2025 Environmental Socialand Governance ReportCONTENTS

About The Report 04

About Nanshan Aluminium 06

Statement from the Chairman 12

Topic: Building a Recycled Aluminium Industry Ecosystem to

Empower a Greenand Low-Carbon Future 14

Appendix 146

01 Governing Enterprise with Wisdom Harmonizing with Nature Forging Brilliance through Sustainable Development 04 Co-creating a New Chapter for the Ecosystem

ESG Management System 24 Responding Climate Change 72

Stakeholder Engagement 26 Environmental Management 88

ESG Double Materiality Assessment 28 Protecting Nature 96

ESG Impact Risk and Opportunity Management 30 Circular Economy 106

Commitment to UN SDGs 32

02 Compliance as Foundation People-Oriented for Sustainable Growth 05 Building an Inclusive Workplace

Corporate Governance 36 Eager to Attract Talent 116

Ethical Operations 39 Employee Care 122

Risk Management 42 Safety Production 125

Information Security & Privacy Protection 43

03 Craftsmanship-Driven Quality 06 Symbiotic Supply Chain Manufacturing and Innovation-Powered Development Building a New Ecosystem Together

Product Quality 50 Responsible Supply Chain 136

Innovation and R&D 56 Giving Back to Society 144

Customer Service 6704 Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report About The Report 05

About The Report

Report Description Data Source & Reliability Assurance

This Report is the full version of the 16th Environmental Social and Governance Report (hereinafter referred to as "ESG Report" The information and data disclosed in this Report are from statistical reports and official documents of the Company and

or "this Report") issued by Shandong Nanshan Aluminium Co. Ltd.1 which is an annual report focusing on the management have been audited by relevant departments. The Company guarantees that this Report does not involve any false records and

practice and performance of the Company in respect of environment social and governance (ESG). misleading statements and will be liable for the authenticity accuracy and integrity of the contents. This Report is available

in both Simplified Chinese and English versions for readers to consult. In instances where there may be confusion or differ-

ences in interpretation between the two texts the Simplified Chinese version shall prevail.Organisational Scope of the Report

The Report is about Shandong Nanshan Aluminium Co. Ltd. and its subsidiaries including Longkou Donghai Alumina Co. Ltd.(hereafter referred to as "Alumina Company") Nanshan Aluminium Branch of Shandong Nanshan Aluminium Co. Ltd. (hereaf- Report Preparation Process

ter referred to as "Electrolytic Aluminium Company") Longkou Nanshan Aluminium Rolling New Material Co. Ltd. (hereafter The preparation process of this Report covers establishment of work team data collection interviews with and question-

referred to as "Aluminium Rolling Company") Medium-thick Plate Branch of Shandong Nanshan Aluminium Co. Ltd. (hereaf- naire inquiry on stakeholders framework determination report preparation report design review by department and senior

ter referred to as "Medium-thick Plate Company") Yantai Donghai Aluminium Foil Co. Ltd. (hereafter referred to as "Alumin- management etc.ium Foil Company") Aluminium Profile Plant of Nanshan Aluminium (hereafter referred to as "Aluminium Profile Plant")

Yantai Nanshan Aluminium New Material Co. Ltd. (hereafter referred to as "Aluminium New Material Company") Longkou

Nanshan Recycled Aluminium Co. Ltd. (hereafter referred to as "Recycled Aluminium Company") Donghai Thermal Power Confirmation and Approval

Plant American factory and Indonesian factory. For details on the statistic scope of environmental data please refer to the

footnotes in each chapter. In this Report "we" "the Company" and "Nanshan Aluminium" all refer to "Shandong Nanshan This Report was reviewed and approved by the Board of Directors and senior leadership of the Company on March 25th 2026.Aluminium Co. Ltd.". Unless otherwise specified all currencies mentioned in this Report refer to RMB.Report Time Horizon Report Acquisition

This Report may be accessed and downloaded from the Company's website at www.600219.com.cn.The report covers the period from January 1st 2025 to December 31st 2025 (hereinafter referred to as the "report period")

some dating back to previous years and covering the first quarter of 2026. For further inquiries or any comments and suggestions regarding this Report please contact the Company through the following

channels:

Basis of Preparation Email Address: 600219@nanshan.com.cn

Prepared with reference to the Guidelines No. 14 of Shanghai Stock Exchange for Self-regulation of Listed Companies - Sustain- Tel.: 0535-8666352

ability Report (Trial) and other relevant documents this Report also considers the United Nations Sustainable Development

Address: Nanshan Village Dongjiang Town Longkou Yantai City Shandong Province

Goals (UN SDGs) Morgan Stanley Capital International Environmental Social and Governance rating (MSCI ESG rating) and

other rating indicators.

1: In 2025 in accordance with the Guidelines No. 14 of Shanghai Stock Exchange for Self-regulation of Listed Companies-Sustainability

Report (Trial) we renamed this Report to the "Environmental Social and Governance Report" (ESG Report). Prior to 2024 we had already

published ESG disclosures in the form of Environmental Social and Governance Reports Social Responsibility Reports or Sustainabil-

ity Reports. The 2025 edition thus marks the 16th ESG Report released by Nanshan Aluminium since its listing.06 Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report About Nanshan Aluminium 07

About Nanshan Aluminium Industrial Development

Nanshan Aluminium adheres to the development path of "premium positioning + integrated industrial chain" continuously

deepening industrial synergy and value extension. The Company is dedicated to unlocking high-quality production capacity

for premium products such as automotive and aviation sheets/plates while actively advancing the layout and construction

Since its establishment in 1993 Nanshan Aluminium has built a complete industrial chain spanning "thermal power - alumina of alumina electrolytic aluminium and downstream projects in Indonesia. These efforts enhance the resilience of the global

- electrolytic aluminium - aluminium processing - recycled aluminium" and has become a leading manufacturer of aluminium supply chain and drive steady progress in high-end manufacturing operations.products. The Company adheres to a development strategy driven by innovation and high-end manufacturing. By deepen-

ing collabouration across the entire industry chain and expanding its overseas production capacity layout it has achieved a

leap from exporting single products to implementing systematic overseas industrial projects. Through long-term develop-

ment the Company has established a leading position in high value-added aluminium products sectors such as aviation and

automotive. Leveraging the synergistic advancement of domestic and international operations it continues to demonstrate

robust developmental resilience and significant long-term growth value.Industrial Aluminium Profile Rail Traffic Container

Recycled Aluminium

Civil Building Materials System Doors & Windows

Section

Aviation Profiles Aerospace Parts

Electric Power Alumina Electrolytic Aluminium Melting & Casting

Auto Sheet Can Stock

Deep-processing

Cold Rolling Aviation Sheet

Flat-rolled Product Hot Rolling

Foil Rolling Aseptic Packaging

Aviation Plate Battery Foil

Nanshan Aluminium Industry Chain Schematic Diagram08 Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report About Nanshan Aluminium 09

In 2025 under the strategic guidance of "Full-Chain Control Innovation Breakthrough and Green Foundation" Nanshan Nanshan Aluminium has established a production site layout covering the entire industry chain. Its main business entities

Aluminium achieved steady growth in operating performance. The Company has deepened its focus on the domestic high-end include companies engaged in thermal power alumina electrolytic aluminium aluminium rolling medium and thick plates

aluminium processing market. Sales and gross profit contributions from high value-added products such as automobile sheets extrusion profiles and recycled aluminium. The Company maintains branches in multiple core cities across China and has

and aviation sheets/plates have continued to increase while the construction of production capacity for Phase III automobile established overseas branches in the United States Australia Singapore Germany and Indonesia forming a service network

sheets and other projects has been steadily advanced. Overseas the Company has deepened its industrial chain layout by that supports global operations.leveraging its Indonesia base. The third and fourth phases of the alumina project commenced production during the Report-

ing Period successfully releasing an annual alumina capacity of 4 million metric tonnes. Furthermore the Company is actively Looking ahead the Company will consolidate its domestic industrial chain advantages while actively advancing capacity

advancing downstream aluminium electrolysis projects to construct a more resilient integrated industrial structure in the future. layout in overseas markets particularly in Indonesia. It will accelerate the extension and integration of the industrial chain

to build a dual-circulation pattern of coordinated development between domestic and international markets injecting new

Our Premium Aluminium Products momentum into the Company's sustainable growth.To align with the rapid market pace of the new energy vehicle industry the Company continues to strengthen and optimize its core automo- Corporate Strategy

bile sheet business. It is continuously improving its capacity layout and product portfolio while reinforcing full-chain guarantee capabili-

ties spanning material R&D part certification and mass supply. Leveraging the synergistic advantages of the entire industry chain and a

Automotive mature manufacturing system we precisely capture the lightweighting needs of mainstream domestic and international automakers. This Nanshan Aluminium has established a sustainable development strategy centered on high-end positioning green transfor-

Sheet has enabled us to establish a flexible production system capable of rapidly responding to customers' differentiated and customized require- mation and global expansion. On one hand we consolidate our foundational strength in traditional can stock materials while

ments while steadily expanding market coverage and deepening client partnerships. prioritizing the expansion into high-end markets such as automotive lightweighting and aerospace aluminium applications

In response to the core demands of the national strategy for aviation power the Company has deeply integrated core resources including to build a diversified high value-added product matrix. On the other hand we deeply integrate green concepts throughout

technological R&D certifications and production capacity assurance. By aligning with international regulations the Company has forged

high-end quality and core competitiveness for its aviation sheet & plate products establishing a benchmark for domestic localization substi- the industrial chain; by strengthening strategic collabouration with downstream partners we continuously drive the indus-

Aviation tution in aviation aluminium materials. In the future the Company will adhere to the development path of "technology as the foundation try toward low-carbon and efficient transformation.Sheets & quality as the safeguard and innovation as the enabler". It will continue to deepen its core technological breakthroughs in aviation alumin-

Plates ium alloy materials keep pace with the high-performance development trends of the aviation industry strengthen product adaptabil-ity and supply capabilities and inject strong momentum into the autonomous controllability and high-quality development of China's Furthermore the Company has firmly advanced its overseas resource and capacity layout establishing key growth drivers

aviation industry. through projects such as alumina and electrolytic aluminium in Indonesia. This strategy builds an industrial landscape with

Deeply integrated into the core tier of global mainstream packaging supply chains we have established new competitive advantages synergies between domestic and international operations and sustained competitiveness driving high-quality and

through product stability supply reliability and service precision continuously leading the industry toward upgrades in high quality green

development and high efficiency. In the future the Company will continue to adhere to a customer-centric and market-oriented approach sustainable long-term development.Can Body &

End stock continuously optimize its product structure deepen cooperation with high-end clients and refine full-chain supporting services to achieve a simultaneous leap in both market coverage breadth and the depth of client partnerships.In an era where green development and the value of resource circulation are increasingly prominent the Company focuses on the core

directions of high-value and low-carbon transformation for recycled aluminium products. By forging strong partnerships with upstream

and downstream entities we have formed a critical synergy to build a closed-loop system for the closed-loop recycling system for scrap

Recycled aluminium. This approach achieves precise complementarity between technical expertise and industrial resources driving a positive ecolog-

Aluminium ical cycle within the aluminium industry. In the future the Company will continue to strengthen R&D on recycled aluminium technology

Products expand recycling channels and improve resource circular efficiency. We are dedicated to establishing a green benchmark for the recycled aluminium industry actively fulfilling our responsibility for green development and achieving synergistic win-win outcomes between

ecological value and industrial value.Leveraging its complete industrial chain the Company focuses on core customer requirements and differentiated missions. It empha-

sizes a win-win logic centered on stable supply and precise end-to-end delivery. Through the continuous provision of customized

Aluminium services in specialized sectors the Company achieves efficient aggregation of product market recognition and share. After years of

foil brand value accumulation and with a strong industry reputation the Company has established long-term and stable cooperative ties

products with well-known domestic and international food enterprises and battery manufacturers.Benefiting from domestic infrastructure investment and the development of sectors such as automobiles rail transit and consumer

electronics appliances the application scope of industrial profiles continues to expand. The demand for medium- and high-strength

aluminium profiles demonstrates a positive growth trend. The Company will continue to leverage its container and photovoltaic

Industrial product foundations while prioritizing major transportation sectors such as aviation for expansion. By continuously harnessing

Profiles resource integration advantages the Company will advance the high-end development of its industrial structure accelerate indus-trial transformation and develop mid-to-high-end aluminium profile products tailored for high-end manufacturing sectors includ-

ing aviation high-speed rail and automobiles.In recent years due to the excellent characteristics of aluminium building materials such as lightweight properties corrosion resist-

ance fire resistance moisture resistance sound insulation and thermal insulation the market continues to maintain a certain demand

for them. As a well-known building materials enterprise the Company leverages its comprehensive equipment configuration excel-

lent R&D team and cost advantages across the entire industry chain to actively expand into the home decoration retail and system

Building window and door markets earning recognition and preference from high-quality downstream clients. In the future the Company

Profiles will continue to stabilize its engineering market while accelerating development in the retail and system door and window markets.It will continuously optimize its sales structure to gradually achieve the transformation of high value-added products towards termi-

nalization and finished product status.While consolidating its core competitive advantages in the domestic market the Company leverages its long-term strategic perspec-

tive and industrial research experience to actively integrate into the global industrial division of labour system. Anchored by its Indone-

sia base the Company integrates high-quality overseas resources and efficient production capacity injecting diversified insights and

Alumina wisdom into the Company's global industrial landscape. By building consensus through internal and external collabouration exert-

products ing efforts in both directions and advancing together we continuously expand our growth potential. We proceed steadily and proac-tively at every development milestone laying a solid foundation for the Company's sustainable development. During the Reporting

Period all of Indonesia's 4 million metric tonnes of alumina production capacity came into operation.10 Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report About Nanshan Aluminium 11

Recognition

In 2025 Nanshan Aluminium drove innovation to deeply explore green transformation and sustainable development pathways

in the aluminium industry. Through the systematic construction of green operations and governance mechanisms the Company

effectively fulfilled its ESG responsibilities and its exceptional value has earned high praise from all sectors of society.Best Practice Cases for the Board of Best and Excellent Practices for

Directors and Sustainable 5A-level evaluation of the Company Annual Report Performance

Development Secretary's performance Briefing Sessions

China Association of China Association of China Association of

Listed Companies Listed Companies Listed Companies China Association of Listed Companies China Association of Listed Companies "5A-Level Performance Evaluation for

"2025 Best Practice Cases for Boards of "2025 Best Practice Cases for Sustainable Board Secretaries" by the Association of

Directors of Listed Companies" Development of Listed Companies" Listed Companies in China

Grade A in Information 2025 Outstanding Export Best Board Secretary Award for Listed

Disclosure Reputation Listed Company Award Companies on the Main Board

Shanghai Stock Exchange Daily Economic News Daily Economic News

2025 Yantai Municipal Premium Brand Title for Alumina

(Basic Level) Intelligent Factory Yantai Doubling Plan Award Products Daily Economic News "Best Board Secretary of Securities Daily "Golden Horse Industry

Main Board Listed Company Award" Leading Enterprise Award"

Yantai Municipal Bureau of Yantai Municipal Party China Nonferrous Metals

Industry and Information Technology Committee and Municipal Government Industry Association

Growth Value Golden Cow Golden Horse Industry Leading 2025 China Listed Companies

Award Enterprise Award Yinghua Award

China Securities Journal Securities Daily China Fund News

Daily Economic News "2025 Outstanding Export China Fund News "2025 China Listed

Top 500 Chinese Enterprises

Reputation Listed Company Award" Companies Yinghua Awards"

Fortune Magazine

2025 Key Honors and Recognitions for Nanshan Aluminium12 Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report Statement from the Chairman 13

Enhance the governance system to lead sustainable value creation:

Statement from the Chairman We deeply integrate the concept of sustainable development into the Company's governance. During the Reporting Period we

further refined the three-tier governance structure comprising the Board of Directors the Sustainability (ESG) Committee and the

ESG Working Groups to ensure the effective implementation of our ESG strategy. Through a systematic double materiality assess-

ment we identified 24 key sustainability issues and integrated ESG performance into executive evaluations to promote the alignment

of responsibility and value. Our efforts have received widespread recognition from the capital markets earning multiple authori-

2025 marks the concluding year of China's 14th Five-Year Over the past year we have made solid progress in our tative honors including the China Association of Listed Companies "Best Practice Case for Board Governance" "Best Practice Case

Plan and a year of accelerated deepening in global green overseas expansion. As a pivotal component of our global for Sustainable Development" and Grade A in SSE Information Disclosure Assessment .transformation and industrial chain restructuring. At strategy the Indonesia site has successfully commis-

Nanshan Aluminium facing a complex and volatile exter- sioned its 4 million metric ton alumina capacity. Supporting Upholding craftsmanship and quality-driven manufacturing to drive breakthroughs in high-end innovation:

nal environment and industry challenges we consistently projects including aluminium smelting and sodium hydrox-

adhere to the development strategy of "innovation-driven ide production are advancing steadily establishing a robust We regard quality as our lifeblood and leverage innovation as our engine. The Company continues to strengthen quality manage-

growth high-end manufacturing and intensive process- pattern characterized by "internal-external linkage and ment across the entire product lifecycle. Multiple entities under its umbrella have obtained more than 20 international authorita-

ing". Guided by the annual priorities of "full-chain control mutual support". At the same time we work to achieve tive certifications including dual certification for ASI Performance and Chain of Custody IATF 16949 and AS 9100. We maintained

breakthrough through innovation and green founda- shared growth with our operating locations. Through imple- high-intensity R&D investment with annual R&D expenses reaching 1.311 billion yuan accounting for 3.79% of operating revenue.tion" we have achieved a systematic enhancement of our menting localized recruitment and training and investing in We secured 29 newly authorized patents and led or participated in the revision of 23 national and industrial standards. In the field

sustainable development capabilities. We not only consol- community infrastructure we actively fulfill our corporate of aviation materials our collabouration with international clients such as Airbus continues to deepen. In the automotive light-

idated our leading position in high value-added sectors social responsibilities. We aim to establish the Indonesia site weighting sector qualification work by multiple automakers has achieved breakthroughs consolidating our market leadership

such as aviation and automotive but also took solid steps as a sustainable development model that integrates indus- through innovative capabilities.in green low-carbon transformation and global layout trial cooperation technology sharing and mutual benefits Focusing on green transformation to establish a new benchmark for the secondary aluminium industry ecosystem:

delivering solid high-quality development results. for the community thereby injecting long-term momentum

into local economic and social development. In 2025 Nanshan Aluminium will place the secondary aluminium industry ecosystem at the core of its green transformation. We

have established an annual capacity of 100000 tonnes for closed-loop high-grade recycling utilization. The total volume of scrap

aluminium processed throughout the year exceeded the target with a comprehensive processing ratio reaching 46%. By overcoming

the high-grade recycling technology we successfully applied recycled aluminium to high-end fields such as automobile sheets and

Deepen global layout and build a more resilient industrial innovated a short-process "direct supply of molten aluminium" reducing carbon emissions per unit product by approximately 15%.structure: Based on this we have formulated a clear plan to actively transition from an industry practitioner to a standard setter dedicated to

We firmly advance the globalization strategy of "inernal-exter- contributing the benchmarking "Nanshan Solution" for carbon neutrality in the aluminium industry.nal linkage and mutual support". In China we continue to Upholding social responsibility and solidifying the foundation of people-centric development:

deepen our presence in the high-end aluminium process-

ing market. Sales and gross profit contributions from We firmly believe that talent is the Company's most valuable asset. The Company continues to refine its compensation and benefits

high value-added products such as automobile sheets system and employee care framework. It places high importance on occupational health and safety striving to provide a safe

and aviation sheets/plates have increased significantly. equal and development-oriented working environment for every employee. At the same time we actively fulfill our corporate

Overseas the Indonesia site has increasingly emerged as a responsibilities by giving back to society's trust and support through green operations and community co-construction.strategic pivot. The expansion project for annual alumina

Looking ahead to 2026 Nanshan Aluminium will stand at a new starting point for development and chart the future with an

production of 4 million tonnes was successfully commis-

elevated strategic vision. We will unswervingly deepen our core strategy of "innovation-driven growth high-end manufactur-

sioned within the year while the construction of Phase I

ing and intensive processing" internalizing green transformation and sustainable development as the fundamental driving

electrolytic aluminium is being actively advanced. These

force for the Company's growth. Guided by the "Dual Carbon" goals we will comprehensively promote the scaling and high-end

initiatives have established a more resilient integrated

development of the recycled aluminium industry ecosystem building a more resilient global resource circulation system. At the

global industrial structure for the Company and serve as a

same time we will continue to deepen industrial chain synergy and green operations at our Indonesia base establishing it as

key driver for sustained performance growth.a solid pillar of our global strategy to promote the internationalization of Chinese aluminium industry technology standards

and management models. We firmly believe that through continuous technological innovation deep industrial synergy and

responsible global operations Nanshan Aluminium will undoubtedly deliver long-term value to society create win-win oppor-

tunities for partners across the industry chain and make an indispensable contribution to the green low-carbon and high-qual-

ity development of the aluminium industry in China and globally.14 Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report Topic: Building a Recycled Aluminium Industry Ecosystem to Empower a Green and Low-Carbon Future 15

Topic:

Building a Recycled Aluminium Indus-

try Ecosystem to Empower a Green and

Low-Carbon Future

Under the continuous advancement of the "Dual Carbon" goals and the accelerated development of the circular economy

the recycled non-ferrous metal industry is seizing new opportunities for growth. As a recyclable metal material alumin-

ium features characteristics such as lightweight design high strength and corrosion resistance and is widely applied in

sectors including transportation construction packaging and electronic products. Recycling and reusing scrap alumin-

ium not only significantly reduces energy consumption and carbon emissions but also decreases reliance on primary

aluminium ore resources. This is an important pathway for promoting the green transformation of the aluminium indus-

try. Since 2019 Nanshan Aluminium has continuously deepened its commitment to the concept of a circular economy by

leveraging its comprehensive aluminium industry chain foundation and integrating recycled aluminium into the Compa-

ny's industrial development system. By promoting resource recycling and industrial chain synergy we continuously

enhance aluminium resource utilization efficiency to facilitate the industry's green low-carbon transformation. Driven

by the growing demand for new energy vehicles packaging materials and lightweight manufacturing global aluminium

consumption continues to expand accompanied by an increasing supply of recyclable scrap aluminium. Recycled alumin-

ium has gradually become an important pathway for the aluminium industry to achieve green transformation and sustain-

able development by reducing energy consumption and carbon emissions in the primary aluminium smelting process.16 Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report Topic: Building a Recycled Aluminium Industry Ecosystem to Empower a Green and Low-Carbon Future 17

Key Pathways for Green Transformation of

the Aluminium Industry

Furthermore according to industry research the cumulative reduction in carbon dioxide emissions from recycled alumin-

Transforming waste into treasure recycled aluminium with its characteristics of lightweight design low carbon emissions high ium production in China between 2020 and 2024 was approximately 570 million metric tonnes. Leveraging its outstanding

economic efficiency and stability injects new momentum into the sustainable development of the aluminium industry and has advantages in energy conservation and emission reduction recycled aluminium is becoming a key force driving the alumin-

become an indispensable green engine for achieving the "Dual Carbon" goals. Recycled aluminium is an aluminium material ium industry toward green and low-carbon development while also providing critical support for enterprises to build circu-

produced by collecting and reprocessing scrap aluminium products and is widely referred to as "urban mineral". Compared with lar recycling and low-carbon production systems.the production of primary aluminium the recycling process does not require energy-intensive electrolysis thereby significantly The production of recycled aluminium does not require the high-energy-consumption electrolysis process. Consequently

reducing energy consumption and carbon emissions. With significant advantages in energy conservation and emission reduction compared to primary aluminium recycled aluminium demonstrates significant advantages in energy consumption and carbon

as well as recyclability recycled aluminium has become an important pathway for promoting the green and low-carbon develop- emissions while also achieving notable results in resource conservation and environmental protection.ment of the aluminium industry. Compared with primary aluminium production recycled aluminium environmental benefits are

mainly reflected in the following aspects: Given aluminium's excellent recyclability recycled aluminium can theoretically undergo multiple recycling cycles without

significantly compromising material performance. With a recycling rate reaching 80% – 90% it is increasingly becoming a criti-

Carbon emissions Energy consumption cal source of low-carbon materials in sectors such as automotive manufacturing transportation and packaging. Currently

reduction reduction Recycling rate of the primary sources of recycled aluminium feedstock include scrap generated during production and processing end-of-life

automotive parts and post-consumer waste such as used aluminium cans. As the global scale of aluminium consumption

continues to expand and recyclable aluminium resources increase steadily recycled aluminium is gradually becoming a signif-

95% 70% 80–90% icant source of raw materials for the aluminium industry.

Beyond energy conservation and emission reduction recycled aluminium also holds significant value in enhancing industrial

efficiency and strengthening supply chain resilience. Recycled aluminium can substitute approximately 30% –40% of primary

aluminium demand helping to alleviate resource constraints and reduce energy costs while enhancing the supply chain's risk

resistance. Therefore recycled aluminium is not only an important pathway for achieving carbon emission reductions but

also a key pillar driving the green transformation of the aluminium industry promoting circular economic development and

reducing the consumption of natural resources.18 Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report Topic: Building a Recycled Aluminium Industry Ecosystem to Empower a Green and Low-Carbon Future 19

Continuously Promote the Construction of Meanwhile Nanshan Aluminium's Recycled Aluminium Company continued to optimize recycled aluminium remelting process. Through furnace type trials and production parameter optimization it improved waste aluminium remelting efficiency and

the Recycled Aluminium Industry reduced burn-off rates thereby further enhancing metal recovery efficiency. Additionally through slag pressing processes it recovered primary aluminium from aluminium slag further improving the utilization rate of waste aluminium resources.During the Reporting Period the Company processed a volume of scrap aluminium exceeding the annual target. Compared

to the 28% target set for 2024 the actual processing volume in 2025 increased significantly by 18 percentage points and the

Aligning with the trend of green transformation in the aluminium industry Nanshan Aluminium initiated the construction level of waste aluminium recycling has steadily improved year over year:

of recycled aluminium projects starting in 2019. The Company incorporated recycled aluminium business into its industrial

development layout and gradually established a production system covering waste aluminium collection pre-treatment and

recycling utilization. In accordance with the relevant policy requirements of the People's Republic of China's Implementa- Recycled Aluminium Company Targets

tion Plan for High-Quality Development of the Aluminium Industry and Implementation Plan for Carbon Peaking in the Indus-

trial Sector we continue to promote the resource recycling of recycled aluminium and the application of technology for keep

grading recovery utilization. We have established and continuously implemented a complete closed-loop system spanning

Approximately The ratio2 of comprehensive processing of pre-consumer

"alumina production – electrolytic aluminium – high-end manufacturing – recycled aluminium" significantly shortening the 100000 3

cycle for closed-loop reuse from new material delivery to waste recycling. tonnes of waste aluminium were processed

and post-consumer waste aluminium reached

achieving a completion rate of 104% 46%

Closed-loop of recycled aluminium in the industrial chain

Furthermore we focus on the "keep grading recovery 4 " model for recycled aluminium. This approach maximizes the reten-

Alumina Electrolytic tion of original material properties during the recycling process enabling recycled aluminium to be re-applied in high-end Aluminium wrought aluminium alloy products such as automobile plates and packaging materials. Consequently this achieves high-value

utilization of recycled resources. Leveraging the complete industrial chain in the same region we adopted short-process produc-

tion models such as "direct aluminium liquid supply" to reduce energy consumption from repeated remelting resulting in a

Recycled High-end carbon emission reduction of approximately 15% per unit of product compared to the industry average.Aluminium Manufacturing

Nanshan Aluminium's Commitment:

We actively participate in the formulation and revision of industry and national standards for recycled aluminium. We

are dedicated to establishing industry benchmarks and contributing our brand strength to the systematic construc-

tion of industrial standards as well as the upgrading and renewal of the industrial chain. We aim for "zero aluminium

waste outflow" by establishing a full lifecycle carbon footprint management system to respond to government and

development requirements fulfill social responsibilities and serve society and the environment.In terms of production system construction the Company has established a recycled aluminium production line gradually

forming a complete production system covering waste aluminium recycling pre-treatment remelting and circular utiliza-

tion. As of the end of the Reporting Period Nanshan Aluminium's capacity ceiling for recycled aluminium reached 100000

metric tonnes per year consistently ranking among the industry leaders for consecutive years. 2: The "Comprehensive Processing Ratio of Pre- and Post-Consumer Scrap Aluminium" refers to the proportion of comprehensive utili-

zation of pre-consumer scrap (scrap generated during production and processing) and post-consumer scrap (aluminium waste formed

Production Time Production Line Equipment / Major Raw Materials from the recycling of end products) in the recycled aluminium production process. This indicator reflects the enterprise's compre-hensive utilization level of waste aluminium resources from various sources and serves as a key metric for assessing its capability in

recycling waste aluminium.Dual-chamber furnace: Market-recycled used beverage cans self-generated scraps etc.

3: In accordance with the definition of ISO 14021 pre-consumer scrap aluminium refers to scrap generated during the manufacturing

Pre-treatment equipment

2023 process that has not been sold to consumers and is directly recycled and remelted within the facility. Post-consumer scrap aluminium

Decoater Kiln Equipment refers to waste from aluminium products discarded after consumer use.Side-fired furnace: Self-generated scraps such as scalping chips 4: "keep grading recovery" refers to the process in waste aluminium recovery and recycling where through refined sorting composi-

tion control and advanced melting technologies recycled aluminium maintains performance and quality levels as close as possible

Multi-chamber furnace: Process scraps from downstream can making color-coated to those of the raw materials. This enables circular utilization of the material in products of the same or higher grades thereby prevent-

2024

aluminium and self-generated process scraps. ing downgrading.20 Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report Topic: Building a Recycled Aluminium Industry Ecosystem to Empower a Green and Low-Carbon Future 21

Collabouration across the industrial chain

promotes low-carbon development

In promoting the development of its recycled aluminium business Nanshan Aluminium has continuously strengthened colla- We actively respond to the increasingly growing demand for recycled aluminium in the automotive industry. Nanshan Alumin-

bourative efforts with upstream and downstream enterprises across the industrial chain gradually building a circular industry ium has gradually established an industrial synergy model of "production – recycling – reuse" by promoting collabouration

system that covers raw material recovery recycling and product manufacturing. We continue to advance the construction of between recycled aluminium production and the downstream manufacturing processes of its customers. This model effectively

a waste aluminium resource recovery system from upstream sources by collabourating with customers and partners on scrap enhances resource utilization efficiency and strengthens our competitiveness within the global green supply chain system. In

recycling thereby continuously expanding the scale of waste aluminium recovery. addition Nanshan Aluminium's subsidiaries (Medium-thick Plate Company Aluminium Rolling Company and Yantai Donghai

During the Reporting Period the annual recovery of scrap aluminium by Nanshan Aluminium's Flat-rolled Product Division was as follows: Foil Company) have established a clear strategic plan for recycled aluminium development implementing phased measures

to enhance the capabilities of the recycled aluminium industry.Nanshan Aluminium believes:

Recycled aluminium is not only an inevitable choice for resource strategy but also a core lever for the Company to seize

Total amount of scrap aluminium recovered by the the high ground of green competition. Through a phased implementation across three stages the Company will achieve

Flat-rolled Product Division a leap from "follower" to "standard-setter" contributing the strength of a benchmark enterprise and brand to the carbon

neutrality goals of the aluminium industry.approximately 100000 metric tons

As a key component of "urban mineral" the development of the recycled aluminium industry is influenced by factors such as

the supply of waste aluminium resources the stability of raw material quality and sorting technologies. In the future Nanshan

Aluminium will continue to promote the circular utilization of aluminium resources and contribute to the green and low-car-

bon development of the aluminium industry through key initiatives such as strengthening industrial chain synergy improv-

In terms of downstream applications recycled aluminium materials have gradually been applied to product areas such as ing the recycling system and enhancing the technical level of cascading utilization of recycled aluminium.lightweight automotive components packaging materials and certain industrial materials. As of the end of the Reporting Grounded in the present and looking toward the future Nanshan Aluminium will remain true to its original aspiration. Uphold-

Period we have established long-term and stable cooperative relationships with partners including well-known domestic and ing the sustainable development philosophy of "Green Manufacturing for a Bright Corporate Future" the Company aims to

international original equipment manufacturers (OEMs) manufacturing clients and food and beverage enterprise clients. enhance environmental benefits and resource efficiency across multiple dimensions including raw material extraction produc-

As the automotive industry undergoes transformation towards lightweighting and low-carbon development the application tion processes downstream customers and end-user consumption. We are dedicated to achieving goals of emission reduc-

of recycled aluminium in automobile manufacturing continues to increase. Studies indicate that increasing the proportion tion in production waste resource utilization recycling and recovery thereby empowering green development throughout

of recycled aluminium in automotive production can significantly reduce the full lifecycle carbon emissions of vehicles. For the entire industry chain.example when the proportion of recycled aluminium in automotive materials reaches approximately 50% carbon emissions

can be reduced by about half compared to using primary aluminium while maintaining material performance and lightweight

advantages. Aluminium Products

During the Reporting Period we continue to advance the closed-loop recycling model for automobile body sheets:

Circular Economy

Product Waste Ecosystem for

Manufacturing Recycling Recycled Aluminum Industry

Recycled Aluminium Scrap Aluminium

Remanufac- Recycling

turingGoverning Enterprise with Wisdom

Forging Brilliance through

Sustainable Development

Nanshan Aluminium integrates the concept of sustainable development into all

aspects of corporate governance and business management continuously improving

our ESG management system. Through stakeholder engagement the Company

systematically identifies and manages ESG-related risks and opportunities laying a

solid foundation for its long-term stable development and guiding the Company

toward green low-carbon and sustainable growth.24 Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report Governing Enterprise with Wisdom Forging Brilliance through Sustainable Development 25

1.1 ESG Management System Nanshan Aluminium ESG Governance Structure

Quality Assurance

Nanshan Aluminium has established a three-tier ESG governance structure comprising the Board of Directors the Sustaina- Working Group

bility (ESG) Committee and the ESG Working Groups. The respective management responsibilities at each level are clearly

defined through the Sustainability (ESG) Committee Operating Guidelines.Supply Chain Technological

The ESG Committee is chaired by the Chairman of the Board with Vice-Chairpersons including Directors Senior Executives Resilience Innovation

and Heads of the Control Center comprising heads of various departments and subsidiaries bringing together professional Working Group Working Group

expertise across multiple domains to ensure the scientific rigor of the Company's sustainable development strategic decisions

and their effective implementation. The Company has established annual targets for each ESG issue and incorporated ESG-re-

lated performance metrics including environmental protection energy consumption and product quality into executive

compensation and performance evaluations.Business Ethics Safety &

The ESG Committee continuously monitors work progress through a semi-annual communication mechanism and submits Working Group Environmental Protection

major ESG matters to the Board of Directors for deliberation. Meanwhile the Company regularly invites third-party institu- Sustainability (ESG) Working Group

tions to conduct specialized training on ESG trends green products and climate response to enhance the team's professional Committee

capabilities and management standards.Nanshan Aluminium ESG Governance Structure Supply Chain Energy Conservation

Resilience & Emissions Reduction

Working Group Working Group

Labour Rights Protection Information Security

Board of Directors Sustainability (ESG) ESG Working Groups Working Group Working GroupCommittee

* As the highest authority on * To monitor ESG-related poli- * Nine specialized groups: Qua-

ESG matters it is responsible cies regulations standards lity Assurance Technologi-

for formulating reviewing trends and stakeholder de- cal Innovation Labour Rights

and approving ESG-related mand Protection Safety & Environ-

policies strategies and * To assesses material ESG mental Protection Energy

objectives issues and provides advisory Conservation & Emissions

recommendations to the Reduction Information Se-

Board for deliberation curity Supply Chain Resil-

* To oversee ESG implemen- ience Business Ethics Capital

tation strategic execution Market Engagement

and progress toward goals * Responsible for implementing

proposing improvements for the relevant resolutions of the

subsequent phases Committee regularly review-

ing and updating the me-

dium- and long-term planning

milestones for the sustainable

development of the manage-

ment system and effectively

implementing various imple-

mentation plan26 Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report Governing Enterprise with Wisdom Forging Brilliance through Sustainable Development 27

1.2 Stakeholder Engagement Stakeholders Focus Issues Communication Methods

* Science & Technology Innovation

* Industry-Academia-Research

* Industry Standard Setting

Cooperation

Nanshan Aluminium maintains active and effective communication with all stakeholders. In accordance with relevant policies Research Institution * Green & Low-Carbon Transition & Capacity planning

such as the Information Exchange Consultation and Communication Control Procedure the Company has established diver-

sified communication channels. Upholding the principles of openness and transparency we regularly disclose relevant infor- * Driving Economic Growth & Social Development

mation to all parties and promptly responds to the concerns of stakeholders. Meanwhile stakeholders may also proactively * Government & NGO * Social Contributions

Engagement

communicate with the Company through corresponding channels. * Pollutant & Waste Management

Society/Public * Public Complaint Email

* Biodiversity Conservation

* Staff Representative Meetings

Stakeholders Issues of Concerns for Stakeholders and Communication Methods * Employee Compensation & Benefits * Employee Training Programs

* Employee Development & Training * Employee Feedback

* Occupational Health & Safety Collection & Response

Stakeholders Issues of Concerns for Stakeholders Communication Methods Employees * Business Ethics & Anti-Corruption * Internal Whistleblowing

Channels

* Compliance Operations

* Business Ethics & Anti- Corruption * Information Reporting

* Fair Competition * Official Document Exchange

* Economic Growth & Social Development * Institutional Visits

Government / * Green & Low-Carbon Transition & Capacity Planning * Government Meetings

Regulatory Authorities * Environmental Compliance Management * Regular Corporate Disclosures

* Pollutant & Waste Management * Policy Briefing

* Biodiversity Protection

* Compliant Operations * Shareholders' Meeting

* Revenue Performance * Corporate Roadshows/

Reverse Roadshows

* Corporate Governance & Risk Management

* Periodic Reports &

* Business Ethics & Anti- Corruption Earnings Briefings

Investors/Shareholders * Stakeholder Engagement Product & Service Safety & * Investor Hotline & Email

Quality

* SSE (Shanghai Stock

* Technological Innovation Exchange) Interactive Platform

* R&D Capability Enhancement

* Equitable Procurement & Cooperation Mechanism

* Strengthening Supply Chain

* Industry Standards & Technical Cooperation

Management & Collaboration

* Supply Chain Management & Risk Control

Supplier * Supplier Support Program

* Sustainable Supply Chain

* Industry Engagement

* Technological Innovation

* Product & Service Safety & Quality * Customer Feedback Collection

* Data Security & Customer Privacy Protection * Customer Complaint

* Green & Low-Carbon Transition & Capacity Planning Resolution

Customer

* Renewable Energy * Customer Satisfaction Surveys

* Supply Chain Management Developments28 Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report Governing Enterprise with Wisdom Forging Brilliance through Sustainable Development 29

1.3 ESG Double Materiality Assessment 2025 Material Topics7

Topic Categories Topic Names Topic Categories Topic Names

Nanshan Aluminium conducts regular double materiality assessments on ESG topics in accordance with relevant requirements Compliance Operations Economic Growth & Social Development

and international standards including the Shanghai Stock Exchange's Self-Regulatory Guidelines for Listed Companies No.

5

14 — Sustainability Reporting (Trial) the Compilation Guide for Sustainability Reports and the Global Reporting Initiative's Fair Competition Social ContributionsSocial

GRI Standards 2021. The Board of Directors discusses and approves the annual assessment results. Corporate Revenue Performance Industry Standard Setting

The Company's process for determining the significance of topics is as follows: Governance Corporate Governance & Risk Management Supply Chain Management Development6

Business Ethics & Anti- Corruption Responding Climate Change

Nanshan Aluminium Materiality Issue Assessment Process Stakeholder Engagement Renewable Energy

Green & Low-Carbon Transition &

Identification of Material Issues Assessment and Prioritization of

Employee Compensation & Benefits

Capacity Planning

Material Issues

Employee Development & Training Environmental Compliance Management

Based on business operations and changes in EnvironmentalMaterial issues identified were prioritized

the internal and external environments while based on expert opinions peer experiences Social Occupational Health & Safety Pollutant & Waste Management

referencing regulatory requirements industry and feedback from management investors Technological Innovation Biodiversity Protection

standards and other relevant information and and employees.consulting with stakeholders for their recom- Product & Service Safety & Quality Resource Utilization

mendations potential material ESG issues are

identified. Data Security & Customer Privacy Protection Circular Economy

Nanshan Aluminium 2025 Materiality Issues Matrix

Dimensions of Materiality Assessment Topics with impact materiality but Topics with both financial

without financial materiality materiality and impact materiality

Product & Service Safety & Quality

Impact Materiality: Responding Climate Change

* Definition: The significance of a positive impact depends on its magnitude scope and likelihood; the

significance of a negative impact depends on its severity scope likelihood and irreversibility. Green & Low-Carbon Transition & Capacity Planning Environmental Compliance Management

* We established thresholds to assess the significance of impacts and prioritize significant issues.Compliance Operations Employee Compensation & Benefits

Occupational Health & Safety

Financial Materiality: Revenue Performance Circular Economy

Employee Development & Training

* Definition: The materiality of positive and negative financial impacts depends on the continuity of resource Fair Competition

utilization and the dependency on sustained production and operations. Technological Innovation

Renewable Energy

* We established thresholds to assess the significance of financial impacts and prioritize material issues. Business Ethics & Anti-

Corruption Industry Standard Setting

Resource Utilization

Stakeholder Engagement Data Security & Customer Privacy Protection

In 2025 based on survey results from internal and external stakeholders including investors customers suppliers employ- Economic Growth & Social Development

ees and regulatory bodies and considering industry characteristics development stages our business model and value Corporate Governance & Supply Chain Management Development

chain dynamics the Company identified 24 sustainability issues relevant to its operations. Among these addressing climate Risk Management

change product and service quality and safety and environmental compliance management are considered from a double Biodiversity Protection Pollutant & Waste Management

materiality perspective circular economy and technological innovation are considered from financial materiality perspective Topics without financial Social Contributions Topics with financial materiality

while green low-carbon transformation and capacity layout are considered from impact materiality perspective. For issues or impact materiality but without impact materiality

under financial materiality we analyze and disclose the core content in this Reporting across four key aspects: Governance Financial Materiality

Strategy Impact Risk and Opportunity Management Metrics and Targets.

5: Social contribution topics encompass rural revitalization and public welfare philanthropy.

6: Supply chain management encompasses both supply chain security and the equal treatment of small and medium-sized enterprises.

7: In accordance with the topic-setting recommendations in the Guidelines for Compiling Sustainability Reporting as the Company is

not involved in technology ethics there is no such materiality topic.Impact Materiality30 Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report Governing Enterprise with Wisdom Forging Brilliance through Sustainable Development 31

1.4 ESG Impact Risk and Opportunity Management

The Company integrates ESG Risk and opportunity management into its strategic decision-making and operational systems. ESG Risk and Opportunity Management Procedure

Through systematic identification assessment and dynamic monitoring it achieves synergistic growth between SDGs and

financial value. Based on the principle of double materiality (financial materiality and impact materiality) combined with indus- Review of Risks and Risk and Opportunity Risk and Opportunity

try characteristics policy directions and stakeholder demands we focus on high-priority issues such as climate change circular Opportunities checklists Analysis Management Evaluation

economy and data security. We quantitatively analyze the feasibility and extent of impact regarding ESG risks and opportu- * Analyze ESG risks and * Define company- spe- * Assess the likelihood

nities across short- medium- and long-term horizons to define risk thresholds and formulate targeted response strategies. opportunities based on cific risks and opportu- impact adaptability

domestic and interna- nities through industry and resilience of identi-

8Regarding internal management mechanisms the Company relies on the Risk and Opportunity Control Procedures to estab- tional policy trends and analysis and input from fied risks and oppor-

lish standardized processes that integrate ESG issues into daily operations and major decision-making. industry peer practices. stakeholders and exter- tunities to prioritize

* Engage in discussions nal experts. management strate-

with responsible depart- * Develop management gies.ments regarding the strategies and imple- * Conduct regular re-

identified ESG risks and mentation plans to ad- views to ensure align-

opportunities. dress these risks and ment with the compa-

opportunities. ny's current situation.

8: The management of ESG issues' impacts risks and opportunities is detailed in Chapter 1.4 "ESG Impacts Risks and Opportunities

Management" of the 2024 ESG Reporting.32 Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report Governing Enterprise with Wisdom Forging Brilliance through Sustainable Development 33

Nanshan Aluminium adheres to the coordinated development

Nanshan Aluminium is dedicated to integrating the UN SDGs of high-end manufacturing and globalization driving industrial

1.5 with the Company's business development and material issues chain upgrades and regional economic growth. Simultaneously

promoting corporate sustainable development through concrete it refines compensation and benefits employee training and

Commitment actions and contributing to the realization of global sustainable career development systems to foster the synergistic progress DECENT WORK AND development goals. ECONOMIC GROWTH of corporate development and employee growth.INDUSTRYINNOVATION

to UN SDGs AND INFRASTRUCTURE Nanshan Aluminium adheres to the strategy of "innova-

tion-driven high-end manufacturing and deep processing."

Relying on a three-tier innovation governance structure compris-

Nanshan Aluminium continues to implement The Law of the People's Republic of China

REDUCED ing the Board of Directors the Technical Innovation Working on Energy Conservation and ISO 50001 energy management system requirements. The INEOUALITIES Group and the Technology Management Department the

Company advances energy-saving technical upgrades optimizes the energy structure and Company continues to increase R&D investment to drive break-

manages green energy consumption. By utilizing recycled aluminium Nanshan Aluminium throughs in technologies related to high-end aluminium materi-

reduces high-energy-consumption electrolysis processes and improves energy efficiency. als keep grading recovery utilization of recycled aluminium

and green manufacturing. By continuously implementing inter-

nal policies such as the Shandong Nanshan Aluminium Co. Ltd.Quality Management and Technical Innovation Project Incentive

Nanshan Aluminium continues to advance water conservation and SUSTAINABLE CITIES AFFORDABLE AND AND COMMUNITIES Measures we stimulate employees to develop new products.water resource recycling. Through measures such as concentrated water CLEAN ENERGY

recovery condensate recovery and recycled water reuse the Company

enhances water utilization efficiency. Relying on its environmental Nanshan Aluminium emphasizes diversity inclusion and

management system the Company strengthens wastewater manage- equitable development. In employee management career

ment promoting water conservation and compliant discharge. During development and stakeholder engagement the Company

the Reporting Period Nanshan Aluminium received an A- rating in the adheres to principles of equality transparency and accessibil-

CLEAN WATER AND

CDP Water Questionnaire. ity. Furthermore institutionalized communication mechanisms SANITATION

are established to ensure that diverse groups can reasonably

RESPONSIBLE express their demands and receive responses.CONSUMPTION

Nanshan Aluminium fully implements the principle of Equality across all AND PRODUCTION

stages of recruitment hiring compensation determination and promotion Nanshan Aluminium regards recycled aluminium as a critical component

development. The Company does not discriminate based on factors such of "urban mines." The Company invested in establishing a recycled

as religious belief gender or ethnicity. It has established internal policies GENDER

EQUALITY aluminium enterprise to prioritize the advancement of keep grading recov-

including the Protection of Female Employees Management Procedure ery comprehensive utilization projects for recycled aluminium. This initia-

and eliminates discriminatory factors related to gender in compensation tive promotes waste aluminium collection recycling and utilization and

formulation. This ensures that every employee receives fair and reasona- CLIMATE

ble returns and shares in the results of enterprise development. ACTION

the construction of a closed-loop industry chain thereby enhancing the

QUALITY efficiency of resource circular use. Simultaneously through industrial devel-

EDUCATION opment community co-construction and localized overseas operations

GOOD HEALTH AND

WELL-BEING Nanshan Aluminium actively serves regional sustainable development.Nanshan Aluminium relies on a systematic training mechanism and an internal talent

development system to conduct regular training sessions covering themes such as

quality management cybersecurity ESG and vocational skills. These initiatives Nanshan Aluminium adheres to a responsible marketing philosophy. By integrating market

continuously enhance employees' professional capabilities and management levels environment changes and the actual conditions of various products we regularly formulate

supporting their growth and long-term development. and continuously optimize annual marketing plans and policies that align with the Company's

development. By continuously implementing internal policies such as the Integrity Management

Procedures Marketing Management System and Salesperson Code of Conduct we standard-

ize the conduct of relevant business personnel and require sales personnel to strictly adhere

to the signed Integrity Agreement during business cooperation.Nanshan Aluminium attaches great importance to employee occupational health and safety. The Company continuously Nanshan Aluminium has integrated climate change into its ESG management system and risk

improves its occupational health and safety management system regularly conducts occupational health examinations management mechanism. Guided by internal policies such as the Risk and Opportunity Control

safety training and emergency drills and promotes accountability through assessments related to environment health and Procedures the Company continuously identifies assesses and addresses climate-related risks

safety thereby providing employees with a safe and healthy working environment. and opportunities. Through measures including energy conservation consumption reduction

utilization of recycled aluminium and development of low-carbon products Nanshan Alumin-

ium is promoting a green and low-carbon transformation.Compliance as Foundation

for Sustainable Growth

Nanshan Aluminium regards business ethics and compliant operations as a critical

foundation for corporate governance. The Company strictly adheres to national laws

and regulations as well as capital market regulatory requirements while

continuously refining its governance structure with clear responsibilities and

standardized operations alongside its internal control hierarchy. The Company

adheres to management principles of integrity transparency compliance and

prudence fulfills its responsibilities to shareholders employees customers and

other stakeholders and provides institutional guarantees for achieving long-term

stability and sustainable development.36 Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report Compliance as Foundation for Sustainable Growth 37

2.1 Corporate Governance

Nanshan Aluminium has always regarded compliance governance as the foundation of sustainable corporate development In addition to attending board meetings specialized committees and shareholder meetings as required independent direc-

strictly adhering to national laws and regulations such as the Company Law of the People's Republic of China and the Code tors further deepened their understanding of the Company's production and operations project construction internal control

of Corporate Governance for Listed Companies and fully implementing normative requirements including the Rules Govern- implementation and resolution execution through on-site inspections and special reports. They continuously fulfilled their

ing the Listing of Stocks on Shanghai Stock Exchange. Building on this foundation the Company has established a corporate supervisory and strategic advisory responsibilities effectively enhancing the scientific rigor of the Board's decision-making

governance system with clearly defined responsibilities and powers transparent operations and effective checks and balances. and the effectiveness of its oversight.Through clear functional divisions and standardized decision-making procedures the Company enhances strategic execution As of the end of the Reporting period the Board of Directors of the Company comprised nine directors in total including 1

efficiency and strengthens operational risk control providing institutional support for its long-term and steady development. female director and 3 independent directors. Independent directors accounted for 33% of the Board.In 2025 the Company continued to refine its governance structure and decision-making mechanisms to ensure that share-

holders and directors participate effectively and in accordance with the law in major corporate decisions. During the Report-

Board Diversity Board Compliance in Board

ing Period we made a decision to abolish the Supervisory Board and replace it with the Audit Committee. Throughout the Independence Operations

year 3 Shareholders' General Meetings were convened at which 18 proposals were deliberated and approved. Additionally 9

The members of the Compa-

Board of Directors meetings were held achieving a 100% attendance rate for directors during which 50 proposals were delib- Independent directors contin- The Board's operations adhere ny's Board possess diverse pro- uously fulfill their supervisory to the principles of independ-

erated and approved. fessional backgrounds ensur- responsibilities through attend- ence and standardization. By

Nanshan Aluminium Board and Committees ing the scientific rigor of de- ing meetings conducting on-site continuously optimizing its

cision-making through multiple investigations and review- structure clarifying responsi-

perspectives. ing special reports. They focus bilities and authorities and st-

primarily on the Company's op- rictly adhering to procedures

Board of Directors erations internal controls and it ensures that decisions are

the implementation of resolu- based on sufficient information

tions thereby effectively enhanc- and remain free from interfer-

ing the quality of the Board's ence there by continuously

Audit Committee Compensation and Compensation and

decision-making and the effec- enhancing the credibility of

Strategy Committee

Evaluation Committee Evaluation Committee tiveness of supervision. governance.The Company places high importance on the diversity of backgrounds and perspectives among Board members and is

dedicated to building a decision-making system with a reasonable structure complementary expertise and diverse viewpoints. Nanshan Aluminium also utilized training programs for directors supervisors and senior executives organized by third-party

Board members possess solid professional experience in management finance technology law and sustainable develop- institutions such as the Shanghai Stock Exchange and the Shandong Listed Companies Association to stay informed about

ment. Their composition maintains a relative balance across gender age and geography fully embodying the governance the latest industry trends and legal regulations. This initiative continuously enhances the performance of directors and senior

philosophy of diversity and inclusion. We believe that a diverse board structure enables the Company to more comprehen- executives laying a solid talent foundation for safeguarding the rights and interests of shareholders and investors support-

sively identify potential risks and development opportunities in a complex operating environment thereby enhancing the ing the Company's stable development.scientific rigor foresight and stability of strategic decision-making. This approach allows the Company to respond more effec-

tively to the reasonable concerns of shareholders and other stakeholders.The Company regards the independence and standardization of its Board of Directors as the core of corporate governance. We

strictly comply with the Measures for the Administration of Independent Directors of Listed Companies continuously optimize

the organizational structure clarify the division of responsibilities and powers and rigorously follow decision-making proce-

dures. This ensures that the Board can make independent and prudent decisions based on sufficient information free from

any improper interference thereby continuously enhancing the credibility and transparency of the Company's governance.To ensure the effective performance of duties by the Board of Directors particularly external Directors the Company has

established a systematic communication and support mechanism. Through regular information reporting special briefings

and two-way communication we ensure that directors are promptly informed of the Company's operational dynamics and

maintain close communication with management on key issues. Simultaneously the Company provides comprehensive infor-

mation support to independent directors in fulfilling their duties. The Board of Directors management and relevant staff

proactively provide detailed materials and explanations to facilitate their in-depth understanding of the Company's opera-

tions laying a solid foundation for communication with small and medium investors.38 Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report Compliance as Foundation for Sustainable Growth 39

Information Disclosure & Investor Engagement

2.2 Ethical Operations

Nanshan Aluminium adheres to standardized governance of the Company. In 2025 the Company participated in the

and transparent communication as key principles for the online collective reception day for investors of listed compa-

Company's steady development. The Company strictly nies in Shandong. Centered on the theme "Communica-

complies with relevant laws and regulations including the tion Creates Value Integrity Wins the Future" the Company Nanshan Aluminium has always regarded integrity as a crucial investigations daily supervision and integrity building.Company Law of the People's Republic of China and the provided real-time responses to investor inquiries regard- cornerstone and core value orientation for enterprise devel- Through standardized investigation procedures routine

Securities Law of the People's Republic of China. Aligning ing key issues such as business operations and development opment. Upholding business ethics standards the Company inspections of institutions and processes and the continu-

establishes integrity equity and transparency as its core ous advancement of integrity culture construction and cadre

with its operational characteristics and regulatory require- strategies further enhancing the effectiveness and quality

values for corporate governance and operational manage- performance evaluation the Company steadily consolidates

ments the Company has formulated and implemented of communication and interaction. During the Reporting ment. The Company not only strictly complies with domestic a compliant environment characterized by full staff participa-

internal policies such as the Investor Relations Manage- Period the Company conducted over 160 online and offline and international laws and regulations such as the Anti-Un- tion and transparency. In 2025 the Company further strength-

ment System and the Information Disclosure Management research exchanges with investors and organized a total of fair Competition Law of the People's Republic of China and ened the enforcement and supervision of policies to enhance

Methods. It continuously refines its information disclosure 11 events including analyst meetings and roadshows. the Anti-Monopoly Law of the People's Republic of China but internal oversight effectiveness providing solid governance

processes and management mechanisms to ensure that all also actively benchmarks against Transparency Internation- support for sustainable development.disclosures are truthful accurate complete and timely. The In 2025 Nanshan Aluminium received multiple authorita- al's Corporate Guidelines on Anti-Corruption and interna-

Company promotes the standardized operation of disclo- tive recognitions in governance structure disclosure and tional standards including ASI and RBA 8.0 internalizing them Nanshan Aluminium continues to strengthen the Company's

sure work through institutional arrangements and contin- capital market reputation. The Company was awarded the into the Company's Institution and culture. We have formu-

oversight and compliance governance system construction

at the corporate level deeply integrating internal supervision

uously enhances governance transparency to solidify the "Golden Bull Award" for "Outstanding Reputation Listed lated and refined internal policies such as the Anti-Corruption

Company of 2025" and "Best Board Secretary of a Main Policy embedding ethics into key areas including strategic mechanisms into the overall framework of corporate govern-foundation of trust in the capital market.Board Listed Company." It was continuously included in the decision-making daily operations and supply chain manage- ance and gradually building and perfecting a normalized

During the Reporting Period the Company continued to Fortune China 500 list. In the evaluation by the Association ment. We are dedicated to building a fair integrity-driven operational mechanism covering compliance investigations

improve its diversified and normalized investor commu- of Listed Companies of China it was recognized as a "Best and sustainable business ecosystem in collabouration with

daily supervision and integrity building. The Company rigor-

ously addresses violations and disciplinary breaches through

nication mechanism. Through multiple channels includ- Practice Case for Boards of Directors" and a "Best Practice our partners. independent and standardized investigation procedures.ing maintaining the official website the Shanghai Stock Case for Sustainable Development ESG." The Board Secre- In terms of organizational support the Company has estab- It regularly conducts supervision and inspections on the

Exchange designated information disclosure platform tary achieved the highest 5A rating in performance evalua- lished an Supervision and Inspection Committee under the implementation of policies business processes and labour

SSE e-Interaction new media matrix telephone fax and tion and the Company's performance briefing was selected Board of Directors to implement independent supervision discipline while continuously advancing integrity culture

email the Company maintained timely and transparent as an excellent practice case. Disclosure work has been rated over the Company's integrity in practice and compliance construction and the assessment of cadres' performance

two-way communication with investors. We actively partic- at Level A consecutively. These achievements reflect that status. The Committee continuously monitors the perfor- in their duties. In 2025 the Company further strengthened

ipate in various investor engagement activities including the Company's systematic practices in standardized govern- mance of key positions and conducts irregular integrity the enforcement of policies and the intensity of supervision

investor research visits analyst meetings and specialized ance transparent communication and sustainable devel- investigations and compliance reviews with suppliers and and inspection. It continuously enhanced internal supervi-

roadshows. We systematically communicate the Compa- opment have received widespread recognition from capital partners. It investigates and handles violations in accord- sion effectiveness to foster a clean operational environment

ny's strategy operational progress and governance philos- markets and industry institutions. ance with laws and regulations effectively preventing risks characterized by full staff participation openness transpar-

ophy to enhance market understanding and recognition such as corruption and bribery. To strengthen execution and ency and clear accountability. This provides robust support

establish a long-term mechanism the Company has built for the standardization of corporate governance and sustain-

a normalized operating mechanism covering compliance able development.During the Reporting Period no dismissals disciplinary actions investigations contract terminations or non-renewals

During the reporting period occurred due to commercial bribery corruption or similar misconduct by directors senior management or employees. No

related litigation cases were involved demonstrating the effective operation of the internal control system.We organized institutional investor meetings (online and offline) over 160

A total of 11 events including analyst meetings and roadshows40 Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report Compliance as Foundation for Sustainable Growth 41

2025 Business Ethics Audit Conducted by Nanshan Aluminium Nanshan Aluminium Complaint Handling Process

Submission of Communication

complaints through Investigation and of investigation

suggestion boxes evidence results to involved Review and Issuance of final

RBA 9 Code of Conduct Audits dedicated complaint collection by departments approval by the

email and relevant related staff and General Manager

disposition

telephone departments concerned

* We regularly conduct internal audits of the RBA Code of Conduct at our plate processing subsidiary to monitor compli- hotlines parties

ance with business ethics.Nanshan Aluminium continues to refine its business ethics and compliance training management system integrating integ-

rity and compliance requirements into the Company's daily management and operational processes. The Company conducts

regular business ethics training for all employees and relevant partners focusing on key areas such as integrity in practice

and compliant operations to enhance staff understanding of and ability to execute compliance requirements. Meanwhile

the Company has clarified behavioral norms through institutional mechanisms and formulated and implemented internal

ASI 10 PS 11 Internal Audits management documents such as the Integrity Self-Discipline Commitment. Directors senior executives and employees in

key positions are required to sign and confirm these documents. This strengthens accountability and behavioral constraints

promotes the effective implementation of business ethics requirements within the organization and solidifies the institu-

* We prioritize compliance across subsidiaries by conducting regular ASI PS internal audits covering our production of tional foundation for the Company's integrity and compliance management.alumina electrolytic aluminium medium-thick plate aluminium rolling and aluminium foil subsidiaries. These audits

systematically identify risks and drive corrective actions to ensure alignment with international sustainability benchmarks. Supplier Business Ethics

Nanshan Aluminium extends compliance management throughout the entire supply chain by implementing standards such

as ASI certification RBA principles and the Supplier Code of Conduct to systematically build a supplier compliance manage-

We place high importance on daily compliance management and continuously improve accessible and diverse feedback and ment system. The Company requires all suppliers to strictly comply with local laws and regulations sign policy documents such

complaint channels to encourage employees and internal and external stakeholders to express concerns and opinions in accord- as the Supplier RBA Commitment and Adherence to Business Ethics Agreement and clearly define compliance and business

ance with the law and compliance requirements. Through institutionalized standardized and transparent communication ethics requirements. Building on this foundation the Company has encouraged suppliers to establish internal anti-corrup-

mechanisms the Company systematically collects and attentively listens to various feedback from within the organization. tion and oversight mechanisms. Through regular audits and risk assessments the Company continues to strengthen supply

This ensures that relevant matters are promptly received verified and addressed thereby continuously improving manage- chain integrity governance jointly building a business cooperation ecosystem that is honest transparent and sustainable.ment processes and governance practices while solidifying the foundation of corporate compliance culture and risk prevention.Anti-Unfair Competition

The Company has established a rigorous and comprehensive whistleblower information protection mechanism. Personal Nanshan Aluminium has always adhered to the business principle of equity strictly complied with relevant laws and regula-

information of whistleblowers is subject to full-process tiered confidentiality management to firmly prevent any form of tions such as the Anti-Unfair Competition Law of the People's Republic of China and clearly opposed and actively prevented

retaliation or risk of information leakage. Through clear institutional arrangements and a sustained culture of compliance commercial bribery false propaganda theft of trade secrets and other acts that disrupt market order. The Company requires

the Company encourages employees to proactively report potential non-compliance issues in a safe and protected environ- all employees and partners to jointly adhere to integrity-based self-discipline competition norms. Through regular training

ment. This initiative continuously fosters an open transparent and mutually trusting workplace promoting the transforma- and policy dissemination the Company aims to enhance compliance awareness across the organization actively prevent

tion of compliance awareness from institutional requirements into voluntary employee behavior ultimately internalizing it and firmly resist market manipulation commercial defamation and improper related-party transactions. During the Report-

as a shared code of conduct for all staff. ing Period the Company did not experience any litigation or regulatory penalties involving infringement of trade secrets false

advertising non-compliant disclosure or monopolistic practices.

9: RBA: Responsible Business Alliance.

10: ASI: Aluminium Stewardship Initiative.

11: PS: Performance Standard.42 Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report Compliance as Foundation for Sustainable Growth 43

2.3 Risk Management 2.4 Information Security & Privacy Protection

Nanshan Aluminium continues to improve its risk management system and is committed to building a systematic compliant Nanshan Aluminium regards information security as a core guarantee for sustainable corporate development and continu-

and efficient risk prevention and control mechanism. The Company proactively identifies internal and external potential risks ously builds an overall protection system covering institutions management and technology. We strictly adhere to national

and conducts dynamic monitoring and forward-looking assessments to effectively ensure the Company's stable operations and laws and regulations such as the Cybersecurity Law of the People's Republic of China and the Regulations on Network Data

long-term sustainable development. Security Management. We have established internal policies including the Data Security Management System the Informa-

tion Management System the Implementation Details for Business Secret Management the Network Information Manage-

The Company systematically manages the identification assessment and response to various risks by formulating and contin- ment System and the Network Information Center Rules and Regulations. A compliance control framework covering the

uously optimizing internal policies such as the Risk and Opportunity Control Procedures ensuring that risk control measures entire data lifecycle has been built providing a solid institutional foundation and security support for business operations

are closely aligned with the pace of business development to support the stable operation of the enterprise. The Company has and strategic development.established a mature risk management architecture that integrates key functions including finance supply chain sales assets

and budgeting. Through cross-departmental collabouration and resource integration the Company comprehensively covers risk The Company has established a clear security organizational structure and a layered collabourative mechanism. The Network

identification assessment and control across all business areas continuously enhancing its overall risk resilience. Information Center serves as the core for overall coordination while the Cybersecurity Working Group is responsible for special-

ized execution. Through the regular convening of cybersecurity meetings and the review of security reports we ensure the

In addition Nanshan Aluminium has established an internal control system covering key areas such as operations markets continuous advancement and dynamic optimization of information security work. This has established an efficient response

finance and legal affairs implementing differentiated control measures through hierarchical risk management. The internal mechanism and a continuously improving security protection capability providing reliable assurance for the Company's

control audit department assumes a supervisory function regularly evaluating the implementation of policies and process compli- digital operations.ance. It clarifies responsibility boundaries and promotes the formation of management closed loops across all business segments

thereby continuously enhancing the Company's overall risk prevention and control capabilities and management resilience. Nanshan Aluminium Cybersecurity Management Structure

Responsible for formulating supervising and managing the Company's overall cyber-

Network Information

Center security strategy to ensure that the cybersecurity system construction aligns with the

Company's business development strategy.Internal and External Risk Consideration Dimensions12

Composed of technical personnel from various units and the Information Department

it is responsible for the specific implementation monitoring and emergency response

Cybersecurity Team of cybersecurity. Identify and resolve potential security threats in a timely manner;

Key Internal Operational Risk Points External Macro Potential Risks respond swiftly and implement precise measures when cybersecurity incidents occur

to effectively contain the spread of risk.Production & Operations Human Rights Protection Customs Technological Innovation

To enhance practical cybersecurity capabilities Nanshan Aluminium proactively aligned with international mainstream

Employee Health & Safety Cash Flow Taxation International Settlement & Foreign Exchange security standard systems and systematically advanced specialized certifications and assessments in key areas. By continu-

ously identifying vulnerabilities implementing closed-loop remediation and optimizing control measures the Company is

Ecological Environment Import & Export strengthening its security protection capabilities and advancing the cybersecurity framework toward a more standardized

robust and resilient direction.

12: See Nanshan Aluminium's 2024 Annual Report for more details: Nanshan Aluminium's 2024 Annual Report.44 Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report Compliance as Foundation for Sustainable Growth 45

Network Information Security Related Certifications Network Information Security Prevention Measures

On April 16 2025 the Company focused on the security of core infrastructure in data centers

ISO 27001 Certification TISAX Certification Infrastructure security and commissioned a third party to conduct a specialized inspection for power supply lightning

inspection to eliminate protection. On-site testing confirmed that all grounding resistance values were below 4 ohms

physical environment risks complying with national regulatory standards and effectively mitigating safety threats to data

The aluminium foil division Achieved the Trusted Information Security center equipment and operating environments posed by natural factors such as lightning.completed the 2025 ISO 27001 Assessment Exchange (TISAX) AL2 label.recertification audit.In 2025 the Company comprehensively advanced and completed the cybersecurity classi-

fication protection assessment for its key information systems. A total of six certifications

ISO 27001 Certification were obtained including four Level-2 assessments and two Level-3 assessments covering

core business platforms such as the Aluminium Industry Email System BPM System and

Construction of

Network Information Security Prevention Supply Chain System. The security protection capabilities of these core business systems cybersecurity rating have reached the national classification protection standards.Nanshan Aluminium has systematically built a comprehensive protection system covering networks terminals data infra- systems through

authoritative assessment The Company actively collabourates with ecosystem partners to conduct cybersecurity classi-

structure and compliance certifications through the dual drive of technology and management. In 2025 the Company focused and certification. fication protection assessments. During the year it supported the completion of classification

on four key areas: hardware protection software control infrastructure security and compliance with classified protection construction and assessment for two Level 3 systems and one Level 2 system. All relevant

standards. We continued to optimize security capabilities and strengthen protective measures. systems have successfully passed assessment and obtained the corresponding filings demon-

strating the Company's effectiveness in continuously delivering security capabilities within the

During the Reporting Period the Company invested a total of 4.3875 million yuan in cybersecurity construction primarily for collabourative ecosystem and assisting partners in enhancing their security protection levels.upgrading core security facilities deploying key protection tools and ensuring information system operations and mainte-

nance. These measures comprehensively enhanced the enterprise's cybersecurity protection level and risk coping capacity. In Nanshan Aluminium has established a normalized cybersecurity inspection mechanism and a systematic confidentiality

the future Nanshan Aluminium will advance its information security system towards a more proactive intelligent and compli- management system to continuously strengthen its internal information protection capabilities. The Company conducts

ant direction providing robust and reliable security assurance for business operations and core data assets. monthly cybersecurity inspections and specialized governance initiatives such as "weak password checks." During the Report-

ing Period a total of 125 issues including weak passwords and system vulnerabilities were identified and resolved. In terms of

Network Information Security Protection Measures confidentiality management the Company has established a comprehensive constraint system covering the entire business

process by signing confidentiality agreements with external suppliers and obtaining confidentiality commitments from key

internal employees thereby effectively safeguarding core information and data security.Deploy high-performance firewalls web behavior audit systems and network situational Cybersecurity Culture Promotion

awareness platforms while introducing next-generation application firewalls integrated with

Strengthening hardware intrusion detection system (IDS) and intrusion prevention system (IPS) functions to achieve Nanshan Aluminium continues to integrate cybersecurity awareness into employees' daily work routines and behavioral habits.protection to build a comprehensive monitoring and control of network traffic across all dimensions. During the Reporting Period the Company organized 6 specialized training sessions for information technology heads across

robust security barrier at A new email security gateway for procurement has been deployed to filter malicious emails in all units. The content covered interpretations of laws and regulations reinforcement of information security awareness and

the network boundary. real time and intercept phishing attacks. This effectively blocks external unauthorized access prevention of new viruses. Additionally four types of promotional posters and explanatory documents were created to address

and malicious intrusion attempts comprehensively safeguarding the stability and security typical risk scenarios and disseminated to all employees through multiple online and offline channels. Upon completion of

of the Company's network architecture and core business data.the training the Company encourages all internal organizations to sustain continuous learning with a focus on disseminat-

ing email security knowledge. This initiative aims to comprehensively enhance employees' risk prevention capabilities and

Procure and deploy endpoint antivirus software across all company endpoints. Through a jointly fortify the Company's data and information security defense.dual mechanism of regular network-wide virus scanning and real-time protection malicious

Upgrading software programs such as viruses and trojans are precisely identified and eliminated to eliminate

controls to solidify the endpoint security risks.foundation of terminal Leveraging existing professional data encryption software the Company implements full-link

and data security. encryption for both storage and transmission of sensitive enterprise data. This technical

measure prevents unauthorized theft and tampering of data ensuring security throughout

its entire lifecycle.46 Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report Compliance as Foundation for Sustainable Growth 47

Cybersecurity Training and Culture Promotion Cybersecurity Culture and Activity

The Company actively participated in external cybersecurity practical competitions. During the Reporting Period it distin-

Legal Training and Promotion on the Cybersecurity Law of the People's Republic of China guished itself among multiple participating teams in the cybersecurity CTF competition organized by the Company winning

the Second Prize for Teams and individual awards. This participation effectively validated and demonstrated the Compa-

Training on Network Security Management for Financial Systems ny's professional capabilities in the field of cybersecurity. In the future the Company will leverage this opportunity to further

National Cryptography Security Training for the National Security Education Day improve its routine learning and offensive/defensive drill mechanisms strengthen professional talent development and

Security Awareness Training for Financial Personnel continuously enhance overall security protection levels.Security Awareness Training on the "Silver Fox" Trojan Virus

Yantai City Cybersecurity Competition

Cybersecurity Awareness Training in the AI Era

Cybersecurity Training

Cybersecurity Emergency Response Drill

In 2025 the Company conducted four cybersecurity emergency drills covering key scenarios including primary-backup failover

of internet exit load balancing firewall failures web behavior management system malfunctions and emergency response for

monitoring platforms. Prior to the drill a detailed plan shall be formulated to clarify objectives processes responsibilities and

response measures. During the drill various sudden cybersecurity incidents shall be simulated to ensure orderly emergency

response and coordinated handling. Through a series of drills the Company effectively verified the feasibility and effective-

ness of its cybersecurity emergency response plan and enhanced the collabourative response capabilities of all departments

in handling sudden security incidents.Craftsmanship-Driven Quality

Manufacturing and Innovation-

Powered Development

Nanshan Aluminium started from a high position and continuously improved product

quality and services with a commitment to excellence. We continue to advance

technological upgrades and process optimization strengthen quality management

throughout the entire process and enhance product quality and brand

competitiveness. The Company has established a comprehensive communication

mechanism and a closed-loop feedback system to analyze customer needs enhance

the service experience and create greater value for customers.50 Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report Craftsmanship-Driven Quality Manufacturing and Innovation-Powered Development 51

3.1 Product Quality

Nanshan Aluminium has always adhered to the quality philosophy of striving for perfection. The Company continuously Analysis of Risks Opportunities and Their Impacts

improves its quality management system and establishes a scientific quantitative control mechanism covering the entire

product lifecycle. Key quality indicators are clearly defined while risks are regularly identified assessed and monitored

throughout the process. This ensures refined management across all stages from raw material procurement to delivery guaran- Identification and Assessment of Potential Risks

teeing the stability and reliability of product quality. The Company continually enhances customer trust and brand value. Risk Risk Description Time Period Business Impact Financial Impact

Governance Rising compliance

If the Company fails to timely

Changes in industry regulations and costs

Nanshan Aluminium regards quality governance as a critical pillar of corporate sustainable development. The Company has monitor changes in regula-standards may require the Company Short- Operating costs

established a three-tier vertical quality management architecture comprising the decision-making layer management layer Regulations and tions and standards and to adjust production processes to Medium- increased

and execution layer. This forms a governance system centered on a risk management pre-control mechanism which is regularly Standards adjust its product manufac-ensure product quality and safety and

Changes turing accordingly it may Decrease in operating

evaluated to ensure alignment with market demands applicable regulations and strategic direction. We consistently deliv- more rigorously before delivery to Long-term result in delayed customer revenue (if order deliv-

ering high-quality products to customers. customers. deliveries or reduced orders. ery is not completed

successfully)

Hierarchy Governance Body Function

Reporting

Method Failure to adopt new technologies in a Short- Lack of timely It hinders the company's

timely manner may result in produc- Medium-

technological development and fails to Revenue decreased

* As the highest decision-making body it establishes quality objectives tion quality failing to meet market and

Decision- innovation meet market demands.Board of and strategic development directions.demands. Long-term

making /

Directors * Identify and assess quality risks in the operational process.Layer An imperfect supply chain manage-

* Supervise the implementation of quality objectives The supply ment system may hinder the Com- Short- Non-compliant products

chain

pany from effectively identifying and Medium- entering the market affect

management Revenue decreased

controlling quality risks within the and the Company's reputation

Sustainability system is * Responsible for quality management throughout the product lifecycle. supply chain resulting in non-com- Long-term and public perception.

(ESG) Committee imperfect

Management * Monitor market dynamics and demand to provide recommendations to Every six months pliant products entering the market.Quality Assurance

Working Group the Board of Directors. Failure to timely identify

Downstream customers are contin- changes in market demand

Short-

uously raising their requirements and adjust the Compa-

Changes in Medium-

Nanshan for product quality necessitating ny's products accordingly Revenue decreasedmarket demand and

Executive Aluminium Quality * Supervise the operation of the quality management system across ongoing optimization of production may lead to a reduction in

Monthly Report Long-Term

Layer Management all branch companies. processes to maintain competitiveness. product order volumes

Department thereby impacting revenue.Identification and Assessment of Potential Opportunities

During the product manufacturing process Nanshan Aluminium management comprehensively considered management Opportunities Opportunity Description Time Period Business Impact Financial Impact

policies project scale and commercial value to translate strategic guidelines into specific quality management objectives By leveraging technologies such as Intel l igent and digital

and action plans. The Company promptly monitored plan completion status and reported feedback to the decision-making Short- IoT big data and AI intelligent and management can enhance Increase operating

Digital Medium-

level. The executive layer strictly adheres to quality management objectives continuously implements quality management digital management of product quality the Company's production revenue and reduce Transformation and

initiatives and monitors their effectiveness to ensure product quality and safety throughout the entire lifecycle. during the production process can be efficiency while ensuring production costs.Long-term

achieved. product quality.Strategy Strengthen brand building enhance Short-

Increase product market

Nanshan Aluminium adopts a development strategy oriented by "innovation-driven high-end manufacturing and deep the brand image of product quality Medium- Increase operating Brand Building share and enhance customer

processing" focusing on building competitive advantages centered on quality. The Company ensures that every link from and service increase market share and and revenueloyalty.strengthen customer loyalty. Long-Term

production to delivery meets quality requirements providing customers with highly reliable products and services.52 Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report Craftsmanship-Driven Quality Manufacturing and Innovation-Powered Development 53

Management Strategy Quality System Certification

Nanshan Aluminium has fully identified and assessed potential risks and opportunities related to quality. The Company has Nanshan Aluminium actively seized the new situation characterized by the continuous improvement of domestic economic

deeply implemented the development plan of "Enhance Quality Increase Efficiency and Emphasize Returns" established a operations and the sustained effectiveness of measures to stabilize foreign trade scale and optimize its structure. The Company

sound quality management system in accordance with the latest legal and regulatory requirements advanced quality certi- deepened its focus on traditional aluminium products continuously consolidated its market position in can body stock can

fication and audits and provided high-quality high value-added products to customers. Furthermore we deeply integrate end stock and packaging foil and solidified strategic partnerships with customers. On the other hand leveraging multi-sys-

intelligent technologies with business scenarios to enhance operational efficiency continuously deepen customer trust and tem quality certifications we advanced towards high-end industrial and architectural profiles prioritizing the development

strengthen customer loyalty. of high-end products such as automobile sheets and aviation sheets/plates.Quality Management Processes and Digital Empowerment As an enterprise certified under both the ASI Performance Standard (PS) and Chain of Custody (CoC) Nanshan Aluminium15

Nanshan Aluminium adheres to the requirements of the ISO 9001 quality management system has established a compre- and its subsidiaries have obtained international authoritative quality management system certifications in multiple areas

hensive quality management process and reduces potential quality risks. In addition we introduced an advanced digital including ISO 9001 IATF 16949 AS 9100 and ISO/TS 22163.management system including the BMS (Building Management System) PMS (Production Management System) and EMS Quality System Certification

(Environmental Management System). These initiatives enable refined management and real-time tracking of production

processes while monitoring energy consumption and environmental emissions thereby deeply integrating environmental

management with quality management. Quality Management System

Certification Nanshan Aluminium Certified Entity

Product Quality Management System Management Process ISO 9001 Quality Management System Shandong Nanshan Aluminium Co. Ltd. and PT Bintan Alumina Indonesia

IATF 16949 Automotive Quality Shandong Nanshan Aluminium Co. Ltd (Flat-rolled Product Division) Yantai

Vice General Production Management System Donghai Aluminium Foil Co. Ltd. Aluminium ProfilePlant of Nanshan Aluminium

General Manager Manager of Department Production Laboratory Commerce AS9100 Aerospace Management System Shandong Nanshan Aluminium Co. Ltd (Flat-rolled Product Division) Production/ / Production Section Department Aluminium Profile Plant of Nanshan Aluminium

Management Plant Manager

ISO/TS 22163 Railway Industry Quality

Management System Aluminium Profile Plant of Nanshan Aluminium

Responsible for Establish targets Coordinate with Responsible Responsible for Coordinate with

overall and plans for all branch for the specific the testing and customers GB/T 29490 Enterprise Intellectual Property

production product output factories to organization supervision of to collect Management System

Shandong Nanshan Aluminium Co. Ltd.quality and quality ensure the and indicators product sales NADCAP Special Processes Certification for Shandong Nanshan Aluminium Co. Ltd (Flat-rolled Product Division)

objectives plans and implementation data and quality Aerospace Products Aluminium Profile Plant of Nanshan Aluminium

targets are of targets and feedback

achieved plans

As of the end of the Reporting Period the Company holds more than 20 international authoritative certifications covering

quality control across the entire industry chain.Driven by digital empowerment and leveraging the MES13 (Manufacturing Execution System) and intelligent high-bay Joint Quality Review

storages14 the Company has achieved significant results in the field of intelligent manufacturing. We adopted RCCA (Root Nanshan Aluminium adopts a dual approach of internal and external measures regularly conducting joint reviews to ensure

Cause Corrective Action) a tool designed to resolve quality issues to achieve the "double zeroing" of processes and manage- product quality and safety from multiple angles throughout the production process thereby injecting sustained momentum

ment thereby ensuring the effectiveness of quality management. into the Company's high-quality development. The Quality Joint Review Group is jointly composed of the Production Equip-

ment Management Department Quality Management Department System Certification Department Lean Management

Department and Metrology Testing Center. It conducts supervision and inspection on all aspects affecting quality—namely

manpower machinery materials methods environment and measurement—and organizes rectification for identified issues

while tracking and verifying them.

13: MES (i.e. Manufacturing Execution System) is a software system used to monitor control and optimize manufacturing processes to achieve full-pro- 15: The Company's subsidiary factory in Indonesia has obtained and maintains the ISO 9001 quality management system certification significantly enhanc-

cess management of product production. ing the market recognition of its products.

14: An intelligent high-bay storage is a storage solution that utilizes automation technology and intelligent management systems to achieve efficient

storage and retrieval of goods.54 Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report Craftsmanship-Driven Quality Manufacturing and Innovation-Powered Development 55

During the Reporting Period Nanshan Aluminium conducted 12 joint quality reviews identified 157 issues organized relevant During the Reporting Period Nanshan Aluminium organized 53 company-level training sessions with a total of 1217 participants.units to implement corrective actions and completed closed-loop verification.

2025 Quality Review of Nanshan Aluminium On-site Quality Management Training

Indicators Unit 2025 Data

Number of Internal Quality Audits Conducted Times 33

Number of Third-party Quality Audits Conducted Times 58

Number of Customer Audits Conducted Times 34

Cumulative Quality Improvement Items Rectified Items 847

Manpower Machine Management of Impacts Risks and Opportunities

Against the backdrop of accelerated green Transformation in the aluminium industry and intensifying global competition

Nanshan Aluminium has advanced quality management from traditional production to the entire Value chain establishing

a closed-loop quality system covering R&D procurement manufacturing delivery and service. The Company continues to

deepen its quality risk pre-control mechanism and strengthen source control. We actively promote digital Transformation

Measurement Material and widely apply error-proofing technologies to enhance traceability across the entire product lifecycle. This ensures trans-

parent and traceable quality information building a brand that customers can trust.Metrics and Targets

Environment Method The Company adheres to a core strategy of driving quality performance through quantifiable targets providing guidance for

the efficient implementation and optimization of corporate strategic objectives. We are committed to enhancing core metrics

such as customer satisfaction and conducting annual comparisons against target implementation.During the Reporting Period the Company's quality management-related indicators were as follows:

Quality Culture and Quality Training

Nanshan Aluminium adheres to quality culture construction has established a quality management incentive institution Indicator 2025 Targets Actual Achievement Year-on-Year Change

and built a normalized quality training system to continuously consolidate the foundation of the Company's quality culture.During the Reporting Period Nanshan Aluminium updated and issued the Incentive Measures for Quality Management and Customer Satisfaction ≥92 94.5 Flat

Technological Innovation Projects. This initiative covers quality improvement projects and conducts an integrated assessment

across multiple dimensions including the difficulty of enhancing product quality the degree of improvement in customer Percentage of employees who have

100% 100% Flat

satisfaction and the market prospects of products. A three-tier cash reward mechanism has been established to fully stimu- received quality-related training

late employees' enthusiasm and creativity in participating in quality improvements.Number of Major Liability

The Company conducted quality-related training based on its current status and the training needs of various units cover- Incidents Related to Product and 0 Achieved the Target /

ing standard knowledge quality awareness skill tools and policies. This initiative further deepened all levels of personnel's Service Safety and Quality

understanding of the Company's quality culture and effectively enhanced their professional quality capabilities.56 Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report Craftsmanship-Driven Quality Manufacturing and Innovation-Powered Development 57

3.2 Innovation and R&D

Strategy

Nanshan Aluminium continuously strengthens its R&D innovation management capabilities. To ensure the orderly execution

The Company adheres to the dual-drive strategy of "technological innovation + industrial development" leveraging an of R&D projects and guarantee their success rate Nanshan Aluminium identifies and assesses risks and opportunities in areas

integrated ecosystem for the production sales and research of aluminium alloy materials and components as a fulcrum to such as product innovation and intellectual property considering both the external environment and the Company's strategic

continuously unleash its innovation potential. We maintain high-intensity R&D investment to build a technological moat. We business direction. This process clarifies their impact on operations and associated financial implications enabling the formula-

continuously break through international barriers. Multiple core technologies have achieved a leapfrog transition from tion of appropriate management strategies to optimize resource allocation and significantly enhance decision-making quality.following running alongside to leading.Governance Analysis of Risks Opportunities and Their Impacts

We established a three-tier innovation-driven governance structure comprising the Board of Directors the Technology Innova- Identification and Assessment of Potential Risks

tion Working Group and the Science and Technology Management Department of the Control Center to ensure oversight

guidance and support from the Board and management regarding relevant work. Risk Risk Description Time Period Business Impact Financial Impact

Industry technology iteration is

Report- accelerating. If R&D directions

Hierarchy Governance Function ing fail to align with mid-term market Medium- Body Method Decline in market Revenue demands (such as low-carbon and

competitiveness decreased

aluminium materials and light- Long-Term

* As the highest decision-making body it determines the strategic Product weight trends) technical compet-

direction of innovation. itiveness may decline.Decision- Innovation Risk* Innovation Risk Identification and Assessment

making Layer /Board of Directors Innovative products (such as new * Resource Allocation Decision-Making aluminium alloy materials) may

* Supervise the implementation of the innovation strategy R&D expenses face a long customer verification Short-term The R&D cycle has been extended.increased

* Responsible for technical research and development and innovation cycle and low market awareness

throughout the product lifecycle to enhance independent innovation in the short term.capabilities and establish intellectual property rights for core technol-

Sustainability (ESG) Suffering from infringement Operating revenue ogies of key products.Management Committee Every six

Short-

The Company failed to effectively by competitors decreased

Technology * End-to-end management of technology innovation projects including months Intellectual and

project initiation process management and acceptance. protect its intellectual property Innovation Property Risk Medium- Involved in intellectual property rights. Administrative

Working Group * Monitor market dynamics and demand to provide recommendations Term disputes subject to litigation and expenses increased

to the Board of Directors. arbitration

Identification and Assessment of Potential Opportunities

* Resources are allocated reasonably based on project priorities.Executive Layer Technology Manage- * Construction of the technology R&D team personnel training etc. Monthly

Opportunities Opportunity Description Time Period Business Impact Financial Impact

ment Department of * Address technical issues existing in research and development and Report Through the R&D of lightweight

the Control Center production processes. and high-strength new aluminium

alloy materials (such as aluminium

Short- New products directly capture

for automotive lightweighting)

Nanshan Aluminium adheres to the principle of "innovation-driven development with technology as the guide". By leverag- Market and new market share enhancing the Operating revenue we rapidly respond to the urgent

ing technological innovation the Company fully utilizes R&D platforms such as the National Enterprise Technology Center Competitiveness Medium- Company's brand value and core increasedneeds of industries including new

Term competitiveness.Academician Workstation and Postdoctoral Workstation. It increases investment in key technical areas to build the Compa- energy vehicles and aerospace

ny's core technological strength. The Company's R&D team possesses extensive experience in R&D projects. It regularly organ- thereby enhancing our short-term

izes internal and external professional training sessions and actively participates in various industry exchange conferences market share.to continuously uptake academic and cutting-edge industry information. The team actively shares R&D achievements of the Enterprises that master the author- Products that comply

Company to promote industry development. Lead or participate in the formula- ity to set standards are typically with industry stand-

Lead the

tion of technical standards for the regarded as industry leaders. This ards typically enjoy

The Company's decision-making and management layers comprehensively consider the scientific rigor commercial value formulation aluminium industry (e.g. recycled Long-term significantly enhances their brand higher market accept-

return on investment as well as the environmental impact and social value of innovation projects. They conduct R&D and of industry aluminium standards) to enhance influence and customer trust facili- ance enabling premium

intellectual property compliance management introduce external databases for reference and perform in-depth analysis of standards industry influence. tating the acquisition of high value- pricing and improved

related risks and opportunities to reasonably balance inputs and outputs thereby forming final decisions. added orders. gross margins.58 Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report Craftsmanship-Driven Quality Manufacturing and Innovation-Powered Development 59

Management Strategy

Aluminium for Aviation

Nanshan Aluminium adheres to the development strategy of "Innovation-driven High-end Manufacturing and Deep Process-

ing". The Company has improved and refined upstream production processes while researching and breaking through During the Reporting Period the Company made positive progress in the research and development qualification of

downstream product technologies. It is actively deploying key core technologies as well as disruptive forward-looking and aviation materials. We successfully completed product qualification and production for multiple models of aluminium

breakthrough "three-characteristic" technologies. Centered on automotive lightweighting and the localization of aviation alloy plates for aviation further expanding its cooperation with Airbus. In the future we will continue to advance the optimization and R&D of aluminium products for aviation applications. We will gradually achieve full coverage across

materials we focus on addressing the production and application of high-end aluminium processing products such as automo- all models and sizes continuously enhance the technical level and market competitiveness of aviation aluminium alloy

bile sheets aviation sheets/plates and aviation profiles thereby breaking the monopoly held by foreign entities on the supply sheets/plates and contribute to the localization process of aviation materials.of products like automotive exterior panels and long fuselage stringers for aircraft wings.The Company adheres to the strategy of "Technological Innovation + Industrial Development". Focusing on aluminium alloy Aluminium for Automotive

Lightweighting

materials and components it has established a collabourative innovation system covering research and development produc-

tion and sales continuously strengthening the supportive role of technological innovation in industrial development. We During the Reporting Period the Company has completed qualifications for inner and outer body parts from multiple automo-

maintain a high proportion of R&D investment focusing on breakthroughs in key materials and core process technologies. tive manufacturers as well as qualifications for parts made from recycled aluminium materials. The low-carbon material research

This drives technical advancements across multiple products continuously enhancing the technological level and market and development reached the stage of practical application. We will continue to develop green and low-carbon automotive sheet

competitiveness of our high-end aluminium products. products strengthen our capacity for new material technology reserves promote the application of lightweight materials for

automobiles and further enhance the Company's market competitiveness in the aluminium processing industry.Innovation and R&D System

Nanshan Aluminium continues to establish and improve the R&D management system policies accelerating the pace of scien-

tific and technological innovation through internal research project initiation "industry teaching and research cooperation" Intellectual Property Management

projects and collabourations with upstream and downstream sectors. Nanshan Aluminium strictly complies with relevant laws and regulations such as the Patent Law of the People's Repub-

lic of China the Anti-Unfair Competition Law of the People's Republic of China the Management Specification for Intellec-

During the Reporting Period the Company updated and issued the Quality Management and Technical Innovation Project tual Property Rights of Enterprises and the Guidelines for Intellectual Property Management in Industrial Enterprises. The

Incentive Measures of Shandong Nanshan Aluminium Co. Ltd. to further stimulate employees' enthusiasm and creativity in Company has established an intellectual property protection policy manual and defined application processes for trade-

new product development certification and quality improvement. mark and copyright protection. Based on business needs Nanshan Aluminium conducts risk assessments and registrations

We adhere to technological innovation increase R&D investment and optimize products and services. The Company organ- for trademarks and copyrights comprehensively advancing the creation protection utilization and management of intel-

ized a high-quality R&D team and maintains close collabourations with universities and research institutions to advance indus- lectual property rights.try progress. The Company built the only national-level engineering technology research center for aluminium alloy plastic During the Reporting Period Nanshan Aluminium successfully passed the supervisory audit for its enterprise intellectual

working in China's aluminium processing industry as well as R&D and testing platforms such as the aviation aluminium alloy property management system in accordance with GB/T 29490.material testing center.As of the end of the Reporting Period among

the 30 technological innovation projects

identified by Nanshan Aluminium at the

beginning of 2025 20 projects have been

implemented according to schedule and

achieved expected results receiving approval

from the review committee. Additionally 9

projects have substantially completed their

research content with a review outcome of

project completion.Key Product Planning

Leveraging its advantages along the industrial chain the Company continues to focus on the R&D of high-end aluminium

materials and the upgrade of product structures. In 2025 it prioritized the development of aluminium for aviation applications

and lightweight aluminium for automotive use. In the field of aviation materials the Company leverages its rigorous quality

management system to advance the research and development and large-scale production of aluminium alloys for aviation

applications. By optimizing production processes and expanding the aviation support market the Company provides stable

and reliable material support for the localization of materials used in civil aircraft. In the automobile sheet metal sector we

have intensified efforts in new model development and product certification continuously expanded market application

scenarios strengthened partnerships with core customers and enhanced product competitiveness.60 Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report Craftsmanship-Driven Quality Manufacturing and Innovation-Powered Development 61

In 2025 Nanshan Aluminium further standardized the patent application process and introduced a fast-track pre-examina-

Intellectual Property Management Measures tion channel to accelerate the acceptance and authorization of high-value patents.Nanshan Aluminium Patent Application Procedures

Patent Information Consultation Patent Information Retrieval Patent Technology Disclosure

Document

Preparation Regularly monitor the market for intellectual property (IP) related to the company. Before engaging Prior to patent application each Prior to patent application the

Phase in international trade investigate the IP laws policies and enforcement practices of the destination enterprise conducts an internal Technology Center is responsi- When filing a patent application

country. Understand relevant industry litigations analyze potential disputes and their possible impact verification of patent informa- ble for providing rapid retrieval a technical disclosure document

on the company and develop preventive plans. tion while the Technical Center is support for new patent content must be prepared. Upon approval

responsible for providing on-site and promptly notifying enter- it shall be submitted via email to the

guidance and responding to inquir- prises of the feasibility of patent Technical Center for revision and

ies. drafting. refinement after which the patent

application will be filed through an

agency.Contract

Signing For outsourced business activities sign written contracts that specify IP ownership and confidentiality

clauses. The Company's legal department reviews and archives these contracts.Patent Acceptance Patent Grant Patent Certificate

The Technical Center follows up on The Technical Center is monitor- Upon grant of the patent the

the acceptance review of patents ing the application process with Technolog y Center promptly

and coordinates with the Company the China National Intel lec- completes registrat ion pays

to improve relevant materials in tual Property Administration. In relevant fees obtains the patent

Interde- During product procurement sales research and development or other business processes monitor for

partmental accordance with review require- accordance with audit require- certificate and establishes an

Coordination potential IP infringements. If issues are identified report them to the IP department for handling. When ments. m e n ts co o rd i n ate w i t h t h e archive for the patent certificates.necessary the legal department may pursue administrative and judicial avenues to protect the Compa- agency to guide the Company in

ny's IP rights. rectifying non-compliance items.We provide employees with specialized training on intellectual property and incentives for patent applications to continu-

ously enhance their intellectual property awareness and independent innovation capabilities. A reward of RMB 1000 is granted

upon acceptance of a patent application by an employee. If the patent is successfully authorized a reward of RMB 9000 is

Proactive provided for each authorized patent.Monitoring Actively renew trademarks upon expiration and combat malicious trademark imitations. Proactively

defend against market infringements. The Company prioritizes to cultivate a culture of intellectual property management. During the Reporting Period we conducted

a total of 61 training sessions related to intellectual property. The Company invited patent agencies to conduct patent training

activities and participated in an intellectual property lecture organized by the Longkou Market Supervision Administration.Nanshan Aluminium Intellectual Property Specialized Training

Collaborative During the Reporting Period the Company invited

Management Coordinate with affiliated companies to clearly delineate ownership boundaries reducing trademark a third-party expert team to Nanshan Aluminium to

conflicts and minimizing gaps in IP rights. conduct specialized training on intellectual property.This training systematically covered the software

copyright application process methods for enhancing

patent drafting quality and intellectual property protec-

tion measures providing robust support for safeguard-

ing the Company's innovative achievements.62 Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report Craftsmanship-Driven Quality Manufacturing and Innovation-Powered Development 63

Intellectual Property Management Training Nanshan Aluminium actively participates in industry exchanges and green development seminars

In April 2025 the Company's relevant intellectual During the Reporting Period we actively participated in

property management employees participated in a industry exchanges and policy seminars. The Company

special training session on the Longkou City "Stand- attended the Council Meeting of the China Nonferrous

Metals Industry Association the Shandong Green Low-Car-

ardizing Patent Application Behavior and Mobilizing for bon High-Quality Development Conference and the Second

Improved Quality of Intellectual Property Creation and China Secondary Nonferrous Metals Technology Confer-

Utilization". This training further deepened our under- ence. It shared research findings on topics related to

standing of compliance requirements for patent appli- "Dual Carbon" goals such as downcycling prevention in

cations and high-quality intellectual property layout. recycled aluminium applications and engaged with indus-

try partners to jointly explore green low-carbon transfor- The Seventh Meeting of the Fourth Council and the

mation and high-quality development pathways for the Ninth Meeting of the Standing Committee of the

nonferrous metals industry. China Nonferrous Metals Industry Association

Industry Collabouration and Co-construction

Nanshan Aluminium adheres to the development philosophy of open cooperation and mutual benefit. The Company actively

participates in industry association construction and deeply engages in the formulation of industry standards. Furthermore

Nanshan Aluminium continues to advance collabourative innovation among industry academia and research institutions.By conducting technical exchanges and cooperative research with scientific research institutes universities and indus-

try partners the Company drives breakthroughs in key technologies and facilitates the implementation of researches. The

Company continues to strengthen industrial synergy and experience sharing working with all parties in the industry to jointly

promote high-quality and sustainable development of the non-ferrous metal industry.

2025 Shandong Green Low-Carbon 2025 (2nd) China Recycled Nonfer-

Name of Industry Association Position held at the organization High-Quality Development Conference rous Metals Technology Conference

China Nonferrous Metals Industry Association Vice President Business

China Nonferrous Metals Fabrication Industry Association Vice Director-General Business

Shandong Advanced Materials Industry Association Vice President Business Leaders of the China Nonferrous Metals Industry Association visited Nanshan Aluminium

Shandong Aluminium Industry Association Vice President Business During the Reporting Period Fan Shunke Deputy Secretary

of the Party Committee of the China Nonferrous Metals Indus-

try Association led a delegation to Nanshan Aluminium for

research and exchange. The team visited the aerospace materi-

als 150MN extrusion production line and held discussions with

the Company's management regarding the operational status

of the aluminium industry development trends and current

hot topics jointly exploring pathways to promote high-quality

development in the sector.Nanshan Aluminium actively strengthens collabourative cooperation with government departments industry enterprises and

university research institutions to promote industrial structure optimization and technological advancement contributing to

the high-quality sustainable development of the industry. The Company continues to build a collabourative innovation system

integrating government industry academia and research. It facilitates communication and cooperation channels between

upstream and downstream segments of the industrial chain promotes technical exchange and achievement transformation

and jointly drives green innovation and high-quality development in the non-ferrous metal industry with industry partners.64 Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report Craftsmanship-Driven Quality Manufacturing and Innovation-Powered Development 65

Nanshan Aluminium in collabouration with Harbin Institute of Technology (Weihai)

Collabourative breakthrough in key technologies for high-performance aluminium alloys through indus- has broken through key technologies for the manufacturing of large-sized 7000-series

try-academia-research integration aluminium alloy ring components

Nanshan Aluminium collabourated with universities such as Shandong University and Yantai Nanshan College

to launch a university-industry-research cooperation project on "High-Performance Aluminium Alloy Materials Nanshan Aluminium collabourated with institutions such as Harbin Institute of Technology (Weihai) Innovation

and Precision Forming Manufacturing Technology and Applications of Components." The project focuses on and Entrepreneurship Park Co. Ltd. to conduct research on the key technologies for high-performance precise

the critical material requirements in the field of major national equipment manufacturing. We conducts joint manufacturing of massive 7000-series aluminium alloy ring components.research and development on key technologies involved in the manufacturing of high-performance alumin- During the Reporting Period the project completed research on multi-pass variable path forging and radial-ax-

ium alloy materials and components promotes theoretical innovation and process breakthroughs and estab- ial ring rolling precision forming of large-sized aluminium alloy ring components. It established a stable process

lishes core technologies with independent intellectual property rights. Through joint patent applications we scheme for uniform microstructure refinement and precision forming and successfully manufactured large-

successfully put the research into practice to serve the use in high-end equipment manufacturing sectors such sized 7085 aluminium alloy ring components.as aerospace and China high-speed railway.The project has broken through key technologies including multi-pass variable pathways forging radial-axial

During the Reporting Period the project was evaluated by an expert appraisal committee organized by the ring rolling precision forming and synergistic optimization of deformation heat treatment. It provides material

China Machinery Industry Federation. It successfully resolved critical technical bottlenecks in high-performance support for lightweight manufacturing of high-end equipment and promotes the industrial application of high

aluminium alloy materials and components within China's major equipment manufacturing sector breaking value-added aluminium alloy products.through foreign technological blockades and product embargoes. The overall research achievement has reached

a leading international standard.Highlights of External Industry-Academia-Research Projects

Nanshan Aluminium collabourates with Nanshan University to conduct key technology research and devel-

opment on ultra-thick plates of high-strength and high-toughness 7-series aluminium alloys

The project Development and Indus- The project Key Technologies and Nanshan Aluminium in collaboura-

Nanshan Aluminium collabourated with Yantai Nanshan University to conduct the research project titled "Key trialization of Key Technologies for Industrial Application of Massive Ultra- tion with Yantai Nanshan Univer-

Technology Development for Industrialization of High-Strength and High-Toughness 7-Series Aluminium Alloy High-Quality Aluminium Intermedi- High-Strength Aluminium Alloy Materi- sity and Northeastern University

Ultra-Thick Plates". Focusing on the demand for high-performance aluminium alloy materials in aviation equip- ate Alloy Preparation jointly submitted als for Aviation jointly submitted by was awarded the Second Prize of the

ment the project systematically advanced key technological breakthroughs in alloy composition design clean by Nanshan Aluminium and Beihang Nanshan Aluminium Yantai Nanshan Nonferrous Metals Industry Science

melting fine-grain casting and precision heat treatment. University among others was awarded University the Institute of Materials and Technology Award for 2025 for

the First Prize in Science and Technol- Research of Shandong Academy of its project titled Intelligent Colla-

During the Reporting Period the project completed the development of melt composite purification and degas- ogy of the Nonferrous Metals Industry Sciences and others was awarded the bourative Control and Application

sing as well as impurity removal processes under industrial production conditions. Simultaneously by introduc- for 2025. Second Prize in Science and Technol- of Aircraft Aluminium Plate Produc-

ing electromagnetic field regulation technology sequential solidification and low segregation control of massive ogy of the Nonferrous Metals Indus- tion Processes Based on Industrial

try for 2025. Big Data.slabs were achieved successfully developing high-performance clean fine-grained aluminium alloy slabs.The project addresses the long-standing reliance on imports for ultra-thick high-strength and high-toughness

7-series aluminium alloy plates in China. It focuses on breaking through key technologies to advance the locali-

zation of high-performance aluminium alloy materials for aviation thereby further enhancing China's R&D and Management of Impacts Risks and Opportunities

industrialization capabilities in this sector.To ensure the effectiveness of our management strategies we assess the feasibility and impact of R&D innovation risks and

determine their management priorities based on the assessment results. At the same time for high-priority risk items we

have established targeted management systems and workflows and authorized dedicated teams to regularly monitor and

record risk levels. In addition we are simultaneously implementing risk management measures to minimize the impact of

R&D innovation risks on internal and external stakeholders. For detailed content please refer to "ESG Impact Risk and Oppor-

tunity Management".66 Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report Craftsmanship-Driven Quality Manufacturing and Innovation-Powered Development 67

Metrics and Targets 3.3 Customer Service

Nanshan Aluminium continues to stimulate its R&D innovation to ensure the effective implementation of R&D strategies and

the achievement of R&D strategic objectives. The incentives of the Company's senior management is closely linked to the

progress and outcomes of R&D projects to incentivize their focus on project advancement ensure resource allocation for R&D

initiatives and encourage active participation in R&D work. Nanshan Aluminium focuses on the customer-centric approach continuously innovating service models and enhancing service

quality to deliver efficient professional and attentive services to consistently improve customer experience and satisfaction.R&D Investment By maintaining effective communication channels and strengthening information security and privacy protection we provide

customers with more efficient and convenient service experiences.In 2025 Nanshan Aluminium employed 2001 R&D personnel representing 12.37% of the total Quality Service

workforce with R&D investment reaching 1.311 billion Yuan accounting for 3.79% of revenue. Nanshan Aluminium strictly complies with relevant laws and regulations including the Consumer Rights Protection Law

of the People's Republic of China and internal policies such as the Control Procedures of Processes Related to Customers

Launched 31 new product development initiatives and applied 19 new technologies. After-Sales Service Control Procedures Customer Satisfaction Measurement Procedures and Product Service Management

Regulations thereby continuously improve customer service management system to promote the standardized and normal-

ized operation of customer service processes.We have established and continuously improved diversified customer communication channels including in-person visits

telephone calls written correspondence fax communications video conferences and emails. These channels enable us

to maintain close interaction with customers and promptly understand and respond to their needs regarding order details

delivery progress shipping schedules and payment arrangements. We also conduct regular product recall stimulation drills

Annual Patent Achievements

for products such as can body stock can end stock and aluminium foil in accordance with food safety system management

29 14 requirements. These efforts continuously enhance our product management capabilities and customer service quality thereby In 2025 Nanshan Aluminium was granted new authorized patents including invention patents and sustaining improvements in customer satisfaction.

15 utility model patents. Customer Service Process

A cumulative total of 125 invention patents and 202 utility model patents have been granted. Identification/

Customer Transmission/ Customer Contract/Order Contract/Order

Requirements Confirmation Requirement Approval Implementation

Communication of Customer Review

Requirements

Formulation of National Standards and Industry Standards

In 2025 Nanshan Aluminium participated in the revision of 17 national standards and 6 industry standards Customer Customer Product Process

Satisfaction After-Sales

among which 2 Delivery CommunicationSurvey Service industry standards were primarily drafted.68 Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report Craftsmanship-Driven Quality Manufacturing and Innovation-Powered Development 69

Customer Complaints Satisfaction Survey

Nanshan Aluminium has established and continuously improved customer complaint management mechanism. We strictly In accordance with the Customer Satisfaction Measurement Procedure we conduct annual customer satisfaction surveys

implement internal policies such as the Product Service Management Regulations and After-Sales Service Control Proce- covering product quality delivery timeliness service levels price competitiveness packaging design and logistics transpor-

dures to ensure that customer issues are addressed in a timely and standardized manner. Through diversified communication tation. For projects with low satisfaction scores identified during the investigation the Company collabourates with relevant

channels including on-site visits telephone calls correspondence fax communications video conferences and emails the departments to formulate improvement measures and continuously tracks rectification outcomes. This approach drives the

Company provides rapid responses within 24 hours to all quality concerns raised by customers throughout the entire product resolution of issues at source and steadily enhances customer satisfaction.purchase and usage process ensuring comprehensive quality assurance from pre-sales to after-sales services.In 2025 the Company promptly addressed customer complaints regarding product quality packaging quality and logistics 2025 Customer Satisfaction Survey Results

transportation formulated improvement measures promoted closed-loop management of issues and prevented recurrence

of similar problems. During the Reporting Period the timeliness of complaint handling reached 100%. Flat-rolled Product Division: Customer satisfaction survey score of

Customer Complaint Service Process 99.26 points.Civil Materials Division: Customer Satisfaction Survey Score of

Upon receiving customer feedback or complaints regarding product quality the Company comprehensively gathers

relevant information through telephone calls emails WeChat and on-site visits. This includes the actual perfor- 98.35 points.mance of the materials under complaint patterns of issue occurrence performance of materials from the

same batch and the status of materials from other suppliers during the same period providing a basis for subse-

quent analysis.Responsible Marketing

Nanshan Aluminium adheres to responsible marketing concept. By integrating market environment changes and the actual

After collecting relevant samples and photographs they are promptly transferred to the production and technical conditions of various products we regularly formulate and continuously optimize annual marketing plans and policies that

departments for investigation and analysis. Subsequently a handling plan is negotiated with the customer based

on the findings of the investigation. Where necessary the Company will arrange on-site tracking of the secondary align with the Company's development. Meanwhile the Company actively promotes marketing culture and works with custom-

use of materials to further investigate the cause or verify the solution. ers and all stakeholders to foster a fair and transparent marketing environment.Responsible Marketing Management Initiatives

Upon finalizing the disposal plan the Company will formulate a disposal agreement which shall be submitted to

the customer for confirmation following internal approval. In cases involving returns or exchanges the logistics and

warehousing department will be notified simultaneously to arrange for return transportation. Upon return of the The Company conducts specialized training for all marketing personnel on a monthly basis with a focus Responsible

goods quality control and warehouse personnel shall re-inspect the weight and relevant conditions and process on enhancing the professional capabilities and comprehensive literacy of the marketing team in product Marketing Training

them in accordance with the agreement. knowledge project management customer management institutional policies and business etiquette.During business operations the Company conducts internal audits and inspections focusing on the

For other customer requirements such as material performance optimization specification adjustments or new Responsible implementation of marketing policies management policies sales contracts and codes of conduct

product development sales personnel will relay the relevant requirements to the technical department. The Techni- Marketing Auditing promptly correcting identified risks.cal Department reviews requirements and upon approval organizes verification trials. The Sales Department colla-

bourates with the Product Service Department to monitor material usage and improvement outcomes submitting

feedback to the Technical Department to further determine subsequent production plans.To further strengthen marketing compliance management we continue to implement policies such as the Integrity Manage-

ment Procedures Marketing Management System and Salesperson Code of Conduct to regulate the conduct of relevant

Product Recall business personnel. The subsidiaries continue to enhance the standardization of marketing management through inter-

nal self-inspection and self-correction while cooperating with the Company's audit department to conduct supervision and

Nanshan Aluminium adheres to the management concept of "prevention first rapid response" continuously implementing inspection. The Company requires sales personnel to strictly adhere to and sign Integrity Agreement during business cooper-

and improving product recall and risk response mechanisms. The Company continuously monitors product quality to minimize ation. For any violation or disciplinary breach relevant responsibilities shall be investigated and pursued in accordance with

potential quality risks. Upon identifying product issues the Company promptly respond to customer feedback timely confirm applicable laws and regulations based on the severity of the circumstances.and trace the production batches and distribution pathways of relevant products formulate clear solutions and compensation

measures and effectively safeguard consumer rights and brand reputation. During the Reporting Period Nanshan Alumin- In addition the Company has established and implemented a marketing training program organizing specialized training for

ium did not experience any product recalls due to product quality issues or customer complaints. marketing personnel on a monthly basis to continuously enhance the professional ethics and capabilities of the sales team.Harmonizing with Nature

Co-creating a New Chapter

for the EcosystemNanshan Aluminium has internalized the concept of “harmonious coexistencesafeguarding clear waters and green mountains” as a core corporate strategy

steadfastly advancing the Company's low-carbon transformation. We continuously

enhance our environmental management capabilities through measures such as

reducing energy consumption and lowering GHG emissions. In our domestic and

international operational layout we strictly comply with local environmental

protection laws and regulations proactively align with and respond to international

climate action initiatives and strive to achieve synergy and balanced development

between production operations and the natural ecosystem. We are committed to

becoming a model for green development in the aluminium industry.72 Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report Harmonizing with Nature Co-creating a New Chapter for the Ecosystem 73

4.1 Responding Climate Change

Nanshan Aluminium fully recognizes that systematically identifying and effectively addressing the risks and opportunities Nanshan Aluminium's Organizational Structure for Responding Climate Change

arising from climate change constitutes a critical foundation for supporting the Company's global development strategy and

enhancing its long-term competitiveness. We actively align with the global low-carbon transformation trend. Referencing Governance Governance Reporting

the relevant requirements of China's National Climate Change Adaptation Strategy 2035 we integrate climate change issues Hierarchy Body Functions Frequency

into the Company's governance structure and strategic planning continuously improving the climate-related management * The highest ESG decision-making body reviews and approves the climate

system and action mechanisms. As a member of the Aluminium Stewardship Initiative (ASI) Nanshan Aluminium is dedicated change strategy and major targets.to promoting green and low-carbon development actively serving a demonstration role in the industry and facilitating * Identification and Assessment Results of Climate Risks Impacts and Oppor-

high-quality sustainable transformation of China's non-ferrous metal sector. Decision- Board tunities

Making /

Level of Directors * Decision-making on the allocation of key resources and major investment

directions

Governance * Oversight of the implementation of climate change response and carbon

reduction initiatives

Nanshan Aluminium has established a three-tier climate governance structure comprising the Board of Directors the Sustain- Sustainability

ability Committee and the Control Center to ensure that the Board and management provide supervision guidance and * Supervise all subordinate units and organize the implementation of the (ESG) ISO 50001 Energy Management System ISO 14064 Greenhouse Gas (GHG)

resource support for relevant work. Committee Emission Standard and ISO 14067 Product Carbon Footprint Standard.Management Energy Semi-

We continue to implement a regular reporting mechanism to ensure that the Sustainability Committee and its Energy Conser- * Oversee work related to production safety management occupational Level Conservation annually

vation and Carbon Reduction Working Group are promptly informed of the latest progress in the Company's climate govern- health "three wastes" emissions and green manufacturing.and Carbon

ance and low-carbon transformation. We also submit the climate strategy carbon reduction targets and the advancement Reduction * Responsible for implementing various measures to address climate change

and achieve energy conservation and carbon reduction.of key initiatives to the Board of Directors for review as appropriate ensuring that relevant major matters receive sufficient Working Group

discussion and decision-making support. * Execute daily management and on-site inspections for climate change

mitigation and energy conservation.To advance the implementation of climate-related initiatives under the overall management of the Control Center we have * Establish and implement phased targets while conducting periodic super-

incorporated the achievement of energy conservation and carbon reduction targets into the performance appraisal system. Executive vision and assessment of relevant work across all units.These targets are linked to the performance evaluations of senior management within the Energy Conservation and Carbon Control Center MonthlyLevel * Organize data collection ledger management and compliance verification

Reduction Working Group and the heads of all subsidiaries thereby strengthening accountability and execution. to ensure adherence to ISO 50001 and ISO 14064 requirements.* Assist in carrying out carbon inventory carbon accounting and carbon

footprint-related work.74 Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report Harmonizing with Nature Co-creating a New Chapter for the Ecosystem 75

Strategy Nanshan Aluminium Climate Risk List

Nanshan Aluminium regularly conducts climate risk and opportunity identification and continuously optimizes development Climate Risk Description Time Financial Risks Horizon Business Impact Impact Risk Response Measures

strategy and risk management measures. Against the backdrop of green transformation and the need to address climate change

we actively implement energy-saving and carbon-reduction management measures to advance sustainable development. Increased

operating

Risk Opportunity and Impact Analysis Customers in automotive sheet We need to costs * Based on continuous carbon

As an energy-intensive industry aluminium processing and manufacturing face profound impacts from climate change on Market and packaging Medium carry out

footprint certification for

Demand materials require - term carbon footprint Decreased core products the company

sector development and the Company's operations. To enhance capacity to address climate change Nanshan Aluminium for Carbon the company Long - assessments and revenue collaborate with upstream and

Footprint to conduct term lifecycle analysis (if products downstream partners to develop continues to conduct assessments of climate-related risks and opportunities gradually integrating the identified key risk

factors and development opportunities into the Company's long-term strategic planning. product lifecycle for key products.lack relevant carbon reduction plans cover-

assessments. certifications ing the entire product lifecycle.and lose

Nanshan Aluminium Climate Change Risk Identification & Response Measures orders)

Nanshan Aluminium Climate Change Opportunity Identification & Response Measures

Nanshan Aluminium Climate Risk List

Climate Time Financial

Risks Risk Description Horizon Business Impact Impact Risk Response Measures Nanshan Aluminium Climate Opportunity List

Climate Opportunity Time Business

Opportunities Description Horizon Impact Financial Impact

Opportunity Response

Measures

* We have been certified

* Fulfill environmental protection Increased R&D through ASI performance Extreme weather

such as typhoons Extreme weather responsibilities and minimize

standards and supply

Severe may cause adverse impacts on ecology and Increasingly

expenditure chain monitoring to ensure

Natural and snowstorms downstream

Low-carbon

equipment climate. products Higher operating that our products in China

Factors (e.g. may affect damage Development customers Medium meet COC requirements

Typhoons our business or disrupt Asset * Establish an emergency response of Low- will require - term

will attract costs

high- quality from raw materials to

Tsunamis operations in Long - production and impairment Emission low-carbon Long - finished products offering

Extreme specific regions term the supply chain; Increased

command center and develop customers Increased revenue

or globally and operational emergency plans conduct regular

Products aluminium term

processing who focus on

(if successful in aluminium that complies

Heat drills and equip all plants with sustainability. developing low- with ASI standards.Extreme may also impact Extreme heat may costs flood bags and non-slip sandbags. products.our suppliers carbon products will Cold leading to cause heatstroke capture market share)

* Continuously reduce CO2

Wildfires) and affect * Dynamically set up safety stock emissions in the aluminium operational employee safety. and strengthen emergency casting process.disruptions. supply capabilities of suppliers.* We actively communicate

with downstream customers

Emphasis to recycle external scrap for

on resource Resource Increased investment smelting. The 100000-ton

recycling recycling recycled aluminium project

* We follow ISO 14001 will drive the will reduce Decreased operating has been successfully

The Donghai Environmental Management Resource company Long - reliance on costs (once recycling completed and put into use.With countries Thermal System and ISO 50001 Recycling & to carry out term raw materials technology for scrap continually Power Plant is Energy Management System Utilisation equipment and improve aluminium matures * Simultaneously 100% of strengthening included in the to systematically manage modifications resource it may reduce raw internal scrap is recycled environmental Short government's and advance greenhouse and actively utilisation material procurement and all waste generated in regulations - term

the aluminium carbon quota

Fines risk gas emission targets and promote efficiency. costs) the production of aluminium

Laws & industry faces Medium management; Increased implementation plans

recycling. sheets and foils is recycled

Regulations - term increasing and re-melted back into the increased operating

pressure from Long - The electrolytic the proportion of

furnace.environmental term aluminium

costs

clean energy. * We actively explore new

protection and industry also

carbon tariffs faces stricter * Pay attention to changes in

technologies new equip-

carbon emission laws and regulations in Energy-saving We continue Increased investment ment new materials and (CBAM). limits. various countries and and emission to carry out new processes for energy

Energy Saving reduction process Reduced operating respond promptly. management increasing

& Emission renovations Long - improvements costs (in the long term the proportion of green

Reduction will improve term and increase after technological electricity.our energy the proportion improvements

efficiency. of new energy. energy procurement * Transparently disclose our expenses will decrease) progress towards achieving

greenhouse gas emission

reduction targets.76 Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report Harmonizing with Nature Co-creating a New Chapter for the Ecosystem 77

Management Strategy Nanshan Aluminium continues to advance GHG emission reduction efforts in accordance with its internal Greenhouse Gas

Through systematic assessment and in-depth analysis Nanshan Aluminium continues to identify and evaluate the potential impacts of Emissions Targets and Implementation Plan while continuously enhancing its capacity to address Climate change Risk. We

climate change-related risks and opportunities on its operations. Through conducting GHG inventories and product carbon footprint have targeted specific measures focusing on carbon reduction in electricity direct emission cuts and resource recycling

management we understand the status of our Company's GHG emission management and continue to advance decarbonization integrating these emission reduction initiatives into every stage of production and operations. By increasing the proportion of

actions in conjunction with low-carbon development planning. At the same time Nanshan Aluminium has reduced energy consump- renewable energy usage and implementing energy-saving technical transformation measures we are committed to advanc-

tion and carbon emissions during production by advancing energy-saving technology upgrades and optimizing energy management ing the achievement of GHG emission control targets.while actively seizing development opportunities brought about by low-carbon transformation.Carbon Reduction Implementation Plan

Carbon Footprint Accounting & Product Carbon Footprint

Given that electricity is the primary energy source for Nanshan Aluminium's production and operations we continue to advance

Nanshan Aluminium annually engages professional institutions to assist in energy-saving retrofits of power equipment and optimize production processes committed to reducing energy consumption

conducting greenhouse gas inventories. In accordance with the Management and related carbon emissions during production. Meanwhile the Company focuses on green power procurement and renew-

Policy for Greenhouse Gas Inventory the Company systematically assesses able energy application to continuously advance the low-carbon transformation of electricity. While ensuring production

the carbon emission status of its subsidiaries. Furthermore in compliance efficiency and operational stability we continuously optimize our energy structure and explore more environmentally friendly

with the disclosure requirements set forth by the ASI Nanshan Alumin- and sustainable energy supply models to provide strong support for the Company's green and low-carbon development.ium regularly discloses information regarding greenhouse gas emissions

and energy consumption. Furthermore the Company strengthens carbon

emission management and the implementation of emission reduction Green Electricity Procurement

measures through data organization and a continuous tracking and verifica-

tion mechanism ensuring the effective execution of greenhouse gas manage- In accordance with industry and government

ment plans and decarbonization mechanisms. During the Reporting Period requirements we actively enhance the

we continued to implement ISO 14064 organizational carbon verification. The proportion of green electricity in our produc-

verification boundary is as follows: tion processes by purchasing Green Electric-

ity Certificates. This initiative accelerates the

* Alumina Company * Aluminium Rolling Company absorption of renewable energy within the

* Electrolytic Aluminium Company * Aluminium Foil Company local grid and increases the utilization rate

* Medium-thick Plate Company * Aluminium Profile Plant of clean energy. During the Reporting Period

Nanshan Aluminium ISO 14064

* Donghai Thermal Power Plant Organizational Carbon Emission Assessment the electrolytic aluminium company success-

fully acquired 100000 green certificates repre-

Nanshan Aluminium actively responds to the global trend of GHG emission senting 100 million kilowatt-hours of green

reduction and the demand from downstream customers for low-carbon products continuously advancing carbon emission electricity. In addition we will procure 2.25

management at the product level. The Company engaged a third-party organization to conduct carbon footprint accounting million Green Energy Certificates (GEC) for the

and verification for multiple products. In 2025 the Company completed carbon footprint verification for a total of 24 products. 2025 fiscal year of which 2.1 million GECs will

New verifications covered recycled aluminium and other products providing strong support for the development of low-car- be utilized in the production of electrolytic Green Electricity Certificate

bon aluminium products and the construction of a green supply chain. aluminium products.Subject of

Certification ISO 14067 Product Certification

Electrolytic

Aluminium Electrolytic aluminium liquid; Aluminium ingots for remelting

Company

Beverage can body stock can end stock aluminium foil stock hot

Aluminium

rolled coil Heineken beverage can body stock Heineken beverage

Rolling Company

can end stock

Aluminium Foil Packaging Foil Battery Foil QUALITYFOIL Packaging Foil SIG

Company Combibloc Packaging Foil Huhtamaki Packaging Foil

5-Series aluminium automobile sheet 6-Series aluminium automo-

Medium-thick

bile sheet aluminium aerospace sheet/plate recycled aluminium

Plate Company

aluminium aerospace profiles

Aluminium alloy architectural profiles aluminium alloy industrial

Aluminium

profiles European-style greenhouses Norwegian tents Norwegian

Profile Plant Nanshan Aluminium ISO 14067 Product

tents (new) offshore platforms Carbon Footprint Certificate78 Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report Harmonizing with Nature Co-creating a New Chapter for the Ecosystem 79

Renewable Energy Generation Denitrification dilution air heat exchange retrofit and precise ammonia injection retrofit projects at Donghai Thermal Power Plant

To enhance the operational efficiency of the denitrification system and reduce energy consumption our Donghai

Nanshan Aluminium continues to advance photovoltaic projects and gradually increase the proportion of renew- Thermal Power Plant implemented systematic technical upgrades for Units #1 and #2. Key measures included

able energy generation. During the Reporting Period we utilized idle parking lot space to construct photovoltaic optimizing the original electric heating method to utilize flue gas waste heat and advancing precise ammonia

carports without acquiring new land achieving a multifunctional integration of parking power generation and injection control. By optimizing heating Pathways and ammonia injection strategies the overall operational

sun and rain protection. In 2025 we continued to advance photovoltaic deployment across all production sites efficiency of the system was effectively improved.installing 101.6 MW photovoltaic power generation equipment. The cumulative installed capacity increased

by 5.6 MW compared to the previous year. During the Reporting Period the photovoltaic system generated a Upon completion of the retrofit the project achieved significant results in energy conservation consumption

cumulative total of 116 million kilowatt-hours for the year. This is expected to save approximately 41700 tonnes reduction and operational optimization:

of standard coal and reduce CO2e emissions by approximately 115600 tonnes.By replacing electric heating with waste heat

recovery from flue gas annual electricity Through precise ammonia injection control annual

consumption is reduced by approximately urea consumption is reduced by over 40 tonnes.

2.7 million kilowatt-hours.

On this basis the system operating efficiency has been further improved. The fan load decreased significantly

and the combined current of the induced draft and forced draft fans dropped by approximately 30A:

Donghai Thermal Power Aluminium Profile Plant Nanshan Park

Annual electricity consumption savings of The maximum evaporation rate has been increased

approximately 2 million kWh. from 375 tonnes/hour to 410 tonnes/hour.Energy Equipment Management Through the aforementioned measures we further achieved synergistic optimization of energy conservation

Nanshan Aluminium strictly complies with the Energy Conserva- emission reduction pollution control and equipment operational efficiency during the Reporting Period

tion Law and the ISO 50001 energy management system standards. providing strong support for the Company's advancement in clean production and green low-carbon Trans-

The Production Equipment Management Department centrally Nanshan Aluminium Production Equipment formation.coordinates and supervises energy conservation management Management Department

across all subordinate units to ensure the effective implementa- All subordinate production and

tion of energy-saving and emission-reduction measures in every operation units' energy conservation team

leader and deputy leader

production stage. During the Reporting Period core production and

operational units including Donghai Thermal Power Plant and the Heads of all functional departments and

workshops

Alumina Company successfully passed external audits of ISO 50001

and have obtained relevant certification.ISO 50001 Energy Management System Certificate80 Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report Harmonizing with Nature Co-creating a New Chapter for the Ecosystem 81

Donghai Thermal Power Plant Unit #2 Backpressure Modification Project Heat Exchange Process Optimization and Technical Transformation Project

To further enhance energy efficiency and reduce steam consumption Nanshan Aluminium's Finishing

In accordance with the Shandong Province Coal-fired Power Industry Transformation and Upgrading Action Plan Workshop No. 1 systematically upgraded the heat exchange methods for the #2 #3 and #4 tension leveling

(Lu Zheng Ban Zi [2023] No. 102) by 2025 coal-fired units below 300000 kW will be largely phased out across the lines and the cleaning section of the degreasing line. The project replaced the original external plate heat

province ensuring stable power and heat supply except for back-pressure heating units. To prevent the shutdown exchanger with an internal heating tube configuration. By arranging rows of heating tubes within the tank

of the 150000 kW unit at Donghai Power Plant which would impact the Company's downstream industries' electric- steam directly heats the tank solution effectively reducing heat transfer losses and significantly improving

ity and steam demand we plan to retrofit the 150000 kW unit at Donghai Power Plant for back-pressure operation. heat exchange efficiency.The total investment for this project is RMB 9.23 million.Upon completion of the retrofit steam utilization efficiency was significantly improved. Based on the cumula-

Renovation Results of Increased tive production of 83565 tonnes from three tension leveling lines and one degreasing line from January to

Objectives Retrofitting Efficiency Overall Benefit September 2025 approximately 0.07 tonnes of steam are saved per ton of coil. The project is expected to save

Enhance steam Steam supply Steam supply benefit The annual net approximately RMB 1.78 million in steam costs annually. Combined with optimizations in labour and material

supply capacity capacity +170 T/h + RMB 35.08 million income is approx- costs the three tension leveling lines and one degreasing line will achieve a total annual cost saving of approx-

Ensure steam Total steam supply Coal saving benefit: imately RMB imately RMB 2.86 million.supply for alumina increased by + RMB 20.57 million 26.05 million

production 700000 tonnes82 Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report Harmonizing with Nature Co-creating a New Chapter for the Ecosystem 83

In 2025 Nanshan Aluminium conducted a total of 31 energy conservation and emission reduction training sessions for employ- Impacts Risks and Opportunities Management

ees including Energy Laws and Regulations Training and Energy Target and Indicator Training. The training content covers

energy laws and regulations target-setting methodologies management of energy metering instruments and techniques for Nanshan Aluminium has integrated climate change into corporate risk management system and strengthened climate manage-

daily energy consumption control. It aims to enhance employees' energy management capabilities and ensure the success- ment by referring to internal risk control policies such as the Risk and Opportunity Control Procedures. Through a refined

ful achievement of energy conservation and emission reduction targets. process for identifying monitoring and managing climate change risks and opportunities we comprehensively identify poten-

tial climate-related risks and implement targeted measures to mitigate their specific impacts on the Company's operations.These measures include obtaining product carbon footprint certification improving accident emergency response policies

and launching energy conservation and consumption reduction projects. In addition we strive to seize climate-related oppor-

tunities by developing high-quality cascading utilization projects for recycled aluminium and actively applying clean energy.We are committed to positioning the Company as a green benchmark enterprise in the aluminium processing industry and

contributing to the sustainable development of the global aluminium sector.Metrics and Targets

Greenhouse Gas Metrics and Targets

Energy Conservation and Emission Reduction Training Based on a comprehensive analysis of the Company's overall emission status and extensive professional consultation

Nanshan Aluminium continues to implement Greenhouse Gas Emission Targets and Implementation Plan. This plan estab-

lishes annual emission reduction targets for alumina aluminium rolling medium and thick plates and aluminium foil defines

Honours and Recognition carbon footprint reduction goals across the full lifecycle of electrolytic aluminium products and details specific pathways and

As of the end of this reporting period we have actively participated in and completed the climate change questionnaire disclo- measures to achieve the established targets.sure for the Carbon Disclosure Project (CDP) for four consecutive years. In the 2025 evaluation the Company received a B-level

Furthermore during the Reporting Period Donghai Thermal Power Plant fulfilled its obligations by settling 7.2 million tonnes

rating. In the future we will continue to benchmark against industry-leading practices and use disclosure requirements from

of carbon allowances in accordance with the requirements of the pilot carbon market on schedule and completed 0.48 million

international mainstream frameworks such as CDP as key guidance to further enhance Nanshan Aluminium's core competi-

tonnes of carbon trading by the end of the Reporting Period. The Company did not participate in carbon credit transactions

tiveness in the fields of green low-carbon development and sustainable development.for China Certified Emission Reductions (CCER).84 Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report Harmonizing with Nature Co-creating a New Chapter for the Ecosystem 85

Emission Targets Emission Indicators16 Unit 2023 2024 2025

Achieve Carbon Peaking by 2030 Achieve Carbon Neutrality by 2050 GHG Emission Indicators (Aluminium Products)

Total GHG emissions

Product Emission Intensity Target (Domestic) tCO2e 9087064 8455178 5224467(Scope 1 + Scope 2)

GHG Emissions

2023 Target Emissions 2024 Target Emissions 2025 Target Emissions 2026 Target Emissions tCO2e 1534661 1517431 983587Unit (Scope 1)

(tCO2e/t Product) (tCO2e/t Product) (tCO2e/t Product) (tCO2e/t Product)

GHG Emissions

tCO2e 7552403 6937747 4240880

Alumina Company 1.85 1.83 1.81 1.80 (Scope 2)

Carbon Emission Intensity

Aluminium Foil Company 1.07 1.06 1.05 1.04

Alumina Company tCO2e/t Product 1.90 2.01 1.70

Aluminium Rolling

0.780.770.760.75

Company Aluminium Rolling

tCO e/t Product 0.79 0.74 0.76

Company 2

Medium-thick

1.89 1.88 1.87 1.86 Medium-thick

Plate Company tCO2e/t Product 1.89 1.63 1.72Plate Company

Electrolytic

Carbon Footprint of Electrolytic Aluminium Products (Domestic) tCO e/t Product 16.64 15.99 7.75Aluminium Company 2

Aluminium Foil

2023 Target Emissions 2024 Target Emissions 2025 Target Emissions 2026 Target Emissions tCO2e/t Product 1.09 1.07 0.95

Indicator Company

(tCO2e/t Product) (tCO2e/t Product) (tCO2e/t Product) (tCO2e/t Product)

Product Carbon GHG Emission Indicators (Electricity)

Footprint from Bauxite to 16.64 16.44 16.24 15.99 GHG Emissions of

Electrolytic Aluminium Donghai Thermal

tCO

Power Plant 2

e 9656270 8060000 7616432

(Approximate)

GHG Emission Indicators (Overseas Factories)

Total GHG Emissions

U.S. Plant Factory tCO2e 34559 36839 30689

Indonesia Plant

tCO2e 1909740 2070320 2636004Factory

Carbon Emission Intensity

U.S. Plant Factory tCO2e/t Product 0.45 0.46 0.45

Indonesia Plant

tCO2e/t Product 1.0117 0.98 1.01Factory

16: The data scope covers the Company's Electrolytic Aluminium Company Alumina Company Aluminium Rolling Company Aluminium Foil Company and

Medium-thick Plate Company. Carbon emissions related to the power industry and those from overseas factories are presented separately in the table below.

17: In 2023 the Indonesian factory reviewed and expanded the scope of total GHG emissions and emission intensity statistics based on actual produc-

tion and operational conditions. For the first time emission sources such as coal-to-gas were comprehensively included in GHG and energy statistics and

management. The Company will continue to conduct GHG and energy management work based on this scope.86 Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report Harmonizing with Nature Co-creating a New Chapter for the Ecosystem 87

In 2025 the achievement status of emission reduction targets for GHG emissions per unit of product across all branches of

Nanshan Aluminium is as follows: Energy Consumption

Expected Carbon Emission Actual Performance in 2025 Progress Energy Consump-

Subsidiary Reduction Target for 2025 19 Unit 2023 2024 2025

(≤tCO e/t product) (tCO2e/t product) Completion

tion Indicators

2

Indirect Energy Consumption

Alumina Company 1.81 1.70 Achieved

Aluminium Rolling Purchased Electricity Kilowatt-hour 2127629400 2195841200 2545829400

0.76 0.76 Achieved

Company

Medium-thick

1.87 1.72 Achieved Purchased Steam Million kilojoules - - -

Plate Company

Aluminium Foil Company 1.05 0.95 Achieved Direct Energy Consumption

Electrolytic Aluminium

12.55 7.75 Achieved

Company Diesel Tonnes 4011 4728 2957

In 2025 the completion status of Nanshan Aluminium's carbon footprint reduction targets for electrolytic aluminium products Raw Coal Tonnes 5050233 4084426 3873473

is as follows:

Natural Gas 10000 cubic meters 27163 29356 13697

Expected Carbon Emission

Subsidiary Reduction Target for 2025 Actual Performance in 2025

Progress

(≤tCO e/t product) (tCO2e/t product) Completion Comprehensive Energy 2 20 Ton of standard coal 3789111 3541851 4529679Consumption

Product Carbon Footprint

from Bauxite to 16.24 10.98 Achieved Procurement of Green Kilowatt-hour 20000000 200000000 225000000

Electrolytic Aluminium Electricity Energy

Self-generated and self-

Kilowatt-hour 69542205 107000000 120000000

Energy Management Metrics and Targets consumed solar power energy

18

As of the end of the Reporting Period

The ISO 50001 Energy Management System coverage rate for our manufacturing subsidiaries 19: The data scope covers the Company's major production facilities in China including Donghai Thermal Power Plant Nanshan Electrolytic Aluminium

excluding the newly established Recycled Aluminium Company is 100%.18 Company Aluminium Profile Plant Alumina Company Aluminium Rolling Company Aluminium Foil Company Aluminium New Material Company and

Medium-thick Plate Company.

20: Based on the ISO 50001 energy management system we calculated the Company's total annual energy consumption (unit: tonnes of standard coal).

18: This data scope currently includes only our subsidiary operating locations in Chinese Mainland. We will continue to strengthen the operation and

management of our overseas subsidiaries promote energy management strictly in accordance with the ISO 50001 Energy Management System and timely

include the coverage rate of their energy systems within the scope of the Company's internal data statistics.88 Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report Harmonizing with Nature Co-creating a New Chapter for the Ecosystem 89

Production Site

4.2 Environmental Management Environmental

Management

Nanshan Aluminium continues to refine its environmental management system. Relying on a full-process pollutant control Implementation of Discharge of exhaust gas

mechanism the Company has established standards covering wastewater treatment flue gas purification solid waste classi-

fication and hazardous waste management. These measures ensure that all operational stages comply with local regulations pollutant discharge Five Key and wastewater meets

thereby minimizing the environmental impact of production. permit management Performance compliance standards

Indicators for

Governance Environmental Assessment

Nanshan Aluminium has established a broad environmental management system. We strictly comply with environmental

management laws and regulations in operational jurisdictions and have established a series of internal policies including the

Environmental Protection Management Measures and the Nanshan Alumunium Environmental Information Statutory Disclo- Environmental Standardized Management

sure Policy to guide Nanshan Aluminium's environmental management work. archives are complete of Solid Waste

We have established a three-tier governance structure with an ESG Committee composed of the Chairman and senior manage- and well-maintained

ment serving as the highest decision-making body responsible for the overall planning and decision-making regarding environ-

mental management matters. The ESG Committee has established a Safety and Environmental Protection Working Group to Strategy

specifically undertake the execution and supervision of relevant work ensuring that all environmental protection measures

To continuously enhance its environmental management capabilities Nanshan Aluminium systematically identifies and

are effectively implemented.assesses environmental-related risks and opportunities thoroughly analyzes the potential impacts on operations and financial

Nanshan Aluminium Environmental Management Structure performance and formulates targeted management measures based on findings. Such measures further strengthen environ-

mental management capabilities and provide support for the steady development and sustainable operations of the Company.Reporting Analysis of Risks Opportunities and Their ImpactsHierarchy Governance Body Function Frequency

* As the highest decision-making body it determines the environmental

Decision management development strategy. Nanshan Aluminium Environmental Management Risk List

/

Making Board of Directors * Resource Allocation Decision Environmental

* Oversee the implementation of environmental management initiatives Management Risk Description Time Period Business Impact Financial Impact Risk Response Measures

Risk

* Review environmental policies regulations standards trends and

Sustainability (ESG) stakeholder requirements; propose environmental management objec- * Establish a dynamic regulatory

Committee Safety tives to the Board of Directors and formulate an environmental manage- Globally stri- Compliance and monitoring mechanism

Management and ment policy. Twice a year cter environ- p e r f o r m a n c e * Environmen- * Implement management meas-

Environmental * Supervise and guide all units in the management of three-waste

mental regula- Short- costs have risen; tal fines ures in response to compliance tions may lead Medium-

Protection emissions life cycle assessment and green manufacturing while imple- Compliance to increased and non-compliant * Increase in

requirements

Working Group menting ISO 14001 environmental system management. costs or produ- Long-term emissions may re- Renovation * Conduct environmental regula-

ction stoppages sult in production Costs tion training for all employees.* Supervise all units and lead the management of waste discharge (three for rectification. interruptions. * Proactively and continuously re-

wastes) life cycle assessment and green manufacturing. duce emissions

Executive Department * Implement ISO 14001 environmental management system Weekly Report

of Emergency The Company * Decompose management objectives and supervise relevant work of faces a class-ac-

Management production units through assessments conducted over different cycles. tion lawsuit ini- Legal disputes * Li t i g a t i o n

tiated by the sur- have resulted in Expenses * Install online monitoring equip-

rounding com- Short- work stoppages * Compensa- ment

Nanshan Aluminium conducts environmental management work in accordance with the Environmental Protection Manage- Environmental munity of its Medium- Litigation and for rectification tion Expend- * Establish a communication

ment Measures focusing on eight core management contents and five key performance indicators. The Company regularly operational lo- or necessitated iture for Sur- mechanism with surrounding cations due to Long-Term co m p e n s a t i o n rounding Re- communities.carries out detailed on-site inspections and integrated assessments of all its subsidiaries. The relevant assessment results potential en- expenditures. sidents

are linked with the senior management performance appraisal system to promote the implementation of environmental v i r o n m e n ta l

pollution.management responsibilities.90 Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report Harmonizing with Nature Co-creating a New Chapter for the Ecosystem 91

Nanshan Aluminium Environmental Management Opportunity List Target

Environmental Management

Opportunity Opportunities and Risks

Management Time Period Business Impact Financial Impact Environmen-

Description Mitigation Measures

Opportunities tal Incident

Production

Management Managemen

* Regularly disclose

information through

Recognition of We focus on environ- ESG Reporting and

environmental mental policies and * Revenue growth official website public Eight Dimensions of Performance Equipment

awards from innovations in environ- driven by an in- disclosure to enhance the Environmental

the government mental technology to crease in orders the Company's en-

Management Management

Short- Management System

Brand or acknowledg Medium- enhance environmental * Obtain tax incen-

vironmental informa-

Reputation ment from cus- and performance earning tives or govern-

tion disclosure and

tomers due to Long-Term recognition from cu- ment environ-

strengthen the ESG

o u t sta n d i n g stomers for our brand mental protec- brand image. Indicator Technology

environmental reputation and secur- tion funding * Actively respond to Management Management

management ing government finan- support environmental policies

practices. cial support. and promote green

production and sustain- Standardization

able operations. Management

Management Strategy

Nanshan Aluminium continuously refines its environmental management framework based on the ISO 14001 environmen- Normalized Environmental Management

tal management system and regularly engages third-party professional institutions to conduct environmental management

audits and provide guidance ensuring the effectiveness of environmental management work. Concurrently the Company Nanshan Aluminium emphasizes ecological environmental protection. We regularly conduct detailed inspections of pollu-

conducted environmental management training and emergency drills for employees to continuously enhance their environ- tion control facilities and online monitoring equipment in each workshop to ensure the effective collection and compliant

mental awareness and emergency response capabilities ensuring the effective implementation of all environmental manage- disposal of pollutants thereby fully guaranteeing the implementation of environmental requirements.ment measures in daily operations. During the Reporting Period our key initiatives regarding emissions and waste water resource management and ecosystem

Environmental Management System protection are detailed in the "Protecting Nature" section.Nanshan Aluminium adheres to the environmental manage- We are dedicated to addressing the impact of pollutant emissions on local communities and residents. For any concern that

ment policy of "complying with regulations protecting the community members raise we will promptly establish a dedicated task force to conduct an in-depth investigation. Upon

environment saving energy and reducing consumption and confirmation of any non-compliance corrective measures will be implemented immediately and relevant information will

continuous improvement" and strictly fulfills its environmen- be dynamically communicated to the residents. During the Reporting Period no significant adverse impacts on local commu-

tal management responsibilities. We refer to the ISO 14001 nity members and other groups caused by pollutant emissions occurred. All feedback regarding environmental protection

environmental management system and clarify its eight was effectively and promptly addressed.dimensions to conduct strict internal management.The Company regularly engages professional third-party institutions as environmental stewards to conduct detail on-site

During the Reporting Period we successfully passed the environmental audits of its subsidiaries—including the Alumina Company Electrolytic Aluminium Company Aluminium

external audit for our ISO 14001 environmental management Rolling Company Medium-thick Plate Company Aluminium Foil Company Aluminium Profile Plant Aluminium New Material

system certification and completed the certificate renewal Company and Recycled Aluminium Company — based strictly on applicable laws and regulations at their operational locations.process. Currently the Company's environmental management These audits are performed at weekly monthly quarterly and annual frequencies.system coverage rate is 87.5%.92 Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report Harmonizing with Nature Co-creating a New Chapter for the Ecosystem 93

Environmental Protection Training

The Electrolytic Aluminium Company is advancing the creation of Level A environmental performance

Nanshan Aluminium continues to conduct specialized environmental training and emergency drills continuously enhancing

the Company environmental management capabilities. The Company is committed to implementing environmental princi-

The Electrolytic Aluminium Company is actively advancing the creation of Class A environmental performance ples and strengthening employees' sense of responsibility for environmental protection ensuring that relevant groups carry

for electrolytic aluminium enterprises. During the Reporting Period the Company invited the Yantai Municipal out environmental work in accordance with applicable regulations.Ecology and Environment Bureau and industry experts to conduct verification and assessment of the produc-

tion site in accordance with the Grade A enterprise evaluation criteria and provided rectification recommenda-

tions. Currently the Company is advancing process optimization and equipment upgrades based on assessment Nanshan Aluminium Conducted Environmental Protection Training

recommendations and plans to apply for Level A environmental performance enterprise certification in 2026.During the Reporting Period Nanshan Aluminium

organized 12 environmental protection training sessions

monthly for its subsidiaries including the Aluminium

Profile Plant the Electrolytic Aluminium Company Flat-

Rolled Product Division and the Alumina Company. The

training covered environmental laws and regulations

standardized management of hazardous waste submis-

sion of pollution discharge permit execution reports

and operation management of environmental facilities.Emergency Management System Honours and Recognition

To effectively respond to sudden environmental incidents the Company has established a structured environmental emergency Nanshan Aluminium has joined the Shandong Province "Zero-Waste City" initiative to continuously reduce waste discharge

management system. During the Reporting Period each plant site prepared and implemented emergency plans for sudden levels and is committed to establishing itself as a model enterprise for waste management in Shandong Province. During the

environmental incidents. Currently all relevant plans have been filed and are being continuously executed. Reporting Period the Electrolytic Aluminium Company and the Aluminium New Material Company were recognized as "Yantai

Municipal Zero-Waste Cells" due to their effective waste management performance.Nanshan Aluminium regularly conducts environmental emergency drills to enhance risk disposal Management of Impacts Risks and Opportunities

capabilities

Nanshan Aluminium attaches great importance to environmental risk management and strictly complies with all applicable

Nanshan Aluminium organizes environmental laws and regulations in the locations where it operates. The Company regularly conducts environmental risk identification

emergency drills monthly for its subsidiaries including and assessment. We have established a responding and rectification mechanism for identified risks. Key risks are subject to

the Aluminium Profile Plant the Electrolytic Alumin- continuous monitoring and dynamic control to ensure that all environmental risks remain within controllable limits thereby

ium Company and Donghai Thermal Power Plant. effectively fulfilling the enterprise environmental protection responsibilities.During the Reporting Period we conducted 12 drills

During the project application initiation and R&D phases we concurrently conduct environmental and social impact assess-

covering scenarios such as hazardous waste leaks fires

ments. These assessments focus on energy conservation and emission reduction resource utilization efficiency environmen-

and malfunctions of pollution control facilities. Prior

tal impacts and regulatory compliance. Considering the influence of relevant stakeholders we strive to ensure that projects

to the drill the Company formulated a detailed plan

achieve economic benefits while balancing environmental and social value thereby promoting sustainable development for

based on production process characteristics and poten-

the Company.tial environmental risks. A review and assessment were

conducted to develop improvement measures contin-

uously refining the environmental emergency manage-

ment system and enhancing employees' emergency

response capabilities.94 Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report Harmonizing with Nature Co-creating a New Chapter for the Ecosystem 95

Environmental Risk Assessment and Management Dimension Environmental Management Objectives22

Compliance with Environmental Regulations Environmental Impact Assessment Particulate matter nitrogen oxides sulfur dioxide and Solid Waste Wastewater Treatment

other atmospheric pollutants

Ensure that the project complies with national During the project application and initiation Solid waste is disposed of in full

and local environmental regulations and phases an environmental impact assessment will compliance with regulations.standards to avoid legal risks and costs arising be conducted to analyze the potential environ- Aluminium chips and pieces are Wastewater discharge meets

from violations of environmental mental impacts of the project and develop corre- With 2021 as the baseline we aim recovered through measures such 100% compliance standards

protection regulations. sponding prevention and response measures. to reduce 2% atmospheric pollut- as remelting and recycling while while the reuse rate of treated

ant emissions by 2026. aluminium slags are comprehen- wastewater is increased to

sively utilized to produce alumin- reduce consumption of fresh

ium ingots thereby advancing the water sources.reduction of solid waste.Resource Utilization Energy Conservation and Emission Reduction

Assess the efficiency and sustainability of the In the design and implementation phases of the The Company's Long-term Environmental Management Objectives

project's use of natural resources. By optimizing project special attention will be given to the Beyond achieving short-term goals with upgrades and renovations of environmental protec-

resource usage reducing resource waste and application and promotion of energy-saving and tion facilities for wastewater and exhaust gas Nanshan Aluminium has basically achieved ultra-

ensuring that the project's resource consumption emission-reduction technologies. Using energy- low emissions of exhaust gas in its subsidiaries and "zero discharge full recycling" of wastewater.meets the requirements of sustainable efficient equipment and processes energy

development. consumption and carbon emissions will be

reduced to minimize environmental impact. The Company's internal policy Environmental Protection Management Measures of Shandong Nanshan Aluminium Co. Ltd.clearly stipulates management and assessment requirements for circumstances such as the discharge of pollutants exceed-

ing standards and the non-standard disposal of solid waste. We have established a mechanism for accountability tracing and

Metrics and Targets performance assessment to manage and evaluate responsible entities thereby strengthening environmental compliance management.Nanshan Aluminium strictly complies with the regulatory requirements for pollutant emissions imposed by authorities in its

domestic and international operating locations. In accordance with the ISO 14001 environmental management system the In 2025 we have fully achieved our environmental management objectives with exhaust gas wastewater and solid waste all

Company implements standardized management of exhaust gas wastewater and solid waste while continuously advancing achieving 100% compliance in emissions. At the same time we are progressively advancing the Company's long-term environ-

pollution prevention and control efforts across all production stages. The Company adheres to the principles of clean produc- mental management objectives and implementing various emission reduction measures to reduce pollutant discharges. Please

tion and sustainable development. Implementing measures such as source reduction and resource recycling and ensuring refer to the section "Protecting Nature" for details.compliance with emission standards the Company continuously reduces its environmental impact.During the Reporting Period the Company did not experience any environmental pollution incidents or violations of environ-

22: The environmental management objectives of Nanshan Aluminium's Indonesia branch are detailed in the '2025 Nanshan Aluminium International

mental protection regulations nor was it subject to any related environmental penalties.Environmental Social and Governance Reporting'.As of the end of the Reporting Period

The coverage rate of the ISO 14001 environmental management system for

Nanshan Aluminium's manufacturing subsidiaries reached 87.5% 21

21: This data scope currently includes only our subsidiaries operating locations in China. We will continue to strengthen the operation and management

of our overseas subsidiaries promote strict adherence to ISO 14001 environmental management systems for environmental governance and timely incor-

porate the coverage rate of their environmental systems into the Company's internal data statistics.96 Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report Harmonizing with Nature Co-creating a New Chapter for the Ecosystem 97

4.3 Protecting Nature Upgrading desulfurization facilities to enhance exhaust gas governance effectiveness

Nanshan Aluminium continues to advance environmental management work committed to reducing the impact of produc- During the Reporting Period Nanshan Aluminium's electrolytic alumin-

tion and operations on the environment. The Company strictly controls ecological impacts during the production process ium company constructed a new limestone-gypsum desulfurization

ensuring that wastewater exhaust gas solid waste and hazardous waste are disposed of in a standardized manner while tower. The treatment capacity was significantly enhanced compared

improving the efficiency of water resource recycling. We actively participate in ecological conservation initiatives to support to the original facilities enabling the processing of larger volumes of

the construction of an environmentally friendly society. exhaust gas. After the facility commenced operations the removal

efficiency of sulfur dioxide improved significantly. According to online

monitoring data the sulfur dioxide emission concentration decreased

Emissions and Waste from an average of 27 mg/m3 before the retrofit to 15.7 mg/m3 effec-tively enhancing the level of exhaust gas governance.The major pollutants of Nanshan Aluminium include atmospheric pollutants such as nitrogen oxides sulfur dioxide and

particulate matter water pollutants including COD ammonia nitrogen total phosphorus and total nitrogen and solid wastes

such as scrap aluminium and discarded packaging materials. We have established a structured environmental monitoring

plan in accordance with the types and frequency requirements stipulated for environmental impact assessment approvals During the Reporting Period the Company's exhaust gas emissions fully complied with regulatory requirements. Our exhaust

and pollutant discharge permits. gas emission indicators are presented on the table below:

During the Reporting Period the Company identified no significant deficiencies in environmental monitoring plans or risk

management measures and no cases occurred wherein the Company received major administrative penalties or was held Exhaust gas Emission Indicators27

criminally liable due to pollutant emissions.Exhaust Gas Management Emission Indicators Unit 2023 2024 2025

Nanshan Aluminium strictly complies with the laws and regulations of its operating bases and has formulated and imple-

mented the Atmosphere Pollutant Emission Control Procedure to guide domestic and international units to steadily carry out Nitrogen Oxides Tonnes 3698 3707 4648

exhaust gas management work ensuring comprehensive compliance.Sulfur Dioxide Tonnes 6386 140728 1421

All subsidiaries of the Company have installed online monitoring systems to conduct continuous monitoring and dynamic

assessment of pollutant emissions ensuring that exhaust gas emissions remain consistently compliant with standards. The Non-methane total

Tonnes 59 47 46

Company has strengthened the management and monitoring of unorganized emission points in the production process stand- hydrocarbons

ardized material collection and recovery procedures to prevent secondary pollution caused by material spillage and contin- Particulate matter 29

uously improved its pollution prevention and control management ability. Tonnes 342 316 409from calciner flue gas

Nanshan Aluminium continues to be committed to reducing emissions of harmful exhaust gases such as volatile organic Particulate Matter Tonnes 419 349 362

compounds (VOCs) particulate matter nitrogen oxides and sulfur dioxide. The Company has installed exhaust gas treatment

facilities including dust collectors dry powder injection systems zeolite rotary concentrators activated carbon adsorption

units SCR23 denitrification systems pulse bag filters RTO24 RCO25 and DTO26 to continuously reduce exhaust gas emissions.The Indonesia factory has installed monitoring equipment for carbon dioxide and mercury content. Leveraging Internet of

Things (IoT) technology it tracks emission levels in real time and implements corresponding process adjustments based on

these readings. 27: The data scope includes Donghai Thermal Power Plant Electrolytic Aluminium Company Aluminium Profile Plant Alumina Company Aluminium

Rolling Company Aluminium Foil Company Aluminium New Material Company Medium-thick Plate Company as well as major operating facilities in

Indonesia and the United States.

28: In 2024 the Indonesia plant continued to increase investment in environmental management and pollutant reduction. As our mass production expands

the power plant at our Indonesia facility has enhanced the precision of sulfur dioxide emission measurements through the standardized and stable opera-

23: SCR Denitrification: Selective Catalytic Reduction. tion of desulfurization equipment and real-time online data monitoring. In 2022 and 2023 our sulfur dioxide emissions were estimated values based on

reference guidelines rather than actual measurements; consequently in 2024 sulfur dioxide emissions decreased significantly.

24: RTO:Regenerative Thermal Oxidizer

29: Particulate matter in the flue gas from the calciner primarily originates from the calciner at the Indonesia plant. In 2024 we calculated the particulate

25: RCO:Regenerative Catalytic Oxidizer matter emissions from calcination furnace flue gas based on actual production hours and simultaneously revised the 2023 emission figures. Due to our

26: DTO:Direct Thermal Oxidizer continuous capacity expansion at the Indonesia facility the relevant data for both 2023 and 2024 showed a slight increase compared to 2022.98 Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report Harmonizing with Nature Co-creating a New Chapter for the Ecosystem 99

Solid Waste Management In 2025 our solid waste emission indicators are presented in the table below:

Nanshan Aluminium strictly complies with environmental protection requirements in its domestic and overseas operat-

ing locations and has established internal policies such as the Nanshan Aluminium Solid Waste Standardized Management Generation and Utilization of Solid Waste30

Measures. We uphold the core environmental protection philosophy of source reduction intermediate control end-of-pipe

treatment and recycling adhering to the basic principles of "reduction resource utilization and harmless disposal" to imple-

ment precise classification of solid waste and ensure compliant handling. Indicator Unit 2023 2024 2025

We actively promote the recycling and circular utilization of harmless waste. Aluminium shavings aluminium blocks alumin-

ium dross and externally collected waste cans are smelted and recycled into valuable ingots of recycled aluminium. This

approach reduces solid waste generation at the source. For details see 'Special Topic on Recycled Aluminium'. Total Solid Waste Tonnes 388657431 3351212 3307238

Generation of general solid waste Tonnes 3800439 3238201 3136551

General Waste Hazardous Waste Household waste

Aluminium ash and slag waste

lubricating oil emulsion-con- Total Volume of General Solid Waste aluminium chips desul- Tonnes 3792642 3180447 3059792taining waste waste diatomite Waste Recycling and Utilizationfurization gypsum red mud

etc. etc.* Re c y c l i n g a l u m i n i u m * Pre-treatment of hazard- Generation of Tonnes 86221 17070232 170687

chips and scrap through ous waste capable of * Regularly collected and Hazardous Waste

the melting furnace comprehensive utiliza- classified for disposal by tion or emission reduction the sanitation department.* Dry stacking of red mud disposal. Total Volume of

shall be implemented at Hazardous Waste Recycling Tonnes 8631533 170846 169692

the red mud storage facil- * The remaining hazardous waste is entrusted to quali- and Utilizationity. fied entities for compliant

disposal. Wastewater Discharge Management

Nanshan Aluminium strictly complies with all relevant laws and regulations regarding wastewater discharge in its operat-

ing locations and has established Wastewater Discharge Control Procedure. All production units of the Company have estab-

lished internal wastewater treatment facilities in accordance with product manufacturing processes to ensure compliant

discharge of wastewater.Building upon our standard treatment of conventional pollutants such as ammonia nitrogen COD and BOD we have imple-

mented advanced technologies including activated carbon filtration and multi-media filtration to conduct in-depth process-

ing of special pollutants like heavy metals and waste oil. These measures effectively reduce the concentration of pollutants

in discharged effluent.

30: The data scope includes Donghai Thermal Power Plant Electrolytic Aluminium Company Aluminium Profile Plant Alumina Company Aluminium

Rolling Company Aluminium Foil Company Aluminium New Material Company Medium-thick Plate Company as well as major operating facilities in

Indonesia and the United States.

31: In accordance with the laws and regulations of the jurisdictions in which we operate we conduct bauxite residue disposal in compliance. The generation

of bauxite residue is currently excluded from the total solid waste statistics. Based on this principle we adjusted the Company's total solid waste for 2023.

32: In 2024 the increase in the Company's hazardous waste generation was due to: (1) We disposed of part of the waste emulsion from the enclosed construc-

tion park as hazardous waste; and (2) The Company introduced process technology to increase the concentration of vanadium compounds contained in

bauxite and discharged them into the red mud reservoir thereby better achieving a reduction in red mud emissions.

33: The volume of hazardous waste recycled exceeded the volume generated in 2023 due to the recycling of surplus hazardous waste carried over from 2022.100Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report Harmonizing with Nature Co-creating a New Chapter for the Ecosystem 101

We have established "zero discharge and full reuse" as our wastewater management objective. While ensuring compliant During the Reporting Period Nanshan Aluminium achieved 100% compliance in wastewater discharge. The relevant indica-

discharge of wastewater we are committed to enhancing its recycling rate. tors are shown in the table below:

As the number of plants in the Donghai Industrial Park continues to increase the demand for wastewater treatment within the

34

park is rising. To ensure compliant treatment of wastewater from new and ongoing projects within the industrial park Nanshan Wastewater Discharge Status

Aluminium invested in and constructed the Donghai Aviation Materials Park Wastewater Treatment Station with a designed

treatment capacity of 6500 m3/day. During the Reporting Period the sewage treatment station has completed construction

and obtained the discharge permit entering the trial operation phase. Relevant legal work is underway and project accept- Emissions Unit 2023 2024 2025

ance and formal commissioning are expected to be completed by March 2026.While continuously enhancing its sewage treatment capacity Nanshan Aluminium has optimized wastewater governance Wastewater

10000 metric tonnes 87 81 76

processes and upgraded existing treatment facilities and technical routes. These measures have steadily improved pollutant discharge volume

removal efficiency and further strengthened the level of refined wastewater management.Pressed water 10000 metric tonnes 518 69935 541

Fluoride Removal Process Retrofit

During the Reporting Period Nanshan Aluminium carried out a Volume of recycled

10000 metric tonnes 456 476 552

process upgrade for fluoride removal in the wastewater treatment wastewater

system of the three zones of Plant No. 1 of its aluminium company.Building upon the existing treatment process that meets the fluoride

discharge requirement of 20 mg/L an additional sedimentation COD Kilograms 23953 21719 22875

tank was added after the inclined tube settler. New defluorination

agents and coagulants were introduced to optimize the waste-

water treatment process. By adjusting the pH value and adding Ammonia Nitrogen Kilograms 807 761 869

calcium chloride along with a new type of composite defluorinat-

ing agent fluorides are effectively removed in the form of precip-

itates. The concentration of fluorides in wastewater is controlled

to a target level of 1 mg/L significantly enhancing wastewater

governance capabilities.

34: The data scope includes Donghai Thermal Power Plant Electrolytic Aluminium Company Aluminium Profile Plant Alumina Company Aluminium

Rolling Company Aluminium Foil Company Aluminium New Material Company Medium-thick Plate Company as well as major operating facilities in

Indonesia and the United States.

35: The Company's increase in alumina production led to a significant rise in filtrate water.102Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report Harmonizing with Nature Co-creating a New Chapter for the Ecosystem 103

Water Resource Management During the Reporting Period

Water resources are a critical element ensuring the operational continuity of aluminium processing production. Their scien-

tific allocation and standardized management hold significant importance for the Company's stable operations. Nanshan The Company received an A- rating in the CDP Water Questionnaire.Aluminium complies with relevant laws and regulations including the Water Law of the People's Republic of China and the

Regulations on the Administration of Water Abstraction Permits and Collection of Water Resource Fees. The Company incor- Nanshan Aluminium sets annual water usage targets and sets specific water reduction goals for different products. These targets

porates water resource risk management into its key management areas. Improving policies and strengthening management guide the Aluminium Profile Plant Electrolytic Aluminium Company Alumina Company and Donghai Thermal Power Plant

measures the Company effectively prevents potential risks to production and operations posed by water resources. to meticulously break down their monthly water intake and usage plans. The Company continuously reduces its consump-

Water Resource Risk Management tion of fresh water resources and enhances its overall water efficiency.Nanshan Aluminium regularly conducts water resource risk assessments for its subsidiaries. The assessment dimensions In terms of water conservation and recycling Nanshan Aluminium continues to implement comprehensive strategies stead-

include the probability of occurrence hazard level and risk rating. The scope covers Nanshan Industrial Park and Donghai fastly adhering to the principles of "multiple uses of a single water source graded utilization and cascaded usage". The

Industrial Park. Company promotes the rational utilization of water resources through simultaneous technical upgrades and recycling initi-

atives.During the Reporting Period the Company engaged a third party to conduct water balance tests for its subsidiaries and submit-

ted the resulting water balance report to the Longkou Water Affairs Bureau for filing. In addition the Company participated

in a survey meeting on industry water quota standards organized by the Provincial Water Resources Research Institute and Water Conservation

commissioned by the Shandong Provincial Department of Water Resources. Nanshan Aluminium has developed alternative water sources such as seawater desalination and condensate return water to

Key Focus Areas for Water Resource Management: Pre- In- and Post-Event enhance water security reduce reliance on conventional freshwater resources and promote water conservation and sustain-

able utilization.The Company actively introduced seawater desalination equipment at the Donghai Thermal Power Plant effectively allevi-

ating the water pressure on the local water supply network. During the Reporting Period the seawater desalination equip-

Pre-Event In-Event Post-Event ment at Donghai Thermal Power Plant operated for a cumulative total of 8760 hours. Approximately 3.313 million tonnes of

fresh water were successfully produced accounting for 59.45% of total water consumption with a capacity utilization rate of

* Issue advance water * Continuously monitor water * Regularly disclose water

discharge and water quality approximately 27.41%.resource risk warnings pollution discharge

and announcements and control the probability monitoring results and The chemical workshop in the Donghai Thermal Power Plant utilizes alumina steam condensate return water as an alternative

* Conduct transparent and of potential water resource emission reduction plans

risks through proactive water source. During the Reporting Period the total volume of steam condensate return water used by the chemical workshop compliant potential water to achieve transparent

water resource risk manage- management of water of Donghai Thermal Power Plant was approximately 2.07 million tonnes accounting for 27% of the total water consumption. resource risk assessments

and research. ment measures. resource risks. In addition the Donghai Thermal Power Plant upgraded hydraulic slag removal system to a wind-cooled dry slag removal

system on 330 MW unit to further reduce water consumption.PT Bintan Alumina Indonesia conducts daily testing of water quality indicators and engages a third-party unit to perform Nanshan Power Plant Heat Exchange Station Condensate Utilization Project

monthly water quality testing. It continuously monitors water conditions to ensure that the park water quality remains within

specified requirements. The water plant supplies water via two routes that serve as backups for each other significantly reduc- Nanshan Power Plant implemented a project to recover and recycle condensate from heat exchange stations.ing the risk of water supply interruption in the park. The American Factory primarily utilizes municipal water supply. Follow- The pipeline installation and system commissioning have been completed. Condensate generated during the

ing a prudent assessment by the expert team no water resource risks have been identified. heating season is now transported via newly installed pipelines to the power plant's clean circulating water

pool for replenishing the circulating cooling water system. The project effectively recycles condensate water

reduces raw water consumption improves circulating water quality and lowers electrical conductivity.Water Consumption

Nanshan Aluminium complies with all applicable laws and regulations in the jurisdictions where it operates. Integrating

rational utilization and standardized management of water resources the Company continues to advance the implementa- Water Reuse and Recycling

tion of water conservation and efficient water use concepts throughout its production processes. The Company's production The Company continues to optimize wastewater treatment processes and improve the reclaimed water reuse system. Treated

water primarily originates from municipal supply rainwater harvesting and wastewater recycling channels. We adopt diver- water meeting standards is recycled into production processes enhancing the level of water resource circulation. This approach

sified water source utilization methods to enhance water resource efficiency. reduces wastewater discharge while lowering raw water consumption.104Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report Harmonizing with Nature Co-creating a New Chapter for the Ecosystem 105

Donghai Thermal Power Plant Wastewater Recycling and Reuse Rainwater recovery from the settling pond at the Indonesian mine site

Donghai Thermal Power Plant implements a graded recycling and utilization system for ultrafiltration backwash Nanshan Aluminium's Indonesia facility installed rainwater collection equipment at the local bauxite ore

wastewater. The wastewater is primarily used for makeup water in the ash water system and desulfurization mine enabling the annual collection and utilization of approximately 100000 cubic meters of rainwater.workshop limestone slurry preparation mist eliminator blade rinsing as well as pump and pipeline flushing.During the Reporting Period the Donghai Thermal Power Plant's Chemical Workshop generated approximately

248.3 thousands tonnes of wastewater with a wastewater utilization rate of 100%. During the Reporting Period Nanshan Aluminium's water resource consumption indicators are as shown in the table below:

Water Consumption Metrics36

Indicator Unit 2023 2024 2025

Total Water Withdrawal 10000 m3 737 715 634

Total Water Consumption 10000 m3 760 745 688

Total volume of recycled

10000 m3 23 30 54

and reused water

The Flat-rolled Product Division implemented deep recycling and reuse of wastewater. Ecosystem Protection

During the Reporting Period the Donghai Production Site of the Flat-rolled Product Division implemented Nanshan Aluminium strictly complies with the Wildlife Protection Law of the People's Republic of China and referencing policy

wastewater recycling. The wastewater underwent mechanical acceleration clarification activated carbon guidelines such as the White Paper on Biodiversity Conservation in China has established the Nanshan Aluminium Biodiver-

filtration quartz sand filtration ultrafiltration and two-stage reverse osmosis processes before entering the sity Conservation Management Procedure. This procedure standardizes production operations and employee living activi-

deionization system to produce pure water. From January to November 2025 approximately 180 thousands ties to minimize impacts on ecosystems and protect regional biodiversity. The Company continues to strengthen ecological

cubic meters of wastewater were recovered. The recovery rate at the deionization station was approximately protection awareness actively fulfills its responsibility for biodiversity conservation and contributes to the maintenance of

70%. The treated reclaimed water is primarily used for rinsing in the aluminium plate sheet and strip produc- the ecological environment.

tion process effectively reducing raw water consumption and enhancing the level of water resource recycling.As of the end of the Reporting Period the Company did not conduct production and business activities or construct related

facilities within ecological protection red lines nature reserves or other areas with important ecological functions or ecolog-

ically sensitive and fragile environments.Nanshan Aluminium conducts biodiversity risk assessment annually evaluates the scope of affected areas and formulates

Donghai Aviation Materials Park Wastewater Recycling and Utilization corresponding prevention and control measures. The Company provides proactive warnings and prevents potential risks to

continuously protect the ecological environment in the region.The Company plans to advance the reclaimed water recycling project at the Donghai Aviation Materials Park

sewage treatment station in 2026. At the initial stage of project implementation the estimated daily water recov-

ery volume is approximately 1000 m3 with a recovery ratio of about 15.4%. As the wastewater volume in the

park increases subsequent optimization of recovery facilities will enhance the recovery capacity to 3500 m3/d. 36: The data scope includes Donghai Thermal Power Plant Electrolytic Aluminium Company Aluminium Profile Plant Alumina Company Aluminium

Rolling Company Aluminium Foil Company Aluminium New Material Company Medium-thick Plate Company as well as major operating facilities in

Indonesia and the United States. The indicators for water consumption in Indonesia are detailed in the "Nanshan International 2025 ESG Reporting". The

Company's total water withdrawal does not include surface water and groundwater withdrawals.106Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report Harmonizing with Nature Co-creating a New Chapter for the Ecosystem 107

During the Reporting Period we conducted biodiversity risk analyses for the Medium-thick Plate Company the Aluminium aviation materials park. The project aims to achieve efficient circular utilization of aluminium resources and promote green

Rolling Company and Aluminium Foil Company. The Company's overall biodiversity risk is assessed as "Low Risk". and low-carbon development of the aluminium industry chain.In the planning and construction of new projects we strictly comply with government laws and regulations regarding ecosys- Nanshan Aluminium Circular Economy Governance Structure

tem protection. Through biodiversity assessments we fully consider the living environments of surrounding organisms and

issues such as wildlife corridors. In daily operations we strictly control the discharge of relevant exhaust gases and wastewa-

ter to ensure compliance with standards. We actively guide employees to enhance their awareness of biodiversity protection Reporting

Governance Hierarchy Functions Methods and

prohibiting the hunting of wild animals and reducing human interference such as fishing grazing and logging. Frequency

Nanshan Aluminium Biodiversity Management Procedure * As the highest decision-making body it is responsible for clarifying

the Company's circular economy strategic direction and reviewing

All construction projects of Nanshan Procedures for the management of and approving strategic decisions.Aluminium must be entrusted to quali- wastewater exhaust gas noise solid Decision-making Level: * Systematically identify and assess various risks related to the circu- /

fied entities to conduct environmen- waste oils and chemicals have been Board of Directors lar economy.tal impact assessments and identify established to mitigate negative

substantive impacts on Biodiversity. impacts on Biodiversity * Deliberate and approve major resource allocation and investment

decisions

* As the core manager of circular economy activities we have * Annual

planning is

Develop a Biodiversity Action Plan For non-native species inadvertently established an internal team for technical transformation and conducted

publish it publicly update it regularly introduced through operational activi- breakthroughs to enhance the core competitiveness of recycled semi-annually.and share it with stakeholders. ties the Company's Safety and Environ- aluminium products.mental Department shall assess the Management Level: * Develop a strategic action plan for the circular economy and super- * Project

Risk and implement controls and progress Management Team of vise and follow up on its overall implementation and key perfor-

prepare a Biodiversity Reporting mance achievement. is updated the Recycled Alumin-

monthly.ium Company * Resources are allocated and coordinated reasonably based on

project priorities. * The rapid

4.4 Circular Economy improve-* Monitor and conduct in-depth analysis of market dynamics techno- ment project

logical trends and policy changes providing regular decision-mak- is planned

ing recommendations to the Board. quarterly.Against the backdrop of the continuous advancement of China's national dual-carbon goals green and low-carbon develop- * As a core executor of circular economy activities responsible for the

ment has become a key direction for the non-ferrous metals industry. As a green energy-intensive metal aluminium serves Executive Level: comprehensive management of the recycled aluminium workshop.as a critical foundational material for achieving energy conservation and emission reduction across society and supporting Production Depart- * Prepare and refine the process technical standard documents for * Monthly Report

the low-carbon economic transformation. As the first enterprise in China to obtain ASI certification for the aluminium value ment of Recycled Alumin- the recycled aluminium plant.chain Nanshan Aluminium attaches great importance to the application and practice of circular economy concepts within the ium Company * Improve the internal economic responsibility assessment policy

aluminium industry. We have established and continuously optimized the circular economy governance structure to compre- and enhance economic efficiency.hensively identify opportunities and potential challenges arising from circular economy development while promoting the

construction of an efficient aluminium industry chain through a series of innovative initiatives. By continuously optimizing In addition Nanshan Aluminium possesses a core team with profound professional backgrounds and extensive technical

resource allocation and enhancing resource utilization efficiency Nanshan Aluminium is committed to advancing the level experience. The members' expertise spans multiple fields including materials science metallurgical engineering and environ-

of resource recycling and contributing to sustainable development within the industry. mental engineering as the Company continues to focus on the research development and innovative breakthroughs of

cutting-edge industry technologies. Simultaneously we actively engage in deep cooperation with universities and research

Governance institutions to explore the integrated development of technology for 'waste aluminium - pre-treatment - recycled aluminium

Nanshan Aluminium has established a circular economy governance structure comprising the Board of Directors the manage- - re-alloying - high-end aluminium alloy products'. We continuously advance green circular primary recycling technologies

ment of the Recycled Aluminium Company and its subordinate departments. We clearly define responsibilities across all for high-end aluminium alloy materials thereby consolidating the Company's core technological advantages in the field of

levels to ensure the Board and management provide oversight guidance and support for circular economy-related initiatives. sustainable materials.To effectively respond to national policies including 14th Five-Year Plan for Circular Economy Development and the "Dual Strategy

Carbon" goals and to promote the efficient recovery and recycling of aluminium resources we established the Recycled To continuously strengthen Nanshan Aluminium's core competitiveness in the circular economy and ensure the effective

Aluminium Company in 2021. We are focusing on advancing projects for the keep grading recovery comprehensive utilization implementation of relevant strategic initiatives we have conducted risk identification and assessment work. This initiative

of recycled aluminium. This project utilizes process scraps from the production of can body ends and automobile sheets aims to comprehensively identify market technological operational and compliance risks that may arise during the circular

along with recycled UBCs from the market as primary sources for recycling supplemented by aluminium scalping chips from economy transformation. It seeks to scientifically assess their potential impact on the Company's business operations and

financial performance. Based on these assessments targeted risk response and management strategies will be formulated

to provide effective support for strategic advancement.108Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report Harmonizing with Nature Co-creating a New Chapter for the Ecosystem 109

Analysis Results of Risks Opportunities and Their Impacts

Nanshan Aluminium Circular Economy Risk List

Circular Time

Nanshan Aluminium Circular Economy Risk List Economy Risk Description

Risk Horizon

Business Impact Financial Impact Risk Response Measures

Circular

Economy Risk Description Time Horizon Business Impact Financial Impact Risk Response Measures

If purification technol-

ogies for recycled alu- * If the downcycling * Invest in advanced puri- Risk minium cannot be If downstream cu- pro-cess results in fication and alloy separ-

b rea kt h ro u g h e d stomers raise their recycled alumin- ation technologies to

* In markets where the development of performance re- ium fai l ing to * While establishing its mitigate the impact of

recycling systems own recycling network high value-added quirements for re-

meet performance downcycling cycles en-

are immature the the Company has also products may be con- cycled aluminium

requirements for hance the performance

Reliance on external costs of procur- strained. Specifically the Company may high-end sectors

scrap aluminium re- established long-term

of recycled aluminium

ing sorting tran- Technology (such as aerospace

cycling channels may cooperative relation-

and expand into high-

sporting and stor- Risk

the multiple recycling Long need to reposition and automotive

lead to supply insta- ships with multiple

of aluminium may its products po- end application fields.ing scrap alumin- lead to the complexifi- tentially facing an lightweighting)

bility particularly in waste aluminium sup- * Establish a refined waste Fluctuations in the ium may exceed pliers to diversify supply cation of alloy composi- adaptation period

the Company may

markets where the aluminium sorting and scrap aluminium those of primary risk. tion potentially facing or causing custom-

increasingly rely on

scrap aluminium re- classification system to recycling channels aluminium po- a technical ceiling of ers to shift to com-

low value-added

cycling system is not tentially increas- * Closely monitor policy 'downcycling' (unusa- petitors. products thereby

reduce impurity accu-

Supply yet mature resulting may lead to raw developments (such mulation and delay material shortages ing operating costs ble for high-end appli-

compressing profit

Chain in a higher risk of raw margins. down grading cycles.Adjustment material shortages Short or surpluses dis-

in the short term. as recycling subsidies cations) in the long term.rupting production and carbon emission Risk or price fluctuations. * The price of scrap policies) and adjust

Furthermore the Com- schedules and af- aluminium is sig- fecting delivery supply chain strategies pany must rapidly nificantly influ- in advance. Nanshan Aluminium Circular Economy Opportunity List

establish cooperation cycles and custom- enced by market

mechanisms with re- er satisfaction. supply and de-

* Establish close cooper-

mand policies ation with downstream

Opportuni-

cyclers and consum-

(such as recycling customers (e.g. aut-

ties in the Opportunity Time

ers; coordinating costs omotive and packaging Circular Description Horizon

Business Impact Financial Impact

and time may exceed subsidies) and Economy

expectations. international com-

industries) to ensure

modity prices alignment between * Attract high-quality * Increase Business Revenue: When which may lead to market demand and customers who pri- customers place high trust in the environ-profit volatility. supply capacity. oritize sustainable mental performance of Nanshan Alumin-

d e v e l o p m e n t ium's recycled aluminium products

The government may * Establish a dedicated optimize the custo-

they are more willing to select Nanshan

raise mandatory re- Demand for low-car-policy research team to mer structure and

Aluminium as a partner thereby increas-

cycling rate targets bon aluminium in down- reduce reliance on ing the Company's business revenue. closely monitor domes-

or carbon emission stream industries (e.g. This trust is not only reflected in individ-

standards; if the Com- If policy mandates

tic and international traditional low-mar-

Seizing the automotive packaging) gin markets.ual transportation contracts but may

pany fails to prepare an increase in the

policy trends (such as

* If policies mandate Green Market is growing rapidly. Early

Short- to also evolve into long-term partnerships

recycling rate of carbon emission po- investment in recycled Medium- * By providing low- in advance it may face providing the Company with a stable aluminium prod- the establishment licies and recycling Advantagefines or restrictions aluminium enables the

Term carbon or zero-car- revenue stream.Policy and on market access. ucts the Company

of a recycling sys- regulations) and formu- Company to capture bon aluminium

may need to ex- tem the Company late response strategies market share in 'green the Company can

* Enhancing Bargaining Power: As cus-

Regulatory Furthermore 'carbon Short tomer trust increases Nanshan Alumin-

Risks barrier' policies in pand its recycling

must invest signif- in advance. procurement'. distinguish itself icant capital to in a homogenized ium may possess stronger bargain-

international trade network or increase build recycling net- * Accelerate the trans- competitive land- ing power in negotiations with clients.(such as the EU Car- technical invest- works and sorting formation to recycled scape and establish This enables us to secure more favora-

bon Border Adjust- ment which could facilities. aluminium business a unique market ble contract terms and pricing while

ment Mechanism) be difficult to achi- reduce reliance on pri- maintaining service quality thereby

may impact Nanshan eve in the short term. mary aluminium pro-

positioning. further enhancing financial returns.Aluminium's ex- duction and mitigate

port-oriented busi- the impact of carbon Substituting primary

ness. emission policies. aluminium with recycled * By substituting

aluminium reduces re- primary aluminium

liance on bauxite imports with recycled alu-

and enhances resource minium the Com- * The resource sovereignty practice

autonomy and control- pany reduces i ts aligns with the global carbon-neutral

Reducing lability. Furthermore Medium- reliance on bauxite trend helping to mitigate the impact

Raw Material under the global trend to-Long imports and miti- of future policy changes (e.g. carbon

Dependency of carbon neutrality Term gates the impact tariffs resource export restrictions) on

the circular economy of international the business. This reduces the risk of

model can mitigate trade market price fluctu- increased sales costs due to policy shifts.barriers such as 'carbon ations and geopo-

tariffs' ensuring long- litical risks on the

term export competitive- supply chain.ness.110Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report Harmonizing with Nature Co-creating a New Chapter for the Ecosystem 111

Comprehensive Reuse Model Industry Leadership Contributions

We are working to build a closed-loop aluminium industry chain centered on the Nanshan Aluminium actively participates in the formulation of industry standards for recycled aluminium and related fields

concept of the circular economy achieving efficient recycling of aluminium resources continuously promoting the transformation of the aluminium industry to a circular economy model. During the Reporting

across the entire value chain and throughout product life cycles. Through techno- Building a Period as the primary drafting unit the Company participated in the formulation of the series of standards titled "Aluminium

logical innovation and optimized resource allocation we focus on enhancing the Whole- Chain Recycling Alloy Bending Profiles for Aviation" which covers "Part 1: Al-Zn-Mg-Cu Series Profiles" and "Part 2: Al-Cu-Mg Series Profiles"

recycling efficiency of aluminium alloys committed to maximizing resource value System providing technical support for the improvement of the standard system. Furthermore based on our continued contributions

throughout the entire lifecycle—from raw material acquisition and manufacturing to to the development of national standards for recycled aluminium as of the end of the Reporting Period the Company has

product use and end-of-life recovery. At the same time we actively leverage our indus- Leading received multiple industry recognitions demonstrating our leading position in industry technological innovation and stand-

try leadership by sharing technology and promoting models to collabourate with Promoting Green Production Industry ardization construction:

supply chain partners in driving the aluminium industry's transformation towards a Development

green low-carbon and sustainable direction contributing professional strength to

the in-depth practice of the circular economy and the positive improvement of the

social environment.Technological Innovation

Nanshan Aluminium continues to invest in research and development dedicated to exploring more efficient aluminium

recycling and reuse technologies to enhance the level of resource circular utilization. During the Reporting Period the Recycled

Aluminium Company completed the construction and commenced operations of 100000-ton keep grading recovery project

for recycled aluminium. This project adopts an advanced waste aluminium remelting process to achieve high-quality alumin- Nanshan Aluminium participated in The subsidiary Hangxin received the The subsidiary Hangxin (Chemical

ium recycling while effectively reducing emissions of solid waste wastewater and slag thereby promoting the coordinated drafting Part 1 of the Aluminium Alloy Third Prize in the Excellent Technical Analysis Methods for Magnesium

Bending Profiles for Aviation (Al-Zn-

development of efficient resource utilization and environmental protection. Details regarding the remelted aluminium smelt- Standard Award from the National and Magnesium Alloys) received the Mg-Cu Series) and received the First Nonferrous Metals Standardization Second Prize in the Excellent Award

ing process are provided in the special section. Prize in the Excellent Technical Stand- Technical Committee for its work on for Technical Standards from the

Resource Integration ard Award from the National Nonfer- 'Failure Analysis of Aluminium Alloy National Non-ferrous Metals Stand-

rous Metals Standardization Technical Products: Scanning Electron Micros- ardization Technical Committee of

Nanshan Aluminium continues to refine the raw material recycled aluminium procurement system. By deepening coopera- Committee in 2025. copy Method' in 2025. 2025.tion with customers such as downstream can-making enterprises and automotive manufacturers the Company has estab-

lished a multi-channel raw material supply network to ensure a stable source of materials for recycled aluminium production.Simultaneously the Company has established deep collabourations with multiple partners across the industrial chain to Leaders of the China Non-ferrous Metals Industry Association Visited Nanshan Aluminium

jointly develop green products and low-carbon solutions. These efforts promote resource synergy and recycling between Forging a New Chapter in the Development of the Aluminium Industry

upstream and downstream segments of the aluminium industry thereby supporting the development of a circular economy On April 25 2025 Fan Shunke Deputy Secretary of the Party Committee of the China Nonferrous Metals Indus-

within the sector. For more information on upstream and downstream supply chain cooperation models please refer to the try Association and his delegation visited Nanshan Aluminium for research and guidance. They conducted an

Special Section. on-site inspection of key production facilities including the 150MN extrusion production line for aerospace

materials at Nanshan Aluminium and held a symposium with senior management of the Company includ-

Improve the traceability system for the recycling process of secondary aluminium. ing SONG Changming Director of Nanshan Holdings and LYU Zhengfeng Chairman and General Manager of

Nanshan Aluminium. Both parties exchanged views on the operational status of the aluminium industry corpo-

Enhance the traceability and transparency of recycled aluminium to ensure the efficiency rate production and operations and future development directions for the sector. In-depth discussions on

and environmental sustainability of the entire recycling and reuse process. industry hotspots and challenges are also conducted as well as collabouration with the Association's work

jointly planning new pathways for high-quality development of the aluminium industry.Deeply explore alloy design and testing

By collabourating with customers to explore innovative alloy designs we can better meet

market demands while enhancing the quality and performance of recycled aluminium

products.Completed the pilot program for targeted recycling and full closed-loop commercialization.Effectively enhance resource recovery rates while creating greater economic value for our

partners and promoting sustainable development across the entire industry.112Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report Harmonizing with Nature Co-creating a New Chapter for the Ecosystem 113

Management of Impacts Risks and Opportunities

Participated in the 2025 China Recyled Non-ferrous Metals Technology Conference

To ensure the effective implementation of management strategies Nanshan Aluminium systematically assessed the likeli-

hood and potential impact of risks related to the circular economy and established a prioritization sequence for risk manage-

To deepen the comprehensive utilization of recycled non-ferrous metal resources establish a shared platform ment based on the assessment results. For high-priority risks we have established targeted management mechanisms and

for technical exchange and industrial upgrading enhance the strategic position of the recycled non-ferrous standardized workflows and authorized a dedicated team to regularly monitor and record the risk status. On this basis we

metal industry in safeguarding national economic environmental and resource security and promote the are simultaneously implementing risk response measures to continuously mitigate the potential impact of circular economy

implementation of the "Dual Carbon" goals the Nonferrous Metals Society of China convened the "2025 (2nd) risks on internal and external stakeholders.China Conference on Science and Technology of Recycled Non-Ferrous Metals" from June 13 to 15 2025 in

Nanchang Jiangxi. Nanshan Aluminium was invited to attend the inaugural conference as the first organizing Metrics and Targets

entity and delivered a special report on the theme "Trends and Prospects for Keep Grading Recovery Applica- Nanshan Aluminium is committed to promoting the green transformation of the aluminium industry chain and has established

tions of Recycled Aluminium under the Dual Carbon Context" sharing the company's technical explorations two key quantitative targets: first to increase the volume of waste aluminium directly recycled through secondary aluminium;

and industry insights regarding the keep grading recovery utilization of recycled aluminium. The conference second to enhance the proportion of pre-consumer and post-consumer scrap aluminium in the total processed volume. We

aims to establish an academic exchange platform for experts scholars and scientific and technological workers aim to achieve continuous breakthroughs in the scale and utilization efficiency of renewable aluminium resources through

engaged in the scientific research development and industrialization of recycled non-ferrous metals in China these initiatives contributing to the circular economy development of the global aluminium industry.as well as for leaders and management personnel from relevant government departments entrepreneurs and

other related stakeholders. It seeks to enhance the status and role of the recycled non-ferrous metals indus-

try within China's national economic and social development. Circular Economy Targets Completion Status of 2025 Circular Economy Targets

Quantity of waste aluminium subjected to direct recycling via

100000 Tonnes

secondary aluminium (excluding UBC ingots for remelting)37

Percentage of pre-consumer/post-consumer scrap

40%

aluminium in total comprehensive processing volume

37: UBC ingots are aluminium ingots produced by recycling used beverage cans and remelting them.

Invited to participate in the 2025 China Recycled Non-ferrous Metals Science and Technology ConferencePeople-Oriented

Building an Inclusive Workplace

While creating economic benefits Nanshan Aluminium places high importance on

employee well-being and long-term development. We are committed to building an

environment of equality and mutual respect providing competitive compensation

and benefits and continuously enhancing employee well-being. We firmly believe

that mutual promotion between employee growth and company development is

essential to achieving sustainable development for both individuals and the

organization.116Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report People-Oriented Building an Inclusive Workplace 117

Nanshan Aluminium 2025 Employee Composition38

5.1 Eager to Attract Talent

Indicator Unit 2025 Data

Nanshan Aluminium will actively expand talent recruitment channels to attract professionals from diverse regions and backgrounds Total number of employees Person(s) 16180

continuously enriching its talent structure. We are working to build a fair transparent and inclusive work environment respecting

and safeguarding the legitimate rights and interests of every employee and providing solid guarantees for talent development.Equal Employment By Affiliated Company By Gender8914 7266 12332 3848

Based on laws and regulations such as the Labour Law of the People's Republic of China and the Labour Contract Law of the

People's Republic of China as well as requirements from International Labour Organization (ILO) conventions Nanshan Aluminium

has established a sound and comprehensive human resources management system and platform. The Company has integrated

relevant regulations into its internal policies and established multiple internal systems including the Non-Discrimination Manage- Unit:Person(s) Unit:Person(s)

ment Procedure Protection of Minor Workers Management Procedure Prohibition of Forced Labour Management Proce-

dure Protection of Female Employees Management Procedure Prohibition of Child Labour and Remedial Measures Management

Procedure and Management Procedure on Rights to Organize Trade Unions and Collective Bargaining. These are regularly updated

to provide a clear basis for compliant labour governance ensuring that all human resources work operates in a standardized and Parent Company Major Subsidiaries Male Female

orderly manner thereby effectively safeguarding the legitimate rights and interests of employees.We strictly adhere to the bottom line of legal employment and maintain a firm stance against child labour and forced labour. Upon

hiring we rigorously verify basic identification documents such as ID cards and diplomas while simultaneously digitizing employee By Age By Level

personal information by entering it into the EHR system for management. In daily management we adhere to a people-oriented 4245 9360 48 909

approach. Through systematic and process-driven management mechanisms we fundamentally prevent illegal activities such

as child labour and forced labour thereby effectively safeguarding the legitimate rights and interests and human dignity of every

employee.Unit:Person(s) Unit:Person(s)

Nanshan Aluminium fully implements the principle of equality across all stages of recruitment hiring compensation determina-

tion and promotion and development without discrimination based on factors such as religious belief gender or ethnicity. In

the implementation of compensation and benefits occupational health protection and other institutional policies the Company 2575 15223

adheres to unified standards and standardized execution. Strictly complying with national laws regulations and internal rules the 30 Years and Below 31-49 Years 50 years and Above Senior Middle Frontline

Company employs institutional measures to ensure equity and inclusivity for its diverse workforce. Management Management Employees

To address workplace discrimination and harassment we have established policies such as the Non-Discrimination Management

Procedure and the Non-Emotional and Physical Abuse Management Procedure clearly prohibiting any form of discrimination By professional composition By Educational Attainment

insult abuse or harassment. During daily meetings training sessions and symposiums the Company implements institutional 314 93 5050

requirements to standardize employee conduct strengthen consensus on behavior across all staff and foster a civilized equal 1354

and healthy work environment. 2626123

2280

As of the end of the Reporting Period Nanshan Aluminium had 16180 employees with the distribution of employees across

8381

different categories as follows: Unit:Person(s)

12139 Unit:Person(s)

Nanshan Aluminium had

Production Staff Sales Staff Technical Staff Postgraduates Bachelor'sDegree

16180 Financial Staff Administrative Staff Junior College Degree Under Junior College Degreeemployees

38: The scope of the following statistics refers to our Chinese employees (including overseas factories).118Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report People-Oriented Building an Inclusive Workplace 119

Talent Attraction The Company has established and continuously refined its employee compensation and performance appraisal system. It has

built a policy framework that includes the Table of Post Wage Rates and the Salary Adjustment Methods . Strictly adhering to

Talent is the core driver and strategic resource for the Company's long-term stable development. During the Reporting Period the principle of "equal pay for equal work" the Company eliminates discrimination factors such as gender race and age in

we systematically advanced talent acquisition efforts to meet business development needs. We actively expanded recruit- compensation formulation ensuring that every employee receives fair and reasonable returns and shares in the company's

ment channels and optimized selection processes while continuously strengthening our talent pipeline thereby providing a development outcomes and share in the Company's development achievements.solid human resource foundation for the Company's sustainable development.We have established a compensation structure comprising base salary performance-based salary and various allowances.We have established a standardized and transparent recruitment process that covers the entire workflow from requisition Taking into account the actual operating conditions of each unit and benchmarking against external market compensation

submission and job posting to multi-round interview assessments culminating in final hiring and onboarding. The Human levels while comprehensively considering relevant factors we have implemented a moderate salary increase for key personnel

Resources Department and the hiring departments collabourated throughout this process to jointly advance it. The Personnel Organ- who play a vital role in critical areas such as production technology and management. This measure aims to strengthen incen-

ization Department implemented supervision to ensure recruitment was open fair and compliant thereby guarantee- tives stabilize our core talent pool and maintain both competitiveness within the industry and equity within the Company.ing an efficient and transparent process. In addition we provide employees with various supplementary compensation and benefits including seniority allowance

We explore diverse recruitment channels and actively conduct online and offline hiring activities to attract talent from all expatriate allowance transportation subsidy high-temperature allowance night shift pays and perfect attendance award.sectors of society. In 2025 we focused on building a core talent pipeline. We implemented targeted recruitment for mid-to-sen- These measures further enrich the structure of employee income and enhance both the incentive value and caring nature of

ior management positions and technical sequences in R&D and equipment. By constructing a three-dimensional recruitment the overall compensation package and share in the Company's development achievements.system integrating "online + offline + all-staff" we continuously updated job postings on online platforms and established an Nanshan Aluminium Salary Structure

employee referral reward mechanism offline to encourage participation from all staff.Basic Salary Performance-based Salary Various subsidies

In campus recruitment we actively recruited outstanding graduates based on a strategic layout: Based on the base salary and

Determined based on job Including seniority allow-

Centered on universities in Shandong Province supplemented by key majors at other prominent adjusted according to perfor-value competency and ance expatriate allowance

142.51% mance appraisal results domestic institutions. The recruitment completion rate for the year reached effectively performance accumulation transportation subsidy a differentiated floating

6% it reflects the scientific nature high-temperature allowance strengthening talent reserves. Among them approximately hold a master's degree or higher and mechanism is implemented and equity of the compen- night shift pays and perfect

42% to align compensation with approximately hold a bachelor's degree. The personnel structure has been further optimized sation system. attendance award.contributions.

timely supplementing key young talent to support the Company's business development.We continuously refine our performance appraisal system leveraging it as a critical management tool to drive organizational

Building on existing partnerships with academic institutions in 2025 we further expanded our collabouration with univer- development and employee growth. This mechanism maintains a dynamic alignment with the Company's production and

sities in central and western China adding more than 10 new institutions including Xinxiang Institute of Engineering and operational status: We regularly assess business priorities and capacity changes adjusting assessment dimensions and

Shanxi College of Technology. Through specialized recruitment events and campus presentations we continued to broaden indicator weights accordingly to ensure that performance goals are highly aligned with actual work requirements.channels for recruiting recent college graduates. Simultaneously the Company optimized recruitment resource allocation

by prioritizing partnerships with prominent vocational colleges for the alumina business segment. This initiative established During the Reporting Period the Company systematically reconstructed and upgraded its performance appraisal system:

stable collabourations between the Alumina Company and institutions such as Shandong Huayu University of Technology

Performance appraisal schemes for all units were

Shandong Vocational College of Science and Technology and Shandong Chemical Engineering & Vocational College thereby Senior management assessments were

effectively ensuring talent supply in relevant business areas. closely aligned with strategic objectives

refined: a three-dimensional evaluation system was

establishing more challenging and implemented for executive leaders while non-exec-

incentive-driven target values. utive personnel assessments focused on organi-zational effectiveness and controllable incentives.Simultaneously the Company standardized the assessment criteria and management processes for externally hired person-

nel. Overall by strengthening the precise linkage of assessments and the application of results we promoted closed-loop

management of incentives and constraints thereby enhancing organizational effectiveness and the systematic nature of

talent management.We place high importance on the stability of our workforce and regard employee retention rate as one of the key indicators for

measuring the effectiveness of human resources work incorporating it into the performance assessment system of depart-

ment heads. During the Reporting Period we continuously optimized the compensation allocation mechanism improved

the performance management system and enhanced employee welfare levels effectively reducing talent turnover. During

the Reporting Period the Company's overall turnover rate was 12.21%39.Campus Presentation Site

39: Employee turnover rate = (Number of employees who left during the year) / (Number of employees at the beginning of the year +

Number of new hires during the year) * 100%.120Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report People-Oriented Building an Inclusive Workplace 121

Nanshan Aluminium 2025 Employee Turnover Data

By Gender Unit:%

Male

Employee Turnover Rate

12.28

12.21% Female 11.44

Employee Training Site

By Age Unit:% By Job Level Unit:%

30 Years and Below Senior Management

Shandong Province Metallurgical Industry

14.27 2.17 Team Leader Comprehensive Management Skills Competition

31-49 Years Middle Management In September 2025 Nanshan Aluminium selected

10.57 3.54 outstanding team leaders and section chiefs to form

two teams to participate in the Comprehensive

50 Years and Above Frontline Employees

Management Skills Competition for Team Leaders

14.2612.68

in the Metallurgical Industry of Shandong Province.Participants demonstrated outstanding performance

Talent Development in the theoretical examination and various practi-cal projects including equipment management

Nanshan Aluminium places high importance on talent development and the construction of organizational learning capabilities. and on-site improvement fully showcasing their

The Company is dedicated to building a learning-oriented enterprise by establishing a training system and promotion channels solid professional expertise and team collabouration

aligned with talent development. It continuously supports the comprehensive improvement of employees' capabilities ensuring capabilities. Ultimately both teams were awarded the

dynamic matching between talent growth and positions as well as compensation thereby laying a solid talent foundation for the "Third Prize for Groups" and the Company was also

Company's sustainable development. presented with the "Excellent Organization Award".Employee Training

The Company has integrated talent development and capability building into its strategic planning. By systematically integrat-

ing internal and external resources it has established a diversified and systematic training support framework. This initiative National Marine Engineering Equipment Industry Employee Vocational Skills Competition

supports employees in achieving self-growth while enabling them to deeply understand and embody the Company's values.By closely aligning employee career development with organizational goals we are committed to cultivating a highly skilled

talent pool that is strategically aligned with the Company's objectives thereby achieving mutual growth for individuals and In June 2025 Nanshan Aluminium selected two

the enterprise. outstanding employees to participate in the National

Marine Engineering Equipment Industry Welding

During the Reporting Period the Company leveraged the Nanshan Training Academy to conduct multi-level professional train- Skills Competition. The contestants demonstrated

ing programs including training for middle and senior executives sales enablement the "Nanshan Star" University Student outstanding performance in the comprehensive

Training Program and human resources special improvement initiatives. These efforts comprehensively enhanced the overall assessment covering theory practical skills and

quality of employees. Training methods integrate apprenticeship specialized lectures case studies and knowledge compe- professional ethics. Relying on precise operations and

titions while actively expanding external cooperation. In collabouration with the Longkou Human Resources and Social standardized process control both were ultimately

Security Bureau we conducted enterprise-led assessments trained 62 senior workers and secured government skill subsi- awarded the "Individual Excellence Award".dies for qualified employees; additionally 31 electrician technicians were trained all of whom passed certification. Jointly

with the China Non-ferrous Metals Industry Association annual professional title reviews were completed with 33 individu-

als obtaining qualifications as assistant engineers or engineers.122Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report People-Oriented Building an Inclusive Workplace 123

During the Reporting Period Nanshan Aluminium conducted a total of 5944 training sessions for all employees. The total Welfare Care

number of employee training hours reached 711920 hours with an average of 44 hours per employee.Nanshan Aluminium has always placed the growth and well-being of its employees at a critical position in corporate devel-

Nanshan Aluminium 2025 Employee Training Overview opment. Through a systematic support framework and a continuously optimized organizational environment the Company

provides comprehensive care for its employees. We focus on building a work environment that fosters a sense of belonging

and cohesion. We are working to establish a sustainable synergy between individual employee development and the Company's

long-term goals ensuring that every employee feels respected supported and able to realize their value while working with

Annual Training Total Number of Total Employee Training Employee Training peace of mind.Expenditure Training Sessions Coverage Rate

RMB 181 10000 5944Time(s) 711920 100 Nanshan Aluminium Welfare ContentsHour(s) %

Statutory Benefits

* Paid annual leave and sick leave * Bereavement leave marriage leave etc.Employee Training Hours by Gender Employee Training Hours by Job Level

542608169312211239996

Supplemental Benefits

Unit:Hour(s) Unit:Hour(s) * Welfare subsidies: seniority subsidy overseas assignment subsidy transportation subsidy

high-temperature subsidy health care subsidy holiday welfare birthday welfare night shift allowance

perfect attendance reward meal subsidy Yantai union card supplementary medical insurance

669812

Frontline * Performance rewards: overproduction bonus project award excellence awardMale Female Senior Middle Management Management Employees

* Welfare housing: Free dormitory and utilities for out-of-town employees gym sports facilities library

and entertainment venues for employees

Employee Promotion

* High-temperature protection: Distribution of heatstroke prevention and cooling supplies including

Nanshan Aluminium regards employee growth as a core driver of organizational development and is committed to providing Huoxiang Zhengqi Oral Liquid watermelon ice cream and chilled water.clear and systematic career development support for every employee. The Company has established career development

pathways covering six major sequences: operational functional managerial logistics marketing and technical forming * Free travel: Internal employees can visit the AAAAA-level Nanshan tourist attraction for free

a dual-track growth path that combines vertical promotion with horizontal development. Building on this foundation the * Employee Activities: Free concerts etc.Company further refined and categorized 45 job roles defining the responsibilities and competency requirements for each.This initiative enables employees to clearly understand their positioning and development pathways within an open and

equitable environment ensuring that individual career growth advances in tandem with organizational development.Singing Contest Basketball Match New Year's Day Gala

In 2025 the Company established a closed-loop mechanism covering inventory selection and appointment based on its

"Two Pools and One Team" talent management system. Throughout the year 191 management personnel were promoted

349 core operational and technical staff were internally elevated and 54 reserve university graduates successfully completed

their development programs to assume key positions. These actions further strengthened the depth and vitality of the Company's

talent pipeline.Outdoor Team Building Tug-of-War Activity

5.2 Employee Care

Nanshan Aluminium continues to explore new Pathways for the synergistic development of employees and the Company

consistently adhering to a talent-centric approach by systematically building an integrated employee development ecosys-

tem that encompasses multi-dimensional support deep care and long-term communication. The Company has established

a smooth and agile feedback mechanism to sincerely listen to employee voices embedding the enhancement of employee

sense of gain happiness and growth opportunities into its corporate development goals.124Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report People-Oriented Building an Inclusive Workplace 125

In the process of advancing the employee care system construction the Company has consistently prioritized female employees Nanshan Aluminium leverages its employee satisfaction survey system to identify employee needs and proactively collect feedback.and those facing difficulties as key focus groups. By combining institutional guarantees with humanized support the Company The Company is committed to implementing continuous improvements in key areas to foster a more cohesive and dynamic work

systematically implements rights protection and practical assistance for these special groups. Regarding the care of female environment. The Company and its branch offices conduct regular employee satisfaction surveys annually systematically

employees the Company strictly implements the Management Procedure on Protection of Female Employees fully guarantees analyzing feedback data to support management decision-making and the implementation of improvement measures.statutory rights and benefits such as paid maternity leave and nursing breaks and equips all factory sites with rest areas for

pregnant women mother-and-child rooms and standardized medical clinics to provide convenience and safety assurance In 2025 the Company's overall employee satisfaction rate reached 91.95 % an increase of 2.05 %

40compared to the previous year.

from a hardware environment perspective. Concurrently the Company organized diverse appreciation activities aligned with Survey results indicate that employees highly recognize the team atmosphere humanistic environment and job security while

key milestones such as International Women's Day distributing holiday gifts and care packages to consistently convey respect expressing further expectations regarding logistical services career development pathways and income levels. The Company has

for and support of female employees. implemented targeted optimizations in relevant areas based on actual conditions to continuously enhance employee satisfaction

and organizational belonging fostering the mutual growth of the enterprise and its employees.In supporting employees facing difficulties the Company relies on a mutual aid fund mechanism involving all staff to establish a

dynamic identification and tiered assistance system for such employees. Through regular visits special subsidies and holiday

greetings the Company promptly responds to actual employee needs demonstrating organizational care in subtle details 5.3 Safety Production

while continuously strengthening employees' sense of belonging and corporate cohesion.Nanshan Aluminium has always prioritized employee safety in its business operations. By continuously improving the safety

and health system the Company has established a safety responsibility system covering all production stages and a risk preven-

tion and control network. The Company is committed to cultivating a culture: Safety in all actions safety in all matters safety

at all times. This initiative aims to internalize safety awareness and externalize it into action thereby solidifying the safety

foundation for the Company's sustainable development.Safety Management

Nanshan Aluminium strictly complies with national laws and regulations such as the Work Safety Law of the People's Republic of

China to ensure that all safety management work is carried out in accordance with laws and regulations. On this basis the Company

established an internal policy system including the Safety Management Standards Policy and the Employee Safety Production

Assistance and Support Visits for Employees Facing Difficulties Responsibility System which covers all employees and extends to contractors and other relevant parties forming an integrated

safety management network. We continuously integrate the Company's actual circumstances to carry out safety governance

Democratic Communication practices with distinct characteristics. Through institutionalization systematization and full staff participation we have solidified

Nanshan Aluminium continuously optimizes its methods for democratic management and supervision by establishing and regularly the foundation for safe production within the Company.revising internal policies such as the Employee Complaint (Appeal) Management Procedure Employee Representative Management The Company has established a systematic and clearly hierarchical safety management system. The Company's Board of Directors

Procedure and Information Communication Consultation and Control Procedure fully respecting employees' rights to freedom of oversees overall safety management the Safety Production Committee supervises the implementation of safety responsibilities

speech and freedom of association. To ensure the effective implementation of the Institution we have established open channels across all departments and each subsidiary executes safety policies and measures. This structure establishes a comprehensive

for democratic communication. Through various forms such as employee representative congresses pre- and post-shift meetings safety production responsibility network characterized by "Clear responsibilities at every level shared by everyone and upheld

symposiums and face-to-face interviews with leaders we collect employees' opinions and suggestions regarding the Company. We by each individual." The Company ensures the continuous improvement of the effectiveness and adaptability of its safety manage-

promptly convey the Company's strategy and development dynamics to achieve efficient information flow within the organization. ment system through regular audits performance evaluations and dynamic optimization.To foster an open and transparent communication culture the Company has established multiple anonymous feedback channels Nanshan Aluminium Safety Management Structure

including suggestion boxes dedicated email addresses and confidential hotlines while strictly safeguarding the personal infor-

mation of all respondents. The Company encourages employees to actively voice their opinions and truthfully reflect deficiencies

in operations and management. Every suggestion is ensured to be heard and every piece of feedback receives serious handling Director Safety Production Committee All Departments

driving continuous organizational improvement and enhancement.Responsible for carrying out daily safety

Responsible for super vising management and safety inspection

During the Reporting Period Responsible for the overall co- the implementation of primary work. This system ensures that safety

ordination and deployment of safety production responsibili- management is fully implemented

The collective agreement signing The coverage of employee safety work. ties and the execution of respon- from top to bottom with responsi-

rate for employees was representatives reached sibility systems across all units. bilities assigned to specific individ-

100% 100% uals and execution guaranteed.

40: Nanshan Aluminium's overall employee satisfaction rate in 2024 is 89.90%.126Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report People-Oriented Building an Inclusive Workplace 127

The Safety Production Committee serves as the Company's dedicated governance body responsible for production and workplace

safety. It fully assumes functions including the deliberation and formulation of safety policies the overall coordination of major Intelligent Upgrade of the Natural Gas Leak Detection and Alarm System

safety matters and the supervision and evaluation of the operation of the safety management system. Furthermore it fulfills its

duties to provide guidance and oversight on the Company's overall safety production work. To enhance the inherent safety level of gas usage the Company deployed an IoT-based natural gas leak detec-

Nanshan Aluminium's safety management system continues to undergo verification and optimization in actual operations. We have tion and alarm system in key areas during the Reporting Period. The system is capable of monitoring leakage

obtained the National Work Safety Standardization Level 2 Certification and simultaneously acquired international certifications concentration and location in real time. Upon triggering local audio-visual alarms it simultaneously transmits

including ISO 45001 Occupational Health and Safety Management System and OHSAS 18001. This fully demonstrates the Compa- information to the natural gas company's dispatch platform and the enterprise safety officer. This establishes

ny's systematic standardized and internationalized level of safety management. a multi-level linkage response mechanism involving "on-site operations - enterprise - gas supplier - responsi-

ble person" significantly shortening the response time from warning to disposal and effectively strengthening

Nanshan Aluminium sets clear safety management goals annually and incorporates the achievement of these goals into the perfor- the prevention control and emergency response capabilities regarding gas safety risks.mance appraisal system for senior executives of each department. To ensure the systematic advancement and effective implemen-

tation of safety work we have established a comprehensive list of safety production responsibilities for all employees ensuring

that safety duties are assigned to specific positions and individuals. At the same time a multi-dimensional supervision mechanism

is regularly implemented encompassing hazard identification inspections routine and special inspections as well as seasonal

and holiday oversight. Through continuous safety training emergency drills and thematic publicity campaigns employee safety

capabilities and awareness are comprehensively enhanced promoting full-process integration of safety management from insti-

tutional design to execution.In 2025 the Company had no fatalities fires explosions or incidents of occupational diseases. A total of 10 work-related injury

accidents occurred throughout the year all of which were properly handled and resolved. The work-related injury accident rate

was 0.77‰ below the target of 1.5‰ set at the beginning of the year.During the Reporting Period we established the following safety objectives and achieved all of them.Construction of Risk Monitoring and Early Warning System for Deep Pit Casting Unit

1. No fatalities or injuries.

2. No fire or explosion incidents.

3. No occupational disease incidents involving two or more employees from the same unit occurring For high-risk process links such as deep-pit casting the Company has deployed a safety production risk monitor-

at the same time. ing and early warning system. The system utilizes video intelligent analysis technology to identify unsafe

4. Injury accident rate below 1.5‰. personnel behaviors in real time and simultaneously monitors key process parameters. Upon detecting any

anomalies it immediately triggers an alert achieving dual monitoring of "behavior + parameters" and effec-

Safety Risk Prevention and Control tively enhancing intrinsic safety levels.Nanshan Aluminium has established a safety risk prevention and control mechanism covering the entire process. We employ

a systematic approach to identify and assess various risks in production operations. Based on risk levels we implement differ-

entiated control measures. By integrating routine inspections monitoring and early warning systems and emergency prepar-

edness we establish a management closed-loop centered on prevention. The Company is committed to effectively preventing

and controlling safety risks by continuously optimizing control measures and strengthening process supervision.The Company has established an integrated internal and external risk control mechanism for continuous improvement. We

engage third-party professional agencies annually to conduct comprehensive safety diagnostics identify high-risk segments

in production and operations and formulate response measures through seminars and simulations. Simultaneously the

Company regularly reviews and updates its risk prevention and control mechanisms. Leveraging the dual-layer prevention

mechanism emerging risks are dynamically integrated into existing control processes achieving synchronized enhancement

across the full lifecycle from risk identification and measure formulation to closed-loop management.128Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report People-Oriented Building an Inclusive Workplace 129

Safety Culture Promotion

Visualization Supervision of Hazardous Operations

Nanshan Aluminium integrates safety culture into every aspect of its corporate operations promoting the implementation of a

culture where "safety is a habit and responsibility is self-awareness" through pragmatic actions. We have established a normal-

ized and scenario-based safety training mechanism. Combining actual job requirements accident cases and operating proce-

dures we utilize methods such as on-site instruction and simulation drills to strengthen employees' ability to identify risks

and handle emergency situations. Simultaneously the Company continuously disseminates safety concepts through multi-

For high-risk operations such as special hazardous work and major ple channels including internal meetings and themed activities. It encourages employees to participate in hazard identifica-

inspection and maintenance activities portable law enforcement tion and submit improvement suggestions fostering a benign atmosphere of collabourative safety governance. This approach

recorders are deployed at the work site to monitor the entire process. embeds safety culture into daily operations transforming it into an intrinsic driving force that supports the Company's steady

Regular playback reviews are conducted to alert employees against development. As of the end of the Reporting Period the Company had conducted a cumulative total of 3227 safety training

non-compliant operations. Through the sustained implementation of sessions with a total participation of 132000 person-times.this measure significant effectiveness has been achieved in prevent-

ing violations during high-risk operations inspection and maintenance

activities and special hazardous work.The Company has established a systematic safety inspection mechanism and conducts routine seasonal safety inspections. These First Aid Knowledge Training Accident Warning Educatio and Emergency Training Monthly Routine Training

include specialized inspections for natural gas and electricity in spring and autumn the "Four-Prevention" inspection in summer and

comprehensive safety inspections in winter. Additionally special security assurance measures are organized during major holidays

and critical periods such as the National "Two Sessions" New Year's Day Spring Festival Labour Day and National Day. In addition Contractor Safety Management

the Company regularly implements special inspections on natural gas fire safety outsourced construction and hazardous opera- While strengthening its internal security defenses Nanshan Aluminium extends its commitment to employee life and health

tions supplemented by daily safety patrols to establish a comprehensive safety monitoring system with a clear focus on key areas. to contractors and supply chain partners striving to build a shared-responsibility ecosystem for supply chain safety. In accord-

ance with the relevant standards of ASI (Aluminium Stewardship Initiative) the Company has established the Contractor

(Outsourced Construction) Safety Management System. Both parties are required to sign a Safety Management Agreement

that clarifies safety production responsibilities management areas personnel qualifications emergency response measures

and assessment mechanisms. Furthermore through methods such as safety deposits process supervision and inspection

and performance evaluation a safety collabourative management mechanism covering the entire process from access to

operation and acceptance has been constructed.During the Reporting Period the Company further strengthened safety management for contractors. It explicitly required all

Internal and External Safety Inspections business units to proactively respond and assist partners in resolving difficulties encountered in work safety. Additionally a

mechanism for conducting safety inspections at least once per month was implemented to timely track and urge rectification

In terms of accident prevention and control the Company has established a multi-dimensional safety management and risk of any identified accident hazards. In 2025 the Company introduced Key Elements for Developing Safety Management Agree-

prevention system. In terms of system construction and diagnosis the Company introduced a deep-well casting safety produc- ments to provide a standardized basis for signing clear and effective safety agreements.tion risk monitoring and early warning system and commissioned a third-party professional institution to conduct a system-

atic safety diagnosis and an assessment of the current safety status in high-risk industries thereby establishing an evaluation

mechanism that combines technical prevention with human defense.In terms of risk identification and control all units conducted a comprehensive inspection of the 2025 production processes

equipment facilities chemical storage and upgrades to protective devices. This identified 114 significant risk points which

were subjected to scientific grading assessment and control. The Company has established a hierarchical control ledger and

implemented a fixed-point inspection and check-in system for leading cadres to ensure that risks are controlled and hidden

dangers are closed-loop managed.In terms of process optimization the Company replaced liquid ammonia with liquid nitrogen in the mold heat treatment

process to substitute high-toxicity substances with low-toxicity ones achieving source substitution for hazardous chemicals

and enhancing the inherent safety level of production.130Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report People-Oriented Building an Inclusive Workplace 131

During the cooperation process the Company systematically focused on all aspects of supplier safety including strict approval

and management of hazardous operations standardized provision and use of labour protective equipment enhanced safety

supervision at construction sites implementation of pre-entry safety training and briefings and strengthened control over

fire and electricity usage as well as high-risk operations. Through the aforementioned measures the Company has effectively

integrated safety management requirements throughout the entire cooperation process and safeguarded the safety of every

worker with concrete actions.Contractor Safety Management Measures

* All approved contractors must fully comply with ASI's safety management requirements.* Contractors must sign a safety management agreement with the company clearly defining the

Contractor responsibilities and obligations of both parties in safety production management ensuring that

Tendering both adhere to safety regulations during construction and maintain a safe working environment.* Contractors must comply with all safety management regulations in the operating location and

actively integrate into and follow local safety management standards.* They must actively cooperate with Nanshan Aluminium in safety hazard identification and

on-site audits working together to identify and eliminate potential safety hazards to ensure a

safe and harmless working environment.Contractor Daily * Regular on-site inspections should be conducted to ensure that all safety measures are Nanshan Aluminium Occupational Hazard Factor Evaluation

Management effectively implemented thereby minimizing accident risks.* Strict adherence to the work approval system must be emphasized with any work requiring Regarding employee health protection Nanshan Aluminium has established a multi-level guarantee system: work-related

thorough approval processes. Work can only be carried out after assessing risks and developing injury and accident insurance is purchased for all employees while work safety liability insurance achieves 100% coverage

appropriate protective measures. for high-risk positions (with an investment of 411100 RMB during the Reporting Period covering 5992 individuals) thereby

constructing a risk protection network. In addition the Company has established a systematic employee health management

system by organizing annual health examinations for all employees and conducting specialized screenings for key risk areas

* Contractors are required to continuously train construction personnel ensuring that only such as cardiac health and blood pressure to systematically identify populations with health risks. Based on the screening

Contractor those who have passed the training are permitted to enter the construction site.Training results we implemented a tiered tracking and management mechanism. For personnel in key positions and those with abnor-

mal indicators we enforced daily monitoring by work teams and blood pressure checks for each shift establishing a complete

health management closed loop from screening to early warning and intervention.Occupational Health

During the Reporting Period to enhance emergency response capabilities Nanshan Aluminium

Upholding the safety management strategy of 'Safety First Prevention-Oriented and Comprehensive Governance' Nanshan

plans to collabourate with the Red Cross and relevant medical institutions to conduct systematic

Aluminium is committed to providing a solid occupational health and safety guarantee for all employees. Through routine risk

screening and emergency response mechanisms the Company has established a closed-loop system centered on prevention first aid training. This initiative aims to cultivate professionally certified first aid personnel across

involving all staff and focused on continuous improvement. This approach effectively safeguards employees' safety rights all teams ensuring that the"Golden Rescue Hours"can be secured during

and occupational well-being promoting synchronized development between employees and the Company. unexpected incidents thereby effectively safeguarding employee health and the safe operation

of the Company.We strictly comply with occupational safety laws and regulations such as the Law of the People's Republic of China on Preven-

tion and Control of Occupational Diseases and Workplace Occupational Health Supervision Regulations establish and improve In the construction of occupational health and safety culture the Company continues to integrate core concepts into daily

internal policies including the Occupational Health Management System and strive to build a scientific and rigorous system operations. Through monthly routine safety training and annual thematic campaigns—such as "Safety Production Month"

for occupational disease management and prevention. We systematically advance the identification assessment and graded "119 Fire Safety Promotion Day" and "Occupational Disease Prevention and Control Publicity Week"—the Company strength-

control of occupational hazard risks. Based on risk levels we develop specialized prevention and control plans to strengthen ens employees' risk awareness and protective capabilities. This initiative aims to internalize the concept of occupational health

our capacity for timely intervention in early abnormal situations. In addition we annually engage qualified third-party profes- and safety in minds and externalize it in actions making it an integral part of employees' daily behavioral habits.sional agencies to conduct comprehensive testing and evaluation of occupational hazard factors in the workplace. We incor-

porate newly established positions into a dynamic identification and monitoring system to ensure that occupational health

management fully covers and permeates all links of production and operation.132Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report People-Oriented Building an Inclusive Workplace 133

Nanshan Aluminium Occupational Health & Safety Protection Measures Nanshan Aluminium Occupational Health & Safety Protection Measures

Occupational Disease Hazard Identification and Control Improving the Working Environment

* Establish the Safety Production Risk Classification and Control Management System and Special Operations

Personnel Management System * Provide free protective equipment to employees based on front-line business needs. clearly defining the standards and basis for risk assessment.* Install air conditioning in high-temperature workshops.* Continuously advance the classification and control of occupational disease hazards hazard identification

and rectification risk assessment and control achieving regular management of occupational hazard risks. * Distribute anti-heat medicines food etc. during the summer high- temperature season.* Regularly engage third-party testing agencies to conduct occupational hazard detection in the workplace. * Conduct on-site occupational hazard factor testing and strengthen on-site protective facility management

based on test data.* Regularly inspect special equipment.Regular Employee Health Checks Implementing Safety Culture Promotion

* Regularly conduct occupational disease prevention training occupational health awareness weeks and

* Conduct physical health screenings for employees and issue health risk notifications to employees with other cultural promotion activities.high occupational disease risks.* Distribute standard operating procedure manuals to positions with potential occupational disease risks.Occupational Health Training Special Inspection on Occupational Health Protection Occupational Health Promotion and DisseminationSymbiotic Supply Chain

Building a New Ecosystem

Together

Nanshan Aluminium adheres to the development concept of win-win cooperation

and shared responsibility and is working to establish fair transparent and mutually

beneficial partnerships with suppliers. The Company continues to strengthen

supplier management standardize raw material procurement processes and work

with suppliers to implement ESG responsibilities. While advancing the construction

of a responsible supply chain the Company actively focuses on social development

and public welfare in its operating locations. Through various means it participates in

community building to achieve mutual benefit and integration with the community

promoting coordinated development between the enterprise and society.136Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report Symbiotic Supply Chain Building a New Ecosystem Together 137

Supplier Admission

6.1 Responsible Supply Chain Nanshan Aluminium has established a dynamic assessment mechanism covering the entire lifecycle within its supplier manage-

ment system. Through a three-tier screening process of "pre-qualification review—sample verification—on-site audit" the

Company conducts systematic assessments and layered management of suppliers' qualifications capabilities technical

Nanshan Aluminium has established and perfected a full-lifecycle management mechanism covering supplier access

processes and quality stability. During the Reporting Period the Company further optimized its supplier admission model.evaluation cooperation and exit. Through rigorous screening and evaluation processes the Company ensures that

By strictly ensuring technical specifications and compliance requirements it effectively shortened the approval cycle thereby

suppliers comply with its sustainability requirements in areas such as environmental management occupational health and

enhancing admission efficiency and supply chain responsiveness.safety business ethics and human rights protection thereby continuously fostering an integrity-driven transparent and

sustainable procurement environment. At the same time the Company continuously optimizes its supply chain management By establishing an online intelligent bidding platform we have achieved full-process digitalization and transparent manage-

and layout establishes a mechanism for identifying and responding to supply chain risks enhances supply chain resilience and ment covering demand publication competitive bidding and performance evaluation. Tender information is simultaneously

ensures the stability of production operations. published through channels such as the "Nanshan Official Website" and the "China Bidding Network". A dedicated email

address for disciplinary inspection and supervision has been established to facilitate reporting channels strengthen multi-

Supplier Management party oversight mechanisms and continuously foster a procurement environment characterized by openness equity and

Nanshan Aluminium strictly complies with relevant laws and regulations such as the Civil Code of the People's Republic of fairness. In 2025 the Company onboarded more than 90 new cooperative suppliers covering emerging fields such as green

China and the Bidding and Tendering Law of the People's Republic of China. The Company continuously implements inter- materials and intelligent equipment thereby providing support for supply chain structural optimization and high-quality

nal policies including the Supplier Management Procedures and the ASI Management Procedure for Suppliers (Contractors business development.and Service Providers) thereby clarifying supplier management standards and requirements. The Company requires its Nanshan Aluminium Supplier Admission Process

cooperative suppliers to comply with applicable laws and regulations in China and the locations of their operations regarding

environmental protection procurement compliance and human rights protection ensuring that procurement activities are Qualification Review On-site Investigation

conducted in accordance with the law. During the Reporting Period the Company updated its policies to include requirements

for paid-in capital and mandated that suppliers sign the Environmental Protection Agreement thereby further strengthening * The Supply Department prepares the investigation plan

* Supplier submission of information

integrity and compliance management within the supply chain and ensuring the quality of procurement and bidding processes. in advance

* The Supply Department reviews the business * Investigate the supplier's operational status according

In 2025 Nanshan Aluminium continued to advance the digital transformation of supply chain and further optimized the license three-year financial statements cooper- to the plan

Supplier Digital System (NC System). The system integrates core functions such as purchase order management and supplier ation contracts and account opening permis- * Regular on-site investigations of successful suppliers

information management to achieve digitalization and efficient management of the entire supplier lifecycle further enhancing sions etc. * Completion of the Supplier Admission Evaluation Form

supply chain management efficiency and transparency. * Supplier and supply information archiving

* Initial review of supplier qualifications

Supplier Full Process Management Approved for entry into the system* Small-scale trial run

* If assessment is passed the supplier is added to the list

of qualified suppliers

Supplier Admission Supplier Evaluation

Nanshan Aluminium has established and continuously improved its supplier classification management system. Based on the

* Open Tendering on Online significance of supplied materials to product processing and production we categorize suppliers into Category I Category II

Platform * On-Site Inspection and Category III. We have established differentiated bidding management and daily supervision mechanisms for each supplier

* Self-Nomination is Allowed * Supplier Performance Scoring category to enhance the precision and effectiveness of supply chain management.* Supplier Classification * Adjusting Supplier Three Categories of Suppliers for Nanshan Aluminium

* Signing of ASI Social Procurement Rating

Responsibility Commitment

Category I Suppliers (20%) Category II Suppliers (40%) Category III suppliers (40%)

Category I suppliers primarily include raw and Category II suppliers primarily refer to

auxiliary material suppliers who directly participate those that have a significant impact Category III suppliers primar-

in the product processing process and have a critical on the quality of the final product but ily include material suppliers

Supplier Exit Supplier Communication impact on final product quality. This category also and Collaboration have relatively low safety performance who have direct contact with encompasses certain Category II material suppli- requirements. The Company further the final product but exert

* Supplier Training ers. Although their supplied products are not used as * Eliminate Unqualified classified Category II suppliers into minimal influence on product primary raw or auxiliary materials they are included

Suppliers Based on * Regular Communication Key Category II Suppliers and Impor- quality and are not subject to in Category I for key management due to their

Performance Scores * Industry Exhibitions and tant Category II Suppliers implement- safety performance require-high consumption volume direct impact on product

Annual Conferences ing differentiated management based ments.quality and the potential for significant quality risks on the level of Risk.or economic losses should non-conformities occur.138Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report Symbiotic Supply Chain Building a New Ecosystem Together 139

Supplier Evaluation Supplier Elimination

We have established a comprehensive supplier performance evaluation system. The Procurement Department and Quality Nanshan Aluminium implements a dynamic management mechanism for suppliers and establishes corresponding supplier

Department jointly conduct monthly supplier assessments evaluating suppliers across multiple dimensions including delivery elimination regulations. For suppliers whose product quality fails to meet standards over the long term who fail to implement

efficiency product quality service responsiveness and price reasonableness. Comprehensive scores are compiled to gener- rectification measures effectively or refuse to cooperate with improvements and those engaging in violations of business

ate annual supplier evaluation results at the end of the year. Simultaneously the Company conducts regular on-site audits ethics and integrity compliance the Company will promptly take measures such as restricting cooperation or terminating

and field inspections implementing differentiated management and dynamic assessments based on supplier categories to cooperation in accordance with relevant policies and include them in the supplier exit management procedure. By continu-

promptly identify and disqualify suppliers that do not meet requirements. Based on the assessment results the Company ously optimizing the supplier structure the Company ensures long-term partnerships with partners who are honest compli-

categorizes suppliers into four tiers and prioritizes collabouration with high-performing suppliers in higher tiers to continu- ant stable in quality and reliable in performance jointly promoting sustainable supply chain development.ously optimize supplier structure and cooperation quality.Nanshan Aluminium Supplier Elimination Policy

Supplier Performance Evaluation Rating and On-Site Audit Frequency

The Assessment The Cooperation Process

Category I Key Suppliers Score is Unacceptably Low is Impeded

Violation of Business Ethics

Monthly performance evaluation annual performance rating supplier on-site audit (once every three years or as required For suppliers who violate business

by the client) ethics and integrity compliance

requirements during the coopera-

For suppliers with an annual assess-

tion process the Company adheres

ment score below 70 points if alter-

to a 'zero tolerance' principle and

Category II Key and Important Suppliers native suppliers exist in the market Suppliers that refuse to cooperate will take measures such as terminat-

that can provide similar products with improvement or rectify issues

ing cooperation and blacklisting

processes or services and meet regarding quality delivery sched-

Monthly performance evaluation annual performance rating for those with continuous performance over six months Category them in accordance with laws and the Company's supply assurance ules or after-sales service discov-

II key supplier on-site audit (once every three years or as required by the client) regulations. Non-compliant circum-requirements the Company will ered during the collabouration

stances include but are not limited

terminate its procurement cooper- process will be eliminated and exit.to bid rigging collusive bidding

ation with them and revoke their

rotating winning bids fictitious

status as qualified suppliers.transactions establishment of shell

Category III General Suppliers companies falsification of informa-

tion and forgery of qualifications.Monthly performance evaluation annual performance rating for suppliers with continuous performance over twelve months

Supplier Classification Mechanism

For assessment results of 90 points or above (inclusive):

The supplier is classified as a Level I supplier and shall be given priority for procurement cooperation.For assessment results ranging from 80 to 90 points (inclusive of 80 points):

The supplier is classified as a Level II Supplier. An annual on-site audit for supervision shall be conducted and the supplier shall

be assisted in rectification with ongoing supervision.For assessment results ranging from 70 to 80 points (inclusive of 70 points):

The supplier is classified as a Level III supplier. An annual on-site audit for supervision shall be conducted and the supplier Supply Chain Risk Management

shall be assisted in rectification with ongoing supervision.Nanshan Aluminium continues to refine supply chain resilience management system. Through intelligent inventory manage-

For assessment results below 70 points: ment strategic supplier collabouration and risk warning mechanisms the Company consistently identifies and manages

If other suppliers providing the same products/processes/services can fully guarantee supply procurement from them shall potential supply chain risks. This ensures the stable supply of key raw and auxiliary materials as well as production support

be terminated and their status as qualified suppliers shall be revoked. materials enhances the supply chain's ability to withstand risks and emergency response capabilities and supports the conti-

nuity and stability of the Company's production operations.140Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report Symbiotic Supply Chain Building a New Ecosystem Together 141

Nanshan Aluminium Supply Chain Risk Management Measures Supplier On-Site Audit Assessment Criteria42

Initiatives Specific Measures

* Regularly organize emergency drills for interruptions in the supply of raw and auxiliary Quality Management Environment Health

Safety Inventory materials to enhance supply assurance capabilities during unexpected incidents and ensure System and Safety

Management and the continuity of production operations. (QMS) (EHS)

Emergency Incident * Dynamically monitor safety stock levels to ensure adequate inventory and alternative supply

Response capabilities for critical materials thereby enhancing rapid response capabilities.Corporate Social

* We continue to implement the Supplier Whitelist Management policy deepen strategic Responsibility

partnerships with high-quality suppliers and ensure the delivery cycle price stability and (CSR)

Strengthen strategic quality controllability of material supplies.supplier partnership * For bulk materials and other production critical resources work closely with 2-3 long-term

management strategic suppliers. For routine material categories establish stable relationships with at

least five suppliers.Nanshan Aluminium Supplier Sustainable Development Evaluation Dimensions

* Monthly evaluations to understand suppliers' operations incorporating human rights and

social responsibility factors into the assessment and conducting on-site audits when neces- Evaluation Dimension Assessment Content

Enhance suppliers' ESG sary.practice capabilities * Enhance suppliers' ESG management capabilities through supplier training assistance and * Integrating ASI requirements into routine management requiring relevant suppliers to sign the

initiatives reducing potential compliance risks. ASI Social Responsibility Commitment and ensuring compliance with product quality environ-

mental protection health and safety business ethics human rights and other related clauses.ASI Guidelines Additionally collect procurement information for additional minerals including aluminium

Requirements

To continuously enhance the capabilities of procurement personnel Nanshan Aluminium regularly organizes training sessions. copper chromium lithium natural graphite nickel silver and zinc.The content covers the Company's procurement process policies operational methods for the NC system relevant laws and * Regularly conducting on-site audits and assessments of core raw material suppliers evaluating

regulations governing procurement as well as professional courses in the CPPM series 41. In 2025 we conducted 6 procure- their QMS EHS and CSR practices.ment training sessions and examinations to ensure that employees fully master the skills required for procurement work.* Compliance with national and local environmental laws and regulations.Sustainable Supply Chain * Prioritizing cooperation with suppliers of green electricity aluminium raw materials and encour-

aging suppliers to use clean energy and green packaging.To further build a responsible and sustainable supply chain Nanshan Aluminium continues to promote suppliers in jointly

Environment * Conducting regular environmental monitoring and inspections of suppliers to ensure compli-

fulfilling their sustainability responsibilities. The Company incorporates suppliers' performance in environmental protec- Safety Labour and ance and promoting suppliers' active environmental protection efforts to reduce toxic emissions

tion occupational health and safety labour and human rights and business ethics into its supplier assessment system and Human Rights in the supply chain.issues improvement recommendations and rectification requirements based on the evaluation results. For suppliers failing to * Ensuring safe production practices and safeguarding employees' occupational health and safety.meet sustainability-related assessment criteria the Company will implement management measures ranging from warnings * Prohibiting the employment of child labour forced labour or any work that harms physical

and cooperation restrictions to reduced procurement allocations and termination of cooperation depending on the sever- health.ity of the circumstances. These actions aim to continuously enhance the overall compliance level and sustainable manage-

ment capabilities of the supply chain. * Compliance with national and local environmental laws and regulations

* All cooperating suppliers are required to sign documents of integrity constraints including the

Sustainable Supply Chain Management Business Ethics Sunshine Commitment Integrity Commitment and ASI/RBA Social Responsibility Acknowl-

Nanshan Aluminium implements a classified and graded management system for suppliers and strengthens supervision and and Integrity edgment.evaluation of suppliers regarding quality environmental protection occupational health and safety and labour human rights * If any violations occur we reserve the right to terminate the cooperation or refer the case to

based on the grading results. In 2025 the Company conducted a total of 240 on-site audits related to ESG and social respon- judicial authorities

sibility for suppliers. The Company regularly organized internal and external audits within the ASI and RBA frameworks to * All core suppliers have signed the Commitment to Not Use Conflict Minerals and provided the

continuously monitor and ensure compliance with labour rights and human rights management throughout the supply chain. Conflict Minerals Conflict-Free Mineral Investigation Report.During the Reporting Period the Company conducted on-site audits of 6 core raw material and auxiliary material suppliers

and carried out questionnaire surveys for 3 suppliers. No major violations were found.

42: The on-site audit primarily covers the following areas: 1) QMS: Conducting relevant audits focused on the Quality Management

41: The Certified Professional Purchasing Manager (CPPM) series of courses also known as the Registered Professional Purchasing System; 2) EHS: Conducting relevant audits centered on system management occupational health occupational safety working at

Manager series. heights chemicals and emergency preparedness; 3) CSR: Conducting relevant audits addressing labour rights human rights compen-sation and benefits fair trade anti-corruption responsible sourcing supplier management and management systems.142Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report Symbiotic Supply Chain Building a New Ecosystem Together 143

The Company actively aligns with the ASI international sustainable aluminium standard incorporating key ESG elements such Diligence of Minerals from Conflict-Affected and High-Risk Areas and constructed a mineral traceability and due diligence

as conflict minerals control and carbon footprint traceability into supplier access and management requirements. Through a mechanism covering the supply chain. We require core suppliers to sign the Commitment to Not Use Conflict Minerals and

compliance review mechanism the Company strengthens raw material source traceability management to ensure that supply submit a Conflict-Free Mineral Investigation Report along with supporting documents such as certificates of origin and inspec-

chain raw material tracing complies with the Company's relevant regulations. In 2025 the Company required ingot suppli- tion certificates to ensure that the mineral sources of our procured products are clear and traceable. The Company firmly

ers to incorporate ASI certification requirements into routine management. The Company organized internal ASI training and opposes and prohibits the procurement of any metal raw materials sourced from armed conflict zones illegal mining opera-

gap analyses while providing guidance and support to address challenges encountered by suppliers during the certification tions or environments characterized by substandard working conditions.process. These efforts aim to drive continuous improvement in their management practices and performance regarding labour

rights and human rights. In addition we conducted investigations to determine whether additional mineral resources such as Nanshan Aluminium's Commitment:

gold tantalum tin tungsten cobalt and aluminium originate from conflict-affected areas and subsequently compiled the

Conflict-Free Mineral Investigation Report. The Company firmly does not support or use any metals originating from armed conflict zones illegal mining activi-

Supply Chain Integrity ties or conditions of severe labour exploitation commonly referred to as 'conflict minerals'. Suppliers shall conduct

Excerpt from the Sunshine Commitment source investigations for metals such as Gold (Au) Tantalum (Ta) Tin (Sn) Tungsten (W) and Aluminium (Al) contained

We continue to strengthen integrity in their products and verify the legality and compliance of these metal sources in accordance with the OECD Guidance

and compliance management within for Responsible Supply Chains Due Diligence of Minerals from Conflict-Affected and High-Risk Areas43.* Commit to and ensure strict compliance with relevant laws and regulations

our supply chain. We require suppliers in all business activities with Nanshan Aluminium adhering to principles of

to sign the ASI/RBA Social Respon- openness fairness justice and integrity not seeking improper benefits or

sibility Commitment Receipt Integ- trading opportunities and refraining from engaging in improper transactions. Supplier Support and Communication

rity Commitment Letter and Sunshine * Commit to and ensure possession of all licenses qualifications approvals

permits certificates and any other documents required for related business Nanshan Aluminium has established and continuously improved the supplier assistance mechanism. This initiative targets Commitment Letter clearly defining

and that the goods provided meet the technical requirements specified by suppliers with substandard after-sales quality performance those posing potential risks in new business development and their responsibilities and commit-

Nanshan Aluminium in compliance with relevant laws and regulations. strategic partners conducting specialized assistance and capability enhancement activities lasting several months. The

ments regarding social responsibil-

* Commit to and ensure no discrimination in pricing or sales policies towards Company assists suppliers in enhancing product quality production efficiency and operational management levels through

ity business ethics and integrity Nanshan Aluminium with transaction prices and sales policies not exceeding specialized training on-site guidance and management improvement recommendations. By providing technical support

compliance. During the Reporting those offered to any third party in the market. aligned with the Company's product requirements the Company drives suppliers to develop high-performance products and

Period no integrity violations or disci- * Commit that our company and representatives will keep any commercial foster innovation. For suppliers that have not experienced recurring issues for three consecutive months during the support

plinary incidents involving suppliers information and secrets related to Nanshan Aluminium confidential during period we will evaluate their improvement outcomes and exit the special support management program.and procurement personnel occurred the bidding process.within the Company. Nanshan Aluminium continues to deepen collabourative cooperation with suppliers. Through technical exchanges on-site

trials and process optimization the Company assists suppliers in enhancing product performance and production efficiency

Green Supply Chain thereby promoting improvements in overall supply chain quality and sustainable development levels. In 2025 the Company

Nanshan Aluminium actively responds to the national "Dual Carbon" strategy and requirements for green low-carbon development implemented multiple supplier support initiatives focused on key production materials and equipment achieving positive

continuously advancing decarbonization management within its supply chain to meet downstream customers' demand for green results in enhancing product quality reducing resource consumption and optimizing production efficiency.products and low-carbon materials. The Company is committed to addressing carbon emissions at the source by monitoring the

Furthermore we continuously refine our communication and feedback mechanisms and actively conduct supplier engage-

full lifecycle carbon performance of its products. It encourages suppliers to implement energy conservation and emission reduction

ment activities to strengthen mutual understanding and consensus regarding industry trends key collabouration priorities

measures develop green products and prioritize the adoption of clean energy sources such as solar wind and hydro power. At the

and management requirements thereby fostering long-term and stable cooperation. Suppliers may provide feedback regarding

same time the Company encourages packaging reduction and advocates that suppliers promote the use of renewable and biode-

any issues encountered or suggestions made during the cooperation process through the Company's public channel: Supplier

gradable green materials in their production and operations actively apply green processes technologies and equipment jointly

Complaint Email (group-gysts@nanshan.com.cn). The Company has assigned dedicated personnel to receive and follow up on

enhance the low-carbon transformation capability of the supply chain and build a more sustainable green supply chain system.matters respond promptly and coordinate with relevant departments for resolution ensuring closed-loop problem solving

During the Reporting Period we signed an Environmental Protection Agreement with all suppliers. The agreement explicitly stipu- and maintaining the smoothness and stability of cooperation.lates that suppliers must strictly comply with national and local environmental protection laws and regulations throughout the

entire process of product and service provision and actively adopt effective measures to prevent and reduce environmental pollu-

tion. At the same time Nanshan Aluminium requires suppliers to ensure that their products fully comply with the environmental

restricted substance standards stipulated in the Company's policy titled Procedures for Prohibited or Restricted Environmental

Management Substances and meet the latest requirements of the EU RoHS Directive and REACH Regulation. This ensures that

hazardous substance concentrations are controlled within prescribed safety thresholds thereby promoting sustainable develop-

ment across the entire value chain.Conflict Minerals Management

Nanshan Aluminium has established and continuously improved its mineral procurement management system strictly adher- 43: Due Diligence - Organisation for Economic Co-operation and Development

ing to the Organisation for Economic Co-operation and Development (OECD) Guidelines for Responsible Supply Chain Due144Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report Symbiotic Supply Chain Building a New Ecosystem Together 145

believe that corporate growth is inextricably linked to

6.2 Giving Back to Society community prosperity. We are committed to fostering

goodwill and building consensus at every stage of devel-

opment working together with the community toward

a more sustainable future. In 2025 Nanshan Aluminium

Nanshan Aluminium has always upheld corporate responsibility and commitment actively giving back to society and fulfill- donated milk and other food items to the Xufu Street

ing its pledges to public welfare charity and community protection through concrete actions. We are fully committed to safeguard- Nursing Home to extend greetings to the elderly in the

ing the community environment and actively building communication channels. We strive to foster a harmonious ecosystem where community.the community and society coexist in symbiosis working hand in hand with all sectors of society to create a better future together.Community Protection Nanshan Aluminium's Commitment:

In natural resource development and project operations Nanshan Aluminium strictly adheres to internal policies such as the The Company strictly complies with national laws and regulations actively communicates with local communities

and strives to mitigate adverse impacts of its operations on these communities. The Company is fully committed

Management Procedures for the Protection of Indigenous Peoples'Rights to Self-determination Prior and Informed Consent to safeguarding the legal and traditional rights of local communities regarding their land livelihoods and use of

while conducting activities based on respect for indigenous rights. We have established dedicated communication and griev- natural resources while making unremitting efforts to promote community development.ance channels and systematically advanced work around issues such as labour rights gender Equality and land expropria-

tion to safeguard the legitimate rights and interests of indigenous peoples.Simultaneously in accordance with the Local Community Impact Control Procedure we prioritize collabouration with indig-

enous peoples and local institutions at all project stages continuously assessing the social and environmental impacts of our Shandong Rural Revitalization

operations on the community. For identified potential risks we have established a rapid response and adjustment mechanism

to strive for protecting community traditional culture and the environment while promoting development thereby achieving Nanshan Aluminium actively leverages our industrial chain advantages to deeply participate in rural revital-

long-term harmonious coexistence between operations and the community. ization in China through industrial assistance. In places including Zhaoyuan Shandong the Company has

effectively revitalized the rural economy by driving the development of supporting aluminium processing

Nanshan Aluminium's Commitment: industries. The annual income of the assisted village collective has exceeded RMB 10 million. Meanwhile stable

local employment opportunities have been created and skills training programs have been launched. This has

The Company fully respect the fundamental rights of indigenous peoples including but not limited to the right to survival the established a long-term mechanism of "promoting development through industry and driving income growth

right to development the right to use natural resources (such as mines land and scenic areas) the right to benefit sharing through employment" demonstrating the Company's concrete actions in advancing common prosperity.and the right to free prior and informed consent. The Company commits that during the implementation of new construc-

tion reconstruction expansion closure decommissioning divestment or expropriation of natural resources for projects it

will never collude with local governments and will strictly provide compensation or resettlement in accordance with laws and

regulations following the expropriation of natural resources. The Company further commits to conducting communication

in advance and treating indigenous peoples fairly and equitably regarding recruitment job assignments remuneration and

career advancement thereby eliminating any form of discrimination. Warm Ramadan Visits Conveying Holiday Care

During the project implementation phase Nanshan Aluminium strictly

adhered to the professional guidance of the cultural relics administrative depart- Nanshan Aluminium's Commitment:

During the Ramadan period in 2025 management and employee representatives of Nanshan Aluminium's

Indonesia factory conducted pre-holiday outreach activities at local orphanages nursing homes and communi-

ment and carried out relevant work in accordance with the Regulations on the

The Company fully respects freedom ties. A total of over 3000 packages of essential living supplies including rice flour and cooking oil were distrib-Protection of Cultural Relics and Religious Sites. We consistently incorporate

of religious belief in the locations where we uted while sincere blessings were conveyed to residents. This event continued the Company's long-standing environmental social and economic benefits into the Integrated assessment.operate and we are dedicated to carrying out tradition of being deeply rooted in the local community and celebrating important festivals together with

For cultural sites and religious sanctuaries involved we adopt a prudent strategy protection work for cultural sites and religious residents reflecting humanistic care in a cross-cultural context.prioritizing avoidance and protection with necessary Migration as a secondary sanctuaries in compliance with applicable

measure. If a project is identified as potentially impacting local cultural herit- laws and regulations during daily operations.age we immediately implement corrective measures to fully ensure the integ-

rity and safety of the cultural heritage.Philanthropic Care

Nanshan Aluminium integrates community co-construction into corporate development trajectory and fulfills our respon-

sibility to the local society through concrete actions. Through initiatives such as supporting education conducting holiday

care programs and organizing volunteer services we continuously infuse warmth and vitality into the community. We firmly146Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report Appendix 147

Appendix * Integrity Management Procedures * Employee Complaint (Appeal) Management Procedure

* Marketing Management System * Employee Representative Management Procedure

ESG Policies and Key Institutions * Salesperson Code of Conduct * Safety Management Standard Policy

* Customer Satisfaction Measurement Procedures * Policy on Hazard Investigation and Governance

ESG Governance * Contractor (Outsourced Construction) Safety

* Production Process Control Procedure

Management System

Work System of the Sustainability (ESG) Committee of Shandong Nanshan Aluminium Co. Ltd.* Non-Discrimination Management Procedure * Institution for Infrastructure and Working Environment

Environment * Non-Emotional and Physical Abuse Management * Safety Production Risk Classification and Control

Procedure Management System

* Environmental Protection Management Policy * Management Policy for Greenhouse Gas Inventory * Protection of Minor Workers Management Procedure * Special Operations Personnel Management System

* Nanshan Aluminium Environmental Information * Emergency Response Plan of Shandong

Mandatory Disclosure Policy Nanshan Aluminium Co. Ltd. * Prohibition of Forced Labour Management Procedure * Supplier Whitelist Management

* Nanshan Aluminium Biodiversity Conservation

* Risk and Opportunity Control Procedures * Management Procedures for the Protection ofIndigenous

Management Procedure * Prohibition of Child Labour and Remedial Measures Peoples' Rights to Self-determination Prior andInformed

Management Procedure

* Greenhouse Gas Emission Targets and Consent

* Sewage Discharge Control Procedure

Implementation Plan * Management Procedure on Rights to Organize Trade

* Control Procedures for Local Community Impact

* Regulations on the Management Procedures and Unions and Collective Bargaining

* Atmospheric Pollutant Emission Control Procedure

Requirements for Hazardous and Toxic Waste

* Table of Post Wage Rates * ISO 9001 Quality Management Manual

* Nanshan Aluminium Solid Waste Standardized

Management Measures * Salary Adjustment Methods

Social

Corporate Governance

* Occupational Health and Safety in the Working * Management Procedures for Protection of

Environment Women Employees * Investor Relations Management System * Risk and Opportunity Control Procedures

* Safety Production Responsibility System for

* Workplace Occupational Injury First Aid

All Employees * Information Disclosure Management Methods * Data Security Management System

* Safety Production Responsibility System * Safety Management Agreement

* Anti-Corruption Policy * Information Management System

* Key Elements for Developing Safety Management

* Safety Production Inspection Policy

Agreements * Supplier Code of Conduct * Implementation Details for Business Secret Management

* Intellectual Property Protection

* Occupational Health Management System

Management Policy Manual * Integrity Self-Discipline Commitment * Network Information Management System

* After-Sales Service Control Procedures * Supplier Management Regulations * Supplier RBA Commitment * Network Information Center Rules and Regulation

* Management Procedures for Implementation of ASI

* Control Procedures of Processes Related to Customers

by Suppliers (Contractors and Service Providers) * Business Ethics Agreement

* Customer Satisfaction Measurement Control * Management Procedure for Prohibiting the Use

Procedure of Minerals from Conflict-Affected Areas

* Information Exchange Consultation and

* Product Service Management Regulations

Communication Control Procedure148Shandong Nanshan Aluminium Co. Ltd.|2025 Environmental Social and Governance Report Appendix 149

Index of Indicators Reader Feedback Form

Index of Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of Listed Companies—

Sustainability Report (Trial)

Dear Reader:

The corresponding chapter of this Reporting Thank you very much for your attention to and support of Nanshan Aluminium's ESG work. To provide you with more professional

Disclosure Requirements (If the relevant issues are not disclosed provide a full

explanation in accordance with Article 7 of the Guidelines.) and valuable environmental social and governance information and to further enhance the quality of Nanshan Aluminium's ESG

Reporting we welcome your responses to the relevant questions in the reader feedback form.Addressing Climate Change Responding Climate Change

Pollutant Emissions Protecting Nature 1. Are you satisfied with the Reporting Please provide your evaluation.Waste Disposal Protecting Nature

Ecosystem and Biodiversity Conservation Environmental Management 2. Do you believe that our fulfillment of social responsibilities has been fully disclosed

Environmental Compliance Management Environmental Management

Energy Utilization Responding Climate Change

3. Is the information you wish to know fully disclosed in the Reporting

Water Resource Utilization Protecting Nature

Circular Economy Circular Economy

Rural Revitalization Giving Back to Society 4. What suggestions do you have for improving the Reporting

Social Contribution Giving Back to Society

Innovation-Driven Innovation and R&D

Technology Ethics Innovation and R&D

Your Information:

Supply Chain Security Responsible Supply Chain

Responsible Supply Chain Name

Treat SMEs equally

No overdue payments to SMEs exceeding the agreed terms.Safety and Quality of Products and Services Product Quality Work Unit

Data Security and Customer Privacy Protection Information Security and Privacy Protection

Position

Eager to Attract Talent

Employees Employee Care Fax

Safety Production

Due Diligence Responsible Supply Chain Contact Telephone Number

Stakeholder Engagement Stakeholder Engagement

E-mail

Anti-Bribery and Anti-Corruption Ethical Operations

Anti-Unfair Competition Ethical Operations

Voluntarily Disclosed Topics /