聚合顺:JuheshunAdvancedMaterialsCo.,Ltd.Environmental,SocialandGovernanceReport2025

Stock Code

Environmental Social and

Governance Report

Juheshun Advanced Materials Co. Ltd.Juheshun Advanced Materials Co. Ltd.Address: No. 389 Wei 10th Road

Qiantang District Hangzhou

Tel: 0571-82955559

Website: http://www.jhspa6.com/CONTENTS

About This Report 04 01 Sustainable Governance: 03 Integration of R&D and People Orientation: Message from Chairman 06 Building a Solid Foundation Production: Strengthening 05 Fostering Shared Social About Juheshun 08 for Long-Term Development the Industrial Foundation Prosperity

Governance Framework for Sustainable 20 Scientific and Technological Innovation 40 Protection of Employees’ Rights and Interests 88

Development Product Quality and Safety 47 Training and Development 92

Sustainable Development Risk Management 21 Customer Service 53 Employee Communication and Care 94

Response to Sustainable Development Goals 22 Responsible Supply Chain 56 Occupational Health and Production Safety 96

Communications with Stakeholders 24 Information Security 62 Fulfilling Social Responsibility 108

Management of Material Topics 25

Appendix Robust Governance: Low Carbon for Green

Future Outlook 109 02 Strengthening Unity to Future: Painting a New Metric Index 110 Promote Development 04 Ecological Landscape

Key Performance Table 112

Feedback Form 121

Corporate Governance 28 Address Climate Change 66

Investor Relations Management 31 Resource Management and Recycling 69

Risk Management and Internal Control 33 Environmental Compliance Management 76

Commercial Ethics 35 Ecosystem and Biodiversity Conservation 85

Party Building Guidance 36

02 03Juheshun Advanced Materials Co. Ltd. About This Message from About Sustainable Governance: Robust Governance: Integration of R&D and Low Carbon for Green People Orientation:

Environmental Social and Governance Report 2025 Report Chairman Juheshun Building a Solid Foundation Strengthening Unity to Production: Strengthening Future: Painting a New Fostering Shared Appendixfor Long-Term Development Promote Development the Industrial Foundation Ecological Landscape Social Prosperity

About This Report

This report is the second Environmental Social and Governance Report (hereinafter referred to as “this report”) issued

by Juheshun Advanced Materials Co. Ltd. (hereinafter referred to as “Juheshun” “the Company” or “we”). Adhering

to the principles of objectivity standardization transparency and comprehensiveness this report provides a detailed

disclosure of the Company’s practices and performance in the areas of environmental protection social responsibility

and corporate governance during the year 2025. It aims to facilitate effective communication with stakeholders and

systematically respond to their expectations and requirements.Reporting Scope Confirmation and Approval

This report takes “Juheshun” as the main reporting entity and includes its subsidiaries. Unless otherwise specified the This report was reviewed and approved by the Company’s Board of Directors on April 15th 2026 and was subsequently

scope of this report is consistent with that of the Company’s annual report. released in conjunction with the Annual Report. The Company pledges to ensure that this report doesn’t contain any

false records misleading statements or material omissions and the Board of Directors is responsible for the authentic-

ity accuracy and completeness of this report.Reporting Period Access to This ReportThis report covers the period from January 1 2025 to December 31 2025 (hereinafter referred to as the “reporting pe- This report is published in electronic format. It is available on the Company’s official website (http://www.jhspa6.com)riod”). In order to enhance the comparability and completeness of the report some of the contents may appropriately and the Shanghai Stock Exchange website (http://www.sse.com.cn). If you have any questions or suggestions regard-

trace back to previous years or have certain forward-looking descriptions. ing this report please contact us by email at jhsdm@jhspa6.com or by telephone at +86-571-82955559. This report is

available in both Chinese and English. In the event of any discrepancy between the two versions the Chinese version

shall prevail.Preparation Basis

Definition

Self-Regulatory Guidelines for Listed Companies No. 14 - Sustainability Report (for Trial Implementation) issued by the

Shanghai Stock Exchange

ISO 26000: Guidance on Social Responsibility (2010) issued by the International Organization for Standardization (ISO) Definitions of common words

Sustainability Reporting Standards (“GRI Standards”) issued by the Global Reporting Initiative The Company we Juheshun refers to Juheshun Advanced Materials Co. Ltd.Guide to Corporate Sustainability Reporting in China(CASS-ESG 6.0) issued by the China Enterprise Reform and Develop-

ment Society Juheshun Special Special Materials refers to Hangzhou Juheshun Special Materials Technology Co. Ltd.Task Force on Climate-related Financial Disclosures (TCFD) Framework Juheshun Luhua refers to Shandong Juheshun Luhua New Materials Co. Ltd.UN Sustainable Development Goals (SDGs)

Sustainability Accounting Standards Board (SASB) Standards Shandong Juheshun refers to Shandong Juheshun New Materials Co. Ltd.Changde Juheshun refers to Changde Juheshun New Materials Co. Ltd.Lunan Chemicals refers to Yankuang Lunan Chemicals Co. Ltd.Data Explanation Yongchang Holdings refers to Wenzhou Yongchang Holding Co. Ltd. (controlling shareholder)

Polyamide-6 refers to PA6 (nylon 6)

All information and data cited in this report is from the official internal documents statistical reports and financial re- Polyamide-66 refers to PA66 (nylon 66)

ports of Juheshun and the data disclosed in this report is from the original data of the actual operation of Juheshun

public data of government departments annual financial data internal applicable statistical statements third-party

questionnaires third-party assessment interviews etc.This report doesn’t contain any false records misleading statements or material omissions. Unless otherwise specified

all amounts in this report are expressed in RMB.

04 05Juheshun Advanced Materials Co. Ltd. About This Message from About Sustainable Governance: Robust Governance: Integration of R&D and Low Carbon for Green People Orientation:

Message from Chairman

Upholding Integrity and Innovating Anchoring the Industry Value Coordinates

“The wise adapt to the times; the knowledgeable respond to circumstances.” We have always remained committed

to our core business of polyamide new materials. While consolidating our leading position in the domestic market we

embrace globalization with an increasingly open mindset. By deepening collaboration across the industrial chain we

continuously enhance the core competitiveness and market reputation of our products striving to establish Juheshun as

a globally trusted brand in new materials. We firmly believe that only by deeply integrating industry expertise with value

creation can we secure a strong foothold amid changing times and achieve sustainable long-term development.Relentless Pursuit Activating the Engine of Innovation

“Only innovators advance; only innovators thrive.” We continue to increase our investment in research and develop-

ment and deepen industry–academia–research collaborations focusing on technological breakthroughs and market

applications for products such as nylon 66. Guided by a craftsman’s spirit of excellence we refine every product while

our open and inclusive innovation ecosystem brings together collective intelligence continuously meeting the demand

of downstream industries for high-performance and differentiated materials. We recognize that innovation is the inex-

haustible driving force behind corporate development; only through continuous breakthroughs can we lead the future

of the industry.Mutual Growth Building a Collaborative Social Ecosystem

"If you want to go fast go alone; if you want to go far go together." We actively implement the concept of a responsible

supply chain promoting collaborative development with upstream and downstream partners in the field of sustainable

development and jointly building a green safe and accountable industrial ecosystem. At the same time with grati-

tude in our hearts we actively engage in social welfare initiatives giving back to society through concrete actions and

fulfilling our responsibilities as a corporate citizen. We believe that a company’s value lies not only in creating economic

wealth but also in contributing to societal progress.Green Empowerment Mapping a Low-Carbon Development Blueprint

“Lucid waters and lush mountains are invaluable assets.” We integrate the concept of green development throughout

our entire production and operation process continuously promoting energy conservation consumption reduction and

the application of circular utilization technologies striving to lower energy consumption and carbon emissions per unit

of product. Our production bases actively explore the use of clean energy sources such as photovoltaics and energy

storage accelerating the transition to low-carbon and zero-carbon production models. Through concrete actions we

are committed to protecting the ecological environment and contributing Juheshun’s green strength toward achieving

China’s “dual carbon” goals.To all partners: Intelligent Leadership Opening a New Chapter in Lean Management

“To do a good job one must first sharpen one’s tools.” We are accelerating the promotion of digitalization to

As the seasons change and new chapters unfold I would like on behalf of Juheshun to extend my empower decision-making management and leveraging technologies such as big data intelligence and lean

sincerest gratitude to all partners who have long cared for and supported the Company’s develop- production processes to enhance management efficiency. Through digital empowerment we achieve precise

ment. In 2025 we remained steadfast amidst the tides of industrial transformation anchoring our- control and efficient coordination across the entire production process injecting new momentum into the Com-

selves in sustainable development. We continued to advance on the path of green transformation pany’s high-quality development and setting an industry benchmark in intelligent manufacturing.technological innovation and social responsibility striving to create greater value for our stakehold-

ers and presenting to all parties our accountability and achievements for the year. As we embark on a new journey the mission rests on our shoulders. Juheshun will continue to uphold our orig-

inal commitment: creating value for stakeholders reducing environmental burden and contributing to social

well-being. With greater determination and pragmatic action we will forge ahead on the path of sustainable de-

velopment. We will continue to deepen our core business pursue relentless innovation and advance green de-

velopment working hand in hand with partners across all sectors to write a new chapter of high-quality growth

for Juheshun and make an even greater contribution to the rise of China’s new materials industry.

06 07Juheshun Advanced Materials Co. Ltd. About This Message from About Sustainable Governance: Robust Governance: Integration of R&D and Low Carbon for Green People Orientation:

About Juheshun

Fiber grade chips

Company Profile Main applications：Applicable to the production of civil spinning and

industrial spinning materials.Juheshun Advanced Materials Co. Ltd. was established on November 1 2013 with its headquarters located in Qiantang Product features：High spinnability high strength high dyeing

District Hangzhou Zhejiang. The Company is a national high-tech enterprise and a national specialized refined differ- including J2403F J2400F J2416F and other different models.ential and innovative “Little Giant” enterprise integrating R&D production and sales of polyamide-6 (nylon 6) chips.The Company’s core products are polyamide-6 chips (nylon chips) covering fiber-grade engineering plastic-grade

film-grade and specialty nylon categories. Its differentiated chip products are widely applied in textiles and apparel

automotive components electronics and electrical appliances and food and medical packaging. Leveraging regional Engineering plastic grade chips

advantages for extending and complementing the industrial chain and being located near adiponitrile raw material

sources the Company actively develops the PA66 and other high-value-added nylon new materials sector. On June 18th Main applications：Applicable to the modification of nylon composite

2020 the Company successfully went public on the Main Board of the Shanghai Stock Exchange (stock code: 605166). materials the direct injection molding of engineering plastics and

With four major production bases in Hangzhou (Zhejiang) Zaozhuang (Shandong) Changde (Hunan) and Zibo (Shan- the production of various high-load mechanical parts electronic and

dong) combined with technological and R&D strengths Juheshun has become a leading enterprise in domestic indus- electrical switches and equipment.try with polyamide-6 chips at its core.Product features：High strength high toughness anti-aging high

Products and Services impact resistance and wear resistance including J2000 J2400 J2500Z

J2700 J2800 and other different models.Juheshun centers its operations on polyamide-6 (PA6) chips. As a midstream core intermediary in the nylon industry

chain the Company effectively connects upstream chemical raw materials such as caprolactam with diversified down-

stream applications in textiles automotive electronics and electrical appliances packaging and new energy sectors. Film grade chips

At the same time the Company actively develops the high-value-added nylon new materials sector including polyam-

ide-66 (PA66) forming a product matrix based on PA6 and extended into PA66. This enables downstream industries to Main applications：Applicable to produce edible/medical packaging

achieve green upgrading low-carbon transformation and enhanced product performance with cost-effectiveness. film automotive lithium battery film

Upstream raw Company’s core

material industries business areas Key downstream application areas Product features：High bidirectional tensile high strength high

barrier and high transparency including J2800F J3200M J4001M and

Consumer products: clothing fabrics other different models.socks bags awning cloth umbrellas

Nylon fiber ropes etc.Petrochemical and Industrial products: tire cords seat

coal chemical belts industrial felt fishing nets etc.industries Special nylon

Widely used in automotive electron- Main applications：Widely used in automotive communications Benzene toluene Polyamide-6 (PA6) Engineering

phenol chips plastics ics transportation and machinery machinery electronic appliances aerospace sports products

sectors industrial and medical fields.Product features：High temperature resistance low water absorption

Caprolactam (CPL) Packaging films widely applied in low temperature resistance stable size good toughness wear-

Film food chemical products pharmaceu-

products ticals and mechanical and electronic resistant & shock absorption high rebound light weight.product packaging

Company Product Ecosystem Four Core Product Categories

08 09Juheshun Advanced Materials Co. Ltd. About This Message from About Sustainable Governance: Robust Governance: Integration of R&D and Low Carbon for Green People Orientation:

Market layout

Germany

From import substitution to

External supply Italy

Japan

China South Korea

Juheshun’s sales and business network pri-

marily covers the domestic market with a Dubai India

year-on-year increase of 41% in overseas

business revenue in 2025.The Company has Vietnam

established a comprehensive supply chain

and marketing system supported by a ma-

ture customer management framework.Domestically the marketing network is cen-

tered in Hangzhou closely connecting the Peru

East China region and extending to North Brazil

China South China and Central China ef-

fectively achieving full coverage across the

Greater China market. At the same time

we place strong emphasis on and actively Australia

advance our overseas market presence and

share. The Company’s core products are ex-

ported to Europe South America Oceania Argentina

and Southeast Asia forming a dual-cyclemarket layout of “deep domestic cultiva-tion and global expansion.” This structure

efficiently meets the diversified downstream

application demands of the textile automo- Global sales layout

tive electronics and new energy sectors.

10 11Juheshun Advanced Materials Co. Ltd. About This Message from About Sustainable Governance: Robust Governance: Integration of R&D and Low Carbon for Green People Orientation:

Development History 2025

In March the Company was re-

named as Juheshun Advanced

Materials Co. Ltd.In August CNCEC approved its

2023 wholly-owned subsidiary China

In May the Juheshun Luhua Tianchen to acquire a 35% stake in

annual output of 400000 Shandong Juheshun and increase

tons of polyamide-6 project the capital through its holding

2021 (Phase II) commenced subsidiary Tianchen Qixiang

In December the poly- In October the Board of Supervi-

amide-6 chip produc- In October the Changde sors was abolished and the Arti-

2020 tion capacity reached Juheshun annual output of cles of Association was revised

260000 tons 92000 tons of polyamide-6

In June it was listed on the project commenced

Shanghai Stock Exchange

2016 with stock code 605166

In March the Company com- In December Shandong

pleted shareholding reform Juheshun Luhua New Ma-

and was officially renamed terials Co. Ltd. Shandong

as Hangzhou Juheshun Ad- Juheshun New Materials

2015 vanced Materials Co. Ltd. Co. Ltd. Changde Juhe-

shun New Materials Co.In May the 80000- In December the Company Ltd. were established

ton polyamide-6 was recognized as a nation-

chip project at the al high-tech enterprise

Hangzhou head-

quarters success- 2024

fully commenced In April the Shandong Juheshun annual out-

production put of 80000 tons of polyamide-66 (nylon

66) project commenced

2022 In May the Changde Juheshun annual output of 92000 tons of polyamide-6 (nylon 6) pro-

In October the 180000 ject was successfully capped

tons in Phase I of JuheshunLuhua “annual output of In August the Shandong Juheshun annual

400000 tons of polyam- output of 80000 tons of polyamide-66 (nylon

2019 ide-6 chips project” was 66) project was successfully capped

successfully put into opera-

In May the polyamide-6 chip produc- tion In October the Juheshun Luhua annual out-

tion capacity reached 160000 tons put of 400000 tons of polyamide-6 project

In December it was rec- (Phase II) was successfully fed and commis-

2013 In September the provincial-level ognized as “Specialized sionedpostdoctoral research station was ap- Refined Differential andIn November the proved Innovative Small and Me-

Company was in- In November the Hangzhou Juheshun po-dium-sized Enterprise incorporated lymerization workshop No. 3 of nylon new In November Hangzhou Juheshun Zhejiang Province” and material project was successfully cappedSpecial Materials Technology Co. Zhejiang “Provincial Enter-Ltd. was established which mainly prise Research Institute”

researched and developed special

nylon products

12 13Juheshun Advanced Materials Co. Ltd. About This Message from About Sustainable Governance: Robust Governance: Integration of R&D and Low Carbon for Green People Orientation:

Corporate Culture Corporate Honors

Corporate vision Corporate mission Corporate spirit

Become a first-class polyamide Strive for international brand Harmonious diligent pragmatic

new material solution provider achieve industrial power innovative

Economy and Information Technolo- Economy and Information Technolo- Relevant Zhejiang Certification

gy Department of Zhejiang Province gy Department of Zhejiang Province Authority“Specialized RefinedInnovative Small and Differential andMedium-sized Enterprise Innovative” Small and High-tech Enterprise of

in Zhejiang Medium-sized Enterprise Zhejiang Province

of Zhejiang Province

Business philosophy Corporate core values Corporate culture concept

Create value for customers seek

development for employees; Integrity and law-abiding qual- People-oriented fine manage-

create profits for shareholders ity first focus on performance ment; take factory as home

take responsibility for society constant innovation share the benefits

Hangzhou Municipal Bureau of Econ- Zhejiang Enterprise Confederation Zhejiang Entrepreneurs

omy and Information Technology Association Zhejiang Federation of Industrial Economics

Top 100 Fastest-Growing

2025 Hangzhou Enterprise Enterprises of Zhejiang

Technology Center Province in 2025

(Ranked 55th)

Work style Learning concept Quality policy

Rigorous pragmatic Diligent in learning good at People-oriented quality first;

collaborative efficient communication and make customer respect sincere and progress a little bit every day trustworthy

Environmental policy Marketing concept

Zaozhuang Enterprise Confederation Zaozhuang Enterprise Confederation Zaozhuang City Industrial and Infor-

Low carbon energy saving mation Technology Bureaucomply with regulations; Customer first sincere service; “One Enterprise Oneprotect the environment work together win-win

Top 100 Industrial Top 100 ComprehensiveEnterprises of Zaozhuang Enterprises of Zaozhuang Technology” R&D Center

constant improvement cooperation in 2024 in 2024 Enterprise of Zaozhuang in 2025

14 15Juheshun Advanced Materials Co. Ltd. About This Message from About Sustainable Governance: Robust Governance: Integration of R&D and Low Carbon for Green People Orientation:

Performance in 2025

Economic Performance Social Performance

Number of employee Average training hours

Total operating income Net profit Total number of employees training sessions per employee Investment in work safety

RMB 5523.6644 million RMB 163.7646 million 688 persons 1134 sessions 39.18 hours/person RMB 3.1912 million

Customer complaint

Net profit attributable to shareholders of the listed company Total assets Investment in R&D Product percent of pass resolution rate Customer satisfaction

RMB 144.8443 million RMB 5696.6861 million RMB 167.8235 million 99.84% 100% 96%

Environmental Performance Governance Performance

Environmental investment Total participants of Total GHG emissions Waste disposal environmental training compliance rate

11.4963 699 156080.27 100% Number of General Meeting Number of meetings of Shareholders convened of Board of Directors convened Number of compliance trainingsRMB million participants tCO2e 7 times 12 times 4 times

Wastewater recovery and utilization rate Total water consumption Electricity consumption

12325 tons 63914753 tons 115197909 kWh

Number of information Number of investor inquiries

disclosure announcements responded to via e-interaction platform

Photovoltaic power capacity Electricity cost savings from photovoltaic power generation Total energy consumption

8355419.60 5.381 52159.87 125 announcements 116 times kWh RMB million tce

161701

Sustainable Governance:

Building a Solid

Foundation for

Long-Term

Development

Juheshun consistently regards sustainable development as a

core strategy for achieving high-quality corporate growth. It has

been deeply integrated into the Company’s corporate govern-

ance strategic planning and the entire process of production

and operations. By actively collaborating with upstream and

downstream partners across the industrial chain as well as var-

ious stakeholders the Company strengthens the foundation for

sustainable development through a well-structured governance

system promoting the coordinated advancement of economic

environmental and social benefits while empowering the green

and low-carbon transformation of the new materials industry.Contents of This Section

Governance Framework for Communications with

Sustainable Development Stakeholders

Sustainable Development Analysis of Materiality

Risk Management Issues

Response to Sustainable

Development Goals

18 19Juheshun Advanced Materials Co. Ltd. About This Message from About Sustainable Governance: Robust Governance: Integration of R&D and Low Carbon for Green People Orientation:

Governance Framework for Sustainable To further promote the achievement of sustainable development goals the Company is gradually establishing an ESG as-sessment system aligned with its business development. Key ESG performance metrics—such as energy consumption per

Development unit of output value environmental compliance rate work safety incident rate employee training coverage rate and supplier compliance rate—have been identified and are being progressively incorporated into the performance evaluation system for

management and employees in key positions encouraging departments and employees to actively fulfill their sustainable

The Company consistently places sustainable development at a prominent position and continues to advance the develop- development responsibilities. Looking ahead the Company will further define corresponding assessment targets and re-

ment of its ESG management system in accordance with the sustainability guidelines of the stock exchange and other relevant ward-and-penalty mechanisms systematically establishing a governance framework characterized by effective supervisionrequirements. In 2025 the Company established a sustainable development governance framework characterized by “overall and robust performance evaluation measures.coordination and decision-making by the Board of Directors implementation by the management team coordinated collabo- At the same time the Company places emphasis on building a professional talent pool for sustainable development. By ac-ration among various departments and participation by all employees.” The Company also formulated the Rules of Procedure tively organizing specialized training on ESG policy interpretation environmental protection technologies and related topics

for the Strategic and Sustainable Development Committee under Board of Directors deeply integrating ESG principles into the Company continuously enhances employees’ ESG awareness and capabilities.corporate governance operational decision-making and daily operations. Through a sound institutional structure efficient

information mechanisms rigorous supervision and assessment the scientific integration of decision-making processes and

the enhancement of professional capabilities the Company promotes the effective implementation of its sustainable develop- Case ESG Training Review

ment strategy.The Company engaged external experts to conduct ESG training for the management team and various departments.The training covered topics such as the latest ESG development trends and interpretation of ESG-related policies. This

Convened by the Chairman; composed of members of the session enhanced the understanding of ESG among the management and departmental teams improving the profes-

Board of Directors sional capabilities and expertise of the Company’s functional departments and management personnel.Responsible for making decisions on major matters re-

lated to the Company’s sustainable development and

Board of reviewing the Company’s annual sustainability report.Decision-making

level Directors

Responsible for researching and formulating the Com-

pany’s sustainable development strategies and policies;

Strategic and studying and providing recommendations on the Compa-

Sustainable Devel- ny’s long-term development strategies major investment

opment Committee decisions and sustainability and ESG-related policies; reporting to and being accountable to the Board of Direc-

tors.Securities Department and management teams of each de-

Management partment

level ESG Working Group Responsible for coordinating the daily ESG-related work and preparing preliminary materials for decision-making

in accordance with the requirements of the Strategic and

Sustainable Development Committee under the Board

of Directors; collecting ESG-related information and re-

searching material issues.Designated contacts from functional departments and sub-

Execution sidiaries

level Functional Departments Responsible for fulfilling sustainable development-related

and Subsidiaries duties in accordance with the Company’s overall plan im- Sustainable Development Risk Managementplementing ESG-related tasks regularly reporting on im-

plementation progress and carrying out ESG report data The Company places great importance on sustainable development risk management establishing a risk management pro-collection preparation and disclosure. cess of “risk identification → risk assessment and grading → prevention and control implementation → monitoring and review→ optimization and improvement.” For risks of different levels the Company develops specialized prevention and control

plans defines specific control measures and execution milestones regularly tracks the progress of risk mitigation and dynam-

The Company has established a sustainable development information reporting mechanism to ensure the authenticity ac- ically updates risk levels and control strategies continuously enhancing its capacity to respond to risks.curacy and completeness of information. At the internal level an information collection process of “regular departmental Since the disclosure of its ESG reports the Company has regularly conducted ESG risk identification and assessment. Consid-reporting—review by the responsible department—deliberation by management” has been established. Each production base ering industry characteristics and actual production and operational conditions the Company evaluates the materiality of ESG

and business department regularly reports performance data such as energy consumption pollutant emissions employee topics through internal audits cross-departmental reviews and external benchmarking systematically identifying potential

training and the fulfillment of social responsibilities. These data are consolidated and analyzed by the designated ESG man- risks for each topic and creating a risk and opportunity register. This register specifies risk levels impact scope and time-

agement department forming special reports to support the Board of Directors’ decision-making. At the external level the frames and outlines corresponding mitigation measures. During the reporting period the key sustainable development risks

Company strictly complies with regulatory requirements and regularly publishes Environmental Social and Governance (ESG) managed by the Company included but were not limited to environmental compliance risks occupational health and safety

reports proactively disclosing its sustainable development practices and achievements to stakeholders including investors risks climate change transition risks and product safety and quality risks with detailed information provided in the relevant

customers suppliers and communities thereby enhancing the transparency of sustainability information. sections.

20 21Juheshun Advanced Materials Co. Ltd. About This Message from About Sustainable Governance: Robust Governance: Integration of R&D and Low Carbon for Green People Orientation:

Response to Sustainable Development Goals

SDGs Action Plan Achievements SDGs Action Plan Achievements

Leverage the four major production bases to The Hangzhou Shandong and Hunan bases

Implement fair employment and compensa-

created additional employment opportunities tion systems support small and medium-sized

In 2025 no labor inequality disputes occurred;

drive local employment engage in community enterprises in the supply chain and leverage supply chain support initiatives were imple-

building and public welfare support and con- across multiple regions; implemented agricul- industrial advantages to promote regional in- mented and industrial resource sharing and tural assistance projects to help increase farm- coordinated development across production

tribute to local poverty alleviation. ers’ income. dustrial coordination at production bases nar-rowing development gaps. bases were significantly enhanced.Develop and produce food-contact grade film Film-grade pellets were stably supplied to Practice green production principles strictly In 2025 all production bases met environmen-

nylon pellets strictly controlling product safety the food packaging sector with all products control production pollution and carry out com- tal discharge standards; community welfare

standards to ensure the safety of food packag- meeting national food-contact material safety munity welfare and environmental co-construc- activities were conducted without causing en-

ing processes. standards. tion activities around plant areas. vironmental impact to surrounding areas.Implement occupational health management In 2025 100% of employees underwent oc- Promote lean production continuously reduce In 2025 energy consumption per unit of prod-

conduct regular health check-ups for all em- cupational health check-ups; health protec- energy consumption per unit of product im- uct continued to decrease aiming for the low-

ployees provide workplace safety protection tion training for special operations personnel plement recycling of production resources and est level in the industry; the recycling rate of

and deliver emergency health training. achieved a 100% pass rate. optimize full product lifecycle management. production resources increased year-on-year.Collaborate with universities to build R&D plat- Implement energy-saving technological up- Energy-saving upgrades were completed at

forms for nylon technology; establish a tiered Strengthened industry-academia-research each base; photovoltaic projects were put into

and categorized employee skills training sys- collaboration; in 2025 employee annual skills

grades in production processes construct clean

and safety training coverage reached 100%. energy projects and control carbon emission

operation to support carbon reduction result-

ing in a decrease in production carbon emis-

tem. intensity during production. sion intensity compared to the previous year.Implement anti-discrimination employment In 2025 no gender discrimination-related Strictly control production wastewater and solid In 2025 all production wastewater was treat-

policies ensuring equal rights for male and fe- labor disputes occurred; female employees waste discharge and establish water pollution ed and discharged in compliance with regu-

male employees in recruitment promotion and were evenly distributed across positions with prevention mechanisms to avoid impacts of lations with no ecological damage to nearby

compensation. a fair promotion mechanism in place. production activities on aquatic ecosystems. rivers lakes or other water bodies.Optimize water usage processes in production In 2025 all production bases achieved compli- Standardize industrial solid waste classification In 2025 waste was disposed of or recycled in

promote compliant treatment of production ant wastewater discharge; some bases real-

wastewater and implement water recycling ized recycling of production water resulting in

disposal and recycling; carry out site greening compliance with regulations; site greening

a year-on-year reduction in water consump- to protect the terrestrial ecological environment coverage increased and surrounding terrestri-

technology upgrades. tion. around production bases. al ecosystems were well protected.Deploy photovoltaic and energy storage pow- In 2025 all photovoltaic power stations at pro- Improve the governance system of the listed In 2025 operations were fully compliant with

er stations across production bases gradually duction bases were operational; the share of

increasing the proportion of clean energy use green electricity increased year-on-year con-

company operate in compliance with laws pro- no violations; the rights of minority investors

tinuously optimizing the energy structure for tect the rights of minority shareholders and es- were safeguarded and no internal manage-

and reducing reliance on conventional energy. production. tablish a fair internal management mechanism. ment disputes occurred.Protect employees’ legal rights and improve In 2025 net profit attributable to shareholders Deepen industry-academia-research collabora- In 2025 overseas market expansion achieved

compensation and benefits systems; promote was RMB 144.8443 million overseas sales rev- tion promote coordination along the industrial

capacity expansion and high-end product de- enue grew 41%; 100% of employees had labor chain expand overseas market cooperation significant results and stable sustainable

velopment expanding domestic and overseas contracts and received reasonable compensa- and engage stakeholders to drive joint devel- partnerships were established with core sup-

markets to drive revenue growth. tion. opment. pliers.Develop high-end polyamide-66 (nylon 66) The Zibo polyamide-66 (nylon 66) project pro-

product lines upgrade production facilities at gressed steadily; high-end products from the

bases and research high-value-added nylon Hangzhou base received unanimous customer recognition and production facilities at all four

new materials. bases were continuously optimized.

22 23Juheshun Advanced Materials Co. Ltd. About This Message from About Sustainable Governance: Robust Governance: Integration of R&D and Low Carbon for Green People Orientation:

Communications with Stakeholders Management of Material Topics

Juheshun places great importance on stakeholder communication and co-creation of value. Focusing on shareholders Juheshun places great emphasis on the management of material topics in sustainable development. During the report-

investors customers suppliers employees government authorities and communities the Company has established ing period the Company referred to the Shanghai Stock Exchange Self-Regulatory Guidelines for Listed Companies No.multi-dimensional and regular communication channels to fully listen to the needs of all parties promote coordinated 14 - Sustainability Report (for Trial Implementation) and international disclosure standards such as the GRI Standards.development among stakeholders and consolidate collective efforts for the sustainable development of the enterprise. By incorporating both impact materiality and financial materiality perspectives the Company identified substantive

topics assessed their significance and developed the 2025 Materiality Matrix.Stakeholder

Category Demands and Expectations Communication Channels Countermeasures

Assessment Process of Material Topics

Government inspection Referring to the Exchange Guidelines the Global Reporting Initiative (GRI) the United Nations Sustaina-

National strategic response Compliance inspection Compliant operation Topic ble Development Goals (SDGs) and best practices from domestic and international peers in the industry

Compliance operation Regular meeting Improve corporate governance identifica- the Company conducted the identification and screening of material topics based on its own business

communication tion and operational characteristics and expert opinions. Fully considering the needs and expectations of Risk management Participate in government structure stakeholders 30 sustainability topics of significant importance or impact to the Company and its stake-Government and Commercial ethics cooperation exchange and regulatory agencies Respond to national policies

holders were determined.discussion activities

Stable return on investment

Transparent information Regular reports and interim Enhance operational capability

disclosure announcements Strengthen risk management

Impact The potential impacts of each topic on the external environment society and economy were analyzed.Compliance operation General meeting of shareholders Disclose information publicly

materiali-

ty analysis Experts assessed the degree of impact taking into account stakeholder communication and feedback.Risk management Performance presentation Continuously innovate and

Shareholders/ Intellectual property protection Investor hotline conduct R&D

investors Scientific and technological Corporate survey Actively provide shareholder

innovation returns

Product quality and safety Strengthen product quality Conduct The Company assessed financial materiality based on short-term (0-1 year) medium-term (1-5 years)

Customer service Customer communication and control financial and long-term (over 5 years) timeframes. Focusing on the risks and opportunities associated with each

Responsible business and cooperation Continuously innovate and materiali- topic potential financial impact factors were identified and a comprehensive evaluation of the financial

marketing Customer satisfaction survey conduct R&D

Scientific and technological Customer daily communication Improve customer service systems

ty analysis significance of each topic was conducted to determine its financial materiality.Customers innovation Customer information and feedback mechanismsconfidentiality Enhance information security Data security protection

Establish competitive Material- A list of topics reflecting both impact materiality and financial materiality was compiled. The results were

Employment and employee rights Employee training compensation and benefits ity confir- submitted to the Board of Directors for review and confirmation. ESG management and information dis-

Equality inclusiveness and Regular working meeting systems closure were conducted for these topics to ensure that relevant issues are transparently balancedly and

diversity Employee symposium Conduct regular employee training mation comprehensively reported.Employment development and democratic communication Provide platforms for employee

Employees training Employee engagement survey development

Occupational health and safety Employee activities Organize employee activities

Assist employees in need Materiality Issues Matrix Environment Society

Eliminate commercial bribery

Sustainable supply chain Supplier exchange and 01 Address Climate Change 09 Occupational Health and

Strengthen supplier audits

management communication 02 Environmental Compliance Work Safety

Participate in industry Management 10 Employee Rights & Interests

Suppliers and Supplier empowerment Supplier conference exchanges 03 Waste Management and Welfares

partners Sunshine procurement Phone/email communication 11 Employee Training and Join industry organizations 22 04 Pollutant Emissions26 27 09 02 05 Energy Utilization Development

12 Inclusive and Diverse Work-

Promotion of industry 0728 04 06 Water Resources Participate in standards place Environment

development Industry seminars 10 Management11 03 13 Community Development formulation 17 07 Recycling Economy

Comply with industry standards Industry exhibitions and Public Welfare

Strengthen industry-university- 12 20 18 08 Ecosystem and Biodiversity Industry 14 Rural Revitalization and Promotion of product Industry conference 30 24 Conservationresearch collaboration Common Prosperityassociations innovation 01 Governance 15 Employment Promotion16 Intellectual Property

Help industry development

Community visits Support rural revitalization Protection

Social public benefit 05 24 Compliance Operation and 17 Scientific and Technological

Public welfare activities Participate in philanthropic 06 21 Risk Management

contribution Innovation

Community and Rural revitalization endeavors

16 25 Due Diligence 18 Supply Chain Security

Protection of ecological 15 26

the public Environmental protection Focus on habitat conservation

23 Communications with 19 Equal Treatment of Small

environment 08 Stakeholders13 and Medium-Sized

27 Anti-Commercial Bribery Enterprises

Information disclosure and Improve information disclosure 25 19 and Anti-Corruption 20 Industrial Chain

Regular/temporary information

dissemination mechanisms 14 29 28 Investor Relations

Coordination

disclosure Management 21 Responsible Procurement

Media Responsible business and Optimize public opinion Marketing information review Anti-Unfair Competition 22 Product Quality and Safety

marketing feedback channels 30Low High ESG/Sustainability 23 Information Security and

Financial Materiality Management Privacy Protection

2425

High Significance of the impact Low02

Robust Governance:

Strengthening

Unity to Promote

Development

Juheshun has always regarded sound governance as the cor-

nerstone of corporate development. The Company continuously

improves its governance system reinforces compliance man-

agement and internal control mechanisms actively upholds

business ethics and safeguards shareholders’ rights through

diversified and transparent investor communication channels

thereby ensuring sustainable development and long-term val-

ue creation.Contents of This Section

Corporate Governance Commercial Ethics

Investor Relations Party Building Guidance

Management

Compliance Management

SDG Addressed

26 27Juheshun Advanced Materials Co. Ltd. About This Message from About Sustainable Governance: Robust Governance: Integration of R&D and Low Carbon for Green People Orientation:

Corporate Governance General Meeting of Shareholders

Juheshun continuously improves its corporate governance structure strengthens the functions of the Board of Directors opti- The General Meeting of Shareholders is the Company’s highest authority. The Company strictly follows the Articles of Associ-

mizes the functions and responsibilities of the four committees attaches importance to the professional performance of inde- ation Rules of Procedure for General Meeting of Shareholders and other relevant regulations to standardize the convening

pendent directors and safeguards shareholders’ rights. The Company promotes diversity professionalism and independence process meeting procedures and voting mechanisms. It ensures equal participation rights for minority shareholders and ef-

among board members and comprehensively enhances corporate governance effectiveness to support the Company’s stable fectively safeguards all shareholders’ legal rights including the right to information the right to participate and the right to

and long-term development. vote.Governance Structure and Functions Key performance

The Company strictly complies with the Company Law of the People’s Republic of China the Securities Law of the People’s Re-

public of China the Code of Corporate Governance for Listed Companies and other relevant laws regulations and regulatory The General Meeting of Shareholders convened 7 meetings and deliberated 26 proposals

requirements. It has established a modern corporate governance system centered on the Articles of Association encompass-

ing the Rules of Procedure for Shareholders’ Meetings Rules of Procedure for Meetings of Board of Directors Independent Di-

rectors’ Work System and other internal governance policies.During the reporting period in accordance with new regulatory requirements and aligned with the Company’s operational

and development needs Juheshun revised existing systems including the Articles of Association and introduced multiple

new management policies such as the Interim Management System for Deferred and Exempted Information Disclosure and Board of Directors

the Market Value Management System further improving the corporate governance framework and operational management

structure. During the reporting period the Board of Directors deepened governance reforms by abolishing the Board of Super-

visors thereby clarifying the boundaries of authority and responsibility. The powers of the General Meeting of Shareholders As the Company’s highest governance body the Board of Directors exercises its authority in accordance with the Articles of

were strengthened the Board of Directors’ central role in strategic decision-making was emphasized and the management Association and Rules of Procedure for Meetings of Board of Directors . It is responsible for convening the General Meeting

team’s operational responsibilities were reinforced. This established a modern governance structure with a clear separation

and effective checks and balances among decision-making supervision and execution further enhancing governance over- of Shareholders and reporting on its work implementing resolutions of the General Meeting of Shareholders approving the

sight and effectiveness. Company’s business plans and investment proposals determining the structure of internal management bodies and formu-

lating the Company’s fundamental management policies among other major matters.Organizational Structure of Juheshun Advanced Materials Co. Ltd. Diversity of Board of Directors

Strategic and Sustainable General meeting

Development Committee of shareholders The Company attaches great importance to the strategic value of diversity of Board of Directors deeply integrating the con-

cept of diversity into the governance structure optimization process to enhance the scientific basis of decision-making and the

Nomination Committee Board of Directors Company’s competitiveness. The Board of Directors consists of 7 members covering experts in chemical fiber engineering

Secretary of Board financial management law and other fields. Among them 2 are female directors accounting for 28.57% and 3 are inde-

Remuneration and of Directors pendent directors accounting for 42.86%. Members of Board of Directors possess the industry experience knowledge and risk

Assessment Committee Chairman management capabilities required to perform their duties supporting the Board of Directors in making optimal decisions and

ensuring the Company’s sustainable development.Audit Committee General Manager

Deputy General Manager Director Name Position Gender Age Education Professional

Fu Changbao Chairman Non-Independent Director Male 57 Master’s degree

Business

Operation Center R&D Center Administration

Mao Xinhua General Manager Non-Independent Male 61 Bachelor’s Chemical Fiber Director degree Engineering

Deputy General Manager Chief

Yao Shuangyan Financial Officer Non-Independent Female 47 Bachelor’s

Director degree

Fu Yongbin Employee Director Male 57 High school /

Zhou Mingsheng Independent Director Male 63 Master’s degree Chemical Process Engineering

Han Linjing Independent Director Female 48 Doctoral degree Financial Management

Yin Dejun Independent Director Male 43 Master’s degree Law

Shandong Juheshun Luhua Trading

Co. Ltd.

2829

Securities Department

Juheshun (International) Hong Kong Ltd.Changde Juheshun New Materials

Co. Ltd.Shandong Juheshun New Materials

Co. Ltd.Shandong Juheshun Luhua New

Materials Co. Ltd.Hangzhou Juheshun Special Materials

Technology Co. Ltd.Office

Finance Department

Human Resources

Department

Safety and Environment

Protection Department

Quality Inspection

Department

Production Department

Postdoctoral Workstation

R&D Management Office

Technical Development

Department

Market Department

Sales Department

Procurement Department

Operations Management

Office

Strategic Development

Department

Internal Audit

DepartmentJuheshun Advanced Materials Co. Ltd. About This Message from About Sustainable Governance: Robust Governance: Integration of R&D and Low Carbon for Green People Orientation:

Board Independence Investor Relations Management

The Board of Directors includes multiple independent directors to ensure the independence and objectivity of its deci-

sion-making. The Company strictly complies with the Company Law of the People’s Republic of China the Measures for Juheshun places great importance on protecting the rights and interests of all stakeholders. Through multi-dimension-

the Administration of Independent Directors of Listed Companies and other relevant laws and regulations. It has estab- al measures—including improving the information disclosure system strengthening public opinion monitoring and

lished the Independent Directors’ Work System and the Special Meeting Work System for Independent Directors to en- optimizing investor communication mechanisms—the Company ensures that investors can access company informa-

sure that independent directors exercise oversight and checks on key matters such as related-party transactions major tion openly fairly impartially and in a timely manner. These efforts enhance the quality of information disclosure and

investments and profit distribution effectively preventing insider control risks and safeguarding the legal rights of all strengthen investor confidence.shareholders especially minority shareholders.Key performance Information Disclosure

During the reporting period the Company convened 3 special meetings of independent directors to review and The Company complies with the Measures for the Administration of Information Disclosure of Listed Companies and

other relevant laws and regulations. It has established internal policies including the Information Disclosure Manage-

vote on related-party transactions. ment System and the Accountability System for Major Errors in Annual Report Disclosure to standardize the information

disclosure process and ensure the authenticity accuracy completeness timeliness and fairness of disclosed informa-

tion thereby reducing information asymmetry risks. In addition the Company has implemented the Insider Information

Board Committees Registration Management System to strengthen the confidentiality of insider information prevent insider trading and continuously improve the quality of information disclosure.The Board of Directors has established four specialized committees: the Strategic and Sustainable Development Com-

mittee Audit Committee Nomination Committee and Remuneration and Assessment Committee. Each committee fully Key performance

exercises its specialized functions providing support for the Board of Directors’ informed and scientific decision-mak-

ing.During the reporting period the Company disclosed:4 regular reports; 121 interim reports.Meeting Deliberated Percentage of Independent

Frequency Proposals Attendance Rate Directors

Board of Directors 12 62 100% 42.86%

Strategic and Sustainable

Development Committee 2 2 100% 33.33% Investor Relations Management

Nomination Committee 3 5 100% 66.67% The Company strictly adheres to the Guidelines for Investor Relations Management of Listed Companies and other

relevant regulations and has established the Investor Relations Management Measures to actively carry out investor

Audit Committee 6 14 100% 66.67% relations activities. A comprehensive communication bridge with investors has been built through various channels

Remuneration and Assessment including regularly held earnings briefings investor visits telephone consultations and responses to inquiries on the

Committee 1 1 100% 66.67% e-interaction platform. The Company maintains active communication with institutional investors analysts and minor-

ity shareholders promptly addressing investor concerns and conveying the Company’s operational performance and

development strategy thereby creating a stable and harmonious external environment for sustainable development.Remuneration Management for Directors and Senior Management

The Company attaches great importance to the governance of remuneration for directors and senior management Key performance

personnel. It has established the Remuneration Management System for Directors and Senior Management creating

a scientific and effective mechanism of incentives and constraints to motivate board members and senior executives Earnings briefings held 3 sessions; Investor calls received over 40 times; Investor questions answered via

improve operational and management efficiency and promote the Company’s healthy and sustainable development. e-interaction platform 116 questions; Response rate on e-interaction platform 100%

The compensation policy is formulated by the Remuneration and Assessment Committee under the Board of Directors

covering compensation determination mechanisms decision-making procedures payment suspension and recovery

arrangements. A remuneration clawback mechanism is also in place ensuring that in cases of major decision-making

errors or violations accountability measures are strictly applied. This approach fully reinforces governance effectiveness

by balancing incentives and constraints aligning short-term performance with long-term development.Metric 2023 2024 2025

Remuneration for directors 、

supervisors and senior management RMB 2.5951 million RMB 3.4622 million RMB 3.3259 million

(including current and former personnel) (excluding supervisors)

30 31Juheshun Advanced Materials Co. Ltd. About This Message from About Sustainable Governance: Robust Governance: Integration of R&D and Low Carbon for Green People Orientation:

Returns to Shareholders Risk Management and Internal Control

The Company is committed to enhancing shareholder returns ensuring that the rights and interests of minority share- Juheshun adheres to strict compliance and risk control standards strengthening the foundation of internal control. The

holders are treated fairly and fully respected and sharing the results of the group’s business development with all Company continuously improves its enterprise-wide risk management and internal control systems effectively identi-

shareholders. While pursuing performance growth the Company formulates a scientific and reasonable dividend strat- fying and managing compliance risks to ensure that all business operations are conducted steadily within a compliant

egy by comprehensively considering its financial position market conditions and future development plans. Through a framework thereby laying a solid foundation for high-quality development.continuous and stable dividend policy the Company actively rewards investors’ trust and support jointly promoting the

Company’s long-term and healthy development.Metric 2023 2024 2025(proposed) Risk Management

Total cash dividends

(tax inclusive)/RMB 10000 8993.60 4197.11 1982.82 To enhance the Company’s ability to perceive and respond to internal and external risks Juheshun following require-

Proportion of net profit attributable ments such as the Enterprise Risk Management Framework has established a risk management mechanism covering

to parent company in consolidated 45.72% 13.98% 13.69%

financial statements risk identification risk assessment risk response and risk prevention. Risk management is integrated into the Compa-

ny’s business processes to promptly identify and address various risks ensuring the Company’s stable and sustainable

Proportion in distributable profits

in that year 50.18% 15.05% 15.11% development.Public Opinion Management Risk Management Process

The Company has established the Public Opinion Management System to enhance its ability to respond to various pub-

lic opinion events setting up rapid response and emergency handling mechanisms. This ensures timely and appropri-

ate management of any impacts on the Company’s stock price corporate reputation and normal business operations Conduct comprehensive identification of potential risks in operations through in-

effectively protecting investors’ legal rights. At the same time by proactively guiding public opinion the Company com- Risk ternal audits and external information sources.municates its value strengthens market confidence and maintains a positive brand image as well as stable investor identification

relations.Routine public opinion handling Major public opinion handling

The Secretary of Board of Directors and the The leader of the Public Opinion Task Team

Securities Department handle routine public convenes meetings as needed to make de- Quantitatively analyze identified risks and prioritize them based on their likeli-

opinion matters flexibly based on the specific cisions and deploy measures in response to Risk hood of occurrence and potential impact on the Company.assessment

circumstances. major public opinion events. The Securities

Department conducts real-time monitoring

closely tracking developments while the task

force implements various measures to control

the spread of information.Develop targeted risk response strategies to ensure rapid action and control

Risk when risk events occur preventing further escalation.response

Summarize lessons learned optimize the risk management system and enhance

Risk the Company’s ability to address future risks.prevention

32 33Juheshun Advanced Materials Co. Ltd. About This Message from About Sustainable Governance: Robust Governance: Integration of R&D and Low Carbon for Green People Orientation:

Internal Control Commercial Ethics

The Company complies with the Basic Norms for Enterprise Internal Control and industry-specific internal control reg- Juheshun maintains a zero-tolerance approach toward any conduct that violates business ethics. The Company con-

ulatory standards continuously deepening the construction of its internal control management system to promote tinuously strengthens the governance of business ethics and steadily advances the construction of an integrity system

standardized operations and healthy development while protecting investors’ legal rights. The Company has estab- laying a solid foundation for fostering an ethical business ecosystem and achieving sustainable development.lished an Audit Committee under the Board of Directors to oversee compliance management supported by a dedicated

audit department staffed with a highly qualified and experienced audit team. In accordance with the Internal Audit

System the committee members conduct regular internal audits and risk assessments independently reviewing key Anti-Commercial Bribery and Anti-Corruption

business processes financial reporting and the effectiveness of internal controls to ensure that all risks are promptly

identified and effectively managed. The Company upholds the principle of integrity in business operations strictly adhering to business ethics and com-

plying with relevant anti-bribery and anti-corruption laws and regulations. Internally the Employee Handbook clearly

Tax Management defines business ethics standards and employee conduct rules explicitly prohibiting any form of bribery corruption or improper transactions thereby standardizing and controlling employee behavior. Externally the Company signs Integ-

rity Agreements with various partners specifying the parties’ obligations and responsibilities regarding integrity in co-

The Company strictly complies with the Enterprise Income Tax Law of the People’s Republic of China the Tax Collection operation ensuring that partners adhere to the principles of ethical business conduct. Juheshun continuously promotes

and Administration Law of the People’s Republic of China and other relevant laws and regulations and has established a comprehensive integrity management system across the entire chain covering institutional constraints behavioral

a sound financial management system. Tax declaration payment and planning activities are conducted in an orderly norms and monitoring and reporting mechanisms. This fosters a clean fair and transparent cooperation environment

manner. The Company regularly carries out internal tax self-checks and external audits for the parent company and all strengthening the management defenses against bribery and corruption.subsidiaries effectively preventing tax risks and avoiding potential legal liabilities and financial losses from non-com-

pliance. At the same time the Company emphasizes the cultivation of an integrity-driven corporate culture. Through anti-cor-ruption training programs including legal education and case analyses as well as awareness-raising measures such

as posting warning slogans employees’ ethical awareness is continuously strengthened fostering a work environment

Key performance of integrity and self-discipline.The Company continuously improves its internal whistleblowing and whistleblower protection mechanisms. Channels

During the reporting period the Company had no major tax violations and was not involved in any significant such as a dedicated reporting email SMS reporting and a communication feedback WeChat group are available 24/7

tax-related litigation or arbitration. to receive internal supervision and reports. The Company strictly protects the personal information of whistleblowers

prohibits any form of retaliation and imposes severe sanctions on personnel involved in illegal disclosure of whistle-

blower information or retaliation against whistleblowers.Case Anti-Corruption and Anti-Bribery Training Session

Reporting Channels

Reporting Hotline: Reporting Email:

0571-82955559 jhsdm@jhspa6.com

34 35Juheshun Advanced Materials Co. Ltd. About This Message from About Sustainable Governance: Robust Governance: Integration of R&D and Low Carbon for Green People Orientation:

Anti-Unfair Competition Case Implementing Diverse Party-Building Activities

The Company consistently adheres to the principle of fair competition strictly complying with the Anti-Monopoly Law of

the People’s Republic of China the Anti-Unfair Competition Law of the People’s Republic of China and other relevant In January 2025 the Party branch effectively advanced diversified Party-building activities organizing both Party

laws and regulations thereby maintaining a healthy market order. Juheshun has established a comprehensive anti-mo- and non-Party staff to study the exemplary deeds featured in 9 Model Figures promoting the spirit of role mod-

nopoly compliance system and regularly conducts self-inspections and risk assessments of business activities to ensure els and fostering motivation for progress. In February 2025 the CPC Hangzhou Linjiang High-Tech Park Working

that no monopolistic agreements or abuse of market dominance occur in pricing sales or partnerships. During the Committee visited the Company and together with company Party members held a democratic evaluation meet-

reporting period the Company was not involved in any anti-monopoly investigations or penalties earning the trust and ing and a democratic life meeting.respect of clients and partners while contributing positively to the healthy development of the industry.Party Building Guidance

The Company consistently upholds Party leadership guided by Xi Jinping Thought on Socialism with Chinese Character-

istics for a New Era. It earnestly studies and implements the spirit of the 20th National Congress of the Communist Party Watching 9 Model Figures Conducting a democratic Recording minutes of the

of China and its subsequent plenary sessions coordinating the development of the Party’s organizational ideological broadcast on CCTV-1 evaluation meeting organizational life meeting

and disciplinary work. This provides strong political and organizational support for the Company’s stable growth re-

form promotion risk prevention and quality and efficiency improvements.Party Discipline Construction

Organizational Development

The Company guides all Party members and cadres to internalize understand and adhere to Party discipline effec-

The Company continuously strengthens the construction of grassroots Party organizations and the cultivation of cadres tively transforming rules and regulations into behavioral norms and conscious actions. Party discipline is integrated

and talent improving the grassroots organizational system and enhancing the education and management of Par- throughout the Company’s organizational development using strict enforcement to strengthen binding constraints and

ty members. Efforts focus on building a high-quality cadre team that is loyal honest and responsible guiding Party rigorously addressing all violations of Party rules thereby building a solid disciplinary framework.members to take the lead in the times and serve as exemplary pioneers thereby providing strong organizational sup-

port for the Company’s high-quality development. In 2025 1 new Party member was formally inducted 2 probationary

Party members were trained and 6 new Party activist candidates were added. Case Studying the Regulations on Disciplinary Actions of the Communist Party of China

Party Building Events In July 2025 Party Branch Secretary Mao Jian conducted a specialized Party lecture on Party discipline construc-

tion. The session focused on in-depth study of the Regulations on Disciplinary Actions of the Communist Party

of China and key provisions such as the Central Eight-Point Regulations using theoretical learning to strengthen

The Company’s Party branch regularly organizes themed Party Day activities Party lectures and joint Party-building disciplinary awareness and institutional norms to guide behavior promoting coordinated and effective advance-

events integrating Party work with corporate management and cultural development to achieve a win-win between ment of Party-building and discipline construction.business growth and social responsibility. During the reporting period the Party branch held 7 branch meetings 12

themed Party Day learning activities and 1 company-wide health check event providing strong political support and

spiritual motivation for the Company’s high-quality development.Party Discipline Construction

363703

Integration of R&D

and Production:

Strengthening the

Industrial Foundation

Innovation is the core driving force for corporate development

and high-quality products are the fundamental reflection of

a Company’s competitiveness. Juheshun consistently adheresto the development philosophy of “innovation leads futurequality lays foundation service achieves value” continuously

enhancing product research development and production

efficiency ensuring outstanding and stable product quality and

providing customers with solutions that deliver sustained value.Contents of This Section

Scientific and Responsible Supply Chain

Technological Innovation Information Security

Product Quality and Safety

Customer Service

SDG Addressed

38 39Juheshun Advanced Materials Co. Ltd. About This Message from About Sustainable Governance: Robust Governance: Integration of R&D and Low Carbon for Green People Orientation:

Scientific and Technological Innovation Construction of Innovation Platform

Leveraging its strong R&D capabilities in the nylon segment and continuous innovative achievements Juheshun has

Juheshun consistently implements an innovation-driven development strategy placing great emphasis on R&D innova- been consecutively recognized as a “National High-Tech Enterprise” a “National Specialized Refined Differentialtion and green design. Through continuous technological innovation and process optimization the Company ensures and Innovative ‘Little Giant’ Enterprise” a “Hangzhou Patent Demonstration Enterprise” a “Hangzhou Headquartersthe sustained delivery of innovative outcomes while establishing a sound intellectual property management system to Enterprise” a “Hangzhou Kunpeng Enterprise” and one of the “Top 100 Fastest-Growing Enterprises of Zhejiangprovide robust legal protection for these innovations thereby ensuring the sustainability of innovation-driven business Province in 2025.” The R&D Center has also received titles and honors including the “Hangzhou High-Tech Enterprisedevelopment. R&D Center” “Provincial-Level High-Tech Enterprise R&D Center” “Hangzhou Enterprise Technology Center” and

“Provincial Enterprise Research Institute.”

Innovation and R&D System Metric Unit 2025

Juheshun focuses on strengthening its independent innovation capabilities by establishing an autonomous innova- Investment in R&D RMB 10000 16782.35

tion system centered on the R&D Center providing solid technological support for high-quality development. The R&D R&D investment as a percentage of main

Center comprises the Technology Development Department Postdoctoral Research Station New Product Research De- business revenue % 3.04%

partment and R&D Management Office and is primarily responsible for formulating and implementing the Company’s Specialized Refined Differential and

R&D strategy and new product development plans systematically carrying out product design process innovation and Innovative Enterprise time 2

technological upgrades. At the same time internal regulations such as the Research and Development Organizational National High-Tech Enterprise time 2

Management System and the R&D Investment Accounting System have been established forming a complete innova-

tion chain from market research and technological development to testing validation and standard-setting. This fully

promotes standardized management of the R&D process and ensures the orderly advancement of research activities.The Company is equipped with a fully functional nylon 6 laboratory and pilot production facilities with continuous in-

vestment to expand their scale providing platform support for innovative research.R&D Center Organizational Structure

R&D Cente

Technical Advisor Showcase of Some Honors

R&D Team Building

Technology Development

Department R&D Management Office Postdoctoral Workstation In terms of talent development Juheshun has established the Talent Recruitment and Training Management System

providing differentiated subsidies and support and focusing on building a training system for mid-to-senior manage-

ment personnel and senior technicians. The Company actively recruits high-level talents and engages external experts

to provide guidance ensuring a steady talent supply for sustained innovation in the nylon chip sector. As of the end of

the reporting period the R&D Center at the Company’s Hangzhou headquarters employs 72 staff members including

10 with mid-to-senior professional titles and has appointed several senior domestic industry experts as technical advi-

sors to the center.Metric Unit 2025

Total R&D team members person 164

Proportion of R&D personnel to total employees % 23.84

Below bachelor’s degree person 101

Bachelor’s degree person 61

By education level

Master’s degree person 1

Doctoral degree person 1

Male person 115

By gender

Female person 49

4041

Financial Accounting

Group

R&D Management

Group

Testing Center

Specialty Products Project Research

Project Team Group N

PA66 Project Team Project Research Group N

PA6 Project Team Project Research Group NJuheshun Advanced Materials Co. Ltd. About This Message from About Sustainable Governance: Robust Governance: Integration of R&D and Low Carbon for Green People Orientation:

R&D Process Goals and Planning

During the product design and development phase Juheshun has established the Design and Development Control

Procedure and built a standardized R&D management and control system covering key stages such as R&D planning Continue advancing the Tengzhou PA6 Phase II and Zibo PA66 projects enhancing Short-term

and feasibility analysis design input and review ensuring that each stage is fully controllable. The Company assess- production capacity and new product development capabilities and filling the Com-(1–2 years)

es R&D effectiveness through quantitative indicators conducts multiple rounds of review to reduce risks relies on er- pany’s capacity gap in the nylon 66 sector; promote the Company’s transformation from a single PA6 product line to a diversified PA6 + PA66 product portfolio.ror-prevention management to ensure quality standardizes document retention and provides support for subsequent

R&D optimization.Design and Development Process Leverage scale advantages to reduce costs and enhance product price competitive-

Mid-term ness; continuously expand downstream application scenarios increasing penetration

(3–5 years) in automotive lightweighting medical equipment and electronics fields while seizing

R&D planning Design input Product and development opportunities in emerging sectors such as aerospace and smart weara-Sample Customer Outcome im- Full-process

and feasibility and review process bles; continue process innovation to drive green transformation within the industry.fabrication confirmation plementation documen-

analysis design and and and final and design tation and

review verification review changes archiving Actively develop a patent early-warning system and international cooperation mecha-nisms promoting a global layout; gradually extend from pure material supply to high-

Long-term end customized products and services creating differentiated competitive advantages;

01 02 03 04 05 06 07 (over 5 years) improve green production capabilities through technological innovation and production process optimization seizing opportunities in green transformation to attract more cus-

tomers and gain policy support; continuously upgrade toward large-scale automated

and energy-efficient production to achieve cost reduction and efficiency gains.R&D Incentives R&D Results

To stimulate intrinsic R&D motivation and strengthen technological innovation capabilities Juheshun has established

a scientific and diversified R&D incentive system. The Company has formulated internal regulations such as the R&D

Performance and Technological Innovation Reward System and the Employee Rationalization Proposal Management Juheshun continues to deepen its focus on core business areas leveraging its comprehensive strengths in technological R&D resource integration and innovation platforms. The Company has developed more than 30 new products with

Measures following principles of strategic orientation value linkage and dynamic adjustment thereby supporting the multiple technologies reaching domestic leading levels establishing itself as a leading enterprise in the nylon chip

enhancement of the Company’s core competitiveness. industry. Its products are widely applied in nylon fibers (including both civil and industrial fibers) engineering plastics

At the end of each year the Company conducts comprehensive performance evaluations for R&D staff implementing and film manufacturing. Through outstanding products and technologies Juheshun continuously drives industry devel-opment and creates higher value for its customers.a compensation structure of “base salary + project performance bonus” closely linking R&D personnel’s income to

their actual project contributions. Performance assessments focus on five dimensions: project cost project schedule Time Innovative Results Achievement Attributes

completion quality expense control and technical difficulty and are jointly evaluated by the project leader and the R&D

Center to ensure objectivity and fairness. Development of polyamide materials for enhanced nylon modified composite Independent R&D transformation

In terms of technological innovation rewards the Company has established diversified incentive channels includ- 2025 filament

ing government innovation awards professional title promotion rewards scientific paper publication awards patent Development of fully matte nylon 66 Independent R&D transformation

awards and process and technology innovation rewards. By closely integrating individual growth team collaboration materials

and company strategy Juheshun has fostered a results-oriented innovation culture providing a solid institutional foun-

dation for continuously enhancing the Company’s core technological competitiveness. In addition the Company actively organizes internal experts to conduct in-depth research on industry development trends and technological demands and collaborates closely with peer enterprises research institutions and standard-

ization organizations having led or participated in the formulation of 6 industry standards to date. By transforming its

R&D Strategy innovative experience into rules followed across the industry Juheshun not only gains a competitive edge for its own development but also promotes the standardized and regulated advancement of the entire industry.Participate in Standards FormulationWith the overarching development goal of “striving to become a first-class provider of polyamide new material solu-tions” Juheshun actively seizes strategic opportunities arising from the domestic breakthrough of upstream raw mate- S/N Standard Name Participation Level

rials. While maintaining the advantages of existing business the Company is expanding into higher value-added nylon

66 and specialty nylon sectors promoting high-end differentiated and large-scale development and focusing on R&D 1 GB/T38138-2019 Test Methods of Fiber Grade Polycaprolactam (PA6) Chip Participated in formulation

and production of a high-quality high value-added product portfolio of nylon 6 nylon 66 and specialty nylon.

2 T/ZZB1775-2020 Polyamide/Spandex Air Covered Yarn Participated in formulation

3 FZ/T51023-2024 Fiber Grade Recycled Polycaprolactam (PA6) Chips Participated in formulation

4 Q/JHS J 001-2023 Technical Standard for Engineering-Grade polycaprolactam 6 Chips Led formulation

5 Q/JHS J 002-2022 Nylon 66 Chips Led formulation

6 Q/JHS J 003-2023 Standard for Film-Grade Polycaprolactam 6 Led formulation

42 43Juheshun Advanced Materials Co. Ltd. About This Message from About Sustainable Governance: Robust Governance: Integration of R&D and Low Carbon for Green People Orientation:

Green Design Intellectual Property Protection

Juheshun deeply integrates green principles throughout the entire product design and development process. By imple- Juheshun strictly complies with relevant laws and regula-

menting multi-dimensional green design the Company reduces environmental impact enhances product market com- tions including the Patent Law of the People’s Republic of

petitiveness and provides practical pathways for the industry’s green transformation. While meeting production and China and the Trademark Law of the People’s Republic of

market demands it continuously promotes resource conservation and carbon emission reduction. China and has established procedural documents such

Specific Measures and Environmental Benefits as the Intellectual Property Management Control Proce-

dure . Through standardized process management the

Company strengthens its technical and patent reserves

Substitute some highly Reduce carbon emissions as well as intellectual property protection ensuring the

Resource recycling pollutant materials from downstream industries collection accumulation sharing orderly transfer and

Nylon chips are recyclable High-performance nylon Automotive sector: Nylon 6 chips effective application of knowledge within the enterprise.materials. Nylon waste chips are used to replace are used to produce components The Company has set up a clearly defined intellectual replacing steel with plastic; reduc-

generated downstream— certain metal materials property management organizational structure desig-ing vehicle weight by 100 kg can

such as scrap yarn and dis- resulting in lower energy lower fuel consumption by 0.3–0.6 nating the R&D Center as the dedicated department for

carded fishing nets—can be consumption and pollutant L/100 km and carbon emissions by IP management responsible for overall supervision and 5 g/km.physically and chemically emissions during produc- inspection while each business unit is responsible for im-Electronics sector: Used for insu-

processed into new prod- tion. The products are also lating and electronic components plementing IP management requirements within its own Intellectual Property Management System Certification

ucts creating a closed- easier to recycle after use improving device energy efficiency domain. During the reporting period Juheshun obtained and reducing operational energy

loop resource cycle and reducing environmental certification under the intellectual property management consumption.reducing resource waste burdens at both production Construction sector: Used in sealing system of GB/T 29490-2013.and waste discharge. and disposal stages. and insulation materials reducing building energy consumption and

HVAC equipment usage indirectly Juheshun implements standardized management across the entire lifecycle of intellectual property. Through institu-

lowering carbon emissions. tionalized and process-driven operations the Company effectively protects its innovative achievements and mitigates

intellectual property risks. Juheshun will continue to refine its IP strategy strengthen the creation and management of

knowledge assets drive sustainable growth through innovation and contribute to technological progress within the in-

dustry.Industry-University-Research Collaboration

Key performance

Building on its independent R&D efforts Juheshun actively seeks and expands collaboration with universities. Over the Number of patents held patents;Number of invention patents held patents;Number of utility model

past three years the Company has engaged in industry-university-research cooperation with Wuhan Textile University 77 15

Zhengzhou University and Jiangnan University focusing on the development of high value-added nylon products. patents held 62 patents;Number of new patents added in the year 7 patents;Number of patents pending

13 patents；Total number of trademarks 53 trademarks;Total number of published papers 2 pieces

Case Development of Fully Matte Nylon 66 Resin for High-Speed Spinning with Controllable Surface Opical Properties Digital Innovation

Juheshun deepened collaborative innovation with Wuhan Textile Juheshun actively embraces digital transformation by introducing digital technologies and comprehensively advanc-

University through the joint project Development of Fully Matte Nylon

66 Resin for High-Speed Spinning with Controllable Surface Optical ing the development of an intelligent manufacturing system. This enables end-to-end digital management from R&D

Properties. Leveraging the university’s R&D strengths in textile materi- to production enhancing resource utilization efficiency and flexible manufacturing capabilities. At the same time the

als and the Company’s industrialization experience the collaboration Company deeply implements the philosophy of lean management placing refined management and continuous op-

overcame key technological bottlenecks. This partnership not only

advanced breakthroughs in high-end nylon material technology but timization at its core. Through information system development Juheshun significantly improves production efficiency

also accelerated the industrialization of research outcomes provid- and product quality ensuring that every stage of the process meets the highest standards of excellence.ing high-performance material support for the textile and high-endmanufacturing sectors and demonstrating the innovative value of In 2025 Juheshun focused on the goals of “intelligent production integrated management and precise safety man-integrating industry academia and research. agement” and increased targeted investment in digital technologies. The Company prioritized production control

equipment monitoring and system integration to achieve systematic standardized and scientific workflows thereby

enhancing the overall management capabilities and efficiency of all departments. From 2023 to 2025 Juheshun invest-

ed RMB 2.1036 million in the application of digital technologies.

44 45Juheshun Advanced Materials Co. Ltd. About This Message from About Sustainable Governance: Robust Governance: Integration of R&D and Low Carbon for Green People Orientation:

Industrial Ethernet Distributed

Control System ERP Management System Scientific and Technological Ethics

The Company has applied an In- The ERP Management System in-

dustrial Ethernet Distributed Control tegrates all internal enterprise re- In conducting its business Juheshun consistently regards technology ethics as a fundamental prerequisite for techno-

System based on industrial internet sources and plans procurement logical innovation. The Company strictly complies with relevant national and international laws and regulations and

technology to its R&D pilot lines and production cost inventory distri- pays close attention to systematic assessments of environmental health and safety impacts throughout product R&D

production lines. Through process bution transportation finance and process optimization and technology application ensuring that technological innovation aligns with the ethical prin-

R&D it independently designs con- human resources thereby achieving ciples of sustainable development. During the R&D process the Company adheres to the principle of integrity respects

trol system solutions to precisely optimal resource allocation and and protects intellectual property rights fulfills responsibilities for data and information security management and

manage formulations and process maximizing overall benefits. In a upholds transparency in technology and compliance in processes. At the same time Juheshun has established and

parameters. At the same time by rapidly changing market environ- continuously improved its internal ethics review and compliance training mechanisms strictly preventing any unethical

utilizing intelligent sensing equip- ment characterized by evolving conduct and safeguarding the responsible development of technology through strong ethical governance.ment the system enables automatic opportunities pricing pressures

online data collection monitors op- and service-level challenges the

erational data and equipment sta- Company has increased investment

tus and supports automated and in information and digital technol- Product Quality and Safety

intelligent R&D and pilot production ogies to reconstruct and improve its

in chemical manufacturing enter- information architecture ultimately Juheshun consistently regards product quality and safety as the cornerstone of its development adhering to the phi-

prises. This helps reduce R&D labor enhancing operational efficiency losophy of “people-oriented quality first; customer foremost integrity and sincerity.” Through lean operations and

costs avoid pilot production errors and competitiveness. standardized management the Company strictly controls its production processes continuously enhancing product

improve the success rate of R&D tri- performance and reliability. By continuously improving its quality management system and fostering a company-wide

als and achieve resource savings in culture of quality Juheshun is committed to providing customers with the most reliable high-quality products.new product development.Governance

Juheshun strictly complies with the Product Quality Law of the People’s Republic of China and other relevant laws and

In the future Juheshun will continue to advance its digital transformation through a phased implementation across regulations and continuously improves its quality management system and governance mechanisms. These systems

three stages steadily and continuously enhancing its level of informatization to support the Company’s healthy and cover all stages of the product lifecycle including raw material procurement production control product testing and

rapid development. after-sales service enabling comprehensive quality control.Juheshun Digital Transformation Planning To ensure the effective implementation of the quality management system the Company conducts regular internal au-

dits across all stages of the product lifecycle each year. In addition Juheshun actively engages external third-party certi-

fication bodies annually to carry out quality management audits and certification. As of the end of the reporting period

Integrate existing systems to achieve data consistency and traceability; the Company has obtained ISO 9001 and IATF 16949 quality management system certifications.Stage 1: Improve the efficiency of data collection and processing while reducing manual

System integration and intervention;

foundation consolidation Enable procurement price forecasting to lower operating costs;

(2025) Establish a data warehouse to support subsequent data analysis and deci-

sion-making.Enhance the level of intelligence in production processes to improve production

Stage 2: efficiency and product quality;

Intelligent upgrading and Optimize the reporting and statistical processes to enable automated data pro-

process optimization cessing and statistical analysis;

(2026) Strengthen data visualization capabilities to allow real-time monitoring of busi-

ness indicators and early warning of anomalies.Stage 3: Achieve enterprise-wide digital transformation to improve operational efficiency

Digital management and decision-making quality;

and innovation-driven Establish a quality issue database and fault analysis platform to enhance product

development quality and after-sales services;

(2027) Continuously promote innovation and explore new business models and growth drivers.

Quality Management System Certification Certificates

46 47Juheshun Advanced Materials Co. Ltd. About This Message from About Sustainable Governance: Robust Governance: Integration of R&D and Low Carbon for Green People Orientation:

Strategy Impact Risk and Opportunity Management

To ensure product quality Juheshun systematically identifies potential risks and opportunities and formulates targeted Juheshun places great emphasis on managing risks and opportunities related to product quality and safety. The Com-

measures accordingly. By effectively managing risks and seizing development opportunities the Company continuously pany clearly defines the responsibilities of each department in risk management systematically advances risk identi-

enhances product quality and strengthens its market competitiveness. fication assessment and mitigation and actively explores development opportunities arising from quality improve-

ments.Type of

Risk/ Description of Risk

Probability

of Extent of Impact Priority Potential Response Management Process

Opportunit /Opportunity Occurrence Impact Duration Ranking Financial Impact Measures

May resul t in

If the purity and impurity n o n c o n fo r m -

content of key raw materi- i n g p ro d u c t s

Raw als (such as caprolactam) a n d d a m a g e are unstable it will di- to reputation; Establish a strict supplier Based on relevant laws regulations and industry quality and safety standards the material rectly affect the molecular Short- to increase rework access and regular audit Company collects internal and external resources—including policy and regulatory up-quality weight distribution color High Low medium- Medium o r s c ra p p i n g mechanism; implement fluctua- dates market and customer feedback and internal production and operational data—

tion risk tone and physical proper-

term costs leading an inspection system for incoming raw materials. Identification to identify quality risks and opportunities across all stages from manufacturing to ties of the final products to higher oper-

potentially resulting in ating costs and after-sales service.nonconforming batches. reduced oper-

ating revenue.I f t h e c o n t e n t o f k e y

chemical substances in

products (such as residual Establish a product safety

Product monomers and plasticiz- High recall costs and compliance manage- Evaluate the impact of identified quality risks and opportunities in terms of time ho-

quality ers) exceeds the allowable Short- to and legal com- ment system covering the rizon financial consequences and other dimensions; distinguish between key risks

and limits or if the products Low High medium- High pensation may entire process; conduct arise leading specialized testing and requiring strict control and general risks requiring monitoring. At the same time ana-safety fail to meet regulatory term t o i n c r e a s e d certification in accordance lyze the potential value and feasibility of quality improvement opportunities to inform Assessment risk requirements and custom- and

er standards in specific operating costs. with regulations in target subsequent resource allocation and action plans. Analysis

markets this may trigger markets.product recall risks.Downstream emerging

industries (such as new Improve the feedback and closed-loop management mechanisms for quality issues

energy vehicles low-alti- Conduct R&D and pilot Green products production of bio-based verifying and reviewing the effectiveness of risk mitigation measures. Simultaneously Green and tude economy electronics

low-carbon and electrical appliances) Medium- may command or chemically recycled leverage quality improvement opportunities by optimizing production processes and

product are experiencing a surge High Medium to long- Medium a market premi- nylon; actively pursue in- upgrading testing technologies continuously enhancing the quality management

opportunity in demand for renewable term um increasing ternationally recognized Response system and transforming quality advantages into market competitiveness and growth

raw materials (e.g. bio- revenue. green product certifica- momentum.based nylon) or recyclable tions.nylon.Establish quality stand-

ard mechanisms wi th Share process data and

upstream raw material

Industri- suppliers to control raw Enhances com- improvement targets

al chain material quality from the p e t i t i v e n e s s with core suppliers;

collab- molecular design stage; Long- f o r e n t e r i n g promote data integra-

oration c o - d e v e l o p p r o d u c t High Medium term High high-threshold standards and test ing

oppor- supply chains

tion across the supply

m e t h o d s w i t h d o w n -

tunity increasing rev-

chain and build a full-

stream high-end custom- enue. chain quality traceabil-

ers (e.g. food packaging

electronics and electrical ity system.appliances).

48 49Juheshun Advanced Materials Co. Ltd. About This Message from About Sustainable Governance: Robust Governance: Integration of R&D and Low Carbon for Green People Orientation:

Metrics and Goals Quality Control Process Flow

To comprehensively enhance product quality Juheshun has established clear quality objectives from a strategic per- Arrival of raw materials and

spective. The Company continuously improves its end-to-end closed-loop quality management system promoting packaging materials

multidimensional coordination through standardized procedures process optimization technological innovation and

personnel training. This drives quality management from merely meeting standards to leading standards laying a solid

foundation for sustainable development. Inspection Request Form

Quality goal

Non-conforming

Inspection

Non-conforming handling

(handled in accordance

Warehouse entry with non-conforming

product management

control procedure)

Customer complaint handling Customer satisfaction On-time delivery rate Production area

100%≥85%95%

Commence production

Metric Unit 2025

Product percent of pass % 99.84 Semi-finished

product inspection

Number of internal quality audits conducted time 1 Non-conforming

Major quality incident rate % 0 OK

Proceed to next process step

Process Quality Management

Finished product

Juheshun has established a comprehensive quality control mechanism covering the entire process from raw and auxil- inspection Non-conforming

iary material intake to production and finished product delivery ensuring stable and reliable product quality. At the raw

material stage the Company has formulated the Standards for Raw and Auxiliary Material Receipt and Use detailing OK

the full-process requirements for material inspection and procedures for handling abnormalities. All incoming materials

are strictly tested in accordance with these requirements to ensure compliance with production formulations and pro- Finished product packaging

cess specifications reducing quality risks originating from raw materials and strengthening raw material management.During the production process from semi-finished products to final products strict inspections are conducted accord-

ing to the Standards for Semi-Finished and Finished Product Inspection ensuring that all critical product performance Non-conforming Packaging return

indicators fully meet customer agreements as well as national and international standards. Packaging inspection for rework

The Company strictly implements a closed-loop management mechanism for nonconforming products. In accordance

with the Nonconforming Product Management Control Procedure whenever a nonconformity is identified at any stage OK

the Quality Inspection Department immediately issues a nonconformance notice to the responsible department re- OK

quiring the formulation and implementation of corrective and preventive actions. After the rectification is completed Finished product storage

the Quality Inspection Department conducts a dedicated verification of the results forming a full-process management

loop of “detection → correction → verification → closure” systematically preventing the recurrence of quality issues.Through institutionalized processes and standardized operations the Company achieves proactive prevention in-pro-

cess control and post-event improvement of quality risks fundamentally ensuring consistency and reliability across the

entire product chain from raw materials to final products.

50 51Juheshun Advanced Materials Co. Ltd. About This Message from About Sustainable Governance: Robust Governance: Integration of R&D and Low Carbon for Green People Orientation:

Quality Culture Development Customer Service

A well-established quality culture provides Juheshun with a sustainable driving force for the effective operation of its Juheshun adheres to a “customer-centric” service philosophy continuously improving its customer service system and

quality management system. To continuously enhance the Company’s quality management effectiveness Juheshun optimizing complaint response mechanisms. Through multiple channels—including industry forums trade exhibitions

actively integrates internal and external resources optimizes quality management training programs and improves proactive client visits and various forms of online and offline meetings—the Company sincerely gathers feedback on its

employees’ theoretical knowledge and practical skills in product quality management. The Company also continuously products and services. Juheshun is committed to providing global customers with standardized service processes and

carries out organization-wide quality improvement initiatives streamlines core business processes and steadily en- reliable solutions.hances personnel quality management capabilities.During the reporting period the total training time reached 2 hours covering 25 participants. Customer Complaint Management

In accordance with the After-Sales Service Management Control Procedure and the Business Process Regulations of the

Case Quality Training to Enhance Quality Awareness Operations Center Juheshun has established a comprehensive customer service standard and complaint handling pro-

cess continuously innovating service models and improving service quality. The complaint handling process covers the

entire workflow including information entry task assignment root cause analysis implementation of corrective meas-

In March 2025 the Quality Inspection Department con- ures and result verification ensuring that every customer feedback item receives timely response and closed-loop res-

ducted a training session for marketing personnel on olution. By periodically reviewing and analyzing feedback data in depth the Company systematically identifies areas

product quality. The training provided a detailed overview

of the inspection items and objectives at each stage of the for improvement across operations and service processes continuously enhancing customer satisfaction and overall

product lifecycle as well as their impact on downstream operational quality.application performance. Through this training marketing

staff enhanced their quality awareness and were able to

accurately relay customer requirements to production and Key performance

quality inspection teams in a timely manner ensuring that

products met customer expectations. During the reporting period the Company received 1 customer complaint and resolved 1 complaint

achieving a 100% complaint resolution rate.Case Standardization Training to Enhance Quality

The Company organized employees to participate in a

training program jointly held by the Qiantang District

Market Supervision Administration of Hangzhou and the

Hangzhou Standards Research Institute focused on using

standardization to improve quality. Through systematic

learning employees further strengthened their aware-

ness of standardization and acquired fundamental stand-

ardization skills.

52 53Juheshun Advanced Materials Co. Ltd. About This Message from About Sustainable Governance: Robust Governance: Integration of R&D and Low Carbon for Green People Orientation:

Customer Complaint Process Customer Satisfaction

Juheshun consistently regards customer satisfaction as a key indicator for measuring service quality. To this end the

Start Company has established and continuously improved systems such as the Customer Satisfaction Management Control Procedure . Through regularly conducted satisfaction surveys the Company proactively collects customer opinions and

feedback analyzes the data and identifies areas for improvement to continuously enhance customer satisfaction.Purchase products Customer Satisfaction Survey Process

Survey and

Customer feedback problem planning: 01 Survey Survey implementation: 02 data statistics: 03

Screen customers for Questionnaires are Summarize the survey

Feedback abnormal quality information satisfaction survey issued and collected 5 results and identify Check the relevant and provide corresponding samples

technical agreements Provide sample

and make the working days later the items required to

and related information (process loss information such Customer Satisfaction be monitoredsigned by the etc.) determine the type of customer

customer complaint and fill in the Customer as chips

Survey Form

Complaint Handling Form

Reviewed and

approval by Reviewed by

competent deputy general manager of Sales

manager Department 06 05 04

Monitor the

Create customer file Customer implementation of

Salesman communicates solutions system review improvement

Judge the problem with customers again and provides measures until the technical support to customers if customer is satisfied

necessary

The Quality Inspection According to the result

Department shall iden- of cause analysis notify

tify the cause according the responsible depart- Key performance

to the product process ments to make rectifica-

data and quality prob- tion and fill in corrective

lem samples and preventive meas- During the reporting period Juheshun distributed 50 customer satisfaction surveys achieving a 98% ures and 8D report

effective response rate with an overall customer satisfaction rate of 96%.The general manager gives the

review results

Salesman replies quality cause to

customer and communicates with

customers to propose a reasonable Customer satisfaction

solution

Data archiving and customer

follow-up usage tracking Problem closed

54 55Juheshun Advanced Materials Co. Ltd. About This Message from About Sustainable Governance: Robust Governance: Integration of R&D and Low Carbon for Green People Orientation:

Responsible Supply Chain Strategy

Juheshun is committed to building a stable transparent and green supply chain system. The Company deepens re- The Company actively identifies and addresses challenges to supply chain stability while exploring new opportunities

source integration and complementary advantages with upstream and downstream partners promotes standardized in the process of sustainable development. It aims to ensure business continuity and compliance while promoting sus-

supplier management and enhances supply chain risk management capabilities contributing to industry upgrading tainable growth across the entire supply chain and creating greater value.and sustainable development.Type of

Risk/ Description of Risk

Probability Extent of Impact Priority Potential Response

Governance Opportunit /Opportunity of Occurrence Impact Duration Ranking Financial Impact Measures

The Company continuously improves its supply chain management system establishing and implementing the Supplier

Management System and Procurement Management System clarifying the division of responsibilities among functional Influenced by changes Closely monitor market

departments and standardizing the development selection management and maintenance of suppliers. This builds in industry policies and trends anticipate market

a stable reliable and high-quality supplier base and continuously optimizes procurement processes by setting quanti- Price raw material price vola- Medium- Increased oper- movements and reason-High Medium High

fiable indicators for detailed steps improving procurement quality and transparency. fluctua- tility which may lead to term ating costs re- ably adjust production tion risk increased production and duced revenue. and procurement plans

Departmental Responsibilities procurement costs for the to mitigate risks posed by Company. market fluctuations.Process Process Process

Supporter Owner Implementer

Establish a diversified

Supply Supply disruptions caused

Production inter- by natural disasters pro- Short- to Increased costs

supplier system to reduce

R&D Center Departmen Manager of Procurement Procurement administrative ruption duction accidents or other Low High medium- High reduced reve-

dependence on a single

staff staff factors affecting the Com- term nue. supplier and mitigate the Quality Inspection Finance Department risk pany’s normal production. risk of supply interrup-Department Department tions.President

The Company continuously develops procurement capabilities through a systematic and professional training mecha-

nism steadily enhancing the professional knowledge operational skills and overall competency of relevant personnel.This deepens employees’ understanding and control of the entire procurement process effectively improving overall Realizing supply chain vis- Build a comprehensive

operational proficiency and integrated management capabilities. Digital ibility and real-time moni- supply chain manage-

transfor- toring through information Medium- Reduced ment system break down

mation technology to improve High Medium to long- Medium management expenses and data silos and achieve

Case Specialized Training on Procurement Cost Reduction opportuni- supply chain transparency term labor costs. end-to-end supply chain ty and collaboration efficien- data visualization and

cy. tracking.During the reporting period the Company organized

a specialized training program on procurement cost

reduction systematically enhancing the cost control

awareness and practical skills of personnel in relevant

positions. The program promoted lean and standard-

ized cost-reduction practices throughout the procure- Promote the establish-Market m e n t o f a d i ve r s i f i e d D e e p e n s u p p ly c h a i n

ment process achieving reasonable optimization of expan- supply chain mechanism Medium- integration with key cus-

procurement costs while simultaneously improving sion by signing strategic co-

Revenue

High High to long- High growth and tomers sign long-term

supply chain operational quality. oppor- operation agreements term profit increase s t rategic cooperat ion with market-advantaged

tunity agreements and stabilize suppliers to jointly explore the core demand base.new markets.

56 57Juheshun Advanced Materials Co. Ltd. About This Message from About Sustainable Governance: Robust Governance: Integration of R&D and Low Carbon for Green People Orientation:

Impact Risk and Opportunity Management Full Lifecycle Management of Suppliers

The Company has established a comprehensive supply chain risk management process rigorously identifying potential The Company has established standardized management policies and strict audit procedures to implement full lifecy-

risks introduced by suppliers. It conducts regular assessments to quantify supplier-related risks in areas such as tech- cle management of suppliers. By setting entry criteria conducting regular on-site evaluations performing performance

nology quality and cost while seeking optimization opportunities to ensure the long-term sustainable development of assessments and facilitating supplier capability improvements the Company ensures that procured products and re-

the supply chain. ceived services are effectively controlled meeting both customer and company requirements.Full Lifecycle Management of Suppliers

Based on the Company’s operational realities potential risks across all supply chain

stages—including raw material supply production processes and logistics—are com- Development

Identification prehensively identified with clear specification of risk sources and manifestations. Demand Accepted The Procurement Department initiates the search for Class A B and C product suppliers

based on the Requisition Form and the Qualified Supplier List .Preliminary The Procurement Department collects and organizes market information according to the

Selection of New

Suppliers Supplier Development Plan screens suppliers that meet the requirements and prepares a

The identified risks are systematically evaluated to analyze their likelihood and im- Supplier Information Survey Form .pact on company operations. Risk priorities are determined to guide subsequent

Assessment management actions. Evaluation and For potential qualified suppliers requiring assessment the Procurement Department organ-Recognition of

New Suppliers izes qualified personnel from the R&D Center Quality Inspection Department and Produc-

tion Department to conduct audits in accordance with the Supplier Evaluation Form .Once samples and initial products pass evaluation and the Analysis Report confirms com-

pliance the Procurement Department completes the New Supplier Application Form at-

taches customer-designated documents along with sample and initial product verification

Based on the assessment results targeted management strategies are formulated materials and submits it for CEO approval. Upon approval the supplier is entered into the

including risk avoidance mitigation transfer or acceptance. Contingency plans are Qualified Supplier List .Management established to ensure the stability and reliability of the supply chain.Daily Manage-

ment of Suppliers For mass-production suppliers the Company conducts regular surveys to assess their pro-

duction capacity and completes the Supplier Capacity Survey Form .Metrics and Goals Performance Eval- The R&D Center Quality Inspection Department Production Department Production Office

uation Manage-

ment of Suppliers and Purchasing Department are responsible for evaluating suppliers in three areas: product quality delivery and business cooperation. The evaluation results are recorded in the Quar-

Metric 2025 terly Supplier Performance Evaluation Form .Performance score ≥ 80%–100%: Audit passed; new suppliers may be approved for on-

Total number of suppliers 13 suppliers boarding and qualified suppliers are confirmed.Performance score ≥ 60% - 79%: Improvement required; new suppliers may be onboarded

Number of suppliers certified under quality management systems 13 suppliers after rectification and qualified suppliers must undergo mandatory corrective actions.Performance score < 60%: Unacceptable; new suppliers may only be onboarded after recti-

Number of suppliers certified under environmental management systems 13 suppliers fication and re-audit and underperforming qualified suppliers are eliminated.Number of suppliers certified under occupational health and safety

management systems 13 suppliers Site Review of The Procurement Department following the Annual Supplier Audit Plan organizes the R&D

Suppliers

Number of suppliers suspended due to non-compliance 0 suppliers Center Quality Inspection Department and Production Department to conduct on-site au-

dits of suppliers. The audit results are recorded in the Supplier Evaluation Form .Number of prospective suppliers rejected due to non-compliance 0 suppliers

Elimination Man-

Total number of suppliers signing integrity agreements 13 suppliers agement of The Procurement Department conducts an annual review based on the results of the Annual

Suppliers Comprehensive Supplier Evaluation Form and records of major issues. Following the review

Coverage rate of supplier integrity agreements 100% underperforming suppliers are removed from the approved supplier list.

58 59Juheshun Advanced Materials Co. Ltd. About This Message from About Sustainable Governance: Robust Governance: Integration of R&D and Low Carbon for Green People Orientation:

Sustainable Supply Chain Transparent Supply Chain

The Company firmly opposes any form of bribery or unfair competition and maintains honest and integrity-based rela-

The Company is committed to building a sustainable supply chain system. While ensuring its own procurement needs tionships with suppliers carriers and contractors. All partners are required to sign the Integrity Agreement strictly pro-

and timely fulfillment it actively guides and encourages suppliers to enhance their sustainable development capabili- hibiting acts such as embezzlement bribery fraud or extortion. Partners must not provide receive or indirectly offer or

ties. Based on international standards such as ISO 14001 the Company advocates and promotes the establishment of accept gifts payments or other improper benefits to induce personnel to violate their duties or seek undue advantag-

management practices by suppliers that align with the ESG framework using ESG requirements as key criteria for sup- es. The Company consciously upholds a regulated and orderly market competition environment working together with

plier selection and evaluation thereby creating a transparent and sustainable supply chain ecosystem. As of the end of partners to foster an honest and trustworthy business ecosystem.the reporting period all raw material suppliers listed in the Company’s approved supplier directory had certifications

for environmental quality and occupational health and safety management systems. Green Supply Chain

The Company deeply implements the concept of sustainable procurement by requiring suppliers to sign the Supplier Focusing on the concept of sustainable development the Company promotes the construction of recycling economy

Code of Conduct which clarifies their responsibilities and obligations in areas such as environmental protection work and formulates green supply chain construction plans to guide supplier selection and raw material procurement. In

safety business ethics and human rights. All partners are encouraged to adopt sustainable production and operational order to ensure the smooth progress of the construction the Company has developed various safeguard measures to

practices to reduce compliance environmental and safety risks working together to build a sustainable supply chain. promote corporate procurement as planned.The Company requires supply chain partners to strictly comply with the RoHS Directive REACH Regulation and the Com-

Supplier Code of Conduct pany’s Prohibited/Restricted Hazardous Substances List and Standards through the signing of the Supplier Agreement

on Non-Use of Hazardous Substances prohibiting the use of environmentally harmful substances. At the same time

the Company has established third-party testing sampling verification and dynamic traceability mechanisms encour-

aging suppliers to simultaneously implement hazardous substance management systems. This ensures that both ma-

Employee Strictly comply with national and local labor laws and regulations safeguard employees’ terial sources and production processes meet green compliance requirements thereby establishing a full-chain green

rights legitimate rights and interests and provide reasonable compensation and benefits. control system from source to end and effectively enhancing the environmental responsibility and sustainable develop-ment capability of the supply chain.Corporate Green Supply Chain Construction Plan

Formulate supplier evaluation standards: Formulate green supplier evaluation standards

covering the environmental protection of raw materials energy consumption in production

Health Implement accident prevention measures provide a safe working environment and pro- process waste treatment and other aspects. Conduct primary evaluation of existing major sup-

and safety tective measures and establish an emergency response mechanism with regular drills. Short-term pliers and establish environmental protection files of suppliers.Release green procurement guidance: The Company has officially released its internal green

procurement guidance which aims to clearly define the environmental criteria and procure-

ment priorities that procurement staff shall follow when selecting raw materials and products.Supplier training and cooperation: Based on the evaluation results we will provide training and

Standardize the management of hazardous substances and waste implement pollution technical support to suppliers that fail to meet the requirements helping them improve their production process and improve environmental protection. We establish long-term strategic

Environment prevention measures and prioritize upstream partners who protect the environment partnerships with quality suppliers to jointly conduct green R&D projects.through measures such as reducing packaging materials and using recyclable materials. Medium-term Green supply chain information sharing platform construction: Establish an information

sharing platform to exchange environmental protection information new technologies and

new policies with suppliers in real time promoting the green development of the entire

supply chain.Comprehensive green transformation of supply chain: Ensure that the entire supply chain real-

Ethical Comply with international national and local laws and regulations; strictly prohibit cor-

izes green transformation from raw material procurement manufacturing product transporta-

standards ruption bribery and other illegal or unethical behaviors. Any violation will result in imme-

Long-term tion to sales and use and the whole process is in line with recycling economy and environmen-

diate termination of cooperation. tal protection requirements. We will encourage upstream and downstream enterprises in the supply chain to jointly formulate and implement recycling economy development strategy.Responsible Supply Chain

Comply with laws and regulations related to quality safety environment and health as Juheshun consistently upholds the concept of responsible supply chain management deeply integrating human rights

Laws and well as the management requirements of loading and unloading locations and assume protection and sustainable development principles throughout the entire upstream and downstream chain. The Com-

regulations corresponding responsibilities regarding quality safety environmental protection human pany strictly regulates supplier onboarding and routine evaluations with a focus on core issues such as labor rights

rights and labor relations. occupational health environmental protection and work safety encouraging partners to simultaneously enhance their

sustainable management capabilities. Through collaborative empowerment and mutual oversight Juheshun works to-

gether with upstream and downstream partners to build a compliant and responsible supply chain system effectively

safeguarding the legitimate rights and interests of all parties and supporting the stable and sustainable development

of the industry chain.

60 61Juheshun Advanced Materials Co. Ltd. About This Message from About Sustainable Governance: Robust Governance: Integration of R&D and Low Carbon for Green People Orientation:

Equal Treatment of Small and Medium-Sized Enterprises Protection of Information Security

Juheshun strictly complies with laws and regulations such as the Law of the People’s Republic of China on the Promo- In daily cybersecurity operations Juheshun employs advanced technical measures such as data encryption firewalls

tion of Small and Medium-sized Enterprises the Regulations on Ensuring Payment to Small and Medium-sized Enter- and intrusion detection systems. The Company also conducts regular training and drills to enhance employees’ famil-

prises and the Interim Regulations on Enterprise Information Disclosure adhering to the principles of equality and mu- iarity with information systems improve their capability to respond to security incidents and reduce the potential im-

tual benefit while respecting and treating small and medium-sized enterprise (SME) partners fairly. The Company has pact of data security events fully safeguarding data security and business continuity. During the reporting period the

established clear support policies for SMEs in procurement collaboration and payment processes ensuring that SMEs Company adhered to strict confidentiality principles rigorously controlling the access storage transmission and use

enjoy equal opportunities in competition and providing them with tailored assistance and guidance. By leveraging its of critical information. No major information security incidents occurred effectively ensuring the stable operation of the

own strengths Juheshun empowers SMEs and promotes the healthy and orderly development of the industry. During Company’s business.the reporting period the Company maintained long-term and stable cooperative relationships with numerous SMEs

with no overdue payments to any SMEs.Key performance

Industry Collaboration

Number of data security-related training sessions: 1；Total duration of data security-related training: 2 hours

Juheshun fully leverages the pivotal role of intermediates in bridging upstream and downstream segments. By support-

ing upstream capacity expansion and extending the new materials industry chain to downstream chemical terminals

the Company achieves an extended-chain layout highlighting the value and synergy advantages within the industry

chain. At the same time Juheshun actively participates in the formulation of industry standards and conducts R&D

collaborations with universities promoting technological advancement and the industrialization of research achieve-

ments. By leveraging its industry layout the Company empowers the industry ecosystem to reduce costs and improve Case Industrial Data Security Classification and Grading System Deployment Training

efficiency laying a solid foundation for high-quality development through industry collaboration.In response to the call from the Qiantang District Bureau of Economy Informatization and Science and Technol-

ogy in Hangzhou Juheshun organized relevant personnel to attend the Industrial Data Security Classification and

Information Security Grading System Deployment Training on November 25 2025. Through system-based training sessions and on-site Q&A for data entry participants gained an in-depth understanding of the requirements for data security clas-

sification and grading in the industrial sector. This further enhanced the Company’s data security management

Juheshun attaches great importance to information security and privacy protection strictly complying with laws and capabilities and laid a solid foundation for the subsequent implementation of data security protection and com-

regulations such as the Cybersecurity Law of the People’s Republic of China the Data Security Law of the People’s Re- pliance management.public of China and the Personal Information Protection Law of the People’s Republic of China . The Company actively

promotes the construction of an information security management system and rigorously implements measures to en-

sure the security of information and data.Information Security Management System

To ensure the secure and stable operation of information systems Juheshun has established a comprehensive infor-

mation security management framework. The General Manager leads and coordinates strategic decision-making for

informatization safeguarding cybersecurity and system stability throughout project development and implementation.The Office as the information management department is responsible for project management system operation and

maintenance and security assurance while each department’s informatization lead collaborates to advance systemconstruction and maintenance. This forms a full-chain control system of “decision-making – execution – implementa-tion” effectively supporting the secure and stable operation of information systems. At the same time the Company

has formulated the Informatization Management System to standardize informatization management practices and

ensure the security stability and efficient operation of information systems.Information Security Management Structure

General Manage Informatization Departmental Management Department Informatization Leads

Responsible for leading the Responsible for managing the Responsible for collecting and

Company’s informatizat ion Company’s informatization projects providing feedback on their de-

management making decisions system operation and maintenance partment’s informatization needs cooperating with the Informati-

on informatization strategic security assurance and training. zation Management Department

planning policy formulation Ensures the rational allocation and to complete the construction use

and related matters. effective utilization of informatiza- and maintenance of departmental

tion resources. The Company’s cur- information systems and ensuring smooth system operation within

rent informatization management the department. The head of each

department is the Office. functional department serves as the

departmental informatization lead.

626304

Low Carbon for Green

Future: Painting

a New Ecological

Landscape

Juheshun integrates the concept of green and environmental

protection into every aspect of its production and operations.The Company actively addresses the challenges of climate

change transforming environmental responsibility into a

driving force for development. It vigorously promotes energy

conservation and emissions reduction continuously reduces

pollutant emissions lowers water and energy consumption

advances resource recycling and reuse and protects biodiversi-

ty thereby contributing through concrete actions to the building

of a beautiful China.Contents of This Section

Address Climate Change Environmental Compliance

Resource Management Managemen

and Recycling Ecosystem and Biodiversity

Conservation

SDG Addresse

64 65Juheshun Advanced Materials Co. Ltd. About This Message from About Sustainable Governance: Robust Governance: Integration of R&D and Low Carbon for Green People Orientation:

Address Climate Change Strategy

Juheshun is firmly advancing the green and low-carbon transformation of its operations while continuously strengthen- In the face of the challenges posed by climate change Juheshun recognizes that accurately identifying climate-related

ing its capacity to address climate-related risks. With reference to the framework of the Task Force on Climate-related risks and opportunities is key to an effective response. The Company closely follows industry development trends and

Financial Disclosures (TCFD) the Company has conducted a systematic identification and assessment of climate-related in light of its own business layout and characteristics systematically identifies potential climate-related risks and op-

risks and opportunities from four aspects—governance strategy impact and risk and opportunity management as well portunities. It also assesses their expected time horizons and potential financial impacts.as metrics and targets—providing guidance for the Company’s further climate actions. Type of

Risk/ Description of Risk

Probability Extent of Impact Priority Potential Response

Opportunit /Opportunity

Occurrence Impact Duration Ranking Financial Impact Measures

Governance

Extreme weather events

To comprehensively advance its sustainable development vision Juheshun has continuously improved and established (such as floods and se-vere cold) may affect the Direct production Improve emergency re-

a climate governance structure with clear hierarchy and well-defined responsibilities forming a four-tier climate gov-

ernance framework of “decision-making – leadership – management – execution.” At the decision-making level the Climate

normal operat ions of losses; supply sponse plans for all pro-

disaster production bases located Medium High Short- High chain disruptions duction bases; maintain

structure consists of the Board of Directors and its Strategic and Sustainable Development Committee. At the leadership risk in Shandong Hunan and term m a y i n c r e a s e safety stock of key raw

level an Environmental Protection Leadership Team has been established and is headed by the General Manager re- other regions as well as procurement and materials; purchase insur-

sponsible for making decisions on and arranging key environmental protection initiatives and activities. At the manage- the logistics and trans- logistics costs. ance for relevant assets.portation of raw materials

ment level an Environmental Protection Daily Management Team has been set up to carry out routine environmental and products.inspections and related tasks reporting directly to the leadership level. At the execution level the Safety and Environ-

ment Protection Department oversees and coordinates relevant work while business departments and production

workshops cooperate in implementation providing solid support for the Company’s low-carbon transition and sustain- With increasingly stringent

able development. domestic environmental

Strictly comply with en-

and low-carbon policies To meet low-car- vironmental regulations;

production activities are b o n r e q u i r e - continuously reduce en-

subject to stricter require- ments the Com- ergy consumption per

Climate Change Governance Structure Policy ments. If Juheshun fails Medium- pany needs to unit of product through

and le- to meet new emission High High to long- High increase environ- process improvements

gal risk reduction standards in a term mental protection and equipment upgrades;

timely manner the Com- i n v e s t m e n t s conduct carbon inven-

pany may face substantial leading to higher tories and promote the

fines and the risk of losing

market share due to pro- operating costs. low-carbon transforma-

Decision-making Board of Directors and the Strategic and duction restrictions. tion of products.level Sustainable Development Committee

The expansion of emerg-

Responsibilities: Led by the ing markets such as new

Environmental General Manager responsible energy vehicles and the Enhancement Integrate green concepts Green mar- Medium- into R&D and design to

Leadership level Protection for coordinating the formula- low-alt i tude economy tion of carbon neutrality tar- ket oppor- is driving increased de- High High to long- High

of overall gross

profit margin and ensure that products have Leadership Team gets and climate adaptation tunity mand for environmentally term brand value. a positive environmental

strategies. friendly materials such as impact.lightweight nylon.Environmental Responsibilities: Responsible

Management level Protection Daily for implementing emission reduction measures and cli-

Management Team mate management.Continuously optimizing

energy water and mate- Enhance the use of clean

Safety and Environment rial consumption per unit Resource Short-to Increase gross energy optimize the ener-of product in processes

Protection Department Responsibilities: Conduct car- margin and gy structure of production

Execution level Business Departments bon data monitoring and be

efficien- such as polymerization High Medium medium- High

cy spinning and chipping term reduce operating and continuously explore

and Production responsible for daily imple- directly reducing produc- costs. efficiency potential in each

Workshops mentation and response. t ion costs and carbon process stage.footprint.

66 67Juheshun Advanced Materials Co. Ltd. About This Message from About Sustainable Governance: Robust Governance: Integration of R&D and Low Carbon for Green People Orientation:

Impact Risk and Opportunity Management Resource Management and Recycling

In its climate change management efforts Juheshun has established a comprehensive risk management process to Guided by the principle of sustainable development Juheshun deeply integrates the concept of resource conservation

identify assess and respond to various risks and opportunities that may affect the Company’s development. throughout its operations. By adopting advanced energy-saving technologies and equipment the Company effectively

reduces production energy consumption while simultaneously constructing water recycling systems to improve water

use efficiency and systematically promote intensive resource utilization. In the field of circular economy Juheshun ac-

Identifi- Assess- Re- Supervi- tively implements waste recycling and resource recovery converting recyclable materials from the production process

cation ment sponse sion into high-value resources. This approach not only reduces environmental impact but also enhances economic benefits

and operational resilience supporting the Company’s green and low-carbon transformation.Based on macro and Each identified risk or F o r a s s e s s e d c l i - Juheshun continu-

i n d u s t r y p o l i c i e s opportunity is eval- mate-related risks ously tracks moni- Energy Utilization

stakeholders’ con- uated in terms of its t h e C o m p a n y d e - tors and manages

cerns and regulatory primary climate-re- v e l o p s r e s p o n s e the progress of cli- Juheshun strictly complies with the Energy Conservation Law of the People’s Republic of China and other relevant pol-

requi rements the la ted dr ivers po- plans by considering m a t e - re l a t e d r i s k icies and regulations. The Company has formulated internal policies such as the Energy Saving and Consumption Re-

Company conducts a tential key financial risk-return balance r e s p o n s e s w h i l e duction Management System and the Energy and Resource Management System incorporating energy conservation

comprehensive and impacts and the ex- social responsibility regularly optimizing and consumption reduction into the core aspects of its corporate strategy and daily operations.systematic identifica- pected time horizon and other factors risk control mecha-

tion of the risks and of those impacts. ensuring the stable nisms and manage- Energy Management System

opportunities it faces. development of the ment effectiveness Juheshun has established a three-tier energy management network of “company – departments – employees” to

Company. in daily operations to ensure responsibilities are implemented at every level. In addition an Energy Conservation Committee led by the Pro-

strengthen resilience duction Department Manager and composed of departmental leaders has been set up to comprehensively coordinate

against climate risks. energy-saving planning supervise implementation and conduct performance evaluations ensuring standardized and

efficient energy management. During the reporting period the Company obtained ISO 50001 Energy Management Sys-

tem certification and regularly undergoes supervision and audits by third-party organizations to ensure the system’s

continued effective operation providing a foundation for improving energy management performance.Metrics and Goals Energy Management Goals

To further improve energy utilization efficiency and fulfill its sustainable development commitments Juheshun has es-

tablished clear phased energy management targets at the strategic planning level.Juheshun has reviewed and is gradually establishing a climate action metrics system closely aligned with its business

development. The Company is committed to reducing carbon emissions in production and operational processes Short-term goals Medium-term goals Long-term goalsthrough clear and well-defined emission reduction pathways (specific carbon reduction actions are detailed in the “Re-source Management and Recycling” section) contributing to the national “dual-carbon” goals. At the same time Ju- Energy efficiency improvement and System enhancement and intelli- Renewable energy and low-carbon equipment upgrades gent management development

heshun regularly engages qualified third-party professional institutions to conduct systematic audits and verification of Identify high-consumption pro- Establish dedicated positions and Build photovoltaic and wind power

full-scope greenhouse gas emissions producing an annual Greenhouse Gas Emissions Verification Report . This ensures cesses and retire outdated equip- improve the management system facilities to increase the proportion

the objectivity accuracy and transparency of carbon emission data and provides a solid data foundation for develop- ment Deploy intelligent systems for pre- of green electricityImplement energy-saving technol- cise data-driven control Explore multi-energy complemen-

ing scientifically based carbon reduction pathways. ogy upgrades tary solutions such as geothermal energy to promote low-carbon

During the reporting period Juheshun’s greenhouse gas emissions were as follows: transformation

Emission Category Unit 2025 Metric Unit 2025

Scope 1 GHG emissions tCO2e 24665.75 Comprehensive energy consumption tce 52159.87

Natural gas consumption m3 11407768

Scope 2 GHG emissions tCO2e 131414.52

Electricity Consumption kWh 115197909

Total GHG emissions (Scope 1 + Scope 2) tCO2e 156080.27

Steam consumption ton 213001.56

Reduced carbon dioxide emissions tCO2e 6859.80 Electricity cost savings from photovoltaic

power generation RMB 10000 538.10

GHG emission intensity tCO2e/RMB 1 million 28.26 Photovoltaic power capacity kWh 8355419.60

68 69Juheshun Advanced Materials Co. Ltd. About This Message from About Sustainable Governance: Robust Governance: Integration of R&D and Low Carbon for Green People Orientation:

Actions for Energy Conservation and Emission Reduction In the transportation segment Changde Juheshun has taken the lead in promoting electric vehicles (EVs) and

To ensure the effective implementation of its energy management targets Juheshun has established a dual-driven building supporting infrastructure. By encouraging

implementation system centered on refined operational control and strategic technological investment. Through stand- employees and customers to use EVs and strategically

ardized and regulated daily energy management the Company strengthens the foundation of energy efficiency at a installing charging stations in production workshops

granular level. At the same time by making forward-looking resource investments Juheshun vigorously promotes the warehouses and main office areas the Company pro-

application of clean energy such as photovoltaic power and implements technological upgrades in key processes sys- vides convenient and safe charging support. This initiative not only reduces reliance on traditional fuel vehicles and

tematically driving energy structure optimization and overall efficiency improvement. associated exhaust emissions at the source effectively

Daily Energy Management lowering greenhouse gas emissions from commuting and

logistics but also demonstrates Juheshun’s commitment New Energy Charging Station of the Company

to corporate green responsibility contributing to low-car-

Improve load efficiency: Optimize production scheduling to ensure equipment bon development in the regional transportation sector.Production equipment maintains reasonable utilization rates strictly avoiding idle running or no-load operation. Energy-Efficient Technology Upgradingoperation management Implement start-stop management: During non-production periods or standby Juheshun regards technological innovation as the core driving force for achieving deep energy savings and carbon re-

promptly shut down unused production equipment and power sources. duction. The Company not only focuses on improving efficiency in daily operations but also commits to implementing

fundamental and systematic technology upgrade projects. These initiatives aim to overcome energy efficiency bottle-

Prevent leakage and waste: Inspect pipelines valves joints and tools daily and necks in traditional processes and explore new pathways for green production.repair or replace any air leaks immediately.Compressed air system Standardize usage: Compressed air must not be used for non-production pur-

Case Triple-Effect Waste Heat Steam Recovery System – Driving Dual Improvements in Production Efficiency and management poses such as cleaning personnel or floors. Product Quality

Strengthen end-point control: After completing operations pneumatic tools must

be promptly turned off and supply valves confirmed fully closed. To address energy waste in nylon polymerization Juheshun developed and installed a triple-effect waste heat

Efficient resource utilization: In winter the Company utilizes the condensate water steam extraction and water reconcentration system. The system recovers and reuses waste heat reducing steam

recovery system to achieve efficient utilization between water resources and ther- consumption and achieving efficient in-system energy utilization. Simultaneously it reconcentrates the extracted

Air conditioning and mal energy. water effectively lowering the water content in the concentrate thereby improving product quality and polymeri-

ventilation system Standardize usage behavior: Follow the “turn off when leaving” principle; doors zation efficiency.management and windows must be closed when the air conditioning is on to ensure efficiency.Regular maintenance: Clean fan coil units filters and other components on

schedule to ensure continuous and efficient system operation.Case Application of Variable Frequency Drive Technology – Achieving Energy Savings Efficiency Gains and Operational Optimization

Optimization of Energy Structure

To accelerate the green transformation of its energy struc- To reduce production energy consumption and improve equipment reliability Juheshun Luhua installed variable

ture Juheshun continues to vigorously advance distribut- frequency drive (VFD) control systems on key motor-driven equipment. By dynamically adjusting motor speeds

ed photovoltaic (PV) projects and the substitution of tradi- to precisely match output power with production loads the system provides electricity on demand enhancing

tional energy in transportation. overall energy efficiency. At the same time it reduces equipment failures caused by frequent start-stop cycles and

As of now multiple phases of the Company’s distributed overload operation thereby extending the service life of the equipment. This approach achieves both energy sav-

PV projects have been completed. At the headquarters ings and optimized operational performance.base Phase I and Phase II have installed a total of 8680

m2 of PV panels across more than 13000 m2 of rooftop

space. The electricity generated is fully integrated into the

production system effectively reducing reliance on the

traditional power grid and achieving significant electricity

cost savings and environmental benefits.At the same time Changde Juheshun is actively promoting

the application of clean energy. Phase I a 1 MW photo-

voltaic power station has been operating stably with an

annual generation of approximately 1 million kWh. Phase

II a 1.6 MW project was successfully connected to the

grid in the first quarter of 2025 with an expected annual

generation of about 1.6 million kWh. Together the two PV Power Generation Facilities of Juheshun

phases are projected to generate approximately 2.6 mil-

lion kWh per year continuously providing green energy

for the Company’s operations and effectively supporting

its low-carbon development.

70 71Juheshun Advanced Materials Co. Ltd. About This Message from About Sustainable Governance: Robust Governance: Integration of R&D and Low Carbon for Green People Orientation:

Energy Management Training

Case Condensate Water Recovery System – Achieving Dual Circulation of Water and Heat Resources with Double

Juheshun integrates the concepts of energy conservation and emission reduction into its corporate culture. Through Benefits

regularly organized seminars on-site practical guidance and other activities the Company provides training for all

employees to enhance their awareness and hands-on capabilities in energy conservation and emission reduction sup- By introducing a condensate water recovery system Juheshun has realized efficient coordinated utilization of

porting the effective implementation of energy-saving measures. water and thermal energy. The system can recover approximately 112000 cubic meters of condensate water

annually which after treatment is reused in production cooling heating and insulation processes significantly

Water Resources Management reducing fresh water intake.At the same time the recovered thermal energy effectively lowers steam and electricity consumption. Following

Juheshun strictly complies with the Water Law of the People’s Republic of China the Water Conservation Regulations implementation wastewater discharge has decreased by about 30% saving water treatment costs extending

and other relevant laws and regulations actively carrying out water resource management. By setting clear water-sav- equipment lifespan and enhancing production stability. The project has achieved notable economic and envi-

ing targets and implementation pathways the Company has established a tiered approach—from leak prevention at ronmental benefits.the source unconventional water utilization to deep wastewater reuse—comprehensively promoting water conser-

vation and efficient use across production operations and daily office activities. This has continuously driven a steady

reduction in water consumption intensity. During the reporting period the Company did not cause any significant direct

or indirect impact on water resources due to water intake or consumption nor did it encounter any difficulties in water

acquisition.Water Resources Management Goals

Short-Term Goals Long-Term Goals

Inspect and update water recycling facili- Construct reclaimed water treatment fa-

ties repairing any leaks. cilities for deep purification of production

Install water meters to monitor water us- wastewater and domestic sewage.age in real time. Reuse treated water for production pro-

Continuously optimize small-scale rain- cesses with lower water quality require-

water collection systems within the plant ments and for facility cleaning within the

for landscaping irrigation. plant.The Company implements a series of control measures in daily operations and production to strengthen water man- In addition the Company actively organizes water-saving initiatives posting notices on water conservation in office

agement and reduce water waste. Recycling water is treated as a key initiative: by using reclaimed water equipment areas and encouraging employees to participate in water resource protection efforts thereby further enhancing staff

and technologies constructing cooling towers and other measures Juheshun reduces the intake of fresh water at the awareness of water-saving practices.source protecting freshwater resources.Water Resource Management Measures Metric Name Unit 2025

Total water consumption ton 63914753.00

Management Mechanisms Process Monitoring

Freshwater withdrawal volume ton 668315

The Company implements a categorized water Establish a daily water use statistics

use responsibility system with separate lines for and anomaly analysis mechanism Water consumption intensity per unit of ton/RMB 1 million in revenue 11571.08

domestic and production water. The administra- to promptly identify causes of waste. revenue

tive and production technology departments are

respectively responsible for operation and main- Conduct regular pipeline inspec- Recycled water consumption ton 63246438

tenance prohibiting unauthorized disassembly to tions to proactively detect and repair

ensure pipeline safety. leaks minimizing hidden losses. Recycled water ratio % 95.47

Full implementation of quota-based and planned

water use management encouraging each unit Wastewater reuse rate % 24.66

to maximize the use of reusable water sources.Achieve 100% closed-loop recycling of extracted

water on production lines.

72 73Juheshun Advanced Materials Co. Ltd. About This Message from About Sustainable Governance: Robust Governance: Integration of R&D and Low Carbon for Green People Orientation:

Recycling Economy Management Goals and Results of Raw Materials and Packaging Materials

Juheshun adheres to the recycling economy principles of “reduce reuse recycle” integrating efficient resource utili- Management Goals Management Goals of

zation throughout the entire production process. The Company has established comprehensive management systems of Raw Materials Packaging Materials Management Results

related to the recycling economy and built a “resources – products – recycled resources” resource recycling framework.This approach continuously enhances resource utilization efficiency reduces resource consumption and waste gener- Ensure raw material Ensure packaging quality material quality Cost control

ation from the source and promotes the implementation of recycling economy practices through institutionalized and

standardized management supporting the Company’s green low-carbon and high-quality development. Optimize inventory Optimize packaging

management design Quality improvement

Juheshun Recycling Economy Safeguards Reduce procurement Reduce packaging

costs costs Efficiency improvement

Improve material Promote green Environmental

Set up a special leadership team utilization rate packaging contribution

This team is headed by corporate senior leader and the heads of all departments are mem-

bers responsible for the formulation promotion and supervision of the recycling economy

target plan Key performance

Enhance employee training Number of pallets used for materials: 294011;Number of packaging bags used: 7108553

Regularly organize employees to participate in knowledge and skills training related to re-

cycling economy enhance employees’ environmental protection awareness and participa-

tion

Recycling and Reuse

Increase fund input in recycling economy field Juheshun actively leverages innovative processes and technological upgrades to recover materials during production

and recycle packaging materials minimizing resource consumption and waste generation.Special funds are set for key links such as technology R&D equipment renewal and project

construction. Meanwhile actively strive for government support funds and preferential poli-

cy support

Establish an assessment mechanism

Material reuse Packaging reuse

Incorporate the completion of recycling economy targets into the performance assessment

system of departments and employees. Departments and individuals with outstanding per- Enhance the capability for produc- Optimize the packaging recycling

formance will be given honors and substantial rewards while strict accountability mecha- tion material recycling by optimizing system by actively reducing the use

nisms will be implemented for those who fail to complete the targets production processes and updating of new packaging materials imple-

technologies enabling efficient menting initiatives such as wooden

recovery and circulation of materi- frame reuse programs reusable

als within production reducing raw plastic pallets for shipments and

material waste and external de- converting tonnage packaging to

Standardized Material Management pendency. container bags achieving pack-

aging reduction and reuse across

Juheshun has established the Management Goals and Results of Raw Materials and Packaging Materials clearly de- multiple stages.fining management objectives for raw and packaging materials. By optimizing inventory management and packaging

design the Company reduces material consumption and improves material utilization. This approach not only achieves

effective inventory management but also minimizes negative environmental impacts.

74 75Juheshun Advanced Materials Co. Ltd. About This Message from About Sustainable Governance: Robust Governance: Integration of R&D and Low Carbon for Green People Orientation:

Green Office Governance

Juheshun actively promotes green office practices with full employee participation and has implemented a series of ini- Juheshun has established the Environmental Management System Procedural Documents of the Environmental Manage-

tiatives to minimize resource consumption reduce environmental impact and create a low-carbon office environment ment System and Factory Waste Management System forming a clear three-tiered environmental governance structure with

continuously advancing energy savings cost reduction and efficiency improvement. well-defined responsibilities. The Environmental Protection Leadership Team oversees overall planning implements national

environmental policies and regulations and makes decisions on key environmental initiatives. The Environmental Protection

Daily Management Team is responsible for routine environmental inspections and coordinating responses to emergency envi-

01 02 03 ronmental incidents. The Safety and Environment Protection Department as the core executing and supervising unit handles specific tasks such as wastewater treatment environmental records management and daily inspections. This three-tieredApply the principle of “use For devices equipped with Before leaving the workplace system features clear division of responsibilities and coordinated interaction forming a closed loop from decision-making andat the end of the day or for management to execution thereby establishing a robust ecological and environmental protection framework for the Compa-when needed power off s leep or energy-saving

extended periods employees ny. (The governance structure described above applies to the management of “Environmental Compliance” “Waste Man-when away” for commonly modes preset and enable

used devices such as com- automatic energy-saving are required to check andagement” and “Pollutant Emissions”topics.)

puters printers and fax ma- settings to minimize standby completely turn off all per- As of the end of the reporting period the Company had obtained ISO 14001 Environmental Management System certification.chines; time and reduce unneces- sonal devices and auxiliary equipment eliminating elec- Environmental sary energy consumption; tricity consumption outside of Protection Organize the implementation of national provincial municipal

working hours at the source. Organizational

Structure and administrative committee’s policies laws and regulations on environmental protection

Plan arrange inspect summarize and evaluate environmental

Environmen- protection work

tal Protection

Environmental Compliance Management Leadership Make decisions and arrangements for important environmental Team protection work and activities throughout the CompanyJuheshun adheres to the environmental policy of “low carbon and energy saving compliance with laws environmentalprotection and continuous improvement” continuously reviewing and improving environmental management systems Responsible for corporate environmental protection daily

across all operational processes. The Company integrates environmental compliance requirements into every stage of Environmental Protection inspection

production and operations establishes a standardized environmental management system and steadily enhances its Daily Management Team Coordinate and deal with corporate environmental

environmental governance and green development capabilities. emergencies

Principles of Environmental Protection Management

Corporate environmental protection supervision

department responsible for corporate wastewa-

01 Environmental protection facilities shall be designed constructed and put into use

ter treatment

Safety and Environment Protection Establish environmental protection archives and

simultaneously with production facilities Department record the results of each sampling monitoring

and inspection

Urge all departments and workshops to properly

02 Environmental protection facilities shall be regularly maintained checked and re-

clean the rain wells and sewage wells

paired to ensure their normal operation

Environmental Management System Certificates

03 The operation of environmental protection facilities shall comply with national and local environmental regulations and standards

76 77Juheshun Advanced Materials Co. Ltd. About This Message from About Sustainable Governance: Robust Governance: Integration of R&D and Low Carbon for Green People Orientation:

Strategy Impact Risk and Opportunity Management

The Company actively monitors and identifies risks and opportunities in environmental management analyzes their

potential financial impacts on the business and develops corresponding mitigation and response measures. Risk Identification

The Company has established the Risk Identification Assessment and Control Procedures to standardize the processes

for hazard identification risk identification assessment and control. Regular reviews were conducted on the adequacy

Type of Probability appropriateness and effectiveness of risk factor identification and control measures. In addition the Company has de-

Risk/ Description of Risk of Extent of Impact Priority Potential Response /Opportunity Impact Duration Ranking Financial Impact Measures veloped a Risk Source Classification and Control List to implement tiered management and control of risk sources that Opportunit Occurrence may cause environmental pollution.Optimize treatment pro- Environmental Impact Assessment

Improper management of cesses in advance for wastewater exhaust gas The Company has prepared the Environmental Risk Assessment Report and strictly implements the environmental im-hazardous waste or emer-

Opera- gency response to envi- and solid waste generated pact assessment system for construction projects. It ensures that environmental protection facilities and the main pro-

tional ronmental incidents (e.g. Low High Short- High Increased costs by new production capac- ject are designed constructed and put into operation simultaneously in accordance with the “three simultaneities”

risk chemical spills fires) may term ity; expand environmental treatment facilities to en- principle. Environmental impact assessments for new expanded or upgraded projects are conducted in compliance cause ecological pollution sure both total emissions with legal requirements to ensure that environmental protection measures during project implementation meet regula-and reputational damage. and pollutant concentra- tory standards.tions meet standards.Emergency Management

Establish a real-time envi- The Company strictly adheres to the Law of the People’s Republic of China on Emergency Response and the Interim

ronmental policy tracking Measures for the Management of Emergency Plans for Environmental Incidents and has established internal systems

Increasingly stringent en- mechanism prompt ly including the Emergency Response Plan for Environmental Incidents and Regulations on Pollution Accident Emergency

Com- vironmental regulations interpret new regulations Response . These documents define emergency management requirements the responsibilities of emergency organi-

pliance raise compliance require- Short- to on discharge permits and zations the emergency command structure and response procedures. Through these measures the Company compre-

and m e n t s fo r h a z a rd o u s High High medium- High Increased costs carbon emission manage-

policy waste disposal discharge term ment and develop an im- hensively enhances its capability to handle sudden environmental incidents and strengthens overall emergency man-

risk permits and carbon emis- plementation checklist to agement effectively safeguarding the ecological environment and resource security.sion management. ensure company policies The Company has established a comprehensive emergency response organization for environmental incidents cen-

are updated in line with

local requirements. tered on an Emergency Command Center and supported by multiple specialized emergency teams forming a uni-

fied command and coordinated operational structure. The General Manager serves as the Chief Commander of the

Emergency Command Center fully responsible for organizing decision-making and overall command of emergency

response and rescue operations. The Production Department Manager acts as Deputy Chief Commander assisting the

Assign dedicated per- Chief Commander in emergency coordination and communication overseeing on-site incident response and leading

sonnel to review policies the post-incident evaluation and review to continuously improve the emergency management system.Access to subsidies and on green manufacturing

Policy op- tax incentives for green Short- to energy saving emission manufacturing energy High Medium medium- High Reduced costs reduction and low-car- Emergency Response Organization for Environmental Incidentsportunity saving and emission re- term bon transformation pro-

duction. actively apply for eligible

programs and maximize Chief Commander

policy support benefits.Deputy Chief

Commander

Techno- Developing green polym- Promote the industriali-

logical erization processes and Medium- Increased reve- zation of R&D outcomes

innova- bio-based nylon materials High Medium to long- High nue to establish technological to reduce environmental

tion term barriers and core compet-impact. itive advantages.

7879

Environmental Moni-

toring Team

Supplies Support

Team

On-Site Security

Team

Medical Rescue

Team

Emergency Repair

Team

Communication Liai-

son TeamJuheshun Advanced Materials Co. Ltd. About This Message from About Sustainable Governance: Robust Governance: Integration of R&D and Low Carbon for Green People Orientation:

The Company organizes emergency drills covering various types of environmental incidents such as chemical spills in

accordance with the type and content of its emergency response plans and actual operational conditions. These drills Metric Unit 2025

aim to enhance employees’ response speed and practical handling skills while continuously improving the plans to

strengthen overall emergency management capabilities. Total investment in environmental protection RMB 10000 1149.63

Environmental technology renovation

investment RMB 10000 105.76Case Hazardous Chemicals Spill Drill

Pollution discharge tax paid RMB 9557.26

In October 2025 the Company organized an emergency drill simulating a hazardous chemicals spill. The exercise

covered all key stages including early warning response actions and resource allocation followed by a compre- Number of violations of environmental laws case 0

hensive evaluation and debrief. The drill enhanced the plant’s incident prevention and control capabilities safe- and regulations

guarded employee health and safety and ensured rapid response in the event of an actual incident effectively Amount of penalties due to environmental

limiting potential losses environmental impact and social consequences. incidents RMB 10000 0.00

Environmental Training

To ensure employees pay equal attention to environmental risks and production safety the Company regularly organ-

izes environmental protection training sessions. These trainings enhance employees’ environmental awareness and

sense of responsibility guide them to consciously comply with environmental regulations in daily work actively partic-

ipate in company environmental initiatives and effectively integrate environmental requirements throughout the pro-

duction process.Case Specialized Training on Hazardous Waste

In June 2025 the Company conducted specialized hazardous waste training in three phases covering key mod-

ules such as laws and regulations hazard management internal procedures and safety awareness. The train-

Metrics and Goals ing effectively enhanced all employees’ environmental safety literacy regarding hazardous waste strengthenedthe Company’s hazardous waste management foundation and achieved the training objectives of “learningTo further strengthen the implementation of environmental protection and consolidate the ecological foundation for through training applying through practice and raising awareness through warnings.”

the Company’s sustainable development the Company has established comprehensive environmental compliance

management targets. The completion of these targets and indicators is regularly monitored to ensure the effective op-

eration of the environmental management system and to continuously uphold the principles of ecological and environ-

mental stewardship.Environmental Goals 2025 Goal Achievement/Progress

Noise compliance emission Achieved

Incorporation into sewage treatment system with a standard

higher than the approval one to save social public resources Achieved

No chemical leakage or explosion accident Achieved Metric 2025

Exhaust compliance emission Achieved Environmental training sessions 27 sessions

No fire incidents Achieved Participants in environmental training 699 participants

Various wastes shall be reasonably classified and disposed in

accordance with legal requirements Achieved Total hours of environmental training 33.00 hours

80 81Juheshun Advanced Materials Co. Ltd. About This Message from About Sustainable Governance: Robust Governance: Integration of R&D and Low Carbon for Green People Orientation:

Waste and Emissions Management Waste Gas Management

The Company has established the Waste Gas Management System and Waste Gas Prevention and Control Procedures

The Company strictly complies with the Air Pollution Prevention and Control Law of the People’s Republic of China Wa- to implement precise control over pollutants generated during production including fugitive emissions of toxic haz-

ter Pollution Prevention and Control Law of the People’s Republic of China and Law of the People’s Republic of China ardous odorous gases and dust. An accompanying online waste gas monitoring system has been deployed to contin-

on the Prevention and Control of Environmental Pollution by Solid Waste among other relevant laws and regulations. uously track key parameters such as emission concentration and flow rate ensuring stable compliance with emission

It has established the Three-Waste Management Measures to implement standardized and refined management and standards.disposal of wastewater waste gas boundary noise and solid waste generated during production and operations.Waste Gas Pollution Prevention and Control Measures

Wastewater Management

The waste gas generated in the reactor in the workshop is classified into organic

The Company strictly complies with relevant laws regulations and standards and has formulated the Wastewater waste gas and inorganic waste gas which shall be collected by pipelines and con-

Management System Wastewater Treatment Control Procedures and Sewage Treatment Station Emergency Response nected to the corresponding exhaust gas treatment device. Direct emission to the

Regulations to effectively regulate wastewater management. The Company’s wastewater mainly consists of production Department/workshop atmosphere without treatment is not allowed. Organic waste gas is generally treated

organized waste gas by condensation recovery and then adsorption. Inorganic waste gas is absorbed and wastewater and domestic sewage. For production wastewater each unit has established supporting treatment facili- treated with corresponding acid spray or alkaline spray device according to acid and

ties. After treatment by the unit’s on-site sewage treatment system the effluent meets discharge standards. Addition- management alkali. The remaining organic waste gas is connected to the incineration device for

ally an online wastewater monitoring system has been implemented to track pollutant emissions in real time ensuring incineration and finally discharged up to the standard. Dust generated in centrifuge

compliance throughout the entire process. room and mixing room of workshop is removed by cloth bag connected to water film

dusting device absorbed by spray and discharged up to the standard.Wastewater Classification Management Measures For workshop with process units or process points for unorganized waste gas escape

the waste gas is treated by means of process operation control isolation collection in

the closed room collection by the draft hood etc. The collected unorganized waste

Wastewater generated in workshops is classified as high-concentration and low-concentra- Department/workshop gas shall be treated in the same way as organized waste gas and discharged up to

tion wastewater and collected separately in corresponding collection tanks. High-concentra- unorganized waste gas the standard. All workshops/departments shall regularly inspect and maintain the

Department/workshop tion wastewater undergoes pretreatment in the workshop including oil separation settling management equipment pipes valves etc. within their respective scope and keep the air tightness

management on normal and sedimentation before being pumped to the centralized wastewater treatment station. of the equipment in good condition. Personnel on duty shall enhance the tour inspec-

wastewater Toxic waste liquids identified through laboratory testing and analysis must be collected and tion to prevent the occurrence of running bubbling dripping and leaking phenome-

recycled. Remaining waste liquids are inactivated and managed as hazardous waste and non.must not be discharged into the domestic sewage system or disposed of arbitrarily.Management on waste gas The waste gas generated from the aeration unit of the sewage pretreatment sys-

In the event of abnormal wastewater generation departments/workshops must generated from sewage tem is collected in a closed enclosure treated by oxidation absorption and acid &

Department/workshop promptly communicate with the centralized wastewater treatment station and en- treatment systems alkali spray respectively and discharged up to the standard.management on abnormal sure proper collection and storage. For incidents such as fires producing a large vol-

wastewater ume of firefighting water the Safety and Environment Protection Department must

be notified to open the emergency pool for proper collection.Management on fume and When cooking dishes in the canteen the kitchen hood must be turned on. The

waste gas in canteen kitchen fume is collected and discharged via the kitchen hood. The kitchen hood

The Company’s clean sewage system is fully open-channel managed with no hid- shall be cleaned and maintained once a month.Clean water system den pipes or culverts. The sewage treatment station is responsible for monitoring

pollution management the clean sewage system and entrusts a qualified operation and maintenance or-ganization for upkeep. The station regularly inspects the clean sewage system to

ensure it remains uncontaminated. Solid Waste Management

The Company’s solid waste is primarily classified into general industrial solid waste and hazardous waste. By establish-

Wastewater generated in workshops is classified as high-concentration and low-concentra- ing policies such as the Solid Waste Management System Solid Waste Treatment Control Procedures and Hazardous

tion wastewater and collected separately in corresponding collection tanks. High-concentra- Waste Management Measures the Company has built a full-process solid waste management framework. The man-

Management on tion wastewater undergoes pretreatment in the workshop including oil separation settling agement adheres strictly to the principles of segregated collection source reduction resource recycling and compliant

wastewater in sewage and sedimentation before being pumped to the centralized wastewater treatment station. disposal implementing classified handling for general industrial waste hazardous waste and office/living garbage.station Toxic waste liquids identified through laboratory testing and analysis must be collected and Clear responsibilities are defined across organizational levels to ensure compliant disposal and achievement of waste

recycled. Remaining waste liquids are inactivated and managed as hazardous waste and reduction targets.must not be discharged into the domestic sewage system or disposed of arbitrarily. The Safety and Environment Protection Department is primarily responsible for the treatment and supervision of solid

waste while the factories coordinate efforts for solid waste recovery and utilization. Each department manages the

At dishwashing stations and the canteen’s main outlet filters are installed to re- segregated collection of waste generated within their area and the Procurement Department sources raw materials

move large particulate matter from wastewater before it is discharged into collec- that meet national environmental standards thereby reducing the generation and discharge of solid waste at the Living sewage source.management tion tanks and conveyed to the treatment station. Wastewater from toilets and re-strooms is directly discharged into septic tanks and then pumped to the centralized The Company has established a comprehensive solid waste management system and record-keeping framework standardizing the documentation of generation storage transfer and disposal throughout the waste lifecycle. Hazard-

wastewater treatment station. ous waste is entrusted to qualified external service providers for compliant disposal strictly following the waste transfer

note system with all documentation archived to ensure full traceability and auditability.

82 83Juheshun Advanced Materials Co. Ltd. About This Message from About Sustainable Governance: Robust Governance: Integration of R&D and Low Carbon for Green People Orientation:

Waste Management and Recycling Goals Noise Management

Waste classification and quantity reduction: Set up classified garbage bins in produc- The Company has established a Noise Prevention and Control Procedure creating a comprehensive noise pollution pre-

tion workshops and office areas clearly mark them enhance employee training and vention and management system that covers the entire chain from source control process management to operational

ensure the correct classification and disposal of waste. Promote paperless office reduce assurance. The Company strictly complies with the Emission Standard for Industrial Enterprise Boundary Noise and con-

paper waste optimize production processes and reduce the rate of defective products tinuously monitors noise generated by production activities. Through integrated measures such as vibration reduction Short-term

goals to lower the waste generation. sound insulation and noise attenuation the Company effectively controls noise emissions and minimizes their impact.Recycling system establishment: Establish cooperation with local professional recycling During the reporting period noise emissions across all plants of the Company and its subsidiaries met the relevant

companies to regularly collect the recyclables. Special recycling temporary storage area standards.is set up in the factory to facilitate classification and storage. Noise Control Measures

Internal recycling network optimization: Build the internal recycling network for waste The approval report and the feasibility report for projects that may cause corporate noise pollution or

in the production links and realize the direct reuse of waste in different workshops and involve in noise pollution control facilities shall be countersigned by the Safety and Environment Protec-tion Department and the Provisions on Simultaneous Management of New Renovated and Expanded

procedures. For example the leftover material is collected and processed uniformly

Medium-term 01 Projects shall be strictly implemented. The responsible department for noise pollution shall organize

goals and then is used in the production of other product parts. production reasonably (the production that produces large noise shall be arranged in non-concentrated

Technological R&D input: Invest in R&D of waste resource utilization technology focus- production time as far as possible) and strengthen operation management to reduce noise pollution

ing on waste that is difficult to recycle and explore ways to transform it into usable re- alleviating the impact on the surrounding environment

sources. Each department is responsible for the daily maintenance and care of its own equipment and noise

pollution control facilities to ensure that the equipment and control facilities are in good technical con-

02 dition. The Safety and Environmental Protection Department shall urge relevant departments to conduct regular maintenance and repair of equipment and noise pollution control facilities to ensure that the

equipment is in good technical condition

Achievement of zero waste: Constantly optimize the recycling technologies and pro-

Long-term

goals cesses to achieve almost zero waste emissions during its operations and all waste can Once it is found that the equipment and noise pollution control facilities are faulty or the muffler sound

be effectively treated and reused. 03 insulation and absorption materials are damaged and the repair and restoration shall be organized

timely

Waste Disposal Measures 04 No-horning signs shall be set up in the factory area and motor vehicles shall not horn.General waste Hazardous waste

05 The entities conducting architecture and construction operations in the factory shall control noise in ac-

Living garbage and general solid waste are Hazardous solid waste must be accompanied cordance with the Control Procedures on Related Parties

packaged and stacked according to require- by a Hazardous Waste Storage Application Form. Only after review and approval can the

ments; waste be admitted into storage. Waste man- The noise prevention and control shall be included in the Environmental Management Plan clearly de-

The Safety and Environmental Protection agement personnel receive application forms from each department inspect the waste fining the noise emission points the monitoring frequency and standards of the noise emission points

Department regularly inspects the stacking and only accept it into storage if it meets the 06 and the noise prevention & control measures and the inspection of the implementation thereof

of living garbage to ensure that it is properly standards. Waste is stored in designated areas with a complete in/out ledger maintained. The

stacked and disposed regularly. Sign a con- hazardous solid waste warehouse shall be built

tract for the disposal of living garbage with in accordance with applicable requirements and the card for hazardous solid waste clas-

qualified entity every year; sification identification and safety note shall

The Company’s waste and old office equip- be properly kept. The warehouse shall be kept ventilated and dry and shall be equipped with

ment electronic products and electrical the exhaust gas treatment system accordingly. Ecosystem and Biodiversity Conservation

waste are collected by the Comprehensive The Safety and Environmental Protection De-partment shall sign hazardous solid waste

Management Department and the Procure- disposal contracts with qualified treatment Juheshun integrates biodiversity conservation into the core of its corporate development regarding it as a key compo-

ment Department contacts the manufactur- entities and shall submit the solid waste man-agement plan and hazardous waste transfer nent for a sustainable future. The Company complies with the Wild Animal Protection Law of the People’s Republic of

ers for recycling and disposal. Waste and plan to the local Environmental Protection Bu- China and the Regulations on the Protection of Wild Plants of the People’s Republic of China in its production and op-

old equipment without usable value shall be reau. The Safety and Environmental Protection Department shall contact for the disposal in erations proactively fulfilling its ecological responsibilities and striving to minimize operational disturbances to the en-

disposed by the Engineering & Equipment time and the ledger of hazardous solid waste vironment. By optimizing process flows reducing waste emissions and utilizing clean energy the Company mitigates

Department. shall be properly kept.The ledger of hazardous solid waste shall be pressures on ecosystems and is committed to exploring pathways for harmonious coexistence between business and

managed by full-time person and kept for at nature.least 10 years

All manufacturing bases under the Company are located outside government-designated ecologically sensitive areas

and operations do not involve any disruption to local ecosystems.

848505

People Orientation:

Fostering Shared

Social ProsperityThe Company upholds the philosophy of being “people-ori-ented” cultivating a diverse equitable and harmonious work-

place by focusing on employee rights protection talent training

and development employee communication and care and oc-

cupational health and safety. This approach supports employ-

ees in realizing their self-worth and empowers their growth.Contents of This Section

Protection of Employees’ Occupational Health and

Rights and Interests Production Safety

Training and Development Fulfilling Social Responsi-

Employee Communication bility

and Care

SDG Addressed

86 87Juheshun Advanced Materials Co. Ltd. About This Message from About Sustainable Governance: Robust Governance: Integration of R&D and Low Carbon for Green People Orientation:

Protection of Employees’ Rights and Interests

The Company strictly complies with the Labor Law of the People’s Republic of China the Labor Contract Law of the Peo-

ple’s Republic of China and other relevant laws and regulations. It has established rules and regulations such as the

Employee Handbook and developed a scientifically sound and standardized system for talent selection recruitment Case Recruitment Fair of Juheshun

and compensation and benefits. The Company fully implements principles of fairness and equity respects and effec-

tively safeguards the legitimate basic rights of every employee laying a solid human resources foundation for sustain-

able corporate development.·

Key performance

Percentage of contract workers:100%

Talent Attraction and Recruitment

Employee Recruitment

Employee Structure

The Company has established a standardized and transparent recruitment management system strictly adhering to

the principles of fairness impartiality and openness and actively attracting talent from society. The entire recruitment

process rigorously implements qualification verification background checks and interview assessments resolutely

prohibiting child labor forced labor and any form of employment discrimination ensuring proper job-person fit and

compliance with labor regulations. The Company formulates clear job requirements based on position needs and lev- Total number of employees 688

erages multiple recruitment channels including on-campus recruitment presentations in collaboration with universities

to maximize recruitment resources. During the reporting period the Company participated in 11 campus recruitment

events and screened over 116 resumes. 17

225115194

List of Universities/Colleges of Corporate On-Campus Recruitment

164

By gender By age By position

Zhejiang Sci-Tech University Zhejiang International Studies University 75

463379410

China Jiliang University Juheshun Hangzhou Vocational &

Universities Technical College

for Campus Male Female 30-50 years old Production staff Administrative staff

Hangzhou Dianzi University Recruitment Zhejiang University of Water Resources and Electric Power 30 years old and below Financial staff Sales staff

50 years old or above Technology research staff

Zhejiang A & F University Hangzhou City University

88 89Juheshun Advanced Materials Co. Ltd. About This Message from About Sustainable Governance: Robust Governance: Integration of R&D and Low Carbon for Green People Orientation:

Diversity Equality and Inclusion Compensation and Benefits

The Company actively fosters a diverse and equitable workplace respecting the uniqueness of each employee. In all

processes—including recruitment salary determination and promotion—no employee is discriminated against based

on ethnicity religion gender age marital status disability or any other factor. The Company embraces all employees Compensation Management

with an attitude of equality and inclusion. Juheshun is committed to establishing a compensation system that is “externally competitive and internally equitable.”

The Company strictly complies with the Labor Law of the People’s Republic of China and other relevant laws and regu-

Protection of women’s rights lations building a compensation management system tailored to its actual circumstances ensuring that employees are

Juheshun has formulated the Juheshun Collective Agreement – Protection of Female Employees providing comprehen- fairly rewarded for their contributions. The Company’s compensation structure balances incentives and protection con-

sive care and safeguards for female staff covering maternity leave labor protection and health check-ups. For female sisting of basic salary performance-based salary bonuses and allowances. Performance-based salary and bonuses

employees at different stages such as miscarriage pregnancy and breastfeeding the Company specifies measures are linked to both company performance and individual employee performance. Juheshun also emphasizes safeguard-

including maternity leave duration reduced workload scheduled rest periods and daily breastfeeding breaks. It strictly ing the compensation and benefits of frontline employees setting standards above the local minimum wage which

prohibits any reduction in salary dismissal or unilateral termination of employment contracts due to pregnancy child- not only ensures employees’ basic living needs but also reflects the Company’s respect and care for its frontline staff.birth or breastfeeding. In addition the Company arranges annual gynecological check-ups for female employees ef-

fectively safeguarding their legal rights and physical and mental well-being.Basic salary Bonus

Human Rights Protection

Remuneration

Anti-discrimination and anti-harassment Structure

Juheshun strictly prohibits any form of discrimination. The Company upholds principles of fairness throughout all pro-

cesses including recruitment promotion compensation training and benefits explicitly forbidding discrimination

based on gender race culture age religious belief sexual orientation disability or any other dimension. Through Performance salary Allowances and subsidies

standardized recruitment procedures and transparent decision-making mechanisms the Company ensures equal op-

portunities for all candidates providing a solid safeguard for employee rights.Protection of child and underage workers Performance Assessment Management

Juheshun has established the Juheshun Collective Agreement – Special Protection for Minors and the Regulations on the

Management of Child and Underage Workers strictly implementing compliance requirements throughout the entire re- Juheshun has established a comprehensive employee performance assessment management system utilizing chan-

cruitment and onboarding process. During recruitment personal information is carefully verified and the employment nels such as performance review meetings and written feedback to create a diversified communication network. The

of anyone under 16 years old is strictly prohibited. At onboarding identification documents are checked to ensure con- Company standardizes the performance feedback process to ensure timely feedback in-depth analysis of issues and

sistency between the individual and the ID. The Company also clearly requires that it will not cooperate with suppliers effective implementation of improvement measures. This approach continuously empowers employees to enhance

who deliberately employ child labor or engage in forced labor effectively preventing the employment of child workers their performance driving the growth of both individuals and the Company.and any form of human rights violations thereby firmly safeguarding compliance in labor practices. The Company implements a combined performance assessment system encompassing monthly quarterly and annual

evaluations. Annual recognition adheres to a positive incentive approach with clear and transparent selection criteria

designed to commend outstanding employees who demonstrate both integrity and competence achieve strong per-

formance and exhibit a spirit of dedication. This system sets exemplary role models and fully motivates all employees

to strive for excellence.Performance Appeal Process

Initiate Survey and Feedback

feedback analysis result notification

Information Develop and Tracking

processing implement and solutions evaluation

90 91Juheshun Advanced Materials Co. Ltd. About This Message from About Sustainable Governance: Robust Governance: Integration of R&D and Low Carbon for Green People Orientation:

Benefits Management Key performance

Juheshun places great emphasis on employee well-being. In addition to legally contributing to the statutory social Induction training152 times;otal training participants15342 participants;Company-wide training

insurance and housing fund the Company provides supplementary commercial insurance creating a multi-layered

protection system. At the same time Juheshun has established a thoughtful care mechanism including annual health 48sessions;Department-specific training 934 sessions;Total annual training sessions1134

check-ups for all employees and the distribution of birthday and holiday benefits conveying a human-centered touch. sessions;Average annual training hours per employee 39.18 hours/person

By combining statutory benefits with flexible care the Company supports employees in growing together with the en-

terprise in harmony.To meet the demands of digital transformation the Company has also launched the “Cloud Classroom” online plat-

Statutory basic Social insurance and housing fund form creating a deeply integrated “online + offline” training model.benefits

Health protection

benefits Regular health check-ups supplementary commercial insurance Case Online Platform – Cloud Classroom

Leave Marriage leave maternity leave other statutory holidays paid annual leave sick leave personal leave

Holiday care benefits Hardship allowances employee care benefits birthday benefits

Training and

development benefits Educational advancement training opportunities

Living support benefits Employee activities accommodation benefits

Training and Development

Employee Training

Juheshun has established the Training Management Regulations and the Mentorship Management Measures building

a diversified training system that covers the entire career lifecycle of employees. This system comprehensively stand-

ardizes processes including training plan formulation organization and implementation course development and

mentor management. During the reporting period the Company formulated the 2025 Annual Training Plan aligning it

with the Company’s development strategy and talent development roadmap. The plan specifies overall requirements

objectives key training programs and implementation standards aiming to enhance employee competencies and pro-

vide a solid talent foundation for corporate growth. Training content spans multiple dimensions including professional

conduct company policies and technical knowledge and skills ensuring comprehensive and in-depth implementation Career Development

and laying a firm groundwork for employees’ capability advancement and career development.Internal training Training conducted by in-house trainers including sessions delivered by external

Juheshun provides employees with clear and broad career development paths structured into three main tracks: man-

instructors at the Company. agement professional technical and sales. These tracks offer smooth development channels and sustainable growth

opportunities for employees across different positions. The Company adheres to a scientific and efficient management

Outsourced training Training provided to company employees by external institutions. model emphasizing a flat organizational structure highly values employees’ professional competencies demonstrated

on the job and bases career planning on these competencies supporting employees in becoming experts in their re-

New employee Training designed to help new employees deepen their understanding of the spective fields.training Company.At the same time the Company uses performance assessment results as a key basis for salary adjustments and pro-

Internal job transfer Training required due to changes in employee positions including transfers and pro-

training motions encouraging healthy competition. When positions become vacant a “horse-racing” competitive selection motions. mechanism is implemented prioritizing the promotion of outstanding talent from frontline positions to management

Specialized occupation Professional qualification training for positions that require certification in accord- roles fully motivating employees to grow and excel.certification training ance with national regulations.Safety training Safety-related training conducted in line with work safety management requirements in-cluding emergency response plans fire drills and the handling of chemicals.

92 93Juheshun Advanced Materials Co. Ltd. About This Message from About Sustainable Governance: Robust Governance: Integration of R&D and Low Carbon for Green People Orientation:

Employee Communication and Care

Democratic Governance Employee Complaints and Feedback

Juheshun actively promotes democratic management among employees establishing smooth communication chan- Juheshun has established a clear and comprehensive employee complaint mechanism to fully safeguard employees’

nels such as suggestion boxes notice boards and satisfaction surveys encouraging employees to actively participate legal rights. If an employee disagrees with a handling decision they may first submit a complaint to their direct super-

in corporate management and fully express their demands and suggestions. At the same time the Company has im- visor following the chain of command. If still dissatisfied with the outcome the employee may escalate the complaint

plemented a system for managing rationalization proposals encouraging employees to provide improvement sugges- further or submit it via the suggestion box or directly to the General Manager or the Chairman. The Chairman’s decision

tions on areas such as incentive mechanisms performance evaluation employee training and corporate culture with serves as the final ruling ensuring that employees’ concerns are fully expressed and handled fairly.special discussions and feedback implemented for feasible proposals.The Company respects employees’ central role and safeguards their rights to information participation and supervi- Employee Health

sion ensuring that every employee truly becomes a participant contributor and beneficiary of the Company’s develop-

ment. Juheshun is committed to building a shared destiny between the enterprise and its employees fostering collec- Juheshun places a high priority on employee health.tive momentum for high-quality development. Through themed health seminars such as “The Hazardsof Modern Unhealthy Habits and Health Management”

Case 2025 Employee Representatives Congress the Company helps employees understand the impact

of poor lifestyle habits raises health awareness and

guides the development of good work and life routines.In April 2025 the Company held the first Employee Congress of 2025 addressing the proposals Election of Mr. Fu This enables employees to engage in work and life with

Yongbin as Employee Representative Director and Election of Ms. Shen Qin as Employee Representative Super- greater energy and vitality ensuring that each employee

visor . In November of the same year the Company held the second Employee Congress of 2025 addressing the maintains strong physical health while advancing steadily

proposal Removal of Ms. Shen Qin from the Position of Employee Representative Supervisor. together with the Company.Employee Health Training Sessions

Employee Activities

Juheshun regularly organizes a wide variety of employee activities. By engaging staff in tree-planting events the Com-

pany not only plants seedlings of hope through teamwork and effort but also strengthens team cohesion and promotes

environmental awareness. Employees experience the warmth and joy of working side by side while contributing to

building a better community.Case “Planting New Green Embracing Spring” Tree-Planting ActivityEmployee Satisfaction Survey On March 12 Juheshun organized a volunteer tree-planting event under the theme “Planting New Green Em-bracing Spring” at areas surrounding its various sites. Employees collaborated to plant seedlings and perform

Juheshun places great importance on employee concerns and workplace experience establishing a routine employee subsequent care effectively increasing regional green coverage and contributing to carbon reduction and eco-

satisfaction survey mechanism covering all organizational levels. General staff provide feedback on dimensions such as logical restoration. This activity integrated the concept of environmental protection into practice reinforcing local

work environment compensation and benefits career development corporate culture and work arrangements while ecological barriers bridging the gap between the Company and the community and demonstrating the Compa-

supervisors and above focus on team management interpersonal relationships and strategic resources. Through sci- ny’s ecological responsibility and commitment to sustainable development.entifically designed questionnaires multi-channel data collection and in-depth analysis of results the Company com-

piles recommendations and implements targeted improvement measures continuously enhancing employees’ sense

of belonging well-being and recognition thereby strengthening the internal driving force for corporate development.Key performance

605 valid responses collected with an average satisfaction score of

Employee opinion surveys

85.63 points.

94 95Juheshun Advanced Materials Co. Ltd. About This Message from About Sustainable Governance: Robust Governance: Integration of R&D and Low Carbon for Green People Orientation:

Occupational Health and Production Safety

Juheshun consistently regards occupational health and work safety as core elements of sustainable development. The

Company strictly complies with the Law of the People’s Republic of China on Work Safety the Law of the People’s Re- Occupational Health and Work Safety System

public of China on Prevention and Control of Occupational Diseases and other relevant laws regulations and industry

standards. Adhering to the ISO 45001 Occupational Health and Safety Management System requirements Juheshun

has established a safety management system based on the principles of prevention first full-process control and full

employee participation. The Company strengthens occupational health monitoring safety skills training and protective Identification of hidden Identification and Control System on Potential Risks

measures effectively safeguarding the health of all employees and reinforcing the foundation of work safety. hazards

Governance Management System of Work Safety Management Committee Policies

Work Safety and Goals of Work Safety (Comprehensive)

Juheshun places great emphasis on work safety and employee occupational health establishing a governance frame- Responsibility Statement of Safety Environmental Protection Occupa-work characterized by “Work Safety Committee for overall decision-making Occupational Health and Safety Leader- tional Health and Fire Protection Targets Work Safety Committee Systemship Team for implementation dedicated safety departments for execution and all employees bearing dual respon-sibilities in their roles.” The Work Safety Committee reviews safety strategies and major issues while the Occupational Risk Classification Control System Operation Instruction for Safety Risk

Health and Safety Leadership Team coordinates occupational health management. Each production site has a dedicat- Risk control Assessment and Identification

ed safety management department with clearly defined safety responsibilities from management to frontline employ- Safety Risk Control System and Efforts

ees forming a comprehensive responsibility network that is horizontally extensive and vertically thorough.Juheshun Work Safety Management Framework Responsibility System on Prevention and Control of Occupational Disease

Occupational health Hazards Occupational Disease Hazard Warning and Notification SystemDeclaration System on Occupational Disease Hazard Items Management

Work Safety Committee System on Occupational Disease Protection Supplies etc.Director of the Work Safety

Committee

To ensure the effective implementation of all safety management measures and to advance the achievement of an-

nual safety objectives Juheshun has established a work safety accountability system. The Company signs Work Safety

Responsibility Agreements with each department and links these agreements to departmental and individual perfor-

mance assessments thereby motivating employees to actively engage in safety management.Work Safety Responsibility Agreements Signed by Departments

In terms of system development Juheshun strictly complies with relevant laws and regulations establishing a series of

policies such as the Identification and Control System on Potential Risks and the Management System of Work Safety

Management Committee . These serve as guiding documents for work safety safety risk control and hazard investiga-

tion embedding requirements for risk identification emergency response and contractor management throughout the

entire production process ensuring that safety governance is systematic and rule-based. At the same time the Compa-

ny has developed a comprehensive occupational disease prevention and occupational hygiene management system

including over ten policies such as the Responsibilities for Occupational Disease Hazard Prevention System and the

Occupational Protective Equipment Management System . Led by the Occupational Health and Safety Leadership Team

these policies oversee all aspects of occupational health management including health examinations monitoring of

workplace hazards and occupational health education and training.

9697

Securities

Department

Operations Man-

agement Office

Strategic Develop-

ment Department Sales

Department 2

Marketing Sales

Department Department 1

Market

Internal Audit Department

Department

Procurement

Department

R&D Center

Office

Quality Inspection

Finance Office

Department

Workshop 3

Quality Inspection

Department Electromechanical

Office

Production Polymerization

Department Workshop 2

Polymerization

Safety and Environment Workshop 1

Protection Department

Warehouse Office

Human Resources

Department

Production OfficeJuheshun Advanced Materials Co. Ltd. About This Message from About Sustainable Governance: Robust Governance: Integration of R&D and Low Carbon for Green People Orientation:

Strategy Impact Risk and Opportunity Management

Safety Risk Management

Type of

Risk/ Description of Risk

Probability

of Extent of Impact Priority Potential Response Based on the characteristics of nylon new material production Juheshun has established a work safety management

Opportunit /Opportunity Occurrence Impact Duration Ranking Financial Impact Measures system following the framework of “identification and assessment – graded control – continuous improvement.” The

Company integrates risk prevention and opportunity capture throughout the entire production and operational chain

· Establish a routine hazard ensuring risks are controllable opportunities are actionable and management forms a closed-loop system.The Company’s production investigation mechanism to

processes involve haz- identify and rectify hazards

ardous chemicals such as in a timely manner elimi-

Safety caprolactam posing risks of nating potential accidents; Safety risk grading and control

accident fire explosion and leakage.Short- to Increased oper-

Low High medium- High ating costs re- · Conduct regular risk iden-

risk In the event of a safety inci- term duced revenue tification and assessment dent production equipment maintain a dynamic ledger 01 02 03

may be damaged produc- of major hazard sources

tion lines halted and nor- develop specialized emer- Establish a comprehensive Identify potential safety Develop corresponding

mal operations disrupted. gency response plans and safety r isk assessment risk points through expert risk control measures and

perform periodic drills. m e c h a n i s m re g u l a r ly reviews employee feed- emergency response plans

conducting thorough risk back and other methods for different risk levels to

identification and eval- and classify risks based on ensure effective risk man-

Occupational hazards such · Conduct regular monitor- uation of the production their severity likelihood agement.as dust noise and high ing of occupational hazards in the workplace; environment equipment and potential impact.temperatures generated · Provide employees with and operational processes.Occu- during production may lead standard-compliant per-

pational to respiratory diseases Short- Increased operat- sonal protective equipment;

health hearing loss skin disorders Medium Medium term Medium · Maintain employee oc-and other occupational ing costs cupational health records risk health risks resulting in organize regular health

costs for occupational dis- check-ups and implement

ease prevention and poten- job rotation for high-risk po-

tial employee turnover. sitions to reduce exposure Occupational Disease Hazard Detectionto occupational hazards.Based on the characteristics of production operations and in accordance with occupational hygiene laws and stand-

Introducing monitor ing ards Juheshun systematically identifies potential occupational health risks such as dust noise and high temperatures

systems and automated through a combination of on-site inspections workplace hazard monitoring and specialized job risk analyses. To pre-

production equipment can

achieve precise control of vent occupational diseases the Company conducts regular monitoring of occupational hazard factors in workplaces in

safety risks and comprehen-

Tech- Increased pro- Increase investment in safe-

strict compliance with national laws and regulations promptly assesses the level of occupational hazards and imple-

sive enhancement of occu- ty technologies to achieve ments appropriate protective measures to reduce the incidence of occupational diseases.nology pational health protection d u c t i o n e f f i -

upgrade reducing losses from safety High Medium Long- High ciency higher real-time early warning and During the reporting period Juheshun Luhua a subsidiary of Juheshun commissioned a professionally qualified

oppor- incidents and occupational term profits reduced precise control of safety

tunity diseases. At the same time operating costs risks thereby improving

third-party organization to conduct standardized monitoring of key occupational hazard factors including dust and

automation reduces manu- overall safety levels. noise in production workplaces. The monitoring strictly adhered to relevant national standards and was fully stand-

al operation risks improves ardized and controlled throughout the process. A total of 52 monitoring points covering dust chemical agents physical

production continuity and factors and radiation were inspected all meeting the required standards.stability and increases ca-

pacity utilization.· Improve the occupational

health and safety manage- Identification of Hidden Hazards

ment system and fully im-

Comprehensive occupa- plement work safety man- Juheshun has established a routine safety hazard investigation mechanism. The safety management department regu-Talent

attrac- tional health protection

agement;

· Enhance employee safety larly conducts on-site inspections and monthly special checks focusing on potential hazards in production equipment

tion and and a safe working en- awareness and emergen- work environments and protective facilities to ensure no blind spots or overlooked areas. Identified hazards are record-

reten- vironment can enhance High Medium Long-employee sat isfact ion term High Reduced costs

cy response capabilities

through safety training ed in a ledger with clear assignment of rectification responsibilities to individuals ensuring timely resolution. Mean-

tion and sense of belonging knowledge competitions while to strengthen fire safety management the Company has developed a Fire Inspection Registration Form under oppor- reducing employee turno- and emergency drills;· Strengthen the occupa- which designated personnel conduct daily inspections across eight key areas including fire and electrical use safety tunity ver. t ional health protection exits and evacuation routes. Any hazards identified are addressed immediately to eliminate risks at the source. Addi-

system to comprehensive-

ly safeguard employees’ tionally the Company actively encourages employees to participate in hazard investigation and remediation reporting

health. and addressing safety hazards promptly.

98 99Juheshun Advanced Materials Co. Ltd. About This Message from About Sustainable Governance: Robust Governance: Integration of R&D and Low Carbon for Green People Orientation:

Emergency Management and Drills Case Strengthening Safety Defenses and Protecting Our Shared Home

Juheshun in compliance with the Emergency Response Law of the People’s Republic of China and the Administrative

Measures for Emergency Plans for Production Safety Accidents has developed production safety emergency response In September 2025 Juheshun conducted specialized fire safety training and practical drills. The training focused

plans including comprehensive emergency plans specialized response plans and on-site handling plans. The Com- on fire prevention hands-on use of fire extinguishers and emergency evacuation procedures combining theo-

pany has also equipped its facilities with professional foam fire extinguishers and emergency rescue kits aiming to retical instruction with on-site demonstrations to solidify employees’ fire safety knowledge. The drills simulated real fire scenarios with employees strictly following emergency plans to complete evacuation initial fire suppres-

comprehensively enhance emergency response capabilities and continuously improve the emergency management sion and other procedures. This activity not only enhanced employees’ emergency response capabilities and

system. This ensures that in the event of an emergency the Company can respond quickly and effectively minimizing teamwork awareness but also reinforced the Company’s “safety first prevention-oriented” safety philosophy

accident losses and safeguarding employees’ lives and property as well as the Company’s stable development. building a comprehensive fire safety defense across all sites.Professional Foam Fire Extinguishers Emergency Rescue Kits

During the reporting period all Juheshun production sites developed the 2025 Annual Production Safety Emergency

Drill Plan and conducted multiple emergency drills in accordance with the plan covering fire safety hazardous chem-

icals electric shock and other scenarios. The drills closely followed practical operational procedures enhancing em-

ployees’ emergency skills and teamwork while testing and optimizing the practicality of emergency response plans.Through this series of exercises employees’ safety awareness self-rescue and mutual-aid capabilities were signifi-

cantly strengthened further solidifying the foundation of safety management and effectively safeguarding both em- High-Altitude Fall Drill Fire and Explosion Drill

ployee lives and stable production operations.

2025 Annual Production Safety Emergency Drill Plan

On-Site Response Drill Plans Specialized Response Drill Plans

On-Site Response Plan for Falls from Height Specialized Response Plan for Radiation Incidents

On-Site Response Plan for Fire and Explosion

Accidents Comprehensive Emergency Plan

On-Site Response Plan for Electric Shock Accidents Specialized Response Plan for Boiler Explosion Accidents Heatstroke Incident Drill Electric Shock Drill

On-Site Response Plan for Confined Space Specialized Response Plan for Fire and Explosion

Accidents Accidents

On-Site Response Plan for Heatstroke Incidents Specialized Emergency Plan for Hazardous Chemical Spills

On-Site Response Plan for Scalding Incidents Specialized Emergency Plan for Special Equipment Accidents

On-Site Response Plan for Frostbite Incidents Specialized Emergency Plan for Natural Disaster Incidents

Scalding Incident Drill Confined Space Incident Drill

100 101Juheshun Advanced Materials Co. Ltd. About This Message from About Sustainable Governance: Robust Governance: Integration of R&D and Low Carbon for Green People Orientation:

Metrics and Targets Safety Production Management

To continuously strengthen the effectiveness of safety management Juheshun has established a comprehensive oc-

cupational health and work safety indicator system covering key areas such as hazard investigation and remediation Safety Training and Advocacy

and monitoring of occupational hazard factors. Based on this system the Company sets targeted work objectives striv- Juheshun has established a hierarchical and categorized safety education and training system to continuously enhance em-

ing to create a zero-incident zero-injury healthy and safe working environment. This ensures the protection of employ- ployees’ professional skills and emergency response capabilities. The Company has formulated the Annual All-Employee

ees’ physical and mental health and life safety while promoting stable and secure corporate operations. During the Training Management System and the Occupational Health Education and Training System requiring each employee to com-plete no less than 20 hours of safety education training annually. For management personnel training focuses on safety laws

reporting period the Company did not experience any major safety incidents. regulations and risk control decision-making to strengthen top-level safety management awareness. Frontline employees

receive regular training on safe operational procedures occupational hazard protection and emergency self-rescue with

Continuously strengthen employee occupational hygiene education and training 100% of special-operations personnel certified for their roles. The Company also regularly organizes emergency drills covering

to ensure workers are familiar with the occupational hazard factors present in fire material spills electric shock and other scenarios to improve practical response skills. Additionally safety management

the workplace. personnel are encouraged to obtain professional qualifications such as Registered Safety Engineer and Occupational Health Occupational Health Administrator building a professional safety management team to provide talent support for effective safety governance.and Work Safety Conduct regular monitoring of occupational hazard factors to provide a basis for

Targets occupational disease prevention.In accordance with the Technical Specifications for Occupational Health Surveil- Safety Education and Training System

lance (GBZ1882014) carry out regular occupational health examinations for per- Three-level safety Team level Workshop level Company level

sonnel exposed to occupational hazard factors. education training

General Manager Not less than 12 class hours

Full-time safety

Metric 2025 management Safety professional technical training shall not be less than 12 class hourspersonnel

Annual re-education Other management

Number of internal inspections conducted 80 inspections personnel Not less than 12 class hours

Number of external inspections conducted 37 inspections Special type of work

Pass the national safety training and obtain the qualification certificate and

receive targeted training not less than 12 class hours per year

Other staff Not less than 16 class hours

Number of safety training sessions conducted 80 sessions

Re-education on work resumption

Number of participants in safety training 743 persons Safety education training on job transfer

Hours of safety training 16512.00 hours Special work safety education training

Average safety training hours per employee 66.83 hours/person Targeted safety education training

Number of work safety accidents 5 cases

Number of work-related deaths 0 persons Case Typical Accident Analysis and Safety Knowledge Training

Total number of work-related injuries 9 persons

On August 9 Changde Juheshun organized a special study and discussion session on work safety focusing on

Identification of hidden hazards 64 times typical accident cases and a review of safety management measures implemented in the first half of the year.The session explained the concepts and classifications of work safety incidents systematically reviewed repre-

Potential hazard investigation and rectification rate 100.00% sentative accident cases and conducted in-depth analysis of the causes while specifying targeted corrective

measures. A free-discussion segment was included encouraging employees to share insights and suggestions.Number of safety emergency drills conducted 33 drills This activity effectively deepened employees’ understanding of past safety incidents and further strengthened

safety awareness and compliance in daily operations.Investment in work safety RMB 3.1912 million

Number of special operators licensed 178 persons

Percentage of special operators licensed 100.00%

Number of new cases of occupational diseases 0 cases

Incidence rate of occupational diseases 0%

Number of employees receiving health check-ups 616 persons

102 103Juheshun Advanced Materials Co. Ltd. About This Message from About Sustainable Governance: Robust Governance: Integration of R&D and Low Carbon for Green People Orientation:

During the reporting period Juheshun leveraged Work Safety Month to carry out multi-dimensional safety awareness and

Case Temporary Electricity Special Training and Assessment promotion activities. These included safety-themed presentations case-based warning education knowledge competitions

and the posting of safety slogans and posters to disseminate safety regulations operational standards and emergency re-

The subsidiary Juheshun Luhua conducted targeted training and assessment on temporary electricity use cov- sponse skills. The activities focused on key production risk points fully promoting the “safety first” philosophy strengthening

ering key topics such as electrical safety standards hazard identification and emergency response. The training employees’ safety responsibility and risk prevention awareness and fostering a pervasive culture of safety consciousness. This

employed a dual “theory + practical” approach to help employees strengthen their electrical safety skills. After initiative laid a solid ideological foundation for the Company’s work safety practices.the training assessments combining written tests and on-site practical exercises were conducted to rigorously

evaluate competency ensuring all employees fully master the required standardized operating procedures.Case Work Safety Month Promotional Activities

Safety Management for Stakeholders

案 Juheshun strengthens full-process safety management for external partners including suppliers and contractors. By

例 Hazardous Chemicals Operation Safety Training and Supervisor Training signing specialized safety responsibility agreements and providing on-site safety orientation and practical training the

Company ensures that all partners entering production areas strictly comply with corporate safety management stand-

ards and operational procedures. This collaborative approach reinforces shared accountability for safety management

In May 2025 the subsidiary Juheshun Luhua organized specialized training and assessment on hazardous chem- and helps maintain safe and orderly operations on site.icals operations. The training covered general mechanical electrical and fire safety knowledge; gas protection

basics; methods for inspecting safety measures in work permits; identification of hazardous factors in work

areas; accident prevention; and emergency response and rescue skills. It also included instruction on the use

and maintenance of safety harnesses fire-fighting equipment and personal protective equipment. A unified

assessment was conducted after the training effectively enhancing employees’ safe operation and emergency

response capabilities and strengthening the foundation of hazardous chemicals safety management.

104 105Juheshun Advanced Materials Co. Ltd. About This Message from About Sustainable Governance: Robust Governance: Integration of R&D and Low Carbon for Green People Orientation:

Occupational Health Management Occupational disease Occupational hazard Daily health

examination notification protection

The Juheshun Occupational Health and Safety Leadership Team comprehensively oversees all aspects of the Compa-

ny’s occupational health management. By establishing employee occupational health records providing compliant The Company regularly organizes Juheshun strictly implements regu- The Company requires employees

protective equipment and conducting regular workplace hygiene inspections the Company standardizes occupational annual occupational disease exam- lations and management require- to properly wear personal protective

health management across all processes. These measures ensure that work environments meet occupational hygiene inations for employees conducted ments related to occupational equipment such as dust masks dur-

standards prevent occupational diseases at the source and fully safeguard employees’ occupational health rights. by professional medical institutions. disease prevention ensuring em- ing work. In high-risk areas refined These examinations provide system- ployees’ full right to know about dust control measures are imple-

atic health assessments promptly occupational health risks. This is mented including the installation of

identify potential occupational achieved by placing prominent high-efficiency dust removal systems

Occupational Health and health issues and offer employees safety warning signs in workplaces and regular cleaning of work envi-

Safety Leadership Team appropriate medical interventions and delivering occupational hazard ronments. These multi-dimensional

and health management guidance notification letters to employees en- protective measures comprehen-

effectively safeguarding their occu- suring comprehensive awareness of sively safeguard employees’ physi-

Occupational health Occupational health and safety Occupational health pational health rights. the health risks associated with their cal and mental health.checkups education inspection positions.Set up Prevention Hazardous Chemical Management

employ- and publicity

Publicity of Psycholog- Environ-

of occupa- occupational ical quality mental

Canteen

ee health education of health hygiene tional health self- inspection Juheshun has established the Hazardous Chemicals Management System creating a full-process standardized man-archive diseases protection employees inspection agement framework for hazardous chemicals. Clear control measures are defined for all key stages including general

management procurement transportation storage usage and emergency response. By implementing standardized

procedures each stage is professionally supervised ensuring the effective and safe management of chemical sub-

Pre-employment stances.occupational health Keep the environ-

check rate: 100% Enhance employees’ health and safety aware- ment clean hygienic Hazardous Chemicals Management Measures

ensuring employees ness to maintain physical and mental health and free of

are fit for duty infectious diseases The heads of all departments shall ensure that the safety management of hazardous

chemicals complies with the requirements of laws and regulations.Personnel engaged in activities related to hazardous chemicals shall receive training

General and pass the assessment before taking up their posts.management When choosing hazardous chemicals try to choose those chemicals with low risk and

low environmental impact.The Safety and Environmental Protection Department shall establish archives of haz-

ardous chemicals and conduct regular surveys.The Procurement Department shall establish a list of chemicals and update it annually.Procurement Procure hazardous chemicals from qualified enterprises.The purchase of precursor or highly toxic chemicals requires a certificate of purchase

and a transport permit.The transportation shall be entrusted to a qualified carrier and the safety responsibili-

ties shall be defined.Juheshun is committed to creating a physically and mentally healthy and safe Transportation Safety protection measures shall be taken and escorts shall be equipped during the

working environment for employees by implementing pre-employment on-the- transportation. Any accident during transportation shall be reported to the public secu-

job and post-employment occupational health examinations and maintaining rity department immediately.dedicated health records. The Company also continuously conducts occupa-

tional health education and skills training comprehensively preventing occupa-

tional health risks and effectively safeguarding employees’ physical and mental Hazardous chemicals shall be stored in the special warehouses and managed by full-

well-being. time personnel. Label management shall be standardized for storage and usage and Storage and use shall be checked regularly.Juheshun strictly adheres to national occupational hygiene laws and standards Highly toxic chemicals shall be stored separately and shall be received/dispatched and

continuously improving workplace protection hazard control and health moni- kept by two persons.toring systems. Following evaluation by a professional institution the subsidiary

Juheshun Luhua successfully obtained occupational hygiene certification mark-

ing the Company’s occupational hygiene management entering a standardized Emergency The Company sets up a 24h emergency consultation telephone.and regulated stage. This certification further strengthens the protective meas- response Accidents shall be handled in accordance with the Emergency Plan for Production

ures for employees’ occupational health and provides robust support for the Safety Accidents.Occupational Health Technical Service

Company’s safe and sustainable development. Agency Qualification Certification

106 107Juheshun Advanced Materials Co. Ltd. About This Message from About Sustainable Governance: Robust Governance: Integration of R&D and Low Carbon for Green People Orientation:

Fulfilling Social Responsibility Future Outlook

As a leading enterprise in China’s new materials industry Juheshun focuses on industrial development while actively Juheshun will continue to uphold the philosophy of sustainable development guided by green and low-carbon princi-

generating social value across multiple dimensions. ples driven by innovation rooted in employee care and committed to social responsibility. The Company will coordi-

nate the integrated development of environmental social and governance dimensions persistently deepen its exper-

Social Contribution tise in the nylon new materials sector and leverage high-quality sustainable growth to promote industry advancement and social progress.In terms of environmental protection the Company will continue to advance its green and low-carbon transformation

Juheshun has consistently upheld the concept of corporate social responsibility. Leveraging its four major production strictly comply with environmental laws and regulations and actively promote circular economy practices. Key initia-

bases in Hangzhou Zaozhuang and Zibo in Shandong Province and Changde in Hunan Province the Company carries tives include enhancing waste heat recovery recycling water resources and optimizing resource efficiency all aimed at

out localized social welfare initiatives. Through tangible actions such as charitable donations and agricultural support continuously reducing energy consumption and pollutant emissions. The Company will improve its greenhouse gas ac-

programs Juheshun continuously gives back to society. By integrating these localized public welfare efforts into its op- counting and management system steadily advance carbon reduction actions and leverage smart factory construction

erations the Company translates its development achievements into social benefits demonstrating its commitment to to enable cleaner production. Through systematic environmental management Juheshun seeks to safeguard ecological

corporate philanthropy. security and contribute to the realization of the national “dual-carbon” goals.In terms of innovation and products the Company will adhere to an innovation-driven development strategy deepen

Case Continuation and Deepening of Agricultural Support – Tea Plantation Project collaborative innovation across industry academia and research and continuously optimize its R&D system. Focusing

on high-end and differentiated products such as nylon 66 Juheshun will accelerate breakthroughs in key technologies

and the commercialization of research outcomes enhancing product added value and core competitiveness. At the

Building on the 2024 initiative the Company contin- same time the Company will advance digitalization and intelligent upgrades across production processes implement-

ued its agricultural support for partner tea planta- ing comprehensive smart management. Through technological innovation and quality enhancement Juheshun aims to

tions by providing professional cultivation guidance provide downstream customers with superior new material solutions.and optimizing farm management practices. In In terms of employee and human rights protection the Company upholds a people-centered philosophy strictly safe-

addition it expanded both online and offline sales guarding employees’ legal rights and interests. Juheshun has established a comprehensive occupational health and

channels helping farmers enhance the added value safety management system continuously improving working conditions while strengthening safety training and emer-

of their tea products effectively boosting agricultural gency drills. The Company will also build a diversified talent development and promotion platform enhance incentive

efficiency and increasing farmers’ incomes. mechanisms and focus on employee growth and career progression fostering a workplace environment that is equita-

ble respectful safe and harmonious thereby enabling employees and the enterprise to grow together.In terms of social responsibility the Company will continue to enhance responsible supply chain management promot-

ing collaborative ESG improvements among upstream and downstream partners to build a resilient and sustainable in-

dustrial ecosystem. Actively engaging in public welfare initiatives and rural revitalization Juheshun fulfills its corporate

citizenship responsibilities while balancing economic and social benefits. Looking ahead the Company will advance

Response to National Strategies sustainable development to higher standards continuously strengthen its capacity for comprehensive value creation and contribute Juheshun’s expertise to the industry’s green transition and society’s high-quality development.The Company actively aligns with the national strategy for high-level opening-up advancing its overseas expansion

in line with national strategic deployment. Leveraging its Hong Kong international business platform the Company

has established a professional global sales system with products exported to Southeast Asia Europe South America

Oceania and other regions. In 2025 overseas sales revenue increased by 41% with key markets including India South

Korea and Brazil promoting the international presence of domestically produced nylon new materials. In overseas op-

erations the Company adheres to strict compliance standards deeply implements ESG principles strengthens localized

cooperation and simultaneously conveys the concept of green and low-carbon industrial development effectively ful-

filling its social responsibilities abroad and demonstrating the responsibility and commitment of Chinese new materials

enterprises through global industrial outreach.

108 109Juheshun Advanced Materials Co. Ltd. About This Message from About Sustainable Governance: Robust Governance: Integration of R&D and Low Carbon for Green People Orientation:

Metric Index

Sustainability Reporting Self-Regulatory Guidelines Sustainability Reporting Self-Regulatory Guidelines

Contents Standards of the Global

Guide to Corporate Sustain- for Listed Companies No. 17 Standards of the Global Guide to Corporate Sustain- for Listed Companies No. 17

Reporting Initiative ability Reporting in China Contents ability Reporting in China (CASS-ESG 6.0) - Sustainability Report Reporting Initiative (CASS-ESG 6.0) - Sustainability Report(GRI Standards) (for Trial Implementation) (GRI Standards) (for Trial Implementation)

Scientific and

About This Report 2-1/2-2/2-3/2-4 P1.1/P1.2 Article 4 6 Technological 2-28/203-2 S2.1 Article 41 42

Innovation

Message from Chairman 2-22 P2.1 / Product Quality

Integration and Safety 416-1/416-2 S3.3

Articles 14 15 16 19

and 47

of R&D and

Company Profile Production:

Strength- Customer

Service 416-1/418-1 S3.3/S3.4 Articles 44 47

Products and ening the

Services Industrial

Foundation Supply Chain 204-1/308-1/308-2/414-

Development Management 1/414-2 S3.1 Article 44 45

History

2-1/2-6 P3.1-P3.3 / Information

About Juhe- Corporate Security and / S3.4.1/S3.4.3/G1.2.4 Article 48

shun Culture Privacy Protection

Corporate Address Climate 201-2/305-1/305-2/305-

Honors Change 3/305-4/305-5 E1.1.1-E1.1.4/E1.1.6-E1.1.9

Articles 21 22 23 24

and 26

Milestones in

2025 Low Carbon for Green Environmental 303-2/303-4/304-3/305-

Highlights of ESG Future: Compliance 7/306-1/306-2/306-3/306- E2.1.1-E2.1.9/E2.2.1-E2.2.7 Articles 29 30 31 33

Performance in 2025 201-1 A2 / Painting a Management 5

New Ecolog-

Sustainable ical Land- Resource

Development Vision Management 301-1/302-1/302-3/302-

Article 12 and 21 scape and Recycling 4/303-1/303-3/303-5

E3.1/E3.2/E3.3 Articles 34 35 36 37

Sustainable

Sustainable Development Ecosystem and

Governance: Governance Biodiversity 101-2/304-2 E2.3.2/E2.3.3 Article 32

Building a

Solid Foun- Response to Sustainable 2-9/2-12/2-13/2-14/2-

Conservation

dation for Development Goals 22/2-27/2-29/3-1/3-2

G1.1/G1.3 / Protection of

Employees’ 2-7/2-19/2-20/401-1/

Long-Term Communications with Rights and 401-2/401-3/405-1/ S4.1 Articles 49 and 50

Development People Ori-Stakeholders Articles 9 and 53 Interests 406-1/408-1/409-1entation:

Occupational

Analysis of Substantive Fostering Article 5 Shared Social Health and Work 403-1/403-3/403-5 S4.2 Article 50Issues Prosperity Safety

Corporate Community

Governance Article 12 Public Welfare

203-1/203-2 S1.1/S1.2 Article 39 and 40

2-9/2-10/2-11/2-12/2-

Robust Investor Relations

19/405-1

/ Future Outlook / A1 /

Governance: Management

Strength- Compliance G2.1/G2.2 / Metric Index / A3 Article 57ening Unity Management

to Promote 2-27/205-2/205-3 Appendix

Development Commercial Ethics Article 54 55 56

Feedback Form / A6 /

Party Building Key Performance

Guidance / / Table

///

110 111Juheshun Advanced Materials Co. Ltd. About This Message from About Sustainable Governance: Robust Governance: Integration of R&D and Low Carbon for Green People Orientation:

Key Performance Table

Governance Performance Environmental Performance

Metric Unit 2025 Metric Unit 2025

Corporate Governance Environmental Protection

Operating revenue RMB 10000 552366.44 Total investment in environmental protection RMB 10000 1149.63

Net Profit RMB 10000 16376.46 Environmental technology RMB 10000 105.76

Operating perfor- renovation investment

mance Net profit attributable to Environmental

shareholders of the listed company RMB 10000 14484.43 management Pollution discharge tax paid RMB 9557.26

Total assets RMB 10000 569668.61 Number of violations of environmental laws and regulations case 0

Number of members of Board of

Directors person 7

Amount of penalties due to

environmental incidents RMB 10000 0.00

Number of female members person 2 Environmental training sessions session 27

Board of Directors Number of independent directors person 3 Environmental Participants in environmental training training participant 699

Number of full-member meetings of

Board of Directors convened time 12 Total hours of environmental training hour 33.00

Proposals approved proposal 62 Pollutant Emissions

Number of General Meeting of

Shareholders convened time 7 Total exhaust gas emissions 10000 m3 56601.02General meeting

of shareholders

Proposals approved proposal 26 Nitrogen oxides (NOx) emissions kg 11.0932

Remuneration for directors and senior management RMB 10000 332.59 Air pollutant emissions Sulfur oxides (SOx) emissions kg 0.2182

Performance presentation session 3 Volatile organic compounds (VOCs) emissions kg 2438.29

Investor calls received call 40+ Particulate matter (PM) emissions kg 1973.22

Communication Total questions raised via e-interaction

with investors platform time 116 Total wastewater discharge m3 204969.00

Questions answered via e-interaction

platform time 116 Wastewater treatment volume m3 220362.00

Response rate via e-interaction / 100.00% Wastewater recovery and utilization platform volume ton 12325.00

Wastewater recovery and utilization

Water pollutant rate

/24.66%

emissions

Chemical oxygen demand (COD) ton 11.472

Biochemical oxygen demand (BOD) ton 3.9094

Ammonia Nitrogen (NH ? -N) ton 1.75837

Total nitrogen (TN) ton 5.5032

112 113Juheshun Advanced Materials Co. Ltd. About This Message from About Sustainable Governance: Robust Governance: Integration of R&D and Low Carbon for Green People Orientation:

Metric Unit 2025 Metric Unit 2025

Total phosphorus (TP) ton 0.0655 Biodiversity

Water pollutant

emissions Animal and plant oils ton 0

Area of restored or reconstructed

zones at operations with the greatest ha 0.00

Ecosystem and impact on biodiversityPH / 7.99

biodiversity Percentage of operations located in or / 0.00%

Total waste generation ton 426.15 conservation near ecologically sensitive areas

Proportion of high-impact

Total hazardous waste ton 322.15 commodities in total procurement

/0.00%

Waste disposal Total non-hazardous waste ton 104.00

Quantity of waste recycled ton 38.00

Waste disposal compliance rate / 100.00%

Resource Utilization Social Performance

Total water consumption ton 63914753.00

Metric Unit 2025

Freshwater withdrawal volume ton 668315.00

Water resource Customer Service

utilization Recycled water consumption m3 63246438

Customer feedback response time day 1.00

Recycled water ratio / 95.47%

Customer service Customer feedback response rate / 100.00%

Water consumption intensity t/RMB 1 million 11571.08

Customer complaints time 1

Comprehensive energy consumption ton 52159.87

Total number of customer satisfaction

questionnaires issued copy 50Natural gas consumption m3 11407768

Number of satisfaction questionnaires

Electricity consumption kWh 115197909 Customer collected

copy 49

Energy utilization satisfaction survey Survey response rate / 98.00%

Steam consumption ton 213001.56

Customer satisfaction / 96.00%

PV generation kWh 8355419.60

Electricity cost savings from Supply Chain Security

photovoltaic power generation RMB 10000 538.10 Number of

Pallet pcs 294011 suppliers

Total number of suppliers supplier 13

Material

consumption Number of suppliers certified under quality management systems supplier 13Packaging bag pcs 7108553

Number of suppliers certified under supplier 13

Address Climate Change environmental management systems

Number of suppliers certified under

Total GHG emissions (headquarters) tCO2e 156080.27 Supplier audit occupational health and safety supplier 13

management systems

Including: Direct GHG emissions

(Scope 1) tCO2e 24665.75

Number of suppliers suspended due to

non-compliance supplier 0

Greenhouse gas Indirect GHG emissions (Scope 2) tCO2e 131414.52 Number of prospective suppliers emissions rejected due to non-compliance supplier 0

Reduced carbon dioxide emissions ton 6859.80 Total number of suppliers signing supplier 13

Sustainable integrity agreements

supply chain

GHG emission intensity tCO2e/RMB 1 million 28.26 Percentage of suppliers that have signed the integrity agreements / 100.00%

114 115Juheshun Advanced Materials Co. Ltd. About This Message from About Sustainable Governance: Robust Governance: Integration of R&D and Low Carbon for Green People Orientation:

Metric Unit 2025 Metric Unit 2025

R&D Innovation By age 50 years old or above person 115

Investment in R&D R&D expenditure RMB 10000 16782.35 Below bachelor’s degree person 551

Total R&D team members person 164 By education level Bachelor’s degree person 130

R&D team

Proportion of R&D personnel to total

employees / 23.84% Master’s degree or above person 7

Below bachelor’s degree person 101 Senior management person 4

Bachelor’s degree person 61 Mid-level management person 32

By education level By job level

Master’s degree person 1 Junior management person 113

Doctoral degree person 1 Ordinary employees person 539

Male person 115 Production person 410

By gender

Female person 49 Technical person 164

Number of patents held patent 77 By function Sales person 22

Number of invention patents held patent 15 Finance person 17

Number of utility model patents held patent 62 Administration person 75

Intellectual Number of new patents added in the

property year patent 7

Number of new

employees Number of newly hired employees person 216

Number of patents pending patent 13 Number of new Female person 57

employees by

Total number of trademarks patent 53 gender Male person 159

Total number of published papers piece 2 Under 30 years old person 121

Enterprise Specialized Refined Differential and Number of new

innovation Innovative Enterprise

time 2 employees by age 30-50 years old person 76

capability

certification National High-Tech Enterprise time 2 50 years old or above person 19

Employment Number of employees departed person 229

Employee turno-

ver

Total number of employees person 688 Turnover rate / 34.00%

Including: Number of employees of

minority groups person 14 Compensation Average salary per employee RMB 10000 7.75Number of

employees

Number of employees with disabilities person 10 Protection of Number of female management person 8

women's rights

Number of veteran employees person 6 and interests Proportion of female management / 22.22%

Number of Female person 225 Employees’ Rights and Interests

employees by

gender Male person 463 Basic rights Social security coverage rate / 94.48%

Under 30 years old person 194 Anti-discrimina-tion Confirmed discrimination cases case 0

By age

30-50 years old person 379 Forced labor Confirmed forced labor cases case 0

116 117Juheshun Advanced Materials Co. Ltd. About This Message from About Sustainable Governance: Robust Governance: Integration of R&D and Low Carbon for Green People Orientation:

Metric Unit 2025 Metric Unit 2025

Child labor Confirmed child labor cases case 0 Including: Employee of the Company person 9

Number of employees underwent regular

Employee performance and career development assessments

person 688 Employee of the contractor person 0

development Percentage of employees underwent regular

performance and career development assessments / 100.00% Work hours lost due to work injuries hour 2017.00

Number of employee satisfaction

questionnaires distributed copy 605 Number of potential hazards rectified case 708Employee

satisfaction

Employee satisfaction / 85.63% Identification of hidden hazards time 64

Social Contribution Work safety Potential hazard investigation and rectification rate / 100.00%

Rural revitalization Investment in rural revitalization RMB 39114.00 Number of safety inspections time 117

Talent Training Including: Internal inspections time 80

Investment in employee training RMB 10000 44.62 External inspections time 37

Number of employee training sessions session 1134 Number of safety emergency drills conducted session 33

Including: Number of new employee

training sessions session 152 Investment in work safety RMB 10000 319.12

Company-wide training session 48 Safety training

Department-specific training session 934 Total investment in safety training RMB 10000 13.39

Total training participants participant 15342 Number of safety training sessions session 80

Employee training Total number of employees trained person 1166 Coverage rate of work safety responsibility agreements / 100.00%

Including: Number of new employees person 210 Number of work safety responsibility trained agreements copy 655

Employee training coverage rate / 100.00% Safety training Number of participants in safety training participant 2431

Total training hours 小时 26997.00 Number of person in safety training person 743

Total hours of male employee training 小时 18539.50 Total training hours hour 16512.00

Total hours of female employee training 小时 8456.50 Average safety training hours per employee hours/person 66.83

Average training hours per employee 小时 / 人 39.18 Employee coverage rate in safety per year training / 100.00%

Work Safety Occupational Health

Number of work safety accidents case 5 Number of special operators licensed person 178

Number of work-related deaths person 0 Total number of special operation personnel required to hold operation certificates person 178

Including: Employee of the Company person 0 Percentage of special operators licensed / 100.00%

Work safety Occupational Health

Employee of the contractor person 0 Investment in work-related injury insurance RMB 395670.75

Work-related fatality rate / 0.00% Total number of employees required to participate in work injury insurance person 635

Total number of work-related injuries person 9 Coverage rate of work-related injury insurance for employees / 100.00%

118 119Juheshun Advanced Materials Co. Ltd. About This Message from About Sustainable Governance: Robust Governance: Integration of R&D and Low Carbon for Green People Orientation:

Metric Unit 2025 Feedback Form

Occupational Health

Investment in work safety liability

insurance RMB 10000 5.00 Dear readers

Number of employees covered by work Thank you for taking the time to read the Juheshun 2025 Environmental Social and Governance (ESG) Report .safety liability insurance person 85 We sincerely welcome your valuable feedback on the Company’s ESG practices and sustainable development

Total number of employees required to person 85 management. You are kindly invited to complete the questions in the feedback form below. We truly appreciate your participate in work safety liability insurance suggestions and comments. Thank you for your support.Occupational Coverage rate of work safety liability

Health insurance / 100.00%

Number of new cases of occupational 1. Which of the following stakeholders is most relevant to you in relation to Juheshun

diseases case 0 □ Employee □ Client and consumer □ Shareholder or investor □ Supplier or business partner □ Government or

Number of employees receiving health

check-ups person 616

regulatory authority □ Industry association or non-governmental organization □ Other (please specify)

Coverage rate of physical examinations / 100.00% _____________________________________________________________________________________________________________for employees

2. Your evaluation of this year’s ESG report:

What is your overall evaluation of this report