MEIHUA HOLDINGS GROUP CO. LTD.ENVIRONMENTAL SOCIAL

AND GOVERNANCE (ESG) REPORT01 Meihua Holdings Group Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 02

CONTENTS

Introduction 01 ESG Governance 02 Prioritizing Products

About This Report 01 Sustainable development strategy 15 Product and service safety 27

and quality

Message from Chairman 05 ESG statement of the Board 19 Customer rights protection 37

About Meihua Group 07 ESG compliance governance 19 Data security and customer 38

privacy protection

Main achievements in ESG 20

Dual importance assessment of issues 21 Innovation-driven development 39

and technology ethics

Appendix 03 Environmental Protection 04 Social Responsibility

ESG data sheets 103 Addressing climate change 49 Supply chain security 69

Benchmark Index Table 114 Environmental compliance management 57 Human resources management 74

Green packaging materials 66 Work safety 85

Biodiversity conservation 66 Rural revitalization and social 93

contribution

05 Business Ethics and Anti-corruption

Business ethics and anti-corruption management system 99

Business ethics and anti-corruption whistleblowing mechanism 100

Business ethics and anti-Corruption management measures 101

Key indicators 102

Supplier anti-corruption management 10203 Meihua Holdings Group Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 04

About This Report

This is the third environmental social and governance (ESG) report released by Meihua Holdings Group Reporting Frequency

Co. Ltd. (hereinafter referred to as "this Report") which outlines the Company's strategic This Report is released once a year consistent with the annual report.sustainability goals mission and commitments as well as significant initiatives and outstanding

performance in the fields of ESG. It aims to disclose the Company's ESG practices and achievements to

Data Sources

key stakeholders.The key financial data in this Report is derived from audited 2024 Annual Report of Meihua

Holdings Group Co. Ltd. Other data is sourced from internal documents audit reports and other

Organizational Boundaries relevant materials of the company.Unless otherwise specified this Report covers Meihua Holdings Group Co. Ltd. and all its subsi- Unless otherwise specified all currencies in this Report are expressed in RMB.diaries. The photos used in this Report have been authorized.Reporting Period Title Description

This Report primarily covers the year 2024 (from January 1 2024 to December 31 2024) with For the convenience of presentation and reading "Meihua Group" "the Company" "we" and "

some appropriate retrospective disclosures to ensure the coherence of the information and data. us" used herein refer to "Meihua Holdings Group Co. Ltd.;" "Tongliao Base" "Xinjiang Base" and "

Jilin Base" used herein refer to the production bases of its three wholly-owned

subsidiaries: "Tongliao Meihua Biological Technology Co. Ltd." "Xinjiang Meihua Amino Acid Co.Preparation Basis Ltd." and "Jilin Meihua Amino Acid Co. Ltd."

Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of Listed Companies—

Report Format

Sustainability Report (Trial)

Guide No. 4 of the Shanghai Stock Exchange for Self-Regulation of Listed Companies— This Report is published in electronic format and you can browse and download its Chinese

Preparation of Sustainable Development Reports and English electronic versions at the following websites: Meihua Group's official website

Global Reporting Initiative's Sustainability Reporting Standards (GRI Standards) (www.meihua.group); Shanghai Stock Exchange's website (www.sse.com.cn). If you have any

International Financial Reporting Standards for Sustainability Disclosure No. 1—General questions or suggestions about this Report please send an email to mhesg@meihuagrp.com or

Requirements for Disclosure of Sustainability-related Financial Information call 0316-2359652.International Financial Reporting Standards for Sustainability Disclosure No. 2—Climate-related

Disclosures Language

Recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)—Final Report This Report is written and published in Simplified Chinese and is also available in English. In case

SDG Compass: The Guide for Business Action on the SDGs issued by United Nations of discrepancies between different versions the Chinese version shall prevail.05 Meihua Holdings Group Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 06

Message from Chairman II. Strengthening the foundation of responsibility with IV. Creating shared value through responsible

systematic governance cooperation

At the governance level adhering to the dual-wheel We have always regarded social responsibility as

strategy of "international standards + local an important dimension of our corporate mission.Dear partners investors colleagues and friends from practices" we have achieved full coverage of the ISO In 2024 the Company donated RMB 2458750

all walks of life 14001 Environmental Management System and ISO through channels such as education support

2024 is a critical year for Meihua Group to deepen its 45001 Occupational Health and Safety Management rural revitalization and disaster relief to actively

ESG strategy and promote the deep integration of the Systems and passed the ISO 37001 Anti-bribery fulfill our social responsibility. In the future we

concept of sustainable development into its business Management System Certification in February 2024 will also launch a dedicated "Supply Chain ESG

practices. In the face of global climate change the laying a solid institutional foundation for responsible Management" project to extend the responsibility

reshaping of supply chain resilience and the demand governance. to the upstream and downstream of the industrial

for high-quality development we always adhere to the chain achieving value sharing.We have always emphasized that ESG is not an add-on

principles of pragmatism and truth-seeking and we

to our business but an action plan that is deeply

are committed to implementing ESG concepts

integrated with our strategic decisions

throughout the entire chain of corporate operations to

management and resource allocation. In 2024 under Looking ahead: moving towards sustainability at

achieve synergistic growth of economic

the guidance of the Board of Directors we actively a more determined pace

environmental and social values in the green

promoted the close integration of sustainability

transition. Here on behalf of the Board of Directors I Looking ahead to 2025 the company will focus on

indicators into our business priorities; continued to

would like to express my sincere gratitude to all three strategic initiatives: "Addressing Climate Ch-

optimize the sustainability governance structure and

partners who have supported the development of ange" "Carbon Neutrality and Strategic Planning"

align it with the management system of the Company;

Meihua Group and share our practices and reflections. and "Supplier ESG Management". These will be ad-

and cooperated with experts in various fields to

discuss key issues such as climate change and supply vanced through targeted projects to drive breakth-

chain ESG management so as to ensure that our ESG roughs in key areas — from strategic planning and

strategy resonates with our business development technological innovation to ecosystem collabora-

through systematic deployment. tion — building a multidimensional responsibility

network spanning "internal operations industry

I. Leading the industry's sustainable development with III. Driving green transformation with technological chains and communities". This will ensure the full

benchmarking practices innovation integration of ESG principles across business ope-

Over the past year Meihua Group's efforts in the Under the guidance of the "carbon peaking and carbon

rations.fields of ESG were widely recognized: the Company neutrality" goals the Company insists on the We firmly believe that sustainable development is

won the Best ESG Practice Award for Listed Companies technological breakthrough as the core driving force of the foundation of an enterprise. Meihua Group will

at the China Track and ESG Sustainable Development green development and continues to increase the push forward the ESG strategy with stronger

Conference and was listed among Forbes China's Top investment in green technology. In 2024 the Company determination and turn our commitment into

10 "ESG Inspirational Cases" for 2024. These have added 39 new authorized patents contributing quantifiable and traceable results. We look

served not only as recognition of our long-term technological momentum to the "carbon peaking and forward to working with all parties to draw a

investment but also as an incentive for us to keep carbon neutrality" goals; the xanthan gum product of green blueprint for high-quality development!

moving forward. Jilin Base and the MSG product of Tongliao Base

received both carbon footprint and water footprint

We understand that the sustainable development of an certifications marking a new level in the management

enterprise requires the collaborative industry efforts. of the entire lifecycle from raw materials to end Chairman of Meihua Holdings Group Co. Ltd.To this end the Company has been deeply involved in products; and two subsidiaries of the Company Jilin

the formulation of standards such as the ESG Wang AijunMeihua Amino Acid Co. Ltd. and Tongliao Meihua

Disclosure Guidelines for Chinese Bio-fermentation Biological Technology Co. Ltd. were recognized as March 2025

Enterprises and the ESG Evaluation Guidelines for National Benchmark Enterprises for Energy

Chinese Bio-fermentation Enterprises led by Conservation and Environmental Protection in the

organizations such as the China Biotech Fermentation Biological Fermentation Industry. We will continue to

Industry Association providing a replicable "Meihua

Meihua Holdings Group Co. Ltd. make scientific and technological innovation our core Solution" for building a standardized transparent and driving force for promoting the green transition of the

sustainable industrial ecosystem. Company.07 Meihua Holdings Group Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 08

About Meihua Group Relying on three modern production bases in Tongliao Inner Mongolia Wujiaqu Xinjiang and Baicheng Jilin as well as two R&D and innovation centers in Langfang and Shanghai the Company has formed a

full industrial chain layout covering R&D production and sales. The Company's core competence runs

Company Profile through every key link from strain design and build to fermentation separation and extraction and

then to product moulding which builds up a complete and efficient industrial closed loop. Among them

the production capacity and technical level of core products such as lysine MSG threonine xanthan

As a full-chain synthetic biology pioneer company deeply engaged in the field of amino acid the gum disodium guanylate and disodium inosinate and pharmaceutical amino acids rank among the top

Company always focuses on the large-scale production and innovative application of amino acid. in the global industry demonstrating the Company's outstanding strength and market leadership in the

Adhering to the "Amino Acid +" development strategy the Company has continuously expanded its field of amino acids.product matrix and business landscape since its establishment and has now built a complete industrial

ecosystem covering livestock nutrition amino acids (lysine threonine valine and other series products) The products produced by the Company include:

food flavor enhancers (MSG disodium guanylate and disodium inosinate and other flavor enhancers)

pharmaceutical-grade amino acids (glutamine proline and other medicinal raw materials) colloidal

polysaccharides (Xanthan Gum trehalose) and bulk byproducts (corn germ protein powder etc.).The Company implements an integrated R&D production and sales business model. After more than 20 Amino acid products for livestock nutrition Taste optimization products for food

years of hard work and continuous innovation it has now become one of the world's largest amino acid Lysine threonine tryptophan feed grade valine Glutamic acid glutamic acid sodium disodium

manufacturers and can flexibly meet the differentiated needs of different customers around the world. residue of MSG starch byproduct-based feed fiber guanylate disodium inosinate food-grade xanthan

corn germs microbial protein etc. gum trehalose natamycin etc.With a future-oriented vision adhering to the strategy of "Single Focus Dual Drives Three

Persistences". Meihua Group will further focus on the high-quality development of its main business be

driven by both technology and management and persist in creating and sharing

value and putting customers first on an integrity foundation thereby striving to become a leader in Pharmaceutical amino acids for human Other fields

synthetic biology. Glutamine proline leucine isoleucine pharmaceu- Industrial-grade xanthan gum bioorganic

tical-grade valine inosine guanosine adenosine fertilizers etc.pullulan polysaccharide and vitamin B2 etc.Our future: Focused on Becoming a

World Leading Enterprise in Synthetic Biology

Single Focus Dual Drives Three Persistences Corporate c ulture

We aim at achieving We are driven by Technologi- We uphold the principles of Co-

high-quality growth in our cal Innovativion and Outstan- Creation Customer-Centered-

core business and becoming ding Management ness and Intergrity

a leader in bio economy Strategic Goal Focused on becoming a world leading enterprise in synthetic biology

Core Values Our success thrives on integrity diligence honesty and harmony.

2024 Operating income: RMB 25.069 billion Net profit: RMB 2.74 billion09 Meihua Holdings Group Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 10

Key ESG Performance in 2024 Leading Products

ESG 100% 100% 99.80%

Finished product Product quality certification Product testing pass rate

MSCI rating: B In 2024 Meihua Group participated in qualification rate coverage

the development of ESG Disclosure

Guidelines for Chinese Bio-fermentation 100% 100%

In December 2024 Meihua Group received Enterprises and the ESG Evaluation Scope of disclosure of hazardous Scope of chemical hazard assessment

the Best ESG Practice Award for Listed Guidelines for Chinese Bio-fermentation chemicals

Companies at the China Track and ESG Enterprises led by the China Biotech RMB 733 m illion 3.13%

Sustainable Development Conference Fermentation Industry Association Amount of R&D investment Proportion of R&D personnel to the total

number of employees of the Company

Corporate Governance (Business Ethics and Anti-corruption) 2.93% 402

Proportion of R&D investment to income Number of R&D personnel

from primary business

In February 2024 Meihua Group

successfully passed the ISO 37001 0 160 39

anti-bribery management system Number of cases involving corruption Number of valid invention patents Number of newly authorized patents

certification during the reporting periodconcluded in 2024

93.850

Customer satisfaction (full score is Number of data security and privacy

0 0 100 points) leakage incidents

Number of business ethics and anti- Number of cases involving commercial

corruption reports ethics concluded

Environmental Protection

Growing Together with the Employees

RMB 68.51 m illion 100%

Investment in environmental Coverage of ISO 14001 Environmental

0 36% 90% protection during the reporting period Management System Certification

Human rights Proportion of female senior Human rights assessment

violation 0 0executives coverage of employees

Environmental violations Water-related violations

225.15h 3.91 97.73%

120 tons

The average training Overall employee satisfaction The training ratio of all

hours per employee score (full score is 5 points) employees As of the end of 2024 the total weight of all types of packaging materials reduced by

100%

Social Contribution

Scope of ISO 45001 Occupational Health and Safety Management System Certification

100%76%

Addressing Climate Change Proportion of products with raw materials Proportion of suppliers signing the Supplier

traceable to the place of origin Code of Conduct

304874044.71 Kwh 42%

Clean energy usage Coverage of supplier carbon reduction 2.46m illion RMB 2765 people 351555 hours

program Total amount of social Number of beneficiaries of Hours of participation in

donations rural revitalization measures employee volunteer activities

In January 2024 the Xanthan Gum In December 2024 the MSG products

products (industrial grade + food grade) of the Tongliao Base obtained carbon

of the Jilin Base obtained carbon footprint and water footprint

footprint certification certifications11 Meihua Holdings Group Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 12

About Meihua Group

Important Honors

in 2024

National Amino Acid Xinjiang?Water-saving Xinjiang?Top 100 Industrial

Industry Testing and Enterprises Enterprises in XPCC

Analysis Center (Langfang)

Best ESG Practice Award No. 16 of the Top 100 No. 18 of the Top 100 Tongliao?No. 32 of the Top Tongliao?No. 23 of the Top Tongliao - Behavioral Style

for Listed Companies in Privately-owned Privately-owned 100 Privately-owned 50 Privately-owned Observation Point

2024 Companies in Hebei Companies in Hebei Companies in Inner Manufacturing Companies

Province for Invention Province for R&D Mongolia in Inner Mongolia

Patents in 2024 Investment in 2024

Jilin?High-tech Enterprises Jilin?Provincial Leading

Enterprises in Agricultural

Industrialization

No. 34 of the Top 100 No. 34 of the Top 100 Jilin?National Tongliao?National

Privately-owned Privately-owned Benchmark Enterprise Benchmark Enterprise

Manufacturing Companies in Hebei for Energy Conservation for Energy-saving and

Companies in Hebei Province in 2024 and Environmental Environmental

Province in 2024 Protection in the Protection in the

Biological Fermentation Biological Fermentation

Industry Industry13 Meihua Holdings Group Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 14

01

ESG Governance

Meihua Group has always regarded ESG governance as an

important engine for the high-quality development of an

enterprise. In the face of the iteration of global governance rules

and the upgrading of stakeholders' demands under the

guidance of the Board of Directors' strategy we have with

compliance as the bottom line and value creation as the guide

constantly optimized the whole chain of governance structure

and system deeply integrated ESG elements into corporate

governance and continued to promote the modernization of the

Company's governance capability to create sound and

sustainable long-term value for our stakeholders.Sustainable development strategy 15

ESG statement of the Board 19

ESG compliance governance 19

Main achievements in ESG 20

Dual importance assessment of issues 2115 Meihua Holdings Group Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 16

Sustainable development s trategy

The green action route The responsibility action route

Meihua Group combined the beautiful vision of "focusing on biotechnology and creating a better future" with the The green action route is our bottom line The responsibility action route is our foundation;

concept of sustainable development. The analysis was carried out through four strategic levels including the which guarantees that we minimize the impact it ensures that our trust with stakeholders on the natural environment and is the continues to deepen and is the premise for our

direction level target level path level and demand level which covered the external environment and background foundation of our development joint progress

analysis industry demand and peer benchmark analysis the analysis of stakeholders' demands and the analysis of

the Company's strategic development needs. It was combined with the United Nations' sustainable development

goals (SDGs). In the end we built our strategy of "Nurturing the Future GROWTH". The low-carbon action route The health action route

The low-carbon action route is our direction The health action route is our main battlefield

which helps us remain resilient in the face of which ensures that we can maximize the impact

the most significant risk of climate change and of the Meihua Group and is the core of our

Strategy of "Nurturing the Future GROWTH:" is the guarantee for us to clear future obstacles pursuit of sustainable development

The Company takes "developing the

technology of synthetic biology nourishing Sustainable development f oundation

people and the environment and achieving a

The technology of synthetic biology is the starting point of Meihua Group and our sustainable development action.harmonious future" as the strategic goal for In addition the process of sustainable development requires the cooperation of all stakeholders. In this process we

sustainable development and takes "Green also hope to convey the concept of sustainable development to everyone.Responsible Low-carbon and Healthy" as the Meihua Group focuses on being the world's leading amino acid enterprise and actively integrates ESG into the

four pillars of sustainable development fully Company's development strategy. We take into account the sustainable development of economy society and

integrating all sustainable development environment while pursuing economic growth. We continuously optimize and improve our ESG management

topics of concern to the Company's system and actively listen to and respond to stakeholders' opinions and needs. We are dedicated to mitigating the

impact on the environment and society in the process of bio-fermentation and bio-pharmaceutical business and

stakeholders and society. striving for the long-term sustainable development of the Company.Sustainable development management

ESG g overnance s ystem

To ensure the effective implementation of the Company's ESG development strategy the Board of Directors has

established a Strategy Committee that continuously monitors and ensures the effective implementation of

sustainable development-related strategies goals and policies and regularly reports to the Board of Directors

providing comprehensive data support and analytical basis for the Board of Directors to make decision.SDGs

The Strategy Committee of the Company's Board of Directors has established an ESG Leadership Group authorized

We obtain resources we need from the nature. Through the development of synthetic biotechnology we produce all the Sustainable Development Office as the dedicated department for sustainable development responsible for

kinds of amino acid products to ensure people's healthy lives and promote human's sustainable development. It promoting ESG concepts project establishment and performance management strongly driving the

allows each of us to care about and improve the environment achieving harmonious co-existence. implementation of the Company's sustainable development strategy. Meanwhile led by the Sustainable

Development Office the Company has established a cross-departmental ESG coordination mechanism in the form

of an ESG Working Group which gradually integrates ESG concepts into the routine management of departments in

Sustainable development pillars a top-down manner promotes the execution and implementation of the ESG strategy and thereby enhances ESG

management levels at the source of business.On the path of achieving a harmonious future for both people and the environment we need to take specific and Meihua Group continuously implements ESG-related work based on the Environmental Social and Governance

effective actions to ensure the realization of Meihua Group's ultimate goal. (ESG) Rules of Meihua Holdings Group Co. Ltd. The Sustainable Development Office continuously monitors policy

In addition we focus on both the internal and external perspectives of the Company. Starting from ourselves we do needs regularly updates and improves the indicator database and collaborates with various business departments

our best to pursue higher action results extend to our external world through the value chain and promote the to integrate ESG concepts into the Company's entire industrial chain operation management continuously

sustainable development of industry and society through cooperation to achieve the best action results. strengthening ESG organizational rights and responsibilities.17 Meihua Holdings Group Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 18

Meihua Group's ESG Governance Structure

Performance of the Board of Directors

During the reporting period the Company held 3 meetings of the shareholders 9 meetings of the Board of

Directors and 6 meetings of the Board of Supervisors. The Board of Directors deliberated a total of 58 topics or

items of which 1 was related to ESG.ESG g overnance measures

In 2024 guided by the Company's ESG strategy the Sustainable Development Office carried out the sustainable

development practices throughout the entire operational chain taking into account the actual business of the

Company and using the indicator management system as a starting point.Senior leadership Internal and external benchmarking

Implementation of Optimization of

ESG strategy indicator system

The Company's Chairman personally participates Continuously monitor changes in domestic and

in and promotes key sustainable development international accounting standards exchange

projects collaborates with experts from various regulatory requirements and ESG rating

fields to deeply discuss key topics such as climate standards while continuously optimizing the ESG

change and supply chain ESG management and Indicator Management System of Meihua Holdings

clarifies plans for advancing relevant specialized Group Co. Ltd. to guide the Company's ESG

areas to continuously implement the sustainable management.development strategy.Roles and Responsibilities of Members of the Board of Directors

Business integration Information transparency

Strengthening Strengthening

ESG management internal and external communication

Name Wang Aijun He Jun Liang Yubo Lu Chuang Liu Xinghua

Align business operations precisely with the ESG Timely disclose the Company's progress in

Director and Ge- Director and Deputy Independent Independent indicator system deeply integrate the concept of sustainable development to the public and

Position Chairman

neral Manager General Manager director director sustainable development into various business actively respond to and participate in

lines through enhanced training orderly carry out communication activities of various platforms and

ESG practice work and continuously strengthen institutions.Gender Female Male Male Male Male the normalization of ESG management.Age 53 51 61 45 58

Composition of the

Board of Directors19 Meihua Holdings Group Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 20

ESG statement of the Board Main Achievements in ESG

Commitment by the Board of Directors Participation in the Formulation of ESG Industry Standards

The Company and the Board of Directors always adhere to compliance governance and steady development

strictly follow the Code of Corporate Governance for Listed Companies of the China Securities Date of Release Released by Name of Standard

Regulatory Commission and the various requirements of the Shanghai Stock Exchange to continuously improve the

ESG management system. The Board of Directors attaches great importance to the significant role of ESG in the Greenhouse Gas Emission Accounting and

Company's long-term development actively fulfills its supervisory and decision-making responsibilities December 2022 China Biotech Fermentation Reporting Requirements—Bio-fermentation

continuously strengthens its supervision and participation in the Company's ESG affairs and actively integrates ESG Industry Association Production Enterprises

concepts into the Company's development strategy major decisions operational management and risk control

system so as to promote the Company's steady progress on the path of sustainable development and to create July 2023 Inner Mongolia Energy Consumption Quota for MSG Unit

greater value for its shareholders employees partners and society. Autonomous Region Products

December 2023 China Biotech Fermentation

Evaluation Standard of Energy-saving and

Board of Directors' Statement Industry Association Environmental Protection Benchmark Enterprises

in Bio-fermentation Industry

This Report is published by Meihua Group for the third year and aims to present the efforts and achievements of

Meihua Group in the fields of sustainability including environment labor and community and value chain to all State Administration for Water-saving Enterprise Fermenting Industry

stakeholders in an objective standardized transparent and comprehensive manner. The Company always insists December 2023 Market Regulation National (GB/T 32165-2023)

on integrating ESG concepts into its business operations and strategic layout continuously optimizing the Standardization Administration

governance system and enhancing the Company's risk management capabilities to achieve long-term stable

development. ESG Disclosure Guidelines for Chinese

2024 (not yet China Biotech Fermentation Bio-fermentation Enterprises

The Company's Board of Directors places great importance on ESG governance incorporates ESG into the publicly available) Industry Association ESG Evaluation Guidelines for Chinese

responsibilities of the Strategy Committee and regularly reviews relevant policies goals and implementation Bio-fermentation Enterprises

progress to ensure that various sustainable development measures are effectively promoted. The Company will

continue to strengthen information disclosure actively communicate with stakeholders and continuously improve

ESG management levels to support high-quality corporate development. Results of ESG Rating

This Report discloses in detail and truthfully the progress and achievements of Meihua Group's ESG work in

2024 and was considered and approved by the Board of Directors on March 17 2025.

ESG c ompliance g overnance

Meihua Group has always adhered to the principle of standardized operations has continuously optimized its

corporate governance system in strict accordance with the Company Law of the People's Republic of China the

Securities Law of the People's Republic of China the Code of Corporate Governance for Listed Companies and

relevant laws and regulations and has formulated the General Meeting of Shareholders Rules of Procedure the

Board of Directors Rules of Procedure the Board of Supervisors Rules of Procedure and the Independent Director

Working System. etc. defining the roles responsibilities and working procedures of the General Meeting of

Shareholders the Board of Directors the Board of Supervisors and the management so as to continuously

standardize work processes and effectively enhance the operational efficiency of the Board of Directors. The

Company strictly fulfils its information disclosure obligations in accordance with the Information Disclosure Honorary awards

Management System actively carries out investor relationship management strengthens interactive exchanges

with investors and fully guarantees investors' right to equal access to Company's information. In order to effectively China Track and ESG Forbes China

respond to various risks arising from changes in the external environment the Company gradually integrates ESG Sustainable Development Conference

concepts into all aspects of its management. By establishing a sound risk prevention and control mechanism the The Best ESG Practice Award Forbes China's Top 10

Company continuously improves its compliance governance level laying a solid foundation for sustainable for Listed Companies 2024 "ESG Inspirational Cases" for 2024

development. December 2024 September 202421 Meihua Holdings Group Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 22

Dual Materiality Assessment of Topics

Communication with Stakeholders Stakeholders Expectations and Requirements Communication and Response Methods

All along Meihua Group had been paying close attention to the needs and suggestions of the stakeholders Honor commitments Exchanges and visits

continuously improving its diversified stakeholder engagement mechanisms and communication methods to better Industry cooperation Information disclosure

understand stakeholder demands and accept their supervision. Open fair and impartial

The Company communicated with various stakeholders through various online and offline channels to understand Suppliers procurement

their concerns and expectations thereby helping the Company accurately assess the impact of its decisions timely contractors Fulfill contract according to law

adjust its strategic direction clarify its sustainable development strategy and material topics and ensure that the partners Public bidding

Company's ESG practices meet the needs of actual development achieving sustainable high-standard and Carry out project cooperation

high-quality growth.Drive the healthy development of the

industry

Stakeholders Expectations and Requirements Communication and Response Methods

Support social development Exchanges and visits

Returns and growth General Meeting of Shareholders

Care about vulnerable groups Information disclosure

Risk control Briefing

Health culture

Corporate governance Media communication

Energy conservation and emission

Shareholders Regularly disclose business in formation Internal communication Community

reduction

and investors General Meeting of Shareholders Mail and the public

Public welfare and charity

Report and announcement Official website

Green production

Return to shareholders positively Annual report

Green building

SSE e-interaction

Green materials

Wages and benefits Questionnaire

Health and safety Workers' Congress Economic performance Information disclosure

Smooth communication Staff's sports and culture activities Pollutant discharge News platform

Fair promotion and development Media Media project survey Compliance platform

opportunities Webinar

Employees Pay wages on time

Pay social security contribution

Establish an OHS management system

Improve career development channels

Organize employee training Materiality Analysis of Topics

In 2024 we once again conducted stakeholder survey to better understand stakeholders' concerns expectations

and demands regarding the Company's sustainable development. We used questionnaire surveys and expert

scoring methods to identify the Company's material topics from the dimensions of "financial materiality" and "

High-quality products Customer survey impact materiality."

Satisfying customer experience Customer service

Protect legitimate rights and interests Customer satisfaction management

Based on the 21 topics specified in the Shanghai Stock Exchange's Sustainability

Customers Requirement/Satisfaction survey Official website

Reporting Guidance by reference to the internal indicator system developed

Customer complaint handling Social media

Establishing a according to GRI standards TCFD framework and SASB accounting standards and

Annual review and assessment in combination with peer benchmark analysis we identified several

list of topics

material topics and established a list of sustainable development topics.23 Meihua Holdings Group Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 24

We used stakeholder survey methods such as questionnaire to collect internal and In this survey we collected a total of 423 questionnaires and completed the identification and evaluation of this

external information. We distributed questionnaires to stakeholders including year's topics of impact materiality according to the attention expectations and needs of various stakeholders for

customers shareholders suppliers contractors media community representatives the Company's ESG work including 7 highly material topics 9 medium-material topics and 4 low-material topics;

and partners request each stakeholder to score the materiality of the topic based on the and based on the analysis of the Company's business departments completed the identification and evaluation of

scale scope and likelihood of impact and collect relevant feedback. this year's topics of financial materiality including 9 highly material topics 3 medium-material topics and 8

Impact low-material topics.Based on the questionnaire collection results we assigned different weights to different

materiality

stakeholders calculated the impact materiality scores for the topics ranked the

assessment

topics according to the scores and set an impact significance threshold to determine

the impact materiality assessment results. Scatter Diagram of Meihua Group's ESG Material Topics

Staff

By using expert scoring methods we asked department heads from the Finance Combating cli-

mate change

Department General Manager's Office Chairman's Office and other business Product and Service

departments to assess the scope degree and likelihood of the financial impact of the Safety and Quality

topics on the Company and to identify and analyze the potential impact of the topics on Environmental Innovation

Financial the Company's financial situation in the short medium and long term. Compliance Pipeline Driven Pollutant

Emissions

materiality

Based on the financial impact assessment results we conducted a comprehensive

assessment Water Resource Waste Supply Chain

scoring of the financial materiality of the topics then ranked the topics according to the Utilization Disposal Security

scores and set a financial materiality threshold to determine the financial

materiality assessment results.By summarizing the assessment results of impact materiality and financial materiality of

Dual Circular Economythe topics we have drawn a scatter diagram of material topics and determined the

materiality disclosure framework for the topics.analysis

According to the results of the dual materiality assessment and the requirements of the

Data Security and Cus-

Shanghai Stock Exchange's Sustainability Reporting Guidance topics with financial tomer Privacy Protection

materiality involved in this Report will be disclosed according to the four-element Anti-unfair Competition

Determining framework of governance strategy impact risk and opportunity management and

the report indicators and targets while other topics will be disclosed according to regulatory Due Diligence

structure requirements and the actual situation of the Company.Social Contribution

Stakeholder Com- Science and

munication Technology Ethics Treat Small and Medium-sized

enterprises equally

Anti-commercial bribery

and anti-corruption

Rural Ecosystem and Bi-

Revitalization odiversity Conservation

Impact importance

Based on the results of the questionnaires we will further adjust the direction of our ESG work in a timely manner

and continuously improve our own ESG performance to meet the expectations and requirements of our

stakeholders.Financial importance25 Meihua Holdings Group Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 26

02

Prioritizing Products

As a leading global provider of amino acid nutrition and health

solutions Meihua Group always regards product quality and

customer service as a cornerstone for the survival and

development of the Company. The Company continues to

improve the whole-cycle management system covering R&D

production and customer service to ensure the product quality

through the whole process of quality control; protects

commercial secrets and customer privacy with standardized data

security protection mechanisms; insists on attaching equal

importance to innovation-driven and scientific and technological

ethics and meets customers' needs with high-quality products

and services to continuously inject vitality into the high-quality

development of global food and health industry.Product and service safety and quality 27

Customer rights protection 37

Data security and customer privacy 38

protection

Innovation-driven development and 39

technology ethics27 Meihua Holdings Group Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 28

Product and Service Safety and Quality Quality management s ystem

As a leading global provider of amino acid nutrition and health solutions Meihua Group always regards product Quality is the red line and the lifeline of business development. The Company strictly abides by the relevant laws

quality and service as a cornerstone for the survival and development of the Company. In the process of continuously and regulations of the People's Republic of China such as the Product Quality Law of the People's Republic of

expanding production scale and market share we constantly strengthen the quality and safety management system China the Food Safety law of the People's Republic of China and the Regulation on the Administration of Feeds and

relying on the rigorous R&D processes the comprehensive quality system and the continuously improving quality Feed Additives. Based on the relevant management system standards such as the GB/T19001 Quality Management

and safety risk prevention measures we strictly implement quality control standards to provide customers with System Requirements the ISO 22000 Food Safety Management System the BRC Global Standards for Food Safety

high-quality and trustworthy products and services. In 2024 we worked on three core directions of standardization of the Company has formulated the Integrated Quality Management Manual and related procedure documents. In line

daily management intelligent quality control and full-process quality monitoring and driven by technological with the Company's actual situation the Company updates internal systems such as the Quality Standard of

innovation we upgraded our quality and continuously optimized our quality management system to ensure safer Materials and Excipient Materials the Quality Standard of Products and the Inspection Guide of Products every

healthier and higher quality products for global customers contributing to the global food health industry. year promoting the coordinated advancement of quality standardization and process management

standardization. In addition relying on the problem database system the Company focuses on solving key quality

issues in business management to ensure the efficient operation of the quality management system.Governance - Quality g overnance s tructure The Company continues to promote the supervision of quality

certification and the replacement of certificates. All production

The Company continuously deepens the construction of the quality management system and has established a bases effectively maintained the effective status of the

multi-level quality governance structure. This structure is approved and supervised by the General Manager of the certifications of the ISO 9001 Quality Management System the

Company with coordination by the Production Technology Research Institute and the Quality Management ISO 22000 Food Safety Management System BRC International

Department and implemented by the Technical Management Office at the production base while continuously Food Safety System and the Feed Additive and Premixture Our product quality target

improving the quality management system to ensure that product quality commitments can be fulfilled. System (FAMI-QS) of the EU. Finished product

qualification rate

maintained at

Quality Management Department In 2024 Tongliao Base obtained certification for the

U.S. FSVP (Foreign Supplier Verification Programs) 100%

Determine annual goals and plans; further enhancing its ability to access international

formulate policies quality standards testing methods and conduct inspections markets.In 2024 the coverage rate of quality certification for the

Product Groups System Group Company's main products reached 100%.Quality Management Testing

Risk Analysis Inspection

Standards Implementation System Methods

The product quality certifications obtained

ISO 9001 Quality Management by Meihua Group include:

Technical Management Office System Certification

Execution: implement the quality standards and methods; process Correction ISO 22000 Food Safety Management The MUI-HALAL Certification of Indonesia

System Certification

Product System Testing Laboratory

Engineer Engineer Engineer Director BRC International Food Safety Halal certifications of the U.S. Malaysia

System Certification and other countries

Production Workshop / Procurementope-

Technical Management Office The Feed Additive and Premixture

rations and other business departments System (FAMI-QS) of the EU IP Non-GMO Certification

Production execution and support based Raw Mate- Process Product

on standards rial Testing Testing Testing

No major safety and quality incidents involving administrative penalties occurred in 2024.Customer

Group Company Branch Offices Production Line

Quality Strategy Target Market Demand29 Meihua Holdings Group Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 30

Strategy Note: we define short-term medium-term and long-term impact cycles as 1-3 years 3-5 years and more than 5

years respectively; large medium and low impact levels as serious moderate and slight impacts on the

Based on the current industry and the operational status of the industrial chain the Company assessed the risks Company's production and operations respectively; and high medium and low likelihoods of occurrence as very

opportunities and impacts it faces clarifying the strategic guidance direction. likely to occur more likely to occur and less likely to occur respectively.Risks/Oppor-

tunities Risks Risks Opportunities

Type Procurement risks Operational risks Policy risks Market opportunities Policy opportunities

The supply of major raw materials such as Inadequate quality control during the The regulations and policies related to Consumers are paying more Demonstrate outstanding

corn may experience quality fluctuations due production process such as improper control food feed additives and other attention to sustainable performance in regulatory

to climate and market supply and demand of fermentation process parameters and failure industries are constantly being products a sustainable raw compliance to obtain relevant

Description

of Risks changes such as droughts or supplier to address equipment malfunctions in a timely updated such as the improvement of material procurement certifications and qualifications

production issues leading to a decline in raw manner leading to product quality issues environmental standards and changes system such as purchasing such as organic product

material quality in additive usage norms which result organic raw materials may be certification and HACCP system

in products not meeting new established to meet market certification enhancing market

requirements demand trust

Financial Cost increase，Revenue decrease Cost increase，Revenue decrease Revenue increase Revenue increaseImpact Cost increase，Revenue decreaseImpact Medium to long-term

Period Medium to long-term

Medium to long-term Medium to long-term Medium to long-term

Degree of

? High High High High HighImpact

Likelihood of

中 Medium Medium Medium High MediumOccurrence

Value Chain

Segment Upstream operations operations operations Upstream operations operations

Affected

Establish strict procurement and inspection Improve quality management systems and Establish a regulatory tracking Collaborate with sustainable Continuously strengthen

processes improve the quality monitoring standards strengthen the monitoring mechanism to keep abreast of policy material suppliers to establish a compliance management and

system formulate recall plans and carry out production process; regularly maintain and developments; strengthen internal certification system; and actively apply for high-value

Counter quality culture construction update equipment; and enhance employees' compliance management and adjust promote the concept of certifications; and utilize

measures quality awareness and operational skills products and production processes in sustainable material products certification advantages for

advance; and actively participate in the market promotion and

development of industry standards advertising31 Meihua Holdings Group Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 32

Impacts Risks and Opportunities Process c ontrol

Products are the core carriers for an enterprise to establish itself in the market and Meihua Group deeply understands the In terms of process quality control the company has always adhered to the quality management philosophy of "

importance of product management. To maintain a competitive advantage in a complex and changing market prevention first" focusing on design raw materials personnel equipment and production processes. It has built a

environment the Company follows a management process of identifying assessing and responding to all aspects of the stringent and efficient control system strictly implementing process indicator control and improving the production site

risks and opportunities faced by its products and the resulting impact. according to the system requirements thereby reducing the defect rate and customer complaints.Meanwhile the Company closely follows the trend of intelligent development in the industry and continuously

With reference to market trends changes in consumer demand updates in industry standards and introduces automation and intelligent technologies in the production process. By widely applying automated

competitor dynamics identify the quality risks technology substitution risks and market competition risks equipment and deeply integrating intelligent systems the Company improves the controllability and stability of the

faced by the products. Based on the Company's strategic planning R&D capabilities and resources and in production process minimizes human interference and ensures the consistency and stability of product quality.conjunction with the direction of policy support and emerging market demand define and describe the

Identification market expansion opportunities product upgrading opportunities and brand enhancement opportunities

that the product will bring to the Company.Enhance On-site Control Implement the MES Alarm System

For identified risks or opportunities assess the key contributing factors such as shifts in consumer To Eliminate the Foreign Objects in Products To Strengthen Process Quality Control

preferences the speed of emergence of new technologies and adjustments in competitors' strategies.Analyze the potential major impacts covering sales profits market share customer satisfaction etc. as well The management and control of the foreign objects in food is a To accurately control the production process we have

Assessment as the time horizon of the impacts to determine whether they are short-term shocks or long-term trends. key point in ensuring product quality and consumer health. The established a comprehensive quality control table for the

Company attaches great importance to the management and production process to deeply analyze each control point and

control of major foreign object risk sources identifies risks based on the risk level of control points established a

according to processes and clarifies the key monitoring points hierarchical responsibility model. By monitoring data trends

In view of the risks formulate measures such as product quality management and control technological inspection frequency and operating procedures for each area. through reports we can promptly correct quality hazards

R&D follow-up and differentiated competition to enhance the Company's ability to respond to product risks. Since the implementation of GMP in the food workshop through effectively preventing potential issues.basic management of the production site and control of major

Response In view of the opportunities formulate strategies for product optimization market promotion and foreign object risk sources the Company has achieved In order to adapt to the trend of intelligent development and

partnership expansion to seize product opportunities achieve business growth and enhance brand value. significant results in foreign object management and control empower process quality control with technological innovation

with a year-on-year decline in foreign object issues. The we have taken the lead in implementing MES quality online

Company has systematically upgraded and transformed alarm system in the pilot factory of Jilin Base and gradually

Product Quality and Safety Management and Control Measures packaging equipment not only improving packaging efficiency

promoted it to other factories continuously pushing quality

but also reducing human intervention in the packaging process control towards automation and intelligence continuously

significantly lowering the risk of introducing foreign object and improving the overall process quality control level of the

The Company continues to improve the whole-chain quality traceability management system covering all aspects from ensuring the quality and safety of the product packaging stage. Company and laying a solid foundation for the stability and

raw material procurement manufacturing warehousing and logistics to sales to ensure that product quality is stable and improvement of product quality.up to standard. The Company promotes the linkage between quality and production module systems places the quality

control at the forefront of the production process advances intelligent automated and visual quality process control

ensuring the provision of safe and reliable products to customers.Incoming Material Management and Control

The Company carries out supplier quality management and control work 4 3% of Meihua Group's

based on the Supplier Quality Management Manual introduces qualified suppliers have passed product

and stable suppliers through strict selection on-site audits and irregular

quality related certifications

unannounced inspections firmly controlling the quality level of incoming

materials. The Company has established a risk identification and including

assessment mechanism for raw and auxiliary materials and conducts

graded quality management and control of suppliers based on the risk level

of materials. During the cooperation process the Company actively guides HACCP ISO 22000

suppliers in collaborative development conducts on-site inspections and

training for key suppliers assists suppliers in formulating rectification

FSSC22000 ISO 9001

plans and encourages them to continuously improve their quality

management level through product quality system certification further

solidifying the quality foundation of suppliers.During the reporting period the Company did not experience any quality incidents caused by supplier quality issues. A

total of 4 on-site inspections and training sessions were conducted for suppliers with a total training duration of 80 hours

and a total of 50 participants.33 Meihua Holdings Group Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 34

Product t esting Development of The Company vigorously promotes the development of quality culture that involves all

employees enhancing their skill levels through diverse quality training activities.q uality c ulture

Relying on the "Lighthouse Factory" construction project the Company integrates

Product quality testing 2024 quality management with the LIMS system to achieve real-time monitoring of quality

parameters throughout the entire production process placing quality control at the In 2024 the Company

forefront of the production process which significantly reduces the probability of conducted product quality "Quality Month" event Quality Analysis PK

unqualified products occurring during production and further enhances the stability training for employees

The coverage rate of and safety of the products. In 2024 the Group launched a "Quality Carry out quality analysis PK

product quality testing Month" event with the theme of "creating activities in all branches where

The Company regularly conducts quality testing of raw materials and products and quality with craftsmanship respecting problems will be deeply analyzed

100 has formulated the Quality Standard of Materials and Excipient Materials the Quality Accumulating principles and keeping standards" with the for the purpose of training and % Standard of Product and the Inspection Guide of Products for different types of guiding principle of "taking process as the consolidation.

products and carries out comprehensive incoming and outgoing management and 4 7295 core and equipment as the basis to ensure control to ensure that the products meet the quality standards. the best quality of products" aiming at

Taking Jilin Base as a pilot we upgrade the laboratory testing business personnel hours of training returning to principles strengthening Quality Knowledge Q&A

The pass rate of quality testing management equipment management consumable management and quality awareness and enhancing

for incoming products environmental management to an information-based system according to the CNAS employees' participation in quality. Through

Management System for Testing and Calibration Laboratories which eliminates the analysis and evaluation of quality Through the exceptionally popular

99.80 offline paper documents prevents human interference and ensures the authenticity incidents and testing incidents over the quality knowledge quiz employees % accuracy and efficiency of testing results through automatic data collection Involving years and quality quiz competitions will reap both quality knowledge

automatic calculation of testing processes automatic uploading of results and early internalize the sense of responsibility for and material rewards.warning analysis while optimizing efficiency and improving management levels. 2373 product quality issues to promote the The number of participants in the

construction of employee quality awareness activity reached 18495 with

In addition the Company formulates external inspection plans for all finished from top to bottom ensuring stable achieving full marks 914

products at the beginning of each year regularly sends products to internationally employees improvement in product quality.authoritative third-party organizations for comprehensive testing to assess food and

feed safety risks while benchmarking the accuracy of internal testing.Unqualified Products Management and Control Participation in Formulation of Public Policies

The Company has established the Unqualified Products Control System which clearly The finished product qualification rate While strengthening its own quality control the Company actively participates in industry exchanges and cooperation. Meihua

defines the management responsibilities and standards to strictly regulate the

Group is currently the member of the Industrial Fermentation Sub-Technical Committee of the Technical Committee 64 on Food

handling process of unqualified products including identification cause analysis

of Meihua Group 2024 Industry of Standardization Administration of China the China Biotech Fermentation Industry Association and other industry

and emergency handling so as to ensure that product quality risks are effectively 100 %

organizations and is deeply involved in the construction of industry standard systems. In 2024 the Company participated twice in

prevented and controlled.the formulation and revision of national standards and group standards.Product r ecall

Published by Name of Standard Status

The Company has established a comprehensive Product Recall Procedure to build efficient product recall mechanisms ensuring a rapid

response and proper handling of product quality risks.Ministry of Industry and Information

Amino Acids Amino Acid Salts and Analogues Published

Once a quality defect or safety hazard is identified the Company will immediately initiate the recall procedure to ensure the Technology of the People's Republic of China Part 9: L-proline

identification and comprehensive tracing of affected products. For recalled products the Company has set up a dedicated investigation

team to analyze the root cause of the problem track the progress of the incident handling and develop corrective and preventive

measures to avoid similar incidents in the future. In addition each production base regularly conducts product recall drills annually for National Health Commission National Food Safety Standards—General Hygiene Published

the purpose of verifying the ability of relevant departments to track risk products within the specified time and assessing the State Administration for Market Regulation Regulations for the Production of Food Additives

reasonableness and effectiveness of the recall procedure by simulating recall scenarios.In 2024 the Company conducted a total of 13 recall simulation drills

across all bases covering MSG Xanthan Gum lysine hydrochloride

Product recall2024 lysine sulfate protein powder and MSG residue further

strengthening employees' awareness of recalls and emergency

response capabilities.

13 354 100 In 2024 the Company proactively recalled a total of 354 tons of % products involving trehalose and valine. The reason for the recall was

simulation tons of products problem reso- a packaging sealing issue which could lead to product leakage and

moisture absorption. Through proactive recalls the Company has

drills recalled lution rate

reduced potential market impact achieving a problem resolution rate

of 100%.35 Meihua Holdings Group Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 36

Chemical s afety management Disclosure of Chemicals

Strengthening the safety management of hazardous chemicals is not only an important guarantee for the stable and sustainable The Company strictly follows the requirements for chemical safety management to establish and maintain a complete safety

development of enterprises but also a necessary measure to protect the life and health of employees and to maintain the ledger for chemicals and files with government departments in accordance with the safety ledger to ensure that government

ecological environment. The Company strictly adheres to national laws and regulations continuously optimizes the management reporting and review work complies with the relevant provisions of the Regulations on the Safety Management of Hazardous

system for the entire lifecycle of hazardous chemicals so as to ensure that all work meets the latest safety standards and Chemicals achieving 100% coverage of information disclosure and ensuring compliance and transparency.constantly improve the capability for chemical safety management and control.Hazardous Chemical Management System Indicator Unit 2024

The Company continuously improves the Regulations on the Safety Management of Hazardous Chemicals and has established a Proportion of chemicals identified/classified by the

Percentage 2.2%

comprehensive management mechanism for the entire lifecycle of chemicals including comprehensive control over the Company to all chemicals listed in the Hazardous

procurement storage application and disposal of chemicals involved in the production process so as to ensure 100% coverage Chemicals Information List (2024)

of the identification assessment and government reporting of all hazardous chemicals. From the source of hazardous chemicals

entering the Company to the end of proper disposal the Company implements strict control over the whole process and makes

every effort to ensure the safety of production personnel and the environment. Disclosure scope of chemicals Percentage 100%

Identification Classification and Assessment of Hazardous Chemicals Assessment scope of chemical hazards Percentage 100%

In 2024 the Company continued to promote the general survey of hazardous chemicals systematically identifying and classifying

physical dangers health risks environmental risks inhibiting poisoned inhibiting explosion highly toxic drugs etc. According to

the General Rules for the Hazardous Chemicals Warehouse Storage (GB15603-2022) and considering our actual situation the

Company further optimized the Taboo Matrix of Hazardous Chemicals to ensure the more scientific and standardized Substitution and Elimination of Chemicals

management of chemicals. Meanwhile the Company completed the re-certification work in accordance with the Regulations on

the Safety Management of Hazardous Chemicals and strengthened on-site management prepared and improved safety labels of The Company will continue to carry out actions for the substitution of high-risk chemicals and the elimination of chemicals

hazardous chemicals and applied QR code traceability functions to enhance information transparency and traceability. incorporating environmental and health standards into the product design process to promote sustainable development for both

the enterprise and the environment.37 Meihua Holdings Group Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 38

Customer r ights and interests protection Data s ecurity and c ustomer privacy protection

The Company always puts customers first adhering to the service philosophy of "Three Stabilities." The Company continuously Meihua Group deeply implements the Cybersecurity Law of the People's Republic of China and the Personal Information

improves the customer service system by controlling "stable quality stable supply and relatively stable price" to provide Protection Law of the People's Republic of China and continuously promotes data security and privacy protection. On one hand

customers with high-quality efficient and professional services build a win-win customer cooperation model enhance customer the Company continuously strengthens the security maintenance of external network access and implements strict management

satisfaction loyalty and cooperation stability and establish long-term stable and valuable customer relationships. and control over external network access; on the other hand the Company establishes internally a continuous dynamic and

fine-grained access control strategy based on users accurately allocating access permissions according to employees' job

functions and business needs so as to ensure that core data responsibilities are assigned to individuals and eliminate internal

and external information security risks to provide strong protection for the Company's confidential data and the privacy of

employees customers and other stakeholders.Customer Communication and Service

No information security and privacy Data Security and Customer

The Company has formulated the Sales Office Work Standard Manual to refine customer service processes and standards clarify leakage incidents occurred in 2024. Privacy Protection Measures

the different types of customer demands and ensure that contract management plan implementation financial management

and after-sales service are efficient and standardized throughout the entire process.To ensure high-quality service to customers the Company organizes special training for customer service positions every month.The training content includes job responsibilities product knowledge and communication skills helping customer service System construction Intranet isolation and access

personnel quickly and accurately answer customers' inquiries about product usage and storage methods. Meanwhile the control

Company emphasizes the cultivation of employees' service awareness. Through real case analysis employees gain a deep The Company formulates and strictly Establish an independent intranet system

understanding of customer needs enhancing the relevance and responsiveness of services. implements the Regulations on the to ensure the connection and access by

Management of the Use of Office authorized internal personnel effectively

In addition the Company values the professional quality of customer service and sales personnel formulates and implements the

Anti-Bribery Agreement and by providing training for all employees and signing agreements ensures strict adherence to the Computer and takes multiple security limiting unauthorized external access and

measures to ensure the confidentiality reducing potential security risks of

Company's Sales Standardization Manual to provide customers with open and fair services.integrity and availability of internal and customer data being obtained externally.customer data.Customer c omplaint management Office computer security Prohibiting the use of external

management storage devices

To ensure that customer complaints are handled properly and efficiently Meihua Group has formulated the Customer Complaint

Set strict access permissions for office To prevent data leakage and virus

Handling Process and set up a scientific tiered handling mechanism. Depending on the nature and severity of the complaint the

computers and employees can obtain intrusion the use of external USB drives or

Company will initiate corresponding level of handling process to investigate verify and resolve customer requests as quickly as

specific permissions in certain areas other external storage devices on office

possible significantly improving service efficiency and ensuring the timeliness of customer service while comprehensively

through a formal application process computers is prohibited and it is required

safeguarding the quality of customer service.ensuring that the flow of information to cut off the transmission path of data on

complies with the Company's data security unauthorized devices to avoid the outflow

89 policies. of customer privacy data through external Accept customer Complaint infor- Relevant departments customer complaints storage devices;

complaints mation classification launched an investigation

(including sales and division com-

Information security training

plaint data) was handled in 2024.Include information security in the

Archive complaint Reply to customer Issue complaint onboarding training for new employees

handling results processing results investigation report enhancing their awareness of information

Customer satisfaction rate 2024

security through on-site lectures case

studies and other methods.The Company conducts regular customer satisfaction surveys every year and by Questionnaires Rate

continuously collecting sorting out and analyzing customer complaints and service amount

requests and conducting reviews and summaries continuously optimizes service

processes to reduce the occurrence of complaints from the root cause thereby 1337 93.85

continuously improving customer satisfaction.Improvement of Logistics Planning Management Capability

Through the effective implementation of the Logistics Standardization Manual the Company has improved customer satisfaction

with delivery requirements. According to customer contracts and actual demands of customers the Company clarifies the

shipping plan flow and customer demands at the time of signing the contract reasonably arranges the shipping plan and utilizes

the TMS system to push shipping notifications and estimated arrival times ensuring that customers can track order progress in

real-time and make arrangement for receiving accordingly.39 Meihua Holdings Group Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 4 0

Innovation-driven development and R&D t eam building

t echnology ethics

The Company has always regarded R&D and innovation as the core driving force for enterprise development and deeply

Meihua Group is committed to becoming a leading enterprise in synthetic biology adhering to innovation-driven development recognized the key role of high-end talent in innovation and R&D. The Company has actively made a series of talent introduction

empowering a sustainable future through R&D and creating greater value for customers the industry and society. The Company and team building efforts to further expand the R&D team led by PhDs. By improving the talent attraction and training mechanism

continues to increase its investment in R&D deepen the study of core technologies such as biological fermentation and synthetic the Company continuously enhances the overall strength of the R&D team to consolidate its position in the industry.biology to create greener higher-end and more precise manufacturing and produce high-quality products that meet social needs By establishing close cooperative relationships with several well-known universities and research institutions the Company

and are environmentally friendly and continues to enhance product competitiveness and innovation and lead high-quality

accurately connects with high-end talent resources attracting outstanding PhDs with generous treatment and broad development

development of enterprises and even the industry through technological innovation contributing to human health and space. Meanwhile the Company is actively selecting and training potential researchers to inject fresh blood into the team.well-being.As of the end of 2024 the Company's innovation and R&D team has grown to over 20 members covering multidisciplinary fields

such as bioengineering microbiology chemical engineering bioinformatics and enzyme engineering. They possess rich

theoretical knowledge and practical experience and will leverage their expertise and innovative thinking to continuously drive the

Governance Company in product development and technological innovation helping the Company maintain a leading position in fierce

market competition.R&D g overnance s tructure As of the end of the reporting period the Company has formed a strong R&D team with 402 members accounting for 3.13% of

the total number of employees.Meihua Group actively promotes innovative development and continuously improves the management system for R&D and

innovation to fully stimulate the innovative vitality of all employees. In 2024 to standardize the full-process management of R&D

projects from strategic initiation to technical production implementation clarify the responsibilities of all relevant personnel

improve project success rates and ensure that R&D work is carried out efficiently and orderly the Company revised the Indicator Quantity Proportion

Full-Process Management Regulations for R&D Projects to promote collaboration among departments in identifying opportunities

rigorously validate the implementation process and effectively control risks to ensure the smooth advancement of R&D projects

providing a solid guarantee for the Company's continuous progress in technological innovation. Total number of R&D personnel 402 100%

The Company views innovation as a core driving force continuously optimizes the governance structure for R&D innovation and

has established a management model with the Chairman as the highest leader and with the collaborative operation at all levels. PhD 13 3.23%

Master 93 23.13%

1 The R&D division focuses on cutting-edge technology The R&D department of research and product innovation aligning with the 2 each base optimizes R&D

Company's strategy to drive technological breakthroughs. achievements in practice Bachelor 139 34.58%

The division also collects and analyzes problem feedback to promote the application

serving as the ultimate resolver for all technical of R&D achievements in

challenges. production. Junior college 157 39.05%

Supervision and Inspection

Chairman

Operation Layer Board of Supervisors

General Manager

Audit Committee

R&D Company Group Company

Audit Department

Environmental Environmental Environmental

Protection Office of Protection Office of Protection Office of Subsidiaries

Tongliao Base Xinjiang Base Jilin Base

Production Line External Verification

Workshops Agency4 1 Meihua Holdings Group Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 4 2

Strategy

Based on the R&D layout across the entire industrial chain Meihua Group has formulated a long-term technological innovation

strategy. In the future the Company will further connect the upstream and downstream industrial chains strengthen cooperation Note: we define short-term medium-term and long-term impact cycles as 1-3 years 3-5 years and more than 5 years

with raw material suppliers and product sales channels and achieve coordinated development of the industrial chain. Meanwhile respectively; large medium and low impact levels as serious moderate and slight impacts on the Company's production

the Company closely monitors industry trends and market demands and adjusts R&D directions in a timely manner to provide and operations respectively; and high medium and low likelihoods of occurrence as very likely to occur more likely to

strong technical support for the Company's sustainable development. occur and less likely to occur respectively.Risks/Oppor-t

Risks

unities Risks Opportunities

Type Technical risks Technical risks Technical risks Techinical opportunities Techinical opportunities

Due to the emergence of new technologies in the In the process of R&D in synthetic biology and During the process of transforming Breakthroughs in synthetic biology Strengthen the cooperation among

industry if the Company's process technology is other technologies due to technical R&D achievements into actual technology may bring new R&D enterprises universities and

Description not updated in a timely manner it may lead to low difficulties that cannot be overcome products or productivity there may directions and product innovation research institutions in the

of Risks/ production efficiency high energy consumption deviation in R&D direction etc. the R&D be challenges such as the difficulties opportunities for Meihua Group bio-fermentation industry to share

Opportuni-ti and uncompetitive product quality and costs projects fail to achieve expected goals such in realizing the production such as developing more efficient technology talents and resources

es as the failure of new amino acid product processes and the low market strains to improve product quality promoting overall technological

development. acceptance which can hinder and yield progress in the industry bringing

effective commercialization of R&D more innovative ideas and

achievements cooperation opportunities to

Meihua Group

Financial

Cost increase revenue decrease Cost increase Cost increase revenue decrease Cost decrease revenue increase Cost decrease

Impact

Impact

Period Medium to long-term Medium to long-term Medium to long-term Long-term Long-term

Degree of

Impact ? High High High High High

Likelihood of

中 Medium Medium Medium High MediumOccurrence

Value Chain

Segment Operations Operations Operations Operations Operations

Affected

Continuously monitor industry technology trends Increase investment in R&D to attract top Strengthen cooperation between Increase R&D investment and focus on Actively participate in industry

strengthen technology monitoring and early talents; strengthen cooperation with research R&D and production departments cutting-edge technology research; association activities to strengthen

warning; increase R&D investment accelerate the institutions to share resources and and consider the production strengthen talent training and communication and cooperation with

Counter pace of technological innovation; and strengthen technology; establish a scientific evaluation feasibility in advance; conduct introduction and build a high-quality peer enterprises; carry out

measures intellectual property protection to build mechanism for R&D projects to timely adjust in-depth market research to R&D team; and actively carry out industry-university-research

technological barriers research directions accurately grasp market demand; industry-university-research cooperation projects to share resources

and optimize the process of cooperation to accelerate and technology; and establish an

transforming R&D achievements to technological innovation and industry innovation alliance to jointly

improve transformation efficiency achievement transformation tackle technical challenges4 3 Meihua Holdings Group Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 4 4

Management of impacts r isks and o pportunities Achievements in t echnological innovation

To effectively manage the uncertainties in the R&D process the Company systematically manages the impacts risks and As a global leader in amino acid production Meihua Group's technological innovation achievements provide references and

opportunities related to R&D through three key steps: identification assessment and response. demonstrations for the development of the entire amino acid industry which strongly promotes technological progress and

industrial upgrading across the industry and makes the Company become an important engine driving the vigorous development

of the amino acid industry. The new strain of glutamic acid independently developed by the Company has shown remarkable

results in practical production applications reducing the production cost per ton by nearly RMB 100 significantly improving the

production efficiency and product quality.Identification Assessment Response

In 2024 the Company added 39 new patent authorizations with the newly acquired invention

patents involving the Company's core products such as glutamic acid lysine and threonine

By referencing the cutting-edge Assess the main driving factors of For the identified and assessed forming a full lifecycle intellectual property "moat" from product design R&D large-scale

technology trends and market the identified risks or opportunities risks develop countermeasures production to market promotion. As of December 31 2024 the Company had a total of 160 valid

demand dynamics identify the on a case-by-case basis such as such as technological R&D patents (including 109 invention patents 49 utility model patents and 2 design patents). The

technological risks market risks technology maturity market cooperation talent training and Company has achieved full coverage in the technical fields of strain design and modification

talent risks etc. faced in R&D. competition situation and the incentive mechanisms market fermentation process control and downstream processing.Meanwhile based on the Company's possibility of talent loss. Analyze the research and adjustments to Patent achi-

strategic planning and resource potential impacts it may cause marketing strategies to enhance the evements

reserves and in conjunction with including those on product Company's ability to withstand R&D

national technological innovation development cycles cost control risks. For opportunities develop

policies and industrial development market share and brand image as strategies to seize them such as

orientations define and describe well as the time frame of these increasing R&D investment

the innovation opportunities impacts. optimizing R&D resource allocation By continuously optimizing fermentation and extraction processes combined with its strong

product upgrade opportunities and and accelerating the transformation strain construction capabilities the Company can complete the performance iteration of a

new market development of achievements to fully utilize R&D generation of strains within 6-9 months significantly improving the production efficiency and

opportunities that R&D brings to the opportunities to promote the quality of products and thus further consolidating the Company's technological leadership in the

Company. Company's development. industry.Through continuous scientific research accumulation the Company has made breakthrough

progress in the independently developed strains of glutamic acid glutamine inosine guanosine

etc. and has achieved process verification and trial production of multiple new products. In

Indicators and t argets addition the Company continues to make new achievements in the production and application

Independent R&D of amino acids and polysaccharides with production technologies of each product at an

internationally leading level. The Company focuses on key links in the transformation of

The Company continues to increase R&D investment and focuses on innovation in synthetic biology technology to continuously of strains achievements working faster to promote the industrial application of scientific research

enhancing its technological strength in this field. In the future the Company will continue to explore globally leading synthetic achievements to enhance their industrial value. In 2024 the Company successfully achieved the

biology solutions to promote technological breakthroughs and industrial applications. iterative update of production strains for glutamic acid and glutamine with an additional annual

economic benefit of nearly RMB 100 million.In 2024 the Company's R&D investment reached RMB 733 million

accounting for 2.93% of its income from primary business.The Company is acquiring businesses and assets to add various amino acid categories and strains

such as arginine histidine citrulline ornithine and hydroxyproline and to obtain fermentation

strains and related patents for multiple amino acids. This will not only enrich the Company's

Introduction of product variety but also provide more technical support for the Company's future development.new strains4 5 Meihua Holdings Group Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 4 6

R&D and innovation c ooperation Intellectual property s ystem

Industry-u niversity-r esearch c ooperation As a company centered on technological innovation Meihua Group places great importance on intellectual property protection

viewing it as a core component of its corporate strategy.The Company implements comprehensive Intellectual Property Management and Protection Regulations to establish

Meihua Group has always adhered to an open and innovative development philosophy unwaveringly deepening its cooperation standardized patent review and application processes with dedicated intellectual property assessment and protection measures

with top research institutions and universities at home and abroad. By building a deeply integrated cooperation platform the at all key stages from project establishment to achievements transformation and by applying for patents in a timely manner for

Company actively introduces cutting-edge international technologies and advanced concepts working together to carry out

new technological innovations and R&D achievements to ensure effective protection of core technologies. Meanwhile the

pioneering research projects. Company established a dedicated intellectual property management department which is staffed by professional managers and

Currently the Company has established long-term and stable cooperative relationships with top universities and research responsible for patent applications maintenance and rights protection.institutions in the industry such as the Chinese Academy of Sciences Center of Excellence in Molecular Plant Science the Institute To enhance the awareness of intellectual property protection among all employees the Company regularly provides patent

of Microbiology of the Chinese Academy of Sciences and Jiangnan University. All parties are conducting joint technological knowledge training and carries out internal publicity to regulate employees' R&D behavior and prevent infringement risks. At all

research on key scientific issues in the field of intelligent biomanufacturing striving to promote relevant technological

stages of R&D activities the Company actively carries out intellectual property searches and infringement risk analyses respects

breakthroughs and industrialization. During the cooperation process the Company actively engages in talent exchange activities others' intellectual property rights and promptly identifies and corrects potential infringement issues.with universities and research institutions jointly implementing R&D cooperation projects fully integrating and utilizing external

high-quality research resources and high-end talent advantages which has significantly accelerated the Company's technological

innovation pace and greatly enhanced its research strength and industry influence in the field of synthetic biology.In the face of external competition Meihua Group resolutely safeguards its own intellectual property rights. In 2024 the

Company won the first-instance lawsuit for the "Sanxan Gum" patent (Patent No.: 201911374275.0) which not only

protected the legitimate rights and interests of the enterprise but also set a positive example for the industry promoting

Business c ooperation with enterprises the entire industry to pay attention to intellectual property protection.In the field of product cooperation Meihua Group has established a stable partnership with the globally renowned company

Ajinomoto for threonine and lysine products. Both parties based on the principle of complementary advantages carry out

technical exchanges and discussions and market promotion on related products and works together to calmly cope with the Meihua Group will continue to increase investment in R&D cultivate professional talent continuously strengthen technological

innovation and launch multiple new products and technologies with independent intellectual property rights enhancing core

intense market competition jointly promoting the steady development of the industry.competitiveness and providing strong support for the sustainable development of the enterprise.Construction of R&D and Innovation Platform Technology ethics

Meihua Group actively builds an automated and intelligent synthetic biology R&D platform to provide better hardware and Meihua Group attaches great importance to technology ethics issues ensures compliance with relevant laws and regulations and

software support for technological innovation. social ethical standards during the process of technological innovation and actively assumes social responsibility for

technological innovation. On this basis Meihua Group will continue to strengthen technology ethics related training and publicity

The Company continuously optimizes and upgrades its existing high-level support platforms and enhance the accuracy and raise the awareness of technology ethics among all employees ensure that R&D activities are legal fair and sustainable and

efficiency of the metabolic pathway design platform to enable the strain construction platform to rapidly develop actively prevent and respond to negative events.high-performance strains; the enzyme engineering modification technology platform will achieve deeper modifications of

enzymes improving their activity and stability; in terms of product application development platforms the Company actively

expands into new application areas to launch more innovative and competitive products; the precision fermentation technology In 2024 no negative events related to technology ethics occurred at Meihua Group.platform will make significant breakthroughs in fermentation processes increasing fermentation yields and product quality.4 7 Meihua Holdings Group Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 4 8

03

Environmental Protection

Meihua Group always adheres to the concept of green and

low-carbon development strictly follows laws and regulations

in addressing climate change water resource utilization

pollutant discharge waste management and biodiversity

protection. By establishing standardized management

processes and empowering them with information

technology the Company continuously strengthens the

normalized management of environmental protection

improves the level of environmental governance continuously

enhances resource utilization efficiency reduces

environmental impact actively takes measures to address

climate change helping build a sustainable ecological system.Addressing climate change 49

Environmental compliance 57

management

Green packaging materials 66

Biodiversity conservation 664 9 Meihua Holdings Group Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 50

Addressing c limate c hange Strategy

The Company actively conducts climate risk analysis and responses identifies physical and transition climate risks based on its own

Governance situation assesses the time frame of their occurrence and their impact on the Company and takes targeted measures in response to the characteristics of various climate risks.The Company attaches great importance to climate change related risk management and carried out climate change risk and Physical Risks

opportunity analysis based on macro policies the Company's strategic planning production and operations on a regular basis. It

has formulated the Management Measures for Addressing Climate Change and Sustainable Development and other systems

clarified the responsibilities of all levels in addressing climate change and proactively integrated climate change into the Acute risks Countermeasures

Company's development strategy major decisions and production and operation. Short-term sudden extreme weather events such as 1. Develop emergency response plans for flood and

The Strategy Committee is responsible for the Company's climate change responses and holds regular meetings on relevant typhoons floods snowstorms and high temperatures high-temperature situations. 2. Closely monitor

matters. The Sustainable Development Office under the Strategy Committee communicates with the Board of Directors on climate which may cause damage to Company's infrastructure information released by meteorological departments and

change in a timely manner. production interruptions transportation disruptions and pay attention to weather warning information. 3. Increase

other property losses while threatening the health and the installation of extreme weather defense equipment and

safety of employees. facilities.Chronic risks Countermeasures

The company's main raw material corn has strict 1. Pay attention to geographical and climatic information

requirements for its growing environment. An increase in and adjust production strategies in a timely manner. 2.average temperature may lead to water shortages and alter Gradually conduct water risk analysis and assessment and

the growth cycle and suitable planting areas for corn in the future incorporate water risk management into the

affecting the Company's normal production operations. Company's overall risk management.Transition Risks

Policy and legal risks Countermeasures

Regulatory requirements are becoming increasingly 1. Closely monitor the domestic and international climate

stringent and national and local governments are change policy dynamics and timely adjust the Company's

successively introducing relevant policies leading to an strategy and business model. 2. Actively promote the use of

increase in compliance risks for the Company during its renewable energy and expand the utilization of solar and

low-carbon transition. wind energy. 3. Implement technological upgrades and

energy recovery projects to reduce energy waste at all

stages and utilize energy more effectively and rationally.Technical risks Countermeasures

Investment risks caused by the failure of R&D of low-carbon 1. Focus on the latest developments and applications of

new technologies. energy-saving technologies in the bio-fermentation

industry and conduct feasibility analysis for technology

replacement while weighing technology maturity

investment costs and expected returns and introduce

advanced energy-saving equipment.Market risks Countermeasures

Customer preferences favor low-carbon products. 1. Timely adjust business models and strategies through

Climate change leads to higher raw material and energy the R&D of environmentally friendly and low-carbon

costs which in turn leads to higher product prices. products. 2. Jointly promote low-carbon transition in the

supply chain through supply chain coordination transition

ensuring the stability and sustainability of raw material

supply.Reputation risks Countermeasures

Stakeholders' concerns about climate change continue to 1. Regularly publish ESG reports to disclose the Company's

rise; failure to actively respond to climate change may efforts and achievements in addressing climate change. 2.affect the overall evaluation of the Company in the market Actively participate in climate action initiatives and green

leading to reputational damage. projects to enhance social image and reputation.51 Meihua Holdings Group Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 52

Strategy Management of impacts r isks and o pportunities

Opportunities The Company manages the risks opportunities and corresponding impacts brought by climate change from three aspects: identification response and assessment.New product opportunities Countermeasures

Climate change has led to the popularity of low-carbon 1. Continuously pay attention to the dynamics of market Referring to the disclosure framework recommended by the Task Force on Climate-related Financial

products and increased demand for new products. demand launch new product development plans and Disclosures (TCFD) identify the physical risks transition risks and opportunities faced by the

develop low-carbon products. Company and define and describe the risks and opportunities brought by climate change based on

Identification the Company's actual situation with reference to national laws and regulations policy

requirements and domestic and international sustainable development trends.Resource efficiency Countermeasures

Use efficient equipment or intelligent energy management 1. Build an integrated energy management system to

systems. monitor energy in real time thus improving the efficiency

of resource use.Assess the primary climate-related drivers of identified risks or opportunities on a case-by-case

basis as well as their potential major financial impacts and the time frame of those impacts.Assessment

Risks/Op- Type Financial Impact Degree Likelihood of Value Chain

portunities Impact Period of Impact Occurrence Segment Affected

Develop countermeasures to ensure that the Company has sufficient capacity and resources to

Upstream

Cost increase address risks and seize opportunities from climate change.Acute risks Short-term High Medium operations

revenue decrease Response

downstream

Physical

Upstream

risks Chronic risks Revenue decrease Medium to Medium Low operations

long-term downstream

Indicators and t argets

Policy and

Cost increas Medium-term Medium Medium Operations

legal risks In the context of nation efforts promote carbon neutrality in 2020 Meihua Group actively responded to the National call and took

the initiative to do various work to address climate change risks. According to the carbon neutrality vision target of the 14th

Technical risks Increase in Medium-term High Low Five-Year Plan which aims for a reduction of 18% in carbon dioxide emissions per unit of GDP by 2025 compared to 2020 the Operations

operating costs Company has developed the strategy aimed at addressing climate change and reducing greenhouse gas emissions between 2020

Transition and 2025 and clarified the specific objectives work tasks assessment and incentive methods of the whole Company to ensure

the effective implementation of specific work.risks Market risks

Cost increase Medium-term Medium Low Operations

revenue decrease Meihua Group has set the greenhouse gas reduction targets: using 2020 as the base year aiming for a 20% reduction in carbon

dioxide emissions per RMB 10000 of output value by 2025. As of the end of the reporting period the interim target of a 16%

reduction by 2024 has been achieved.Reputation risks Revenue decrease Short to Low Low Operations

medium-term

During the reporting period the Company's greenhouse gas emissions were as follows:

Upstream

New product Revenue increase Long-term High Medium operations

Opportu- opportunities Indicator Unit 2024downstream

nities Resource

Cost decrease Long-term High High Operations

efficiency Total GHG emissions tCO2e 9030482.02

Note: we define short-term medium-term and long-term impact cycles as 1-3 years 3-5 years and more than 5 years Scope 1 tCO2e 8692810.04

respectively; large medium and low impact levels as serious moderate and slight impacts on the Company's production Meihua Group adheres to the business philosophy of "full-staff operation creation and sharing" and follows the

and operations respectively; and high medium and low likelihoods of occurrence as very likely to occur more likely to management principles of "Three Fair and One More" and "Three High and One Low" that is to say we pursue the

occur and less likely to occur respectively. Scope 2 tCO2e 337671.98

Emission intensity tCO2e/RMB 100 million 360.2253 Meihua Holdings Group Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 54

Indicators and t argets Energy-saving and c arbon r eduction measures

The energy consumption indicators for the Company in 2024 were as follows: Meihua Group actively implemented the climate adaption strategies and carried out actions to address climate change risks. The

Company strived to reduce greenhouse gas emissions and continuously improved its ability to cope with climate change risks from

both the supply and usage sides through management optimization equipment upgrading technological transformation and

process optimization and clean energy substitution

Key Performance Unit 2024 Under the guidance of the national carbon peak and carbon neutrality Meihua Group insists on equal emphasis on both

technology and management and continues to reduce the energy consumption of products. Based on the concept of sustainable

development of green synthetic manufacturing we encourage all employees to make reasonable suggestions on energy

Total energy consumption tce 3677671.00 conservation and carbon reduction and reward the proposers of rationalization proposals that have achieved significant results

after implementation in accordance with the regulations.Direct energy tce 3540405.97

Coal tce 3533179

Gasoline L 69849

Diesel Ton 315

Natural gas cubic meter 7662165

Indirect energy tce 137265.03

Electricity MWh 1116883.92

Energy-saving and emission reduction training

Clean energy usage KWh 304874044.71 In order to enhance the professional capacity of employees in addressing climate change risk and promoting energy-saving

and carbon reduction Meihua Group conducted a series of training activities throughout 2024 on energy-saving strategies

relevant policies and standards. The training content included the interpretation of the national carbon neutrality

Energy use intensity development trend the energy-saving and energy-reduction strategies of the same industry the current energy

GJ/RMB 1 million 4293.92

(calculated per RMB 1 million of operating income) consumption situation of the Company and the energy-saving and energy-reduction planning strategies. The number of

participants reached 200 and the total training duration reached more than 800 hours.Carbon reduction by supply chain coordination

Meihua Group is actively engaged in carbon reduction initiatives and views the supply chain as a key component of its

carbon reduction efforts. The Company understands that the effectiveness of carbon reduction in the supply chain has a

profound impact on achieving overall carbon reduction goals and actively promotes supplier participation in carbon

reduction initiatives.During the reporting period the coverage of the supplier carbon reduction plan is as follows:

Indicator Unit 2024

Coverage of supplier carbon reduction plan Percentage 42%55 Meihua Holdings Group Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 56

Energy-saving and c arbon r eduction measures Carbon reduction by energy supply technical transformation

The Company deepens its green production system to promote energy-saving transformation alongside

Carbon reduction by optimization of production processes clean energy alternatives.Energy-saving transformation

Energy-saving transformation project of synthetic ammonia steam pipe network and air At the Xinjiang Base by implementing the low-pressure steam pipe network operation optimization project for heating

separation turbine station the overall steam consumption rate of the power plant was reduced by 0.2 Kg/kWh by precisely adjusting the

Although the pressure of the low-pressure steam pipe network for the synthetic ammonia air external supply pressure parameters. It is estimated that the annual standard coal would be saved by 33800 tons and the

compressor meets the production demand of the original unit the steam consumption of the air carbon emissions will be reduced by 87800 tons

separation turbine is too high. This project aims to address the high energy consumption of the

turbine and ultimately achieve carbon reduction goals. In 2024 the Company optimized the

Technological steam pipe network and the air separation turbine along with its auxiliary equipment taking PV power generation

nearly one year and with a total investment of approximately RMB 13.4 million. After the

transformation

improvement the steam consumption per unit decreased saving about 16000 tons of standard In 2024 the Company actively responded to the call of the national clean energy development strategy and built PV

coal. power projects in Tongliao and Jilin Bases respectively in line with the concept of green and sustainable development.The contracts have been signed and the projects have entered the execution phase with clean energy being gradually

introduced into the plant's PV power generation showing significant results. After being put into operation the total

annual electricity generation is expected to be 35.52 million kWh with an estimated annual reduction of carbon

emissions by 10900 tons. Meanwhile the PV project at the Xinjiang Base has fully connected to the grid for power

Optimization of Xanthan Gum process at Jilin Base

generation in its two phases continuously increasing the proportion of clean energy and injecting green momentum into

A new Xanthan Gum factory was established at Jilin Base utilizing a continuous extraction

the energy supply system for production thereby solidifying the foundation for low-carbon transformation through

process and replacing single-effect evaporators with multi-effect evaporators resulting in an 11%

multiple pathways.reduction in product steam consumption and an annual steam saving of 54000 tons. It is

expected to save 7700 tons of standard coal throughout the year reducing carbon emissions by

20000 tons.

Carbon f ootprint c ertification

Optimization of Optimization of Xanthan Gum process at Xinjiang Base In 2024 Meihua Group continues to promote green certification work for product carbon footprints and water footprints. After the

The Xanthan Gum extraction process at Xinjiang Base was enhanced by upgrading equipment certification of MSG and lysine products the Jilin Base has completed the carbon footprint and water footprint certification for

xanthan gum improving single-effect and double-effect towers to a three-effect tower successfully reducing food-grade and industrial-grade xanthan gum products. Tongliao Company has simultaneously carried out carbon footprint and

product steam consumption with an expected annual saving of 42551.2 tons of standard coal. water footprint certification work for MSG products and obtained certificates marking a further advancement in the Company's

process sustainable development efforts.Carbon footprint verification for xanthan Carbon Footprint Certification of MSG

gum products in Jilin Base Products of Tongliao Base

Energy-saving technical transformation of starch boiler

In 2024 Xinjiang starch workshop boiler added a set of evaporating tower system where the

waste heat from flue gas will be recovered through a heat exchanger. The recovered steam will be

used for evaporative purposes replacing the use of live steam. The project has been completed

and the tail gas recovery heat can save steam volume of 9T/h per hour. It is estimated that 10000

tons of standard coal will be saved and 2.6 tons of carbon will be reduced.Waste heat

recovery system

The carbon footprint of MSG products is

2.46tCO.e/t.

Each production base produces high-pressure steam using fuel coal at the heating station which

is then used to generate electricity for various workshops. The low-pressure steam generated is

used for sterilization in fermentation workshops and for concentration and distillation in

extraction workshops. The primary condensate is returned to the power plant to produce

Heat and power high-pressure steam achieving the purpose of carbon reduction.cogeneration The carbon footprint is 10.53 tCOe/t for

food-grade xanthan gum and is 10.87 tCOe/t

system for industrial-grade xanthan gum.57 Meihua Holdings Group Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 58

The Company has established a tiered salary performance assessment standard for employees related to environmental

Environmental c ompliance management protection based on the corporate salary management system and using the number of key point alarm occurrences as an

important assessment basis conducts phased assessments annually quarterly and monthly. Relying on the Company's problem

database business departments can carry out projects targeting key issues and set project incentives to motivate employees

Except for Tongliao Base Xinjiang Base and Jilin Base other wholly-owned subsidiaries of the Company are not key pollutant ensuring that environmental protection requirements are implemented.discharge entities as classified by the environmental authorities. Those subsidiaries include Langfang Meihua Condiments Co.Ltd. and Tongliao Meihua Condiments Co. Ltd. which are engaged in the packaging and sales of condiments; Lhasa Meihua

Bio-investment Holdings Co. Ltd. which is engaged in external investment; Xinjiang Base Investment Company which is engaged

in the foreign sales of products and the import and export of goods; Meihua Group International Trading (Hong Kong) Limited

which is a trading company responsible for exporting the Company’s products; Meihua (Shanghai) Biotech Co. Ltd. which is

engaged in technology development.The three key subsidiaries under Meihua Group are classified as key pollutant discharge entities by the environmental authorities.The pollutants discharged mainly include wastewater and waste gas. The key monitoring indicators for waste gas are fume SO2

and NOx and those for wastewater are COD and ammonia nitrogen. During the reporting period the verified total discharge of

Tongliao Base Xinjiang Base and Jilin Base did not exceed the permitted total discharge and the pollutant discharge

concentrations at all discharge outlets are within the national limits. Environmental management measures

The Company continuously strengthens the normalization of environmental protection management and improves management

Governance efficiency by establishing standardized management processes and applying information technology.Environmental management s ystem Building an environmental management table:

Meihua Group strictly complies with the requirements of the Environmental Protection Law of the People's Republic of China and automatically publish inspection tasks every day staff can report relevant hidden dangers online and automatically

other laws and regulations and has developed a series of internal management systems based on the Company's actual situation. generate analysis curves to strengthen normalized management and control.At the company level it has issued systems such as the Management System for Stable Odor Compliance the Management System

for Stable Operation of Sewage Workshop and Hazardous Waste Management Regulations (Trial); each production base has

developed internal documents such as the Environmental Management System Water Intake and Discharge Management System

Pollutant Discharge Management System Environmental Protection Monitoring System and Energy Saving and Consumption Building an environmental management diagram:

Reduction Management System in accordance with the Company's environmental protection requirements; Jilin Base has

formulated the Environmental Facility Inspection Management Regulations and Environmental Hazard Management Regulations establish an environmental monitoring platform to view the online data of the outlet the operation status of

based on the operation of the MES system launched in 2024 to improve the existing management systems. In 2024 the environmental protection facilities the alarm information of key points and the real-time monitoring of special

environmental protection office of each base strictly implemented the Company's requirements and compiled the environmental inspections so as to improve the level of refined environmental management.management systems further enhancing the comprehensive level of the Company's environmental management ensuring that

the Company's environmental protection work is governed by regulations. Each production base effectively implements

environmental management in accordance with the principles of "prevention first source control terminal treatment discharge

to standard" and "whoever is in charge is responsible." Relying on the key point graded alarm program:

realize the graded response of environmental risks make the key points return to the standard quickly through the

step-by-step alarm and solve the problems that are difficult to solve in the workshop through the planned disposal.Chairman Supervision and Inspection

General Manager Operation Layer Board of Supervisors

Environmental management s ystem c ertifications

Deputy General Manager (Production)

Audit Committee In 2024 the Company organized and

Production Technology Research Institute successfully passed the environmental

Group Company

management certification achieving 100%

HSE Management Department

coverage of the ISO 14001 environmental

Audit Department

management system certification.Environmental Environmental Environmental

Protection Office of Protection Office of Protection Office of

Tongliao Base Xinjiang Base Jilin Base Subsidiaries ISO 14001

External

Production Line Verification Agency System Certification

Workshops59 Meihua Holdings Group Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 60

Strategy

Based on the current industry and the operational status of the industrial chain the Company assessed the risks opportunities

and impacts it faces clarifying the strategic guidance direction.Note: we define short-term medium-term and long-term impact cycles as 1-3 years 3-5 years and more than 5 years

respectively; large medium and low impact levels as serious moderate and slight impacts on the Company's production

and operations respectively; and high medium and low likelihoods of occurrence as very likely to occur more likely to

occur and less likely to occur respectively.Risks/Oppor-t

Risks Opportunities

unities

Type Environmental pollution risks Physical risks Risk of changes in environ- Opportunities for innovation Resource efficiency Policy support opportunities

mental protection policies of environmental technology

The Company generates a large

amount of high-concentration

Description organic wastewater fermentation The Company faces local Tighter environmental The innovation and application of The government may introduce

of Risk residues and other pollutants water scarcity or drought protection policies may Use efficient equipment or environmental technology can relevant policies to support the

during its production process. If not etc. which may affect its lead to higher standards intelligent energy management enhance the environmental environmental protection and

treated properly they will pose a systems.normal operations and and requirements for performance of sustainable development of the

significant threat to the increasing its costs. enterprises.。 biogas fermentation industryenvironment and result in high

pollution treatment costs.Financial Cost increase Cost increase Cost increase Revenue increase Cost decrease Revenue increase

Impact

Impact Medium to long-term Medium-term Medium to long-term Long-term Long-term Medium to long-term

Period

Degree of

? Large Medium Medium Large High MediumImpact

Likelihood of

中 Low Low Medium Medium High Medium

Occurrence

Value Chain

Segment Operations Operations Operations downstream Operations Operations Operations

Affected

By strengthening the R&D

and application of Increase investment in R&D to

environmental protection promote the innovation and Build an integrated energy and Adopt modern technology and Improve water use Closely pay attention to policy

Counter application of environmental water management system to strict environmental protection efficiency and promote technologies improve trends and actively apply for policy

measures technology improving the monitor energy and water in measures to reduce pollutant water resource recycling. the environmental preferences and subsidies to reduce environmental performance of real-time thus improving the

discharge. performance of products corporate costproducts and market efficiency of resource use.to meet policy

requirements competitivenes61 Meihua Holdings Group Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 62

Management of impacts r isks and o pportunities Utilization of water r esources and water c onservation measures

Environmental protection s pecial audit Water management s ystem

To promote the Company's green development the Company's Audit Department leads the environmental protection special The Company strictly implements the Management Measures for Water Resources of Meihua Group and in combination with the

audit every year. Before the audit a targeted plan will be developed to clearly define the audit scope covering production office sustainable development governance system continues to improve the three-level water resources management structure of the

areas and ancillary facilities. During the audit staff will go to the front line to check the operation of environmental protection Company production bases and production units to strengthen the coordinated management and control capabilities of each

equipment pollutant discharge status and review the environmental protection documents. This initiative aims to accurately production base and production unit.identify the loopholes in environmental management urge rectification reduce environmental risks enhance management In terms of water resource utilization by optimizing production processes recycling water and promoting efficient water-saving

levels and support the Company's sustainable development. technologies the Company enhances water resource efficiency to achieve water conservation effectively controlling

water-related risks and creating a water-saving enterprise thus protecting water resources through practical actions.In addition the Company continuously strengthens water resource compliance management to ensure that all bases strictly

Risk management and emergency r esponse plan adhere to relevant laws and regulations. The Company has established a relatively complete Management System for Stable

Operation of Sewage Workshop and the Environmental Protection Office and workshops strictly implement the standard system

The Company complies with the requirements of the Emergency Response Law of the People's Republic of China the National

Environmental Emergency Response Plan the Environmental Protection Law of the People's Republic of China the Water to assess the abnormal discharges from the workshops.Pollution Prevention and Control Law of the People's Republic of China and the Air Pollution Prevention and Control Law of the In 2024 all bases of Meihua Group continued to maintain a record of no water-related violations.People's Republic of China to prevent and actively respond to potential environmental emergencies handle such emergencies in a

rapid affective and orderly manner and maintain the normal work order of the Company. In accordance with the latest national

laws and regulations as well as relevant requirements Meihua Group observes the principle of "prioritizing prevention and Identification and impact of Water r esource u tilization indicators

self-rescue unifying command and coordination implementing accountability and combining corporate self-rescue and social water r esource r isks

rescue" based on its actual situation in a bid to avoid and minimize the impact of emergencies on personnel equipment property

and in particular the environment. The Company strives to improve its capabilities for reducing environmental pollution In 2024 Meihua Group continued to strengthen water 2024 Key Performance

preventing accidents emergency responses and aftermath handling. Tongliao Base Xinjiang Base and Jilin Base have all resource management deepened water resource risk

developed emergency rescue plans for environmental pollution accidents filed them with the local environmental authorities identification and optimized the utilization strategies

and organized emergency drills according to the requirements every year. to improve water resource efficiency and reduce the Total water intake 35361776 Ton

The Tongliao Base Xinjiang Base and Jilin Base have all developed emergency rescue plans for environmental pollution operational impact on the water environment.accidents which have been filed with the local environmental protection bureaus and organize emergency drills annually as Through the water risk analysis tool of the World

required. Resources Institute (WRI) the Company has Total water consumption 54980998 Ton

reassessed the water resource risks of all operational

bases. The results show that due to the geographical

Indicators and t argets limitations of the Company's production bases water Water resource recycling amount 18023399 Ton

extraction still mainly comes from high-risk areas

and the proportion of crops procured from areas with

Alternative water usage

Key Performance Unit 2024 high or extremely high baseline water pressure has 2000 Ton

not changed significantly. These challenges prompt

the Company to further optimize water resource Proportion of water intake from high-risk

Investment in environmental RMB 10000 6851 management strategies and adopt stricter areas

100%

protection funds water-saving measures. The Company will further

strengthen water resource performance Percentage of crops purchased from areas

Pollutant monitoring compliance management regularly assess water resource usage with high or extremely high baseline water 100%Percentage

rate 100% and promote targeted water-saving measures at each pressure

production base.Environmental Violations Case 0 Water f ootprint c ertification

Water Footprint Certification of Water Footprint Certification of

MSG Products of Tongliao Base xanthan gum Products of Jilin Base63 Meihua Holdings Group Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 64

Wastewater management Treatment of o rganized o dors

All three bases have installed online monitoring equipment at their wastewater discharge outlets which are interconnected and In treating organized odor emissions the Company uses a combination of advanced treatment technologies including dedusting

conduct regular third-party testing with pollutant discharge indicators meeting standards. washing cooling and dewatering catalytic oxidation cryocondensation DDBD (double dielectric barrier discharge)

photoelectrocatalysis activated carbon adsorption and biological deodorization. All odors are discharged through three to nine

The Tongliao Base Xinjiang Base and Jilin Base have made achievements in wastewater treatment. The Tongliao Base has tiers of treatment. Among them the Xinjiang Base invested RMB 3 million to replace outdated waste gas treatment processes and

invested RMB 250.41 million to establish a microbial protein and organic fertilizer workshop to address the high concentration equipment and to build new odor treatment equipment replacing the wastewater photo-oxidation equipment with biological

organic wastewater generated from amino acid production achieving resource utilization of waste; and made significant deodorization equipment. so as to make the odor concentrations at the discharge outlets achieve the requirements of the

investments to establish and upgrade wastewater treatment systems for the treatment of low-concentration wastewater with an Emission Standard for Odor Pollutants (Exposure Draft) ahead of the deployment by the Ministry of Ecology and Environment.additional investment of RMB 150 million to build a reclaimed water reuse workshop. This year a new MSG project has been Meanwhile the Company continuously develops creative methods using domestic and foreign advanced technologies including

expanded to include a wastewater treatment station adding a 10000 m3/d treatment system with a total treatment capacity multi-tiered washing cooling and dewatering electrostatic defogging low-temperature plasma treatment deep oxidation and

reaching 44150 m3/d. activated carbon absorption to treat fermentation odors and the exhaust from product drying. The Company also achieves

The Xinjiang Base reduces water consumption by adopting a tiered utilization and recycling approach converting automatic control making the treatment process more precise and stable.high-concentration wastewater into organic fertilizer creating an interactive model with corn farmers through complimentary

fertilizers. The base invested RMB 500 million in the wastewater treatment station utilizing advanced technology for automated

control with ANAMMOX sludge cultivated for sale domestically and internationally and the biogas generated from wastewater Treatment of u norganized o dors

providing energy for the workshop. It made an additional investment of RMB 35 million to construct a reclaimed water reuse

project saving 10000 cubic meters of water daily.In treating unorganized odor emissions the Company has installed closed collection devices to treat unorganized waste gas from

The Jilin Base invested nearly RMB 120 million in wastewater treatment workshop employing a five-stage biological treatment production equipment and storage tanks and equipment. The collected waste gas is discharged after being treated by

process with the anaerobic reactor utilizing a third-generation ICX reactor achieving high treatment efficiency. The base environmental devices which solves the impact of unorganized waste gas emissions on ambient air quality. Further through the

continues to advocate energy conservation emission reduction and clean production with a daily emission reduction of nearly continuous improvement of its internal management the Company strives to eliminate the locations of unorganized diffusion and

2000m3/d in 2024 and an international leading level of clean production. reduce indoor and outdoor odor concentrations.

Treatment of u norganized dust

Data o n water pollutant emissions

The Company spent hundreds of millions of RMB to reduce the unorganized dust produced from the storage and transportation of

26330709 876234 2185.68 coal by building three completely closed coal yards. The yards are equipped with high-pressure fog ejectors that eject fog into the Ton Ton Ton yards to prevent dust. In the plants coals are transported in a fully closed way. The car dumper system has dry fog-based dust

Total volume of industrial wastewater Total volume of domestic wastewater Chemical oxygen demand (COD) prevention devices to automatically eject fog when unloading coals. The transportation and storage of coal thoroughly eliminate

the impact of unorganized dust.

263.27 Ton 84 1.70 Ton 79.77 Ton Data on atmospheric pollutant emissions

Ammonia nitrogen (NH3-N) Total nitrogen (TN) Total phosphorus (TP)

Indicator Unit 2024

Total emission of air pollutants Ton 3728.57

Waste g as management Emissions of particulate matter (PM) Ton 434.6

Treatment of f ume f rom boilers Emissions of sulfur oxides (SOx) Ton 1434.85

In treating fume from boilers the Company uses electrostatic fabric filter ammonia desulfurization and SNCR denitration

technologies. Upon treatment the fume emission concentration is far below the limits set by the Emission Standard of Air Emissions of nitrogen oxides (NOx) Ton 1860.63

Pollutants for Thermal Power Plants thus achieving the "ultralow discharge" standard. The denitration technology used by the

Company converts NOx into N2 and H2O through reaction without causing secondary pollution. The ammonia desulfurization

technology uses NH3 and SO2 reaction as the basis and in the multi-functional fume desulfuration absorber tower ammonia Emissions of volatile organic compounds (VOCs) Ton 192.81

absorbs SO2 from fume and oxidizes it into ammonium sulfate. The byproducts happen to be usable in the Company's production

of amino acids. It brings double benefits to the Company: meeting the requirements of pollutant discharge and recycling

resources.The fume discharge outlets of Tongliao Base Xinjiang Base and Jilin Base all have online surveillance equipment which is

connected with the networks of environmental authorities to monitor the Company’s fume discharge in real time and the flue

gas indicators of the three subsidiaries can all meet the requirements of ultra-low emission standards.65 Meihua Holdings Group Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 66

Waste management Green packaging materials

In the case of non-hazardous waste domestic waste such as food waste and office waste are entrusted to qualified units for landfill

treatment to ensure safe and environmentally friendly disposal; while industrial waste and dust are entrusted to qualified third parties Under the guidance of global sustainable development trends and the "carbon peaking and carbon neutrality" goals Meihua

for compliant disposal. The recyclable waste involved is classified and sold out to achieve the recycling and reuse of resources. Group always adheres to the green and low-carbon development concept and is committed to building a resource-saving and

For hazardous waste Meihua Group adopts a centralized collection method storing it in a temporary storage area within the factory environmentally friendly enterprise. While continuously expanding production scale the Company actively promotes resource

and then entrusting qualified third parties for compliant disposal. To ensure transparency and standardization in the disposal process recycling by adopting green packaging materials and recycling of packaging materials and reducing the use of packaging

transfer and disposal information will be reported and filed in the National Solid Waste Management Information System. Moreover the materials so as to optimize the resource utilization efficiency and minimize the environmental impact of packaging materials.Company has established a comprehensive hazardous waste management system and formulated the Hazardous Waste Management In 2024 the Company strictly implemented the Green Packaging Materials Procurement Strategy and System of Meihua

Regulations (Trial) to detail the incoming records and outgoing records of the temporary storage area. Meanwhile it has implemented Holdings Group Co. Ltd. to promote the use of eco-friendly packaging systematically sort existing packaging materials optimize

a platform-based ledger recording method. All incoming and outgoing storage operations are completed through platform operations. packaging design and select suppliers to advance the implementation of environmentally friendly packaging solutions ensuring

The Environmental Protection Office and workshops strictly implement standard systems providing dual guarantees for the compliance that the concept of green development is integrated into every aspect of supply chain management.of hazardous waste disposal from process management and operational specifications.In addition according to regulations Meihua Group completed the replacement of 376 office computers throughout the year

generating a total of 2.33 tons of electronic waste. Such electronic waste was uniformly collected and managed by the IT department

Optimization and reduction Recycling of pack-

and then handed over to external professional organizations for environmentally harmless treatment strictly following environmental 2025 Goalsof use of packaging aging materials

protection requirements to properly handle electronic waste.

2024年废弃物产?总量 1553120.78 The Company reduces the lining The Company achieved In 2025 Meihua Group will continue to Total volume of waste 1553120.78 Ton 吨 width of fertilizer and MSG product packaging material recycling promote the green packaging materials

packaging by optimizing packaging by using woven packaging strategy develop and promote new

generated

Density of hazardous waste (calculated per RMB 1 million of operating income) Ton/RMB 1

dimensions thereby decreasing the made from by-products low-carbon and environmentally friendly

0.02 million ineffective area of packaging produced from renewable packaging materials to reduce the use of

materials and reducing waste. materials recycling 1098 traditional materials; optimize the

Through design testing and tons. packaging size of fertilizer bags to reduce

Total volume of hazardous Volume of waste activated

467.71 Ton tracking customer usage a total the consumption of packaging materials waste generated carbon generated 268.36 Ton

weight reduction of 120 tons was per unit of product; and reduce the amount

successfully achieved throughout of ink used in packaging to reduce the

Volume of waste vanadium Volume of waste nickel-containing the year with a target completion pollution of packaging materials to the

pentoxide generated 0 Ton catalyst generated 42.5 Ton rate of 64%. environment. The Company plans to reduce

the weight of packaging by 20 tons for the

whole year in 2025 and continue to

Volume of waste zinc oxide Volume of waste engine oil

catalyst generated 37.72 Ton generated 100.91 Ton promote the reduction and recycling of

packaging materials.Volume of waste detection Empty waste reagent

liquid generated 1.78 Ton bottles 0.84 Ton Packaging material consumption in 2024

Volume of waste paint Volume of waste toner cartridge

bucket generated 9.10 Ton generated 2393 pcs 28000 Ton 750 Ton 3600 Ton 1900 Ton

Volume of waste ink Volume of waste battery Primary plastic Primary paper Secondary wood Secondary paper

cartridge generated 1644 pcs generated 11306 pcs category category category category

Volume of waste electronic

garbage generated 2.33 Ton

Biodiversity c onservation

Total volume of non-hazardous waste generated 1552653.07 Ton

The Company integrates ecosystem and biodiversity conservation into daily management based on the actual operational status

of production covering important aspects such as waste management and pollutant emissions supporting ecosystem and

Volume of industrial Volume of kitchen waste

waste generated 871655.58 biodiversity conservation.Ton generated 545.16 Ton All waste generated by the Company is handed over to a qualified third-party organization for non-hazardous treatment avoiding

pollution to soil water bodies and surrounding ecosystems. the waste gas and wastewater generated by the Company are

Volume of dust Volume of office waste 2105.99 discharged only after meeting standards through process treatment minimizing the impact on surrounding biological habitats. generated 678346.34 Ton generated Ton the Company helps mitigate the threats to global biodiversity by reducing the indirect impact of fossil energy use on climate

change.In the future the Company will gradually establish an ecosystem and biodiversity conservation system through pollution

Ton/RMB 1

Density of non-hazardous waste (calculated per RMB 1 million of operating income) 61.93 prevention and control ecological restoration and compliance management responding more actively to the global Convention million

on Biological Diversity (COP15) initiative and contributing to global sustainable development.Non-hazardous

Hazardous waste

waste67 Meihua Holdings Group Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 68

04

Social Responsibility

Fulfilling social responsibility is an important mission and value of

an enterprise and at the same time the sustainable development

of an enterprise must be based on the industrial chain synergy and

the co-construction with communities. For this reason in terms of

industrial chain collaboration we transfer ESG concepts to the

industrial chain through the supply chain management system to

gather strength and create social value with responsibility and

consensus.In terms of organizational support we continuously

improve human resource management mechanism with a

people-oriented concept to protect the rights and interests of

employees and their development build a good working

ecosystem and strictly abide by the red line of production safety.In terms of social participation we continue to plough into the

public welfare cause interpret responsibility with action and

make enterprise development resonate with social progress.Supply chain security 69

Human resources 74

management

Work safety 85

Rural revitalization and 93

social contribution69 Meihua Holdings Group Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 70

Supply c hain s ecurity Strategy

To standardize the supplier management process control the procurement process and ensure that the procurement materials

Based on the vision and mission of "Value Sourcing for Excellence" with our strong supply chain capabilities industry influence and activities meet regulatory requirements the Company identifies and analyzes the potential risks and opportunities in the

and market expertise we are committed to creating a more sustainable future with suppliers. We will promote our procurement supply chain management process and provides countermeasures.system toward sustainability and responsibility and advance broader sustainable procurement practices.Risks/

Opportunities Risks Opportunities

Type Operational risks Procurement risks Policy opportunities Market opportunities

Production bases may Meihua Group's With the increasing The amino acid

be affected by production relies on awareness of industry is highly

uncontrollable factors raw materials such environmental protection competitive with

such as extreme as corn and and the policy promotion opportunities for

natural conditions soybean protein green supply chains may industry consolidation.Description of

leading to disruptions the prices of which become an industry Companies can achieve

Risks/ in logistics and fluctuate greatly trend. For example resource integration

Opportunities transportation due to factors such government subsidies or and expand market

hindering raw material as natural disasters policy support for using share through M&A and

supply and product geopolitical issues environmentally friendly cooperation thereby

delivery thereby and international packaging materials and enhancing their

increasing operating market supply and for optimizing competitiveness in the

costs. demand. transportation routes to industry

reduce carbon emissions.Financial Cost decrease

Impact Cost increase Cost increase Revenue increase Revenue increase

Governance Impact

Period Short-term Short to medium-term Short-term Long-term

The Company's Procurement Planning Management Department coordinates with the Procurement Department responsible for

the construction and implementation of the Company's procurement system as well as the formulation and execution of Degree of ? High High ? Medium High

procurement strategies and plans; the subsidiaries carry out their procurement operations by establishing Procurement Planning Impact

Management Offices and Procurement Offices. Through the linkage of the three levels of management the and subsidiaries we

jointly build a sustainable supply chain management system. Likelihood of 中 Medium MediumOccurrence 中

High High

Value Chain

Operations Operations Operations Operations

Supervision and Inspection Segment

Chairman Affected

Board of Supervisors Optimize the logistics Strengthen Actively build a green Develop clear strategic

General Manager Operation Layer distribution system strategic supply chain plans and focus on

comprehensively cooperation with Closely monitor policy industry trends to

consider various suppliers and build dynamics deeply actively seek

Deputy General Manager (Purchasing) factors and develop a solid cooperation interpret policy content cooperation

Audit Committee flexible distribution model to ensure and gradually optimize opportunities;

Counter plans; price stability; the supply chain layout Strengthen internal

measures Expand logistics Optimize guided by policies management and

Purchasing Planning

Purchasing partners diversify procurement operational capacity Management Group Company

Department logistics risks and strategies closely building to achieve Department Audit Department strengthen supervision monitor market coordinated

and management of dynamics and development.logistics links. flexibly adjust

Purchasing Planning procurement pace.Purchasing Offices at

Management Office of Subsidiaries External

Each Base

Each Base Verification Agency

Note: we define short-term medium-term and long-term impact cycles as 1-3 years 3-5 years and more than 5 years respectively;

large medium and low impact levels as serious moderate and slight impacts on the Company's production and operations

respectively; and high medium and low likelihoods of occurrence as very likely to occur more likely to occur and less likely to

occur respectively.71 Meihua Holdings Group Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 72

Management of impacts r isks and o pportunities Indicators and targets

Indicator Unit 2024

Identification Assessment Response

Proportion of cost of food raw materials that Percentage 98%

In order to effectively identify and The Company assesses suppliers' Based on the results of ESG risk have obtained third-party certification

manage supply chain risks Meihua risks in social environmental and assessment we classify our

Group regularly conducts supplier governance aspects using the ESG cooperative suppliers into three Proportion of products with raw materials Percentage 100%

ESG risk identification and risk assessment matrix based on categories: high-risk suppliers traceable to the place of origin

assessment work every year. two dimensions: industry type and medium-risk suppliers and low-risk

procurement amount. The suppliers and implement tiered

assessment involves include 12 management to effectively control

indicators across three dimensions. supplier ESG risks from multiple 2024 Suppliers date

aspects and institutionalize and

normalize risk management.

346866

Tier-1 suppliers Key Tier-1 suppliers Key non-Tier 1 suppliers

Number of high-risksuppliers Increased proportion of 1 Direct sourcing suppliers A first-tier supplier that ranks in the Non-first-tier suppliers with an suppliers with high ESG

top ten in the industry or region and annual purchase amount of more

risk

has an annual purchase amount of than RMB 10 million and a purchase

Including: Tier-1 1 more than RMB 10 million volume (single material) accounting

suppliers for more than 30%

Including: key non-Tier-1 0 93%

suppliers

Supply c hain management measures

Supply c hain c ompliance management and c ontrol

Meihua Group attaches great importance to supply chain compliance management strictly

observes the Anti-Corruption Management Measures of Meihua Holdings Group Co. Ltd. and

has formulated the Supplier Code of Conduct of Meihua Holdings Group Co. Ltd. which

covers labor and human rights health and safety environmental protection ethical

standards and corporate governance to regulate supplier conduct and create a transparent

and open procurement environment.The Company integrates the concept of sustainable development into the management of

the whole supply which extends from the procurement of raw materials such as corn and

coal to the partnership with downstream logistics companies and retailers and is always

committed to providing customers with high-quality green products and fulfilling corporate

social responsibility. Since the Company formulated the Environmental and Labor Human

Rights Sustainable Procurement Policy of Meihua Holdings Group Co. Ltd. in 2022 it has

continuously regulated the behavior of contractors suppliers and other business partners

practicing the concept of sustainable procurement and building a sustainable supply chain.The Company continues to improve its supplier management system and comprehensively promotes sustainable procurement

prioritizing suppliers with "environmental certification" in its procurement. The company also strengthens supplier access

standards and assessment mechanisms clearly requiring partner suppliers to sign the Basic Agreement for Environmental and

Social Compliance of the Suppliers of Meihua Group to ensure that they fulfill their responsibilities in environmental protection

social responsibility and labor protection. Suppliers who violate relevant regulations will be blacklisted and may have their

trading qualifications suspended for a specified period or permanently.In 2024 the proportion of the Company's suppliers signing the Basic Agreement for Environmental and Social Compliance of the

Suppliers has reached 76%.73 Meihua Holdings Group Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 74

Responsible procurement Human resources management

Meihua Group strictly follows the Suppliers' Responsible Procurement Management Measures of Meihua Holdings Group Co. Ltd. Meihua Group adheres to the business philosophy of "full-staff operation creation and sharing" and follows the management

fully integrates the concept and requirements of sustainable development into the entire procurement process and continuously principles of "Three Fair and One More" and "Three High and One Low" that is we pursue the principle of fairness impartiality

improves the level of supply chain management through full-process management of suppliers to ensure the compliance of and openness to select more excellent cadres the highest salary level in the same region the highest salary level in the same

suppliers in terms of environmental protection social responsibility and corporate governance. industry the highest per capita contribution and the lowest per capita cost in the industry.Supplier admission

Meihua Group strictly follows industry standards and the ESG Management System of Meihua Holdings Group Co. Ltd. for Governance

Suppliers giving priority suppliers that have obtained various certifications (product quality and safety employee

occupational health and safety environmental management green products etc.). For suppliers identified as

high-ESG-risk we will require them to provide ESG-related certification materials. For suppliers identified as Full-staff o peration c reation and s haring

medium-ESG-risk we will prioritize enterprises that can provide ESG-related certification materials to ensure the

compliance of suppliers with sustainable development requirements. Meihua Group has always been "people-oriented" and continues to implement the business philosophy of "full-staff operation

creation and sharing." We attract talents to join with competitive salaries and incentive mechanisms and create an equal diverse

and inclusive cultural environment for employees to retain talents. The Company relies on a comprehensive multi-dimensional

and effective systematic method to cultivate talents smooth career promotion channels to enhance the career drive and

innovation capabilities of employees and the enterprise so as to jointly build a sustainable human resource management system

Supplier ESG assessment to achieve mutual growth between employees and the enterprise.By 2024 the human capital system invested in the education training and development of employees to improve the economic

efficiency of the enterprise. The return on investment in human capital was 175%.Meihua Group regularly conducts ESG assessments for admitted suppliers according to the Supplier ESG Assessment Meihua Group takes the initiative to assume social responsibility to solve the employment problems of the disabled and other

Criteria during which we will comprehensively examine suppliers’ performance in labor and human rights health and vulnerable groups. As of the end of the reporting period the Company had a total of 12858 employees including about 87

safety environmental protection business ethics etc. through questionnaires on-site audits real-time videos etc. and disabled employees accounting for 0.68% of the total number of employees.will form a Supplier ESG Assessment Form to score admitted supplier.Organizational s tructure

Communication with s uppliers The Company's Human Resources Department is responsible for the construction of the Company's human resource management

system employee recruitment compensation and benefits labor rights and employee training while each subsidiary establishes

a Human Resources Administrative Vice President to implement relevant human resource management work with the human

Meihua Group is committed to establishing resources specialists responsible for execution. The Company fully protects employees' rights and interests through a

long-term stable and mutually beneficial comprehensive organizational structure and management system.cooperative relationships with suppliers. We

encourage suppliers to actively participate in the

Company's communication activities jointly

exploring how to reduce costs improve quality

Chairman

services promote low-carbon technologies and Supervision and Inspection

protect human rights achieving information

sharing and complementary advantages.General Manager Operation Layer Board of Supervisors

Deputy General Manager (Human resources)

Audit Committee

Equal t reatment of s mall and medium-sized enterprises Human Resources Department Group Company

Meihua Group always insists on respecting and treating small and medium-sized enterprises equally operating with integrity and

Audit Department

helping to build a win-win business ecosystem. Human Resources Human Resources Human Resources

The Company continuously optimizes the financial payment process to shorten the account period avoiding operational risks for Department of Department of Department of Jilin

small and medium-sized enterprises due to overdue payments; the Company strictly abides by contractual agreements to timely Tongliao Base Xinjiang Base Base Subsidiaries

pay the accounts of small and medium-sized enterprises improves capital turnover efficiency alleviates financial pressure on

small and medium-sized enterprises and builds a stable and sustainable supply chain to promote the development of small and External

medium-sized enterprises. All staff Verification Agency

At the end of the reporting period the balance of the Company's accounts payable (including notes payable) was far below the

disclosure conditions and there were no overdue payments to small and medium-sized enterprises.75 Meihua Holdings Group Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 76

Precise r ecruitment to r eserve f uture t alents Risks

The Company has always believed that "talent" is the core driving force behind the rapid development of enterprises and

continuously optimizes the integrated talent management model of "recruitment selection training and retention." The Risk of shortage and loss of Countermeasures

Company recruits outstanding fresh graduates from universities through the "Aim High Management Trainee Program" and high-skilled talents

provides comprehensive support and training for talents through a model of "onboarding training + executive mentoring + project The biotechnology industry has a very high demand for Optimizing compensation and equity incentives: design a composite

practice." As of now the Company has introduced a total of 258 management trainees from universities including 33 PhDs 147 professionals in R&D production quality control and other compensation system that includes performance-based bonuses and

masters and 78 bachelors. In 2024 the Company plans to introduce 115 management trainees from various universities including fields but there is a shortage of talent supply. Meihua equity incentives prioritizing coverage for R&D and core technology

17 PhDs and 71 masters featuring high-end talents from "Double First-Class" universities such as Tsinghua University Peking Group's inability to attract or retain core talents may affect positions in line with industry competitiveness levels.

University Nankai University and Tianjin University. In the process we have established school-enterprise cooperation with R&D progress the establishment of technical barriers and Deepening industry-university-research cooperation: jointly cultivate

colleges and majors that align closely with the Company such as Tianjin University and Jiangnan University to ensure talent production stability. targeted talent with universities and research institutions establish "

reserve and cadre training. Meihua Group-University Joint Laboratory" to secure high-quality

graduate resources in advance.Build an efficient management s ystem Risks from cultural integration and Countermeasures

to drive h uman r esource t ransformation t hrough digitalization cross-cultural communication

As the Company's overseas layout gradually advances Enhance cross-cultural communication by organizing cultural

In 2023 the Company launched a human resource informatization construction project collaborating with Inspur a leading employees both domestically and internationally will face exchange activities and cross-cultural training to promote

enterprise in information technology to develop a human resource management system. The project was implemented in two cultural differences and conflicts. Employees at overseas employees' understanding and respect for diverse cultures fostering

phases: the first phase was launched June 2023 covering the templates of organization and personnel attendance salary factories need to adapt to the new corporate culture while harmonious development. For example hold multicultural sharing

performance and cadre files through which the human resources management system was leapfrogged from 0 to 1 and all basic existing employees must change their work habits and sessions and invite overseas employees to share local cultural

work was improved by more than 50% and at the same time the human resources management processes were standardized; the cultural integration requires a transition period. customs to enhance mutual understanding.second phase was launched in August 2024 adding capability certification "Small Wins" and talent assessment modules. Now

users can conduct online work and share information in real-time through both PC and mobile platforms. All HR operations are

documented online and business management processes regulations and standards are publicly available online. Each business Risks of changes in policies regulations Countermeasures

department can also understand the status of personnel within their teams in real-time achieving full-process online control and and employment environment

information sharing. Information technology has significantly improved work efficiency reduced communication costs and

China's labor regulations (such as social security Dynamic policy response mechanism: establish a legal compliance

brought the Company's human resource management to a new level.contributions and overtime restrictions) are becoming team to track changes in labor regulations in real time (such as social

stricter and differences in regional policies may increase security pooling policies in the Beijing-Tianjin-Hebei Region) and

labor costs. In addition the new generation of employees adjust employment strategies.Strategy has higher demands for work environment and cultural Building an inclusive culture: conduct diversity training (such as

inclusiveness posing challenges to traditional management cross-cultural communication and anti-discrimination courses) and

In the process of internationalization the Company's talent strategy faces challenges in cultural integration and talent models. establish an employee feedback platform (such as anonymous

development and will also usher in the opportunities for attracting talents and optimizing the management system. The Company surveys and regular discussion meetings).will actively take effective measures to further improve the talent system establish diverse teams enhance international

competitiveness and achieve steady development. International talent reserve Countermeasures

The Company is currently undergoing SA8000 certification conducting human rights due diligence and assessments based on

SA8000 standards proactively identifying and assessing potential impacts and risks related to the respect for human rights. and training risks

Global operations require mid- and senior-level managers to Improve the talent training system raise training standards and

have a global perspective and strategic thinking which may focus on cultural awareness management methods and

Type of Financial Impact Degree of Likelihood of Value Chain lead to pressure in talent development and risks of enhancement of employee quality. Cooperate with internationally

risks Impact Period Impact Occurrence Segment Affected insufficient talent reserves in the short term. renowned consulting firms to introduce advanced talent training

concepts and methods for cultivating internationally-oriented talents

Risk of shortage and loss Cost Medium- Medium Medium Operations with comprehensive abilities.of high-skilled talents increase term

Risks from cultural integration and Cost Short to Low High Operations

cross-cultural communication increase medium-term

Risks of changes in policies regula- Cost Medium to Medium Medium Operations

tions and employment environment increase long-term

International talent Cost Medium to Medium High Operations

reserve and training risks increase long-term

Note: we define short-term medium-term and long-term impact cycles as 1-3 years 3-5 years and more than 5 years respectively;

large medium and low impact levels as serious moderate and slight impacts on the Company's production and operations

respectively; and high medium and low likelihoods of occurrence as very likely to occur more likely to occur and less likely to

occur respectively.77 Meihua Holdings Group Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 78

Strategy Management of impacts r isks and o pportunities

Type of Financial Impact Degree of Likelihood of Value Chain By identifying potential risks and opportunities through multiple dimensions and comprehensively assessing their driving factors

opportunities Impact Period Impact Occurrence Segment Affected impact scope and time span the Company continuously enhances the effectiveness of human resource management to provide

solid human support for the Company's sustainable development.Opportunities for attracting Cost Long-term medium medium Operations

international talents decrease

Referencing the talent market regulatory policies and corporate culture identify risks such as the

Opportunities for optimizing the Cost Long-term medium medium Operations loss of high-skilled talents cultural conflicts policy adaptation and insufficient international talent

human resource management system decrease reserves; as well as the opportunities for optimizing human resource management brought by

Identification global talent acquisition digital transformation and industry development and define their impact

Opportunities in digital Cost Short to me- on the Company's business.High High Operations

transformation technology decrease dium-term

Note: we define short-term medium-term and long-term impact cycles as 1-3 years 3-5 years and more than 5 years respectively; Assess the driving factors of risk and opportunity such as the level of competition cultural

large medium and low impact levels as serious moderate and slight impacts on the Company's production and operations differences regulatory changes etc. Analyze the potential impacts on recruitment costs

respectively; and high medium and low likelihoods of occurrence as very likely to occur more likely to occur and less likely to cooperation reputation etc. and clarify the time frames for short-term medium-term and

occur respectively. Assessment long-term.Opportunities

Based on the results of the risk and opportunity assessment develop a diversified talent strategy

strengthen the protection of employees' rights and interests and the construction of corporate

Opportunities for attracting Countermeasures Response culture and improve the talent training system.international talents

Develop a global talent development plan to establish a more

With the establishment of overseas factories the diverse and internationally competitive management team.Company has to face the human resource competition For example attract top global talent to join the Company

from the domestic market to the global market. through channels such as overseas job fairs and international Protecting Employees' Rights and Interests

talent exchange platforms.The Company complies with national laws collective bargaining agreements and industry standards regarding working hours

attendance leave and public holidays providing employees with reasonable working hours salaries and benefits and holidays

Opportunities for optimizing the human Countermeasures etc. The Company has established compliant fair and transparent recruitment and hiring procedures and timely pays employee

resource management system wages and social insurance contributions as required. The proportion of employees covered by the Company's collective

bargaining agreement reached 100%.With the establishment of overseas factories the Strengthen international cooperation learn advanced

Company has to face the human resource competition management concepts and continuously optimize human

from the domestic market to the global market. resource policies and systems. For example cooperate with Respecting for h uman r ights

international human resource management organizations to

introduce advanced systems for performance management In order to systematically prevent the Company from human rights abuses such as violence human trafficking slavery

compensation and benefits promoting the modernization of exploitation and restriction of personal freedom and ensure that the human rights and dignity of every employee are

human resource management. By optimizing the maintained the Company has initially established a number of relevant systems and continues to implement the Human Right

compensation and benefits system improve employee Protection and Anti-Violence and Conflict Policies the Regulations on the Prohibition of Child Labor the Regulations on the

satisfaction and loyalty to enhance the Company's Prohibition of Forced Labor the Anti-Harassment and Anti-Maltreatment Policy and the Anti-Discrimination Policy etc. and

competitive advantage in the international market. organizes each production base to regularly review labor conditions to protect the basic rights and interests of every employee.The Company has implemented a series of preventive measures such as strict audit and filing in the process of inputting

Opportunities in digital Countermeasures employee identity information so as to fundamentally prevent the occurrence of illegal employment behaviors such as child labor

transformation technology and forced labor; we have zero tolerance for discrimination bullying intimidation and sexual harassment in the workplace and

are committed to providing employees with a comfortable fair and secure working environment and employees can

Technologies such as AI recruitment big data analysis of Deploy an intelligent HR system: introduce AI resume submit anonymous reports through the Feishu platform.employee performance and virtual reality training can screening tools to reduce recruitment time; Utilize data

optimize human resource management processes analysis platforms to identify high-potential employees and

reduce operational costs and enhance the scientific customize personalized training plans.basis for decision-making. Virtual Reality (VR) skills training: develop immersive training In 2024 the Company conducted its annual human rights survey and assessment with a coverage rate of 90% an increase

modules for scenarios such as production line operations from 79% in 2023. During the reporting period the Company did not commit any human rights abuses.and equipment maintenance to enhance the efficiency of

skill conversion.79 Meihua Holdings Group Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 80

Respecting for human rights Compensation and performance

In line with the business philosophy of "full-staff operation creation and sharing" and the management principles of "Three Fair

Insisting on equal employment and One More" and "Three High and One Low" the Company increases its investment in labor costs each year establishes and

improves the salary-increase mechanism and through standard salary adjustments "Small Wins" salary adjustments

Obey the principle of fair employment and provide equal employment opportunities; competency-based salary adjustments project bonuses bonus pool plans and employee stock ownership plans guides and

motivates employees to create value and share results promoting the dual enhancement of corporate performance and employee

Respect the legal rights and interests of employees to conclude labor contracts and compensation. On this basis from 2020 to 2024 the Company allocated over RMB 100 million for employee salary increases

terminate labor relations on an equal footing according to law; achieving the important strategic goal of doubling the income of frontline employees with a total salary package increase of 10%

for all employees.Promise to strictly implement the Regulations on the Prohibition of Child Labor and not to

employ or support the employment of underage children;

Bonus pool plan

Working conditions and social protection In 2024 based on the existing bonus pool incentive policy the Company continued to update and improve the bonus pool

incentive plan incorporating bonus pool targets into departmental business objectives and all departments were

Create a good working environment pay attention to the physical and mental health of employees and provide encouraged to declare targets and assume more targets aiming to "create more share more."

sufficient development opportunities for employees;

Provide employees with good working conditions including wages working hours rest time holidays etc. to

implement gender equality and equal pay for equal work to respect employees' rights to rest and leisure to provide Equity incentives

employees with paid holidays and to protect employees' participation and appeal rights;

In order to attract and retain outstanding talents maintain an efficient management team and fully motivate team

members the Company provides equity incentives to its directors senior executives core management personnel and key

technical staff based on their job performance and associated risks aiming to allocate equity to core personnel and

Anti-discrimination anti-harassment and anti-abuse

stimulate employees' sense of ownership.No discrimination rejection or unfair treatment will be given to employees in terms of recruitment training promotion

salary and benefits working conditions organization and participation in trade unions retirement and dismissal due to

gender age religion race origin social background disability nationality marital status illness etc.;

Employee benefits

All forms of harassment and violation of the human rights of others are strictly prohibited including sexual coercion

threats insults and other related words gestures and physical contact; The Company offers a variety of benefit measures to attract and retain excellent employees.Benefit Category Benefit Content

Forced labor is prohibited

According to the national regulations the Company pays pension insurance employment

Promote the joint supervision and implementation of all employees and formulate a series of preventive measures insurance work injury insurance medical and childbirth insurance and housing funds for

such as strict and comprehensive review and filing during the process of entering employee identity information and Basic benefits employees; and provides legal holidays (including marriage leave funeral leave prenatal

fundamentally eliminate the use of child labor forced labor and other illegal employment practices; check-up leave maternity leave sick leave annual leave parental leave etc.).The Company ensures dignity and respect for all employees and will not tolerate corporal punishment mental or physical The Company provides employees with meal allowances accommodation allowances

coercion or verbal abuse against employees nor allow employees to be treated in a brutal or inhumane manner. Cash benefits and transportation allowances every month which will be deposited in cash into

employees' salary cards or employee cards. Depending on regional differences each

person can enjoy an allowance of approximately RMB 10000 per year.Cases for protecting women's rights and interests

Housing The Company provides home purchase subsidies for cadres and employees. As of the end

subsidies of the reporting period a total of RMB 79.2 million of home purchase subsidies has been

distributed benefiting 625 employees."Exclusive dining area for pregnant women" Mommy’s c abin Special In 2024 the Company invested a total of RMB 43.9 million to improve the office

benefits environment and facilities including repairs and upgrades to restrooms changing rooms

In 2024 Meihua Group In 2024 the Company renovated its offices and Environmental factory roads and landscaping facilities enhancing employee comfort at work. The

renovated its cafeteria to established more Mommy’s cabins for female improvement Company has compiled a Corporate Civilization Construction Manual to promote further

create a dedicated dining employees' breastfeeding. The cabins were relocated optimization of the work environment through a corporate civilization construction

area for pregnant female for better privacy and convenience and new furniture standard management system.employees equipped with and appliances were provided to meet the needs of

cushions and other items lactating female employees and ensures Employee On the eve of traditional festivals such as the Mid-Autumn Festival and the Spring Festival

to provide comprehensive inclusiveness and dignity for every working mother at holiday benefits the Company will prepare holiday gifts for employees.care for every expectant the Company.mother.In addition the Company provides all employees with free access to clean toilet facilities drinking water suitable dining options

(employee cafeteria) and rest areas as well as refrigerators for food storage. The Company ensures that the dormitory facilities

provided to employees are clean safe and meet their basic needs.81 Meihua Holdings Group Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 82

Caring for employees' l ives Focusing on t alent g rowth and

diversified employee t raining s upports

According to the relevant internal regulations of trade union the Company actively listens to employees' demands plans a variety

of cultural activities to meet the diverse needs of employees and organizes employee events irregularly to help employees better Meihua Group has developed a variety of training programs to meet the needs of employees at different levels.integrate into the collective enrich employees' leisure lives continuously enhance employees' sense of belonging and happiness

and inject new vitality into the Company's cultural construction.Training for college students

Meihua Group provides the "Dream Sailing" orientation training program for newly recruited college graduates including cultural

courses military training physical training and other training activities. In 2024 the Dream Sailing training class sent 454

Women's Day activities qualified college graduates to the Company.On the day of the festival the Company will give out small gifts

such as roses or carnations to female employees and the

administration will take the lead in organizing health lectures for Manager's Class training

female employees fun sports games and other activities.In 2024 Meihua Group led 30 trainees of the managers and department heads training class to visit Shandong Wanhua Shenyang

Machine Tool and North Heavy Industries learn excellent operational management models and experience. It adopted the strategy

of "combining training and practice" and was committed to improving the ability of future/current managers to undertake the

Employee cultural and sports league Company's strategic goals and lead the team to achieve efficient operation of the organization.In order to create Meihua Group characteristic activities and enrich

the cultural life of employees the Company organized the May Director's Class training

Cultural Festival and the first Employee Cultural and Sports League

in May 2024. Everyone performed well in basketball games skill The 2024 Director's Class training focused on improving the quality of training while also improving the competence and

competitions and knowledge quizzes. The teams competed on the performance of cadres after training thereby reducing costs and increasing benefits. Optimizations were made in training content

same stage and fought hard staging a high-level and and methods. It aims to improve the management ability of trainees by enhancing the quality of training materials through

high-standard cultural and sports event. iterative case studies motivating excellent lecturers and practical management experience to identify more high-potential

candidates and thus effectively addressing the shortage of backup personnel such as product workshop directors and production

section chiefs. A total of 83 trainees were trained.Double Seventh Festival

Before the Double Seventh Festival the Company uses the Feishu

platform to organize online independent dating activities where Specialist's Class training

could upload their friends and families' information to the In 2024 the Company established a technical system personnel training system and opened technical training classes with the

platform to help single employees find their Mr./Ms. Right. goal of cultivating knowledgeable problem-solving and respected technical engineers. The technical training courses were

Meanwhile the Company plans offline activities to create designed and developed around the job responsibilities of engineers and specialists covering all aspects of the content from job

opportunities for employees to communicate face to face help responsibilities to the ability to analyze and solve problems professional knowledge points etc. A practical mechanism for the

employees successfully find partners offline so as to further mid-term and final exams was designed to ensure that specialists can apply what they have learned. Since the launch of the

enhance their sense of happiness. training programs the Company has conducted 10 training sessions training 240 people which has steadily improved the overall

capabilities of the technical team.Interesting cultural activities

Total training time of employees

In November 2024 in order to enrich the cultural life of employees 2895036 hours

enhance their cohesion and help the whole Company to work hard

in the fourth quarter to sprint for the annual goal the

Company organized interesting cultural activities for the fourth Average training hours per employee 225.15 hours Training ratio of all employees 97.73%

quarter. By planning novel activities such as "receiving challenging

cards" and "collecting letters for challenging" it successfully Meihua

attracted a large number of employees to participate. Group's

Training Training ratio of male employees 98.72% Training ratio of female employees 99.08%

Perfor-

mance

for 2024 Training ratio of primary-level employees Training ratio of middle management

Employee s atisfaction s urvey 98.38% 93.05%

Training ratio of middle-senior management Training ratio of senior management

In 2024 we launched an employee satisfaction survey through a questionnaire to gather genuine feedback from employees 100% 100%

understand their concerns identify and improve shortcomings in work and continuously enhance the Company's human

resource management level.In 2024 the overall satisfaction score of Meihua Group's employees was 3.91 (full score is 5 points) with a survey coverage rate Proportion of employees participating in GMP training 30.34%

of 88%.83 Meihua Holdings Group Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 84

Key indicators Turnover r ate

Employment s ituation o f t he Company Turnover Rates of Various Categories of Turnover rate (%) Voluntary turnover rate (%)

Employees of Meihua Group in 2024

Overall turnover rate of employees 19.52% 15.57%

Male employees 13.10% 10.21%

Total number of employees Employee turnover rate by gender

Female employees 6.42% 5.36%

12858 Below 20 years old 1.00% 0.80%

20-29 years old 9.13% 7.25%

Male employees 8337 Female employees 4 521 30-39 years old 5.36% 4.20%

Employee turnover rate

by age

Proportion 64 .84 % Proportion 35.16 % 40-49 years old 2.28% 1.83%

50-59 years old

Chinese mainland 1.59% 1.33%Han 954 4 74 .23%

Mongolian 17.84 % 12852 99.95 % 60 years old and above2294 0.16% 0.16%

Manchu 685 5.33% Chinese mainland 19.50% 15.56%

Overseas regions Employee turnover rate

Hui 179 1.39% by regions

6 0.05 Overseas regions% 0.02% 0.02%

Other eth- 1.21%

nic groups 156

Han 15.18% 12.24%

按年龄划分的员??数 4 698 Mongolian 2.45% 1.82%

500036.54%

36053426

4000 28.04% Employee turnover rate Manchu26.64% 0.79% 0.56%by ethnicity

3000

Hui 0.43% 0.38%

20001099

8.55%

23 Other ethnic groups7 0.67% 0.57%1000

0.18%0.05%

0 Below 20 years old 20-29 years old 30-39 years old 40-49 years old 50-59 years old 60 years oldand above Primary-level employees 17.81% 14.33%

Meihua Group takes the initiative to assume social responsibility to solve the employment problems of the disabled and other Middle management

vulnerable groups. As of the end of the reporting period the Company had a total of 12858 employees including about 87 1.49% 1.06%

disabled employees accounting for 0.68% of the total number of employees. Employee turnover rate

The Company is committed to promoting gender equality actively safeguarding the legitimate rights and interests of female by level Middle-senior management 0.22% 0.18%

employees ensuring that female employees have equal pay benefits and career development opportunities and receive fair

opportunities in promotion evaluation of professional and technical positions salary distribution etc. while constantly

improving the representation of women in the management team. As of the end of the reporting period female accounted for Senior management and 0.00% 0.00%

36% of the executive positions in Meihua Group. executives85 Meihua Holdings Group Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 86

Work s afety Strategy

Meihua Group fully considers the importance of occupational health and safety to the enterprise. By identifying potential risks and

opportunities in the production process and analyzing their possible financial impacts it formulates scientific response strategies

Meihua Group always adheres to the bottom line thinking and the consciousness of red line deeply implements HSE

to ensure the occupational health and safety of employees and achieve the Company's sound development.compliance requirements continuously improves the level of intrinsic safety promotes the solidification and deepening of

safety culture and ensures the occupational health and safety of employees.Risks/Opp Risks Opportunities

ortunities

Governance Improvement of Operational High-temperature

Chemical working

Type risks of and high-pressure

Technical

environment by

Meihua Group strictly abides by the Work Safety Law of the People's Republic of China the Law of the People's Republic of China Exposure Risks production work environment opportunities new energy

on Prevention and Control of Occupational Diseases the Provisions on the Safety Training of Production and Operation Entities equipment risks project

and the Guideline of China Occupational Safety and Health Management System. According to the requirements of work

safety standardization ISO 45001 and ISO 14001 management systems the Company has formulated management systems such

as Management Measures for HSE System Construction and Document Control and Emergency Plan for HSE Accidents and The use of chemicals Improper Fermentation Xanthan Gum The Tongliao

establishes a unique HSE 12-element management system which provides solid institutional guarantee for systematic HSE such as alcohol and operation of large processes need to green 11MW rooftop

management. detergents during the equipment such operate under manufacturing photovoltaic

With risk management as the core we continue to promote systematic and distinctive full-member HSE management. In order to production process as as fermentation high-temperature technology project may

improve the efficiency of HSE management and realize the effective implementation of work safety work with the Safety Description well as bio-aerosols tanks and and high-pressure reduces the use of reduce

Production Committee as the highest decision-making body and with the General Manager as the first person responsible for of Risks/Op that may be generated centrifuges may conditions posing harmful chemicals dependence on

work safety the members of the leadership and the heads of relevant departments formed a Committee Group with clear portunities from microbial lead to potential dangers while traditional energy

hierarchy and defined responsibilities ensuring the achievement of HSE management goals. fermentation can pose mechanical such as burns and simultaneously and thus lowering

risks to employees' injuries or explosions. lowering dust and noise

Leadership level Executive level Supervisory layer respiratory systems accidents. occupational pollution caused

and skin. exposure risks. by coal-fired

The Safety Production Committee is the highest The Group's HSE Management The audit team is responsible for power generation

decision-making body for HSE work. The General Department consists of a safety supervision and review to ensure

Manager is the director of the Safety Production inspection team a rectification the implementation of work

Financial Cost Cost decrease，Committee and the first person responsible for team a technical team etc. to safety work. Cost increase Cost increase Cost decrease

Impact increase Revenue increase

the work safety work; the Safety Production carry out all management work in

Committee implements a system of primary conjunction with the Base Safety

leadership responsibility fully leading the work Office. Impact Short to me Short-term Short to

Medium to Long-term

safety work. Period dium-term medium-term long-term

Degree of

? High High ? High Medium HighImpact

Chairman Supervision and Inspection Likelihood

of Occurre 中 Low Low 中 Low High Medium

nce

General Manager Operation Layer Board of Supervisors

Value Chain

Segment Operations OOpepreOartpaitoeirnoasntsions Operations OOOpppeeerraaratttiiooiionnnsss OOOOppppeeerraraatDeputy General Manager (Production) erat

tiitiooiioonnnnssss

Affected

Audit Committee Process optimization: by Automation Real-time Technical Clean energy

Production Technology Research Institute using green intelligent transformation: monitoring promotion: coverage:

Group Company

manufacturing promote the system: install expand this gradually apply

technologies (such as intelligent upgrade temperature and technology to PV power

HSE Management Department the optimization of of production lines pressure sensors other production generation to

Audit Department and automatic lines (such as other production

Counterm Xanthan Gum (e.g. synthetic

production processes) biology technology alarm devices to lysine and bases to improve

Security Department Security Department Security Department easures

reduce alcohol platform) to reduce ensure threonine workshop

of Tongliao Base of Xinjiang Base Jilin Base

consumption by 33% manual operation immediate production) and ventilation and

Subsidiaries and detergent usage by steps. response to apply for industry lighting

Production line External 50% thereby lowering abnormal standard conditions.workshops Verification Agency exposure risks. situations. certification.In 2024 the safety management system certification ratio of the three production bases of the Company reached 100%. Among Note: we define short-term medium-term and long-term impact cycles as 1-3 years 3-5 years and more than 5 years respectively;

them the Jilin Base continuously met the secondary work safety standards while the Tongliao Base passed the tertiary work large medium and low impact levels as serious moderate and slight impacts on the Company's production and operations

safety standardization audit and obtained certification. respectively; and high medium and low likelihoods of occurrence as very likely to occur more likely to occur and less likely to

occur respectively.87 Meihua Holdings Group Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 88

Management of impacts r isks and o pportunities Safety production indicators Unit 2024

Meihua Group fully implements the Law of the People's Republic of China on Prevention and Control of Occupational Diseases and Number of safety training Session 104

the Work Safety Law of the People's Republic of China and other relevant laws and regulations to conduct risk assessments on the sessions

Company's occupational health and work safety processes ensuring that risks are controlled within a bearable range that is

compatible with overall objectives and safeguarding the Company's sustainable development. Number of participants Participant 61049

in safety training

Employees Total safety training Hour 4395528

Risk identification and management: the Company reviewed the cases of accidents that occurred duration

in the past ten years used the LR method to identify safety risks refined key safety control points

management standards and anti-violation bans and organized publicity and training to promote Average safety training Hour 341.85

Identification the implementation of intrinsic safety management standards in the workshop. duration

Safety training coverage Percentage 100%

rate

Number of safety training 54

Based on accident case review data assess the likelihood of occurrence and degree of impact of the Sessionsessions

risks classify risk levels develop special control plans for high-risk factors clarify risk control

Assessment priorities and provide a scientific basis for risk management.Contractor Number of participants in Participant 10404

safety production training

Total safety training Hour 749088

duration

Safety production identification system: the Company continues to improve its work safety identifi-

cation system and sets up accident notification boards warning symbols occupational health notice

boards etc. in the production workshops. Safety management system certification ratio Percentage 100%

Online monitoring and early warning via informatization: establish an online monitoring and early

Response warning management system to monitor security risks in real time.Every 1000000

Safety performance assessment: the Company incorporates over-temperature conditions at key con- Frequency of work-related injuries among employees 2.169

working hours

trol points of the production line into the safety management performance assessment to effectively

improve the enthusiasm and initiative of safety management personnel.Frequency of work-related injuries among contractor's employees Every 1000000 0.77

working hours

Total recordable injury frequency rate (TFIFR) Every 1000000 0.581Indicators And Targets working hours

HSE culture development

Resolutely not compromising for any economic benefit creating an HSE cultural

Safety system that meets the Company's standards capable of externally undertaking

HSE hold custody of services and possessing the ability to rapidly improve the

produc- HSE management performance of any enterprise (excluding coal mining

enterprises).tion Ob-

jectives

Accident prevention

Achieve zero work-related deaths and zero major fire accidents.89 Meihua Holdings Group Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 90

Occupational h ealth and w ork s afety management measures Safety production t raining

Adhering to the ideology of "Safety First Prevention Foremost" the Company comprehensively

Safety production s tandardization promotes the improvement and deepening of the work safety management system and has formulated

the HSE Work Safety Education and Training Management Regulations (Trial) systematically and

The Company promotes the establishment of a safety benchmark management model by focusing on purposefully carrying out work safety publicity and education work in conjunction with the annual

four workshops: threonine lysine starch and fertilizers driving the safety production standardization. safety training plan. The Company designates every Thursday as "Weekly Safety Working Day" to

conduct presentations and safety activities and promote the construction of safety culture.Online monitoring and early warning management s ystem The Company insists on including contractors in a unified safety management system designates

The Company's HSE Management Department has established safety inspection teams rectification professional safety management personnel to provide specialized training while also requires

teams and technical teams to regularly conduct safety inspections and technical assessments at each contractors to organize their own internal safety training so as to ensure that all projects and

production base. We have also set up an online monitoring and early warning management system for participants within the Company strictly adhere to the Company's work safety standards effectively

HSE information at both the Group and subsidiary levels to monitor key control points for safety and achieve work safety goals and build a solid safety line for the Company's stable development.environmental protection in real time and set up alarm notifications.Emergency management of production s afety Case: Safety Knowledge PK Activity

To effectively prevent and respond to HSE accidents the Company has developed an Emergency Plan

for HSE Accidents based on relevant regulations and standards combined with its actual situation. During Safety Month the Company organizes employees for a safety knowledge quiz by using

In response to major fire accidents in previous years the Company adopted a surprise drill mode of " questions from the national safety management personnel qualification examination database

direct entry to the scene without notification" quickly initiating fire emergency drills using fire alarm and requires all production line managers and workshop directors to participate so as to reinforce

equipment smoke bombs and other facilities. During the drill a highly realistic fire scenario is safety knowledge and enhance safety awareness through competition.simulated to comprehensively test the first response capabilities of the production line and workshop in

the event of a fire accident effectively conducting practical fire rescue drills.After the drill the Company will organize professionals to review the process immediately start the

revision of the emergency plan to address issues exposed during the actual drill further clarify the

responsibilities of various levels of organizations and personnel standardize the emergency response

procedures optimize the process handling measures and reinforce key points for on-site rescue.Through repeated drills the Company continuously enhances its on-site emergency disposal

capabilities ensuring that in the event of a sudden fire accident rescue actions can be carried out

quickly efficiently and scientifically minimizing losses and harm.91 Meihua Holdings Group Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 92

Occupational h ealth management Occupational health training

The Company continuously improves its occupational health and safety management system with

Occupational health management personnel:

safety departments at each production base establishing occupational health engineers responsible for participate in the occupational health knowledge training organized by the District Health Commission

occupational health prevention work strengthening occupational health supervision and eliminating every year;

potential occupational health risks. All production line personnel:

receive occupational health knowledge training once a quarter;

Occupational health management measures All employees:

organize various activities and training to continuously improve employees' safety awareness and skills.Occupational health Archives management

Establish "Three Simultaneities" occupational health archives (covering simultaneous design construction

and commissioning of facilities) occupational health management archives occupational health publicity

Employee physical examination

and training archives occupational disease hazard factor monitoring and evaluation archives employer

occupational health monitoring management archives and individual worker occupational health egular physical examinations:

monitoring archives for relevant construction projects effectively implementing occupational health regularly organize health examinations and special occupational health examinations for all employees;

supervision through standardized documents; Occupational health monitoring:

establish occupational health monitoring archives for employees with higher risk of exposure to

occupational hazards.Occupational health Testing and rectification

Testing arrangements: In 2024 the Company organized a publicity week for the occupational disease prevention and control law

Invite a third party to conduct occupational health impact factor testing for each production line conducted special training on occupational health and carried out more than 50 occupational health training

annually; sessions training a total of 61049 participants with a cumulative training duration of 122098 hours.Evaluate the current situation of occupational disease hazards for each production line every three

years; Occupational disease monitoring

Conduct regular testing for noise dust ammonia and other factors in the workshop every month;

Rectification measures: The Company strictly complies with occupational health and safety regulations to ensure employees' occupational

Comprehensively sort out occupational disease hazard factors and identify key personnel and areas of safety through a comprehensive management system and monitoring framework.concern; In order to keep the risk of occupational diseases at a low level the Company conducts regular assessments and

Carry out special rectification work focusing on key factors such as dust and noise continuously evaluations of occupational disease hazard factors every year using scientific and advanced methods for risk

monitor the rectification and implementation of weak links and strengthen source governance; assessment.Labor protection and physical examinations for employees

Emergency and warning management

The company has established the Labor Protection Supplies Management System to provide employees with

Emergency management: labor protection supplies in the workplace ensuring their health and safety at work and the labor protection

establish a record of toxic and hazardous gas monitoring and alarm devices and an emergency plan for supplies were 100% fully equipped and correctly used.acute occupational hazards and develop a corresponding list of emergency supplies equipment and Meanwhile the Company regularly organizes health examinations for all employees and specialized

facilities; occupational health examinations and establishes occupational health monitoring archives for employees

Warning management: exposed to higher risks of occupational hazard factors comprehensively safeguarding employee occupational

establish occupational health notice boards and occupational disease hazard notification cards at the health and safety. In 2024 the Company achieved 100% coverage of employees' entry physical examinations

production site establish warning sign records toxic material workplaces and highly toxic material with 6066 people completing the occupational health examination in the process and a periodic on-the-job

operation lists; health physical examination rate of 47% ensuring that all required examinations are conducted efficiently to

prevent occupational diseases and related illnesses.Labor protection Supplies management

System construction:

establish a complete Labor Protection Supplies Management System to provide employees with labor

protection supplies in the workplace;

Implementation:

ensure that each production line distributes labor protection supplies on time and keeps records of

distribution; the labor protection supplies were 100% fully equipped and correctly used.93 Meihua Holdings Group Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 94

Rural r evitalization and s ocial c ontribution Social Contribution

The Company continues to focus on and invest in key social areas such as rural revitalization education and The Company attaches great importance to community participation and public welfare charity considering it an

healthcare create key brand projects that align with the core values of the Company actively fulfil corporate social important part of fulfilling social responsibility. To standardize the Company's donation and sponsorship activities

responsibility and promote the common development of the enterprise and society. and ensure the effectiveness and sustainability of public welfare activities the Company has formulated the

External Donation Management System of Meihua Group and continuously improves the relevant institutional

framework.The Company strongly supports the development of education by participating in educational support activities

such as assisting impoverished students youth development basic education reading education and higher

education in the form of public donations. In 2024 the total amount of charitable donations to the education sector

reached RMB 181975.Education

Research-based learning: Supporting impoverished students:

The Company donated RMB 920000 to support the In 2024 the Xizang Meihua Group Public Welfare

Shanghai Chunhe Youth Development Center in carrying Foundation participated in the Baicheng Hanhai

out research-based learning public projects in rural areas Scholarship Action donating a total of RMB 400000 to 45

of Jilin Baicheng and Guizhou; impoverished students in Baicheng; donated RMB 90000

for educational assistance to 18 impoverished students in

Rural r evitalization Duodi Township Xizang;

School development support: Caring for children's growth:

Industrial c ooperation

As an important part of the agricultural industrial chain Meihua Group uses corn as raw material for biological Donated RMB 75000 to a primary school in Bange Donated RMB 150000 to the Children's Welfare Institute

County Xizang; of the Xizang Autonomous Region;；fermentation promoting the integration of agriculture with manufacturing and logistics industries through

large-scale procurement of corn and other agricultural products creating direct and indirect employment

opportunities through the agricultural industrial chain and facilitating agricultural upgrades and increasing Promoting reading education: Supporting higher education:

farmers' income through its production and operational activities.Donated RMB 65000 to a primary school in Xinjiang for Donated RMB 50000 to the School of Chemical

Public w elfare assistance the school's reading pavilion project; Engineering and Technology of Tianjin University to

support discipline construction and talent cultivation;

Relying on the public welfare foundation the Company actively carries out public welfare projects such as

agricultural support and public welfare assistance in cooperation with local governments schools and communities In addition the Company also focuses on medical and health care social culture infrastructure construction and

in places such as Xizang where the Company is registered so as to enhance the intrinsic power of rural economic development.development and promote rural revitalization.As of the end of the reporting period the Company's investment in rural revitalization amounted to RMB

224000 benefiting a total of 2765 people. Other fields

The Company donated RMB 50000 RMB to Naga Village in Xizang for the renovation of the villagers‘ activity center

enriching the cultural life of the villagers enhancing community cohesion and promoting harmonious community Medical and health care: Cultural development:

development;

Medical and health care: focus on the development of Cultural development: donated RMB 200000 to the

medical and health services in remote areas donating Xizang Highland Culture Development Foundation to

Donated 130 tons of fertilizer (equivalent to RMB 104000) to impoverished households in Tongliao City as a RMB 75000 to the Beila Town Health Center in Bangge promote the development of Xizangan culture;

practical action to support local agricultural development and help farmers increase their income. This has County Xizang to improve local medical service levels;

promoted the sustainable development of the local agricultural industry and provided a solid foundation for the

cultivation of rural characteristic industries. Infrastructure construction: Agricultural industry development:

Participating in rural revitalization work is not only a practice of social responsibility but also a reflection of the

Company's values. The Company will continue to uphold the concept of "taking from society and giving back to Donated RMB 100000 for the infrastructure construction Donated RMB 30000 to the Fourth Company of the Sixth

of the Baicheng Industrial Park to support local Division of the Xinjiang Production and Construction

society" actively respond to the national rural revitalization strategy deepen collaborative development with infrastructure development and economic growth; Corps to support local agricultural production and

agriculture and rural areas explore more diversified and sustainable assistance models and contribute to achieving community development;

common prosperity.95 Meihua Holdings Group Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 96

Social Contribution Charitable Donation Data (statistics by category)

To further deepen the dissemination of charitable concepts the Company makes public welfare an important part of its corporate

culture activities and has planned and carried out various forms of employee volunteer activities to inspire employee

participation enthusiasm continuously expanding the boundaries of public welfare and working together with employees and all

sectors of society to create a better future.Environmental

Education

The Company organized an online step donation activity for employees across the Company engaging over protection

4000 employees to participate online accumulating a total of 350640 volunteer hours and donated RMB

10000 to the Tongxin Guangcai Foundation in Guizhou Province through the employee walking volunteer

activity to help high school students in difficulty in Guizhou focus on their studies. Donated RMB 10000 to 1.82 million RMB 0.01 million RMB

the Shenzhen One Foundation to help children in Xinjiang stay warm during winter. Donated RMB 10000 to

the Shanghai Rende Foundation to provide books for children in Jilin Province. Donated RMB 10050 to the

Beijing Municipality Entrepreneurs Environmental Protection Foundation for planting saxaul trees in Alxa 2.23

Inner Mongolia to help combat desertification.Charitable donations

/million RMB

Carried out the Blue Envelope Communication Volunteer Activity mobilizing the Company's volunteers to Medical health Culture

establish communication companionship with 110 students in Guizhou providing psychological care and

support totaling RMB 39700.

0.075 million RMB 0.2 million RMB

Total social

donations 2.4 6 million RMB

Investment in

rural revitalization 0.22 million RMB

2024 Charitable

Social donations 2.23 million RMB

Contribu-

tion Data Number of people

reached by rural 2765 people

revitalization measures

Employee participation

time in public welfare 351555 Hours

activities97 Meihua Holdings Group Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 98

05

Business Ethics and Anti-corruption

We always regard integrity as the Company's operating

guidelines and take the core values of "Associating by honesty;

improving by attitude; thriving by integrity; lasting by unity and

harmony" as the outline. We integrate business ethics and

anti-corruption efforts into key business processes such as

procurement and sales. Through regular training internal audit

supervision and the establishment of reporting channels we

manage business ethics and anti-corruption ensuring the

company operates in compliance and builds a solid foundation

of trust.Business ethics and anti-corruption 99

management system

Business ethics and anti-corruption 100

whistleblowing mechanism

Business ethics and anti-Corruption 101

management measures

Key indicators 102

Supplier anti-corruption management 10299 Meihua Holdings Group Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 100

Business ethics and anti-corruption Business ethics and anti-corruption

management s ystem r eporting Mechanism

Meihua Group always adheres to the management policy of "acting in accordance with regulations being honest and trustworthy resisting The Company maintains a "zero tolerance" stance towards any form of bribery and corruption. The Company's Audit Department

corruption and pursuing excellence." It strictly implements the Anti-corruption Management Measures of Meihua Holdings Group Co. Ltd. and the continues to implement the Reporting and Reporter Protection Management System of Meihua Holdings Group Co. Ltd.Anti-bribery Management Manual of Meihua Holdings Group Co. Ltd. Relying on a clear anti-corruption organizational structure defined authority continuously standardizes the reporting management process improves reporting channels regulates the reporting investigation

distribution and systematic corruption prevention and control mechanisms it strictly regulates the professional behavior of middle and senior process and enhances reporter protection measures and starting from various aspects such as information reception storage

management as well as ordinary employees strives for creating a clean honest diligent and dedicated atmosphere within the Company and and circulation maintains the sources of reporting information strictly confidential creating a safe and reliable reporting

fundamentally eliminates behaviors that harm the legitimate interests of the Company and its shareholders. environment for reporters.The Company's business ethics and anti-corruption system covers the Company and its subsidiaries with a coverage rate of 100%.Anti-corruption organizational structure and responsibilities The company investigated and handled cases in 2024

30 item s

Audit Committee General Manager Audit Department Business Department Internal reports

Conduct regular Implement the

Regularly review the Develop and implement

evaluations and reviews of the annual inspection plan requirements of the system anti-bribery management

the suitability and

system and report the compliance

and strictly adhere to

effectiveness of the and risk assessment results management objectives.anti-bribery management of the anti-bribery

system and its objectives management system to the

General Manager

2 item s 100 %

During the reporting period the Company passed the ISO37001 anti-bribery Serious incidents Response rate for bribery whistleblowing

management system certification and the anti-bribery management system certification

coverage rate reached 100%.Reporting channels

Internal reporting: Reporting Email:

Feishu Anonymous mhshenji@meihuagrp.com

Reporting Platform101 Meihua Holdings Group Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 102

Business ethics and anti-corruption Key indicators

management measures

Specific content of measures 0 0

Number of cases involving corruption concluded Number of litigation cases involving commercial

Regular financial audit Due diligence ethics concluded

Conduct independent financial audits regularly to As part of financial control for bribery risk

effectively prevent bribery risks; assessment conduct due diligence on specific

transactions activities business partners or the

Company's employees; 0 30 item s

Number of incidents of business ethics Intra-company reporting matters investigated and

andanti-corruption reporting handled

Special audit Integrity pre-control

Utilize internal control testing methods to conduct Assess and identify high-risk positions and require

special internal control audits to identify new employees in key positions such as

deficiencies and loopholes in business procurement sales human resources and finance 2 item s 24 4 hours

management promote the Company's stable to sign integrity commitment letters for the Intra-company serious reporting matters Duration of business ethics and anti-corruption

operation prevent violations and disciplinary risks purpose of pre-control; investigated and handled training for employees

standardize employee behavior and reduce

compliance risks;

Supplier anti-corruption management

Key management matters Bribery compliance inspection

Meihua Group continuously builds a compliance governance system for the entire procurement business chain to

Focus on internal control compliance management Implement the ISO 37001 anti-bribery standardize the operational standards and responsibilities of procurement personnel internally and clarify the

in areas such as procurement storage sales management system standard establish an integrity performance requirements for business partners externally forming a dual-directional and

operations quality human resources finance and internal audit team and conduct anti-bribery multi-dimensional constraint mechanism. Relying on the company's internal management system to implement

assets; internal control compliance inspections for the embedded supervision it has established a standing audit mechanism to achieve dynamic identification and

Company and its subsidiaries to prevent and closed-loop governance of corruption risks through penetrating inspection of the procurement process dynamic

respond to business ethics and bribery risks; assessment of supplier admission and joint review of contract performance.Risk prevention System publicity training

Use the identification analysis and evaluation of Organize relevant business departments to

bribery risks a means of focusing on anti-bribery conduct business ethics and

management and preventing bribery from anti-corruption training;

occurring; In 2024 a total of 8 training sessions were

Business ethics and anti-corruption risk conducted focusing on key positions such as

assessments cover the Company and all procurement sales and finance with a training

subsidiaries suppliers and partners; duration of over 244 hours and a total of 1293

trainees achieving full coverage of the Company's

business operation chain.103 Meihua Holdings Group Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 104

Appendix Environmental indicators

Environmental

Specific indicators Unit 2024

ESG data sheets indicators

Total GHG emissions tCO 2 e 9030482.02

Financial indicators

Scope 1 tCO 2 e 8692810.04

Indicator Unit 2024 Climate

Scope 2 tCO 2 e 337671.98

change

Operating income RMB 100 million 250.69

Emission intensity tCO2e/RMB 100 million 360.22

(calculated per RMB 1 million

Net profit attributable to the

RMB 100 million 27.40 of operating income)

parent company

Total energy consumption tce 3677671.00

Total assets at end of period RMB 100 million 238.10

Direct energy tce 3540405.97

Governance indicators

Coal tce 3533179

Business ethics and anti-corruption management

Gasoline L 69849

Indicator Unit 2024

Diesel Ton 315

Energy

ISO37001 Anti-Bribery Management Percentage 100% utilization

System Certification Coverage Natural gas m3 7662165

Number of incidents of business ethics

Case 0

andanti-corruption reporting Indirect energy tce 137265.03

Number of embezzlement litigation

Case 0

cases concluded Electricity MWh 1116883.92

Number of cases involving commercial

Case 0 Clean energy usage KWh 304874044.71

ethics concluded

Internal reporting matters Energy use intensity GJ/RMB 1 million 4293.92

Item 30

investigated and handled (calculated per RMB 1 million

of operating income)

Serious matters handled Item 2 Total number of energy

conservation and emission Person 200

reduction training participants

Energy

Total hours of business ethics and Total hours of energy

Hours 244 conservation

anti-corruption training for employees conservation and emission Hour 800

and emission reduction training

reducti Coverage of supplier

carbon reduction Percentage 42%

program105 Meihua Holdings Group Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 106

Environmental Specific indicators Unit 2024 Environmental Specific indicators Unit 2024

indicators indicators

Environmental management system Percentage 100% Emissions of sulfur oxides (SOx) Ton 1434.85

certification ratio

Environmental Atmospheric

Emissions of nitrogen oxides Ton 1860.63

compliance Environmental violations Case 0 pollutant (NOx)

management emissions

Ton 192.81

Investment in environmental RMB 10000 6851 Emissions of volatile organic

protection funds compounds (VOCs)

Total water intake Ton 35361776

Total volume of waste Ton 1553120.78

generated

Total water consumption Ton 54980998 Density of hazardous 0.02

waste(calculated per RMB 1 Ton/RMB 1 million

million of operating income)

Water resource recycling amount Ton 18023399

Total volume of hazardous Ton 467.71

waste generated

Water resource Alternative water usage Ton 2000

utilization Volume of waste activated Ton 268.36

carbon generated

Proportion of water intake Percentage 100%

from high-risk areas Volume of waste

vanadium pentoxide Ton 0

Percentage of crops purchased Percentage 100% generated

from areas with high or extremely Volume of waste

high baseline water pressure nickel-containing catalyst Ton 42.5

generated

Water-related violation incidents Case 0

Volume of waste zinc oxide Ton 37.72

catalyst generated

Total volume of Ton 26330709

industrial wastewater Waste Volume of waste Ton 100.91

engine oil generated

Total volume of domestic wastewater Ton 876234 Volume of waste

detection liquid Ton 1.78

generated

Chemical oxygen demand Ton 2185.68

Empty waste

(COD) Ton 0.84

Water pollutant reagent bottles

emissions Ammonia nitrogen (NH3-N) Ton 263.27

Volume of waste paint Ton 9.10

bucket generated

Total nitrogen (TN) Ton 841.70

Volume of waste toner Qty 2393

cartridge generated

Total Phosphorus (TP) Ton 79.77

Volume of waste ink Qty 1644

cartridge generated

Total emission of air pollutants Ton 3728.57

Volume of waste Qty 11306

Atmospheric battery generated

pollutant emissions

Emissions of particulate matter (PM) Ton 434.6 Volume of waste electronic Ton 2.33

garbage generated107 Meihua Holdings Group Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 108

Environmental

Specific indicators

indicators Unit 2024 Indicator Unit 2024

Density of non-hazardous waste 61.93

(calculated per RMB 1 million of Finished product qualification rate Percentage 100%Ton/RMB 1 million

operating income)

Total volume of non-hazardous Ton 1552653.07 Quantity of recalled products Ton 354

waste generated

Volume of industrial Major liability incidents related to product Case 0

waste generated Ton

871655.58 and service safety and quality

Waste

Volume of kitchen waste Ton 545.16 Coverage of quality training for employees Percentage 100%

generated

Volume of dust Ton 678346.34 Total hours of product quality training for Hour 47295

generated employees

Volume of office Ton 2105.99 Total number of employees participating in

waste generated Person 2373product quality training

Reduction in packaging material weight Ton 120 PPeerrcceennttaaggee ooff ssuupppplliieerr pprroodduucctt qquuaalliittyy certification 百Pe分rc?entage 43%

certification

Recycling amount of packaging materials Ton 1098

Number of customer complaints Case 89

Primary plastic Ton 28000

category

Packaging material

utilization Primary paper Ton 750 Chemical safety

category

Weight of packaging

materials

Secondary wood Ton 3600 Indicator Unit 2024

category

Secondary paper Ton 1900 Proportion of chemicals identified/classified by the

category Company to all chemicals listed in the Hazardous Chemicals Percentage 2.2%

Information List (2023)

Social indicators

Disclosure scope of chemicals Percentage 100%

Product and service safety and quality

Assessment scope of chemical hazards Percentage 100%

Indicator Unit 2024

Product quality certification coverage Percentage 100%

Product testing pass rate Percentage 100%

Testing pass rate of incoming products Percentage 99.80%109 Meihua Holdings Group Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 110

R&D and innovation

Indicator Unit 2024

Indicator Unit 2024 Total number of Tier-1 suppliers Qty 349

Amount of R&D investment RMB 100 million 7.33

Key Tier-1 suppliers Qty 86

Proportion of R&D investment to income from primary Percentage 2.93%

business Key non-Tier 1 suppliers

Qty 6

Number of R&D personnel Person 402

Number of suppliers with high ESG risk Qty 1

Proportion of R&D personnel to the total number of Percentage 3.13%

employees of the Company Tier-1 suppliers

Qty 1

R&D personnel with a bachelor's degree or higher Percentage 60.95%

Increased proportion of suppliers with high ESG risk Percentage 93%

Number of valid patents during the reporting period Item 160 Proportion of products with raw materials traceable to the Percentage 100%

place of origin

Invention patents Item 109 Proportion of cost of food raw materials that have obtained Percentage 98%

third-party certification

Utility model patents Item 49

Employment situation of the Company

Design patents Item 2

Number of Number of employees

Indicator

employees (proportion)

Number of newly authorized patents in 2024 Item 39

Total number of employees 12858 100.00%

Negative events in technology ethics Item 0

Male employees 8337 64.84%Number of

employees by

Data security and customer privacy protection gender

Female employees 4521 35.16%

Indicator Unit 2024 Below 20 years old 23 0.18%

Number of information security and privacy leakage incidents Case 0

20-29 years old 3605 28.04%

Number of

employees by

Supply chain management 30-39 years old

469836.54

age

40-49 years old 3426 26.64%

Indicator Unit 2024

Proportion of suppliers signing the Supplier Code of Conduct Percentage 76% 50-59 years old 1099 8.55%111 Meihua Holdings Group Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 112

Number of

Indicator employees Proportion Indicator 2024

Number of 60 years old and above 7 0.05% Periodic on-the-job physical examination rate 47%

employees by age

Chinese mainland 12852 99.95%

Employee training

Number of

employees by regions

Overseas regions 6 0.05%

Indicator 2024

Han 9544 74.23% Total training time of employees 2895036 hours

Mongolian 2294 17.84% Average training hours per employee 225.15 hours

Number of employees Manchu 685 5.33% Training ratio of all employees 97.73%

by ethnicity

Hui 179 1.39% Training ratio of male employees 98.72%

Other ethnic groups 156 1.21% Training ratio of female employees 99.08%

Proportion of female senior executives 4 36% Training ratio of primary-level employees 98.38%

Employees from vulnerable groups 87 0.68% Training ratio of middle management 93.05%

Training ratio of middle-senior management 100%

Human resources management performance

Training ratio of senior management 100%

Indicator 2024

Return on investment in human capital 175% Work safety

Employee satisfaction 3.91 (full score is 5 points)

Indicator Unit 2024

Employee satisfaction survey coverage 88% Safety management system certification ratio Percentage 100%

Proportion of employees who signed collective agreements 100% Number of employees participating in work safety training Participant 61049

Proportion of employee subject to human rights assessments 90% Number of contractors participating in work safety training Participant 10404

Coverage of pre-employment physical examination for 100% Frequency of work-related injuries among employees

every 1000000

2.169

working hours

employees113 Meihua Holdings Group Co. Ltd. 2024 Environmental Social and Governance (ESG) Report 114

Benchmark Index Table

Indicator Unit 2024

Frequency of work-related injuries among contractor's every 1000000 0.77 Corresponding

employees working hours Dimension S/N Guideline Topic Corresponding Title Page NumberGuideline Article

every 1000000

Total recordable injury frequency rate (TFIFR) among 0.581

working hours

employees

Addressing Climate Articles 21 to 28

1 Combating climate 49-56Change change

Social contribution Exhaust gas 2 Pollutant Discharge Article 30 63-64management

3 Waste Treatment Article 31 Waste Management 65

Contribution Indicators Sub-item indicators Unit 2024

Ecosystem and

4 Article 32 Biodiversity ConservationBiodiversity 66

Total amount of social donations RMB 10000 245.875 Conservation

Environmental Compliance Article 33 Environmental Compliance 5 57-61

Management Management

Investment in rural revitalization RMB 10000 22.4

6 Energy Utilization Article 35 Combating climate change 53-56

Charitable donation amount RMB 10000 223.475 Water Resource Water resource utilization

7 Article 36 62-63Utilization and water-saving measures

Social contribution Water-saving measures; Number of people reached by rural Person 2765 8 Circular Economy Article 37 green packaging materials 63、66

revitalization measures

9 Rural Revitalization Article 39 Rural Revitalization 93Hours of participation in employee Hour 351555

volunteer activities

10 Social Contribution Article 40 Social Contribution 94-96

Number of employees participating Participant 4444

in volunteer activities 11 Innovation-driven Article 42 Innovation-driven and 39-46

scientific and technological

Average participation duration of employee et79.11 12 Technology Ethics Article 43 Sc

hieicnsce and Technology 46

participating in volunteer activities Hours/participant Ethics

13 Supply Chain Security Article 45 Supply Chain Security 69-73

Charitable donations RMB 10000 223.475

14 Equal Treatment of Small and Article 46 Treat small and medium-sized 73

Medium-sized Enterprises enterprises equally

Education RMB 10000 181.975 Product and Service Article 47 Product and Service

15 Safety and Quality Safety and Quality 27-36

Charitable donations

(statistics by category) Environmental protection RMB 10000 1 Data Security and Customer

16 Article 48 Data security and customer 38Privacy Protection privacy protection

Healthcare RMB 10000 7.5

17 Employees Article 50 Human Resources 74-84

Management

Culture RMB 10000 50 18 Due Diligence Article 52 / /

Communication with

19 Article 53Stakeholders Stakeholder Communication

21

20 Anti-commercial Bribery Article 55 Business Ethics and 97-102

and Anti-corruption Anti-Corruption

21 Anti-unfair Competition Article 56 / /

Enviroment Society Governance