CONTENTS

0103

About This Report 01 Building on Green Foundations People-oriented

ESG Data Tables and Notes 77

The Letter from the Chairman 03 Thriving in Ecological Harmony Shared Value Guidelines No. 14 of Shanghai Stock Exchange 85

About LANPEC 05 for Self-Regulation of Listed Companies—

Sustainability Report (Trial) Index Table

Sustainability (ESG) Management 08 Environmental Compliance Management 15 Employee Rights and Benefits 53 GRI Content Index 86

Energy Usage 16 Occupational Health and Safety 56

Usage of Water Resources 19 Employee Training and Development 6 1

Waste Disposal 20 Contributions to the Society 63

Pollutant Discharge 21 Rural Revitalization 64

Circular Economy 24

Climate Change Tackling 24

Ecosystem and Biodiversity Protection 30

0204

Innovation Leadership Building on Standards to Ensure

Intelligently Creating the Future Steady and Sustainable Progress

Innovation-driven 33 Corporate Governance 69

Industry Development 38 Risk Management and Compliant Operations 72

Safety and Quality of Products and Services 41 Anti-commercial Bribery and Anti-corruption 74

Data Security and Customer Privacy Protection 4 7 Anti-unfair Competition 76

Supply Chain Security and Management 482025 Sustainability Report

About This Report Report Access

This report is published in electronic form and can be viewed on the Company’s official website (www.lanpec.com) or the Shanghai Stock Exchange website (www.Reporting Scope sse.com.cn).This report covers Lanpec Technologies Limited and its subsidiaries (collectively referred to as “LANPEC” “the Company” or “We”). Unless otherwise specified the

reporting scope is consistent with that of the Company’s consolidated financial statements for the same period. Principles of Preparation

List of Company Names and Abbreviations Appearing in This Report Materiality

The Company has identified material topics related to its operation that all stakeholders are concerned about as the highlights of this report. The presentation of

Full Name Abbreviation material topics in this report focuses on the characteristics of the industry in which the Company operates and the nature of its business activities. For details on

the process and results of the materiality analysis please refer to the “Double Materiality Analysis” section of this report.Lanpec Technologies Limited LANPEC the Company We Accuracy

This report ensures that the information is as accurate as possible. In particular the measurement of quantitative information has been stated in terms of data

scope calculation basis and assumptions to ensure that the margin of error in the calculation is not misleading to users of the information. The quantitative

LANPEC (Shanghai) Petrochemical Equipment Co. Ltd. LANPEC (Shanghai) information and the accompanying information are detailed in the “ESG Data Tables and Notes” section of this Report.Balance

Machinery Industry Lanzhou Petrochemical Equipment Testing

Lanzhou Testing Institute

Institute Co. Ltd. The content of this report reflects objective and true facts and presents balanced disclosures of both positive and negative information relating to the

Company.Clarity

Reporting Period This report is published in Simplified Chinese and English versions. This report contains tables and model diagrams as an aid to understanding the textual content of this report. To facilitate faster access to information for stakeholders this report provides a table of contents and a cross-reference index of ESG standards.The reporting period is from 1 January 2025 to 31 December 2025. Unless otherwise specified the data in this Report refer to the period covered. Quantification

This report discloses key quantitative disclosures and where possible historical data.Basis for Preparation Comparability

The statistical methods and disclosure practices for the same quantitative disclosure in this report are consistent across reporting periods. If there are any

This report was prepared in accordance with the Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of Listed Companies—Sustainability Report (Trial) changes in the data collection measurement or calculation methods the relevant data are retrospectively adjusted with explanations of the adjustments and

(April 2024) (hereinafter referred to as the Guidelines) the Guidelines No. 1 of Shanghai Stock Exchange for Self-Regulation of Listed Companies—Standardised their reasons provided in the notes to this report so that stakeholders can conduct meaningful analyses and assess the trend of the Company’s ESG performance

Operations (Revised in May 2025) the Guidelines No. 4 of Shanghai Stock Exchange for Self-Regulation of Listed Companies—Preparation of Sustainability Reports level.and with reference to the GRI Standards (2021) issued by the Global Sustainability Standards Board (GSSB).Integrity

The scope of the disclosures is in line with that of the Company’s consolidated financial statements.Data Description

Timeliness

The data and cases in this report are derived from official records of the actual operation of the Company. The financial data in this report are all in RMB. In case of This is an annual report covering the period from 1 January 2025 to 31 December 2025. The Company strives to publish this report as soon as possible after the end

any discrepancies between the financial data and the Company’s annual financial report the annual financial report shall prevail. of the reporting year to provide timely information for stakeholders’ decision-making.Verifiability

The cases and data in this report were derived from the original records or financial reports of the Company’s actual operations and the sources and calculation

processes of the disclosed data are all traceable.

01 022025 Sustainability Report

The Letter from the Chairman Strengthening the foundation of governance with compliance safeguarding sustainable success

Corporate governance is the cornerstone of sustainable development. In 2025 we continued to improve the corporate governance structure optimise the decision-

making mechanism strengthen institutional execution and advance the Company’s governance towards greater standardisation transparency and efficiency. We

2025 is an important year in the development history of LANPEC. In the face of the severe challenges posed by the complex and ever-changing global economic have established a full-process risk prevention and control system featuring “pre-event warning in-process control and post-event improvement” embedding

landscape and profound industry restructuring all LANPEC people with unflinching courage and unwavering resolve broke through adversity and achieved renewal compliance requirements into every stage of operational decision-making to ensure that we maintain steady and sustainable development in a complex and ever-

amid transformation. We not only achieved a historic turnaround in operating performance but also made solid progress on the path of sustainable development. changing environment. We deeply advance the development of a culture of integrity and foster a sound atmosphere of probity dedication and entrepreneurship. It

Here on behalf of the Company’s Board of Directors I would like to extend our most sincere gratitude and highest respect to leaders at all levels partners and is precisely because of our persistent efforts in governance and compliance that the Company’s reputation and image in the capital market have steadily improved

friends from all sectors who have long cared for and supported LANPEC and to every employee and family member who have selflessly devoted themselves to our ESG rating has risen to the forefront of the industry and we have been selected as an Outstanding Practice Case in Sustainable Development by the China

LANPEC’s rebirth! Association for Public Companies. This not only recognises our past efforts but also inspires us to uphold the ESG philosophy to higher standards in the future and

create greater value for society.Adhering to green development and driving the low-carbon transformation of industries through

innovation Grateful for the opportunities of the times shouldering our responsibility to create a better future

As a national champion in the field of energy and chemical equipment we deeply recognise that green development is the defining feature of high-quality LANPEC’s rebirth and development would not have been possible without the steadfast support and dedicated guidance of our shareholders the care and support

development and an even greater responsibility that we cannot shirk in this era. The Company closely aligns with the national “Dual Carbon” strategy focusing on of local governments the trust and recognition of our customers and the concerted efforts of all employees. We always remain grateful and transform this

the two major fields of petroleum and petrochemical equipment and new energy equipment. We use technological innovation to drive industrial innovation further altruistic spirit into practical actions to serve national strategies and respond to society’s expectations. We actively participate in rural revitalization and public

strengthen our heat exchange mass transfer and separation technologies and promote the iterative upgrading of core products towards greater efficiency welfare initiatives drive local development through industrial assistance and strive to become a responsible and caring corporate citizen.energy saving and lower carbon emissions. We deeply participate in the research development and manufacturing of clean energy equipment. A number of Looking ahead to the 15th Five-Year Plan we will accelerate our transformation from a “single equipment manufacturer” into an “integrated energy and chemicalbenchmark projects we undertake at home and abroad help customers achieve their energy saving and carbon reduction goals through breakthroughs in our equipment solutions provider with core equipment manufacturing capabilities” and build a full-chain service system covering “design manufacturing engineeringtechnologies contributing LANPEC’s expertise to the building of a new energy system. At the manufacturing end we comprehensively implement lean management and operation and maintenance”. We will continue to deepen our ESG philosophy make sustained efforts in environmental responsibility social responsibility and

optimise production processes strengthen resource recycling and integrate green principles throughout the entire value chain of research and development governance responsibility strive to become a leader in sustainable development in the energy and chemical equipment sector create more sustainable value for

procurement production and services striving to build a modern factory that is environmentally friendly and resource-efficient and taking practical action to employees shareholders and society and jointly move towards a brighter future that is more resilient more dynamic and warmer!

safeguard our environment.Putting people first and harnessing the strength of dedicated employees through careEmployees are the most valuable asset of an enterprise and the core driving force behind sustainable development. We uphold the philosophy of “Building aFulfilling Community Empowering Ambitious Employees” and remain committed to providing every member of LANPEC with a platform to pursue excellence and

realise their professional aspirations. By continuously optimising the organisational structure and implementing the “Small Front-end Large Platform” model

we have enabled more employees with ideals and capabilities to temper and grow through practical experience. We deepen the reform of the remuneration and

performance appraisal system and care for our employees with dedication and compassion. From the continuous improvement of shuttle buses dormitories and

canteens to condolences extended to the families of employees on overseas projects and the establishment of a two-way family visit mechanism the warmth

of the organisation permeates the hearts of every employee. At the same time we have always regarded work safety as the lifeline of the enterprise and with a

strong sense of responsibility that keeps us constantly vigilant we strengthen our safety defences maintaining a stable workplace safety record for consecutive

years so that every employee can work with peace of mind and live with dignity in a safe and healthy environment.

03 042025 Sustainability Report

About LANPEC Corporate Culture System

LANPEC’s Corporate Culture System

Company Profile

LANPEC was listed on the Main Board of the SSE in 2011. For decades LANPEC has consistently pursued innovation-driven growth guided by market demand and

strengthened by lean manufacturing. Focusing on its core expertise in heat transfer mass transfer and separation technologies the Company has evolved into a Vision Operation and Management Philosophy

technology-focused enterprise specialising in petroleum/petrochemical energy equipment and new energy equipment sectors. LANPEC delivers integrated system

solutions covering products engineering and services to customers worldwide. A technology enterprise of excellence Development Philosophy Innovation-driven development Green development

and enduring vitality Compliance-driven development Win-win development

A happy home of prosperity and care Talent Philosophy Supporting employees to grow and succeed

Company Profile Research Philosophy Venturing into uncharted territories and pioneering new

frontiers with wisdom

Quality Philosophy Quality is the market Quality is safety Quality is life

Safety Philosophy Absolute reliability One failure negates all甘肃蓝科石化高新装备股份有限公司

Mission Integrity Philosophy Uprightness and integrity Simplicity and progress

Company name

Promoting technological advancement

in the industry

ore Function Distinctive CultureC

Fulfilling the mission and

Lanpec Technologies Limited responsibilities of a central state- Clear goals are the driving

owned enterprise force for progress

English name Difficulties and challenges

are the ladder to advancement

Focus on strivers high-

Vision performance orientation

8 Lanke Road Anning District Lanzhou City Gansu Province Core Values Trust entails responsibility

responsibility requires

Registered address accountabilityCustomer first

Company matters are

Integrity as the handled by employees

foundation

The Company is principally engaged in the research and development design manufacturing installation and technical employee matters are cared

services of specialised equipment for the petroleum petrochemical and new energy sectors as well as quality and Innovation and for by the Company

transcendence

performance inspection and testing services for petroleum and petrochemical equipment. Our products and services mainly Mis

s Cultivate self-reliance

include heat exchangers air coolers crude oil production separation and processing equipment fibre liquid membrane Maintain Steady practice gratitude

and Sustainable

separation technology and complete systems membrane separation technology and products spherical tanks molten salt Strive until there is no room Development

tanks towers vessels petroleum drilling and production equipment and inspection and testing services. The products are for further effort turn the Principal businesses impossible into possible

mainly used in industries such as petroleum chemicals power shipbuilding light industry and food pharmaceuticals and

textiles.LANPEC Spirit

The Company’s production facilities are located in two key regions - Lanzhou and Shanghai. The total area is

approximately 620 mu with the production floor space covering 150000 square meters. The facilities feature a

maximum lifting capacity of 500 metric tons. Core Function LANPEC Spirit (Spirit of Perseverance)

* Lanzhou Base: The facility occupies approximately 110 mu of land with nearly 40000 square meters of production

area. It holds the A1-grade pressure vessel manufacturing certification and primarily produces various high-end A market-oriented innovative force for self-reliance and self- Sparing no effort enduring rigorous tempering traversing every

strengthening in petroleum petrochemical and new energy obstacle and enduring all hardships

petrochemical products including high-efficiency energy-saving heat exchangers advanced tower vessels and LNG equipment technology

spherical tanks with a maximum lifting capacity of 200 metric tons.Business Layout * Shanghai Base: The facility spans approximately 510 mu of land with about 110000 square meters of workshop

area. Holding the A1-grade pressure vessel manufacturing certification it primarily undertakes production of high-

pressure hydrogenation equipment fertilizer production devices and plate-type series products featuring a maximum Ignite Passion Like a Spreading Wildfire Cast

lifting capacity of 500 metric tons. the Soul to open a New Chapter

0506

ion

Distinctive Culture

es

Core Valu

Operation a ent

P nh d Manage

m

ilosophy2025 Sustainability Report

Major ESG Honours and Recognition Sustainability (ESG) Management

ESG Governance and Management Structure

ESG Rating System ESG Rating Performance To improve the ESG management system the Company has formulated and implemented the ESG Management System. In 2025 the Company reviewed and

approved the Proposal on Renaming the Strategy Committee of the Board of Directors and Revising the Committee’s Working Rules renaming the Strategy

Committee of the Board of Directors as the Strategy and Sustainable Development Committee of the Board of Directors and simultaneously revising the Working

Rules for the Strategy and Sustainable Development Committee of the Board of Directors with the aim of further strengthening the Board’s strategic guidance and

supervision functions in sustainable development and enhancing the Company’s sustainability capabilities.LANPEC’s Sustainability Management Structure

Wind ESG Rating

Board of Directors

* The Board of Directors is the leadership and decision-making body for ESG work.* It is responsible for reviewing and approving the Company’s ESG management system reviewing and approving the

Company’s ESG report and discussing evaluating and approving material topics work objectives information disclosure

A-

external reporting and other matters in ESG disclosure.SynTao Green Finance ESG Rating Update date: 2025 Q4

Strategy and Sustainable Development Committee

* The Strategy and Sustainable Development Committee is mainly responsible for researching and making

Decision-making recommendations on the Company’s long-term development strategic plans major investment proposals sustainability

A- Level and ESG matters and is accountable to the Board of Directors.Update date: 2025 Q4 * It identifies sustainability-related risks and opportunities that have a significant impact on the Company’s business and

CCXGF ESG Rating guides the management to take appropriate response measures in relation to sustainability risks and opportunities.* It supervises and inspects the implementation of the Company’s environmental social responsibility and

corporate governance efforts assesses the Company’s overall sustainability performance and makes corresponding

recommendations and reviews the Company’s sustainability-related disclosure documents.Strategic Investment and Sustainability (ESG) Working Group

ESG Honours Issuing Organisation ESG Honour Performance

* It is led by the General Manager of the Company with the deputy general managers in charge of planning and

investment and sustainable development respectively serving as deputy heads and the heads of the relevant functional

departments serving as members of the group.* It is mainly responsible for the principal duties and powers of the Strategy and Sustainable Development Committee:

Shenzhen Value Online Information Technology Co. Ltd. * i. to study and make recommendations on the Company’s long-term development strategic plans;

* ii. to study and make recommendations on major investment and financing proposals that in accordance with the

Articles of Association are subject to approval by the Board of Directors;

* iii. to study and make recommendations on major capital operations and asset management projects that in

accordance with the Articles of Association are subject to approval by the Board of Directors;

* iv. to study and make recommendations on the Company’s sustainability targets strategic plans governance structure etc.;

Management Level * v. to identify sustainability-related risks and opportunities that have a significant impact on the Company’s business and

guide the management to take appropriate response measures in relation to sustainability risks and opportunities;

* vi. to supervise and inspect the implementation of the Company’s environmental social responsibility and corporate

China Association for Public Companies governance efforts assess the Company’s overall sustainability performance and make corresponding recommendations;

* vii. to review the Company’s sustainability-related disclosure documents and ensure the completeness and accuracy of

ESG-related disclosed information including but not limited to the annual sustainability report;

* viii. to study and make recommendations on other major matters affecting the Company’s development;

* ix. other matters authorised by the Board of Directors.The “Complete Technology and Equipment for High-Temperature Molten SaltStorage Tanks in Molten Salt Energy Storage Systems” was shortlisted as one

China Enterprise Confederation Office Board Office (Strategic Investment Department)

of the 2025 Outstanding Practice Cases for Enterprise Green and Low-Carbon

Development. * It is responsible for leading and organising the daily affairs of the committee including but not limited to preparatory

work for decision-making daily liaison meeting organisation archive management and implementation of relevant

Implementation Level resolutions.

07 082025 Sustainability Report

In 2025 the Strategy and Sustainable Development Committee of the Board of Directors performed its duties and reviewed and approved the Company’s 2024 LANPEC’s Key Stakeholders Topics of Concern and Responses

Sustainability Report. In addition to enhance the professionalism and standardisation of the Company’s ESG work the Company coordinated and advanced multi-

level multi-dimensional ESG capacity-building activities: organising certain senior managers and relevant employees to participate in ESG report preparation

training held by the Shanghai Stock Exchange to gain an in-depth understanding of regulatory requirements and disclosure standards; working with ESG consulting Key Stakeholders Topics of Concern Communication Channels and Responses

experts to hold the “Independent Directors Lecture” and the 2025 ESG Work Kick-off Meeting providing centralised training and seminars for the Company’s

independent directors senior managers and relevant personnel from various functional departments systematically studying the ESG governance framework * Corporate Governance

strategic integration and practical approaches and effectively strengthening employees’ awareness and execution capabilities in ESG. * Risk Management and Compliant Operations

* Shareholders’ Meeting

* Anti-commercial Bribery and Anti-corruption

* Results Briefings

Double Materiality Analysis Shareholders and * Anti-unfair CompetitionInvestors * Investor Communication Activities* Safety and Quality of Products and Services

* Innovation-driven

Double Materiality Analysis

In 2025 the Company systematically conducted a double materiality analysis of ESG topics in accordance with the requirements of the Guidelines No. 14 of Shanghai

* Climate Change Tackling

Stock Exchange for Self-Regulation of Listed Companies—Sustainability Report (Trial) and the Guidelines No. 1 of Shanghai Stock Exchange for Self-Regulation

* Environmental Compliance Management

of Listed Companies—Standardised Operations (Revised in May 2025) while also referring to mainstream domestic and international sustainability policies and

* Energy Usage * Customer Satisfaction Survey

disclosure standards and considering industry characteristics the Company’s strategic direction and actual operating conditions.* Circular Economy * After-sales Service and Complaint Channels

This process fully considered the key concerns of the Company’s internal and external stakeholders preliminarily identified and screened topics and assessed and * Supply Chain Security and Management * Customer Exchanges

prioritised topics from the two dimensions of “financial materiality” and “impact materiality” thereby forming a double materiality matrix for focused disclosure and Customers * Safety and Quality of Products and Services * ESG Information Disclosure

response in this report. * Data Security and Customer Privacy Protection * Climate Change Tackling Actions

* Innovation-driven

LANPEC’s Double Materiality Analysis Process in 2025 * Industry Development

Step 1 Step 2 Step 3 Step 4

Background Identification Preliminary Identification of Topics Materiality Analysis of Topics Confirmation and Approval

and Understanding of Topics * Employee Welfare Activities

* Employee Rights and Benefits

* Employee Training System

Interpret national macro With reference to domestic and Communicate with internal and external Based on the comprehensive * Occupational Health and Safety * Employee Appraisal and Promotion

policies and industry international ESG standards experts consider industry characteristics assessment results Employees * Employee Training and Development * Employee Congress and the Labour Union

development trends benchmark the key topics in ESG and key concerns of stakeholders assign determine whether each

and analyse the external reports of leading companies in scores to the assessment from two topic is “material” and

market environment the same industry and incorporate dimensions: importance to the Company’s form a double materiality * Climate Change Tackling

in which the Company feedback from routine stakeholder operation and development (namely matrix. * Environmental Compliance Management * Climate Change Tackling Actions

operates the Company’s communication to compile a list of financial materiality covering the likelihood

The Board of Directors * Waste Disposal * Information Disclosure

business activities and ESG topics that the Company needs of short- medium- and long-term impacts

of the Company is Government and * Pollutant Discharge * Institutional Visits

industry characteristics. to focus on. and the scale of financial effects) and

responsible for reviewing Regulatory Authorities * Rural Revitalization * Participation in Relevant Meetings

importance of impacts on the economy

Identify the key processes An expert panel composed of internal and disclosing the * Anti-commercial Bribery and Anti-corruption

society and the environment (namely

in the value chain where and external experts is assigned material topics in this

impact materiality covering the likelihood

the Company may have to conduct due diligence analyse report.and severity of impacts) set appropriate

significant impacts the actual and potential impacts * Supplier Training

materiality thresholds and determine the

as well as the main risks and opportunities related to * Supply Chain Security and Management * Public Tender Meetings Public Tendering

ranking of topic materiality.stakeholder groups the Company’s topics and promptly * Data Security and Customer Privacy Protection * Exchanges and Mutual Visits

affected. identify adverse impacts or risks. Suppliers and * Industry Development * Industry-academia-research Cooperation

Partners

Projects

Due Diligence and Communications with Stakeholders

In the management of the Company’s ESG topics an expert panel composed of internal and external experts carries out due diligence by coordinating * Usage of Water Resources * ESG Information Disclosure

departmental interviews research seminars and other methods. Centring on each material topic it systematically identifies the impacts risks and opportunities * Waste Disposal * Information Disclosure on the Company’s

faced in the Company’s operations providing a basis for optimising resource allocation and setting management priorities. * Pollutant Discharge Ecosystem and Biodiversity Protection Official Website and Social Media

The Company attaches great importance to communication with stakeholders and cares about their demands and expectations. In 2025 based on business and Communities and the * Contributions to the Society * Rural Revitalization and Social Contribution

operational realities the Company communicated with key stakeholders including shareholders and investors customers employees government and regulatory Public * Rural Revitalization Anti-unfair Competition Projects

authorities suppliers and partners as well as communities and the public. Through mechanisms such as regular meetings management systems and project

interactions the Company extensively collected expectations and suggestions regarding ESG management and actively responded in daily management and

operations thereby enhancing the transparency of ESG management.

09 102025 Sustainability Report

Conclusions of Materiality Analysis LANPEC’s Materiality Matrix in 2025

Impact Materiality

In 2025

10

Innovation-driven

9

Energy Usage

the Company identified a including 8

22 Contributions to the Society Safety and Quality of Products and Servicestotal of ESG topics environmental topics 8

Rural Revitalization Occupational Health and Safety

Environmental Compliance Management

Climate Change Tackling

7 Corporate Employee Training and Development

Governance

Supply Chain Security and Management

Usage of Water Resources

6 Industry DevelopmentCircular Economy Waste Disposal Pollutant

Anti-unfair Competition Discharge

Employee Rights and Benefits

5

10 social topics 4 governance topics

Anti-commercial Bribery and

4 Anti-corruption

Data Security and Customer Risk Management and Compliant Operations

Privacy Protection

3

Among these a total of 8 topics have double materiality 2 topics have financial materiality

only 10 topics have impact materiality only and 2 topics have neither financial materiality Ecosystem and Biodiversity Protection

nor impact materiality. 2

Financial Materiality

012345678910

Topics with both financial materiality and impact Topics with financial materiality but not impact materiality

materiality

Topics with impact materiality but not financial Topics with neither financial materiality nor impact materiality

materiality

Note: Among the 21 topics set out in the SSE Guidelines the topic of “Equal Treatment to Small and Medium-sized Enterprises” is not applicable to the Company; the two topics of

“Communication with Stakeholders” and “Due Diligence” are necessary processes for the Company to identify and analyse ESG topics and are addressed in the “Double Materiality Analysis”

section not included in the matrix; all other topics in the Guidelines were included in the matrix and addressed in the main body of this report; the Company independently identified the

topics of “Industry Development” “Risk Management and Compliant Operations” and “Corporate Governance”.

11 122025 Sustainability Report

Environmental Compliance Management Emergency Rescue Drills

LANPEC’s production and operations comply with the requirements of laws regulations and other regulatory requirements such as the Environmental Protection In July 2025 LANPEC organised a simulated drill in the chemical raw materials warehouse on the emergency response process for paint leakage

Law of the People’s Republic of China and the Company has formulated internal systems such as the Safety/Environmental Management Procedures and the causing ground pollution to test employees’ emergency response capabilities in the face of sudden environmental pollution emergencies and

Environmental Protection Management System. The Company and its subsidiary LANPEC (Shanghai) have obtained ISO 14001:2015 Environmental Management verify the completeness and operability of the emergency plan.System certification ensuring the systematic and standardised operation of environmental management.In 2025 the Company had no material environmental violations or non-compliance incidents received no penalties from the local municipal emergency

management authorities ecological environment authorities or relevant authorities and had no complaints from relevant parties demonstrating good

environmental compliance performance.In 2025

The Company had no material environmental

violations or non-compliance incidents

ISO 14001:2015 Environmental Management System Certification

Emergency Rescue Drill Site

(Valid Until 3 December 2026)

In terms of environmental compliance management the Company strengthened environmental protection inspections deepened risk identification and enhanced

emergency response capabilities to build an environmental compliance control system effectively reinforcing the line of defence for environmental safety. Energy Usage

Energy used by LANPEC during production and operations mainly includes electricity natural gas petrol and diesel. Among them electricity is the main source of

LANPEC’s Key Actions and Achievements for Environmental Compliance Management in 2025

power for production activities and also supports the daily operation of lighting air conditioning and office equipment in office areas; natural gas is mainly used

for gas heat treatment furnaces in the production process boiler heating and cooking in the staff canteen; petrol and diesel are used for transportation by the

Company’s official vehicles forklifts for on-site material transfer and lorries.Category Key Actions and Achievements

* Conducted regular self-inspections of environmental compliance covering key aspects such as pollutant discharge

standardised management of solid waste (hazardous waste) and the operating status of environmental protection Governance

Environmental facilities.inspections and * Established a closed-loop management mechanism covering identification rectification and acceptance. The Company complies with the requirements of laws regulations and other regulatory requirements such as the Energy Conservation Law of the People’s Republic

issue rectification Incorporated all non-conformities identified during self-inspections into the issue register clarified the responsible of China and has formulated internal systems such as the Energy Conservation and Emission Reduction Management System and the Energy Conservation anddepartments and rectification deadlines and implemented rectification measures with all rectification items passing Emissions Reduction Responsibility System to standardise energy usage management. For details of the governance structure please refer to the “Climate Changereview and acceptance effectively eliminating hidden risks in environmental management. Tackling” section of this report.Environmental risk * Conducted environmental factor identification and risk assessment annually covering the entire process

identification and of production activities products and services and kept major environmental risks under control through risk Strategy

assessment management.If the Company as a manufacturer of metal pressure vessels specialised equipment for petroleum drilling and extraction and refining and chemical processing

* Formulated tiered annual environmental training plans and carried out specialised training on environmental practices extensive energy efficiency management in the production processes and fails to effectively recover waste heat resources this may exacerbate regional

regulations internal systems and operating procedures for management and operational staff. carbon emissions and environmental burdens. If we fully leverage our technological advantages in efficient heat exchange surplus energy utilisation and system Environmental integration to promote cascade utilisation of energy and process optimisation we can provide customers with integrated solutions for energy conservation and

training and * Prepared the Environmental Emergency Risk Assessment Report and emergency plans and organised

emergency capacity comprehensive emergency drills throughout the year as planned verifying the effectiveness of the emergency efficiency enhancement supporting the green transformation of the industrial sector.building plans and enhancing rapid response and coordinated handling capabilities in the event of environmental The Company reviews the environmental impacts and potential risks arising from the energy usage process identifies challenges such as tightening policies and

emergencies. market access while also seizing development opportunities brought by energy efficiency improvement and green finance and has formulated and implemented

response strategies covering system enhancement technological upgrading and behavioural guidance.

15 162025 Sustainability Report

LANPEC’s Risks and Opportunities Analysis for “Energy Usage” LANPEC’s Key Actions and Measures for Energy Usage in 2025

Timeframes of * Implemented the Energy Conservation and Emission Reduction Management System and the Risks and Opportunities Impact Financial Impacts Response Strategies Energy management Energy Conservation and Emissions Reduction Responsibility System refined control requirements for

implementation various types of energy including electricity natural gas petrol and diesel established the statistical

principle of “who consumes who records” and implemented unified appraisal rewards and penalties

The national “Dual Carbon” strategy

for energy consumption.and local “Dual Control” policies

on total energy consumption and

energy intensity continue to intensify

Short medium Increase in

Policy risk with tighter constraints on energy

and long term compliance costs

consumption indicators which may

increase compliance costs and restrict * Made full use of the power company’s time-of-use electricity pricing policy scheduled high-power

the development of high-energy- equipment (such as resistance furnaces) to operate during off-peak hours and effectively reduced

consuming projects. basic electricity expenditure and energy consumption per unit of product.* Phased out high-energy-consumption mobile lighting equipment such as iodine tungsten lamps

promoted the use of 36-volt safe and energy-saving lighting fixtures uniformly upgraded workshop

* Track policies and regulations in a timely lighting to LED energy-saving lamps and installed sound-and-light-controlled switches in some areas

Customers and the supply chain have manner incorporate the latest regulatory Electricity use with the workshop illuminance improved while significantly reducing energy consumption following

optimisation

imposed higher requirements on requirements into the management system the lighting system upgrade.suppliers’ carbon footprint and green Medium and long Decrease in operating implement the energy conservation and

Market risk * By standardizing the use of compressed air and introducing an area-based responsibility system

manufacturing standards and low term revenue emissions reduction responsibility system we curbed leakage and waste and reduced the operating time of air compressors.energy efficiency may lead to order establish a unified appraisal system and * Completed and successfully commissioned a 1.6 MW installed capacity rooftop distributed

losses or restricted market access. reinforce energy management responsibilities photovoltaic power generation project at the office premises in December 2025. Made full use of idle

at all levels. rooftop resources at the office premises delivered localised development and utilisation of renewable

* Carry out energy efficiency diagnostics energy and effectively reduced the Company’s reliance on traditional grid electricity.for high-energy-consuming processes and

Measures such as improving energy formulate phased energy-saving technological

efficiency recovering waste heat and transformation plans.Resource * Arranged heat treatment operations scientifically and reasonably implemented centralised heat shifting electricity use to off-peak Short medium Decrease in operating

efficiency * Conduct diversified publicity and treatment of workpieces reduced furnace opening frequency and encouraged continuous boiler

opportunities periods can effectively reduce energy and long term costs professional training in conjunction with the operation to save start-up and shutdown energy consumption significantly improving natural gas

procurement costs and enhance Energy Conservation Week to enhance all Gas control utilisation efficiency and substantially reducing equipment idling and ineffective operating time.profitability. employees’ awareness of and skills in energy enhancement * Established a three-tier gas leak detection mechanism (with operating teams electromechanical

conservation. maintenance and the canteen personnel assuming respective responsibilities) regularly used

professional instruments to inspect valves and joints and strictly implemented the principle of

“extinguishing the flame and closing the valve when leaving” effectively controlling pipeline leakage

risks and ensuring gas safety and conservation.Good energy performance and green

factory qualifications help to improve

Financing Medium and long Decrease in financing

opportunities green credit standing and enhance the term costs * Closely followed the themes of publicity week and low-carbon day hung energy-saving themed

ability to obtain green credit transition banners in prominent locations posted popular science posters in public areas and played the

finance and relevant policy support. Energy Conservation Week Promotional Video on a loop on the electronic screen in the canteen vividly

showcasing the application scenarios of cutting-edge energy-saving technologies.* Organised personnel from the energy conservation and ecological environmental protection

management functions to participate online in the Energy Conservation Week training.Publicity and

education

activities

Impacts Risks and Opportunities Management

To effectively manage the energy usage-related impacts risks and opportunities the Company adheres to an institutionalised refined and technology-driven

approach continuously improving energy efficiency and optimising the energy usage structure while ensuring production and operations.Energy Conservation Week Poster Energy Conservation Week Promotional Video

17 182025 Sustainability Report

LANPEC’s Key Actions and Achievements for Usage of Water Resources in 2025

Special Training and Lectures for Energy Conservation Week

Category Key Actions and Achievements

In June 2025 the Company conducted special training for Energy * Formulated and implemented a rigorous inspection plan to carry out regular inspection and maintenance of

Conservation Week. Closely aligned with the national “Dual Carbon” facilities such as the water supply system fire-fighting water pipelines tap water pipelines heating pipelines and

strategic goals the training effectively disseminated the latest policies various types of taps. Focused on checking vulnerable parts such as pipeline connections and valve interfaces and

and technical pathways for energy conservation and emissions Infrastructure promptly identified and addressed potential leakage points.reduction by organising relevant professionals to watch the Group’s maintenance * Effectively eliminated leakage overflow dripping and seepage in the pipeline system. Completed repairs at the

featured broadcasts study green transformation knowledge and carry earliest opportunity on pipeline damage or tap failures identified during inspections thoroughly eliminated the hidden

out dedicated enhancement training for production management risk of continuously running water and ensured the sealing integrity and operational efficiency of the water supply system.personnel. This strengthened all employees’ awareness of energy

conservation and carbon reduction and laid a solid ideological * Designated fire-fighting water storage tanks and pressure test water storage tanks as key monitoring objects

foundation and talent support for the subsequent promotion of dynamic and regularly inspected the water level status and operation of water level control valves. Paid particular attention to

energy consumption control and the implementation of energy-saving Water storage potential failure risks of water level control valves so as to prevent direct overflow caused by excessively high water

technological transformation measures. facility levels due to faults in the automatic water replenishment system.monitoring

Organised production management personnel and team leaders to * Strengthened water level monitoring and valve maintenance for key facilities effectively avoided concealed water

watch the promotional video for the 2025 National Energy Conservation wastage caused by equipment malfunction safeguarded emergency water reserves and achieved precise control

Week and carried out training to enhance energy-saving awareness; over the water replenishment process.Organised personnel from the management functions of carbon * Carried out regular inspections and maintenance of delayed-action valves for washbasins in public areas. Focused

peak and carbon neutrality energy conservation and ecological Optimisation of on identifying issues such as excessively long valve delay times or untimely reset and promptly replaced or repaired

environmental protection to participate online in the Sinomach Group’s On-site Special Training and Lectures for Energy Conservation Week end-use water valves that did not meet water-saving requirements so as to ensure that flushing water was supplied as needed

Energy Conservation Week training and watch the excellent works fixtures and stopped in a timely manner promoted more standardised water use behaviour in public areas and substantially

showcase for Sinomach Group’s 2025 Energy Conservation Week. shortened unnecessary running water time.Waste Disposal

The wastes generated during LANPEC’s production and operations mainly comprise general industrial solid wastes and hazardous wastes.Indicators and Targets The Company complies with the requirements of laws regulations and other regulatory requirements such as the Law of the People’s Republic of China on the

LANPEC’s “Energy Usage” Targets and Progress

Prevention and Control of Environmental Pollution by Solid Wastes and has formulated internal systems such as the Environmental Protection and Hazardous

The Company takes improving energy usage efficiency as its Waste Pollution Prevention and Control Management Responsibility System and the Hazardous Waste Management System to implement standardised whole-

core objective and closely aligns with the national “Dual Carbon” process management of waste. In 2025 100% of the wastes generated by the Company were disposed of in compliance.strategy continuously improving its energy management

system. The Company tracks the progress of relevant indicators LANPEC’s Main Types of Waste and Disposal Measures

optimises energy resource allocation and production scheduling Target: Achieve remarkable results in renewable energy substitution Type Main Types of Wastes Main Generation Process Main Disposal Measures

plans dynamically adjusts the direction of energy-saving In 2025: Purchased renewable electricity amounted to 1978050 kWh

technical transformation and promotes the transition of energy * All waste is temporarily stored in the designated area of

General industrial Steel plate offcuts and

management from experience-driven to data-driven ensuring solid waste Production process the workshop and regularly entrusted to qualified entities for scrap iron filings

the continuous improvement of energy efficiency. disposal.Achieved

Equipment maintenance

Waste mineral oil * All hazardous waste is collected by category stored

process

in dedicated containers and temporarily stored in an

Usage of Water Resources independent hazardous waste temporary storage room.Waste emulsion liquid Machining process * The hazardous waste temporary storage room is subject

to standardised anti-corrosion hardening and anti-seepage

Waste developer (fixer)

The water used for production and operations of LANPEC is entirely supplied by the municipal water supply system. The Company has a low level of dependence on Flaw detection process treatment for the floor and skirting corners and is equipped Hazardous waste solution

water resources and the risk of water scarcity is low. internally with bunds and anti-seepage trays to prevent the

spread of leakages.The Company strictly complies with the requirements of laws regulations and other regulatory requirements such as the Water Law of the People’s Republic of Waste paint containers Production process * The Company regularly engages qualified hazardous

China and the Water Pollution Prevention and Control Law of the People’s Republic of China and has formulated internal systems such as the Energy Conservation waste disposal entities for collection transfer and harmless

and Emission Reduction Management System incorporated water resource management into daily operations and effectively improved water utilisation efficiency. Wastewater treatment

Wastewater treatment disposal and strictly implements the hazardous waste

system treatment

In 2025 the Company adhered to the principle of conservation first regulated water utilisation behaviour by strengthening infrastructure maintenance evaporated concentrate transfer manifest system.process

implementing monitoring at key points and optimising the management of end-use appliances.

19 202025 Sustainability Report

Pollutant Discharge Impacts Risks and Opportunities Management

Pollutants involved in the operations of LANPEC include exhaust gases such as particulate matter volatile organic compounds nitrogen oxides as well as In response to the impacts risks and opportunities related to pollutant discharge the Company has established a systematic dynamic management process

wastewater and noise. The Company complies with the requirements of laws regulations and other regulatory requirements such as the Environmental Protection covering identification assessment prioritisation monitoring and continuous improvement and has established a sound collection and compliant disposal system.Law of the People’s Republic of China and the Law of the People’s Republic of China on Environmental Impact Assessment and regards environmental compliance

as the basic prerequisite for production and operation. In 2025 the Company’s wastewater and exhaust gas emissions all met the relevant standards and there LANPEC’s Pollutant Management Process

were no incidents of penalties imposed by regulatory authorities due to excessive pollutant emissions or non-compliant discharges.Prepare documents and identify environmental risks to comprehensively review all processes and substances involving pollutant

discharge. In accordance with the Classification Method for Environmental Accident Risk of Enterprise (HJ941-2018) identify

Governance Identification environmental risk substances (such as paints thinners and hazardous waste) and their quantities determine risk units (such as

production workshops chemical storage facilities and hazardous waste temporary storage rooms) and investigate surrounding

The Company has formulated internal systems such as the Environmental Protection Management System and the Measures for the Management of Environmental environmentally sensitive receptors to establish a risk source inventory.Protection Equipment and Facilities to ensure the effective control of pollutant discharge. For details of the related governance structure please refer to the “ClimateChange Tackling” section of this report.Conduct scenario analysis of environmental emergencies and source intensity estimation for the identified risk units. Simulate

accident scenarios such as leaks fires and abnormalities in pollution control facilities to calculate pollutant leakage rates diffusion

Assessment

Strategy pathways and impacts on air and water bodies and evaluate the completeness and effectiveness of existing prevention and control

measures to identify gaps and potential risks.During the production and operation process if the pollutants generated by the Company are not properly managed they will pose potential pressure on the

quality of the surrounding environment water safety and soil health. The Company systematically identifies the environmental impacts and market challenges

arising from pollutant discharge and seizes the development opportunities brought by the green transition implementing response strategies covering source Classify environmental risks into four levels of Q0 (Q<1) Q1 (1≤Q<10) Q2 (10≤Q<100) and Q3 (Q≥100) based on the ratio (Q value) of the

reduction process control and end-of-pipe treatment. Prioritisation quantity of risk substances to their threshold values identify priority risk sources and event types for control in combination with

environmental sensitivity and provide a basis for resource allocation and prioritisation of rectification.LANPEC’s Risks and Opportunities Analysis for “Pollutant Discharge”

Risks and Opportunities Timeframes of Impact Financial Impacts Response Strategies

Carry out real-time monitoring of risk units and prevention and control facilities through routine inspections online monitoring

National and local environmental protection Monitoring equipment and manual patrols and establish inspection records and issue registers to ensure timely detection and early warning

regulations continue to become more of abnormalities.stringent and pollutant discharge

standards are continuously tightened

Short medium and long Increase in

Policy risk which may increase the costs of treatment * Establish a systematic

term compliance costs

facility upgrades and compliance dynamic management

monitoring and impose institutional process and conduct Formulate and implement targeted risk prevention and control measures (such as anti-seepage measures bunding and emergency

constraints on corporate production and annual environmental Management material allocation) based on assessment and monitoring results and conduct regular emergency drills; propose short- medium-

operations. factor identification and and long-term rectification plans based on gap analysis and continuously track their implementation.risk assessment to achieve

If production bases trigger complaints from precise full-process

surrounding communities or environmental control of pollutant

penalties due to odour dust emissions or Decrease in

Reputation risk Medium and long term discharge.improper hazardous waste disposal this operating revenue

may affect the Company’s brand image and * Conduct professional

social reputation. treatment of wastewater

exhaust gas and noise to

The environmental technologies and ensure stable compliant

green production experience accumulated discharge.Technology in the process of pollutant treatment Increase in operating

and market Medium and long term

opportunities can be transformed into the Company’s revenue

differentiated competitive advantages

enhancing value in the green supply chain.

21 222025 Sustainability Report

LANPEC’s Main Types of Pollutants and Disposal Measures Circular Economy

Type Main Types of Pollutants Main Generation Process Main Disposal Measures

Organised emissions LANPEC upholds the core philosophy of resource conservation and efficient utilisation and has formulated internal systems such as the Energy-saving

Shot blasting chamber After secondary dust removal and filtration by an expansion settling chamber + Management Measures for the Production System the Measures for Raw Materials and Low-value Consumables of the Production Department and the

Particulate matter (PM)

operations cartridge dust collector emissions are discharged through an 18 m exhaust stack Management Measures for Recycling and Utilisation of Scrap Materials integrating the concept of the circular economy into production and operations thereby

Benzene toluene xylene After treatment by a fully enclosed spray-painting booth + activated carbon reducing operating costs and improving economic benefits while enhancing core competitiveness for sustainable development.non-methane total Paint spray booth operations adsorption + fibre filter dry filtration system emissions are discharged through a

hydrocarbons 20 m exhaust stack The Company moves the circular economy concept forward to the product development and process design stages reducing resource consumption and waste

Trolley-type gas-fired heat Low-nitrogen combustion technology is adopted and emissions are discharged generation at source. During the processes of product development and design and the formulation of production processes the Company gives priority to

SO NOx particulate treatment furnace through 21 m and 28 m exhaust stacks respectively advocating the use of new products new processes new materials and new technologies that are easy to recycle easy to dispose of or environmentally friendly.2

Waste gas matter After treatment by the dust collector emissions are discharged through a 15 m

Natural gas boiler The Company attaches great importance to the recycling and reuse of various types of waste generated during the production process and strictly implements

exhaust stack

the Management Measures for Recycling and Utilisation of Scrap Materials . We have introduced professional nesting layout software and carried out classified

Nitric acid mist (NOx) Pickling and passivation After treatment by a sodium sulphide spray tower + calcium hydroxide spray collection and centralised management of recyclable materials such as steel plate offcuts and iron filings generated during the production process and

fluorides production line tower emissions are discharged through a 20 m exhaust stack

established channels for resource utilisation. In 2025 the total amount of waste recycled and reused by the Company reached 3286.49 tonnes.Fugitive emissions

Particulate matter benzene

Welding process fugitive

series compounds non- Mobile fume purifiers are used; workshop ventilation is strengthened; fugitive

volatilisation at the plant

methane total hydrocarbons emissions at the plant boundary are monitored on a regular basis

boundary

etc. Application of Professional Nesting Layout Software to Improve Steel Plate Utilisation Rate

Wastewater from the

Pickling and passivation

pickling process (including Wastewater is treated by self-built wastewater treatment system (low-

production line (workpiece

COD SS total chromium temperature heat pump evaporation) and reused in production after treatment;

cleaning wastewater from

nickel fluoride ammonia the concentrated evaporation liquid is disposed of as hazardous waste In 2025 in response to the continuous increase in the generation of steel plate offcuts and residual materials during the production process

exhaust gas scrubber discharge)

nitrogen etc.) the Company promoted the application of professional nesting layout software. Based on the shape dimensions and process requirements of

After treatment through a septic tank and upon meeting the Level 3 standard of components the software uses intelligent algorithms to carry out automated high-density optimised layout on steel plates significantly reducing

Wastewater Washing and toilet flushing in Domestic sewage the Integrated Wastewater Discharge Standard wastewater is discharged into the

office and living areas gaps and waste areas generated during cutting. After more than one month of on-site testing compared with the original nesting software the

municipal sewage pipeline network and ultimately enters the wastewater plant average utilisation rate increased by approximately 6%.Wastewater is discharged into the plant wastewater pipeline after pre-treatment

Kitchen oily wastewater Staff canteen

in a grease trap At the same time during the layout process tooling auxiliary materials required for subsequent procedures were consciously pre-arranged in

Initial surface runoff within the Wastewater is collected through the rainwater pipe network and discharged at residual material areas enabling the immediate reuse of residual materials and effectively advancing resource circularity and lean production.Initial rainwater

plant area multiple nearby outlets into the municipal rainwater pipeline

Measures such as installing soundproof doors and windows reducing equipment

Fans machining equipment

vibration and equipping certain devices with silencers are adopted; equipment

Noise grinders riveting operations maintenance is strengthened to ensure that boundary noise levels meet the Class

etc.

3 standards of Emission Standard for Industrial Enterprises Noise at Boundary

Indicators and Targets LANPEC’s “Pollutant Discharge” Targets and Progress

The Company aims to ensure that all types of pollutants are Climate Change Tackling

discharged in stable compliance with applicable standards and

achieves precise whole-process control over pollutant discharge by Target: Exhaust gas emissions compliance rate: 100%

tracking the completion of relevant indicators. Global climate change has become a major challenge jointly faced by human society. Against this background China clearly put forward the strategic goals of

“achieving carbon peaking by 2030 and carbon neutrality by 2060” elevated climate change tackling to a national strategy and accelerated the comprehensive

green transformation of economic and social development.Achieved

Target: Pickling wastewater reuse rate: 100%

Governance

Achieved LANPEC has incorporated climate change tackling into the scope of strategic management using energy conservation and carbon reduction as a starting point

Target: Boundary noise compliance rate: 100% and continuously advancing production process optimisation clean energy substitution and resource recycling and reuse thereby striving to mitigate the impact

of operations on the climate.The Company has established an energy conservation and emissions reduction governance structure with clear powers and responsibilities and efficient

Achieved coordination taking a systematic approach to advancing the comprehensive governance of environmental areas such as energy usage pollutant discharge and

climate change tackling.

23 242025 Sustainability Report

LANPEC’s Climate Change Tackling Governance Structure LANPEC’s Risks and Opportunities Analysis for “Climate Change Tackling”

Risks and Opportunities Timeframes Decision-making Level Financial Impacts Response Strategies* As the highest leadership body for the Company’s energy conservation and emissions reduction it of Impact

is responsible for implementing national guidelines and policies as well as the work requirements of Physical risks

superior entities;

* It formulates the Company’s development plans for energy conservation and emissions reduction; Extreme weather events (such as typhoons and floods) may Increase in Short and * Define a responsibility system

threaten the safety of production bases and the stability of the operating costs* It reviews approves or revises the rules and regulations on energy conservation and emissions Acute risks medium of “Shared Responsibilities supply chain potentially leading to production disruptions and Decrease inEnergy reduction; reviews and makes decisions on major investment activities involving energy conservation term of Party and Government affecting operating revenue. operating revenue

Conservation Leadership and Dual and emissions reduction (such as new construction reconstruction and expansion projects) to ensureResponsibilities for One Post”

and Emission compliance with national policy requirements; Our Shanghai office area is located in a subtropical zone at

a relatively low altitude and close to the coast and has long sign responsibility agreements Reduction * It provides comprehensive guidance on energy conservation and emissions reduction across all faced the intensification of extreme heat caused by rising and incorporate “Dual Carbon”

Leading Group departments and subsidiaries. Increase in temperatures as well as potential threats arising from sea level Short and goals into performance

operating costs

Chronic risk rise; the region where our Gansu production base is located is medium appraisal to ensure effective

Decrease in

exposed to high drought risk and significant water stress and term implementation of management.operating revenue

water scarcity would directly affect production processes and * Establish high-temperature

employee activities potentially leading to production stoppages allowances for employees

Management Level and in turn adversely affecting operating revenue. improve cooling systems in

Energy Conservation plant and office areas and

* As the daily management body it is responsible for organising coordinating Transition risks formulate emergency plans for and Emissions heatstroke thereby achieving

Reduction Office and supervising implementation. As a subsidiary of a central state-owned enterprise we face energy savings and consumption

* It formulates energy conservation and emissions reduction procedures stringent assessment against the “Dual Carbon” responsibility reduction in cooling systems.

(Established within establishes and improves organisational management statistical monitoring targets and challenges in policy compliance; China may advance

the Safety and Policy and Short medium Increase in

* Increase investment in the

and reward and penalty systems and organises the assessment supervision the development of the carbon emissions trading market and law risks and long term compliance costs research and development

Environmental and inspection of the Company’s energy-using departments. the petrochemical industry in which the Company operates may of green and low-carbon

Protection Department) be included in the future which may require the purchase of technologies promote theadditional allowances thereby incurring additional costs. application of the “FourNews” for energy saving and

If the transformation of traditional high-energy-consuming low carbon and respond

Technology business lags behind or the research and development of green Medium and Decrease in to transition risks through

Implementation Level * They are independently responsible for the energy conservation risk technologies falls short of expectations we may face the risk of long term operating revenue technological innovation.and emissions reduction within their entities implementing national declining market competitiveness. * Improve the Special

laws and regulations and the Company’s requirements; Emergency Plan for Natural Major raw material suppliers face stricter energy-saving

* They formulate their respective rules and regulations on energy Disasters and conduct regular and emissions-reduction requirements under sustainable drills establish a statistical

conservation and emissions reduction; development policies. The increase in their production costs may

Increase in monitoring system for energy

* They organise internal inspections statistical monitoring and be transmitted along the industrial chain putting pressure on the Medium and operating costs consumption and emissions and

Wholly-owned rewards and penalties within their entities and regularly report Market risk stability and pricing of the Company’s raw material procurement; long term Decrease in ensure compliant operations.as ESG concepts become increasingly ingrained customers’

subsidiaries energy consumption and work completion status to the Company. operating revenue * Actively develop and deploy preference for green and environmental products continues to energy-saving and consumption-

grow. If the Company’s products have insufficient low-carbon reduction technologies and our

attributes we may face the risk of market share being displaced.All departments units and all sections/ * They are responsible for the daily management of energy conservation main products have achieved

teams and emissions reduction accepting the supervision and inspection of Opportunities good applications in emerging

the Company’s Energy Conservation and Emissions Reduction Office and industries such as solar thermal

power generation clean energy

promptly rectifying any issues identified during inspections; The Company’s technological breakthroughs in clean equipment

* They are responsible for the daily inspection and management of Technology fields such as molten salt energy storage can enable us to Medium and Increase in

and environmental protection

opportunity capture the green and low-carbon technology market and create long term operating revenue and emissions reduction.energy use and pollutant emissions; new business growth. * Replace grid electricity

* They participate in the knowledge training and activities on energy consumption with photovoltaic

conservation and emissions reduction organised by the Company. Through the systematic planning and deployment under the 15th green electricity and increase

Five-Year Plan we can promote the transformation of the industrial the proportion of renewable

Resource structure towards green and low-carbon development drive energy used in the production

Short medium Decrease in

efficiency improvements in resource utilisation efficiency and reduce energy and operation process.and long term operating costs

opportunity costs. At the same time the Company increases the proportion * Continuously improve climate

Strategy of renewable energy in total energy consumption to reduce change tackling managementdependence on fossil energy. use honours such as “ExcellentPractice Case” to enhance

Energy consumption and greenhouse gas emissions in the Company’s production process are direct sources of the Company’s climate impact. Through the brand influence and transform

Opportunities The “Dual Carbon” strategy promotes the low-carbon

downstream application of energy-saving equipment developed by the Company society as a whole is helped to reduce carbon emissions thereby generating governance advantages into related to transformation of the industries in which the Company operates Medium and Increase in development momentum.positive indirect impacts. Based on the realities of an equipment manufacturing enterprise the Company integrates climate change tackling into its daily products and and we can launch products that are more aligned with the “Dual long term operating revenueoperations and technological planning effectively identifies climate-related risks seizes opportunities arising from the iteration of green technologies formulates services Carbon” policy through technological innovation.response strategies and achieves green growth on the premise of controllable risks.

25 262025 Sustainability Report

Impacts Risks and Opportunities Management LANPEC’s Key Actions and Measures for Climate Change Tackling in 2025

To systematically identify and respond to the impacts risks and opportunities brought about by climate change the Company has established a systematic

management process for climate change tackling covering risk identification assessment prioritisation and monitoring. Category Measures

* Continued and optimised the governance structure for climate change tackling clarified the division of

responsibilities and ensured the orderly advancement of “Dual Carbon” efforts.LANPEC’s Climate Change Tackling Management Process Organisational * Signed the Statement of Responsibility for Carbon Peaking and Carbon Neutrality Energy Conservation and

management and Ecological and Environmental Protection (2025) clarifying the responsibility targets and assessment requirements for

system development energy conservation and carbon reduction environmental protection and other aspects in 2025.* Formulated the Emergency Plan for Natural Disasters to enhance emergency response capabilities for

Identify climate-related risks and opportunities such as extreme weather energy consumption and emissions based on the

Identification extreme climate events.identification of environmental impact factors risk point inspections and the Special Emergency Plan for Natural Disasters.* Systematically planned the key work for the next five years in areas such as energy conservation and

environmental risk management reflecting a systematic strategic-level arrangement.Planning guidance

* In accordance with the requirements of the responsibility statement promoted a year-on-year reduction

and target setting

in comprehensive energy consumption per RMB10000 of output value and carbon dioxide emissions and

Evaluate the extent of various climate impacts and emission reduction potential through environmental impact assessments and

Assessment continuously advanced the optimisation of the energy structure and the control of carbon emission intensity.energy-saving evaluations of new projects annual responsibility target appraisals and analysis under the 15th Five-Year Plan.* Actively promoted the “Four News” energy-saving and low-carbon technologies (new processes new

technologies new equipment and new materials) to enhance the overall level of energy efficiency.Technological * Independently developed the “Complete Technology and Equipment for High-Temperature Molten Salt StoragePrioritise the prevention of "major or above environmental emergencies" and "major violations of laws and regulations" in innovation andgreen practices Tanks in Molten Salt Energy Storage Systems” successfully shortlisted it as an “National Outstanding PracticePrioritisation accordance with the priority of responsibility targets restrict high-energy-consuming projects and support the research Case for Enterprise Green and Low-carbon Development” demonstrating the Company’s technological innovation

development and application of green and low-carbon technologies. capabilities in the field of clean energy equipment.Establish a statistical monitoring system to collect and consolidate energy consumption and emission data in accordance with

Monitoring national standards regularly submit statements and self-inspection reports to higher authorities and dynamically track progress Development of Low-carbon Promotional Materials

through special inspections.In 2025 the Company actively planned and with “Carbon Path Pioneer” as the main theme promoted the application of our advanced technologies

such as skid-mounted heat exchangers and molten salt storage tanks in the field of energy conservation and carbon reduction by producing

Formulate targeted control and response measures including promoting energy-saving renovation strengthening supply chain energy-saving and low-carbon promotional materials and shared the Company’s energy conservation and carbon reduction scenarios. A total of

Management management and achieving breakthroughs in low-carbon technological innovation and continuously optimise and adjust them three themed promotional posters and one energy-saving promotional video were produced vividly recreating the technical scenarios of energy

according to actual conditions. conservation and carbon reduction and conveying replicable and scalable low-carbon solutions to both within and outside the industry in an

intuitive and vivid manner.Building on the foundation of risk management and control the Company achieves multi-dimensional progress in addressing climate change including

improvements to the governance system clearer targets breakthroughs in technological innovation and effective risk prevention and control with all measures

implemented and delivering results.Low-carbon Promotional Materials

27 282025 Sustainability Report

LANPEC’s “Climate Change Tackling” Targets and Progress

Independently Developed Complete Technology and Equipment for High- Indicators and Targets

Temperature Molten Salt Storage Tanks in Molten Salt Energy Storage Systems

The Company has consistently regarded green and low-carbon

Target: Greenhouse gas emission intensity per RMB10000 of output

development as the core direction of sustainable development strategyTargeting the new-type core energy storage equipment of power systems namely the “Complete Technology and Equipment for High- value continues to declineadvancing energy-saving technological transformation and clean energyTemperature Molten Salt Storage Tanks in Molten Salt Energy Storage Systems” the Company focused on its principal responsibilities and core substitution and helping mitigate the impacts of climate change. In 2025: Continued to show a downward trend compared with 2024

business established a dedicated R&D team applied technical means such as numerical simulation and multi-physical field coupling analysis

optimised the thermal insulation structure and thermal compensation design of storage tanks overcame critical bottleneck challenges such as

large capacity high-temperature resistance and fatigue resistance and developed molten salt storage tank design and construction capabilities Achieved

with fully independent intellectual property rights.This technology achieved deep integration of business development with

safety and environmental protection not only ensuring the safe and

stable operation of energy storage systems but also supporting the low- Ecosystem and Biodiversity Protection

carbon energy transition and can be widely applied in fields such as

concentrated solar power plants flexibility retrofitting of thermal power

plants and waste heat recovery in steel plants. Relying on this core LANPEC’s production and business operations are mainly located within industrial parks planned in accordance with the law and do not involve nature reserves

technology the Company has undertaken dozens of molten salt storage ecological protection red line areas or sensitive areas with significant biodiversity value. The Company’s operational activities mainly comprise industrial production

tank projects for concentrated solar power plants in China and abroad activities and do not directly occupy or develop areas with important ecosystem functions. During land use construction project approval and daily operations

with outstanding energy-saving and carbon-reduction results: a single the Company complies with environmental management requirements in accordance with the law reducing the potential impact on the surrounding ecological

100000-kW-class concentrated solar power plant which can supply 230 environment.

million kWh of clean electricity annually save 70000 tonnes of standard

The Company continues to pay attention to the impact of its own activities on biodiversity. Its projects generally comply with cleaner production requirements and

coal and reduce carbon dioxide emissions by 220000 tonnes. Equipment Appearance it strictly complies with the Wild Animal Conservation Law of the People’s Republic of China the Regulation of the People’s Republic of China on Nature Reserves

and the laws regulations and document requirements related to biodiversity in the places where it operates. By carrying out measures such as environmental

assessments for new projects land reclamation and revegetation we strengthen the governance and restoration of the ecological environment and minimise the

impacts of production and operations on biodiversity and ecosystems as far as possible.

29 302025 Sustainability Report

Innovation-driven LANPEC’s Risks and Opportunities Analysis for “Innovation-driven”

LANPEC regards innovation-driven development as the foundation of the business. We have deeply cultivated the fields of petroleum drilling and production Type Specific Description

Timeframes of Financial

Impact Impacts Response Strategies

machinery and refining and chemical equipment offshore and desert petroleum equipment light industry and food machinery and environmental protection and

new energy engineering continuously accumulating core experience and technical capabilities. The Company strictly complies with laws and regulations such as

the Law of the People’s Republic of China on Scientific and Technological Progress the Patent Law of the People’s Republic of China and the Copyright Law of the During the advancement of cutting-edge

People’s Republic of China effectively promoting innovation as the core engine driving sustainable value creation. technology research and development if * Strengthen cooperation with

breakthroughs in core technologies are Increase in universities and scientific research

Technology impeded or the pace of industrialisation Short medium and operating costs institutes to accelerate breakthroughs Governance transition risk lags behind we may miss the market long term in key technologies.Decrease in

window weaken our technological

The Company has established a comprehensive scientific research management framework including the Implementation Rules for the Management of operating revenue * Improve lifecycle management

leadership and affect customer order

Scientific Research Projects the Measures for the Administration of Scientific and Technological Work (Trial) the Measures for the Management of Scientific and of intellectual property proactively

acquisition and brand reputation.Technological Development Fund Projects the Measures for the Evaluation of Scientific and Technological Achievements (Trial) the Measures for the Work of the arrange patents for core technologies

Technical Committee (Trial) etc. systematically standardising the management of scientific research projects funds achievements intellectual property protection and avoid infringement risks.and other areas and promoting the standardised and regulated operation of scientific research work. In 2025 the Company continued to improve the institutional * Focus on core products such

system for scientific and technological innovation and formulated and revised No. 1 Amendment to the Scientific Research Project Management Measures of China is accelerating the promotion as high-efficiency energy-saving

LANPEC (Trial) further standardising the management of the Company’s scientific research projects and fully mobilising enthusiasm for innovation-driven work. of energy conservation and carbon heat exchange equipment andIn terms of management structure the Company has established an innovation-driven governance system in which the “Party Committee serves as the highest reduction in the industrial sector. The waste heat recovery and utilisation Product/Service Medium and long Increase indecision-making body the Technical Committee provides professional support the Science and Technology Development Department exercises centralised Company can leverage the technological systems increase investment in opportunities term operating revenuemanagement and all business departments collaborate to advance implementation”. At the same time the Company leverages its specialised research capabilities expertise to launch green equipment industrialisation and rapidly form

to establish four core technology R&D teams including the Heat Transfer and Energy Conservation Technology Research Department (focusing on research into and system solutions and seize market large-scale production capacity.heat transfer and energy conservation technologies) the Storage and Transportation Engineering Technology Research Department (focusing on research into opportunities.spherical tanks and solar thermal energy storage technologies) the Oil and Gas Engineering Technology Research Department (focusing on research into oil and

gas separation and treatment technologies and evaporation crystallisation technologies) and the Equipment Digitalisation Technology Research Department

(focusing on research into equipment digitalisation technologies) to support the Company’s continuous innovation. In order to effectively address risks such as insufficient innovation in a complex development environment and seize opportunities brought about by industrial

LANPEC’s Innovation-driven Structure and Main Responsibilities upgrading the Company formulated 2025 Guidelines for Annual Scientific and Technological Development Projects of Lanpec Technologies Limited systematically

anchoring the strategic direction of scientific and technological innovation focusing on core business and technological advantages and concentrating resources

on prioritising key technological innovation so as to support the achievement of annual targets and lead strategic development.The Company’s highest decision-making body for science and technology management responsible for reviewing and

To ensure the efficient implementation of scientific and technological innovation projects the Company strengthens the top-level design and leadership

deciding on major matters relating to the Company’s science and technology work such as the guidelines for the

mechanisms for scientific and technological innovation. From guiding innovation directions and project initiation to process supervision acceptance evaluation

Party Company’s fund projects the approval of research projects and rewards for scientific and technological innovation work. and post-evaluation we implement lifecycle supervision and management to ensure that every process is subject to strict control thereby promoting the effective

Committee transformation of scientific and technological innovation achievements into strong momentum for corporate development.An advisory and consultative body for the Company’s scientific and technological efforts mainly responsible for

Technical technical consultancy work such as demonstrating the technical feasibility of major scientific research projects

Committee or project proposals reviewing the approval of scientific research projects and evaluating and rewarding Impacts Risks and Opportunities Management

scientific and technological achievements.In the external environment characterised by accelerating technological iteration intensifying industrial competition and the intertwining of green and low-

carbon transformation the Company deeply recognises that innovation is the core engine for shaping long-term competitiveness responding to risks arising from

The department responsible for the centralised management and support of the Company’s scientific and technological

Science and uncertainty and seizing opportunities for high-quality development. In 2025 the Company effectively enhanced corporate resilience and development momentum work. It is responsible for the research and formulation of the Company’s science and technology development plans

Technology from three dimensions namely R&D innovation intelligent manufacturing and digital transformation and intellectual property protection and further promoted

Development and related policies the preparation and release of project guidelines the management of scientific research projects the coordinated co-creation of the Company’s economic value and social value.Department the management of scientific and technological achievements the formulation and revision of science and technology

management systems and the management of science and technology qualification certificates.Strategy

The Company places technology leadership and research and development innovation in a priority position. Technological innovation is the key support for LANPEC to

strengthen core functions and enhance market competitiveness. If investment in innovation is insufficient and technological iteration lags behind it will be difficult to meet

the demand for highly efficient and energy-saving equipment under the national “Dual Carbon” goals and we will be unable to provide core technical support for energy

conservation and emissions reduction in the industrial sector. If we continue to increase investment in innovation and achieve breakthroughs in key core technologies we

will be able to promote the upgrading of energy equipment towards greater efficiency lower carbon emissions and greater intelligence help industrial enterprises reduce

energy consumption and carbon emissions while creating high-quality jobs and realise the coordinated improvement of environmental and social benefits.

33 342025 Sustainability Report

R&D Innovation System Development Intelligent Manufacturing and Digital Transformation

The Company focuses on the core needs of R&D and innovation and promotes the transformation of innovative achievements into practical productive forces To advance intelligent manufacturing and digital transformation in 2025 the Company enhanced design efficiency and technological innovation capabilities and

by strengthening full-cycle management of scientific research projects improving the achievement evaluation and incentive mechanisms enhancing the promoted intelligent upgrading by advancing the digital transformation of the design and R&D system for pressure vessel equipment strengthening team building

development of R&D platforms and actively participating in the formulation of industry standards. and personnel development and obtaining relevant certifications.LANPEC’s Key Management Measures for R&D and Innovation LANPEC’s Key Actions and Measures for Intelligent Manufacturing and Digital Transformation in 2025

Category Measures Category Measures

* Implement classified and graded management for scientific research projects with projects including * Developed an integrated design platform architecture for pressure vessels which adopted a multi-

Research project government-funded research projects industry-commissioned research projects and the Company’s science Integrated design layered architectural design integrating functions such as parameter input design calculation model

management and technology development fund projects. Carry out project management with reference to the relevant platform architecture creation and data delivery breaking away from the traditional situation in which functional modules in

provisions of the Measures for the Management of Scientific and Technological Development Fund Projects. for pressure vessels design software operate independently improving design efficiency and flexibility and supporting the

independent development testing and deployment of multifunctional modules.* Establish a full-process management mechanism covering achievement appraisal technical evaluation

registration and archiving and intellectual property protection.Management of scientific * Issue the Measures for Rewards for Scientific and Technological Innovation Work (Trial) providing material * Strengthened the cultivation of professional qualifications and technical capabilities with the members

and technological

and spiritual rewards to contributors who obtain achievements at national provincial and ministerial levels

achievements and talent Team building successfully obtaining the two core professional qualifications of “Pressure Vessel Design Approver” and

incentives patents papers and contributions to new product development. Establish the “Science and Technology and personnel “Pressure Vessel Inspector” enhancing their technical authority and capacity to assume responsibilities inAchievement Award” to incentivise the enthusiasm and creativity of scientific and technological personnel development core business areas.undertaking scientific research tasks and making practical innovation contributions. * Actively integrated into the frontier technology ecosystem and selected members to participate in “AIAgent Practical Training” inspiring innovative ideas for integrating emerging technologies such as artificial

intelligence and automation into the equipment design process.* Promote joint establishment with universities research institutes and key users of innovation base

R&D platform

construction projects and talent training bases featuring deep integration of industry academia research and

development

application.* LANPEC (Shanghai) completed the audit of the digital transformation management system on 8 August

2025 and obtained the Digital Transformation Management System Assessment Certificate.

* LANPEC (Shanghai) completed the digital transformation maturity rating on 30 September 2025 and

* Proactively undertake research into industry-wide common application technologies undertake the

Leadership in industry obtained the Digital Transformation Maturity Star Rating Assessment Certificate.formulation and revision of national and industry standards and specifications support the high-quality

standards and

technical services development of the industry and expand the Company’s influence. For related content please refer to the

“Industry Development” section of this report.Digital transformation

certification

Successful Application of Fully Welded Plate Heat Exchanger R&D in Tail Gas Waste Heat Recovery

In 2025 in response to the needs of the waste heat recovery industry the Company adopted a combination of simulation and experimental Digital Transformation Maturity Star Rating Assessment Certificate Integration

validation optimised traditional heat transfer calculation theoretical models and successfully developed a high-efficiency fully welded plate heat of Informatisation and Industrialisation Management System Certificate

exchanger. This product replaces conventional shell-and-tube heat exchangers with a compact fully welded structure improving equipment

integration while significantly reducing system operating energy consumption.This technology has been successfully applied to the tail gas waste heat recovery system of a large-scale syngas-to-methanol plant. Actual

operating data show that the waste heat recovery efficiency of the system using the fully welded plate heat exchanger has increased to over 90%.The efficient heat recovery significantly reduces the demand for primary energy thereby directly reducing carbon dioxide (CO2) emissions. The Intellectual Property Protection

overall reduction in energy consumption of the plant also indirectly reduces the emissions of pollutants such as sulphur oxides (SO?) and nitrogen

oxides (NO?) that would otherwise be generated to achieve the same production capacity delivering significant environmental benefits. The

The Company attaches great importance to intellectual property protection and has formulated documents such as the Management Measures for Intellectual

successful application of this technology provides practical and reliable technical support for the green and low-carbon transformation of energy-

Property the Protection Measures for Intellectual Property Protection and the Letter of Commitment for the Protection of Intellectual Property Rights

intensive industries such as the chemical sector.implementing standardised whole-process management over the creation management application and protection of the Company’s intellectual property

thereby providing solid safeguards for technological innovation achievements.

35 362025 Sustainability Report

LANPEC’s Key Actions for Intellectual Property Protection

Category Measures Scientific and technological achievements

Target: The annual increase in the number of patents granted to the Company shall be no fewer than 20 the number of valid granted patents retained

shall be no fewer than 240 and the Company shall obtain no fewer than 1 provincial- or ministerial-level (or equivalent) award every 2 years.Organisation of To enhance employees’ awareness of intellectual property protection a team of lecturers comprising

exchanges and experienced internal cadres and external expert panel provided training courses on patent drafting patent In 2025: The Company obtained 10 invention patents and 15 utility model patents.training sessions protection intellectual property management and other topics for different groups. As of the end of 2025 the Company held a total of 281 authorised patents and 40 software copyrights.As of the end of 2025 the Company had obtained over 1181 scientific and technological achievements in total including 4 National Science and Technology

Progress Awards 3 China Invention Awards 10 National Science Conference Awards 3 major technical equipment achievements 181 ministerial

(provincial)-level science and technology progress awards and 22 national-level new products and National Torch Program products.We strictly complied with relevant laws and regulations continuously improved the intellectual property

Improvement

of systems and management system and required employees to sign the Integrity Conduct and Intellectual Property

processes Agreement. LANPEC’s Market Honours for High-tech Research and Development

National-level Quality Inspection Centre National-level Scientific Research Platform

We provided online and offline training and learning on intellectual property-related knowledge to key and

relevant personnel of the Company improved the awareness of the management and relevant employees * National Quality Inspection and Testing Centre for Petroleum Drilling

Focus on information

regarding intellectual property protection and strengthened the awareness of patent application and Production Refining and Chemical Equipment * Postdoctoral Research Workstation

confidentiality

infringement prevention among relevant personnel during the research and development and production * National Product Quality Inspection and Testing Centre for Heat Exchangers

processes.Provincial- and Ministerial-level Scientific Research Platform Provincial- and Ministerial-level Engineering Technology Research Centre

* S hanghai Petrochemical Heat Exchange Equipment Engineering

Technology Research Centre

* G ansu Heat Transfer and Energy Saving Engineering Technology

Indicators and Targets * Shanghai Expert Workstation Innovation Centre

* Engineering Technology Research Centre for Heat Transfer and

To systematically measure and advance the effectiveness of the implementation of the innovation-driven strategy the Company has established a quantifiable Energy Saving in the Machinery Industry

traceable and assessable innovation performance indicator system centred on three core dimensions namely R&D investment scientific and technological talent

Provincial- and Ministerial-level Technology Innovation Centre Provincial- and Ministerial-level Design Innovation Centre

and scientific and technological achievements.* Gansu Enterprise Technology Centre

LANPEC’s Innovation-driven Targets and Progress in 2025

* Shanghai Enterprise Technology Centre * Gansu Industrial Design Centre

* Gansu Technical Center for Petrochemical Heat Exchange Equipment * Shanghai Design Innovation Centre

Industry

R&D investment Industry Development

Target: The Company continues to strengthen investment in scientific research with the target for R&D intensity maintained at approximately 5%.The Company actively undertakes research into common application technologies within the industry as well as tasks related to the formulation and revision

In 2025: RMB60.02 million was invested in R&D in 2025 with R&D intensity of 6.05%.of national and industry standards and specifications continuously enhancing our technological influence in specialised fields and supporting the high-quality

development of the industry. Relevant work of the Company is carried out in accordance with the provisions of the formulated Management Measures for the Work

of Industry Associations (Trial) ensuring that the participation process is standardised and orderly and that the outcomes are practical and effective.Scientific and technological talent

To systematically advance the optimisation of industrial layout and market expansion the Company simultaneously strengthens the development of its investment

Target: The proportion of our scientific and technological personnel retained shall be no less than 25% of the total number of Company employees. management capabilities formulates and implements the Investment Management Measures and clarifies a full-cycle management system covering strategic

In 2025: The Company had a total of 354 scientific and technological personnel including 29 professor-level senior engineers 163 senior engineers 4 planning project review process control and post-investment evaluation so as to make scientific compliant actionable decisions. At the same time in order to

doctorate holders and 96 master’s degree holders. strengthen full-cycle management of investment projects and continuously enhance investment returns and decision-making quality the Company formulated the

The Company had 1 expert receiving the State Council Special Allowance 2 leading talents in Gansu Province and 3 Longyuan Young Talents in Gansu Implementation Rules for Post-investment Evaluation of the Company’s Investment Projects systematically standardising the content standards procedures andProvince. methods of post-investment project evaluation thereby forming a closed-loop management system featuring “pre-event review in-process monitoring and post-event evaluation”.In 2025 the Company continued to promote the industry’s high-quality development and technological progress by actively participating in the formulation of industry

standards organising and participating in professional seminars advancing industry-university-research cooperation and collaborating with external institutions.

37 382025 Sustainability Report

LANPEC’s Key Actions and Achievements for Industry Development in 2025 Re-election of the Fourth Heat Exchangers Sub-Committee of China Standardisation

Committee on Boilers and Pressure Vessels and the 2025 Work Meeting

Category Specific Content In November 2025 the Re-election of the Fourth Heat Exchangers Sub-Committee of China Standardisation Committee on Boilers and Pressure

Vessels and the 2025 Work Meeting hosted by the Company was successfully held in Nanjing. Nearly 200 committee members industry experts

* Led the revision of standards NB/T 47004.1-2025 Plate Heat Exchangers Part 1: Removable Plate Heat and industry representatives from across the country gathered to discuss a new future for the development of heat exchangers.Exchangers and NB/T 11917-2025 Diffusion-Bonded Heat Exchangers.Participation in the As the host of the meeting the Company actively played a leading role in the industry making a key contribution to promoting the standardised * Participated in the revision of standards NB/T 47048-2025 Spiral Plate Heat Exchangers GB/T 46193-2025

formulation of industry development of the industry technological progress and the enhancement of international competitiveness.standards Technical Requirements for Vertical Cylindrical Molten Salt Storage Tank GB/T 29459.3-2025 Small Punch

Test Methods of Metallic Materials for In-service Pressure Equipment—Part 3: Method of Test for Fracture

Toughness.* In June 2025 the Technical Committee convened a meeting to review comments on NB/T 47048 Spiral

Plate Heat Exchangers.* In September 2025 we convened a meeting on three national standards including GB/T 151 Heat

Participation in Exchangers.industry seminars * In November 2025 we hosted the Re-election of the Fourth Heat Exchangers Sub-Committee of China

Standardisation Committee on Boilers and Pressure Vessels and the 2025 Work Meeting.* In December 2025 we convened a seminar on the manufacturing inspection and testing technology

exchange as well as the formulation and revision of standards for air-cooled heat exchangers.Re-election of the Fourth Heat Exchangers Sub-Committee of China Standardisation Committee on Boilers and Pressure Vessels and

* Lanzhou Testing Institute continued to advance the registration of CPI products in the petroleum the 2025 Work Meeting Site

drilling and production industry as well as the industry self-regulatory qualification assessment for

Brand building remanufacturing and repair units enhancing product quality brand recognition and international credibility

progress of the petroleum and petrochemical equipment industry strengthening quality management and brand

development improving CPI product certification and accreditation and laying a foundation for the

sustainable development of the industry.* Lanzhou University of Technology participated in the project Research on Key Technologies and

Demonstration Application of Deep Cryogenic Large-Volume Liquid Hydrogen Spherical Tanks

systematically studying the operating conditions loads borne and failure modes of liquid hydrogen

spherical tanks; establishing thermo-mechanical coupling design calculation and evaluation criteria as

well as thermal insulation and cold preservation design calculation methods for liquid hydrogen spherical

tanks; and developing new structures suitable for vacuum composite insulated deep cryogenic spherical

Industry- tanks such as support structures and piping connection structures. At present the trial manufacture of a

university-research 25 m3 prototype has been completed.cooperation * East China University of Science and Technology participated in the project Investigation and Structural

Design of Primary Surface Heat Exchangers forming a technical solution applicable to the processing

assembly and welding of microscale heat transfer plates and the final product has been completed.* Tianjin University of Science and Technology participated in the project Research on Melt Crystallisation

Purification Technology for High-Purity Polyester Fine Chemical Products studying the melt crystallisation

purification process for fine chemical and petrochemical products represented by TDI and developing a

complete set of melt crystallisation equipment. The final technical report has been completed.* Collaborated with China Nuclear Power Engineering Co. Ltd. to carry out Research on Key Technologies

for Passive Containment Heat Removal Based on the Separated Plate Heat Exchanger (SPHP).External collaboration

* Collaborated with Hefei General Machinery Research Institute Co. Ltd. to conduct the Sinomach Group’s

projects

key R&D project Research on Key Technologies for Coal Slurry Heat Exchangers in Large-scale Direct Coal

Liquefaction Units.

39 402025 Sustainability Report

Safety and Quality of Products and Services

The Company puts forward the philosophy that “Quality Is Life Brand Builds Future” as well as the principle that “Product Quality is User Safety” emphasising that LANPEC’s Main Licences and Certificates Obtained in 2025

quality is the foundation of the Company’s existence and its strategic core reflecting the Company’s pursuit of excellence in quality and the importance we attach

to our own brand.Governance

* LANPEC - Manufacture License for Pressure Vessels A1 A6 (No. * SHLB LANPEC (Shanghai) Manufacturing Production License for

The Company strictly complies with laws regulations and rules such as the Product Quality Law of the People’s Republic of China the Standardisation Law of TS2210097) - 2029 Pressure Vessels (A1) (No. TS2210855-2028)

the People’s Republic of China the Special Equipment Safety Law of the People’s Republic of China TSG Z7001-2021 Accreditation Criteria on Special Equipment

Inspection Agencies and TSG Z7002-2022 Accreditation Criteria on Special Equipment Testing Agencies and has formulated systems such as the Quality Licensed sub-items: A1 and A6 Manufacturing of Stationary Pressure Scope of licence: A1 A2 D Manufacturing of Stationary Pressure

Improvement and Service Control Procedures and the After-sales Service Control Procedures to systematically standardise service standards throughout the Vessels. This certificate was obtained on 19 December 2024 Vessels

entire process from delivery to after-sales and continuously enhance customer satisfaction and brand trust. In 2025 the Company did not experience any non-

compliance incidents involving the health and safety impacts of products and services.* LANPEC - Manufacture License for Pressure Vessels A3 - (No. * SHLB - Manufacture License for Pressure Vessels (A3) (No.The Company has established a three-tier quality management safeguarding model and clarified the responsibilities at each level to strengthen the TS2262106) - 2028 TS2231B60-2028)

implementation of quality responsibilities. At the same time the Company has established three systems namely the Performance Appraisal Management

Measures the Quality Assessment Measures (Trial) and the Management Measures for Accountability and Responsibility Investigation for Quality Issues from Licensed sub-item: Spherical Tanks for Stationary Pressure Vessels Licensed sub-item: Spherical Tanks for Stationary Pressure Vessels

External Feedback (Trial) linking quality performance appraisal with bonus distribution to ensure that employees attach importance to quality in principle and that (A3). This certificate was obtained on 3 February 2024 (A3). This certificate was obtained on 16 August 2024

quality is guaranteed through systems.* LANPEC - ASME U Steel Stamp Authorisation Certificate ASME U * LANPEC (Shanghai) - ASME U U2 S Steel Stamp Authorisation

LANPEC’s Management Structure for Safety and Quality of Products and Services (40136) - 1 December 2028 Certificate (No. 45623 45624 53764)-2028

As the Company’s core functional department for quality control and Scope of licence: Manufacture of U steel stamp products Scope of licence: Manufacture of U/U2/S steel stamp products

management it is responsible for Company-level quality management the

quality management system regular quality meetings quality reviews quality * LANPEC Installation License for Pressure Pipeline (GC2) (No. * SHLB - Industrial Pipeline Installation (GC1) Certificate (No.Quality

exchanges Quality Month activities etc. and on behalf of the Company TS3862028) - 2028 TS3831063-2028)

Management

Department supervises and provides guidance on design quality production quality the

quality of engineering projects and the quality of testing projects. Licensed sub-item: Industrial Pipeline Installation (GC2). This Scope of licence: Industrial Pipeline Installation (GC1). This certificate

certificate was obtained on 23 January 2024 was obtained on 12 March 2024

Process At the manufacturing subsidiary level it coordinates and advances process * LANPEC - Pressure Pipeline Design for Industrial Pipelines (GC1) (No.Quality technology management and quality management supervises and guides TS1862009-2029)

Department the Manufacturing Department’s process and quality work and monitors and

inspects process discipline and production quality during the Manufacturing

Department’s production process.Quality Office (After-sales At the Manufacturing Department level it is specifically responsible for matters

Service Office) related to product manufacturing quality inspection.Strategy

As the global economic landscape undergoes profound adjustment and market competition becomes increasingly intense quality has become a key factor in

The Company has established a documented quality management system in accordance with the GB/ corporate core competitiveness. The safety and quality of products and services are not only the fundamental guarantee for sustainable corporate development

T 19001-2016 Quality Management Systems - Requirements to ensure the high quality of products and but also the basic commitment to safeguarding safety and honouring customer trust. If the Company’s quality management is poor it can easily trigger safety

services. The Company has passed the GB/T 19001-2016 and ISO 9001:2015 Quality Management System incidents and customer losses thereby undermining market confidence and damaging the industry ecosystem. Adhering to high-standard quality control can not

certification valid until 3 December 2026. In 2025 the Company successfully obtained a number of licences only enhance customer satisfaction and brand reputation but also drive the continuous improvement of the overall reliability of the industry chain.and certificates further consolidating our compliance foundation and professional capabilities in special

equipment manufacturing and technical services and demonstrating our determination to continuously

enhance service standards and fulfil our quality commitment to customers and society.Quality Management System Certification

41 422025 Sustainability Report

LANPEC’s Risks and Opportunities Analysis for “Safety and Quality of Products and Services” LANPEC’s Key Actions on Product Quality in 2025

Type Specific Description Timeframes of Impact Financial Impacts Response Strategies Category Measures

In the process of advancing intelligent * Each month we coordinated relevant departments to hold quality regular meetings focusing on quality issues

and digital product upgrades if the arising in design and manufacturing conducting in-depth analysis of the causes formulating corrective measures

application of new technologies lacks

Increase in operating costs Deepen the regular quality and urging rectification thereby establishing a closed-loop mechanism of problem analysis measure formulation

Technology transition sufficient validation or is insufficiently

Medium and long term Decrease in operating meeting mechanism rectification supervision and effectiveness verification. After each meeting we promptly issued meeting minutes

risk compatible with existing systems it

revenue and quality briefings and synchronised them with all responsible departments and the Company’s management. In

may affect product stability and user

* Improve the quality 2025 the Company held 24 regular quality meetings.safety and increase after-sales service

and safety management

costs.system covering the * We established a quality review and accountability mechanism. In response to typical quality issues and process

entire lifecycle. loopholes that occurred we promptly organised the relevant responsible departments to carry out quality

If product or service quality issues Implement quality review and

* Strengthen risk reviews with a focus on investigating and analysing the causes of the issues and the resulting impacts clarifying

during use lead to safety incidents rectification

assessment and testing responsibility attribution and formulating detailed improvement measures. In 2025 the Company had already

or operational failures this may

Liability and reputation Short medium and Short medium and long verification before the conducted 29 quality reviews.significantly affect customers’

risk long term term introduction of new

production damage our reputation

technologies.weaken market trust and result in legal * In 2025 we established a Quality Award formed the QC Group and carried out lean management and 6S

liabilities and customer loss. * Continue to track management initiatives.user feedback and Carry out Quality Month * We conducted the “Nine Ones” thematic activities whereby each branch carried out one quality seminar one quality

dynamically optimise activities improvement and innovation initiative one quality cost analysis one quality risk analysis one quality standardisation

As customers’ requirements for product performance and activity one quality responsibility commitment one quality experience sharing session one quality skill enhancement

equipment reliability and service experience. initiative and one batch of quality benchmark promotions comprehensively improving product and service quality.assurance continue to increase having Decrease in operating costs

Market opportunity a comprehensive quality system will Medium and long term Increase in operatingmake it easier to gain the trust of the revenue * Training programmes included “Quality Assurance Engineer (Chief Quality and Safety Officer) Training andhigh-end market and secure long-term Strengthen quality Appraisal” “2025 Tsinghua Quality Powerhouse Forum” “Specification for Evaluating Quality Management Capabilitycooperation opportunities. training of Manufacturing Enterprises” “ASME Quality Control Manual Training” “Lean Production Management” etc. Training

formats included external training internal training online learning etc.To enhance quality management awareness promote the suitability adequacy and effectiveness of the quality management system accelerate the digital

transformation of quality management and improve the quality performance evaluation system the Company has formulated the 15th Five-Year Development Plan * In 2025 the Company conducted on-site supervision and inspection of the manufacturing quality assurance

in 2025 providing goals and an action path for comprehensively standardising quality management. system of the Shanghai Manufacturing Department the manufacturing quality assurance system of the Lanzhou

Manufacturing Department testing business sites and engineering project sites. Targeted corrective measures and

Implement quality supervision

improvement recommendations were proposed for the issues identified and the relevant units have completed

and inspection internal

Impacts Risks and Opportunities Management rectification as required.audits and closed-loop * In 2025 the Company carried out internal audits of the quality assurance systems at the Lanzhou Base and the

rectification

Shanghai Base. In response to the non-conformities identified during the 2025 internal audits of the manufacturing

The Company systematically identifies assesses and manages quality risks and potential impacts throughout the entire lifecycle and actively improves various quality assurance system the relevant departments have completed all rectifications and the auditors’ follow-up

management mechanisms seizes opportunities arising from technological upgrades enhanced standards and changes in market expectations. By strengthening verification confirmed that the completion of the corrective measures was satisfactory.process control and promoting continuous improvement we continuously enhance product reliability and customer satisfaction.Product Quality Training on the Guidelines for Lifecycle Management of QC Group Activities

The Company continues to strengthen the development of a comprehensive quality management system systematically advancing key measures such as theregular quality meeting mechanism quality review and rectification Quality Month activities special training and internal audits. Through institutionalised and On 24 December 2025 the Company carried out the “Launch Ceremony For QC Groupstandardised quality management practices the Company continuously enhances quality assurance capabilities throughout the entire product lifecycle driving Activities” and the “LANPEC Training on the Guidelines for Lifecycle Management ofhigh-quality development to advance in depth. QC Group Activities” aiming to further consolidate the foundation of corporate quality

management bring together the combined strength of all employees in participating in

Lanzhou Testing Institute provides technical documents such as inspection and testing reports and evaluation conclusions as its core service content. In cases quality improvement foster a positive atmosphere in which everyone cares about quality and

where technical documents contain errors potential compliance risks or customer complaints Lanzhou Testing Institute carries out the retrieval and destruction everyone participates in improvement and promote the quality management philosophy to

of documents in an orderly manner by clearly defining the scope of recall and formulating remedial measures while maintaining communication with customers take deeper root in people’s minds.throughout the entire process. Afterwards it conducts an in-depth analysis of the root causes of the issues implements rectification measures and strengthens Training Materials

subsequent monitoring thereby completing the recall of documents such as inspection and testing reports.

43 442025 Sustainability Report

LANPEC’s Safety and Quality of Products and Services Targets and Progress in 2025

LANPEC (Shanghai) was Recognised as a 2025 Shanghai Manufacturing Champion Enterprise

Leading the Development of Core Equipment for Molten Salt Energy Storage

LANPEC (Shanghai) was successfully selected for the List of 2025 Shanghai Manufacturing Champion Enterprises published by the Shanghai

Municipal Commission of Economy and Informatisation by virtue of its leading technological advantages and extensive market applications in the Target: Product quality pass rate: 100% Target: Customer complaint handling rate: 100%

niche market of molten salt energy storage. Molten salt energy storage is an important component of new energy storage technologies. As core

equipment in the industrial chain molten salt storage tanks directly determine the upper capacity limit safety performance and operational

efficiency of energy storage systems.Achieved Achieved

This recognition not only serves as authoritative certification of LANPEC (Shanghai)’s leading market position in the molten salt storage tank

Target: Number of product recall incidents: 0 Target: Customer satisfaction: 100%

sector but also highlights its core role in focusing on energy equipment as its principal business and strengthening key links in the industrial

chain providing strong support for safeguarding national key energy projects and ensuring the security of the energy equipment industry.Achieved Achieved

Customer Service Target: Number of major safety and quality liability incidents: 0

Against the backdrop of the continuous expansion of the Company’s international business presence we attach great importance to customer feedback and

regard it as a valuable resource for optimising service processes and driving innovation and development. The Company has established a sound after-sales

service management system to ensure compliance throughout the entire service process. Achieved

Customer Service Process

After product delivery Upon receiving customer For equipment quality After the resolution

* The Company’s plate heat exchangers (WPHE/GPHE/SPHE * The Company won two second prizes for Outstanding QC

business personnel feedback the after-sales issues technical of equipment quality

series) were selected for the 2025 Shanghai High-tech Quality Management Achievements in Gansu Province.maintain ongoing service department is experts are organised issues the responsible

Achievement Transformation Project by the Science and

communication with notified promptly; routine to analyse the root departments complete

Technology Commission of Shanghai Municipality.users and respond issues are responded to causes and develop service records which

promptly to service within eight hours while solutions which are are archived after

needs matters involving safety implemented upon customer evaluation

or production impacts are review by the technical forming a closed-loop

handled immediately head and approval by management process

the Quality Assurance

Engineer

Lanzhou Testing Institute standardises its customer feedback management work in accordance with the Complaint and Grievance Handling Procedures led by* LANPEC (Shanghai)’s “Intelligent 10000-metre Ultra-deepthe General Office and conducts regular or irregular return visits through various forms such as letters telephone calls and on-site visits while simultaneously

* The Company received multiple honours in the 2025 Well High-temperature and High-pressure Environment completing return visit records and satisfaction questionnaires. The customer satisfaction survey covers key dimensions across the entire process including theSimulation System” project won the Third Prize in the

standardisation of business negotiations the professionalism of inspection services report and objection handling and the level of information service support Safety Management Standardised Team Building from

2024 Jinshan District Science and Technology Innovation

comprehensively reflecting the service experience. Based on the analysis of customer feedback the testing institute revises relevant procedural documents in a the China Association of Work Safety with the platetargeted manner implements corrective measures and continuously optimises the quality management system. In 2025 Lanzhou Testing Institute received three production line team at the Shanghai Base rated as a “LevelAchievement Awards.letters of thanks from customers fully reflecting customers’ high recognition of the Company’s professional capabilities service attitude and response efficiency. 1 Standardised Team” and the non-destructive testingteam at the Lanzhou base rated as a “Level 2 StandardisedTeam”.Indicators and Targets

* LANPEC (Shanghai) was selected for the List of 2025

Centred on the safety and quality of products and services the Company has set clear management objectives in the 15th Five-Year Development Plan. To ensure Shanghai Manufacturing Champion Enterprises published

the effective implementation of the objectives the Company has established a system of performance indicators and through various mechanisms conducts by the S hanghai Municipal Commission of Economy and

dynamic monitoring regular reviews and continuous improvement of key indicators. No major product-related safety or quality liability accidents occurred in 2025. Informatisation.

45 462025 Sustainability Report

Data Security and Customer Privacy Protection Special Training Session on Cybersecurity

On 4 November 2025 the Company held a special training session on cybersecurity

The Company strictly complies with the requirements of national laws regulations and documents such as the Cybersecurity Law of the People’s Republic of China

aimed at comprehensively enhancing the cybersecurity awareness of all employees

the Data Security Law of the People’s Republic of China the Personal Information Protection Law of the People’s Republic of China and the Regulations on the

strengthening the Company’s line of defence for information security and effectively

Classified Protection of Cybersecurity. In 2025 the Company did not experience any data security or customer privacy breach incidents.preventing cyber threats such as ransomware phishing emails and watering hole

The Company has formulated the Management Measures for Computers and Information Systems the Management System for Information Systems Information websites.Equipment and Storage Devices and the Security and Confidentiality Strategy for Classified Computers. In 2025 the Company formulated the Interim Measures for

Drawing on real cases such as ransomware and phishing emails the Company analysed

Cybersecurity Management to strengthen cybersecurity management implement the cybersecurity accountability system improve the cybersecurity assurance

the harm posed by cyber threats and on this basis systematically communicated the

system and enhance cybersecurity protection capabilities.cybersecurity management measures of higher-level units thereby deepening security

In accordance with the principles of “the person in charge is responsible” and territorial management Party organisations at all levels bear primary responsibility awareness into a code of conduct that every employee must follow. Special Training Session on Cybersecurity Site

for the cybersecurity work of their respective enterprises. The Party Committee Secretary is the first responsible person and the member of the leadership team

in charge of cybersecurity is the directly responsible person. The Company’s Financial Assets Department (Information Management Department) is the functional

management department for the Company’s cybersecurity and informatisation responsible for the daily management of cybersecurity and for coordinating and

organising cross-departmental and cross-enterprise cybersecurity.The Company has formulated the Overall Informationisation Plan focusing on the decision analysis level executive management level and business implementation Supply Chain Security and Management

level and developed plans covering the construction of the decision analysis system the integrated supply chain and finance system and the project management

platform among other areas with a commitment to achieving efficient collaboration in data management.LANPEC has established a supplier system with extensive sources a diverse structure and stable cooperation. Suppliers are categorised and graded and

In 2025 the Company strengthened system security protection advanced information system development and improved permission management thereby

differentiated management is implemented based on their classifications. The Company categorises suppliers into three main categories including Category A

safeguarding customer information and commercial secrets while effectively supporting business collaboration and management decision-making and laying a

core components for special equipment Category B general equipment components and Category C low-value consumables.solid security foundation for digital transformation.LANPEC’s Key Measures for Data Security and Customer Privacy Protection Governance

The Company has formulated the Procurement Management Measures and revised the Supplier Management Measures in 2025 establishing a clear and efficient

Category Specific Content supply chain management framework aimed at ensuring the quality of procured materials reducing procurement risks and costs and enhancing supply chain

reliability.* The Company’s core systems all use strong password authentication for login and data access

LANPEC’s Main Management Structure for Supply Chain Security and Management

permissions for business system data are strictly segregated based on actual business needs.System security * In terms of network security security protection measures such as firewalls intrusion detection and

assurance internet behaviour management are adopted.* The filing for Level 2 and Level 3 classified protection of cybersecurity for information systems is

completed to ensure the security and compliance of the infrastructure. It is the supplier management body responsible for approving major matters such as supplier admission

Procurement

* In January 2025 the U8 ERP system was launched achieving foundational supply chain management; assessment and exit as well as approving the annual list of qualified suppliers.Management

in June the DTS system was launched connecting business and financial data links and realising the Working Group

Information integration of business and finance.system

development * At the beginning of 2025 the construction of the operational management dashboard was initiated

integrating multidimensional information such as operational data project progress and key performance It is the centralised supplier management department. Its main responsibilities include establishing the

indicators and was fully implemented by the end of the year. Operations supplier management system; formulating and revising supplier management rules and regulations;

Management organising supplier admission evaluations on-site reviews annual assessments and grading evaluations;

* Customer information is restricted to internal use within the relevant business department and cross- Department establishing and maintaining the List of Qualified Suppliers; and taking the lead in the selection and

departmental access is subject to the approval process. management of strategic suppliers as well as the establishment and management of the blacklist.* In conjunction with the development of the Company’s information system (DTS) tiered access rights have

Customer information been established for the viewing and use of customer information with business departments only having

access rights It is the responsible department for supplier sourcing and daily management

management access rights to their own department’s customer information and functional management departments with main responsibilities including sourcing recommending and applying for the

having access rights corresponding to their management responsibilities.admission of new suppliers; completing and updating admission materials such as the

* Through the triple controls of policies technology and processes a closed-loop highly confidential Procurement

Department Supplier Questionnaire and maintaining the basic information in the list of qualified

customer information access rights management system has been established.suppliers; being responsible for the day-to-day maintenance of supplier relationships

and dynamically monitoring their credit and operating status etc.

47 482025 Sustainability Report

Strategy By implementing green procurement strengthening joint integrity-building and controlling the sources of conflict minerals the Company has established

a sustainable and compliant supply chain management system which not only effectively prevents environmental social and governance risks but also

demonstrates our responsibility and commitment to promoting the coordinated sustainable development of the industrial chain.The safety and sustainability of the supply chain concern not only the stability of the Company’s production and delivery but also directly affect the resource

efficiency and environmental footprint of the upstream and downstream segments of the industrial chain. If supply chain management is weak it is vulnerable to

geopolitical shocks and fluctuations in raw material prices which may lead to project delays and even trigger a crisis of customer trust. If a green and transparent LANPEC’s Key Actions and Measures for Supply Chain Security and Management

supply chain system is established it can not only safeguard the continuity of the Company’s business but also drive suppliers to improve environmental protection

and labour standards reducing carbon emissions and resource waste across the entire value chain.Category Measures

LANPEC’s Risks and Opportunities Analysis for “Supply Chain Security and Management”

Type Specific Description Timeframes of Financial Impacts Response Strategies * In our business practices the Company adheres to green procurement giving priority to and selecting Impact suppliers with EHS (Environmental Health and Safety) management systems. At the same time for

A tightening supply of key raw materials and core Increase in Green supply chain

* Establish a localised suppliers with outstanding ESG performance the Company includes this as a bonus item in supplier

components may result in extended procurement Medium and long operating costs

Market risk supply mechanism for key partnership management and gives priority to cooperation under the same conditions.cycles and significant cost fluctuations affecting term Decrease in

materials and give priority

the on-schedule delivery of projects. operating revenue

to developing domestic

If effective ESG audits are not conducted on alternative suppliers. * The Company has formulated and signed the Integrity Cooperation Agreement with suppliers to regulate

suppliers issues such as non-compliant labour

Medium and long Decrease in * Incorporate ESG clauses Integrity supply transaction conduct jointly foster a fair and impartial trading environment prevent and resist commercial

Reputation risk practices and failure to meet environmental

term operating revenue into the supplier admission chain bribery and prevent the occurrence of non-compliant disciplinary and illegal incidents.standards may arise potentially triggering public and annual assessment * As of the end of 2025 more than 700 Integrity Cooperation Agreements had been signed.opinion crises and damaging corporate reputation. system and implement tiered

management.If we enhance our proprietary technology * Carry out supply chain * The Company currently does not involve the use of 3TG (tantalum tin tungsten and gold) mineral

accumulation and engineering experience in areas Medium and long Increase in social responsibility training

Market opportunity resources in its production processes. We adhere to responsible procurement and commit not to use

such as efficient heat exchange we will secure term operating revenue and joint audits to promote minerals sourced from conflict-affected areas and explicitly require suppliers not to use minerals from

more orders and expand our market share. compliance across the entire Conflict mineral such regions or those that violate our policies.chain. management * The Company undertakes to comply with Organisation for Economic Co-operation and Development (OECD)

Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk

Impacts Risks and Opportunities Management Areas and the provisions relating to conflict minerals (tantalum tin tungsten and gold) under the Dodd-

Frank Wall Street Reform and Consumer Protection Act.The Company’s supplier management follows the principles of openness fairness impartiality compliance integrity and merit-based selection. By leveraging

professional and information-based approaches and through mechanisms such as admission reviews and dynamic assessments we achieve systematic graded

management of suppliers throughout their lifecycle.LANPEC’s Supply Chain Security and Management Targets

LANPEC’s Main Processes and Contents of Supplier Management Indicators and Targets and Progress

Process Specific Content

To enhance the sustainability of supply chain management the Company will

* Based on suppliers’ basic information qualifications relevant performance management systems equipment capabilities gradually establish a quantifiable and traceable supply chain management

technical capabilities and other aspects they are included in the list of qualified suppliers after passing the assessment. indicator system. By setting clear annual targets and performance Target: Suppliers’ Integrity Cooperation Agreement signing rate: 100%

* According to material classification differentiated assessment methods are adopted. For Category A a “document review + on- standards we will drive the supply chain from merely “ensuring supply”site or online qualification assessment” approach is adopted; for Category B a “document review + on-site spot-check assessmentAdmission and towards providing strong support for building a safe transparent green andof key items” approach is adopted; for Category C a “document review” approach is adopted. The supplier re-evaluation cycle for

review efficient modern supply chain system.Category A and Category B materials is three years and the supplier re-evaluation cycle for Category C materials is five years. Achieved

* In 2025 a new supplier pre-assessment process was added. On the premise of controllable risk (preliminary pre-assessment) this

provided the necessary flexibility for procurement activities while adhering to the bottom line that no long-term cooperation may

be carried out without formal admission.* Annual dynamic appraisals are conducted for qualified suppliers and the appraisal dimensions include quality delivery price

willingness to cooperate and service responsiveness with weighted scoring applied. Based on the assessment results suppliers

Dynamic are classified as excellent good qualified or unqualified.appraisal * Excellent suppliers are prioritised for invitation to participate in procurement and are granted preferential payment terms among other

benefits. For suppliers with an assessment score of less than 70 points the Company suspends their qualified supplier status and orders

rectification within a prescribed time limit; if they remain unqualified after rectification their qualified supplier status is terminated.

49 502025 Sustainability Report

Employee Rights and Benefits Industry-university Cooperation with East China University of Science and

Technology to Cultivate Outstanding Talent Jointly

Employment and Retention In November 2025 LANPEC held the opening event for the graduation internship programme

for students majoring in Process Equipment and Control Engineering from East China

University of Science and Technology as well as the unveiling ceremony for the practical

The Company strictly complies with the requirements of laws regulations and and other regulatory requirements such as the Labour Law of the People’s Republic teaching base at the Company’s Shanghai Base. This training programme lasted for six

of China the Labour Contract Law of the People’s Republic of China the Employment Promotion Law of the People’s Republic of China the Law of the People’s days with a total of 120 students majoring in Process Equipment and Control Engineering

Republic of China on the Protection of Minors the Provisions on the Prohibition of Using Child Labour resolutely eliminates any form of illegal employment from East China University of Science and Technology participating.practices such as forced labour discriminatory employment and child labour and effectively safeguards the legitimate rights and interests of employees. In 2025

the Company did not employ child labour and no incidents of forced or compulsory labour occurred. The Company arranged training and learning content covering R&D and design specialised

product technologies processes and quality control inspection and testing and other

The Company continuously improves its internal human resources management system and has formulated systems such as the Personnel Management System related areas. The knowledge points spanned the entire lifecycle of energy equipment

and the Compensation Management Measures clarifying standardised procedures for each process including recruitment hiring and contract signing to ensure helping students deepen their understanding of enterprises product technologies and Plaque of East China University of Science and

that employment practices are lawful and compliant fair and just and transparent and efficient. In 2025 the Company newly formulated the Management engineering practice. This event was an important achievement for the Company in Technology Practical Teaching Base

Measures for the Postdoctoral Research Workstation which clarified the management bodies and their responsibilities as well as the recruitment requirements strengthening collaborative exchanges with universities and promoting industry-university-

for postdoctoral personnel in order to further implement the strategy of innovation-driven development and talent-driven enterprise development. research cooperation.LANPEC’s Employment Principles

Fairness and transparency

To ensure equal employment opportunities and career development space for all the Company has consistently adhered to the principles of

justice fairness and openness in talent selection and employment. During the talent assessment process the Company comprehensively considers At the launch ceremony of the 2026 Autumn Campus Recruitment Month for “Six Universities in the Northeast” of Shanghai the Company was

individuals’ educational background professional skills and work experience ensuring the transparency and fairness of the selection process. awarded the honours of “Best Employer” by the “Six Universities in the Northeast” of Shanghai and “Industry-Education Integration Training Base”

by the University of Shanghai for Science and Technology.Anti-harassment

The Company is committed to eradicating conduct in the workplace that infringes upon personal dignity as well as sexual harassment and abuse of

power that violates others’ wishes.Anti-child labour and anti-forced labour

The Company does not employ child labour under the age of 16 nor does it use forced labour debt-bonded labour slavery or human trafficking and

does not use involuntary prison labour. Juvenile workers aged 16 to under 18 must be managed in accordance with the Law of the People’s Republic of

China on the Protection of Minors.Personal privacy protection

The Company attaches importance to protecting employees’ personal privacy and does not disclose employees’ personal privacy information to

external parties without their consent. Best Employer Industry-Education Integration Training Base

Note: The “Six Universities in the Northeast” of Shanghai include Fudan University Tongji University Shanghai University of Finance and

In terms of employee recruitment each department of the Company submits the Annual Position Requirement Application Form at the year-beginning based on Economics Shanghai International Studies University Shanghai University and the University of Shanghai for Science and Technology.annual staffing quotas and business development plans. After approval by the Company’s leadership it is incorporated into the annual recruitment plan. Based on

the annual recruitment plan the Company carries out talent selection through multiple channels such as campus recruitment and online recruitment platforms

in strict accordance with job responsibility requirements. During the recruitment process no differential treatment is given on the basis of religion ethnicity

gender political views region skin colour or other such factors thereby effectively safeguarding every candidate’s equal right to employment. The Company

comprehensively assesses candidates’ educational background work experience professional skills personal capabilities and health condition ensuring scientific

professional and compliant talent selection.Employee Rights and Benefits

In 2025 the Company recruited 59 new employees including 12 fresh graduates. By the end of 2025 the Company had 6 demobilised military personnel.The Company has consistently adhered to being guided by technological innovation attaches great importance to collaborative innovation and talent development The Company has established a system encompassing basic rights and interests protection a competitive remuneration structure and a diversified non-

and continuously deepens strategic cooperation with multiple universities and research institutes. Focusing on scientific research talent cultivation and practical monetary benefits framework effectively safeguarding employees’ lawful rights and interests and consolidating the foundation for talent development.education the Company has carried out extensive and in-depth collaboration with partners. Through resource sharing and complementary advantages we The Company has formulated systems such as the Compensation Management Measures clarifying the implementation rules for performance appraisal

have established a deeply integrated mechanism for attracting cultivating and retaining talent providing solid talent support and innovation assurance for our and bonus distribution for functional departments business and R&D departments and departments under the production segment and standardising the

deepened reform and high-quality development. remuneration management system.

53 542025 Sustainability Report

Overview of LANPEC’s Employee Rights and Benefits Occupational Health and Safety

Basic rights Remuneration benefits Non-remuneration benefits

* The Company pays social insurance for * Each position corresponds to a corresponding salary range * A comprehensive benefits package is provided

The Company strictly complies with relevant laws regulations and policy In 2025

employees. and employees’ remuneration is determined based on a including housing delivery subsidies high-

provisions such as the Work Safety Law of the People’s Republic of China and

* We provide statutory holidays paid annual comprehensive assessment of their position grade work temperature allowances birthday allowances

the Law of the People’s Republic of China on the Prevention and Control of

leave sick leave marriage leave maternity performance capabilities and qualities and other factors. commuter shuttle buses and three free

Occupational Diseases continuously improves the intrinsic safety level and

leave and other types of leave. * Remuneration allocation is established on the basis of meals.lays a solid foundation for high-quality sustainability. In 2025 the Company

performance appraisal with remuneration determined The Company experienced no incidents of deaths due

experienced no incidents of deaths due to work-related injuries and

by position adjusted with position changes and varied

received no penalties from the competent authorities for violations of laws to work-related injuries and received no penalties from

according to position while giving priority to performance

and regulations related to occupational health and safety. the competent authorities for violations of laws and

and linking it to the Company’s overall benefits.regulations related to occupational health and safety.Governance

The Company has formulated and implemented the Safety/Environmental Management Procedures systematically carrying out hazard identification risk assessment

and graded management identifying major hazard sources and formulating targeted control plans preventing reducing or eliminating occupational health and safety

risks at the source and promoting safety management towards greater refinement and standardisation. At the same time the Company has established a full-chain

institutional system covering responsibility implementation health surveillance education and training warning and notification and monitoring and evaluation including

the Responsibility System for the Prevention and Control of Occupational Disease Hazards the Management Provisions on Occupational Health Examinations the Publicity

Education and Training System for the Prevention and Control of Occupational Diseases the Warning and Notification System for Occupational Disease Hazards the

The Company deepens its people-centred employee care practices. Through measures such as health protection targeted condolence commuting support and Management System for the Monitoring and Evaluation of Occupational Disease Hazards and other rules and regulations comprehensively preventing and controlling

improvements to the working environment during breaks we convey the warmth of the organisation and enhance employees’ sense of belonging cohesion and well-being. occupational disease hazard factors in the workplace and effectively safeguarding employees’ occupational health rights and interests.LANPEC’s Key Measures for Employee Care in 2025 The Company continuously improves a comprehensive clearly defined effectively implemented occupational safety and health management system and has established

a Work Safety Committee with the Chairman as the first responsible person and has set up a Work Safety Office under it to coordinate daily safety management while

formulating systems such as the Implementation Rules for the Interim Provisions on Shared Responsibilities of Party and Government Leadership and Dual Responsibilities

Dimension Specific Measures for One Post in Work Safety and the Measures for the Assessment of Work Safety Responsibility Targets to reinforce management responsibilities at all levels.* Actively responded to the philosophy of “helping others when healthy receiving help when in need” LANPEC’s Management Structure for Occupational Health and Safety in 2025

provided Shanghai employee mutual assistance coverage for 570 employees and safeguarded employees’

health through this “second medical insurance”.Health care * In conjunction with the Community Health Service Centre in Lvxiang Town conducted the Employee Health Day The First Responsible Persons of the

protection Company The Company has established an occupational health and safety activity “Medical and Enterprise Joining Hands to Build Health” every month mainly providing traditional Chinese

Party Committee Secretary and Chairman management system in accordance with the requirements of GB/T medicine physiotherapy services for employees. In 2025 10 sessions had been carried out.

45001-2020 Occupational Health and Safety Management Systems—

* Invited Tinglin Hospital to jointly carry out the “Healthy Enterprise Tour” campaign and provide a series of

Requirements with Guidance for Use and has obtained certification

health and medical services.which is valid until 3 December 2026.* Visited 23 hospitalised employees extended condolences five times to the immediate family members of

deceased employees once to female employees who gave birth and 26 times to retired employees. Work Safety Committee

Employee condolence * Carried out the activity of “Let the Bright Party Flag Fly on the Frontline” with leadership and labour union

and support chairpersons leading teams to visit frontline employees; extended birthday greetings to 45 employees on

long-term assignments.* Distributed festive benefits to all employees twice during the Spring Festival and Mid-Autumn Festival.Person in Charge of Safety

* Opened two shuttle bus routes in the petrochemical area where employees live in concentrated Assistant General Manager

Commuting convenience

communities which not only facilitated commuting and saved time but also provided convenience for new

support

employees in choosing where to live.Occupational Health and Safety Management System Certificate

* Actively implemented the implementation plan of the Municipal Federation of Trade Unions and built two

Improvement of the new restrooms equipped with tables chairs air conditioning and other facilities at frontline production Work Safety Management Department

working environment workplaces. Provided cooling drinks during the summer with the aim of improving employees’ working Work Safety Office

conditions.

55 562025 Sustainability Report

Strategy Impacts Risks and Opportunities Management

Occupational health and safety not only concern employees’ individual well-being but also directly affect operational efficiency. If we systematically promote To address occupational health and safety risks and seize potential opportunities the Company has established a systematic action management system covering

the development of health and safety systems this can enhance employees’ sense of belonging and productivity and reduce workplace injuries; inadequate production safety occupational health management hazardous chemicals control and emergency response. Through a series of measures including improving

management may result in occupational injuries or chronic health issues. institutional mechanisms strengthening hierarchical risk control increasing safety investment and deepening education training and practical drills we

consolidate the safety foundation effectively prevent major safety risks and build a solid safety barrier for high-quality development.LANPEC’s Risks and Opportunities Analysis for “Occupational Health and Safety”

LANPEC’s Key Actions and Measures for Occupational Health and Safety

Type Specific Description Timeframes of Impact Financial Impact Response Strategies

National standards for work safety and Category Measures

occupational disease prevention and control

are becoming increasingly stringent. If we * Enhance all employees’ awareness of the safety “red line” and risk prevention capabilities through high-

Increase in

fail to respond promptly to new regulatory * Establish a dynamic frequency tiered and scenario-based safety training.Policy compliance Short medium and operating costs

requirements and prevention and control policy tracking mechanism * Formulate the Safety Risk Graded Control System establish a dual prevention mechanism for the

risks long term Decrease in

measures for key positions we may face and conduct regular Work safety graded control of safety risks and the investigation and rectification of hidden hazards carry out annual

operating revenue

administrative penalties and suspension of compliance assessments. identification and assessment of safety risks formulate control measures and eliminate weak links in

operations for rectification affecting project safety.* Strengthen

delivery and customer trust. * Organise Work Safety Month activities to enhance the safety awareness of all employees.communication with

regulatory authorities and

During the advancement of intelligentization plan in advance for safety * Formulate systems such as the Work Safety Education Management Regulations establish and improve

human-machine collaboration scenarios are

Increase in facility upgrades. the employee safety education and training system and carry out targeted safety education to enhance

increasing. If effective safety training and

Technological operating costs * Carry out pre-job practical employees’ occupational health and safety awareness.operating procedures are lacking this may lead Medium and long term

transition risk Decrease in training and emergency * During the publicity week for the Law on the Prevention and Control of Occupational Diseases carry out

to mechanical injuries or accidents caused by Occupationaloperating revenue drills for all staff in relation a series of activities centred on the theme of “Adhering to Prevention First and Safeguarding Occupationaloperational errors affecting employee health healthto new equipment. management Health”.and production continuity. * Provide operators with labour protection supplies such as safety helmets workwear protective shoes

* Actively participate in the protective face shields protective goggles and dust masks with an investment of RMB1444200 in 2025.formulation of industry * Every year organise occupational health examinations for employees in hazard-exposed positions

Providing high-standard safety technical standards and enhance ensuring that the pass rate for occupational health examinations reaches 100%.services can enhance customer loyalty and

Product/Service Increase in professional influence in

expand the scope for co-operation both Medium and long term

opportunities operating revenue occupational health.upstream and downstream of the industrial * Formulate the Hazardous Chemicals Management System to strengthen the management of the storage

chain. use and disposal of hazardous chemicals.Chemicals * Procure secondary anti-leakage pallets for new replacement in the paint warehouse and hazardous

management waste warehouse post prominent safety warning signs and the Material Safety Data Sheet (MSDS) install

combustible gas alarms and ventilation facilities in the paint mixing room and apply epoxy flooring

Based on the above analysis the Company has integrated occupational health and safety into its strategic planning and formulated the 15th Five-Year Development treatment in the hazardous waste warehouse to ensure safe chemical management.Plan of the Safety and Environmental Protection Department. Through systematically reviewing the current situation and functional positioning we have clarified

development objectives key tasks and implementation pathways in order to strengthen resource assurance and support systems dynamically identify safety

risks and deploy systematic response strategies. * Formulate the Emergency Plan for Production Safety Accidents (Version G) covering comprehensive

emergency plans special plans and on-site response plans.The Company has formulated a vision that by 2030 the safety accountability system will be more rigorous the safety policy system will be sounder the safety

Emergency * Establish an emergency command centre emergency response teams and rescue teams forming an

management mechanism will be more systematic employees’ safety competence will be significantly enhanced functional performance capabilities will be management efficient and responsive emergency rescue system featuring unified command tiered response resource

markedly improved the level of intrinsic safety will be clearly raised and the development of safety culture will be strengthened. Through the introduction of sharing coordinated operations integration of full-time and part-time forces and a combination of

advanced information technologies and systems management efficiency and decision-making accuracy will be improved. prevention and response.

57 582025 Sustainability Report

On this basis the Company takes the Work Safety Month as an opportunity to carry out intensive multi-dimensional safety enhancement actions comprehensively

improving risk response and on-site control capabilities. Special Safety Knowledge Training for Production and Operations Personnel

LANPEC’s Key Actions and Measures for Work Safety Month in 2025 From February to April 2025 in accordance with the 2025 Annual Plan for Work Safety and the Work Safety Education Management Regulations

and in conjunction with the work tasks set out in the Company’s Three-Year Action Plan for Tackling the Root Causes of Work Safety (2024-2026)

the Company carried out the first phase of special safety knowledge training for production and operations personnel in 2025 with a view to

Category Specific Content further enhancing the level of work safety management and strengthening the safety awareness and self-protection capabilities of production

and operations personnel.* Organised study sessions to watch safety materials such as “Principal Corporate Responsibility” This training covered the Shanghai Base and the Lanzhou Base. The content focused closely on frontline operational risks including “Case and“Strengthening Foundations and Consolidating Fundamentals—Three-year Action for Tackling the Root Safety Prevention Measures for Confined Space Operation Accidents” “Safe Operating Procedures and Accident Prevention Measures for SpecialCauses of Work Safety” the themed film for “Work Safety Month” and warning education films on work Equipment” and “Case and Safety Prevention Measures for Working at Height Accidents”. This strengthened employees’ understanding and

Multi-channel safety accidents. implementation of safety procedures reinforced the defence line for safe production and effectively ensured the smooth and orderly operation

safety warning * Hung themed banners posted safety slogans set up publicity display boards and produced safety of production.education publicity videos.* In conjunction with Lanzhou Petroleum Machinery Research Institute Co. Ltd. held a “Safety Publicity andConsultation Day” event at Wanhui International Plaza to popularise safety knowledge among community

residents.* Promoted the philosophy of “My Safety My Responsibility; Others’ Safety My Obligation” organised the

“Spot Safety Hazards at Hand” campaign encouraged employees to participate in the “I Identify SafetyHidden hazard Hazards” online quiz and Xiaohongshu Safety Training Camp learning produced two short videos on hazard

investigation and

management identification focusing on unsafe human behaviours and unsafe physical conditions and established

a long-term hazard management mechanism during Work Safety Month to promote the sustained

effectiveness of hazard management.Safety Knowledge Training Site* Under the theme of “Everyone Talks About Safety Everyone Can Respond to Emergencies—IdentifyingSafety Hazards Around Us” more than 130 employees received training on safety knowledge including

workplace safety guidelines and policies laws and regulations and completed on-site tests.* Conducted specialised training on Criteria for Identifying Major Accident Hazards in Industrial and Trade In 2025

Enterprises to enhance the ability of management personnel and frontline employees to identify and

respond to major hazards.Promotion and * Organised and carried out the 2025 special safety education and training activities for relevant

dissemination of

safety concepts contractors’ personnel systematically promoting the Company’s Work Safety Inspection System and

Management Provisions on the Investigation Identification and Governance of Hidden Hazards in Work

Safety Accidents and other systems. The Company recorded more than 8400 cumulative attendances at safety education and training sessions and implemented

* Established a unified Health Safety and Environment (HSE) data repository for the Company providing categorised and targeted training for different groups such as new employees frontline personnel and outsourced personnel

convenient retrieval and download functions through a digital platform and clarified usage standards significantly improving employees’ safety awareness and operational standardisation.through dedicated communication sessions enabling all departments to efficiently access the latest HSE

information.* Developed safety production micro-courses and submitted the case “LANPEC Pre-shift Briefing—Voice Outthe Sense of Crisis and Work Out the Sense of Safety”. Indicators and Targets

* Organised and carried out emergency drills for heatstroke in high temperatures special drills for lifting In 2025

injuries and scalding accidents and fire evacuation drills. The Company attaches importance to the measurability and continuous

* Organised special training on fire emergency response capabilities for canteen operators and security improvement of occupational health and safety performance and has gradually

Emergency capacity personnel on one inspection and one extinguishing. established clear quantitative targets. To ensure the effective implementationbuilding and supervision * Conducted multiple safety supervision and inspection visits to production workshops using the “Four of the targets the Company has established a safety performance monitoringand inspection No’s and Two Directs” approach (i.e. no prior notice no greeting in advance no listening to reports no mechanism covering all business units dynamically tracked progress through

accompanying reception go directly to the grassroots level and go directly to the site) with a focus on the regular collection and analysis of key indicator data and strengthened The periodic inspection rate of special equipment and

employees’ operating behaviour and the implementation of safety protection measures. accountability. In 2025 the periodic inspection rate of special equipment and the the calibration rate of safety accessories both reached

* Carried out self-inspection and self-rectification activities covering the storage and use of hazardous calibration rate of safety accessories both reached 100%; the overall work safety 100%

chemicals the environment at operating sites temporary electricity use fire-fighting facilities and the situation remained stable; there were no penalties imposed by local municipal

integrity of equipment and facilities with all identified issues and hazards rectified. emergency management authorities ecological environment authorities or

other relevant authorities and no complaints from stakeholders.

59 602025 Sustainability Report

Employee Training and Development Launch of New Employee Training Embarking on a New Journey of Youthful Aspiration

In July 2025 the Company officially launched its 2025 new employee training programme. During the training period the Company’s functional

Employee Training departments delivered systematic presentations on the organisational structure departmental responsibilities and relevant management

systems while each branch in light of its respective business segments provided detailed introductions to its principal business and

The Company’s employee training revolves closely around the strategy of “talent-driven enterprise development” and the annual business objectives adheres to development dynamics. To further guide new employees in establishing positive professional values and efficient working habits the Company

systematic planning and precise implementation and based on strategic orientation and job capabilities has formulated and issued the 2025 Annual Education also presented them with the classic book Seven Habits of Highly Effective People.and Training Work Plan clarifying the annual objectives and key tasks. This training not only helped new employees quickly understand the Company’s culture institutional norms and business layout but also laid

In 2025 the Company focused on core talent streams and systematically carried out comprehensive multi-level training covering key groups including a sound foundation for their integration into the team and for clarifying their career development direction. In the future the Company will

management technical skilled and new employees. By advancing training programmes in a layered and categorised manner we effectively enhanced employees’ continue to carry out high-quality talent recruitment improve the training system for young employees build a development platform for

professional quality and overall capabilities providing strong talent support for improving organisational capabilities and business development. young employees and inject youthful strength into the successful achievement of the “second entrepreneurship”.LANPEC’s Talent Pipeline Development Measures in 2025

* Strengthened managers’ understanding and implementation of standards and introduced advanced management concepts

through policy communication and implementation guidance from external experts and other methods.* Conducted special training on the development of gold-medal teams to enhance team leaders’ capabilities in training and

Management coaching self-development and daily management and to strengthen team collaboration and problem-solving capabilities.talent

empowerment * Achieved full coverage of learning in the Party’s theories policies and regulations and Party building practices by leveraging the

combination of the “SASAC e-Learning” platform and offline training. Carried out special training on the workflow for Party member

New Employee Onboarding in 2025

development strengthened process standardisation and material filing and through explanation + case + Q&A and subsequent

closed-loop inspections promoted the standardisation of Party affairs.In 2025

Foundation * Carried out systematic and in-depth training in areas such as pressure vessels green hydrogen and green ammonia AI and

strengthening intelligent manufacturing with a focus on supporting core business and the forward-looking technology layout. Organised

through

technological guidance on professional title applications and the obtaining of industry qualifications (such as Chief Quality and Safety Officer and

talent Responsible Engineer) thereby strengthening professional foundations. Throughout the year the Company organised and implemented a total of 278 training programmes of various types with actual employee

education funds used amounting to RMB676200. Over 12000 participant attendances were recorded throughout the year covering all

levels of the Company and relevant personnel with a cumulative total of over 5800 training hours.* Focusing on production safety and the enhancement of practical operational skills relied on the Chief Technician Studio and the

Skilled talent master-apprentice mechanism to carry out specialised skills and safety training for each work section. Conducted comprehensive

development training for obtaining and renewing job qualifications ensuring that key positions were compliant through certification and

consolidated professional competence and safety awareness through continuing education. Employee Appraisal and Promotion

The Company has established and improved classified management and incentive mechanisms formulated and implemented institutional documents such as the* Carried out new employee training in accordance with a three-stage pathway of “cognitive orientation-cultural refinement Performance Appraisal Management Measures the Cadre Management Measures the Non-leadership Position Management Measures and the Scientific ResearchNew employee- position practice”. Ran the main thread of “theory practice and experience” throughout the whole process balanced safety Project Management Measures established career development pathways based on 6 sequences including management professional (functional technical)

development

education with cultural immersion and supported the comprehensive integration and growth of new employees. business (sales engineering) and skills and implemented classified management and targeted incentives. At the same time the Company has formulated

supporting special management measures for personnel in special positions such as cadres scientific research and non-leadership positions further refining

training pathways assessment standards and development channels.To foster a workplace atmosphere of “focus on strivers high-performance orientation” the Company conducted the 2025 annual performance appraisal for both

the organisation and employees through two dimensions namely “annual work reporting/annual summary + performance assessment” so as to fully mobilise the

enthusiasm and initiative of all cadres and employees improve work efficiency and quality and ensure the effective achievement of the Company’s annual targets

and tasks.

61 622025 Sustainability Report

LANPEC’s Performance Appraisal Measures in 2025 LANPEC’s Key Measures for Social Welfare and Volunteer Services in 2025

Organisation

Category Key Measures

* The Company organised and implemented the annual work debriefing and performance appraisal of each branch and functional department in a

unified manner. * Company leaders led a team to the Anning District Fire Rescue Brigade in Lanzhou and the Shajingyi Police

Police–civilian joint Station to carry out a police-civilian joint outreach and care visit activity extending summer greetings and

* Each branch organised and implemented the annual work debriefing and performance appraisal of other departments (excluding functional outreach and care visits highest respect to the frontline “firefighting warriors” and “guardians of the people” and thanking them for

departments). Among them:

their hard work in safeguarding local safety.R &D departments: Assessments were conducted on business support and the progress of scientific research projects;

* Organised volunteers to carry out meticulous trimming of the roadside green belts removing dead branches

B usiness departments: Assessments were conducted on the achievement of departmental profit collections and the value of newly signed weeds and rubbish.contracts;

Community environmental * Cleared all kinds of advertisement stickers from utility poles restoring the tidiness of the urban streetscape

Production departments: Assessments were mainly conducted on the achievement of work safety in production quality delivery schedule beautification initiative and effectively improving the appearance of the community’s public environment.production completion volume and profit.* Conducted parallel civility publicity activities to guide residents to proactively care for public spaces and

maintain the community environment.Employees

Public order co- * Implemented temporary traffic management on certain road sections to ensure orderly passage for

* The evaluation content included work performance and competency quality evaluation. The main content of competency quality evaluation included management initiative vehicles and pedestrians.responsibility and commitment initiative and proactiveness pioneering and innovation continuous learning and other aspects.* The content of the work performance evaluation was jointly determined by employees and their respective departments based on job * In July 2025 faced with persistent heavy rainfall

responsibilities submitted to the supervising leader for approval and then reported to the human resources department for record-filing and the Company’s resident village cadres worked

implementation. with local officials as “flood prevention pioneers”.Emergency Rescue and Through rain patrols and overnight duty they

The Company consistently regards performance appraisal results as the core basis for talent management and development. The results of performance Disaster Relief during organised timely emergency response effectively

appraisals are mainly used in key areas such as remuneration adjustments performance bonus distribution advanced selection and appraisal training and the Flood Season preventing property losses. The Company’s rapid

development and position adjustments thereby giving full play to the role of performance management in incentives constraints and talent development. response and pragmatic commitment won public

recognition and a ceremonial banner. Emergency Rescue and Disaster Relief during the Flood Season

After the annual performance appraisal work is completed the Company promptly communicates the appraisal results to the appraisees and conducts interviews

with them regarding the appraisal results. The interview records are signed by both parties and then submitted to the human resources department for filing

ensuring a transparent process and traceable results. The Company has established a standardised performance appeal mechanism. If the two parties to the

appraisal cannot reach an agreement on the appraisal results the appraisee has the right to submit a written appeal to the performance appraisal working group

within two working days after the performance feedback interview. If the appraisee still objects to the outcome of the initial appeal a second appeal may be Rural Revitalization

submitted to the performance appraisal leading group.In terms of promotion management the Company uses performance appraisal as an important basis for employee promotion and requires employees proposed

for promotion to meet the performance standards stipulated for the corresponding positions. The selection and appointment of cadres are mainly carried out The Company actively engages in the national rural revitalization initiative leverages resource endowments and innovatively implements practical measures

through internal recommendation external exchange open selection and other methods. At the same time we also flexibly adopt such methods as competitive such as consumption-based assistance effectively aligning with rural development needs and supporting the upgrading of the agricultural industry and the

appointment open recruitment and commissioned recommendation so as to broaden the horizons for selecting and employing talent stimulate organisational enhancement of rural economic vitality. The Company strictly complies with the Law of the People’s Republic of China on the Promotion of Revitalization of Rural

vitality and promote the formation of a sound employment mechanism in which personnel can be promoted or demoted and can enter or exit. Areas and implements the relevant policy requirements of the General Office of the CPC Central Committee’s Opinions on Continuously Assigning First Secretaries

and Work Teams to Key Villages Measures of Gansu Province for the Administration of Village-based Work Teams Work Plan of Gansu Province for Advancing

the Comprehensive Governance of Exorbitant Bride Prices in Rural Areas and other relevant policies to ensure that assistance work is carried out in a lawful

Contributions to the Society compliant precise and orderly manner.The Company’s Party Committee has consistently advanced designated assistance as an important political task in a coordinated manner. At the beginning of

the year the Company deployed assistance tasks adjusted and strengthened the leading group for designated assistance work with the Company’s principal

The Company has consistently upheld the philosophy of actively giving back to In 2025 leader serving as head the leaders in charge serving as deputy heads and the heads of relevant functional departments participating jointly further clarifying the

society and offering love and care in social welfare and volunteer services and has division of responsibilities and establishing an efficient working pattern of Party Committee overall coordination departmental collaboration and implementation

been committed to engaging in public welfare and charitable undertakings fulfilling by village-based personnel. The leading group regularly heard reports from the village-based task force promptly studied and resolved difficult issues in advancing

corporate social responsibility through practical actions. The Company advocates the the assistance work and ensured that all measures were advanced in an orderly manner.volunteer service spirit of serving society and spreading love and care encourages The Company’s principal leaders and management team members took the lead in setting an example carrying out in-depth field research in Wangchangsi Village

employees to participate extensively in various public welfare activities and is The Company donated RMB150000 and twice during the year. Through household visits discussion sessions and on-site inspections we gained a comprehensive understanding of the village conditions

committed to supporting community development while fostering an organisational was awarded the “Charity Heart” honorary and public sentiment industry development rural construction and people’s livelihood protection laying a solid foundation for the precise formulation and

culture that strives for progress and goodness thereby promoting the collaborative certificate by Lvxiang Town. adjustment of assistance plans. On this basis the Company coordinated and advanced multidimensional measures in areas such as livelihood care educational

creation of economic and social value. assistance the cultivation of civility and industrial support systematically contributing to the comprehensive revitalization of rural areas.

63 642025 Sustainability Report

LANPEC’s Key Measures for Rural Revitalization in 2025

Category Measures

* Took the paired care initiative as an important means of connecting with and serving the public

and consolidating poverty alleviation achievements and carried out a total of 11 paired care activities

Paired care and throughout the year.compassion to address * Through regular telephone communication home visits and other means the assistance responsible

urgent difficulties and persons gained an in-depth understanding of the care recipients’ physical condition daily needs and

pressing concerns practical difficulties. They actively coordinated resources helped resolve 1 practical difficulty handled 2

practical matters on their behalf effectively conveyed the warmth of the organisation and enhanced the

public’s sense of gain and happiness.Providing dedicated care * The Company’s village-based cadre together with members of the village-based work team organised Spring Festival Couplet Distribution Dragon Boat Festival Care Visit

for left-behind children to a summer volunteer childcare program providing homework tutoring interest development and safety

break the intergenerational education effectively alleviating the worries of families of migrant workers and helping to break the

transmission of poverty intergenerational transmission of poverty.* The Company placed great importance on promoting cultural and ethical development in Wangchangsi

Village and during the Spring Festival and Lantern Festival supported village-based task force members

in contacting veteran Party members and carrying out the “Spring Festival Couplets Distribution” activity

distributing a total of 1400 couplets.Enriching rural cultural * The Company organised a series of cultural activities themed “Joyful Lantern Festival Celebrating thelife and advancing theFestive Season” creating a festive and harmonious atmosphere and enriching the cultural life of villagers.development of spiritual

civilisation * Supported village-based task force in systematically reviewing innovative governance models such as

the “Integrity Bank” “Caring Hair Salon” and “Lao Wang Teahouse” and produced short videos themed on

promoting new social norms which were disseminated through multiple channels effectively enhancing

the influence of civilised practice platforms guiding villagers to abandon outdated customs and cultivate

civilised rural practices positive family values and simple honest folk customs.Summer Volunteer Childcare Program Event on “Resisting Exorbitant Bride Prices and Advocating CivilisedMarriage Customs”

* Invested RMB80000 in assistance funds specifically to jointly organise with the Provincial Committee of

the Communist Youth League and the Provincial Association for Science and Technology a themed publicity

campaign on Resisting Exorbitant Bride Prices and Advocating Civilised Marriage Customs which adopted

Using assistance funds artistic forms popular with the public such as selected excerpts from Qinqiang Opera situational dramas

precisely and deepening and musical clapper talk vividly conveying the civilised view of marriage and relationships that love is

the development of

rural cultural and ethical above material considerations effectively enhancing public recognition of changing outdated customs and

standards injecting new momentum into advancing rural governance and the building of spiritual civilisation.* The 5 cleaning vehicles purchased in 2025 at a cost of RMB12000 have effectively enhanced the

mechanisation level and efficiency of village-level sanitation operations contributing to the continuous

improvement of the village’s appearance and environment.Deepening consumption- * Actively implemented consumption-based assistance policies and in accordance with the annual

based assistance consumption-based assistance plan procured a total of RMB139500 worth of agricultural and sideline

measures and expanding products from assisted areas throughout the year through standardised procurement procedures directly

sales channels for increasing the sales revenue of local enterprises indirectly driving income growth for households lifted out Integrity Bank Point Redemption Site Donation of Cleaning Vehicles

agricultural products of poverty and ordinary farming households and effectively promoting the development of local industries.

65 662025 Sustainability Report

Corporate Governance

Governance System Improvement

The Company will continue to improve its corporate governance structure strictly in accordance with relevant laws regulations and regulatory requirements

such as the Company Law of the People’s Republic of China and the Securities Law of the People’s Republic of China continue to advance the modernisationof the governance system and governance capacity and centred on the principles of “standardisation transparency coordination checks and balances andefficiency” continuously refine its corporate governance structure and enhance its standardised operational standards. In 2025 the Company formulated and

revised systems including the Articles of Association the Rules of Procedure for the Shareholders’ Meeting the Rules of Procedure for the Board of Directors

and the Working Rules for the Audit Committee of the Board of Directors and newly formulated systems including the LANPEC Investment Management

Measures and the LANPEC Market Value Management System.LANPEC’s Corporate Governance Structure

Shareholders’ Meeting

Strategy and Sustainable Development Committee

Protection of Investors’ Rights and Interests

Nomination Committee

Board of Directors To further enhance the quality of information disclosure and optimise investor relations management in 2025 the Company systematically formulated and refined

Remuneration and Appraisal Committee the relevant institutional standards and working mechanisms with the aim of enhancing the Company’s transparency strengthening effective communication with

the capital market and promoting the continuous improvement of the Company’s corporate governance standards. The Company published the 2025 Action Plan

for Improving Quality and Efficiency and Enhancing Returns with the aim of actively putting into practice the development philosophy of being investor-oriented

Audit Committee promoting improvements in the quality of the Company’s development and its investment value and effectively protecting the legitimate rights and interests of

Executive Management

investors especially small and medium-sized investors.To further clarify the boundaries of rights and responsibilities and effectively give full play to the Board of Directors’ core role in strategic decision-making

supervision and checks and balances the Company will strengthen the support and safeguards for independent directors in performing their duties ensuring that Information Disclosure

they can fully leverage their independence and professionalism and make decision-making more scientific and independent. In terms of information disclosure the Company strictly complies with the requirements of laws regulations and normative documents such as the Securities Law

As of the end of 2025 the Company’s Board of Directors consisted of 9 directors including 3 independent directors and 1 female director. Independent directors of the People’s Republic of China the China Securities Regulatory Commission’s Measures for the Administration of Information Disclosure of Listed Companies and

have diverse professional backgrounds including at least 1 independent director who is an accounting professional 1 independent director who is a legal the Rules Governing the Listing of Stocks on Shanghai Stock Exchange. The Company has formulated the LANPEC Management System for Deferred Disclosure and

professional and one independent director with industry experience effectively supporting the Board of Directors’ high-quality decision-making on key topics such Exemption of Information Disclosure and LANPEC Market Value Management System with the aim of regulating the Company’s deferred disclosure and exemption

as financial supervision and risk management and providing solid governance assurance for the Company’s sustainable development and the creation of long- of information disclosure strengthening the Company’s market value management fulfilling information disclosure obligations in accordance with laws and

term value for shareholders. regulations and safeguarding the legitimate rights and interests of the Company investors and other stakeholders.The Company attaches great importance to the quality of information disclosure and continuously improves internal working mechanisms to ensure that

LANPEC’s Board Performance Effectiveness in 2025 disclosed content is true accurate complete timely and fair. In 2025 the Company further optimised the end-to-end control of information disclosure and strictly

implemented the verification mechanism of “four checks and seven verifications” carrying out multiple rounds of cross-verification by multiple parties across

The Company ensured that independent directors could perform their duties independently and effectively giving full play to dimensions including disclosure timing textual expression punctuation logical consistency and data accuracy. At the same time the Company relied on thethe decision-making support and supervisory role of special committees in their respective professional fields. Shanghai Stock Exchange’s intelligent verification system for information disclosure documents to build a dual assurance system of “system verification + manualreview”. Before the announcement was formally disclosed it had to be reviewed and confirmed at each level by the Chairman the Board Secretary the Securities

Board independence In 2025 the Company’s independent directors actively performed their duties with an average meeting attendance rate Affairs Representative and the heads of the relevant business departments so as to ensure that the content of the information disclosure was consistent with the

and professionalism of 100% and expressed professional opinions on matters such as related transactions and external guarantees. The Audit actual situation and to eliminate any false records misleading statements or material omissions.Committee held 5 meetings focusing on supervising the financial reporting process and the effectiveness of the internal

control system. In 2025 none of the Company’s announcements contained errors in key text or important data nor were there any circumstances requiring supplementary

announcements corrections or revisions effectively ensuring the standardisation seriousness and credibility of information disclosure and safeguarding the

legitimate rights and interests of investors and the information environment of the capital market.The Company continuously enhanced the Board’s strategic leadership capabilities and risk management and control

awareness while upholding the bottom line of professional ethics. Investor communicationBoard capability In 2025 the Company organised 4 special training sessions for directors covering topics such as “Independent Directors’ In 2025 the Company continued to deepen investor relations management actively building a transparent and mutually trusting image in the capital marketbuilding and ethical Continuing Training” “Standardised Operation of Information Disclosure by Key Minority” “ESG Special Training” and through diversified high-quality and efficient communication mechanisms. The Company regularly held results briefings and special topic meetings carried out

standards “Compliance Performance Training” with average training time reaching 9 hours per person. In 2025 no directors of the investor engagement activities and achieved efficient interaction through the routine channels of online platforms effectively safeguarding investors’ right to

Company were in breach of professional ethics or subject to regulatory penalties. know and right to participate and further strengthening the foundation of trust in the capital market.

69 702025 Sustainability Report

LANPEC’s Measures for Investor Communication and Relationship Management in 2025 Risk Management and Compliant Operations

Briefings Held 4 regular results briefings throughout the year and conducted four thematic collective investor communication activities

and meeting The Company is committed to deeply integrating compliance requirements into all aspects of business operations and management empowering high-quality

mechanisms systematically explaining the Company’s strategic layout operating results and industry development trends. business development through compliance. In line with actual development needs the Company continuously optimises and improves its compliance management

system to ensure that the conduct of the Company and its employees strictly complies with national laws and regulations industry standards and internal rules

and regulations.The Company strictly complies with the requirements of documents such as the Oversight Law of the People’s Republic of China the Audit Law of the People’s

Held the special “I Am a Shareholder”—Visiting Companies Listed in the Shanghai Stock Exchange together with China Galaxy Republic of China the Provisions of the National Audit Office on the Internal Audit and effectively fulfils the responsibility for law-based governance.Securities Co. Ltd. inviting investors to visit our production base and research and development centre on site enabling them

Investor to directly experience our operational strength and development potential.engagement Governance

activities The Company’s management conducted in-depth communication with investment institutions and industry researchers on

topics including industry research hotspots the Company’s core competitiveness and sustainable development practices The Company continuously improves and refines its internal control system enhances corporate decision-making efficiency and provides safeguards for

during the joint survey of investment institutions organised by “Listed Companies Tour”. the legality and compliance of business operations and management as well as the security of assets. The Company has formulated a series of institutional

documents including the Compliance Management Measures the Management Measures for Legal Dispute Cases the Management Measures for Major Legal

Dispute Cases and the Contract Management Measures to comprehensively enhance the level of law-based and compliant operation and consolidate the legal

foundation for the enterprise’s steady and long-term development. The Company’s internal control system has a sound structure and the framework of its internal

Established regular communication methods such as email telephone and online research meetings building a multi- control systems complies with the requirements of the Ministry of Finance the China Securities Regulatory Commission and other authorities regarding the

Online and dimensional highly responsive communication system. integrity reasonableness and effectiveness of internal control systems and is able to meet the needs of the Company’s management and development.routine

communication Through the “SSE e-Interaction” platform engaged and communicated with investors and provided timely and detailed The Company has established a clear and effective “three lines of defence” for compliance management namely the Company’s business departments compliance

channels responses to all types of questions raised by investors with the response rate for the year reaching 100% fully safeguarding department and senior management team. Meanwhile the Legal Affairs Department as the lead department for compliance management regularly assesses

investors’ right to know and right to participate. and updates compliance management documents to ensure that they remain aligned with the latest laws and regulations regulatory requirements and industry

practices. Managers at all levels and employees actively participate and work collaboratively to implement these measures jointly promoting the integration of

compliance requirements into daily operations and ensuring the effective operation of the compliance management system.At the same time based on our operational realities and business development needs we have established an ESG risk governance structure led by the Board of

“I Am a Shareholder” event—Visiting Companies Listed in the Shanghai Stock Exchange Directors with the Strategy and Sustainable Development Committee at its core to coordinate the identification assessment and management of environmental

social and governance-related risks.On 25 September 2025 the Company together with China Galaxy Securities Co. Ltd. jointly held the 2025 “I Am a Shareholder” event—Visiting Strategy

Companies Listed in the Shanghai Stock Exchange in Lanzhou. The Company and the investor representatives attending the event engaged in

in-depth exchanges on issues including the Company’s operating results in the first half of the year ESG development and the cultivation of Robust risk management and compliant operations are the foundation of an enterprise’s steady operation and social trust. If an enterprise neglects compliance

strategic emerging industries and highly recognised the achievements of various reform and innovation initiatives since last year. requirements or has weak risk prevention and control mechanisms during operations this may lead to legal disputes regulatory penalties and negative impacts on

the industry ecosystem; conversely integrating compliance principles into governance structures and daily operations can enhance transparency and credibility

This event was the Company’s largest investor engagement activity in recent years and attracted the highest number of participants fully

strengthen investor and customer confidence and contribute positively to building a fair honest and sustainable business environment.reflecting the strong expectations of small and medium-sized investors for the Company’s transformation and development.LANPEC’s Risks and Opportunities Analysis for “Risk Management and Compliant Operations”

Type Specific Description Timeframes of Impact Financial Impacts Response Strategies

As China’s regulatory requirements for various business * Establish a regular

activities continue to become more detailed and Increase in mechanism for

stringent failure to identify and implement the relevant Short medium and long operating costs regulatory tracking

Policy compliance risks

regulatory requirements in a timely manner may result in term and compliance Decrease in

administrative penalties or project restrictions affecting assessment.operating revenue

normal operations. * Embed

compliance

If the Company triggers compliance incidents or negative requirements

Liability and reputation public opinion during operations due to deficiencies in Decrease in into key business

Medium and long term

risk internal control or management this may damage the operating revenue processes and

brand reputation built up over the long term. decision-making

Investors Visit the Company processes.In the current market environment that emphasises high- * Conduct regular

quality development and compliant operations companies

Increase in compliance

Market opportunity with sound compliance systems are more likely to gain Medium and long term

operating revenue training and

recognition from partners and regulatory authorities warning education

thereby securing more cooperation opportunities. for all employees.

71 722025 Sustainability Report

Impacts Risks and Opportunities Management Anti-commercial Bribery and Anti-corruption

In light of industry characteristics and the actual conditions of the Company’s operations the Company has systematically established a standardised scientific

and well-regulated internal control and risk management system. This system starts with clearly defined risk management objectives delineates the scope and The Company strictly complies with the requirements of laws regulations and other regulatory requirements such as the Regulation of the Communist Party of

content of risk management and establishes the Company’s risk management strategy and culture. Through systematic identification of major and material risks China on Disciplinary Actions the Norms of Integrity and Self-discipline of the Communist Party of China the Oversight Law of the People’s Republic of China the

at the Company level targeted risk response strategies are formulated to enable forward-looking assessment and effective control of various uncertainties. Law of the People’s Republic of China on Administrative Discipline for Public Officials the Several Provisions for Probity Practice of Leaders of the State-owned

Enterprises and the Regulation on Disciplinary Actions Against the Managerial Professionals of State-owned Enterprises thereby strengthening the foundation for

In 2025 the Company focused on enhancing the compliance literacy and risk prevention and control capabilities of all employees. Through a combination of

anti-commercial bribery and anti-corruption management. In 2025 the Company had no incidents of corruption or embezzlement.online and offline approaches we systematically carried out multi-level and multi-dimensional thematic training and conducted risk internal control inspections

effectively promoting the integration of the compliance culture into daily operations and genuinely strengthening the ability to respond to a complex regulatory

environment and emerging risks. Governance

LANPEC’s Key Measures for Risk Management and Compliant Operations in 2025 The Company has formulated a series of supporting institutional regulations and standards including the Implementation Measures for the Responsibility System for Party

Conduct of LANPEC the Management Measures for the Governance of Commercial Bribery of LANPEC the Fifteen Prohibited Items of LANPEC for Implementing the Eight

Rules the Management Provisions of LANPEC on the Surrender of Gifts and Gift Money the Management Measures of LANPEC for the Reimbursement of Travel ExpensesProvided training programmes including “Compliance Performance Training for Directors Supervisors and Senior and Business Entertainment Expenses the Implementation Measures for the System of Integrity Talks and Reminder Talks by the Party Committee of LANPEC providing solidManagers” “Internal Control Risk Control and Compliance” and “Online Training on Safety Risk Prevention for Chinese institutional support for preventing benefit transfer and fostering a clean business environment.Compliance Employees of Central Enterprises Overseas (2025)”. The Company’s Party Committee conscientiously fulfils its overall leadership responsibility for improving Party conduct and combat corruption. The Party Committee

culture Attended the 2025 Legal Work Conference of Sinomach Group in April 2025 and learned excellent compliance management Secretary and Chairman serve as the first responsible persons while other members fulfil the “Dual Responsibilities for One Post”. The Company’s Discipline Inspection

development practices from outstanding enterprises within the group. Participated in the 14th “Sinomach Legal & Risk Control Lecture” Commission fulfils its supervisory responsibility and coordinates the advancement of the integrity governance system. At the beginning of the year a meeting on full andin December 2025 to deepen compliance awareness under the theme of “Strengthening Anti-monopoly Compliance and rigorous Party self-governance and Party conduct improvement was convened to set out the 2025 objectives and key tasks for Party conduct improvement ensuring thatServing High-quality Development”. The training sessions covered all employees of the Legal Affairs Department. anti-commercial bribery and anti-corruption requirements were deeply integrated into the Company’s strategic decision-making and daily operation and management.Strategy

Integrity in operation is the moral cornerstone of sustainable corporate development and an important safeguard for maintaining a fair market order and social

Risk internal Conducted routine supervision and inspections of operational risks and special inspections of risk management on trust. If engaged in commercial bribery or corruption in its business activities the Company may not only face legal sanctions and significant economic losses

control

inspection multiple occasions. but also damage the industrial ecosystem and harm public interests. Conversely by consistently adhering to the business philosophy of integrity compliance and

transparency the Company can foster a healthy cooperative environment and promote the building of a clean ecosystem throughout the industrial chain.LANPEC’s Risks and Opportunities Analysis for “Anti-commercial Bribery and Anti-corruption”

Type Specific Description Timeframes of Impact Financial Impacts Response Strategies

If the Company engages in commercial bribery

* Improve the anti-bribery

and corruption such as improper transfer of

Liability and reputation Decrease in and anti-corruption

LANPEC’s Risk Management and Compliant Operations Targets benefits it may trigger regulatory investigations Medium and long termIndicators and Targets risk operating revenue institutional system and Progress media exposure or termination of cooperation by and implement regular

customers.To systematically enhance the Company’s capabilities in risk prevention integrity reviews.China has continued to strengthen anti-

and control and compliance management the Company has set clear corruption supervision over state-owned * Establish confidential

quantifiable annual management targets. Through regular assessments enterprises and key industries. Failure to Increase in operating whistleblowing channels

dynamic monitoring and a closed-loop rectification mechanism the 2025 Quantitative Targets: Compliance training coverage rate: 100% effectively implement the relevant requirements Short medium and costs and encourage internal

Company continuously tracks the achievement of targets ensuring that Policy risk

Progress in 2025: Compliance training coverage rate: 100% may result in the Company being designated as a long term supervision and external

risk management and compliance requirements are deeply integrated into Decrease in key target of regulatory oversight affecting the feedback.strategic execution and daily operations and effectively safeguarding asset operating revenuecontinuation of qualifications or the approval of

security compliant operations and sustainable development. * Conduct regular major projects. integrity practice training

Achieved

and awareness education

More and more enterprises regard suppliers’

for all employees.integrity performance as an important criterion

for access and bid evaluation and companies Increase in operating * Sign integrity

Market opportunity Medium and long term

with sound anti-commercial bribery and anti- revenue agreements with

corruption mechanisms are more likely to obtain customers suppliers and

long-term strategic cooperation opportunities. other partners.

73 742025 Sustainability Report

Impacts Risks and Opportunities Management

The Company supports all stakeholders in putting forward suggestions or feedback LANPEC’s Public Reporting Channels

on ethical issues in the Company’s operations and has clearly established and

In 2025 the Company systematically advanced anti-commercial bribery and anti-corruption efforts. By strengthening responsibility for Party conduct and integrity Telephone: 021-51953538

publicly disclosed reporting channels in relevant policy documents such as

governance deepening education on integrity practice carrying out the “Honest Youth Talent Programme” and reinforcing joint integrity-building with suppliers we

Tendering and Procurement Management Measures while handling whistleblowing Email: lanpec-jb@lanpec.com. This email address is specifically used to

established an integrity risk prevention and control system covering all employees and promoting coordination fostering a clean and upright business environment.information under strict confidentiality. To effectively safeguard the legitimate receive all types of corruption-related whistleblowing information and

LANPEC’s Key Actions and Measures for Anti-commercial Bribery and Anti-corruption rights and interests of whistleblowers the Company has clearly established designated personnel from the Company’s Compliance Management

multiple policy provisions and is committed to ensuring fair treatment in terms of Department regularly monitor it to ensure that whistleblowing information

Strengthening The Company strengthened the institutional foundation for clean and honest conduct through organising the signing of the reporting channels and handling procedures as well as whistleblower protection. is handled promptly.accountability for Responsibility Letter for the Improvement of Party Conduct updating and improving integrity records for cadres and signing the It is explicitly stipulated that personnel responsible for handling reports must not Mailing addres: Discipline Inspection Commission Office Lanpec

Party conduct and

integrity governance Letter of Commitment to Integrity and distributing to all employees the Positive and Negative List on Implementing the Eight Rules

disclose whistleblower information in any form must not investigate whistleblowers Technologies Limited 505 Rongchang Road Lvxiang Town Jinshan District

distributed by Sinomach Group among other measures. without authorisation and must anonymise personal identity information of Shanghai

whistleblowers where necessary during the handling and outcome processes

In March 2025 the Company’s Discipline Inspection Commission held the 2025 integrity interview for newly appointed cadres. thereby effectively protecting their legitimate rights and interests.Strengthen

integrity In July 2025 under the theme of “Fasten the First Button of Life” the Company’s Discipline Inspection Commission provided integrity

education and compliance education for newly recruited employees in 2025. Indicators and Targets

Throughout the year the Company’s Discipline Inspection Commission Office edited and distributed 12 issues of the LANPEC

To continuously enhance integrity governance the Company has set management targets focused on anti-commercial bribery and anti-corruption and conducted

Discipline Inspection Bulletin for all cadres and employees to study.dynamic tracking and closed-loop management of the implementation of these targets through regular monitoring and special inspections with the aim of

In 2025 the LANPEC Culture System was officially released with the integrity philosophy specifically incorporated into its business

preventing corruption risks at the source.philosophy to build a clean and upright atmosphere with simplicity and progress.The Company assisted the Party Committee in carrying out education on thoroughly implementing the Eight Rules so as to ensure LANPEC’s Anti-commercial Bribery and Anti-corruption Targets and Progress

that strict rules and prohibitions were fully internalised.Conduct Integrity The Company organised a short video competition and received a total of 11 integrity-themed short videos. Targets: Anti-corruption training coverage rate for directors: 100% Targets: Anti-corruption training coverage rate for employees: 100%Promotion and The Company actively participated in the themed essay campaign “Forging the Sword of Work Style Raising the Sail of IntegrityEducation Month Building the Foundation of Clean Governance” organised by the Party Committee of Sinomach Group receiving a total of 11

activities submissions. Achieved Achieved

In June 2025 the Company organised 49 young cadres to visit Lanzhou Prison and Shanghai Jinshan District Detention Centre

respectively to carry out the “Experience the Scene and Be Alerted Abide by the Bottom Line of Integrity” warning education activity. Targets: Anti-corruption training coverage rate for departments: 100% Targets: Signing rate of the Integrity Cooperation Agreement: 100%

Implement

the “Honest Formulated a “Ten Ones” Action Plan

Achieved Achieved

Youth Talent In light of actual circumstances the Company formulated the LANPEC “Ten Ones” Action Plan covering the one Honest Youth TalentProgramme” file one Honest Youth Talent mentor one heart-to-heart talk one warning education activity one discipline training session one

integrity sharing session one integrity-themed video one group of Party conduct and integrity supervisors one themed activity and

one “Honest Youth Talent Medal” among other items. Anti-unfair Competition

Selected and appointed Party conduct and integrity supervisors The Company strictly complies with laws and regulations such as the Anti-Unfair Competition Law of the People’s Republic of China and has formulated LANPEC

To strengthen the role of public supervision the Company strictly selected eight young cadres from functional business scientific Commercial Secrets Management Provisions (Trial) and LANPEC High-Tech Commercial Secrets Catalogue (Second Batch of 13 Items) to protect the Company’s

research and frontline production positions and appointed them as the Company’s Party conduct and integrity supervisors giving commercial secrets and enhance market competitiveness. In 2025 the Company was not subject to penalties by the relevant authorities during operations due to

full play to their role as “probes” and “sentinels” and building an important bridge for the Party Committee and the Discipline unfair competition or violations of anti-trust and anti-monopoly laws.Inspection Commission to maintain close ties with employees.Published the list of Honest Youth Talent mentors To effectively prevent and respond to unfair competition and to protect the Company’s trade secrets and technological achievements the Company has formulated

The Company’s Discipline Inspection Commission established 61 “Honest Youth Talent files” selected and appointed 23 “Honest Youth and implemented a series of stringent confidentiality and management measures.Talent mentors” and issued the List of LANPEC’s Honest Youth Talent Mentors for 2025 and Job Responsibilities clarifying mentors’ Employees of the Company especially those engaged in scientific research and operations bear the obligation to maintain the confidentiality

responsibilities including conducting regular heart-to-heart talks and carrying out integrity education. of the Company’s trade secrets. In economic and technical activities such as business dealings research and development technology

Protection of

trade secrets transfer joint ventures and cooperation and changes in organisational form strict protection of the Company’s trade secrets is required. In

Conduct and operational the event of infringement it shall be promptly addressed through administrative or judicial channels.In 2025 the Company’s Discipline Inspection Commission organised and carried out self-inspection and self-rectification of

special informationissues involving violations of the Eight Rules on improving Party and government conduct as well as a special inspection and Materials such as the Company’s operational scientific research and production development plans and annual work plans shall be kept under

reports

comprehensive screening of violations of the Eight Rules. dedicated custody and borrowing procedures shall be handled in accordance with records management regulations.The Company’s patents technical achievements proprietary technologies and scientific and technical documents and materials are

Control of core

Co-construct The Company established a joint integrity-building mechanism with suppliers and contractors requiring all subordinate departments technologies and kept by the archives office and may be accessed on loan in accordance with the archives management regulations.supplier integrity and units to sign the Integrity Cooperation Agreement simultaneously when entering into procurement contracts. research and Relevant documents and materials concerning key process routes technical measures economic analysis indicators and other

development

matters in the feasibility study reports of the Company’s relevant projects are managed in accordance with the requirements for

achievements

scientific and technical archives and may be accessed on loan only upon approval.

75 762025 Sustainability Report

ESG Data Tables and Notes Climate Change Tacking Data Sheet

Disclosures Unit 2023 2024 2025

Environmental Data Scope 1 greenhouse gas emissions

1 tCO2e 4186.18 2728.28 3625.39

Scope 2 greenhouse gas emissions (location-based)2 tCO2e 5198.22 3457.05 4689.86

Environmental Compliance Management Data Sheet Scope 2 greenhouse gas emissions (market-based)

2 tCO2e —— 3013.19 4182.31

Total greenhouse gas emissions (Scope 1 + Scope 2) (location-based) tCO2e 9384.40 6185.33 8315.25

Greenhouse gas emissions intensity (Scope 1 + Scope 2) (per unit output value)

Disclosures Unit 2023 2024 2025 tCO2e/RMB10000 0.09 0.09 0.07(location-based)

Annual environmental protection investment expenditure1 RMB10000 295.11 475.27 283.42 Total greenhouse gas emissions (Scope 1 + Scope 2) (market-based) tCO2e —— 5741.47 7807.70

Number of incidents of penalties for violating environmental protection Greenhouse gas emissions intensity (Scope 1 + Scope 2) (per unit output value) (market-

cases 0 0 0 tCO2e/RMB10000 —— 0.08 0.07

laws and regulations based)

Amount of major administrative penalties imposed by ecological Note 1: Scope 1 greenhouse gas emissions are generated from the company’s consumption of diesel gasoline for official vehicles and natural gas. The greenhouse gas emission factors

and environmental and other relevant authorities for environmental RMB10000 0.00 0.00 0.00

incidents during the reporting period corresponding to diesel gasoline and natural gas are referenced from the China Energy Statistical Yearbook (2023) and the Guidelines for the Preparation of Provincial Greenhouse Gas

Inventories (Trial) (2011).Note 1: Investment in environmental protection facilities increased in 2024 leading to high environmental protection investment expenditure. Note 2: Scope 2 greenhouse gas emissions include those corresponding to purchased electricity. The CO2 emission factor for electricity in 2023 is 0.5703 tCO2e/MWh in accordance with

the Notice of the Ministry of Ecology and Environment on Relevant Work for the Administration of Greenhouse Gas Emission Reporting of Power Generation Enterprises from 2023 to 2025.Energy Usage Data Sheet In 2024 the Company consumed green electricity. The location-based and market-based greenhouse gas emission factors for purchased electricity adopted 0.5366 tCO2e/MWh (national

average grid emission factor of China) and 0.5856 tCO2e/MWh (excluding market-traded non-fossil energy electricity) respectively as specified in the Announcement of the Ministry of

Disclosures Unit 2023 2024 2025 Ecology and Environment and the National Bureau of Statistics on Issuing the 2022 Power CO2 Emission Factor. In 2025 the location-based and market-based greenhouse gas emission

factors for purchased electricity adopted 0.5306 tCO2e/MWh (national average grid emission factor of China) and 0.6096 tCO2e/MWh (excluding market-traded non-fossil energy electricity)

Diesel consumption1 L —— 9110.88 11870.59 respectively as specified in the Announcement of the Ministry of Ecology and Environment and the National Bureau of Statistics on Issuing the 2023 Power CO2 Emission Factor.Petrol consumption L —— 41258.47 37930.00 Usage of Water Resources Data Sheet

Natural gas consumption2 m3 1923796.00 1200693.00 1612991.00

Purchased electricity3 MWh 9114.88 6442.51 8838.79 Disclosures Unit 2023 2024 2025

Total water intake m3 94875.00 127785.60 107599.00

Purchased renewable electricity consumption MWh —— 1297.04 1978.05

Total discharge volume1 m3 85387.00 108044.46 90260.25

Direct energy consumption4 tce 2558.65 1653.14 2201.29 Total water consumption2 m3 9488.00 19741.14 17338.75

Indirect energy consumption5 tce 1121.02 792.35 1087.07 Water consumption intensity (per unit output value) 23 m3/RMB10000 0.09 0.28 0.16

Total energy consumption6 tce 3679.67 2445.49 3288.36 Note 1: Total discharge volume = Domestic sewage discharge volume.Energy use intensity (per unit output value)7 tce/RMB10000 0.03 0.03 0.03 Note 2: Total water consumption = total water intake ? total discharge volume. Owing to the increase in the Company’s product output in 2024 the 2024 data rose

significantly compared with 2023. In 2025 the Company effectively improved water resource utilization efficiency resulting in a decrease in the 2025 data compared

Renewable energy consumption8 tce —— 159.52 243.28 with 2024.Clean energy consumption9 tce 2558.65 1756.44 2388.55 Note 3: Calculation formula: Water consumption intensity = Total water consumption / Gross output value.Note 1: The Company began compiling diesel consumption data in 2024 as diesel is mainly used for forklifts. In 2025 the Company scaled up production and Pollutant Discharge Data Sheet

increased equipment utilization leading to a significant rise in diesel consumption compared with 2024.Note 2: The Company’s product output increased in 2025 resulting in a significant rise in natural gas consumption compared with 2024. Disclosures Unit 2023 2024 2025

Note 3: The Company’s product output increased in 2025 resulting in a significant rise in purchased electricity consumption compared with 2024. Nitrogen oxides (NOX) emissions in waste gas kg 4095.20 852.32 616.45

Note 4: Direct energy includes diesel gasoline for official vehicles and natural gas. The conversion coefficient to standard coal is based on GB/T 2589-2020 General Sulphur oxides (SOX) emissions in waste gas1

1 kg 4.10 92.98 356.86

Rules for Calculation of Comprehensive Energy Consumption.Particulate matter (PM) emissions in waste gas1 kg 32.50 41.02 414.27

Note 5: Indirect energy includes purchased electricity. The conversion coefficient to standard coal is based on GB/T 2589-2020 General Rules for Calculation of

Sulphur dioxide (SO2) emissions in waste gas

1 kg 4.10 92.98 356.86

Comprehensive Energy Consumption.Other waste gas pollutant emissions2 kg —— 47.80 152.06

Note 6: Total energy consumption = Direct energy consumption + Indirect energy consumption.Total waste gas emissions3 m3 —— 299610652.00 518161891.00

Note 7: Calculation formula: Energy use intensity = Total energy consumption / Gross output value.Waste gas emission intensity (per unit output value)4 m3/RMB10000 —— 4256.50 4658.98

Note 8: Renewable energy includes purchased green electricity. The conversion coefficient to standard coal is based on GB/T 2589-2020 General Rules for

Calculation of Comprehensive Energy Consumption. The Company began to compile statistics on renewable energy in purchased electricity in 2024. Note 1: In 2023 the Company calculated pollutant emissions using the pollution discharge coefficient method. Starting from 2024 pollutant emissions have been

Note 9: Clean energy includes purchased green electricity and natural gas. The conversion coefficient to standard coal is based on GB/T 2589-2020 General Rules calculated using the monitoring method. Due to the increase in the Company’s product output the 2025 data rose significantly compared with 2024.for Calculation of Comprehensive Energy Consumption. Note 2: Other waste gas pollutants mainly refer to volatile organic compounds (VOCs). Due to the increase in the Company’s product output the 2025 data rose

Note 10: “——” indicates that relevant data is not tracked by the Company. The same as below. significantly compared with 2024.Note 3: Due to the increase in the Company’s product output the 2025 data rose significantly compared with 2024.Note 4: Calculation formula: Waste gas emission intensity = Total waste gas emissions / Gross output value.

77 782025 Sustainability Report

Waste Disposal Data Sheet Safety and Quality of Products and Services Data Sheet

Disclosures Unit 2023 2024 2025 Disclosures Unit 2023 2024 2025

Total hazardous waste generated1 tonnes 40.42 70.34 247.88

Total number of complaints received regarding products and services cases 0 0 0

Hazardous waste intensity (per unit output value)12 kg/RMB10000 0.37 1.00 2.23

Total non-hazardous waste generated1 tonnes 1935.88 1084.62 3499.03 Amount involved in major liability accidents related to safety and quality of RMB10000 0 0 0

products and services occurred during the reporting period

Non-hazardous waste by source: Metals1 tonnes 1745.28 899.22 3286.49

Non-hazardous waste by source: Industrial Solid Waste (non-hazardous)1 tonnes 190.60 185.40 212.54

Non-hazardous waste intensity (per unit output value)3 tonnes/RMB10000 0.02 0.02 0.03 Data Security and Customer Privacy Protection Data Sheet

Note 1: The Company’s product output increased in 2025 resulting in a significant rise in the 2025 data compared with 2024.Disclosures Unit 2023 2024 2025

Note 2: Hazardous waste intensity = Total hazardous waste / Gross output value.Note 3: Non-hazardous waste intensity = Total non-hazardous waste / Gross output value.Amount involved in data security incidents RMB10000 0 0 0

Circular Economy Data Sheet Number of confirmed complaints regarding infringement of customers' privacy

cases 0 0 0

rights and loss of customers' data

Disclosures Unit 2023 2024 2025

Amount involved in customer privacy breach incidents RMB10000 0 0 0

Waste recycled1 tonnes 1745.28 899.22 3286.49

Note 1: The waste recycled and reused by the Company mainly consists of metals. As the Company’s product output increased in 2025 the 2025 data rose

significantly compared with 2024. Supply Chain Environmental and Social Risk Management Data Sheet

Disclosures Unit 2023 2024 2025

Social Data

Total number of suppliers1 suppliers 640 732 867

Innovation-driven Data Sheet

Number of suppliers in Chinese Mainland suppliers 637 730 862

Disclosures Unit 2023 2024 2025

R&D expenditure RMB10000 5778.29 5085.31 6002.15 Number of suppliers in Hong Kong Macao Taiwan and overseas suppliers 3 2 5

R&D expenditure as a percentage of revenue from the principal business % 5.23 7.83 6.05

Total number of new suppliers2 suppliers 15 92 135

Number of R&D personnel persons 177 151 216

Percentage of R&D personnel % 17.08 14.91 21.60 Number of suppliers assessed on environmental labor ethical and other aspects suppliers 15 92 135

Number of patent applications during the reporting period1 counts 42 26 40 Proportion of qualified suppliers assessed on environmental labor ethical and

3 % 100 100 100other aspects

Number of patents granted during the reporting period1 counts 57 40 25

Note 1: Calculation formula: Total number of suppliers = Number of suppliers in Chinese Mainland + Number of suppliers in Hong Kong Macao Taiwan and overseas.Number of valid patents at the end of the reporting period1 counts 252 285 281 Note 2: In 2024 most of the Company’s suppliers were project-based. A large number of new suppliers were added due to on-site project requirements and the

owner’s shortlist of suppliers coupled with the Company’s development of new suppliers. As a result the 2024 data increased significantly compared with 2023.Number of invention patents applied in the principal business counts 209 221 240 Note 3: Calculation formula: Proportion of qualified suppliers assessed on environmental labor ethical and other aspects = Number of qualified suppliers assessed

on environmental labor ethical and other aspects / Number of suppliers assessed on environmental labor ethical and other aspects × 100.Number of software copyrights registered during the reporting period counts 8 3 3

Total number of software copyrights registered counts 34 37 40

Note 1: Based on the principle of reporting accuracy retrospective adjustments have been made to the intellectual property-related data for 2023 and 2024.

79 802025 Sustainability Report

Employment and Labor Rights Data Sheet Occupational Health and Safety Data Sheet

Disclosures Unit 2023 2024 2025 Disclosures Unit 2023 2024 2025

Total number of employees persons 1036 1013 1000 Total investment in safety operations1 RMB10000 515.36 303.55 849.80

Female employees persons 237 226 217 Expenditure on employees’ work-related injury insurance RMB10000 55.27 45.04 63.71

By gender

Male employees persons 799 787 783 Employee coverage rate for work-related injury insurance2 % 100 100 100

Number of full-time employees under labor

persons 788 775 756

contract Proportion of employees receiving occupational health and safety training % 100 100 100

By employment type Number of full-time dispatched employees persons 222 232 241 Total duration of occupational health and safety training hours 9300 9200 8192

Number of re-employed retired employees persons 26 6 3 Average duration of occupational health and safety training per employee hours 8.98 9.08 8.19

Number of employees with a doctoral degree as

persons 4 3 5

their highest education Number of employees with occupational diseases persons 0 0 0

Number of employees with a master's degree as

persons 97 96 103 Number of safety incidents cases 0 0 0

By educational their highest education

background Number of employees with a bachelor's degree as

persons 307 308 299

their highest education Number of work-related injuries sessions 0 0 0

Number of employees with a college degree or

persons 628 606 593

lower as their highest education Number of employees injured at work persons 0 0 0

Employees aged under 30 persons 190 164 161 Number of employee deaths due to work-related injuries persons 0 0 0

By age Employees aged 30 to 50 persons 661 664 647 Note 1: In 2025 the company increased production resulting in a relatively large increase in total safety operation investment compared with 2024.Note 2: Calculation formula: Employee work-related injury insurance coverage rate = Number of employees covered by work-related injury insurance / Total

Employees aged above 50 persons 185 185 192 number of employees × 100.Total number of management employees persons 41 51 53

Female management employees persons 0 0 3

By management gender

Employee Training and Development Data Sheet

Male management employees persons 41 51 50

Proportion of female employees % 22.88 22.31 21.70 Disclosures Unit 2023 2024 2025

Proportion of ethnic minority employees % 1.45 1.48 1.50 Number of training implementation projects items 196 266 278

Employee turnover Rate1 % 5.79 4.94 3.70 Total expenditure on employee training RMB10000 84.50 86.10 67.62

Female employee turnover rate1 % 3.80 5.75 6.45 Number of employee training sessions sessions 10 9 12

By gender

Male employee turnover rate1 % 6.38 4.70 2.94 Employee training coverage rate

1%100100100

2

Number of labor disputes cases 0 0 0 Male employee training coverage rate % 100 100 100

Social insurance coverage rate % 100 100 100 Female employee training coverage rate % 100 100 100

Note 1: Calculation formula: Employee training coverage rate = number of employees receiving training/total number of employees × 100.Labor contract signing rate % 100 100 100

Note 2: Calculation formula: Male employee training coverage rate = Number of male employees trained / Number of male employees × 100.Note 3: Calculation formula: Female employee training coverage rate = Number of female employees trained / Number of female employees × 100.Note 1: Calculation formula: Employee turnover rate = Total number of employees who left / Total number of employees × 100. Female employee turnover rate =

Number of female employees who left / Number of female employees × 100. Male employee turnover rate = Number of male employees who left / Number of male

employees × 100.

81 822025 Sustainability Report

Contributions to the Society Data Sheet Corporate Governance Data Sheet

Disclosures Unit 2023 2024 2025 Disclosures Unit 2023 2024 2025

Number of Board of Directors members persons 8 9 9

Number of volunteer activities held sessions 12 5 4

Number of male directors persons 4 8 8

Total hours of employee volunteer services1 hours 480 118 124 Number of female directors persons 4 1 1

Proportion of female directors in the Board of Directors % 50.00 11.11 11.11

Number of employee participants in volunteer services1 persons 210 60 68

Number of executive directors persons 2 2 2

Number of non-executive directors persons 3 4 4

Amount of charitable donations RMB10000 18 15 15

Number of independent non-executive directors persons 3 3 3

Note 1: In 2023 the company’s volunteer services increased due to public health events resulting in relatively high data for that year. Number of shareholders’ meetings held sessions 3 3 3

Rural Revitalization Data Sheet Number of board meetings held sessions 7 7 6

Number of meetings held by special committees under the board of directors sessions 7 5 9

Disclosures Unit 2023 2024 2025 Number of ESG proposals reviewed by the board of directors cases 0 1 1

Amount invested in rural revitalization RMB10000 41.05 39.13 47.14

Anti-commercial Bribery and Anti-corruption Data Sheet

Number of beneficiaries of rural revitalization persons —— —— 2070

Disclosures Unit 2023 2024 2025

Number of anti-commercial bribery and anti-corruption training sessions held by the

sessions 3 5 5

Company for employees

Corporate Governance Data Number of directors who received anti-commercial bribery and anti-corruption training persons 8 9 9

Number of management employees who received anti-commercial bribery and anti-

Economic Performance Data Sheet persons 41 51 53corruption training

Number of employees receiving anti-commercial bribery and anti-corruption training persons 1036 1013 1000

Disclosures Unit 2023 2024 2025

Proportion of directors covered by anti-commercial bribery and anti-corruption training1 % 100 100 100

Operating revenue RMB10000 111538.94 67538.65 99233.46 Proportion of management employees covered by anti-commercial bribery and anti-

corruption training2

%100100100

Revenue from the principal business RMB10000 110431.39 64962.17 98081.95 Proportion of employees covered by anti-commercial bribery and anti-corruption training

3%100100100

Number of concluded corruption lawsuits filed against the issuer or its employees during the

cases 1 0 0

reporting period

Total tax payment RMB10000 6701.74 7760.21 5670.36

Note 1: Calculation formula: Percentage of directors covered by anti-commercial bribery and anti-corruption training = Number of directors who received anti-

Basic earnings per share RMB per share -0.39 -0.25 0.14 commercial bribery and anti-corruption training / Number of board members × 100.Note 2: Calculation formula: Percentage of management employees covered by anti-commercial bribery and anti-corruption training = Number of management

1 employees who received anti-commercial bribery and anti-corruption training / Number of management employees × 100.Social contribution value per share RMB per share 0.29 0.46 0.77

Note 3: Calculation formula: Percentage of employees covered by anti-commercial bribery and anti-corruption training = Number of employees who received anti-

commercial bribery and anti-corruption training / Total number of employees × 100.Note 1: Calculation formula: Social contribution value per share = Basic earnings per share + (Taxes contributed to the country during the year + Wages paid

to employees + Loan interest paid to creditors such as banks + Donations and other value generated for other stakeholders ? Other social costs caused by

environmental pollution etc.) / Total share capital at the end of the period. Anti-unfair Competition Data Sheet

Disclosures Unit 2023年 2024年 2025年Amount involved in litigation or major administrative penalties arising from the

RMB10000 0.00 0.00 0.00

Company’s unfair competition practices during the reporting period

83 842025 Sustainability Report

Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of Listed GRI Content Index

Companies—Sustainability Report (Trial) Index Table

Statement of Use LANPEC has reported in accordance with the GRI Standards for the period from 1 January 2025 to 31 December 2025.Dimension Topic Corresponding Sections of this Report Other Notes

Climate change tackling Climate Change Tackling GRI 1 Use GRI 1: Foundation 2021

Pollutant discharge Pollutant Discharge

GRI Standards Disclosures Sections

Waste disposal Waste Disposal

2-1 About This Report; Company Profile

Ecosystem and biodiversity

Ecosystem and Biodiversity Protection

protection

Environment 2-2 About This Report

Environmental compliance

Environmental Compliance Management

management 2-3 About This Report

Energy usage Energy Usage 2-4 About This Report

Water utilisation Water Utilisation 2-6 Company Profile

2-7 People-oriented Shared Value

Circular economy Circular Economy

2-8 People-oriented Shared Value

Rural revitalization Rural Revitalization

2-9 Corporate Governance

Contributions to the society Contributions to the Society

2-10 Corporate Governance

Innovation-driven Innovation-driven 2-11 Corporate Governance

The Company is not involved in scientific research technology development or other

2-12 Corporate Governance

Ethics of science and technology activities in areas sensitive to technology ethics. Therefore this topic is of low relevance

to the Company. 2-13 Corporate Governance

GRI 2: General Disclosures 2021

Supply chain security Supply Chain Security and Management

Social 2-14 Sustainability (ESG) Management

At the end of the reporting period the balance of the Company’s accounts payable

2-16 Sustainability (ESG) Management

Equal treatment to small and (including notes payable) did not exceed RMB30000000000 nor did it account for more

medium-sized enterprises than 50% of total assets. The Company did not owe any overdue payments to small and 2-17 Corporate Governance

medium-sized enterprises.Safety and quality of products and 2-18 Corporate Governance

Safety and Quality of Products and Services

services

2-19 Employee Rights and Benefits

Data security and customer privacy

Data Security and Customer Privacy Protection

protection 2-20 Employee Rights and Benefits

Employee Rights and Benefits Occupational Health and Safety Employee Training and

Employees

Development 2-22 The Letter from the Chairman

Due diligence Double Materiality Analysis Building on Green Foundations Thriving in Ecological Harmony; Innovation

2-26 Leadership Intelligently Creating the Future; People-oriented Shared Value;

Stakeholder communication Double Materiality Analysis Building on Standards to Ensure Steady and Sustainable Progress

Sustainability-related

Governance Anti-commercial bribery and Anti- Building on Green Foundations Thriving in Ecological Harmony; Innovation

Anti-commercial Bribery and Anti-corruption

corruption 2-27 Leadership Intelligently Creating the Future; People-oriented Shared Value;

Building on Standards to Ensure Steady and Sustainable Progress

Anti-unfair competition Anti-unfair Competition

2-29 Double Materiality Analysis

Industry development Industry Development 3-1 Double Materiality Analysis

Risk management and compliant

Self-selected Topics Risk Management and Compliant Operations GRI 3: Material Topics 2021 3-2 Double Materiality Analysis

operations

Corporate governance Corporate Governance 3-3 Double Materiality Analysis

85 862025 Sustainability Report

GRI Standards Disclosures Sections GRI Standards Disclosures Sections

101-1 Ecosystem and Biodiversity Protection GRI 306: Effluents and Waste 2016 306-3 Waste Disposal

GRI 101: Biodiversity 2024 101-2 Ecosystem and Biodiversity Protection 306-1 Waste Disposal

101-4 Ecosystem and Biodiversity Protection 306-2 Waste Disposal

102-1 Climate Change Tackling GRI 306: Waste 2020 306-3 Waste Disposal

102-2 Climate Change Tackling 306-4 Waste Disposal

102-4 Climate Change Tackling 306-5 ESG Data Tables and Notes

GRI 102: Climate Change 2025

102-5 ESG Data Tables and Notes GRI 308: Supplier Environmental Assessment 308-1 ESG Data Tables and Notes

102-6 ESG Data Tables and Notes 2016 308-2 Supply Chain Security and Management

102-8 Climate Change Tackling; ESG Data Tables and Notes 401-1 ESG Data Tables and Notes

103-1 Energy Usage GRI 401: Employment 2016 401-2 Employee Rights and Benefits

103-2 Energy Usage 401-3 Employee Rights and Benefits

GRI 103: Energy 2025

103-4 Energy Usage; ESG Data Tables and Notes 403-1 Occupational Health and Safety

103-5 Energy Usage; ESG Data Tables and Notes 403-2 Occupational Health and Safety

201-1 ESG Data Tables and Notes 403-3 Occupational Health and Safety

GRI 201: Economic Performance 2016 201-2 Climate Change Tackling 403-5 Occupational Health and Safety

GRI 403: Occupational Health and Safety 2018

201-3 Employee Rights and Benefits 403-6 Occupational Health and Safety

205-1 Anti-commercial Bribery and Anti-corruption 403-7 Occupational Health and Safety

GRI 205: Anti-corruption 2016 205-2 Anti-commercial Bribery and Anti-corruption 403-8 Occupational Health and Safety

205-3 Anti-commercial Bribery and Anti-corruption 403-10 Occupational Health and Safety

GRI 206: Anti-competitive Behaviour 2016 206-1 Anti-unfair Competition 404-1 Employee Training and Development

GRI 404: Training and Education 2016

301-1 Circular Economy 404-2 Employee Training and Development

GRI 301: Materials 2016

301-2 Circular Economy GRI 405: Diversity and Equal Opportunity 2016 405-1 Employee Rights and Benefits

302-1 Energy Usage; ESG Data Tables and Notes GRI 408: Child Labour 2016 408-1 Employee Rights and Benefits

GRI 302: Energy 2016

302-3 Energy Usage; ESG Data Tables and Notes GRI 409: Forced or Compulsory Labour 2016 409-1 Employee Rights and Benefits

303-1 Water Resource Management GRI 413: Local Communities 2016 413-1 Contributions to the Society

303-2 Water Resource Management 414-1 Supply Chain Security and Management

GRI 414: Supplier Social Assessment 2016

GRI 303: Water and Effluents 2018 303-3 ESG Data Tables and Notes 414-2 Supply Chain Security and Management

303-4 ESG Data Tables and Notes 416-1 Safety and Quality of Products and Services

GRI 416: Customer Health and Safety 2016

303-5 ESG Data Tables and Notes 416-2 Safety and Quality of Products and Services

305-1 ESG Data Tables and Notes GRI 418: Customer Privacy 2016 418-1 Data Security and Customer Privacy Protection

305-2 ESG Data Tables and Notes

305-4 Climate Change Tackling; ESG Data Tables and Notes

GRI 305: Emissions 2016

305-5 ESG Data Tables and Notes

305-6 ESG Data Tables and Notes

305-7 ESG Data Tables and Notes

87 88Lanpec Technologies Limited

0931-7639988/021-51219888

8 Lanke Road Anning District Lanzhou City Gansu Province

505 Rongchang Road Lvxiang Town Jinshan District Shanghai