equipment IT project management in alignment with its digital transformation strategy. Throughout the year the Company conducted
management system and a digital intelligent unified operations management platform. By leveraging the complementary more than 20 training sessions including participation in the Iron and Steel Industry Information Security Conference
strengths of all parties the Company conducted coordinated system design development and implementation. The the 5th Intelligent Manufacturing Innovation Competition discussions on the 2025 plan for national rare earth standards
engineering project management and control system covers 23 affiliated entities and enables end-to-end digital and industry standards lectures on artificial intelligence and the transformation and upgrading of corporate financial
management of project initiation procurement construction and acceptance thereby improving the standardization of management and training on digital and intelligent management standards technical standards data governance
project oversight. The asset equipment management system covers 18 affiliated entities establishing a unified standards cybersecurity and business information system development. Participants included management and technical personnel
framework and enabling full-lifecycle data traceability and intelligent equipment management. In addition Northern at all organizational levels. The Company adopted a combined approach of bringing in external experts and sending
Magnetic Materials initiated construction of a digital intelligent unified operations management platform. Centered on an employees for external learning supplemented by online and offline formats enabling employees to gain practical
intelligent manufacturing architecture the platform is designed to meet the lean production requirements of rare earth experience through benchmarking studies and project implementation. This approach has developed a cohort of digital
alloys enhance production transparency increase capacity and optimize resource allocation thereby strengthening the and intelligent professionals with both theoretical knowledge and practical capabilities thereby strengthening the talent
Company’s core competitiveness. base for enhancing the Company’s digital and intelligent capabilities.Case Study Smart Production and Tiered Cultivation
In 2025 the Company continued to advance the transformation and upgrading of intelligent manufacturing. Through
automation enhancements and improvements to control systems the numerical control rate of key processes increased
to 80.61% marking a shift from limited control in certain processes to full numerical control coverage in core operations.In addition through equipment digital retrofitting sensor installation and system integration the digitalization rate of
production equipment reached 60.55%. The Company also introduced robots and automated equipment achieving a
100% substitution of human labor in 3D positions，thereby strengthening both production efficiency and management
control through intelligent technologies. Meanwhile the Company steadily advanced the tiered development of smart
factories. It formulated and issued the 2025 Action Plan for the Tiered Cultivation of Smart Factories which clearly
defines action objectives implementation pathways specific measures and work requirements effectively promoting the Digital-Intelligent Workforce Training
implementation of this cultivation strategy. As a result the Company was recognized as an Excellent-Level Smart Factory.
45 46China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
Management of Impacts Risks and Opportunities Case Study Special Cybersecurity Training
In August 2025 the Company conducted a series
In advancing its digital and intelligent transformation the Company gives equal weight to risks and opportunities systematically
of thematic cybersecurity training sessions for
establishing a multidimensional risk control mechanism that encompasses information security talent development project
cybersecurity managers technical specialists
collaboration and related areas. In the area of information security it has implemented asset inventories vulnerability
and employees in key roles across functional
detection and situational monitoring to enable proactive risk identification. In accordance with level protection requirements
departments and subsidiaries. The sessions
it conducts compliance assessments and impact analyses deploys a defense-in-depth framework and reinforces data
covered networking fundamentals industrial
encryption backup and endpoint access management thereby building a comprehensive security defense line for digital and
control security cybersecurity awareness and
intelligent development.the Company’s cybersecurity management
To address talent- and project-related risks during the transformation process the Company focuses on strengthening its requirements. This training strengthened
digital talent pipeline increasing investment in practical training and improving incentive and retention mechanisms to mitigate employees’ understanding of cybersecurity
risks arising from technology capability gaps and critical position vacancies. At the same time it has established a digital project policies enhanced organization-wide risk
promotion mechanism with defined milestone controls and collaborative responsibilities while enhancing the integration of awareness and protective capabilities and
business operations and data interoperability. Through specialized training regular drills and end-to-end process control the established a strong foundation for reinforcing
Company ensures the steady and effective advancement of its digital transformation. the organization’s data and information security
defenses.Management Process of Impacts Risks and Opportunities
Special Cybersecurity Training
Identification Assessment Response
We maintain an inventory We assess system compliance We implement a defense-
of critical information with classification protection in-depth strategy and Case Study Data Security Emergency Drill in the Core Server Room
systems and conduct requirements and evaluate maintain data backups
regular vulnerability scans the impact of vulnerabilities strengthen access controls
and situational awareness and unauthorized access. and vulnerability remediation In September 2025 the Company conducted a data security emergency drill simulating attack scenarios involving
activities to identify risks We also examine deviations establish a digital project suspicious IP scanning and vulnerability exploitation. The emergency response team and technical personnel from
of cyberattacks and data in schedule cost and promotion mechanism with the operation and maintenance provider responded promptly implementing the full set of procedures outlined in
breaches. We also closely collaboration efficiency in clear milestone controls and the emergency plan including IP blocking incident reporting attack assessment and strategy optimization. The drill
monitor risks associated with digital projects. In addition collaborative responsibilities validated the effectiveness of the emergency response mechanism strengthened the participants’ coordinated response
system integration complexity we determine whether the and improve digital talent capabilities and provided practical experience for enhancing the Company’s data security defenses.weak interoperability between talent structure supports pipelines through hands-
business and data systems transformation needs and on training and optimized
delays in digital transformation identify constraints on strategy incentives to ensure the
projects and human resource implementation arising from coordinated development of
challenges including shortages in key technical technology and business.insufficient digital talent roles low training conversion Metrics and Targets
reserves technology capability rates and talent attrition risks.gaps and inadequate training
By the end of 2025 the Company had effectively completed the development of
mechanisms.its group-level information management and control system encompassing three
tiers: business execution group management and control and strategic decision-
making. It established an integrated information platform covering core business
functions including finance human resources production operations energy safety
procurement and sales product traceability equipment assets engineering projects
and disciplinary inspection management. This platform has been deployed across
all holding subsidiaries and above. Finance and human resources systems achieved
full coverage at every organizational level while production control equipment asset
management and other systems were extensively implemented in major production
units. Together these advances have laid a strong digital and intelligent foundation for
management modernization data-driven decision-making and operational efficiency.
47 48China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
Metrics Targets
In 2025 the Company invested 219.4355 million yuan in its digital and intelligent transformation. No data leakage incidents In 2026 the Company’s digital and intelligent development will
occurred during the year and the Company received multiple awards in the digital and intelligent field underscoring the be guided by Xi Jinping Thought on Socialism with Chinese
successful implementation of its achievements in a secure and stable operating environment. Characteristics for a New Era. Anchored in the strategic direction
of high-end intelligent and environmentally sustainable
development it will fully implement national plans for digital
Information Security Management Performance and intelligent transformation. With a focus on intelligent
production smart operations data valorization and proactive
safety management the Company will prioritize optimizing data-
Metric 2025 Value
sharing mechanisms and enhancing intelligent manufacturing
Information security training 33 sessions capabilities thereby systematically advancing digital-intelligent
integration and the deep transformation of the entire industrial
Total hours of information security training 60 chain.Total attendance in information security training 125 Digital and Intelligent Management Work Targets
Number of data governance items 24.6 million Dimension Target
Number of cybersecurity risk assessments and security hardening activities 4 Production
Equipment CNC rate of key processes ≥ 82%; digitalization rate of production equipment ≥ 65%
Number of vulnerability scans on business system hosts 12 Digitalization
Number of cybersecurity emergency drills 2
Smart Factory
Number of emergency response incident handlings 5 15 entities meet the basic-level smart factory standards; progressively advancing to Construction higher levels
Number of security device signature database updates 12
Intelligent
Number of national cybersecurity threat intelligence handlings (batch) 53
Applications Develop 5 typical scenarios; establish 2-3 industry standards
and Standards
Number of internet asset attack surface scans and penetration tests 5
Number of cybersecurity alerts handled About 2400 Supply Chain
and Digitalization Establish the supply chain system and form a full-business digital support system
About 22000 System
Number of network attack blocks
(Number of daily blocks)
Number of vulnerability remediation programs 5 Data Complete data visualization projects preliminary exploration of data-assisted decision-
Applications making
Number of cybersecurity policy optimizations 30
Cybersecurity Industrial control systems of major entities achieve Level 3 Protection Standard (Grade 3)
49 50China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
51 52China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
Responsibility Implementation
Environmental Compliance Management
The Company continuously improves its environmental protection management
system strengthens the foundation of environmental governance and ensures the
standardized and orderly implementation of all environmental protection activities.The Company fully integrates environmental protection requirements It requires all branches and subsidiaries to fully fulfill their primary responsibilities
into strategic planning and corporate governance. It has established In 2025 the Company incurred under the principle that the Party and government share the same responsibility
and refined its internal environmental management system dedicated environmental protection and each post has dual responsibilities (for routine work and environmental
clarified responsibilities strengthened supervision and assessment expenditure of compliance). All entities are required to strictly comply with environmental laws
and defined environmental targets to continuously enhance its and regulations and sign Environmental Governance Responsibility Agreements to
capacity for ecological risk prevention and control and improve 707 ensure clearly defined responsibilities and rigorous implementation. By the end of overall environmental management. In 2025 the Company incurred million yuan 2025 the Company and its 24 branches and subsidiaries had obtained ISO 14001 ISO 14001 Environmental Management
dedicated environmental protection expenditure of 707 million yuan. environmental management system certification. System Certificate of Northern Rare Earth
Environmental Management System Environmental Management System Certification Status of the Company and Its Branches and Subsidiaries
Management Structure
Number of the Company and its affiliates Percentage of the Company and its affiliates
The Company strictly complies with the Environmental Protection Law of the People’s Republic of China and relevant local with environmental management system with environmental management system
regulations. It has established a three-level environmental management structure with clear top-down responsibilities and certification certification
authority thereby ensuring the tiered implementation of environmental protection obligations and the orderly advancement of
key initiatives. In 2025 the Company formulated the Special Work Plan for Ecological and Environmental Protection of Northern 24 85.71%
Rare Earth and established a dedicated leading group. This framework systematically organized the year’s key environmental
protection tasks ensured the orderly and efficient implementation of environmental protection efforts and supported the
sound and stable operation of the environmental management system.Environmental Management Architecture Environmental Management Responsibilities
Environmental As the Company’s highest decision-making body for environmental management the The Company steadily advances environmental compliance management through regular supervision inspections and closed-
Protection committee is fully responsible for overall coordination and strategic planning ensuring loop rectification. It strengthens source control of environmental risks improves the emergency management system conducts
Committee the effective implementation of environmental objectives and strategies. targeted training in key areas and promotes the effective implementation of environmental protection checklists. These efforts
continuously enhance management capabilities and provide a solid foundation for the Company’s green and sustainable
development.Environmental This department as a specialized entity for environmental protection is responsible
Protection Management for supervising inspecting and guiding the daily environmental protection activities Environmental Oversight & Audit
Department of all branches and subsidiaries.The Company strictly complies with laws and regulations on ecological and environmental protection and oversees all branches
and subsidiaries in fulfilling their primary environmental responsibilities. All pollutant-discharging entities formulate and
implement self-monitoring plans strengthen quality control and release monitoring data on schedule. The online monitoring
Branches and They serve as the accountable entities for environmental protection management data of key pollutant-discharging entities are interconnected with local ecological and environmental authorities enabling real-
Subsidiaries fully assuming the environmental protection responsibilities of their respective time data transmission.organizations. They further refine and allocate environmental protection objectives
and tasks according to actual conditions to ensure that all measures are fully In 2025 the Company conducted 90 special inspections covering central environmental protection supervision solid and
implemented and yield measurable results. hazardous waste management environmental protection equipment and facilities rainwater-sewage separation during the
rainy season and annual reviews of external affiliated enterprises. All identified issues were fully rectified effectively reducing
environmental risks.
53 54China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
Environmental Risk Assessment & Prevention Environmental Awareness Promotion
The Company places significant emphasis on environmental risk prevention and control. It reviews the emergency response
plans of all branches and subsidiaries identifies environmental risk points across the full operational process establishes a The Company continuously strengthens its environmental management
group-level environmental risk database and continuously optimizes its hierarchical environmental risk management and capacity by establishing a hierarchical training system that integrates
control system to strengthen environmental emergency response capacity. In addition the company conducted annual support headquarters coordination with the joint efforts of branches and
inspections of six non-local enterprises: Zibo Lingzhi Xinfeng Xinli Gansu Rare Earth Beijing Sanjili Anhui Permanent Magnet subsidiaries thereby enhancing the professional competence of
and Ningbo Zhanhao. Through these inspections the Company not only fulfilled its environmental supervision responsibilities environmental management personnel. To accurately identify and
but also engaged in in-depth discussions with these enterprises on local environmental protection policies and implementation eliminate potential environmental risks the Company invited experts
standards. The Company applies differentiated management to non-local affiliates while fully respecting local regulatory from the ecological and environmental bureau to provide specialized
requirements and ensuring compliance with applicable laws and regulations. training on corporate environmental compliance guidance. The training
offered systematic explanations and addressed questions regarding key
aspects of daily environmental management priorities in government
law enforcement and oversight and the applicability of relevant laws
Environmental Emergency Management and regulations thereby comprehensively improving employees’
awareness of environmental compliance and their professional
The Company revised three management policies: the Response Plan for management capabilities.In 2025 the Company
Environmental Emergencies the Response Plan for Radiation Accidents
conducted a total of
and the Response Plan for Severe Air Pollution Events. It also required all
branches and subsidiaries to conduct practical drills addressing potential
risks such as hazardous waste leakage hydrochloric acid leakage and 27 Environmental Protection Training Performance
unexpected malfunctions of environmental protection facilities thereby environmental emergency
effectively enhancing their capacity to respond to environmental incidents. In drills
2025 the Company conducted a total of 27 environmental emergency drills. Number of environmental Environmental Attendances at
protection training protection training environmental protection
sessions hours training
Case Study Emergency Drill for Hydrochloric Acid Leakage 69 167 3612
In 2025 the Company conducted
a specialized emergency dril l for
hydrochloric acid leakage simulating
the on-site conditions of a sudden
accident. In accordance with the Case Study Specialized Environmental Performance Training
emergency response plan practical 案例
exercises were carried out for accident
detection step-by-step reporting In May 2025 the Company organized a company-
plan activation emergency response level special environmental protection training
personnel evacuation and emergency program. Focusing on key topics such as pollutant
maintenance. A subsequent review discharge permit management standardized
and optimization of each response management o f genera l so l i d was te and
procedure were completed. The drill hazardous waste and professional knowledge of
effectively validated the scientific environmental management systems the training
basis and operational effectiveness precisely addressed the practical operational
of the environmental emergency needs of environmental management. Through
response mechanism accumulated systematic and professional training arrangements
practical experience and enhanced the program effectively strengthened weak areas Emergency Drill for Hydrochloric Acid Leakage
cross-departmental coordination and in environmental management across all affiliated
collaboration capabilities. entities and further enhanced the professional Specialized Environmental Performance Training
competence and performance capabil ity of
environmental management personnel.
55 56China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
Climate Change Response Strategy
In formulating its climate change strategy the Company comprehensively considers industry characteristics policy trends and
regional conditions. In light of its business structure and development realities it identifies assesses and manages climate-
related risks and opportunities. By conducting rigorous evaluations of climate factors across risk and opportunity categories
The Company actively supports China’s Dual Carbon goals and complies with international agreements including the United
and impact timeframes the Company establishes a sound basis for developing precise countermeasures.Nations Framework Convention on Climate Change (UNFCCC) and the Paris Agreement . Guided by IFRS S2 Climate-related
Disclosures issued by the ISSB and the Shanghai Stock Exchange’s Sustainable Development Reporting Guidelines the
Company continues to strengthen its climate change management system and is committed to achieving high-quality green List of Climate-related Risks
and low-carbon development.Risk Impact Strategy and Decision-
Potential Impact Financial Impact Responses
Type Time frame Making Impact
Governance Physical Risk
The Company implements the Action Plan for Establishing a Carbon Footprint Management System and has formulated the
2025 Special Work Plan for Carbon Footprint Management of Northern Rare Earth. It accelerates the establishment of a carbon High-temperature Extreme heat and cold These risks drive We establish
footprint management system promoting the transition to green and low-carbon production models and fostering new quality allowances and the waves pose significant environmental comprehensive
productive forces. purchase of cold-risks to employee adaptation retrofits work stoppage
resistant materials
The Company continues to strengthen its climate change management system and has formulated a Policy Statement on health resulting in in factory areas and protocols ensure have led to an
Climate Change Response. It fully integrates green and low-carbon targets into its corporate governance structure establishes increased operational integrate employee the availability of Acute increase in labor
a top-down management system with clearly defined responsibilities and authorities and coordinates labor division and Short term costs. Specifically health protection emergency supplies risk costs; Increase in
collaboration across all relevant functions to enhance its overall climate change response capacity. these temperature and equipment and develop early energy consumption
fluctuations elevate safeguarding into warning systems in
expenses and
expenses related to routine safety collaboration with
equipment operation
temperature control in management meteorological
and maintenance
The Board of Directors serves as the highest decision-making body for climate-related smelting processes. decisions. agencies.costs.Board of matters. It is responsible for reviewing and guiding the Company’s climate response strategies
Directors and targets overseeing the implementation of development strategies including climate-
related actions and ensuring that climate change considerations are fully integrated into the
Company’s core strategy.Intensified drought Water extraction
We integrate water
conditions in Northern costs and water To enhance
fees continue to resource recycling China have resulted water resource
Strategy into the core of
The committee is responsible for reviewing and organizing key climate-related matters in significant water rise; production management and ESG technological
Committee supporting the Board of Directors in formulating climate strategies and assisting in overseeing scarcity in essential may decrease we implement transformation and
the implementation of climate targets plans and measures. mining regions due to production advanced water-
restrictions promote the large-particularly Inner saving technologies
Mongolia. This shortage affecting
scale application
and develop
operating revenue; of water-saving
Medium adversely affects critical comprehensive technologies.Task Force Chronic term & processes such as
investment in water recycling
Carbon Risk rare earth mining ore geological disaster systems.Footprint This task force fully implements climate change policies assesses manages and monitors Long term
We strengthen
dressing and smelting management
Management climate-related issues and promotes the continuous optimization of the governance structure. geological monitoring
operations. increased. We establish real-and disaster early
Impairment of fixed time monitoring warning in mining
Thawing permafrost assets and increase of mining area areas and reassess
undermines geological in maintenance stability and employ the development
stability in these costs; increased reinforcement
They are responsible for integrating climate factors into key components of internal decision- intensity and long-areas dramatically special expenditures techniques in
Departments making and operational management establishing corresponding objectives and indicators term safety of mining heightening the risk of for production permafrost regions.
(Entities) and submitting them to the Company’s decision-making body for approval in accordance with operations.landslides. safety.
established procedures.
57 58China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
Risk Impact Strategy and Decision- Impact Strategy and Decision-
Potential Impact Financial Impact Responses Risk Type Potential Impact Financial Impact Responses
Type Time frame Making Impact Time frame Making Impact
Transition Risk Transition Risk
We enhance the Public and investor
applications of rare earth scrutiny regarding
We effectively integrate
elements in emerging high carbon
green and low-carbon
sectors such as energy emissions and water-
Adverse public principles into our
Increased tax storage and hydrogen intensive production
technologies and practices pose a reputation may We integrate ESG
strategic development
expenditures We integrate
impair financing performance into and operational
The low-carbon from carbon carbon asset establish closed-loop significant threat management. By
transition may result allowance management supply chains and refine to brand value and
access core corporate
potentially governance implementing energy-
in tighter carbon purchases or into operational recycling innovations. customer loyalty.resulting in and decision- saving and emission-
emission quotas carbon tax decision-making We accelerate a Climate risk higher green making indicators reduction initiatives
Policy Medium the imposition of payments as and proactively transformative shift Reputation Medium mitigation strategies credit interest strengthen we directly address
Risk term carbon taxes or well as rising deploy energy- toward a green low- Risk term are now under rates narrower communication stakeholder concerns
the upgrading of costs associated saving and carbon industry by rigorous examination financing with stakeholders and release rare earth
environmental with upgrading carbon-reduction implementing reductions by regulators channels and and enhance the related EPD standards.standards increasing and retrofitting technologies to in source-level emissions investors ESG rating increased Company’s green
production costs. environmental ensure policy We prioritize increasing the adoption agencies and the costs for brand image. Rewards will
protection compliance. collaboration with of renewable electricity public. Failure to management be provided to green
facilities. external partners to promoting the use of adopt meaningful and ESG factories. strategically explore
permanent magnet measures may disclosure. pathways for achieving
motors and significantly cause skepticism
the Dual Carbon goals in
reducing the carbon and damage the
the rare earth industry.footprints of products. reputation of the
Company.Fluctuations in
revenue from To advance our
We optimize
core products We enhance the sustainability initiatives
Demand fluctuations our product
are intensifying. applications of rare earth we will establish
in the new energy mix increase
Accelerated elements in emerging We are firmly supporting photovoltaic
sector are likely R&D investment
adoption sectors such as energy aligned with China’s power stations secure
to diminish the in emerging
of circular storage and hydrogen Dual Carbon long-term agreements
need for rare earth application
technology technologies and objectives which We strengthen the for green electricity
permanent magnets scenarios and
substitution establish closed-loop necessitates ongoing strategic direction procurement and
while advances in extend the
may reduce supply chains and expand enhancements in Continuous of technological actively pursue
circular economy industrial chain
utilization of recycling innovations. energy-saving and growth in R&D innovation renewable energy
technologies may to mitigate risks emission-reduction investment optimize resource
Short term some production subsidies.lessen dependency from downstream We accelerate a technologies the and capital allocation efficiency
Market & Medium capacity. on primary rare earth demand Short termtransformative shift Technology broader adoption expenditure will and ensure that We will enhance energy
Risk term & materials. & Medium To meet fluctuations. toward a green low- Risk of renewable raise operating technological efficiency through
Long term termcustomer carbon industry by energy sources costs in the investment aligns process upgrades in
Increasing consumer We integrate
requirements implementing reductions and increased short term and with the long- high-consumption
preference for low- low-carbon
additional in source-level emissions investments reduce current- term objectives sectors.carbon products certification and
investment in increasing the adoption in research period profits. of cost reduction
and services is carbon footprint
low-carbon of renewable electricity development and and efficiency We will invest in
driving stringent management
process promoting the use of infrastructure. These enhancement. the development of
requirements for into our supply
retrofitting and permanent magnet commitments may young STEM talent
emission reductions chain system
green product motors and significantly elevate operational to strengthen our
during production to enhance the
R&D is necessary reducing the carbon costs. innovation capabilities
phases. competitiveness of
which will footprints of products. and expedite
green products.increase short- breakthroughs in
term costs. essential technologies.
59 60China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
List of Climate-related Opportunities Management of Impacts Risks and Opportunities
Opportunity Impact
Type Time frame Opportunity Impact Responses The Company places significant emphasis on the potential risks arising from climate change and fully incorporates them into
The rapid expansion of China’s wind and solar its ESG risk management system. By identifying assessing monitoring and responding to climate-related risks the Company
power capacity has significantly enhanced the price We construct and apply distributed continually enhances its climate resilience and adaptability while effectively mitigating the potential impacts of climate change
competitiveness of green electricity leading to a photovoltaic power stations actively on its operations.gradual decrease in corporate procurement costs participate in electricity market
and offering more sustainable energy alternatives. fluctuations and increase green Risks and Opportunities Management Process
Concurrently regulatory frameworks-such as electricity consumption. We apply
mandatory green certificate consumption quotas biomass energy in areas where
for energy-intensive enterprises-are accelerating conditions allow.the transition toward low-carbon operations. Identification
Short term We strengthen R&D in the clean
Energy
& Medium Furthermore the emergence of the hydrogen and low-carbon sectors conduct We comply with the Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of Listed
Sourcing
term energy sector presents transformative demonstrations of integrated low- Companies-Sustainability Report (Trial) and the Guide No. 4 for Self-Regulatory Supervision on Listed
opportunities. Specifically green hydrogen smelting voltage solid-state hydrogen storage Companies of the SSE-Compilation of Sustainable Development Reports (Revised in January 2026) to
technology has the potential to replace fossil fuels and refueling systems and support systematically identify climate-related risks and opportunities that may affect our operations financial
drastically reducing emissions in metal production. enterprises in transition toward green performance and strategic objectives.Inner Mongolia with its abundant wind and solar and low-carbon development.resources provides an optimal environment for
cost-effective green hydrogen production enabling We establish hydrogen-powered two-
corporations to develop robust green hydrogen wheeler production lines to promote
value chains and optimize their energy mix for green and low-carbon transition.effective decarbonization. Assessment
The low-carbon transition strategy effectively We enhance energy efficiency through For the identified climate-related risks and opportunities in-depth assessments are conducted using
enhances resource and energy efficiency strategic upgrades to environmental qualitative and scenario analysis methods to evaluate the severity of each risk and the potential value
leading to three significant advantages-reducing protection equipment along with the of each opportunity.Utilization Medium
operational costs through efficiency improvements gradual retirement of high-energy-
Efficiency of term &
strengthening long-term competitive positioning in consuming machinery.Resources Long term
the market and aligning with growth opportunities We optimize water management by
in the burgeoning global green economy ultimately using advanced recycling systems to
creating sustainable value. enable closed-loop water utilization. Monitoring
The sustained growth of green industries We continuously monitor climate-related indicators including policy and regulatory changes market
particularly in new energy vehicles (NEVs) wind We rigorously investigate the carbon supply and demand dynamics the frequency of extreme weather events and carbon emissions from
power and photovoltaics is significantly driving the reduction potential of rare earth corporate operations. This enables us to identify trends in risks and opportunities and provide timely
demand for low-carbon products and advanced products across critical application accurate information to support management decision-making.Products Medium materials such as rare earth permanent magnets. fields while simultaneously intensifying
and Services term This trend enhances corporate competitiveness. our research and development
Hydrogen energy has emerged as a promising initiatives focused on low-carbon
sector functioning both as a clean energy carrier technologies and sustainable product
for decarbonization and as a foundational industrial innovation.Response
feedstock with distinct competitive advantages. Targeted response plans are formulated for identified climate-related risks and opportunities the
We conduct comprehensive carbon adoption of low-carbon technologies and green energy substitution is promoted the implementation
accounting throughout the rare earth of all measures is ensured and climate risk prevention and control capabilities are continuously
The swift evolution of green trade is propelling industrial chain to establish a robust enhanced.Short term companies toward low-carbon transitions where carbon footprint database for rare earth
Market & Medium early adopters will secure competitive advantages products.term and effectively navigate international green trade
challenges. We accelerate strategic initiatives
in the new energy sector driving a
transformative energy mix.
61 62China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
Metrics and Targets GHG Emission Reduction Practices
In promoting carbon emission reduction measures the Company has constructed a distributed photovoltaic power station with
Low-carbon Targets a total installed capacity of 5.96 MW and an annual electricity generation of 6 million kWh. The project is expected to reduce
carbon dioxide emissions by approximately 5000 tons per year. Meanwhile the Company is accelerating the replacement of
Guided by a development path of ecological priority and green development the Company advances energy conservation high-efficiency energy-saving equipment. By 2025 it had installed a total of 326 rare earth permanent magnet motors and
carbon reduction and efficiency improvements while integrating carbon peaking and carbon neutrality goals into corporate 285 high-efficiency motors thereby continuously improving equipment energy efficiency. Cumulative sales of manufactured
management. Beginning with product carbon footprint management it defines the objectives implementation pathways and permanent magnet motors reached 46402 kW contributing to improved energy efficiency across society and further
key tasks for establishing a carbon footprint management system. Through strengthened cross-departmental coordination enhancing overall energy utilization while reducing carbon emissions in production processes.and task execution the Company drives low-carbon operational transformation supports the green transition of industrial and
supply chains continuously enhances green and low-carbon competitiveness and aspires to serve as a benchmark for green
development in the rare earth industry.
2025 Low-carbon Targets 2026 Low-carbon
Performance Goals
The carbon emission intensity of 7 key assessed The carbon emission intensity of 7 key assessed entities
entities reached 4.48 tCO2/tREO. ≤ 4.29 tCO2/tREO
The carbon emission intensity of the smelting and The carbon emission intensity of the smelting and
separation segment reached 3.97 tCO2/tREO. separation segment ≤ 3.93 tCO2/tREO
The carbon emission intensity of metal production The carbon emission intensity of metal production
enterprises reached 7.77 tCO2/t. enterprises ≤ 7.25 tCO2/t
The carbon emission intensity of the new materials The carbon emission intensity of the new materials
segment reached 1.60 tCO2/t. segment ≤ 1.36 tCO2/t
Greenhouse Gas Emissions
5.96 MW Distributed Solar PV Plant
The Company conducts greenhouse gas accounting in accordance with the General Rules for Greenhouse Gas Emission Leveraging its core strengths the Company continuously advances research on green technologies and promotes the
Accounting and Reporting for Industrial Enterprises using emission factors derived from relevant parameters in the steel development of Environmental Product Declarations (EPDs) as well as the accounting and certification of product carbon
industry. footprints. It actively drives research and development in green and low-carbon technologies processes materials and
Greenhouse Gas Emissions1 equipment while participating in the formulation and revision of carbon footprint-related standards thereby contributing to
industry-wide carbon emission reduction.Greenhouse gas emissions 2024 Value 2025 Value
Direct GHG emissions (Scope 1) (tCO2e) 343967.58 489376.71 Low-carbon Achievements
Indirect GHG emissions (Scope 2) (tCO2e) 696684.16 830629.26 We have conducted carbon footprint accounting for rare earth raw materials and auxiliary materials as well
Other indirect GHG emissions (Scope 3) (tCO e) 227513.93 326877.34 as EPD certification for rare earth products. To date 11 EPD certificates for rare earth products have been 2
issued through the Rare Earth EPD platform. In addition carbon footprint accounting has been completed
Total GHG emissions (tCO e) 1268165.67 1646883.31 for six types of rare earth raw materials and auxiliary materials and more than 300 hydrogen-powered two-2
wheeled vehicles have been deployed.Total GHG emissions intensity (tCO2e/per 10000 yuan operating revenue) 0.32 0.31 Xi’aoke’s Demonstration Project of a Low-Pressure Solid-State
Hydrogen Storage Refueling System Integrated Equipment was
In 2025 Gansu Rare Earth a subsidiary of the Company engaged a third-party institution to prepare its greenhouse gas recognized as a 2025 Energy Conservation and Carbon Reduction
emissions report. The report comprehensively accounted for emissions from fossil fuel combustion industrial processes and Innovation Achievement.purchased electricity and heat. Subsequently a government-authorized third party conducted on-site verification to ensure the We have formulated and issued the enterprise standard
accuracy and compliance of the accounting data. Evaluation Methods and Requirements for Low-carbon Products—
Praseodymium-Neodymium Metal establishing a practical
1Greenhouse gas emissions: Scope 1 includes direct greenhouse gas emissions from sources owned or controlled by the Company mainly foundation for the development of low-carbon rare earth products. 2025 Energy Conservation &
including carbon dioxide generated from direct energy consumption and carbon emissions from carbon-containing raw materials (such as Carbon Reduction Innovation Award
ammonium carbonate rare earth carbonates graphite anodes etc.). Scope 2 includes indirect greenhouse gas emissions from the electricity We played a role in the formulation and revision of two association
steam heating or cooling purchased and consumed by the Company. Scope 3 includes indirect greenhouse gas emissions occurring in the Certificatestandards related to carbon footprint.upstream and downstream value chain of the Company (excluding emissions covered in Scope 2) mainly including indirect greenhouse gas
emissions generated from raw and auxiliary materials consumed in the Company’s production process.
63 64China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
Resource Recycling Utilization Risk Type Financial Impact Responses
The Company vigorously promotes circular economy development strengthens resource management and recycling and Rare earth smelting and separation are highly
enhances integrated control of energy and water resources. It strictly limits raw material and packaging consumption energy-intensive processes. New policies We have established a dynamic policy-tracking
continuously improves resource utilization efficiency and facilitates the efficient use of all resource types. may directly limit total energy consumption mechanism and proactively prepared for the
or energy intensity thereby increasing adoption of low-carbon technologies. The
operating costs. 2026 Energy Work Plan has been formulated to
define emission-reduction pathways while the
Energy Utilization Policy Risk Continued regulatory tightening requires energy consumption intensity of key energy-
enterprises to invest in equipment upgrades intensive processes and total energy use are
and process transformations to meet new
Governance closely monitored to ensure full compliance with standards which in turn raises compliance applicable standards.costs.The Company strictly complies with the Energy Conservation Law of the People’s
Republic of China and has developed and improved the Energy Management
Measures of Northern Rare Earth. Under a governance model characterized
by corporate-level centralized coordination and primary responsibility at the
subsidiary level the Company is advancing the transition from dual control of
energy consumption to dual control of carbon emissions. It has established a Low- The Energy-Using Equipment Management
carbon Energy Management Committee while all branches and subsidiaries have
formed energy conservation and carbon reduction task forces in accordance with The rapid development of high-efficiency
Register is identified established and updated
energy-saving technologies and the annually to support the Company’s efforts their operational conditions. This structure has optimized the energy management to phase out and upgrade low-efficiency
framework and strengthened responsibility and assessment mechanisms. increasing adoption of advanced equipment
such as rare earth permanent magnet equipment.By the end of 2025 13 entities including the Company and its key energy- motors may render existing application At the beginning of each year equipment in
consuming subsidiaries had obtained ISO 50001 energy management system Technology RiskISO 50001 Energy Management equipment comparatively outdated use within each unit is identified with outdated
certification. System Certificate increasing the risk of technological and obsolete models located and a Register
obsolescence and consequently higher of Outdated and Obsolete Equipment in Use
energy consumption and operating costs. is created to support scrapping or upgrading
Strategy activities.The Company conducts a systematic analysis of low-carbon energy management comprehensively identifies and assesses
energy management-related risks and opportunities and develops targeted response measures. Based on this it prepares the
2026 Energy Work Plan accelerates the development of a clean low-carbon safe and efficient modern energy system and
continuously enhances its low-carbon energy management.By developing energy-saving technologies
We have developed an energy management
and digital energy management systems
platform that integrates energy consumption
the Company can continuously optimize
data collection statistical reporting and
production processes and energy control
analysis. Eight major energy-consuming
Efficiency systems thereby improving energy entities have also completed their internal
Improvement efficiency reducing resource waste and energy information platforms enabling real-
Opportunity steadily lowering energy intensity. This time monitoring real-time analysis energy
approach yields long-term cost savings and
alerts and periodic assessments of energy
strengthens the Company’s low-carbon
consumption.competitive advantage.
65 66China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
Management of Impacts Risks and Opportunities
The Company fully integrates the management of energy-related impacts risks and opportunities into its internal management
processes. It rigorously implements an energy conservation assessment and review system for projects standardizing both
the assessment of new projects and the energy conservation acceptance of existing projects. In addition it strengthens the
management of energy consumption indicators energy metering and energy-consuming equipment to ensure lawful and
compliant energy use across all operations.Management Process
Identification of Risks and Assessment of Risks and Monitoring of Risks and Response to Risks and
Opportunities Opportunities Opportunities Opportunities
Energy management- Their significance Annual energy work Targeted actions are
IT-enabled Energy Platform at the Company related risks and is then assessed plans and energy developed based on
opportunities are through a management objectives assessment results
systematically combination of are formulated while responsible entities
identified qualitative and energy consumption are designated and
through policy quantitative analysis. data are monitored initiatives for energy
tracking industry in real time conservation carbon
benchmarking through the energy reduction and
internal audits and management platform. green transition are
other methods. Target progress is advanced.dynamically tracked
to ensure effective
implementation of
energy management
measures.Metrics and Targets
IT-enabled Energy Platform at Hefa
Based on operational realities the Company establishes energy metering management objectives in a systematic manner
strengthens end-to-end oversight and assessment of energy consumption and ensures the timely achievement of annual
targets. Each branch/subsidiary decomposes indicators according to its business characteristics and formulates annual energy
work plans accordingly thereby advancing the tiered implementation of energy management responsibilities. The Company
also regularly monitors annual target progress and dynamically tracks implementation status to ensure effective execution of
energy management measures.
2026 Energy Saving Targets
Total energy consumption of 13 key energy-consuming entities ≤ 404900 tce
Energy consumption intensity of 7 key assessed entities ≤ 1216 kgce/tREO
The Company actively promotes the diversified use of clean energy. By constructing distributed photovoltaic power stations
participating in multilateral green power trading operating biomass boilers for steam production and purchasing green
IT-enabled Energy Platform at Gansu Rare Earth
certificates the Company’s total clean energy consumption reached 187176 MWh in 2025.
67 68China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
Energy Consumption Performance Water Utilization
Metric 2023 Value 2024 Value 2025 Value
Comprehensive energy consumption per unit of output Water Management System
997919880
(kgce/tREO) The Company strictly complies with relevant laws and regulations including the Water Law of the People’s Republic of China
Indirect energy consumption the Regulations on Groundwater Administration and the Regulations on Water Intake Licensing and Administration and Water
Resource Fee Collection. It has also developed and refined the Water Resource Management Measures of Northern Rare Earth
Purchased electricity (MWh) 739771 819687 990510 and the Detailed Rules for Water Resource Management of Northern Rare Earth thereby continuously strengthening the
institutionalized and standardized management of water resources. Guided by the goal of enhancing water conservation and
Purchased steam (ton) 119186 41225 188004 intensive utilization the Company adheres to the principles of prioritizing water conservation ensuring overall coordination and
promoting efficient use. It strengthens binding constraints on water resources and advances their rational allocation and high-
Direct energy consumption efficiency utilization.Natural gas (Nm3) 73386298 69759526 78557292 In 2025 all Company branches and subsidiaries conducted water resource assessments in strict compliance with management
Petroleum (ton) 58 44 41 requirements.Diesel (ton) 1065 931 839 Water Conservation Targets
Coke oven gas (Nm3) 22052458 20456292 37819325
2026 Water Conservation Targets
Power coal (ton) 102459 90899 79827
Companies located in Inner Mongolia consistently outperform the values specified in the Water Quota
New energy/ renewable energy sources
Standards for Industries in Inner Mongolia Autonomous Region (DB15/T385-2022).New energy/ renewable energy consumption (MWh) / 93750 187176
Fresh water consumption per unit of the Smelting Branch (Huamei) ≤ 17 m3/tREO
Percentage of new energy/ renewable energy consumption
/ 4 7.29 Yellow River clarified water consumption of the Smelting Branch (Huamei):
(%) 2.21 million cubic meters
Case Study Waste Heat Utilization of Amine Solution and Sulfur Dioxide Flue Gas from
Desulfurization System Water Conservation Management Practices
The Company strengthens the comprehensive management and control of water intake and water use. It formulates annual
Huamei implemented a renovation project to recover waste heat from amine solution and sulfur dioxide flue gas in the water-use plans in strict accordance with national and local water quotas ensuring compliance with water-use intensity
desulfurization system. The project optimized the sulfur dioxide condenser and lean solution recooler in Workshop 3 targets. The Company actively introduces advanced water-saving technologies and processes continuously implements water-
transferring part of the waste heat from circulating cooling water to the heating return water system. As a result the saving retrofits and benchmarking improvements and enhances water recycling rates. It also promotes the development and
temperature of the heating return water increased from 45 ° C to approximately 65 ° C. Following the renovation daily utilization of non-conventional water sources such as rainwater and construction dewatering water and reuses reclaimed
steam consumption at the heating heat exchange station in the Huamei decreased by approximately 40 tons year over water. In addition the Company prohibits the use of groundwater and raw Yellow River water for ornamental purposes and
year. During the heating season an estimated 6000 tons of steam will be saved resulting in an energy savings of 565 advocates multi-purpose water use and quality-based water supply to improve overall water resource utilization efficiency.tons of standard coal.Water Management Performance
Case Study Introduction of Energy-Saving Equipment Total fresh water consumption (ton) Water consumption intensity
(ton/10000 yuan)
Eight subsidiaries including Northern Magnetic Materials have actively implemented energy recycling measures by 5388526
installing water-source heat pump systems in their workshops to enable seasonal waste heat recovery and utilization. In 1.27
summer water-source heat pumps are used to cool circulating water effectively reducing the production environment
temperature. In winter waste heat from circulating water in smelting furnaces is recovered for heating replacing Total recycled water (ton) Water recycling rate (%)
conventional energy consumption. This measure improves energy efficiency reduces reliance on externally purchased
energy and promotes the cascading utilization of production energy thereby achieving both cost reduction and efficiency 59927726 91.75
gains.
69 70China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
Water Recycling and Reuse Circular Economy
The Company fully embraces the circular economy by integrating resource
conservation and environmental protection into all aspects of production
and operations. It continues to increase investment in technological
transformation to advance green processes including energy conservation
emissions reduction resource regeneration and cleaner production. By
optimizing production processes and strengthening resource recovery
and reuse the Company promotes comprehensive resource utilization
and achieves coordinated growth in both economic and environmental
performance. In 2025 the Company obtained SGS Recycled Content SGS Recycled Content Verification
Verification certification.The Smelting Branch renovated Seven subsidiaries including Gansu Rare Earth implemented
the recycle steam condensate from Hefa adopted combined MVR an upgrade for the resource-
coke oven gas preheaters and boiler and multi-effect evaporation based utilization of ammonia-
blowdown water. After treatment technology to treat industrial nitrogen wastewater by 2025 Resource Circularity Performance
the recovered water is converted into wastewater enabling full constructing new multi-effect
pure water for circulation and reuse. resource recovery and reuse evaporation units and relocating
In addition the heat at approximately within the production system and improving the existing four- Ammonia recovered from industrial Cooling water recovered from Ammonium sulfate recovered
90° C in the recovered water is used to and achieving zero discharge of effect evaporation system. The wastewater (m3) industrial wastewater (m3) from industrial wastewater (ton)
raise the temperature of filtered Yellow production wastewater. project ensures comprehensive
River water thereby reducing steam and effective wastewater
consumption in pure water production. treatment while reducing the 130051 3386374 36056
This project saves approximately 6000 intake of Yellow River water and
cubic meters of water annually. tap water. Ammonium chloride recovered Sulfuric acid recovered from
from industrial wastewater (ton) industrial waste gas (m3)
18467865816
Materials Management Hydrofluoric acid recovered Recovered acid in chlor-alkali
from industrial waste gas (m3) process of Gansu Rare Earth (m3)
The Company strictly regulates all aspects of packaging including bag classification specifications markings layout printing
and bag-making materials while advancing the green transformation of its packaging system. By independently developing 78137 285
new packaging technologies and promoting the automation of packaging processes the Company has strengthened intelligent
manufacturing capabilities and improved packaging efficiency. It also expands the use of bulk bags to reduce packaging costs
achieving coordinated gains in resource conservation and environmental performance.Case Study Commissioning of Integrated Automatic Inspection and Packaging Production Line for The Company focuses on the circular utilization of rare earth resources and advances the high-value-oriented development of
Rare Earth Metals at Ruixin secondary resources through technological innovation. By establishing a waste recycling system and achieving breakthroughs
in key technologies such as rare earth hydrogen storage and bio-metallurgy it promotes the resource utilization and green
Our first integrated production line for the automatic inspection and packaging of rare earth metals jointly developed separation of neodymium-iron-boron waste rare earth tailings and other materials. The Company continuously improves
by our subsidiary Ruixin and NCS Testing Technology has been officially commissioned. Using customized advanced comprehensive resource recovery efficiency and provides strong support for the green and low-carbon transition of the rare
equipment the line enables fully automated operations across weighing feeding inspection polishing weight adjustment earth industrial chain.and packaging. Equipped with an intelligent rapid online detector it significantly improves inspection efficiency and
accuracy. It also automatically generates and exports process data to support the digitalization of packaging operations.This upgrade has substantially enhanced packaging quality and efficiency establishing a benchmark for the rare earth
industry’s automated and intelligent transformation.
71 72China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
Case Study Production of Praseodymium-Neodymium Oxide from Recycled NdFeB Waste Waste Gas Management
Focusing on the circular utilization of rare earth resources the Company uses neodymium-iron-boron (NdFeB) waste as a Given its manufacturing process characteristics the Company adopts mature technologies including ionic liquid
raw material to efficiently produce praseodymium-neodymium oxide that meets industry standards through a full-process desulfurization the double-alkali method and SCR denitrification for advanced treatment of production tail gas and strictly
workflow encompassing roasting acid leaching solvent extraction and separation precipitation and calcination. In 2025 controls atmospheric pollutant emissions. In 2025 with a focus on environmental improvement the Company launched several
output reached 6048 tons with an output value of 2.7 billion yuan. The process is stable controllable and characterized key flue gas treatment projects including Hefa’s three-waste treatment and energy-saving renovation project as well as Gansu
by a high recovery rate. By removing impurities while enabling efficient leaching and purification of rare earth elements Rare Earth’s technological research and industrialization project for roasting tail gas treatment to continuously enhance waste
the Company achieves the high-value utilization of industrial solid waste. This approach reduces dependence on primary gas emission reduction and pollution control capacity.rare earth resources and supports solid waste reduction resource recovery and the green low-carbon development of the
rare earth industrial chain. Waste Gas Management Performance
Metric 2024 Value 2025 Value
Case Study Ton-Scale Industrial Demonstration of Hydrogen Recovery from NdFeB Hydrogen SO2 emissions (ton) 313.22 312.18
Decrepitation Process with Rare Earth Solid-State Hydrogen Storage Technology
SO2 emissions per 100 million yuan revenue (ton) 0.95 0.73
Our independently developed Rare Earth Solid-State Hydrogen Storage and Recovery System has been successfully NOx emissions (ton) 347.94 280.49
demonstrated in ton-scale NdFeB hydrogen decrepitation production. It overcomes the technical bottleneck of sustaining
long-duration high-rate hydrogen supply during the hydrogen absorption burst phase of ton-scale NdFeB materials. NOx emissions per 100 million yuan revenue (ton) 1.06 0.66
As the first large-scale demonstration of rare earth solid-state hydrogen storage technology in a NdFeB hydrogen Flue gas and dust emissions (ton) 38.17 33.22
decrepitation production line the technology fills a critical gap in hydrogen recovery for this sector and establishes a new
pathway for the high-value utilization of abundant rare earth elements such as lanthanum and cerium. Flue gas and dust emissions per 100 million yuan revenue (ton) 0.12 0.08
Pollution Prevention and Control Wastewater Management
The Company has continuously improved its wastewater pollutant emission reduction performance. Based on their
The Company actively complies with national policies laws and relevant requirements and strictly standardizes pollutant technological characteristics all branches and subsidiaries adopt mature treatment processes such as multi-effect evaporation
treatment in accordance with the Air Pollution Prevention and Control Law of the People’s Republic of China the Water and steam stripping and strengthen the construction operation and maintenance of wastewater pollution control facilities. In
Pollution Prevention and Control Law of the People’s Republic of China the Law on the Prevention and Control of Pollution by 2025 Xinfeng Xinli completed a technological renovation for high-salinity wastewater treatment. Through process optimization
Solid Waste of the People’s Republic of China and applicable local emission standards thereby improving resource utilization and facility upgrades it further improved wastewater treatment efficiency and water resource recycling rates.efficiency.Wastewater Management Performance
Metric 2024 Value 2025 Value
2025 Pollution Prevention and Control Targets Status
Industrial wastewater discharge (m3) 1502739.60 1386785
COD emissions per 100 million yuan revenue (ton) 0.146 0.142
Enterprises within the region have achieved zero discharge of the
industrial wastewater and the discharge of domestic sewage only after √ Completed NH3-N emissions (ton) 7.06 6.79
meeting applicable standards.NH3-N emissions per 100 million yuan revenue (ton) 0.021 0.016
Air pollutant emissions from enterprises in Baotou remain below the
special emission limits specified in the Emission Standard of Pollutants √ Completed
for the Rare Earth Industry.For enterprises outside the region both the concentration and
total volume of industrial waste gas and wastewater emissions are √ Completed
maintained within permitted limits.
73 74China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
Water Source Protection Solid Waste Management Performance
Metric 2024 Value 2025 Value
The Company rigorously complies with the Regulations of Inner Mongolia Autonomous Region on Building a Key Ecological
Security Barrier in Northern China. These regulations require all branches and subsidiaries to build comprehensive wastewater General industrial solid waste (ton) 763249.04 809807
treatment facilities to ensure compliance with discharge standards strengthen soil and groundwater management to prevent
leakage and groundwater contamination and establish a real-time groundwater monitoring system to track water quality Hazardous waste (ton) 26.18 31.89
changes issue timely warnings and safeguard against pollution risks. These measures ensure that rare earth resource
development does not compromise surrounding water sources protecting both ecological security and residential water safety. Total general industrial solid waste generated per 100 million yuan 23.15 19.03
revenue (ton)
Total hazardous waste generated per 100 million yuan revenue (ton) 0.08 0.07
Solid Waste Management
The Company has revised the Measures for the Prevention and Control of Solid Waste Pollution of Northern Rare Earth. Guided Regenerated resources generated during rare earth smelting and processing are classified as associated radioactive solid
by the principles of waste reduction recovery and reuse it continuously strengthens full-process solid waste management. waste. The Company strictly complies with the Law of the People’s Republic of China on the Prevention and Control of
Hazardous waste is entrusted to qualified institutions for disposal and transfer documentation is handled in a standardized Radioactive Pollution and has established the Measures for Radiation Safety Protection Management of Northern Rare Earth.manner. The Company also conducts regular training and targeted inspections on solid and hazardous waste management It requires all branches and subsidiaries to develop environmental radiation monitoring plans and conduct monitoring in
continuously optimizes supervisory procedures and improves the refined management of solid waste. accordance with relevant regulations. In addition special sites that meet regulatory requirements have been constructed for the
landfilling and storage of waste residues. The Company strengthens the effective treatment and disposal of these regenerated
The Company places great emphasis on source reduction and the control of risks associated with toxic and hazardous resources thereby fulfilling its radiation protection and environmental governance responsibilities and supporting the green
substances and continuously advances green and cleaner production practices. By optimizing product design improving and sustainable development of China’s rare earth industry.production processes and strengthening supply chain management it systematically reduces the use and emissions of toxic
and hazardous chemicals in production while ensuring compliance with safety environmental protection and occupational
Case Study New Company Established to Launch Construction of Northern Rare Earth
health requirements. The Company promotes low-toxicity non-toxic and environmentally friendly alternative materials and Regenerated Waste Landfill Project
technologies to mitigate potential impacts on the ecological environment and employee health at the source and continuously
enhances the management of toxic and hazardous substances.The Company has established a regenerated resources subsidiary to safely landfill rare earth regenerated resources
in strict compliance with national laws regulations and standards thereby effectively preventing radioactive pollution
Case Study Comprehensive Utilization of Sludge for Brick Production from affecting the surrounding environment. This project plays a positive role in supporting the sustainable economic
development of Baotou City and the Damao Banner while also helping to create a cleaner safer and more livable
Zibo Lingzhi actively collaborates with external institutions leveraging partners’ strengths in production technology capital environment for local residents.resources and related areas to advance technological development for comprehensive utilization of sludge. Through
compliant pilot utilization sludge is incorporated into brick production enabling waste transformation and resource
recycling. This initiative improves ecological quality delivers strong social and environmental benefits and achieves a clear
win-win outcome in environmental protection and resource reuse.Noise Management
The Company has actively established an integrated noise prevention and control system encompassing source control
process management and terminal monitoring and has continuously advanced noise pollution prevention and control efforts.All branches and subsidiaries prioritize the use of low-noise equipment and effectively reduce the impact of production noise
through measures such as sound insulation shielding and sound barrier walls. Through strengthened equipment inspection
maintenance and regular monitoring the Company ensures that boundary noise emissions remain consistently in compliance
with applicable standards. In 2025 in strict accordance with the Noise Pollution Prevention and Control Law of the People’s
Republic of China all production and operation entities were required to complete the declaration for industrial noise pollutant
discharge permit management.
75 76China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
Environmental Awareness
Advocating a Green LifestyleAligned with the 2025 national World Environment Day-“Building aBeautiful China I Took the Lead” the Company developed an innovative
dual-track environmental outreach and education model that integrated
The Company promotes green office practices integrating energy conservation emission reduction and ecological protection
online quizzes with offline activities. The Northern Rare Earth Ecological
into daily operations. It continuously explores innovative low-carbon management approaches advocates environmentally
and Environmental Protection Knowledge Quiz attracted 2690
responsible lifestyles and emphasizes biodiversity conservation. These efforts reduce the Company’s environmental footprint
participants. The Company also actively participated in the main venue
and foster an efficient environmentally friendly and sustainable workplace.event for Baotou World Environment Day and was recognized as one of
Advanced Collectives of Beautiful
the first groups of Advanced Collectives of Beautiful Baotou Practitioners. Baotou Practitioners
Green Operation Practices
Green Office
The Company continues to implement energy conservation and
environmental protection measures. It prioritizes the procurement
of energy-efficient water-saving and renewable products while
gradually phasing out high-energy-consumption office equipment.Energy and water-saving reminders are displayed throughout office
areas; paperless operations are fully promoted green commuting
is encouraged and official vehicle management is strengthened to
reduce transportation emissions. Meanwhile the Company promotes
waste segregation launches the Clean Plate Campaign and continually Campaign Site
enhances employees’ environmental awareness.Green Commuting
In 2025 the hydrogen-powered electric two-wheeler independently developed by Xi’aoke was officially put into operation.Green Office Management Performance Equipped with self-developed solid-state hydrogen storage cylinders the vehicle has a hydrogen storage capacity of 80 to 90
grams and a driving range exceeding 90 kilometers approximately 1.5 times that of conventional electric bikes. It generates
power through hydrogen fuel cell reactions with water as the only byproduct thereby achieving zero carbon emissions during
Office paper Office paper Toner cartridge Ink cartridge operation and demonstrating strong environmental sustainability. In addition it offers superior low-temperature performance
consumption (ton) savings (ton) consumption(ton) consumption (ton) compared with traditional lithium battery-enabled wheelers. To date more than 300 hydrogen-powered two-wheelers have
2.39 0.99 0.31 0.17 been deployed to meet the last-mile commuting needs of on-site employees. Looking ahead the Company plans to cooperate with the Baotou municipal government to expand deployment. Beginning in Baotou the application will gradually extend to
other cities across the Inner Mongolia Autonomous Region supporting the development of a distinctive brand that integrates
Domestic waste generation (ton) Kitchen waste generation (ton) the rare earth and hydrogen energy industries.
2526.741054.18
Gasoline consumption (L) NEV charging piles
54290103
Hydrogen-Powered Electric Two-Wheelers
77 78China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
Biodiversity Protection The Company has carried out comprehensive ecosystem protection and restoration efforts steadily advancing key initiatives such as factory greening optimization mine geological environment governance and ecological restoration of sand pits in
Daqing Mountain. In terms of ecological greening the Company completed seedling transplantation at the Baiyun Mineral
The Company demonstrates unwavering commitment to compliance with pertinent laws and regulations including the Processing Branch Plant with a well-planned arrangement of arbors such as spruce euonymus and mountain peach as well
Environmental Protection Law of the People’s Republic of China the Wetland Protection Law of the People’s Republic of China as lilac shrubs. It also promoted geological environment governance at the Baiyun Iron Mine through the planting of arbors
the Forest Law of the People’s Republic of China and the Regulations on Nature Reserves of the People’s Republic of China. To and shrubs to restore the ecology of the mining area and completed arbor planting in the Barun Plant Area to enhance local
mitigate ecological impacts the Company employs strategic measures in its operations. Site selection processes intentionally ecological quality. For comprehensive mine ecological management land preparation turf laying and the planting of flowers
exclude ecologically protected areas and environmentally sensitive zones. Furthermore all subsidiaries and branches are arbors and shrubs were completed at the Guyang Mine alongside regional waste removal to improve the overall ecological
mandated to incorporate biodiversity conservation measures at each project stage—design construction and operations. landscape of the mining area. In addition all backfilling work for the ecological restoration project at the Daqing Mountain sand
Comprehensive and continuous monitoring ensures the coordinated development of production operations and nature pit has been fully completed. In strict compliance with ecological protection requirements the Company prioritizes native plant
protection. species and applies refined construction controls to minimize ecological disturbance during operations. All restoration tasks
have been completed as required effectively improving the ecological environment of the project areas.In 2025 the Company formulated the Policy Statement on Biodiversity Conservation committing to sustainable management
practices throughout its development to minimize adverse impacts on biodiversity. It will actively implement mitigation and
compensation measures to preserve ecological balance and achieve the integration of economic and environmental benefits.
2025 Landscaping Expenditure
At the Baiyun Mineral Processing Branch Plant 9000 trees and 3000 shrubs were transplanted at a
cost of 1.7 million yuan.For the Baiyun Iron Mine geological environment governance project 4339 trees and 4770.75 m2
of shrubs were planted with an investment of 1.22 million yuan.Barun Plant area greening included the planting of 500 trees at a cost of 65000 yuan.The Guyang Mountain Mine geological environmental management project involved preparing 41496
m2 of greening land sowing mixed grass seed across 30218 m2 planting 8892 m2 of flowers 1259
clumps of shrubs and 2219 trees as well as removing waste at a cost of 1.57 million yuan.The Green Smelting Upgrade and Renovation Project included greening works across six categories and
more than 80 species covering 205000 m2 with an investment of approximately 30 million yuan.Geological Environment Governance
in Baiyun Iron Mine Malian Garden
Land Resource Protection
The Company consistently strengthens land resource management and promotes the intensive and economical use of
land through optimized land allocation and enhanced protection and restoration measures. During project planning and
construction it strictly complies with land-use control requirements prioritizes the revitalization of existing land resources and
improves land-use efficiency. Meanwhile the Company advances land ecological restoration by carrying out timely reclamation
and remediation of land occupied or affected by operations thereby reducing disturbances to terrestrial ecosystems caused by
production and construction activities.
79 80China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
Scientific Research Platform Development
Technology-Driven Quality and Efficiency
The Company consistently upholds scientific and technological innovation as the core driver of high-quality development and
fulfills its mission of advancing the rare earth industry through technological progress. By prioritizing platform development
it continues to build high-level innovation carriers strengthen its core business and enhance its competitiveness. In doing so
Technological innovation is the core driver of industrial leadership. Guided by the philosophy that technology underpins the Company contributes to the high-end transformation and high-quality development of China’s rare earth new materials
development and innovation shapes the future the Company continuously strengthens its independent innovation capabilities industry.accelerates breakthroughs in key core technologies and steadily advances research development and commercialization of
scientific achievements. These efforts comprehensively enhance industrial competitiveness and provide strong momentum for The Company has advanced scientific and technological innovation platforms from isolated breakthroughs to a matrix-based
building a world-class leader in the rare earth sector with global influence and serving as a leading force in the construction of model laying a strong foundation for the development of new quality productive forces. It has established a research platform
the Two Rare Earth Bases. network spanning the entire rare earth industrial chain vigorously promoted the transformation and application of scientific
achievements and become a key pillar in addressing national strategic needs and driving industrial progress.Governance
Management System
The Company continues to strengthen its scientific research management system. In accordance with internal policies
including the Measures for the Administration of Scientific Research Projects the Measures for the Administration of Scientific
Research Funds and the Measures for the Transformation of Scientific and Technological Achievements it has established
a full-cycle research management framework covering project initiation implementation acceptance and achievement
transformation. The Company also enhances refined end-to-end project management actively integrates social scientific and
technological resources and continuously improves the evaluation and incentive mechanisms for scientific and technological
achievements. It vigorously promotes the application of research outcomes in production thereby effectively improving the
quality and efficiency of scientific research work. State Key Laboratory
The Company has issued the Science and Technology Innovation Reform Plan to address key challenges in science and
technology innovation. The plan focuses on optimizing the research management system improving research efficiency and
effectiveness promoting compliance and standardization strengthening the recruitment and development of scientific and
technological talent and enhancing performance evaluation and incentive mechanisms thereby comprehensively improving
the overall effectiveness of the innovation system.The Company is committed to establishing a multi-level scientific and technological innovation platform system of “1+2+N+4” National Innovation Center for Rare Earth
encompassing the entire industrial chain of basic research technological innovation achievement transformation and Functional Materials
supporting guarantees. It has developed a dual-cycle innovation ecosystem in which technology drives industrial development
and industry in turn advances scientific and technological progress.Academician Workstation
Enterprise Technology Center
83 84China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
Incentives for Technological Innovation Strategy
The Company has established a patent incentive and
evaluation mechanism. In accordance with the Measures for The Company has prepared the Special Chapter on Scientific and Technological Innovation Planning for the 15th Five-Year Plan
the Performance Assessment of Scientific and Technological The Company completed the disbursement of Period (2026–2030). Guided by national strategies industry development trends and the Company’s operational needs it aims
Innovation and the Measures for the Transformation patent rewards for 2024 totaling to build an open collaborative and shared rare earth innovation ecosystem foster original technological breakthroughs secure
of Scientific and Technological Achievements it has a leading position in scientific and technological innovation explore new pathways for industrial development and advance
revised and issued the Patent Management Measures. 85000 toward becoming a world-class technology-driven rare earth enterprise.YuanBy recognizing advanced entities outstanding teams
and individuals in scientific and technological innovation
the Company stimulates researchers’ innovative vitality For the 2024 cycle it recognized Risk Identification and Response
strengthens their sense of honor and self-worth promotes
technological breakthroughs across the industrial 3outstanding research teams
chain accelerates the transformation of scientific and List of Identified Technological Innovation Risks
technological achievements into practical productive forces
and provides strong support for the development of new with total bonuses
quality productive forces. 22 12 Risk Type Risk Description Potential Financial Impact Responsesamounting to
In 2025 the Company completed the disbursement of outstanding outstanding
patent rewards for 2024 totaling 85000 Yuan. For the technical science and 32000 We strengthen technical due diligence and
2024 cycle it recognized 3 outstanding research teams personnel technology Yuan pilot testing conduct sufficient techno-
22 outstanding technical personnel and 12 outstanding management staff Emerging technologies economic demonstrations of cutting-edge
science and technology management staff with total are theoretically Out-of-control technologies and verify feasibility through
bonuses amounting to 32000 yuan. feasible yet they investment sunk R&D small-scale pilot projects.face intractable funds and low return on We implement full life-cycle project
implementation investment. management including refined scheme
Technological Innovation Honors Technology challenges that Ineffective projects design process monitoring achievement
Risk hinder their effective and losses from capital acceptance and post-evaluation to ensure
Leveraging its strong technological capabilities and innovative spirit the Company pursues cutting-edge research and application and expenditures. investment returns.development overcomes multiple critical technical bottlenecks and delivers a series of industry-leading and technological deployment. For key transformation directions we adopt
achievements. This underscores its technological advantage and innovation capacity in the rare earth sector establishing a parallel research across multiple technical
benchmark for the industry’s high-quality development. pathways to diversify risk.In 2025 the Company received one First Prize of the Inner Mongolia Autonomous Region Technological Invention Award
one Second Prize of the Inner Mongolia Autonomous Region Science and Technology Progress Award one Third Prize of the Technological iteration
Gansu Provincial Science and Technology Progress Award and one Third Prize of the Hebei Provincial Science and Technology Declined economic We focus on upgradable modular is accelerating and
Progress Award. It also earned four Second Prize of the Rare Earth Science and Technology Award. efficiency or impairment technologies for transformation. technologies selected
of assets. We monitor policy and market dynamics to
for transformation
Extended payback ensure R&D aligns with market reforms and
may be superseded by
Case Study Receiving the Third Prize of Gansu Provincial Science and Technology Progress period for technological development trends thereby enhancing more advanced cost-
Market Risk renovation investment product adaptability. effective alternatives
with the internal rate of We strengthen economic evaluation by
With the project titled Green and Energy-Saving Upgrading and Industrial thereby threatening return (IRR) falling short of incorporating future market fluctuations into
Application of the Post-Treatment Process for Light Rare Earth Chloride the the Company’s market expectations. project assessment models.Company won the Third Prize of the 2024 Gansu Provincial Science and Technology position.Progress Award. The project effectively addresses production capacity and energy
consumption constraints advances the green upgrading of rare earth smelting and
separation processes and promotes the efficient and sustainable utilization of rare If technological Eroded technological
earth resources. innovations are advantages undermine We strengthen the intellectual property
not protected by product pricing power management system clarify ownership of
intellectual property and reduce return on R&D achievements promptly file for patents
Intellectual rights in a timely investment. software copyrights and other protections
Property Risk manner technology Additional rights and advance standardization initiatives.Third Prize of Gansu Provincial Science
and Technology Progress Award spillover may occur. protection costs.
85 86China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
Opportunity Identification and Response Case Study Research Meeting on Lanthanum-Cerium Materials
List of Identified Technological Opportunities In 2025 technical staff from the Company
conducted specialized field research at multiple
organizations systematically examining the frontiers
Opportunity
Potential Financial Impact Response of industrial development. This provided strategic
Type guidance for promoting the high-value and
balanced utilization of lanthanum-cerium resources.We have established R&D and innovation platforms
Industrial transformation and including technology centers and doctoral workstations
upgrading enable enterprises to to strengthen scientific and technological innovation in
optimize production processes support of our core business.Technology improve operational efficiency and We have also developed digital application platforms
Opportunity Research Meeting on Lanthanum-Cerium Materialsreduce production costs. optimized production and operational processes and
improved business efficiency.Collaborative innovation and
We have established dedicated coordination departments
development reduce product costs Case Study China Manufacturing Achievements Exhibition
and improved cooperation mechanisms.improve the reliability of products
We have also set up a digital collaboration platform.and services and strengthen supply
Market We have established industry-university-research In December 2025 the Company participated in the Building the Foundation for a Strong Nation: China Manufacturing chain stability. Leading enterprises
Opportunity cooperation mechanisms participated in industry Achievements Exhibition during the 14th Five-Year Plan jointly organized by the National Museum of China and the Press drive the high-quality development
alliances and jointly cultivated talent. and Publicity Center of the Ministry of Industry and Information Technology. The exhibition comprised six sections: high-
of industrial clusters.end manufacturing industrial foundations intelligent manufacturing green manufacturing integrated development and
better life offering a comprehensive overview of China’s manufacturing progress during the 14th Five-Year Plan period.As the sole invited representative from the rare earth industry Northern Rare Earth systematically presented its full-
chain capabilities—from scientific research and development smelting and separation and deep processing to functional
IUR Collaborations materials and downstream applications—through exhibits models and graphic displays. This presentation effectively
underscored the Company’s strategic role in supporting the national rare earth supply chain.The Company continues to strengthen its technological innovation partnerships with multiple universities and research
institutes collaborating in areas such as the development of science and technology innovation platforms the advancement
of key research projects the commercialization of scientific and technological achievements and the cultivation of talent.These efforts promote deep industry-university-research integration and provide robust support for the Company’s industrial
development.Industry Exchange and Cooperation
The Company actively expands channels for industry
exchange and collaboration strengthens strategic
partnerships with relevant industry associations and
high-quality external businesses and integrates
resources and expertise from diverse stakeholders. China Manufacturing Achievements Exhibition
Through multi-party cooperation it promotes the healthy
development of the industry ecosystem advances
cutting-edge technologies and enhances its market
influence and social recognition.
87 88China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
R&D Training & Development IP Protection
The Company organizes specialized research training programs tailored to the specific needs of the rare earth industry. These The Company strictly complies with relevant laws and regulations including the Trademark Law of the People’s Republic of
initiatives are designed to foster a sustainable innovation ecosystem unlock the potential of science and technology talent China and the Patent Law of the People’s Republic of China. In accordance with the actual development of the rare earth
enhance employees’ independent innovation capabilities elevate research quality standards and continually upgrade technical industry and the Company’s innovation needs the Patent Management Measures are continuously revised improved and
competencies. implemented. These measures clarify responsibilities patent information use and patent ownership; define the patent
application process; strengthen patent maintenance and management; and establish reward and assessment mechanisms
In 2025 the Company conducted four training sessions on scientific research systems and one training session on standard thereby providing comprehensive protection for technological innovation.promotion and awareness.IP Protection Initiatives
Performance on Research-Related Training and Exchange Activities
The Company regularly invites patent experts to hold
discussions with project teams analyze patent landscapes
Number of research-related training and Attendance in research-related training and and propose targeted patent portfolio strategies.exchange activities exchange activities
22 300 The Company conducts patent information searches evaluates research directions and performs infringement
risk screening. By selecting key rare earth metal projects
and leveraging professional teams and digital tools
the Company carries out patent early-warning work
to accurately identify industry patent trends technical
barriers and infringement risks thereby ensuring the
Management of Impacts Risks and Opportunities smooth progress of core technology research and development as well as industrial deployment.The People’s Procuratorate of the Rare Earth High-Tech
The Company conducts full-cycle management of technology projects in accordance with relevant policies and regulations Zone has established an Intellectual Property Prosecution
identifying assessing and managing technical market and intellectual property risks in technology innovation activities. It Protection Contact Point at the Company to provide direct
also conducts regular compliance reviews of research activities and establishes detailed rules for daily research management judicial protection services.and accountability in line with the Measures for the Management of Research Projects thereby ensuring compliance
standardization and effective risk mitigation.Management Process
Identification Assessment Monitoring Response The Company advances intellectual property protection and related cultural outreach strengthens employee education and
awareness campaigns enhances awareness of IP protection across all staff fosters a strong culture of intellectual property
The Company conducts Based on technical The Company establishes The Company strengthens protection and cultivates a corporate environment that respects and safeguards intellectual property.a comprehensive review complexity and in risk and opportunity collaborative partnerships
and assessment of accordance with risk indicators including broadens innovation
proposed science and assessment criteria R&D project progress pathways and promotes
technology projects to identified risks are and intellectual property strategic cooperation with
identify project risks and classified by likelihood outputs and continuously key universities research Intellectual Property Protection Training Performance
evaluate the necessity and potential impact monitors risks and institutes and industry-
advancement feasibility and hierarchical as opportunities based on leading enterprises thereby
and economic feasibility well as full-cycle application promotion enabling the efficient Number of intellectual property Attendance in intellectual Intellectual property
of implementation. risk management is effects industry recognition integration of innovation protection training sessions property protection training protection training hours
implemented. and other relevant factors. resources and accelerating
the development of 2 120 6
high-level scientific and
technological talent and
innovation teams.
89 90China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
Case Study Training Session on High-Quality Intellectual Property Development Based on the Dedicated Chapter on Science and Technology Innovation Planning for the 15th Five-Year Plan (2026–2030) the
Company has established its strategic objectives for technological innovation during the 15th Five-Year Plan period.In April 2025 the Company conducted a
training session on high-quality intellectual Strategic Objectives for Technological Innovation
property development engaging external
experts to instruct more than 70 employees
on topics such as patent strategy risk early
warning and patent pools. By integrating
theoretical instruction with practical case We must strengthen our independent and collaborative innovation capabilities and
studies the session strengthened employees ’ steadily improve key innovation indicators including R&D investment intensity the
capabilities in IP management and utilization quality of new platform development the number of patents and the transformation
es tab l i sh ing a ta lent foundat ion for of scientific and technological achievements.accelerating the transformation of innovation By the end of the 15th Five-Year Plan period we aim to establish technological
outcomes and enhancing the Company’s leadership in key rare earth industry sectors build world-class professional
core competitiveness. Training Session on High-Quality Intellectual Property Development General technology innovation platforms and cultivate a number of distinguished industry
Objectives experts and research teams. We will also generate a series of scientific and
technological achievements that drive industry advancement and significantly
enhance our capacity to undertake major national science and technology innovation
tasks. In doing so we will support the development of a full-element full-category
rare earth industrial system and strive to become a world-class technology-leading
Metrics and Targets rare earth enterprise with strong innovation vitality robust innovation capacity an excellent innovation system and a favorable innovation environment.With an open and inclusive approach the Company actively encourages diverse innovation initiatives recognizes the value
of intellectual property and continuously increases investment in scientific and technological R&D thereby providing a
strong foundation for technological advancement and maintaining its leading position in industry development. In 2025 R&D
investment reached 2.408 billion yuan representing 5.65% of revenue.Talent is the core driver of innovation. The Company has recruited 168 professionals including 34 doctoral degree holders and
118 master’s degree holders strengthening its R&D team with exceptional expertise. The annual R&D intensity will be maintained at 5%. Achieve breakthroughs in 10
core technologies. Undertake 15 major projects at the provincial/ministerial level or
above.We will develop 60 new products processes or equipment covering all rare
R&D Personnel Performance earth elements and categories including no less than 20 new lanthanum-cerium products.Specific
We will complete the transformation of 40 scientific and technological Objectives
Number of R&D personnel Percentage of R&D personnel to total employees achievements build 10 new pilot lines and cultivate 1-2 major scientific and
technological achievements eligible for nomination for national science and
1320 12.06% technology awards.
The number of authorized inventions will reach 580.The total number of standards formulated or revised will reach or exceed 175.
91 92China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
R&D Achievements Patent Overview
We take technological innovation as the core engine anchor our efforts in the deep integration of technological and industrial
innovation deepen the reform of systems and mechanisms for technological innovation promote the integrated development
of technological and industrial innovation advance collaborative breakthroughs in core technologies strengthen research Number of technological innovation projects launched in 202558
on cutting-edge technologies. As a result a number of original strategic and high-quality scientific and technological
achievements have been generated which allows us to fully leverage the leading role of innovation and continuously enhance
our core competitiveness.In 2025 we achieved breakthroughs in two core technologies developed six new products three new processes and four Total number granted patents as of Total newly granted patents in 2025 Total new patent applications filed in 2025
advanced pieces of equipment and advanced the construction of six demonstration production lines. We undertook more the end of 2025
than 40 major scientific research projects. Innovation-driven development has become embedded in our corporate DNA
accelerating the transformation of scientific and technological innovation—the key variable—into the strongest driving force for 458 45 32
high-quality development.In 2025 we were advancing more than 40 major scientific research projects including the National Key R&D Program Major
National Science and Technology Projects national “chain leader” initiatives Inner Mongolia Autonomous Region “technological 1088 14 130 158breakthrough” projects key R&D and achievement transformation projects Gansu Province science and technology programs
and the company’s key internal projects.
616
126
85
Conversion of R&D Achievements Inventions Inventions Invention applications
Utility models Utility models Utility model applications
The transformation of scient i f ic and technological
achievements serves as a critical bridge between scientific Industrial designs
research and industry as well as a core pathway for
translating intellectual properties into new quality productive
forces. The Company has established a robust mechanism The Company plays an active role in the formulation of industrial standards. Drawing on strong R&D capabilities and extensive
for commercializing research outcomes. Guided by market market experience it contributes to the development of international national and industry standards helping to regulate
demand it fully leverages existing innovation resources and industrial growth and advance the sector’s technological level. In 2025 it led 34% of national and industry standards ranking
platform advantages to accelerate the conversion of scientific first in the industry.and technological advances into tangible productive capacity.In 2025 the Company filed 158 new patent applications
including one international invention 126 inventions and
32 utility models providing robust intellectual property Standards Developed
protection for technological innovation.Total number of standards International National Industry
developed in 2025 standards standards standards
The Company filed 82 2 29 7
158 1 126 32 Group Company Total number of standards
international invention inventions utility models
new patent applications standards standards developed as of end-2025
2222564
93 94China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
Quality Culture Development
Quality Benchmarking
The company actively encourages a quality culture through multi-level publicity and training initiatives that engage all
employees and span the entire process. It fosters a strong environment in which everyone values quality and everyone creates
quality strengthening employees’ quality awareness and reinforcing their responsibility and commitment to excellence in daily
The Company regards quality as the cornerstone of its development consistently pursuing excellence in product creation. It work.actively innovates quality management models advances lean management strengthens quality culture and enhances process
control and performance improvement. By continuously improving product quality the Company generates new demand The Company has significantly strengthened its quality management capabilities by actively implementing QC group
expands high-end product offerings and drives quality across the entire industrial chain to industry-leading levels. initiatives and professional skills competitions. Through platforms such as Quality Month and labor contests it encourages and
monitors all branches and subsidiaries to conduct regular publicity training and quality improvement activities. These efforts
continuously enhance employees’ professional competencies and foster a corporate culture centered on quality and excellence.Governance
Case Study Quality Competition Held at Ruixin
The Company consistently upholds the quality philosophy of customer first brand supremacy and continuously advances
the development and refinement of its quality management system. It strictly complies with applicable laws and regulations In 2025 Ruixin organized a quality competition themed Striving for Excellence and Improving the First-Pass Yield. Using
including the Product Quality Law of the People’s Republic of China and systematically implements quality management electrolytic furnaces as the unit of evaluation the competition established specific assessment indicators. Through the
activities in accordance with internal policies such as the Management Manual of Northern Rare Earth the Procedure optimization of production scheduling the refinement of process management and the deepening of mutual inspection
Documents of Northern Rare Earth and the Quality Management Measures of Northern Rare Earth. In doing so the Company and mutual review mechanisms it fostered a healthy competitive environment effectively motivated employees to pursue
enhances the standardization of quality management regulates operational procedures and ensures the compliant operation excellence and provided internal impetus for the organization’s efforts to strengthen technical capabilities and improve
and stable control of its product quality management system. product quality.The Company has established a work framework centered on the Chief Quality Officer second-level quality committee and
third-level quality specialists. By clearly defining responsibilities at each level it systematically advances quality management.The Company continuously strengthens ISO 9001 quality management system certification to ensure the standardized and
efficient operation of quality management.Awards and Honors
ISO 9001 Quality Management System Certificates
In September 2025 the Company
was awarded the China Quality
Award Nomination.
95 96China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
Strategy Opportunity Identification and Response
The Company adheres to a quality-driven development strategy treating quality management as a core priority. Through List of Identified Quality Management Opportunities
systematic implementation of quality planning rigorous product quality control efficient quality complaint handling and
strengthened quality supervision and assessment it continuously enhances the quality and consistency of rare earth products Opportunity
Potential Financial Impact Response
thereby providing sustained momentum for the industry’s high-quality development. Type
The Company has introduced an innovative quality management mode encompassing Three-Line Three-Total and Three-
Process. The Three-Line framework enforces stringent internal control standards effectively creating a protective net for
Continuous research and development of We p r o m o t e l e a n p r o d u c t i o n t h r o u g h
product quality. The Three-Total model broadens accountability establishing a responsible chain that underscores product
new technologies along with introducing technological transformation reducing costs
quality at every level. Meanwhile the Three-Process framework facilitates hierarchical control forming a robust regulatory
Technology automated equipment can consistently enhancing eff ic iency and strengthening mechanism for quality assurance.Opportunity reduce production costs. competitiveness.Quality Management Model Featuring Three Lines Three Totals and Three Processes.Safety quality and sustainable design are
With improved qual i ty standards the
integrated into R&D.Company gains consumer recognition
We strictly control compliance and quality in
e n co u ra g i n g p o s i t i ve fe e d b a c k a n d
Quality Management production promote green manufacturing and
Market strengthening customer loyalty whi le
Model disclose data.Opportunity supporting premium pricing and higher gross
Three-Line Three-Total We communicate compelling brand narratives profit margins.through ESG reports and social media platforms.Internal control line Total staff
Enterprise standard line Total processes
National standard line Total dimensions
Three-Process Management of Impacts Risks and Opportunities
Strictly verify all inputs from the preceding process The Company places significant emphasis on product quality management and strictly implements all requirements outlined
Meticulously manage the current production process in the Northern Rare Earth Procedure Documents. It has established and continuously refined its quality assurance system
Provide flawless outputs to the subsequent process standardized management processes clarified responsibilities and addressed quality complaints promptly and efficiently. This
approach effectively controls nonconforming products protects customer rights and enhances satisfaction and trust.Risk Identification and Response Management Process
Identification Assessment Monitoring Response
List of Identified Quality Management Risks
Potential risks in The identified product Relevant personnel are Each department
Risk Type Risk Description Potential Financial Impact Responses workshops production risks are then evaluated assigned to monitor the determines appropriate
processes and and risk coefficients are implementation progress responses to risks and
personnel are screened assigned according to and effectiveness opportunities adopting
and identified one criteria such as severity of the measures approaches such as
Some products’ noncompliance
Defects in product quality by one with multiple and frequency of thereby ensuring their risk acceptance risk
with industrial standards or Upgrade equipment operation and
or design may trigger factors considered to occurrence enabling the effective execution. reduction and risk
customer requirements may maintenance and monitor process
negative commentary determine potential identification of major The effectiveness of avoidance to ensure
prompt complaints thereby parameters in real time;
Reputation undermine consumer risk points. risk items. corrective actions is that risk control damaging the Company’s Strengthen staff training and
Risk trust and influence continuously evaluated measures are both brand image and eroding standardize operating procedures.prospective customers. until the established effective and feasible.customer loyalty.objectives are achieved.
97 98China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
Full-cycle Quality Management Lean Management
In accordance with the Qual i ty Management The Company has deeply advanced a lean management system grounded in the excellence performance model. It has
Measures the Company has es tab l i shed a formulated the Detailed Rules for Lean Management implemented lean concepts and methods continuously applied lean tools
comprehens ive qual i ty management system In 2025 generating an estimated to enhance operational management and established lean benchmark production lines.spanning quality planning quality control throughout the Company launched quality benefit of
the product realization process finished product In 2025 the Company initiated 76 lean projects surpassing the annual target by 26.7%. It consistently provided on-site
37 approximatelyquality management quality dispute resolution guidance for lean production lines workshops and teams thereby enhancing production-line maturity steadily refining incident management and quality supervision and 14.7 evaluation benchmarks for workshop and team development and further strengthening lean principles.assessment. This framework effectively mitigates quality improvement initiatives million Yuan
quality risks and ensures both the qualified rate of
final products and customer satisfaction. Metrics and Targets
Quality Management Initiatives In 2025 the first-pass yield for separated products reached
99.98% for metal products 93.19% and for functional material
products 99.72%. No major product-quality liability incidents or Company-wide quality
Focusing on key quality risk points such as quality objections and production abnormalities recalls occurred during the year. management training with a total of
the Company systematically investigated and diagnosed quality deficiencies across
Company-wide quality management training strengthened
production processes management procedures sales services and other relevant areas 3441 attendances
quality awareness and the use of quality management tools
Quality and carried out comprehensive self-inspection and rectification. A total of 52 issues were with a total of 3441 attendances.Management identified and fully corrected.Inspection All departments also conducted follow-up reviews of the rectification measures for issues
identified in internal and external audits of the quality management system over the years. 2025 Quality Management Targets
By organizing 64 items and evaluating the implementation outcomes of corrective actions
the Company further advanced the continuous improvement of its management system.
2025 Quality Management Targets Status
Adhering to a sharing philosophy the Company has promoted coordinated development
Quality Management across all processes leveraged mutual strengths to address weaknesses and achieved
Benchmarking collective progress. These efforts have enhanced the Company’s overall quality management First-pass yield of products in the separation segment and functional
level and product quality thereby creating value through quality. materials segment > 98%; first-pass yield of PrNd metal products > √ Completed
93%; first-pass yield of products in the terminal application segment
>97%.Zero quality accidents at the Company’s level-2 and above entities. √ Completed
The Company conducted random inspections of raw materials and products including
Quality Analysis and concentrates praseodymium-neodymium metal and neodymium metal. It also organized Customer satisfaction with products and services ≥ 98%. √ Completed
Comparison 10 entities including the BRIRE and the Smelting Branch (Huamei) to compare analytical
results. Annual output of high-value-added raw material products increases
by more than 10% year-on-year; annual output of high-value-added √ Completed
functional materials increases by more than 12% year-on-year.The quality environment occupational health and safety and energy
management systems operate continuously and effectively. √ Completed
99 100China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
The Company has issued the Northern Rare Earth Measures for Handling After-Sales Product Quality Complaints thereby
Integrity and Consumer Protection establishing a systematic customer complaint management framework. This framework implements a closed-loop process encompassing complaint classification detailed recordkeeping cause investigation solution development progress
tracking and communication of outcomes to customers accompanied by feedback solicitation. This approach ensures clear
accountability and a verifiable basis at each stage thereby supporting the continuous optimization and effective operation of
the management system. In 2025 the Company reported no customer complaint incidents.The Company has consistently maintained a customer-centric approach prioritizing customer needs and continuously
optimizing its service system. It has strengthened customer service capabilities safeguarded customer rights and enhanced
privacy protection. By delivering high-quality products and service solutions the Company aims to improve customer Customer Satisfaction Survey
satisfaction and brand loyalty while fostering mutually beneficial sustainable growth.In accordance with the Northern Rare Earth Measures for Customer Satisfaction Measurement the Company has systematically
standardized customer satisfaction survey management conducted regular surveys advanced measurement activities
Protecting Customer Rights prepared satisfaction analysis reports and established a scientific evaluation mechanism. These measures have enabled the
consistent delivery of high-quality products and services exceeding customer expectations. In 2025 customer satisfaction
remained at 100%.The Company upholds a customer-first service philosophy and conducts its business in strict compliance with the Law of
the People's Republic of China on the Protection of Consumer Rights and Interests. It has also established internal policies
including the Northern Rare Earth Customer Management Measures and the Marketing Service Management Measures to
standardize customer relationship management and service procedures strengthen employees’ market service awareness and Customer Communication
continuously enhance the Company’s brand influence and overall market competitiveness.The Company continually optimizes its marketing strategies by closely monitoring national and local policy developments and
Customer Management Architecture strengthening collaboration with local governments in project coordination and resource integration. It prioritizes long-term
stable customer relationships and maintains close communication through flexible channels including phone calls emails
WeChat and regular on-site visits. This communication focuses on contract formation contract execution details product
Customer usage and service feedback.Customer Classification Customer Information
Service The Company also seeks to deepen collaborative relationships with high-quality strategic partners across diverse sectors. By Development and Review Management
Management integrating multi-party resources and capabilities it jointly establishes a virtuous closed-loop mechanism of needs insights–Management service upgrade–ecological synergy thereby systematically enhancing overall service efficiency and market competitiveness.Customer
Customer Relations Customer
Admission Maintenance Complaint
Management Management
Customer Privacy Protection
The Company consistently prioritizes customer rights and is committed to establishing a high-quality service system that Customer Information Archive
encompasses the full lifecycle of pre-sales in-sales and after-sales support. It actively incorporates customer feedback refines
product and service details continuously improves customer experience and satisfaction and fosters long-term stable and
mutually trustworthy partnerships with every client. The Company continuously strengthens customer information management by establishing a filing system that encompasses
key data including credit assessments sales contract execution correspondence and legal documents related to dispute
Customer Service System resolution. The system is regularly updated and analyzed to ensure data accuracy and timeliness thereby improving the
completeness and reliability of customer information while enhancing customer satisfaction and long-term trust.Before Sale During Sale After Sale
The Company upholds exemplary standards in customer privacy protection strictly adhering to the Consumer Rights Protection
Law of the People’s Republic of China. We have implemented stringent protocols to safeguard all customer information
Our integrated service model The sales cycle is managed T o e n s u r e c o n t i n u o u s obtained during business operations prohibit unauthorized access or disclosure of client data and eliminate any potential
delivers comprehensive information through end-to-end tracking improvement we implement breaches of customer privacy.support through market research with proactive progress updates satisfaction surveys establish
product promotion campaigns and to clients complemented by dedicated complaint hotlines The Company actively protects sensitive information including confidential data intellectual property and proprietary
structured feedback systems. We scheduled follow-ups to monitor w i t h m u l t i p l e r e p o r t i n g technologies to safeguard its long-term interests and support sustainable stable and efficient development in a highly
provide customized solutions via evolving needs and satisfaction channels and conduct periodic competitive market. The Company and its subsidiaries implement advanced technical measures to secure information
efficient inquiry processing and levels. relationship reviews with key belonging to suppliers customers and employees effectively mitigating risks such as data leakage tampering damage and
specialized technical evaluations accounts through mutual ly unauthorized access.for unique product requirements. scheduled visits.No customer privacy leakage incidents occurred within the Company in 2025.
101 102China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
Organizational Chart of Safety Management
Product Safety and Sustainable
Operations Work Safety Committee
Work Safety Committee Office
The Company rigorously upholds fundamental workplace safety
principles by diligently enforcing safety production responsibilities
and continually enhancing safety management systems and For 2025 a dedicated safety
operational procedures. These initiatives are designed to investment allocation amounts to
strengthen safety awareness among employees develop smart
safety-focused factories and establish a secure operational 36.21million yuan
foundation for sustainable business growth. For 2025 a dedicated
safety investment allocation amounts to 36.21 million yuan.Governance
In s t r ic t compl iance wi th the pr incip les of Three
-Responsibility and Three-Must stipulated in the Work
Safety Law of the People’s Republic of China the Company
revised and enhanced the full-staff work safety responsibility
system. It also optimized the performance duty list for all
departments and positions and incorporated quantitative Controlled and Above Subsidiaries （25）
assessment criteria thereby providing strong support for the
annual evaluation of work safety performance. Meanwhile
in accordance with the requirements for work safety
standardization the Company improved supporting safety
documentation and strengthened on-site management
across all production and business units.Branches（1） Wholly-owned Absolutely-controlled Relatively-controlled
Subsidiaries （4） Subsidiaries (9） Subsidiaries（11）
In 2025 the Company issued the Measures for the
Administrat ion of Dual Prevention Mechanisms for
Hierarchical Control of Safety Risks and Inspection and
Rectification of Hidden Dangers and the Measures for
the Administration of Laws Regulations Standards and
Norms on Work Safety. These measures further clarified
the requirements for implementing the dual prevention
mechanism and identifying relevant work safety laws
regulations standards and specifications.
103104
(Industrial Transformation Center) Hongtianyu
Technology Center
Feida Rare Earth
Marketing Dept Wuyuan Runze
Bo Rare Earth
Equipment and Engineering Dept Pulingzhi
Zhongxin Antai
(Legal Affairs Dept.) BRIRE
Securities Dept
Xinfeng Xinli
Group Management Dept Gansu Rare Earth
Dabowen
(Environmental Protection Dept.) Northern Jinlong
Safety Management Dept
Baogang Steel Hefa
Ruixin Company
Production and Technology Dept
Huaxing Rare Earth
Rare Earth International Trade
Planning and Development Dept
Northern Jiaxuan
Tianjiao Seimi
Plan and Finance Dept Northern Magnetic Materials
Ruihong Company
Audit Dept Quannan Technology
Renewable Resources
Discipline Inspection
Commission Xi’aoke
Huamei
(HR Dept Trade Union)
Party Committee Work Dept
Smelting Branch
General OfficeChina Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
The Company has established a promotion mechanism Case Study Safety Training for Team Leaders
of supervision by headquarters implementation at
entities and support from experts to help its affiliated
entities complete the grading assessment for work In 2025 the Company organized two safety
safety standardization. The number of secondary-level training sessions for team leaders with more
standardization units increased by 40% year over year than 130 attendees. The training emphasized
while tertiary-level standardization units achieved full job responsibilities and accident case studies
coverage. Overall safety governance capacity has improved thereby strengthening the implementation
significantly. Currently seven affiliated entities hold of safety responsibilities at the team level
secondary-level work safety standardization certification enhancing grassroots risk prevention and safety
and sixteen subsidiaries hold tertiary-level certification. management capabilities and supporting the
sustained effectiveness of safety management.Work Safety Standardization Certificate
In accordance with the relevant requirements of the Measures for Accountability of Persons Responsible for Work Safety
Accidents the Company promptly addresses all work safety liability incidents. Accountability is pursued in line with the
principles of three-responsibility and three-must. Disposal proposals for the responsible persons are submitted to the Case Study Fire Safety Training
Company’s Work Safety Committee for review and implementation. Subsequent accident investigation teams conduct follow-
up reviews in accordance with the “four no exceptions” principle ensuring full-process closed-loop management. In 2025 the Smelting Branch (Huamei) conducted fire safety training in accordance with its annual plan. The program
focused on relevant provisions of the Rules for the Identification of Major Fire Hazards thereby further enhancing the
professional knowledge and competency of fire safety management personnel.Safety Culture Development
The Company further advances the development of safety culture leveraging its guiding role to ensure the effective
implementation of the Safety Culture Development Implementation Plan. It strengthens employees’ safety awareness
standardizes daily operating practices progressively enhances the overall safety literacy and emergency response capabilities
of all staff and consistently fosters a safe stable and orderly working environment.In 2025 the Company and its affiliated entities systematically implemented a range of safety education and training activities
in accordance with the annual work safety training plan established at the beginning of the year. A total of 249 sessions
were conducted reaching 21184 attendees and effectively enhancing employees’ safety awareness and professional safety
knowledge.The Company fully implements national policies on work safety and fire prevention and responds proactively to the guiding
Safety Training Performance principles of the national Work Safety Month and Fire Prevention Publicity Day campaigns. It further strengthens employees’
responsibility for work safety and fire prevention firmly establishes the concept of safe development enhances fire safety
awareness and comprehensively improves employees’ safety competence and self-rescue and mutual rescue capabilities
Number of safety and occupational Safety and occupational Attendance in safety and thereby effectively preventing work safety accidents and fire incidents.health training sessions health training hours occupational health training
In 2025 leveraging Work Safety Month and Fire Prevention Publicity Day as key opportunities the Company actively promoted
249 2067 21184 a strong safety culture disseminated fire management knowledge and organized a range of diverse awareness activities.
105 106China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
Case Study Campaign for Safety Cultural Creative Works
During the 2025 Work Safety Month the Company launched a selection campaign for safety cultural creative works under
the theme Cultural Cohesion Safe Progress. Entries were required to focus on identifying and preventing potential safety Work Safety Reminders Safety Signs
hazards. Participants developed works centered on fire safety electrical safety machinery safety hazardous chemicals
safety construction safety traffic safety or other specific fields or created comprehensive pieces addressing multiple
areas to provide an in-depth analysis of common safety risks and their associated hazards. Submissions demonstrated
innovation insight and rich safety cultural elements effectively promoting safety education for all employees and vividly
reflect the Company’s work safety practices and achievements across various production positions.Work Safety Slogans Safety Culture Wall
Strategy
The Company has formulated the Implementation Plan for the 2025 Three-Year Action Plan of Northern Rare Earth for Tackling
Fundamental Issues in Work Safety to ensure the thorough and systematic implementation of the broader three-year action
initiative.Based on its actual operational conditions the Company comprehensively identifies safety risks and improvement opportunities
throughout the production process. Through scientific evaluation it continuously optimizes its management system clarifies
priorities for improvement and develops effective risk prevention and enhancement strategies thereby strengthening safety
assurance and supporting the enterprise’s sustainable development.Case Study Family Safety Message Campaign
Risk Identification and Response
During Work Safety Month the Company organized a family safety message contest titled Family Wishes for Safety –
Building Safety Together. This initiative integrated family care into safety management strengthened employees’ safety
awareness and encouraged them to recognize the close connection between workplace safety family well-being and List of Identified Safety Management Risks
corporate development. By emphasizing self-discipline and attention to detail employees were motivated to comply
with safety regulations perform standardized operations identify and mitigate potential hazards and eliminate risks. As Risk Type Risk Description Potential Financial Impact Responses
a result the activity fostered a strong culture of safety that united employees and their families in supporting safe and
sustainable development.If the Company lacks a sufficient
understanding of work safety
laws and regulations and fails
to implement the relevant Significant fine expenses
measures effectively it may revenue losses from Annual training plans for work
face severe penalties including production suspension safety practices and relevant laws
substantial fines and mandated and rectification and and regulations are developed and
rectification within a specified increased compliance incorporated into the annual plan.Legal Risk timeframe. Such consequences retrofitting investment. Promotional activities for Work
could significantly disrupt daily Reputational damage Safety Month are organized
operations undermine economic resulting in reduced regularly.performance and ultimately market share.threaten the foundation of
the Company’s sustainable
development.
107 108China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
Safety Hazard Investigations
Risk Type Risk Description Potential Financial Impact Responses
The Company implemented a combined supervision model integrating company-led oversight with mutual entity inspections
comprehensive inspections with specialized inspections zone-based inspections with off-site inspections and key entity
oversight with construction project inspections. Throughout the year it conducted a total of 314 safety supervision inspections
across its affiliated entities. These inspections focused on the development of work safety standardization systems hierarchical
risk control and hazard identification and rectification mechanisms confined space operations management the storage and
use of hazardous chemicals occupational health management and fire safety. This approach effectively supported subsidiaries
Sharp increases in
If the Company neglects in steadily enhancing their safety management capabilities.compensation expenses
safety management in Relevant management rules are
for casualties and litigation
production operations a major formulated.costs coupled with the
safety incident—especially A work safety responsibility
immediate depreciation of
one involving serious injury or system is established clarifying
brand value. Safety Hazard Investigation Performance
fatalities—can quickly damage the responsibilities of each
Loss of market orders and
public trust once exposed. department.declining operating revenue.Such an event may severely Hazard investigations are
Reputation Higher financing costs Number of safety hazard Number of safety hazards Rectification rate of safety harm the brand image attract conducted in accordance with
Risk and restricted refinancing inspections identified and rectified hazardsintense public scrutiny applicable regulations;
channels.and place pressure on the Emergency management plans
Termination of project
Company’s market position. are developed and drills are 1793 7840 100%
cooperation thereby
It may also weaken financing regularly organized to strengthen
limiting future expansion
capacity and constrain future employees’ work safety awareness.and impairing long-term
business expansion.profitability.Detailed Procedure for Safety Hazard Inspection
Plan A detailed hazard inspection plan is established explicitly defining the scope of inspections
specific checkpoints assigned responsibilities and risk-based inspection frequencies.Opportunity Identification and Response
The inspection system must ensure comprehensive coverage through integrated approaches
Inspect combining scheduled and ad-hoc inspections specialized technical reviews with cross-functional
List of Identified Safety Management Opportunities audits as well as routine checks complemented by focused priority-area verifications.Opportunity
Potential Financial Impact Response
Type
Upon identification general hazards shall trigger immediate remediation procedures while
Remedy
critical hazards demand emergency containment measures.By leveraging information systems to enable
This helps improve overall operational early risk warnings and visualized management
efficiency significantly reduce the probability the Company achieves rapid detection real-time
Management of accidents and thereby avoid financial monitoring proactive alerts and coordinated Post-remediation qualified technicians must conduct thorough effectiveness evaluations to
Efficiency expenditures caused by accidents. response thereby strengthening its overall Assess confirm hazard control or elimination.capability to prevent workplace safety risks.The originating inspection department verifies completion through formal acceptance
Accept protocols updates relevant control measures and documents the closed-loop management
process to ensure full accountability.
109 110China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
Case Study Pre-Holiday Safety Inspections by the Company Management of Impacts Risks and Opportunities
Before the Spring Festival the Company conducted pre-holiday safety inspections at its affiliated entities. It thoroughly
examined key production equipment and firefighting facilities assessed potential safety hazards employees might Management Process
encounter during operations and reviewed safety supervision in critical positions and key areas as well as the
implementation of the leadership duty system and the work safety status of each entity. The Company strictly enforced
the work safety responsibility system and internal safety management regulations strengthened the identification and
control of safety and fire hazards and ensured dynamic hazard identification rectification and closure. It also closely Establish a comprehensive risk identification mechanism to regularly identify
monitored weather changes promptly tracked weather warning information made advance preparations to protect hazardous and harmful factors and ensure timely detection of potential safety
employee safety and property and effectively carried out safety work during the holiday period. In addition the Company Identify risks.strictly implemented the leadership duty system maintained comprehensive awareness of its work safety status ensured
smooth information flow and guaranteed the stable operation of work safety throughout the holiday.Prior to the Spring Festival the Company conducted on-site pre-holiday safety inspections at the Hefa workshop and
emphasized strict adherence to the principle of “Three-Responsibility and Three-Must”. The Company further intensified
special inspections and rectification of major accident hazards strengthened safety prevention measures standardized
operational management and procedures effectively urged workshop-level principal leaders to fulfill their duties and Organize a risk identification team with professional personnel to conduct
reinforced safety supervision in key areas critical processes and special operations. These measures ensured a stable safety risk assessments based on actual conditions. Adopt the LEC method
work safety situation throughout the holiday period. Assess to grade identified risks and assign risks of different levels to the Company’s
corresponding management ensuring all risks are preventable and controllable.Formulate targeted control measures from the dimensions of engineering
technology management training & education personal protection and
emergency response. Clarify responsible entities and implementation standards
Monitor while strengthening safety training to improve employees' risk awareness and
emergency handling capabilities.Drive effective control of safety risks across all departments and affiliates by
improving institutional development strengthening supervision and inspection
ensuring safety investment and implementing strict assessment and incentive
Respond mechanisms.Safety Risk Management
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 2025 100% of
identified risk points under daily management have been effectively controlled.
111 112China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
Graded Risk Management Gansu Rare Earth Conducts Chlorine Leak Emergency Drill at Liquid Chlorine Case Study Storage Tank Area in the Liquefaction Section of the Chloric Acid Workshop
For our existing production system we have established a
complete industrial chain encompassing rare earth smelting In June 2025 Gansu Rare Earth conducted a
and separation functional materials and end-product chlorine leak emergency drill in the liquid chlorine
applications. It has also formulated the Management storage tank area of the liquefaction section of
Policy for Hazard Source and Hidden Danger Monitoring the chloric acid workshop. After the alarm was
of Northern Rare Earth. In accordance with the operational activated all personnel responded promptly
requirements of the safety management system all and emergency responders equipped with
affiliated entities arrange professional personnel to form risk protective gear managed the incident effectively.identification teams before the first quarter of each year. Firefighting water was used to absorb the leaked
These teams conduct a comprehensive re-identification of chlorine enabling the hazard to be eliminated and
safety risks in response to changes in personnel production normal production to resume. The drill confirmed
processes equipment and other on-site conditions. The the feasibility of the emergency response plan
company classifies identified risks by grade using the LEC and demonstrated strong cross-departmental
risk assessment method and designates workshops and Four-color Map for Safety Risk coordination thereby strengthening workplace
plant areas with a four-color zoning system: red orange Identification safety preparedness.yellow and blue. Risks of different grades are assigned to
corresponding management levels for hierarchical control.Safety Emergency Management Case Study Fire Emergency Drill
Emergency drills are performed in accordance with the Emergency In June 2025 Xi’aoke conducted a specialized fire
Response Plan for Work Safety Accidents and in response to actual emergency drill for metal fire incidents simulating
conditions thereby strengthening the response capabilities of its a smoldering hydrogen storage alloy powder
emergency rescue teams. Each production and operating entity has scenario. The exercise integrated firefighting and
also developed its own work safety accident emergency response rescue evacuation and escape and the use of fire
plans including comprehensive specialized and on-site response protection equipment thereby comprehensively
plans ensuring that these plans are lawful compliant scientifically testing the company’s emergency response
grounded and practical. mechanism and strengthening employees’ fire
safety awareness and emergency response
In 2025 each production and operating entity in accordance with capabilities.the emergency drill plan formulated at the beginning of the year
systematically organized and conducted 555 emergency drills. These
comprehensive specialized and on-site response exercises involved
8342 attendees effectively strengthening the on-site response
capabilities of emergency rescue teams and fully verifying the
feasibility and applicability of the emergency response plans. The Company has released the Notice on Strengthening Emergency Duty and Safety Management During Extreme Weather
and Critical Periods which outlines comprehensive preventive measures for addressing extreme weather challenges.Furthermore a strategic work deployment meeting was convened to coordinate and enhance preparedness and response
initiatives specifically for the upcoming flood season.Emergency Drills Performance
Safety Management Information System
Number of emergency drills Attendance in emergency drills
555 8342 The Company has optimized its safety management information system advancing the transformation of management models and continuously enhancing system functionality. By integrating safety data resources and streamlining management
processes it has shifted safety management from experience-based to data-driven practices and from decentralized control to
coordinated collaboration.
113 114China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
Metrics and Targets Supply Chain Collaboration and
In 2025 the Company recorded no work safety accidents at the general level or above for which it was held liable. Ecosystem Building
Work Safety Performance
The Company is resolutely committed to establishing a secure healthy and stable supply chain through several strategic
Metric Value initiatives. These include the integration of ESG principles into supply chain management equitable treatment of all suppliers
the adoption of green and transparent procurement strategies and the enhancement of supplier management standards. Our
Number of work certificates obtained by professional personnel （attendance） 1200 purpose is to actively co-create a collaborative and sustainable supply chain ecosystem ensuring long-term viability and ethical
Number of special operation qualification certificates obtained by professional responsibility.
1296
personnel （attendance） Win-win cooperation through integration is essential for aligning upstream and downstream resources across the industrial
1.1356 chain and building a high-quality rare earth ecosystem. As a chain leader the Company leverages its leadership and influence Work safety liability insurance expenditure (million yuan)
to enhance core functions strengthen competitiveness and deepen collaboration with governments enterprises research
Number of employees covered by safety liability insurance 8384 institutions and social organizations. By fully considering the interests and needs of all stakeholders it promotes mutual benefit
and shared success thereby creating new opportunities for the development of China’s rare earth industry.Safety Management Targets Supplier Management
The Company firmly employs the principles of “categorized management and dynamic maintenance” establishing robust
supplier management systems through internal regulations notably the Northern Rare Earth Supplier Management Procedures.We have 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
2025 Safety Management Targets Status of a transparent efficient and sustainable procurement and supply chain management system.
Supplier Management Principles
Zero major production safety accidents zero major equipment
safety accidents zero major traffic safety accidents zero major fire √ Completed
accidents. 01 Reasonable authorization graded evaluation categorized management and necessary updates.Injury rate per thousand persons ≤ 0.6%. √ Completed
Implementation rate of safety education and training plans rate of 02 Internal sharing of supplier resources with priority given to strategic and key suppliers.all-employee training rate of three-level safety education and rate
Completed
of training for special operation and special equipment operators to √
obtain or renew certificates: 100%.
03 Open fair and impartial selection; those who engage the supplier shall conduct the evaluation.
Annual inspection periodic inspection and registration certification
rate for special equipment: 100%. √ Completed
In daily management 100% of risk points are under control hazard
√ Completed Supply Chain Risk Managementrectification rate: 100%.The Company continuously strengthens supplier ESG management by explicitly integrating ESG principles into supplier
management measures including supplier access evaluation and assessment. It closely monitors supplier performance
in labor rights protection environmental protection occupational health and safety and business ethics. By implementing
categorized supplier management and strictly controlling supplier access assessment evaluation and exit processes the
Company effectively assesses supplier risks and further enhances the stability and reliability of the supply chain.
115 116China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
Supplier Management Mechanism Synergistic Development with Suppliers
Suppliers are required to adhere to national regional and industry regulations as well as the Guided by the principles of prioritizing strategic cooperation manufacturers quality credibility and service the Company has
Supplier Company’s standards for quality safety and environmental management. For the procurement of bulk intensified its efforts in market expansion resource development and partnership negotiations. By benchmarking industry
admission raw materials and critical equipment it is essential to implement mandatory traceability verification and peers leveraging official websites and industry associations and participating in exchanges and training activities it continues
conduct on-site inspections. to expand its supplier network. Through strategic cooperation with high-quality suppliers the scope and proportion of direct
procurement have increased ensuring a stable supply of materials.The Company also strengthens mutual trust and industrial coordination with outstanding suppliers through telephone
communication formal correspondence on-site visits and strategic cooperation seminars. Both parties share development
Supplier We carry out both regular and annual assessments that emphasize quality performance service plans and work together to build an industrial ecosystem characterized by seamless connection efficient operation and
review and reliability and compliance records. Essential requirements include: zero violation records complete sustainable circulation.assessment supply chain compliance and the development of sustainable partnerships.Efficient Procurement Transparency
Supplier Approved suppliers are systematically categorized into three distinct classifications: Strategic Suppliers The Company adheres to the principles of openness fairness impartiality good faith and merit-based selection. In accordance
classification Key Suppliers and General Suppliers. with the Procurement Management Measures of Northern Rare Earth and the Procurement Operation Specifications for State-
owned Enterprises procurement activities are conducted through electronic procurement platforms and other public channels
via bidding public announcements and related procedures. Through strategic procurement and long-term supply agreements
the Company has established a mutually beneficial partnership model with high-quality suppliers ensuring a stable supply
chain and reducing procurement risks.The Company has consistently upheld open and transparent procurement practices. To ensure standardized and transparent
Supplier The evaluation results will inform the following actions: downgrading suppliers based on performance procurement procedures it regularly provides systematic professional training for procurement staff thereby continuously
exit metrics; or removing suppliers from the approved list as necessary. strengthening employees’ operational capabilities professional competence integrity awareness and self-discipline. By
reinforcing ideological safeguards the Company effectively prevents misconduct including negligence of duty fraud and
abuse of power.In addition the Company actively collaborates with supplier partners to establish a rigorous two-way integrity management
During the supplier development process the Company actively expands its supply channels. For major bulk materials it adopts and supervision system. Integrity agreements are formally signed to clarify the rights obligations and codes of conduct of all
a strategic cooperation model with leading domestic and international enterprises. Through emergency procurement and parties. Together these efforts promote an efficient transparent and incorruptible procurement ecosystem foster a sound and
related measures the company ensures the stable and continuous supply of the supply chain under unforeseen circumstances. ethical procurement environment across the industry and support the healthy development of the supply chain.In 2025 no major supplier risks or related impact incidents occurred.Equal Treatment of Small and Medium Enterprises
The Company places great importance on and actively supports the development of small and medium-sized enterprises (SMEs)
Supply Chain Risk Management effectively safeguarding their legitimate rights and interests through concrete actions. It promotes coordinated development
across the industrial chain contributing to shared prosperity and sustainable progress. In 2025 the Company had no overdue
payments to SME suppliers.Critical risk incidents Suppliers involved in critical Persons involved in critical
in suppliers supply chain risk incidents supply chain risk incidents
000
117 118China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
119 120China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
Employee Rights and Protection
The Company places strong emphasis on safeguarding employees’ rights and interests. By continuously refining its 179 0
compensation and benefits systems and implementing effective incentive mechanisms it ensures that employee contributions
are appropriately recognized and rewarded. Moreover the Company strengthens democratic management protects employees ’
Employees by
rights to know participate and supervise and fosters stable labor relations that support high-quality sustainable development. Employees by 649 level region
Lawful Employment
1012010948
The Company strictly complies with the Labor Law of the People’s Republic of China the Labor Contract Law of the
People’s Republic of China and other relevant laws and regulations. It fully integrates the principles of equality diversity and Senior Management Middle management Chinese mainland
inclusion into its human resource management practices. By continuously improving policies such as the Labor Employment General employees Overseas and Hong Kong Macao and Taiwan Region
Management Measures the Company rigorously applies anti-discrimination principles in recruitment employment promotion
and other processes thereby ensuring equal rights and development opportunities for all employees.In accordance with legal and ethical standards the Company firmly prohibits child labor and forced labor implements equal
731
pay for equal work between men and women and signs labor contracts with all employees in compliance with the law. Through
both institutional design and operational execution the Company effectively safeguards employees’ rights and interests. In 219
2025 no incidents involving child labor or forced labor occurred within the Company.
Employees Employees
Staff Composition by education with special
background needs
2528
Total employees10948
347
7689
2419 Three-year college or below Bachelor’s degree Employees with disabilities1442
Master’s degree or above Resettled veterans
2874
Employees by Employees by 2025 new employees Employee turnover rate
gender age group
14860.79%
8529 6632 Employment contract rate Social insurance rate
Male Female 30 years old or below 30 - 50 years 100% 100%
50 years old or above
121 122China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
Compensation Distribution Management
Trade Union Performance
The Company is committed to establishing a sound equitable scientific and reasonable compensation benefits and incentive
system. Guided by strict control rigorous assessment and strong incentives it continues to advance the “133N” salary system Total trade union members Full-time trade union staff
reform and has developed supporting policies including corporate compensation management measures and detailed
implementation rules ensuring that salary distribution is closely aligned with the Company’s economic performance and
employees’ actual contributions. 10948 21
Employee Benefits
Trade union count Trade union satisfaction Rate of requests resolved by trade union
Statutory social insurance (pension medical work injury maternity 41 99.22% 100%
unemployment) housing provident fund enterprise annuity and supplementary
Basic medical insurance.Benefits Paid leaves (national holidays annual leave sick leave maternity/paternity leave
nursing leave).Additional Employee accident mutual aid insurance and supplementary medical coverage. The Fourth Session of the Third Workers’ Congress and the Case Study
Benefits Allowances (meal transportation winter heating) and festival/birthday gifts. Sixth Session of the Third Members’ Congress
The Company successfully conducted the fourth
session of the third Workers’ Congress and the
Term-based performance incentives General Manager Reward Fund employee sixth session of the third Members’ Congress
Incentive innovation improvement awards management innovation prizes and so on. where representatives engaged in a thorough
Programs Monetary awards for model workers (all levels) outstanding Communist Party evaluation of the Company’s leadership and the
members master craftsmen advanced production workers Top Ten Outstanding development of the Workers’ Home. Empowered
Youths outstanding female employees and “Five-Virtue Civilized Family”. by a profound sense of responsibility worker
representatives actively contributed by sharing their
experiences providing suggestions and offering
effective strategies tailored to their specific roles.Democratic Management This collaborative effort reflects a commitment to
advancing the collective goals of the Company as
they embark on a promising new journey together.The Company consistently prioritizes employee welfare fully leverages the trade union’s bridging role and systematically plans
and continuously improves its welfare system. Through diverse welfare initiatives it effectively enhances employees’ sense of
fulfillment and well-being while providing strong support for their holistic development.The Company upholds and continually improves its democratic management system with the staff congress factory affairs
disclosure and collective bargaining serving as its fundamental mechanisms. It strictly implements the factory briefing
system and standardizes the handling of proposals submitted to the staff congress. By continuously expanding channels of
communication with employees the Company safeguards their rights to information participation and supervision thereby
ensuring the effective exercise of the staff congress’s functions and powers. Throughout proposal handling the Company
applies whole-process follow-up management to achieve a 100% satisfaction rate for proposal responses. In addition in-depth
inspections by staff representatives further strengthen democratic management and employee participation. Through these
efforts the Company consistently fosters harmonious and stable labor relations and provides strong internal momentum for
high-quality enterprise development.In 2025 the employee satisfaction rate for the Company reached 99.22% and no labor disputes occurred during the year.
123 124China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
The Company has introduced the Special Training Plan for High-Level Talent supporting the development of high-level talent
Employee Development through ten key measures.Special Training Plan for High-Level Talent
The Company fully implements the strategy of strengthening the enterprise through talent development. Guided by two core A specialized training plan is designed for each participant in the special training
objectives—successfully completing the 14th Five-Year Plan and proactively planning for the 15th Five-Year Plan—it remains Differentiated program based on their professional background career trajectory and the Company’s
firmly focused on the overarching goal of high-quality corporate development. By adhering to the principle of precision in and dynamic operational needs. The plan is reviewed and optimized every six months to ensure
talent recruitment development retention utilization and support the Company continues to deepen reforms in talent-related development plans alignment between individual development and corporate objectives.systems and mechanisms thereby stimulating innovation among professionals. This approach has strengthened the talent pool
and provided sustained intellectual support for advancing the Company’s transformation into a world-class leader in the rare
earth sector and for fulfilling its core role in the high-quality development of the Two Rare Earth Bases.Internal and external resources are fully utilized to enable participants to rapidly acquire
A systematic multi-
Talent Acquisition and Cultivation a thorough understanding of the Company’s core business processes advanced level special training industry knowledge and related domains thereby comprehensively strengthening their
system
capabilities.Gathering Talent
The Company continuously advances the recruitment of high-level talent. In 2025 it recruited a total of 43 high-level
The front line is regarded as the core platform for the development of participants.professionals including 3 doctoral degree holders 21 master’s degree holders and 19 undergraduates from Double First-Class “1+5+N – Three-StageThrough the three stages of induction job rotation and training and targeteduniversities. Recruitment from Double First-Class institutions achieved twofold growth. Progressive Training”
development the deep integration of theory and practice is achieved and overall
mechanism
competence is comprehensively enhanced.In 2025 it recruited a
total of
43 3 21 19 Each participant is assigned professional career and youth mentors. Through hands-on doctoral degree master’s degree undergraduates from Double “1+1+1” mentorship skills training face-to-face career planning and personal support for team integration
holders holders First-Class universities model multidimensional guidance is provided to ensure clear developmental direction and high-level professionals
stronger confidence.Cultivating Talent
Career Dedicated positions are established within the technical and business tracks for
advancement participants and strong support is provided for job appointments and professional title
Case Study Ten Measures to Support the Growth of High-Level Talent channels evaluations ensuring stable career development guarantees.The Company has launched the Special Training Plan for High-Level Talent introducing ten major initiatives including a
Three-Stage Progressive Training model and a “1+1+1” mentorship system to support the development of high-level talent.The Company will continue to implement its talent-strengthening strategy deepen reforms of the talent development
system and mechanism and align the “talent chain” more precisely with the “industrial chain”. Through these efforts it
will promote the deep integration of talent development and industrial development thereby establishing a strong talent
foundation for becoming a world-class leader in the rare earth sector and serving as a key force in the development of the
Two Rare Earth Bases.
125 126China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
Participants are encouraged to pursue advanced education through support for part- The Company recommends outstanding talent for prestigious honors and awards at the national
Support for
time master’s and doctoral studies. Academic lectures and tutoring courses are autonomous region and Baotou municipal levels.academic degree
regularly delivered by renowned university professors and scholars and tuition fees are
advancement
reimbursed in accordance with company policy.It has nominated six individuals for distinctions such as Sci-
Tech Entrepreneurship Leading Talent Western Light Visiting
Scholar and the Talent Revitalizing Inner Mongolia program.One person has also been nominated for the Youth Talent
Participants in the special training program are granted access to the Company’s core Project of the Autonomous Region Department of Science
laboratories and R&D centers where they are engaged in major strategic initiatives and and Technology. In addition forty-seven individuals
Project platforms
cutting-edge research projects thereby broadening their industry perspectives and and two teams have been nominated as Baogang Talents.strengthening their professional networks. The Company has further developed and recognized one
national model worker in the industry and information
technology system seven Baogang model workers two
Baogang Top Ten Youth three Baogang Gold Medal
Workers forty-two Baogang Good Workers and five
A reward fund is established to support achievement transformation. In addition Rare Earth Good Youth.A comprehensive services such as intellectual property protection legal consulting and market promotion
system for achievement are provided for the achievement transformation projects of special training program
transformation participants. Experience exchange meetings are also be held regularly to foster a
favorable environment for achievement transformation.National Occupational Standards Rare Earth Smelting Workers and Rare Earth Material
Case Study Production Workers are Created to Fill a Gap in National Vocational Skill Standards
In November 2025 the national occupational standard
Compensation and Competitive benefits are provided to enhance participants’ sense of belonging and titled Rare Earth Smelting Workers passed its final
benefits support satisfaction. review while the standard titled Rare Earth Material
Production Workers passed its preliminary review. The
development of these national occupational standards
not only demonstrates the Company’s deep commitment
and responsible role in the industry but also marks a
significant milestone in the high-quality development of
Honorary awards such Baotou’s rare earth sector. This achievement represents anas “Annual Outstanding The advanced achievements and outstanding contributions of distinguished participants important step toward establishing a national occupationalNewcomer Award” and are widely publicized to stimulate work enthusiasm and innovation motivation. standard system for China’s rare earth industry filling
“Innovation Pioneer Award” a critical gap in national occupational standards for the
field and providing new momentum for strengthening the
protection of national strategic resources and advancing
the industry’s high-quality development.Case Study The Company Approved to Establish a National-Level Postdoctoral Research Workstation
In February 2025 the Company was approved to establish a national-level postdoctoral research workstation
demonstrating its strong capabilities in talent cultivation scientific research innovation and achievement transformation.This marks a new stage for Northern Rare Earth in technological innovation high-level talent development and the deep
integration of industry university and research.
127 128China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
Talent Management Employee Training
The Company has thoroughly implemented an all-staff quality improvement initiative. Through targeted planning demand-
Promotion Channels oriented design coordinated implementation categorized advancement and strengthened management new progress
has continuously been achieved in employee education and training thereby providing solid talent support and intellectual
The Company has implemented a comprehensive Employee Career Pathway System designed to optimize the potential and resources for the Company’s deepened reform and high-quality development.expertise of every individual. This initiative fosters an environment where all talents are effectively utilized and specialized skills
are strategically aligned to enhance overall success. The Company has also continuously innovated training models and enriched training platforms. By actively advancing the
digital transformation of training and integrating online and offline learning it has expanded the development of online courses
through internal platforms such as the Corporate Cloud Classroom and regional systems such as the Inner Mongolia Digital
Promotion Channels Intelligent Cadre Education System thereby broadening training resources and strengthening learning flexibility.Management Track
(Sequential promotion levels)
D E
F
B C Employee Training PerformanceA
Total training expense Total training sessions Total training attendance
Technical Track Technical Chief Technical ExpertSenior Technical
Professional Expert
Regional Technical SupervisorTechnical Supervisor
Regional Technical 1.7786million Yuan 526 23800
Technical SupervisorSpecialist
Assistant
Chief 2025 Average training hours per employee Average training hours per senior manager
R&D Track Distinguished Senior Researcher
Lead Researcher
Associate Lead ResearcherResearcher
Assistant Researcher Researcher
119185
Researcher
Chief Business Average training hours per Average training hours per Percentage of employees covered
Business Track Business Senior Business DirectorDirector middle manager average employee by training programs (%)Business
Business Manager
Business Manager
Business SupervisorSpecialist
Associate 92 80 96
Chief Skill
Skilled Trades Track Skill Operations Master
Senior Master Master
Master Expert
Senior Technician
Intermediate Technician
Junior TechnicianTechnician Case Study Training on the Applications of Quality Management Tools
Technician
In October 2025 training on the application
and practice of quality management tools was
Talent Reserve organized by the Company. This training effectively enhanced the participants’ understanding of the
importance of these tools and further clarified the
The Company has instituted the Reserve Talent Cultivation and Selection Management Procedures. It employs bottom- key priorities and direction of quality control. As a
up nominations and targeted open recruitment to build a reserve of managerial talent that is both ample and high-caliber result a solid foundation for the enterprise’s high-
organized by level and specialized by function. Through early-stage identification diversified development and dynamic quality development was thus established.management the Company has established a well-structured talent pipeline with seamless succession between experienced
and emerging leaders.
129 130China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
Case Study Training on Public Opinion Management for Listed Companies
Employee Well-being
In December 2025 the Company organized training on public opinion management for listed companies. The program
enhanced relevant personnel’s understanding of the importance of public opinion risk management strengthened their
ability to respond to complex situations and established a solid foundation for mitigating risks and sustaining a strong The Company remains committed to cultivating a supportive and harmonious work environment. By establishing robust
industry image. employee care mechanisms providing targeted assistance to employees facing hardship safeguarding the legitimate rights
and interests of female employees and regularly organizing diverse cultural and athletic activities the Company strengthens
communication and collaboration across the workforce while enhancing employees’ sense of fulfillment well-being and
security.Staff Well-being
The Company has established a comprehensive multi-tiered employee well-being system. By continuously enhancing
employee benefits improving the work environment and enriching cultural and spiritual life it has significantly strengthened
employees’ sense of fulfillment and well-being. The Company has also developed and refined mechanisms for targeted
assistance and long-term support for employees experiencing hardship and for special groups addressing practical concerns
with diligence and empathy while conveying the organization’s warmth and solidarity. In 2025 the Company implemented more
than 160 initiatives under the I Do Things for People campaign and invested over 1 million yuan in renovating relevant facilities
thereby further improving employee welfare.Staff Care Performance
Employee care expenditure Number of employees Number of employees assisted
assisted per 10000 yuan revenue
2.362 million yuan 166 0.39
The Company encourages employees to pursue various certifications including professional skill level professional title and
practicing certificates to continuously strengthen their professional competence and overall qualifications.Case Study Spring Festival Greetings
Case Study 2025 Professional Skill Level Certification Examination
During the Spring Festival Company leaders led teams to visit employees from multiple affiliated entities in Baotou
In August 2025 the Company organized the including model workers exemplary employees and those facing hardship to convey the organization’s care and extend
2025 Professional Skill Level Certification festive greetings and blessings.
Examination with more than 1300 employees
from 16 subsidiar ies par t icipat ing. The
examinat ion covered 42 rare ear th and
general trades including rare earth extraction
workers rare earth permanent magnet material
production workers industrial wastewater
treatment workers and safety officers thereby
achieving ful l coverage of independent
vocational ski l l level certif ication for al l
employees.
131 132China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
Case Study Tutoring Initiative to Employees' Children Gender Equality in the Workplace
In May 2025 the Company launched a tutoring
initiative Warm Path to Learning – A New The Company recognizes the vital contribution of female employees to enterprise development and has implemented a range
Journey of Wisdom to support employees’ of effective support initiatives to promote their well-being.children preparing for the chemistry experiment
component o f the h igh schoo l ent rance
examination. Nearly 20 children received tailored
guidance. The program strengthened their sense The Special Collective Contract for the Protection of Female Employees’ Special Rights and Interests
of support belonging and pride in the Company. is signed on schedule thereby empowering women’s rights to participate in democratic management
access career development opportunities and receive equal benefits.In addition participation in and renewal of special disease insurance for on-the-job female employees
are actively promoted.Case Study Making Happiness Tangible and Striving
In 2025 the Smelting Branch (Huamei) addressed
high-frequency employee needs including
commuting and dining through concrete
Outstanding female employees are recognized and commended while Women’s Model Positions
measures that eased travel difficulties ensured
and innovation studios are created to facilitate their continued excellence and contributions.convenient charging and improved access
to meals. By upgrading services the branch
transformed organizational care into visible
and meaningful actions. Guided by employee
feedback as the primary benchmark it also
converted the outcomes of education and Case Study Reading Sharing Session
learning into a strong driving force for employee
service. In March 2025 the Company held a themed reading and sharing session Fragrant Books Nourish Youth Reading Shines
Brightly which attracted more than 100 female employees from 16 affiliated entities.Case Study Health Supply Station
In September 2025 Northern Magnetic Materials
further enhanced the health supply stations in
its workshops enabling employees to relieve
fatigue with immediate and accessible support. In
addition the medical kits at these stations were
fully stocked with essential summer heatstroke
prevention medicines such as Huoxiang Zhengqi
water and cooling oil as well as common cold
and fever medications antiseptics bandages
and adhesive bandages for treating bruises
and sprains thereby effectively safeguarding
employee health.
133 134China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
Case Study Flower Arrangement Case Study Staff Choir Competition
In March 2025 Northern Rare Earth In June 2025 the Company held a staff
hosted a f lower arrangement event choir competition to commemorate
themed Rare Earth Remain Loyal to the the 104th anniversary of the founding
Party and Forge Ahead on a New Journey. of the Communist Party of China and
During the event employees gathered the 100th anniversary of the All-China
to hear a proposal delivered by their Federation of Trade Unions under the
representatives. The initiative encouraged theme Singing in Praise of the Party. The
a l l emp loyees to pursue progress event reinforced a spirit of resilience
proactively embrace innovation in their strengthened extreme thinking and
work demonstrate the professionalism task-completion mindset and energized
and contribute their wisdom and strength efforts to achieve annual production and
to the high-quality development of the operational goals.enterprise.Employee Activities Case Study Fun Sports Meet
In September 2025 the Company organized a fun sports meet themed Gathering Hearts Forging Spirit Showing
The Company actively organizes a diverse range of cultural and sports activities integrating humanistic care into its corporate Responsibility; Joining Forces Fighting for the Future with more than 180 employees from 18 entities. The event not only
development framework. These initiatives continually strengthen team cohesion and employees’ sense of belonging thereby encouraged physical activity and personal expression but also strengthened solidarity among employees of all ethnic
jointly advancing the enterprise toward higher-quality and more dynamic development. groups. It further promoted a strong sense of community for the Chinese nation fostering unity cooperation and shared
commitment to common prosperity and development.Employee Activity Performance
Number of sports and cultural Number of employee activities
activities for employees of other types
9076
Including:
Number of labor Number of vocational Number of self-initiated
competitions skill competition improvements
411916
135 136China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
Case Study Children’s Day · Enter the Rare Earth Museum
Occupational Health and Safety
In June 2025 the Company organized
a visit titled Colorful Summer Cool
Learning on Children’s Day · Enter
the Rare Earth Museum. Nearly 50 The Company places employees’ occupational health and safety at the
employees’ children accompanied by forefront of its management priorities. In accordance with the Law of the
their parents toured the Baotou Rare People’s Republic of China on the Prevention and Treatment of Occupational In 2025 the Company allocated
Earth Museum. Through the facilitators ’ Diseases the Administrative Provisions on Occupational Health Supervision
detailed and patient explanations the in Workplaces and other relevant regulations and taking into account its
mysteries of rare earths were gradually operational realities the Company has established supporting policies 2.5699million Yuan
revea led . The ch i ldren not on ly including the Detailed Implementation Rules for Safety Management in dedicated funds for occupational
deepened their understanding of the (Occupational Health). It actively conducts monitoring of occupational health.rare earth industry but also gained a hazard factors arranges regular occupational health examinations
clearer appreciation of the significance for employees and provides training on occupational health laws and
of their parents’ profession inspiring a regulations the fundamental nature of occupational hazards safe operating
strong sense of pride. procedures and the proper use and maintenance of occupational disease
prevention facilities and personal protective equipment. These measures are
designed to comprehensively safeguard employees’ occupational health.Case Study Themed Walking Race Occupational Health System
I n A u g u s t 202 5 t h e Co m p a n y It also continues to refine and optimize its occupational health and safety management systems and has established a
organized a walking race at Saihantala dedicated Occupational Disease Prevention Committee. Through internal audits routine supervision and inspections and
Urban Grassland with the theme of Two continuous improvement mechanisms the Company has consistently strengthened its overall safety management and ensured
Rare Earth Bases · Becoming a World- the effective operation of its occupational health and safety management system. In 2025 the Company and its 22 entities
class Leading Enterprise. The activity obtained certification for the occupational health and safety management system.helped employees relax both physically
and mentally fully demonstrating the
staff’s vibrant and positive spirit while
fostering an atmosphere of positivity
health and harmony.Certificate of Occupational Health and Safety Management System
137 138China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
Mental and Health Wellbeing Case Study Special Training on Improving the Work-related Injury Prevention
In May 2025 the Company conducted two specialized
Various entities within the Company arrange regular health examinations training sessions aimed at enhancing the capability of
for all employees in accordance with the annual plan and have arranged employees to prevent work-related injuries. These sessions
specialized occupational health examinations for employees in positions focused on critical aspects including pertinent laws and
exposed to occupational hazards. In compliance with legal requirements regulations related to workplace safety comprehensive
the Company also conducts periodic systematic testing and evaluation understandings of work-related injury prevention the
of workplace occupational hazards consistently maintaining a 100% identification of occupational hazards and effective
pass rate for all indicator tests. emergency response measures for handling injuries. The
training also included practical instruction on essential skills
In addition the Company provides personal protective equipment that
such as cardiopulmonary resuscitation (CPR) the Heimlich
meets national standards to employees in relevant positions in a timely
maneuver and wound care. By integrating theoretical
manner and in sufficient quantities. It has also equipped key areas such
knowledge with hands-on practice this initiative significantly
as the production frontline with cardiopulmonary resuscitation (CPR)
improved employees’ awareness and competence in injury
training equipment and emergency medicines for cardiovascular and
prevention. Consequently this proactive approach effectively
cerebrovascular conditions thereby effectively enhancing employees’
mitigated the occurrence of workplace accidents at their
on-site self-rescue and mutual-aid capabilities in emergency situations.source thereby fortifying the “safety net” for employees and
establishing a robust foundation for becoming a world-class
leader in the rare earth sector. Special Training on Improving the Work-related Injury Prevention
Standards for Wearing PPEs
The Company actively addresses and reduces employees’ psychological stress through a range of measures including regular
mental health seminars and the establishment of an internal psychological counseling room. It is committed to building a
Occupational Hazard Warning Signs comprehensive employee care system that supports both physical and mental well-being thereby laying a strong foundation
for the Company’s long-term stability and sustainable operational development.Case Study “Stress Relief and Emotional Adjustment” Mental Health Workshop
In October 2025 the Company successfully organized a mental health workshop centered on stress relief and emotional
adjustment employing interactive strategies to promote employee well-being. The workshop featured visual discussion
sessions with image-based activities personalized psychological assessments to evaluate stress levels and practical
sharing of coping strategies for emotional adjustment. As a result participants demonstrated improved skills in stress
identification enhanced self-regulation capabilities and a significantly strengthened workplace culture.
2025 Occupational Health Performance
Occupational health Incidence rate of occupational
examination coverage health problems
100%0%
Occupational Health Bulletin Board
139 140China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
141 142China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
Rural Revitalization Community Engagement and Philanthropy
The Company is fully committed to advancing the rural revitalization strategy focusing on infrastructure improvement The Company actively advances social welfare initiatives through charitable programs and volunteer services. Charitable
industrial support and the modernization of agriculture. By tailoring initiatives to local conditions we promote rural economic donations help people in need and on-going volunteer services help strengthen community resilience. These measures
revitalization and livelihood improvement actively supporting sustainable rural development through a range of diversified promote social welfare support community development and demonstrate the Company’s SOE leadership in social
efforts. In 2025 the Company invested a total of 4808600 yuan in rural revitalization initiatives. responsibility.Rural Revitalization Performance
Public Welfare Performance
Investment in rural revitalization Number of people assisted
Number of social Attendances at social Hours of social
4.8086million yuan 8150 contribution events contribution events contribution events
5396305
Number of staff Staff volunteering Attendances at staff Public welfare
The Company is deeply committed to rural revitalization and enhancing farmer's income through an array of strategic initiatives. volunteering events hours volunteering events expenditure
Key components include multi-faceted poverty alleviation efforts encompassing industrial support projects and employment
assistance programs and measures for sustainable economic stabilization. Additionally the talent support program facilitates
the annual deployment of elite cadres to villages focusing on industrial revitalization environmental enhancements and Party 173 253.5 1134 326700yuan
building initiatives that foster agricultural development.In 2025 the Company actively responded to the call to develop the agricultural and livestock product processing industry and
advance rural revitalization. By purchasing agricultural and livestock products such as beef and mutton it helped increase the
income of farmers and herders and contributed new momentum to rural revitalization. Case Study Blood Donation Campaign
Rural Revitalization Support Measures by Gansu Rare Earth
In August 2025 Gansu Rare Earth launched the
Blood Donation from the Heart Benevolence and
Virtue in Action campaign demonstrating the strong
Eleven cadres have established a paired care and support mechanism for 16 orphans and severely disabled sense of social responsibility and commitment
individuals from 11 destitute families. Through face-to-face ideological exchanges close emotional communication of its employees. The initiative also highlighted
and direct problem-solving they have gained a clear understanding of the families’ conditions and living difficulties the company’s role as a state-owned enterprise
while also providing material and financial assistance within their capacity. devoted to public welfare and the active fulfillment
The company supported infrastructure development in three designated villages in Huining County allocating a of social responsibilities thereby reinforcing its
total of 120000 yuan for infrastructure maintenance in Zhangwa Zhangli and Tumenxian villages. compassionate corporate image.Regular door-to-door visits were conducted to strengthen community ties. In Zhangwa Zhangli and Tumengxian
villages five-guarantee households persons with disabilities and other families experiencing extreme poverty were
regularly visited by the Party Committee of Gansu Rare Earth. During these visits care packages containing rice
flour and cooking oil were presented.The company supported key poverty-alleviated households in Zhangwa and Zhangli Villages Huining County in
developing ecological breeding and planting industries. It purchased 7500 kilograms of mutton and potatoes at Case Study Regular Community Public Welfare Activities in Partner Communities
prices slightly above market rates thereby increasing household income and helping consolidate the achievements
of poverty alleviation.In 2025 the Company consistently conducted public welfare activities in its partnered communities. Each month more
In 2025 Gansu Rare Earth invested 1.7 million yuan in consumption assistance prioritizing the procurement than 100 young employee volunteers provided services including cleaning sanitation and civic etiquette promotion in
of Ganwei series agricultural products. Through offline labor union welfare channels the company increased Tuan 15 Neighborhood Kundulun District Baotou City. These efforts contributed to the development of a civilized city and
purchases of support products expanded consumption-based poverty alleviation initiatives and promoted effective demonstrated the Company’s commitment to social responsibility as a state-owned enterprise.alignment between rural revitalization and employee needs delivering mutual benefits for farmers and employees.
143 144China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
The Company strives to establish a robust and effectively
implemented management system cultivate a dynamic Future Outlook
and committed volunteer service team and develop
a distinctive brand identity that embodies service-
oriented values. It has launched the volunteer service
brand Turn to Xiaoxi When in Need. The Company also
independently designed a volunteer service logo original
brand ambassadors and a slogan thereby creating a Serving the development of the Two Rare Earth Bases and accelerating the establishment of a world-class leader in
unique cultural symbol centered on the Mongolian horse the rare earth sector the Company remains committed to advancing high-quality development with confidence and
Xiaoxi. This brand has effectively promoted the concept strategic focus. Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era the Company
of Turn to Xiaoxi When in Need throughout society. Over will fully accurately and comprehensively implement the new development philosophy deeply integrate ESG principles
the past five years the Company has organized 1515 into strategic decision-making and daily operations and advance steadily along a path of high-quality growth.volunteer activities involving 16400 attendees and
contributing more than 10680 hours of service. Green and low-carbon transformation will continue to serve as the central thread of the Company’s future
Volunteer Brand Turn to Xiaoxi When in Need development. By leveraging the green smelting upgrading and transformation project the Company will further
optimize production processes and enhance resource recycling efficiency. In addition by relying on the waste
recycling production lines of Jinmeng and Xinfeng Xinli the Company will accelerate the construction of a 10000-ton
comprehensive resource utilization system thereby contributing a “rare earth solution” to the achievement of the Dual
Case Study Volunteer Activity Carbon goals.Technology and talent will remain the twin drivers of high-quality development. The Company will fully leverage
In March 2025 the Company organized young platforms such as the Industrial Transformation Center and the Technology Innovation Center for Rare Earth Newvolunteers to conduct an activity themed “Youth Materials to accelerate the transformation and application of existing R&D achievements. At the same time it willBuilding Dreams Contributing at the Frontline” rigorously implement the talent-strengthening enterprise strategy and through the three-tier training system develop
in support of key projects. More than 70 young a high-caliber talent pool to provide strong support for the cultivation of new quality productive forces.volunteers from 12 entities participated. Wearing
Xiaoxi vests and carrying cleaning tools they The Company will also steadfastly pursue compliant operations and modern governance. It will continue to improve
worked in teams to clean designated areas at the its ESG management framework strengthen compliance and risk control mechanisms and safeguard the rights and
Northern Rare Earth Green Smelting Upgrading interests of shareholders through transparent information disclosure and proactive investor engagement. Furthermore
Project site. Through their careful efforts the the Company will play an active role in rural revitalization and public volunteer services. While generating economic
public areas were left clean orderly and visibly value it will share its development achievements with society striving to contribute to a new chapter characterized by
refreshed. Their actions embodied the spirit of harmony between humanity and nature and synchronized progress between the enterprise and the times.Lei Feng and effectively promoted the values of
civic responsibility and conduct.Case Study Volunteer Campaign
In April 2025 the Company launched the
campaign titled Writing Warmth through Action
Interpreting Responsibility through Volunteerism
putting the Lei Feng spirit into practice through
concrete service conveying care and further
strengthening the Learn from Lei Feng volunteer
service brand. By establishing long-term support
mechanisms expanding public service domains
and innovating activity formats the Company
institutionalized volunteer service enabling the
Lei Feng spirit to flourish in the new era.
145 146China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
ESG Performance
Metric 2025 Value Metric 2025 Value
Economic Performance Employee-level anti-corruption training hours 9
Total assets (billion yuan) 48.128 Total attendance at anti-corruption training 32323
Net assets attributable to owners of the parent company (billion yuan) 24.661 which: Management-level attendances at anti-corruption training 3552
Operating revenue (billion yuan) 42.563 Employee-level attendances at anti-corruption training 28771
Total profit (billion yuan) 3.384 Anti-corruption training coverage rate （%） 97
Net profit attributable to owners of the parent company (billion yuan) 2.251 Percentage of directors receiving anti-corruption training （%） 91
Total tax payments (billion yuan) 1.743 Percentage of management personnel receiving anti-corruption training （%） 100
Governance Performance Percentage of employees receiving anti-corruption training（%） 80
Number of general meetings 3 Total hours of compliance risk training 35
Number of proposals passed at general meetings 22 Total attendances at compliance risk training 1000
Board meetings 10 Total number of compliance risk training sessions 14
Proposals approved by the Board 55 Total tax payments (billion yuan) 1.743
Meetings of specialized committees 13 Number of audit projects 15
Special meetings of independent directors 2 Audit project correction rate (%) 95
Number of anti-corruption training sessions 48 Number of announcements disclosed 69
Management-level anti-corruption training sessions 42 Number of regular reports released 4
Employee-level anti-corruption training sessions 6 Number of earnings briefings held 4
Total hours of anti-corruption training 77 Number of investor engagement activities conducted 50
which: Management-level anti-corruption training hours 68 Number of questions answered via e-interactive platform (https://sns.sseinfo.com/) 210
147 148China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
Metric 2025 Value Metric 2025 Value
e-Interactive response rate （%） 100 Number of environmental training sessions 69
Number of information security training sessions 3 Environmental protection training hours 167
Total hours of information security training 60 Attendances at environmental protection training 3612
Total attendances at information security training 125 Direct GHG emissions (Scope 1) (tCO2e) 489376.71
Number of data governance items (10000) 2460 Indirect GHG emissions (Scope 2) (tCO2e) 830629.26
Number of cybersecurity risk assessments and security hardening activities 4 Other indirect GHG emissions (Scope 3) (tCO2e) 326877.34
Number of vulnerability scans on business system hosts 12 Total GHG emissions (tCO2e) 1646883.31
Number of cybersecurity emergency drills 2 Total GHG emissions intensity (tCO2e/per 10000 yuan operating revenue ) 0.31
Number of emergency response incident handlings 5 Comprehensive energy consumption per unit of output (kgce/tREO) 880
Number of security device signature database updates 12 Purchased electricity (MWh) 990510
Number of national cybersecurity threat intelligence handlings (batch) 53 Purchased steam (ton) 188004
Number of internet asset attack surface scans and penetration tests 5 Natural gas (Nm3) 78557292
Number of cybersecurity alerts handled About 2400 Petroleum (ton) 41
About 22000 (Number of daily
Number of network attack blocks Diesel (ton) 839
blocks)
Number of vulnerability remediation programs 5 Coke oven gas (Nm3) 37819325
Number of cybersecurity policy optimizations 30 Power coal (ton) 79827
Environmental Performance New energy/ renewable energy consumption (MWh) 187176
Dedicated environmental protection expenditure (million yuan) 707 Percentage of new energy/ renewable energy consumption (%) 7.29
Number of the Company and its affiliates with an environmental management
24 Total fresh water consumption (ton) 5388526
system certification
Water consumption intensity (ton/10000 yuan) 1.27
Percentage of the Company and its affiliates with an environmental management
85.71
system certification (%) Total recycled water (ton) 59927726
149 150China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
Metric 2025 Value Metric 2025 Value
Water recycling rate (%) 91.75 Office paper consumption (ton) 2.39
Ammonia recovered from industrial wastewater (m3) 130051 Office paper savings (ton) 0.99
Cooling water recovered from industrial wastewater (m3) 3386374 Toner cartridge consumption (ton) 0.31
Ammonium sulfate recovered from industrial wastewater (ton) 36056 Ink cartridge consumption (ton) 0.17
Ammonium chloride recovered from industrial wastewater (ton) 184678 Domestic waste generation (ton) 2526.74
Sulfuric acid recovered from industrial waste gas (m3) 65816 Kitchen waste generation (ton) 1054.18
Hydrofluoric acid recovered from industrial waste gas (m3) 78137 Gasoline consumption (L) 54290
Recovered acid in chlor-alkali process of Gansu Rare Earth (m3) 285 NEV charging piles 103
SO ? emissions (ton) 312.18 Social Performance
SO ? emissions per 100 million yuan revenue (ton) 0.73 R&D expenditure（billion yuan） 2.408
NOx emissions (ton) 280.49 Number of research-related training and exchange activities 22
NOx emissions per 100 million yuan revenue (ton) 0.66 Attendances at research-related training and exchange activities 300
Flue gas and dust emissions 33.22 Number of intellectual property protection training sessions 2
Flue gas and dust emissions per 100 million yuan revenue (ton) 0.08 Attendances at intellectual property protection training 120
Industrial wastewater discharge (m3 ) 1386785 Intellectual property protection training hours 6
COD emissions per 100 million yuan revenue (ton) 0.142 Number of R&D personnel 1320
NH ? -N emissions 6.79 Percentage of R&D personnel to total employees 12.06
NH ? -N emissions per 100 million yuan revenue (ton) 0.016 Number of technological innovation projects launched in 2025 58
General industrial solid waste (ton) 809807 Total number of granted patents as of the end of 2025 1088
Hazardous waste (ton) 31.89 Inventions 616
Total general industrial solid waste generated per 100 million yuan revenue (ton) 19.03 Utility models 458
Total hazardous waste generated per 100 million yuan revenue (ton) 0.07 Industrial designs 14
151 152China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
Metric 2025 Value Metric 2025 Value
Total newly granted patents in 2025 130 Number of critical risk incidents involving suppliers 0
Inventions 85 Suppliers involved in critical supply chain risk incidents 0
Utility models 45 Persons involved in critical supply chain risk incidents 0
Total new patent applications filed in 2025 158 Total employees 10948
Invention applications 126 Male 8529
Employees by
gender
Utility model applications 32 Female 2419
Total number of standards developed in 2025 82 Senior Management 179
Employees by
International standards 2 Middle management 649
level
National standards 29 General employees 10120
Industry standards 7 Chinese mainland 10948
Employees by
Group standards 22 region Overseas and Hong Kong Macao and Taiwan Province of
0
China
Company standards 22
Three-year college or below 7689
Total number of standards developed as of the end of 2025 564 Employees
by education Bachelor’s degree 2528
Dedicated safety expenditure (million yuan) 36.2131 background
Master’s degree or above 731
Number of safety and occupational health training sessions 249
Employees with disabilities 219
Employees with
Safety and occupational health training hours 2067 special needs
Resettled veterans 347
Attendances at safety and occupational health training 21184
2025 new employees 1486
Number of emergency drills 555
Employee turnover rate （%） 0.79
Attendances at emergency drills 8342
Employment contract rate（%） 100
Number of work certificates obtained by professional personnel 1200
Social insurance rate（%） 100
Number of special operation qualification certificates obtained by professional
1296
personnel Total trade union members 10948
Work safety liability insurance expenditure (million yuan) 1.1356 Full-time trade union staff 21
Number of employees covered by safety liability insurance 8384 Trade union count 41
153 154China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
Metric 2025 Value Metric 2025 Value
Trade union satisfaction (%) 99.22 Number of social contribution events 53
Rate of requests resolved by trade union (%) 100 Attendances at social contribution events 96
Total training expense (million yuan) 1.7786 Hours of social contribution events 305
Total training sessions 526 Number of staff volunteering events 173
Total training attendances 23800 Staff volunteering hours 253.5
2025 Average training hours per employee 119.00 Attendances at staff volunteering events 1134
Average training hours per senior manager 185.00 Public welfare expenditure （Yuan） 326700
Average training hours per middle manager 92.00
Average training hours per non-managerial employee 80.00
Percentage of employees covered by training programs (%) 96.00
Employee care expenditure (million yuan) 2.362
Number of employees assisted 166
Number of employees assisted per 100 million yuan revenue 0.39
Number of sports and cultural activities for employees 90
Number of employee activities of other types 76
Including: Number of laboring competitions 41
Number of vocational skill competition 19
Number of self-initiated improvements 16
Occupational health examination coverage 100
Incidence rate of occupational health problems 0
Rural revitalization expenditure (million yuan) 4.8086
Number of people assisted 8150
155 156China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
Appendix II. Content Index GRI Sustainability Reporting Standards issued by Global
Sustainability Standards Board (GSSB)
Guidelines No. 14 of Shanghai Stock Exchange for Self-
GRI Standard Disclosure Section in this Report
Regulation of Listed Companies—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 Response
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
4 Ecosystem and biodiversity protection Biodiversity protection 2-4 Restatements of information /
Environment
5 Environmental compliance management Environmental Compliance Management 2-5 Organization details /
6 Energy usage Resource Recycling Utilization 2-6 Activities value chain and other business relationships About Northern Rare Earth
7 Usage of water resources Resource Recycling Utilization People-Centered Cohesion for a
2-7 Employees
Harmonious Home
8 Circular economy Resource Recycling Utilization
2-8 Workers who are not employees /
9 Rural revitalization Rural Revitalization
Enhancing Governance
10 Contributions to the society Community Engagement and Philanthropy 2-9 Governance structure and composition Performance
11 Innovation-driven Technology-Driven Quality and Efficiency Enhancing Governance 2-10 Nomination and selection of the highest governance body
Performance
The Company's core business does not Enhancing Governance
cover scientific research or technology 2-11 Chair of the highest governance body Performance
development in sensitive areas such as life
12 Ethics of science and technology Role of the highest governance body in overseeing the Enhancing Governance
sciences or AI ethics so ethics of science 2-12
management of impacts Performance
and technology has not been included as a
material issue. Enhancing Governance 2-13 Delegation of responsibility for managing impacts
Performance
Society Supply Chain Collaboration and Ecosystem 13 Supply chain security
Building 2-14 Role of the highest governance body in sustainability reporting ESG Management
Equal treatment to small and medium- Supply Chain Collaboration and Ecosystem
14
sized enterprises Building 2-15 Conflicts of interest /
Safety and quality of products and
15 Quality Benchmarking 2-16 Communication of critical concerns Investment Accountability
services
Data security and customer privacy
16 Advancing Digital-Intelligent Transformation 2-17 Collective knowledge of the highest governance body ESG Management
protection
Employee Rights and Protection 2-18 Evaluation of the performance of the highest governance body /
Employee Development
17 Employees
Employee Well-being 2-19 Remuneration policies /
Occupational Health and Safety
2-20 Process to determine remuneration /
18 Due diligence ESG Management
Sustainability 19 Communications with stakeholders ESG Management
2-21 Annual total compensation ratio /
related Anti-commercial bribery and anti-
governance 20 Ensuring Ethical Compliance
2-22 Statement on sustainable development strategy ESG Management
corruption
21 Anti- unfair competition Ensuring Ethical Compliance 2-23 Policy commitments ESG Management
157 158China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
GRI Standard Disclosure Section in this Report GRI Standard Disclosure Section in this Report
2-24 Embedding policy commitments / 207-4 Country-by-country reporting /
2-25 Processes to remediate negative impacts / 301-1 Materials used by weight or volume /
2-26 Mechanisms for seeking advice and raising concerns / 301-2 Recycled input materials used Resource Recycling Utilization
2-27 Compliance with laws and regulations Ensuring Ethical Compliance 301-3 Renewable products and their packaging materials Resource Recycling Utilization
2-28 Membership associations / 302-1 Energy consumption within the organization Resource Recycling Utilization
2-29 Approach to stakeholder engagement ESG Management 302-2 Energy consumption outside the organization /
2-30 Collective bargaining agreements / 302-3 Energy intensity Resource Recycling Utilization
3-1 Process to determine material topics ESG Management 302-4 Reduction of energy consumption /
3-2 List of material topics ESG Management 302-5 Reductions in energy requirements of products and services Resource Recycling Utilization
3-3 Management of material topics ESG Management 303-1 Interactions with water as a shared resource Resource Recycling Utilization
201-1 Direct economic value generated and distributed ESG Data List 303-2 Management of water discharge-related impacts Resource Recycling Utilization
Financial implications and other risks and opportunities due to climate
201-2 Climate Change Response 303-3 Water withdrawal Resource Recycling Utilization
change
Employee Rights and
201-3 Defined benefit plan obligations and other retirement plans 303-4 Water discharge Resource Recycling Utilization
Protection
303-5 Water consumption Resource Recycling Utilization
201-4 Financial assistance received from government /
Ratios of standard entry level wage by gender compared to local Sites owned leased managed in or adjacent to protected areas
202-1 / 304-1 Advocating a Green Lifestyle
minimum wage and areas of high biodiversity value outside protected areas
202-2 Proportion of senior management hired from the local community / Significant impacts of activities products and services on 304-2 /
biodiversity
203-1 Infrastructure investments and services supported / 304-3 Habitats protected or restored Advocating a Green Lifestyle
203-2 Significant indirect economic impacts Rural Revitalization IUCN Red List species and national conservation list species with
304-4/
habitats in areas affected by operation
204-1 Proportion of spending on local suppliers /
305-1 Direct /Scope 1 GHG emissions Climate Change Response
205-1 Operations assessed for risks related to corruption /
Communication and training about anti-corruption policies and 305-2 Energy indirect /Scope 2 GHG emissions Climate Change Response
205-2 Ensuring Ethical Compliance
procedures
305-3 Other indirect /Scope 3 GHG emissions Climate Change Response
205-3 Confirmed incidents of corruption and actions taken /
305-4 Intensity of GHG emissions Climate Change Response
Anti-competitive behaviour
305-5 Reduction of GHG emissions /
Legal actions for anti-competitive behaviour anti-trust and monopoly
206-1/
practices 305-6 Emissions of ozone-depleting substances /ODS /
207-1 Approach to tax Ensuring Ethical Compliance Nitrogen oxides /NOX Sulfur oxides /SOX and other significant air 305-7 Pollution Prevention and Control
emissions
207-2 Tax governance control and risk management Ensuring Ethical Compliance
306-1 Waste generation and significant waste-related impacts /
207-3 Stakeholder engagement and management of concerns related to tax /
159 160China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
GRI Standard Disclosure Section in this Report GRI Standard Disclosure Section in this Report
306-2 Management of significant waste-related impacts Pollution Prevention and Control 411-1 Incidents of violations involving rights of indigenous peoples /
306-3 Waste generated Pollution Prevention and Control Operations with local community engagement impact 413-1 Spotlight
assessments and development programs
306-4 Waste diverted from disposal Pollution Prevention and Control Operations with significant actual and potential negative impacts 413-2 /
on local communities
306-5 Waste directed to disposal Pollution Prevention and Control Supply Chain Collaboration and
414-1 New suppliers that were screened using social criteria
Supply Chain Collaboration and Ecosystem Building
308-1 New suppliers that were screened using environmental criteria
Ecosystem Building 414-2 Negative social impacts in the supply chain and actions taken /
Negative impacts of the supply chain on the environment and
308-2/
actions taken 415-1 Political contributions /
401-1 New employee hires and employee turnover Employee Rights and Protection Assessment of the health and safety impacts of product and
416-1 Quality Benchmarking
Benefits provided to full-time employees that are not provided to service categories
401-2 Employee Rights and Protection
temporary or part-time employees Incidents of non-compliance concerning the health and safety 416-2 /
impacts of products and services
401-3 Parental leave Employee Rights and Protection
417-1 Requirements for product and service information and labelling /
402-1 The shortest notice periods regarding operational changes / Incidents of non-compliance concerning product and service
417-2/
information and labelling
403-1 Occupational health and safety management system Occupational Health and Safety
Incidents of non-compliance concerning marketing
Product Safety and Sustainable 417-3 /
403-2 Hazard identification risk assessment and incident investigation communications
Operations Substantiated complaints concerning breaches of customer privacy
418-1/
403-3 Occupational health services Occupational Health and Safety and losses of customer data
Worker participation consultation and communication on
403-4 Occupational Health and Safety
occupational health and safety
403-5 Worker training on occupational health and safety Occupational Health and Safety
403-6 Promotion of worker health Occupational Health and Safety
Prevention and mitigation of occupational health and safety
403-7/
impacts directly linked by business relationships
404-1 Average hours of training per year per employee Employee Development
Programs for upgrading employee skills and transition assistance
404-2 Employee Development
programs
Percentage of employees receiving regular performance and
404-3/
career development reviews
Enhancing Governance Performance
405-1 Diversity of governance bodies and employees
Employee Rights and Protection
405-2 Ratio of basic salary and remuneration of women to men /
406-1 Incidents of discrimination and corrective actions taken /
Operations and suppliers in which the right to freedom of
407-1/
association and collective bargaining may be at risk
408-1 Operations and suppliers at significant risk for incidents of child labour /
Operations and suppliers at significant risk for incidents of forced
409-1/
or compulsory labour
410-1 Security personnel trained in human rights policies or procedures /
161 162China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
Reference of ESG Indicators System for ESG Reports Tier 1 Indicator Tier 2 Indicator Tier 3 Indicator Section in this Report
of Listed Companies Controlled by Central Enterprises E.2.3.1 Solid waste disposal compliance Pollution Prevention and Control
with laws and regulations
issued by the State-owned Assets Supervision and E.2.3.2 Management of general industrial Pollution Prevention and Control
solid waste
Administration Commission of the State Council E.2 Pollution prevention and E.2.3 Solid waste E.2.3.3 General industrial solid waste Pollution Prevention and Control
treatment disposal
Tier 1 Indicator Tier 2 Indicator Tier 3 Indicator Section in this Report E.2.3.4 Management of hazardous waste Pollution Prevention and Control
Environmental E.2.3.5 Hazardous waste disposal Pollution Prevention and Control
E.1.1.1 Fresh water consumption Resource Recycling Utilization E.3.1.1 GHG sources and types Climate Change Response
E.1.1.2 Recycled water consumption Resource Recycling Utilization E.3.1.2 Management of GHG emissions Climate Change Response
E.1.1 Water
resources
E.1.1.3 Proportion of recycled water consumption Resource Recycling Utilization E.3.1.3 Scope 1 emissions Climate Change Response
E.3.1 GHG emissions
E.1.1.4 Intensity of water consumption Resource Recycling Utilization E.3.1.4 Scope 2 emissions Climate Change Response
E.1.2.1 Non-renewable materials consumption / E.3.1.5 Scope 3 emissions Climate Change Response
E.1.2 Materials E.1.2.2 Toxic and hazardous materials consumption / E.3.1.6 Intensity of GHG emissions Climate Change Response
E.3 Climate E.3.2.1 Reduction management of GHG
E.1.2.3 Intensity of materials consumption / Climate Change Response
E.1 Resources Change E.3.2 Reduction emissions
consumption managementE.1.3.1 Fossil energy consumption Resource Recycling Utilization E.3.2.2 Reduction of GHG emissions /
E.3.3.1 Participation in the Carbon
E.1.3.2 Non-fossil energy consumption Resource Recycling Utilization /
Emissions Trading Exchange
E.1.3 Energy E.1.3.3 Proportion of non-fossil energy usage Resource Recycling Utilization E.3.3.2 Participation in usage rights E.3.3 Environmental rights
water rights and pollution discharge rights /
trading
E.1.3.4 Total energy consumption Resource Recycling Utilization trading exchange
E.3.3.3 Participation in green power
E.1.3.5 Intensification of energy consumption Resource Recycling Utilization Resource Recycling Utilizationtrading
E.3.4 Climate risks
E.1.4.1 Packaging materials usage / E.3.4.1 Climate risks management Climate Change Response
E.1.4 Packaging management
materials E.1.4.2 Lightweighting and minimization of packaging
/ E.4.1 Impacts of activities
materials E.4.1.1 Impacts of activities products and E.4 Biodiversity products and services on Advocating a Green Lifestyle
services on biodiversity
E.2.1.1 Wastewater discharge compliance Pollution Prevention and Control biodiversity
E.5.1 Formulation of low- E.5.1.1 Formulation of low-carbon
E.2.1.2 Wastewater management and emissions
Pollution Prevention and Control carbon development goals development goals and strategic Climate Change Response
reduction measures and strategic measures measures
E.2.1
E.2.1.3 Wastewater discharge Pollution Prevention and Control
Wastewater E.5.2.1 Management of water usage Resource Recycling Utilization
E.2 Pollution E.2.1.4 Wastewater and pollutants discharge Pollution Prevention and Control E.5 Measures E.5.2 Measures for E.5.2.2 Management of materials usage Resource Recycling Utilization
prevention and for resource and resource management
E.2.1.5 Discharge concentration of wastewater and
treatment Pollution Prevention and Control environmental E.5.2.3 Energy usage and energy
pollutants Resource Recycling Utilization
management conservation management
E.2.2.1 Waste gas emissions compliance Pollution Prevention and Control E.5.3Energy conservation
E.2.2 Waste and carbon reduction E.5.3.1Energy conservation and carbon E.2.2.2 Waster gas and pollutants discharge Pollution Prevention and Control
gas statistical monitoring and reduction monitoring statistical reporting Resource Recycling Utilization
E.2.2.3 Discharge concentration of waste gas and systems for assessment and assessment system
Pollution Prevention and Control
pollutants rewards and punishments
163 164China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability 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.5.4.1 Clean production Pollution Prevention and Control S1.5.1 Employee satisfaction survey /
S1 Employee
E.5.4.2 Green technological transformation S1.5 Employee
Pollution Prevention and Control rights and S1.5.2 Labor disputes /
and recycling use satisfactioninterests
E.5.4Green
E.5.4.3 Green Building Renovation / S1.5.3 Employee turnover Employee Rights and Protection
environmental
protection actions and S2.1.1 Policies and measures for manufacturing E.5.4.4 Green offices and operations Advocating a Green Lifestyle Quality Benchmarking
measures practices
E.5.4.5 Green procurement and green Supply Chain Collaboration and S2.1 Products S2.1.2 Quality management Quality Benchmarking
E.5 Measures supply chain management Ecosystem Building safety and
for resource and E.5.4.6 Environmental protection public Advocating a Green Lifestyle quality S2.1.3 Product recall and withdrawal Quality Benchmarking
environmental interest activities
management E.5.5.1 Environmental Management System Environmental Compliance S2.1.4 Negative events on products or services /
Certification Management
E.5.5 Green and low- E.5.5.2 Green and low-carbon enterprise S2.2.1 Customer satisfaction Integrity and Consumer Protection
/
carbon certification certification S2 Products S2.2 Customer
and services services and S2.2.2 Customer complaints and handling Integrity and Consumer ProtectionE.5.5.3 Green and low-carbon products
/ management
and services certification benefits S2.2.3 Customer information and privacy
Integrity and Consumer Protection
E.5.6.1 Emergency response plans for Environmental Compliance protection
E.5.6 Environmental
environmental emergencies Management
compliance with laws S2.3.1 R&D and innovation management system Technology-Driven Quality and Efficiency
E.5.6.2 Violations of laws and regulations in
and regulations /
environmental sector S2.3.2 R&D investment Technology-Driven Quality and Efficiency
S2.3 Innovation
Social development
S2.3.3 Innovation achievements Technology-Driven Quality and Efficiency
S1.1.1 Enterprise recruitment policies and
Employee Rights and Protection
executions S2.3.4 IPR protection Technology-Driven Quality and Efficiency
S1.1 Recruitment and
S1.1.2 Employee structure Employee Rights and Protection Supply Chain Collaboration and
employment S3.1.1 Supplier choice and managementS3.1 Supplier Ecosystem Building
S1.1.3 Avoid employing child labor or
Employee Rights and Protection management
compulsory labor S3.1.2 Supplier amount and distribution /
S3 Supply
S1.2.1 Remuneration concepts and policies Employee Rights and Protection chain S3.2.1 Supply chain management policies and Supply Chain Collaboration and
safety and measures Ecosystem BuildingS3.2 Supply
S1.2.2 Working time rest and vocation Employee Rights and Protection management
S1.2 Remuneration chain S3.2.2 Supply chain safety guarantee and /
and benefits S1.2.3 Remuneration and benefits management emergency response plans
Employee Rights and Protection
guarantees S3.2.3 Major risks and impacts (supply chain) /
S1 Employee S1.2.4 Employee democratic management Employee Rights and Protection S4.1 Tax
S4.1.1 Tax payment Ensuring Ethical Compliance
rights and S1.3.1 Employee occupational health and payment
interests Occupational Health Protectionsafety management S4.2.1 Policies and measures for participation in S4.2 Rural Revitalization
S1.3.2 Prevention and control for employee Product Safety and Sustainable local community constructionCommunity co-
S1.3 Employee health safety Operations S4.2.2 Contribution and impacts for the local construction Rural Revitalization
and safety communityS1.3.3 Safety incidents and occupational Product Safety and Sustainable
injury measures Operations S4.3.1 Policies and measures for participation in Community Engagement and S4 Social public interest activities Philanthropy
S4.3 Public
S1.3.4 Employee caring and assistance Employee Well-being contributions
welfare S4.3.2 Investment and effectiveness of Community Engagement and
S1.4.1 Employee stimulations and promotion activities participation in public interest activities Philanthropy
Employee Development
policies
S1.4 Employee S4.3.3 Barrier-free environment construction /
development and S1.4.2 Employee education and training Employee Development
S4.4 Response S4.4.1 Industrial transformation Topic
training
S1.4.3 Employee career development and to national
Employee Development S4.4.2 Rural revitalization and regional Topic
job changes support strategies
coordinated development Rural Revitalization
165 166China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability 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
S4.4.3 The Belt and Road and overseas duties G3 Investor
S4.4 Response / G3.3.1 Credit information /
S4 Social performance relations
to national G3.3G3 Creditor
contributions S4.4.4 Industrial characteristics and other management
strategies Topic equity
social duties performance and shareholder G3.3.2 Bond market performance /
equity
Governance
G4.1.1 Financial information disclosure Investment Accountability
G4.1 Information
G1.1.1 Governance strategy implementation Enhancing Governance Performance G4 Information disclosure system
disclosure G4.1.2 Non-financial information disclosure Investment AccountabilityG1.1.2 Process to supervise governance
G1.1 Governance Enhancing Governance Performancestrategy transparency G4.2 Information G4.2.1 Regularly supervise audit and assess all
strategy and Investment Accountability
G1.1.3 Process to approve and review disclosure quality information disclosure
process Enhancing Governance Performance
governance strategy Ensuring Ethical
G5.1.1 Compliance management system
Compliance
G1.1.4 Party leadership /
G5.1 Compliance Ensuring Ethical
G5.1.2 Compliance system construction
G1.2.1 Ownership duties Enhancing Governance Performance management Compliance
G1 Governance G5 Compliance Ensuring Ethical
strategy and G1.2.2 Organizational structure and functions G5.1.3 Compliance review process management Compliance
organizational G1.2 Structure of the Board of Directors the Supervision Enhancing Governance Performance and risk Ensuring Ethical
structure and function Committee and the management management G5.2.1 Risk identification and early-warning Compliance
G1.2.3 Process to appoint the Board of
G5.2 Risk Ensuring Ethical
Directors the Supervisory Committee and the Enhancing Governance Performance G5.2.2 Risk control and tracing
management Compliance
management and its structure
G1.3.1 Remuneration plan of directors and Ensuring Ethical
/ G5.2.3 Risk reporting and management
supervisors Compliance
G1.3
G1.3.2 Remuneration transparency of the Board
Remuneration /
of Directors
management
G1.3.3 Remuneration reasonableness of the
/
management
G2.1.1 Internal audit Ensuring Ethical Compliance
G2.1 Internal
control G2.1.2 Internal control structure mechanism
Ensuring Ethical Compliance
and process
G2.2.1 Integrity construction criterion Ensuring Ethical Compliance
G2 Normative G2.2 Integrity
governance construction G2.2.2 Effectiveness of integrity construction
Ensuring Ethical Compliance
measures
G2.3.1 Fair competition criterion Ensuring Ethical Compliance
G2.3 Fair
competition G2.3.2 Effectiveness of fair competition
Ensuring Ethical Compliance
measures
G3.1.1 Investor relations management strategy Investment Accountability
G3.1 Investor
relations G3.1.2 Investor communication Investment Accountability
G3 Investor management G3.1.3 Construction of investor relations
relations Investment Accountability
management department
management
and shareholder G3.2.1 General meeting Enhancing Governance Performance
equity G3.2
Shareholder G3.2.2 Shareholder communication Enhancing Governance Performance
equity G3.2.3 Shareholders’ right to know and right to
Enhancing Governance Performance
make decisions
167 168China Northern Rare Earth (Group) High-Tech Co. Ltd. 2025 Sustainability Report
Appendix III: Reader Feedback Form
Dear readers:
Thank you for reading this Report. We value your feedback and that of our stakeholders which informs our ongoing efforts to
enhance ESG management and disclosure.
1. Your overall assessment of our ESG performance is:
□ Excellent □ good □ average □ bad □ very bad
2. Your overall assessment of this Report is:
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3. What do you think of our performance in communication with stakeholders
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4. What do you think of our performance in corporate governance
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5. What do you think of our performance in environmental management
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6. What do you think of our performance in social responsibility
□ Excellent □ good □ average □ bad □ very bad
7. What do you think of our performance in ESG
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8. What are your opinions and suggestions regarding our ESG performance and this Report
169170
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