Environmental Social and Governance Report 2024
About This Report
Introduction Addressing and Representation
This Report is the first Environmental Social and Governance Report of Henan Ancai Hi-Tech Co. Ltd. (referred to as In this Report "Ancai Hi-Tech" "the Company" "we" or "us" refers to Henan Ancai Hi-Tech Co. Ltd. and its subsidiaries."Ancai Hi-Tech" "the Company" "we" or "us"). The purpose of this Report is to comprehensively demonstrate the
Company's commitment to environment social and governance management in its operational processes to investors
employees partners and other stakeholders. Abbreviation Full Name
Ancai Hi-Tech the Company we or us Henan Ancai Hi-Tech Co. Ltd.Henan Investment Group Henan Investment Group Co. Ltd
Compilation Basis Ancai Photovoltaic New Materials Henan Ancai Photovoltaic New Materials Co. Ltd.Ancai Photothermal Technology Henan Ancai Photothermal Technology Co. Ltd.This Report is prepared in accordance with the Guidelines No. 14 of the Shanghai Stock Exchange for Self-regulation of
Listed Companies - Sustainability Report (Trial) and the requirements of the Global Reporting Initiative Standards (GRI Ancai Energy Henan Ancai Energy Co. Ltd.Standards).Jiaozuo Ancai Jiaozuo Ancai Advanced Material Co. Ltd.Xuchang Ancai Xuchang Ancai New Energy Technology Co. Ltd.Xinhe Industry Puyang Xinhe Industry Development Co. Ltd.Reporting Scope
The scope of this Report encompasses Henan Ancai Hi-Tech Co. Ltd. and its subsidiaries. This Report is published
annually covering the period from January 1 2024 to December 31 2024. Some content or data may refer to previous
years or extended to future years. This Report is presented in Chinese Renminbi (RMB). Access Options
You can download the electronic version of this Report from the website of the Shanghai Stock Exchange (www.sse.com.cn) or Henan Ancai Hi-Tech Co. Ltd. (www.acht.com.cn) and obtain more information on corporate social responsibility.Data Source If you have further inquiries questions or feedback regarding this Report you can contact the Company through the
following contact information:
Unless otherwise stated the data in this Report is derived from the Company's disclosed periodic reports or interim Address: South Zhongzhou Road Anyang City Henan Province
announcements as well as internal statistical data. Some data may include historical information.Tel.: 0372-3732533
E-mail: achtzqb@acht.com.cn
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Address by Chairman of the Board
Over the past three decades Ancai Hi-Tech has always adhered to the corporate mission of "challenging the world's Employee-centric
advanced level and contributing to the civilization of human society". We started with the operation of CRT electronic
glass becoming a symbol of the national industry at that time. Today we have transformed and deepened our presence Building a happy workplace and empowering mutual growth. The Company always prioritizes its employees and builds a
in the field of new energy committed to promoting green and low-carbon development. We have diversified our business happy workplace. We pay attention to employees' occupational health and create a "Healthy Ancai" system. We provide
into photovoltaics photothermal natural gas pharmaceutical glass and intelligent manufacturing. Through challenges employee care from various aspects such as compensation training and recreational activities to enrich their personal
and achievements Ancai Hi-Tech remains dedicated and determined. lives outside of work. We fully guarantee employees' rights and development achieving mutual growth between the
Against the backdrop of the "carbon peaking and carbon neutrality" goals leading global green transformation Ancai Company and its employees.Hi-Tech deeply integrates the ESG concept into strategic decision-making and business practices. In 2024 we built a
foundation of compliance governance driven by green development with a focus on creating a harmonious society. Social responsibility
Through these efforts we were able to promote the sustainable development of the Company and contribute to the co-
creation of social value. Assisting in rural revitalization and achieving win-win development. In response to the national call and the practice of
rural revitalization we fulfill our social responsibility. We promote the development of surrounding industries by focusing
Green practice on our own development. This includes procuring logistics and transportation services from the surrounding areas and
creating employment opportunities achieving mutual benefits and win-win outcomes.Implementing the carbon peaking and carbon neutrality strategy throughout the entire chain to safeguard the ecology.We actively respond to the international consensus on reducing greenhouse gas emissions and mitigating climate change. Compliance as the foundation
We deeply adhere to the development concept of "Lucid waters and lush mountains are invaluable assets " and actively
practice the national "carbon peaking and carbon neutrality" strategy. We contribute to optimizing the energy structure
aiming to apply lower-carbon and more energy-efficient models and technologies in various aspects of production and Establishing a strong foundation for standard operations. Ancai Hi-Tech upholds the concept of operating in compliance
operations. From the construction of green factories and the promotion of clean energy utilization to the implementation with laws and regulations. We continuously improve our governance system enhance risk management mechanisms
of energy-saving projects and the refined management of waste and pollutants we have consistently protected the and uphold business ethics. We have built a management structure with clear responsibilities and well-defined division of
green mountains and clean water of this land through actions. We strive to leave a better ecological environment for labor. By strengthening the coordination and cooperation among departments and ensuring smooth process connections
future generations. we comprehensively enhance the level of standardized operations.Innovation-driven development Party building leadership
Scaling technological heights to lead the low-carbon transformation. We implement a strategy of promoting enterprise Empowering modern governance patterns. The Company strengthens Party building leadership leverages grassroots
development through technology and effectively promote technological innovation. Since establishment we have been Party organizations as strongholds and encourages Party members to serve as exemplary models. This promotes the
consistently focused on the research and development of high-end glass. We rely on a mechanism of technological deep integration of Party building work with production and operation creating a new pattern of efficient governance for
innovation building innovative platforms and a robust R&D system. We have increased investment in research and a modernized enterprise. This solidifies the foundation for sustainable development.development aiming to achieve product and process innovation. We bravely scale the heights of technological innovation With the winds blowing in our sails we courageously shoulder heavy responsibilities and forge ahead. We express our
and adhere to innovation for development. We continue to drive innovation through ongoing research and development gratitude to the shareholders partners and counterparts who have supported and cared for the development of Ancai
using technological breakthroughs to propel the industry's low-carbon transformation. Hi-Tech over the years. Ancai Hi-Tech deeply understands the importance of responsibility and compassion in business
value. We will always adhere to promoting human well-being as our starting point. Together with our shareholders we
Co-building ecological system strive for development share growth with our employees achieve harmonious coexistence with nature and resonate
with society. Let the starlight of responsibility converge into a brilliant galaxy that illuminates the future!
Creating a transparent supply chain for value symbiosis. We co-build an ecological system with our suppliers to achieve
value symbiosis. We establish a supplier access mechanism provide technical assistance and assist suppliers in
enhancing their product and service levels. We establish a "Sunshine Procurement" platform to ensure transparency and
fairness in the supply chain safeguarding the legitimate rights and interests of upstream and downstream enterprises.We strive to create a sustainable partner ecosystem deepen strategic collaboration and achieve value symbiosis in the
supply chain.Quality-centric
Henan Ancai Hi-Tech Co. Ltd.Full-process control to create a benchmark for responsible manufacturing. We adhere to "responsible manufacturing" with Chairman of the Board Dongwei Xu
a focus on customer needs. We value customer experience and precisely control the entire process of product design
development manufacturing and sales services. With excellent quality and dedicated service we have earned customer
recognition and established long-term mutually trusted relationships with domestic and international customers.
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Key ESG Performance Data
Economic performance Environmental performance
Environmental protection investment CO2 emissions
Operating revenue Total tax
RMB 70.0617 million 919400 tons of CO2e
RMB 4.339 billion RMB 169 million
Reduction in CO2 emissions Amount of recycled water Total amount of waste recycled
Governance performance through clean energy adoption
83200 tons of CO2e 92903900 tons 138517.50 tons
Number of General Number of Board of Number of Board of Number of incidents of
Meeting of Directors’ meetings Supervisors' meetings commercial bribery and
Shareholders held held held corruption Social performance
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R&D investment Safety investment
RMB 123 million RMB 19.1522 million
Employee social security contributions Employee training coverage rate Social public welfare investment
RMB 72.4339 million 100% RMB 639300
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Honors and Awards
Ancai Hi-Tech Xuchang Ancai Ancai Photothermal Technology Xuchang Ancai
2024-Advanced Unit in Party 2024-Green Factory of Henan Province 2024-Innovative SMEs of Henan Province 2024-Single Champion Enterprise
Building Work Department of Industry and of Manufacturing Industry in Henan Department of Industry and
Communist Party Committee of Information Technology of Henan ProvinceInformation Technology of Henan
Anyang State-owned Enterprises Province Province Department of Industry and Information
Technology of Henan Province
Xuchang Ancai Xuchang Ancai Ancai Photovoltaic New Materials Xuchang Ancai
2024-Leading Enterprise in Manufacturing 2024-Provincial Leader in Water 2024-Hi-tech Enterprise 2024-Specialized Refined Differential
Industry of Henan Province Efficiency and Innovative SMEs
Department of Science and
Department of Industry and Information Department of Industry and Technology of Henan Province Department of Industry and
Technology of Henan Province Information Technology of Henan Information Technology of Henan
Province Province
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Jiaozuo Ancai Ancai Hi-Tech Ancai Photovoltaic Ancai Photothermal New Materials Technology
2024-Solar Photovoltaic Glass 2023-Civilized Unit of Henan Province 2023-Engineering Research Center of 2023-Demonstration Enterprise of
Engineering Technology Research The Communist Party of China Henan Province Digital Transformation of Henan
Center of Henan Province Henan Provincial Committee and Development and Reform Province
Department of Science and Technology the People's Government of Henan Commission of Henan Province Department of Industry and Information
of Henan Province Province Technology of Henan Province
Ancai Photothermal Ancai Photovoltaic Ancai Photovoltaic
Technology New Materials New Materials
2023-Intelligent Factory of Henan 2023-Advanced Unit in Clean 2023-"Occupational Health Expert" and
Province Production Excellent Organization Unit
Department of Industry and Department of Ecology and Health Commission of Henan Province
Information Technology of Henan Environment of Henan Province and Henan Federation of Trade Unions
Province
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About Ancai Hi-Tech Corporate Culture
Henan Ancai Hi-Tech Co. Ltd. formerly known as Anbo Corporation was approved as a key construction project during
the "Seventh Five-Year Plan" in China. It was established in 1984 and officially registered as Ancai Hi-Tech in 1998 with its Challenging the world's Scaling the heights of
core business focusing on glass encapsulation. In 1999 Ancai Hi-Tech was listed on the Shanghai Stock Exchange. advanced level and technological innovation
Since its establishment the Company has been dedicated to the research development and manufacturing of high-end contributing to the and building a high-end civilization of human glass manufacturing base
glass. Its business covers various sectors including photovoltaics photothermal natural gas pharmaceutical glass and society
intelligent manufacturing. Through our efforts we have achieved significant milestones including expanding our presence Corporate Corporate
from a single location to multiple sites transitioning from homogeneous competition to a high-end market position and Mission Vision
extending our business from product-oriented operation to an integrated industry chain approach.Three principles: Not only Ten core values: Seeking
respecting superiors not truth from facts unity
only learning from external Core Corporate and progress tenacious
sources and not only Values Spirit struggle pioneering reading books. innovation consistency
Year of foundation Name of the Company Stock exchange between words and
Three Focuses and Three actions openness and
1998 Henan Ancai Hi-Tech Co. Ltd. Shanghai Stock Exchange Non-Focuses: Focusing on transparency hard work (Stock Code: 600207) the subjective rather than and entrepreneurship
the objective focusing on courtesy and humility
internal factors rather than selfless dedication and
external factors focusing on striving for national glory.oneself rather than others.ESG Management
Main products
and business
Analysis of Material Topics
Photovoltaic Photovoltaic Glass Medium Borosilicate Glass
glass
photothermal The Company carries out material management and analysis of ESG topics identifies core topics of concern to
glass natural gas stakeholders and provides responses. In 2024 the Company conducted identification and assessment through a
pharmaceutical questionnaire survey identifying a total of 21 material topics. Analysis was conducted based on "impact importance" and
glass quartz "financial importance" and a material topics matrix was created providing a visual and effective decision-making guide
tubes intelligent for the development and implementation of ESG strategies.manufacturing
etc.Ultra-clear Float Glass Photothermal Glass Quartz Tube Products
Headquarters Main Operating Locations
Anyang City Henan Anyang City Jiaozuo City Xuchang City
Province Puyang City Henan Province etc.
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Process of identifying material topics: Stakeholder Communication
● Requirements from capital markets rating agencies and
domestic and international standards Ancai Hi-Tech places high importance on communication with stakeholders and maintains an open and transparent
communication philosophy. The Company has established efficient and regular communication mechanisms continuously
● Requirements from Macroeconomic policies industry
standards and regulatory enriching and expanding communication channels. This allows Ancai Hi-Tech to promptly understand the expectations
and demands of various stakeholders and strive to translate them into actions. The Company works closely with
Benchmark Analysis ● Identify topics based on best practices of peers and the stakeholders fostering collaboration and promoting synergistic development to achieve mutual benefits and win-win
Company's business and strengths outcomes.Stakeholders Material Topics of Concern Main Communication Methods and ● Distribute survey questionnaires Channels
● Understand the topics of concern to stakeholders ● The Company's official website and
● Interviews Official WeChat Account
Stakeholder Survey ● General Meeting of Shareholders
● Stakeholder communication ● Regular reports and announcements
Shareholders and ● Due diligence ● Earnings presentation
● Distribute survey questionnaires investors ● Investor hotline and E-mail
● Interviews ● SSE E-interaction platform
Analysis and Discussion
● Financial impact analysis ● Investor on-site researchby the Company's
Management ● Environmental compliance management
● Response to climate change
● Pollutant emission
● Conference communication
● Financial importance assessment ● Waste disposal ● Daily regulatory communication
● Impact importance assessment Government and ● Anti-commercial bribery and anti- ● Information disclosure and submission
regulatory bodies corruption
Importance Evaluation ● Anti-unfair competition
● Due diligence
● Topics of both financial importance and impact importance ● Workers' congress
●
● Topics of financial importance but not impact importance Staff symposium
●
● Topics of impact importance but not financial importance Working meetings
Formation of Material ● Employee ● Employee training● Topics of neither financial importance nor impact importance
Topics Matrix Employee ● Employee satisfaction survey
● Staff activities
Material Topics Matrix of Ancai Hi-Tech ● Work evaluations
Rural revitalization
● Product and service safety and quality ● Daily communicationSocial contribution
Pollutant emission Energy utilization ● Data security and customer privacy ● Customer service
Waste disposal Circular economy Customers protection ● Satisfaction survey
Water utilization Response to climate change
Data security and customer privacy protection Product and service safety and quality
Due diligence Employee ● Supplier evaluation and auditing
Anti-commercial bribery and anti-corruption Environmental compliance management ● Supply chain security
●
Anti-unfair competition Supplier trainingSuppliers and business ● Equal treatment of SMEs
Stakeholder Communication ● partners Daily communication
● Innovation-driven development ● Industry association organizations
●
Industry associations Science and technology ethics
● Industry exchange activities
Science and technology ethics Supply chain security
Ecosystem and biodiversity conservation Innovation-driven Development ● Equal treatment of SMEs Social contribution ● Environmental protection management
● Rural revitalization
● Resource conservation measures
● Response to climate change
● Public welfare activities
Low ● Ecosystem and biodiversity conservation
Community and the ● Charitable donations
High ● Energy utilizationpublic ● Rural revitalization
Financial importance ● Water utilization
● Volunteer services
Note: The topics of science and technology ethics ecosystem and biodiversity conservation have little relevance to the Company's business. ● Circular economy
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Corporate Governance
Ancai Hi-Tech focuses on building a management structure
with clear responsibilities and well-defined division of labor. By
strengthening departmental collaboration and smooth process
connections an efficient and intensive operating mechanism is
formed. Based on this foundation the Company continuously
optimizes its business development and management models
enhances the level of standardized operations and establishes
a solid foundation for sustainable development.Corporate Governance Framework
The General Meeting of Shareholders is the highest decision-making body of the Company
responsible for making decisions on the Company's operating policies investment plans
The Company is committed to building a scientific and efficient governance system. In accordance with laws and General Meeting of and reviewing and approving reports from the Board of Directors and Board of Supervisors.regulations such as the Company Law and the Securities Law the Company formulates its Articles of Association Shareholders During the reporting period the Company held 2 General Meetings of Shareholders.scientifically plans layouts and establishes a reasonable and clear governance structure. With sound decision-making
capabilities the Company achieves coordinated operations among various departments.The Board of Directors is responsible for implementing the resolutions of the General
Meeting of Shareholders formulating the Company's basic systems and deciding on
Structure Chart of Ancai Hi-Tech the Company's operating plans. The Board of Directors consists of 7 directors including
1 chairman of the Board and 3 independent directors. The Board of Directors has
established committees including the Audit Committee Strategic Decision-making
Henan Ancai Hi-Tech Co. Ltd. Board of
Directors Committee Nomination Committee Remuneration and Appraisal Committee and Risk
Management Committee. Each committee carries out its responsibilities as outlined in
the Articles of Association and authorized by the Board of Directors. During the reporting
period the Company held 9 Board of Directors' meetings.General Meeting
Strategic Decision- of Shareholders
making Committee The Board of Supervisors is primarily responsible for reviewing the Company's regular
reports examining the Company's financial statements and overseeing the conduct
of directors and senior management in their duties. The Board of Supervisors consists
Remuneration and Board of
Appraisal Committee of 3 supervisors with 1 serving as the chairman of the Board of Supervisors. During the Supervisors
Board of reporting period we held 6 Board of Supervisors' meetings.Supervisors
Audit Committee Board of Directors
Risk Management Secretary of the
Committee Board of Directors
During the reporting period the Company held the Company held we held
Nomination Committee Operation Management 2 General Meetings 9 Board of Directors' 6 Board of Supervisors'
of Shareholders meetings meetings
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Investor Relations Management In 2024 the Company conducted an evaluation of the reasonableness of internal control design and the effectiveness of
internal processes. An internal control evaluation report for 2024 was issued along with an internal control audit report
by the auditing firm. The main business areas and matters included in the Company's evaluation scope are as follows:
In accordance with regulations such as the Guidelines for Investor Relations Management of Listed Companies and the internal environment (including organizational structure development strategy human resources social responsibility
Rules Governing the Listing of Stocks on Shanghai Stock Exchange the Company has formulated the Investor Relations and corporate culture) risk assessment information communication internal supervision financial activities (including
Management Measures of Ancai Hi-Tech to strengthen communication and exchange with investors. fundraising investments and fund operations) procurement asset management (including inventory equipment and
The communication methods mainly include: Setting up a dedicated investor buildings) sales operations research and development project management guarantee business financial reporting
hotline for telephone communication answering investors' questions on the comprehensive budgeting contract management information systems among others. In 2024 the Company's internal
SSE E-interaction platform holding regular earnings presentation and irregular control system was effectively implemented capable of meeting the requirements of company management and the
interactions with securities firms and other institutions inviting small and medium needs of company development and achieving the goals of internal control.shareholders to attend the General Meeting of Shareholders and occasionally
publishing operational updates through the Company's Official WeChat Account. Business Ethics
Compliant Operations Compliance operations and integrity are guarantees for the steady development of the Company. Ancai Hi-Tech adheres
to the principles of integrity fairness and transparency shaping a positive corporate reputation. The Company operates
Ancai Hi-Tech has established an information disclosure system and an internal control system. By standardizing in strict compliance with laws and regulations respecting the rights of partners and safeguarding customer privacy and
information disclosure the Company ensures compliance and transparency in its operations. By strengthening risk control business secrets. The Company firmly opposes unfair competition actively promotes fair competition and collaborates
management it safeguards the Company's sustained and stable operations. with all parties to build a healthy and orderly market ecosystem to support the sustainable development of the Company.The Company has established a closed-loop governance system that integrates institutions supervision reporting and
Field Main Laws and Regulations publicity to regulate ethical conduct and enhance the awareness of integrity and self-discipline among leaders and
employees.Listing standards Company Law Securities Law and Rules Governing the Listing of Stocks on Shanghai Stock Exchange
Institutional Development
Product services and Product Quality Law Measures for Supervision Inspection and Accountability of the Main Responsibility and Supervisory liability Responsibility for Party Conduct and Clean Governance Management Measures for the Integrity Records of
Leading Cadres and Management Rules for Disciplinary Inspection and Supervision Handling of Letters and
Intellectual property Visits and Whistleblowing.protection Patent Law Trademark Law
Environmental Environmental Protection Law Water Pollution Prevention and Control Law Supervision and Management
protection Prevention and Control of Atmospheric Pollution Law and Prevention and Control of Environmental Pollution by Solid Waste Law Accepting supervision and inspections from government authorities such as the Provincial Department of
Finance and the Audit Department;
Employment Labor Law and Labor Contract Law Strengthening internal control management continuously promoting the building of the digital supply chain
system establishing "three lines of defense" for business supervision functional supervision and specialized
supervision continuously consolidating the supervision effectiveness of the digital supply chain system
Occupational health &
safety Prevention and Control of Occupational Disease Law and Work Safety Law in bulk raw materials and finished goods storage and transportation management. Adopting information
automation control processes (such as ERP systems) to reduce human interference.The Company strictly complies with the relevant laws and regulations regarding information disclosure. It discloses
regular reports interim announcements and other significant information to the public through the Shanghai Stock Complaints Management
Exchange's website and the Shanghai Securities News. The Company ensures that the disclosed information is true
accurate complete timely and fair thereby safeguarding the rights of investors to be informed and make decisions. Establishing "four forms of decadence" reporting platform hotline email mailbox and other channels for
The Company has been honored by the China Association for Public Companies as an "Outstanding Practice Case of the complaints or reports strictly maintaining the confidentiality of reporters' personal information;
Board Office of Listed Companies in 2024". Promptly investigating upon receiving complaints implementing accountability proposing rectification
measures and forming a closed-loop management.Internal Risk Control
Learning and Promotion
The Company has established a risk management system which consists of the Board of Directors the Risk Management
Committee the Risk Management Department various functional departments and subsidiaries. In accordance with the Conducting anti-corruption culture building and training in
provisions of the Company Law and the Basic Norms of Enterprise Internal Control the Company has formulated the Risk various forms launching the "Integrity Ancai" Official WeChat
Management Measures Internal Control Management Measures Internal Control Evaluation Management Measures and Account producing "Integrity Talks" short-form videos to create
Audit Management Measures among others. Based on strategic and operational objectives the Company determines an ethical and upright working environment and atmosphere;
risk management strategies covering key aspects such as risk identification assessment response and monitoring. During the reporting period a total of 159 people including
The implementation is carried out in processes including production procurement sales financial activities asset leaders and personnel in key positions signed the integrity
management and personnel management. The implementation is evaluated supervised improved and refined to ensure commitment letter. There were no incidents of commercial
the Company operates in a standard and sound manner. bribery or violations related to corruption.
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Party Building Leadership Case Collaboration in Party Building for Green Development
Ancai Hi-Tech deeply understands the ideology of Xi Jinping Thought on Socialism with Chinese Characteristics for a New
th
Era. The Company implements the Work Regulations for the Primary-level Organizations of State-owned Enterprises of In April 2024 the 4 Party branch of Ancai Hi-Tech and the 1st Party branch of Anyang City Ecological Environment
the Communist Party of China (Trial) and continuously strengthens the primary responsibility of Party organizations at Monitoring and Safety Center jointly organized a themed Party Day event titled "Building a Strong City Taking the
all levels in Party governance and discipline enforcement. It practices "value-based Party building" and comprehensively Lead and Pioneering New Achievements".improves the overall level of Party building work.Based on the Constitution of the Communist Party of China and the Regulations on the Implementation of the Main
Responsibility of Party Committees (Party Leadership Groups) for Comprehensive and Strict Governance the Party
the Company has established the Party Building Work Meeting System and the Party Building Assessment Measures.Following the principle of "focusing on work to promote Party building and promoting development through effective
Party building" the Company promotes the deep integration of Party building work and production and operation. It
ensures that Party building work and production targets are aligned processes are integrated and implementation is
synchronized. Efforts are made to create a closed-loop system of Party building empowerment aiming to guide and
ensure high-quality development of the enterprise through high-quality Party building.In 2024 the Party Committee of Ancai Hi-Tech actively carried out relevant work under the theme of "strengthening
Party building establishing a foundation and forging new achievements". Efforts were made to promote organizational
innovation and successfully completed the acceptance of the first batch of "Five-Star" Party branch creations by higher-
level Party committees. Thematic education campaign was conducted with concrete measures aiming to guide Party
members in following Party discipline establishing rules promoting positive atmosphere and enhancing immunity
against misconduct. Efforts were made to cultivate industry "pioneers". Three comrades were honored with titles such as
"2024 National Model Worker in the Mechanical Metallurgical and Building Materials Industry" "Labor Model of Henan
Province" and "March 8th Red Flag Bearer of Jiaozuo City". They actively demonstrated the exemplary and leading role of
Communist Party members in frontline production."Celebrating the Birthday of Our Motherland Showcasing Youthful Charm"
Case Theme Speech Competition Group Photo of the Party Day Event
In September 2024 to celebrate the 75th anniversary of the founding of the People's Republic of China Ancai
Hi-Tech organized a theme speech competition titled "Celebrating the Birthday of Our Motherland Showcasing
Youthful Charm". The competition aimed to showcase the spirit and dedication of Ancai employees in their roles as
well as to enhance team cohesion.Speech by the Participants in the Competition
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Innovation-driven Development Intellectual Property Protection
Innovation is the inexhaustible driving force for enterprise development. "Integration of education production and
research" and "treating digestion and absorption equal to research and treating innovation equal to invention" are Intellectual property protection serves as a protective barrier for enterprise innovation and development. The Company
important components of the Company's culture. With the support of systems and research platforms the Company has has formulated the Patent Management Measures in accordance with the Patent Law and the Anti-Unfair Competition
established a four-pillar system consisting of strategic planning organizational structure resource allocation and results Law to regulate the processes of patent application trademark registration and protection of trade secrets. The
transformation. This has built a complete closed loop for trend forecasting technological breakthroughs and industrial Company has established an intellectual property right protection system based on the principles of "creation protection
transformation leading to a series of research and development achievements. In 2024 the Company's total research operation and prevention". It clearly defines the responsibilities and collaboration mechanisms of R&D manufacturing
and development investment amounted to RMB 123 million. legal affairs marketing and other positions to ensure that the Company realizes maximum intellectual property value
and risk control.Technology Research and Development System
R&D Innovation Achievements
The Company implements a strategy of promoting enterprise development through science and technology. It has
formulated regulations such as the Management Measures for Research and Development Management System for
Research and Development Project Funds Management Measures for the Introduction of Outstanding Talent and R&D innovation is a vital driver for the Company's development. Since its establishment the Company has always
Organization Implementation and Incentive Reward System for the Transformation of Scientific and Technological focused on the research and development of functional glass and high-end glass. It continuously promotes technological
Achievements. These regulations standardize research and development management and stimulate innovative vitality. innovation and conducts ongoing research and exploration in various product fields such as colored display glass solar
glass medium borosilicate pharmaceutical glass high-end energy-saving glass for buildings LCD glass and ultra-
The Company attaches great importance to the establishment of research and development platforms and has a national thin glass for electronic information displays. The Company has applied for more than 470 patents in total. During the
enterprise technology center a post-doctoral workstation and has invested in the establishment of Ancai Glass Research reporting period the Company filed 43 patent applications and obtained 44 authorized patents including 3 invention
Institute to strengthen independent research and development. In addition the Company focuses on integrating external patents. The Company currently holds a total of 191 valid authorized patents including 26 invention patents.resources and continuously strengthens cooperation with universities and research institutes. It creates a multi-level and
open research and development platform matrix providing strong support for technological breakthroughs and industrial
upgrading.The Company deepens the management of technological innovation projects dividing them into three categories based
on their importance and innovativeness:
During the reporting period the Company filed The Company currently holds a total of including
Projects involving original innovation integrated innovation and re-
innovation through introduction digestion and absorption. These projects 43 patent applications 191 valid authorized patents 26 invention patents
Category A involve high technological difficulty and require significant development and innovation (such as new materials new processes new equipment and new
technologies). The overall technological level is expected to reach above some
international leading standards. Innovation achievements:
Ancai Photovoltaic New Materials Jiaozuo Ancai Xuchang Ancai Ancai Photothermal
Technology and Xinhe Industry have been recognized as "National High-tech
Projects that involve independent innovation built upon the foundation of Enterprise" and "Specialized Refined Differential and Innovative SMEs". The Company
Category B introduction digestion and absorption. The overall technological level is was recognized as a high-tech enterprise and a specialized refined differential and
expected to reach the advanced domestic standards. innovative enterprise in photovoltaic photothermal and pharmaceutical glass sectors.Ancai Photovoltaic New Materials Xuchang Ancai and Ancai Photothermal Technology
Improvement and innovation projects. These projects are of great promotion have been recognized as "Intelligent Factories" in Henan Province.Category C value within the Company involve some level of innovation as well as technological difficulty and the overall technological level is expected to reach
the leading position within the Company.Jiaozuo Ancai was awarded the "Fourth Batch of Intelligent Photovoltaic Pilot
Demonstration Projects" by the Ministry of Industry and Information Technology.The Company provides rewards for employees' achievements in scientific and technological innovation technological Xuchang Ancai was honored as the "2024 Single Champion Enterprise of Manufacturing
research and development and technological breakthroughs. Each year the Company conducts evaluations for the Industry in Henan Province" and the "Leading Enterprise in Manufacturing Industry"."Science and Technology Innovation Award" "Technological Innovation Award" and "Technical Paper Award". Additionally
the Company occasionally establishes the "Small Change and Innovation Award" to inspire employees' innovative.
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Case Innovative Breakthrough in Photothermal Glass Technology
In 2024 Ancai Photothermal Technology intensified its efforts in exploring core of photothermal glass technologies
resulting in a significant improvement in production efficiency. Focusing on the key technical indicator of
transmittance in photothermal glass the Company strengthened its innovation efforts. Through persistent efforts
the formulation of photothermal glass raw materials was further optimized and process control was greatly
enhanced. As a result the product's full-spectrum transmittance and visible light transmittance surpassed those of
competitors in the industry.Breakthrough in online dynamic cutting accuracy for photothermal glass. The online dynamic
cutting accuracy of 3mm thin glass reached the same level as offline static cutting accuracy
enabling the direct collection of products online and overcoming a technical challenge in the
industry. Digital Transformation
Achieving the record for the shortest material changeover time. The technical team The Company actively promotes digital transformation by planning a framework model of "Cloud-based Headquarters
carefully prepared and optimized the process. By switching from ultra-clear float glass to Platform + Multiple Factory Edge Platforms + Multiple Sass-based applications". This model covers six modules: production
photothermal glass material the material changeover time was reduced by 35% compared management safety management cost management financial management sales management and equipment
with the shortest time in history. management. It spans across four factory areas and establishes a collaborative manufacturing management platform.This enables real-time collection of production and operational data and enhances the level of precision management.Achieving a record-high production yield of high-quality products. Through the
implementation of lean management throughout the entire production process the yield of
high-quality 3mm photothermal glass increased by 15% leading to a significant improvement
in overall efficiency. Cloud-based
Headquarters Platform Ancai Hi-Tech Supply Chain 5+N System
Case Glass Antifungal Optimization Project
In response to "alkali spotting" (sodium ion precipitation) during the storage process of ultra-clear glass products
Ancai Photothermal Technology conducted technological research and enhancement. It optimized the formulation
of raw materials achieving improved antifungal effects and product cleanliness for ultra-clear glass products.Additionally the project effectively reduced production costs resulting in annual cost savings of approximately RMB
700000.
Multiple Factory
Edge Platforms
Technological breakthroughs in photothermal glass products have contributed to the expansion of the market. In 2024
Ancai Photothermal Technology established good cooperative relationships with the China Solar Thermal Alliance and
several leading downstream enterprises. It also reached supply agreements with various solar thermal power station
construction companies. As a result the brand's effect became significant. Photothermal glass orders account for
approximately 50% of the domestic market share.Multiple Sass-based
Applications
Precision Operation of Intelligent Robotic Arm
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Production Photovoltaic New
Management Materials Factory System
Safety
Management
Photothermal Technology
Cost Factory System
Management
Financial
management Xuchang Ancai Factory
System
Sales
Management
Equipment Jiaozuo Ancai Factory
Management System
Appendices Employee Care and Environmental Management Product Innovation and Corporate Governance and Introduction to Honors and Key ESG Address by Chairman About This
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Case Digital Supply Chain Management System Product Responsibility
Products are the Company's business card and services
The Company has estab l i shed a are the bridge connecting customers. The Company has
mechanism to prevent and control established a comprehensive research and development
supply chain fraud risks by developing production and sales system. It precisely and effectively
a digital supply chain monitoring and controls the quality control processes. With high-quality
management system. The system products and sincere services the Company has earned
focuses on procurement logistics and the trust of a wide range of customers. Customer privacy
sales logistics integrating business protection is a reflection of the Company's integrity. The
data from various stages including Company pays attention to network and information security
procurement sales gate management management to ensure the security of customer information.measurement and warehousing. It
The Company has formulated the Anti-Monopoly Control
utilizes automation control technology
Procedures in accordance with the Anti-Monopoly Law and
network technology video technology
strictly implemented the procedures. This is to prevent and
computer technology and database
stop monopolistic behaviors and to protect fair competition
technologies. It combines multiple anti- Digital Supply Chain System
in the market.fraud measures to remotely monitor
measurement management and Product Safety and Quality
logistics operations thus creating a
closed-loop logistics information system.Product safety and quality are the lifeblood of the Company. Each business division and subsidiary of Ancai Hi-Tech has
established a quality management organization and quality management team responsible for quality management and
supervision. Adhering to the quality concept that "product quality stems from production " the Company has established
a holistic control system for raw materials product research and development production inspection shipping and
Case Xuchang Ancai Intelligent Factory quality feedback. Standardized management measures are implemented in process technology product technology
product quality and safety quality inspection warehousing and transportation to ensure the provision of high-quality
products for customers. By the end of the reporting period the Company and its subsidiaries have all passed the GB/T
Based on the new generation of information technologies such as Industrial Internet cloud computing big 19001-2016/ISO 9001:2015 quality management system certification.data artificial intelligence Internet of Things and blockchain the Company has built an industrial metaverse
platform. The digital twin of the kiln serves as the core constructing three major applications: kiln metaverse Types of Quality Management System
comprehensive production control and kiln control assistant decision-making. By integrating information technology Certificates Certificate 3C Certificate
and manufacturing technology the production process is made intelligent digitalized and flexible enabling data
analysis to improve processes quality and lean production. This ultimately leads to the creation of an intelligent Execution Standard GB/T 19001-2016/ISO 9001:2015 CTC/TC-OP01/3.1
benchmark factory in the photovoltaic glass industry and an industrial Internet platform for the glass industry.Ancai Hi-Tech
Ancai Photovoltaic New
Materials
Jiaozuo Ancai
Xuchang Ancai
Ancai Photothermal
Technology
Pharmaceutical Glass
Project Department
Puyang Xinhe
Control Room of the Metaverse Intelligent Factory
Ancai Semiconductor
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Customer Service
Customer service is the last mile of the Company's quality management. The Company adheres to customer-oriented
principles formulating regulations such as the User Service Management Regulation Quality Information Feedback
Management System and Customer Satisfaction Testing Procedures. Continuous improvement is made in the customer
service system to enhance customer satisfaction.Customer service
Actively conduct customer visits to introduce products and maintain relationships gaining a
deep understanding of customer needs.During the reporting period there were more than 500 times of comunitation with
customers and the Company participated in 4 ESG training sessions provided by customers.Quality Management System Certificate
Industry communication activities
The Company participated in 3 technical seminars and 4 industry exhibitions to understand
Jiaozuo Ancai was awarded the "First Prize of Quality Management Team" in the Chinese electronic information industry. industry trends and showcase the Company's strength and brand to customers and the
Ancai Hi-Tech was also honored with the title of "Advanced Unit in Quality Management Achievement Competition" in market.Anyang City.Measures for Raw Material Quality Control Customer satisfaction survey
We regularly conduct customer satisfaction surveys with questions set in various
Emphasizing source control the Company has established systems such as Raw Material Standards Raw Material dimensions such as market marketing services product quality and services and overall
Analysis Methods and Guidelines for Raw Material Testing. It continually optimizes and improves laboratory analysis situation. We analyze the survey results to understand customer concerns and improve
methods and inspection processes during actual operations. This helps to enhance inspection efficiency and timely service quality. During the reporting period the questionnaire response rate was 100% and
information transmission ensuring the control of raw material quality and safeguarding the quality of products. customer satisfaction exceeded 98%.Product Quality and Safety Control Measures Product Quality Improvement Measures
Handling procedures of product quality feedback:
● Standardize the inspection of raw materials ● Benchmark the quality level of domestic and
and use qualified raw materials; international peer companies understand and
master the current quality status of mainstream a Within 24 hours we complete the traceability confirmation of products in the same ● Scientifically allocate the amount of raw products in the market; batch of inventory and products in transit and confirmation of online production status.materials and ensure accurate measurement;
●
● Provide high-quality equipment and Analyze glass defect data to identify and
professional talent resources ensuring improve relatively weak areas;
both hardware and software support. Use ● Upgrade and transform equipment according to
advanced production and testing equipment; market conditions and customer requirements; b Within 7 days we identify the cause and formulate corrective and preventative measures.● Continuously conduct professional and skills ● Learn and apply quality management tools
training for employees enhancing their continuously optimize quality management
awareness and operational proficiency in methods and improve product quality and We complete improvement measures and track
quality; service quality; the effectiveness of customer use. The tracking
● Provide timely and professional pre-sales in- ● Closely monitor the usage of products by c time for effectiveness of use is dependent on
sales and after-sales services. customers and continually improve the quality customer production schedules. Generally it is
control level in the manufacturing process based within 30 days.on customer feedback.
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The Company places great importance on Data Security and Customer Privacy Protection
customer experience. Over the past 17 years of
operation in the photovoltaic glass sector it has
established strong mutual trust and long-term The Company has established a leadership group to oversee network security and supervision. In accordance with the
strategic partnerships with numerous leading Cybersecurity Law the Company has formulated regulations including Network Security Management Regulations
domestic and international customers. This is Data Backup and Hierarchical Classification Management Regulations Data Security Network and Information Security
attributed to the Company's high and stable Incident Emergency Plan and Information Asset Management System. These measures aim to strengthen network
product quality as well as its attentive service. information security management and protect customer privacy. During the reporting period the Company did not
The "Ancai" brand has gained a good reputation experience any data security issues or incidents of customer privacy breaches.in the industry. In 2024 the Company was
selected as an "the Excellent Partner" by TZE and Data classification management:
named an "the Outstanding Supplier" by DMEGC. Company Quality Month Communication with the Monitoring
Department
Industry Communication
General data
The Company actively conducts and participates in industry communication activities. Ancai Photovoltaic New Materials
is a council member of the China Architectural and Industrial Glass Association and has participated in the formulation of Various information of individuals or departments including office documents and email data.national standards such as the Solar Glass-Part 1: Ultra-clear Patterned Glass and Light Weight Thermally Strengthened
Glass . In 2024 Ancai Photovoltaic New Materials participated in 2 meetings of the China Photovoltaic Industry
Association.Xuchang Ancai is a council member of the Henan Energy Efficiency Technology Association. In 2024 it participated in Important data
industry and technical meetings on Comprehensive Standardization Technical System for the Solar Photovoltaic Industry Archive data monitoring data server data etc.Specification for the Evaluation of Zero Carbon Factories and Guidelines for the Evaluation of Super Energy Efficiency
Factory.Ancai Photothermal Technology continues to deepen strategic cooperation with leading companies in the industry. It
focuses on three areas: photothermal glass technology research and development industrial development of ultra- Log analysis management:
clear float glass and collaborative optimization of the supply chain system. Together they aim to create a research and
production base for high-end glass products. In 2024 Ancai Photothermal Technology directly organized 2 technical
meetings of the China Solar Thermal Alliance and participated in the China Shanghai International Glass Industry Network administrators and system administrators review and analyze network data logs
Technology Exhibition. This provided insights into industry trends deepened communication and collaboration and set on a daily basis. If any abnormal situations are found they promptly inspect the system to
the direction for their own development. check if there is any intrusion and report it;
Security administrators and audit administrators regularly analyze and summarize
network data logs to ensure that the audit system is functioning properly;
participated in directly organized
2 meetings of the China Photovoltaic Industry 2 technical meetings of the China Solar
Association Thermal Alliance Security administrators regularly back up network data logs.Information Database Problem and Information Technology Equipment
Case Emergency Drill
During the drill we simulated a scenario where there was a severe database failure. The objective was to quickly
restore business operations by performing a switch to the primary or secondary database. We utilized database
backups to expedite the process of rebuilding the database and restoring it to the latest state. Single-point devices
in the network topology pose a significant security risk to enterprise networks. In the event of a single-point device
failure information management personnel must respond quickly and perform fault localization. This enables them
to identify and resolve the issues causing network communication interruptions.
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Supply Chain Security
Based on the principles of "safety transparency and sustainability" in supply chain management the Company
has established a supply chain management system. It implements strict supplier admission mechanisms to ensure
quality control from the source. The Company conducts multidimensional assessments of its partners' quality
management systems environmental responsibilities occupational health and safety and supply guarantee to
ensure that the purchased products and services comply with quality environmental and occupational health and
safety standards.Suppliers Management
The Company has formulated a Supplier Code of Conduct that encompasses standards related to business
ethics human rights health and safety and environmental protection. We have also developed the Supplier
Environmental Management Notification to ensure effective implementation of quality environmental occupational
health and safety management systems as well as the ROHS management system (based on the Restriction of
Hazardous Substances Directive a mandatory standard set by the EU to regulate the use of hazardous substances
in electrical and electronic products).The Supplier Recognition and Evaluation Management Regulations have been formulated to conduct rigorous
qualification certification for qualified suppliers in accordance with the relevant processes. Performance For qualified suppliers the Company conducts regular audits and evaluations of their actual supply performance in terms
evaluations including quality price delivery time and service are conducted quarterly or irregularly to assist of supply quantity quality service and price. If necessary quality control personnel and representatives from the user
suppliers in improving their product quality and service levels. Based on the evaluation results corresponding departments are organized to audit and evaluate the supplier's production control processes offline. During these visits
dynamic management measures are taken to create a favorable supply environment for the suppliers. they communicate on quality standard requirements and assist the supplier in continuously improving their product
quality and service levels.Evaluation
Level Management Measures Equal Treatment of SMEs
A Prioritized order placement; The Company fully respects and protects the legitimate rights and interests of suppliers and has established good
Increased supply allocation; cooperative relationships with the main suppliers. The Company continuously improves its procurement-related systems
enhances the supply environment and reasonably arranges the payment plan for procurement funds. We ensure timely
Other feasible measures. payment to suppliers as agreed and have no outstanding payments to private companies or SMEs.Transparent Procurement
B
Normal procurement is maintained. The Company has formulated the Procurement Management Measures and Bidding and Procurement Supervision and
Management Measures in accordance with national laws and regulations such as the Bidding Law to regulate bidding
and procurement behaviors. During the bidding and procurement process the Company emphasizes integrity and
discipline. We require all suppliers to sign the Integrity Commitment Integrity Contract and Anti-Commercial Bribery
Agreement. The Company's procurement supervision department monitors the bidding and procurement process to
For suppliers evaluated as C-level in a quarter we reduce the purchase quantity; prevent potential corruption risks and ensure that the procurement work is conducted in an "open fair just competitive
C For suppliers evaluated as C-level for two consecutive quarters we suspend procurement merit-based and honest and trustworthy" manner.and require the suppliers to analyze the reasons and develop and implement improvement
measures. The suppliers will be re-evaluated by the relevant department and will be eligible
for supply once they meet the qualification criteria defined in the Supplier Recognition and
Evaluation Management Regulations.For suppliers evaluated as D-level in a quarter procurement will be suspended and the
suppliers will be required to analyze the reasons and develop and implement improvement
D measures. The supplier will be re-evaluated by the relevant department and will be eligible
for supply once they meet the qualification criteria defined in the Supplier Recognition and
Evaluation Management Regulations.If a supplier receives a D-level evaluation for four consecutive times within a year its
qualification as a supplier will be directly canceled.
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Environmental Management System Environmental Management System Certification
The Company attaches great importance to ecological conservation and pollution prevention. It actively fulfills its
Organizational Structure for Environmental Management social responsibilities and carries out environmental management system certification. Both the Company and its
major subsidiaries have obtained certification for ISO 14001:2015 Environmental Management System. They have also
undergone assessments and acceptance inspections by local municipal provincial and national environmental protection
The Company implements a "One Position Dual departments. Most of the subsidiaries have been rated as A-level Environmental Performance Enterprises indicating
Responsibilities" management model involving that they have achieved the highest level of environmental governance in the industry these companies can continue
"safety + environmental protection" and has production or implement limited production during periods of heavy pollution emergencies and they take autonomous
established an organizational structure for safety measures to reduce emissions.and environmental protection. This structure
oversees the management of environmental Environmental Management System Environmental A-Level
protection and safety throughout the Company. Certificate Certification
It has also established a system of safety and
environmental responsibilities that are executed Ancai Hi-Tech
by various departments to achieve the goals of
safety and environmental management.Ancai Photovoltaic New
Materials
Organizational Structure for Safety and Environmental Protection Responsibility of Ancai Hi-Tech
Jiaozuo Ancai
The Company's General Manager is responsible for the comprehensive Xuchang Ancai
deployment of safety and environmental protection management.Safety and Environmental The Company’s headquarter has established a safety and Ancai Photothermal
Protection Management
Committee environmental protection responsibility system that covers all
Technology
employees and production operations fulfilling the function of safety
and environmental protection supervision and management. Pharmaceutical Glass Project Department
The Office executes relevant safety and environmental laws Xinhe Industry
regulations and standards participates in the Company's safety
Safety and Environmental
Protection Supervision Office and environmental protection management decision-making and
guides and supervises the safety and environmental protection of
various business divisions subsidiaries and departments.The Departments serve as the responsible entities for safety and
environmental protection for each unit. The key leaders in charge
Various Business Units are fully responsible for the safety and environmental protection of
Subsidiaries and
Departments their respective units. The personnel in various positions carry out
specific safety and environmental protection tasks according to their
responsibilities.Environmental Management System
The Company strictly adheres to the Environmental Protection Law and follows the principles of legal compliance all-
employee participation whole-process control and risk prevention. It has formulated environmental protection system
materials which cover policy requirements environmental objectives organizational responsibilities environmental Environmental Management System Certificate
performance monitoring and management employee training and assessment as well as emergency plan and
prevention with an emphasis on comprehensiveness and compliance. During the reporting period the Company did not
experience any significant environmental incidents or environmental penalties.
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Environment Impact Assessment Energy Management
The Company pays attention to the environmental impacts of projects throughout their lifecycle. From design to The Company responds to national energy-saving and carbon reduction policies and adheres to the energy policy of
implementation it employs scientific environmental impact assessments and comprehensive process control to effectively "complying with laws innovation energy-saving emission reduction clean production and green development". It
balance production and environmental requirements. The goal is to minimize the environmental impacts of project continuously improves its energy management system and has established Energy Management Regulations Manuals
operations to the greatest extent possible. and Procedure Documents as well as Provisional Measures for Energy Conservation. Our workplaces are monitored and
controlled for energy usage.Development of Environmental Awareness We set energy efficiency targets and break down annual energy consumption targets for production workshops
according to energy management needs and historical energy consumption. An assessment mechanism and reward-
punishment system are established to ensure the implementation of energy-saving measures in all production units.The Company promotes standardized environmental management Subsidiaries of the Company such as Photovoltaic New Materials and Xuchang Ancai have obtained certifications for
and conducts multi-level environmental training to ensure that the energy management system GB/T 23331-2020/ISO 50001:2018. Xuchang Ancai has also achieved certification for the
all employees have a deep understanding of and implement the intelligent green and low-carbon management system according to the technical specifications of the CTS ZY 007-2024
concept of green development. This strengthens the Company's digitalized green low-carbon evaluation and management system. The product energy consumption has reached the
ability to fulfill its social responsibility in environmental protection. national benchmark (GB 21340-2019 the National Standard of the People's Republic of China).Environmental Emergency Management Indicator Unit Data in 2024
Total direct energy consumption Ton of standard coal equivalent 317821.57
The Company adheres to the principle of "prevention first combining prevention with emergency plan". It has established Total indirect energy consumption Ton of standard coal equivalent 41634.08
an environmental emergency management system based on the characteristics of its business and has formulated an Total energy consumption Ton of standard coal equivalent 375307.55
Emergency Plan for Sudden Environmental Incidents and implemented the responsibility of environmental protection.Clean energy usage Ton of standard coal equivalent 15851.90
Note: Direct energy consumption comes from natural gas; indirect energy consumption comes from purchased electricity; total energy consumption
Case Environmental Emergency Resource Management and Drills consists of the sum of direct energy indirect energy and clean energy consumption; clean energy usage includes waste heat power generation
rooftop photovoltaic plants and source-grid-load-storage.In 2024 Ancai Photothermal Technology conducted
a comprehensive survey of environmental Energy Conservation and Consumption Reduction
emergency resources and evaluated the building
of emergency plan team based on the technical The Company implements a series of innovative projects and technological transformations to improve processes and
specifications outlined in the Guidelines for upgrade production equipment reducing resource consumption. Targeting production processes and energy consumption
Environmental Emergency Resource Survey by the structure energy-saving technology upgrades are carried out in multiple key areas. At the same time resource recycling
Ministry of Ecology and Environment. They also is promoted energy efficiency management is strengthened energy costs are significantly reduced and resource waste
improved the report on environmental emergency is minimized.resource survey. For high-risk substances Ancai
Photothermal Technology carried out specialized Major energy usage and energy-saving measures:
environmental emergency capability building. Energy Category Usage Process Energy-Saving Measures
It systematically assessed the risks of sudden
environmental inc idents that could cause New insulation and energy-saving technologies such as gradient
secondary environmental pollution such as leaks Environmental Emergency Drill cooling process fiber spraying technology composite shading
fires and explosions and organized a specialized Glass kiln technology and thermal bridge prevention construction
emergency drill for ammonia leakage to validate Natural technology are adopted for kilns. Infrared high-radiation energy-
gas saving coatings are used for glass kilns. These measures achieve the effectiveness of its emergency plan through gas savings and excellent insulation effects.practical exercises. This further enhanced its ability
to prevent and respond to environmental risks. The high-temperature flue gas waste heat from the glass kiln
Roof of the plant is fully recycled for waste heat power generation. On the roofs
switching station of the plant buildings distributed photovoltaic power stations
low-voltage are constructed to generate electricity using solar energy. The Energy Utilization substations MCC electricity generated is used for glass production achieving
Electricity rooms on-site
energy-saving and consumption reduction effects. In 2024 99.89
power cabinets million kWh of electricity was generated through waste heat
The Company adheres to the concept of green and low-carbon development. Through measures such as improving and electrical power generation. Subsidiaries constructed photovoltaic power
management systems optimizing production processes and constructing green factories it applies lower-carbon equipment stations on the roofs of their plants and implemented source-
and more energy-efficient models and technologies throughout its production and operation processes. The Company grid-load-storage stations generating 36.48 million kWh of
implements energy-saving and emission reduction measures to enhance energy efficiency. photovoltaic power in 2024.
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Display of Some Projects on Energy Conservation and Consumption Reduction of Production Equipment
Ancai Photovoltaic New Materials Ancai Photothermal Technology Jiaozuo Ancai Xuchang Ancai
Reducing energy consumption of the dryer adsorption tower regeneration: Optimizing the Pharmaceutical Glass Project Department and Anyang Silicon-Based New Materials have a combined
drying and regeneration modes reducing the regeneration frequency by 5.89 times per day rooftop solar power station capacity of over 30 MW capable of generating approximately 35 million kWh of
resulting in a daily electricity saving of 566 kWh. electricity annually.Source-grid-load-storage is a new power operation mode that integrates "power generation power grid load
and energy storage" in a holistic planning approach. Subsidiaries are constructing source-grid-load-storage
Recovery of overflow material cooling water: Recycling and reusing the cooling water saving photovoltaic power generation and energy storage projects. The generated electricity is used for internal
30 tons of tap water per day achieving zero direct discharge. production needs without causing impacts on the power grid while effectively reducing production costs.
Ancai Photovoltaic New Materials Jiaozuo Ancai and Xuchang Ancai have completed and are constructing
Recovery of purified water in the oxygen production system: Collecting and reusing the source-grid-load-storage photovoltaic power generation projects with a capacity of 6 MW capable of
purified water discharged from the nitrogen discharge well saving 36 tons of purified water generating approximately 6.1 million kWh of electricity annually.per day.Delaying the start of the refrigeration machine: Installing air conditioners for local cooling
and extending the operating time of the refrigerating machine which results in a daily
electricity saving of 1880 kWh.Shutting down fans: Based on seasonal and process requirements shutting down certain air
conditioning fans resulting in a daily electricity saving of 260 kWh.Optimizing the cleaning machine program reducing the frequency of the rapid cooling fan
in the tempering furnace and shutting off the heating of the curing furnace during the Rooftop Photovoltaic Power Generation Project Energy Storage Facilities for the Source-grid-
processing of perforated steel plates in the screen printing process which results in a daily load-storage Project
electricity saving of 8000 kWh.Case Reducing Energy Consumption of Dryer Adsorption Tower Regeneration
Case Ancai Hi-Tech Participates in the Second China International Supply Chain Expo
The Pharmaceutical Glass Project Department
optimized the operation mode of the compressed On November 26 2024 Ancai Hi-Tech as one of the representatives of clean energy supply chain enterprises
air dryer by upgrading from a scheduled participated in the second China International Supply Chain Expo (CISCE) in Beijing as part of the Henan delegation.switching mode to a dew point energy-saving More than 600 key enterprises from global industrial and supply chains exhibited at the event. A total of 13
mode. The regeneration interval was extended enterprises from Henan Province participated in the CISCE with Ancai Hi-Tech representing the clean energy supply
while ensuring that the dew point of the chain sector.compressed air meets the process standards. By
implementing these optimizations the average At the subsequent communication
daily number of regenerations of the equipment Ancai Hi-Tech as a representative
was reduced resulting in an annual electricity of Henan exhibitors delivered a
saving of over 20000 kWh. speech expressing its commitment Dew Point Energy-saving Mode of the Dryer to closely following the pace of
high-quality development of the
"the Belt and Road". Leveraging
Clean Energy the unique geographical advantage
of Henan Province Ancai Hi-Tech
actively engages in extensive
The Company integrates the promotion and application of clean energy including natural gas solar power generation external cooperation to create
and industrial waste heat power generation into its business practices. It optimizes the energy structure and integrated vertical development
supports low-carbon sustainable development. Ancai Energy a subsidiary is primarily engaged in natural gas pipeline and appl icat ion scenarios for
transportation delivering natural gas to industrial enterprises and urban gas companies along the pipeline. Subsidiaries "Photovoltaic + Photothermal" and
and glass kilns use clean energy such as natural gas as fuel. Solar power projects are built on the roofs of subsidiaries transform the supply chain into
and factories harnessing solar energy as clean energy for electricity generation. The electricity generated is used for a "win-win chain" contributing
the production optimizing the energy structure reducing operational costs and effectively reducing greenhouse gas new strength to the clean energy
emissions. Subsidiaries fully recover the high-temperature flue gas waste heat from glass kilns and utilize it for waste industry. Booth of Ancai Hi-Tech
heat power generation. This not only recovers heat but also generates electricity for use in glass production reducing
enterprise costs and achieving significant economic environmental and social benefits.
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Water Utilization
The Company implements the Water Law of the People's
Republic of China has established a water-saving leadership
group and water-saving management office and established
a water-saving target responsibility mechanism. All production
workshops departments and units cooperate and collaborate
to implement water-saving responsibilities and deepen the
awareness of water conservation among all employees.Water Conservation
The Company values the recycling and efficient utilization of water resources in the production process. By optimizing Case Water Conservation Action
process flows promoting water recycling and implementing water-saving technologies water consumption in the
production process is reduced. During the reporting period the Company achieved a recycling water reuse of 92.9039
million tons. Ancai Photovoltaic New Materials conducted a self-assessment for water conservation based on the Guidelines
for the Evaluation of Water-Saving Enterprises (GB/T7119-2006) and complied with all the basic requirements.Water conservation and management measures:
The installation rate of water meters is 100% with a high accuracy rate of 2.5% or
higher;
Each subsidiary and plant sets water usage targets and tracks monthly water
Target consumption. Water-saving plans are adjusted promptly as needed.tracking
The usage rate of water-saving appliances reached 95% resulting in an actual water-
saving rate of over 12%;
A wastewater recycling system is established utilizing an efficient sedimentation
tank system. After filtration sedimentation and coagulation processes clean water
32
is recycled and sludge is transported off-site for disposal. In 2024 the water intake per unit product was 110.2 m /10000 m a year-on-year
Water decrease of 8.17%. Compared with the local standard of Henan Province Industrial and Near-zero discharge systems are implemented utilizing ultrafiltration and reverse
recycling Urban Domestic Water Quota (DB41/T385-2014) it is significantly lower than the water osmosis equipment. After undergoing filtration and other processes water is
consumption quota of 257 m3/10000 m2 for the photovoltaic glass industry;
recycled for reuse.Reverse osmosis concentrate water is recycled by installing new recycling pipelines and
pumps utilizing existing facilities such as water tanks. This resulted in saving water
Irregular water conservation campaigns and educational activities are organized costs of RMB 1.3 million annually.Water promoting cost-saving and water-efficient practices among employees to enhance
conservation
propagation their awareness of water conservation.
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Waste and Pollutant Management Wastewater Management
Waste Gas Management The Company strictly controls wastewater management builds wastewater treatment and reuse facilities and ensure
that wastewater discharge meets the standards and resource utilization through the implementation of water recycling
quality-based treatment and wastewater recycling.The Company places high importance on protecting the environment preventing pollution and fulfilling our social
responsibilities. Regarding waste gas management the Company has developed Pollutant Emission Standard and On- Main wastewater types and treatment methods:
site Emergency Plan for Waste Gas Pollution Sources in accordance with the national the Prevention and Control of
Atmospheric Pollution Law Regulations on the Management of Pollutant Discharge Permits and industry standards. Emission Types of Wastewater Production Link Treatment Methods
These plans cover controlling emissions at the source process management monitoring and supervision and compliance Standards
assurance measures.Softened water
The Company designs and constructs glass kilns to high standards incorporating advanced technology and equipment wastewater Cooling water
for the treatment of flue gas. Each kiln is equipped with flue gas pollutant treatment systems for desulfurization
denitrification and dust removal achieving the comprehensive management approach that integrates source reduction After undergoing water
process control and end-of-pipe compliance. The pollutant emissions are superior to the national low standards and Purified water Heat recovery wastewater boiler treatment processes such as
the main environmental indicators have been reviewed and accepted by the district municipal provincial and national filtration sedimentation and
environmental protection departments. Ancai Photovoltaic New Materials Ancai Photothermal Technology Jiaozuo Ancai coagulation water is recycled.Excess water is discharged
Xuchang Ancai and Ancai Neutral Boron-Silicate Pharmaceutical Glass projects have all obtained the environmentally- Grinding water Finishing through the wastewater pipe
friendly A-level performance enterprise certification. workshop network.The main types of waste gas of the Company and their treatment methods: Integrated Wastewater Production Cleaning Finishing
Discharge Standard wastewater wastewater workshop
Management Type of Waste
Standard Gases Production Link Treatment Methods
(GB8978-1996)
Heat recovery After passing through a
Dust waste gas Ingredient mixing High-altitude emission after bag
separate water recycling system
process filtration Circulating cooling
boilers glass
melting kilns and in the plant area 90% of the water drainage water is reused for production
Emission Standard of Generated during the SCR (Selective Catalytic compressed air while 10% is discharged through
Air Pollutants for Glass Flue gas from glass kiln melting process in the Reduction) + NID (Nitric Acid stations the drainage system.Industry (GB26453-2022) kiln Desulfurization) + bag filtration Daily operations of
Waste gas from rolling
and coating Finishing workshop RTO
the administrative After undergoing treatment in
Other domestic wastewater departments septic tanks and grease traps
production the wastewater is discharged
The Company's waste gas emission standards treatment measures and emission volumes: departments and into the sewage pipe network.canteens
Emission Key Control Monitoring Treatment Approved Emissions in
Standard Indicators Methods Measures Total Emission 2024 Case Comprehensive Water Resource Recycling in the Workshop
Nitrogen oxide Chemiluminescence Selective catalytic method (Online) reduction (SCR) 715.77t/a 401.18t In April 2024 Ancai Photothermal Technology initiated a
Emission Ultraviolet NID semi-dry comprehensive water resource recycling project in the power
Standard of Sulfur dioxide fluorescence method 223.51t/a 54.33t workshop. Over 160 tons of wastewater generated during
Air Pollutants method (Online) the production process was recovered and reused after
for Glass
Particulate Laser forward Membrane-coated undergoing softening treatment in the firefighting water pool. Industry scattering (Online) bag filter 40.4t/a 6.85t
(GB26453- Currently the daily average discharge of wastewater from the Activated carbon
2022) workshop has decreased from over 200 tons to about 60 tons
VOCs FID (Flame ionization adsorption + zeolite resulting in a daily water saving of approximately 140 tons.detection) (Online) roller + regenerative
thermal oxidizer (RTO)
Ancai Photovoltaic New Materials Jiaozuo Ancai Xuchang Ancai Ancai Photothermal Technology and Ancai Neutral
Boron-Silicate Pharmaceutical Glass projects adhere to the relevant provisions of the Measures for the Disclosure of the daily average discharge of resulting in a daily
Environmental Information (Trial) to enter the basic production information pollution discharge information construction wastewater from the workshop has water saving of Equipment for Comprehensive Utilization and
and operation of pollution control facilities environmental impact assessment of construction projects information decreased from over 200 tons to about approximately Transformation of Water Resources
on other environmental protection administrative permits emergency plans for sudden environmental incidents self-
monitoring plans for the environment and other relevant environmental information into the relevant information 60 tons 140 tons
disclosure platform. They disclose relevant environmental information and accept social supervision.
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Solid Waste Management Response to Climate Change
According to the Prevention and Control of Environmental Pollution by Solid Wastes Law and the National Catalogue The Company actively promotes energy conservation emission reduction and circular clean production in line with
of Hazardous Wastes the Company has established the Regulations on Solid Waste Management and implemented the national "carbon peaking and carbon neutrality" strategy. We adheres to the concept of green development and
corresponding management measures and procedures for different types of solid waste. Additionally through contributes to carbon neutrality goals by reducing carbon emissions through technological innovation and efficient
the establishment of an Internet of Things (IoT) system intelligent management of hazardous waste generation resource utilization.transportation storage transfer etc. is achieved. This system complies with national requirements for the management
of hazardous waste and avoids potential non-compliant behaviors resulting from human intervention. During the The Company actively addresses climate change by using natural gas as a clean energy source for glass kilns. The
reporting period the Company did not have any incidents involving illegal disposal of waste. cumulative greenhouse gas emissions (Scope 1 + Scope 2) of Ancai Photovoltaic New Materials Ancai Photothermal
Technology Jiaozuo Ancai Xuchang Ancai and the Pharmaceutical Glass Project Department amount to 919400 tons
Indicators Unit Data in 2024 of carbon dioxide equivalent. Moreover the Company actively builds distributed rooftop solar power stations and waste
Total amount of non-hazardous solid waste Tons 148304.25 heat power generation facilities. The electricity generated from clean energy sources is used for its own glass production
resulting in a reduction of 83200 tons of carbon dioxide equivalent in greenhouse gas emissions. During the reporting
Total amount of hazardous solid waste Tons 76.352 period the Company invested RMB 10.1485 million in greenhouse gas emission reduction.Total amount of recycled waste Tons 138517.50
Indicators Unit Data in 2024
The Company implements recycling measures for certain types of waste:
Scope 1 Tons CO2 equivalent 712678.64
Criteria Types Processes Treatment Measures
Scope 2 Tons CO equivalent 206679.84
Standards for Pollution Broken Cold-end 100% recycling of broken glass from the production 2
Control on the Storage and glass cutting process Note: The greenhouse gas emissions statistics cover Ancai Photovoltaic New Materials Ancai Photothermal Technology Xuchang Ancai Jiaozuo
Disposal Site for General Dust collector collects dust directly returning it as raw Ancai and the Pharmaceutical Glass Project Department. Scope 1 emissions mainly come from natural gas and raw materials while Scope 2
Industrial Solid Wastes Dust Ingredient material to the production process achieving a 99% emissions mainly come from purchased electricity.(GB18599-2020) mixing process recycling rate. Green Factory Construction
Main waste types and treatment methods:
Types of Waste Production Link Treatment Measures The Company adheres to the requirements of national and Henan Province's green manufacturing system organizing
production and operation around resource conservation low-carbon energy and clean production. It is committed to
Scrap aluminum edges and Hollow Tempering Outsourced to qualified
corners Workshop companies for resale the development direction of green low-carbon and intelligent manufacturing combining advanced technologies and
Outsourced to qualified management methods to continuously make breakthroughs in energy conservation emission reduction efficient resource Grinding sludge Wastewater reuse companies for disposal utilization and environmental protection. Ancai Photovoltaic New Materials and Xuchang Ancai have established a digital
Desulfurization and Recycled by building material energy and carbon management center enabling functions such as energy monitoring carbon emissions accounting and Desulfurization slag denitrification companies carbon asset management. This comprehensive data support for energy conservation and carbon reduction management
Non-hazardous waste
Waste refractory bricks Kiln Recycled by refractory material helps the Company achieve its dual control targets for energy conservation and carbon emissions. Ancai Photovoltaic manufacturers New Materials and Xuchang Ancai have been recognized as "Green Factories" in Henan Province following the standards
Spent activated carbon VOC waste gas treatment and principles of factory intensification harmless raw materials clean production waste resource utilization and low-
Desulfurization and carbon energy.Spent catalysts denitrification Collected and periodically
Waste oil Equipment service and
disposed of by qualified Case Creating a Green Factory
maintenance hazardous waste disposal
Waste packaging materials Deep processing institutesHazardous waste Ancai Photovoltaic New Materials and Xuchang Ancai employ technologies such as efficient and energy-saving
Waste batteries Forklift transportation combustion low-temperature waste heat power generation and single kiln multi-line production to reduce energy
consumption and enhance their level of greenness. They have also constructed rooftop solar power stations to
reduce greenhouse gas emissions. The establishment of an online energy consumption monitoring system promotes
Noise Management digital energy management. Improvements in raw material control and production processes have been made
to produce green and low-carbon products. In terms of pollution control they adhere to the requirements of the
The Company prioritizes noise pollution control ensuring that noise emissions from equipment such as cutting machines Environmental Protection Law for "Three Simultaneities" reducing particulate matters and gas emissions and
comply with the Emission Standard for Industrial Enterprises Noise at Boundary (GB12348-2008). We implement effective enhancing environmental protection. They also implement the recycling and comprehensive utilization of waste
measures to reduce noise pollution and mitigate its impacts on the surrounding environment. glass creating a green development model.Chemical Safety
The Company emphasizes the management of hazardous substances and major hazard sources involved in production
and operation processes. We have developed regulations and systems such as the Regulations on the Safety
Administration of Dangerous Chemicals and the Management System for Hazardous Substances and Major Hazard
Sources . We conduct inspections and identification of major hazard sources strictly regulates inbound and outbound
management and controls the risks associated with hazardous chemicals. A chemical warehouse has been established
to categorize and store chemicals in different areas creating a safe and environmentally friendly production environment Waste Heat Utilization Facilities Solar Photovoltaic Power Generation Facilities
to ensure the safety and health of employees.
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Employee Rights and Benefits Protection of Employee Rights and Interests
The Company adheres to national laws and regulations such as the Labor Law and the Labor Contract Law. It has The Company places great importance on protecting employee rights and interests and prioritizes democratic
established systems such as the Labor Contract Management Measures Human Resources Planning Management communication. It has established a democratic management system with the Staff Congress as the core framework
Measures and Recruitment Management Measures to ensure lawful and compliant employment protect the rights and to safeguard employees' rights to information participation expression and oversight. The Company regularly conducts
interests of workers and create a fair and just employment environment. During the reporting period there were no the "Promote Enterprise Development with Our Creative Ideas" campaign to solicit employees' rational suggestions
incidents of forced labor child labor or discrimination within the Company. strengthening employees' sense of ownership and allowing them to fully voice their opinions and deeply participate in the
Company's development fostering a harmonious corporate atmosphere.Total number of employees During the reporting period the Company successfully held the Ancai High-Tech's Staff Representative Congress and
2070 deliberated and passed relevant agendas such as the appointment of alternate members of the second session of the Persons Trade Union Committee and personnel matters. Throughout the year a total of 273 rational suggestions were collected
Employee turnover rate and annual "Gold Ideas" and "Silver Ideas" selections were conducted.
2.46%
By age (Persons) By level (Persons)
123300
815177
27
10781620
Number of Number of Number of Number of employees Number of employees
employees under employees employees over in senior management in middle management
the age of 30 aged 30-50 the age of 50 the Second Session of the Third Staff CongressNumber of employees Ordinary employees
in junior management
Diversity and Inclusion Compensation and Benefits System
The Company advocates for equal freedom for all employees and promotes workplace inclusivity. Any form of targeted The Company has established a comprehensive compensation and benefits system adhering to the principles of "job-
discrimination is strictly prohibited. Equal development opportunities and welfare protection are provided for groups such based pay" and "merit-based rewards". We implement a scientific and modern performance management mechanism
as veterans and people with disabilities. The Company currently employs 28 individuals with disabilities 15 retired military and has formulated and implemented the Compensation Management System and Employee Benefits Management
officers and 8 retired veterans. There are also 260 in-service veterans. Every year the Company arranges employment System to fully motivate employees' enthusiasm and creativity. The Company complies with national and local regulations
opportunities for people with disabilities providing them with the most suitable conditions in terms of workload labor by providing social insurance and housing provident fund contributions for employees ensuring the protection of their
protection and welfare. legitimate rights and interests. During the reporting period the social insurance coverage rate for employees was 100%.During the reporting period the social
retired military officers retired veterans in-service veterans currently employs insurance coverage rate for employees was In 2024 the Company contributed a total of
15 8 260 28 individuals with disabilities 100% RMB 72433900 for employees' pension
insurance medical insurance unemployment insurance work-
related injury insurance and housing provident fund
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A variety of benefits are provided for employees including: Employee Care
Only child subsidy heatstroke prevention allowance meal allowance employee The Company adheres to the "people-oriented" philosophy and maintains close contact with employees with the trade
Subsidies and health check-ups and personal protective equipment (PPE) etc. union as a bond. It actively provides assistance for employees in need supports the education of employees' children
benefits
helps special employee groups and retired military officers and fosters a "family culture" atmosphere to protect
employee rights and interests.Statutory holidays sick leave work-related injury leave marriage leave bereavement
leave antenatal examination leave maternity leave paternity leave breastfeeding
Leave benefits leave and annual leave etc. Measures Actions in 2024
Staff Activities Organization of various cultural and sports activities 25 activities were conducted
Including employee activities and collective benefits.Union benefits Love and Mutual Educational assistance
Assistance Fund activities 9 children of workers in difficulty were assisted
Dormitory Welfare Staff dormitories 126 staff apartments were upgraded and renovated
Facilities and Entertainment places cultural and sports activities etc.welfare Skills Competition Organization of skills 1 provincial-level competition and 1 factory-level competitions competition were held
Assistance was provided for 82 disadvantaged
Training On-the-job training or short-term full-time training for employees etc. employees with a total of RMB in
Benefits Support for Special Assistance for seriously ill and 133000condolence payments; medical assistance was provided
Groups disadvantaged employees
for employees with 339 cases with a total of over RMB
Care for Female Employees 400400 in assistance.Skills Training Employee skills training 10 special training sessions totaling 136 hours were
conducted.The Company places great importance on the care for female employees and organizes annual health check-ups for
them. On occasions like Mother's Day and Women's Day the Company plans activities to enrich the spiritual and cultural Rest and relaxation activities
Talent Care for model workers and Rest and relaxation activities were organized for model lives of female employees enhancing their sense of happiness and belonging. This creates a harmonious and warm 6workers and craftsmen.corporate culture. craftsmen
Case Hosting an Exciting Women's Day Event Blossoming with Creativity The Company held a variety of rich and colorful staff cultural sports and holiday celebration activities; promoted a
healthy and civilized lifestyle; created an open and united cultural atmosphere; supported the all-around development of
th employees; enhanced team cohesion and employee belonging.In 2024 on the occasion of the 114 International Women's Day the Company organized fun activities such as
making embossed table lamps and themed flower arrangements.Blooming in the Warm Spring Breeze - DIY Embossed Flower Arrangements as a Tribute to Women's Day - the "Golden Sunflower Cup" Employee Basketball Game the "Ode to the Motherland" Revolutionary Song
Table Lamp Fragrance-filled Flowers and a Clean and Ethical Spirit Competition
- Themed Flower Arrangements
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Talent Training and Development Employee Training Flowchart
Determination of Job Descriptions
The Company upholds the concept that talent is the most important resource for its development. It adheres to the
principles of "respecting the value of talent shaping the quality of talent and dedicating to talent growth". The Company
encourages employees to do their best unleash their inherent potential and foster innovation aiming to achieve mutual Determination of Training Needs
growth of company benefits and employee value. During the reporting period the Company conducted multiple sessions
of employee training covering a 100% participation rate. The investment in training amounted to RMB 232000.Training Plan Development
Implementation of Training
Training for New Employees and
The Company conducted multiple The investment in training Training for Outsourced Employees Job Transfers
sessions of employee training covering a amounted to
100% participation rate RMB 232000 Training for General Technical JobsSkills Assessment
Training for Key Positions
Employment of Part-time Teachers
Training Effectiveness Evaluation
Training System
Training Management
In accordance with the development plan and annual operational management goals the Company has formulated and
implemented systems such as the Employee Training Management Procedure Reserve Talent Management Measures
and Company-wide Talent Enhancement Program. These systems promote comprehensive improvement in talent
development unlock the intellectual potential of employees strengthen the building of the talent pool and meet the Training Assessment
Company's needs for enhancing the qualifications of various types of talents.Building a Talent Pool
Implementing a strategy of "strengthening the Company through
talents" the Company has established a comprehensive talent
development mechanism emphasizing the training of skilled talents.The goal is to build a talent team with integrity loyalty dedication
practical innovation frankness responsibility and tenacity.During the reporting period the Company introduced high-end talents
through collaborations with the Glass Research Institute R&D centers
and post-doctoral workstations. Collaborations with universities were
established for joint training and targeted recruitment of professional
and technical personnel. The Company also partnered with vocational
and technical colleges to establish internship and training bases to
cultivate frontline operators. For professional and technical personnel University-Enterprise Cooperation Reached Between School of Materials Science and
a mentoring system is implemented. Talent development is included Engineering Henan Polytechnic University and
in the Company's performance evaluation scope with key technical Jiaozuo Ancai
positions having specific training and assessment indicators. Talent
reserves are planned and a talent promotion channel is established.
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Occupational Health and Work Safety
Total duration of Times of safety drills Employee work Safety
occupational health and conducted (fire toxic injury insurance investment
work safety training gas leaks etc.) coverage rate
152 32 100% 1915.22 Work Safety Inspections and Emergency Drills hours times RMB'0000
Case "Hundred-Mile Journey" Spring Route Safety Inspection in 2024
Work Safety Ancai Energy's West-East Gas Pipeline in the northern Henan province is an important energy supply channel. In March 2024 Ancai Energy conducted the "Hundred-Mile Journey" spring route safety inspection activity. A total
of 78 staff members including cadres and employees actively participated in the event. They were divided into
The Company implements a "One Position Dual Responsibilities" management model for safety and environmental 30 groups to conduct on-foot inspections of the 206-kilometer northern Henan branch pipeline as well as 12 valve
protection having established an organizational structure for safety and environmental protection to oversee the rooms and other facilities. Throughout the inspections a total of 48 potential risks that could affect the safety of the
management of work safety and environmental protection throughout the entire company. In accordance with laws pipeline such as pressure issues were identified. These risks were promptly categorized and rectified to ensure the
and regulations such as the Work Safety Law and the Basic Norms for Work Safety Standardization of Enterprises the safe and smooth operation of the natural gas pipeline. This activity further enhances the Company's commitment to
Company has formulated the Compilation of Work Safety Management Systems which covers various aspects such as "Gas Supply to Northern Henan Venturing Far and Wide" and establishes a solid safety barrier for the Company's
safety inspections risk management emergency safety and workplace accidents. high-quality development.Work safety measures: Occupational Health
Employee health is not only crucial to the operation of the Company but also to the personal happiness of individuals and
Implementing overall responsibility for work safety among all employees
their families. The Company earnestly implements the requirements of laws and regulations such as the Occupational
Establishing a work safety responsibility system setting work safety objectives and having all Disease Prevention and Control Law the Regulations on Occupational Health Management in the Workplace and the
employees sign work safety responsibility agreements Measures for the Supervision and Administration of Employers' Occupational Health Surveillance. The Company adheres
Establishing and improving work safety regulations and operating procedures to the principle of "prevention first combining prevention and control" and the principle of "classified management
comprehensive governance". It comprehensively promotes the prevention and control of occupational diseases and
Developing and implementing work safety regulations and operating procedures based on the ensures the physical health of employees.characteristics of processes equipment and positions
Implementing a dual prevention system for risk classification and control and hidden danger Distribution
investigation and governance Based on the production reality and job characteristics standards of protective for the distribution of labor protection appliances are established
Establishing a list of risk sources and implementing risk classification and control measures; conducting appliances and labor protection appliances are distributed regularly.hidden danger investigation and governance through daily inspections and monthly inspections
Low-noise equipment is used to replace high-noise equipment and
Developing and implementing emergency response plans for production safety accidents shock absorption and noise reduction measures are implemented.Developing emergency response plans for production safety accidents and organizing drills according to GB/T 45001-2020/ Production Closed corridors are used for material transportation and dust facility from material discharge points is collected and controlled with
requirements ISO 45001:2018 renovation properly equipped bag dust collectors. Additionally the workshop
Occupational floors are uniformly treated with floor coatings that are slip-
Conducting informatization construction for work safety Health and Safety resistant pressure-resistant wear-resistant and impact-resistant.Establishing and utilizing an informatization platform for work safety Management
System Regular physical Cooperation is established with qualified hospitals to organize
Strengthening work safety education and training examinations annual occupational health examinations for employees in
for employees hazardous positions.Developing and implementing annual work safety education and training plans
Ensuring investment in work safety
Occupational Experts from occupational disease prevention and control
Allocating funds as required for necessary work safety conditions and extracting and utilizing work institutes are invited to provide occupational health education and health lectures training for employees.safety expenses
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The Company and its subsidiaries including Ancai Photovoltaic New Materials Jiaozuo Ancai Xuchang Ancai Ancai Social Responsibility and Public Welfare
Photothermal Technology Pharmaceutical Glass Project Department and Xinhe Industry have obtained the GB/T 45001-
2020/ISO 45001:2018 certification for occupational health and safety management systems. During the reporting period While achieving stable development the Company actively responds to national and government calls practices rural
the Company purchased work-related injury insurance worth RMB 1.4501 million for all employees and work safety liability revitalization and proactively engages in public welfare activities such as providing medical assistance supporting
insurance worth RMB 10800 for employees in special positions. No occupational disease hazards to employees occurred. education and aiding the needy. The Company actively fulfills its social responsibilities and brings warmth and assistance
to vulnerable groups.In 2024 the Company directly added more than 80 new labor jobs in the surrounding area and indirectly generated
employment opportunities for over 150 people thus accelerating the pace of rural prosperity in the Company's vicinity.During the reporting period the Company spent approximately RMB 137 million on local logistics and transportation
services and around RMB 98 million on purchasing wood products and packaging materials. Through these actions the
Company promoted the development of local rural industries and achieved mutually beneficial outcomes. The Company
also connected with assistance villages and provided care and support for families in need during the Double Ninth
Festival and Spring Festival. Additionally the Company ensured timely and full payment of employment security funds
for disabled individuals to support their employment opportunities. The Company organized various volunteer services
accumulating a total of 120 volunteer attendances in activities such as green and low-carbon initiatives promoting
civilized transportation city cleaning and voluntary blood donations. Through these practical actions the Company
fulfilled its social responsibilities. Jiaozuo Ancai actively established a collaborative relationship with Shangtun Village in
Boai City - "Village-Enterprise Co-construction". During festivals like the Spring Festival "99" Public Welfare Day and the
Double Ninth Festival the Company conducted activities to bring warmth to the village through visits targeted donations
and themed party activities actively fostering harmonious relationships between the village and the enterprise. Ancai
Photovoltaic New Materials adhered to the philosophy of "Caring for the Rural Pride in Assisting Agriculture". The
Company purchased over 14300 catties of vegetables from Gaobeihe Village in Longquan Town Long'an District
effectively solving the problem of vegetable oversupply for local farmers. Furthermore a cooperation agreement
was signed with Maofeng Planting Professional Cooperative in Gaobeihe Village Long'an District to jointly promote
Occupational Health and Safety Management System Certificate agricultural development.Case Activity of Assisting Students in Autumn
The Activity of Assisting Students in Autumn was conducted. Research was conducted on families of employees
facing difficulties to gain a deep understanding of the challenges and needs their children face in terms of education
and employment. Assistance was provided for students through ideological education scholarships and skill
training. Employment assistance was given to university graduates encouraging innovation and entrepreneurship.With a pragmatic approach support was provided to help children from families facing difficulties successfully
complete their studies and achieve employment as soon as possible.Case Voluntary Blood Donation Service Activity
In June 2024 on the occasion of the 21st World Blood Donor Day an activity with the theme "Illuminate Life through
Blood Donation" was organized. Volunteers actively participated demonstrating the spirit of volunteer service
through their practical actions of "dedication friendship mutual assistance and progress".At the event site under the professional guidance of medical personnel volunteers successfully completed the
blood donation process. They used their warm blood to convey hope and continued life with love. This activity
showcased the high sense of social responsibility and dedication to society among the Company's employees.Ancai Energy Conducts the 22nd Occupational Disease Ancai Photothermal Technology Conducts Employee Mental
Prevention and Control Law Promotion Week Activity Health Intervention Training Voluntary Blood Donation Service Activity
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Appendices Reader Feedback Form
Sustainability Report Index Table Reader Feedback Form for Environmental Social and Governance Report 2024
Thank you very much for reading this Report! Please provide us with your valuable feedback or suggestions for this
Report to help us improve future reports and better meet your reading needs.Guidelines No. 14 of the Shanghai Stock
Report Contents Exchange for Self-regulation of Listed GRI Standards
Companies - Sustainability Report (Trial) 1. What is your identity
About This Report 2-2 2-3 2-6 □ Government Agency □ Media/Public □ Employee □ Shareholder □ Business Partner
□ Customer □ Social Organization □ Regulatory Authority
Address by Chairman of the Board 2-11
□ Other (please specify)
About Ancai Hi-Tech 2-1
Introduction to
Ancai High-Tech
ESG management Stakeholder communication 2-29 3-1 3-2 2. What information would you like to learn from this Report
Corporate Due diligence 2-9 2-10 2-12 □ Company introduction □ Financial Performance-related content □ Communication with stakeholdersgovernance
Corporate □ Work safety □ Content related to business partners □ Employment and working environment content
Governance and Anti-commercial bribery and anti-
Party Building Business ethics corruption anti-unfair competition 205-2 □ Energy conservation and emission reduction □ Charitable donations □ Response to climate change
Leadership
Party building □ Other (please specify)
leadership
Innovation-driven Innovation-driven anti-unfair 206-1 3. Do you think if the content and layout of the report are helpful in finding relevant informationdevelopment competition
□ Yes □ No
Product
Innovation and Product Product and service safety and
Supply Chain responsibility quality data security and customer 417-1 418-1
Management privacy protection 4. What content in this Report satisfies you the most
Supply chain Supply chain security equal □ Introduction to Ancai High-Tech □ Corporate Governance □ Business Ethics □ Party Building Leadership
security treatment of SMEs 2-6
□ Innovation-driven Development □ Product Responsibility □ Supply Chain Security □ Environmental Management
Environmental
management Environmental compliance □ Energy Utilization □ Water Utilization □ Waste and Pollutant Management □ Response to Climate Change
system management □ Circular Economy □ Employee Rights □ Talent Development □ Occupational Health and Safety □ Social Welfare
Energy utilization Energy utilization 302-1 302-4
Environmental
Management Water Utilization Water Utilization 303-1 303-2 5. What content needs further improvement in this Reportand
Sustainability □ Introduction to Ancai High-Tech □ Corporate Governance □ Business Ethics □ Party Building Leadership
Waste and pollutant Pollutant emissions and waste
management disposal 306-1 306-2 306-3 □ Innovation-driven Development □ Product Responsibility □ Supply Chain Security □ Environmental Management
Response to climate □ Energy Utilization □ Water Utilization □ Waste and Pollutant Management □ Response to Climate Change
change Response to climate change
□ Circular Economy □ Employee Rights □ Talent Development □ Occupational Health and Safety □ Social Welfare
Employee rights and
benefits 2-7 401-2 405-1
Talent training and
Employee Care development Employees 404-1 6. Your comments or suggestions for this Report.and Social
Welfare Occupational health 403-1 403-5 403-9 Your Information: _____________________________________________ Name: _____________________________________________and work safety
Company: _____________________________________________ Position: _____________________________________________
Social responsibility
and public welfare Social contribution 203-1 Tel.: _____________________________________________ E-mail: _____________________________________________
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