Contributing to the Sustainable Development of New Energy for the World
2025
Chengtun Mining Group Co. Ltd.Sustainability Report
52F Iport International Tower
No.81 Zhanhong Road Xiamen Fujian China
Make A Contribution To The Sustainable Development
Of World New Energy
Chengtun Mining Co.Ltd
2025
Sustainability ReportMISSION We Transform Resources for a Beer World
VISION Contributing to the Sustainable Development of New Energy for the World
CHENGTUN MININGContent
CONTENT
Chapter Chapter
01 About This Report 01 / P 06 Green and Low-Carbon Development: 37 / PProtecting Our Shared Planet
CHENGTUN MINING CHENGTUN MINING
Chapter Chapter
02 Chairman’s Message 03 / P 07 Looking Ahead: 67 / PCreating Sustainable Value Together
CHENGTUN MINING CHENGTUN MINING
Chapter Chapter
03 About Chengtun Mining 09 / P 08 People-Centred Development: 79 / PBuilding a Beer Society Together
CHENGTUN MINING CHENGTUN MINING
Chapter
04 Materiality Assessment 19 / P Appendix 1: Independent Assurance Statement for the Sustainability Report
CHENGTUN MINING Appendix 2: Key Performance Indicators
Appendix 3: Index of Compliance with the Shanghai Stock Exchange Self-Regulatory Guidelines
for Listed Companies No. 14 — Sustainability Report (Trial)
Chapter Appendix 4: GRI Standards Content Index
Strengthening Governance
05 25 / Pto Build a Solid Foundation Appendix 5: International Financial Reporting Sustainability Disclosure Standards (IFRS) Indexfor Development
CHENGTUN MINING Appendix 6: Feedback FormChapter One
CHENGTUN Scope of the Report
MININGThis report covers Chengtun Mining Group Co. Ltd. and its subsidiaries (hereinafter referred to as “ChengtunScopeMining” the “Company” or “We”).Reporting Period January 1 2025 to December 31 2025 (the “Reporting Period”).CHAPTER ONE
This report is published on an annual basis aligned with the Company’s financial year. It represents the fourth
Reporting Cycle
Sustainability (ESG) Report issued by Chengtun Mining Group Co. Ltd.About This Report Reporting Boundary and Terminology
The disclosure scope of this report covers Chengtun Mining and all of its subsidiaries. For ease of expression and readability certain key operating
subsidiaries are referred to by abbreviated names throughout this report. The corresponding references are presented as follows:
Name Abbreviation
Chengtun Mining Group Co. Ltd Chengtun Mining We
Congo Chengtun Ressources Sarl. Congo Resources CCR
Congo Chengtun New Materials SASU CCM
Kalongwe Mining SA KMSA
Baoshan Hengyuan Xinmao Mining Co. Ltd. Hengyuan Xinmao Mining
Sichuan Chengtun Zinc & Germanium Science & Technology Co. Ltd. Chengtun Zinc & Germanium
Xilingol League Yinxin Mining Co. Ltd Yinxin Mining
Kelixin (Zhuhai) New Energy Co. Ltd. Kelixin (Zhuhai)
Kelixin (Yangjiang) New Energy Co. Ltd. Kelixin(Yangjiang)
PT Youshan Nickel Indonesia Youshan Nickel
Chengtun Energy Metal Chemistry (Guizhou) Co. Ltd. Chengtun Energy Metal
Guizhou Huajin Mining Co. Ltd. Huajin Mining
Xing’an Aima Mining Co. Ltd. Aima Mining
Dali Sanxin Mining Co. Ltd. Dali Sanxin
Chengdu Shengwei Xingke Advanced Materials Research Institute (Limited Partnership) chengwei Xingke
Brothers Mining SASU Brothers Mining
Zhonghe Nickel Co. Ltd. Zhonghe Nickel
Basis of Preparation Reporting Principles
01 This report has been prepared with reference to the following standards: In the preparation of this report the Company Self-regulatory Guidelines for Listed Companies of the Shanghai Stock Exchange No. 14 adheres to the principles of materiality data — Sustainability Report (Trial) accuracy and information reliability with the aim Self-regulatory Guidelines for Listed Companies of the Shanghai Stock Exchange No. 1 of presenting information to stakeholders in a — Standardised Operations manner that is eective complete accurate and Self-regulatory Guidelines for Listed Companies of the Shanghai Stock Exchange No. 4 comprehensive.— Preparation of Sustainability Reports (Revised in January 2026)Global Reporting Initiative (GRI) Sustainability Reporting StandardsUnited Nations Sustainable Development Goals (SDGs)Ten Principles of the United Nations Global CompactGuidelines for Corporate Sustainability Disclosure (CASS-ESG 6.0)International Financial Reporting Standards (IFRS) Sustainability Disclosure StandardsAccess to the ReportThis report is available in both printed and electronic formats and is published in Chinese and English. In the event of any discrepancies between the two versions the Chinese version shall prevail.This report is published in electronic format and is available on the Shanghai Stock Exchange website (www.sse.com.cn) and the Company’s oicial website (hp://www.600711.com) as part of the Company’s information disclosure. It can also be viewed online or downloaded from the Company’s oicial website.01 02Chapter Two
CHENGTUN
MINING
CHAPTER TWO
Chairman’s Message
Chengtun Mining Group Co. Ltd.Chairman
003 2 04Chapter Two
Dear Valued Stakeholders: Green and Low-Carbon Development: Protecting Our Shared Planet
The year 2025 has been an extraordinary one. Against the backdrop of global economic The Earth is the shared home of all humanity. Chengtun Mining has consistently embraced the principles of sustainable development
integrating green growth into the very fabric of our corporate culture and enabling the flourishing of the circular economy within the
transformation and upgrading with sustainable development increasingly becoming a
ecosystems where we invest and operate.defining theme of our era This report reflects our continued commitment and practical
In the face of the growing global challenge of climate change achieving the “dual carbon” goals—carbon peaking and carbon
progress in the areas of environmental protection social responsibility and corporate neutrality—has become a mission entrusted to every responsible enterprise of our time. With a forward-looking vision and firm
governance. commitment we are comprehensively advancing our green and low-carbon development strategy. Through systematic and rigorous
As an important participant in the global mining and metals smelting industry we are fully carbon accounting and verification processes we scientifically quantify corporate carbon data and carefully manage every gram of
carbon emissions contributing Chengtun’s eorts to the global response to climate change. In March 2026 we oicially released our
aware of the social responsibilities we bear. Throughout the production of our key
first Climate Transition Report representing not only our firm commitment to climate action but also a sincere invitation to industry
products—including copper cobalt and nickel—we consistently integrate the principles of partners to join us in building a greener future.sustainable development into every stage of our operations striving to act as a In our environmental stewardship journey we remain firmly commied to the governance of the wastes—wastewater waste gas and
responsible corporate citizen. solid waste—while regarding legal and compliant operations as the cornerstone of sustainable corporate development. We require all
subsidiaries to go beyond regulatory compliance in emissions control by exploring innovative pathways for emissions reduction and
continuously raising environmental standards through craftsmanship and dedication. From waste heat recovery to wastewater
recycling every environmental initiative reflects our active commitment to environmental compliance. Driven by both technological
innovation and management optimization we are striving to position Chengtun Mining as a model of an environmentally responsible
enterprise ensuring that green development remains the most defining feature of our future growth.People-Centered Development Building a Beer Society Together
Employees are the most valuable asset of the Company. We are commied to safeguarding the dignity of every individual and
supporting every aspiration with care and compassion. The protection of human rights is deeply embedded in our corporate culture. We
pay close aention to the well-being of female employees extend support to families facing diiculties and foster an environment in
which respect and inclusion can take root and flourish within the Chengtun community.We strive to create a diverse and inclusive workplace. Here regardless of race gender age or religious belief every employee is able
to work and grow in an open respectful and equitable environment. Through cultural exchange activities between Chinese and
international employees dierent traditions and perspectives come together forming a harmonious and vibrant workplace where
diversity is celebrated. By providing a fair compensation system comprehensive welfare benefits and broad development
opportunities we build a platform where every employee can pursue their ambitions and fully realize their potential.The safety and occupational health of our employees remain a constant priority. With a strong sense of responsibility and vigilance we
have established a comprehensive safety management framework. From the rigorous implementation of safety production
accountability at all levels to the strong leadership of top management from meticulous daily inspections to proactive risk prevention
and control the concept of “Zero Accidents” is embedded in every aspect of our management practices. We continuously improve on-
site working conditions and provide employees with a safe and healthy working environment while regularly conducting occupational
health examinations to safeguard their well-being.At Chengtun Mining we pursue not only material progress but also a fulfilling and meaningful working life for our employees. We are
commied to ensuring that every employee can thrive in a safe healthy and dignified environment and achieve a rewarding and
meaningful life.People-Centered Development: Building a Beer Society Together
Employees are the Company’s most valuable asset. We strive to safeguard the dignity of every individual and nurture every aspiration
with care embedding respect for human rights deeply within our corporate culture. By supporting female employees paying close
aention to families facing diiculties and fostering a culture of respect and inclusion we seek to ensure that empathy and mutual
understanding take root and flourish within the Chengtun community.We are commied to cultivating a diverse and inclusive workplace. Here regardless of race gender age or religious belief every
employee is able to thrive in an environment of equality and respect. Through cultural exchange initiatives between Chinese and
international employees dierent traditions and perspectives come together to form a harmonious environment where diversity is
valued and shared progress is encouraged. Supported by fair remuneration systems comprehensive welfare programmed and broad
opportunities for career development we provide every employee with a platform to realize their potential and pursue their ambitions.The safety health and well-being of our employees remain our foremost priority. With a profound sense of responsibility we have
established a comprehensive safety management framework—ranging from the strict implementation of production safety
accountability at every level to the strong leadership of senior management in safety governance. From meticulous daily inspections to
proactive risk prevention measures the principle of “zero accidents” is embedded in every aspect of our operations. We continuously
improve on-site working conditions provide a healthy and safe workplace and conduct regular occupational health examinations to
safeguard our employees’ well-being. At Chengtun Mining we pursue not only material prosperity but also a fulfilling and dignified life
for our people ensuring that every employee can work and grow in an environment that is safe healthy and respectful while achieving
their own sense of purpose and happiness.Looking Ahead: Creating Sustainable Value Together
Looking to the future we will continue to deepen our ESG practices integrating the principles of sustainable development into our
strategic planning and daily operations while working hand in hand with all stakeholders—including investors employees communities
and suppliers.We will remain commied to the philosophy of responsible mining striving to achieve a balance between resource development and
environmental protection and to realize a win-win outcome between corporate growth and social responsibility. We look forward to
collaborating with all stakeholders to jointly shape a more sustainable future for the mining industry.
05 06Chapter Two
SUSTAINABLE DEVELOPMENT PERFORMANCE
IN 2025
Total Greenhouse Gas (GHG) Emissions
(Scope 1 + Scope 2 + Scope 3 location-based):9 735646tCO2e Water Reuse Volume: 6583753.44 tonnes
Total Greenhouse Gas (GHG) Emissions
(Scope 1 + Scope 2 + Scope 3 market-based):10420099tCO2e Taxes Paid by the Company:150973RMB 10000
Electricity Generated from
R&D Investment: 5275.93RMB 10000 Self-owned Photovoltaic Power1: 8524692kWh
Net Profit Aributable to Shareholders of
the Listed Company: 196142R MB 10000 Social Welfare Investment:280.58RMB 10000
Number of Foreign Employees: 3601persons Total Number of Employees9: 372persons
Electricity Generated by Self-owned 96864633 Total Annual EmployeeClean Power Plants (Waste Heat Recovery): kWh Training Hours: 409784.45hours
5886 Comprehensive UtilisationTotal Safety Investment: RMB 10000 of Tailings: 136578.210000 tonnes
07 08Chapter Three
CHENGTUN
MINING
Company Overview
CHAPTER THREE Chengtun Mining was listed in 1996 under the stock code 600711 with its
headquarters located in Xiamen China. The Company is commied to
the development and utilization of non-ferrous metal resources
particularly those required for new energy baeries with a strategic
focus on copper nickel and cobalt. Its core business segments include
energy metals base metals and metal trading.After years of development the Company has established notable
Chengtun Mining at a Glance strengths in brand influence capital resources talent development andmarket channels and has been repeatedly included among the “Top
500 Chinese Enterprises.” Chengtun Mining has developed a global
industrial presence with operations and mining enterprises across
China e.g. Zhuhai Sichuan Yunnan Guizhou Inner Mongolia as well as
overseas including the Democratic Republic of the Congo and Indonesia
forming a sizeable international network of subsidiaries and mining
projects.Focusing on its core metals—copper nickel and cobalt—Chengtun
Mining continues to respond proactively to industry developments
strengthen governance and operate with dedication and prudence. The
Company adheres to a resource-oriented strategy and an international
development approach continuously enhancing its capabilities in
domestic and overseas resource exploration project development and
operational management. At the same time it extends its value chain
through smelting processing and materials manufacturing while
implementing management measures centered on cost control
meticulous operational management and quality and eiciency
improvement steadily advancing along the path of high-quality
development.Development History
Guided by the development strategy of “Developing both Upstream Resources and Downstream Materials” the Company remains
commied to low-carbon green and sustainable development while promoting coordinated growth across both domestic and
international operations contributing to the global energy transition and the development of clean energy.
03 Business SegmentsIncrease reserves of high-quality resources with a focus on expanding the development and utilization of energy metals in China Africa Argentina and Southeast Asia and strive to enhance the autonomy and resilience of supply chains for the nation and the industry.Appropriately extend the industrial value chain by expanding downstream into core materials for power and energy storage batteries thereby achieving an integrated layout spanning from resource development to materials production.Promote the coordinated development of both domestic and international operations continuously improving corporate governance and international management capabilities while strengthening the Company’s global competitiveness and influence.Corporate StrengthsGroup Vision Industrial Strategy Group Mission Work EthosContributing to theSustainable Developing both We Transform Resources Simple PragmaticDevelopment of New Energy Upstream Resources and for a Beer World and Eicientfor the World Downstream Materials09 10Chapter Three
Company
Development History
2021
2017 Expansion into the
In DRC the CCM copper-cobalt smelter
Democratic Republic of launched with annual output of 30000
the Congo tons copper cathode and 5800 tons
In August 2016 launched the DRC CCR cobalt hydroxide.comprehensive utilization project with an In Indonesia the Youshan Nickel's 34000-
annual capacity of 10000 tons of ton high-grade nickel mae project
copper cathode and 3500 tons of crude reached full capacity in 2021.
1996 cobalt hydroxide (metal content). After Phase I of Guizhou (Fuquan) Chengtun
1 8 m o n t h s o f c o n s t r u c t i o n t r i a l Energy Project commenced construction in 2024
The company issued A-shares production began at the end of 2018. November 2021. Phase I of Guizhou (Fuquan) Chengtun
and was listed on the Shanghai
Energy Project commenced production.Stock Exchange.
2018 Acquired more shares in Huawei Nickel to
2022 increase equity in Youshan Nickel Completed the acquisition of Kelixin Indonesia enhancing shareholder value
(Zhuhai) a cobalt materials deep- Youshan Nickel Indonesia partially and expanding nickel supply for new
2008 processing company specializing in transitioned to producing low-grade energy baeries.
cobalt recycling expanding into the new nickel matte for EV battery demand.T h e c o m p a n y n a m e w a s Production resumed at Guizhou Huajin
materials sector.c h a n g e d f r o m " X i a m e n Promoted comprehensive recycling Mining Co. Ltd. (Yata Gold Mine)
Xiongzhen Group Co. Ltd." to Acquired Chengtun Zinc-Germanium and technical renovation projects at
"Xiamen Xiongzhen Mining which has an annual production capacity Sichuan Chengtun Zinc-Germanium
Group Co. Ltd." marking its for 300000 tons of zinc ingot and 40 enhancing resource recovery and
transition into a non-ferrous tons of germanium and further operational quality.metal mining enterprise. enhancing zinc and germanium resource
reserves.Year 1996-2001 Year 2007-2016 Year 2017-2020 Year 2021-2023 Year 2024-2025
2025
2019 Expansion into Indonesia 2023 2025 witnessed a major capacity
In DRC the Kalongwe copper-cobalt breakthrough for Brothers Mining (BMS)
$407M invested in Youshan Nickel's integrated project achieved ful l with the successful commissioning of its
high-grade nickel matte project with an production and expansion reaching Phase II expansion. This ramp-up brought
annual capacity of 34000 tons of nickel 50000 tons of cathode copper and annual capacity to 120000 metal tonnes
2011 2007-2016 metal. 6000 tons of cobalt hydroxide (metal while full-year output reached 106300
Off ic ia l ly renamed from Expanded into base metals content) annually by Q3 2023. metal tonnes. Huajin Mining also delivered
"Xiamen Xiongzhen Mining through acquisitions (Ema E i c i e n t l y a d v a n c e d t h e j o i n t a steady increase in gold production
Group Co. Ltd." to "Chengtun Mining Yinxin Mining Huajin construction of the Brother Mining (BMS) during the year.Mining Group Co. Ltd." after Mining Xinsheng Mining Dali 2020 copper-cobalt project (50000 metal- In Guizhou the Phase I project successfully
approval by the Xiamen S a n x i n e t c . ) i m p ro v i n g ton copper smelting capacity) with completed its production ramp-up and is
Acquired 100% of Nzuri securing
Administration for Market resources and strengthening partners successfully producing the first now operating at full capacity. Meanwhile
Regulation. capabilities in copper gold p r e m i u m D R C c o p p e r - c o b a l t batch of copper products in December construction is progressing steadily on the
lead-zinc and nickel smelting. resources and exploration rights. 2023; Phase II project where the Company is
In DRC the CCR integrated smelting Phase I of Guizhou (Fuquan) Chengtun implementing systematic process
project completed expansion in April Energy Project completed construction benchmarking to further optimize
2020 producing annual 30000 tons with trial production of 150000-ton workflows. Strict refined management
of cathode copper and 6000 tons of nickel sulfate line in late 2023. protocols are being enforced across all
crude cobalt hydroxide (metal content). operations to ensure long-term stability Dali Sanxin obtained a mining license for
and continuity of the production system.Qingyangchang Copper Mine in
Yongping Yunnan.
1031 12Chapter Three
Business Focus
Inner Mongolia
Aima Mining (lead and zinc)
Yinxin Mine (copper tungsten tin)
Sichuan Guangdong
Chengtun Zinc-Germanium (Smelter)
Kelixin (cobalt materials)
Zhonghe Nickel (nickel matte)
Guizhou
Huajin Mining (gold)
Chengtun Energy
Shanghai
Chengtun Group Shanghai
Yunnan Xiamen Fujian Province
Baoshan Hengyuan Xinmao Mining Chengtun Mining
Dali Sanxin Mining (copper)
Headquarters
Shenzhen Chengtun Group Headquarters
Hong Kong
Wang Sing International
Hong Kong Xuchen
DRC Africa Chengtun Global Resources
Chengtun Gold International
CCR Copper-Cobalt Smelter
CCM Copper-Cobalt Smelter
Kalongwe Copper-Cobalt Mine & Smelter
BMS Copper-Cobalt Smelter
Indonesia
Youshan Nickel
(NPI low-grade nickel matte)
Singapore Australia
Cheng Tun Metal International Trade
Nzuri
103 14Chapter Three
Product Overview and Application Areas Group Honours in 2025
The Company’s business operations mainly cover three core segments: energy metals base metals and metal trading.Top 500 Manufacturing Enterprises in China (2025) Top 100 Enterprises in Fujian Province (2025)
12
Award Date: September 2025 Award Date: September 2025
Awarding Organizations: China Enterprise Confederation Awarding Organizations: Fujian Enterprise and Entrepreneurs
and China Enterprise Directors Association Association Fujian Media Group and Fujian Academy of
Social Sciences
Electrolytic Cobalt Tetroxide High-Grade
Nickel Sulfate Iron Phosphate Zinc Ingot
High-Purity
Copper (Co3O4) Nickel Mae Germanium Dioxide
(Our Smelting Products) Top 100 Manufacturing Enterprises in Fujian Province (2025) Top 100 Private Enterprises in Fujian Province (2025)
34
Award Date: September 2025 Award Date: September 2025
Awarding Organizations: Fujian Enterprise and Awarding Organizations: Fujian Federation of Industry and
Entrepreneurs Association Fujian Media Group and Commerce
Fujian Academy of Social Sciences
(Product Application Industries: Consumer Electronics (3C) New Energy Baeries Stainless Steel)
Top 100 Private Enterprises in Xiamen Top 50 Manufacturing Private Enterprises in Xiamen
Corporate Culture 5 6
Award Date: October 2025 Award Date: October 2025
Awarding Organizations: Xiamen Federation of Industry Awarding Organizations: Xiamen Federation of Industry and
and Commerce Commerce
Focus on a resource-oriented Actively advance capacity expansion and Implement strategies centered on Fulfil social responsibilities and
strategy and strengthen strive to strengthen the Company’s talent development and continuously promote the
advantages across the industrial position in the upstream segment of the technological innovation development of the ESG
value chain industry. management system
Corporate Vision Contributing to the Sustainable Development of New Energy for the World
Corporate Mission We Transform Resources for a Better World
Work Ethos Simple pragmatic and eicient
Chengtun Mining remains committed to expanding its resource base and advancing the implementation of new
production capacity. The Company continues to pursue an international development strategy and places strong
emphasis on building a talent-driven enterprise. At the same time it adheres to the management principles of
“controlling costs focusing on details and improving quality and efficiency.” Top 100 Enterprises in Xiamen Top 100 Manufacturing Enterprises in Xiamen
The Company actively integrates into the national Belt and Road Initiative and proactively implements its “going global” 7 8strategy. It also responds positively to national strategies such as carbon neutrality and carbon peaking as well as “Made Award Date: November 2025 Award Date: November 2025in China” innovation-driven development. Awarding Organizations: Xiamen Enterprise and Awarding Organizations: Xiamen Enterprise and
On a global scale the Company continues to strengthen the strategic deployment of energy metals contributing to Entrepreneurs Association School of Management at Entrepreneurs Association School of Management at
national and industry development while enhancing the autonomy resilience and security of the supply chain. Xiamen University Xiamen Daily and Xiamen Radio and Xiamen University Xiamen Daily and Xiamen Radio and
Television Group Television Group
1053 16Chapter Three
Key Events of the Year
YEAR
2025
27 September October to November
Chengtun Mining was once again included in the Chengtun Mining established Chengtun Gold International
2025 Global Top 500 New Energy Enterprises and announced its plan to acquire 100% equity of Loncor
reairming its position within the global new Resources Inc. a Canadian-listed company for
26 February 12 May energy industry. approximately RMB 1.35 billion. The acquisition aims to
The groundbreaking ceremony for Kalongwe Village The headquarters relocation ceremony of secure the Adumbi Gold Project in the Democratic Republic
Primary School and the handover ceremony for the Chengtun Mining was grandly held symbolizing of the Congo (DRC) accelerating the international
local medical centre were successfully held. Later on 28 a new chapter in the Company’s journey along expansion of the Group’s gold business and fostering a
November KMSA signed the Social Responsibility the energy metals sector and carrying the new driver of growth.Commitment (2024– 2029) with surrounding Group’ s renewed vision of advancing
communities pledging an investment of USD 1.52 million internationalization and creating sustainable
in areas such as education and access to clean water. value.These initiatives aim to alleviate the shortage of local
medical and educational resources demonstrate the
Company’ s commitment to social responsibility and
foster a new chapter of harmonious coexistence
between mining operations and local communities.
1 November 3 Novembe
Chengtun Mining ranked first on the 2025 Chengtun Group announced an additional investment of
Xiamen Top 100 Private Enterprises list. RMB 5.9 billion in Fuquan to develop an integrated
“mining–chemical–materials” lithium iron phosphate (LFP)
cathode materials project with a planned annual capacity
of 240000 tonnes of iron phosphate and 200000
tonnes of lithium iron phosphate.Once fully operational the project is expected to generate
over RMB 12 billion in additional annual output value.
29 June 1 July
Drilling operations officially commenced at the Yata Gold CCR achieved a 100% A-grade copper
Mine Project of Huajin Mining. Through supplementary production rate for three consecutive months
exploration activities the project aims to further unlock setting a new historical record for the project
resource potential laying a solid foundation for enhancing and positioning itself as a benchmark enterprise
the Group’ s gold production capacity and optimizing its in the African copper–cobalt smelting industry.production layout.
1 November 28 December
The People’s Government of Longyang District Chengtun Group announced an additional investment of
Baoshan City and Chengtun Mining signed a RMB 5.9 billion in Fuquan to develop an integrated
cooperation agreement on lead– zinc mineral “mining–chemical–materials” lithium iron phosphate (LFP)
resource development. This partnership marks a cathode materials project with a planned annual capacity
new chapter of government– enterprise of 240000 tonnes of iron phosphate and 200000
collaboration fostering mutual progress and tonnes of lithium iron phosphate.shared benefits. Once fully operational the project is expected to generate
over RMB 12 billion in additional annual output value.
4 July 28 July
The Phase III Tailings Storage Facility Project of CCR was The underground roadway project of Dali
The Chengtun Energy distributed photovoltaic project
officially launched with a groundbreaking ceremony. Upon Sanxin Mining achieved a safe and precise
was successfully connected to the grid with a total
completion the project will provide safe and reliable breakthrough after more than 400 days of
installed capacity of 9.5 MW. The project has
support for the Company’ s production operations while intensive construction efforts marking a
eectively reduced the Company’s electricity costs and
further enhancing both economic and environmental significant milestone that has opened a new
carbon emissions delivering both economic benefits
benefits. chapter for the mine’s subsequent development
and environmental value.and full-scale production.
1073 18Chapter Four
CHENGTUN Stakeholder Engagement
MINING
The Company aaches great importance to the perspectives of its stakeholders. By establishing a multi-dimensional communication framework
we have developed and implemented diversified communication channels and due diligence activities tailored to dierent stakeholder groups.Through these mechanisms we actively listen to stakeholder concerns and respond to their expectations in a timely manner.During the Reporting Period the Company conducted an assessment of stakeholder importance and ultimately identified eight key stakeholder
CHAPTER FOUR groups including directors and senior management employees customers and consumers suppliers and business partners communities and the public government and regulatory authorities shareholders and investors as well as non-governmental organization media and research
and educational institutions.The following section outlines the key concerns of our principal stakeholders during the year and the corresponding communication and
engagement approaches adopted by the Company.Materiality Assessment
Stakeholder Group Key Topics of Concern Communication Channels
Board reporting
Board of Directors and Sustainable Development、Governance Framework Management reporting and
communication across all levels
Senior Management Business Ethics Management
Regular communication through the ESG
Commiee
Environmental Compliance Management Emails and internal meetings
Employee Management Employee Representative Congress
Training programs and grievance
Employees Product and Service Safety and Quality Management
mechanisms
Occupational Health and Safety Online and oline employee surveys
Energy Management Corporate intranet
Business Ethics Management
Customer satisfaction surveys
Climate Change Response
Customers and Customer communication and complaint Product and Service Safety and Quality Management
Consumers channels
Occupational Health and Safety
Workshops and seminars
Data Security and Customer Privacy Protection
Business Ethics Management、Supply Chain Security Supplier procurement processes
Suppliers and
Occupational Health and Safety Training and evaluation programs
Business Partners
Fair Treatment of SMEs Supplier conferences
Oicial platforms such as the corporate
website
Environmental Compliance Management
External communication materials
Communities and Pollutant Emissions Management、Tailings Management
Public welfare projects
the Public Community Engagement and Management
Public welfare forums and industry
events、Volunteer activities
04 Sustainable Development Governance FrameworkEnvironmental Compliance Management Stock exchange meetingsEmployee ManagementGovernment and Government meetingsProduct and Service Safety and Quality ManagementRegulatory Authorities Information disclosure platformsCommunity Management Government visits and inspectionsOccupational Health and Safety、Energy ManagementWater Resource ManagementBusiness Ethics Management Shareholders’ meetingsClimate Change Response Earnings briefingsProduct and Service Safety and Quality Management Analyst communication meetingsOccupational Health and SafetyShareholders and Broker strategy conferencesProduct and Service Safety and Quality ManagementInvestors Information disclosure platformsCommunity Management Investor site visitsOccupational Health and Safety SSE E-Interaction platformEnergy Management、Water Resource ManagementBiodiversity、Tailings Management ESG reportsNGOs Media and Research & Climate Change Response Annual reportsEducational Institutions Innovation-Driven Development、Technology Ethics Corporate website19 20Chapter Four
Double Materiality Analysis Relevant Topics of the Company Relevant Topics of the Company
During the Reporting Period we conducted a materiality assessment with reference to the Self-Regulatory Guide No. 4 of the Shanghai Governance Sustainable Development Governance System; Stakeholder Engagement; Business Ethics Management
Stock Exchange for Listed Companies — Sustainability Report Preparation (Revised in January 2026) and the Global Reporting Initiative
(GRI) recommendations on material topic analysis.Environmental Compliance Management; Pollutant Emissions Management; Biodiversity; Tailings Management; Energy
Taking into account the characteristics of the industry in which the Company operates and the nature of our business activities—while also Environment Utilization; Water Management; Climate Change Response
considering stakeholder concerns and ensuring the continuity and readability of this report—we incorporated quantitative financial
materiality analysis into our existing assessment framework during this Reporting Period.Employee Management; Product and Service Safety and Quality Management; Data Security and Customer Privacy
By conducting double materiality from both external perspectives (economic social and environmental impacts) and internal Social Protection; Innovation-Driven Development; Technology Ethics; Supply Chain Security; Fair Treatment of SMEs; Environment
perspectives (financial impacts) we are able to more accurately identify the inherent risks and opportunities within our business Community Management; Occupational Health and Safety
operations and determine the Company’s material ESG topics.Based on the methodological adjustments described above our materiality assessment process consists of the following six steps Double Materiality Assessment
Social
10
Product and Service Safety and Quality Management
Occupational Health and Safety Employee Management; Product and Service Safety and Quality Management; Data Security and Customer
9
Climate Change Response
Based on international initiatives standards institutional recommendations the Company’s Privacy Protection; Innovation-Driven Development; Technology Ethics; Supply Chain Security; Fair Treatment of
Topic 8 Tailings Managementoperational realities and insights from both internal and external experts 19 highly relevant
Identification Pollutant Emissions Managementtopics were identified and included in the analysis. 7 Environmental Compliance Energy Utilisation
Supply Chain Management
Security
6 Stakeholder Engagement
Business Ethics Biodiversity Sustainable Development
Management Governance Framework
5 Employee Management Double Materiality Assessment
Data Security and 对 10
Customer Privacy Protection
4 Community Management 经济 9Water Resource Innovation-Driven Development
Fair Treatment of Small and Management ?
3 Medium-sized Enterprises 社 8
会和7
Stakeholder Based on the Company’s business characteristics and operational conditions eight core
2 Technology Ethics
环
6
Identification stakeholder groups were identified. 境1 影 5响的4
12345678910重
要
Significance to the Company’s Financial Performance 3性
2
To comprehensively collect insights from dierent stakeholders a dual-track consultation approach 1 2 3 4 5 6 7 8 9 10
was adopted. An anonymous online questionnaire was designed for all stakeholder groups while
Stakeholder 对公司财务的重要性
relevant ESG experts were invited to provide recommendations on the identified topics. Respondents
Survey
included shareholders investors creditors potential investors suppliers and other business partners
and Engagement Results of the Materiality Assessment
employees chambers of commerce industry associations public welfare organization and other
stakeholders who participated in the survey and provided feedback. During the Reporting Period the Company’s material topics remained largely consistent with those identified in the previous year. Compared
with the prior year both the Company and its stakeholders placed greater emphasis on “Climate Change Response” “Tailings Storage FacilityManagement” and “Occupational Health and Safety.” These three topics also constitute key components of our overall risk management
framework. Eective climate change management enables the Company to address risks while capturing emerging opportunities while robust
For the identified highly relevant topics the Company conducted an analysis based on the double tailings management and strong safety practices ensure operational continuity and help minimize potential external impacts.materiality approach: Through the materiality assessment process we ultimately identified 19 material topics which define the reporting boundary and focus areas
Double of this report.Results of the Materiality Assessment
Financial Materiality: Whether the topic is expected to have a significant impact in the short medium
Materiality
and long term on the Company’s business model operations development strategy financial position
Assessment
operating results cash flow financing methods and financing costs
and Analysis 10
Impact Materiality: Whether the Company’s performance on the topic may have actual or potential Product and Service Safety and
Very High Materiality Quality Management
significant impacts on the economy society or the environment. Occupational Health9 and Safety
Climate Change Response
Tailings Storage Facility Management; Occupational Health and
Safety; Climate Change Response; Product and Service Safety
8
and Quality Management; Pollutant Emissions Management Tailings Management
7 Energy Utilisation
Based on the results of the impact analysis a materiality matrix was developed to identify highly EnvironmentalSupply Chain Security Compliance Management
Topic High Materialitymaterial topics. These highly material topics also represent key focus areas within the Company’s risk 6 Business Ethics Management Stakeholder Engagement 10
Prioritization Sustainable Development Governance Framework; Stakeholder Biodiversity Sustainable Development management framework. Governance Framework
Engagement; Business Ethics Management; Environmental 9
Compliance Management; Pollutant Emissions Management; 5 Water Resource Management Employee Management 8
Biodiversity; Energy Use; Water Resource Management; Community Management 7
Employee Management; Data Security and Customer Privacy 4
Data Security and Innovation-Driven Development
Protection; Innovation-Driven Development; Supply Chain Customer Privacy Protection 6
Security; Community Management 3 5
Fair Treatment of Small and
Medium-sized Enterprises
4
23
Determination of Technology Ethics
Reporting Based on the identified material topics the scope and content of this report were determined. Medium Materiality 2
Boundary Technology Ethics; Equal Treatment of Small and Medium-sized 1 1
Enterprises (SMEs)
12345678910
12345678910
2122
Significance of Economic Social and
Environmental ImpactsChapter Four
CHENGTUN
Alignment of Material Topics with MINING
the United Nations Sustainable Development Goals
Chengtun Mining integrates the United Nations Sustainable Development Goals (SDGs) into its operations and value chain. By aligning
with the UN’s SDG Compass: The Guide for Business Action on the Sustainable Development Goals the Company identifies the
relevance of the SDGs to its business activities and outlines how its operations contribute to achieving these global goals.Chapter Material Topics Covered UN Sustainable Development Goals (SDGs)
Strengthening Governance and Sustainable Development Governance System
Building a Solid Foundation Stakeholders
for Development
Business Ethics Management
Environmental Compliance Management
Pollutant Emissions Management
Green and Low-Carbon
Biodiversity
Development
Protecting Our Planet Tailings Storage Facility Management
Energy Utilization
Water Resource Management
Looking to the Future
Creating Sustainable Value Climate Change Response
Together
Employee Management
Product and Service Safety and Quality Management
Data Security and Customer Privacy Protection
People-Centered Development Innovation-Driven Development
Building a Beer Technology Ethics
Society Together
Supply Chain Security
Fair Treatment of Small and Medium-sized Enterprises
Community Management
Occupational Health and Safety
23 24Chapter Five
CHENGTUN
MINING
CHAPTER FIVE
Strengthening Governance The essence of governance lies in integrity while the foundation of sustainable development rests on steady and responsible management. Chengtun Mining regards sound corporate governance as the cornerstone of long-term sustainability. We have carefully
established a modern governance framework with clear allocation of responsibilities and eicient operations ensuring that every
and Building a Solid Foundation decision is made with transparency and that all authority is exercised within a well-defined institutional framework.for Development
Corporate Governance Structure
The Company has established a comprehensive governance structure in which the Board of Directors operates under a well-developed
decision-making mechanism and exercises authority over major business and operational decisions.Under the Board the Company has established an ESG Commiee and an ESG Management Oice integrating ESG governance
principles with the Company’s operational practices. This framework enables the development of a governance model that both aligns
with international standards and reflects the distinctive characteristics of Chengtun Mining.Shareholders’
Meeting
Strategy
Commiee
Nomination
Commiee
ESG ESG Management
05 Commiee CommieeBoard Secretary’s Board ofOice Directors Audit CommieeRemunerationand AssessmentStrategic CommieeESG Oice Planning Oice InvestmentCommieeFinance Operations Marketing Risk Control Internal Audit Investment and Human Resourcesand Legal Aairs and Compliance DevelopmentCenter Center Center Department Department Department Department25 26Chapter Five
Operation of the Three Governing Bodies Sustainability Governance Framework
During the Reporting Period the Shareholders’ Meeting the Board of Directors and the Board of Supervisors operated in a
compliant and eective manner providing oversight and support for the Company’s standardized sustainable operations and
long-term development.Body Operational Status in 2025 Corporate Governance Commitment
During the reporting period the Company convened three Shareholders’ Against the backdrop of the accelerating global transition toward sustainable development we recognize that corporate responsibility
Meetings at which 20 resolutions were reviewed and approved. Among has become a core driver of long-term business success. Chengtun Mining has consistently regarded sustainable development as a key
them the 2025 Annual Shareholders’ Meeting reviewed and approved the long-term priority integrating sustainability principles into the Company’s core values.Shareholders’ Meeting 2024 Environmental Social and Governance (ESG) Report. The resolutions We are commied to continuously advancing sustainable development across our industrial value chain fostering a long-term
of each Shareholders’ Meeting have been publicly disclosed through mechanism that promotes shared growth between the Company and its employees mutual success with customers and harmonious
statutory channels including the Shanghai Stock Exchange information coexistence with communities. By strengthening and refining our ESG management framework we place sustainability at the very
disclosure platform. foundation of the Company’s long-term development.Chengtun Mining regards sustainable development as one of its long-term priorities
During the reporting period the Company convened nine Board of Directors
Board of Directors meetings at which 40 resolutions were reviewed and approved. Environmentally friendly·People-oriented·Integrity and transparency·Sharing achievements.Commied to building Make the best Creating a Beer Life Responsible and
an ESG system use of resources Progressive Governance
During the reporting period the Company convened five Board of
Board of Supervisors
Supervisors meetings at which 16 resolutions were reviewed and approved.Chengtun Mining adheres to the
Chengtun Mining upholds the Chengtun Mining strictly compliesBoard of concept that “lucid waters and lush corporate philosophy of “making with laws regulations andDirectors mountains are invaluable assets.” the best use of resources and relevant industry requirements.The Company is commied tocreating a beer life.” B a s e d o n t h e C o m p a n y ’s
*In accordance with relevant regulations the Supervisory Board was abolished in the second half of the year. conducting its operations in an
environmentally friendly manner While pursuing business excellence
operational realities it has
the Company consistently fulfills e s ta b l i s h e d co rre s p o n d i n g properly managing various toxic
its mission of giving back to governance frameworks and
ESG emissions and waste and preventing society and promoting social m a n a g e m e n t s y s t e m s
Commiee environmental pollution. It continues Composition and Operation of the Board of Directors strengthened information security to improve its energy and carbon welfare. It actively carries out
community co-development management and continuously emission management system
i m p r o v e d i t s c o r p o r a t e
practice energy conservation activities and contributes to
emission reduction and water improving the quality of life of
governance standards.ESG conservation and support the local communities. The Company places strong
Indicator Unit 2022 2023 2024 2025 Management Oice achievement of the national “30-60” emphasis on integrity education
carbon peak and carbon neutrality and investor relations diligently
goals. fulfills its information disclosure
obligations and safeguards the
At the same time we fully recognize
legitimate rights and interests of
Various functional departments t h e i m p a ct of o u r b u s i n e s s investors and all stakeholders.and subsidiaries operations on land and biodiversity.Number of Board Members persons 7 7 7 7 We remain commied to biodiversity
protection and land restoration
safeguarding clear waters and green
mountains.Number of Female
persons 0 0 0 0
Directorson the Board
Proportion of Female
%
Directorson the Board 0 0 0 0
3Chengtun C ” ESG Management Policy
Number of Independent
persons
Directorson the Board 3 3 3 3
In accordance with relevant laws regulations and internal policies and taking into account the actual operational conditions of the
Company and its subsidiaries Chengtun Mining has established an ESG management policy framework applicable across the Group.Proportion of Independent
% 42.86 42.86 42.86 42.86 This framework serves as a guiding principle for ESG management and implementation throughout the Company and its subsidiaries.Directorson the Board
Number of Collaboration
Shareholders’ Meetings Held times 6 7 4 3
Craftsmanship ClarityNumber of Board Meetings Held times 21 15 9 9 Chengtun C3” ESG Management Policy
Credibility Commitment
Number of Supervisory
Board Meetings Held times 16 10 7 5
Care
27 28Chapter Five
Chengtun Mining deeply integrates sustainable development into its corporate DNA which is reflected in six core commitments: ESG Management Organizational Structure
Chengtun Mining is commied to continuously improving its environmental social and governance (ESG) performance and actively promoting the sustainable
development of both the Company’s operations and society. To support this objective the Company has established an ESG management organizational structure at the
POINT 01 Craftsmanship Board level implemented through three tiers: the Board of Directors the management level and the execution level.Internal Foundation: We approach every resource and every process with a spirit of craftsmanship and continuous
improvement. Through technological innovation we strive to maximize resource eiciency and promote greener production
processes thereby establishing a solid technical and quality foundation for sustainable development.POINT 02 Collaboration Shareholders’ Meeting
Internal and External Ecosystems: We firmly believe that sustainable development cannot be achieved in isolation. We
actively build collaborative networks with governments communities customers research institutions and industry partners
fostering open innovation and shared value creation to jointly address environmental and social challenges.POINT 03 Clarity Board of Directors
Operational Principles: We are commied to comprehensive operational transparency. Through regular accurate and
detailed disclosure of information related to environmental social and governance (ESG) maers we ensure that our
actions performance and impacts are traceable and verifiable thereby upholding responsible business conduct.POINT 04 Commitment
Strategic Anchor: Sustainable development represents our solemn commitment to the future. It has been embedded as a
core strategic priority of the Board of Directors a key performance objective for management and a guiding principle for all
employees directing our long-term responsibilities to our people society and the planet.POINT 05 Credibility Environmental Social and Governance (ESG) Commiee
Value Realization: By consistently upholding the commitments outlined above we aim to transform our sustainability
performance into the Company’s most valuable intangible asset—reputation. This reputation forms the core capital that
Director of the ESG Management Commiee
enables us to earn the long-term trust of investors the loyal partnership of customers and the broad respect of society.Responsible for
Executive Vice
President Board Secretary President Vice President
Chief Financial ...... dierent
POINT 06 Care Oicer ESG topics
Human-Centered Core: All technological advancements and strategic initiatives ultimately centre on people. This
ESG management Information Business ethics
commitment is reflected in our comprehensive protection of employee health and safety our tangible contributions to disclosure three-waste
community development and our genuine concern for the well-being of all stakeholders. In doing so we bring a human product quality management Business ethics ESG investmentCarbon emissions
dimension of care and responsibility to the mining industry. customer relationship environmental
management climate change Risk financialmanagement management etc. management etc.occupational health and Biodiversity etc. community
safety management etc. management etc.Through ESG management requirements coordinate subsidiaries and
group functional departments to carry out ESG work
Subsidiaries and
ESG Oice Group Functional Departments
Communicate and provide feedback on the progress risks
Communicate and and expectations of ESG work Participate in
provide feedback and implement
on the progress risks ESG-related work
and expectations of
ESG work Climate Risk Management Group Dual Carbon Group
Mineral Supply Chain Group Labor and Human Rights Group
Occupational Health and Safety Group Biodiversity Group
Special Working Groups (composed of personnel from relevant departments)
2930
Board Level Management Level Execution LevelChapter Five
The ESG management framework consists of three levels: Sustainability-Related Information Reporting
Board of Directors Management Level Execution Level
To further strengthen and refine the Company’s ESG governance framework and to ensure that ESG-related strategic planning is
Composed of members of the Company’s The Environmental Social and Governance This level primarily consists of the ESG Oice
(ESG) Commiee composed of a Chairperson functional departments subsidiaries and considered at the top-management level the Company has established mechanisms to cascade these strategic requirements throughout the Board of Directors with the following primary
responsibilities: and commiee members is primarily various specialized working groups with the organization.responsible for the following functions: following main responsibilities:
In 2025 the Company formulated and issued the ESG Management Policy and the Rules of Procedure for the Board’s Environmental Social
and Governance (ESG) Commiee which clearly define the reporting requirements related to sustainability maers.
1.To understand analyze and stay informed of 1.Managing material ESG topics and providing 1.Developing stakeholder engagement plans and
international and domestic industry developments analysis and recommendations for discussion by organizing stakeholder communication activities; Level Reporting Frequency Related Maers
and sustainability-related policies as well as to the decision-making level thereby supporting
2.Coordinating the preparation of the
maintain a comprehensive understanding of the the Board in fulfilling its oversight responsibilities; Reviews ESG-related maers convenes meetings
Sustainability Report; ESG Commiee At least once per year and deliberates on relevant materials.Company’s operational and management status;
2.Identifying and allocating the necessary costs
3.Building the Company’s capabilities in Compiles and analyzes ESG-related information
2.To oversee the assessment of sustainability- and resources—including personnel and ESG Oice Monthly
sustainability-related management including and reports.related impacts risks and opportunities faced by technological support—required to identify
data collection statistical analysis and
the Company; mitigate manage and monitor sustainability- Provide feedback on the implementation and
communication with investors and research ESG-related Employees Monthly operation of specific ESG-related maers.related impacts risks and opportunities;
3.To guide and review the Company ’s institutions.
sustainability policies strategies and objectives; 3.Formulating sustainability work plans as well
as sustainability-related incentive and
4.To approve the Company’s Sustainability Report
performance evaluation mechanisms.and other related disclosures.Supervision and Evaluation Mechanism
In October 2025 the Company revised its Articles of Association and formally implemented the ESG Management Policy thereby clarifying
the supervision and evaluation mechanisms within the Company’s sustainability governance framework.Supervision and Assessment Level Supervision and Assessment Responsibilities
Six Specialized Working Groups have been established under the ESG Management Oice:
Responsible for supervising and assessing the management’s implementation
Audit Commiee of ESG-related requirements.Climate Risk Responsible for identifying assessing and managing climate-related risks and opportunities faced by the Company and for formulating
Management
Group response strategies.Tracks external ESG regulatory requirements industry trends and peer
practices; guides promotes coordinates and supervises ESG management
ESG Oice work of relevant departments and subsidiaries. Coordinates the development
and maintenance of the Group’s ESG indicator system and supervises and
Carbon Peak assesses ESG performance of departments and subsidiaries.and Carbon Responsible for formulating and implementing the Group’s carbon peak and carbon neutrality strategy and managing carbon emission
Neutrality data and emission reduction initiatives across the Group.Task Group
Functional Departments and Guide supervise inspect and assess the implementation of key ESG topics
Business Support Departments and promptly address related issues and challenges.Mineral Supply Conducts due diligence to trace the compliance of mineral sources organizes community and social responsibility activities and
Chain Group manages environmental social and governance risks within the supply chain. Business
Supervisory Departments Assist the ESG Oice in carrying out ESG supervision and assessment work.Labour Develops and supervises the implementation of policies and procedures that safeguard employees’ basic rights and prevent
and Human
Rights Group discrimination and harassment.Occupational
Health Responsible for preventing occupational injuries and illnesses in the workplace and maintaining the operation of the occupational health
and Safety and safety management system. Removal of Other Risk Warning on the Company’s Shares
Group
In accordance with Article 9.8.8 of the Shanghai Stock Exchange Listing Rules (revised in April 2025) the Company determined that it had
met the conditions required to apply for the removal of the “other risk warning” designation on its shares.Biodiversity Assesses and manages the impacts of corporate operations on ecosystems and promotes the implementation of ecological protection At the 20th meeting of the 11th Board of Directors the Board reviewed and approved the Proposal on Applying for the Removal of Other
Group and restoration actions.Risk Warning on the Company’s Shares and subsequently submied an application to the Shanghai Stock Exchange. The other risk warning
was oicially removed in August 2025.
31 32Chapter Five
ESG Risk Management Business Ethics Management
The Company has established an ESG Management Policy to support the management of ESG-related risks. This policy is dynamically
adjusted in accordance with operational needs ensuring that institutional safeguards continue to be strengthened.In line with the relevant provisions of this policy the ESG Oice the Risk Control and Legal Aairs Department and the Internal Audit and
Compliance Department jointly undertake key responsibilities for ESG risk management. These departments monitor the latest Governance
developments in laws regulations and regulatory policies and conduct risk identification and assessment across the Company’s business
activities thereby ensuring compliant operations. Chengtun Mining strictly complies with relevant laws and regulations including the Criminal Law of the People’s Republic of China and
The Group has also implemented a three lines of defense framework for risk management. This system emphasizes centralized the Anti-Unfair Competition Law of the People’s Republic of China. The Company places great importance on fostering and
management of internal risks and continuous monitoring of external risks as its core principles while classifying and managing various risk continuously strengthening a corporate culture of integrity and probity and maintains a zero-tolerance stance toward any form of
categories to eectively control potential risks. corruption.A robust business ethics management system serves as a critical foundation for ensuring ethical and responsible business conduct. We
POINT 01 First Line of Defense are commied to creating a fair transparent and trustworthy working and business environment and strictly prohibit any activities that
may compromise the Company’s integrity or damage its reputation.The ESG Oice and various functional departments are responsible for implementing the core risk management processes
including identifying assessing and responding to risks within their respective professional areas. They also monitor the To strengthen the management of business ethics the Company has established and continuously improved a comprehensive
eectiveness of risk control measures within their domains and drive continuous management improvements. framework of internal policies and procedures including the Internal Audit Policy and Anti-Fraud and Whistleblowing Implementation
Guidelines (Internal Control Manual 2025 Revision) the Internal Control Manual the Implementation Measures for Anti-Bribery and
Anti-Corruption Management the Insider Information Registration and Management Policy and the Anti-Fraud and Whistleblowing
POINT 02 Second Line of Defense Implementation Guidelines.The Risk Control and Legal Aairs Department is responsible for the management coordination and execution of the Group’
The Company continues to refine its business ethics governance structure under which the ESG Commiee of the Board of Directors
s legal aairs including legal compliance review and supervision. The department also provides legal opinions and
serves as the highest governing body for business ethics management. All functional departments and subsidiaries are responsible for
recommendations on major corporate maers and represents the Company in litigation proceedings.the implementation of business ethics practices within their respective operations while the Internal Audit Department at headquarters
oversees and audits the eectiveness of business ethics compliance.POINT 03 Third Line of Defense
The Company places particular emphasis on the following key areas in its business ethics management:
The Internal Audit and Compliance Department is responsible for supervising and evaluating the operational eiciency and
compliance of the Group and its subsidiaries as well as the establishment and implementation of internal control systems. It Prohibition of personal gain through position: Employees are strictly prohibited from using their position company resources business
ensures that business activities are conducted in accordance with relevant policies procedures and regulatory requirements. channels trade secrets or intellectual property to seek benefits for themselves their relatives or other related parties.Prohibition of improper demands: Employees may not use their position to make consumption or benefit-related demands on suppliers
customers business partners or other stakeholders of the Company.Risk Type Prohibition of borrowing through business relationships: Employees may not use their position to obtain loans from suppliers customers Risk Identification
partners or other stakeholders for themselves or their relatives nor may they provide guarantees for such loans.Price fluctuations and changes in supply–demand dynamics for metals such as nickel cobalt copper Protection of confidential information: The disclosure of the Company’s trade secrets is strictly prohibited. Confidential business
and zinc may significantly aect the Company’s profitability. The Company conducts futures hedging
Risk of information and core proprietary information must not be disseminated externally without internal approval.activities and fully utilizes the hedging functions of futures contracts to mitigate the impact of
Metal Price Fluctuations significant metal price volatility on operating performance thereby enhancing operational Prohibition of falsification and misrepresentation: Any form of falsification deception or concealment of facts in the Company’s
management and risk resilience. business activities is strictly prohibited.Restrictions on external employment: Employees are prohibited from holding positions in external for-profit organization that engage in
The Company operates several overseas projects including CCR CCM the KMSA and Metallurgical
commercial transactions with the Company.Integration Project and the BMS Copper-Cobalt Smelting Project in the Democratic Republic of the
Congo; the Youshan Nickel Project in the Weda Bay Industrial Park in Indonesia which is in stable Proper use of company expenses: Company funds—including hospitality oice and travel expenses—must not be misused for personal
operation; and the Munali Nickel Mine in southern Zambia. The expansion of overseas operations purposes nor may public funds be used to entertain individuals unrelated to oicial business activities.exposes the Company to management challenges such as cultural dierences varying legal systems
Risks of labour relations and communication barriers. In addition operations may be aected by local Zero tolerance for bribery: Employees are strictly prohibited from accepting any form of bribery including but not limited to cash assets
Overseas Operations political stability policy continuity macroeconomic fluctuations geopolitical risks fiscal and taxation shares real estate or other valuables.policies contract performance and legal disputes. To address these risks the Company continuously
optimizes its overseas management system by cultivating and introducing international talent
enhancing team capabilities and improving cross-border management processes thereby
strengthening its ability to prevent and manage overseas operational risks and ensuring the stable
development of its international business.The Company’s overseas operations are seled in foreign currencies exposing it to operational risks
arising from exchange rate fluctuations. To address this a dedicated professional team has been
established to proactively manage foreign exchange exposure through prudent use of financial
Foreign Exchange instruments with the aim of mitigating risks and achieving financial optimization. Upholding the Strategy
Risk principles of prudent compliance and balanced risk–return management the Company strictly
implements compliance risk controls and customer credit assessments in its projects ensuring that The Company incorporates business ethics and integrity-based compliance as core elements of its governance strategy upholding the
overall foreign exchange risk remains within a controllable range. principles of transparency fairness and integrity in its operations. We have established a comprehensive ethics management
framework covering the entire value chain.As national standards for corporate safety and environmental protection continue to become more
stringent the Company may face increasing operational challenges. The Company remains Through the continuous improvement of institutional processes strengthened conflict-of-interest management standardizedcommied to the principle of “high standards for safety and environmental protection zero information disclosure and enhanced supervision and accountability mechanisms the Company embeds business ethics requirementsSafety and Environmental tolerance for accidents” placing safety and environmental management at the core of its operations. into all aspects of its business operations.Protection Risk It continuously improves its safety management system strengthens risk prevention and control
measures and works to prevent incidents involving personal injury or property loss that could Beginning in August 2025 Chengtun Mining required all subsidiaries and ailiated companies to undertake systematic training on
severely aect the Company’s brand and social reputation. internal control and anti-fraud policies by launching a “Policy Learning Month” initiative. The programmed aimed to enhance
understanding of the Company’s internal control and anti-fraud management requirements and ensure their eective implementation
With the advancement of its internationalization process the Company may encounter across the organization.environmental social and governance (ESG) challenges in its ongoing operations and development.During the Reporting Period Chengtun Mining also began piloting the inclusion of Integrity Commitment Leers in the bidding
To address these issues the Company has established an ESG Commiee and strictly implements
ESG-related Risks relevant governance systems. It actively supports national industrial restructuring and energy documents for equipment suppliers under centralized procurement at headquarters. These leers form an integral part of suppliers’
transition initiatives contributing to the achievement of China’s “dual carbon” strategy and the bidding submissions and clearly define their integrity and anti-corruption obligations. In addition integrity clauses have been
sustainable development of global new energy. At the subsidiary level each subsidiary formulates incorporated into procurement contracts covering equipment materials raw materials auxiliary materials and engineering projects
and implements detailed ESG-related systems based on its specific operational conditions. further clarifying suppliers’ responsibilities in upholding ethical business conduct.
33 34Chapter Five
Impact Risk and Opportunity Management Indicators and Targets
Indicator Unit 2022 2023 2024 2025
Type Related Risks / Opportunities
Number of lawsuits related to unfair
competition with third parties during the year cases 0 0 0 0
Number of lawsuits related to business ethics
The Company faces compliance risks in areas such as procurement bidding and involving third parties during the year cases 0 0 0 0
Risk of Commercial Bribery tendering marketing activities and business cooperation including commercial bribery
and Unfair Competition improper benefit transfer and unfair competition which may lead to legal penalties and Number of reports related to
business ethics and anti-corruption cases 0 0 0 0
reputational damage.Internal audit reports reports 6 7 11 10
Signing rate of integrity commitment leers by
senior management % / 100% 100% 100%
Undeclared or unidentified conflicts of interest among management and personnel in Signing rate of integrity commitment leers by
Risk of Inadequate Conflict of key positions such as family relationships shareholdings or external part-time positions new employees % / / 100% 100%
Interest Management may aect the fairness of business decisions and harm the interests of the Company
and its shareholders. Number of business ethics training sessions times 0 6 6 10
Number of whistleblowing reports times / / / 0
Number of business ethics
and anti-corruption cases cases 0 0 0 0
Risk Related to Misstatements omissions or selective disclosure in operational data financial
Information Disclosure information ESG information and external disclosures may aect stakeholder judgment
and Data Accuracy and lead to regulatory and reputational risks.In 2025
the Company joined
the Corporate Anti-Fraud Alliance.Risk of Employees may engage in misconduct such as disclosing trade secrets abusing authority
Employee Professional Ethics misappropriating assets or falsifying information which may undermine the
and Internal Fraud eectiveness of internal controls and operational security.Risk of Suppliers and business partners may lack sound business ethics practices have weak
Insuicient Transmission of compliance management or engage in corruption or unfair competition which could
Business Ethics Across the
Supply Chain expose the Company to joint liability and reputational risks.CHENGTUN
MINING
By strengthening business ethics policies process controls and supervision mechanisms
Opportunity to the Company can eectively identify and prevent risks such as bribery conflicts of
Reduce Compliance and interest and fraud thereby reducing regulatory penalties legal disputes and
Operational Risks and
Improve Operational Eiciency reputational damage while improving corporate governance and operational eiciency Whistleblowing and Whistleblower Protection Mechanism
and ensuring stable and sustainable operations.The Company is commied to providing employees with a fair and ethical working environment. Under any circumstances if employees
have concerns feel they have been treated unfairly or become aware of any misconduct they may submit a complaint through the
internal whistleblowing hotline or designated email channels.Upon receiving a report management will promptly initiate an investigation and response process ensuring that the maer is addressed
and resolved in a timely manner.A sound business ethics and governance framework is an important reference for ESG
Opportunity to evaluation and investment decisions. Transparent and standardized ethical
Enhance Investor Confidence and management practices can improve ESG ratings aract long-term value investors The Company welcomes supervision
Capital Market Recognition Submit a Complaintexpand financing channels reduce financing costs and enhance competitiveness in from all stakeholders and the public
capital markets. and has established and maintained No
Complaint Meets Acceptance Criteria Not Accepted
the following whistleblowing channels:
Yes
Telephone: 0592-5891666-305
Complaint Investigation
Email: suggestion@600711.com Assist in Resolving the Dispute
In 2025 an additional anti-fraud No
Opportunity to Optimize Extending business ethics and compliance requirements across the supply chain Both Parties Reach a Written Agreement on the Resolution
the Supply Chain Ecosystem and encourages partners to adhere to integrity and responsible business practices helping to reporting channel was introduced YesImplement the Resolution
Either Party to the Complaint Seeks
Strengthen Industry identify qualified and compliant suppliers reduce ethical risks within the supply chain through the Company’s oicial Both Parties to the Complaint Accept the Implementation No Resolution Outside the Company
Chain Resilience and build a stable responsible and sustainable industrial ecosystem. We C h a t p u b l i c a c c o u n t u n d e r Result of the Resolution in Writing The Complaint Procedure
Automatically Terminates“Chengtun Mining – Contact Us – YesFeedback.” End Archive
3035 36Chapter Six
CHENGTUN Environmental Compliance Management
MINING
The Earth is the shared home of humanity. Chengtun Mining consistently upholds the principles of sustainable development embedding green
development into the very fabric of the Company and enabling the circular economy to flourish across the regions where we invest and operate.CHAPTER SIX
Governance
With the growing global emphasis on sustainable development and green manufacturing Chengtun Mining as a listed company has established
an overall environmental management strategy aimed at achieving long-term environmental sustainability while balancing economic
Green and Low-Carbon Development performance and social responsibility.Through the implementation of these strategies the Company seeks to minimize negative environmental impacts enhance resource eiciency
Protecting Our Shared Planet and maintain its competitive position in the market.The current environmental compliance management model of Chengtun Mining is as follows:
Group Level
POINT 01
Decision-Making Level Management Level Execution Level
Board of Directors DedicatedEnvironmental Management of theOperations Department Subsidiaries
Board of Directors: Responsible for establishing the overall environmental policies and strategic direction and making decisions on
major environmental maers.Management Level: Environmental management activities are coordinated by the Operations Department of Chengtun Mining.Dedicated environmental management personnel are appointed within the department to supervise and guide the environmental
management work carried out by the environmental management units of subsidiaries.Execution Level: Each subsidiary has established and improved its environmental management structure. The head of each
company serves as the primary person responsible for environmental protection while the Safety and Environmental Protection
Department assists in carrying out specific environmental protection tasks.Subsidiary Level
POINT 02 Management Level Supervisory Level Execution Level
SubsidiaryManagement DedicatedEnvironmental Management of theOperations Department Subsidiaries
Management Level: The head of each subsidiary serves as the primary person responsible for environmental protection
coordinating environmental management activities across the company and seing annual environmental management objectives.Supervisory Level: Each subsidiary has established a dedicated environmental management department (or designated personnel)
responsible for overseeing the implementation of environmental management practices and conducting regular supervision of on-
site environmental performance.Execution Level: Production workshops and on-site managers are responsible for implementing the environmental management
requirements set by Chengtun Mining and their respective subsidiaries. Dedicated or part-time environmental management
06 personnel are assigned at the workshop and site level to conduct routine inspections and daily environmental management activities.Strategy:Chengtun Mining places environmental protection as a key priority within its corporate management framework and has established a three-tier environmental management model consisting of central coordination decentralized implementation and integrated evaluation as outlined below:Overall The overarching principle of Chengtun Mining’s environmental management is to prioritize environmental protection Requirements emphasize prevention and adopt comprehensive management approaches. At the same time the concept of “energy conservation reduced resource consumption pollution reduction and eiciency improvement” is embedded throughout the Company’s production and operational processes.Decentralized Based on clearly defined environmental management objectives and a target accountability system the Group Implementation breaks down overall environmental targets into specific indicators. These are formalized through Environmental Responsibility Agreements signed with each subsidiary requiring them to implement and fulfil the environmental protection responsibilities outlined in the agreements.Integrated Each subsidiary formulates its annual environmental management objectives in accordance with the Group’s strategic Assessment plan defines specific implementation measures and assigns responsible personnel. Environmental management systems are continuously updated and improved based on operational needs. The Group conducts an annual integrated evaluation of environmental management performance across all subsidiaries.37 38Chapter Six
Environmental Management System Impacts Risks and Opportunities:
We adhere to a full life-cycle management approach for mining operations and apply the PDCA (Plan–Do–Check–Act) closed-loop
management framework. In alignment with national laws and regulations the requirements of the ISO 14001 Environmental Management
System and the Company’s own environmental risk profile we continuously improve our environmental management practices. Implementation Risk Opportunity Response Measures
follows the structured framework below:
Increasingly stringent environmental Improve compliance standards reduce Establish a regulatory monitoring
policies and regulations may lead to risks regulatory costs and enhance credibility. mechanism improve the management
Group Environmental Management Policies: These serve as the Company’s overarching environmental management of compliance penalties production system in accordance with ISO 14001
documents. suspension or capacity restrictions. and conduct regular internal compliance
Subsidiary Environmental Management Policies: These are process-oriented documents covering various environmental audits.management modules and elements.Rising energy and resource prices and Achieve cost reduction and eiciency Promote energy-saving retrofits
Subsidiary Environmental Work Instructions or Standards: These provide operational guidance for implementing environmental management
increasing environmental investments i m p r o v e m e n t t h r o u g h e n e r g y optimize production processes and
practices.may raise operating costs. conservation carbon reduction and s t r e n g t h e n e n v i r o n m e n t a l c o s t
In addition all subsidiaries are required to actively pursue and maintain ISO 14001 Environmental Management System certification as part of resource recycling. management.their ongoing environmental management eorts.Environmental incidents or improper Enhance corporate brand image and stablish environmental risk early-warning
and emergency response mechanisms
Environmental Protection Investment pollutant emissions may cause safety and strengthen recognition from investors
reputational risks. and customers. a n d i m p l e m e n t c o m p r e h e n s i v e
environmental management throughout
Adequate investment in environmental protection forms the foundation for implementing our environmental initiatives. As of the end of the
the entire process.Reporting Period the Company continued to provide suicient financial support for environmental protection activities. The annual budget
allocated to environmental protection and related initiatives is not less than RMB 50 million ensuring the availability of adequate resources to Environmental compliance issues in the Build a green supply chain and create Incorporate environmental requirements
support our environmental management eorts. upstream and downstream supply chain dierentiated competitive advantages. into supplier admission criteria and
may aect the stability of the industrial conduct environmental audits and
chain. training for suppliers.Environmental Emergency Management
Delays in low-carbon transition may Seize green development opportunities Formulate environmental targets and
Chengtun Mining requires all subsidiaries to establish a comprehensive environmental emergency management system including the formation weaken market competitiveness and ESG and enhance long-term sustainable a c t i o n p l a n s a n d p r o m o t e t h e
of dedicated emergency management organizations with clearly defined responsibilities.ratings. development capacity. application of green technologies and
Based on the potential environmental impacts associated with their operations each subsidiary is required to develop environmental emergency digital management.response plans. These plans must be filed with the relevant local government authorities in accordance with regulatory requirements. In addition
subsidiaries are required to conduct at least one environmental emergency drill each year with proper documentation and post-drill evaluation
to ensure continuous improvement in emergency response capabilities.Targets and Indicators
During the reporting period all operating subsidiaries of Chengtun Mining fulfilled the commitments of four “zero” targets and four
“100%” targets.Target Content Achievement Status
Zero environmental pollution incidents 0
Zero petition and complaint cases 0
Zero environmental administrative penalties 0
Zero mass incidents caused by environmental pollution issues 0
Environmental risk inspections and rectification implemented in place with a problem rectification rate of 100% 100%
Environmental protection facilities and equipment operating rate of 100% with a 100% compliance rate for the 100%
discharge of the “three wastes”
Hazardous waste managed in compliance with laws and regulations with zero error rate in hazardous waste
100%
generation storage transfer and disposal and a standardized disposal rate of 100%
Compliance rate of required procedures and approvals reaching 100% 100%
3039 40Chapter Six
Key Wastewater Control Measures:
Pollutant Emissions Management
Wastewater Wastewater generated during mining mineral processing and smelting operations is collected and treated
Reuse through both pre-treatment and advanced treatment processes before being reused in production activities.Governance Reuse of First- Initial rainwater is collected and treated to meet soft water standards after which it is reused in the soft water
Flush Rainwater: treatment system.The Company manages pollutant emissions through a two-tier management approach at both the Group and subsidiary levels.Improving The Company strengthens technical training for employees to ensure accurate process control and proper
Compliance Rates use of treatment chemicals thereby ensuring wastewater consistently meets discharge standards.Group Level:
POINT 01 Decision-MakingLevel ManagementLevel： Execution Level Upgrades and Wastewater treatment facilities are upgraded with additional infrastructure including pipelines tanks and
Board of Directors DedicatedEnvironmental Management by theOperations Department Subsidiaries Retrofiing filter presses to meet the requirements for wastewater collection treatment and compliant discharge
following process improvements.Board of Directors: Responsible for formulating the overall policies and strategic direction for pollutant emissions management
and making decisions on major environmental maers. Separation of Independent rainwater and sewage drainage systems are implemented to prevent cross-contamination and
Rainwater and ensure eective wastewater management.Management Level: The Operations Department of Chengtun Mining coordinates the management of pollutant emissions. Sewage:
Dedicated environmental management personnel are appointed within the department to supervise and guide the
environmental management activities carried out by subsidiaries.Execution Level: Each subsidiary has established a pollutant emissions management structure with the head of each company
serving as the primary person responsible for pollutant emissions management.Subsidiary Level:
POINT 02
ManagementLevel SupervisoryLevel Execution Level Air Emissions Management
Subsidiary Heads SubsidiaryEnvironmental ManagementDepartments ProductionWorkshops and Operational Sites
In response to national initiatives on pollution reduction and emissions control Chengtun Mining actively fulfils its corporate social
responsibility by promoting measures such as total atmospheric pollutant emission control strict compliance with discharge
Management Level:The head of each subsidiary serves as the primary person responsible for pollutant emissions management standards and the adoption of cleaner energy sources. The Company requires all subsidiaries to actively implement relevant
coordinating pollutant control activities across the company and seing annual pollutant emissions management targets.environmental protection initiatives in these areas.Supervisory Level: Each subsidiary has established a dedicated environmental management department (or designated personnel)
Each subsidiary has established and implemented policies such as the Air Emissions Management Policy to eectively control air
responsible for overseeing the implementation of pollutant management practices and conducting regular supervision of on-site
pollutant control measures. emissions. Dedicated environmental protection departments and on-site professional personnel responsible for air emissions
control facilities have been put in place to ensure that air emissions treatment and management are conducted in a lawful and
Execution Level: Production workshops and on-site managers are responsible for implementing the pollutant control requirements compliant manner.set by Chengtun Mining and their respective subsidiaries. They conduct routine inspections and carry out regular pollutant
monitoring and testing to ensure compliance with environmental standards.Control Method Measures
Wastewater Management Exhaust gases of dierent categories are collected separately to ensure
precise control.To achieve its wastewater pollution control objectives Chengtun Mining requires all subsidiaries to strictly comply with national or local Exhaust Gas Collection
discharge standards and total pollutant emission limits ensuring that all water pollution indicators meet the applicable regulatory
requirements.Wastewater generated from our operations primarily originates from drainage during mining and mineral processing activities as well as
wastewater produced during smelting and other processing operations. Dedicated exhaust gas treatment systems are established for dierent
types of exhaust gases such as desulfurization processes.Each subsidiary has established and implemented various policies including the Wastewater Management Policy to eectively control Exhaust Gas Treatment System
wastewater discharges. Dedicated environmental protection departments and professional on-site wastewater treatment personnel are in
place to ensure that wastewater treatment processes are conducted in a lawful and compliant manner.To achieve the goals of wastewater reduction and harmless treatment Chengtun Mining manages wastewater through a range of control
measures designed to minimize or eliminate wastewater discharge wherever possible.Production processes are optimized to reduce pollutant emissions.Process Optimization
Business Segment Type of Wastewater Control Measures Use
Recycling and
reuseCollection – Reused in production reducing
Mineral processing water Pre-treatment – Advanced both wastewater discharge and
treatment – Reuse raw water consumption Acidic waste gases generated during the smelting process are collected
Mining Waste-to-Resource Utilization
and converted into sulfuric acid through an acid production system for
Recycling and reuse.reuseCollection – Domestic Mainly used for road dust
Domestic wastewater wastewater treatment suppression or landscaping
facilities – Reuse
Regular maintenance and servicing are carried out on exhaust gas
Recycling and treatment facilities to ensure their proper operation.Reused in production reducing
reuseCollection – Facility Maintenance
Production water Pre-treatment – Advanced both wastewater discharge and
treatment – Reuse raw water consumption
Smelting Discharged in compliance Discharged in compliance with
with standardsCollection –
Domestic wastewater Domestic wastewater standards into the municipal 1. Automatic online monitoring systems are installed for key pollutants as
treatment facilities – Reuse sewage network Regular Monitoring required to ensure real-time monitoring of exhaust gas emissions data.
2. A self-monitoring plan is established to regularly test discharged
Rainwater Recycling and reuse Used in production pollutants.
0431 42Chapter Six
Waste Management
To prevent environmental harm from solid waste protect human health and maintain ecological balance while complying with the requirements of
the Law of the People’s Republic of China on the Prevention and Control of Environmental Pollution by Solid Waste the Company has strengthened Environmental Training
the management of solid waste generated during its production processes. Solid waste arising from operations is properly handled and treated to
prevent environmental pollution.To strengthen employees’ environmental awareness and ensure they fulfil their environmental responsibilities alongside their professional duties
Chengtun Mining conducts specialized environmental training programmed for its workforce.Solid waste generated by Chengtun Mining’s subsidiaries primarily includes smelting slag produced during smelting operations waste rock generated
from mining activities and tailings produced after mineral processing. The Company has established a three-tier environmental training framework implemented from top to boom ensuring comprehensive
coverage across all organizational levels.The primary wastes generated from mining operations are tailings and waste rock. To properly store and manage these materials the Company
establishes and plans tailings storage facilities and waste rock dumps in a systematic manner. In accordance with national regulations and relevant
standards anti-leakage and anti-seepage measures are implemented to prevent waste materials from leaking or dispersing into the surrounding
environment thereby minimizing potential impacts on nearby ecosystems. Group-Level Training: Dedicated environmental management personnel at Chengtun Mining conduct annual environmental
POINT 01 training for subsidiaries focusing on areas where environmental management requires improvement. In addition the Group
In smelting operations the primary types of solid waste generated include various production residues and hazardous wastes arising during the invites senior national environmental experts or environmental enforcement oicials each year to deliver centralized training
production process. In managing these wastes we consistently adhere to the 3R principle—Replacement Reduction and Refinement—to guide our sessions for subsidiaries.waste management and control practices.Subsidiary-Level Training: Environmental health and safety departments within each subsidiary organize periodic environmental
POINT 02 education and training programmed for production plants. Training topics include but are not limited to environmental factor
identification relevant laws and regulations emergency response plans hazardous waste management management of
wastewater waste gas and solid waste (“three wastes”) prevention of leakage and spills during slag transportation and
specialized management of water air slag and hazardous waste.Control Method Measures
Classification principles are established for waste and dierent categories of
Classified Collection waste are collected separately.Workshop-Level Training: Team leaders within subsidiaries conduct regular on-site environmental training and awareness
POINT
Waste that can be reused internally is recycled through methods such as process optimization 03 sessions for operational sta focusing on job-specific environmental practices and strengthening environmental awareness.Recycling and Reuse
thereby reducing raw material consumption.Process Optimization Production processes are optimized to reduce the generation of waste.Outsourced Treatment Waste that cannot be recycled or reused is entrusted to third-party organizations for disposal. In addition to strengthen foundational environmental awareness the Company organizes centralized environmental awareness training each
year for newly recruited university graduates from its subsidiaries conducted at the Zhonghe Nickel Industry Training Base.
043 44Chapter Six
Environmental Awareness and Engagement Activities Impacts Risks and Opportunities:
Risk Opportunity Response Measures
Increasingly stringent environmental Improve compliance levels avoid Establish an environmental regulatory
regulations may lead to compliance regulatory penalties and establish a tracking mechanism implement pollutant
To promote green travel support low-carbon lifestyles and actively respond to ESG principles while fulfilling our social responsibilities risks such as fines production compliant corporate image. discharge permit management and
Chengtun Mining works to foster a strong culture of safety and environmental protection. Each year we organize a variety of activities restrictions or shutdowns in the event conduct regular compliance self-
around occasions such as World Environment Day and Earth Day aimed at strengthening employees’ environmental awareness and of excessive emissions. inspections and internal audits.encouraging environmentally responsible behavior.Unstable operation of pollution control Enhance pollutant control capabilities Strengthen the operation and maintenance
facilities or inadequate monitoring a n d e n s u r e s t a b l e p r o d u c t i o n of exhaust gas wastewater and solid
may result in excessive emissions and operations. waste treatment facilities and improve
Strategy environmental incidents. online monitoring and process control.Increased investment in pollution Promote cleaner production and Optimize production processes promote
POINT 01 Pollution Prevention control and rising emission costs may source reduction to achieve cost green technologies and reduce pollutant
create operational cost pressures. reduction and efficiency improvement. generation at the source.To prevent pollutants generated during daily production and operational activities from harming the environment protect
the broader ecological environment and maintain ecological balance—while also complying with the requirements of the
Environmental Protection Law of the People’s Republic of China and other relevant regulations—Chengtun Mining
strengthens the management and control of pollutants throughout its production processes. The Company ensures that
potential sources of environmental pollution are properly managed and treated thereby preventing adverse Standardize environmental information
environmental impacts. Pollutant emission issues may trigger Enhance the Company’s green brand disclosure strengthen environmental risk
negative public opinion and affect image and meet ESG expectations of m a n a g e m e n t a n d i n c o r p o r a t e
brand reputation and supply chain customers and capital markets. environmental requirements into supply
cooperation. chain management.POINT 02 Pollution Control Approach
Chengtun Mining adopts a three-step approach to pollution prevention and control: source reduction process control
and end-of-pipe treatment.POINT 03 Source Reduction:
1.Raw Material Control: The Company exercises strict control over raw materials prioritizing the adoption of cleaner raw
materials and auxiliary materials wherever possible. Chemical compositions are carefully analyzed and where feasible
non-toxic harmless or low-pollution materials are selected to minimize environmental impacts at the source.
2.Project Construction Control: Environmental Impact Assessments (EIAs) are conducted prior to project development.
Construction may commence only after contractors have prepared and submied an Environmental Protection Plan. For
locations with potential leakage risks anti-seepage control measures and management plans are also developed and
implemented.POINT 04 Process Control:
1.Environmental Compliance of Contractors: Environmental compliance checks are conducted for contractors to ensure
that construction activities are carried out in accordance with environmental requirements and that no environmental
risks arise during the process.
2.Process Optimization: During production the Company pursues the goals of pollution reduction eiciency
improvement energy conservation and reduced resource consumption. Subsidiaries are encouraged to optimize
production processes and implement technological upgrades to minimize pollutant generation.
3.Operational Monitoring: Production personnel work collaboratively to monitor operations and prevent leaks spills and
emissions at every stage of the production process.
4.Environmental Inspections: Environmental management personnel conduct regular environmental inspections across
the Company while workshop managers and designated environmental sta perform routine self-inspections within their
operational areas promptly reporting and rectifying any identified issues.POINT 04 End-of-Pipe Treatment:
To ensure strict compliance with emission standards and meet national and industry regulatory requirements the
Company has installed pollution control facilities at the end-of-pipe stage across its operations minimizing the impact of
emissions on the external environment.Subsidiaries in operation are required to progressively achieve zero wastewater discharge.To further support emission reduction objectives the pilot subsidiary Zhonghe Nickel Industry has established short-
medium- and long-term air emissions control targets:
Short-term target (within 1 year) Strengthen management and implement special emission limits for air
pollutants ensuring full compliance with applicable standards.Medium-term target (within 3 years): Optimize emissions reduction measures to achieve Grade B performance
under environmental performance evaluation standards.Long-term target (within 10 years): Reduce nitrogen oxide (NOx) emissions by 20% while maintaining green
manufacturing practices.
4035 46Chapter Six
Cost Control through Refurbishment and Reuse
Indicators and Targets at Chengtun Zinc & Germanium
Environmental Indicator Unit 2022 2023 2024 2025 In response to current market conditions Chengtun Xinzhe has implemented a comprehensive initiative to refurbish
and reuse obsolete spare parts and discarded materials accumulated over previous years. Measures adopted include
performance substitution processing and modification process optimization and cross-plant allocation of resources.Through these initiatives the company has eectively reduced expenses lowered operational costs and enhanced
Wastewater Discharge tonnes/year 141158.67 217274.92 540583.06 1194429.28 on-site management standards while promoting the eicient use of resources.
1.Institutional Framework First – Strong Implementation Measures:
The Company issued the Obsolete Spare Parts Disposal Plan establishing a clear institutional framework to guide the
refurbishment and reuse of idle spare parts and materials.COD Discharge in tonnes/year 6.70 9.10 12.81 48.7 2.Comprehensive Inventory Review:
Wastewater
A thorough inventory check was conducted across more than 10 warehouses and material storage yards in six
production plants providing a complete assessment of existing spare parts and materials.
3.Coordinated Action for Resource Reuse:
Ammonia Nitrogen tonnes/year 1.20 1.47 2.67 2.46
Discharge in Wastewater Approximately 37 tonnes of scrap metal and discarded equipment including pipes pumps flanges and chutes were
carefully dismantled and categorized. After detailed screening and processing around 90% of these materials were
redistributed to various plants for reuse.
4.Innovation and Refurbishment for Resource Recovery:
Total Copper Discharge tonnes/year 0.00 0.00 0.00 0.094 The Resource Recycling Plant creatively repurposed scrap steel for the manufacturing and modification of equipment
in Wastewater including boiler manhole components the No.1 kiln head smoke-retaining ring and slag storage bins used in safety
improvement projects eectively turning waste materials into valuable resources.Total Zinc Discharge tonnes/year 0.09 0.04 0.08 0.088
in Wastewater
Wastewater Treatment % 100 100 100 100
Compliance Rate
Exhaust Gas Emission % 100 100 100 100
Compliance Rate
Green Energy · Protecting Our Planet
Huajin Mining Launches World Earth Day 2025 Awareness Campaign
Nitrogen Oxides (NOx) tonnes/year 45.81 105.35 134.63 897.546
Emissions
CHENGTUN
Sulfur Dioxide (SO) tonnes/year 34.15 32.78 68.92 4516.912
Emissions MINING
Particulate Matter tonnes/year 24.14 19.53 36.08 119.94
Emissions
General Waste Generated tonnes/year 247092.41 252105.43 302069.68 366633.41
(excluding tailings)
Comprehensive Disposal tonnes/year 138443.46 122624.00 136678.31 300869.5
of General Waste
Hazardous Waste tonnes/year 279225.24 353635.06 349947.86 402335.396
Treated
During the Reporting Period the following operating subsidiaries achieved zero wastewater discharge:
KMSA Yinxin Mining Kelixin (Yangjiang) Youshan Nickel Huajin Mining Aima Mining Brothers Mining and Zhonghe Nickel Industry.Zhonghe Nickel Industry has established short- medium- and long-term air emissions control targets:
On 22 April 2025 the 56th World Earth Day Guizhou Huajin Mining organized a series of awareness activities under
Short-term target (within 1 year): Strengthen management measures and implement the special emission limits for air pollutants ensuring the theme “Green Energy Protecting Our Planet.” These initiatives eectively promoted the integration of ESG
full compliance with applicable standards. This short-term target has been achieved. principles into the Company’s corporate culture.
0437 48Chapter Six
Biodiversity
Green Energy · Protecting Our Planet Governance:
Zhonghe Nickel Industry Launches World Earth Day Campaign
Board Level
Board of Directors
During World Earth Day 2025 Zhonghe Nickel Industry Co. Ltd. organized a series of Management Levelenvironmental awareness and practical activities under the theme “Green EnergyEnvironmental Social and Governance (ESG) CommieeProtecting Our Planet.” These initiatives were designed to deepen employees’
understanding of sustainable development and further integrate ESG principles into
the Company’s daily operations.Operational Level
Subsidiaries and Group
ESG Oice Functional Departments
Carbon Peaking and Carbon Neutrality Task Force
(composed of members from relevant departments)
Biodiversity Task Force Structure
Biodiversity Working Group:
Responsible for assessing and managing the impacts of the Company’s operations on ecosystems and promoting the implementation of
ecological protection and restoration initiatives
Biodiversity plays a vital role in maintaining ecosystem balance degrading pollutants regulating climate sustaining water resources forming
and protecting soil and supporting overall ecological stability. As such biodiversity forms a fundamental basis for sustainable human
development. For this reason we place particular emphasis on biodiversity protection throughout the stages of project development
construction and operational activities.To minimize the potential adverse impacts of mining activities on biodiversity and land resources the Company has implemented the
following measures:
POINT 01 Establishment of Geological Environment Restoration Funds
Subsidiaries engaged in mining and mineral processing regularly allocate funds for land reclamation and mine geological
environment restoration. These funds are reserved specifically for carrying out various land rehabilitation and ecological
restoration projects.POINT 02 Collaboration with Third Parties for Environmental and Land Assessments
Prior to commencing mining activities subsidiaries engage qualified third-party organizations to conduct comprehensive
assessments of the environmental and land conditions within mining areas. Based on these assessments a Mine
Geological Environment Protection and Land Reclamation Plan is prepared and submied to the local natural resource’s
authority for approval.POINT 03 Implementation of Reclamation Projects within Approved Scope
Subsidiaries undertaking mining operations commit to carrying out land reclamation and ecological restoration projects
within the scope specified in the approved Mine Geological Environment Protection and Land Reclamation Plan.To further strengthen biodiversity protection we require all subsidiaries to establish policies and measures aligned with their
operational characteristics and local regulatory requirements during both the project development and operational stages
with the aim of actively improving the surrounding environment.
4093 50Chapter Six
Strategy Impacts Risks and Opportunities
Risk Opportunity Response Measures
We respect and safeguard legally designated protected areas and identify and understand the distribution of high-value conservation Project construction and operations Improve ecological compliance and C o n d u c t b i o d i v e r s i t y i m p a c t
areas within and surrounding our project sites. We are commied to avoiding business activities in areas where environmental risks are may damage ecosystems and violate reduce policy and legal risks. a s s e s s m e n t s d u r i n g p r o j e c t
considered beyond our acceptable threshold. biodiversity-related regulations development and strictly comply with
leading to penalties or project approval ecological protection red lines and
restrictions. regulatory requirements.We also commit to complying with the Convention on Biological Diversity as well as relevant national and local laws and regulations on
biodiversity conservation while respecting and protecting biodiversity in all our operations. Production and operational activities Establish a responsible corporate Carry out ecological monitoring and
may negatively affect surrounding image and enhance ESG ratings and protection measures to minimize
ecosystems and wildlife habitats social recognition. ecological impacts such as land
When selecting project sites the Company avoids ecological redline zones habitats of rare or endangered species and designated potentially triggering public opinion occupation and pollution.nature reserves thereby minimizing potential impacts on sensitive ecosystems.We implement restoration initiatives in areas aected and reputational risks.by mineral resource development in order to rehabilitate the ecological environment and minimize land disturbance to the greatest
extent possible.Supply chains may involve regions with Build a green and sustainable supply Incorporate biodiversity requirements
high biodiversity risks affecting supply chain and create differentiated into supplier management and conduct
We establish eicient information communication mechanisms with both internal and external stakeholders proactively disclose our chain stability. competitive advantages. ecological risk assessments across the
biodiversity protection performance and remain open to external oversight. supply chain.The Company actively engages with universities research institutions industry associations and relevant government authorities to Excessive resource consumption and Promote green transformation Promote resource conservation and
promote dialogue and cooperation on biodiversity conservation. ecological degradation may increase participate in ecological restoration cleaner production and support or
operating costs and pose long-term and obtain support from green participate in ecological restoration
sustainability risks. policies. projects such as afforestation wetland
restoration and grassland rehabilitation.Failure to respond to international and Align with carbon neutrality and Integrate biodiversity considerations
domestic biodiversity initiatives may e c o l o g i c a l p r o t e c t i o n t r e n d s i n t o c o r p o r a t e m a n a g e m e n t
r e s u l t i n m i s s e d s u s t a i n a b l e strengthening long-term development requirements and proactively disclose
development opportunities. resilience. relevant information.Indicators and Targets:
In 2025 Guizhou Huajin’s performance in soil and water conservation and biodiversity protection was as follows:
Planted 350 eucalyptus trees with 900 m of soil covering;
22
Established 2200 m of lawn planted 158 osmanthus trees and 110 Photinia fraseri shrubs with 9000 m of soil covering.Water Source Protection – BMS
5031 52Chapter Six
Tailings Storage Facility Management Impacts Risks and Opportunities
Risk Opportunity Response Measures
Inadequate safety management of E s t a b l i s h a n i n t r i n s i c a l l y s a f e Establish a safety risk classification
Governance: tailings storage facilities may lead to management system ensure continuous control and hazard identification and
major accidents such as dam failure or and stable production and enhance remediation mechanism and implement
The Company has established a top-down tiered governance framework for tailings storage facility management integrating safe operation landslides posing risks of casualties and corporate safety governance capabilities. duty schedules routine inspections and
environmental risk prevention and control and ecological protection into the core of corporate governance. production suspension. special inspections.Leachate leakage and dust pollution may Strengthen environmental management Improve anti-seepage systems leachate
cause soil and water contamination ensure compliant operations and reduce collection and treatment facilities and
potentially violating environmental the risks of environmental penalties and dust suppression systems; implement
Decision-Making Level: regulations and resulting in penalties ecological damage. online monitoring and conduct regular public opinion pressure or production environmental impact assessments.restrictions.Led by the principal responsible persons of each company responsible for overseeing major risk management of Inadequate emergency management Enhance emergency response capabilities Develop dedicated emergency response
tailings storage facilities ensuring resource allocation and seing management objectives. systems insufficient emergency supplies and minimize accident losses and social plans equip sufficient emergency
or insufficient drills may weaken the impacts. supplies conduct regular emergency
capacity to respond to emergencies. drills and strengthen personnel training.Delayed or non-compliant closure and Achieve full life-cycle management of Strictly implement closure requirements
ecological restoration of tailings facilities tailings facilities and establish the image promote soil covering revegetation and
may create long-term ecological and of a responsible mining enterprise. ecological restoration and establish a
compliance risks. l o n g - t e r m m a i n t e n a n c e a n d
Management Level: management
Relevant departments including safety and environmental protection and production jointly undertake
responsibilities for daily supervision risk identification and mitigation and emergency management.Indicators and Targets
In 2025 one new tailings storage facility was constructed designed and built in strict accordance with relevant standards.A total of 15 tailings storage facilities were in operation and maintenance with zero accidents recorded in 2025.Execution Level:
On-site operation and maintenance units are responsible for routine inspections monitoring facility maintenance
and record management.The Company strictly manages tailings storage facilities in accordance with relevant national and industry
standards and has established the following management principles:
1.The design and construction of tailings storage facilities must comply with applicable national standards and
regulations to ensure structural stability and operational safety.
2.During operation strict environmental monitoring is conducted including regular inspections of seepage
conditions dam stability and changes in the surrounding ecological environment in order to prevent tailings from
contaminating groundwater and surface water and to avoid damage to soil and ecosystems.
3.A comprehensive tailings storage facility safety management system is established including the development of
emergency response plans regular safety assessments and hazard identification and mitigation measures to
ensure stable and safe operation under extreme weather and natural disaster conditions.
4.The Company encourages the integrated utilization of tailings including tailings reprocessing and resource
recovery to reduce tailings stockpiles lower environmental risks and promote the sustainable use of resources.Strategy: We follow industry standards and best practices throughout the entire lifecycle of tailings facilities including
planning design construction operation maintenance monitoring closure and post-closure management. To
reduce land occupation and enhance safety we conduct site-specific research pilot testing and implementation
planning for dry tailings disposal and comprehensive tailings utilization.Newly constructed tailings storage facilities are designed and implemented in strict accordance with applicable
standards and requirements.Existing tailings storage facilities are operated and maintained with a target of zero accidents.
503 54Chapter Six
Groundbreaking Ceremony Successfully Held for CCR
Phase III Tailings Storage Facility Project
The CCR Phase III Tailings Storage Facility Project of CCR oicially commenced construction in July 2025 marking a new stage in the Company’s advancement in resource
recycling and sustainable development. Guided by the concept of green construction the project aims to achieve an integrated balance between safety environmental Tailings Storage Facility Management at KMSA
protection and operational eiciency through systematic planning and refined management.
1. Core Project Planning and Sustainable Development Objectives
As a key project to enhance the comprehensive utilization of resources the project is scheduled for a total construction period of approximately 270 days implemented in
phased stages. The dam structure has been designed to balance safety and operational eiciency. Upon completion the facility will significantly increase tailings storage
capacity meeting the Company’s medium- to long-term production needs and strengthening its resource recycling capabilities.Based on scientific climate scenario analysis KMSA has identified that under high greenhouse gas emission pathways
2. Refined Construction and Eicient Resource Allocation extreme precipitation events in its operating region in the Democratic Republic of the Congo (DRC) are expected to
intensify posing long-term physical risks to critical infrastructure such as tailings storage facilities. To systematically
Construction is carried out under the principles of intensive and eicient operations. Through the scientific allocation of machinery and the optimization of operational address this challenge the Company has incorporated climate adaptation governance into its enterprise risk
workflows the processes of earth excavation transportation and embankment filling are eectively coordinated. Emphasis is placed on process coordination and eiciency management framework and is promoting structured improvements in facility resilience in accordance with
management during construction to ensure progress while reducing energy and resource consumption. international standards including the ICMM Global Industry Standard on Tailings Management and the TCFD
recommendations.
3. Phased Implementation and Milestone Management
Although no accidents or significant incidents related to heavy rainfall have occurred at KMSA’s tailings storage facilities
The project is implemented strictly in accordance with staged objectives. In 2025 key tasks included site clearing initial dam construction and anti-seepage treatment. After to date the Company places strong emphasis on the potential physical risks identified through climate scenario
resuming construction in 2026 work will continue on dam construction and geomembrane installation ensuring timely completion of the project. A dynamic progress modelling and the inherently high exposure of tailings facilities. Accordingly proactive and systematic preventive
management system is applied throughout the project to ensure that all stages comply with environmental and safety standards. measures have been initiated to enhance the resilience and safety of tailings facilities.
4. Safety Environmental Protection and Sustainable Construction Measures
During 2025 the Company implemented a number of key projects related to tailings storage facilities including:
In the planning of soil extraction the project adheres to the principles of intensive land use and ecological protection with careful planning of borrow areas to minimize
impacts on the surrounding environment. During construction strict standards for layered compaction and anti-seepage control are implemented to ensure the long-term Maintenance of the return water system (tailings and acidic return water pipelines return pumps etc.);
stability of the dam structure and environmental safety. Re-laying of anti-seepage membranes and multiple repairs of damaged sections to enhance the dam’s seepage
prevention capability;
Construction of auxiliary access structures (cable-stayed bridges and floating bridges) to ensure smooth operation and
maintenance access;
Structural repairs to the three-stage collection ponds of the main dam and construction of diversion facilities to prevent
water accumulation at the outer dam toe;
Restoration of tailings embankment fill and widening of drainage channels to improve overall drainage capacity;
Reinforcement of floating platform structures to support safe operations in water areas.Looking ahead KMSA will accelerate the establishment of a tailings storage facility climate risk key performance
indicator (KPI) monitoring system and will regularly benchmark performance against international disclosure
standards (such as GRI and SASB) to communicate progress. The Company will also continue to track updates from
authoritative climate scenario frameworks such as those issued by the IPCC dynamically optimizing facility design and
management standards to ensure that tailings management practices remain aligned with global climate adaptation
objectives.
0535 56Chapter Six
Energy Use
Governance
The current energy management model of Chengtun Mining is as follows:
Waste During smelting operations processes such as flue gas generation produce significant amounts of waste
Group Decision-makingLevel ManagementLevel Executive Level Heat heat which would otherwise be lost if not effectively utilized. Guided by the principles of green
Level Board of Directors Energy Managementof the Operations Department All Subsidiaries Recovery development energy conservation and emissions reduction the Company’s management places strong
emphasis on the utilization of waste heat.Through the application of waste heat recovery technologies this residual heat can be effectively
Board of Directors: Responsible for formulating the overall energy policies and strategic direction and making decisions on major converted into electricity or steam for operational use enabling energy reuse and improving overall energy
energy-related maers. efficiency. The utilization of waste heat not only contributes to reducing environmental pollution and
Management Level: The Operations Department of Chengtun Mining coordinates the implementation of energy management promoting energy conservation but also helps lower production costs and enhance economic benefits for
activities. Dedicated energy management personnel are appointed within the department to supervise and guide energy the Company.management work carried out by subsidiaries.Execution Level: Each subsidiary has established and improved its energy management structure coordinating the implementation
of energy conservation and emissions reduction initiatives across the organization.Technological During production processes certain production technologies and power infrastructure may exhibit
Upgrades discrepancies between their original design parameters and actual operating conditions. This requires
continuous improvement through day-to-day management practices.Energy To eectively promote energy conservation and emissions reduction subsidiaries continuously strengthen
Management the development of energy-saving policies improve energy consumption measurement and statistical By collecting operational parameters energy consumption data and efficiency performance indicators
System systems and enhance employees’ awareness of energy conservation through training and various the Company identifies potential areas for improvement. Measures such as adjusting process parameters
awareness initiatives. These eorts aim to establish a systematic energy management framework. implementing secondary upgrades to power systems and optimizing energy transmission lines and pipeline
networks are implemented to enhance energy efficiency reduce energy waste and minimize overall energy
consumption.Energy Chengtun Mining’s operations consist of two main business segments: mining and smelting. During
Management production and operational activities the Company consumes various forms of energy including electricity
coal natural gas and steam. The Company consistently adheres to the principles of green development
and energy conservation implementing measures such as optimizing the energy structure identifying Equipment Equipment upgrades are also an important measure in our energy management practices. By replacing
energy-saving potential strengthening technological upgrades and promoting energy conservation Upgrades and optimizing equipment and carrying out technological upgrades and improvements to existing facilities
awareness. These initiatives aim to reduce energy consumption and improve energy efficiency throughout we enhance their performance efficiency and reliability thereby achieving energy savings and reducing
production and operational processes ultimately achieving systematic and refined energy management. overall energy consumption.Energy Each subsidiary adopts energy management systems according to its operational needs establishing digital
Management systems for energy data collection processing and analysis. These systems are used to monitor and Energy To ensure the continuous and effective implementation of energy conservation management and to
System analyze energy consumption in production processes and power facilities while also tracking peak off- Conservation encourage the active participation of management at all levels each company has established relevant
peak and standard electricity usage. Through the optimization and adjustment of production scheduling Performance management policies such as the Energy Conservation Performance Assessment System. Under this
the Company works to improve overall energy consumption efficiency. Assessment framework management personnel at all levels are subject to monthly performance evaluations with
assessment results linked to the human resources performance management system.Use of On the path toward carbon neutrality the promotion and use of green electricity and clean energy remains
Green a firm and unwavering direction for the Company. We recognize that the green transformation of
Energy electricity consumption plays a crucial role in reducing greenhouse gas emissions and protecting the Energy Energy conservation awareness initiatives play a crucial role in enhancing employees’ understanding of
environment. Conservation energy use and promoting sustainable development across the Company. Such initiatives help educate
Awareness
By actively developing renewable energy sources such as solar power we aim not only to reduce reliance on employees about the environmental impacts of energy consumption encourage the adoption of energy-
fossil fuels but also to promote the optimization and upgrading of the energy structure. This transformation saving practices and reduce energy waste.is vital not only for the present but also for the future representing an essential pathway toward Through these awareness efforts energy-efficient technologies and products can be widely promoted
sustainable development and the creation of a greener planet. improving energy utilization efficiency and reducing energy costs. In addition energy conservation
We will continue to invest in technological innovation and energy management optimization translating our campaigns help employees better understand the Company’s energy management policies and encourage
commitment to green development into concrete actions and contributing to the achievement of carbon broad participation in proposing energy improvement initiatives.neutrality goals.
0537 58Chapter Six
Strategy: Indicators and Targets:
Chengtun Mining consistently adheres to the green development philosophy. Guided by China’s “3060” carbon peaking and carbon
neutrality targets the Company promotes energy and carbon emissions management implements various energy conservation and
emissions reduction measures optimizes energy use adjusts the energy structure promotes the consumption of green energy reduces The subsidiary Chengtun Zinc & Germanium has
and eliminates energy waste continuously improves the energy management framework and reduces both energy consumption and established and continues to operate an energy
greenhouse gas emissions. management system.Subsidiaries are required to actively pursue ISO 50001 Energy Management System certification. The current installed photovoltaic capacity is 20.03 MW
with an additional 20 MW under construction. In 2025
We will make full use of existing areas such as rooftops of mining and smelting facilities assess energy demand conduct feasibility tota l photovolta ic power generat ion reached
studies and eiciency evaluations and actively promote the use of green energy such as photovoltaic power generation thereby approximately 20 million kWh reducing carbon emissions
increasing the proportion of green energy in the Company’s energy consumption. by about 10000 tonnes.Energy-saving projects will be implemented through measures such as waste heat recovery technological upgrades and equipment
improvements in order to reduce energy consumption and enhance energy eiciency.Impacts Risks and Opportunities
Risk Opportunity Response Measures
Fluctuations in energy prices and tight Optimize the energy structure reduce Establish an energy monitoring system CHENGTUN
supply may increase production costs energy costs and enhance cost control implement energy-saving retrofits and
and aect the stability of production and capabilities. reasonably plan energy procurement MINING
operations. and reserves.Increasingly stringent energy conservation Meet policy requirements in advance Track energy consumption and carbon Energy Type
and carbon reduction policies including obtain energy-saving subsidies and policies set energy consumption targets Unit 2022 2023 2024 2025
stricter energy consumption control and enhance compliance competitiveness. and implement controls on both total
c a r b o n e m i s s i o n m a n a g e m e n t energy consumption and energy
requirements may pose compliance risks. intensity. Gasoline litres 67038 115529 176969 229972
Ageing energy-consuming equipment Promote the application of energy- Conduct energy efficiency diagnostics Diesel litres 36948875 48937821 96297048 143821596
and low energy efficiency may lead to saving technologies improve energy upgrade to high-efficiency equipment
energy waste and reduced operational utilization efficiency and achieve cost and promote waste heat and pressure
efficiency. reduction and efficiency improvement. recovery as well as intelligent energy Natural Gas cubic metres 81664 480495 7557680 3449282
management systems.Liquefied Petroleum kilograms
Insufficient use of renewable energy and Develop clean energy sources such as Gradually increase the proportion of Gas (LPG) 10343 9080 9669 9032
high dependence on carbon-intensive green electricity and photovoltaic power r e n e w a b l e e n e r g y u s e d e v e l o p
energy may create pressure for low- and enhance green and low-carbon distributed energy systems and procure
kilograms
carbon transition. development. green electricity. Standard Coal 180183142 190270423 180487465 162141731
Anthracite kilograms 29744642 32817820 21588902 40010305
Incomplete energy management systems Establish a comprehensive energy Implement the ISO 50001 energy
and inaccurate data statistics may affect management system to improve ESG management system and improve
ESG ratings and corporate brand image. performance and market recognition. energy consumption statistics analysis Semi-coke kilograms 28601434 9336279 38020689 44834539
and assessment mechanisms.Bituminous Coal kilograms 341719454 351536338 355109871 374410471
Thermal Coal kilograms 978052038 1080760578 1300460179 1304388961
Pulverised Coal
kilograms - 34400 89730 7791550
Lump Coal
kilograms - - 4771760 27999640
Purchased Electricity
kWh 1463308902 1733760022 1911860088 1775537374
Purchased Heat GJ 139193 182615 72922 40489
Self-generated Power
from Clean Power Plants kWh 1981000 16804148 61216410 96864633
(Waste Heat Power Generation)
Self-generated
kWh - 4456 1300406 18524692
Photovoltaic Power
Emission Reduction
from Waste Heat tonnes Co
/ Photovoltaic Power 2 / / / 69000
Generation
Note: The scope of data statistics covers operational production enterprises under the Company’s management control including mines and smelters.
0593 60Chapter Six
Energy Conservation and Emissions Reduction Technology
Harnessing Solar Power – Chengtun Energy Distributed
Chengtun Zinc & Germanium Waste Heat Boiler Project
Photovoltaic Project Successfully Connected to the Grid
On the morning of 18 January 2025 the grid-connection ceremony for the distributed photovoltaic project of
Chengtun Zinc & Germanium invested more than RMB 9 million to
Chengtun Energy Metal Chemical (Guizhou) Co. Ltd. was successfully held at the northern slope area of Phase I construct two waste heat boilers making full use of waste heat to
of the project site. The project generated its first unit of green electricity marking a critical step toward the full generate steam. This initiative reduces reliance on coal-fired boilers
and lowers coal consumption thereby achieving energy conservation
achievement of its power generation objectives. During the construction process the project successfully and reduced resource consumption. In 2025 the waste heat boilers
achieved its management goals of short construction duration high quality and stable safety performance. generated a total of 640041.62 tonnes of steam.In 2025 waste heat power generation reached 15.0723 million kWh
equivalent to a reduction of more than 8500 tonnes of CO emissions.This initiative has comprehensively promoted the development of a
multi-energy complementary and low-carbon energy structure within
the Company.Technological Upgrades
Kalongwe – Load Optimization to Reduce Steam Venting and Improve
Turbine Generator Eiciency
Through upgrades to the power supply and distribution system at the load end highly fluctuating loads were replaced with stable
loads stabilizing power fluctuations and reducing the required safety margin for steam.Following optimization adjustments to improve downstream load stability the turbine’s output power increased slightly and the
output power curve showed significant improvement. Comparison before and after the technological upgrade:
Load curve before optimization (fluctuating load average 1069.6 kW) Load curve after optimization (stable load average 1247.9 kW)
The project fully utilizes the rooftops of production workshops and the slopes within the
plant area to install solar photovoltaic modules and construct a grid-connected
photovoltaic power generation system with an installed capacity of 9.5 MW. The project
adopts a self-consumption with surplus electricity fed into the grid model using high-
eiciency photovoltaic modules to convert solar energy into clean electricity.Since construction commenced on 8 November 2024 all rooftop photovoltaic modules
were installed within two months. Once the plant undergoes a scheduled power outage for
maintenance the project will be able to achieve full-capacity grid connection. It is expected
to generate approximately 8 million kWh of green electricity annually eectively reducing With the load side stabilized the sulphuric acid system operates more steadily steam venting has been reduced and
the Company’s electricity costs while significantly lowering carbon emissions.power generation has increased year-on-year improving the efficiency of the turbine unit. As shown in the
comparison table the average power generation per tonne of sulphur increased by 25.7 kWh/t representing a 15.56%
improvement in turbine unit efficiency. Based on the annual planned sulphur input of 49000 tonnes the total
additional power generation for the year is estimated at 1259300 kWh.Equipment Upgrade
At the KMSA new equipment has been adopted to reduce electricity
consumption. The traditional anode plates consumed approximately
1850 kWh per tonne of copper whereas the new anode plates can
increase daily copper output by 0.8% under the same electricity
consumption reducing electricity consumption per tonne of copper by
15 kWh/t. This results in an annual electricity saving of approximately
750000 kWh.
0631 62Chapter Six
Water Resource Management Strategy
The operations of mining mineral processing and smelting rely on the stable supply of water resources. Clean and safe water resources are We strictly comply with water management laws and regulations in the regions where our projects operate while also aligning with
essential not only for Chengtun Mining’s operations around the world but also for the livelihoods of communities surrounding its operations. All international initiative standards. Water resource management is incorporated into the Company’s business planning and communication
subsidiaries of Chengtun Mining strictly comply with national laws and regulations on water use adhere to local water management policies and
obtain the necessary legal permits for water withdrawal and use. mechanisms are established with aected stakeholders. We are commied to continuously increasing water reuse and reducing the
consumption of freshwater resources.Prior to water extraction and utilization the Company conducts water use analysis and assessments evaluating factors such as the current status
of water resource development and utilization within the relevant watershed or region the rationality of water use the potential impact of water
extraction on water resources and other water users and the eectiveness of water resource protection measures. The Company updates its To identify and mitigate water management risks we implement measures from both internal and external perspectives. Internally all
water risk assessment annually to monitor changes in water risks in the regions or water bodies where it operates. Based on these assessments subsidiaries are required to conduct water use analysis as part of Environmental Impact Assessment Reports for new renovated or
eective measures are implemented to reduce risks and ensure that water resources can support the long-term operations of the Company and
expanded projects in order to evaluate potential impacts on the environment and surrounding communities.the shared development of stakeholders.At the same time through technological innovation and process optimization we aim to improve water reuse rates while reducing both
Governance external water withdrawals and wastewater discharges.The current water resource management model of Chengtun Mining is as follows:
Externally we collaborate with stakeholders to jointly manage and share water resources taking into account ecosystem conditions to
minimize environmental impacts. Our water resource management system is overseen by the ESG Management Commiee ensuring
regulatory compliance while continuously enhancing the eectiveness of water protection measures.Decision-Making Level Board of Directors
To ensure the eectiveness of improvement measures groundwater monitoring wells and surface water monitoring points are established
Responsible for formulating the overall water use policies and strategic direction and making decisions on major quarterly in and around mining areas. All discharge outlets are equipped with online monitoring systems connected to environmental
water-related maers. authorities enabling real-time monitoring of water quality. Data are regularly collected and analyzed to track progress in sustainable
development and pollutant reduction.Management Level Energy Managementby the Operations Department
Impacts Risks and Opportunities
The Operations Department of Chengtun Mining coordinates the implementation of water management
activities. Dedicated energy (water) management personnel are appointed within the department to supervise
and guide water management work carried out by subsidiaries.Risk Opportunity Response Measures
Regional water resource shortages and Enhance water resource security and Optimize water use planning implement
restrictions on water usage quotas may strengthen operational resilience. p l a n n e d w a t e r u s e a n d q u o t a
Execution Level Subsidiaries. aect the continuity and stability of management systems and strengthen
production operations. overall water resource planning.The highest management representative of each subsidiary serves as the primary person responsible establishing
and improving the energy (water) management structure and coordinating water conservation initiatives across
subsidiaries. Increasingly stringent policies on Improve water use compliance and Strictly implement water abstraction
environmental protection water reduce the risk of regulatory penalties. and discharge permit systems and
We implement water resource monitoring programmed reservoir anti-seepage treatments rainwater abstraction and wastewater discharge conduct regular compliance self-
management and other physical measures or procedures to protect surface water and groundwater resources. may create compliance risks such as inspections of water usage.We strengthen the protection of surface water and groundwater by conducting quarterly monitoring of rivers near exceeding water use quotas or emission
mining areas as well as key locations within the mining sites (such as upstream and downstream areas of tailings standards.storage facilities) and other designated points through the installation of groundwater monitoring wells in order to
track water quality changes and respond promptly with appropriate measures. Low water use efficiency and high Achieve water conservation and cost Promote water-saving technologies and
process water consumption may reduction while improving economic equipment conduct water balance
For water use within mining areas we utilize water metering systems to continuously monitor inflow consumption increase water-related costs. benefits. testing and implement reclaimed water
and discharge volumes enabling timely management of water resource–related risks. reuse and water recycling.Chengtun Mining strictly complies with relevant laws and regulations of the countries and regions where its projects
are located including the Water Law of the People’s Republic of China the Law of the People’s Republic of China on
the Prevention and Control of Water Pollution and the Environmental Protection Law of the People’s Republic of N o n - c o m p l i a n t d i s c h a r g e o f Establish a green water management I m p r o v e w a s t e w a t e r t r e a t m e n t
China as well as applicable local policies. The Company conducts its operations in accordance with the principles of wastewater may cause water pollution image and enhance ESG performance. facilities strengthen online monitoring
water conservation and water pollution prevention and control. and lead to environmental and and ensure stable compliance with
Each subsidiary implements water management practices suited to local conditions. The Company’s water resource reputational risks. discharge standards.management strategies include:
Conducting water use rationality analysis and assessment.Prior to project construction renovation or expansion subsidiaries conduct Environmental Impact Assessments
(EIAs) and prepare an Environmental Impact Assessment Report for submission to local environmental authorities
for approval. This report includes analysis and evaluation of the rationality of project water use. We ensure that the
local water resource conditions can meet the needs of daily production and operations and that operational water
use does not adversely aect water access for other community entities or residents.Integrating water resource management into environmental protection policies and fully implementing
responsibilities across all organizational levels and departments.The Group has established the Water Resources Management Measures and subsidiaries have incorporated water
resource management into their environmental protection policies treating water pollution prevention as an
essential environmental responsibility. A comprehensive accountability system has been implemented to clearly Indicators and Targets
define the responsibilities of each level and department in relation to water resource management strategies and
associated performance.Environmental
Implementation of planned water use and quota management systems Unit 2022 2023 2024 2025
Indicator
Subsidiaries follow the requirements of the Measures for Planned Water Use Management issued by the Ministry of
Water Resources of China implementing a planned water use and quota management system. Under the Freshwater
supervision and administration of local water authorities subsidiaries formulate water use plans that specify the Consumption tonnes/year 3404137 6054866 8037995 8014820
annual planned water consumption monthly water consumption targets types of water sources and categories of
water use purposes.Water Reuse Volume tonnes/year 798825.73 1354636.54 1594461.13 6583753.44
Promotion of water-saving measures and technologies
Subsidiaries adhere to the principle of water conservation implementing water-saving measures and promoting
new water-saving technologies and processes. These initiatives aim to reduce water consumption per unit of
product increase the reuse of wastewater and improve the rate of water recycling.
603 64Chapter Six
KMSA – Multi-Pronged Water Conservation Measures
Recycling of Mine Inflow Water: CHENGTUN
The Company operates an open-pit mine where abundant groundwater flows into the mining and stripping areas and would normally
require discharge. As part of a technological upgrade the original design—under which all plant water consumption relied on
groundwater—was modified. Mine inflow water is now pumped in two stages to three sedimentation ponds where it undergoes three-stage
sedimentation with the addition of a small amount of flocculant. The treated water is then supplied for production use providing
approximately 7000 cubic meters of water per day thereby reducing groundwater consumption. MINING
Recycling of Acidic Water from Tailings Storage Facilities:
Under the original design neutral water was used for both tailings washing and slurry preparation. Following technological upgrades acidic
water from the tailings storage facility is treated through processes such as extraction and neutralization and then reused for tailings
washing and slurry preparation. Approximately 5000 cubic meters of water are recycled daily reducing the consumption of neutral water
while also extending the service life of the tailings storage facility.Recycling Cooling Water in the Sulphuric Acid Workshop:
Under the original design clean water was used as make-up water for the circulating cooling water system. During operation however the
water hardness proved too high. To avoid aecting production 1200 cubic meters of circulating water had to be discharged daily. Following
a technological upgrade a water softening system was installed. After the upgrade the daily discharge of circulating water was reduced to
360 cubic meters resulting in water savings of 840 cubic meters per day.
6035 66Chapter Seven
CHENGTUN Climate Change Response
MINING
CHAPTER SEVEN We enhance our climate management capabilities through a scientific governance framework transparent
accountability mechanisms and an eicient coordination system. Our climate governance system has now
been fully established and is about to enter the operational stage. While continuing to drive business growth
we are systematically strengthening the climate governance structure clarifying roles and responsibilities
and improving oversight mechanisms ensuring that climate-related risks are eectively identified and
managed while climate-related opportunities are captured in a timely manner. Through Board-level
oversight management-level implementation and cross-departmental collaboration we are gradually
building the governance foundation required to support our 2050 net-zero vision.VII. Looking Ahead
Creating Sustainable Value Together
Governance
To actively address the physical and transition risks associated with climate change and to Standardize the
management and disclosure of climate-related risks opportunities and impacts we formally established
and issued the Climate Governance Management Policy in 2025. This marks the formation of a structured
and institutionalized climate governance framework.The policy was developed to implement the requirements of relevant laws and regulations including the
Corporate Sustainability Disclosure Standard No. 1 – Climate (Trial) and the Administrative Measures for
Information Disclosure of Listed Companies. Its objective is to establish a scientific and eective climate
governance system ensure the truthfulness accuracy completeness and timeliness of information
disclosure and enhance the Company’s climate resilience and sustainable development capabilities.At the same time the policy fully considers the distinct climate risk characteristics faced by the Company’s
mineral resource development and smelting operations across dierent regions aiming to integrate climate
considerations comprehensively into corporate governance strategic planning operational management
and decision-making processes.The Climate Governance Management Policy applies to the Company and all wholly owned and controlling
subsidiaries included within the consolidated financial statements covering key areas such as mineral
extraction smelting operations supply chain management and investment activities.The policy clearly defines the roles and responsibilities of the Board of Directors Board commiees
management and executive departments in climate governance establishing a three-tier climate
governance structure comprising the Board level management level and execution level thereby forming a
closed-loop management system that integrates decision-making implementation and oversight.As a newly established governance policy now entering the implementation stage we are continuously
advancing the practical deployment of related mechanisms including climate risk identification and
07 assessment information collection and reporting internal supervision and capacity building. The Company will also continue to optimize and improve the climate governance framework in accordance with evolving regulatory requirements and operational needs.67 68Chapter Seven
Overall Governance Framework for Climate Governance Strategy
We regard climate change as a significant factor aecting our long-term strategy operational stability and financial performance. Through
institutional arrangements climate-related risks and opportunities have been systematically integrated into our strategic planning investment
decision-making production operations financial management and supply chain management ensuring that climate considerations are fully
Board Level identified assessed and incorporated into key decision-making processes.Board of Directors
Incorporating climate factors into strategic planning
POINT 01 and long-term development decisions
When formulating medium- to long-term development strategies and business plans the Board of Directors leads management in
conducting climate scenario analysis to systematically assess the physical risks transition risks and potential opportunities under
Management Level (Executive Commiee) dierent climate scenarios.At a minimum the analysis covers the carbon peak baseline scenario issued by relevant national authorities and where feasible also
references more stringent climate scenarios to evaluate the impacts of extreme weather events energy structure adjustments carbon
Environmental Social and Corporate Governance(ESG)Commiee pricing policies and other factors on mining facilities production capacity planning and product demand.Based on the results of our scenario analysis we have incorporated climate transition objectives emission reduction pathways
technology development plans and resource allocation priorities into our overall development strategy. This ensures that our strategic
direction supports business growth while maintaining long-term resilience to climate change and evolving policy environments.Operational Level Incorporating climate impact assessment mechanisms
POINT 02 into investment decisions
Climate Risk Management Task Force Carbon Neutrality Task Force Mining Supply Chain Task Force We have established a mechanism to assess climate-related impacts in major investment decision-making. For significant projects such
as mining exploration and development capacity expansion and technological upgrades climate-related risk and impact assessments
Labor and Human Rights Task Force Occupational Health&Safety Force Biodiversity Task Force are required at the feasibility study stage.ESG Oice Subsidiaries& Corporate Functional Departments These assessments focus on evaluating the nature and magnitude of climate risks associated with the project its carbon emission
intensity and decarbonization potential as well as the potential implications of climate factors for projected returns and overall financial
viability.The results of climate impact assessments serve as an important input to investment decision-making. Projects that present excessive
climate risks or fail to meet low-carbon development requirements are advanced with caution or excluded from implementation thereby
Within the framework of the “Climate Governance Management System” we have established a multi-tier climate governance structure mitigating potential adverse impacts on long-term value at the source.covering strategic decision-making overall coordination and operational implementation forming a vertically integrated top-down
governance system.Integrating climate factors
POINT 03
The Board of Directors as the Company’s highest governing body bears ultimate responsibility for the oversight and decision-making of into production and operational management
climate-related governance. It approves climate-related strategies targets and major policies and supervises the overall eectiveness of In day-to-day operational management we integrate climate considerations into production planning and process decisions.climate risk and opportunity management. Management and production teams develop advance adjustment plans and contingency measures based on extreme weather alerts
thereby reducing the potential impacts of severe weather events on production safety and operational stability.Under the Board’s authorization and guidance the Environmental Social and Governance (ESG) Commiee serves as a dedicated advisory
and oversight body. It coordinates climate governance initiatives with a particular focus on reviewing climate risk identification and At the same time we continue to advance low-carbon production technologies and energy eiciency initiatives optimize our energy mix
and reduce carbon emissions per unit of output. We regularly assess the climate resilience of our production facilities and promptly
assessment results the implementation progress of response measures and climate-related disclosures and provides professional
implement reinforcement and technical upgrades for assets exposed to elevated risks thereby strengthening our overall operational
recommendations and improvement proposals to the Board.adaptability to climate change.At the operational level in line with climate governance objectives the company has established a collaborative mechanism involving multiple
specialized working groups and functional departments. These include the Climate Risk Management Group Carbon Neutrality Task Force
POINT
Mining Supply Chain Group Labour and Human Rights Group Occupational Health and Safety Group and Biodiversity Group covering key 04 Reflecting climate-related impacts in financial management
areas such as production operations supply chain management workforce management and environmental protection. We incorporate climate-related factors into our financial management framework across budget planning cost accounting and capital
allocation processes. The finance department separately identifies and reports climate-related capital expenditures including
Meanwhile the ESG Oice serves as the central coordination and information hub for climate governance. It is responsible for organizing investments in low-carbon technology research and development and energy eiciency and emission reduction facilities to ensure
climate risk assessments managing emissions data consolidating information and overseeing external disclosures as well as coordinating adequate funding for climate transition initiatives.with specialized teams subsidiaries and group functional departments to ensure the eective implementation of climate governance
At the same time we are progressively establishing a framework to assess climate-related financial impacts. This includes identifying and
requirements. analyzing items such as gains and losses from carbon trading investments in green research and development and impairments of
climate-related assets.By conducting carbon cost sensitivity analyses we evaluate the potential eects of carbon price fluctuations on operating costs and
profitability thereby providing decision support for pricing strategies and cost management.POINT 05 Extending climate requirements to supply chain management
In supply chain management we incorporate suppliers’ climate governance capabilities as a key evaluation criterion in supplier selection
contract execution and supply chain optimization processes. We prioritize partners with lower carbon footprints and stronger climate
risk management capabilities to strengthen the resilience and sustainability of our supply chain.We require key suppliers to disclose emissions data by clearly defining their climate-related responsibilities in cooperation agreements.We also collaborate with suppliers on supply chain carbon footprint assessments and climate risk evaluations. Where suppliers fail to
meet our climate governance requirements we adjust cooperation arrangements as appropriate thereby progressively strengthening
the overall climate resilience of our supply chain.POINT 06 Decision-making records feedback and information disclosure
To ensure the eective integration of climate considerations into decision-making we document and archive climate-related analyses
supporting rationales and decision outcomes across all levels. Relevant information is incorporated into our climate disclosures in
accordance with regulatory requirements enabling investors and other stakeholders to understand the impacts of climate factors on our
decisions and operations as well as the eectiveness of their implementation.This approach establishes a comprehensive management mechanism spanning decision-making execution and disclosure.
6039 70Chapter Seven
Operational-level emission reduction pathways
GHG emission tCO2e
5000000
4500000
4000000
3500000
3000000
2500000
2000000
1500000
1000000
500000
0时间
202520302035204020452050
GHG intensity of cobalt processing GHG intensity of nickel processing
GHG emission tCO2e/t GHG emission tCO2e/t
In line with national carbon peaking and carbon neutrality objectives 8.00 3.00
7.00
the company has established the following phased climate targets: 2.50
6.00
5.002.00
4.001.50
3.00
1.00
2.00
1.000.50
0.00 YEAR 0.00 YEAR
202520302035202520302035
202 To achieve peak greenhouse gas emissions across 9 operations and the value chain by 2029 while continuing YEAR to reduce emissions intensity through energy mix
optimization and energy eiciency improvements.
2050 To achieve net-zero greenhouse gas emissions across YEAR operations and the value chain by 2050.
2030 To reduce market-based Scope 2 emissions by 20% by YEAR 2030 compared with the 2024 baseline.
2030 To reduce emissions intensity in the cobalt downstream YEAR processing segment by 45% by 2030.
CHENGTUN 2030 To reduce emissions intensity in the nickel downstream MINING YEAR processing segment by 30% by 2030.
0731 72Chapter Seven
Impacts Risks and Opportunities
Due to the impacts of climate change some of our operational sites are already experiencing climate-related pressures such as mudslides
caused by heavy rainfall frequent and intense typhoons and water scarcity resulting from drought. We must therefore assess our resilience Physical Risk Analysis Results
and prepare adaptive responses to ensure the safety and continuity of our operations as well as the reliability of our value chain.Our climate risk assessment methodology incorporates scenario analysis based on outputs from Global Climate Models (GCMs) as well as Table: Overview of Measures to Address Physical Climate Risks
evaluations of the exposure vulnerability and adaptive capacity of our operational sites and critical facilities. We adopt a combined top-
down and boom-up approach.Top-down approach: This component primarily draws on the global climate models and Shared Socioeconomic Pathways (SSPs) outlined in Climate Magnitude of
Climate scenario & trend Timing of impact the IPCC Sixth Assessment Report enabling projections of long-term regional macro-climate trends for key climate variables such as hazard category impact
temperature and precipitation under dierent climate scenarios.Boom-up approach: This component evaluates factors including the geographic location of each site historical meteorological records
existing response capabilities infrastructure sensitivity and external exposure (such as landslide-prone areas or high-risk typhoon zones). Model projections indicate that between 2015 and 2050 the number of high-temperature days (>35 C) at our assets
Through this analysis we identify the physical risks and resilience gaps that may arise at the operational level. varies significantly across emission scenarios. Under the low-emission scenario (SSP1-2.6) most sites experience an
average of 8–18 high-temperature days per year with Zhonghe Nickel being the most exposed averaging up to 26 days
By combining the site-specific physical risks identified through boom-up analysis with the projected changes in risk intensity under dierent
annually. Under the medium-emission scenario (SSP2-4.5) high-temperature days increase to 12–22 days for most sites
climate scenarios derived from the top-down analysis we assess the future exposure of each operational site to climate-related physical Short medium High
with Zhonghe Nickel reaching 37 days. The high-emission scenario (SSP5-8.5) presents the most severe conditions with
risks. Extreme Heat and long term
Zhonghe Nickel averaging 48 high-temperature days per year while other sites generally remain under 25 days. This
trend indicates that without eective global greenhouse gas mitigation certain smelters and mines will face prolonged
and frequent exposure to extreme heat posing substantial operational and safety challenges.Model projections indicate that extreme low-temperature events at our operational sites are generally limited with an
average of only 3–5 days per year below 0 C between 2015 and 2050. Chengtun Zinc & Germanium experiences slightly
Potential Physical Risks and Impacts higher counts under SSP2-4.5 and SSP5-8.5 (around 5 days) while Chengtun Zinc & Germanium and Zhonghe Nickel
Short-term Low
Extreme Cold
eavy rainfall; however in certain years it may still lead to localized facility icing transport disruptions or equipment
Table 2: Overview of Potential Impacts of Physical Climate Risks on Operations and Financial Performance damage posing challenges to smelting and logistics operations.Types of
physical climate risks Identification method
Operational risks Financial risks
Model results indicate that compared with the baseline period the maximum single-day precipitation (R1Xday) at our
Increased employee health Higher energy consumption operational sites is generally projected to increase between 2025 and 2050. Under the high-emission scenario SSP5-8.5
and safety risks
Using ERA5 data from 1995–2014 the 90th and maintenance costs KMSA CCR and CCM are expected to experience the largest increases in R1Xday reaching 14–15% significantly raising
percentile (P90) of daily maximum temperatures is Revenue losses resulting from production the risk of flooding and tailings dam instability in the mining areas. Chengtun Energy Chengtun Zinc & Germanium and
Reduced production eiciency
calculated as the threshold. After bias correction interruptions and eiciency declines Zhonghe Nickel are projected to see increases of 6–9% under SSP5-8.5 while Kelixin (Zhuhai) and Kelixin (Yangjiang) Short medium
with CMIP6 scenario data the number of days show lile change under low-emission scenarios but rise to 6–7% under SSP5-8.5. Youshan Nickel exhibits the smallest
Extreme Heat Increased load on equipment and Additional capital investment required to Extreme
Extremely high
and long term
exceeding this threshold is projected for future power systems infrastructure upgrade cooling and safety infrastructure precipitation changes with a slight decrease under SSP1-2.6. The maximum five-day consecutive precipitation (RX5day) for KMSA
periods. CCR and CCM could increase by up to 9.2% under SSP5-8.5 while Chengtun Zinc & Germanium shows increases of
Increased demand for cooling water 3.8–7.1% across scenarios. Overall KMSA CCR CCM and Chengtun Zinc & Germanium may face more frequent
prolonged heavy rainfall events in the medium term posing significant pressure on tailings dams slope stability and
Using ERA5 data from 1995–2014 the 10th Increased vulnerability of Higher energy consumption drainage systems.percentile (P10) of daily minimum temperatures is equipment and infrastructure and maintenance costs
calculated as the threshold. After bias correction Revenue losses due to production
Road and transportation disruptions
with CMIP6 scenario data the number of days interruptions and reduced eiciencyExtreme Cold
below this threshold is projected for future Model projections indicate that between 2025 and 2050 the number of consecutive dry days (CDD) at our facilities is Additional capital investment required to
periods. Increased load on the power system generally increasing with the most pronounced rise under the high-emission scenario SSP5-8.5. Under SSP5-8.5 upgrade facilities
Chengtun Energy shows a CDD increase of 12.9% reflecting a clear trend of worsening drought; Zhonghe Nickel rises by
Water accumulation at Production losses and 12.3% and Kelixin (Yangjiang) by 11.3% all exceeding 10% indicating significant mid-term extreme drought risk. Youshan Short medium
Using ERA5 precipitation data from 1995–2014 mining and smelting sites reduced sales revenue HighDrought and Nickel and our subsidiaries in the Congo (KMSA CCR and CCM) also show increases of 10% and 8.5% respectively under and long term
the maximum single-day rainfall (R1X) and Overflow or instability of pits water stress SSP5-8.5. Even under the lower-emission scenario SSP1-2.6 most sites still experience a 2–7% increase in CDD. Overall
maximum five-day cumulative rainfall (R5X) are Increased operational expenditures and tailings dams drought and water stress are projected to intensify over the medium to long term posing challenges for smelter cooling
calculated as baseline thresholds. After bias Additional capital investment required to water mining operations and shared community water resource management.Extreme precipitation correction with CMIP6 scenario data changes in Overloaded drainage systems reinforce tailings dams
the intensity and frequency of extreme rainfall and drainage infrastructure
events are assessed for future periods. Roads and
external transportation routes
Using ERA5 data from 1995–2014 the distribution Additional investment required to Kelixin (Zhuhai) and Kelixin (Yangjiang) are both located within the high-frequency typhoon impact zone along the South
of consecutive dry days (CDD typically defined as Insuicient process water build water treatment and China coast. In 2025 Typhoon “Huajiasha” made landfall in Yangjiang causing partial equipment damage and
days with precipitation <1 mm) is calculated as the conservation facilities production stoppages at Kelixin (Yangjiang) while Kelixin (Zhuhai) also experienced facility damage. This event highlights Short medium
baseline threshold. After bias correction with
Drought and High
CMIP6 scenario data changes in the frequency Severe typhoons the existing vulnerability of the sites to severe typhoons. Under future SSP2-4.5 and SSP5-8.5 scenarios similar intense and long term
water stress
and duration of drought events are assessed for Excessive groundwater extraction Reduced production and revenue typhoon events are expected to pose an increased risk of widespread facility damage port closures and production
future periods. interruptions.Damage to smelter infrastructure Significant repair and reconstruction costs
Typhoon risk is identified based on whether a Personnel safety and
facility is located within the Western Pacific supply chain disruptions Production losses and decreased revenue
typhoon impact zone. For example the Yangjiang
Additional capital investment to
Severe typhoons and Zhuhai plants are classified as potentially Power outages reinforce storage and
exposed assets due to their location in a high- critical production facilities As Chengtun Zinc & Germanium is the only facility located in a high landslide risk area this risk analysis focuses solely on
frequency typhoon area. it. Between 2025 and 2050 the maximum five-day consecutive rainfall (RX5) at the site shows an overall increasing Short medium
Government-mandated shutdowns Reduced production and revenue Extremely hightrend. Under the low-emission scenario SSP1-2.6 RX5 is projected to increase by 3.8% while under SSP5-8.5 it could rise and long term
Landslides
by 7.1% indicating a significant intensification of prolonged rainfall and a corresponding increase in landslide risk.Using ERA5 precipitation data from 1995–2014 Damage to on-site roads Facility repair and remediation costs
the maximum five-day cumulative rainfall (R5X) is
calculated as the baseline threshold. After bias Damage to production facilities Production losses impacting revenue
Landslides correction with CMIP6 scenario data changes in Additional capital required for
the intensity and frequency of extreme rainfall Serious threats to employee safety slope stability monitoring and
events are assessed for future periods. protective engineering
Based on projections from NASA AR6 our facilities in South China—Kelixin (Zhuhai) and Kelixin (Yangjiang) as well as
Flooding and corrosion risks to coastal Long-term capital expenditures for
Identification method for sea level rise: Use NASA’s smelters ports and transportation Youshan Nickel—are expected to face progressively increasing risks from sea level rise in the future. Under a low-facility upgrades
IPCC AR6 sea level projection tool to obtain infrastructure and coastline restoration emission scenario (SSP1-2.6) sea levels are projected to rise approximately 0.16–0.21 meters by 2050 and 0.36–0.47
projected sea level increases under dierent SSP meters by 2100. Under a medium-emission scenario (SSP2-4.5) the projected increase is around 0.17–0.22 meters by
Disruptions to raw material and long termProduction delays inventory buildup Low
scenarios and overlay these projections with the Sea-Level Rise 2050 reaching 0.50–0.61 meters by 2100. Under a high-emission scenario (SSP5-8.5) sea levels could rise 0.20–0.25 product import/export routes and reduced revenue
Sea level rise geographic location and elevation of coastal assets meters by 2050 and 0.72–0.82 meters by 2100. Overall these projections indicate that while short- to medium-term High tide combined with storm surge
to assess potential inundation and compound exacerbates flooding risks at the facility. exposure for these assets remains limited they are likely to face heightened risks over the long term.storm surge risks.Critical power and
communication infrastructure at risk
703 74Chapter Seven
Zhonghe Nickel
Chengtun Zinc & Germanium Chengtun Energy Metals
Kelixin (Zhuhai)
Kelixin (Yangjiang)
CCR/CCM Youshan Nickel
KMSA
0735 76Chapter Seven
Indicators and Targets
Medium 2036–2045
term technology deepening and system optimization
Indicator Unit 2024 [1] 2025 [2]
Low-carbon smelting upgrades: introduce lower-carbon reducing agents into core smelting processes as technologies mature reducing
Group Scope 1 Emissions tCO2e equivalent 3478261 3549954 overall carbon intensity.Industrialization of CO2mineralization and storage: expand the application of carbonate mineralization and sequestration technologies
based on successful pilots enabling partial permanent storage and utilization of smelting-related flue gas emissions.Group Scope 2 Emissions (location-based) tCO2e equivalent 347205 365235 Full deployment of material and process substitution: complete the replacement of carbonate-based auxiliary materials across
operations to further reduce process-related CO2 emissions.Group Scope 2 Emissions (market-based) tCO2e equivalent 1009313 1049688
Long 2046–2050
Group Scope 3 Emissions tCO2e equivalent 4663439 5820457 term structural decarbonization and net-zero achievement
Transition to low-carbon fuel systems:
Total Group Emissions (location-based) tCO2e equivalent 8488905 9735646 toward clean electricity and low-carbon fuels.Integrated carbon capture utilization and storage system: establish a company-wide system integrating capture transport
mineralization and long-term storage of flue gas CO2.Total Group Emissions (market-based) tCO2e equivalent 9151013 10420099 Zero-carbon process innovation and circularity: adopt hydrogen-based reduction and other near-zero-carbon smelting technologies
while enhancing high-value utilization of slag and by-products to enable both energy and material circularity.GHG Emissions per Unit of Industrial Value Added (location-based) tCO2e equivalent / RMB 10000 11.37 11.67
GHG Emissions per Unit of Industrial Value Added (market-based) tCO2e equivalent / RMB 10000 12.25 12.49
GHG Emissions per Unit of Operating Revenue (location-based) tCO2e equivalent / RMB 10000 5.12 4.69 Phased roadmap for scope 2 emissions reduction
GHG Emissions per Unit of Operating Revenue (market-based) tCO2e equivalent / RMB 10000 6.01 5.51
Short 2025–2030
term energy eiciency coordination and initial clean substitution
Emissions Intensity of Cobalt Processing tCO 7.21 5.852e equivalent / tonne
Energy eiciency coordination: reduce electricity consumption per unit of output through equipment retrofits load optimization and
energy eiciency improvement initiatives.Emissions Intensity of Nickel Processing tCO2e equivalent / tonne 2.63 2.41
Pilot procurement of renewable energy certificates and green power: initiate renewable energy certificate procurement at selected
subsidiaries ensuring compliance with temporal matching requirements (including the 21-month rule) for credible accounting.[1] In 2024 the following subsidiaries completed carbon inventory and third-party verification:CCR CCM KMSA Chengtun Zinc & Germanium Kelixin (Zhuhai) Kelixin (Yangjiang) Youshan Nickel Chengtun Energy Metals and Zhonghe Nickel.[2] In 2025 the following subsidiaries completed carbon inventory and third-party verification for the 2024 reporting year:CCR CCM (included in CCR) KMSA Chengtun Zinc & Germanium Kelixin (Zhuhai) Kelixin (Yangjiang) Youshan Nickel Chengtun Energy Metals
Zhonghe Nickel Brothers Mining and Huajin Mining.Medium 2031–2040
term large-scale renewable electricity transition
Development of distributed renewable projects: install self-consumption photovoltaic systems at smelting and chemical facilities and
co-develop shared energy storage systems within industrial parks to increase the share of self-generated renewable electricity.Optimization of electricity contract structures: participate in spot and long-term electricity markets and enter into renewable power
purchase agreements (PPAs) to secure stable clean electricity supply.
2025–2035 Coal-to-electric transition: progressively retire coal-based captive power units and shift toward externally sourced low-carbon Short electricity reducing coal use while simultaneously lowering power-related carbon intensity.
term foundation building and initial low-carbon substitution
Stationary combustion upgrades: implement energy eiciency retrofits for coal-fired boiler systems prioritizing eiciency improvements and waste heat
recovery projects.
2040–2050
Flue gas mitigation pilots: launch carbon capture and mineralization pilot projects at major smelting facilities to convert part of the flue gas CO2 into stable Long
term
carbonate solids for long-term storage. full renewable electrification and zero-carbon power supply
Process-level neutralizer substitution trials: conduct pilot programs in downstream processing and chemical production to replace carbon-based
neutralizing agents (such as ammonium bicarbonate) with non-carbon alternatives (e.g. sodium hydroxide and calcium hydroxide). With the continued expansion of renewable energy deployment and declining costs the company aims to achieve 100% renewable
Enhancement of emissions monitoring and accounting systems: establish a comprehensive energy consumption and emissions database covering all electricity for purchased power. This will be supported not only by renewable electricity contracts but also by large-scale development
subsidiaries to provide an accurate baseline for future technical upgrades and decarbonization planning. of owned renewable energy assets increasing the proportion of self-generated and self-consumed clean electricity.
0773 78Chapter Seven
CHENGTUN Employee Management
MINING
Governance:
CHAPTER EIGHT Board Level
Board of Directors
Management Level
Environmental Social and Governance (ESG) Commiee
VIII. People-Centered Development
Operational Level
Building a Beer Society Together Subsidiaries and GroupESG Oice Functional Departments
Labor and Human Rights Group
(composed of personnel from relevant departments)
Structure of the Labor and Human Rights Group
Labour and Human Rights Working Group:
Responsible for formulating and supervising the implementation of policies and procedures that safeguard employees’ fundamental rights
and address anti-discrimination and anti-harassment.Indicator Unit 2025
Total Number of Employees persons 9372
08 Employee Age Distribution (Under 30 / 30–50 / Above 50) persons 2754/5472/1146Number of Employees from Ethnic Minority Groups persons 982Employee Education Level (Bachelor’s Degree and Above / 1790/4192/3390High School and Above / Junior High School and Below) personsProportion of Female Managers at Middle Level and 11.3%Above Among Management Employees % 3601Number of Foreign Employees personsChengtun Mining focuses on four key management strategies—employee rights protection compensation and benefits systems employee development planning and employee care—to systematically provide employees with multi-dimensional support for growth and development. By establishing an integrated career development platform covering talent recruitment training and career advancement the Company lays a solid talent foundation for its sustainable development.79 80Chapter Seven
POINT 01 Employee Rights Protection POINT 02 Compensation and Benefits System
1.We have established comprehensive recruitment policies to ensure that every candidate is treated fairly and without discrimination. We have established a comprehensive compensation system to provide eective protection for employees.
2.We have established comprehensive recruitment policies to ensure that every candidate is treated fairly and without discrimination. Based on relevant regulations we have established an employee welfare protection system to ensure that employees obtain decent work.
Employee Rights Protection
work together we maintain an open inclusive and diverse employment policy. For instance CCR and KMSA currently employ more than 1000 Compensation and Benefits System
sta members including Chinese employees and employees from the Democratic Republic of the Congo (DRC) including both permanent and To establish a positive incentive mechanism based on job roles and centered on performance the Company closely links employees’
temporary workers. remuneration to job responsibilities and work performance thereby institutionalizing and standardizing salary management and distribution.In accordance with relevant laws and regulations and to support the implementation of the Group’s global business strategy the Company
has unified overseas compensation and benefits policies to encourage domestic employees to participate in international business
Diversity development. Relevant management policies have been formulated including the Performance Management Policy and the Overseas
Workforce diversity is a principle we consistently uphold. Whether in domestic operations involving employees of dierent genders and age Compensation and Benefits Management Policy of Chengtun Mining Group
groups or in overseas facilities where Chinese and local employees work together we maintain an open inclusive and diverse employment
External Competitiveness: Provide competitive compensation and benefits to aract motivate and retain outstanding talent to achieve the
policy. For instance CCR and KMSA currently employ more than 1000 sta members including Chinese employees and employees from the
Company’s business objectives.Democratic Republic of the Congo (DRC) including both permanent and temporary workers.Internal Equity: Implement a position-based salary grading system linked to individual performance ensuring that employee remuneration
reflects their work performance and achievements.Non-Discrimination
We consistently uphold the principles of gender equality racial equality and freedom of religious belief protecting employee rights through an Salary Review: Employee remuneration is reviewed with reference to market salary trends for comparable positions the Company’s
open and inclusive approach. We have also signed collective agreements on the protection of female employees’ rights and interests. operational performance and employees’ individual work performance.Child Labour and Forced Labour Employee Salary Structure
Prohibition of Child Labour: In accordance with the laws of the countries where our projects operate we strictly prohibit the use of any form of Total monthly salary for employees = fixed salary + position salary/performance salary + various benefits and allowances – applicable
child labour. Contractors suppliers and other stakeholders are also required to prohibit the use of child labour in any form. deductions
Prohibition of Forced Labour: Employment is based on the principle of voluntariness. No individual may charge referral fees during recruitment
or collect deposits after hiring. Management personnel must not force employees to work. Employees’ rest periods are protected overtime
work is conducted within legal limits and overtime compensation is provided accordingly. Performance Management System
To support the strategic development of the mining group further improve human resource management eiciency beer motivate
employees and unlock their potential strengthen awareness of competition and responsibility and enhance overall organizational
Equality eectiveness the Company has established a Performance Management Policy to assess and incentivize employee performance.Equal Recruitment: The Company ensures equal treatment in recruitment and employment regardless of ethnicity race age gender marital
status or religious belief. This system includes: performance evaluation models performance indicator seing performance scoring and rating assessment
procedures management of evaluation results and application of assessment outcomes.Performance Ratings: A performance rating framework has been established defining score ranges base year-end bonus coeicients and
Anti-Discrimination the proportion of employees within each rating category.Equal Employment Opportunities: Decisions regarding compensation training and promotion are based on individual skills performance and
job requirements rather than factors such as race gender region or nationality social status or political ailiation. Performance Reviews and Improvement: After performance assessments are completed performance review meetings are conducted with
employees.Freedom of Religion: The Company neither compels nor discriminates against employees based on their religious beliefs or lack thereof and
respects lawful religious activities. Link between Performance and Compensation: Performance evaluation results serve as an important basis for decisions related to year-end
Prohibition of Sexual Harassment: All forms of sexual harassment are strictly prohibited including sexual coercion threats violence abuse bonuses salary adjustments and promotion or demotion of positions.and inappropriate language gestures or physical contact. Serious violations may result in formal disciplinary action and termination of
employment contracts.Benefits System
Employment of Persons with Disabilities: The Company provides employment opportunities for persons with disabilities.Chengtun Mining is a company that values humanistic care striving not only to generate profits but also to create broader value. To motivate
employees enhance job satisfaction and strengthen organizational cohesion the Company has established a range of employee welfare and
benefit mechanisms. At the same time to accelerate the implementation of the Group’s global business strategy the Company has unified
Rights and Benefits Protection overseas compensation and benefits policies to encourage domestic employees to participate in overseas business development and support
Labour Contracts: Labour contracts are signed with employees to clearly define job responsibilities salary arrangements and welfare the expansion of international operations.provisions thereby safeguarding employees’ legitimate rights and interests.To improve employee satisfaction and well-being and reduce employee turnover the Company and its subsidiaries provide a comprehensive
Salary and Welfare Protection: The Company pays employees’ wages in full and on time and provides benefits such as holiday allowances
range of benefits. For example the Employee Welfare Management Policy for Mining Enterprises applies to subsidiaries such as Yinxin Mining
and birthday benefits ensuring that employees’ compensation and welfare are fully protected.Aima Mining Huajin Mining Hengyuan Xinmao and Dali Sanxin. Meanwhile Chengtun Zinc & Germanium has established its own Employee
Working Hours and Rest: The Company provides employees with annual paid leave. Welfare Management Policy which consists of statutory benefits universal benefits and special benefits.Social Insurance and Welfare: In accordance with regulations the Company provides employees with China’s statutory “Five Social Insurancesand One Housing Fund” (pension medical unemployment work-related injury and maternity insurance as well as the housing provident
fund) along with benefits such as annual health examinations.Safe Working Environment: The Company provides a safe working environment conducts regular safety inspections and equips employees Underground work allowance shift leader allowance uphill work allowance dust exposure
Allowances and Subsidies allowance night shift allowance seniority allowance high-temperature allowance overseas engaged in risk-related operations with appropriate personal protective equipment (PPE) and safety gear.assignment allowance plateau allowance
Employee Communication Mechanisms
Internal Communication Channels: The Company has established employee communication groups to provide transparent and open
communication channels including participation from company leadership and administrative sta. Administrative personnel use these groups Daily Benefits Communication allowance meal subsidy accommodation subsidy
to communicate information updates policy announcements and work instructions to employees.One-on-One Communication: When employees have requests concerns or wish to report issues employee relations personnel conduct one-
on-one communication visiting employees at their residences or workplaces to understand the situation hold discussions and address their Dragon Boat Festival allowance Mid-Autumn Festival allowance International Women’s
concerns. For example: Holiday Allowances Day allowance birthday greetings; condolence money for employees hospitalized due to
and work-related injuries employees hospitalized due to serious illness and assistance for
KMSA: Established an employee grievance email: CSRKMSA@600711.com Environmental Performance employees in financial hardship
CCR: Established both an employee grievance email and a supply chain external communication email: csr.ccr2019@gmail.com
Chengtun Zinc & Germanium: Established a trade union organization which regularly convenes employee representative meetings.Suggestion boxes are also installed to collect employee feedback on a regular basis and provide responses. Health One annual health check-up arranged for employees in service
0831 82Chapter Seven
Strategy:
POINT 03 Employee Development Planning
Chengtun Mining strictly follows the requirements of international conventions such as the International Labour Organization (ILO) Declaration
We have established comprehensive recruitment policies and treat every applicant fairly and without discrimination.on Fundamental Principles and Rights at Work and the United Nations Global Compact while also complying with the laws and regulations of the
We emphasize gender equality and do not tolerate any form of gender discrimination.countries where its projects operate. The Company respects local cultural customs safeguards employees’ human rights and firmly prohibits all
forms of child labour and forced labour.In daily employment practices the Company promotes equality and anti-discrimination and practices democratic management through
measures such as establishing trade unions maintaining open communication channels between management and employees and
Employee Development System
implementing grievance and whistleblower protection mechanisms. These eorts aim to safeguard the legitimate rights and interests of every
To help the Company optimize its talent structure Standardized management processes improve management eiciency and stimulate
employees’ initiative and creativity we have established the Position Management Measures which clarify the nature categories and career employee and foster a fair diverse and inclusive working environment.development pathways of positions ensuring that talent development mechanisms are fair and equitable.The Company and its subsidiaries have also formulated the Training Management Policy to strengthen the corporate training system achieve
talent development objectives clarify responsibilities for training at all organizational levels Standardized training procedures and ensure that
training eectively supports business development.Training needs assessment → annual training plan development → implementation of training programmed
Training Process according to the plan → training eectiveness evaluation → archiving of training records.Training Levels Group-level training → company-level training → department-level training.Specialized training new employee orientation training talent development programmed skills enhancement
Training Content training and corporate culture training.Training Formats Internal training external training and self-directed learning. Impacts Risks and Opportunities Management:
Training Methods Offline training and online training.Risk Opportunity Response Measures
To further enhance the training system and standardized the online learning platform while building a learning-
oriented organization the Company has established Chengtun Cloud Classroom providing employees with
diversified learning opportunities. Employment compliance risks where Strictly comply with labour regulations
labour contracts social insurance Establish a compliant employment S t a n d a r d i z e l a b o u r c o n t r a c t s
working hours and remuneration do not s y s t e m e n h a n c i n g c o r p o r a t e compensation and benefits and social
comply with regulations potentially governance standards and credibility. insurance contributions and improve
leading to penalties and labour disputes. employment management systems.Promotion Mechanism Loss of key talent and insufficient talent Attract and retain outstanding talent Improve career development pathways
Recruitment and appointment follow the principle of open competition. The Group’s human resources management department organizes reserves may affect operational s t r e n g t h e n i n g o r g a n i z a t i o n a l incentive mechanisms and training
stability and long-term development s y s t e m s a n d s t r e n g t h e n t h e
open selection processes and successful candidates are appointed to the corresponding positions. competitiveness.capacity. development of talent pipelines.Position matching follows the Implementation Rules for Professional and Technical Personnel Qualification and Appointment. The relevant
human resources management department conducts annual qualification reviews for professional sta and organizes position evaluation and
appointment processes. For employees who do not currently meet the basic qualification requirements training and guidance are provided to Inadequate protection of employee Establish and improve the occupational Safeguard employee health and safety
occupational health and safety may health and safety management system help them achieve the required standards within a specified timeframe. enhancing employee satisfaction and
lead to work-related injuries and implement protective measures and sense of belonging.Position matching is primarily based on skill levels and job characteristics. The relevant human resources department within each company occupational diseases. conduct regular health examinations
and risk inspections.develops its own evaluation framework and conducts regular position assessment processes.Insufficient employee training and slow Establish a structured training system by Improve employee skills and strengthen
skills development may constrain level and category and provide skills the Company’s sustainable development
corporate efficiency and innovation enhancement safety training and capabilities.capacity. comprehensive capability development
programmed.POINT 04 Employee Engagement
In areas where conditions permit we actively build sports facilities to provide employees with enriching leisure time. I n s u f f i c i e n t c o r p o r a t e c u l t u r e Improve employee care mechanisms
development and employee care may Foster a positive corporate culture and We actively organize various cultural and sports activities to ensure the physical and mental well-being of employees. address employee needs organize
lead to weak cohesion and low strengthen team stability. cultural and sports activities and ensure
employee engagement. open communication channels.Uphold equal employment and equal
Organising employee activities helps strengthen employees’ sense of belonging and cohesion promote communication and interaction among Inadequate implementation of equal
employees stimulate initiative and creativity and enhance overall job satisfaction. These initiatives contribute positively to the Company’s employment practices regarding Build a diverse and inclusive workplace
p a y f o r e q u a l w o r k p r o h i b i t
employment discrimination and
competitiveness and sustainable development. gender age and identity may lead to and enhance corporate social image. safeguard employees’ legitimate rights
discrimination and reputational risks.CCR and KMSA: Indoor sports facilities are provided including basketball table tennis badminton billiards and various fitness equipment and interests.oering employees opportunities for leisure and recreation.Establish and improve employee
Ineffective employee communication Build harmonious labour relations and grievance democratic management
and grievance channels may lead to enhance corporate reputation. and information feedback mechanisms
conflicts and public opinion risks. to address issues promptly.Include outsourced and dispatched
Inadequate management of outsourced S t a n d a r d i z e f l e x i b l e w o r k f o r c e personnel with in un if ied safety
and dispatched personnel may create management and enhance integrated management training and employee
compliance and management risks. workforce management. rights protection frameworks.
083 84Chapter Seven
Indicators and Targets Caring for Female Employees and Practicing ESG
Chengtun Zinc & Germanium and Shimian County Federation of
Indicator Unit 2022 2023 2024 2025 Trade Unions Organize a Legal Awareness Lecture for Female Employees
Total Annual Employee
Training Hours hours/year 108908.5 280970.83 173507.88 409784.45 To enhance female employees’ legal awareness and their ability to safeguard their rights on 18 March Chengtun Zinc &
Investment in Employee Germanium in collaboration with the Shimian County Federation of Trade Unions successfully organized a special legal
Training RMB/year 42972 680878.6 530645.28 882105 awareness lecture for female employees under the theme “Caring for Female Employees the Law by Your Side.” The initiative
aimed to further improve female employees’ legal literacy through legal education and outreach.Number of Training
Course Types number/year 11 21 18 32
The lecture focused on laws and regulations such as the Law of the People’s Republic of China on the Protection of Women’s
Average Training Hours
per Employee hours/person/year 19.83 19.94 18.78 43.72 Rights and Interests and the Special Provisions on the Labour Protection of Female Employees. It provided detailed
explanations of the lawful rights of female employees in areas including employment social security and marriage and family
life and through typical case studies oered clear and practical guidance on legal issues that female employees may
encounter in the workplace and daily life.After the lecture a knowledge quiz session was specially organized to further consolidate the learning outcomes. Female
employees actively participated and enthusiastically answered questions creating a lively atmosphere at the event. The lecture
Indicator Unit 2022 2023 2024 2025 received positive feedback from participants and further enhanced the legal literacy and rights protection awareness of
female employees contributing to the creation of a supportive environment that respects and safeguards women’s rights.Labour Contract Signing Rate % 100% 100% 100% 100%
Social Insurance
Coverage Rate % 100% 100% 100% 100%
Number of Forced
Labour Incidents times 0 0 0 0
Employee Turnover Rate % 14.54% 11.31% 20.00% 21.01%
Male-to-Female Salary Ratio 1:1 1:1 1:1 1:1
for the Same Position /
Indicator Unit 2022 2023 2024 2025
Total Number of Employees persons 7488 9193 9191 9372
Number of Male/Female Employees persons 6064/1424 7489/1704 7603/1588 7800/1572
Eagles Take Flight for a New Journey Painting a Bright Future for Chengtun
Employee Age Distribution
(Under 30 / 30–50 / Above 50) persons 2150/4287/1051 2604/5405/1184 2918/5026/1247 2754/5472/1146 Successful Completion of the Fourth “Eaglet Programmed” Training Camp
Number of Employees from The centralized training programmed supported campus recruits in transitioning from academic life to the professional
Ethnic Minority Groups persons 556 758 1061 982 workplace through knowledge sharing capability development activities and collaborative team projects. At the same time
the Group has established a one-year follow-up development programmed for participants in the Eaglet Programmed
covering both offline and online learning progressing from intensive training to job rotations and ultimately to formal role
placement.Number of Employees with Disabilities persons 49 52 43 41 Participants are encouraged to continue learning exploring and innovating striving to realize their personal potential while
contributing new momentum to Chengtun’s high-quality development. It is hoped that the Eaglets will quickly grow and evolve
into skilled professionals emerging leaders and outstanding talents working together to build a stronger and brighter future
Employee Education Level for Chengtun.
(Bachelor’s Degree and Above /
persons
High School and Above / 825/1230/5433 1277/1604/6312 2203/1731/5257 1790/4192/3390
Junior High School and Below)
Proportion of Female Managers at Middle Level
and Above Among Management Employees % 12% 11.3% 11% 11.3%
Number of Foreign Employees persons 2916 3192 3238 3601
8035 86Chapter Seven
Chengtun Energy “Celebrating May Day · Welcoming Youth Day” Employee Product and Service Safety and Quality Management
Fun Sports Event Kicks O with Energy and Excitement!
Governance:
The “Celebrating May Day Welcoming Youth Day” Employee Fun Sports Event organized by Chengtun Energy represents an important Quality management is the cornerstone of production and service delivery within the Company. Chengtun Mining consistently adopts a
initiative to promote employee well-being strengthen team cohesion and foster a positive corporate culture eectively demonstrating the customer-focused approach continuously improving products and services to meet customer needs. Through top-level design and meticulous
management practices we ensure that our products and services consistently meet customer requirements.Company’s commitment to the social dimension of ESG management.The core objective of quality management is to enhance customer satisfaction and strengthen the Company’s competitiveness. Through
The Company’s trade union will continue to organize diverse cultural and sports activities integrating employee care into routine continuous improvement we aim to reduce waste and improve operational eiciency. Eective quality management helps prevent defects
management while gradually establishing a long-term mechanism for health promotion and team development. In the future such initiatives minimize rework and waste thereby improving product quality and enhancing the Company’s reputation. Quality management is not only
related to product standards but also reflects the Company’s corporate culture and core values.will form an important component of the Company’s ESG social performance supporting the sustainable development of its human capital.Quality Management Process
Quality Structure Personnel Qualifications Quality Monitoring Quality Culture
1.Establish a quality accountability 1.Job skills training before taking 1.Routine quality inspections; 1.Application of quality tools;
system for senior management up a position;
departments and employees. 2.Quality patrol inspections; 2 .Q u a l i t y p ro m ot i o n a n d
2.Regular job skills assessments awareness activities;
2.Set up a quality department to and training; 3.Establishment of inspection
ensure that the entire process— centers. 3.Inspection skills competitions.fro m p ro d u c t d e s i g n a n d 3.Annual quality training.p ro d u c t i o n to d e l i ve ry to
customers—meets established
q u a l i t y s t a n d a r d s a n d
requirements.POINT 01 Quality Management System Development
Several subsidiaries of Chengtun Mining have established comprehensive quality management systems based on the ISO 9001
Quality Management System standard framework. These systems are continuously improved and refined to enhance product and
service quality strengthen brand reputation optimize internal processes improve employee capabilities and support expansion
into international markets.POINT 02 Quality System Development
The development of quality management systems is an important approach for ensuring product and service quality and improving
management standards. The standardization of policies enables eective quality control across the entire value chain—from raw
material extraction selection and preparation and incoming material inspection to smelting and processing and final product
sales.For example KMSA has established and implemented systematic quality management documents including the Quality Manual of
the Quality Inspection Centre the Quality Inspection Centre Testing Quality Management Procedures of KMSA Co. Ltd. and the
Quality Management Specification for Testing in the Geological and Mineral Laboratory.Chengtun Zinc & Germanium has established and implemented multiple quality management documents and standards including
the Central Laboratory Analysis Operating Procedures the Inspection Procedures for Sulphuric Acid and Zinc Ingots the Internal
Calibration Procedures for Laboratory Instruments and Equipment the Sample Management Policy and the Instrument and
Equipment Management Policy.POINT 03 Digital Quality Management Platform
The Company leverages digital technologies to achieve intelligent refined and integrated quality management reducing manual
In August 2025 BMS Brothers Mining organized a China–Africa Cultural Festival conducting cultural exchange activities with the local operations and human errors while improving the eiciency of quality management product quality and customer satisfaction.community at the project site. Chengtun Zinc & Germanium continues to utilize its quality management system to collect information on incoming and outgoing
materials and various inspection data thereby enhancing the Company’s data collection and analytical capabilities.
8037 88Chapter Seven
POINT 04 Quality Culture Development POINT 08 Customer Satisfaction Survey
Improving quality is essential for strengthening the Company’s competitiveness enhancing cost eiciency increasing customer Subsidiaries of Chengtun Mining maintain regular contact with customers through their marketing departments conducting
satisfaction and driving innovation. To maintain product quality standards we conduct regular quality training sessions and weekly periodic visits to understand customer needs and current market conditions. Based on customer requirements and market trends
quality meetings and establish quality improvement teams to analyze and enhance product quality in a targeted manner. and in consideration of the Company’s operational conditions products are manufactured to meet customer expectations. At the
same time the marketing department and quality department maintain regular communication with customers to monitor product
To further improve the quality of products and services and enhance employees’ operational and inspection skills we organize usage promptly respond to feedback and relay relevant information to the appropriate departments so that product adjustments
various quality and technical training programmed. Each company regularly conducts quality training including induction training can be made to beer meet customer needs.for new employees specialized training for quality management personnel and training for production operators ensuring that
personnel at all levels acquire and master the latest quality technologies and management practices. These eorts contribute to the Chengtun Mining encourages its subsidiaries to conduct annual customer satisfaction surveys. To ensure the objectivity and
continuous improvement and optimization of product and service quality thereby enhancing customer satisfaction and market eectiveness of these surveys and to ensure that survey results accurately reflect customer satisfaction levels and support
competitiveness. continuous improvement of the customer service system the Company has established a Customer Satisfaction Control Procedure.What is quality and quality management The role and manifestation of quality awareness
The manifestation and role of quality awareness Where does quality come from How can qualified products be produced Customer Satisfaction Survey Process
A short story about quality awarenessPrepare the “Customer Distribute and collect theReplenishment handlingPOINT 05 Quality Weekly Meeting Mechanism Satisfaction Survey Form” survey forms
To promote the eective implementation of quality management strengthen coordination and communication among
departments and enhance employees’ quality awareness the Company has established a quality weekly meeting mechanism
providing a foundation for continuous improvement
During these meetings each department reports on quality performance over the past week. Based on identified quality issues
specific improvement measures are formulated with clearly defined responsible persons completion timelines and expected Non-conformance
outcomes. After the meetings corrective actions are tracked and evaluated to ensure that issues are eectively resolved. Follow-up verification Prepare an internal reportimprovement
POINT 06 Quality Improvement Team Activities
To strengthen quality management improve quality standards and promote continuous quality improvement the Company has
established specialized quality improvement teams. A quality improvement initiative meeting was held to formulate quality POINT 09 Customer Complaints
enhancement plans and to review relevant quality management documents and standards. Chengtun Mining values feedback from every customer. For customer complaints the Company requires its subsidiaries to establish
standardized complaint handling procedures to ensure that customer feedback is addressed eectively and that reported issues
The Company reinforces quality awareness through institutionalized policies and procedures encouraging active participation
are resolved in a timely manner. Customer complaints can be submied through multiple channels including email telephone and
from all employees. Employees contribute through discussions reviews and summaries with a focus on continuous follow-up and
wrien documents and are formally recorded upon receipt.improvement.The Company conducts investigations and analyzes of the reported issues. If a complaint is confirmed to be related to the
Chengtun Energy applies Statistical Process Control (SPC) tools to monitor production processes. By collecting and analyzing
Company’s products the relevant departments are organized to handle the maer in accordance with internal procedures. For
relevant data potential abnormalities are identified. When anomalies occur root cause analyzes are conducted and cross-
major customer complaints corrective and preventive measures are identified and the relevant departments are required to
departmental teams are formed to resolve the issues ensuring that products meet the required standards during manufacturing
implement remedial actions.and further improving the product quality pass rate.Through this complaint management process we are able to promptly identify areas where customers are dissatisfied with
products or services and take corrective and improvement measures accordingly. This approach helps to enhance customer
satisfaction and loyalty protect the Company’s brand reputation and support long-term business development.Process Description
Communication of Complaint When cooperating with clients the business department shall inform clients of the
Information and Channels complaint methods and available channels.Initiation of Customer
Complaint Clients submit complaint information to the Company’s designated contact personnel.Upon receiving a complaint the responsible personnel promptly contact the relevant
person in charge based on the content of the complaint and provide a complete report
Understanding and
of the complaint information to identify the cause.Reporting
of Complaint Details Based on the feedback received relevant information is verified and the client is
POINT 07 Customer Service contacted.Customer service is a critical component in establishing and maintaining relationships between the Company and its customers. It The responsible department proposes corrective measures and a rectification timeline
encompasses all aspects of customer interaction including pre-sales consultation in-sales support and after-sales service. High- according to the actual situation and provides the corrective plan to the client.quality customer service enhances customer satisfaction and loyalty thereby generating long-term value for the Company.Timely responses to customer needs and concerns are essential in customer service. This requires the establishment of effective The corrective plan is communicated internally to ensure its feasibility.The plan is
communication channels such as telephone email online messaging and social media platforms ensuring that customers can Complaint Handling implemented and follow-up communication is conducted with the client.easily reach the service team. At the same time service personnel must possess professional expertise and strong communication
skills to accurately understand customer requirements and provide appropriate solutions.After the complaint case is resolved the information shall be archived and properly
In addition customer service includes the collection and analysis of customer feedback which helps the Company improve its Complaint Filing retained in a timely manner.products and services and enhance the overall customer experience. Through regular customer satisfaction surveys feedback
collection and market research the Company can identify service gaps and implement corresponding improvement measures.
0893 90Chapter Seven
Strategy
The Company regards product and service safety and quality as a core strategic priority adhering to the principles of regulatory compliance Outstanding Quality Sets an Industry Benchmark
customer-first orientation and full life-cycle management. An integrated management system has been established covering research and
development procurement production sales and after-sales services. CCR Achieves 100% A-Grade Copper Production for
Three Consecutive Months Reaching a Historic High
The Company strictly benchmarks against international standards such as ISO 9001 strengthens the quality accountability system and risk
early-warning mechanisms enhances supplier qualification management and process audits and promotes digital quality traceability and risk
management. The Company also implements the requirements of 100% product qualification at factory release and closed-loop handling of
customer complaints continuously improving product safety design and testing capabilities and enhancing information disclosure. Through
these measures we safeguard user rights with high-quality standards while strengthening brand trust and sustainable competitiveness.CHENGTUN As global competition among major economies intensifies and technological and industrial transformations continue to deepen worldwide the strategic importance of
the non-ferrous metals mining industry has become increasingly prominent. Congo
Impacts Risks and Opportunities Management: MINING Chengtun Resources (CCR) has once again demonstrated the strong production capability and quality management excellence of Chengtun’s overseas operations with
an outstanding performance record. To date CCR has achieved a 100% A-grade
Risk Opportunity Opportunity
copper production rate for three consecutive months seing a new historical record for
the project and establishing a new benchmark in quality management.Domestic and international product safety Establishing a product safety management Establish a full life-cycle product safety
regulations and standards are frequently s y s t e m t h a t e x c e e d s r e g u l a t o r y management mechanism track regulatory
updated. Failure to align with these updates requirements can enhance consumer trust developments and conduct compliance
in a timely manner may lead to compliance m e e t i n t e r n a t i o n a l c l i e n t a c c e s s assessments and strengthen safety control
penalties product recalls market access requirements and strengthen market across R&D production sales and after-
restrictions and reputational damage. competitiveness. s a l e s s t a g e s t o e n s u r e c o m p l i a n t
operations.The supply chain involves multiple stages Strengthening quality control across the Improve supplier admission auditing
and suppliers with varying quality levels entire value chain can improve product classification and exit mechanisms;
which may lead to unstable raw material consistency and reliability reduce rework establish a quality traceability system; and
quality and inadequate process control and scrap costs and build a sustainable promote quality improvement among key
affecting final product quality. quality advantage. suppliers to achieve coordinated supply
chain quality management.Untimely or improper handling of product Efficient closed-loop after-sales and crisis Establish rapid-response processes for
quality issues or safety incidents may lead management mechanisms can enhance customer feedback and complaints
to escalating customer complaints customer satisfaction and brand loyalty improve emergency response plans for
reputational risks and legal liabilities. while providing a basis for product product safety incidents and conduct
improvement and iteration. regular reviews and improvements to form
a continuous quality improvement loop.Insufficient or non-transparent disclosure Standardized disclosure of quality and Integrate product safety and quality
of product safety and quality management safety management performance can targets into the Company’s ESG strategy
information may affect ESG ratings enhance stakeholder recognition and and annual performance assessment
investor confidence and the Company’s contribute positively to ESG performance. systematically disclose management
sustainable development image. systems key indicators and improvement
outcomes and enhance information
transparency and accountability. Lean Management and Quality Control as a Benchmark
CCR is currently standardizing this quality control experience into a management
manual with plans to promote it across other similar projects within Chengtun Mining.As global demand for copper products continues to surge—driven by the new energy
Indicators and Targets sector and the power industry—the continuous breakthroughs represented by Chengtun’
s CCR operations may help reshape the international high-end copper supply chain
Each operational site has established and continues to operate a quality management system. landscape.Chengtun Zinc & Germanium Chengtun Energy
Colixin Zhuhai IATF 16949 Certificate Colixin Zhuhai ISO 9001 Certificate
ISO 9001 Certification Certificate ISO 9001 Certification Certificate
Indicator Unit 2022 2023 2024 2025
Indicator Unit 2022 2023 2024 2025
Product Qualification Rate % / / / 100
Information Security Drills times / / / 1
Customer Satisfaction % / / / 100
Information Security Training times / / / 1 Timely Closure Rate of
% 100 100 100 100Customer Complaints
0913 92Chapter Seven
Quality Inspection Data Security and Customer Privacy Protection
To improve product quality reduce costs enhance production eiciency strengthen corporate competitiveness and support sustainable
development the Company is commied to establishing comprehensive testing capabilities throughout the entire production process. This
ensures that every stage of production complies with quality standards thereby further improving overall product quality.The Company has appointed IT information administrators responsible for the security management of computer information systems within
Incoming Each mining company conducts daily sampling and analysis of conditions prior to mining operations to ensure that extraction the Company.Material can proceed according to the expected requirements. Each smelting company performs material composition analysis on raw
Inspection materials to ensure that purchased materials meet the required quality and technical specifications.Information and Digital Transformation
Mining companies supervise and control the mining process to ensure that mining progress and operational conditions comply The Company is advancing information and digital transformation with the core objective of securing both survival and growth opportunities in the
Process with relevant standards and requirements. Smelting companies conduct sampling and laboratory analysis during the production
Inspection digital era. This transformation is not only an inevitable response to external factors—such as technological advancement evolving customer
process to ensure that all technical and quality indicators meet the required specifications. demands and intensified market competition—but also a strategic initiative for proactive corporate evolution.Its fundamental value lies in digitizing oline processes through information systems to achieve cost reduction eiciency improvement and
standardized management. Building on this foundation digital transformation leverages data to reshape business models drive innovation in
products services and business operations ultimately enhance the customer experience strengthen market competitiveness and build an agile
organization supported by core digital assets
Mining companies conduct ore blending and beneficiation on extracted products to ensure that the final output meets customer
Finished
Product requirements. Smelting companies perform sampling and laboratory analysis of produced products to ensure that all technical Based on its existing digital infrastructure the Company launched and implemented a new Enterprise Resource Planning (ERP) system in 2025.Inspection and quality indicators of finished products comply with the relevant standards and specifications.Software Name Purpose
Chengtun Cloud Classroom Training
Sunshine Procurement System Procurement
I-HR System Performance Evaluation
Landray OA Oice Administration
Dayee Recruitment System Recruitment
Main Laboratory Equipment of Chengtun Energy
The Company is commied to improving product quality reducing costs increasing production eiciency enhancing corporate competitiveness ERP System Business and Financial Management
and ensuring sustainable development. To achieve this it strives to establish comprehensive inspection capabilities throughout the entire
production process ensuring that every stage of production meets quality standards and thereby improving overall product quality.Information Security
With the accelerating pace of digital transformation Chengtun Mining handles a large volume of information and data in its daily production
and operational processes including various types of sensitive data and business confidential information related to employees suppliers
customers and other stakeholders. Therefore we place strong emphasis on information security and confidentiality and have established and
implemented a series of management policies including the Information System Management Policy the Confidentiality Management
Regulations and the Laptop Configuration and Management Measures to comprehensively safeguard information security.Employee Security Information security training courses are conducted to enhance employees’ awareness of information security. These
Awareness Training courses cover topics such as identifying phishing emails and avoiding the use of unauthorized software. During new
employee orientation relevant company information security management policies are also introduced.Institutional Strict information security policies have been established to clearly define employees’ responsibilities in information
Framework processing storage and transmission standardize operational practices and implement corresponding disciplinary
Atomic Fluorescence Atomic Absorption ICP measures for violations.Data Security Data Classification and Grading Management: Data are classified and graded according to their importance and
Management sensitivity with corresponding levels of security protection applied to dierent categories of data.Data Backup and Recovery Strategy: A comprehensive data backup mechanism has been established with important data
backed up regularly.Technical Controls
Type Description
Blocks unauthorized access and data exchange to protect the
Firewall Company’s networks and systems.Document Encryption Encrypts and protects important documents and data.Ion Chromatography Carbon and Sulfur Analyzer X-ray Fluorescence
903 94Chapter Seven
Strategy Innovation-Driven Development
The Company regards data security and customer privacy protection as a core ESG strategic priority adhering to the principles of compliance
first privacy protection full-process management and continuous improvement. Privacy protection is integrated into the entire business process
to balance data utilization with security management.The Company conducts regular cybersecurity aack–defense drills improves management systems and accountability frameworks strengthens
specialized employee training and enhances overall awareness of data security across the workforce.Governance
We consistently regard technological innovation as the core competitive advantage and driving force behind the Company’s sustainable
development. The Company places strong emphasis on investment in research and development continuously optimizing and improving
innovation management mechanisms increasing incentives for R&D innovation and ensuring the stability of the innovation talent pool while
enhancing R&D capabilities.Impacts Risks and Opportunities
Risk Response Measures
POINT 01 R&D Innovation Mechanism
External Aack Risks
We have established and implemented a series of technology management systems including the Scientific Research Management
Malware intrusion: including viruses trojans worms etc.Policy the Intellectual Property Management Policy the Research Institute R&D Incentive Mechanism and the R&D Innovation
Employees may accidentally click links in phishing emails or
nstall firewalls and intrusion detection/prevention systems: Project Management Process. These policies Standardize the entire R&D process including project management financial
download aachments containing malware causing the
firewalls block unauthorized external network access; accounting results evaluation and performance incentives thereby promoting eicient and orderly technological innovation
Company’s systems to become infected and resulting in internal
intrusion detection systems monitor and alert suspicious activities.information leakage or damage.network activities in real time; intrusion prevention systems
actively intercept potential aacks. Conduct regular
cybersecurity assessments and vulnerability scans: POINT 02 R&D Innovation Platform
Internal Risks regularly inspect network systems and software We have established a two-tier R&D management platform. Chengwei Xingke serves as the Mining Group’s research institute
applications to identify vulnerabilities and apply patches in primarily responsible for strategic and forward-looking research while major subsidiaries have established their own R&D centers Employee errors: employees may inadvertently send sensitive
a timely manner. Carry out employee cybersecurity focusing on applied research related to their respective business operations.files to the wrong recipient or use unencrypted portable
storage devices leading to data loss. awareness training to strengthen sta awareness. Chengwei Xingke serves as the central platform for R&D and innovation activities. It was formally established in December 2019
covering an area of 1100 square meters with a total investment of approximately RMB 12 million. Its primary focus is the research
Malicious internal data theft: some employees may deliberately Strengthen internal control and access management and development of new energy metal materials and optoelectronic materials including lithium nickel cobalt copper zinc and
steal the Company’s trade secrets for financial gain or other mechanisms enhance employee awareness and germanium.purposes and sell them to competitors. operational standards and implement strict confidentiality
and data protection policies. In terms of R&D team development Chengwei Xingke has built a stable research team of 20–30 members consisting of senior
engineers with extensive industry experience as the core supported by doctoral and master’s degree researchers. Team members
possess strong R&D experience and professional expertise enabling them to eiciently undertake various research projects.Establish data backup and recovery mechanisms
Data Storage and Transmission Risks strengthen encryption management for storage devices The R&D centers of subsidiaries mainly conduct three categories of research based on existing product lines:
and data transmission and implement strict management
Failure or loss of data storage devices: if the hard drive storing
and protection measures for data storage equipment. Development and application of new technologies for the preparation of new energy materials and environmental protection;
data is damaged and no backup exists data may be lost. In
Industrialisation research on key technologies for improving smelting quality reducing energy consumption and promoting cleaner
addition the loss of devices such as laptops or portable hard production;
drives may lead to data leakage risks.Development and engineering demonstration of high-efficiency smelting and preparation technologies for new energy materials.In terms of R&D equipment configuration Chengwei Xingke currently possesses advanced domestic integrated R&D and analytical
equipment for lithium baery materials high-purity materials (such as germanium and copper) and non-ferrous metal materials
including cobalt nickel and zinc. Major equipment includes triple quadrupole inductively coupled plasma mass spectrometry (ICP-
MS/MS) laser particle size analyzers scanning electron microscopes (SEM) X-ray diraction instruments (XRD) and
thermogravimetric-dierential thermal analyzers (TG-DTA).Indicators and Targets
Indicator Unit 2022 2023 2024 2025
Information Security Drills times / / / 1
Information Security Training times / / / 1
Triple Quadrupole Inductively Coupled FiScanning Electron Thermogravimetric–Dierential
Plasma Mass Spectrometer (ICP-MS/MS) Microscope (SEM) Electrochemical Workstation
X-ray Diractometer (XRD)
Thermal Analyzer (TG-DTA)
0953 96Chapter Seven
Impacts Risks and Opportunities Management
POINT 03 R&D Project Management
To Standardize the management of the Company’s R&D and innovation projects and promote their eective implementation while Risk Opportunity Response Measures
encouraging all R&D personnel to actively participate in scientific research and innovation activities the Company has established and
Rapid technological updates long Formulate scientific R&D planning
continuously improved its R&D innovation system. A well-structured and scientifically organized framework has been put in place to
R&D cycles and high investment Continuous R&D investment can establish project evaluation and
requirements may lead to mismatches create technological barriers and ensure the eective advancement of research and innovation initiatives. dynamic adjustment mechanisms and
between input and output or errors in enhance core competitiveness and a l l o cate i n n ovat i o n re s o u rce s
technology pathway selection. industry leadership. appropriately.POINT 04 Project Management Dependence on external sources for
key core technologies may lead to M a s t e r i n g p r o p r i e t a r y c o r e S t r e n g t h e n r e s e a r c h o n k e y
Chengwei Xingke and the R&D centers of each subsidiary conduct research and development activities through a project-based r i s k s s u c h a s t e c h n o l o g i c a l technologies can enhance risk technologies and improve the system
management approach establishing comprehensive project management systems and processes as well as team collaboration dependency and intellectual property resilience and long-term profitability. for intellectual property layout
disputes. application and protection.mechanisms and communication channels. Team members work closely together to address challenges encountered during the R&D
process thereby improving both the eiciency and quality of research activities.Shortage of high-end innovation Outstanding innovation talent is a Improve talent recruitment training
talent and insuicient incentives may core asset that can significantly incentive and promotion mechanisms
lead to weak innovation capability and enhance R&D eiciency and the to build a strong innovation-oriented
POINT 05 R&D Incentives unstable teams. transformation of research outcomes. talent team.To stimulate the enthusiasm and innovative spirit of R&D personnel and enhance the eiciency and quality of research outcomes the
High investment in low-carbon and
Company has established the Research Institute R&D Incentive Mechanism. environmental technologies along Green innovation aligns with carbon Focus on the development of green
with rapidly changing pol icy neutrality goals enabling access to and low-carbon technologies and This mechanism aims to comprehensively motivate R&D personnel through five types of incentives: project bonus incentives stock
standards may create pressure on policy support and improved ESG promote the green upgrading of
option incentives intellectual property incentives employee promotion incentives and training and development incentives. These transformation costs. ratings. products and processes.measures promote technological advancement and the sustainable development of the research institute.Establish innovation incentive systems
Rigid mechanisms complicated A strong culture of innovation can fault-tolerance and correction
procedures and insuicient tolerance improve eiciency stimulate vitality mechanisms and open collaboration
for errors may suppress organization- and build sustained competitive
POINT 06 Commercialization of R&D Achievements frameworks to foster an innovative wide innovation. advantages. culture.POINT We have established a comprehensive process for the commercialization of research outcomes including technology evaluation
market research and product development. The eectiveness of R&D commercialization is regularly assessed and analyzed to
promptly identify and resolve issues. In addition Chengwei Xingke and the R&D centers of each subsidiary have established incentive
mechanisms and policy support systems to encourage and support the transformation and application of R&D achievements.POINT 07 Intellectual Property Management
Chengtun Mining places great importance on the protection of intellectual property and strictly complies with relevant laws and Indicators and Targets
regulations including the Patent Law of the People’s Republic of China the Anti-Unfair Competition Law of the People’s Republic of
Unit 2022 2023 2024 2025
China and the Intellectual Property Management Standards. The Company has established procedures such as the Intellectual Indicator
Property Management Policy to ensure the strict protection of its intellectual property rights.R&D Personnel persons 204 219 208 173
During the reporting period the Company further strengthened its intellectual property management system through measures
including the formulation of IP-related policies the management of IP risks and the protection of trade secrets thereby promoting Number of PhD Holders persons 4 3 2 1
the commercialization of innovation achievements.The Company also conducts strict reviews of suppliers’ and partners’ intellectual property ownership and authorized scope of use Number of Master’s Degree Holders persons 7 8 13 10
signs standardized licensing agreements to prevent infringement risks and establishes external intellectual property registers to track
Number of Patents Granted cases 13 10 3 27
authorization terms and usage boundaries while conducting regular compliance reviews. At the same time confidentiality
arrangements and ownership of research outcomes are clearly defined to safeguard the Company’s rights and enable the compliant Number of Patent Applications cases 11 15 15 15
eicient and secure use of external intellectual property.R&D Investment RMB 10000 3899.0021 3890.4692 5414.4107 5275.93
R&D Investment as a Percentage of
%0.150.160.210.18%
Operating Revenue
Strategy
The Company adheres to an innovation-driven development strategy with technological innovation management innovation and green
innovation at its core. Innovation is integrated throughout the entire process of sustainable development to drive industrial upgrading and high-
quality growth. Focusing on green and low-carbon development intelligent eiciency and operational safety and reliability the Company
continues to increase R&D investment improve industry–academia–research collaboration mechanisms strengthen the development of key core
technologies and enhance independent innovation capabilities.The Company has established sound innovation incentive and commercialization mechanisms to encourage both internal and open innovation
facilitating the large-scale application of innovative outcomes. Through innovation the Company aims to support energy conservation and
emission reduction eiciency improvement product upgrading and digital transformation contributing to the achievement of the “dual carbon”
goals and broader sustainable development objectives while continuously strengthening its core competitiveness and long-term value.
0973 98Chapter Seven
Technology Ethics POINT 03 Supplier Access
Chengtun Mining advocates establishing long-term stable and trustworthy cooperative relationships with suppliers and maintains
regular communication mechanisms to enhance suppliers’ awareness of fulfilling social responsibilities. Through the implementation
of a green procurement policy in addition to meeting basic supplier qualification requirements suppliers are required to provide a
Material Composition Declaration List and relevant environmental management substance testing reports such as those related to
RoHS compl iance. Only suppl iers whose raw mater ia l composit ion passes the required inspect ions
areeligibletobeincludedintheCompany’s approved supplier list.The Company currently does not engage in business activities directly related to technology ethics such as artificial intelligence applications or
large-scale data processing. Accordingly it has not yet been involved in R&D application or management activities related to technology ethics
nor have any technology ethics-related risk incidents occurred. Looking ahead the Company will continue to monitor policy developments and
Risk Resistance Environmental Price Quality
industry standards in the field of technology ethics and gradually strengthen awareness in this area in line with its business development. Should Production Delivery ServiceCapability ManagementScale Advantage Lead Time Level Capability
future operations involve activities related to technology ethics the Company will promptly establish and improve an appropriate ethics Assurance
management framework regulate relevant practices fulfil corresponding social responsibilities and ensure that business development advances in
alignment with ethical standards and societal values.POINT 04 Supplier Evaluation and Assessment
Chengtun Mining conducts annual reviews and evaluations of suppliers’ responsible practices assessing potential risks related to
environmental protection safety and social responsibility and takes corresponding measures where necessary. Suppliers that fail to
Supply Chain Security meet assessment requirements and do not complete rectification within the specified timeframe or that are involved in major quality
incidents or significant contractual or legal violations will have their supplier qualification revoked.Governance
Board Level
Board of Directors
POINT 05 Building a Responsible Supply Chain
To strengthen due diligence management of suppliers and prevent identify and mitigate supply chain risks Chengtun Mining guides
Management Level and supports suppliers in establishing and implementing supply chain due diligence management systems. The Company regularly
Management Level; Environmental Social and Governance (ESG) Commiee monitors suppliers’ risk mitigation outcomes and adopts management strategies of continued cooperation or suspension of
cooperation depending on the progress made in reducing risks.We believe that responsible supplier management ensures the quality and safety of products and services helps reduce
Operational Level environmental and social responsibility risks and enhances the Company’s corporate image and reputation. The Company’s
Subsidiaries and Group subsidiary KMSA has established the Supply Chain Due Diligence Management Policy and the Risk Implementation and Monitoring
ESG Oice Functional Departments Procedure commiing to identifying and managing risks in supply chain operations.Mineral Supply Chain Group Compliance with Guidelines Conduct Assessments Risk Management Quality Culture
(composed of personnel from relevant departments)
Carry out due diligence on Prepare a risk management Archive all supplier due
Comply with the Supply plan and its implementation suppliers before procurement
C h a i n D u e D i l i g e n c e schedule and coordinate
d i l i g e n ce m a n a g e m e n t
a n d c o n d u c t o n - s i t e information.Mineral Supply Chain Group Management Policy and the relevant departments of the assessments when necessary. supply chain due diligence
Raw Material Supplier Due S u m m a r i z e s u p p l i e r Based on comprehensive management working group to
D i l i g e n ce M a n a g e m e nt p e r f o r m a n c e a n d information collection assess i m p l e m e n t t h e r i s k
Procedures improvement status and the risk level of suppliers. management plan. prepare progress reports.S i g n t h e I n f o r m a t i o n Formulate mitigation strategies
POINT 01 Mineral Supply Chain Team Collection Leer and the for adverse impacts that have
Supplier Code of Conduct o c c u r r e d a n d d e v e l o p
The mineral supply chain team conducts due diligence to trace the compliance of mineral sources organizes community and social improvement plans for suppliers
with higher risk levels requiring
responsibility activities and manages environmental social and governance risks within the supply chain. corrective actions within a
specified timeframe.In addition subsidiaries of Chengtun Mining have formulated the Supply Chain Due Diligence Management Policy with reference to
POINT 02 Supply Chain Management the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Aected and High-Risk Areas. The
Company also requires its suppliers to adopt consistent policies and actions to identify prevent and mitigate risks related to human
Chengtun Mining places strong emphasis on responsible supply chain management requiring suppliers to conduct their business in a
rights armed conflict and corruption in supply chain operations
responsible manner. During the reporting period the Company strictly followed internal policies such as the Supplier Selection and
Evaluation Policy Procurement Contract Management Policy Tendering and Bidding Management Policy Measures for the We have observed that stakeholders are paying increasing aention to the social and environmental risks associated with the
extraction and supply chains of key new energy minerals such as cobalt nickel and copper. The internal and external drivers for
Management of the Mineral Supply Chain Due Diligence Commiee of KMSA Co. Ltd. and the Mineral Supply Chain Risk
upstream and downstream companies in the industry chain to adopt responsible business practices are steadily increasing. Chengtun
Management Procedure of KMSA Co. Ltd..Mining firmly believes that the development and utilization of mineral resources in complex and fragile regions involves not only the
Suppliers are also required to sign documents including the Quality Agreement Environmental Agreement and Declaration of Non- respect for and protection of human rights but also the protection of the ecological environment and the response to climate change.Use of Conflict Minerals promoting responsible business cooperation with the Company in compliance with environmental and social At the same time it contributes to improving local public governance promoting economic and social development and supporting
requirements. community well-being.
99 100Chapter Seven
Strategy Building a Sustainable Mining Future
To enhance the Group’s ESG governance level and broaden its governance platform Chengtun Mining Group Co. Ltd. has joined the Chengtun Mining Participates in the
Responsible Critical Minerals Initiative (RCI). As a member of RCI the Company recognizes the mission and objectives of the initiative and fully 2025 OECD Forum on Responsible Mineral Supply Chains
acknowledges the importance of standards such as the China Mineral Supply Chain Due Diligence Management Guidelines the Guidelines for
Social Responsibility in China’s Mining Investments the Cobalt Refinery Supply Chain Due Diligence Management Standard and the ESG
Management Framework for Artisanal Cobalt Mining in promoting responsible mineral supply chain management. From 5 to 9 May 2025 Chengtun Mining Group as a representative of China’s mining industry aended the 2025 OECD Forum
on Responsible Mineral Supply Chains in Paris France.The Company also endorses the principles and vision of the Joint Action Initiative for Promoting High-Quality Development of Critical Mineral
This forum focused on governance of critical mineral supply chains in the context of the energy transition the protection of
Supply Chains. Through strengthened supply chain due diligence management Chengtun Mining aims to improve governance standards and
human rights and community interests and support for artisanal and small-scale mining (ASM). It aracted participation from
enhance collaboration with upstream and downstream enterprises in the mineral supply chain thereby contributing to the development of a global policymakers international organizations and representatives of mining enterprises. During the event Chengtun Mining
responsible resilient and sustainable critical mineral supply chain. joined other Chinese companies—including the China Chamber of Commerce of Metals Minerals & Chemicals Importers &
Exporters (CCCMC) Zijin Mining Tsingshan Holding Group and CATL—to share China’s practical experience and promote
mutual recognition of international standards and international cooperation.Focusing on Key Issues to Enhance Supply Chain Resilience and Human Rights Protection
Impacts Risks and Opportunities Management
Risk Opportunity Response Measures
Sudden factors such as natural
disasters geopolitical events and Optimizing supply chain layout can Establish a diversified supply chain
pandemics may disrupt raw material enhance the Company’s risk resilience system develop alternative suppliers
supply and logistics aecting the improve operational stability and and establish emergency response
c o n t i n u i t y of p ro d u c t i o n a n d strengthen market confidence. plans for supply chain disruptions.operations
u p p l i e rs fa i l i n g t o m e e t ES G
compliance product quality or Promoting ESG alignment with Improve supplier admission auditing
e n v i r o n m e n t a l a n d s a f e t y suppliers can build a high-quality and classification and exit mechanisms
r e q u i r e m e n t s m a y r e s u l t i n sustainable supply chain enhancing and conduct regular sustainability-
compliance penalties product quality overall industry chain competitiveness. related supplier audits.issues and reputational damage.Significant fluctuations in raw Establish cost monitoring and early-
material prices logistics costs and O pt i m i z i n g s u p p l y c h a i n c o s t warning mechanisms sign long-term
labour costs may increase operating m a n a g e m e n t c a n i m p r o v e cooperation agreements with key
expenses and compress profit p ro fi t a b i l i t y a n d c re a t e c o s t suppliers and promote digital supply
margins. competitiveness.On 11 June 2025 the China Chamber of Commerce of Metals Minerals &
chain solutions to reduce costs.Chemicals Importers & Exporters successfully hosted the Preparatory
Meeting for the Expansion and Upgrade of the Responsible Critical Minerals
Stricter environmental policies and Initiative (RCI) in Changsha Hunan Province. Upstream and downstream
insuicient green production capacity Advancing green supply chain Guide suppliers to implement green enterprises in the mineral supply chain are encouraged to take collective
among suppliers may slow the upgrades can align with carbon production practices prioritize
Company’s green supply chain neutrality goals access policy support suppliers with green certifications
action continuously enhance their due diligence
t r a n s f o r m a t i o n l e a d i n g t o and enhance ESG ratings and brand and implement supply chain carbon
compliance and reputational risks. value. footprint management.International trade frictions tari
Optimizing regional supply chain Develop localized supply chains
a d j u s t m e n t s a n d te c h n o l o g y
layout and expanding domestic and expand into non-restricted markets
restrictions may disrupt cross-border
diversified overseas markets can and establ ish monitoring and
supply chains and aect import and
reduce geopolitical risks. response mechanisms for trade
export operations. barrier risks.Indicators and Targets To support enterprises in addressing overseas investment and trade risks
implementing the assessment practices outlined in the China Mineral Supply
Chain Due Diligence Management Guidelines improving internal
Indicator Unit 2022 2023 2024 2025
compliance and sustainable development management and continuously
strengthening the capabilities of corporate internal auditors the China
Closure Rate of Reported Supply Chain Security Issues % 100 100 100 100
Chamber of Commerce of Metals Minerals & Chemicals Importers &Exporters organized the “2025 Mineral Supply Chain Due DiligenceNumber of Major Supply Chain Safety Incidents cases 0 0 0 0Management Capacity Training Programmed” from 11 to 13 March 2025.
01031 102Chapter Seven
Equal Treatment of Small and Medium-sized Community Management
Enterprises (SMEs)
The Company has established a structured governance framework for community management:
Board of Directors
Responsible for setting overall policies and directions for community engagement and contributions to rural revitalization and for
Governance
making decisions on major matters;
A dedicated governance mechanism has been established to ensure the fair treatment of SMEs with clear responsibilities
assigned to relevant departments and equal cooperation incorporated into the Company’s ESG governance framework.Management Level
Management systems for cooperation with SMEs have been improved discriminatory clauses are strictly prohibited and
complaint and feedback channels have been established to safeguard the legitimate rights and interests of SMEs. Regular The ESG Office coordinates community management activities and supervises and guides subsidiaries in implementing community-
inspections are conducted to ensure the eective implementation of these measures. related initiatives;
Strategy Execution Level
Guided by the principle of “collaborative development and mutual benefit” the Company integrates SMEs into its supply Each subsidiary is responsible for implementing community management activities and reporting progress to the ESG Office in a
chain ecosystem and formulates dierentiated cooperation strategies. Leveraging its own resources the Company provides timely manner.partner SMEs with technical guidance compliance training and other forms of support promoting the enhancement of Management systems such as the External Donation Management Policy have been formulated to ensure the effective
implementation of community engagement activities.SMEs’ ESG capabilities and fostering a mutually beneficial and sustainable industrial ecosystem.Strategy
Impacts Risks and Opportunities Management The Company’s development relies on the support of local governments and communities. While pursuing corporate growth we remain commied
to giving back to society contributing to community development and advancing shared progress with local stakeholders. The Company actively
The primary risks relate to insuicient compliance capabilities and limited fulfilment stability among SMEs which may aect participates in community co-creation and joint development initiatives recognizing that giving back to society also enhances employees’ sense of
supply chain eiciency. However cooperation with SMEs also presents opportunities including bringing innovative vitality belonging and loyalty.reducing supply chain costs fulfilling social responsibility and enhancing the Company’s ESG ratings and brand reputation. On 28 November 2025 KMSA signed the Social Responsibility Commitment (2024–2029) with surrounding communities commiing USD 1.52
million to projects in education drinking water supply and other public welfare areas. These initiatives aim to alleviate shortages in local healthcare
and education resources fulfil social responsibilities and foster a new chapter of mutually beneficial development between mining operations and
local communities.Impacts Risks and Opportunities Management
Risk Opportunity Response Measures
Community complaints NIMBY B u i l d h a r m o n i o u s c o m m u n i t y Establish regular communication mechanisms
conflicts and negative public opinion relations obtain social licence to (such as meetings public notices and hotlines)
may aect production operations operate and ensure stable project implement closed-loop complaint management
and corporate reputation. operations. and conduct prior communication on major
maers.Failure to meet local regulatory mprove compliance standards Comply with local governance
requirements and non-standard enhance government trust and requirements regularly disclose
information disclosure may lead to obtain policy support and facilitation community responsibility information
compliance risks. in approvals. and proactively accept supervision.Improper handling of issues such as land Reduce resistance during project Improve stakeholder identification and
acquisition relocation employment and d eve l o p m e nt a n d o p e rat i o n s consultation mechanisms properly
compensation may trigger disputes and improving project implementation address reasonable demands and
project disruptions. eiciency. handle issues in a transparent manner.Environmental disturbances to Strengthen environmental management
Reduce environmental disturbance at
nearby communities (such as dust optimize operating schedules and
the source and improve corporate
noise emissions and traic) may transportation routes and minimize
reputation and ESG ratings.cause dissatisfaction. impacts on community life.Indicators and Targets
Indicator Unit 2022 2023 2024 2025
Public Welfare Donations and RMB 10000
Rural Revitalization 572.32 1086.34 2438.54 248.66
10303 104Chapter Seven
Occupational Health and Safety
ESG Action | Groundbreaking Ceremony for the Kalongwe Village
Primary School and Handover Ceremony for the Medical Centre
under the KMSA Social Responsibility Project Successfully Held
On the morning of 26 February (local time in the Democratic Republic of the Congo) KMSA Co. Ltd.(KMSA) successfully held the groundbreaking ceremony for the Kalongwe Village Primary School
construction project and the handover ceremony for the Medical Centre both key initiatives under its CHENGTUN Eectively preventing and mitigating major safety risks and ensuring a stable safety environment constitute a fundamental foundation for thesocial responsibility programmed. high-quality development of Chengtun Mining. In order to implement China’s policy of “safety first prevention foremost and comprehensiveMINING management” uphold a people-oriented approach fulfil safety production responsibilities eliminate major accidents and reduce the The ceremony was aended by the Minister of Mining of Lualaba Province the Provincial Minister of
occurrence of general accidents Chengtun Mining has established and continuously improved its occupational health and safety management
Education the Provincial Minister of Health the Administrator of Mutshatsha Territory the Administrator
system in accordance with the Work Safety Law of the People’s Republic of China the Opinions of the CPC Central Commiee and the State
of Lufupa Sector and the Director of the Public Health Department along with representatives from
Council on Promoting Reform and Development in the Field of Work Safety as well as relevant laws and regulations of the countries in which it
various government departments. Also present were representatives from KMSA representatives of the
operates.contractor BPS Company the village chief of Kalongwe Village as well as village chiefs and community
representatives from eight surrounding villages benefiting from the Kalongwe social responsibility project.The Company has implemented a safety management system across Chengtun Mining and its subsidiaries establishing a dual prevention
mechanism consisting of risk-based safety control and hazard identification and rectification. A series of safety management and assessment
systems tailored to the Company’s operational characteristics have also been formulated to ensure the continuous stability of workplace safety
and eectively prevent safety risks.Governance
The construction of the medical centre and community primary school has provided the community with
improved healthcare and educational facilities eectively addressing the long-standing shortage of
POINT
medical resources and inadequate educational conditions in the area. In the future these facilities will 01 Occupational Health and Safety Management Structure
beer meet the healthcare and educational needs of local residents significantly contributing to the To beer fulfil safety responsibilities and eectively implement the overall safety requirements of Chengtun Mining the Company
improvement of community infrastructure and supporting long-term healthy community development. has established a Safety Commiee and implemented a graded safety management system. The main structure is as follows:
These two key projects—the Kalongwe Village Primary School and the Medical Centre—not only
Group Level
represent a vivid demonstration of KMSA Co. Ltd.’s active fulfilment of corporate social responsibility but
Decision-MakingLeve Management Level Execution Level
also reflect the Company’s concrete eorts in implementing environmental social and governance (ESG) Board of Directors / Safety Commiee Operations Department (Dedicated SafetyManagement Personnel) Subsidiaries
principles. They highlight the Company’s firm commitment and practical actions toward sustainable
development. Board of Directors / Safety Commiee: Responsible for formulating overall safety policies and directions and making decisions on
major safety maers.Management Level: The Operations Department of Chengtun Mining coordinates the implementation of safety management
activities. Dedicated safety management personnel are assigned within the Operations Department to supervise and guide
subsidiaries in carrying out workplace safety management.Execution Level: Each subsidiary establishes and maintains a sound safety management structure with the General Manager of
each company serving as the primary person responsible for safety management while the Safety and Environmental Protection
Department assists in implementing specific safety management activities.Subsidiary Level:
Management Level: Subsidiary Heads /Safety Committee Supervisory Level: Subsidiary Safety Management Departments
Execution Level: Production Workshops andOn-site Operations
Management Level: The General Manager of each company serves as the primary person responsible for environmental protection
and safety and a Safety Commiee is established to coordinate the implementation of safety management activities and determine
the annual safety management objectives of each company.Supervisory Level: Each company establishes a dedicated safety management department (or designated personnel) responsible
for supervising the implementation of safety management activities and regularly inspecting on-site safety management practices.Execution Level: Production workshop leaders and on-site supervisors implement the safety management requirements of Chengtun
Mining and their respective companies. Dedicated or part-time safety management personnel are appointed at workshop and site
levels to conduct routine inspections and monitoring.
01305 106Chapter Seven
POINT 02 Development of Occupational Health and Safety Management Systems POINT 05 Safety Digitalisation Platform
To establish a long-term safety management mechanism and achieve standardized safety operations the Company continuously The digitalization of safety management represents an important trend in improving safety governance and is an eective means
improves its safety management practices in accordance with national laws and regulations the ISO 45001 management system of reducing risks associated with human factors. The Company places strong emphasis on the development of digital safety
and the dual prevention mechanism while taking into account its own operational safety risks. management platforms and actively encourages subsidiaries to establish systematic safety supervision systems.In line with the overall safety management requirements of Chengtun Mining each subsidiary has established and continuously Case Study: To strengthen safety supervision and reduce the occurrence of “three violations” (violations of regulations procedures
improved its own safety management system and compiled the relevant policies into formal documentation. and discipline) among employees Chengtun Energy has established a dedicated safety supervision platform. In addition electronic
fences have been installed in high-risk areas. If any unauthorized personnel approach these restricted zones the safety platform
Group Occupational Health and Safety Management Policies: Provide the overarching framework for the Company’s occupational immediately triggers an alarm eectively preventing potential hazards.health and safety management.Subsidiary Occupational Health and Safety Policies: Process-oriented documents covering various modules and elements of
occupational health and safety management.Subsidiary Occupational Health and Safety Work Instructions or Standards: Operational guidance documents supporting the
implementation of occupational health and safety management.The Group has issued multiple management policies including the Safety Production Responsibility Management Measures
Occupational Health Management Measures Fire Safety Management Measures and Change Management Measures.Chengtun Zinc & Germanium has developed systems such as the Safety Management Policy Compilation Occupational Health
Management Policy Compilation Safety Production Responsibility Checklist System Emergency Response Plan for Production
Safety Incidents and Safety Operation Procedures using these policies as the foundation for continuous innovation in health and
safety management.Chengtun Energy has formulated systems including the Post Safety Operation Procedures Labour Protection Equipment
Management Measures and Occupational Disease Hazard Prevention Responsibility System.POINT Equipment and Facilities
POINT 03 Comprehensive Safety Management 06
The Company actively adopts advanced equipment to safeguard the health and safety of on-site employees. When procuring or
The Company places great importance on safety management and has established a six-in-one safety management model. upgrading equipment priority is given to automation systems equipped with protective devices to ensure intrinsic equipment safety.During daily operations equipment is subject to daily monthly quarterly and annual inspections and maintenance ensuring that all
安环管理 equipment remains in good operating condition and protects employees’ interests.Mechanism Education and Supervision and Emergency
Development Training Audit and Review
Safety Rewards
Inspection Management and Penalties
Documentation Emergency response Supervision andEducation and Documentation Audit and review
development inspectiontraining Emergency handling developmentHazard identification Rewards and penalties
Documentation Safety warnings Accident handling and investigation Documentation review POINTreview Warning Signage
Testing and inspection Assessment in
07
Communication of Documentation
Documentation documents Lessons learned from
accordance with
Suggestions and compilation
accidents regulations For work areas or equipment involving operational risks the Company places clear warning signs in prominent locations and compilation recommendations organizes employee training and awareness activities to ensure that employees understand the risks associated with their positions
and equipment.POINT 04 Supervision and Inspection Mechanism
To establish a long-term mechanism for identifying and managing potential safety hazards in production strengthen the primary
responsibility for workplace safety enhance the supervision and management of potential accident risks prevent and reduce
POINT Contractor Safety
accidents and safeguard both corporate assets and the personal safety of employees the Company has formulated the Measures 08
for the Inspection and Management of Safety and Environmental Protection Accident Hazards. These measures clearly define the To strengthen and Standardize contractor safety management implement the primary safety responsibilities of operating entities
classification rectification and management requirements for potential safety hazards in production. improve contractors’ safety management capabilities and prevent production safety incidents the Company has established
management policies such as the Contractor Management Measures and the Contractor (Outsourcing Unit) Safety Management
In 2025 Chengtun Mining issued the Notice on Conducting Special Inspections of Special Operations requiring all subsidiaries to
Policy to regulate contractor activities.actively organize and implement comprehensive safety hazard inspections in an orderly manner.Level Category Key Content Frequency
Conduct regular comprehensive EHS inspections of
Routine Inspection 4 times/year POINT 09 Chemical Management
ailiated companies
Chengtun Mining Hazardous chemicals used by the Company mainly include hydrochloric acid sulfuric acid ammonia solution kerosene diesel
Conduct mutual cross-inspections with sister groups gasoline and civil explosive materials. Each subsidiary has formulated policies such as the Hazardous Chemicals Management
Cross Inspection 2 times/year
to carry out comprehensive EHS inspections. Measures in accordance with regulations including the Regulations on the Safety Management of Hazardous Chemicals and the
Measures for the Management of Emergency Response Plans for Production Safety Incidents as well as their own operational
Conduct inspections before major holidays such as conditions.Holiday Inspection National Day and Spring Festival to ensure safe Before holidays
production during the holiday period. These policies clearly define departmental responsibilities and operational requirements including procedures and precautions for
the procurement use storage transportation and disposal of hazardous chemicals as well as emergency response procedures in
Carry out targeted and professional inspections for the event of chemical leaks. Subsidiaries also strengthen employee training and regularly conduct emergency drills for hazardous At least once per year for
Special Inspection specific areas such as electrical systems and
each special inspection chemical incidents to protect employee health and safety and prevent personal injury and environmental pollution.production operations.Comprehensive Company management and site managers conduct
Inspection comprehensive EHS inspections across the company.Once per month
Subsidiaries
Conduct EHS hazard inspections before shutdown or POINT 10 Change Management
Shutdown Inspection suspension of operations to Before shutdown
ensure compliance with EHS requirements. The Company has established a change management process to control modifications new projects and expansion activities.Before change: Conduct EHS assessments to ensure that proposed changes comply with EHS requirements and legal regulations.Resumption Conduct EHS hazard inspections after resumption of Upon resumption of
work and production to ensure compliance with
Inspection EHS requirements. operations During change: Monitor the change implementation process including construction and installation activities to ensure that no EHS
hazards occur.Daily Patrol Carry out daily EHS patrols at operational sites to Daily After change: Conduct acceptance inspections and evaluations to ensure that EHS protective equipment and facilities meet promptly identify hazards and resolve issues.required standards.
10037 108Chapter Seven
POINT 11 Safety Emergency Drills POINT 15 Monitoring of Occupational Hazard Factors and Health Examinations
Each subsidiary formulates emergency management systems such as the Emergency Rescue Management System for Sudden The Company strictly implements the “three simultaneous” principle for occupational health in new renovated and expanded
Safety and Environmental Incidents and Emergency Response Plans based on potential environmental or occupational health and projects. All construction projects conduct occupational hazard pre-assessments design occupational health protection facilities
safety incidents that may occur during operations. These systems Standardize emergency management practices and enhance the carry out eectiveness evaluations of occupational hazard control measures and complete final acceptance procedures. Based on
Company’s ability to respond to and prevent risks and accidents. evaluation reports monitoring of occupational hazard factors and occupational health examinations for employees are conducted.Emergency management organizations and rescue teams have been established in accordance with the plans. Regular emergency Occupational Health Surveillance: Occupational hazard factor testing evaluation and occupational health examinations are
rescue training and drills are conducted and necessary emergency facilities equipment and supplies are prepared. conducted in accordance with laws and regulations and comprehensive occupational health monitoring records are maintained.Although the Company continues to improve its safety management system to minimize the likelihood of emergency incidents it Pre-employment / Job transfer: Employees newly recruited or transferred to positions involving occupational hazards undergo
maintains a high level of emergency response capability. Subsidiaries are required to equip professional emergency rescue
occupational health examinations before starting work.personnel and equipment and regularly conduct capability training and drills to respond eectively to various emergency situations.During employment: Occupational health examinations are arranged annually during employment.During the reporting period the Company conducted 597 emergency drills covering all operating projects with 9617 employee
participations. The drills covered a wide range of emergency scenarios including fire emergencies tailings accidents first aid for Pre-departure: Occupational health examinations are conducted before employees terminate or end their employment contracts.personal injuries and emergency evacuation.The Company informs employees of their occupational health examination results and monitors them accordingly. If employees are
found to have occupational contraindications they will be reassigned in accordance with regulatory requirements to ensure both
employee well-being and corporate compliance.POINT 12 Emergency Response to Climate-related Disasters Employee HealthThe Company regards the health of all employees—including contractors—as a core component of daily
With climate change becoming an increasingly important source of safety risk for mining operations—such as extreme weather management. It is commied to establishing and maintaining a risk-controlled safe and healthy working environment for
events aecting production and safety—the Company has taken proactive response measures. Emergency plans have been employees and contractors. Occupational disease risks arising from internal operational factors and infectious disease risks from
developed for floods typhoons lightning heavy rain and snow freezing conditions and extreme heat. external factors are managed in an integrated manner.Regular inspections are arranged during periods of high meteorological risk. For example during flood seasons the Company Through continuous health care initiatives and regular health examinations the Company can promptly identify changes in
conducts advance inspections to ensure proper flood control and drainage measures including checking whether drainage ditches employees’ health conditions and provide appropriate support including health advice medical assistance and emergency referral
along mining roads tailings storage facilities and waste dumps are properly cleared and maintained. Infrastructure improvements when necessary.and equipment safety measures are also strengthened.Adhering to the principle of “prevention first with prevention and treatment combined” the Company strives to prevent and
In addition the Company has established emergency supply assurance management measures for critical materials ensuring
minimize work-related health damage and ensure a safe and healthy working environment for employees and contractors.supply continuity and minimizing supply disruption risks caused by sudden climate disasters thereby improving the Company’s
capacity to respond to such events.POINT 16 Infectious Disease Management
13 Occupational Health Management Protecting employee health and well-being is the core objective of infectious disease management. The Company follows the POINT
International Health Regulations host country regulations and guidance from the World Health Organization (WHO) to establish an
Chengtun Mining aaches great importance to employees’ occupational health and safety. In accordance with the Law of the infectious disease management system based on health information reporting and emergency management. The system is
People’s Republic of China on the Prevention and Control of Occupational Diseases and the Regulations on the Supervision and adapted to address the major infectious disease risks faced by dierent projects.Administration of Occupational Health in Workplaces and based on its own operational circumstances the Company has
formulated the Occupational Health Management Measures. Overseas projects have experienced outbreaks of dengue fever and malaria but thanks to the eective operation of the Company’
s infectious disease management mechanism—supported by high vaccination coverage among employees and adequate reserves
Subsidiaries have developed supporting systems such as the Occupational Disease Hazard Prevention Responsibility System
of epidemic prevention materials—project operations have not been significantly aected.Occupational Disease Hazard Warning and Notification System Occupational Disease Prevention Training System and
Occupational Health Prevention Work Plans and Implementation Measures.POINT 17 Safety Culture Development
POINT 14 Control of Occupational Hazard Factors The Company consistently upholds the principle of “safety first” in all business activities. Through various safety initiatives and
training programmed it continuously enhances safety awareness among employees at all levels.In production and operations the Company prioritizes the prevention of dust exposure toxic substances and noise while also
incorporating emerging occupational risks—such as improper working methods and work-related stress—into daily management.Employees exposed to occupational health risks receive regular occupational health examinations as well as comprehensive health
POINT 18 Safety Month Activities
support including health monitoring emergency medicines medical insurance chronic disease support on-site first aid and
psychological counselling providing a solid safeguard for employee health. Each year subsidiaries organize a variety of Safety Month activities encouraging broad participation and increasing awareness of
safety practices. These activities help employees understand the importance of safety and integrate safety principles into their
The control of occupational hazard factors directly aects employees’ well-being and the Company’s sustainable development. The daily work.Company therefore places great emphasis on mitigating occupational health risks and implements various measures to protect
workers’ health.Technological Innovation and Upgrading: Outdated processes that pose occupational disease risks—such as dust and toxic gas
POINT Safety Education and Training
exposure—have been phased out with continuous improvements made to working conditions and environments. For example 19
Chengtun Zinc & Germanium uses hydrogen peroxide instead of sulfuric acid in smelting processes and Huajin Mining uses mist Safety and environmental protection are the foundation of production and operations and success ultimately depends on them.cannons to reduce dust generation at ore conveyor discharge points. Chengtun Mining continues to strengthen the consensus on safe development guiding employees to recognize that they themselves
are the primary beneficiaries of workplace safety. This fosters a shift in mindset from “I am required to be safe” to “I want to beEquipment Automation: Where feasible production equipment is automated to reduce direct exposure of operators tooccupational hazards. safe” encouraging proactive risk prevention. Subsidiaries regularly organize safety education and training programmed to enhance
employees’ safety awareness and professional skills and create a safe and stable working environment.Equipment modification: Protective upgrades are implemented for equipment including the installation of vibration-reduction pads
and other measures to reduce noise and related hazards.Process optimization: By adjusting and optimizing process parameters the generation of occupational hazard factors is reduced. POINT 20 Safety and Environmental Responsibility Commitment Management
Personal protective equipment (PPE): Employees working in environments with occupational hazard factors are provided with PPE At the beginning of each year the Operations Department of Chengtun Mining organizes subsidiaries to sign Safety and
such as masks and earplugs. Environmental Protection Target Responsibility Agreements. Company leaders and employees subsequently sign layered Safety
Occupational disease prevention awareness: External experts are invited to subsidiaries to deliver lectures on laws regulations and and Environmental Responsibility Statements ensuring that safety production responsibilities are eectively fulfilled at all levels.knowledge related to occupational disease prevention and occupational health. Safety performance is also incorporated into management performance assessments and reviewed monthly.
01039 110Chapter Seven
Strategy Impacts Risks and Opportunities Management
POINT 1 Establishment of an Occupational Health and Safety Management System Risk Assessment and Management
Use advanced technologies and methods to assess and manage potential risks in the workplace in order to develop eective control measures.To further strengthen its occupational health and safety governance system and promote eective implementation of occupational
health and safety initiatives some subsidiaries of Chengtun Mining have adopted the ISO 45001 Occupational Health and Safety Continuous Improvement
Management System and safety production standardization requirements applying the PDCA management approach. Several Continuously optimize and improve workplace safety and health management through the adoption of continuous improvement approaches to
subsidiaries have obtained occupational health and safety management system certifications and safety production ensure ongoing enhancement.standardization certificates.Reward and Incentive Mechanisms
During the reporting period the number of work-related injury incidents occurring during normal production operations was Establish reward and incentive mechanisms to encourage employees to actively participate in and comply with safety and health regulations
significantly lower than the average of the previous three years and the number of injured employees continued to decline despite thereby improving workplace safety and employee health.steady growth in major product output. Each incident was analyzed using a comprehensive accident root cause analysis table
enabling a thorough examination of potential weaknesses in the safety management system and safety culture. In the future the Establish Clear Policies and Procedures
Company will continue to increase investment in safety protection facilities hazard rectification and safety education and training Develop clear safety and health policies and procedures to ensure that employees understand and comply with relevant requirements
programmed. safeguarding workplace safety and health.Data Analysis and Forecasting
POINT 2 Occupational Health and Safety Targets for the Next Three Years Collect and analyze workplace-related data to identify potential safety and health risks and carry out prediction and prevention.No. Work Objective
1 Zero fire incidents. POINT 01 Risk Identification
To fully implement the primary responsibility for work safety further Standardize occupational health and safety management at
Chengtun Mining and advance the establishment of the dual prevention mechanism for safety risk classification control and hazard
identification and rectification the Company requires all subsidiaries to establish risk identification and control mechanisms in
Zero cases of acute industrial poisoning zero newly diagnosed occupational diseases
2 accordance with the Work Safety Law of the People’s Republic of China and relevant regulations issued by the Ministry of
and a 100% occupational health examination rate for employees exposed to occupational hazards. Emergency Management on the development of the “dual system”.To further enhance the Company’s capabilities in risk management and hazard identification subsidiaries continuously carry out
risk identification and management activities based on the requirements of dual prevention mechanism development risk
3 Zero traffic accidents within the plant and zero traffic accidents involving company administrative vehicles. identification and assessment risk classification control and hazard inspection and rectification.
POINT 02 Risk Management
Full implementation of safety hazard identification andremediation throughout the year
4 The Company focuses on systems and operational areas with significant risks and high accident potential taking seasonal
with a problem rectification rate of 100%. characteristics into account and working jointly with internal and external experts to conduct quarterly comprehensive safety
inspections. In addition specialized safety inspections are organized for areas such as flood season safety lightning protection
safety shaft construction lifting equipment and facilities tailings storage facilities and contractor safety management.Zero petitions and complaints related to safety occupational health and fire safety throughout the year;
no administrative penalties imposed by national or local competent authorities for safety occupational These inspections focus on verifying compliance with production site regulations and standards safety facility design requirements
5 health or fire safety; not listed as a typical case in municipal-level safety inspections; and not included in construction organization plans and specialized construction schemes. In accordance with the principles of risk control planning
the joint disciplinary list or “blacklist” for dishonesty in the field of production safety. the Company follows the hierarchy of elimination prevention reduction isolation personal protection and warning
comprehensively identifying and rectifying potential risks and hazards.To further strengthen the management of occupational health and safety risks during operations each company has established
6 A 100% inspection rate for special equipment and a 100% compliance rate for equipment in operation. risk management mechanisms tailored to its own operational characteristics.
Chengtun Zinc & Germanium has formulated the Dual Prevention Mechanism Management Plan and established a dual prevention
mechanism leadership group and specialized working groups responsible for related tasks.A 100% completion rate for three-level safety education for new employees; a 100% certification rate for Chengtun Energy has established policies such as the Safety Risk Management Policy and the Risk Assessment Management Policy
7 personnel in the three key positions; and a 100% participation rate in annual safety refresher training for to conduct comprehensive risk assessments for production safety.
all employees.Zero work-related fatalities due to production safety responsibility; serious injury rate due to responsibility
1 (classified as disability grades 1–6 or with direct medical expenses exceeding RMB 50000); minor
8 injury rate due to responsibility 4 (classified as disability grades 7–10 or with direct medical expenses Guizhou Huajin has developed hazard identification
between RMB 3000 and RMB 50000); minor injury cases 2% (direct medical expenses below RMB
and risk analysis tables conducting detailed
3000); excluding cases caused by force majeure or natural disasters.
inspections and listings of potential accident-inducing
factors in operations such as exploration activities
For new renovated and expanded projects strictly implement the “Three Simultaneities” requirements and pipeline installation. Each identified risk is
9 and complete relevant procedures and permits related to safety occupational health and fire evaluated individually and corresponding prevention
protection in accordance with the project schedule. and control measures are formulated.
01311 112Chapter Seven
POINT 03 Impacts Risks and Opportunities Chengtun Zinc & Germanium Signs
Through safety supervision services the Company maintains periodic identification of risk factors across its operating entities. Safety supervision provides supportive services 2025 Safety Environmental Protection
for subsidiary safety management by engaging external experts in safety occupational health and fire protection together with internal specialists to conduct safety and Business Target Responsibility Agreements
management system assessments and targeted inspections of subsidiaries. These evaluations identify existing issues and provide recommendations for improvement with
the frequency of inspections determined based on the safety risk levels of each subsidiary.In daily operations risk management is primarily implemented through regular
internal inspections combined with the identification of risk factors during non-routine operations enabling the continuous updating and refinement of the Company’s
internal risk register and ongoing risk management.The Company has also established a Safety Monitoring and Emergency Dispatch Centre integrating safety monitoring Recently Chengtun Zinc & Germanium held a signing ceremony for the
video systems from key operational locations such as mines and smelting facilities. This system enables centralized monitoring and control of high-risk operations critical 2025 Safety and Environmental Protection Target Responsibility
equipment and facilities and major risk areas thereby enhancing the Company’s capabilities in risk monitoring and early warning. Agreement and the Business Target Responsibility Agreement. The
Company’s Chairman Long Shuang General Manager Zhu Yongxiang
Identified Risks and Opportunities along with vice presidents in charge of various business segments the
Risk Opportunity Response Measures assistant to the general manager and heads of each operating unit
gathered together to participate in and witness this important occasion.Establish an ISO 45001 occupational health and
Work-related injuries and production safety incidents Reduce accident-related losses ensure continuous safety management system implement risk
may cause personnel injury production shutdowns and stable production and enhance operational In his remarks Zhu Yongxiang emphasized the critical importance of classification control and form a closed-loop
and legal liabilities. resilience. safety and environmental protection noting that safety is the mechanism for hazard identification and rectification.cornerstone of corporate development while environmental protection
Implement source control hazard monitoring
Occupational hazards caused by dust noise Reduce the incidence of occupational diseases serves as a safeguard for sustainable growth. He also provided an in-
occupational health examinations and maintain
and toxic or harmful substances may lead to lower long-term labor risks and improve depth interpretation of the Company’s 2025 business objectives
comprehensive occupational health surveillance
occupational diseases. employees’ health levels. clarifying the key roles and responsibilities of each department and
records. operational unit in achieving these goals.nsuicient safety training uncertified personnel Improve personnel safety skills reduce human Implement the three-level safety education system
performing special operations and non- error and enhance production eiciency. ensure certification for special operations personnel
standard operating practices. and conduct regular training and assessments. Closed-loop Management
Weak safety management of outsourced Standardize safety management across the Strictly implement contractor access requirements
personnel or contractors may lead to accidents supply chain and reduce overall operational safety briefings on-site supervision performance Corrective ActionsInspections at Follow-up Summary and Optimization
and joint liabilities. risks. evaluation and exit mechanisms. Control Measures withAssignedAll Levels Responsibility Verification Analysis Measures
nhance intrinsic safety reduce repeated Allocate adequate safety funds promote equipment
Insuicient safety investment and aging
rectifications and achieve long-term safety upgrades implement intelligent safety protection systems
facilities may reduce intrinsic safety levels.improvements. and optimize production processes.Group Safety and Environmental Supervision Oice
Inadequate emergency response plans and mprove emergency response capability reduce the Improve specialized emergency response plans ensure
insuicient drills may weaken the ability to respond risk of accident escalation and enhance corporate adequate emergency supplies and conduct regular Conducts Safety Production Inspection and
to emergencies. resilience. practical emergency drills. Research at Kelixin (Zhuhai)
Improve employee satisfaction and sense of Standardize the provision and use of personal protective
Inadequate labor protection unreasonable working
belonging reduce turnover and enhance equipment arrange reasonable work schedules and
hours and employee mental health issues. To thoroughly implement safety production requirements and ensure the orderly and stable resumption of operations after
organizational cohesion. strengthen employee physical and mental health support. the holiday period Zhou Xianjin Vice President of Chengtun Group led an inspection team from the Safety and
Environmental Supervision Oice to Kelixin (Zhuhai) Co. Ltd. in 2025 to carry out post-holiday production safety inspections
Establish an ISO 45001 occupational health and safety
Work-related injuries and production safety incidents Reduce accident-related losses ensure continuous
management system implement risk classification control and on-site guidance.may cause personnel injury production shutdowns and stable production and enhance operational
and form a closed-loop mechanism for hazard
and legal liabilities. resilience.identification and rectification.POINT 04 Indicators and Targets
Indicator Unti 2022 2023 2024 2025
Employee Occupational Health Examination Coverage % 100% 100% 100% 100%
Number of Work-related Fatalities persons/year 0 2 0 0
Number of Contractor Fatalities persons/year 0 1 1 3
Accident Rate Lost working hours per 4168 14872 2462 7951million hours
Number of Occupational Disease Cases cases/year 0 0 0 0 Zhonghe Nickel Conducts Plant Fire Safety Inspection to
Total Safety Investment RMB 10000 5184 3745 4276 5886 Strengthen Summer Production Safety Protection
Total Investment in Safety Education and Training RMB 10000 254.16 281.34 345.08 117.958
Total Safety Training Hours hours 1986 2430 3842 7101 To further strengthen the Company’s fire safety management eectively prevent and mitigate potential fire hazards and
Number of Safety Education and Training Sessions sessions 271 313 425 6874 enhance employees’ awareness of fire safety the General Administration Department together with the Safety
Environmental Protection and Production Department organized a fire safety inspection across the plant area in July 2025.Total Number of Participants in Training person-times 3559 4127 5185 17775
Number of Emergency Drills Conducted times 168 303 475 597
Number of Participants in Emergency Drills person-times 5063 5758 7735 9635
Number of Fire Incidents times 0 0 0 0
Certification Rate of Safety Management Personnel % 100% 100% 100% 100%
Certification Rate of Special Operations and Special Equipment Personnel % 100% 100% 100% 100%
Number of Special Safety Inspections times 4 4 4 804
Note 1: The Lost Time Injury Frequency Rate per million working hours = Lost working hours due to work-related injuries ÷ Total working hours × 1000000.Note 2: Statistics for special safety inspections in 2025 include data from subsidiaries.
01313 114Chapter Seven
CHENGTUN
MINING
Xingan Aima completed the upgrade and commissioning of its underground personnel positioning system safety and
environmental monitoring system video surveillance system communication system mining broadcast system underground
entry identification system and large-screen monitoring system. The implementation of these systems has significantly enhanced
the level of safety management and operational intelligence.Training for Readiness Preventing Risks Before They Occur
Chengtun Energy Conducts Confined Space Emergency Drill
To strengthen safety management for confined space operations prevent and control production safety incidents such as
poisoning and suocation and further enhance emergency response capabilities Chengtun Energy organized a confined space
operation emergency rescue drill in June 2025. The practical drill aimed to improve the company’s emergency preparedness and
response capability through scenario-based training.Strengthening Preparedness Through Drills
Kelixin (Zhuhai) Conducts Fire Emergency Drill
To further enhance employees’ awareness of fire safety and improve emergency response capabilities Kelixin (Zhuhai) organized
a comprehensive fire emergency drill in April 2025. Through careful planning realistic scenario simulations and post-drill reviews
the activity eectively tested the eectiveness and practicality of the emergency response plan while strengthening the overall
safety awareness and preparedness of all employees.Strengthening Preparedness Through Drills
Kelixin (Zhuhai) Conducts Fire Emergency Exercise
To further enhance employees’ fire safety awareness and improve their emergency response capabilities in handling unexpected
incidents Kelixin (Zhuhai) organized a comprehensive fire emergency drill in April 2025. Through careful planning realistic
simulation and post-drill evaluation the exercise eectively tested the practicality of the emergency response plan and
improved the overall safety awareness and preparedness of all employees.
10315 116Chapter Seven
Eliminating Safety Hazards and Strengthening Safety Defenses CHENGTUN
CCR Launches Comprehensive “Safety Production Month” Activities
MINING
Careful Planning Enhanced Communication Increased Awareness and a Strong Safety Culture
June 2025 marked the 24th National “Safety Production Month” in China. The theme for this year was “Everyone Talks AboutSafety Everyone Knows Emergency Response — Identifying Safety Hazards Around Us.” In alignment with this theme CCRadopted the guiding principle of “eliminating safety hazards strengthening safety defenses and enhancing overall employeeawareness of production safety.”
The initiative aimed to foster company-wide participation improve employees’ safety awareness and risk prevention capabilities
and promote the Company’s safe and sustainable development. On 31 May CCR held the launch ceremony for the Safety
Production Month campaign during which the activity plan was introduced and detailed arrangements for its implementation
were communicated.Baoshan Hengyuan Xinmao Launches
the 2025 “Safe Production Month” Campaign
On June 3 2025 Baoshan Hengyuan Xinmao Mining Co. Ltd. held the launch ceremony for the 2025 “Safe Production Month”
campaign. The ceremony was chaired by Mr. Guo Jianwen Deputy General Manager in charge of safety. All company
employees and members of the hydrogeological and environmental exploration project team in the mining area aended the
event.Precision in Action Excellence in Skill
Chengtun Energy’s Warehouse Security Department
Successfully Hosts Forklift Skills CompetitionIn November 2025 the Warehouse Security Department of Chengtun Energy successfully organized the “Precision Control SkillEnhancement” Forklift Skills Competition. The event aimed to strengthen practical operational capabilities and promote the spirit
of craftsmanship characterized by precision and continuous improvement.Through the design of multiple challenge stations the competition comprehensively assessed forklift operators’ professional skills
and overall competencies. It also provided a valuable platform for employees to exchange expertise refine their skills and
progress together.
10317 118Appendix
Appendix 1: Independent Assurance Statement for
the Sustainability Report
10319 120Appendix
Appendix 2: Key Performance Indicators
Appendix 1: Independent Assurance Statement for the Sustainability Report
Environmental Performance
Composition and Operation of the Board of Directors Pollutant Emissions Management and Water Resource Management
Appendix 3: Index of Compliance with the Shanghai Stock Exchange Self-Regulatory Guidelines
for Listed Companies No. 14 — Sustainability Report (Trial)
Indicator Unit 2022 2023 2024 2025 Environmental Indicator Unit 2022 2023 2024 2025
Number of Board Members persons 7 7 7 7
Environmental Protection Investment RMB 10000/year 6529 16877 11156 4502 Appendix 4: GRI Standards Content Index
Number of Female Directors on the Board persons 0 0 0 0
Proportion of Female Directors on the Board % 0 0 0 0 Wastewater Discharge tonnes/year 141158.67 217274.92 540583.06 1194429.28
Number of Independent Directors on the Board persons 3 3 3 3
Proportion of Independent Directors on the Board % 42.86 42.86 42.86 42.86 Wastewater COD Discharge tonnes/year 6.70 9.10 12.81 48.7 Appendix 6: Feedback Form
Number of Shareholders’ Meetings Held times 6 7 4 3
Number of Board Meetings Held times 21 15 9 9 Wastewater Ammonia Nitrogen Discharge tonnes/year 1.20 1.47 2.67 2.46
Number of Supervisory Board Meetings Held times 16 10 7 5
Total Copper Discharge in Wastewater tonnes/year 0.00 0.00 0.00 0.094
Total Zinc Discharge in Wastewater tonnes/year 0.09 0.04 0.08 0.088
Company Performance (Economic Indicators)
Indicator Unit 2022 2023 2024 2025 Wastewater Treatment Compliance Rate % 100 100 100 100
Operating Revenue RMB 10000 2583352 2445581 2573046 3000268
Revenue Growth Rate % -42.51 -5.33 5.21 16.60 Exhaust Gas Emission Compliance Rate % 100 100 100 100
Net Profit Aributable to Shareholders of the
Parent Company RMB 10000 -209 26469 200539 196142
Taxes Paid RMB 10000 Nitrogen Oxides Emissions tonnes/year 45.81 105.35 134.63 897.54697289 92628 103086 150973
Cobalt Products metal tonnes 10902 12370 13258 9203
Sulfur Dioxide Emissions tonnes/year 34.15 32.78 68.92 4516.912
Copper Products metal tonnes 57757 102217 176530 207383
Nickel Products metal tonnes 39729 41615 32853 49418
Particulate Maer Emissions tonnes/year 24.14 19.53 36.08 119.94
Zinc Products metal tonnes 264822 332197 322723 326297
Germanium Products metal tonnes 6.75 6.88 11.09 15.2 General Waste Generation (Excluding Tailings) tonnes/year 247092.41 252105.43 302069.68 366633.41
Total General Waste Disposal tonnes/year 138443.46 122624.00 136678.31 300869.5
Business Ethics Management
Hazardous Waste Treated tonnes/year 279225.24 353635.06 349947.86 402335.396
Indicator Unit 2022 2023 2024 2025
Confidentiality Agreement Signing Rate % / 100% 100% 100%
Total Tailings Generated 10000 tonnes 106972 62206.26 90877.54 6150021.42
Confidentiality Agreement Signing Rate for New Employees % / / 100% 100%
Number of Lawsuits Related to Unfair Competition with Third Parties cases 0 0 0 0 Tailings Comprehensively Utilized 10000 tonnes 43620 8340.21 24006.21 136578.2
Number of Lawsuits Related to Business Ethics with Third Parties cases 0 0 0 0
Number of Business Ethics and Anti-corruption Reports cases 0 0 0 0 Tailings Stockpiled 10000 tonnes 63352 53866.05 66871.33 10150150.8
Internal Audit Reports reports 6 7 11 10
Integrity Commitment Signing Rate of Senior Management % / 100% 100% 100% Freshwater Consumption tonnes/year
3404137605486680379958014820
Integrity Commitment Signing Rate of New Employees % / / 100% 100%
Water Reuse Volume tonnes/year 798825.73 1354636.54 1594461.13 6583753.44
Number of Business Ethics Training Sessions times 0 6 6 10
01231 122Appendix
Indicators and Targets Carbon Emissions Social Performance
Indicator Unit 2024 2025
Group Scope 1 Emissions tCO2e equivalent 3478261 3549954
Innovation-driven Development
Group Scope 2 Emissions (location-based) tCO2e equivalent 347205 365235
Energy Type Unit 2022 2023 2024 2025
Group Scope 2 Emissions (market-based) tCO2e equivalent 1009313 1049688
R&D Personnel persons 204 219 208 173
Group Scope 3 Emissions tCO e equivalent 4663439 58204572
Number of PhD Holders persons 4 3 2 1
Total Group Emissions (location-based) tCO2e equivalent 8488905
9735646
Number of Master’s Degree Holders persons 7 8 13 10
10420099
Total Group Emissions (market-based) tCO2e equivalent 9151013
Patents Granted cases 13 10 3 27
11.67
GHG Emissions per Unit of Industrial Value Added (location-based) tCO2e equivalent / RMB 10000 11.37 Patent Applications cases 11 15 15 15
12.49
GHG Emissions per Unit of Industrial Value Added (market-based) tCO2e equivalent / RMB 10000 12.25 R&D Investment RMB 10000 3899.0021 3890.4692 5414.4107 5275.93
4.69
GHG Emissions per Unit of Operating Revenue (location-based) tCO2e equivalent / RMB 10000 5.12 R&D Investment as % of Revenue % 0.15 0.16 0.21 0.18%
5.51
GHG Emissions per Unit of Operating Revenue (market-based) tCO2e equivalent / RMB 10000 6.01
5.85
Emissions Intensity of Cobalt Processing tCO2e equivalent / tonne 7.21
Emissions Intensity of Nickel Processing tCO e equivalent / tonne 2.63 2.412 Occupational Health and Safety
Energy Type Unit 2022 2023 2024 2025
Occupational Health Examination Coverage
for Employees % 100% 100% 100% 100%
Work-related Fatalities persons/year 0 2 0 0
Energy Utilization
Contractor Fatalities persons/year 0 1 1 3
Energy Type Unit 2022 2023 2024 2025
Incident Rate lost work hours / million hours worked 4168 14872 2462 7951
Gasoline liters 67038 115529 176969 229972
Number of Occupational Disease Cases cases/year 0 0 0 0
Diesel liters 36948875 48937821 96297048 143821596
Natural Gas m 81664 480495 7557680 3449282 Total Safety Investment RMB 10000 5184 3745 4276 5886
Liquefied Petroleum Gas kg 10343 9080 9669 9032 Total Investment in
Safety Education and Training RMB 10000 254.16 281.34 345.08 117.958
Standard Coal kg 180183142 190270423 180487465 162141731
Safety Training Hours hours 1986 2430 3842 7101
Anthracite kg 29744642 32817820 21588902 40010305
Semi-coke kg 28601434 9336279 38020689 44834539 Safety Training Sessions Conducted sessions 271 313 425 6874
Bituminous Coal kg 341719454 351536338 355109871 374410471 Total Training Participants person-times 3559 4127 5185 17775
Thermal Coal kg 978052038 1080760578 1300460179 1304388961
Emergency Drill Sessions times 168 303 475 597
Pulverized Coal kg - 34400 89730 7791550
Participants in Emergency Drills person-times 5063 5758 7735 9635
Lump Coal kg - - 4771760 27999640
Purchased Electricity kWh 1463308902 1733760022 1911860088 1775537374 Number of Fire Incidents times 0 0 0 0
Purchased Heat GJ 139193 182615 72922 40489
Certified Safety Management Personnel Ratio % 100% 100% 100% 100%
Self-generated Electricity kWh 1981000 16804148 61216410 96864633
(Waste Heat Power Generation) Certification Rate of Special Operations and
Special Equipment Personnel % 100% 100% 100% 100%
Self-generated Solar Power kWh - 4456 1300406 18524692
Emission Reduction from tCO e / / / 69000 Number of Special Safety Inspections times 4 4 4 804
Waste Heat / Solar Power 2
Note 1: The Lost Time Injury Frequency Rate (LTIFR) per million working hours = total lost work hours due to work-related injuries total working hours 1000000.Note: The data covers production-oriented enterprises under the Company’s operational control that were in operation during the reporting period including mines and smelting plants. Note 2: The 2025 statistics for special safety inspections include data from subsidiaries.
01323 124Appendix
Employee Management Employee Rights and Interests
Indicator Unit 2022 2023 2024 2025 Indicator Unit 2022 2023 2024 2025
Labor Contract Signing Rate % 100% 100% 100% 100%
Total Employees persons 7488 9193 9191 9372
Social Insurance Coverage Rate % 100% 100% 100% 100%
Male/Female Employees persons 6064/1424 7489/1704 7603/1588 7800/1572
Incidents of Forced Labor times 0 0 0 0
Employee Turnover Rate % 14.54% 11.31% 20.00% 21.01%
Age Distribution (<30 / 30–50 / >50) persons 2150/4287/1051 2604/5405/1184 2918/5026/1247 2754/5472/1146
Male-to-Female Pay Ratio / 1:1 1:1 1:1 1:1
for the Same Position
Ethnic Minority Employees persons 556 758 1061 982
Employees with Disabilities persons 49 52 43 41 Community Management
Indicator Unit 2022 2023 2024 2025
Public Welfare Donations and
Education Level RMB 10000 572.32 1086.34 2438.54 248.66
persons 825/1230/5433 1277/1604/6312 2203/1731/5257 1790/4192/3390 Rural Revitalization
(Bachelor+ /High School+ /Junior High and Below)
Female Managers at
%12%11.3%11%11.3%
Middle Level and Above
Product and Service Safety and Quality Management
Indicator Unit 2022 2023 2024 2025
Foreign Employees persons 2916 3192 3238 3601
Product Qualification Rate % / / / 100
Customer Satisfaction % / / / 100
Timely Closure Rate of Customer Complaints % 100 100 100 100
Training
Indicator Unit 2022 2023 2024 2025
Product and Service Safety and Quality Management
Total Annual Employee Training Hours hours/year 108908.5 280970.83 173507.88 409784.45 Indicator Unit 2022 2023 2024 2025
Closure Rate of Reported Supply Chain Security Issues % 100 100 100 100
Number of Major Supply Chain Safety Incidents cases 0 0 0 0
Employee Training Investment RMB/year 42972 680878.6 530645.28 882105
Number of Training Course Types types/year 11 21 18 32 Data Security and Customer Privacy Protection
Indicator Unit 2022 2023 2024 2025
Information Security Drills times / / / 1
Average Training Hours per Employee hours/person/year 19.83 19.94 18.78 43.72
Information Security Training times / / / 1
10235 126Appendix
Appendix 3: Cross-Reference Index to the Guidelines Appendix 4: GRI Standards Index
No. 14 of the Shanghai Stock Exchange for
Self-Regulation of Listed Companies — Sustainability Report (Trial)
Instructions for Use: During the period from 1 January 2025 to 31 December 2025 the Company reported the information referenced in this
GRI Content Index in accordance with the GRI Standards.Dimension No. Topic Relevant Section GRI 1 Used: GRI 1: Foundation 2021
Looking Ahead
1 Climate Change Response Creating Sustainable Value Together GRI Standard Disclosure Item Location
2 Pollutant Emissions Pollutant Emission Management 2-1 Organizational Details About Shengton Mining
2-2 Entities Included in the
3 Waste Treatment Pollutant Emission Management Organization’s Sustainability Reporting
About This Report
2-3 Reporting Period Frequency and Contact Point About This Report
4 Ecosystem and Biodiversity Protection Biodiversity
Environment
2-4 Restatements of Information About This Report
5 Environmental Compliance Management Environmental Compliance Management
2-5 External Assurance Appendix 1
6 Energy Utilization Energy Utilization
2-6 Activities Value Chain and Other Business Relationships About Shengton Mining
7 Water Resource Utilization Water Management
2-7 Employees Employee Management
8 Circular Economy Water Management
2-8 Workers Who Are Not Employees Employee Management
9 Rural Revitalization Community Management
2-9 Governance Structure and Composition Governance: Building a Solid Foundation for Development
10 Social Contribution Community Management 2-10 Nomination and Selection of the
Highest Governance Body Governance: Building a Solid Foundation for Development
11 Innovation-driven Development Innovation
2-11 Chair of the Highest Governance Body Governance: Building a Solid Foundation for Development
GRI 2:
General Disclosures 2021
12 Technology Ethics Technology Ethics 2-12 Role of the Highest Governance Body in
Overseeing Impact Management Governance: Building a Solid Foundation for Development
Social 13 Supply Chain Security Supply Chain Security 2-13 Delegation of Responsibility for Managing Impacts Governance: Building a Solid Foundation for Development
2-14 Role of the Highest Governance Body in
14 Fair Treatment of SMEs Fair Treatment of SMEs Sustainability Reporting Governance: Building a Solid Foundation for Development
Product and Service Safety 2-15 Conflicts of Interest Stakeholders
15 Product and Service Safety and Quality
and Quality Management
2-16 Communication of Critical Concerns Stakeholders
16 Data Security and Customer Privacy Protection Data Security and Customer Privacy Protection
2-17 Collective Knowledge of the Highest Governance Body Governance: Building a Solid Foundation for Development
17 Employees Employee Management
2-18 Evaluation of the Performance of
Governance: Building a Solid Foundation for Development
the Highest Governance Body
18 Due Diligence Stakeholders
2-19 Remuneration Policies Employee Management
19 Stakeholder Communication Stakeholders
Sustainable Development 2-20 Process to Determine Remuneration Employee Management
Governance
20 Anti-bribery and Anti-corruption Business Ethics Management
2-21 Annual Total Compensation Ratio Not disclosed due to confidentiality policies
21 Anti-unfair Competition Business Ethics Management
01327 128Appendix
GRI Standard Disclosure Item Location GRI Standard Disclosure Item Location
GRI 204:
2-22 Statement on Sustainable Development Strategy Chairman’s Statement Procurement Practices 204-1 Proportion of Spending on Local Suppliers Supply Chain Security
2016
2-23 Policy Commitments Chairman’s Statement 205-1 Operations Assessed for Risks Related to Corruption Business Ethics Management
GRI 205: 205-2 Communication and Training about
Anti-corruption 2016 Business Ethics Management
2-24 Embedding Policy Commitments Sustainable Development Governance System
Anti-corruption Policies and Procedures
205-3 Confirmed Incidents of Corruption and Actions Taken Business Ethics Management
2-25 Processes to Remediate Negative Impacts Business Ethics Management
GRI 206: 206-1 Legal Actions for Anti-competitive Behavior
Anti-competitive
Anti-trust and Monopoly Practices Business Ethics Management
GRI 2: Behavior 2016
2-26 Mechanisms for Seeking Advice and Raising Concerns Stakeholders
General Disclosures 2021
207-1 Approach to Tax ESG Risk Management
Environmental Governance System
2-27 Compliance with Laws and Regulations Occupational Health and Safety
207-2 Tax Governance Control and Risk Management ESG Risk Management
GRI 207: Tax 2019
2-28 Membership in Associations Group Honors 2025
207-3 Stakeholder Engagement and
Management of Concerns Related to Tax ESG Risk Management
2-29 Approach to Stakeholder Engagement Stakeholders
207-4 Country-by-Country Reporting /
2-30 Collective Bargaining Agreements Employee Management
301-1 Materials Used by Weight or Volume /
3-1 Process to Determine Material Topics Materiality Assessment GRI 301: Materials 2016 301-2 Recycled Input Materials Used Product and Service Safety and Quality Management
GRI 3: 301-3 Reclaimed Products and Their Packaging Materials Product and Service Safety and Quality Management
Material Topics 2021 3-2 List of Material Topics Materiality Assessment
302-1 Energy Consumption within the Organization Energy Utilization
3-3 Management of Material Topics Materiality Assessment
302-2 Energy Consumption outside the Organization Energy Utilization
201-1 Direct Economic Value Generated and Distributed Key Performance Indicators
GRI 302: Energy 2016 302-3 Energy Intensity Energy Utilization
201-2 Financial Implications and Other Risks and
Looking Ahead: Creating Sustainable Value Together
Opportunities Due to Climate Change
GRI 201:
Economic Performance 302-4 Reduction of Energy Consumption Energy Utilization
2016 201-3 Defined Benefit Plan Obligations and
Employee Management
Other Retirement Plans
302-5 Reductions in Energy Requirements of
Energy Utilization
Products and Services
201-4 Financial Assistance Received from Government /
303-1 Interactions with Water as a Shared Resource Water Management
202-1 Ratios of Standard Entry Level Wage by
/
Gender Compared to Local Minimum Wage
GRI 202: 303-2 Management of Water Discharge-related Impacts Water Management
Market Presence 2016
202-2 Proportion of Senior Management Hired
Group Governance Structure
from the Local Community GRI 303:
303-3 Water Withdrawal Water Management
Water and Eluents 2018
203-1 Infrastructure Investments and Services Supported Key Performance Indicators
303-4 Water Discharge Water Management
GRI 203:
Indirect Economic Impacts
2016
203-2 Significant Indirect Economic Impacts Materiality Assessment 303-5 Water Consumption Water Management
01329 130Appendix
GRI Standard Disclosure Item Location GRI Standard Disclosure Item Location
304-1 Operational sites owned leased managed in
or adjacent to protected areas and areas of high biodiversity value Biodiversity 403-1 Occupational health and safety management system Occupational Health and Safety
outside protected areas
304-2 Significant impacts of activities 403-2 Hazard identification risk assessment and incident investigation Occupational Health and Safety
products and services on biodiversity Biodiversity
GRI 304:
Biodiversity 2016
403-3 Occupational health services
304-3 Habitats protected or restored Biodiversity Occupational Health and Safety
403-4 Worker participation consultation and communication
304-4 IUCN Red List species and national conservation list
on occupational health and safety Occupational Health and Safety
species with habitats in areas aected by operations Biodiversity
Looking Ahead: 403-5 Worker training on occupational health and safety Occupational Health and Safety
305-1 Direct (Scope 1) GHG emissions GRI 403: Creating Sustainable Value Together
Occupational Health
and Safety 2018
Looking Ahead: 403-6 Promotion of worker health Occupational Health and Safety
305-2 Energy indirect (Scope 2) GHG emissions Creating Sustainable Value Together
403-7 Prevention and mitigation of occupational health and safety
Looking Ahead: impacts directly linked by business relationships Occupational Health and Safety
305-3 Other indirect (Scope 3) GHG emissions Creating Sustainable Value Together
403-8 Workers covered by an occupational health and
GRI 305: Looking Ahead: safety management system
Occupational Health and Safety
Emissions 2016 305-4 GHG emissions intensity Creating Sustainable Value Together
403-9 Work-related injuries Occupational Health and Safety
Looking Ahead:
305-5 Reduction of GHG emissions Creating Sustainable Value Together
403-10 Work-related ill health Occupational Health and Safety
305-6 Emissions of ozone-depleting substances (ODS) No ODS are generated during our operations
404-1 Average hours of training per year per employee Key Performance Indicators
305-7 Nitrogen oxides (NOx) sulfur oxides (SOx) and
other significant air emissions Pollutant Emission Management GRI 404: 404-2 Programs for upgrading employee skills
Training and Education
and transition assistance programs Employee Management
2016
306-1 Waste generation and significant waste-related impacts Pollutant Emission Management
404-3 Percentage of employees receiving regular performance
and career development reviews Employee Management
306-2 Management of significant waste-related impacts Pollutant Emission Management
405-1 Diversity of governance bodies and employees
GRI 405: Employee Management
Diversity and
GRI 306: Waste 2020 306-3 Waste generated Pollutant Emission Management Equal Opportunity 2016
405-2 Ratio of basic salary and remuneration of women to men /
306-4 Waste diverted from disposal Pollutant Emission Management
GRI 406:
406-1 Incidents of discrimination and corrective actions taken
Non-discrimination 2016 Employee Management
306-5 Waste directed to disposal Pollutant Emission Management GRI 407: 407-1 Operations and suppliers in which the right to
Freedom of Association and
Collective Bargaining 2016 freedom of association and collective bargaining may be at risk
Employee Management
308-1 New suppliers screened using environmental criteria Supply Chain Security 408-1 Operations and suppliers at significant risk for
GRI 308: GRI 408: Child Labor 2016
incidents of child labor Employee ManagementSupplier Environmental
Assessment 2016 308-2 Negative environmental impacts in the
Supply Chain Security GRI 409:
supply chain and actions taken 409-1 Operations and suppliers at significant risk forForced or
incidents of forced or compulsory labor Employee ManagementCompulsory Labor 2016
401-1 New employee hires and employee turnover Employee Management GRI 410:
Security Practices 2016 410-1 Security personnel trained in human rights policies or procedures Employee Management
GRI 401: 401-2 Benefits provided to full-time employees that are GRI 411:
Employment 2016 Employee Managementnot provided to temporary or part-time employees Rights of 411-1 Incidents of violations involving rights of indigenous peoples Employee Management
Indigenous Peoples 2016
401-3 Parental leave Employee Management 413-1 Operations with local community engagement
impact assessments and development programs Community Management
GRI 413:
GRI 402: Local Communities 2016 413-2 Operations with significant actual and
Labor/Management 402-1 Minimum notice periods regarding operational changes /
potential negative impacts on local communities Community ManagementRelations 2016
0131 132Appendix
GRI Standard Disclosure Item Location Appendix 5: International Financial Reporting
Sustainability Disclosure Standards (IFRS) Index
414-1 New suppliers screened using social criteria Supply Chain Security
Topic Topic Description Disclosure Requirements Index
GRI 414: The objective of sustainability-related financial
Supplier Social disclosures on governance is to enable users of
Assessment 2016 general-purpose financial reports to understand the
Double Materiality Analysis
governance processes controls and procedures an
entity uses to monitor manage and oversee
Supply Chain Security sustainability-related risks and opportunities.Negative social impacts in the supply chain and actions taken
Oversight and management of
To achieve this objective the entityshall disclose the
Governance sustainability-related risks and
following information:
opportunities
(a) the governance body(s) (which can include a board
commiee or equivalent body charged with Group Governance Structure;
governance) or individual(s) responsible for oversight of Sustainable Development
GRI 415:
Public Policy 2016 415-1 Political contributions / sustainability-related risks and opportunities. Governance System
(b) management’s role in the governance processes
controls and procedures used to monitor manage and
oversee sustainability-related risks and opportunities.
416-1 (a) The objective of sustainability-related financial
Product and Service Safety and
Assessment of the health and safety impacts of disclosures on strategy is to enable users of general
Quality Management
product and service categories purpose financial reports to understand an entity’s
strategy for managing sustainability-related risks and
GRI 416: opportunities;
Customer Health (b) the sustainability-related risks and opportunities that
and Safety 2016 could reasonably be expected to aect the entity’s
prospects;
Product and Service Safety and Managing sustainability- (c) the current and anticipated eects of those
Incidents of non-compliance concerning the health
Quality Management Strategy related risks and opportunities sustainability-related risks and opportunities on the ESG Risk Management
and safety impacts of products and services entity’s business model and value chain;
(d) the eects of those sustainability-related risks and
opportunities on the entity’s financial position financial
performance and cash flows for the reporting period
and their anticipated eects on the entity’s financial
position financial performance and cash flows over the
417-1 Product and Service Safety and short medium and long term;
Requirements for product and service information and labeling Quality Management (e) the resilience of the entity’s strategy and its business
model to those sustainability-related risks.(a) The objective of sustainability-related financial
disclosures on risk management is to enable users of
GRI 417: 417-2 general purpose financial reports to understand an Product and Service Safety and
Marketing and Incidents of non-compliance concerning product and Processes used to identify entity’s processes to identify assess prioritize and
Labeling 2016 Quality Managementservice information and labeling Risk assess prioritize and monitor monitor sustainability-related risks and opportunities;
ESG Risk Management
Management sustainability-related risks (b) The extent to which and how the processes for
and opportunities identifying assessing prioritizing and monitoring
sustainability-related risks and opportunities are
integrated into and inform the entity’s overall risk
management process.
417-3 Product and Service Safety and
Incidents of non-compliance concerning marketing communications Quality Management
The objective of sustainability-related financial
disclosures on metrics and targets is to enable users of
Progress toward achieving general purpose financial reports to understand an
Metrics and t a r g e t s r e l a t e d t o entity’s performance in relation to sustainability-related
Key Performance Indicators
Targets sustainability-related risks risks and opportunities including progress towards any
418-1 and opportunities targets the entity has set and any targets it is required
GRI 418:
Substantiated complaints concerning breaches of Data Security and Customer Privacy Protection
Customer Privacy 2016 to meet by law or regulation.customer privacy and losses of customer data
0133 134Appendix
Topic Topic Description Disclosure Requirements Index Feedback Form
The governance body(s) (which can include a
In terms of governance the objective of Looking Ahead: board commiee or equivalent body charged with
climate-related financial disclosures is to Creating Sustainablegovernance) or individual(s) responsible for
enable users of general-purpose Value Togetheroversight of climate-related risks and opportunities
financial reports to understand the
Governance
governance processes controls and
procedures used by the entity to monitor
Management’s role in the governance processes Looking Ahead:
manage and oversee climate-related
controls and procedures used to monitor manage Creating Sustainable
risks and opportunities.and oversee climate-related risks and opportunities. Value Together Dear Readers
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The climate-related risks and opportunities that Looking Ahead:
could reasonably be expected to aect the entity’s suggestions to help us continuously improve our ESG practices and further enhance the quality and impact of our work.Creating Sustainable
prospects. Value Together
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The current and anticipated eects of those Looking Ahead:
climate-related risks and opportunities on the Creating Sustainable Regarding Chengtun Mining your identity is:
entity’s business model and value chain. Value Together
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In terms of strategy the objective of
climate-related financial disclosures is to The eects of those climate-related risks and
enable users of general-purpose Looking Ahead: opportunities on the entity’s strategy and decision-
Creating Sustainable Your overall impression of this report is:Strategy financial reports to understand the making including information about its climate-
strategy adopted by the entity to Value Togetherrelated transition plan. □Employee □Good □Average □Fair □Poor
manage climate-related risks and
opportunities.The eects of those climate-related risks and
opportunities on the entity’s financial position In your opinion the quality of ESG information disclosed in this report is:Looking Ahead:
financial performance and cash flows for the Creating Sustainable □Very High □High □Average □Low
reporting period and their anticipated eects on the
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cash flows over the short medium and long term.The structure of this report is:
The climate resilience of the entity’s strategy and Looking Ahead:
□Very Reasonable □Average □Fair □Poor
its business model to climate-related changes Creating Sustainable □Reasonable
developments and uncertainties. Value Together
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The climate resilience of the entity’s strategy and Looking Ahead:
its business model to climate-related changes Creating Sustainable □Employee □Good □Average □Fair □Poor
developments and uncertainties. Value Together
In terms of risk management the Open-ended Questions
objective of climate-related financial The processes and related policies the entity uses Looking Ahead:
disclosures is to enable users of 1.Which aspects of this report do you find most satisfactoryto identify assess prioritise and monitor climate- Creating Sustainable
general-purpose financial reports to
Risk related risks. Value Togetherunderstand the processes used by the
Management
entity to identify assess prioritize and
monitor climate-related risks and
opportunities. The extent to which and how the processes for
2.What additional information would you like to see disclosed in this report
identifying assessing prioritizing and monitoring Looking Ahead:
climate-related risks and opportunities are Creating Sustainable
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management process.
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Information relevant to
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the cross-industry metric categories.Value Together
Industry-based metrics that are associated with
In terms of metrics and targets the Looking Ahead:
particular business models activities or other
objective of climate-related financial Creating Sustainable
common features that characterize participation
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Metrics and in an industry.general-purpose financial reports to
Targets
understand the entity’s performance in
managing climate-related risks and Targets set by the entity and any targets it is Name : Contact Number:
opportunities. required to meet by law or regulation to mitigate
or adapt to climate-related risks or take Looking Ahead:
advantage of climate-related opportunities Creating Sustainable
including metrics used by the governance body Value Together
or management to measure progress towards Contact Information
these targets.Tel: 0592-5931519; Email: 600711@600711.com; Contact Person: Liao Yingfeng
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