CONTENTS
Description of the Report 01 01 Sustainable Development 03 Promoting Innovation to Strengthening Resilient Governance Drive Social Progress 05 Governance to Lead the Future Preparation of Materials
Sustainable Development 15 Innovation-driven 73
To Stakeholders 05 Management System Product and Service Quality 81 Corporate Governance 115
Communications with 17 Data Security and Customer 84 Compliance and Risk 119
Stakeholders
About the Company 07 Privacy Protection Management
Analysis of Material Topics 19 Sustainable Supply Chain 86 Anti-commercial Bribery and 122
Response to ESG Goals 21 Management Anti-corruption
Promoting Industry Development 93 Anti-unfair Competition 124
02 Advancing Zero-Carbon Plastics Talent Catalysis a Sustained ESG Data Tables and Notes 125 to Sustain Circular Growth 04 Chain Reaction of Goodwill
Environmental Compliance 27 Employee Rights and Benefits 99
Main Participatory 131 Management Employee Training and 103
Domestic Associations and Climate Change Tackling 33 Development
Organisations Energy Usage 47 Occupational Health and Safety 106
Usage of Water Resources 53 Rural Revitalisation and 111
Overview of Certificates 133 Waste Disposal 56 Contributions to the Society
Circular Economy 59
Benchmarking Index Table 135 Pollutant Discharge 63
Chemical Safety 66
Editor's Note 140 Ecosystem and Biodiversity 70
ProtectionKingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
Description of the Report Principles of Preparation
Preparation * Materiality
The Company has identified material topics related to its operation that all stakeholders are concerned about as
the highlights of this Report. While reporting on the material topics in this Report we also took into account the
characteristics of our industry and business operations. For details on the analysis process and results of topic
This Report is the fourth annual sustainability report published by Kingfa Sci. & Tech. Co. Ltd. (the previ- materiality please refer to the section "Analysis of Material Topics" in this Report.ous three reports were published under the title Environmental Social and Governance Report) aiming
* Accuracy
to disclose to investors and other stakeholders our philosophies regarding ESG topics in our operations This Report ensures that the information is as accurate as possible. In particular the measurement of quantitative
the management approaches we established the work we carried out and the results we achieved. information has been stated in terms of data scope calculation basis and assumptions to ensure that the margin
of error in the calculation is not misleading to users of the information. Quantitative information and notes are
detailed in the "ESG Data Tables and Notes" section of this Report.* Balance
The content of this Report reflects objective and true facts providing unbiased disclosure of both positive and
Coverage negative information related to the Company. During the reporting period no negative incidents were identified that should have been disclosed but were not disclosed.* Clarity
This Report covers Kingfa Sci. & Tech. Co. Ltd. and its subsidiaries (hereinafter referred to as "the Group"). This Report is available in Chinese English and Japanese versions for readers' reference. In the event of any
Unless otherwise specified it is consistent with the scope of the consolidated financial statements of ambiguity between the three versions or any inconsistency caused by language the Chinese version shall prevail.Kingfa Sci. & Tech. Co. Ltd. (stock code: 600143) for the same period. It contains tables diagrammatic figures a glossary of technical terms etc. to supplement the written content and
facilitate stakeholders' understanding of the information presented. To help stakeholders access information more
efficiently this Report also provides a table of contents and an ESG standards Benchmarking Index Table.Time Frame * QuantificationThis Report discloses key quantitative performance indicators and where possible historical data.* Comparability
This Report covers the period from 1 January 2025 to 31 December 2025. Unless otherwise specified the The Company maintains consistency in the statistical and disclosure methodology for the same quantitative
data in this Report refer to those in the period covered. indicators across different reporting periods. Where there are changes to the data collection measurement or
calculation methods the relevant data are retrospectively adjusted and the adjustments and the reasons for them
are explained in the notes to the report so as to enable stakeholders to conduct meaningful analysis and assess
trends in the Company's ESG performance.Basis for Preparation * Completeness
The scope of entities covered by this Report is consistent with that of the Company's consolidated financial
statements.This Report was prepared in accordance with the requirements of the Guidelines No. 1 of Shanghai Stock
Exchange for Self-Regulation of Listed Companies—Standardized Operation Guidelines No. 14 of Shanghai * Timeliness
Stock Exchange for Self-Regulation of Listed Companies—Sustainability Report (Trial) (hereinafter referred to as This is an annual report covering the period from 1 January 2025 to 31 December 2025.the "Guidelines") Guide No.4 for Self-Regulatory Supervision on Listed Companies of the SSE—Compilation of * Verifiability
Sustainable Development Reports (Revised in January 2026) and A Practical Guide to Sustainability Reporting The cases and data in this Report are derived from the Company's original operational records or financial reports.of Listed Companies in China. It also refers to the Global Reporting Initiative Standards (2021) issued by the The Company uses the performance management system to manage ESG data. The sources and calculation
Global Sustainability Standards Board (GSSB) (hereinafter referred to as the "GRI Standards"). processes of the disclosed data are traceable and can be used to support external assurance work inspections.Notes on Data
Access to This Report
The data in this Report are derived from the official records of the actual operation of the Company.The financial data in this Report are all in RMB. In case of any discrepancies between the financial data This Report may be accessed and downloaded on the official website of the Company (https://www.and the Company's annual financial report the annual financial report shall prevail. kingfa.com.cn/) and the website of the Shanghai Stock Exchange (http://www.sse.com.cn/).
01 02Kingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
Definition LCP means Liquid crystal polymer
LED means Light-emitting diode
PA means Polyamide
Unless the context otherwise requires the following words shall have the following meanings in ASA means Acrylonitrile-styrene-acrylate copolymer
this Report: MBS means Methyl methacrylate-butadiene-styrene
PPA means Polyphthalamide semi-aromatic polyamide
The Company/we means Kingfa Sci. & Tech. Co. Ltd. PEEK means Polyetheretherketone
Articles of Association means Articles of Association of Kingfa Sci. & Tech. Co. Ltd. PPSU means Polyphenylsulfone resin
Shanghai Kingfa means Shanghai Kingfa Sci. & Tech. Dvpt. Co. Ltd. PES means Polyethersulphone
Jiangsu Kingfa means Jiangsu Kingfa Sci. & Tech. Advanced Materials Co. Ltd. PCR means Post consumer recycled
Tianjin Kingfa means Tianjin Kingfa Advanced Materials Co. Ltd. COC means Cyclic olefin copolymer
Guangdong Kingfa means Guangdong Kingfa Sci. & Tech. Co. Ltd. PBS means Polybutylene succinate
Wuhan Kingfa means Wuhan Kingfa Sci. & Tech. Co. Ltd. PFAS means Per- and polyfluoroalkyl substances
Chengdu Kingfa means Chengdu Kingfa Sci. & Tech. Advanced Materials Co. Ltd. RTO means Regenerative thermal oxidiser
Kingfa (USA) means KINGFA SCIENCE & TECHNOLOGY (USA) INC. PDH means Propane dehydrogenation
KINGFA (Mexico) means KINGFA SCIENCE & TECHNOLOGY MEXICO S.DE R.L.DE C.V. PVC means Polyvinyl chloride
Kingfa (Europe) means KINGFA SCI.&TECH. (EUROPE) GMBH. GWIT means Glow-wire ignition temperature
Kingfa (Spain) means KINGFA ENVIRONMENTAL SCI&TECH SPAIN S.L. PPWR means EU Packaging and Packaging Waste Regulation
KINGFA (Poland) means KINGFA SCIENCE AND TECHNOLOGY POLAND SPZ. O.O CBAM means EU Carbon Border Adjustment Mechanism
Kingfa (India) means KINGFA SCIENCE & TECHNOLOGY (INDIA) LIMITED ELVR means EU End-of-Life Vehicles Regulation
Kingfa (Japan) means KINGFA SCIENCE AND TECHNOLOGY (JAPAN) CORPORATION
FDA means US Food and Drug Administration
LIMITED EFSA means European Food Safety Authority
Kingfa (Malaysia) means KINGFA SCI&TECH (MALAYSIA) SDN. BHD. RCEP means Regional Comprehensive Economic Partnership
Kingfa (Vietnam) means KINGFA SCIENCE & TECHNOLOGY (VIETNAM) CO. LTD. SDS/MSDS means Safety Data Sheet/Material Safety Data Sheet
Kingfa (Indonesia) means PT KINGFA SCI AND TECH INDONESIA RoHS means EU Directive on the Restriction of the Use of Certain Hazardous
Kingfa (Korea) means KINGFA SCIENCE & TECHNOLOGY KOREA CO.LTD. Substances in Electrical and Electronic Equipment
Kingfa Biomaterials means Zhuhai Kingfa Biomaterials Co. Ltd. TSCA means US Toxic Substances Control Act
Zhuhai Vanteque Specialty POP means EU Persistent Organic Pollutants Regulation
Engineering Plastics means Zhuhai Vanteque Specialty Engineering Plastics Co. Ltd. SCI means Science citation index
Ningbo Kingfa means Ningbo Kingfa Advanced Materials Co. Ltd. Ei means Engineering index
Liaoning Kingfa means Liaoning Kingfa Sci. & Tech. Co. Ltd. Scopus means Academic information retrieval platform launched by Elsevier
Sichuan Kingfa means Sichuan Kingfa Sci. & Tech. Dvpt. Co. Ltd. CAS means US Chemical Abstracts Service and its databases
Hainan Kingfa means Hainan Kingfa Sci. & Tech. Co. Ltd. DOAJ means Directory of Open Access Journals
Liaoning Kingfa Biomaterials means Liaoning Kingfa Biomaterials Co. Ltd. UL means US Underwriters Laboratories
Kingfa Environmental means Kingfa Environmental Sci. & Tech. Co. Ltd. CQC means China Quality Certification Centre
Kingfa Medical means Guangdong Kingfa Medical Sci. & Tech. Co. Ltd. RPN means Risk priority number
Kingfa Recycling means Jiangsu Kingfa Recycling Co. Ltd. PSM means Process safety management
Guangdong Kingfa Composites means Guangdong Kingfa Composites Co. Ltd. JHA means Job hazard analysis
Qingyuan Meijin means Qingyuan Meijin Advanced Material Sci. & Tech. Co. Ltd. ICT means Information and communications technology
ABS/SAN means Styrenic resin PCT means Patent Cooperation Treaty
PP means Polypropylene SRM means Supplier relationship management
PE means Polyethylene AEO means Authorised economic operator
PPS means Polyphenylene sulphide ISCC PLUS means International Sustainability and Carbon Certification
PBAT means Poly(butylene adipate-co-terephthalate) GRS means Global Recycled Standard certification
PBT means Polybutylene terephthalate RecyClass means Recycled plastics certification
PBST means Poly(butylene terephthalate-co-butylene succinate) MDSAP means Medical Device Single Audit Programme
ABS means Acrylonitrile butadiene styrene MDR means EU Medical Device Regulation
PLA means Polylactic acid RMB means Chinese Yuan
BDO means 14-Butanediol Reporting period means 2025
03 04Kingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
To Stakeholders
2025 was a pivotal year for the Company as the new leadership team fully assumed its responsibilities and charted a new chapter. two Major National Science and Technology Projects and received one Second Prize of the National Science and Technology
In the face of the continued deepening of the topics about global climate change and sustainable development we closely Progress Award and three China Patent Excellence Awards injecting strong momentum into the transformation and upgrading
focused on the management theme of "focusing on innovation-driven development enhancing organisational effectiveness of the industrial chain through technological breakthroughs. The Company continued to deepen its "three-in-one" marketing
and accelerating the internationalisation process" and made coordinated efforts across environmental social and corporate model and initially established an efficient and coordinated global operating network. During the year we participated in more
governance advancing with firm steps towards a new journey of high-quality sustainable development. than 30 industry exhibitions and events including CHINAPLAS and K Show enabling technological innovation and services to
reach frontline customers with zero distance. The Company continuously improved the sustainable management system for the
In 2025 the Company's global footprint of "being rooted in China deeply cultivating the Asia-Pacific and expanding into Europe supply chain and promoted the enhancement of suppliers' ESG capabilities with the coverage of sustainable procurement training
and the Americas" was gradually consolidated with a cumulative total of 11 overseas bases and 25 representative offices reaching 100% for the year. In terms of talent development we established a global training system with total employee training
established. In Europe the Spain factory was completed and construction of the Poland base progressed steadily; in the Americas hours exceeding 550000 and overseas employees reaching 916 while the international talent pipeline continued to expand. At
Kingfa (USA) celebrated its tenth anniversary and construction of Kingfa (Mexico) commenced; in Southeast Asia the Vietnam the same time the Company actively participated in rural revitalisation and social welfare initiatives conveying corporate warmth
factory achieved scaled-up mass production and the Indonesia factory was successfully put into operation; in South Asia the new through practical actions and contributing to the building of a better society.factory of Kingfa (India) with an annual production capacity of 80000 tonnes was put into operation; in Africa service networks in
South Africa Morocco and other locations were planned further enhancing our global reach. Governance: Strengthening Resilient Governance to Lead the Future of Materials
Environmental: Advancing Zero-Carbon Plastics to Sustain Circular Growth We are committed to building an efficient transparent and compliant corporate governance system. In 2025 our corporate
governance structure continued to improve with members of the Board of Directors becoming younger and more professional.We have always regarded environmental protection as the cornerstone of the Company's survival and development. In 2025 the We received the Shanghai Stock Exchange's highest A rating for information disclosure for two consecutive years. We continuously
Company continued to deepen its development philosophy of being "green low-carbon and circular". Guided by the objective of improved our risk management and compliance system deeply integrating ESG governance into strategic decision-making and
achieving "one million tonnes in three fields" throughout the year we produced 309400 tonnes of green plastics recycled 272000 daily operations and strengthening the compliance foundation for corporate development.tonnes of waste plastics and produced 379000 tonnes of recycled plastics promoting pollution reduction and carbon reduction
across the entire plastics industry chain through an integrated solution for "making the best use of plastics". The Company actively In the future we will continue to focus on the goal of high-quality development accelerate the localisation of operations at our
advanced the application of clean energy. Photovoltaic power generation reached 83.3433 million kWh representing an increase of overseas bases and provide global customers with more competitive new material solutions through more resilient organisational
250.33% compared with 2024. Total annual purchases of green electricity reached 70.1510 million kWh. Hydrogen energy utilisation capabilities a more open innovation ecosystem and a more agile supply chain network.
achieved remarkable results with hydrogen-rich gas output at the green petrochemical production base reaching 16406.73 tonnes
and high-purity hydrogen output reaching 7814.79 tonnes achieving a win-win outcome in both economic and environmental We are deeply aware that the Company's growth is inseparable from the trust of shareholders the confidence of customers the
benefits. By virtue of our outstanding performance in climate change response and the circular economy the Company's dedication of employees and the support of society. Here we would like to extend our most sincere gratitude to every partner who
mainstream domestic and international ESG ratings improved significantly. Our S&P CSA ESG score entered the top 20% of global has cared for and supported the Company! Let us stand shoulder to shoulder with innovation at our core green development as
chemical industry companies our Wind ESG rating was upgraded to AA and we were recognised among the 2025 Top 100 ESG Best our foundation and the world as our horizon and jointly write a new chapter of sustainable development!
Practices of Chinese Listed Companies received an AAA ESG rating from CSI Index and won multiple awards related to influence
and sustainable development with our green competitiveness continuing to improve.Social: Promoting Innovation to Drive Social Progress
Kingfa Sci. & Tech. Co. Ltd. Chairman Chief Sustainability Officer
We remained committed to innovation-driven development and giving back to society with high-quality products and services. In
2025 the Company remained committed to innovation-driven development accelerated the digital transformation of R&D and Dr.
Huang Xianbo was elected as an Academician of the Chinese Academy of Engineering. During the year the Company undertook
05 06Kingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
About the Company Diagram of Relationships between the Company's Major Business Sectors and Main Products
Company Overview
Company Profile Modified plastics Green petrochemicals New materials Healthcare
Founded in 1993 Kingfa Sci. & Tech. Co. Ltd. was listed on the Main Board of the Shanghai Stock Exchange in 2004 with
stock code 600143.SH. Headquartered in Guangzhou Science City it is a new materials enterprise focusing on the research Modified plastics Light hydrocarbon Biodegradable Nitrile gloves masks
production sales and services of new chemical materials and providing brand-new material solutions for creating a safer environment-friendly and hydrogen energy plastics melt-blown fabric high-performance polypropylene resin protective clothing etc.more comfortable and more convenient life. After more than 30 years of development the Company has set up 64 subsidiaries recycled plastics styrenic resin
worldwide R&D and production bases in South Asia Southeast Asia North America Europe and other regions. At present as Packaging agricultural film tableware 3D print-
one of the companies with the most complete product categories in the global new chemical materials industry the Company is Professional medical Automobiles household Modified plastics ing etc. care personal protec-
also the world's largest manufacturer of modified plastics with the most complete range of products. appliances electronics household appliances
Special engineering tion industrial protec-electrical engineering automobiles toys daily tion air filter elements
new energies consumer chemicals etc. plastics
Principal Business and Products etc.electronics etc.LED electronics electrical
The Company is primarily engaged in the R&D production and sales of new chemical materials. Its main products cover nine major engineering consumer
categories including modified plastics environment-friendly high-performance recycled plastics biodegradable plastics special electronics new energies
engineering plastics high-performance fibre-reinforced composite materials (formerly known as "carbon fibre and composite embodied intelligent
materials" same below) light hydrocarbon and hydrogen energy polypropylene resin styrenic resin and healthcare polymers. robots etc.High-performance fibre-
These products are widely used in many industries such as automobiles household appliances electronics electrical engineering reinforced composite
consumer electronics embodied intelligence new energies aerospace high-end equipment green packaging and healthcare. We materials
have established strategic partnerships with many well-known enterprises at home and abroad.Automobiles unmanned
At present the Company has formed four major business sectors centred on advanced polymer materials namely modified aerial vehicles new ener-
plastics new materials green petrochemicals and healthcare integrating collaborative innovation production services and gies containers etc.applications across the upstream and downstream industrial chain. By continuing to increase investment in technological
innovation and relying on an international marketing and service network and an excellent operational system we ensure the high-
quality development of our business.Ningbo Kingfa: PP industry chain
Synthetic resins/ Liaoning Kingfa: ABS/SAN industry chain
monomers/ Zhuhai Vanteque Specialty Engineering Plastics: PA10T LCP PPSU PEEK etc.additives
Kingfa Biomaterials: PBAT PBS PBST PLA etc.; succinic acid butanediol hal-
ogen-free flame retardants etc.Modified plastics General-purpose plastics engineering plastics special engineering plastics biodegradable plastics high-performance recycled plastics etc.Plastic products High-performance fibre-reinforced composite materials gloves masks melt-blown fabric air/liquid filter materials etc.
0708
Upstream Midstream DownstreamKingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
Global Layout Corporate Culture
Mission
Grow together with partners share
achievements provide high-quality
new materials for the society and
Wiesbaden Germany Szprotawa Poland create a wonderful life.Czech
Michigan USA France
Hungary Romania
San Francisco Cuenca Spain Italy Türkiye Seoul South Korea
Los Angeles Tennessee Tangier Morocco Tokyo Japan
Cairo Egypt
Manesar India
Gurgaon Guangzhou China
Monterrey
San Luis Potosí Mexico Gujarat
Querétaro
Mexico City Pune India Hanoi Vision
Bengaluru Chennai Bangkok Thailand
Pondicherry India Become the world's best new
Penang Malaysia Dong Nai Vietnam material enterprise highly respected
Kuala Lumpur
within the industry.Jakarta Indonesia
S?o Paulo Brazil
Changchun
Johannesburg South Africa Shenyang
Panjin
Tianjin Values
Weifang Qingdao Be value creator-oriented.Zhengzhou
Xuzhou
Luoyang
Xi'an Kunshan
Hefei Shanghai
Chengdu Wuhan Wuhu Ningbo
Chongqing Nanchang
Changsha Wenzhou
Fuzhou
Headquarter XiamenNanning Qingyuan Taiwan Management concept
Zhuhai Be people-oriented achieve high-
Technology Manufacturing and Hong Kong quality development and perform
Research & Development Base Danzhou compliance management.Representative Office
Note: This map is for illustrative purposes and is
intended only for an overview of specific area.
09 10Kingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
Development Strategy Development History 2021
Kingfa Medical was established.In line with China's "Belt and Road" initiative and 2009
dual circulation in domestic and overseas markets Liaoning Bora New Materials Co. Ltd. was acquired.the Company adheres to the strategic thinking of Tianjin Kingfa was established. Zhuhai Wango Chemical Co. Ltd. was renamed
"strengthening the middle consolidating both 1993 "Kingfa Biomaterials".ends being innovation-oriented and achieving
leap-forward development" and strives to The Company was established.
2010
2022
build a world-class R&D marketing supply and Jiangsu Kingfa was established.manufacturing platform to become a worldwide
1997 The Company's sales exceeded RMB 10 billion.
Liaoning Bora New Materials Co. Ltd. was
leader in new materials providing support for renamed "Liaoning Kingfa".national strategic materials. Guangzhou Tianhe Gaotang Pro- Kingfa (Japan) was established.duction Base was established. 2013
Kingfa Environmental was established.Strategic Development Kingfa (India) was acquired.Policy of the Company 2001 Guangdong Kingfa was established. 2023
Shanghai Kingfa was established. Kingfa (Vietnam) was established.Business development strategy 2015 Kingfa (Poland) was established.
2003 Kingfa (USA) was established.
Strengthening the middle: Expand
and strengthen the polymer business; The Postdoctoral Research Work- Chengdu Kingfa was established. 2024
continuously expand its breadth and depth station was built.and enhance its competitiveness. Kingfa (Malaysia) was established. Kingfa (Indonesia) was established.Consolidating both ends: Give full play Kingfa (Mexico) was established.to the pillar role of the polymer business 2004
and anti-risk capability; guide the benign 2019 Kingfa (Spain) was established.development in upstream and downstream The Company was listed on the
business sectors and facilitate collaboration Main Board of the Shanghai Ningbo Haiyue New Material Co. Ltd. was
in the whole industry chain. Stock Exchange. acquired and renamed "Ningbo Kingfa". 2025
Mianyang Changxin New Material Kingfa (Korea) was established.Development Co. Ltd. (changed 2020
Focus of high-quality sustainable to "Sichuan Kingfa" in 2014) was
development established. Hainan Kingfa was established.The Academician Workstation Kingfa Recycling was established.Being innovation-oriented: Guide was established.collaboration in new technologies upselling
and outward operation.Core objectives of business
development
Achieving leap-forward development:
With the focus on the ambitious goal of
achieving an output of RMB 100 billion
(referred to as the "1438" strategy) facilitate
sustainable and high-quality development
in four major business sectors namely
modified plastics new materials green
petrochemicals and healthcare.
11 12Kingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
Sustainability-related Honours and
Recognition
Mainstream ESG Rating Results
CDP Climate
S&P CSA ESG Score: Wind ESG Rating: CSI ESG Rating: EcoVadis Questionnaire: A
47 AA AAA Gold Medal CDP Water Security
Questionnaire: A-
Honours and Awards
2025 Southern Weekly
China Corporate Sci-Tech China Securities 2025 Stockstar ESG 2025 Cailian Press 2025 International CFS 14th Finance
Innovation Capability Journal "ESG Carbon Annual Forum "ESG Zhiyuan Award
Forbes "2025 Forbes
China ESG Benchmarks Green Zero-Carbon Summit "2025
Ranking "TOP1 in the Neutrality Golden Bull New Benchmark "Environmental- in Industry Festival "2025 ESG Model Enterprise
Rubber and Plastic Award" Enterprise Award" Friendly (E) Pioneer Development" Model Enterprise for Sustainable
Products Industry" Enterprise Award" Award" Development"
CERTIFICATE
OF ACHIEVEMENT
ESG卓越低碳轉型案例
This Certificate Is Awarded To
?發科技股份有限公司
2025
2025.12.30 ESG VALUE HKCD2025ESG068
RANKINGS
Date Certicate No.
2025 Hong Kong Quality
Assurance Agency 21st Century Institute of
International Sustainability Hong Kong Commercial P5W National Selection for Investor Relations China Listed Company United Nations Global High-Quality Development "Xinhua Credit Pearl 2025 Sustainable Forum "Gold Award for Daily "ESG Outstanding of Listed Companies Value Evaluation "The Compact "25 Sustainable (Capital Market) Cup" Climate-Optimised Development Practice the Sustainability-Related Low-carbon 19th Top 100 ESG Listed Development Chain Outstanding Case: "2025 Enterprise Practice Project Cases in China's
Financial Information Transformation Case" "Outstanding ESG Value Companies in China" Master Alliance" Outstanding ESG Practicing Achievements Automobile Industry
Disclosure Pioneer Communication Award" Listed Company"
Programme"
13 14Kingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
Sustainable Development Building on the ESG architecture the Company has formulated the Social Responsibility Policies of the Company covering the principles and specific implementation standards that the Company should follow in multiple areas such
as labour and human rights environmental protection business ethics and sustainable procurement applicable to all
Governance employees of Kingfa Sci. & Tech. Co. Ltd. and its subsidiaries. The Company continuously improves the ESG mechanism to ensure that ESG principles are effectively integrated into daily operations and decision-making processes.Consistently adhering to the core values of being "value creator-oriented" the Company is committed to empowering ESG Mechanism of the Company
a better life and natural ecology with high-quality products and services. The Company has made in-depth efforts
to address the key concerns of stakeholders such as investors customers employees and communities striving to
create long-term sustainable and shared value for all stakeholders. Information reporting mechanism
The management regularly reports the progress of sustainability-related work to the Strategy and
Sustainable Development Management Sustainability Committee and the Board of Directors.System
The Company has built an ESG architecture suitable for its own business attributes and management model and
created an ESG architecture at four levels (i.e. the Board of Directors Strategy and Sustainability Committee ESG
working group and ESG-related functional departments/subsidiaries). In the ESG architecture the division of labour
rights and responsibilities is clear at all levels. The internal ESG work is managed top-down to better integrate the
ESG concept into the Company's strategic planning and promote the Company's high-quality development.Supervision procedures and measures Evaluation details
Sustainable Development Management Structure and
Responsibilities of the Company Important matters related to sustainability are Take energy conservation and emission reduction
reviewed and approved step by step through special reduction in electricity consumption per unit of production
Top responsible team signed reports. capacity and reduction in energy consumption per RMB
Assume full responsibilities for the Company's sustainable development 10000 revenue as evaluation indicators for relevant
and ESG strategies management and external disclosure. responsible persons; incorporate the ESG rating into the
evaluation of part of the ESG management.Decision-making level
Incorporate sustainable development and ESG work into strategic planning;
study the Company's medium and long-term development strategic plans
Board of and make suggestions; In addition the Company integrates due diligence into the entire ESG governance process formulates preventive and
Directors Carry out research on the Company's sustainable development ESG and control measures for identified potential risks to avoid adverse incidents in advance; meanwhile for negative impacts
other related matters; and make relevant suggestions and decisions.that have already occurred effective mitigation and remediation measures are adopted to minimise the extent of harm;
Strategy and
Sustainability Management level afterwards the Company comprehensively presents the effectiveness of due diligence and progress in improvement
Committee It is composed of the Company's senior managers heads and executives of through continuous monitoring and regular reporting.ESG-related functional departments;
Handle daily affairs on the sustainable development and ESG the ESG
ESG working group working group supervises and manages the sustainable development and
ESG-related work of key functional departments implements sustainable
development and ESG strategies and specific measures and reports to the
Strategy and Sustainability Committee on a regular basis.ESG-related functional
departments/Subsidiaries Execution level
Include all functional departments and subsidiaries related to important ESG
topics of the Company;
During the daily operation actively perform specific sustainable
development and ESG-related work within the scope of responsibilities and
promote the achievement of various key performance indicators and targets
under the guidance of the ESG working group.
15 16Kingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
Communications with Stakeholders
The Company attaches great importance to the demands and concerns of all stakeholders. Based on the actual circum-
stances of the business operations the Company has identified seven key stakeholder groups such as government and
regulatory authorities shareholders and investors customers and employees. By establishing diversified communica-
tion channels and conducting regular communication the Company has integrated their matters of concern into its daily
management and operational decision-making and responded to and implemented them effectively.Government
and regulatory Shareholders and Customers Employees Suppliers Partners and Communities
authorities investors industries
Corporate governance
Compliance and risk management
Anti-commercial bribery and anti- Corporate governance Product and service quality Energy usage
corruption Compliance and risk management Innovation-driven Anti-commercial bribery and Usage of water resources
Anti-unfair competition Innovation-driven Sustainable supply chain
Employee rights and benefits anti-corruption
Innovation-driven Pollutant discharge
Equal treatment to small and management Employee training and Sustainable supply chain
medium-sized enterprises Sustainable supply chain management Promoting industry develop-
Waste disposal
development
management Data security and customer privacy ment Ecosystem and biodiversity
Climate change tackling protection Occupational health and safety Circular economyClimate change tackling protection
Environmental compliance Circular economy Chemical safety
management Circular economy
Rural revitalisation and
Chemical safety contributions to the society
Rural revitalisation and contributions
to the society
Shareholders' meetings Product launch events Trade unions and workers' Association and exhibition Supplier audits mutual exchanges and visits
Mutual visits and exchanges Investor hotline Customer exchange meetings congresses Supplier conferences
Roadshows Employee satisfaction surveys Communication on strategic
Public welfare projects
Communication about standards Customer satisfaction surveys
and policies Supplier training
cooperation projects Rural revitalisation donations
Performance briefing Customer service hotline industry Employee appeals
exhibitions etc. management platform Daily communication
Industry-academic-research
On-site inspections cooperation
Conduct regular information
disclosure
Optimise the compliance Collect investor-related informa- Establish a scientific human
management system Optimise the product quality and resources management Improve the environmental tion through information exchange
channels service management systemEnhance anti-corruption system and promotion
monitoring system and reduce
Improve the supplier
management Develop innovative products mechanism management system
Develop green material emissions of the four types of
Respond to investor inquiries products waste
Develop green materials to mitigate/ Conduct regular information Conduct customer feedback
Strengthen employee Conduct supplier training
adapt to climate change communication customer research communication
Participate in industry Carry out public welfare and
disclosure and environmental and social volunteer activitiesand customer satisfaction surveys Strengthen occupational assessments
exchanges and seminars
Settle carbon allowances Optimise the compliance manage- Support community
ment system Ensure information security
health and safety
Improve the environmental management development
monitoring system
Carry out rural revitalisation activities
1718
Key Stakeholders Topics of Key Concern Communication Channels Feedback and PracticeKingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
Analysis of Material Topics Major Changes in Material Topics of the Company in 2025
2025 Material Topics 2024 Material Topics Change Reason for Change
To identify material topics the Company leverages internal due diligence and risk control mechanisms while also
Ecosystem and biodiversity This topic has been added in accordance with the
assessing external regulatory requirements industry standards development trends and peer practices to establish protection —— requirements of the Guidelines.a regularly updated repository of material topics. On this basis the Company strictly follows the relevant provisions New topic
Compliance and risk management —— This topic has a relatively significant impact on the Company's
on topic materiality analysis in the Shanghai Stock Exchange's Guidelines and carries out in an orderly manner and operations; therefore it has been added as a new topic.continuously improves the double materiality assessment of topics. Safety and quality of products The content of product and service safety is reflected in the Product and service quality and services topic of "chemical safety" and therefore the wording of this
Double Materiality Assessment Process of the Company Wording topic has been revised.revision
Sustainable supply chain The Company's supply chain management practices not only
management Supply chain security include "supply chain security" therefore the wording of this
Understand the background related to the Company's topic has been revised to better align with actual disclosures.activities and business Employee rights and benefits
The governance architectures of the three topics differ;
Analyse the Company's internal activities and business relationships including sustainability-related impacts Employee training and development Employees Topic therefore the topics have been broken down to make the
upstream and downstream of the value chain; breakdown disclosure model more reasonable.Understand the external objective environment including the macro policies industrial policies regulatory Occupational health and safety
requirements and industry hotspots in 2025 and identify potential impacts on the Company; Rural revitalisation The Company's management practices for rural revitalisation
Understand the key stakeholders that are materially affected including internal and external stakeholders and Rural revitalisation and contributions Topic and contributions to the society overlap to a considerable to the society Contributions to the society merger extent and therefore the topics have been combined to better sort and classify them. align with actual management practice.Establish a list of ESG topics —— Due diligence
Topic Due diligence and communications with stakeholders run throughout the Company's operations and are therefore not
Based on the 21 topics set in the Guidelines and in conjunction with regulatory policies rules industry stan- —— Communications with removalstakeholders disclosed as separate topics.dards and development trends peer analysis etc. add topics specific to the Company and remove inapplica-
ble topics to form a list of topics comprising a total of 23 ESG topics.Note: Although the two topics of due diligence and communications with stakeholders are not directly included in the list of topics the relevant content has been explained in
Assess the materiality of topics the section "Sustainable Development Governance" of this Report.Impact materiality assessment
Based on the actual operations and interviews the Company conducts a preliminary analysis of the impact of 2025 Materiality Matrix of the Company
sustainability topics on stakeholders; 10
The Company carries out communications with stakeholders to gather stakeholders' views on the nature
of the impacts (negative or positive) and whether the impacts occurred (actual or potential) and invite Innovation-driven
stakeholders to score them from two dimensions namely the "severity of impact" (scale scope irremediability 9 Data security and Anti-commercial bribery and anti-corruption
of the impact) and the "likelihood of impact"; customer privacy Product and service quality Compliance and risk management
protection
By integrating feedback from diverse stakeholders and with reference to the opinions of internal and external Sustainable supply chain management
experts the Company forms the impact materiality assessment results for all topics. 8 Employee rights and benefitsEnergy usage
Financial materiality assessment Pollutant Occupational health and safetydischarge Chemical safety
Based on the actual operations the Company conducts a preliminary analysis of the financial impacts of topics on the 7
Company; Employee training and development Circular economy
Ecosystem and biodiversity Social
The Company invites relevant senior executives and heads of departments to assess the financial materiality of topics 6 protection Environmental
from two dimensions namely the "likelihood of occurrence of impacts" and the "degree of financial impact" across Waste disposal
three time horizons namely short term medium term and long term (short term: within one year; medium term: 1-5 Climate change tackling Governance
years; long term: more than five years); 5 Promoting industry Environmental compliance development management
The Company consolidates the views of relevant senior executives and heads of departments and with reference to Anti-unfair competition Corporate governance
recommendations from internal and external experts form the financial materiality assessment results for all topics. Usage of water resources Topic of double materiality4
Review and confirm topics Equal treatment to small and
medium-sized enterprises Topic of financial materiality only
Based on the Company's impact materiality and financial materiality assessment results for all topics and in 3 Rural revitalisation and contributions to the society
conjunction with the Company's operational and management capabilities the Company establishs materiality
threshold criteria to derive a list of topics deemed "material" and defines the boundaries of the material topics; Topic of impact materiality only2
The Company develops a double materiality analysis matrix to clearly present the assessment results;
After review and confirmation of the results of the double materiality assessment by the Company the Company Topic of neither financial materiality nor impact materiality
discloses the topics identified with high materiality for 2025 as key topics in this Report. 1
012345678910
Ultimately the Company identified ten topics of double materiality three topics of financial materiality only six top- Financial Materiality
ics of impact materiality only and four topics of neither financial materiality nor impact materiality. Note: 0-10 on the coordinate axes indicates the degree of materiality with the level of materiality increasing progressively from 0 to 10.
1920
Impact MaterialityKingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
Response to ESG Goals The Company has established quantitative goals for each topic using substantive actions to drive the Company's sustainable development. The Company has joined the United Nations Global Compact (UNGC) and actively implemented the ten principles of the UNGC based on United Nations conventions including human rights labour standards environment and anti-
corruption to facilitate the achievement of the SDGs.ESG Goals and 2025 Progress of the Company
Sector Our Goals Our Actions Progress towards 2025 Goals SDGs Responded
The Company carries out analysis of climate change scenarios to identify
inspect and monitor greenhouse gas emissions during operations
Climate change tackling establishes a management and control system and continuously optimises Carbon emission intensity per unit of
Compared with 2022 we will reduce greenhouse gas emissions per unit product by at least 30% by 2030. it. The Company gradually expands the scope of application of green domestic modified plastics (Scope energies builds green parks and factories urges the interested parties 1 + Scope 2): 0.1305 tonnes of CO2
Compared with 2022 we will achieve a 30% reduction in carbon emissions per unit related to procure- to practice green and low-carbon production living and office methods equivalent with a decrease of 29.32%
ment activities by 2030. establish a green procurement mechanism and a carbon emission compared with 2022
management system in the supply chain and promote the realisation of
net-zero emission goals in the supply chain.The Company regularly conducts energy efficiency evaluations increases
Energy usage single-machine capacity by energy-saving renovation with advanced Comprehensive energy consumption
Compared with 2022 we will achieve a 25% reduction in comprehensive energy consumption per RMB production technologies and processes and includes energy conservation intensity: 0.1250 tonnes of standard
10000 revenue by 2030. objectives in related personnel's KPI thereby ensuring accountability for coal per RMB 10000 revenue
reducing energy consumption.The Company has built a proactive prevention and control model
for "data-driven warning - hierarchical hazard management - rapid
Usage of water resources emergency response - dynamic enhancement of capabilities". Through
Compared with 2025 we will achieve a 10% reduction in water consumption per RMB 10000 revenue by refined operations the Company has embedded water-saving measures
Water consumption intensity: 2.42
throughout the entire production process forming a closed-loop tonnes per RMB 10000 revenue2030.management system from strategic planning to on-site operations and
Environmental from target setting to data traceability.In the early stage of production equipment and process design the
Company gives priority to low-pollution production equipment and raw
materials to reduce the generation of pollutants. In new projects priority
Pollutant discharge is given to the use of high-efficiency pollution control processes and the Air pollutant emission intensity (VOCs
Compared with 2022 we will reduce the emissions of air pollutants (VOCs PM SO NO ) per RMB 10000 pollutant control facilities of existing projects gradually undergo iterative PM SO2 NOx): 6000 cubic metres per 2 x
revenue generated during the production process by more than 30% by 2030. upgrading to improve pollution control efficiency and reduce total pollutant RMB 10000 revenue
discharge. The Company also strengthens the operation and management
of pollution control facilities to ensure efficient and stable operation and
emissions are up to standards.Waste disposal The Company is committed to converting the waste into resources and Recycling rate: 9.63%
Compared with 2022 we will enhance the recycling rate of industrial waste by 60% by 2030. improving the resource utilisation of the waste through recycling and reuse.The Company adheres to a circular economy development approach that Production of green plastics: 309400
advances both external and internal initiatives. Externally the Company tonnes
Circular economy proactively strengthens cooperation with external parties and leveraging
technological innovation in the recycling of waste plastics works closely Recycling of waste plastics: 272000
By 2030 we will produce 1 million tonnes of green plastics recycle 1 million tonnes of waste plastics and with all partners to jointly build a recycling system for waste plastics; tonnes
produce 1 million tonnes of recycled plastics. internally the Company actively establishes a circulation mechanism
for resources used in production to realise the resource-based reuse of Production of recycled plastic: 379000
wastewater waste gas waste and leftover materials. tonnes
The Company adopts advanced production processes and a strict
Product and service quality quality control system to ensure that all links of products from the
From 2022 to 2030 we will continuously optimise the safety performance of our products to receive no procurement of raw materials to the delivery of finished products
Rate of health or safety complaints
health or safety complaints from the customers. conform to safety standards. The Company reduces the use of
from the customers: 0
harmful substances and protect customer health.Social The Company regulates and manages the collection storage and
Data security and customer privacy protection use of personal data prohibits the employees from disclosing
From 2022 to 2030 we will ensure that no major information security incident will occur every year customer information and other personal data to unauthorised third Number of major information security
guarantee the security of our business data and customer information and prevent information leakage parties discovers and repairs security vulnerabilities in time drafts incidents: 0
and abuse. emergency plans for information security incidents and effectively
safeguards the security of the Company's information and data.Note 1: A major information security incident is an information security incident that causes a loss of more than RMB 100000.
21 22Kingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
Sector Our Goals Our Actions Progress towards 2025 Goals SDGs Responded
Qualified rate of suppliers for protect-
ing the rights and interests of labour-
Sustainable supply chain management ers: 100%
From 2022 to 2030 we will ensure that the suppliers comply with labour laws and regulations and The Company has issued the Sustainable Procurement Policies Proportion of suppliers with the
annually 100% suppliers are qualified in protecting the rights and interests of labourers. to regulate the procurement standards and requirements for environmental protection labourers' human rights business ethics environmental management system
From 2022 to 2030 we will ensure that 100% of key raw materials are sourced from suppliers with an etc. and regularly organises internal training to communicate certification: 60.26%
environmental management system certification (ISO 14001). sustainable procurement requirements to purchasing specialists.The Company regards compliance with labour laws and regulations Supplier code of conduct signing rate:
From 2022 to 2030 we will ensure that the supplier code of conduct is 100% signed every year. and the protection of labour rights and interests as important access 100%
Compared with 2022 we will enhance the on-site audit coverage of core suppliers to 90% by 2030. conditions for suppliers includes labour rights protection clauses in On-site audit coverage of core suppli-the agreements and actively encourages the suppliers to pass the ers: >90%
From 2022 to 2030 we will ensure that the annual sustainable procurement training coverage of system certifications related to environmental and labour rights.purchasing specialists reaches 100%. Sustainable procurement training
coverage for purchasing specialists:
100%
Collective contract coverage rate:
Employee rights and benefits 100%
The Company is always fair impartial and transparent in all aspects
From 2022 to 2030 we will ensure that the annual coverage rate of the collective contract is up to 100%. of recruitment promotion salary training and career development. Employee social insurance coverage
rate: 100%
From 2022 to 2030 we will ensure that the annual coverage of social insurance is 100% among the em- T h e C o m pa n y p ro v i d e s e m p l o y e e s w i t h co m p re h e n s i v e
Social ployees.social insurance and sign a Collective Contract with employee
representatives. The Company conducts at least one employee Number of discrimination or harass-ment incidents occurred: 0
From 2022 to 2030 we will ensure that no discrimination or harassment occurs every year and the cover- satisfaction survey each year and extensively collects the employees'
age rate of anti-discrimination and anti-harassment training reaches 100%. opinions and suggestions on the working conditions remuneration Coverage rate of anti-discrimination
benefits career development etc. and anti-harassment training: 100%
By 2030 we will achieve employee satisfaction among more than 98% of the employees.Employee satisfaction: 87.66%
The Company encourages and supports all employees to participate
in training activities. Regardless of their positions they have the
Employee training and development opportunity to receive training and achieve career development.Besides the employees are regularly organised to participate in Average skill training time per employ-
Compared with 2022 we will increase the average skill training time per employee by 2 hours by 2030. external training activities such as industry conferences seminars ee: 21.48 hours
and professional training organisations to broaden their learning
channels.Occupational health and safety Number of work-related deaths: 0The Company constant ly improves i ts health and safety
From 2022 to 2030 we will ensure annual zero work-related deaths and a coverage rate of 100% in the management system improves its health and safety management Physical examination coverage rate:
physical examination. regularly organises occupational health inspections and safety risk 100%assessment promptly detects and addresses occupational disease
From 2022 to 2030 we will ensure that the annual health and safety risk assessment covers 100% sites. risks and carries out health promotion activities. Health and safety risk assessment site coverage rate: 100%
Compliance and risk management
From 2022 to 2030 we will ensure that the business ethics risks are evaluated and internally audited at The Company has established a sound internal control system and Number of business ethics risk evalua-
least once a year to comprehensively assess the risks that the Company may face in business ethics and conducts a comprehensive review of business ethics at least once a tions and internal audits: 1
put forward corresponding improvement measures and suggestions. year to ensure that all business activities are based on facts that are
true accurate and compliant. Number of fraud incidents: 0
From 2022 to 2030 we will ensure no fraud strengthen internal control increase the employees'
awareness of integrity and risks and reduce fraud risks.Corporate governance
Anti-commercial bribery and anti-corruption
From 2022 to 2030 we will ensure that no corruption occurs every year. The Company resolutely opposes any forms of corruption and Number of lawsuits related to corrup-
bribery establishes an internal whistleblowing mechanism and tion: 0
From 2022 to 2030 we will achieve full coverage of anti-corruption training among all our employees to provides necessary protection and support for whistleblowers. At the
ensure that our annual training coverage will be up to 100%. same time the Company strengthens business ethics education and Anti-corruption training coverage rate:
training for employees to enhance their self-discipline. 100%Compared with 2022 we will increase the average business ethics training hours per employee by two
hours by 2030.
23 24Kingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
Advancing Zero-Carbon
Plastics to Sustain
Circular Growth
The Company continues to deepen the development philosophy of "green
low-carbon and circular". Anchored in the "dual carbon" goals and guided
by the ambitious goal of achieving "one million tonnes in three fields" the
Company drives the green transformation of the entire plastics industry
chain towards green design low-carbon manufacturing and recycling
and reuse providing systematic solutions for the low-carbon transition of
the global plastics industry promoting harmonious coexistence between
humanity and nature and safeguarding our planet.Highlight performance:
Total environmental protection investment: RMB 227435700
Total greenhouse gas emissions (Scope 1 + Scope 2 + Scope 3):
17618371.59 tonnes of CO2 equivalent
Carbon emission intensity per unit of domestic modified plastics (Scope
1 + Scope 2): 0.1305 tonnes of CO2 equivalent with a decrease of
29.32% compared with 2022
Production of green plastics: 309400 tonnes
Recycling of waste plastics: 272000 tonnes
Production of recycled plastics: 379000 tonnes
Photovoltaic power generation (self-generation for self-use):
83343300 kWh up 250.33% year-on-year
Production of hydrogen-rich gas: 16406.73 tonnes; production of
high-purity hydrogen: 7814.79 tonnes
Cumulative green electricity procurement for the year: 70151000 kWh
Recycled/re-utilised water: 926090831.30 tonnes
SDGs benchmarking:
25 26Kingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
Environmental Compliance Management Environmental Compliance Management Structure and Responsibilities of the Company
The Company attaches great importance to environmental management strictly implements environmental protection Chairman of the Group
responsibilities and promotes the coordinated development of production operations and environmental protection. The
Company strictly complies with the Environmental Protection Law of the People's Republic of China and the Law of the Serve as the Director of the Work Safety Committee of the Group the highest decision-maker and leader for environmental management.People's Republic of China on Environmental Impact Assessment among other laws and regulations to ensure that all Be responsible for reviewing and approving the Company's environmental policies targets and plans.business activities fully comply with the stringent national environmental protection standards and requirements. Supervise the effectiveness of the operation of the environmental management system and ensure that the Company's
environmental protection strategy is consistent with the Company's overall strategy.Governance General Manager of the Group
The Company upholds the environmental management philosophy that "environmental protection is the foundation Serve as the Executive Deputy Director of the Work Safety Committee of the Group the highest executive and direct organiser of environmental management.of sustainable development" and has formulated comprehensive systems covering key areas of environmental Be responsible for the comprehensive implementation of environmental policies ensure resource investment and
protection (such as energy management usage of water resources pollutant discharge and waste disposal) including promote the continuous improvement of the environmental management system.the Environmental Management Policies the Environmental Protection Safety and Occupational Health Management Promote all subsidiaries to establish an environmental protection accountability system for all employees and ensure that
Regulations the System of Responsibility for Environmental Protection the Emergency Plan for Environmental responsibilities are cascaded at every level and assigned to specific individuals in each position.Emergencies the Environmental Protection Publicity Education and Training System. Heads of each subsidiary
The environmental management work of the Company is controlled by the Group under the unified leadership of the Promptly communicate the Company's environmental policies to all employees of subsidiaries ensuring the effective
implementation of the policies at the subsidiary level.Group. The Company has established a safety management network at four levels namely Group-subsidiary-department-
Based on the actual circumstances of subsidiaries formulate specific environmental management systems and measures
employee to achieve full employee coverage clarify the environmental protection responsibilities of all employees to ensure the achievement of environmental protection targets.ensure accountability to individuals through an accountability mechanism and guarantee the effective implementation of Ensure that the production and operational activities at the site comply with environmental protection requirements.environmental management work at all operating sites. Safety and Environmental Protection Department/Human Resources and Administration Department/office of
each subsidiary
Environmental Management Culture of the Company Serve as the department responsible for environmental management.Be responsible for the specific formulation interpretation and revision of environmental policies ensuring that the policy
content is scientific reasonable and operable.Environmental Organise internal environmental protection training enhance employees' environmental awareness and publicise the
concept Environmental protection is the foundation of sustainable development Company's environmental protection philosophy and achievements.Supervise and inspect the environmental protection work of each base/business division and each subsidiary ensuring
that all environmental protection measures are effectively implemented.Employees
Environmental
vision Build an essentially environmentally friendly enterprise Be required to strictly comply with the Company's environmental policies actively participate in environmental protection
activities and enhance their own environmental awareness.Focus on energy conservation and emission reduction in routine work reducing unnecessary energy consumption and waste.Proactively put forward suggestions to the Company for improvements in environmental protection and contribute to the
Company's environmental protection efforts.Environmental
mission Legal compliance energy conservation emission reduction and continual improvement
As of the end of the reporting period the Company and 17 of its subsidiaries have passed ISO 14001:2015
Environmental Management System Certification covering 85% of the Company's operating sites and achieving
100% coverage of its major domestic production and R&D bases.
Environmental
values Save resources and promote green production Strategy
The Company integrates environmental compliance management into its sustainable development strategy and
by establishing a full-chain environmental management system actively responds to the expectations of regulatory
Environmentally authorities and the public regarding environmental protection. Meanwhile the Company attaches great importance to the
friendly Being green and low-carbon protecting the environment and benefiting the society
production policy control of environmental compliance risks and proactively addresses the rising compliance costs brought about by tighter
policies as well as the operational compliance pressure triggered by increasingly stringent environmental regulations.
27 28Kingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
Analysis of Environmental Compliance Management Environmental Impact Analysis of the Company
Risks and Opportunities of the Company
Stage Environmental Environmental Factor Outputs
Major Risk/ Factor Inputs
Opportunity Specific Description
Scope of
Impact Financial Impact Waste gas: Particulate matter non-methane total hydrocarbons nitrogen
National and local requirements for the control of construction projects Energy: Electricity oxides sulphur oxides volatile organic compounds styrene ammonia etc.involving pollutant generation and discharge have become increasingly natural gas coal water Wastewater: Biochemical oxygen demand (BOD) chemical oxygen demand
refined with strict control over total pollutant discharge quotas for construction slurry diesel steam (COD) suspended solids ammonia nitrogen total phosphorus total nitrogen
projects and strengthened source control and process supervision. petroleum substances sulphides etc.R&D and production Water sources:
If the Company's construction projects lack the required procedures or the Municipal water Non-hazardous waste: General industrial solid waste domestic waste
disposal of the "four types of waste" is non-compliant or if high-energy- Short and Increased compliance supply reclaimed Compliance risk consumption high-emission production equipment and environmental medium costs and reduced water from outside the
Hazardous waste: Laboratory waste liquid empty reagent bottles waste
organic resin waste catalyst oil sludge physicochemical sludge from the
protection treatment equipment with low disposal efficiency are not term operating revenue factory wastewater treatment station waste spiky balls waste molecular sieves waste
upgraded and retrofitted in a timely manner this may result in pollutants engine oil high-salinity mother liquor waste mineral oil etc.exceeding standards and total discharge limits increase the burden on the
surrounding ecological environment and lead to adverse business impacts Waste gas: Oil fumes
arising from regulatory penalties production suspension for rectification and Energy: Electricity
even reputational damage. natural gas Wastewater: Domestic sewageRoutine operations
Water source: Non-hazardous waste: Domestic waste
Municipal water supply Hazardous waste: Waste light tubes waste ink cartridges
Impact Risk and Opportunity Management
The Company attaches great importance to environmental compliance management and continues to strengthen
In accordance with the relevant provisions of GB/T 24001-2016 Environmental management systems the Company key tasks such as construction project management compliance evaluation and environmental protection capabili-
has formulated the Environmental Factors Identification and Evaluation Procedures to comprehensively identify vari- ty building continuously enhancing the effectiveness of environmental compliance management.ous environmental risks arising from production and operational activities establish and improve environmental risk
management processes and strictly prevent environmental emergencies.Key Measures for Environmental Compliance Management of
Environmental Compliance Risk Management Processes of the Company the Company
Implement the "three simultaneous" management initiatives
Before applying for a construction project effective protection against the pollution that the project may cause must be put in place.Protective measures must be demonstrated and designed and the design must follow the design procedures stipulated by the
State. The "three simultaneous" management initiatives are implemented whereby facilities for preventing and controlling pollution
and other public hazards are designed constructed and commissioned simultaneously with the main works.Risk factor Risk investigation Risk emergency
identification and detection management
Conduct a compliance evaluation
Establish an environmental Conduct priority supervision Strengthen emergency man-
risk investigation mechanism over points liable to cause en- agement for environmental Identify the compliance of laws and regulations: Applicable environmental protection requirements under the State industry local
aligned with the production vironmental pollution and lead emergencies regularly organise government laws and regulations are timely updated and identified and a list of applicable laws and regulations and a compliance
types of each production base to environmental incidents and employees to carry out emer- evaluation list are produced.and comprehensively identify accidents inspect and check gency training and practical
risk points that are likely to the operation of environmental emergency drills and strive to Identify and control environmental factors: In response to continual changes in operational activities facilities and the environment
cause environmental protec- protection equipment on a reg- eliminate or minimise environ- a dynamic identification and evaluation of environmental factors is carried out each year to ensure that the identification of environ-
tion incidents. ular basis. mental impacts to the greatest mental factors is comprehensive and without omission and that the evaluation of environmental factors is objective and accurate. For
extent possible in the event of the significant environmental factors identified through the evaluation objectives indicators and management plans are formulated
environmental emergencies. effective control measures are developed in accordance with the principles of elimination reduction and control and the status of con-
trol over significant environmental factors is disclosed.Investigate and rectify environmental hazards: With a focus on environmental risk control the investigation management and
The Company actively compiles a List of Significant Environmental Factors according to business type analyses the remediation of environmental safety hazards and graded control of environmental safety risks are conducted to ensure that investiga-
inputs and outputs of environmental factors at each stage identifies the environmental impacts related to the pro- tions leave no blind spots and rectification leaves no residual problems and ensure that all control measures are fully implemented ef-
fectively prevent the occurrence of various environmental incidents and safeguard environmental safety in production and operations.duction and operations and adopts effective environmental management measures to achieve pollution prevention
and control throughout the entire process. Conduct external audits: One ISO 14001 Environmental Management System audit is conducted each year.
29 30Kingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
Organise environmental protection training Indicators and Targets
Prepare training plans: The Company prepares environmental protection training plans and organises responsible departments to The Company has established clear environmental compliance management targets and continued to increase in-
carry out specialised training. Part-time environmental protection management personnel in each unit/department may formulate vestment in environmental governance and protection. In 2025 the Company did not receive any major administra-
department-level environmental protection training plans based on the operational characteristics of corresponding departments
and implement such plans on schedule. tive penalties from the relevant authorities due to environmental issues.Conduct routine training: Through pre-shift meetings weekly meetings monthly safety meetings etc. the Company organises
employees to participate in environmental protection education and training gradually enhancing their environmental protection 2025 Environmental Compliance Management Targets and
awareness; at the same time we organise irregular environmental protection training courses to improve the professional
capabilities and competence of personnel responsible for the operation and maintenance of key environmental protection facilities. Progress of the Company
Strengthen onboarding training: The Company strengthens environmental protection training for new employees to ensure that
they understand the Company's environmental protection requirements and operating procedures. Indicator Target Achievement Status in 2025
Participate in environmental protection exchange activities: The Company regularly organises environmental protection Number of significant environmental incidents that 0 0 achieved
management personnel to participate in environmental protection seminars and exchange activities in the industry and exchanges occurred
ideas with environmental protection enterprises and professional institutions and learns advanced environmental protection Number of major environmental administrative
experience and technologies. Moreover the Company invite environmental protection experts to deliver specialised lectures and penalties/criminal liabilities 0 0 achieved
broaden employees' environmental protection knowledge horizons.Compliance rate of the discharge of three types of waste 100% 100% achieved
Compliance rate of the "three simultaneous"
In terms of environmental emergency management the Company and its subsidiaries have set up an emergency rescue environmental protection measures for construction 100% 100% achieved
headquarters for the environmental emergencies led by its general manager prepared and filed an Emergency Plan for Envi- projects
ronmental Emergencies issued an Investigation Report on Environmental Emergency Resources and a Risk Assessment Re-
port on Environmental Emergencies continuously strengthened its emergency management of environmental emergencies
and strived to eliminate or minimise the environmental impacts when environmental emergencies occurred.Total environmental protection Environmental hazard rectifica- Implementation rate of the en-
investment: 100% vironmental monitoring plan: tion rate:
Case Kingfa Biomaterials Conducted a Special Emergency Drill for Hazardous Waste Leakage
RMB 227435700 100%
In 2025 Kingfa Biomaterials organised a special emergency drill for hazardous waste leakage aiming to test and
improve the Special Emergency Plan for Hazardous Waste Leakage. The drill was carried out in strict accordance
with the procedures specified in the plan. Clear division was made of each team's roles and responsibilities in
emergency command on-site response safety cordon and other functions and the drill included full-process
practical simulations covering accident reporting cordon and evacuation pollution control and follow-up
disposal. The entire exercise validated the feasibility and effectiveness of the emergency plan laying a solid
foundation for minimising environmental and safety risks to the greatest extent.Emergency Drill Site
Aerial photograph of the Qingyuan Base
31 32Kingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
Climate Change Tackling Major Risk/Opportunity Specific Description Scope of Impact Financial Impact
Against the backdrop of the "dual carbon" goals
Against the backdrop of increasingly severe global climate challenges deepening the low-carbon transition and customers' demand for products with low carbon
dioxide emissions has continued to increase. If Reduced
practising green operations are not only responsibilities that enterprises should fulfil but also a critical path towards Customer
demand shift risk the Company and suppliers fail to provide low- operating building long-term resilience and competitive advantage for the future. The Company continues to improve its carbon products the Company may face risks revenue
climate change management system deeply integrating relevant targets into the Company's strategy governance Transition such as reduced demand for its existing products Short medium risks and customer loss. and long term
architecture and day-to-day operations and is committed to contributing solid strength to addressing the global
climate crisis and protecting the Earth's ecology while promoting the high-quality development of its business. Public attention to corporate climate action
Reputational risk has increased. If the Company performs poorly
Reduced
this will directly affect brand image and capital operating
Governance market assessments.revenue
As extreme weather events such as rainstorms Increased
The Company actively establishes a climate change tackling management system. In the Environmental Management
Policies the Company specifies that the Strategy and Sustainability Committee of the Board of Directors is a Acute physical
and typhoons occur more frequently factory Short and operating costs
risk production and product logistics may be and reduced
department that reviews the greenhouse gas governance to coordinate and manage the Company's "dual carbon" Physical risks disrupted due to operational interruptions caused
medium term operating
by extreme weather resulting in economic losses. revenue
work. The General Manager's Office offices and subsidiaries perform their respective duties to ensure the effective
implementation of relevant practices and objectives. Chronic physical Sustained high temperatures caused by climate Short medium Increased
risk change may lead to rising energy costs. and long term operating costs
Strategy Against the backdrop of the transition to
Green product a low-carbon economy demand for low-
The Company conducts an in-depth analysis of its operating activities and business background proactively identi- innovation carbon materials has grown explosively (such
Increased
opportunity as biodegradable plastics and lightweight
operating
fies the risks and opportunities that climate change may bring and provides a strong basis for subsequently formu- composite materials) which may bring more revenue
lating corresponding response strategies. market opportunities to the Company.Against the backdrop of global efforts to advance
Analysis of Climate Change Risks and Opportunities of the Company circular economy policies the resource utilisation of plastic waste is shifting from an environmental
Circular responsibility to the creation of economic value. Increased
economy The Company can leverage its first-mover tech- operating
Major Risk/Opportunity Specific Description Scope of Impact Financial Impact opportunity nological advantage to secure a leading position revenue
in the high-end recycled materials segment
As the country continues to introduce achieving a dual improvement in environmental
climate change disclosure-related policies benefits and commercial value.the Company and suppliers may face risks
of legal liability pursued in accordance with
the law regulatory measures disciplinary The development of the national carbon market
actions property losses or loss of commercial has entered an accelerated phase and it is ex-
Policy risk reputation due to non-compliance with Increased pected that industries such as building materials
climate-related policies or laws; meanwhile compliance costs Opportunities
Short medium
Carbon asset and chemicals will be included in trading in the
as global carbon neutrality targets accelerate development future. As a leading enterprise in new chemical
and long term Increased
policies such as CBAM and carbon emission opportunity materials the Company has accumulated carbon
operating
revenue
quotas are tightening and enterprises face reduction achievements in fields such as modi-
stricter carbon emission constraints and rising fied plastics bio-based materials and recycled
compliance costs. plastics which have significant potential for
Transition Short medium carbon asset development.risks The iteration of low-carbon technologies is and long term
accelerating. If the Company fails to keep pace Against the backdrop of the global wave
in a timely manner with the R&D of cutting- of carbon neutrality across supply chains
edge low-carbon technologies such as bio- downstream industries such as automobiles
based materials and chemical recycling or if household appliances and electronics have
the energy efficiency of its existing production Increased successively set carbon reduction targets for
Technology risk processes lags behind industry benchmarks
operating costs Industrial their value chains imposing rigid requirements Increased
this may result in its products' carbon footprint and reduced chain synergy on the low-carbon attributes of upstream operating
lacking competitiveness create barriers operating opportunity materials. The Company has the capability to revenue
to market access as customers raise green revenue provide "material-grade" low-carbon solutions
procurement thresholds and even cause the for the industrial chain enabling the Company
Company to miss opportunities for industrial to leap from a traditional material supplier to
upgrading due to lock-in to existing technology a rule-maker and value allocator in the low-
pathways. carbon transition of the industrial chain.
33 34Kingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
Climate Scenario Analysis The analysis of transition risks focused on policy risk centred on carbon pricing and selected the Net Zero 2050 scenario
of Network for Greening the Financial System (NGFS) of Central Banks and Supervisors to reflect the risk profile under an
To better assess the potential impacts of climate change on the Company and further understand the climate resilience orderly transition. Under the NGFS scenario the carbon pricing reflected the marginal cost of emissions reduction under
in 2025 the Company used its Guangzhou headquarters and 11 domestic and overseas subsidiaries as sample assets to various climate policies.conduct a climate scenario analysis on three types of physical risks with relatively high materiality to the Company namely
high temperatures and heatwaves floods and sea level rise as well as transition risks represented by carbon pricing.Scenario Net Zero 2050 scenario
This scenario analysis quantified the risks to assets under specific climate scenarios by calculating the Physical Value-at-
Risk (PVaR) and Carbon Value-at-Risk (CVaR) of the physical risks of each asset site estimating the percentage of asset loss- Projected global tem- Within 1.5° C above pre-industrial levels
es caused by climate physical and transition risks at each asset site in relation to enterprise value. perature rise by 2100
According to the preliminary judgement of the substantive impacts of climate physical risks on the Company this scenario Characteristics Orderly transition scenario strong transition policies
analysis was conducted for three types of physical risk namely high temperatures and heatwaves floods and sea level
rise. The physical risk scenario analysis selected the SSP5-8.5 scenario of the Intergovernmental Panel on Climate Change The NGFS Net Zero 2050 scenario assumes that effective climate policies are introduced globally Scenario assumptions at present enabling an orderly global transition achieving net-zero emissions by 2050 and
(IPCC) reflecting the risk conditions under extreme climate change scenarios. meeting the Paris Agreement's 1.5° C temperature control target by the end of the century.Time points for analysis 2050
Scenario IPCC SSP5-8.5
Projected global
temperature rise by 2100 More than 4° C above pre-industrial levels Scenario Analysis and Calculation Results for Transition Risks
Characteristics High warming scenario of the Company
A high emission scenario without climate change policy intervention.No. Asset 2050CVaR
Scenario assumptions Under this scenario total global GHG emissions and concentrations continue to increase with
the global average temperature rising by more than 4° C above pre-industrial levels by the end 1 Kingfa Sci. & Tech. Co. Ltd.of the century.
2 Guangdong Kingfa Sci. & Tech. Co. Ltd.
Time points for analysis 2050
3 Shanghai Kingfa Sci. & Tech. Dvpt. Co. Ltd.
4 Jiangsu Kingfa Sci. & Tech. Advanced Materials Co. Ltd.
Climate Physical Risk Exposure of the Company1 5 Wuhan Kingfa Sci. & Tech. Co. Ltd.
6 Tianjin Kingfa Advanced Materials Co. Ltd.
7 Chengdu Kingfa Sci. & Tech. Advanced Materials Co. Ltd.
High
temperatures 1% 20% 59% 20% 8 Zhuhai Vanteque Specialty Engineering Plastics Co. Ltd.and heatwaves
9 Liaoning Kingfa Sci. & Tech. Co. Ltd.
10 Ningbo Kingfa Advanced Materials Co. Ltd.
Floods 100%
11 Kingfa (India)
12 Kingfa (Europe)
Sea level rise 100%
Legend:
High Medium-high Medium Medium-low Low Climate transition risk impact
1 The level is classified based on the calculated PVaR values of the sample companies and physical risk exposure is calculated as the proportion of the
enterprise value held to the sample assets. Lower impact Higher impact
35 36Kingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
The physical analysis results show that under the SSP5-8.5 scenario in which climate disasters continue to intensify the The Company has integrated clean technology innovation into its core strategy developed low-carbon products and pro-
sample assets face relatively low risks of floods and sea level rise while the risk of high temperatures and heatwaves is moted the large-scale application of new materials in fields such as new energies automobiles and electronics and electrical
generally manageable with only a small number of sample companies facing medium or higher risk of high temperatures appliances thereby empowering the green transition of the industrial chain through technological breakthroughs.and heatwaves. Focusing on aspects such as energy management and water resource security the Company has advanced
the establishment of a high-temperature warning and electricity load linkage mechanism and optimised measures related
to the cooling water circulation system in order to address the impact of the risk of high temperatures and heatwaves; the
transition scenario analysis results show that under the NGFS Net Zero 2050 scenario where climate policies are relatively Comprehensive Low-Carbon Solutions of the Company
stringent and transition risks are relatively high only two sample companies face certain climate transition costs while most
sample companies face relatively low transition risks and overall transition risk is manageable. Carbon emission data
To effectively address climate change risks and promptly seize climate change opportunities the Company continuously Carbon emission data derived from full life cycle LCA is accurate authoritative and widely recognized
monitors trends in climate physical risks and developments in climate transition policies. In light of the actual circumstances
the Company has established a distinctive "dual carbon" action strategy and comprehensive low-carbon solutions with the Provisioning of data on carbon emissions for the whole series of solutions
Company's characteristics with plans to reduce carbon emissions while simultaneously reducing plastic pollution arising Carbon emission data computing system has the capability for constant improvement
from business operations and to help the entire industrial chain reduce emissions by 2060.Low-carbon material solutions
Bio-based solutions: Bio-based resins bio-based flame retardants bio-based additives
"Dual Carbon" Action Strategy of the Company
Green factory certification
Third-party authoritative material certification
Identify inspect and monitor operational emissions; establish a control system and continuously optimise
it; and gradually expand the application scope of green energies. Environmental substance certification and declaration of conformity for the whole batch
Build green parks and green factories; promote relevant parties to practice green production living and of-
fice methods.Quality control
Construct R&D design production supply and service systems for green low-carbon reproduction contin-
uously improve efficiency and achieve the carbon emission reduction target per unit product. Complete production strengths and process control of the factory
Select key products and check the carbon footprint of products according to relevant standards; continu- Quality stability of PCRs GRS certification ISCC Plus certification etc.ously improve and refine emission reduction work; and regularly make them public.A complete range of control procedures and systems for production capacity and process stability
Establish a green procurement mechanism and a carbon emission management system for the supply
chain to promote the realisation of the emission targets of the supply chain. Properties and quality stability of finished products; a strict control monitoring system
Establish low-carbon solutions covering the entire value chain accelerate the overall emission reduction of
the industry and cooperate with the entire industry chain to verify the carbon footprint of the product life-
cycle and continuously reduce emissions. Future planning
Insight into the future low-carbon development trend and advanced arrangements for material solutions certification
requirements etc.Cooperation with the customers for joint development truly helping the customers achieve the goal of carbon reduction
37 38Kingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
Impact Risk and Opportunity Management Green Low-carbon and Circular Matrix
The Company has established systematic climate-related risk and opportunity management processes covering Service Dimension Core Capabilities Value Created for Customers
identification assessment and monitoring to help enhance resilience in the face of climate-related risks while also
uncovering potential value and opportunities in its business.Based on a database of 20000+ material grades Enhance the circular value of customers' prod-
match the optimal recycled bio-based or lightweight ucts throughout the entire lifecycle and reduce
solution for products of customers. the future compliance risks of these products.Help customers accurately quantify the envi-
Climate-related Risk and Opportunity Management In response to customers' product structures pro-pose modified design recommendations that facili- ronmental declarations of their products and
Processes of the Company tate disassembly single-material composition and respond to compliance requirements such as
ease of recycling. the EU CBAM.Provide cradle-to-gate product carbon footprint ac- Significantly improve the degree of alignment in customers' material selection and provide
Identify the impacts of the Company's activities on the environmental and climate change including Green design counting services in accordance with ISO 14067 and identify emission reduction hotspots. quantitative calculation support for the envi-
greenhouse gas emissions; ronmental benefits of new products.Intervene at the early stage of customers' product de-
Collect external environmental data including changes in policies and regulations market trends technological velopment and design covering the entire chain from Shorten customers' material selection cycle
Identification material selection and manufacturing to recycling. by more than 50% ensuring that both perfor-
and analysis developments and other factors and forecast their potential impacts on the Company's operations. mance and carbon footprint meet standards.Apply climate scenario analysis to simulate the Company's exposure to corresponding physical risks and
transition risks under different climate scenarios and assess the resilience of the Company's strategy under each
scenario. Build low-carbon and high-efficiency equipment to Improve production efficiency and reduce
establish integrated production lines develop online manufacturing costs per unit product to
intelligent sensing technologies create a digital da- deliver considerable economic benefits;
tabase of modified materials build digital factories cut product carbon footprint during the
Based on the identified information conduct in-depth assessment through qualitative and quantitative increase per-machine production capacity reduce manufacturing process achieve remarkable Low-carbon
Assessment the defective rate enhance product batch stability ecological and environmental benefits and analysis and analyse the severity of risks and the potential value of opportunities; manufacturing
and and effectively reduce manufacturing costs. form an exemplary demonstration effect.prioritisation Prioritise climate-related risks and opportunities based on factors such as likelihood of occurrence de-
gree of impact and management costs.High-value recycling cost reduction and
Mixed plastics: Develop a multi-variety coupled efficiency enhancement: Customers can
targeted dissolution technology to achieve ef- process mixed waste plastics that are tradi-
ficient separation and high-value recycling of tionally difficult to recycle efficiently obtain
Regularly monitor changes in the external environment to ensure timely identification and tracking
Monitoring mixed plastic components with a recycling rate of high-purity recycled materials and signifi-
and of climate-related risks and opportunities adjust strategies based on monitoring results to respond ≥ 95% breaking through the bottleneck of tradi- cantly reduce raw material procurement
improvement promptly to the impacts of external environmental changes or internal operational adjustments and tional physical sorting and capable of processing and waste disposal costs.regularly review and optimise the management processes for climate-related risks and opportunities. a variety of composite packaging materials. Large-scale biological recycling intelligent
Biological recycling: Complete the industrial de- operation and maintenance: Achieve adap-
sign for a 100-tonne-scale intelligent enzymatic tive control of process parameters reduce
hydrolysis and develop full-process digital engi- manual intervention and improve the
neering software. throughput and operational efficiency.The Company has fully integrated climate factors into operational decision-making and focusing on the three Green packaging: Focus on the substitution Green packaging compliance low-carbon
dimensions of green product innovation green production optimisation and green office practices continuously
Recycling and with green raw materials for express packag- substitution: Improve the utilisation rate of
enhanced the capability to respond to climate change while reducing the Company's own operational carbon reuse ing and product eco-design develop pulse bio-based packaging materials and their re-
ultra-high-pressure continuous plasticisation cycled materials comply with EU regulatory
footprint and empowering the green transition of the industrial chain. technology for bio-based packaging main mate- requirements reduce product carbon foot-
rials and their recycled materials and realise the print and enhance the brand's green image.substitution with green packaging materials. Internationally authoritative certification
Chemical recycling: For mass-produced chemical traceable circularity: Customers can lawfully
Green Product Innovation recycling projects incorporate modified materials declare the proportion of recycled content
to raise the recycled content of final products above and bio-based sources achieve traceability of
30% comply with EU regulations on recycled mate- fossil carbon and biogenic carbon and meet
The Company deeply integrates green and low-carbon principles into the entire lifecycle of product development rial ratios and obtain third-party certification. the requirements of premium brands and the
of customers. The Company not only provides environmentally friendly materials but also stands shoulder to EU CBAM.shoulder with customers to jointly address systemic challenges such as regulatory compliance carbon reduction
commitments and consumers' green preferences. Through the four-in-one model of "green design + low-carbon Provide a basis for the traceability of custom-
manufacturing + recycling and reuse + certification support" the Company helps customers transform sustainable Assist customers in completing the material-level ers' recycled materials shorten customers' documentation and testing required for certifica- certification cycle from an average of 18
development from a cost burden into a competitive advantage enabling the carbon reduction value of every tonne Certification tions such as GRS ISCC PLUS FDA and RecyClass. months to 6-9 months and enable them to
of material to be quantified recognised and acknowledged by the market. support gain an early market advantage.
39 40Kingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
Core Carbon Reduction Pathways for Green Products Product Lightweighting Helps Improve Energy Efficiency across the Industrial Chain
In response to the needs for vehicle lightweighting and battery safety the Company has built a full-chain
energy efficiency improvement system through technological innovation and product upgrades.Functional plastics Steel-plastic composite underbody shields: Horizontally expanded to fit six vehicle models with cumulative
Bioplastics Recycled plastics deliveries exceeding 300000 sets; through the Company's self-developed rapid compression moulding (aesthetic design lightweight process shortened the moulding cycle by more than 30% increased the annual production capacity of the
(bio-based and biodegradable) (PCR and PIR) design and replacing steel production line to 350000 units and reduced the energy consumption per unit product by 22%.with plastics) Battery pack protection for new energy heavy-duty trucks: Adopted thermoplastic composite panels
improving impact resistance by more than 60% and reducing weight by 40% compared with traditional
Green aluminium panels with driving range extended by more than 15%; through the innovative integration of
mobility a paint-free moulding process reduced VOC emissions per vehicle by approximately 3.2 kg cumulatively
solutions helping customers reduce carbon emissions by approximately 21000 tonnes.Green Product Innovation Achievements of the Company System-integrated lightweighting upgrade: Established a collaborative design platform for lightweight
structures processes and performance achieving an upgrade from "single-component substitution" to
"system-integrated lightweighting"; compared with traditional metal solutions reduced the overall weight
by 35% using the system-integrated solution cumulatively helping customers reduce carbon emissions by
Recycled Plastics and Bioplastics Build a Matrix of Low-carbon Materials approximately 23000 tonnes.In response to the needs of unmanned aerial vehicles for long endurance and high payloads the Compa-
ny launched high-performance fibre-reinforced composite material solutions.Launched a composite low-carbon material combining bio-based materials and post-consum- Product expansion: Horizontally expanded carbon fibre tubing and propeller blade products with cumula-
er recycled materials for the first time in automotive interior parts significantly reducing carbon
Weight tive deliveries of 500000 pairs of carbon fibre propeller blades and 350000 carbon fibre tubes.emissions.reduction Process and energy efficiency optimisation: Independently developed a rapid compression moulding
Developed a special bumper material containing 25% recycled materials achieving the large- and extended
endurance process for irregular-shaped parts with hot in/hot out processing reducing the moulding cycle by 25% and scale application of recycled materials in spray-painted core components while meeting the
solution for the lowering energy consumption per unit product by 25%; compared with traditional metal/nylon solutions re-stringent performance requirements for automotive exterior parts. low-altitude duced the overall weight by 30% using the system-integrated solution increased propeller blade lift efficien-
Recycled Successfully developed food-grade recycled materials solving the challenges of performance economy cy by 32% and extended whole-vehicle endurance by 28% cumulatively helping customers reduce carbon
plastics and appearance stability when recycled materials are used in food packaging and became the emissions by approximately 16000 tonnes.preferred raw material for leading customers in the packaging industry.Innovatively recycled and reused discarded cable sheathing achieving large-scale mass pro- In response to the cold chain transport industry's needs for fuel economy and freight efficiency the
duction for leading international customers and enabling waste resources to regain their value. Company provides low-carbon transport system solutions.Cold chain Thermoplastic liner composite panels: Compatible with mainstream vehicle models such as 9.6-metre re-
logistics frigerated semi-trailers reduced the weight of each vehicle by up to 500 kg and achieved a weight reduction
lightweighting
and carbon of over 35% compared with traditional metal skins while reducing fuel consumption per vehicle by 15 litres
reduction per 100 kilometres; effectively reduced refrigeration power consumption by 18% using the material's low
Launched soft toy materials with a bio-based content of over 40% with performance comparable solution thermal conductivity cumulatively helping customers reduce carbon emissions by over 2 million tonnes.to petroleum-based materials but safer and more child-friendly for infants and young children and
also greener and more environmentally friendly.Developed bio-based high-temperature-resistant materials which with characteristics such as
being green and low-carbon and having excellent performance were widely used in new energy Case Becoming a Technology-leading Benchmark in the Consumer Electronics Industry
vehicles and consumer electronics products.Launched bio-based elastomer materials featuring low density high resilience and other In green and low-carbon solutions the consumer electronics industry represents the advanced direction of the
characteristics which were widely used in fields such as footwear materials and sports equipment Company's sustainable development. Consumer electronics products are characterised by small size thin walls and
making sports gear lighter and more environmentally friendly. stringent appearance requirements placing far more demanding requirements on material flowability mechanical
Bioplastics Launched a fully bio-based paper-based laminated PBS material combining food contact safety properties and surface quality than industries such as automobile and packaging. The Company has taken the lead in
with home-compostable biodegradation properties perfectly compatible with existing PE production achieving technological breakthroughs in this field driving extensive applications across other industries.equipment and supporting the green and low-carbon transformation needs of food packaging.Self-develope high-performance bamboo powder-modified biodegradable plastic featuring low Amid the global AI PC wave the Company provides leading customers with environmentally friendly material solutions
density easy processing and complete biodegradability while significantly reducing carbon emissions and such as PFAS-free flame-retardant reinforced PC balancing lightweight and thin product design with low-carbon
cutting energy consumption with performance comparable to traditional PBAT and PLA and effectively
implementing the national green industrial upgrading strategy of "replacing plastic with bamboo". compliance across the supply chain while also providing precise carbon footprint calculation services for the industrial
chain and building an end-to-end green material supply system.
41 42Kingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
Case Automotive Lightweighting Energy Efficiency Enhancement Solution Case The Company Debuted at COP30 to Showcase Green and Low-carbon New Material Solutions
In response to the automotive industry's core needs for lightweighting fuel economy and electric vehicle range the Company's In 2025 the 30th United Nations Climate Change Conference (COP30) was held in Belém Brazil. Academician Li Jianjun of the Company was
modified materials sector focuses on core products such as long fibre-reinforced thermoplastics (LFT) building a full-chain invited to deliver a keynote speech at the UN Press Briefing Room themed "Green and Low-carbon New Material Solutions to Support the
energy efficiency solution from material R&D to system application: Sustainable Development of the Industrial Chain" demonstrating to the world the Company's innovative practices in green transition. Acade-
mician Li systematically introduced the Company's carbon strategy released in 2021 which is by 2030 reducing greenhouse gas emissions per
1. Large-scale delivery and market coverage unit product by at least 30% compared with 2022 advancing the circular economy objective of achieving "one million tonnes in three fields"
and realising full carbon neutrality before 2060.In 2025 the production and sales volume of the Company's LFT products both reached approximately 100000 tonnes. Such
products were widely used in core automotive structural components covering key parts such as instrument panel frames Through breakthroughs in intelligent sorting of waste plastics high-quality recycling and high-value utilisation technologies combined with the
front-end modules shrouds engine covers engine underbody shields and battery trays. R&D of bio-based materials and lightweight structural design the Company has built a multidimensional whole-chain green carbon reduction
2. Lightweighting and energy efficiency improvement results system. Relevant products have obtained multiple internationally authoritative certifications including GRS ISCC PLUS and FDA.
Through material innovation and structural optimisation LFT products achieved a parts weight reduction of approximately During the conference the Company's delegation actively participated in a series of side events and bilateral exchanges engaging in in-depth
20% while some core components (such as front-end modules) achieved weight reductions of up to 40-50% compared with discussions with international partners including government authorities of relevant countries international organisations automotive brands
traditional sheet metal parts. Lightweighting solutions directly reduced vehicle operating energy consumption significantly and electronics and electrical brands. This laid a solid foundation for expanding overseas green business and promoting international coordi-
lowered fuel consumption per 100 kilometres for fuel vehicles effectively increased the driving range of electric vehicles and nation of technical standards demonstrating the innovative leadership and responsibility of Chinese enterprises in global climate governance.reduced carbon emissions throughout the lifecycle.
3. Process and technological innovation
Efficient moulding technology: Through optimisation of compression moulding processes and upgrading of material
formulations the moulding cycle was shortened production efficiency was improved energy consumption per unit product
was reduced while ensuring the dimensional accuracy and mechanical performance of parts.Collaborative design platform: By building collaborative design capabilities integrating materials structures and processes
the Company upgraded from "single-component weight reduction" to "system-integrated energy efficiency enhancement".Through optimisation of overall solutions the Company maximised the overall vehicle energy efficiency. Li Jianjun Attended COP30 on Behalf of the Company and The Company's Sustainable Development Team Spoke and Delivered a Speech at the UN Press Briefing Room Exchanged Views at a Series of Side Events during COP30
Typical Application Cases
Instrument panel Use GFPP materials to reduce weight by approximately 10% enhancing vehicle handling and energy
frames efficiency
Front-end modules Replace metal with GFPP to reduce weight by 40–50% balancing stiffness and lightweight requirements
Shrouds Use PP-LGF materials to reduce weight by 15–20% optimising the energy efficiency of the cooling system
Academician Li Was Invited to Attend the Plastics Summit – Academician Li and the Company's Sustainable Development
Engine covers/ Use GFPP materials to reduce weight by 15% and 20% respectively reducing energy consumption and Global Event 2025 Held in Portugal and Delivered a Keynote Team Participated in and Exchanged Views at the China
underbody shields noise Speech on the Green Transition of the Plastics Industry Pavilion of the United Nations Climate Change Conference
Battery trays Replace metal to reduce weight by 20% improving the integration efficiency and safety of battery packs
Case Integration of Environmental and Low-carbon Standards into Bio-based Material Design of the Company
Case Empowering High-efficiency Lighting with LED Material Technology Leveraging the advantages of biomanufacturing technology in the green and low-carbon field the Company actively deploys synthetic bio-
technology to produce bio-based monomers using renewable biomass as raw materials thereby reducing dependence on fossil resources
at the source.The Company has deeply cultivated the LED lighting materials field and through joint development with customers
launched thinner more durable high-performance materials thereby improving the energy efficiency and lifespan of lighting During the R&D of related technologies and processes the Company strictly follows international standards such as ISO 14064-3:2019
products from the materials end. Greenhouse gases - Specification with guidance for the validation and verification of greenhouse gas assertions ISO 14067:2018 Green-
house gases - Carbon footprint of products - Requirements and guidelines for quantification ISO 14040:2006 Environmental management -
The independently developed high-fluidity materials enable LED supports to be made thinner and more precise. Life cycle assessment - Principles and framework and ISO 14044:2006 Environmental management - Life cycle assessment - Requirements
High-weather-resistance materials increase the illuminated lifespan of LED lamp beads by 10% making lighting products more and guidelines systematically integrating carbon reduction performance and bio-based content indicators into the design of new products
energy-efficient and more durable. and new technologies. This ensures that the low-carbon attributes of products across the entire life cycle are quantifiable and traceable
delivering green and low-carbon material solutions for downstream customers.
43 44Kingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
Green Production Optimisation Indicators and Targets
The Company continues to advance the optimisation of green production comprehensively implementing energy-saving tech- To actively respond to the "dual carbon" goals the Company has formulated emission reduction and carbon neutrality targets
nological transformation measures across the modified plastics new materials and green petrochemicals sectors and effectively based on the positioning and strategy established monitoring indicators such as greenhouse gas emissions continuously
reducing production energy consumption and carbon emissions through process upgrades and equipment renewal. At the same strengthened emission reduction management and steadily enhanced the Company's low-carbon development level.time the Company actively expands the use of clean energy accelerates the construction of photovoltaic projects in factory areas
increases the proportion of green electricity application and produces and utilises hydrogen energy thereby driving the low-car- Greenhouse gas emissions were verified by SGS-CSTC Standards Technical Services Co. Ltd. (SGS) in accordance with ISO 14064-
bon transition of the entire production process with a cleaner energy mix. For details please refer to the section "Energy Usage". 3:2019 and met the requirements of ISO 14064-1:2018 with a verification statement issued. The greenhouse gas emissions
verification results showed that the Company's 2025 greenhouse gas verification covered the headquarters and 18 sites in
The Company and its subsidiaries have actively carried out the construction of green factories and created a "green factory" man- mainland China across the modified plastics green petrochemicals new materials and healthcare sectors representing an
agement model. From six modules namely infrastructure management system energy and resource inputs products environ- increase of one site compared with 2024 namely Liaoning Kingfa Biomaterials. During the reporting period the total greenhouse
mental emissions and environmental performance they have promoted green manufacturing and sought solutions with both gas emissions of these 18 sites (Scope 1 + Scope 2 + Scope 3) amounted to 17618371.59 tonnes of CO2 equivalent. The carbon
environmental and production benefits. As of the end of the reporting period the Company has passed the national green factory emission intensity per unit product of domestic modified plastics (Scope 1 + Scope 2) was 0.1305 tonnes of CO2 equivalent with a
certification. Ningbo Kingfa Wuhan Kingfa Kingfa Biomaterials Tianjin Kingfa and Kingfa Recycling have all been included in the list decrease of 29.32% compared with 2022.of national green factories.Type Greenhouse Gas Emissions (Unit: Tonnes of CO2 Equivalent)
Scope 1 direct emissions 975816.39
Case Training Activities for Greenhouse Gas Internal Verifiers Scope 2 indirect emissions 2158935.39 (location-based)
Scope 3 other indirect emissions 14483619.81
To effectively respond to the requirements of stakeholders such as customers (1) Scope 1: Direct greenhouse gas emissions specifically including activities within the operational boundary such as fuel combustion by fixed equipment required for
regulators and investors implement the Company's carbon strategic objectives production fuel combustion by transport vehicles raw and auxiliary material processing fugitive emissions from refrigeration equipment and emissions from septic
tanks in the factory area.enhance the Company's management of greenhouse gas emissions and (2) Scope 2: Indirect greenhouse gas emissions from imported energy specifically including electricity and steam provided from outside the organisational boundary.improve the professional capabilities of internal verifiers the Company invited (3) Scope 3: Other indirect greenhouse gas emissions. The verification scope in 2025 was more comprehensive specifically including Category 1 Purchased goods and
an international third-party certification body to conduct a two-day ISO 14064 services Category 2 Capital goods Category 3 Fuel- and energy-related activities (not included in Scope 1 and Scope 2) Category 4 Upstream transportation and distribu-
Training Kick-off Meeting Site
Greenhouse gas management internal verifier training at its Guangzhou tion Category 5 Waste generated in operations Category 6 Business travel Category 7 Employee commuting Category 9 Downstream transportation and distribution Category 12 End-of-life treatment of sold products and Category 13 Downstream leased assets.headquarters. After the training 40 trainees passed the assessment and obtained (4) The total number of sites included in the statistics for carbon emission intensity per unit product of modified plastics remained the same as in 2022-2024 including the
the SGS-issued ISO 14064-1:2018 Greenhouse Gas Internal Verifier Training certificate. The training participants mainly included headquarters and 11 sites of the modified plastics sector within China (including recycled plastics) and the emissions data were all verified by an independent third-par-
liaison personnel for carbon emissions inventory at each base and other personnel related to greenhouse gas management. ty institution.Strategic "Carbon" Target of the Company
Green Office Practices Medium-term targets
The Company has formulated the Management Regulations for Management of Energy Consumption in Offices and Living advo- Compared with 2022 the greenhouse gas emissions per unit of products will be reduced by at least 30% by 2022
on a year-on-year basis.cating actions such as electricity and water conservation in daily work implementing green office initiatives and encouraging its Produce 1 million tonnes of green plastics recycle 1 million tonnes of waste plastics and produce 1 million
employees to practise a low-carbon lifestyle. tonnes of recycled plastics by 2030.Green Office Initiatives of the Company
Long-term target
Utilise environmentally friendly air conditioners for night cold storage set temperature zoning during operation activate The Company will realize complete carbon neutrality by 2060.door closure reminders and suspend operation during rest periods.Adopt group linkage control for elevators formulate reasonable start-stop schedules based on passenger flow and reduce
unnecessary empty elevator operation.Use energy-efficient computers printers and other equipment and strengthen the maintenance and management of light- Progress on 2025 Strategic "Carbon" Target of the Company
ing and air-conditioning systems.Promptly adjust when to turn on and off the street lights and lighting devices according to seasonal changes. Indicator Unit Progress in 2025
Develop an online process approval system and an online procurement platform for office supplies encourage a paperless Carbon emission intensity per unit product of domestic tonnes of CO2 equivalent/tonne
office and avoid unnecessary paper waste. modified plastics (Scope 1 + Scope 2) of product 0.1305
Post water-saving and energy-saving signs carry out environmental protection publicity and training knowledge competi- Production of green plastics1 10000 tonnes 30.94
tions and other activities and foster a positive atmosphere for energy saving and consumption reduction. Recycling of waste plastics 10000 tonnes 27.20
Strictly comply with waste sorting and disposal regulations and classify and label the waste bins.Production of recycled plastics 10000 tonnes 37.90
Note 1: Green plastics is a collective term for biodegradable plastics and bio-based materials.
45 46Kingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
Energy Usage Strategy
During the Company's operations energy consumption mainly comes from production equipment and daily office The Company identifies risks and opportunities related to energy usage formulates energy management strategies
work involving energy types such as electricity natural gas coal water slurry steam diesel etc. and provides direction at the top level for the subsequent establishment of the energy management system and the
promotion of energy-saving projects.Energy Usage Types and Processes of the Company
Analysis of Energy Usage Risks and Opportunities of the Company
Energy Type Usage Process
Electricity Electricity consumption by production equipment daily office operations Major Risk/
Opportunity Specific Description Scope of Impact Financial Impact
Natural gas Utilities equipment in the manufacturing department factory canteen
As a new chemical materials enterprise with high
Coal water slurry Utilities equipment in the manufacturing department energy consumption energy costs such as electricity
steam and natural gas account for a relatively high
Steam Reaction unit heat tracing proportion of the Company's operating expenditure.Policy risk As the country advances its "dual carbon" goals Short and medium Increased operating
Diesel Limited use in vehicles forklifts standby generators etc. market-driven fluctuations in energy prices as well as
term costs
possible policies such as tiered electricity pricing and
carbon tax will directly drive up production costs and
squeeze profit margins.Governance Resource efficien- Implementing energy-saving technological upgrades
cy opportunities adopting clean energy and efficient energy technol- Short medium and Reduced operating
The Company strictly complies with laws and regulations such as the Energy Conservation Law of the People's Republic energy sourcing ogies can improve corporate energy efficiency and long term costs
of China and the Renewable Energy Law of the People's Republic of China and has established an energy management opportunities reduce operating expenses.architecture of "General Manager's Office - Energy Management Centre - management teams at each base" and
formulated systems such as the Handbook of Energy Management Post Responsibilities and the Measures for the
Performance Assessment of Energy Management to standardise energy management and promote green transition."Four-in-One" Energy Usage Strategic Framework of the Company
Energy Management Architecture of the Company
Strategic leadership Data foundation
L1: Decision-making
level of the Company General Manager's Office
Used the Energy Management Centre as the engine Achieved a closed loop of "collection - analysis –
Responsibilities of the decision-making
level: Led by senior executives with the to drive the implementation of the low-carbon optimisation" for data management
participation of the persons responsible Director of the Energy Management Centre intelligent strategy
at each base and department directors Unified data standards and comprehensively
it is responsible for decision-making on Incorporated the dual carbon strategy into the monitored electricity water gas coal water slurry etc.major matters and resource support. Group's five-year plan
L2: Operational man- Built an energy data warehouse for the entire GroupData and Implementation
agement level Planning and Incorporated energy conservation and emission
Strategy Group Technology and Execution Group Group reduction targets into the KPI assessment systemResponsibilities of the operational
management level: It is responsible for
the organisation and implementation
of day-to-day energy management
with subordinate groups including the
Planning and Strategy Group Data Planning Data Monitoring Technology Training and
Management Group Monitoring and and Management and Control Optimisation Compliance Strategy Group Group Group Group Established an energy management system Conducted technological innovation and promoted Control Group Technology Optimisa-
Issued the Measures for the Performance Assess- efficient facilities and equipment to improve tion Group and Training and Compli-
ance Group. ment of Energy Management efficiency and reduce emissions
L3: Site execution
level Each Site Ensured target refinement and deviation correction
Optimised equipment operation with the help of
intelligent sensing edge computing and digital twins
Responsibilities of the execution Established an Energy Conservation Award Fund
level: It is responsible for the energy Implemented intelligent upgrades in phases to
management of the sites implement- achieve dynamic optimisation
ing energy-saving measures optimis- Energy Management Engineers Energy-saving Technological
ing energy use and reducing energy Transformation Engineers
consumption. Institutional safeguards Technology empowerment
47 48Kingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
The Company has formulated four core action pathways to establish a closed-loop energy management pathway Impact Risk and Opportunity Management
of "green transition - lean consumption reduction - intelligent balancing - strategic procurement" systematically
reducing energy consumption and carbon emission intensity. The Company has established systematic management processes for risks and opportunities in energy usage covering
model development target setting inspection and improvement. Through data-driven energy efficiency diagnostics
Four Action Pathways for Energy Management of the Company and a closed-loop control mechanism the Company continuously identifies potential for energy saving ensures the ef-
fective achievement of energy performance targets and promotes the steady improvement of energy usage efficiency.Energy Usage Risk and Opportunity Management
Processes of the Company
Pathway Target Specific actions
Establish a Set Compile actual Develop
management management performance Identify
model targets data energy waste
recovery
measures
Comprehensively promote the
large-scale development of Establish an Formulate Collect metering Identify energy Formulate
Green Transition Significantly increase the photovoltaics energy con- annual and data and conduct gaps conduct energy-saving
- Accelerating the proportion of green electricity
Deployment of Clean and build a diversified and Deepen the application of sumption mod- monthly energy energy balance diagnostic opti- initiatives and
Energy resilient energy system "photovoltaics + energy storage" el including a usage plans as calculations misation detect implement
factory model well as require- energy waste energy-saving
Ensure efficient and secure access and an indicator ments for the and identify actions
system construction energy-saving
renovation and directions
expansion of
Implement energy budget man- energy facilities
agement
Establish a long-term en- Promote the implementation of energy-saving technological In 2025 the Company systematically advanced energy-saving technological transformation projects across all business Lean Energy
Consumption ergy-saving mechanism to
Reduction - Deepening achieve a steady decline in
transformation projects based on sectors continuously reducing production energy consumption around key processes such as equipment upgrades
energy consumption per RMB energy auditsEnergy Efficiency process optimisation and energy recovery and consolidating the foundation of green manufacturing.
10000 revenue Continue to phase out inefficient
equipment optimise production
processes and improve overall Energy-saving Technological Transformation Initiatives and
energy usage efficiency Key Projects of Each Sector of the Company in 2025
Current stage - data foundation
Achieve multi-energy collab- building
Intelligent Balancing
- Optimising System oration moving from manual Medium-term stage - platform
Chengdu Kingfa's energy-saving lighting retrofit
Operations data governance to intelligent establishment project involved an investment of RMB 700000
optimisation Long-term planning - intelligent with estimated annual electricity savings of 794000
optimisation kWh and a payback period of only 0.9 years; the
A key focus of energy-saving extruder insulation cover project was rolled out
technological transformation comprehensively with an investment of RMB
projects accounting for 56% of 500000 and annual electricity savings of 500000 kWh. The above projects could reduce carbon
Keep pace with electricity mar- the total number of projects
ket policies and optimise power mainly concentrated on lighting
emissions by a total of approximately 686.60 tonnes
procurement strategies Modified system retrofits equipment en- of CO2 equivalent
1 per year.
plastics sector
Actively participate in green elec- ergy-saving optimisation and Maximise the use of market process improvements. Jiangsu Kingfa's energy-saving optimisation project Strategic Procurement - rules to reduce overall energy tricity trading and demand-side for the Roots blower feeder involved an investment Reducing Energy Costs costs response of RMB 500000 with estimated annual electricity
Integrate energy storage with savings of 432000 kWh and a reduction in carbon
production scheduling to maxi- emissions of approximately 229.22 tonnes of CO2
mise the benefits of peak-valley equivalent1.electricity price differentials
Note 1: The carbon emission factor used to calculate emission reductions was 0.5306 kgCO2e/kWh.
49 50Kingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
Case Kingfa Biomaterials' Energy-saving Technological Transformation Significantly Improved Capacity Utilisation Rate
Kingfa Biomaterials through comprehensive measures such as continuously optimising production processes advancing the
automation upgrade of equipment and increasing the use of new energy focused on breaking through capacity bottlenecks in
Tianjin Kingfa's dryer energy-saving improvement production processes thereby achieving a comprehensive improvement in resource utilisation efficiency and production performance.project involved an investment of RMB 320000 with During the reporting period the capacity utilisation rate of Kingfa Biomaterials' major biodegradable material products increased
estimated annual electricity savings of 650000 kWh
and a reduction in carbon emissions of approximately substantially overall production efficiency increased by more than 40% and energy consumption per unit product decreased by more
344.89 tonnes of CO equivalent1. than 30%. The specific improvements in product capacity utilisation rates are as follows:2
PBAT resin PLA resin PBS resin (including PBST)
Focus on energy savings in pro- Jiangsu Kingfa's extruder electricity-saving project was
duction processes and improving expected to save 300000 kWh of electricity annually Capacity utilisation rate increased Capacity utilisation rate increased Capacity utilisation rate increased
equipment efficiency mainly through variable-frequency retrofitting and reduce from 77% in 2024 to 102%. from 27% in 2024 to 51%. from 37% in 2024 to 51%.involving energy-saving upgrades carbon emissions by approximately 159.18 tonnes of
New materials to key equipment such as extrud- CO2 equivalent1.sector ers and dryers. In terms of clean energy utilisation the Company adheres to the concept of green development continuously optimises the en-
Zhuhai Vanteque Specialty Engineering Plastics ergy structure actively explores and vigorously applies clean energies such as solar energy wind energy and hydrogen energy
replaced the original equipment's oil temperature
heating and electric heating with electromagnetic promotes its substitution of traditional fossil energy constantly increases the proportion of clean energy to total energy con-
heating with estimated annual electricity savings of sumption and gradually constructs a green low-carbon sustainable energy system. To further deepen carbon reduction prac-
474200 kWh and a reduction in carbon emissions of tices the Company actively promotes green electricity substitution in the manufacturing process of various production bases.
approximately 251.61 tonnes of CO2 equivalent1. In 2025 the proportions of green electricity used by Qingyuan Meijin Liaoning Kingfa Biomaterials Zhuhai Vanteque Specialty
Engineering Plastics and Zhuhai Kingfa Biomaterials reached 100% 62% 53% and 19% respectively with cumulative annual
purchases of green electricity reaching 70.151 million kWh.Case Turning Waste into Value Hydrogen Energy Driving Green and High-Quality Development
Ningbo Kingfa possesses high-quality by-product hydrogen resources. Relying on two 600000-tonne-per-year propane dehydrogenation
Focus on energy-saving retrofits Ningbo Kingfa's extruder electricity-saving (PDH) units it carries out resource-based purification and efficient utilisation of hydrogen-rich tail gas by-produced from the units converting
of large-scale equipment and retrofit project saved 12.772 million kWh of
system-level upgrades with rela- electricity annually reduced carbon emissions by
low-value industrial by-product tail gas into high-value-added clean energy.tively high project investment but approximately 6776.82 tonnes of CO2 equivalent
equivalent to 1569.68 tonnes of standard coal In 2025 Ningbo Kingfa's resource-based utilisation of by-product hydrogen exceeded 18000 tonnes and the purity of its high-purity hydrogen Green
petrochemicals significant energy-saving results. (conversion factor: 0.1229 kgce/kWh). products consistently reached 5N grade (99.999 vol%). Through the recycling and reuse of industrial tail gas it effectively unlocked the value
sector of waste resources and provided stable green energy support for the region's low-carbon transition. On the premise of prioritising internal
production and self-use needs the Company actively promoted the nearby "over-the-wall supply" model. Leveraging diversified delivery
methods such as pipeline transmission and vehicle transportation Ningbo Kingfa steadily supplied gas to surrounding industrial enterprises
and the hydrogen energy transport sector continuously improving the regional resource recycling and collaboration system and building an
intensive low-carbon and efficient energy recycling network.The energy-saving retrofit project for Kingfa Medical's With tail gas resource utilisation as the starting point Ningbo Kingfa continuously advanced energy-saving carbon-reduction and resource-
high-efficiency air-source high-temperature heat pump recycling transformation maximising the utilisation efficiency of by-product resources and reducing pollutant and waste gas emissions.G r i d l oa d o pt i m i s at i o n wa s could reduce natural gas consumption per unit product By realising the value-added clean and large-scale application of "industrial by-product tail gas" it balanced business development with
a c h i e v e d t h r o u g h p o l i c y by 0.2 cubic metres. environmental governance steadily consolidated the foundation for green and low-carbon development and achieved synergistic gains in
recognition and preferential environmental and economic benefits thereby forming a practical and replicable model for the low-carbon upgrading of the petrochemical
electricity tari f fs while also Kingfa Medical's refrigeration cold thermal storage
focusing on waste heat recovery system successfully obtained recognition under the
industry the green and sustainable development of industry and comprehensive ESG governance.using "ambient heat energy" cold thermal storage electricity pricing policy of the
Healthcare from the workshop to replace Guangdong Provincial Development and Reform Performance in Clean Energy Utilisation of the Company
sector traditional heating. Commission enabling Kingfa Medical to enjoy the preferential electricity tariff for cold thermal storage and As of the end of the reporting period:
adopt off-peak electricity use saving approximately
RMB 900000 in annual electricity costs. The rooftop photovoltaic installed capacity reached In 2025 photovoltaic power generation was up to 83343300 kWh
68.543 MWp representing an increase of 250.33% compared with 2024
The capacity under construction was 48.746 MWp In 2025 the production of hydrogen-rich gas reached 16406.73
Note 1: The carbon emission factor used to calculate emission reductions was 0.5306 kgCO e/kWh. In 2025 the cumulative green electricity procure-2 tonnes and the production of high-purity hydrogen was 7814.79
ment reached 70151000 kWh tonnes
51 52Kingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
Indicators and Targets Strategy
The Company has set an energy usage target that "compared with 2022 energy consumption per RMB 10000 revenue The Company conducts water resource risk monitoring and assessment covering all production and operational
will be reduced by 25% by 2030". Each year annual targets are formulated based on the actual circumstances of processes formulates annual water resource management indicators and targets based on the identified risks and
each subsidiary to ensure that targets are decomposed at every level and to promote the continuous and in-depth develops targeted water conservation plans for all operating sites.implementation of energy conservation and carbon reduction efforts.Progress on 2025 Energy Usage Target of the Company Analysis of Water Resource Usage Risks and Opportunities of the Company
Indicator Unit Achievement Status in 2025
Major Risk/Opportunity Specific Description Scope of Impact Financial Impact
Comprehensive energy consumption per RMB 10000 tonnes of standard coal/RMB
revenue 10000 revenue 0.1250 The Company's production bases are widely
Water scarcity risk distributed and some factories may be located Short medium and Increased operating in areas facing insufficient water resource long term costs
endowment or seasonal water shortages.Usage of Water Resources
The main types of water sources used in the Company's production and operation processes are municipal water supply
and reclaimed water from outside the factory. The Company strictly complies with the Water Law of the People's Republic Impact Risk and Opportunity Management
of China and the Regulations on Water Conservation as well as other relevant national and local laws and regulations and
has established a sound management system and strengthened water resources management. The Company has built a proactive prevention and control model for "data-driven warning - hierarchical hazard
management - rapid emergency response - dynamic enhancement of capabilities" and adopted a series of
Governance management measures to effectively respond to water resource risks.The Company has established a three-level collaborative governance structure for the usage of water resources embedding
water-saving measures into the entire production process through refined operations and forming a closed-loop manage- Water Resources Management Measures
ment system from the strategic planning to the on-site operation and from the target formulation to the data traceability.Usage of Water Resources Management Structure and
Responsibilities of the Company
Perform risk assessment and analysis for water use; take corresponding management measures for different levels of risks.Establish a Water usage data monitoring system for monitoring water consumption and water quality in real time; find the
Strategy and Sustainability Committee of the Board of Directors anomalies and potential risks in water use through data analysis.Serve as the highest decision-making and supervisory body for water resources management
Establish an emergency response mechanism for water safety to ensure rapid and effective responses to water accidents.Be responsible for approving water resources strategies and water resources management
targets
Perform regular patrol inspections and equipment inspections to identify and resolve the potential risks in time.Decision-
making level General Manager Promote the use of water-saving equipment to reduce water consumption.Serve as the overall person in charge of water resources management
Carry out workshop renovation to promote the recycling of water resources.Management Break down and issue the annual water resources management targets and oversee
level the implementation of policies and key initiatives
Regularly conduct training on the safety of water use to increase the employees' awareness of water risks and their ability
to deal with the risks.Process Equipment Department Utilities System and heads of each factory
Execution level Serve as the implementing departments for water resources management Establish a water-saving incentive mechanism to encourage all employees to participate in
water-saving initiatives.Formulate and implement water resources management plans carry out wa-
ter-saving technological transformation and organise routine data monitoring and
equipment maintenance
53 54Kingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
Case Ningbo Kingfa Implemented a Substitution Project with Reclaimed Water from Outside the Factory to Gradually Raise the Usage Ratio of Reclaimed Water Waste Disposal
The first circulating water station of Ningbo Kingfa's utilities originally used industrial water as make- In strict compliance with laws and regulations such as the Law of the People's Republic of China on the Prevention
up water. In 2025 Ningbo Kingfa completed a reclaimed water substitution retrofit project introducing and Control of Environmental Pollution by Solid Waste the Company has formulated internal systems such as the
reclaimed water from outside the factory into the in-factory reclaimed water pipeline. By gradually Solid Waste Management Regulations the General Solid Waste Management System and the Hazardous Waste
increasing the proportion of reclaimed water and simultaneously optimising chemical dosing and Management System and relying on the Company's environmental management structure (see the section
blowdown processes the project achieved an annual reclaimed water substitution volume of 463600 "Environmental Compliance Management" for details) established a sound waste governance system to ensure that
tonnes while ensuring that the circulating water quality met the required standards. all types of waste are disposed of in a standardised harmless and resource-efficient manner.Case Kingfa (Vietnam) Vacuum System Water Reuse Project Significantly Reducing Main Waste Types and Disposal Methods of the CompanyWater Resources Consumption
Kingfa (Vietnam)'s centralised vacuum extraction system originally used three 37 Type Main Content Disposal Methods
kW liquid ring vacuum pumps (two in operation and one on standby) requiring a
daily replenishment of 120 tonnes of fresh water. Kingfa (Vietnam) added a chiller Scientifically and efficiently recycle the general industrial
and heat exchanger to the system changing the vacuum pump working water solid waste with recycling value.from direct discharge to recirculating cooling use. After the modification the sys- Circulating Cooling Use of Appropriately deliver certain general industrial solid waste Vacuum Pump Water
tem only needed to discharge two tonnes of wastewater per day and the water to thermal power stations and use advanced energy
General industrial solid waste conversion technologies for power generation realising the consumption reduction rate exceeded 98% significantly reducing water resource transformation from waste to energy.consumption and wastewater treatment costs and achieving an organic integra- Non-hazardous For those that really cannot be internally recycled strictly
tion of cleaner production water conservation and efficiency enhancement. Waste screen and entrust a third-party professional organisation
with corresponding qualifications for safe and standardised
disposal.Indicators and Targets
Domestic waste Collect and hand over to a municipal sanitation department
In 2025 the Company set a reduction target that "compared with 2025 water consumption per RMB 10000 revenue for disposal.will be reduced by 10% by 2030" for the usage of water resources formulated a detailed plan for the usage of water
resources clarified the relevant indicators and water-saving targets for each department and ensured the effective
implementation of water-saving actions. Laboratory waste liquid empty re-
agent bottles waste organic resin
waste catalyst oil sludge physico- Entrust external third-party organisations with professional
2025 Water Resource Usage Indicators of the Company Hazardous waste chemical sludge from the wastewater qualifications for properly disposing of the waste.treatment station waste spiky balls Recycle the steam generated after incineration of certain
waste molecular sieves waste engine hazardous waste by a third party.Indicator Unit Achievement Status in 2025 oil high-salinity mother liquor waste
mineral oil etc.Water consumption per RMB 10000 revenue tonnes/RMB 10000 revenue 2.42
55 56Kingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
The Company has formulated waste disposal processes to ensure that different categories of waste are standardised The Company carries out in-depth waste reduction and resource conversion initiatives across major production
and controlled throughout the entire process from classification and temporary storage to transfer and disposal. bases continuously tapping the potential of "turning waste into value" through process innovation equipment
upgrades and classified and graded recycling so as to minimise the volume of waste requiring end-of-pipe disposal
Waste Disposal Processes of the Company and promote the efficient circular use of resources.Case Ningbo Kingfa Carried out Comprehensive Governance Work on Hazardous Waste Reduction
In 2025 Ningbo Kingfa officially carried out comprehensive governance work on hazardous waste reduc-
General industrial tion effectively improving the level of hazardous waste management through the comprehensive optimis-
solid waste Hazardous waste ation of hazardous waste disposal processes and technical improvements.Identify the hazardous waste based on the Ningbo Kingfa Hazardous Waste Reduction Measures
Identify and judge that industrial solid waste corresponding identification standards With source reduction and resource Strengthen end-of-pipe treatment
is not included in the National directory of including the National directory of Hazardous recycling at the core reduce the to ensure compliant and
Hazardous Wastes or other identification Wastes the Technical Specifications on generation of solid waste controllable disposal
Identification standards for hazardous waste and is not Identification for Hazardous Wastes and
and judgement hazardous. the Identification Standards for Hazardous Wastes determine waste types and manage Optimise the use and management of catalysts Conduct extensive research and screening of end-
such waste by type. in PDH units conduct professional screening of of-pipe hazardous waste treatment teams carry
replaced spent catalysts recover and reuse the out comprehensive evaluations in terms of disposal
inert particles and ceramic balls therein realise the qualifications technical capabilities compliance
resource-based recycling of hazardous waste reduce records and service standards with the best candi-
When collecting the hazardous waste the generation of downstream hazardous waste and dates selected to ensure that the entire process of
equip with necessary collection improve resource utilisation efficiency. hazardous waste transfer transportation and dis-
tools packaging and temporary
Standardise the disposal process for waste posal is legal compliant standardised and orderly storage facilities and make sure that
the collection sites are close to the packaging bags from modified PP and PP units
and to effectively ensure that hazardous waste
After general industrial solid waste operation areas and do not affect or achieve resource-based recycling of waste packaging
disposal is safe controllable and in line with envi-
is generated collect such waste by ronmental standards.different types hand over waste to hinder the safe passage.bags through compliant sales avoid idle stockpiling
of waste and promote waste recycling.the relevant departments for unified In the process of hazardous waste
warehousing treatment and storage collection storage and management Implement drying treatment for sludge from
and set up environmental protection equip with appropriate labour wastewater treatment successfully reducing the
graphic signs. protection articles occupational hazard moisture content of sludge from 80% to as low as
Collection and 45% significantly reducing sludge weight effectively
storage Ensure that the storage places are
notification cards and other signs and
protective equipment. decreasing Ningbo Kingfa's overall generation of equipped with the facilities or measures hazardous waste and alleviating disposal pressure.for protection against rain leakage Equip centralised storage facilities or
scattering and loss and prohibit the places for hazardous waste with safety
hazardous waste and domestic mixing facilities or equipment according to the
hazardous waste with household waste. types and hazard characteristics of the
hazardous waste stored. Case Kingfa (India) Practised Waste Reduction and Resource Utilisation
Ensure that the storage plans and
facilities are safe reasonable and
feasible. In 2025 Kingfa (India) systematically advanced waste management in three main directions namely source re-
duction recycling and green substitution and achieved remarkable results.Strengthening the recycling of production scrap. Kingfa (India) established a regular recycling mechanism
Implement harmless disposal measures When transferred internally package to crush and recycle large head scrap generated during the production process with an average monthly re-for the disposal of general industrial
solid waste. the hazardous waste in good containers covery of 22 tonnes; carried out classified recycling of raw material packaging bags with an average monthly or packages to prevent leakage and recovery of 12 tonnes; and collected and reused floor sweepings with an average monthly volume of 700 kilo-
Strictly record the generation and pollution. grammes thereby maximising the conversion of production scrap into usable resources.storage conditions and regularly report
Disposal and such conditions and enter them into the Make declarations on the
transfer system. environmental supervision platform Promoting packaging recycling. To address the wear and tear of wooden pallets Kingfa (India) established and print hazardous waste labels in an in-house repair mechanism with an average of 300 pallets repaired per month effectively reducing the
Ensure that the relevant units and accordance with the regulations. generation of wood waste and easing the pressure of solid waste disposal.third-party disposal organisations are
qualified and draft emergency plans for Examine hazardous waste disposal units to ensure that they are qualified. Implementing green office substitutions. Disposable paper cups were fully replaced with ceramic tea cups environmental incidents. eliminating paper cup waste at source and achieving a green micro-transformation in office operations.
57 58Kingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
The Company has set a waste management target of "establishing a comprehensive waste classification and recycling Strategy
system and ensuring that compared with 2022 the recycling rate of industrial waste will increase to 60% by 2030". The
Company continues to advance refined waste management across major production bases regularly carry out special The Company actively identifies global trends in ending plastic pollution as well as market opportunities for promot-
initiatives for tracking evaluating and improving recycling rates and ensure the steady achievement of the target. ing the application of recycled materials both domestically and internationally. The Company adheres to a circular
economy development approach that advances both internally and externally supported by a mature product certi-
fication system and carbon emission reduction capabilities and promote the large-scale application of high-perfor-
2025 Waste Disposal Performance of the Company mance environmentally friendly recycled plastics in key sectors such as automotive electronics and electrical appli-
ances and packaging thereby supporting the green transition of the industrial chain.In 2025 the Company recycled 6506.39 tonnes of industrial waste with a recycling rate of 9.63%.The compliant treatment rate of solid waste and hazardous waste was 100%. Analysis of Circular Economy Risks and Opportunities of the Company
Major Risk/
Opportunity Specific Description
Scope of
Impact Financial Impact
Circular Economy The EU Carbon Border Adjustment Mechanism (CBAM) proposes to bring plastic products within its regulatory scope and more than 120 countries and regions worldwide have successively introduced Short and Increased
Policy risk plastic-related regulations or plastic taxes. If the recycled material content of the Company's exported medium compliance costs
The Company is committed to building a resource recycling system throughout the entire product lifecycle strictly products fails to meet the market access requirements of target markets the Company will face the risks of term
and reduced
increased tariff costs restricted market access and loss of international customers. operating revenue
adhering to the principles of reduction reuse and resource utilisation. Under the guidance of national policies and
standards such as the Opinions on Further Strengthening Plastic Pollution Control the Action Plan for Promoting the The national Action Plan for Promoting the Use of Recycled Materials clearly promotes the application of recycled materials in automobiles electronics and electrical appliances batteries textiles packaging
use of Recycled Materials and the Guidelines for Take-back of Waste Plastics the Company promotes the application and other fields and is supported by incentive policies. The Company has been deeply engaged in the
circular economy for many years with mature technical management and certification systems enabling
of recycled materials and continuously improve resource utilisation efficiency. the Company to respond rapidly to downstream customers' low-carbon transition needs and seize the
development opportunities in the green track.Governance International regulations have put forward requirements. For example the implementation of EU policies Short Market and regulations such as PPWR ELVR and the CBAM has brought clear opportunities to the recycled medium Increased
opportunity plastics industry. Global mandatory requirements on the proportion of recycled plastic content have and long operating revenueThe Company has established a full-chain circular economy management system covering green design recycling and treat- further widened the rigid demand gap for recycled plastics; local food-grade recycled material production term
ment cleaner production and high-value application. The Strategy and Sustainability Committee of the Board of Directors capacity in Europe and the United States is severely insufficient and the supply gap continues to expand.serves as the decision-making body for circular economy management while the ESG working group acts as the overall Enterprises with FDA/EFSA food contact certification and GRS certification qualifications can directly enter the core supply chains of the world's leading brands and obtain significant premiums. At the same time
coordination department to promote cross-departmental collaboration. Kingfa Environmental is specifically responsible for the 60%-80% carbon emission reduction advantage of recycled materials compared with virgin plastics
can effectively avoid CBAM costs while RCEP and the Belt and Road initiative have further opened up
implementing circular economy targets ensuring that strategic planning is effectively translated into practical results. opportunities for capacity and technology expansion into the Asia-Pacific and emerging markets.Circular Economy Management Structure and
Responsibilities of the Company Impact Risk and Opportunity Management
Decision-making level The Company has established a closed-loop system for resource recycling and regeneration from the production end
Strategy and Be responsible for reviewing the medium- and long-term strategic plan and annual targets for to the consumption end. Externally the Company proactively strengthens cooperation with external parties and le-
Sustainability the circular economy veraging technological innovation in the recycling of waste plastics works closely with all partners to jointly build a
Committee of the Make decisions on and approve major circular economy investment projects and key perfor- recycling system for waste plastics; internally the Company actively establishes a circulation mechanism for resourc-
Board of Directors mance indicators es used in production to realise the resource-based reuse of wastewater waste gas waste and leftover materials.Coordinating department
Promote relevant functions including R&D procurement production equipment and logistics to
implement circular economy requirements at all stages such as product design raw material pro- External Circular CooperationESG working
group curement and manufacturing clarify the specific responsibilities of each department under circu-
lar economy targets and establish a cross-departmental collaborative advancement mechanism Since 2004 the Company has been deeply engaged in the high-quality utilisation of waste plastic recycling and
has gradually established a complete closed-loop technological system covering the entire process from intelligent
identification of waste plastics automatic sorting green cleaning quality and lifespan grading cascade regeneration
Executing body to high-quality application. On this basis the Company has innovatively proposed the integrated and comprehensive
Kingfa Be responsible for implementing circular economy targets and ensuring that strategic plans are effectively translated into practical results solution of "making the best use of plastics" enhancing the recycling rate of plastic products through efficient Environmental recycling mechanisms converting waste plastics into new products or high-value resources and promoting the high-
quality application of recycled materials. The Company's environmentally friendly recycled plastics have been widely
used in industries such as packaging automobiles IT electronics electrical appliances home furnishing electrical
The Company has established an internal regular reporting system and an external information disclosure mechanism used power tools construction energy express delivery and others providing strong support for the green low-carbon
digital technology to achieve data traceability implemented internal monitoring covering the entire process and incorporat- circular transformation of the entire plastics industry chain.ed circular economy indicators into the performance appraisal system of relevant departments.
59 60Kingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
Integrated and Comprehensive Solution of "Making the Internal Recycling
Best Use of Plastics" of the Company
On the basis of actively expanding external circular economy collaboration the Company continues to strengthen the de-
velopment of its internal resource recycling system. Through the innovative application of advanced technologies and pro-
cesses the Company carries out efficient resource recovery and reuse of wastewater waste gas waste and leftover materials
Recycled plastics generated throughout the entire production process transforming potential environmental burdens into reusable resources
effectively improving resource utilisation efficiency and minimising the environmental impact of production and operations.In terms of packaging material management the Company has formulated the Bag Management Standards and has re-
Repeated use duced resource consumption and waste through measures such as optimising packaging material design reducing unneces-
sary packaging layers and material usage and implementing recycling.Fossil raw materials Production of fossil-based plastics
Consumption
Case Secondary Utilisation of Waste Packaging by Kingfa (Vietnam)
Biological raw Production of bio-
materials based plastics
In response to the local lack of processing technology in
Repeated use Vietnam for large packaging and paper-plastic bags and
Sorting the predicament that waste packaging can only be dis-Bioplastics posed of as hazardous waste Kingfa (Vietnam) actively
explored internal secondary utilisation pathways to real-
ise the resource utilisation of waste packaging. Specific
The Company has built three production bases of recycled plastics including Qingyuan Base Pizhou Base and Cuenca measures included:
Base which are situated in Guangdong Jiangsu and Spain respectively. The Company has built factories with a total area
of 0.31 million square metres seven production workshops of high-performance recycled modified plastics more than 70 Used large packaging for waste raw materials for the
highly standard production lines and seven production workshops for pretreatment of waste plastics with a high-quality transfer of production waste and packaging after
treatment capacity of 150000 tonnes of various waste plastics and an annual production capacity of more than 500000 crushing replacing the use of new packaging.tonnes of recycled plastics. The Company has created a refined recycling system developed more than 500 suppliers Flipped used small raw material packaging inside
of high-quality recycled plastics built more than 60 resource recycling outlets and constructed a multi-scenario and out to collect floor materials generated during pro-
multi-channel plastic waste recycling network for industries agriculture life oceans and other scenarios. duction replacing white woven bags.Used old raw material packaging to collect materials
Case Closed-loop Recycling System for Household Appliances and Automotive Materials such as injection moulding waste and extracted
powder.The Company entered into a strategic partnership with leading domestic end-of-life vehicle/household appliance dismantling enter- Through the above measures Kingfa (Vietnam) effective-
prises to jointly build a full-chain recycling solution covering end-of-life household appliances and vehicles refined dismantling intel- ly extended the service life of waste packaging reduced
ligent sorting and high-quality regeneration with annual processing of more than 20000 tonnes of end-of-life materials. The project the consumption of new packaging and the amount of Secondary Use of Waste Packaging
established a full-process digital traceability system and introduced AI visual recognition and high-temperature friction-based physical hazardous waste generated and achieved the circular
cleaning technologies achieving an impurity removal rate of 99.2%. The recycled materials were reapplied in the manufacturing of use of resources.automotive interior and exterior parts and household appliance casings forming a complete closed-loop cycle.Case Intelligent Sorting Technology Empowered the High-quality Utilisation of Industrial Waste Indicators and Targets
The Company has established quantitative targets that "produce 1 million tonnes of green plastics recycle 1 million tonnes of
The Company explored the application of efficient material sorting technology in the treatment of industrial plastic waste.Through simulation experiments and enterprise field tests the Company demonstrated the feasibility of achieving precise material waste plastics and produce 1 million tonnes of recycled plastics by 2030". The Company regularly tracks and assesses progress
identification based on the material's "spectral fingerprint" providing practical reference for enterprises to address the pain points of towards these targets dynamically optimise resource allocation and implementation pathways and ensure the achievement of
low efficiency in manual waste sorting and insufficient resource utilisation value and supporting the green transition of the industry. the targets by 2030. In 2025 the Company regularly compiled annual data for the three major indicators and steadily advanced
each target. For specific data please refer to "Progress on 2025 Strategic 'Carbon' Target of the Company".
6162
Landfill Incineration Leak in environment
Recycling
Sorting
Cleaning and
crushing
Hazard-free
treatment
Odour and impurity Manufacturing of
removal finished products
Modified pelletising
Two major focusesKingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
Pollutant Discharge The Company is committed to reducing pollutant discharge and managing pollutants in a harmless manner. At our major production bases and subsidiaries the Company actively carries out equipment retrofit and upgrading proj-
ects to unlock the potential for pollutant discharge reduction.The Company strictly complies with laws and regulations such as the Law of the People's Republic of China on the Prevention
and Control of Atmospheric Pollution the Law of the People's Republic of China on the Prevention and Control of Water Pollution
and the Law of the People's Republic of China on the Prevention and Control of Environmental Noise Pollution. The Company Case Kingfa Environmental Implemented a Comprehensive Upgrade in a Workshop to Ensure Compliance with Environmental Standards
has formulated internal management systems such as the Operation Management System for Pollution Prevention and
Control Facilities and the Responsibility System for Environmental Pollution Prevention and Control. Leveraging the Company's
environmental management structure (see the section "Environmental Compliance Management" for details) the Company has In response to issues in the waste gas collection system of a workshop such as multiple pipe bends high
established a sound pollutant discharge governance system and actively implemented pollutant prevention and control measures. wind resistance and the tendency of oil contamination and dust to cause blockages Kingfa Environmental
carried out a comprehensive upgrade including recalculating air volume and replacing pipelines; adding
The main pollutants discharged by the Company include wastewater and waste gas generated during the production process. a primary filtration system to reduce the risk of blockage; redesigning the gas collection hood by adopting
The Company continuously improves its management mechanisms for pollutant discharge monitoring and regular inspections an enclosing structure with front and rear adjustability to address problems such as large gaps during
and regularly engage third-party organisations to inspect pollutant treatment facilities and discharge conditions ensuring that the machine replacement crosswind interference and fugitive emissions; and replacing the 55 KW fan to
discharge and disposal of various pollutants strictly comply with the local discharge standards. increase air volume. After the upgrade the controlled air velocity increased to above 0.5 m/s effectively
ensuring the efficient operation of the workshop's environmental protection facilities and meeting
Major Pollutants and Treatment Measures of the Company increasingly stringent environmental requirements.Wastewater Waste gas
Wastewater from the R&D process: Wastewater from the
cleaning of experimental apparatus and machinery
Production wastewater from the modified plastics sector:
Circulating cooling water
Generation Production wastewater from the healthcare and new After the Upgrade: Pipelines Replaced Collection Air Velocity Up to Standards
process materials sectors: Process wastewater spraying wastewater Modified plastics melt extrusion
Production wastewater from the green petrochemical sector:
Circulating water station renewal drainage gas stripping tank
scrubber wastewater catalyst separator process wastewater
Domestic sewage
Emission Limits of Air Pollutants Integrat-
ed Emission Standard of Volatile Organic
Discharge Integrated Wastewater Discharge Standard (GB 8978-1996) Compounds for Stationary Pollution Source
standards Emission Standard of Pollutants for Synthetic Resin Industry Emission Standards for Odour Pollutants
Emission Standard of Pollutants for Synthet-
ic Resin Industry
Main
control BOD COD suspended solids ammonia nitrogen total phos-
Particulate matter non-methane total hy-
phorus etc. drocarbons nitrogen oxides sulphur oxides indicators volatile organic compounds etc.Add wastewater pre-treatment facilities treat production Make full and effective use of waste gas
wastewater to discharge standards via the park's wastewater collection and purification facilities for
Main treatment facilities discharge qualified effluent into the collection and treatment;
treatment sewage pipeline network and deliver it to the sewage station
measures for further treatment;
Complete daily inspection records conduct
proper inspections of gas leakage monitors
Maintain the wastewater treatment facilities daily and and carry out replacement and operational
regularly inspect and maintain the sewage pipeline network. processes in accordance with the SOP.Aerial photograph of Ningbo Kingfa
63 64Kingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
Case Guangdong Kingfa Promoted the Use of Spraying Devices to Reduce Environmental Impacts on Residents Chemical Safety
The Company strictly complies with the Law of the People's Republic of China on the Safety of Hazardous Chemicals and the
The prevailing wind direction in the area where Regulation on the Safety Management of Hazardous Chemicals and other laws and regulations making every effort to reduce
Guangdong Kingfa's factory is located is north- the risk of chemical accidents effectively avoid environmental damage and safeguard personnel health and production safety.easterly and pollutants are likely to accumulate
and diffuse poorly under adverse meteorological Governance
conditions. In response Guangdong Kingfa The Company has established a chemical safety management structure under the unified management of the Work
adopted two measures: First under adverse Safety Committee of the Group with coordination among all departments at each base and formulated the Safe-
meteorological conditions workshop doors and ty Management System for Hazardous Chemicals and the Chemical Emergency Preparedness and Response Plan
windows were kept strictly closed and spraying setting out clear requirements for the safety management of hazardous chemicals and toxic substances throughout
intensity at emission outlets was increased to their full lifecycle including procurement transportation storage use and disposal. At the same time the Company
promote the settlement of pollutants within the has incorporated hazardous chemical safety management performance into the assessment system for relevant po-
factory area and reduce the scope of diffusion; sitions and through target breakdown process supervision and application of results promoted the implementa-
second spraying devices were installed at the tion of management responsibilities at every level ensuring the effective execution of all control requirements.eastern emission outlets to effectively reduce
exhaust gas temperature and odour thereby Chemical Safety Management Structure and Responsibilities
lessening the impact on nearby residents. At of the Company
present these devices have been fully promoted
and used in the plastic pelletising workshop. After the Upgrade: Spraying Devices at
Emission Outlets Work Safety Committee of the Group
Be responsible for formulating the Group's management systems for hazardous
chemicals and supervising system implementation
All departments at each site
Safety management Procurement department Planning and warehousing Departments related to department department production and operations
The Company has set a pollutant discharge reduction target that "compared with 2022 the emissions of air Be responsible for organising the Sign safety and environmental Be responsible for safety control Regularly organise personnel to
pollutants (VOCs PM SO NO ) per RMB 10000 revenue generated during the production process will be reduced formulation (revision) and imple- p r o t e c t i o n a g r e e m e n t s and management during the conduct safety training on the use 2 x mentation of the safety manage- w i t h s u p p l i e r s to c l a r i f y t h e transportation and warehousing of of chemicals and emergency drills.by more than 30% by 2030" and regularly monitors progress towards the target to ensure its achievement. During ment regulations for hazardous responsibilities of both parties in hazardous chemicals.chemicals precursor chemicals/ the procurement transportation Formulate operating procedures
the reporting period the Company was not subject to any major administrative penalties or criminal liability due to explosive precursor chemicals/ storage and use of chemicals. Classify and store hazardous a n d i m p l e m e n t p e r s o n a l
highly toxic chemicals and other chemicals and implement the protection.pollutant discharge. chemicals at this base. Review suppliers' qualifications "five two-person management
for the production and operation measures" (two-person receipt Manage the use of hazardous
Be responsible for the filing regis- of hazardous chemicals precursor a n d d i s p a t c h t w o - p e r s o n chemicals and the requisition
tration supervision and inspection chemicals/explosive precursor bookkeeping two-person double- ledger and implement "first in
of hazardous chemicals; make chemicals/highly toxic chemicals locking two-person transport and first out".sure the flow information of highly (including transport providers). two-person use). Store waste chemicals temporarily
toxic explosive precursor and
Procure qual i f ied hazardous Regularly inspect the storage in accordance with regulations
2025 Pollutant Discharge Performance of the Company precursor chemicals is filed with the public security and narcotics c h e m i ca l s a n d c h e m i ca l s o f environment (temperature and and place them into storage promptly.
control authorities within the pre- compliant quality from qualified humidity fire-fighting facilities
scribed timeframe. suppliers and obtain SDS and etc.) and emergency facilities in the
safety labels. warehouse such as fire-fighting
In 2025 the air pollutant emission intensity (VOCs PM SO2 NOx) from the Company's production process was 6000 Supervise and review the qualifi- and ventilation facilities and cations of suppliers of hazardous C o n d u c t p r o c u r e m e n t f r o m remain prepared for emergency
cubic metres per RMB 10000 revenue. chemicals precursor chemicals/ suppliers qualified for hazardous response at all times.explosive precursor chemicals/ waste disposal sign contracts
In December 2025 Ningbo Kingfa was rated as a Class A enterprise for air pollution prevention and control highly toxic chemicals and the with them and clearly define the
qualifications for chemical pro- responsibilities of both parties.performance.curement.Chengdu Kingfa obtained the "Leading" qualification in the emergency production curtailment performance Organise chemical safety training
assessment during heavy pollution weather and received the highest rating of "Environmentally Honest Enterprise" and emergency drills.in the annual corporate environmental credit evaluation. Be responsible for the disposal of
hazardous chemicals the ware-
housing transfer and government
reporting of hazardous waste.
65 66Kingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
Strategy The Company has established a safety management system covering the entire lifecycle of chemicals and has imple-
mented closed-loop control throughout the whole process across six key stages namely procurement transporta-
The Company identifies compliance and procurement risks related to chemical safety management. By establishing a tion storage use emergency response and waste disposal. Through source access control standardised operation
full-lifecycle chemical safety management system and implementing toxic substance management the Company systemati- during the process compliant end-of-pipe disposal and emergency capability building the Company systematically
cally improves the level of chemical safety and minimise or avoid as far as possible the impacts arising from related risks. prevents chemical safety risks ensuring that every stage from entry into the factory to exit from the factory remains
under control and effectively safeguarding personnel safety and stable production.Analysis of Chemical Safety Risks and Opportunities of the Company Chemical Safety Management Measures of the Company
Major Risk/
Opportunity Specific Description
Scope of
Impact Financial Impact Procurement
In accordance with the Regulation on the Safety Management Strictly control the safety of hazardous chemicals at the source procure hazardous chemicals from qualified suppliers and require suppliers to provide the corresponding safety data sheets. For the purchased highly toxic precursor and explosive precursor hazardous chemicals pro-
of Hazardous Chemicals and in conjunction with the actively file with the public security authorities in accordance with regulations and fulfil the responsibilities incumbent on the enterprise.forthcoming Law on the Safety of Hazardous Chemicals (Draft
Compliance risk for Comments) the State implements the "five two-person Short and
Increased compliance
control measures". If the Company fails to manage hazardous medium term costs and reduced Transportation
chemicals in accordance with regulatory requirements it will operating revenue
face penalties including fines revocation of permits and even Require hazardous chemicals suppliers to entrust enterprises that have obtained qualifications for the road transport operation of dangerous goods
a lifetime ban from the industry. to carry hazardous chemicals. For hazardous chemicals transport vehicles entering the Company exercise strict control and inspection; when en-
tering or leaving storage and usage sites for flammable and explosive hazardous chemicals require vehicles and transport personnel to implement
If suppliers fail to provide or provide false/incomplete/ relevant fire prevention and explosion prevention measures and to be equipped with sufficient and effective emergency response equipment and
outdated Material Safety Data Sheets (MSDS) in particular for facilities as well as personal protective equipment.Procurement risk unknown impurities in new additives and recycled materials
Short Increased operating During the internal handling of hazardous chemicals make sure that each department has formulated safe operating procedures for the handling of
the Company is unable to identify the actual hazards resulting medium and costs hazardous chemicals in light of their characteristics and educated and supervised employees to handle such chemicals in a standardised manner.in the complete failure of subsequent storage use and long term
emergency response measures and triggering chain accidents.Storage
Make sure that the storage of hazardous chemicals strictly complies with the requirements of relevant regulations and standards such
as the General Rules for the Hazardous Chemicals Warehouse Storage store hazardous chemicals all in hazardous chemicals warehous-
es that have been approved for construction and comply with national standards and store hazardous chemicals by zone by category
Impact Risk and Opportunity Management and in separate warehouses according to the characteristics of the hazardous chemicals.Make sure that hazardous chemicals warehouses are managed by designated personnel with the corresponding professional knowl-
The Company has formulated chemical safety risk management processes. Through a closed-loop mechanism comprising edge and safety skills and are equipped with reliable personal safety protective equipment.chemical information verification hazard identification and assessment risk classification and control emergency response Within the storage warehouse provide corresponding safety facilities and equipment according to the categories and characteristics of hazardous chemicals ensuring the safe storage of hazardous chemicals at all times.drills and post-assessment of management effectiveness the Company systematically prevents safety risks arising from
missing information or control failures ensuring that chemicals remain in a controllable state throughout their full lifecycle. Usage
Establish a stringent management system for the requisition of hazardous chemicals and make sure that relevant personnel involved in procure-
Chemical Safety Risk Management Processes of the Company ment warehousing management safety management and use operations have all attended relevant training in accordance with national require-ments and obtained qualification certificates. Establish comprehensive registration records for the requisition and use of hazardous chemicals and
conduct regular inventory checks.Provide personal protective equipment that complies with national standards and strictly require employees to wear corresponding protective
equipment during hazardous chemical operations and conduct regular safety inspections practical training and emergency drills.Comprehensive Data Collection Risk Identification and Analysis Review of Safety Facilities and Management Measures Emergency response
In accordance with relevant laws Regularly organise personnel to Inspect the provision of safety facili- Establish the Emergency Plan for Production Safety Incidents formulate reasonable comprehensive and effective emergency plans for haz-
regulations codes and industry conduct special inspections of haz- ties at hazardous chemicals storage ardous chemicals and organise no fewer than one practical drill and training session each year in accordance with national requirements.standards on chemical safety man- ardous chemicals warehouses and and use sites and regularly inspect
agement conduct a comprehensive laboratories and follow up on the the operation of such facilities. At the
identification of the Company's use of implementation of rectification mea- same time inspect the implementa- Waste disposal
chemicals develop a comprehensive sures. At the same time in light of the tion of safety management systems
chemical inventory compile detailed surrounding environment and oper- such as personnel training compli- In accordance with relevant national and local laws and industry standards formulate the Management Procedures for Four Types of
statistics on information such as the ating procedures identify potential ance with operating procedures and Waste and make sure that hazardous chemical residues and other waste generated during the production process are collected and
stock levels categories and storage hazardous factors in each position emergency response drills. temporarily stored by category in accordance with the Company's and national waste management documents and standards and are
locations of various hazardous chem- within the area and assess them us- transferred to qualified third parties for disposal.icals and establish an information ing a combination of qualitative and Conduct whole-process risk identification and closed-loop risk management for the compliant disposal of waste achieving traceability
database for hazardous chemicals. quantitative methods. and query ability of industrial solid waste and ensuring the compliant disposal of hazardous chemical residues.
67 68Kingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
Case Zhuhai Vanteque Specialty Engineering Plastics Carried out Safety Management Indicators and TargetsEnhancement Activities for High-risk Chemicals
The Company has established annual quantitative targets for chemical safety management and ensured the effec-
To strengthen the safety control of high-risk chemicals Zhuhai Vanteque Specialty Engineering Plastics conducted special re- tive implementation of various control objectives through regular tracking and assessment.views and upgrades of storage conditions for key materials such as toluene.In terms of hardware in accordance with the Regulation on the Administration of Precursor Chemicals and chemical safety data 2025 Chemical Safety Targets and Progress of the Company
sheets compliance audits were conducted on Class A warehouses to ensure that facilities such as the dual-person dual-lock
system electronic monitoring and inert gas protection were all effectively put into operation; in terms of management sepa- Indicator Target Achievement Status in 2025
rate ledgers were established for storage requisition and disposal to achieve full-process traceability. At the same time special
training sessions and emergency response drills were organised covering material hazards regulatory requirements and leak Number of chemical accidents No general chemical accidents 0 achieved
handling among other topics with a 100% pass rate in assessments for warehousing operational and management personnel. of Level I
Through systematic upgrades Zhuhai Vanteque Specialty Engineering Plastics effectively improved its safety management Full lifecycle compliance in the procurement storage use and disposal of hazardous chemicals and controlled 100% 100% achieved
standards for high-risk chemicals. No related safety incidents occurred throughout the year and it was well prepared to respond chemicals
to stricter regulatory supervision.In terms of hazardous substance control the Company conducts hazardous substance assessments for its own
products and has formulated the Technical Standards for the Control of Hazardous Substances clarifying the list of
prohibited substances in raw materials continuously and dynamically updating control requirements and simul- Ecosystem and Biodiversity Protection
taneously formulating reduction and control plans to ensure strict implementation in both internal production and
external procurement processes. In the internal production process the Company implements closed-loop manage- The Company attaches great importance to the impact of its activities on ecosystems and biodiversity. In accordance
ment throughout the entire process including random inspection of incoming raw materials real-time monitoring of with the Law of the People's Republic of China on Environmental Impact Assessment the Regulations of the People's
the production process and stringent testing of finished products to ensure that products leaving the factory comply Republic of China on Wild Plants Protection and the Opinions on Further Strengthening Biodiversity Protection of
with international regulations and customer requirements; in supplier access and assessment the Company con- the General Office of the State Council among other relevant laws and regulations the Company ensures that the
ducts special inspections of prohibited substances. Suppliers that fail to meet the standards are required to complete production and operational activities do not harm ecosystems or biodiversity. During the reporting period none of
rectification and undergo re-audit within one month. If rectification still fails to meet the standards new suppliers the Company's operating locations were situated within ecological conservation red lines nor did they affect nature
will not be introduced and unqualified suppliers will be directly eliminated. During the reporting period the Compa- reserves important habitats or the distribution areas of rare and endangered species.ny and three of its subsidiaries passed the QC 080000 Hazardous Substance Process Management certification.On the basis of ensuring compliant operations the Company leveraged its technological expertise in the field of
2025 New Hazardous Substance Control List of the Company bio-based and biodegradable materials to actively explore and contribute the Company's solutions to ecosystem
protection and restoration through material innovation.Control Level List of Substances Control Method
Substances controlled under RoHS TSCA and POP Direction in Ecosystem and Biodiversity Protection of
regulations as well as 6-[(C10-C13)-alkyl-(branched
unsaturated)-2 5-dioxopyrrolidin-1-yl] hexanoic acid Ban their use in the products immediately and the Company
triphenyl phosphorothionate octamethyltrisiloxane per- intentional addition is prohibited for any items.Level I fluamine reaction mass of triphenyl thiophosphate and The content of all product compositions must
tertiary butylated phenyl derivatives tris (4-nonylphenyl meet the control requirements or special cus- Material Type Core Mechanism Ecological Protection Role Typical Applications
branched) phosphite decamethylcyclopentasiloxane tomer requirements except those that comply
(D5) dodecamethylcyclohexasiloxane (D6) octamethyl- with the exemption items and can be exempted.
cyclotetrasiloxane (D4) Reactive Brown 51 etc. Bio-based materials (such as Such materials are sourced
Indirectly reduce habitat
destruction and biodiversity Bio-based plastics packaging
bio-based PBAT PBS PLA) from renewable biomass re-placing fossil resources loss caused by fossil resource materialsProhibit their use after the specified date and to extraction
Level II PFAS use them in the manufacturing process consider and draft a mitigation and gradual replacement
plan. After use under specific en- Systematically cut off the pathways by which persistent
Monitor substances deemed potentially harmful Biodegradable materials
vironmental conditions such
materials can be enzymati- pollutants particularly mi- Degradable mulch film de-
to human health without current usage bans in (mulch films shopping bags cally decomposed by micro- croplastics enter the natural gradable shopping bags ma-
Level III Triphenyl phosphate resorcinol decabromodiphenyl accordance with customer requirements and fishing nets etc.) organisms into water carbon environment preventing the rine-degradable fishing netsethane antimony trioxide halogens allow automatic classification as Level II controlled dioxide and biomass formation of long-term envi-
substances upon the issuance of new regulations. ronmental residues
69 70Kingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
Promoting
Innovation to Drive
Social Progress
The Company adheres to innovation-driven development accelerates
the digital transformation of R&D and injects strong momentum into
the transformation and upgrading of the industrial chain through tech-
nological breakthroughs. The Company has preliminarily established an
efficient and coordinated global operating network and has worked with
supply chain partners to build a sustainable development ecosystem
striving to grow together with partners share achievements provide
high-quality new materials for the society and create a wonderful life so
as to become a worldwide leader in new materials providing support for
national strategic materials.Highlight performance:
R&D investment: RMB 2761132700
China Patent Excellence Awards: 3
Valid invention patents as of the end of the reporting period: 2886
Handling rate for complaints received regarding products and services:
100%
Sustainable procurement training coverage for purchasing specialists:
100%
SDGs benchmarking:
71 72Kingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
Innovation-driven Strategy
The Company uses technological innovation as a value link continuously strengthening efforts across the four
The Company as the world's largest modified plastics manufacturer with the most comprehensive product portfolio major sectors of modified plastics new materials green petrochemicals and healthcare empowers industrial chain
has four major business sectors namely modified plastics new materials green petrochemicals and healthcare. collaboration through technological innovation and provides sustained momentum for the Company's development.Its products are widely used in industries such as automobiles household appliances electronics electrical
engineering communication electronics new infrastructure new energies modern agriculture modern logistics rail Analysis of Innovation-driven Risks and Opportunities
transit aerospace high-end equipment and healthcare. The Company has always upheld the innovation vision of
"independent innovation technology leadership and global collaboration" kept firmly in mind the innovation mission of the Company
to "grow together with partners share achievements provide high-quality new materials for the society and create a
wonderful life" taken "being innovation-driven" as the focus of high-quality sustainable development and committed Major Risk/Opportunity Specific Description Scope of Impact
Financial
Impact
itself to becoming a worldwide leader in new materials providing support for national strategic materials.Improper intellectual property management may cause new products
Intellectual to become involved in disputes over unclear intellectual property Medium and long Reduced
Governance property risk ownership or infringement resulting in direct economic losses and term
operating
damaging brand reputation. revenue
The Company complies with laws and regulations such as the Law of the People's Republic of China on Progress of The Company seizes opportunities in new energies AI computing power
Science and Technology has formulated internal management systems such as the Management Measures for Scientific robotics and the low-altitude economy. Market demand for environment-
Research Work and continuously enhances the global collaborative efficiency of the "13551" R&D system ensuring friendly high-performance recycled plastics special engineering plastics
the high-quality operation of four national-level innovation platforms promoting localised R&D breakthroughs in three carbon fibre materials and other materials continues to rise and the
market for materials related to high-speed connectors and storage modules
international R&D centres stimulating the innovation vitality of five domestic technical sub-centres and five incubation is expected to exceed the RMB 10 billion level. There is an urgent demand
bases for new chemical materials forming an innovation network featuring internal-external linkage and efficient Market for high-strength materials for components such as robot joints skeletons and casings. Leveraging a range of high-performance materials including Short medium
Increased
collaboration and achieving compliant and efficient R&D activities with a continuous emergence of innovative outcomes. opportunity LCP PEEK PPA and high-performance fibre-reinforced composites as and long term
operating
revenue
well as integrated lightweight material solutions the Company meets
"13551" R&D System customers' complex requirements for products demanding lightweight
high-temperature-resistant and environmentally friendly materials. The
Company's innovation achievements have gained industry recognition
3 international R&D 5 incubation bases and relevant innovative products have already been supplied in volume to
centres for new chemical leading global customers with broad future market prospects.materials
1 5 1 To better prevent risks and seize development opportunities the Company advances its innovation strategy and imple-
ments a talent strategy capital strategy brand strategy and an intellectual property strategy integrating standards and
patents. The Company has also established special R&D teams in sectors such as new energies AI embodied robotics
3 5 and the low-altitude economy and collaborated with upstream and downstream partners to undertake core technol-
1 central research 5 technical 1 national industrial ogy research building a full-process material system covering thermoforming blow moulding extrusion and injection
institute sub-centres innovation centre moulding. The Company provides integrated solutions ranging from the design and development of new material
products to large-scale industrial production helping downstream customers enter the market rapidly and supporting
innovative coordinated green open and shared economic and social development.Four National-level Innovation Platforms
Impact Risk and Opportunity Management
The Company has established scientific research and intellectual property management processes and by continuously im-
proving the innovation management mechanisms building high-level R&D and innovation platforms and standardising intel-
lectual property management has better responded to impacts risks and opportunities related to technological innovation.National Enterprise Technology National Engineering National Key Laboratory National Industrial Innovation
Centre Laboratory Centre of Advanced Polymer Innovation Management Mechanisms
Materials
In December 2003 the Company's technol- In November 2008 the Company ob- In August 2015 the Company obtained In May 2017 the Company obtained The Company has established four major innovation management mechanisms covering investment in innovative
ogy centre was recognised by the National tained approval from the National Devel- approval from the Ministry of Science and approval from the National Development
Development and Reform Commission opment and Reform Commission to es- Technology to establish a National Key and Reform Commission to establish the R&D the development of scientific research platforms the cultivation and incentive of innovative talent and the
the Ministry of Finance and other author- tablish a National Engineering Laboratory Laboratory becoming the first national key National Industrial Innovation Centre of fostering of an innovation culture thereby forming a technology innovation management chain covering funding
ities as the first national-level enterprise becoming the first national engineering laboratory in China's advanced polymer Advanced Polymer Materials.technology centre in the industry. laboratory in China's advanced polymer materials industry. assurance platform support talent incentives and atmosphere building and providing systematic support for tech-
materials industry. nological breakthroughs and the commercialisation of achievements.
73 74Kingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
Innovation Management Mechanisms of the Company R&D Innovation Achievements
Upholding "making independent innovations taking the lead in technologies and creating excellent products" the
Sustained high-growth R&D investment mechanism Company has been accumulating technologies and studying products. Progressively the Company has built an R&D
platform driven by technology industry and product research. The Company continues to strengthen its efforts in
four major sectors namely modified plastics new materials green petrochemicals and healthcare and continue to
Continue to increase investment in R&D maintain growth in R&D expenditure and keep the proportion of R&D investment to
revenue from principal operations at a relatively high level. advance breakthroughs in key core technologies and the commercialisation of major R&D project achievements.Prioritise ensuring the intensity of investment in core sectors such as modified plastics special engineering plastics and
biodegradable plastics while also establishing special funds to support research on core technologies with a focus on
overcoming a number of "bottleneck" technical challenges that have long constrained the development of the industry. R&D Innovation Achievements of the Company (Partial)
Optimise the structure of R&D investment moderately increase the proportion of investment in basic research and forward-
looking technology reserves and lay a solid foundation for medium- to long-term technological leadership.Modified plastics
Robust and effective scientific research platform development mechanism The Company's independently developed ultra-weather-resistant technology for outdoor high-colour-
saturation high-toughness food-grade PP substantially improves the weather resistance of the material
Aligned with the Company's medium- and long-term planning and scientific research plans continuously invest in equipment while meeting food-grade and high-colour-saturation requirements greatly enhancing the material's
site resources and related supporting resources introduce internationally advanced equipment and establish the synthesis competitiveness and has been successfully applied in the outdoor equipment field.research platform compounding and extrusion platform analysis and testing platform and application evaluation platform.The Company's independently developed low-smoke PVC material reduces the smoke generation capacity of
flexible PVC materials by more than 50% through the synthesis of a new type of highly efficient rare-earth metal
compound smoke suppressant and can be widely used in industries such as cables building and construction
Scientific and effective talent training management and incentive mechanisms materials and electrical engineering.Implement the talent development plan of "external introduction and internal training" vigorously advance the innovative The Company's independently developed PPS material with a metallic texture combines high strength delicate
leading talent initiative and leverage national and local innovative leading talent programmes and other talent policies to tactile feel and magnetic attraction properties in one and has been successfully applied in toys household
attract and recruit talent. appliances and other fields; it gives toy products a premium tactile experience and smooth metallic texture
Enrich career development pathways for R&D personnel through independent professional title evaluation and appointment bringing a revolutionary innovative material solution to the metal alloy toy industry.qualification mechanisms and broaden the academic horizons of R&D personnel through quarterly academic exchange
meetings external academic conferences and other means. The Company's independently developed arc-extinguishing material achieved an ultimate breaking capacity of
50kA/1500V and completed a 1000-cycle electrical life test at 630A/750V (post-test withstand voltage of 3.0kV).
It combines high-voltage arc extinguishing temperature resistance flame retardancy and voltage resistance
representing the industry's only integrated solution capable of meeting the needs of circuit breakers at
A corporate culture development mechanism that encourages innovation and tolerates failure different voltage levels and is at the leading level in the industry.The Company made breakthroughs in the key technology for high-glow-wire PBT with brominated
Publicise the Company's values via publications such as Kingfa Science & Technology News foster a corporate innovation
culture that encourages innovation and tolerates failure and create a pervasive innovation atmosphere in which innovation GWIT ≥ 850 ℃ and halogen-free GWIT ≥ 775 ℃ and obtained the world's first UL Yellow Card. The product
is present everywhere and in everything. can significantly improve electrical appliance safety and has gained broad recognition from the market and
customers.The Company's independently developed key integrated innovative technology for full-spectrum photo-ageing
and application-environment resistance of polycarbonate has been successfully transformed and applied
in a series of products such as medical equipment housings photovoltaic modules protective covers for 5G
Self-founded Journal Jumped to an Impact Factor of 12.0 and Was Selected into communication base stations and security monitoring housings precisely addressing the core pain points in Case CAS Division Q1 high-end application fields relating to photo-ageing lifespan and resistance to complex environments.The Company launched the world's first brominated antimony-free flame-retardant ABS product. The
In 2018 the Company established the English-language academic journal in the field of polymer science antimony-free design reduces the risk of environmental emissions of harmful heavy metal substances and
Advanced Industrial and Engineering Polymer Research (AIEPR) building a bridge for dialogue between leads a new development direction for environmentally friendly flame-retardant technology.academia and industry in the form of a quarterly publication. Since its launch the journal has been successively The Company's independently developed environmentally friendly wood-plastic PP material solves the
indexed by internationally authoritative databases such as ESCI Ei Scopus CAS and DOAJ. In 2025 its impact problem of poor appearance in wood-plastic materials while also offering good mechanical properties
factor rose to 12.0 and it was selected for Q1 of the Chinese Academy of Sciences marking the Company's breaking foreign monopolies.continuously growing discourse power and influence in building the global polymer academic ecosystem.
75 76Kingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
Environment-friendly high-
performance recycled plastics Biodegradable plastics
Leveraging the Company's self-built synthetic biotechnology R&D platform the bio-based organic acid project
Through the Company's self-developed reactive extrusion chain extension technology and equipment the achieved innovative breakthroughs realising the cultivation of high-yield strains. The product portfolio continued
Company carried out molecular chain regulation of polyester and polyamide PCR materials and through to expand meeting diversified downstream application needs and the related technologies remained at the
efficient high-precision filtration technology and equipment realised the closed-loop bottle-to-bottle world-leading level. The bio-based BDO project overcame efficient catalytic conversion and targeted removal
recycling application of recycled polyester and filament-grade application of recycled polyamide. technologies for biomass impurities achieved successful commissioning on the first attempt and its product
indicators reached the internationally leading level realising full integration of the entire industrial chain from bio-
For the first time the Company applied dissolution recycling technology to the high-quality recycling based organic acids to bio-based BDO to bio-based polyesters leading the industry's green upgrading.and reuse of waste plastics and used high-pressure flash evaporation separation technology to solve the
challenge of efficient purification and separation of solvents and plastics. The Company built a hundred- The self-developed halogen-free flame retardants successfully broke through key bottlenecks in synthesis
tonne-scale waste plastics dissolution recycling demonstration unit opening up a brand-new solution for technology enabling high-efficiency low-energy-consumption production. The industrialisation project with
the subsequent closed-loop high-quality recycling of waste plastics. a capacity of 5000 tonnes/year was smoothly put into operation creating a series of products including high-
performance low-exudation ultrafine powder and carrier-free granules further broadening application scenarios
and effectively meeting the market's diversified demand for high-end halogen-free flame retardants.The Company successfully launched bio-based resins with bio-based content ranging from 20% to 100% in
multiple specifications for multiple scenarios precisely responding to European market demand. The Company
Green petrochemicals overcame the challenge of balancing comprehensive performance requirements in 10-micron ultra-thin fruit
and vegetable bags including heat-sealing performance opening performance mechanical performance and
processing performance leading the development of the flexible packaging industry.The Company independently developed a series of transparent polypropylene products featuring excellent The Company independently developed high-strength high-toughness PBS straw materials resolving the
processability high toughness and low haze. These products offer excellent processability high toughness difficulty of balancing the mechanical properties of materials across multiple temperature scenarios and
and low haze meeting the performance requirements of the household goods toys food and other providing a high-performance solution for the green transformation of the catering industry.industries for transparent materials that are safe environmentally friendly and lightweight and providing
solutions to support the upgrading needs of related industries. The Company optimised the weld-line strength and insertion-withdrawal resistance of PLA components
expanding the application of PLA materials in durable goods fields such as e-cigarettes and electric toothbrush
The Company independently developed low-noise ABS ABS specifically for building blocks flame-retardant handles and driving the low-carbon transformation of the high-end consumer goods industry.ABS extrusion-grade ABS blow-moulding-grade ABS and food-grade ABS/SAN achieving breakthroughs in
the integrated wet-process ABS synthesis and modification production process.The Company independently developed low-odour emulsion-process heat-resistant ABS. The product
features high heat resistance high impact resistance high rigidity and low odour overcoming the long- Special engineering plastics
standing industry challenge of producing low-odour emulsion-process ABS.Bio-based high-temperature-resistant PA5T/X materials feature green and low-carbon characteristics excellent
The Company independently developed high-performance modified materials specifically for the toy electrical properties resistance to baking-induced discolouration lower silicone corrosion and high-cost per-
industry featuring high flowability high toughness and low emissions meeting the toy industry's stringent formance and have been widely applied in new energy high-voltage connectors consumer electronics connec-
requirements for safety durability and environmental protection. The product's emissions indicators have tors acoustic electronic components and other areas.reached an industry-leading level providing key material solutions for upgrading toy product performance.The Company developed the third-generation polymerisation technology for LCP resin achieved the industrialisation of ul-
The Company independently developed ultra-transparent random copolymerisation/impact-resistant PP tra-high heat-resistant LCP and innovatively applied it to components of the three-electric system of new energy vehicles.materials. The new product has a haze level below 2 with performance significantly superior to general
transparent PP products on the market. At a thickness of 1 mm its light transmission clarity can reach the The Company achieved breakthroughs in key technologies for the industrialisation of hollow fibre mem-
level of transparent ABS comparable to the industry's top metallocene products. brane-grade PES with performance reaching the level of equivalent foreign materials.The Company independently developed products with high rigidity and high heat resistance. While achieving Breakthroughs in efficient flame-retardant PPA technology led to the development of antimony-free PFAS-
rigidity equivalent to high-end materials in the industry the heat deflection temperature of the products has FREE flame-retardant PPA which offers advantages such as ultra-thin flame retardancy high heat resistance
been further increased by 3-5° C giving them superior overall heat resistance performance. and colour stability further enhancing product performance and cost competitiveness.The Company broke through the full-chain technical barriers from polymerisation-grade norbornene (NB) to The Company developed high-GWIT halogen-free flame-retardant PPA with gas-generating characteristics
high-purity high-performance cyclic olefin copolymer (COC) with product performance reaching the level of which can meet the requirements of low-voltage electrical appliances for the arc-extinguishing performance
first-class overseas competing products. of materials helping downstream products achieve iterative upgrades.By making breakthroughs in interfacial and phase-state regulation technologies PPA/aromatic Copolymers
of cycloolefin alloy materials with excellent mechanical properties heat resistance dimensional stability
and dielectric properties have been developed offering broad application prospects.
77 78Kingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
High-performance fibre-
reinforced composite materials Indicators and Targets
The Company's self-developed continuous carbon fibre-reinforced sandwich blade features advantages of high specific The Company has established an innovation objective to "construct a high-level all-round and multi-level com-
stiffness and specific strength and can effectively support the technological upgrading and iterative development of large- prehensive innovation system in the industry for the core purpose of gathering top innovative talents building a
payload unmanned aerial vehicle platforms.high-level R&D platform innovating the business model and implementing an advanced innovation management
The Company's self-developed continuous fibre-reinforced material solution is specifically for antenna radomes mechanism." To ensure the effective achievement of this objective the Company has established and improved or-
achieving such functions as good appearance easy processing and low dielectric loss. ganisational support financial support performance incentives and risk control mechanisms incorporated techno-
The Company independently developed a variety of highly impact-resistant new energy battery underbody protection logical innovation indicators into the key performance assessments of responsible persons at all levels implemented
panel and sealing cover technologies expanding and enhancing the application capabilities of thermoplastic composite quarterly tracking and annual evaluation and established a special reward fund to generously reward teams achiev-
materials in the field of new energy vehicles; and developed solutions across multiple application dimensions. ing major technological breakthroughs thereby fostering a positive atmosphere that advocates innovation and toler-
ates failure and providing solid support for building a world-class innovative consortium for new materials.Healthcare
2025 Innovation-Driven Targets and Progress of the Company
In response to industry pain points such as the weak polarity of traditional composite current collector
substrates poor bonding strength with metal layers insufficient high-temperature resistance and inadequate Indicator Target Achievement Status in 2025
flame-retardant performance leveraging the fibre-forming advantages of nonwoven melt-blown technology
the Company innovatively developed LCP PPS and high-temperature nylon series composite current collector Number of patent applications 750 807 patent applications submitted with an achievement rate of 107.6%
materials achieving dual breakthroughs in material formulations and preparation processes.Of which: Number of domestic invention patents 550 585 domestic invention patents with an achievement rate of 106.4%
The Company independently developed nitrocellulose microporous membrane technology for in vitro
diagnostics and the product completed pilot-scale mass production. Number of utility model patents 55 58 utility model patents with an achievement rate of 105.5%
Number of overseas invention patents 90 101 overseas invention patents with an achievement rate of 112.2%
The Company's independently developed multi-grade multifunctional air filtration materials achieved mass
production with product technical performance and stability reaching the forefront of the industry. Number of PCT applications 55 63 PCT applications with an achievement rate of 114.5%
The Company's self-developed supercritical electrostatic injection technology and products achieved full In 2025 R&D investment amounted to RMB 2761132700 representing a year-on-year increase of 10.90%.integration of the pilot-scale process.
2025 Honours Related to R&D Innovation of the Company
Case The Company Became the First Domestic Material Supplier to Launch Bio-based LCP
During the reporting period the Company received:
LCP materials are widely used in electronics automobiles aerospace and other fields. The Company successfully launched
a new generation of low-carbon LCP material Vicryst LCP CER-B becoming the first domestic and the second global
Second Prize of the National Science and Technology Progress Award (second participating unit): Key Technologies and Appli-
supplier in the LCP industry to obtain the International Sustainability and Carbon Certification (ISCC PLUS). In the future cations for Low-carbon High-quality Recycling and Remanufacturing of Plastic Waste
the Company will continue to deepen cooperation with domestic LCP monomer suppliers tackle key challenges in LCP
materials derived from fully bio-based monomer sources promote renewable content to break through industry limits First Prize of the Science and Technology Progress Award of Jiangsu Province: Key Technologies for the Green and Intelligent
Manufacturing and Industrialisation of Highly Flame-Retardant Polyolefin Composite Materials for New Energy Batteries
and support the achievement of the "carbon peaking and carbon neutrality" objectives with more innovative solutions.First Prize of the China National Light Industry Council Science and Technology Progress Award: Research Development and
Industrialisation of Key Technologies for High-quality Recycling of Plastic Waste
Intellectual Property Management Third Prize of the Science and Technology Progress Award of Sichuan Province: Establishment of Key Core Technologies and a
Standard System for High-quality Plastic Recycling
The Company complies with the Patent Law of the People's Republic of China the Copyright Law of the People's Republic of
China and other laws and regulations has formulated management systems such as the Intellectual Property Management 3 China Patent Excellence Awards: A matte PE material and its preparation method and application a PBAT resin composition a
Manual and has established an intellectual property office to coordinate intellectual property-related affairs. The Company thermoplastic resin composition and its preparation method
has passed the intellectual property management system certification audit and obtained the Enterprise Intellectual
Property Compliance Management System Certification Certificate.The Company took the lead in completing:
The Company continuously improves patent quality and the standard of its international deployment upgrades and refines
the risk early warning mechanism for overseas patents and provides strong support for global operations. The Company
focuses on increasing the proportion of invention patent applications accelerates the pace of overseas patent deployment
and strengthens patent commercialisation and application promoting the use of more high-value patents in its principal Two major national science and technology projects for the R&D and application of key new materials
business and effectively transforming intellectual property advantages into market competitive advantages. The Company
organises patent training sessions and in 2025 it held a total of 19 special training sessions effectively enhancing the
capabilities of relevant personnel in the creation protection and management of intellectual property.
79 80Kingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
Product and Service Quality Impact Risk and Opportunity Management
Governance The Company has established quality control processes starting with risk and opportunity planning allocating quality support resources and ensuring the effective operation of quality control and the management of external operations thereby forming
a quality control process that covers preliminary planning resource assurance process control and continuous improvement.The Company upholds the quality concept of "taking the customers first maintaining survival based on standards and becoming
powerful in reliance upon quality" and has established a standardised and lean product quality system.Quality Control Processes of the Company
The Company has established a Quality Management Centre which is responsible for determining quality policies strategies and
objectives with a senior executive serving as the Chief Quality Officer. The Company has established a Quality Department as the
dedicated management body for product quality management and safety responsible for the development and operation of the Make sure that the op-
Company's product quality system and for carrying out product quality and safety management. The Company has formulated erational environment
rules and regulations such as the Quality Manual to ensure that the relevant requirements for quality management can be and the measurement Strictly select and man-system are up to stan-
effectively implemented and strictly enforced thereby ensuring stable product quality. As of the end of the reporting period 95% age suppliers; develop dards the human re- a supplier quality man-
of the Company's steadily operating modified plastics production bases had obtained certification under the IATF 16949:2016 sources meet the capa- agement system and
bility requirements and
Automotive Quality Management System Standard or the ISO 9001:2015 Quality Management System Standard. perform second-party the document systems audits.are standardised.The Customer Quality Section under the Company's Quality Management Centre is responsible for establishing a quality
communication platform with customers and carrying out the professional handling of customer complaints. The Company has
formulated systems such as the Communication Control Procedures and the Customer Complaint Management Regulations to
standardise response times handling procedures and other aspects of customer services ensuring that customers are provided
with services at the earliest opportunity during the pre-sales sales and after-sales stages and enhancing customer satisfaction with Planning Quality Operations External Provisioning
the Company's products and services. risks and support for quality operations of production opportunities resources control management services
Strategy
With stringent quality standards and stable delivery capabilities the Company provides downstream industry customers with
high-performance highly reliable material solutions supporting the quality upgrading of products of customers. By ensuring Analyse risks and draw Keep customer infor- Standardise operations
up preventive mea- mation confidential; and make labels trace-
quality and safety control throughout the entire product lifecycle and continuously optimising customer services among other sures quality standards specify product and able; audit products
strategies the Company is better positioned to respond to risks and opportunities related to products and services. and plans for their reali- service requirements; and provide customer
sation. review design and de- services; dispose of the
velopment outputs. non-conforming prod-
Analysis of Product and Service Quality Risks and ucts in the reported
Opportunities of the Company channels.Major Risk/
Opportunity Specific Description Scope of Impact Financial Impact
Fluctuations in product quality may lead to downstream
Customer attrition customers' production line shutdowns batch scrapping
risk and recall risks triggering substantial quality claims and Short term
Reduced operating
joint brand liability severely undermining customer revenue
trust and resulting in loss of market share.Consistently stable qual i ty performance and
technological innovation can not only deepen strategic
Long-term customer stickiness and extend product life cycles
collaboration but also help the Company overcome entry barriers Medium and long Increased operating
opportunity in demanding application fields such as new energy term revenuevehicles and high-end electronics secure long-term
supply agreements and brand premium opportunities
and build a competitive moat.
81 82Kingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
Product Quality and Safety Indicators and Targets
The Company has implemented process control throughout the entire product lifecycle covering product design The Company has set a target that "from 2022 to 2030 the Company will continuously optimise the safety performance of
development manufacturing and after-sales service and has continuously strengthened quality awareness among our products to receive no health or safety complaints from the customers" and monitors management indicators such as
all employees through regular quality training. Since its establishment the Company has not experienced any recall customer satisfaction and customer complaint resolution rate. In 2025 the Company successfully achieved the above target
incidents fully demonstrating the excellent quality of the brand. provided customers with high-quality products and services and effectively maintained market competitiveness.
2025 Product and Service Quality Targets and Progress of the Company
Product Quality Management Mechanism of the Company
Indicator Unit Target Achievement Status in 2025
Health and safety-related customer complaint rate % 0 0 achieved
Product design and development Product safety control Product recall management Data Security and Customer Privacy Protection
Conduct product verification In accordance with the Product Formulate the Product Recall The main data types of the Company comprise seven categories namely R&D data marketing data financial data production data
validation monitoring mea- Safety Control Procedure imple- O p e r a t i n g S t a n d a r d s t o supply chain management data integrated management data and personal data. The Company strictly complies with relevant laws
surement inspection and ment management for products specify the recall process and and regulations including the Cybersecurity Law of the People's Republic of China the Data Security Law of the People's Republic of
testing in accordance with the and manufacturing process responsible departments for
requirements of the Design and management related to product non-conforming products and China and the Personal Information Protection Law of the People's Republic of China and has established a full lifecycle management
Development Control Procedure safety through a cross-functional incorporate on-site product mechanism covering data collection storage and use to ensure the legality and security of information processing.to ensure that products meet the team working model. returns and recall data into
requirements. p e r f o r m a n ce i n d i c a t o r s The Company has established an Information Security Group responsible for establishing and improving the information security
The objectives for product con- thereby effectively safeguarding management system formulating information security policies coordinating and supervising the implementation of information
formance include protection re- customers' rights and interests. security work across departments and building an information security management institutional system featuring "internal control +
liability durability serviceability
environmental protection safety external collaboration". Internally the Company has formulated the Information Security Management Regulations the Data Security
development safety and cost. Management Measures the Data Classification and Grading Management Measures and other institutional standards and established
a data classification and grading control mechanism. Externally the Company has formulated the Requirements for Supply
Chain Information Security Management conducted information security assessments during the supplier onboarding process
incorporated information security clauses into supplier contracts and agreements and regularly carried out supplier information
security assessments to ensure that information security risks in the supply chain are controllable. During the reporting period the
Company's information security system continued to operate effectively an ISO 27001 Information Security Management System
Customer Services Customer Feedback Channels certification was carried out2 and no major information security incidents occurred.of the Company The Company has built a multi-dimensional information security protection system integrating information security management
The Company is customer-centred and into daily operations and employees' behavioural habits effectively safeguarding the security of the Company's information and data.has always regarded customer satisfaction
as an unremitting goal. In the face of
customer complaints the Company Tel: +86（020）-66818888 Information Security Prevention and Control Measures of the Company
upholds the principles of transparent and
fair complaint handling has established Fax: +86（020）-66848888 Information security technical protection
diversified customer feedback channels
such as telephone fax and official Official Account: Kingfa New Materials Vulnerability scanning and fixing: Quarterly arrange information security engineers for vulnerability scanning penetration
account fully listens to customers' voices testing and weak password inspection on the intranet regularly summarise all inspections reinforcements and tracking pre-
pare a summary report and announce the completion of the work internally.and has built a graded complaint response Address: 33 Kefeng Road Science City
mechanism sett ing di f ferent iated Access permission settings: Construct an access control and privileged account management system and assign the infor-mation security engineers to conduct a behavioural audit on the account permissions of product managers administrators
response time standards according to the Postal Code: 510663 and external consultants.urgency of customer complaints to ensure Encrypted transmission and storage: Encrypt data for storage and transmission to ensure data confidentiality and integrity.that all types of requests are handled Data backup: Perform regular backup and recovery tests on important data to ensure data reliability and availability.promptly and professionally.
2 In 2025 the Company organised and advanced work related to ISO 27001 Information Security Management System certification and officially ob-
tained the ISO 27001 certification in February 2026.
83 84Kingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
Information security culture development Sustainable Supply Chain Management
Information security training for employees: Incorporate information security training into onboarding training for new The main supplier types of the Company include raw material suppliers equipment spare parts suppliers operating
employees and provide regular information security-themed training sessions to employees in key positions such as finance
procurement sales and IT. materials suppliers and service providers. The Company has established a full-lifecycle supplier management system. Based
Information security training for suppliers: Require suppliers to provide at least one information security awareness training on the differentiated needs of the Company's various business sectors and product categories the Company has achieved
session for all their employees each year to ensure that they understand the Company's information security policies and targeted and transparent supply chain management promoting the sustainable transformation of the supply chain.regulations.Information security incentives: Establish three levels of information security incentives to encourage employees to actively
participate in the Company's information security development and management optimisation report and stop non-
compliant behaviour and safeguard the Company's information security. Governance
Sustainable supply chain management is an important aspect of the Company's efforts to build sustainable
competitiveness. In 2025 the Company adjusted and optimised the organisational structure of its supply chain
Information security emergency management management and newly established the Supply Chain Management Department. Relying on a professional supply chain
management team the Company coordinated the Group's requirements suppliers' full lifecycle management and
Information security emergency response: Formulate the Emergency Plan on Information Security establish an informa- logistics compliance control so as to build an efficient and comprehensive sustainable supply chain management system.tion security emergency response organisation classify emergency incidents standardise emergency response procedures
ensure the physical security operational security and data security of important information systems of the Company and
minimise the harm caused by emergency information security incidents to the greatest extent possible. The Company has established and improved a full-lifecycle supplier management system and formulated internal
policies such as the Evaluation and Application Procedures for Supplier Classification and the Supplier Audit Management
Regulations. In 2025 the Company completed the addition and optimisation of 29 standardised documents related
to supply chain management processes continuously strengthening the institutional foundation for full-process
During the reporting period: management covering supplier access evaluation exit and risk control thereby providing assurance for supply chain
security stability and sustainable operations.The Company conducted 55 information security audits and 100% of the identified information security risk items were ful-
ly rectified.The Company organised 40 information security training sessions including information security onboarding training for Strategy
new employees information security awareness training for all employees and special training on the ISO 27001 Informa-
tion Security Management System achieving full coverage of key groups. By continuously enhancing the level of sustainable supply chain management the Company can strengthen the overall resil-
The Company organised an information security emergency drill effectively enhancing the information security emergency ience of the supply chain effectively hedge against the risks of supply disruptions and cost fluctuations caused by geopoliti-
response capabilities of the relevant departments and personnel. cal turmoil and extreme weather and a sound supplier ESG management system helps to enhance brand competitiveness
provide customers with greener and more reliable material solutions and support the growth of market share and revenue.Analysis of Sustainable Supply Chain Management Risks
and Opportunities of the Company
Major Risk/Oppor-
tunity Specific Description Scope of Impact Financial Impact
Heightened geopolitical risks directly lead to sharp
fluctuations in the prices of upstream supply resourc-
Employee Information Security Training Session Employee Information Security Training Session
Operational and es; climate risks such as extreme weather are becom-
cost risk ing increasingly frequent directly impacting raw ma-
Short medium and Increased operating
The Company strictly protects customer privacy information in accordance with the Identification and Compliance terial supply logistics and production and may result
long term costs
in unstable supply and uncontrollable procurement
Assessment Management Procedures for Laws and Regulations and Stakeholder Requirements controls post-based costs.data access permissions by implementing the principle of minimum authorisation carries out data desensitisation
The Company has a comprehensive suppl ier
and anonymisation to better protect customer privacy and clearly defines red lines for information sharing strictly Brand and market evaluation system and through the system portal Short medium and Increased operating
prohibiting the disclosure of customer information and other personal data to unauthorised third parties. During the opportunitie communicates ESG concepts to suppliers enhancing long term revenue
reporting period the Company did not experience any customer privacy leakage incidents. their awareness and capabilities in ESG.
85 86Kingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
The Company has established an SRM supplier management platform to improve the quality and efficiency of Supplier Management System of the Company
supplier management. In the future the Company will continue to deepen the green transformation and digital
upgrade of the supply chain building a more resilient and more sustainable global supply network and using supply
Classified management
chain strengths to drive the Company's high-quality development.Formulate the Evaluation and Application Procedures for Supplier Classification Management in combination
with the principles for evaluating the importance of material categories and supplier dependency classify the sup-
Supplier Management Platform of the Company pliers of various materials and carry out differentiated management for four types of suppliers namely strategic
suppliers key collaborative suppliers collaborative suppliers and general suppliers.Onboarding management
Formulate supplier introduction rules to standardise the selection and management process for the new suppliers
establish differentiated supplier introduction standards based on the needs for category management to strictly
control supply risks evaluate upstream supply capabilities and accommodate the needs for resource reserve and
optimisation.Audit management
Formulate the Supplier Audit Management Regulations and conduct routine audits for key suppliers according
to the audit plan evaluate whether the suppliers' management systems remain effective and are continuously
improved audit problematic suppliers to evaluate the effectiveness of the suppliers' problem improvements in
order to eliminate the suppliers with supply risks in a timely manner.Performance management
Formulate the Supplier Performance Management Regulations and continuously pay attention to the suppliers'
Supplier management platform performance in delivery quality and services output the overall performance results of the raw material suppliers
on a quarterly basis and put them into practice provide the suppliers with corresponding incentives rewards and
punishments for the suppliers with different performance levels (A-D) improve the efficiency of the supply chain
and realise the differentiated demonstration of supplier value.Impact Risk and Opportunity Management Collaborative management
The Company has formulated supply chain risk management processes closely monitored developments in politics Establish a normalised multi-level supplier collaboration mechanism through diversified channels such as suppli-
er conferences technical exchanges daily business exchanges and quality exchanges.military affairs the economy climate and other fields across regions worldwide identified risk factors and formulated
risk contingency plans in advance and adjusted procurement and inventory strategies in a timely manner.The Company effectively manages and controls supply chain risks by implementing measures such as full-lifecycle sup-
plier management enhancing supply chain resilience and practising sustainable procurement concepts. The Company
has also established an early warning mechanism for high-risk raw materials. By continuously tracking the production
status of upstream suppliers and signing four major agreements with suppliers namely supply agreements quality as-
surance agreements environmental protection agreements and technical agreements the Company has achieved in-
depth control over the supply chain and minimised the adverse impacts that risks may cause as far as possible.Supplier Management
The Company has established and continuously improved a full-lifecycle supplier management system. In 2025 the
Company optimised the pre-examination onboarding mechanism for equipment spare parts suppliers and service
providers while simultaneously improving the performance grading management system implementing differentiated
management and targeted empowerment based on supplier positioning and performance.
87 88Kingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
Supply Chain Security The Company has established an ESG management mechanism of "training - evaluation – improvement" for suppliers
systematically identifying and enhancing gaps in suppliers' sustainable management capabilities and empowering
The Company adopts four major measures including localised deployment key material control business integration and suppliers' sustainable development.industrial-trading collaboration to build a full-chain risk prevention and control system systematically enhancing supply
chain resilience and risk resistance capabilities and ensuring the supply of key materials and the stability of production. ESG Management Mechanism for Suppliers of the Company
Supply Chain Security Assurance Measures of the Company
Localised supplier deployment Strengthened management of key materials
Leveraging our global production capacity layout For single-source material categories and strategic
the Company actively cultivates regional localised critical materials the Company formulates tar-
supply resources shortens the supply chain radius geted procurement strategies and development
and reduces cross-border supply risks and delays. plans and deepens communication and collabo- Normalised training Systematic assessment Targeted improvements
ration with suppliers through the implementation
of consignment models3 and other measures to Leverage annual supplier con- Systematically perform sus- Establish a hierarchical man-
safeguard supply chain stability.ferences supply chain support tainability risk assessment and agement system based on
plans SRM and special capaci- audit environmental and social supplier ESG portraits draft tar-
Internal collaboration among business Deepened industry-trade collaboration ty training to regularly carry out responsibilities. geted improvement plans and
sectors mechanism the promotion of sustainable incorporate them into the sup-
For the modified plastics sector the Company The Company enhances the effectiveness of development concepts and ca- plier performance appraisal.procures resin raw materials produced by Liaoning industrial-trade coordination in the supply chain pacity building.Kingfa and Ningbo Kingfa through internal pur- establishs a production and trading inventory
chasing enhancing the self-sufficiency of key raw linkage mechanism and gives full play to the role
materials thereby mitigating the risk of upstream of the trading sector as a "reservoir" for regulation.resource supply disruptions and ensuring supply
security at the source.
3 Under the consignment model suppliers are responsible for dynamic inventory monitoring and replenishment to ensure the accurate and timely
supply of materials. Case The Company Convened a Supplier Conference to Build Consensus on Cooperation
Sustainable Procurement On 5 December 2025 the Company grandly convened its annual supplier conference bringing together
more than 300 core suppliers and nearly 500 representatives. At the conference the Company's leaders
The Company works closely with suppliers to jointly build a sustainable supply chain. The Company has formulated the systematically explained the development strategy and thoroughly communicated the coordination
Sustainable Procurement Policies and signed the Supply Agreement with suppliers incorporating ESG performance in requirements in the areas of supply chain procurement and technology further building consensus on
areas such as environmental protection labour rights health and safety and business ethics into supplier introduction cooperation between the Company and its suppliers and injecting momentum into elevating the quality
assessments and taking this as a prerequisite for long-term and stable cooperation so as to reduce suppliers' ESG non- level of the supply chain.compliance risks and ensure the implementation of sustainable supply chain management.Four Major Supplier Assessment Dimensions
Environmental protection Labour rights Health and safety Business ethics
Environmental manage- Child Labour and minor Safety Information security
ment Anti-discrimination Management of occupa- Morality and integrity
Energy conservation and Forced labour tional diseases Intellectual property
emission reduction
Working hours and sala- Lodging sanitation
Resource utilisation The Chairman Delivered the Opening Remarks The Chairman Delivered the Opening Remarksries Management of toxic
Free choice of employ- flammable and explosive
ment products
Freedom of association
89 90Kingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
Case The Company Conducted Supply Chain Management Training to Enhance Indicators and TargetsSustainable Development Capabilities
The Company has established sustainable supply chain management targets and monitors management indicators such
In 2025 the Company continued to build the as the on-site audit coverage rate of core suppliers the proportion of suppliers with the environmental management sys-
talent pipeline for the supply chain manage- tem certification the qualified rate of suppliers for protecting the rights and interests of labourers the supplier code of
ment team focusing on systematic training conduct signing rate and the sustainable procurement training coverage. In 2025 the Company continued to promote the
on topics such as the Risk Identification and sustainable transition of the supply chain and made multiple advances in sustainable procurement.Avoidance in Overseas Procurement During
the Process of Globalisation and the Opera-
tional Management of Procurement Across 2025 Sustainable Supply Chain Management Targets and
All Categories thereby enhancing the supply Progress of the Company
chain team's ability to identify and manage
risks in the upstream and downstream seg- Training on the Risk Identification and Avoidance in Overseas
ments of the supply chain. Procurement During the Process of Globalisation Indicator Unit Target Achievement Status in 2025
On-site audit coverage of % Enhance the on-site audit coverage of core sup-core suppliers pliers to 90% by 2030. >90 achieved
Equal Treatment to Small and Medium-sized Enterprises
Proportion of suppliers From 2022 to 2030 ensure that 100% of key raw
The Company complies with relevant requirements such as the Regulations on Ensuring Payments to Small and with the environmental % materials are sourced from suppliers with an envi- 60.26 steadily pro-
Medium-sized Enterprises establishes and improves a fair and just supplier payment management system does not set management system cer- ronmental management system certification (ISO gressing
unreasonable payment conditions or discriminatory clauses in contracts and treats all types of suppliers equally including tification 14001).small and medium-sized enterprises. The Company continuously optimises its procurement and payment processes From 2022 to 2030 ensure that the suppliers
strictly fulfils its payment obligations in a timely manner in accordance with contractual agreements and effectively Qualified rate of suppliers for protecting the rights % comply with labour laws and regulations and an- 100 achieved
safeguards the lawful rights and interests of small and medium-sized enterprises; at the same time it has established a and interests of labourers nually 100% suppliers are qualified in protecting the rights and interests of labourers.regular communication mechanism to provide necessary support to suppliers as small and medium-sized enterprises in
areas such as technical standards and quality control promoting the coordinated development of the industrial chain. Supplier code of conduct From 2022 to 2030 ensure that the supplier code
signing rate % of conduct is 100% signed every year. 100 achieved
As of the end of the reporting period the balance of the Company's accounts payable (including notes payable) did not
exceed RMB 30 billion accounted for no more than 50% of total assets and none of the enterprises within the scope of the Sustainable procurement From 2022 to 2030 ensure that the annual sus-
consolidated financial statements was required to disclose information on overdue unpaid amounts owed to small and training coverage % tainable procurement training coverage of pur- 100 achievedchasing specialists reaches 100%.medium-sized enterprises in the National Enterprise Credit Information Publicity System.
91 92Kingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
Promoting Industry Development Case First Appearance at the Plastics Recycling Show Europe
As an industry leader the Company continuously advances and actively participates in industry dialogue promotes
collaborative innovation across the upstream and downstream; at the same time the Company is deeply involved In 2025 on the occasion of the establishment of
in the development of international or national standards leads the standardised development of the industry and Kingfa (Spain) the Company first appeared at the
continues to contribute its wisdom and strengths to enhancing the international discourse power of China's new Plastics Recycling Show Europe (PRSE) the most
materials industry and building a healthy and orderly industry ecosystem. professional recycled plastics industry exhibition
in Europe. Although the Company's exhibition
stand was limited in size the on-site response was
Industry Activities enthusiastic and the Company engaged in in-depth
exchanges with numerous European brand owners. In-depth Exchanges with Brand Owners at the PRSE
The Company actively integrated into the global industrial innovation network and attended more than 10 top domestic and in-
ternational industry events in 2025 including the European Meeting on Fire Retardant Polymeric Materials the Rhine Forum the
Plastics Recyclers Europe Annual Meeting the China Polyolefin Industry Application Conference and the Global Battery Innova-
tion Conference. Through keynote speeches technology showcases and high-level dialogues the Company demonstrated its
cutting-edge technological achievements and sustainable development solutions and joined hands with partners across the Case Anti-rattle Material H12 Won the 2025 China Household Appliance Industry Chain Golden Nail Award
global industrial chain to jointly drive the materials industry towards a new stage of high-quality development.In 2025 at the China Household Appliance Industry Chain Conference the Company's self-developed anti-rattle
Case The Company Attended the Supplier Quality Forum Held by a Leading Consumer Electronics Enterprise Sharing ESG Practices to Promote Value Enhancement across the Industrial Chain material H12 (ABS silent solution) stood out from hundreds of participating companies and was awarded the 2025
China Household Appliance Industry Chain Golden Nail Award. This was another authoritative recognition received by
the product following its UL and CQC certifications.On 16 October 2025 Wu Di General Manager of the
Company was invited to attend the Supplier Quality Forum Traditional ABS materials are prone to abnormal noise caused by component friction affecting the user experience of
hosted by a leading consumer electronics enterprise household appliances. By optimising the degree of stick-slip and efficiently dissipating frictional energy H12 material
under the theme of "A New AI Chain Journey Quality for reduces noise risk at the source. Its noise risk RPN value reached an industry-leading 1-3 (low-risk range) making it the
the World" and delivered a keynote speech entitled " preferred silent solution for leading household appliance brands.'Plastics' on Low Carbon 'Connecting' the Future" at the
ESG management and value enhancement breakout From thousands of stick-slip friction tests in the laboratory to precise control of production line processes the H12
session where he shared in depth the Company's practical project team redefined silent standards with cutting-edge technology demonstrating the Company's solid capability to
highlights and notable achievements in the ESG field as General Manager Wu Di Delivered a Keynote Speech empower the high-quality development of the household appliance industry chain through technological innovation.well as how ESG management can empower the overall
value enhancement of the industrial chain.Case The Company Attended the European Meeting on Fire Retardant Polymeric Materials Conference (FRPM)
The Company's representatives attended
the 20th European Meeting on FRPM held in
Madrid Spain and shared our independently
developed Simple and Efficient Full Recycling of
Flame-retardant Polyester promoting Chinese
technologies and standards to the world and
contributing Chinese wisdom to the sustainable The Company Won the 2025 China Household Appliance Industry Chain Golden Nail AwardThe Company's Representative Shared Simple and
development of the global materials industry. Efficient Full Recycling of Flame-retardant Polyester
93 94Kingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
Case Appearance at the Conference on Plastics in Automotive Engineering (PIAE) Case The Company Attended the Renewable New Material Conference and Hosted the Sub-forum of "Recycled Materials Carbon Footprint Forum"
The Company attended China's first "Renewable New Material
The Company made its debut at the conference Conference" and hosted the "Recycled Materials Carbon
on PIAE a premier European automotive Footprint Forum" where the Company shared the report titled
industry event hosted by the Verein Deutscher Frontiers in Recycled Polyester Preparation Technology and
Ingenieure (VDI) and delivered a keynote LCA Research introducing innovative recycling technologies for
speech showcasing the Company's innovation marine waste polyester and decommissioned flame-retardant
capabilities and technological expertise to polyester and demonstrating their environmental benefits and On-site Technical Sharing at the
experts from the global automotive industry carbon reduction effects. "Renewable New Material Conference"
chain. The speech attracted approximately
60 professionals for in-depth listening on site. In addition the Company actively expands its network of strategic partners and carries out comprehensive collabora-
During the conference the Company connected tion in areas such as technology R&D and frontier industrial applications jointly promoting technological upgrading
with more than 500 industry peers and after the The Company's Representative Delivered a Speech at
the Conference on PIAE in the industry and the co-development of the ecosystem.conference the Company carried out technical
exchange activities with multiple customers.Preparation of Standards
As an industry-leading enterprise the Company actively participates in the formulation of various standards and
plays important roles in multiple standardisation technical committees including the National Technical Standardi-
Participation in the CEO Roundtable for Automotive Suppliers in China Hosted sation Committee on Plastics and the International Organisation for Standardisation ISO/TC61/SC9/WG27 and ISO/Case by the Verband der Automobilindustrie TC330. In 2025 the Company participated in drafting and issuing two international standards and led/participated
in the formulation and revision of 45 national standards and two industry standards using its technical influence to
guide industry rules and contribute Chinese wisdom to the development of the global technical standards system.The Company participated in the CEO Roundtable for automotive suppliers in China hosted by the Ver-
band der Automobilindustrie (VDA) and exchanged views on China market trends and the policy frame-
work. Participants included CEOs of vehicle manufacturers and parts enterprises in China and Germany International/National Standards Participated in by the
as well as the Chairman and Managing Director of the VDA and industry leaders from various associations/ Company (Partial)
departments/research institutions.Standard Number Standard Name Standard Type
ISO 6031:2025 Functional extenders for special application — Nanoscale diamonds for polymer composites International standard
ISO 6427:2025 Plastics — Determination of matter extractable by organic solvents (conventional methods) International standard
GB/T 32366-2025 Biodegradable poly(butylene adipate terephthalate) (PBAT) National standard
GB/T 46020.2-2025 Plastics — Guide of design for recycling — Part 2: High density polyethylene (PE-HD) materials National standard
GB/T 46498-2025 Specifications for take-back service evaluation of waste and used household electrical appliances National standard
GB/T 46576-2025 Greenhouse gases — Quantification methods of carbon footprint of products — Mechanical recycling recycled plastic products National standard
2025 Performance in Promoting Industry Development of the Company
As of the end of the reporting period the Company had cumulatively led and participated in the drafting and pub-
Roundtable Meeting Site lication of 14 international standards and had led/participated in the formulation and revision of more than 260
national standards industry standards local standards group standards and others.
95 96Kingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
Talent Catalysis
a Sustained Chain
Reaction of Goodwill
The Company upholds a people-oriented development philosophy regards
employees as the cornerstone of corporate development fully protects
employees' rights and interests strives to foster an open diverse and inclusive
workplace ecosystem builds a high-quality talent team and achieves the
coordinated enhancement of employee growth corporate development and
social value. The Company takes social benefit as the foundation for business
development regards serving the country through industry as its mission and
gives back to society through practical actions.Highlight performance:
Employee satisfaction: 87.66% up 5.19% year-on-year
Total employee training hours: 553686.40 hours
Health and safety risk assessment site coverage rate: 100%
Number of work-related deaths: 0
Social welfare investment: RMB 7442200
SDGs benchmarking:
97 98Kingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
Employee Rights and Benefits Employee Rights and Benefits
The Company effectively safeguards employees' lawful rights and interests and has formulated systems such as the Welfare Man-
Equality Inclusion and Diversity agement Regulations and the Employee Retirement Management Regulations thereby establishing a comprehensive multi-level
protection system for employee rights and benefits. The Company also continuously promotes the development of the "Kingfa
The Company adheres to lawful and compliant employment strictly follows the Universal Declaration of Human Rights the Homeland" enabling employees to feel the warmth and care from the Company and strengthening organisational cohesion.ILO Core Conventions the Social Accountability (SA 8000) and the laws and regulations international labour conventions
and initiatives of all places where the Company operates and has formulated the Social Responsibility Policies clarifying the "Kingfa Homeland Culture" System
Company's specific action guidelines and objectives in all aspects of employee rights and interests and human rights protection
and promoting the development of an equal inclusive and diverse workplace environment.Equal Inclusive and Diverse Practices of the Company Kingfa homeland
- Consolidate the foun- Cohere the strength
Fight against discrimination and harassment dation of the "home" of the "home" of the "home"
The Company has formulated the Anti-Discrimination and Anti-Harassment Management Regulations following the
principles of fairness justice and transparency in all aspects to ensure equal employment opportunities.Child labour and minor workers
Having formulated the Management Regulations for Child Labour and Minor Workers the Company doesn't accept
suppliers or partners that employ child labour or minor workers.Forced labour
Having formulated the Management Regulations on the Prohibition of Forced Labour the Company prohibits forced labour
and protects the employees' rights to rest vacation and termination of labour relationships during the term of the contract.Construction of "Kingfa Homeland Culture"
Labour protection for female employees
Having formulated the Regulations on Labour Protection and Management of Female Employees the Company has cre- Employee Rights and Benefits System of the Company
ated a diverse inclusive culture attached importance to the rights and interests of female employees and emphasised
equality between men and women and equal pay for equal work.The Company has set targets that "from 2022 to 2030 ensure that no discrimination or harassment occurs every year and the
coverage rate of anti-discrimination and anti-harassment training reaches 100%." In 2025 the Company had no incidents of
discrimination or harassment and the coverage rate of anti-discrimination and anti-harassment training was 100%.Employee rights Employee benefits
Employee Recruitment Pay wages on time Carry out birthday and festive greetings and condolences
Purchase five social insurances and one housing fund Provide free annual health check-ups
The Company strictly complies with laws and regulations such as the Labour Law of the People's Republic of China and the Labour
Contract Law of the People's Republic of China upholds the employment principles of legality and compliance fairness and impartiality Provide maternity leave marriage leave bereave- Provide various welfare allowances and subsidies such as ment leave annual leave and other types of leave in annual and quarterly benefits transport subsidies senior-
and has established a global talent attraction mechanism. In 2025 the Company held more than 100 campus presentations across accordance with the law ity allowances and expatriate allowances
eight major regions in China and extended them to overseas locations such as North America and Singapore while simultaneously Provide canteen dining services and staff welfare dormito-
launching a special initiative for the recruitment of doctoral talent to attract highly qualified talent through multiple channels. ries and provide supporting recreational activity venues
Provide basic health diagnosis and treatment and psy-
The Company continues to carry out university-enterprise exchanges and cooperation working with more than 20 universities chological counselling services in the medical room
including Tsinghua University South China University of Technology and Sichuan University. Through various means such as jointly Establish a special assistance fund for employees in diffi-
cultivating innovative talent university visits and exchanges jointly building internship and practice bases donating university culty and provide hardship assistance grants to employ-
ees in difficulty
scholarships and sponsoring named activities the Company deepens industry-university-research collaboration and fulfils the leading
enterprise's responsibility for talent development. Provide schooling support for employees' children
99100
Diverse Intensive Services
Welfare and Care System
10 Interest Associations
3000m2 Activity Venue
Party-mass Integrated Service CenterKingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
Upholding popular small-scale and routine activities the Company innovates the forms and content of cultural and Democratic Communication
sports activities according to local conditions continuously improves the quality and standard of employee activities
and stimulates employees' enthusiasm for participation. The Company has established a systematic communication management system and created a multi-dimensional commu-
nication channel for "daily communication - appeal management - democratic participation" around the concept of "following
procedures respecting hierarchy and facilitating sincere interactions". The Company has built an employee appeal management
platform and constructed a rapid response mechanism to ensure that employees' reasonable suggestions are processed in time.Employee Communication Channels of the Company
Grassroots Semi-
New Year Activity Employee Winter Sports Meeting shift annual and Online forum
meetings annual meetings
Weekly
meetings Questionnaire
The Company signs Democratic Agreements with employees in accordance with regulations and through platforms
such as the congress of trade union member representatives and the workers' congress signs Collective Contracts with
employee representatives improves democratic management mechanisms and effectively safeguards employees' rights to
information participation expression and supervision. The Company conducts at least one employee satisfaction survey
Jincai Club Summer Heatwave Employee Care Visits each year and extensively collects the employees' opinions and suggestions on the working conditions remuneration
benefits career development etc.The Company innovates the design of restricted long-term equity investment achieves a balance between incentives and The Company has set the target that "from 2022 to 2030 ensure that the annual coverage rate of the collective contract is up
constraints deeply aligns core employees with the Company's long-term value encourages employees and the Company to 100%; by 2030 achieve employee satisfaction among more than 98% of the employees." In 2025 the Company's collective
to jointly improve operating performance and realises the sharing of long-term value. contract signing rate was 100% and the employee satisfaction was 87.66% a year-on-year increase of 5.19%.Case Jiangsu Kingfa Implemented Equity Incentives for Core Employees
In July 2025 Jiangsu Kingfa implemented equity incentives for the Group's core employees through a
capital increase and share expansion. As of 31 December 2025 all establishment work for the employee
shareholding platforms under this equity incentive had been completed with a total of 29 limited
partnerships established (hereinafter collectively referred to as the "Partnerships"). The incentive recipients
subscribed for not more than RMB 118611614 in newly increased registered capital of Jiangsu Kingfa
through the employee shareholding platforms at a consideration of RMB 635758251 with a subscription
price of RMB 5.36 per RMB 1 of registered capital. Upon completion of this equity incentive the incentive
recipients indirectly held equity interests in Jiangsu Kingfa through the Partnerships.
101 102Kingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
Employee Training and Development The Company focused on the high-quality development of its marketing business.Through initiatives such as induction training the Sword Forging Programme and the
Sword Sharpening Programme the Company achieved tiered capability enhancement
Employee Training for marketing talent established a full-cycle marketing talent development system of
"newcomer development - core talent refinement - expert cultivation" and advanced the
Guided by the "1438" strategy and our global development objectives the Company adheres to the training philosophy implementation of the "three-in-one" marketing strategy.of "full coverage tiered development practical focus and knowledge inheritance". The Company has established a talent Marketing
development system covering the three major systems of marketing technology and internal operations connecting system talent development
domestic and overseas markets and spanning the full career life cycle from new employees to senior executives. On
this basis the Company focuses on advancing the development of international talent and building an overseas talent
ecosystem. Through university-enterprise collaboration cultural integration and practical empowerment the Company
promotes the coordinated enhancement of employee growth corporate development and social value laying a solid
talent foundation for its high-quality and sustainable development.Executive Seminar for New Campus Recruits of the Marketing Centre Completion of Sword Sharpening Programme Phase IV
2025 Employee Training Programme Progress of the Company
The Company has established a tiered training system for technical talent. Through
The Company fully launched training programmes for senior middle and junior manage- programmes such as the Innovation Class and the Creative Thinking Class (including
ment cadres promoting tiered improvements in management capabilities unifying man- overseas) it covers recent technical graduates and key talent taking into account the
agement language and supporting the efficient implementation of corporate strategy. development of both fundamental capabilities and innovation capabilities supporting the
growth of technical talent strengthening the enterprise's R&D and innovation capabilities
Management and supplying professional talent for technological advancement in the industry.cadre Technical
development system talent
development
The Senior Management Cadre Programme Was The Middle Management Cadre Programme Was The Opening Ceremony for the First Junior Management
Officially Launched at Shanghai Jiao Tong University Officially Launched at Sun Yat-sen University Cadre Programme Was Held in Guangzhou
Launch of the Creative Thinking Class Creative Series Theme-based Training for the Technical System
The Company focused on the internationalisation strategy of "rooted in China deepening
presence in the Asia-Pacific and expanding into Europe and the Americas" with an emphasis
on the coordinated development of domestic and overseas talent. The Company implemented The Company organised the Young Eagle Development Programme for newly recruited
a range of initiatives including overseas talent boot camps overseas special training graduates passing on our core corporate values and helping graduates quickly complete
programmes intensive training in China for foreign employees and overseas Young Eagle their role transition.development so as to strengthen cultural integration and business collaboration at home and
International abroad and promote the sustainable implementation of our globalisation strategy.talent Full coverage of
development the Young Eagle
Development
Programme
The Overseas Talent Training Camp Was Launched in
Guangzhou Asia-Pacific Sword Forging Programme Phase II Training Overseas Young Eagle Headquarters Intensive Training
Young Eagle Team Building Young Eagle Team Building
103 104Kingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
Employee Development Performance Management Processes of the Company
Around the "1438" strategic goal for 2030 and based on the needs of the business units the Company has integrated the
talent strategies from the perspective of marketing technologies domestic and overseas operations. The Company has set
the employee development vision of "attracting global outstanding talents activating individuals improving organisational
capabilities becoming a world-renowned employer brand and guaranteeing our realisation of the '1438' strategic goal by Performance Performance Performance Application of Performance Performance
providing a high-quality talent supply chain". The Company is committed to fulfilling the core tasks for increasing its talent plan communication appraisal and performance interview appeal
adequacy ratio organisational efficiency and organisational fit to guarantee the talents' career development. and counselling feedback results
Adhering to the employment principle of "attaching equal importance to integrity and talent and employing one's talent to the
fullest extent" the Company has constructed a "management + professional" dual-channel promotion system and job rotation Occupational Health and Safety
mechanism for employees to provide a multi-dimensional career growth path. Based on the quality model and job qualification
requirements the Company has established differentiated and reasonable career promotion standards to drive talent and The Company adheres to the management concept that "safety is essential for survival" follows the working principle
corporate strategies for symbiosis and joint growth achieving a win-win outcome for individuals and the organisation. that "production and life safety is the top priority" steadfastly pursues zero accidents and continuously improves its
occupational health and safety management system. During the reporting period the Company and its subsidiaries (14 in
Job Rotation Mechanism total) all passed ISO 45001 Occupational Health and Safety Management System certification."Dual-Channel" Promotion System of the Company of the Company
Governance
Management Professional
Channel Channel Overseas The Company strictly complies with relevant laws and regulations such as the Law of the People's Republic of China on the
Position B Prevention and Control of Occupational Diseases the Work Safety Law of the People's Republic of China and the Provisions on the
Leader Chief expert Supervision and Administration of Occupational Health at Workplaces formulated internal regulations such as the Implementation
Manager Expert Rules for the Work Safety Responsibility System and the Management Measures for the Hierarchical Control of Safety Risks
Supervisor Principal engineer established a unified safety management system based on the ISO 45001 Occupational Health and Safety Management System Position A and GB/T 33000-2025 Requirements of work safety management system for large and medium-sized enterprises and formed a
Grassroots employee Senior engineer four-level safety management network of "Group-subsidiary-department-team". Overall occupational health and safety work is
Intermediate engineer coordinated led and controlled by the Work Safety Committee of the Group while the work safety committees of each subsidiary
Junior engineer implement territorial management in accordance with national laws and regulations safety technical standards and the Domestic
Position C Company's management system standards.The Company strictly implements the principle of "three managements and three musts" (business/industry/production and
operations management with safety management required) the responsibility system for identifying "whoever in charge is
responsible" and performance linkage appraisal. The Work Safety Committee of the Group has formulated the annual Letter
of Responsibility for Work Safety set up a quantifiable safety responsibility assessment system (including result and process
indicators) and performed safety responsibilities step by step through the closed-loop mechanism of "target decomposition -
process supervision - result application" towards the general managers department heads and grassroots teams of all subsidiaries.The assessment results are directly linked to the year-end performance and the annual merit-based evaluation in order to realise
the coverage of all employees' responsibilities.In remuneration management adhering to the philosophy of being "value creator-oriented" the Company has established a
comprehensive remuneration and performance management system adopted a salary structure that combines basic salary with Strategy
floating salary and made regular adjustments based on market level and employee performance to ensure the internal fairness Based on our global production layout and the risks identified the Company has formulated the "60143" strategy for work safety
and external competitiveness of the remuneration system. management. With zero accidents as the ultimate goal the Company has established 1 globally unified safety management
system while developing 4 sets of precise implementation standards based on different business types. Supported by an
In terms of performance assessment the Company has formulated systems such as the Performance Management Regulations information-based safety management platform as the core technological enabler the Group's supervision and assessment as
established sound performance management processes and conducted performance assessment in a fair and impartial manner. the core mechanism and a safety culture led by leaders taking the lead in fulfilling responsibilities as the ideological support the
If an employee raises any objections to the performance appraisal results the employee shall communicate with the performance Company will establish a safety management system applicable to all our domestic and overseas bases and achieve Level 6 of
appraisal superior first and if no agreement can be reached an appeal may be made to the HR Department. After receiving the the ISRS by 2030. The Company will comprehensively enhance our capability for safety risk early warning and response ensure
appeal the relevant departments will conduct an investigation and evidence collection. If the appeal succeeds the performance that the work safety situation continues to remain stable and improve and build a solid safety defence line for the Company's
responsibility of the superior will be traced and assessed to ensure the fairness of the performance appraisal. high-quality development.
105 106Kingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
Analysis of Occupational Health and Safety Risks and Work Safety Management Measures of the Company
Opportunities of the Company
Major Risk/ Specific Description Scope of Financial
Specific Content 2025 Actions and Results
Opportunity Impact Impact
The Company has numerous subsidiaries and production bases that are widely Formulate the Safety Inspection Hidden Danger Investigation
distributed. This geographical dispersion extends the management radius making and Governance System regularly organise and carry out safe- Headquarters led a cross-base special safety audit ty hazard identification and investigation and establish a risk
Operational it difficult to implement the headquarters' unified standards increasing man- Short medi- campaign conducting comprehensive inspections register for safety hazards; for various safety hazards recorded in
management agement costs and creating regulatory blind spots. In addition due to differing um and long Increased of the inspected bases across multiple dimen-operating costs the risk register establish a long-term tracking and supervision risk regulatory requirements across regions if the Company's occupational health and term sions including work safety investment safety mechanism with the headquarters supervising and driving the
Safety hazard system development and production sites.safety management measures fail to be dynamically adjusted in line with changes implementation of rectification by each subsidiary and regularly
in regulations and standards this may result in administrative penalties. inspection reporting to senior executive. Drawing profound lessons from external accident
cases the Company joined external safety experts
Work safety has long been subject to close attention from regulatory Increased Include the progress of hazard rectification in the safety perfor- to carry out three special safety hazard inspections
Reputational authorities the media and the public. If a relatively large-scale safety accident Medium and operating costs mance assessment of the heads of local departments with local at the EHS level across 19 subsidiaries and 13
risk occurs it may trigger a public opinion crisis and negative evaluations in the long term leaders taking the lead in rectification; for matters overdue for Reduced bases within the Group covering grilles processes rectification or where rectification is inadequate conduct super-
capital market damaging the Company's brand reputation. equipment instrumentation special operations operating revenue vision and accountability issue regular notifications and require and major hazard sources and eliminated a total
bases to incorporate them into the annual work plan for the fol- of 1325 safety hazards.lowing year ensuring that risk hazards are fully closed out.Starting in 2025 the Company began building and deepening the application of an occupational health and safety
information platform creating a visualised window into global safety conditions addressing supervisory blind spots arising
from the wide distribution of production bases shifting risk warnings from "post-incident traceability" to "pre-incident
insight" and transforming management decision-making from experience-based judgement to data-driven approaches. Promote full coverage of safety education requiring employ-
Through the safety platform the Company has achieved real-time risk warnings end-to-end online process visibility and ees to conscientiously study and strictly comply with all rules and regulations enhance their own safety awareness at work At the beginning middle and end of the year
data-based decision-making truly realising one global network for safety management and one platform for management refrain from violating labour discipline operating in violation of the Company invited external experts to focus on
regulations or giving commands in violation of regulations and multiple key areas including production safety re-promoting the implementation of the standards system and ensuring that safety responsibilities are beyond evasion. sponsibility chemical PSM change management
Safety culture prevent accidents to the greatest extent possible. and accident emergency management and con-
education ducted three Group-wide safety training sessions
Impact Risk and Opportunity Management Ensure that new employees pass onboarding safety training for all employees.and assessment and in-service employees receive refresher
safety education every year; ensure that engineer-level person-
The Company attaches great importance to work safety and occupational health management formulates occupational nel in management supervisory professional and technical A total of 1254 work safety training sessions were
health and safety management processes and carries out relevant prior risk identification prevention and response work to job families among others receive safety training before pro-
conducted with a cumulative attendance of
motion and may only be promoted or appointed after passing 74185 person-times.reduce the likelihood of safety accidents and occupational disease incidents. the assessment.Occupational Health and Safety Management Processes of the Company
Formulate emergency response procedures such as Manage-
ment Procedures for Risks Opportunities and Emergency
Safety risk identification and control Preparedness and Response Plans to ensure that various In accordance with the annual plan 509 work
Emergency emergency plans can be executed promptly and effectively safety drills were organised including 388 on-
Hazard identification in production and operating workplaces—risk assessment of hazards determination of the risk level of in emergency situations thereby minimising casualties and response site emergency plan drills 98 special emergen-property losses to the greatest extent possible.each hazard—preparation of a four-colour risk map formulation of risk control measures for hazards—effectiveness evaluation of drills cy plan drills and 23 comprehensive emergen-
control measures—implementation of control measures—continuous attention with regular re-identification and re-evaluation cy plan drills for work safety accidents.Organise emergency drills on an ad hoc basis to strengthen
the capabilities and response speed of relevant units and per-
sonnel in handling sudden accidents.Occupational health
Pre-assessment report based on production raw materials and the occupational disease hazards and the special chapter on
occupational disease protection design to identify occupational disease hazard factors—on-site testing of occupational hazard
factors—assessment of the degree of occupational hazards—improvements carried out in the prevention and control of hazard
factors based on the principle of intrinsic safety—on-site re-testing of occupational hazard factors to determine the effectiveness
of control measures—regular testing and disclosure of results
Work Safety Management
The Company enhances work safety responsibilities at every level through measures such as safety hazard inspections safety
culture education and emergency response drills improves the Company's safety management standards and ensures the
safe and orderly conduct of all production and operational activities. Organising the "Safety Month" Activity to Identify "Safety Hazards Around Us"
Organising Employees to Carry out Emergency Drills
107 108Kingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
Case Kingfa Environmental Innovated the Safety Risk Identification Model
Kingfa Environmental fully implemented the Job Hazard Analysis (JHA) method. Through mechanism innovation and staff
deployment to the front line it changed the previous management-led assessment model organised frontline employees
to participate in assessments and improved the authenticity and accuracy of risk identification. In 2025 Kingfa Environ-
mental carried out step-by-step breakdowns and risk assessments for 413 specific operations across the entire plant for-
mulated targeted control measures and is expected to achieve a 56% reduction in the total volume of general risks.During the reporting period:
The Company strictly complied with the provisions of the Work Safety Law and purchased work safety liability
insurance for all employees of the green petrochemicals sector Zhuhai Kingfa Biomaterials Liaoning Kingfa Bioma- Providing Health Consultation Services for Employees and Their Families Providing Health Consultation Services for Employees and Their Families
terials and Zhuhai Vanteque Specialty Engineering Plastics which belong to high-risk industries covering 3604
people with premiums paid amounting to RMB 859765.Occupational Health Management
The Company has consistently placed employees' occupational health in an important position within corporate sustainable
development effectively preventing the occurrence of occupational diseases and safeguarding employees' physical and
mental health. In addition the Company has continued to carry out dynamic prevention and control of infectious diseases
reducing virus transmission and protecting the safety of all employees.Occupational Health Management
Measures of the Company Organising Employees to Learn Cardiopulmonary Resuscitation Organising On-site Psychological Health Lecture for Employees
Occupational disease management
Indicators and Targets
The Company has established annual occupational health and safety management targets broken down various
Engineering Distribution of labour Hazard factor Occupational Occupational
control measures protection supplies testing health examination health training quantitative indicators for each subsidiary and continuously monitored the completion of these indicators ensuring
Adhering to the principle of Establish standardised Make sure bases and Provide physical exam- Attach importance to the effective achievement of the Company's overall work safety and occupational health management targets."prevention and control at standards for the distribu- subsidiaries regularly inations in accordance employees' occupation-
the source" fully integrate tion of labour protection conduct testing of occu- with the Company's pro- al health and safety and
the concept of engineering supplies and equip pro- pational hazard factors duction characteristics provide pre-job occu-
controls at the plant and tective gear such as gas in the workplace and and the occupational pational health training
facilities stage implement masks and dust masks disclose the testing re- hazard factors associat- and regular occupa-
enclosed production and based on hazard types sults to employees. ed with employees' po- tional health training Occupational Health and Safety Targets and
transportation for toxic to safeguard employees' sitions with reference during employment for
and volatile materials occupational health. to the requirements of employees in order to Progress of the Company
and equip ventilation national occupational popularise occupational
detoxification and dust health surveillance stan- health knowledge.removal systems; adopt dards.sound insulation vibration Indicator Unit Target Achievement Status in 2025
reduction and noise
elimination measures for Number of work-related deaths case 0 0 achieved
high-noise equipment
and install heat insulation Employee physical examination coverage rate % 100 100% achieved
and cooling devices at
high-temperature posts; Health and safety risk assessment site coverage rate % 100 100% achieved
promote automation and
intelligent transformation
to reduce direct personnel
exposure.
109 110Kingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
Rural Revitalisation and Contributions to Case Supporting Agriculture Through Public Welfare to Empower Rural Revitalisation
the Society
To thoroughly implement the national rural revitalisation strategy the Company actively carried out public welfare
The Company actively responds to the rural revitalisation strategy effectively improves local infrastructure and living conditions initiatives to support agriculture focusing on the development of distinctive agricultural industries. By directly pro-
through targeted measures such as material donations and educational support aligned with rural development needs stimulates curing regional specialty agricultural products the Company built a bridge of consumption-based support for rural
endogenous rural development momentum and contributes to building harmonious and beautiful villages that are suitable for liv- farmers helping to promote agricultural product brands and improve quality and efficiency across the industry.ing and working. Taking social benefit as the foundation of our business development and serving the country through industry as
our mission the Company actively participates in social welfare initiatives such as donations for education poverty alleviation and In 2025 the Company drove stable income growth for farmers through actual consumption effectively alleviating dif-
assistance for persons with disabilities support for vulnerable groups earthquake relief and disaster response conveying warmth ficulties in the sale of agricultural products and established a virtuous cycle of empowering enterprise consumption
and goodwill through practical actions and contributing to the building of a better society. increasing farmers’ stable income and revitalising rural industries. In the future the Company will continue to deepen
its public welfare initiatives to support agriculture practise ESG principles through concrete actions and contribute cor-
Rural Revitalisation and Social Welfare Practices of the Company porate strength to comprehensively advancing rural revitalisation.The Company supported the "United in Fellowship Welfare Kingfa Medical donated medical supplies to Suixi County
Lottery Nurtures Young Lives" study tour for children in Zhanjiang supporting the "High-quality Development
difficult circumstances bringing corporate warmth to the Project for Hundred Counties Thousand Towns and Ten Case Establishing University Scholarships to Support Talent Development
study tour through volunteer services. Thousand Villages" through practical actions.To promote the high-quality development of education and encourage young students to study diligently
and pursue rigorous academic research the Company has continued to deepen university-enterprise coop-
eration. In 2025 the Company donated a total of RMB 3.05 million in scholarships to nearly 20 universities
across the country benefiting 386 students with outstanding academic and moral performance. Through
concrete actions the Company supported talent cultivation in higher education delivered more outstanding
professionals to society and demonstrated our corporate responsibility in valuing culture and education.Zhuhai Vanteque Specialty Engineering Plastics organised Wuhan Kingfa donated fitness equipment to Huangling
a public welfare tree-planting activity steadfastly fulfilling Primary School supporting the healthy growth of children
its mission as a corporate citizen. and adolescents.Zhuhai Vanteque Specialty Engineering Plastics organised "Role Models Entering Wuhan Kingfa organised community outreach activities building a "bridge of love"
Campus" conveying positive energy to society. between the enterprise and the community.During the reporting period:
The amount invested in social welfare (including rural revitalisation) was RMB 7442200.
111 112Kingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
Strengthening Resilient
Governance
to Lead the Future of
Materials
The Company upholds a standardised and transparent governance phi-
losophy and has established a decision-making and supervision system
with clear powers and responsibilities. The Company has integrated risk
prevention and control and compliance management into daily opera-
tions adhered to the bottom line of business ethics contributed to fos-
tering a fair and equitable competitive environment and promoted the
long-term sustainable development of the economy and society.Highlight performance:
The information disclosure work was evaluated as: A
Number of corruption-related litigation cases: 0
SDGs benchmarking:
113 114Kingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
Corporate Governance Strategy
A sound corporate governance system is of great significance in promoting healthy competition and orderly development
Governance in the capital market. Disorder in corporate governance may give rise to conflicts of interest between shareholders and
management loss of control over the management of connected transactions leakage of inside information and other
The Company complies with laws and regulations such as the Company Law of the People's Republic of China the Securities Law issues thereby triggering systemic crises and undermining the foundation of the Company's development. By contrast
of the People's Republic of China the Code of Corporate Governance for Listed Companies and the Guidelines for the Articles of standardised corporate operations and transparent information disclosure can enhance market recognition maintain
Association of Listed Companies and has formulated internal systems such as the Articles of Association of Kingfa Sci. & Tech. Co. investor confidence and strengthen the Company's long-term competitiveness.Ltd. and the Rules of Procedure for the Shareholders' Meeting of Kingfa Sci. & Tech. Co. Ltd. and the Rules of Procedure for the
Board of Directors of Kingfa Sci. & Tech. Co. Ltd. thereby establishing a sound and comprehensive corporate governance structure
standardising the Company's operations and safeguarding the lawful rights and interests of shareholders and investors. Analysis of Risks and Opportunities Related to Corporate
Governance of the Company
In 2025 in accordance with the provisions of relevant laws regulations and normative documents and in light of our actual
operating circumstances the Company abolished the Board of Supervisors and transferred all of its functions and powers to the Major Risk/
Audit Committee of the Board of Directors in order to enhance supervisory efficiency and strengthen supervisory independence. Opportunity Specific Description Scope of Impact Financial Impact
A scientific and well-developed governance structure
Corporate Governance Structure of the Company can effectively ensure the efficient operation of our Reduced operating
Governance disor- decision-making mechanisms and standardised and revenue
der risk transparent information disclosure thereby safeguard- Long terming the lawful rights and interests of shareholders Increased operating
Shareholders' Meeting reinforcing a sound market reputation and avoiding costs
regulatory penalties and litigation risks.Standardised and efficient corporate governance can
Board of Directors Resource efficiency reduce the costs of information transmission and Medium and long Reduced operating
opportunity management coordination improve the efficiency of strategic resource allocation and enhance the term costs
Company's performance and market competitiveness.The Company adopts strategies including Board diversity transparent information disclosure and standardised
Remuneration and Strategy and investor management promotes scientific and rational decision-making as well as efficient and effective
Nominating Committee Evaluation Committee Sustainability Committee Audit Committee implementation effectively enhances investor confidence optimises its capital market image and thus injects long-
term momentum into the Company's sustainable and high-quality development.Impact Risk and Opportunity Management
The Company has established management processes for corporate governance-related impacts risks and opportu-
nities and enhanced governance effectiveness by improving the corporate governance structure as well as by ensur-
ing effective information disclosure and investor relations management.Standardised and Effective Operation
The Company operates in strict accordance with the requirements of relevant laws regulations and normative
documents such as the Company Law of the People's Republic of China the Securities Law of the People's Republic
of China the Code of Corporate Governance for Listed Companies the Stock Listing Rules of the Shanghai Stock
Exchange continuously improves and refines our corporate governance structure and enhances the effectiveness of
corporate governance.
115 116Kingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
2025 Performance of Duties by the Board of During the reporting period the Company convened
Directors of the Company
Effectiveness of the performance of duties of the Board of Directors 4 shareholders' meetings at which a total of 20 proposals were considered and approved;
13 meetings of the Board of Directors with a total of 67 proposals considered and approved;
The Board of Directors carried out its work in strict accordance with relevant provisions such as the Articles of Associa-
tion and the Rules of Procedure for the Board of Directors. The number and composition of Board members complied The Board of Directors has established an Audit Committee a Remuneration and Evaluation Committee a Nominat-
with the requirements of laws and regulations. The convening and holding of Board meetings the review of proposals
and decision-making procedures were lawful and compliant. Directors diligently and conscientiously performed their ing Committee and a Strategy and Sustainability Committee under it and held a total of 13 meetings at which 22
duties. proposals were considered and approved.The Board of Directors has established four special committees namely the Strategy and Sustainability Committee
the Nominating Committee the Remuneration and Evaluation Committee and the Audit Committee. Each special
committee has clearly defined responsibilities and operates effectively ensuring the efficient operation and sound de-
cision-making of the Board of Directors.Conflict of Interest Management
The Company will always uphold the principles of fairness and transparency avoiding behaviours that might lead
Board independence to conflicts of interest as far as possible. The Company continues to establish and improve its conflict of interest
management system requiring employees and partners to identify and report conflicts of interest in business activities.The Company attached great importance to the independence of the Board level formulated and periodically revised In addition the Company enhances employees' awareness and alertness to conflicts of interest through training and
the Independent Director Work System and attached importance to independent directors holding a majority of seats
on the special committees under the Board of Directors so as to ensure the independence of the operation of the spe- education and ensures that employees can consciously abide by the Company's policies on conflicts of interest.cial committees strengthen the fairness of decision-making by the Board of Directors and safeguard the legitimate
rights and interests of all shareholders especially small and medium-sized shareholders.Transparent Information Disclosure
The Company strictly complies with Measures for the Administration of Information Disclosure by Listed Companies
Board diversity has formulated and implemented the Information Disclosure Management System and discloses matters related to
the Company's operations and governance to the public through periodic and ad hoc announcements in a truthful
The Company attached importance to Board diversity and incorporates factors such as gender age and professional
background into the Nominating Committee's criteria in the director nomination process. The Company believed accurate complete timely and fair manner strictly fulfilling the information disclosure obligations of a listed
that directors with diverse backgrounds help the Board of Directors better oversee the Company's management and company objectively and comprehensively presenting the Company's performance in operations and corporate
operations assess the risks and opportunities of the Company's business model from different perspectives and governance and safeguarding the legitimate rights and interests of investors and other stakeholders.promote the formation of an equal inclusive and open culture.Management of directors and senior managers Investor Relations Management
The Company practises the development philosophy of a listed company that is investor-oriented formulates
The Company established and improved sound management mechanisms for directors and senior managers
strengthened control over key aspects such as remuneration incentives changes in shareholdings and handover the Investor Relations Management System establishes a regular communication and exchange mechanism with
upon departure prevented conflicts of interest and safeguarded the lawful rights and interests of the Company and the capital market and accurately conveys the Company's value through diversified channels. The Company has
shareholders. During the reporting period: also enhanced investor returns and supported the healthy development of the capital market by promoting the
The Company revised the Remuneration Management System for Directors and Senior Managers improved implementation of various measures such as continuous cash dividends and share buy-backs.the management performance evaluation and incentive and restraint mechanism that is highly aligned with
shareholders' interests and by closely linking management remuneration to Company performance helped
enhance the Company's operational efficiency and profitability so as to better maximise shareholders' interests.The Company revised the Management System for Shares Held by Directors and Senior Managers of the Company Indicators and Targets
and Changes Thereto strengthening the standardised management of shares held by directors and senior
managers of the Company. The Company continuously improves its corporate governance standards and sets the goal of ensuring that the
The Company newly formulated the Resignation Management System for Directors and Senior Managers Board of Directors performs its duties effectively and that information disclosure contains no false records mislead-
standardising matters relating to the resignation of directors and senior managers ensuring the stability and
continuity of the Company's governance structure and safeguarding the legitimate rights and interests of the ing statements material omissions or major errors. In 2025 the Company successfully achieved the relevant goals
Company and shareholders. using the strength of compliance to support our steady and long-term development.
117 118Kingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
External Honours: Strategy
The Company's business chain is relatively long with multiple management levels creating a certain risk of internal
Received an "A" rating in 2024-2025 information disclosure work from the Shanghai Stock Exchange control failure. At the same time as the Company's globalisation strategy continues to advance and subsidiaries have
been established in Europe Southeast Asia and other regions the complex tax regulations in different countries and
Received the Most Investment Value Award from China Securities Journal's "27th Listed Companies Golden Bull Awards" regions place higher demands on the Company's global risk control capabilities.Received Xueqiu Annual Golden List "2024 Investor Relations Management Award"
Analysis of Compliance and Risk Management Risks
Received P5W's "Outstanding Market Value Management Award" and "Outstanding Small and Medium Investor Concern
Award" and Opportunities of the Company
The Company's Board Secretary received New Fortune Multimedia's "New Fortune Gold Board Secretary" Securities
Times' "New Fortune Magazine Best Board Secretary Award" China Securities Journal's "Golden Bull Board Secretary Major Risk/Opportunity Specific Description Scope of Impact Financial Impact
Award" and Securities Times' "Listed Company Sunshine Board Secretary Award"
There may be deficiencies in system design or
inadequate implementation in key business
Internal control risk processes such as procurement tendering fund Medium and long Increased operating payments inventory management and sales term costs
credit extension which may easily lead to asset
losses or reduced operational efficiency.Compliance and Risk Management T h e C o m p a n y ' s m i s u n d e r s t a n d i n g o f
changes in host-country tax laws and the
Tax compliance risk applicable conditions of tax treaties may Medium and long Increased operating Governance lead to underpayment of taxes late filing or term costs
double taxation thereby resulting in fines late
payment surcharges or reputational damage.The Company adheres to the risk management philosophy of "prevention first supported by control" and has formulated
internal systems such as the Risk Diagnosis Processes and the Provisions on the Implementation and Management of Audit
Di f ferent countr ies have di f ferences in
Projects providing institutional support for the effective implementation of internal control and risk management. legal environment labour employment
Overseas legal and environmental standards and data protection. Medium and long Legal costs and
The Company has established a compliance and risk control management system composed of the Board of Directors regulatory risk If the Company fails to adapt in a timely term business losses
m a n n e r t h e C o m p a n y m a y fa ce l e g a l
various departments the legal affairs department and the audit department. The Audit Committee of the Board of Directors proceedings or business interruption.is responsible for coordinating the Company's compliance and risk management and has formed the "three lines of defence"
of internal control to ensure effective compliance and risk control management before during and after events thereby If employees have an insufficient understanding
safeguarding the Company's long-term and steady development.Weak compliance culture of compliance requirements or lack the Medium and long Compliance penalties
risk willingness to implement them this may render and reputational systems ineffective and increase the likelihood term damage
of compliance breaches.Three Lines of Defence for Internal Control
of the Company If third-party partners such as suppliers and
Third-party cooperation agents have compliance issues they may Short medium and Reputational damage
First line of defence Second line of defence risk adversely affect the Company's reputation or long term and breach of contractThird Line of Defence business continuity.All departments of the Com- The Legal Affairs Department is The Audit Department shall
pany are responsible for com- a general compliance manage- audit and evaluate the com-
pliance and risk management ment department which shall pliance of operations manage-
taking the lead in and being organise coordinate and super- ment and the effectiveness of
accountable for compliance vise the compliance manage- internal control. The Company attaches great importance to compliance and risk management and has established a dual-layer preven-
risk management and control ment to provide compliance tion and control system integrating action and awareness. At the action level the Company strengthens internal audit and
within the respective system. support for the departments
responsible for compliance process management and control; at the awareness level the Company continues to carry out compliance training and
management. culture building. At the same time the Company actively identifies and seizes the strategic and operational opportunities
arising in the process of risk management transforming compliance capabilities into a competitive advantage.
119 120Kingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
Impact Risk and Opportunity Management Anti-commercial Bribery and Anti-corruption
The Company has established systematic risk diagnosis processes to regularly identify assess and review various risks in our
business activities. In response to identified risks the Company adopts preventive and control measures such as internal audit Governance
compliance training and tax management to reduce the likelihood of risk occurrence and mitigate potential adverse impacts. The Company adheres to lawful compliance and honest operations strictly complies with the requirements of relevant laws
2025 Key Initiatives for Compliance and Risk Management of and regulations such as the Criminal Law of the People's Republic of China and the Company Law of the People's Republic of
the Company China and has formulated internal systems such as the Business Ethics Policies the Management Regulations for Protection against Commercial Bribery the Operational Standards for Handling Audit and Supervision Cases and the Code of Conduct for
Auditors systematically building an anti-corruption management mechanism continuously strengthening the line of defence
Improved internal control systems for key business processes such as procurement tendering fund payments inven-
tory management and sales credit management and clarified approval authorities and operating procedures. for integrity and ensuring that business ethics standards are integrated into the entire process of operation and management.Internal control and Conducted regular internal audits and special inspections with a focus on high-risk areas and overseas subsidiaries.audit Anti-corruptionManagement Mechanism of the CompanyEstablished whistleblowing and feedback mechanisms and encourage employees and third parties to report poten-
tial issues through compliant channels.Strictly complied with the tax laws and regulations of all jurisdictions in which the Company operates globally fulfilled
tax filing and information disclosure obligations in accordance with the law and paid all taxes on time.Tax compliance Ensured that the tax team dynamically tracked changes in direct and indirect taxes for each entity and assessed the po- Audit Department All departments of the Company
management tential impacts of new tax legislation and policies.For major transactions and cross-border business conducted tax impact assessments in advance and where necessary Be responsible for the assessment and control of the Assist the Audit Department in regularly conducting
engaged external professional tax advisers. Company's integrity risks and be responsible for identify- self-inspections of integrity issues within the depart-
ing integrity risks across all departments and positions. ment. If any issues are identified report them promptly
Continuously optimised the tax management system and established tax risk early warning and response mechanisms. to the Audit Department and the General Manager and
Be responsible for conducting regular integrity inspec- formulate corrective and preventive measures.tions of all departments. If any integrity issues are identi-
Provided regular specialised training on compliance and risk management for management and personnel in key positions. fied report these to the General Manager and formulate Organise focused follow-up on positions in the depart-
control measures. ment with integrity risks and formulate corresponding
Incorporated compliance requirements into the employee performance appraisal system to strengthen accountability management measures.Compliance training awareness. Organise role-based integrity training for all employees
and culture building Enhanced all employees' ability to identify and prevent risks through internal communication case sharing and other means. across all departments strengthening employees' aware-ness of integrity.For key regions such as Europe and Southeast Asia established localised compliance management mechanisms and
assigned or liaised with local compliance personnel. Strategy
Overseas risk Regularly collected and analysed changes in the host countries' laws and regulations and promptly adjusted business and
management management processes. To strengthen the integrity defence line the Company carries out systematic identification and assessment of fraud
Established emergency response plans for overseas risk incidents and clarified reporting lines and handling responsibilities. risks such as commercial bribery and occupational embezzlement so as to prevent potential risks ensure the stable
development of all business operations and avoid economic losses.Conducted due diligence on important third-party partners such as suppliers agents and consulting firms. Analysis of Anti-commercial Bribery and
Third-party risk Specified compliance clauses in contracts and stipulated supervision and exit mechanisms. Anti-corruption Risks and Opportunities of the Company
management Regularly assessed third-party cooperation risks and established dynamic management records.Major Risk/ Specific Description Scope of Opportunity Impact Financial Impact
Established a Company-level risk database to uniformly identify assess and track various risk events. Employee corruption will erode the foundations of fair market competition and
Regularly submitted risk management reports to management and the Board of Directors to ensure the timely undermine the organisational culture and ecosystem; if business orders are
Increased operating
Risk monitoring and costscommunication of risk information. obtained through improper means such as commercial bribery this will lead to Medium and
reporting mechanism Integrity risk regulatory penalties and legal liabilities and will also damage brand reputation long term
Used information-based tools to carry out dynamic monitoring and early warning of key risk indicators. Reduced operating and trigger a market trust crisis thereby weakening the Company's sustainable revenue
development capabilities and long-term competitive advantages.Indicators and Targets Impact Risk and Opportunity Management
The Company formulates internal control and compliance management objectives regularly monitors indicators such as the The Company has established anti-commercial bribery and anti-corruption management processes covering the entire chain
number of internal audit projects and the risk rectification rate accurately identifies weak links and risk points in internal control of "prevention identification investigation and handling" forming a long-term mechanism featuring strict prevention at the
promptly adopts targeted optimisation measures promotes the continuous iteration and upgrading of the risk control and source rigorous control throughout the process and severe punishment for violations effectively preventing integrity risks
compliance system ensures that internal control is robust and effective and ensures the Company's long-term stable operation. and fostering a sound environment for entrepreneurship and business development.
121 122Kingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
Anti-commercial Bribery and Anti-corruption Management Indicators and Targets
Processes of the Company
The Company has formulated a "Zero Corruption" business ethics management target tracked indicators such as
employee coverage of business ethics training and average business ethics training hours per employee preventing
business ethics risks and facilitating the formation of a clean and upright organisational ecosystem.Prevention Identification Investigation Disposal 2025 Anti-commercial Bribery and Anti-corruption Targets and
Progress of the Company
For employees: The Com- Proactive identification:The Audit department: It is re- For employees who violate
pany formulates regulations Company reviews the com- sponsible for collating and regulations:The Company
such as the Regulations on pliance of personnel funds analysing clues relating to confiscates all illicit gains from Indicator Unit Target Achievement Status in 2025
the Management of Receiv- and business transactions corruption issues and for bribery and imposes relevant
ing Gifts in the Course of during audits identifies and organising and coordinating education and administrative No related litigation oc-
External Official Duties and assesses integrity risk points the verification of clues sanctions according to the Corruption-related litigation cases case 0 curred achieved
the Management Regula- and requires rectification in case filing review investiga- severity of the circumstances;
tions on Employee Code of accordance with the relevant tion and other related work; where the circumstances are
Conduct to comprehensively requirements. particularly serious the Com-
standardise and regulate Other departments: These pany transfers the case to the
employee conduct; Passive awareness: The departments are responsi- judicial authorities for criminal
Company issues announce- ble for cooperating with the liability to be pursued;
For suppliers: The Compa- ments and has established Audit Department in review Anti-unfair Competition
ny requires all suppliers en- telephone and email report- and investigation work pro- For suppliers who violate
gaged in transactions to sign ing channels encouraging viding relevant materials regulations:The Company As a leading enterprise in the global new materials sector the Company has formulated the Management Regulations
the Integrity Commitment the persons concerned and and assisting in completing notifies and supervises the
Letter and incorporates informed persons to expose interviews and evidence corresponding departments on Anti-monopoly and Anti-unfair Competitions to ensure that our operations comply with national anti-monopoly
relevant business ethics and report corrupt practices collection. of the Company connected and anti-unfair competition laws and regulations uphold a fair and orderly market environment and safeguard the
requirements into supplier and takes measures to pro- with the relevant entities and
assessment and evaluation tect the rights interests and issues written warning letters; legitimate rights and interests of the Company and stakeholders.jointly maintaining a clean privacy of whistleblowers where the circumstances are
and upright market environ- ensuring that they do not serious the Company resolute-
ment with our partners. suffer retaliation. ly revokes their qualifications
as suppliers service providers Anti-monopoly and Anti-unfair Competition
etc.; where this constitutes the Management Initiatives of the Company
crime of commercial bribery
(bribe-giving) the Company
transfers the case to the judicial Dimension Specific Measures
authorities for criminal liability
to be pursued. Monitor monopoly agreements: Establish a regular review mechanism to screen agreements and
communications with competitors suppliers distributors etc. and prevent monopolistic conduct
involving sensitive areas such as prices output market allocation and technology sharing.To foster an organisational atmosphere of integrity and probity the Company has established a sound business ethics training
Prevent the abuse of market dominance: Assess the Company's market position through market
system comprehensively deepened special initiatives on fraud prevention and education and provided business ethics training
Anti-monopoly research formulate self-inspection plans price products in accordance with the principles of cost-
for all employees with a precise focus on new hires and employees in key positions implementing a tiered and categorised plus pricing and the dynamic balance of market supply and demand and avoid practices such as
training plan to enhance the awareness of integrity and compliance in professional conduct among relevant personnel. price discrimination.Ensure proper management of merger control filing declarations: Track projects such as mergers
and acquisitions equity acquisitions and other transactions that may trigger concentration of
2025 Implementation of Integrity Training of the Company undertakings assess in advance whether the filing thresholds are met and initiate the filing process.
Eliminate misleading consumer practices: Formulate brand usage standards conduct infringement
searches and prevent counterfeiting and practices that mislead consumers.New employees
Control false advertising: Make promotional materials reviewed by the legal affairs personnel to
Delivered the themed training of "Integrity in Professional Practice Constant Alarm for Discipline" interpreted the Anti-unfair competition ensure that the content is true and accurate and establish a rapid response mechanism for customer
origin significance and management requirements of integrity culture as well as internal and external typical cases feedback.compiled training materials tailored for new employees and designated the course as a compulsory onboarding
programme for new employees via the "Kingfa e-Enterprise Learning" platform. Protect commercial secrets: Clearly define the scope of commercial secrets implement graded and
categorised management safeguard information security and enforce stringent departure handover
procedures.Employees in key positions
In addition the Company incorporates anti-monopoly and anti-unfair competition training into its annual plan and
Held the themed training of "Zero Tolerance for Fraud One Hundred Percent Integrity" conducted training on high-risk has established special training courses for new employees. The Company also provides specialised training and
scenarios for key positions such as procurement sales and administration through typical cases. regular assessments for employees in high-risk and important positions continuously strengthening the compliance
awareness of all employees and safeguarding a fair orderly and healthy competitive market environment.
123 124Kingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
ESG Data Tables and Notes Indicator Unit 2023 2024 2025Recycled/reused water volume tonne / 126708.00 926090831.30[4]
Pollutant Discharge
[4]
Environmental Data Table Total waste gas emissions cubic metre 21795515009.00 22865427592.00 39467587200.00
Particulate matter tonne 753.820625 91.96 55.63[6]
Non-methane total hydrocarbons tonne 127.673 163.54 895.62[4]
Indicator Unit 2023 2024 2025 Nitrogen oxides tonne 106.111583 80.72 367.88[4]
Energy Consumption[1] Sulphur oxides tonne 53.434989 41.24 79.11[4]
Total energy consumption tonne of standard 726592.85 700672.01[2] 817307.84 VOCs emissions tonne 1446.83 548.94 493.70
[6]
coal
Total wastewater discharge tonne 5434078.10 4760944.73 6610836.90[4]
Energy consumption intensity (RMB 10000 tonne of standard [3]
revenue) coal/RMB 10000 0.1516 0.1158 0.1250 Of which: Industrial wastewater discharge revenue volume tonne / / 5984948.57
Direct energy consumption tonne of standard 150457.58 162094.21 388380.49[4] Domestic wastewater discharge coal volume tonne / / 625888.33
Indirect energy consumption tonne of standard
[4]
coal 576135.27 538577.80 428927.35
COD tonne 238.711 379.97 826.39
Five-day BOD (BOD [4]5) tonne 45.819 41.95 182.95
Clean energy consumption tonne of standard / 145550.01 244907.43 Ammonia nitrogen tonne 6.055 31.95 15.74[7]coal
Total phosphorus tonne 1.822 3.88 5.42[4]
Natural gas standard cubic metre 123191806.09 117455504.36 193250876.62
[4]
Waste Disposal
Diesel tonne 594.17 622.28 724.76 Total waste discharge tonne 20873.35 21109.84 67596.59[4]
Coal water slurry tonne 424676.00 275920.61 281400.75 Of which: Non-hazardous waste discharge tonne 12025.18 10175.39 51732.70[4]
Purchased electricity 10000 kWh 200063.04 274143.50 324775.55 volume
[4]
Purchased steam tonne 9684979.37 5913649.19 873260.74[5] Hazardous waste discharge volume tonne 8848.17 10934.45 15863.89
Photovoltaic power generation (self- High-level radioactive waste discharge tonne 0 0 010000 kWh 1334.00 2379.00 8334.33[4]generation for self-use) Circular Economy
Greenhouse Gas Emissions Total amount of waste recycled/reused tonne / 8916.94 6506.39
Scope 1 greenhouse gas emissions tonne of CO2 equivalent 1381905.88 794353.21 975816.39
[4] Consumption of renewable resources tonne / / 170.46
P r o p o r t i o n o f r e n e w a b l e r e s o u r ce
Scope 2 greenhouse gas emissions (location- tonne of CO2
based) equivalent 2175638.85 2083880.23 2158935.39
[4] consumption to total consumption of the % / / 2.23
corresponding resource
Total greenhouse gas emissions (Scope 1 + tonne of CO2
Scope 2) equivalent 3557544.73 2878233.44 3134751.78
[4] Environmental Protection Investment
Total environmental protection investment RMB 10000 6689.70 10765.80 22743.57
Carbon emission intensity per unit product of tonne of CO2
domestic modified plastics (Scope 1 + Scope 2) equivalent/tonne 0.1317 0.1338 0.1305of product [1]In 2025 the Company revised the energy consumption data for 2023 and 2024 based on the standard coal conversion coefficients and instances of double counting of energy. At the same
time the scope of statistics for energy consumption and greenhouse gas emissions data was further expanded with Liaoning Kingfa Biomaterials newly added in 2025 compared with 2024.Scope 3 greenhouse gas emissions tonne of CO2 10770711.92 11098086.37 14483619.81[4] [2] In 2024 total energy consumption decreased compared with 2023 mainly because Liaoning Kingfa's production facilities were shut down for maintenance or operated at low load in 2024 equivalent resulting in reduced natural gas consumption.Water Resource Consumption [3] In 2025 due to the decrease in the unit price of the Company's products energy consumption intensity increased.Total water consumption tonne 13082585.00 14947896.89 15849445.56 [4] In 2025 the Company built and commenced operations at multiple factories and production capacity increased; therefore multiple environmental data points increased significantly compared with 2024.Of which: Municipal water use tonne 10627435.00 12561236.89 13147312.26 [5] Steam consumption of Ningbo Kingfa accounted for a relatively high proportion of overall energy use. In 2025 Ningbo Kingfa's energy structure was adjusted and no external steam
purchases occurred. Therefore the Company's total externally purchased steam decreased significantly year-on-year.Desalted water tonne 2452794.00 2333191.00 2702133.30
[6] New factories gave priority to adopting RTO and RCO equipment with stronger particulate matter and VOC treatment capabilities with treatment efficiency reaching above 95%; existing
Groundwater tonne 2356.00 53469.00 0 factories also gradually brought RTO equipment into use. Therefore although production capacity increased thanks to the improvement in waste gas treatment capabilities particulate matter
and VOCs emissions decreased.Water resource consumption intensity (per tonne/RMB 10000 2.73 2.47 2.42 [7] The decrease in ammonia nitrogen emissions was mainly due to the successive shutdown and major maintenance of all factory units at Liaoning Kingfa in 2025 during which only a small RMB 10000 revenue) revenue amount of maintenance wastewater was generated.
125 126Kingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
Employee Data Table Indicator Unit 2023 2024 2025
Total number of employees receiving training person 10658 13083 14111
Indicator Unit 2023 2024 2025 Number of male employees receiving training person 8565 10458 11212
Employee Employment Number of female employees receiving training person 2093 2625 2899
Total number of employees person 10629 13083 14111 Coverage of employee training % 100 100 100
Number of male employees person 8541 10447 11212 Total training hours received by employees hour 440232.29 520583.70 553686.40
By gender
Number of female employees person 2088 2636 2899 Total training hours received by male employees hour 340458.75 390486.10 414315.90
Number of employees aged Total training hours received by female employees hour 99773.54 130097.60 139370.50
30 and under person 3579 4448 4682 Average training hours received by employees hour 41.42 44.60 39.24
By age Number of employees aged over 30 to 50 person 6158 7585 8302 Average training hours received by male employees hour 39.75 37.34 36.95
Number of employees aged Average training hours received by female employees hour 47.67 49.56 48.08
over 50 person 892 1050 1127 Amount invested in employee work safety liability insurance RMB 10000 / / 85.98
Number of employees working Number of employees covered by work safety liability insurance person / / 3604
in the Chinese mainland person 10217 12273 13195
[1]
By region Employee work safety liability insurance coverage rate % / / 25.54 N u m b e r o f e m p l o y e e s
working in Hong Kong Macau person 412 810 916 Amount invested in work-related injury insurance RMB 10000 / / 573.98
Taiwan and overseas
Number of employees covered by work-related injury insurance person / / 14111
Number of employees whose
highest academic qualification person 168 212 260 Employee work-related injury insurance coverage rate % / / 100
is a doctoral degree
Number of employees whose [1] The general industrial and trade sectors do not fall within the scope of compulsory enrolment in work safety liability insurance. According to relevant policy requirements
highest academic qualification person 1136 1364 1750 only hazardous chemicals enterprises are required to take out work safety liability insurance. The coverage rate of work safety liability insurance in the Company's petrochemical sector and new materials sector was 100%.is a master's degree
By educational background
Number of employees whose
highest academic qualification person 2849 3249 3706
is a bachelor's degree Innovation-driven Data Table
Number of employees whose
highest education level is person 6476 8258 8395
junior college and below Indicator Unit 2023 2024 2025
Number of ethnic minority employees person / / 785 R&D investment RMB 10000 197295.44 248984.13 276113.27
Number of employees with disabilities person / / 97 Proportion of R&D investment to operating revenue % 4.12 4.11 4.22
Number of military transferees received during the year person / / 30 Number of R&D personnel person 1521 1622 1642
Employee Turnover Proportion of R&D personnel % 14.31 12.40 11.64
New employee ratio % 23 25 20 Number of valid invention patents at the end of the
reporting period[1] item / / 2886
Employee turnover ratio % 19 24 24
Number of invention patent applications during the
Employee Training reporting period[1] item / 558 686
Employee education funds (including total employee RMB / / 5640862.26 Number of invention patents granted during the training expenditure) reporting period[1] item / 409 420
Number of employee training sessions time / / 4167
[1] Including domestic and foreign patents.
127 128Kingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
Product and Service Quality Data Table Rural Revitalisation and
Contributions to the Society Data Table
Indicator Unit 2023 2024 2025
Amount involved in damages from Indicator Unit 2023 2024 2025
major liability accidents related to
product safety and quality during the RMB 10000 / / 0.00 Investment in rural revitalisation RMB 10000 / / 311
reporting period
Number of people benefiting from rural
Handling rate for complaints received [1] person / / 120
regarding products and services % / 100 100
revitalisation
Amount invested in social welfare [2]
Customer satisfaction (as a percentage) % / 91.30 93.80 (including rural revitalisation) RMB 10000 635 238.30 744.22
Amount involved in data security
incidents RMB 10000 / / 0.00
Employee volunteer service participation person-time / / 76
Duration of volunteer activities conducted hour / / 542
Amount involved in customer privacy
breach incidents RMB 10000 / / 0.00 [1] The number of people benefiting from rural revitalisation in 2025 is an estimated figure. In 2025 the Company's rural revitalisation practices benefited 48 households.According to China Statistical Yearbook 2025 the national average househ
[2] In 2025 the Company actively practised ESG principles and continued to increase its proactive investment in areas such as rural revitalisation and educational support.Sustainable Supply Chain Management Data Table Anti-commercial Bribery and Anti-corruption Data Table1
Indicator Unit 2023 2024 2025 Indicator Unit 2025
Total number of suppliers (end of Proportion of directors covered by anti-commercial bribery and anti-corruption training % 100
period) / 8307 9780 11165
Proportion of management-level employees covered by anti-commercial bribery and % 100
Number of suppliers in the Chinese anti-corruption training
mainland (end of period) / 8009 9103 10634
Proportion of employees covered by anti-commercial bribery and anti-corruption training % 100
Number of suppliers in Hong Kong
Macao Taiwan and overseas regions / 298 677 531 [1] Business ethics training includes areas such as anti-bribery and anti-corruption and anti-unfair competition and is mainly conducted through regular/irregular communica-
(end of period) tion and promotion via the OA system covering all employees.Percentage of suppliers that signed the
Supplier Code of Conduct % 100 100 100
Percentage of suppliers that signed
clauses including environmental labour % 100 100 100
and human rights requirements
Total number of new suppliers / 1608 1473 1483
Percentage of new suppliers screened
using environmental criteria % 100 100 100
Percentage of new suppliers screened
using social criteria % 100 100 100
Sustainable procurement training
coverage for purchasing specialists % 100 100 100
129 130Kingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
Main Participatory Domestic Unit Association/Organisation Position HeldNingbo New Material Industry Association Vice chairman
Associations and Organisations Ningbo Petroleum and Chemical Industry Association Vice presidentNingbo Beilun District Enterprise Federation
Executive vice president
(Entrepreneur Association)
Ningbo Plastics Industry Association Vice president
Unit Association/Organisation Position Held Ningbo Kingfa Ningbo Work Safety Association Vice president
China National Light Industry Council Vice president unit Ningbo Beilun District Work Safety Association Vice president
China Plastics Processing Industry Association Vice president unit Ningbo Bei lun Distr ict Precursor Chemicals
Vice president
Plastic Carbon Neutrality Working Group of the National Management Association
Director and member unit
Technical Standardisation Committee on Plastics Chemical Safety Association of Zhejiang Province Executive director
Technical Subcommittee on Modified Plastics of the Ningbo Association of Special Equipment Member
Director and member unit
National Technical Standardisation Committee on Plastics Technical Subcommittee on Latex Products of the
National Technical Standardisation Committee on Committee member unit
China Synthetic Resin Association Standing council member unit Rubber and Rubber Products
ABS Branch of China Synthetic Resin Association Member unit Guangdong Medical Devices Management Academy Supervisory unit
China Association of Automobile Manufacturers Vice president unit
Guangdong Kingfa China Nonwovens & Industrial Textiles Association Member unit
China Household Electrical Appliances Association Member unit China Association for Medical Devices Industry Member unit
The Company China Packaging Federation Vice president unit Guangdong Association for Medical Devices Industry Standing council member unit
Society of Competitive Intelligence of China Ordinary member unit Guangdong Food & Drug Technology Association for
Council member unit
China Electronics Standardisation Institute (National Evaluation & Certification
Technical Standardisation Committee on National Committee member unit Professional Committee on Recycling of Plastics
All-or-nothing Relays) Director unitChina Plastic Processing Industry Association
Working Group on Standards for Pollution Prevention Recycled PCR Self-discipline Organisation Initiator
and Control of Electrical and Electronic Products Member unit with full authorities Kingfa Environmental
Ministry of Industry and Information Technology Sustainability Working Group on Food Contact Member unit
Materials
China Association for Public Companies Council member unit
Green Recycle Plastic Supply Chain Group (GRPG) Initiator
ICT Industry High Quality and Green Development Alliance Standing council member unit
China Industrial Association of Power Sources Member
Diancheren Council member unit
Executive vice president-level
Panjin Petroleum and Chemical Industry Association
executive director unit
National Acr ylonitrile Production Technology
Liaoning Kingfa Member unit
Association Group
Panjin Precursor Chemicals Industry Self-discipline
Member unit
Association
131 132Kingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
Overview of Certificates
Zhuhai Chakan Pondi Number
System certification The Shanghai Jiangsu Wuhan Tianjin Chengdu Kingfa Qingyuan
Vanteque Guangdong
Specialty Kingfa Kingfa Guangdong Ningbo Liaoning Kingfa Kingfa Factory Factory
Manesar Kingfa of Number of
Company Kingfa Kingfa Kingfa Kingfa Kingfa Environmental Meijin Engineering Biomaterials Composites Kingfa Kingfa Kingfa (USA) (Europe) of Kingfa of Kingfa
Factory of
Kingfa (India) (Vietnam) certified
applicable
(India) (India) based basedPlastics
ISO 9001 ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? 19 20
IATF 16949 ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? 16 17
GMP ? 1 2
ISO 13485 ? ? 2 3
Quality
QSR 820 ? 1 2
MDSAP ? 1 2
MDR ? 1 1
5GONOGO ? ? ? 3 4
Environment ISO 14001 ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? 17 20
Occupational
health and ISO 45001 ? ? ? ? ? ? ? ? ? ? ? ? ? ? 14 20
safety
Hazardous
substances QC 080000 ? ? ? 3 20
Laboratory ISO/IEC 17025 ? ? ? ? 4 20
Information
security ISO/IEC 27001 ? 1 1
ISCC PLUS ? ? 2 3
Sustainability OK RECYCLED ? 1 1
GRS ? ? ? ? ? ? 6 7
Social CSR(SA8000/RBA/
responsibility SMETA/IWAY) ? ? ? ? ? 5 20
Measurement ISO 10012 ? 1 20
Intellectual
property GB/T 29490 ? ? 2 15
Brand
certification GB/T 27925 ? 1 15
Energy ISO 50001 ? ? 2 20
AEO ? ? ? ? ? 5 15
BRC (Packaging Materials) ? ? 2 3
ISO 28000 (Supply Chain
Security) ? ? ? 3 20
Other GSP (Quality Management
System for Medical Device ? 1 2
Operation)
GB/T23001 Integration
o f i n f o r m a t i s a t i o n
and industr ial isat ion ? ? 2 20
management systems
133 134Kingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
Benchmarking Index Table Topic Clause No. Corresponding Sections of This Report Other NotesAs a modified plastics enterprise the Company does not
engage in scientific research technology development
Ethics of science and technology Article 43 or other activities in science and technology ethics-
Index Table of the Guidelines No. 14 of Shanghai Stock sensitive fields such as life sciences and artificial intelligence and this topic is not applicable.Exchange for Self-Regulation of Listed Companies— Sustainable Supply Chain Management
Supply chain security Article 45
Sustainability Report (Trial) ESG Data Tables and Notes
Equal treatment to small and
medium-sized enterprises Article 46 Sustainable Supply Chain Management
Topic Clause No. Corresponding Sections of This Report Other Notes
Safety and quality of products and Product and Service Quality
Article 21 services Article 47 ESG Data Tables and Notes
Article 22 Climate Change Tackling Data security and customer privacy Data Security and Customer Privacy Protection
Article 23 protection
Article 48
ESG Data Tables and Notes
Article 24 Employee Rights and Benefits
Employee Training and Development
Climate change tackling Article 25 ESG Data Tables and Notes Employees Article 50
Occupational Health and Safety
Article 26
ESG Data Tables and Notes
Climate Change Tackling
Article 27 Due diligence Article 52 Analysis of Material Topics
Energy Usage Communications with stakeholders Article 53 Communications with Stakeholders
Article 28 Climate Change Tackling Anti-commercial bribery and anti- Anti-commercial Bribery and Anti-corruption
Pollutant Discharge corruption
Article 55
ESG Data Tables and Notes
Pollutant discharge Article 30
ESG Data Tables and Notes Anti-unfair competition Article 56 Anti-unfair Competition
Waste Disposal Self-selected topics
Waste disposal Article 31
ESG Data Tables and Notes Corporate governance Corporate Governance
Ecosystem and biodiversity
protection Article 32 Ecosystem and Biodiversity Protection
Chemical safety Chemical Safety
Compliance and risk management Compliance and Risk Management
Environmental compliance Environmental Compliance Management
management Article 33 ESG Data Tables and Notes
Energy Usage
Energy usage Article 35
ESG Data Tables and Notes GRI Index
Usage of Water Resources
Usage of water resources Article 36 Instructions Kingfa Sci. & Tech. Co. Ltd. prepared this Report with reference to the GRI Standards ESG Data Tables and Notes from 1 January 2025 to 31 December 2025.Circular Economy
Circular economy Article 37 GRI 1 used GRI 1: Foundation 2021
ESG Data Tables and Notes
Rural revitalisation Article 39 Rural Revitalisation and Contributions to the Society
GRI Standards Disclosure Item Sections of This Report
Contributions to the society Article 40 ESG Data Tables and Notes
General Disclosures
Innovation-driven
Innovation-driven Article 42
ESG Data Tables and Notes 2-1 About the Company
GRI 2: General Disclosures 2021
2-2 Description of the Report Preparation
135 136Kingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
GRI Standards Disclosure Item Sections of This Report GRI Standards Disclosure Item Sections of This Report
2-3 Description of the Report Preparation 205-2
GRI 205: Anti-corruption 2016 Anti-commercial Bribery and Anti-corruption
2-4 ESG Data Tables and Notes 205-3
2-6 About the Company GRI 206: Anti-competitive Behaviour
2016 206-1 Anti-unfair Competition
2-7 Employee Rights and Benefits
2-9 207-1GRI 207: Tax 2019 Compliance and Risk Management
2-10 Corporate Governance 207-2
2-11 Environment
2-12301-2
Corporate Governance GRI 301: Materials 2016 Circular Economy
2-13301-3
Sustainable Development Management System
2-14302-1
2-15 Corporate Governance 302-2 Energy Usage
GRI 302: Energy 2016
2-16 Communications with Stakeholders 302-3 ESG Data Tables and Notes
GRI 2: General Disclosures 2021
2-17 Corporate Governance 302-4
Corporate Governance
2-19 303-2 Usage of Water Resources
Employee Rights and Benefits GRI 303: Water and Effluents 2018
303-5 ESG Data Tables and Notes
2-20 Employee Training and Development
GRI 304: Biodiversity 2016 304-1 Ecosystem and Biodiversity Protection
2-22 To Stakeholders
Product and Service Quality
Employee Rights and Benefits 305-2
Environmental Compliance Management 305-3 Climate Change Tackling
2-27 GRI 305: Emissions 2016
Compliance and Risk Management 305-4 ESG Data Tables and Notes
2-28 Main Participatory Domestic Associations and Organisations 305-5
2-29 Communications with Stakeholders 305-7
2-30 Employee Rights and Benefits 306-1
3-1 306-2 Waste Disposal
Analysis of Material Topics GRI 306: Waste 2020
GRI 3: Material Topics 2021 3-2 306-3 ESG Data Tables and Notes
3-3 Sections of each topic in the Sustainability Report 306-4
Economic
GRI 308: Supplier Environmental 308-1 Sustainable Supply Chain Management
201-2 Climate Change Tackling Assessment 2016 308-2 ESG Data Tables and Notes
GRI 201: Economic Performance
2016 201-3 Employee Rights and Benefits Social
201-4 Refer to the Annual Report
401-1 Employee Rights and Benefits
GRI 203: Indirect Economic Impacts GRI 401: Employment 2016
2016 203-1 Rural Revitalisation and Contributions to the Society 401-2 ESG Data Tables and Notes
137 138Kingfa Sci. & Tech. Co. Ltd. | 2025 Sustainability Report Sustainable Development Advancing Zero-Carbon Plastics Promoting Innovation to Drive Talent Catalysis a Sustained Strengthening Resilient Governance Governance to Sustain Circular Growth Social Progress Chain Reaction of Goodwill to Lead the Future of Materials
GRI Standards Disclosure Item Sections of This Report
403-1 Editor's Note
GRI 403: Occupational Health and Occupational Health and Safety Editor-in-chief: Chen Pingxu
Safety 2018 403-5 ESG Data Tables and Notes
403-6 Consultant: Li Jianjun
403-7 Deputy Editor: Dai Yaoshan
Editors in Charge: Tang Hailan and Kuang Sirong
GRI 404: Training and Education 404-1 Employee Training and Development Members of Editorial Board (in no particular order): Huang Hesheng Li Peng Fu Jiangying Ye Nanbiao
2016 404-2 ESG Data Tables and Notes Guan Xunning Hong Xianjun Ding Chao Wang Zhonglin Wang Dazhong Shen Hongbo Wu Bo Bai
Jingen Wu Jun Peng Zhongquan Jin Lixiao Liu Siyang Xu Xianjun Zhang Chao Lei Yuewen Wang Lin
G R I 4 0 5 : D i v e r s i t y a n d E q u a l Corporate Governance405-1 Lu Yuanqiu Zheng Hefen Wang Zongke Zhu Xiumei Wu Jiechun Zou Junqin Lu Ming Fu Xuejun Liu Opportunity 2016 Employee Rights and Benefits Jingyi Gu Junyong Liao Mengyuan Li Xianyu Chen Yan'an SHANMUGASUNDARAM S Deng Zhendong
GRI 406: Non-discrimination 2016 406-1 Liang Wenzhen Hu Qisong Qin Chunyan Li Yihang Wang Dajun Chen Tianyu Liang Ziyi Li Peng Wu
Xingda Huang Hui Jin Min Jiang Hongmei Chen Xie Wang Tingting Deng Chunqiong Fan Chao Cao
GRI 407: Freedom of Association
and Collective Bargaining 2016 407-1 Liying Zou Yunli Zhou Zhuang Lv Wenmin Zhou Shengjia Zhou Ruxin Lin Haibin Wang Shuting Xie
Employee Rights and Benefits Jiang Chen Peiyin Yin Wenting Zhou Xiaojiao Zhang Chao Guo Pan
GRI 408: Child Labour 2016 408-1
GRI 409: Forced or Compulsor y
Labour 2016 409-1
GRI 413: Local Communities 2016 413-1 Rural Revitalisation and Contributions to the Society
GRI 414: Supplier Social Assessment 414-1 Sustainable Supply Chain Management Disclaimer
2016 414-2 ESG Data Tables and Notes
416-1 The information contained herein does not constitute any investment advice and investors shall not use such GRI 416: Customer Health and Safety
2016 Product and Service Quality information as a substitute for their independent judgment or make decisions based solely on such information. 416-2 The Company does not accept any responsibility for losses caused or possibly caused by the use of the information
GRI 418: Customer Privacy 2016 418-1 Data Security and Customer Privacy Protection contained herein. The information published by the Company is true and accurate. In case of any inconsistency with
the statutory disclosure documents the statutory disclosure documents shall prevail.If this Report constitutes forward-looking statements it shall not restrict the Company's future actions. The Company
has no obligation and does not undertake to revise the forward-looking statements (if any) contained herein.The copyright and the right of final interpretation shall be owned by the Company.
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