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聚合顺:JuheshunAdvancedMaterialsCo.,Ltd.Environmental,SocialandGovernanceReport2024

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聚合顺 --%

2024

Environmental

Social and

Governance Report

Juheshun Advanced Materials Co.Ltd.CONTENTS

About This Report 02 Key Performance Table 92

Message from Chairman 04 Index of Indicators 97

About Juheshun 06 Reader Feedback Form 100

Company Profile 06

Development History 08

Corporate Culture 10

Honorary Awards 11

Performance highlights 12

ESG Governance 14

Standardized Governance Green Environment and

01 and Steady Development to 03 Sustainable Development to Build Foundation Protect EcologyCorporate Governance 16 Environmental Compliance Management 46

Investor Relations Management 19 Efficient Resource Usage 54

Risk Internal Control 21 Waste Discharge Control 63

Commercial Ethics 22 Address Climate Change 69

Information Security 23 Biodiversity Conservation 71

Party Building Guidance 24

Innovative R&D and Contribute Society and

02 Technology Leading to Share Achievements to Promote Upgrade 04 Create FutureInnovation Drive 28 Employee Employment and Assessment 74

Quality Management 34 Employee Development and Training 77

Customer Service 37 Employee Health and Safety 80

Supply Chain Security 39 Employee Care and Activities 87

Industrial Synergy 40 Social Contribution and Public Welfare 90ESG Report 2024 Juheshun Advanced Materials Co.Ltd.关于本报告

本报告是杭A州b聚o合u顺t T新h材i料s 股R份e有p限or公t司(以下简称“聚合顺”“公司”或“我们”)面向利益相关方发布的第 1 份环境、社会和公司治理报告。报告详细披露了聚合顺 2024 年度在经济、环境、社会及公司治理等责任领域的实践和绩效,旨在与各利益相关方进行有效交流,系统地回应利益相关方的期望和要求。

This Report is the first environmental social and governance report issued by Juheshun Advanced Materials Co. Ltd. (hereinafter referred

to as “Juheshun” “Company” or “We”) for stakeholders. This Report discloses the Juheshun’s practices and performance in the fields Report preparation Based on our ESG practice this Report was prepared in accordance with the process of “projectof economic environmental social and governance responsibility in 2024 aiming at effective communication with stakeholders and approval—collection of materials—preparation and revision—review by senior management—review processsystematical response to stakeholders’ expectations and requirements. by the board of directors—disclosure” and we actively communicated with relevant stakeholders in

the process of project approval preparation and revision so as to study and discuss the framework

structure and content of this Report.时间范围2024年1月1日至2024年12月31日,为增强报告可比性及前瞻性,部分内报告可靠性保证公司保证本报告内容真实、准确、完整,不存在任何虚假记载、误导性陈述或容往前后年度适度延伸。重大遗漏。

Reporting reliability We warrant that the content of this Report is true accurate and complete without any false records

Time scope From January 1 2024 to December 31 2024 and in order to enhance the comparability and misleading statements or substantial omissions.foresight of this Report some contents are moderately extended to the previous/subsequent year. assurance报告边界 报告披露杭州聚合顺新材料股份有限公司及其子公司履行经济、社会、环境方 报告获取 本 报 告 以 电 子 版 形 式 供 您 阅 读, 您 可 登 录 公 司 官 网(http://www.jhspa6.面的责任信息,相关典型案例来自公司及其下属公司。 com/)和上海证券交易所网站(http://www.sse.com.cn)进行查阅。如对本Access to report This Report is available in electronic format for your reading and you may log on our official website

at (h报ttp:告//w有ww任.jhs何pa6疑.co问m/或) an建d t议he ,web敬site请 of发 Sh送ang电ha子i Sto邮ck件 Exc至hanhgse datm (h@ttpj:h//swpwaw6.s.sceo.comm .,或致电Reporting scope This Report discloses information about the economic social and environmental responsibilities cn) for access. If you have any questions or comments on this Report please email hsdm@jhspa6.performed by Juheshun Advanced Materials Co. Ltd. and its subsidiaries and the relevant typical 0571-82955559。

com or call 0571-82955559.数据来源 本报告所披cas露es 的are信 fro息m t来he 源Com于pa聚ny合 an顺d it内s su部bo正rdin式ate文 co件mp、ani统es.计报告与年报,本报告所披露的数据来源于聚合顺实际运行的原始数据、政府部门公开数据、年度财务

数据、内部相关统计报表、第三方问卷调查、第三方评价访谈等。本报告的财 Defi释nit义ionsData source The information disclosed in this Report is from the official internal documents statistical reports Defi常nit用ion词s o语f c释om义mon words务数据以人民币为单位,若与财务报告不一致之处,以财务报告为准。

and annual reports of the Company and the data disclosed in this Report is from the original data

refer

of the actual operation of the Company public data of government departments annual financial The C本om公p司an、y 公Co司mp、an我y 们We、 J聚uh合es顺hun 指Juhe杭sh州un聚 Ad合va顺nc新ed材 M料at股eri份als有 Co限. 公Ltd司.to

data internal applicable statistical statements third-party questionnaires third-party assessment

interviews etc. The financial data of this Report is in RMB. If there is any inconsistency between this refer Hangzhou Juheshun Special Materials Juhe聚sh合un顺 Sp特ec种ia、l S特pe种cia材l M料aterials 指 杭州聚合顺特种材料科技有限公司

编制依据 联合国可持Re续por发t a展nd 目the标 fin(ancSiaDl rGepso)rt the latter shall prevail. to Technology Co. Ltd.全球可持续发展标准委员会《可持续发展报告标准》(GRI Standards) 聚合顺鲁化 refer 指Shandong JuJuheshun Luhua 山东聚合he顺sh鲁un化 L新uh材ua料 Ne有w限 M公ate司rials Co.to Ltd.中国社科院《中国企业社会责任报告指南》(CASS-ESG 6.0)

山东聚 refer Shandong Ju合he顺shun 指 山东聚合顺新材料有限公中国标准化研究院《社会责任报告编写指南》(GB/T36001-2015) Shandong Juheshun New Materi

司als Co. Ltd.to

Preparation basis Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of Listed Companies—国际标准化Su组sta织ina《biliItyS RO refer ep 2o6rt0 (T0ri0al:) 社会责任指南(2010)》 Chan常gd德e 聚Juh合es顺hun 指Chan常gd德e 聚Juh合es顺hu新n 材Ne料w 有Ma限te公ria司ls Co. Ltd.to

上海证券交UN易 Su所sta《ina上ble市 De公vel司opm自en律t G监oa管ls 指(SD引Gs第) 14 号—可持续发展报告(试行)》

Sustainability Reporting Standards issued by Global Reporting Initiative (GRI Standards). 鲁南化工 refer 指 兖矿鲁南化工有限公司Lunan Chemicals Yankuang Lunan Chemicals Co. Ltd .China Corporate Sustainability Reporting Guidelines issued by Chinese Academy of Social Sciences to

(CASS-ESG 6.0) 永昌控股 refer 指Wenz温ho州u 永Yo昌ng控ch股an有g H限ol公din司g ,Co公. L司td大. t股he东 Yongchang Holdings报告编制流程 本报告以本Gui企dan业ce oEnS SGoc实ial 践Res为pon基sib础ility, Re按po照rtin“g i立ssu项ed 审by 批Chi——na Nat收ion集al I素nst材itut——e of St编and制ard修izationto major shareholder of the Company

(GB/T36001-2015)订——高管ISO层 26审00议0: ——Guida董nce事 on会 So审cia议l Re——spons对ibi外lity 披(20露10”) i s的su流ed 程by I推nte进rna,tio并nal在 Sta立nd项ard审 Or批gan、ization Note: The Company has issued an announcement of industrial & commercial change registration and renewal ofbusiness license on March 28 2025 and the corporate name was changed from Hangzhou Juheshun Advanced

编制修订等环节与有关利益相关方积极沟通,研究论证报告框架结构及内容。 Materials Co. Ltd. to Juheshun Advanced Materials Co. Ltd.

02 03ESG Report 2024 Juheshun Advanced Materials Co.Ltd.

Message from Chairman

I. Hold the principle to create the trend of two-wheel drive

“Those who do not plan for the overall situation will not be able to plan for the region” so we take “deep cultivation of the real economy” as the

longitude and “capital market brand” as the latitude to build a value symbiotic ecology. After stabilizing the domestic market we improve the

product differentiation advantage to vigorously enhance our share and reputation in overseas markets and we concentrate on the innovation for

green fine chemical industry scientific innovation vitality chemical industry and strategic new quality productive forces . In addition we strengthen

the brand construction and management of the capital market namely we not only serve as a stable ship in the capital market but also become

the industry benchmark beacon so that Juheshun (JHS) brand potential energy and industrial momentum can add radiance and beauty to each

other playing the concerto of industry integration in the new era.II. Study the nature of things to encourage innovative and breaking power

R&D is our sword and innovation is our shield. In terms of product quality we uphold the spirit of craftsmanship to carefully develop high-quality

and differentiated production plans and we are committed to achieving the top quality of polyamide (nylon 6) in the industry with the leading

number of varieties and the best cost-effective. Based on nylon 6 (PA6) key products we actively develop nylon 66 (PA66) high temperature

nylon copolymerized nylon and other products horizontally so we can constantly expand differentiated categories to meet the diversified and

differentiated demands of different customers.III. Plan as a whole to build comprehensively coordinated development

With Hangzhou Zhejiang as the main base Tengzhou Shandong Changde Hunan and Zibo Shandong as the cross-regional bases we give full

play to the advantages of industrial resource allocation and collaborative advantages of each base. In the context constant release of production

capacity of each base we are further closer to the raw material supply places to reduce logistics costs and optimize resource allocation and we

take Hangzhou as the core to build a comprehensive coordinated development.IV. Follow the natural laws to carve the beauty of green development

With lean production as the pen and recycling economy as the ink we further reduce the energy consumption per unit product via process

improvement equipment update detail optimization and management control striving to achieve the lowest level of unit consumption in the

industry. Meanwhile we reduce pollutant emissions to actively support green low-carbon and sustainable development. For example our Changde

subsidiary completed the equipment update and the national “equipment renewals trade-ins of consumer goods ” application and each base has

built photovoltaic and energy storage power stations to improve energy efficiency and reduce dependence on traditional energy.Holding a spirit of integrity innovation and perseverance I would like to present our social responsibility report to our partners. Standing on

V. Digital intelligent innovation to open future evolution door

Hangzhou a fertile land of cultural diversity scientific & technological innovation and inclusive governance with the oriental wisdom as the soul

Process manufacturing is our industry mirror and artificial intelligence is used to empower decision centers. We actively participate in the digital

and the global vision of inclusiveness innovation and change as the pulse we draw a blueprint for high-quality new vitality so that Juheshun could

intelligent empower industry and our management team has taken a visit to the cutting-edge enterprises in the application of digital intelligence

constantly walk on the road of long-term value.learning the advanced concepts and practical experience of digital intelligence in all industries. Moreover we have deeply discussed cooperation

with a number of well-known digital service providers in China to jointly develop digital intelligent transformation strategies.Looking back 2024 due to the joint efforts of all employees Juheshun has made a series of remarkable achievements under tough market

environment. Based on our main business of nylon chips our subsidiaries in Tengzhou Changde and Zibo have gradually been constructed and

In the future we will use the courage of “Qiantang tide riders stand on the top of waves” to fulfill our commitment of “creating value forput into production so our efforts in extended chain and supplement chain have begun to shape the scale effect.stakeholders reducing burden on environment and seeking well-being for society”. Meanwhile we will constantly carry forward our corporate

culture of low-key practicability and innovation and increase brand publicity to enhance brand image and industry position so that we can

Adhering to the main business and working hard on internal skills we constantly promote R&D reform and innovation to improve our core

contribute Juheshun’s power to private economy in China.competitiveness comprehensively. Holding the principle of protecting the legal rights and interests of small and medium-sized investors we always

maintain the development concept of linking industry and capital to practically promote the high-quality development of listed companies and

actively enhance the investment value of enterprises as the long-term development goal. We Juheshun people work together to strive for the goal of

becoming a first-class polyamide new material comprehensive solution provider. Juheshun Advanced Materials Co.Ltd.

04 05ESG Report 2024 Juheshun Advanced Materials Co.Ltd.

About Juheshun Fiber grade chips: Applicable to the production of civil spinning and industrial spinning materials

01 Features: High spinnability high strength high dyeing including J2403F J2400F J2416F and other different models

Founded on November 1 2013 Juheshun Advanced Materials Co. Ltd. was headquartered

Company Profile in Qiantang District Hangzhou City Zhejiang Province and it is a national high-tech enterprise Engineering plastic grade chips: Applicable to the modification of nylon composite materials the direct injection molding

integrating the R&D production and sales of polyamide-6 chips (namely “nylon 6 chips”). of engineering plastics and the production of various high-load mechanical parts electronic and electrical switches and

equipment

Our products are the derivatives of petroleum which are usually white granular. Our products 02 Features: High strength high toughness anti-aging high impact resistance and wear resistance including J2000

cover three major fields including downstream nylon fibers engineering plastic and film and J2400 J2500Z J2700 J2800 and other different models

are widely used in electronic and electrical appliances electronic machinery food packaging

civil fibers outdoor clothing intelligent equipment aerospace nuclear power military & police

and other application fields winning a high brand reputation in polyamide new material market Film grade chips: Applicable to produce edible/medical packaging film automotive lithium battery film

in China. 03 Features: High bidirectional tensile high strength high barrier and high transparency including J2800F J3200M

J4001M and other different models

We were listed on the Shanghai Stock Exchange on June 18 2020 (stock code: 605166).Special nylon: Widely used in automotive communications machinery electronic appliances aerospace sports

products industrial and medical fields

04 Features: High temperature resistance low water absorption low temperature resistance stable size good toughness

wear-resistant & shock absorption high rebound light weight

Main products and services

Product categories

Petroleum Market layout

We have established a complete marketing system and customer management system. Our marketing network is centered in East China radiating

Upstream raw material industry Benzene North China and South China and our domestic market share is constantly increasing. Meanwhile we attach high importance to the international

market layout and we have established the international sales department to explore the international market. Currently our products have been

sold to many other countries and regions including Europe South America Oceania Southeast Asia.Caprolactam

Corporate business fields Polyamide-6 chips

Polyamide fiber Engineering plastics Film

Civil: Clothing fabric Widely used in Packaging film materials

Downstream application fields socks boxes/bags tire automotive electronics widely used in food

fabrics umbrella rope transportation and chemical products

etc. machinery and other medical supplies and

Industrial: Tire fabrics fields mechanical & electronic

safety belt industrial products packaging

blanket fishing net etc.Product ecological chain

Market layout

06 07ESG Report 2024 Juheshun Advanced Materials Co.Ltd.

Development History

2024

* In April Shandong Juheshun annual output of 80000 tons of new nylon

material (nylon 66) project was commenced

* In May Changde Juheshun annual output of 92000 tons of polyamide-6

chips project was successfully capped

2016 2022 * In August Shandong Juheshun annual output of 80000 tons of new 2020 nylon material (nylon 66) project was successfully capped

* In March the Company

2013 completed the shareholding * In June it was listed on the * In October the 180000 tons * In October the Juheshun Luhua annual output of 400000 tons of

transformation and officially Shanghai Stock Exchange with in Phase I of Juheshun Luhua polyamide-6 new material project was successfully fed and commissioned* In November the Company was changed its name to “Juheshun stock code 605166 “annual output of 400000 tonsincorporated Advanced Materials Co. Ltd.” and of polyamide-6 chips project” was * In November the polymerization workshop No. 3 of nylon new material

in December it was recognized as * In December Shandong successfully put into operation project was successfully capped

“National High-tech Enterprise ” Juheshun Luhua New Materials

Co. Ltd. Shandong Juheshun * In December it was recognizedNew Materials Co. Ltd. Changde as “Specialized RefinedJuheshun New Materials Co. Ltd Differential and Innovative Small

were established and Medium-sized Enterprisein Zhejiang Province ” and“Provincial Enterprise ResearchInstitute ”

2015

* In May 80000 tons of

polyamide-6 chip project was put

into production 2019

* In May the production capacity of

polyamide-6 chips reached 160000 tons

* In September it was approved to build a

provincial postdoctoral workstation

2021

* In November Hangzhou Juheshun

Special Materials Technology Co. Ltd. was * In December the

2023

established which mainly researched and production capacity of * In May the Juheshun Luhua annual output of 400000 tons of polyamide-6 new material

developed special nylon products polyamide-6 chips reached project (Phase II) commenced

260000 tons

* In October the Changde Juheshun annual output of 92000 tons of polyamide-6 chips

project commenced

08 09ESG Report 2024 Juheshun Advanced Materials Co.Ltd.

Corporate Culture Honorary Awards

2024.04

Corporate vision Corporate mission

2025.01

Become a first-class polyamide new material Strive for international brand achieve

solution provider industrial power

Corporate spirit Business philosophy 2023 Quality Management Innovation Award

by People’s Government in Qiantang District 2024 Quality Management Innovation Award

Create value for customers seek development for employees;

Harmonious diligent pragmatic innovative People’s Government in Qiantang District by People’s Government in Qiantang District

create profits for shareholders take responsibility for society Hangzhou

People’s Government in Qiantang District

Hangzhou

2024.10

Corporate core values Corporate culture concept 2024.08

Integrity and law-abiding quality first focus on People-oriented fine management; take

performance constant innovation factory as home share the benefits

Work style Learning concept

2023 Zaozhuang Top 100 Industrial

Diligent in learning good at communication

Rigorous pragmatic collaborative efficient Enterprises

and make progress a little bit every day 2023 Zaozhuang Top 100 Enterprises in

2024 Hangzhou Top 100 Enterprises in Comprehensive Competitiveness

Comprehensive Competitiveness Zaozhuang Enterprise Federation

Hangzhou Federation of Industrial Economics 2024.08

Hangzhou Enterprise Federation Hangzhou

Quality policy Environmental policy Entrepreneurs Association

People-oriented quality first; customer respect Low carbon energy saving comply with regulations;

sincere and trustworthy protect the environment constant improvement

2024.08

Marketing concept 2024 Hangzhou Headquarters Enterprise

Recognition

Customer first sincere service; work together Hangzhou Development and Reform 2024 Hangzhou Top 100 Manufacturing

win-win cooperation Commission Enterprises

Hangzhou Federation of Industrial Economics

Hangzhou Enterprise Federation Hangzhou

Entrepreneurs Association

10 11ESG Report 2024 Juheshun Advanced Materials Co.Ltd.

Performance highlights

Operating performance Social performance

Operating income Net profit Oper Total number of R&D personnel

RMB 7168215600 RMB300304400 RMB 179071400 168

Total amount of tax paid Total number of employees Training time per employee

RMB 72609900 703 30.68 Hours

Number of patents held Complaint resolution rate

Governance performance 76 100%

Customer feedback satisfaction Product conforming rate

Number of shareholders’ meetingheld Number of meetings of the board of supervisors held

5795%99.93%

Number of temporarily released announcements

Number of meetings of the board of directors held (serialized) disclosed by the Company

14 97 Environmental performance

Total input in environmental management Photovoltaic power generation

RMB 5.5980 million 1842227 KWH

Electricity fee saving from photovoltaic power

generation

RMB 1.1353 million

12 13ESG Report 2024 Juheshun Advanced Materials Co.Ltd.

Analysis of substantive issues

ESG Governancet

According to our ESG practice we consider the demands and expectations of stakeholders in normal communication and we further refer to

applicable domestic and foreign standards macro policies industry trends to identify 31 ESG substantive issues. During the reporting period we

conducted the substantive issues assessment in the sequence of “issue identification—stakeholder survey—generating substantive issues matrix”

We always attach great importance to environmental social and governance (ESG) responsibility management and we deeply integrate ESG so that we can understand the importance of stakeholders on each issue and clarify the duties of the executive level constantly improving our ESG

concepts into the daily operations of all of our departments. In 2024 we conducted research on ESG substantive issues and actively promoted management level.the optimization and improvement of responsibility management ensuring the sustainable development in environmental protection social

responsibility fulfillment and corporate governance. In the future we will continue to improve the ESG management system and constantly

enhance the ESG performance laying a solid foundation for our long-term sustainable development.Communication with stakeholders

We attach great importance to communication and exchange with internal and external stakeholders. We have established various channels to

11

communicate with stakeholders and we deeply understand the demands and expectations of stakeholders to strive for their trust and support 16

promoting the Company to constantly improve its environmental social and governance work. 23

2817

05

Stakeholders Concerns and expectations Communication channels 30

1815

2613

Government inspection 19

National strategic response 24 25 14

Government and Compliance inspectionCompliance operation 27 04

Regular meeting communication

regulatory agencies Risk management 08Participate in government cooperation

Commercial ethics

exchange and discussion activities 22 06

1202

2010

Stable return on investment Regular/temporary information disclosure 31

Transparent information disclosure Operation of board of directors board of

Shareholders/ 29 03Compliance operation supervisors and shareholders’ meeting

investors Risk management Performance presentation 09

Intellectual property protection Investor hotline

Scientific and technological innovation Corporate survey 21 07

Product quality and safety 01

Customer communication and cooperation

Customer service

Customers Customer satisfaction surveyResponsible business and marketing Customer daily communication

Scientific and technological innovation

Customer information confidentiality

Data security Low High

Employee training Finance importance

Employment and employee rights Regular working meeting

Employees Equality inclusiveness and diversity Employee symposium democratic Employee development and training communication Governance Social Environmental

Occupational health and safety Employee engagement survey

Employee activities

01 Operation of board of directors 09 Equal treatment of small and 16 Occupational health and safety 23 Compliance with environmental laws

Sustainable supply chain board of supervisors and medium-sized en-terprises 17 Employee rights & interests and 24 Greenhouse gas emissions

Suppliers and partners Supplier exchange and communicationSupplier empowerment Supplier conference shareholders’ meeting 10 Information security and welfares 25 Energy utilization

Sunshine procurement

02 Compliance operation and risk privacy protection 18 Employee training and 26 Waste management

Green products and design management 11 Product quality and safety development 27 Water resources management

Industry exchange Industry conference 03 Commercial ethics 12 Responsible procurement 19 Inclusive and diverse workplace 28 Pollutant emission

Community and Help industry development University-enterprise cooperation

Social public benefit contribution Public welfare activities 04 Investor relations management 13 Industrial chain coordination environment 29 Address climate change

industry Response to climate change Rural revitalization 05 Anti-corruption and integrity 14 Supply chain security 20 Community development and 30 Packaging materials recycling

Biodiversity and ecological Environmental protection

conservation 06 Intellectual property protection 15 Scientific and technological public welfare 31 Ecosystem and biodiversity

07 Anti-unfair competition innovation 21 Rural revitalization and common conservation

Information disclosure and 08 ESG/ sustainability prosperity

Media Regular/temporary information disclosuredissemination Marketing information review management 22 Employment promotion

Responsible business and marketing

1415

High

Impact importanceESG Report 2024 Juheshun Advanced Materials Co.Ltd.Standardized Governance and Steady

Development to Build Foundation

Holding the concept of sustainable development Juheshun has established a standardized

and efficient corporate governance system. The Company constantly improves the level

of governance by optimizing the decision-making mechanism strengthening compliance

management and improving the supervision structure. In the construction of commercial ethics

a compliance risk control system covering the whole process has been established to promote

the implementation of the integrity operation concept. Meanwhile the Company pays attention

to the protection of investors' rights & interests and information security and provides a solid

safeguard for high-quality development via system construction and process optimization. Under

the guidance of the Party building the Company will constantly improve the governance system

contributing to the healthy development of the industry.Our actions

Corporate governance

Investor relations management

Risk internal control

Commercial ethics

Information security

Party building guidance

SDGs equivalent 01

16 17ESG Report 2024 Juheshun Advanced Materials Co.Ltd.

Corporate In strict accordance with the provisions of the Company Law the Securities Law and the The board of supervisors is an important supervisory body in the corporate governance corporate articles of association we have established and improved the operation system Board of supervisors structure and it is responsible for supervising the behavior of the board of directors and senior

Governance of the three meetings. We constantly standardize the operation and decision-making of the management ensuring that the corporate operation is legal and compliant and safeguarding shareholders’ meeting the board of directors and the board of supervisors and ensure the the interests of shareholders and employees. The members of the board of supervisors shall

compliance of the operation of the “three meetings” (shareholders’ meeting the board of possess rich professional knowledge and experience so they can regularly inspect the corporate

directors and the board of supervisors). Currently we have established a sound governance finance internal control and management performance and then report to the shareholders’

structure clearly defining the responsibilities and authority of each organization which can meeting. The effective operation of the board of supervisor ensures the transparency and

ensure that the decision-making process is legal and transparent. Meanwhile we regularly standardization of corporate governance.conduct internal audit and external supervision to ensure that the implementation of the “threemeetings” resolutions is in line with laws regulations and the corporate interests providing a

solid safeguard for the steady corporate development.Key performance 2024

Shareholders’ Meeting

Nomination Committee

During the reporting period the Company held 7 meetings of the board of supervisors.Board of Supervisors

Remuneration and

Assessment Committee

Board of Directors Secretary of Board of

Strategic Decision-making Directors

Committee

General Manager The board of directors is the core decision-making body of the Company and it is responsible

Audit Committee Board of directors for formulating corporate strategy reviewing major issues and supervising the management’s

R&D Center implementation. The structure of the board of directors is reasonable including 42.85% of

independent directors which ensures that the board of directors can maintain independence

and objectivity in decision-making. During the reporting period the board of directors of the

Company conducted effective supervision on the management to ensure that corporate

operation was in line with laws regulations and the interests of shareholders and also

monitored corporate financial position and operating performance via regular audit and financial

report review.Key performance 2024

The board of directors is composed of 7 directors including 2 female directors 3

and independent directors. The members of the board of directors have diversified

professional backgrounds covering chemical finance law and other professional fields

Corporate organizational structure

and they possess rich practice experience.The shareholders’ meeting is the highest authority of the Company and it is responsible for

Shareholders’ meeting reviewing major corporate matters. The shareholders’ meeting shall be held in strict accordance

with the legal procedures and shareholders have a high participation so all proposals can be

fully discussed and reviewed and can be effectively implemented after the meeting ensuring

that shareholders can fully exercise their voting rights and the right to know. We also provide

convenience for shareholders by various means (such as online voting) to ensure that minority

shareholders can fully exercise their rights. The efficient operation of shareholders’ meeting

has laid a solid foundation for the improvement of corporate governance and long-term healthy

development.Key performance 2024

During the reporting period the Company held 5 shareholders’ meetings.

1819

Securities

Department

R&D Management

Office

Market Department

Technical Development

Department

Quality Inspection

Office Warehouse

Office

Production

Department Polymerization

Finance Workshop

Department

Human Resources

Department

Office

Purchasing

Department

Marketing

Department

Internal Audit

DepartmentESG Report 2024 Juheshun Advanced Materials Co.Ltd.In addition our board of directors has a number of special committees including the Strategy Committee the Remuneration and Assessment Investor Relations We attach great importance to information disclosure management and regard it as an Committee the Audit Committee and the Nomination Committee. These committees work within the scope authorized by the board of directors important link of corporate governance and investor protection. In order to ensure the

and they help the board of directors perform duties more efficiently improving the corporate governance. Management transparency of corporate operation and help investors regulatory agencies and other stakeholders understand the corporate operating conditions financial performance and major

matters in a timely and accurate manner so as to enhance market confidence and maintain

Number of Strategy Committee meetings: 2 corporate reputation we have established a sound information disclosure system in strict

Strategy Committee

The Strategy Committee establishes a sound risk management mechanism to effectively identify assess accordance with laws regulations and regulatory requirements defining the disclosure process

and respond to potential risks ensuring the steady advancement of the corporate strategy. Meanwhile and division of responsibilities which can ensure the authenticity accuracy and completeness

it also strengthens the communication and cooperation between various departments to form a strong of information disclosure.team force jointly promoting the rapid development of various corporate businesses.For the purpose of strengthening communication with investors improving the corporate

Management system governance structure protecting the legal rights and interests of investors (especially small

and medium-sized investors) to form a long-term and stable interactive relationship we have

formulated the Management System on Investor Relations in accordance with the Company

Number of Remuneration and Assess-ment Committee meetings: 1 Law the Securities Law the Guidelines on Investor Relations Management of Listed Companies

Remuneration

The Remuneration and Assessment Committee has achieved remarkable results in the formu-lation and Key performance 2024 other laws regulations and our articles of association. By means of standardized information and Assessment

optimization of remuneration poli-cies the improvement and implementation of performance assessment communication transparent information disclosure and diversified exchange methods this

Committee

system the imple-mentation and supervision of policies and the communication and feedback of During the reporting period System aims to enhance investors’ understanding and recognition of the Company improving

employees. These results provide a strong talent support and safeguard for the long-term corporate de- the level of corporate governance and achieving common development of the Company and the Company disclosed

velopment. investors.

9 7 temporarily released

The Company designates the media with securities market information disclosure conditions

announcements (serialized) and published by the China Securities Regulatory Commission and the website of the Shanghai

4 periodic announcements. Stock Exchange as the media that publish corporate announcements and other information

required to be disclosed and we also timely release corporate dynamics and industry

Audit Committee Number of Audit Committee meetings: 4 information so that the investors can conveniently obtain relevant information ensuring

The Audit Committee plays an important role in promoting corporate governance protecting shareholders’ that investors and other stakeholders can accurately and conveniently obtain the important

rights and interests and supervising the accuracy of financial reports. corporate information via official and authoritative channels.Nomination Number of Nomination Committee meetings: 1 Compliance principle Equality principle Initiative principle Integrity principle

Committee The Nomination Committee has successfully introduced several outstanding independent directors and

they possess deep expertise and rich practical experience in their respective fields effectively improving The corporate investor In conducting the investor The Company shall take the In the investor relations

the quality of decision-making of the board of directors. relations management shall relations management initiative to conduct investor management activities

be conducted on the basis activities the Company shall relations management the Company shall pay

of fulfilling the obligation treat all investors equally activities listening to attention to integrity

of information disclosure and in particular creating investors’ opinions and stick to the bottom line

according to law and shall opportunities and providing suggestions and responding standardize operation and

Results of the work of the committees in 2024 be in accordance with convenience for small and to investors’ demands in a take responsibility creating

laws regulations rules medium-sized investors to timely manner. healthy and sound market

and normative documents participate in the activities. ecology.industry norms and self-

System revision regulatory rules corporate

internal rules and regulations

as well as the code of

ethics and code of conduct

In 2024 the Company revised some provisions of the Public Opinion Management System the Management Measures on Subsidiaries the generally observed in the

Reporting System for Major Matters the Accountability System on Major Error in Information Disclosure of Annual Report the Accounting Firm industry.Selection and Appointment System and the Work System for Independent Director Special Meeting. The optimization of these systems further

enhanced the corporate governance structure and improved the level of corporate governance so that the Company can better adapt to changes in

laws and regulations enhancing corporate transparency risk control ability and market competitiveness.Basic principles of investor relations management

20 21ESG Report 2024 Juheshun Advanced Materials Co.Ltd.

Risk Internal The Company attaches great importance to risk internal control management and takes it as an Communication activities important cornerstone to ensure the Company’s sound operation and sustainable development.Control The Company identifies evaluates and responds various operating risks to ensure the compliance of corporate business activities the safety of assets and the reliability of financial

The investor relations communication activities are an important bridge for the Company to communicate with the capital market. The effective reports creating long-term value for shareholders and stakeholders.communication and interaction can enhance investors’ understanding and trust of the Company and promote the market image of the Company.The Company has set up special investor relations management personnel to actively maintain communication with institutional investors The Company has established a sound risk management system and internal control system

analysts and minority shareholders answer questions and convey the Company’s development strategy and business results by regularly holding Key performance 2024 covering finance operation law market and other fields. Meanwhile the Company set up

performance presentations investor surveys conference calls and E-interactive platform inquiries and answers. the Audit Committee under the board of directors to coordinate the corporate compliance

no management and the Audit Committee sets up a special Audit Department which is composed During the reporting period of an audit team of professional quality and rich experience. The Audit Department regularly

major risk events occurred in conducts internal audits and risk assessments to independently review the effectiveness of key

Key performance 2024 the Company which provides a business processes financial reporting and internal controls ensuring that risks are identified

solid safeguard for the smooth and effectively controlled in a timely manner.operation of corporate business

During the reporting period the Company’s E interactive platform answered investor questions more than 1 0 0 accumulatively; and the realization of strategic

goals.As required by the rules of the exchange the Company held annual and semi-annual performance presentations;

Due to the listing of “Juheshun convertible bonds” a special presentation on the listing performance of convertible bonds was

held. Training on code of conduct for duties performance and stock trading of directors supervisor and senior managers Case

In December 2024 the Company invited external expertsto organize a special training entitled “Code of Conduct forDuties Performance and Stock Trading of Directors Supervisorand Senior Managers” for directors supervisors and seniormanagers (hereinafter referred to as “directors supervisorsand senior manager”). This training aimed to strengthen the

normative awareness of directors supervisors and senior

managers on corporate governance information disclosure

and stock trading behavior and ensured that their duties

performance met the regulatory requirements to prevent the

risk of violating laws and regulations.Training on code of conduct for duties performance and stock trading of

directors supervisor and senior managers

Performance presentation

Tax management

A good internal control mechanism is the basis of tax management which can ensure the standardization and compliance of the tax process.The Company developed a strict financial management system to effectively prevent tax risks avoiding legal consequences and economic losses

caused by violations. The tax management requirements in the financial management system clearly stipulate that the Company shall conduct tax

declaration payment and planning in strict accordance with the national tax laws regulations and policies and shall regularly conduct tax self-

examination and external audit of the parent company and local subsidiaries ensuring the accuracy and compliance of tax processing.Key performance 2024

During the reporting period the Company d i d n o t c o n d u c t any major tax disputes or penalties. Meanwhile the Finance Department

timely grasped the adaptability between applicable policies and the Company to fully enjoy the benefit of such policies bringing income to

the Company’s annual profit index

Convertible Bond ListingPerformance Briefing

22 23ESG Report 2024 Juheshun Advanced Materials Co.Ltd.

商业道德聚合顺恪守反贪腐与反贿赂相关法律规定,将商业道德管理作为企业Commercial 文We 化stri的ctly核 co心mp组ly w成ith部 the分 ap,plic致ab力le l于aws构 an建d r诚egu信lat、ions透 of明 an的ti-co商rru业pti环on 境and。 an公ti-b司rib通ery过 规and范 we员 re工gar行d co为mm、er强cia化l et道hic德s m意ana识ge,me确nt a保s a在 co经re p营art活 of动 our中 co遵rpo守rat法e cu律ltu法re 规和职 Fair competitionEthics committing to building an honest and transparent commercial environment. Moreover the 业Com道pa德ny 准ma则inta,ins维 th护e co公rpo司rat声e re誉pu和tat利ion 益and相 th关e tr方ust的 of 信sta任keh。old公ers司 by《 sta员nd工ard手izin册g 》中the包 beh含av明ior 确of e的mp商loy业ees道 st德ren规gth范eni和ng 员eth工ica行l aw为are规ne范ss 要ens求uri,ng 明com确pli禁anc止e w任ith何 law形s 式 The Company always adheres to the principle of fair competition and strictly abides by anti-monopoly laws and regulations committing toregulations and professional ethics in operating activities. In addition the Company’s Employee

的贿赂、腐败和不正当交易,并设立了多样化的举报机制和内部调查 maintaining a healthy market order. Currently the Company has established a sound anti-monopoly compliance system and regularly conductsHandbook contains clear commercial ethics and employee code of conduct requirements self-inspection and risk assessment of business activities ensuring that there is no monopoly agreement and abuse of market dominant position in

程whi序ch ,clea确rly保 pro违hib规its行 an为y fo能rm够 of 被brib及ery时 c发orru现pti和on 处and理 im。proper transactions and we have pricing sales cooperation and other links. During the reporting period the Company always adhered to the principle of fairness and transparencyestablished a diversified reporting mechanism and internal investigation procedures to ensure in market competition and did not involve any anti-monopoly investigation or punishment winning the trust and respect from customers and

that violations can be detected and dealt with in a timely manner. partners and also making positive contributions to the healthy development of the industry.

2024年,公司不断完善内部举报机制和举报人保护机制,开设举报邮

箱In 2、02举4 t报he 短Com信pa、ny沟 con通sta反ntl馈y im微pr信ove群d it,s in2te4r n小al r时epo接rti收ng 员me工cha举nis报m a,nd同 wh时istl对ebl举owe报rprotection mechanism and opened reporting emails reporting SMS messages communication

信fee息dba严ck 格We保Ch密at g,rou保ps护 to 举rec报eive人 em免pl受oye打es’击 rep报or复ting。 24 hours a day. Meanwhile we keptthe reporting information strictly confidential to protect whistleblowers from retaliation. Equal treatment of small and medium-sized enterprises公平竞争

The Company attaches great importance to cooperation with small and medium-sized enterprises and always adheres to the principle of equality

and mutual benefit committing to building harmonious supply chain ecology and reducing operational risks. In the procurement cooperation and

公司始终坚持公平竞争原则,严格遵守反垄断法律法规,致力于维护健康的市场秩序。当前,公司已建立完payment links the Company has formulated a clear support policy for small and medium-sized enterprises ensuring that small and medium-sized

善的反垄断合规体系,并定期对业务活动进行自查和风险评估,确保在定价、销售、合作等环节中不存在垄 enterprises can enjoy equal opportunities in competition and the Company also provides them with technical support and training services. During断协议、滥用市场支配地位等行为。报告期内,公司在市场竞争中始终秉持公平、透明的原则,未涉及任何 the reporting period the Company established long-term and stable cooperative relations with many small and medium-sized enterprises andthere was no unfair treatment or overdue payment.反垄断调查或处罚,赢得了客户和合作伙伴的信任与尊重,同时也为行业的健康发展作出了积极贡献。

平等对待中小企业

公司高度重视与中小企业的合作,始终坚持平等、互利的原则,致力于构建和谐的供应链生态,并降低运营风险。公司在采购、合作及付款等环节中,制定了明确的中小企业支持政策,确保中小企业在竞争中享有平 Key performance 2024Information The Company fundamentally understands the importance of information assets and maintains 等机会,并为其提供技术支持和培训服the务 se。cu报rity告 of 期info内rm,atio公n a司sse与ts 众by 多est中abl小ishi企ng 业a c建om立pre了hen长siv期e in稳for定ma的tio合n p作rote关cti系on ,未S出e现c任u何ri不ty公平对待或拖欠款项的情况sys 。tem to prevent risks such as network attack and data leakage. The Company adopts During the reporting period advanced technical means in daily network security operation and maintenance such as dataencryption firewall and intrusion detection system and regularly conducts information security The Company conducts 6 information security management trainings and the coverage rate was 7 1 % .training and emergency drills for employees. During the reporting period the Company adhered

to the strict confidentiality principle and strictly controlled the acquisition storage transmission Among them the Company organized 2 information security training sessions for subsidiaries.and usage of important information so there were no major information security incidents

effectively ensuring the stable operation of the corporate business.IT personnel attended the network security training session of key private enterprises in Qiantang District to learn

Case

information security knowledge

In September 2024 the Party and Mass Service Center in Qiantang District held a network security training session of key private enterprise

attracting many IT personnel to participate. The Company attaches great importance to network security so actively sent backbone personnel

to participate in this training session. In this training session the Company’s IT personnel not only improved the network security technology

capabilities but also deeply understood the current network security situation and protection priorities accumulating valuable experience for the

Company’s network security.

24 25ESG Report 2024 Juheshun Advanced Materials Co.Ltd.

Party Building The Company always adheres to the Party building guidance and integrates the Party building work into all aspects of corporate governance and business development giving full play to the Juheshun Luhua protected the health and safety of frontline employees in project construction Case

Guidance role of the Party organization as a fighting fortress and the vanguard role of Party members. Moreover the Company strengthens the ideological and political construction organizational

construction and style construction of employees to promote the realization of the Company’s Under the guidance of the Party building Juheshun Luhua actively participated in a number of activities organized by the Zaozhuang Working

strategic goals and enhances the cohesion and responsibility of employees. In addition the Committee presenting our social responsibility and humanistic care. Juheshun Luhua cooperated with the Zaozhuang Working Committee to go

Company regularly conducts themed Party day activities Party class learning and community deep into the frontline of project construction for distributing heat-prevention and cooling supplies for employees and conducted heat-prevention

activities and combines Party building work with corporate management and cultural and cooling knowledge publicity effectively improving the safety awareness and health protection of employees. In these activities Juheshun Luhua

construction to achieve a win-win situation of business development and social responsibility as not only strengthened the linkage with the higher Party committee but also provided powerful support for the project construction demonstrating

a result the Party organization has played an important role in the Company’s major decisions the temperature and intensity of the Party building.and provides a strong political safeguard and spiritual motivation for the Company’s high-quality

development.Changde Juheshun held a regular activity of the Party organization to promote the deep integration of Party building

Case

and corporate development

In January 2024 the Party branch of Changde Juheshun held a regular activity

of the Party organization which was presided over by the branch secretary. The

meeting focused on five aspects clarifying the standardization requirements and

diversified organizational forms of Party branch construction. In this meeting the

Party branch of Changde Juheshun further clarified the direction of work and laid

a solid foundation for promoting the deep integration of Changde Juheshun's Party

building and production & operation.A regular activity of the Changde Juheshun Party organization

Juheshun Luhua protected the frontline employees in project construction

The organizational structure and It is emphasized that the Party branch It is emphasized that the Party members

operating mechanism of the Party must resolutely implement the Party’s sha l l consc ient ious ly fu l f i l l the i r

branch must meet the Party’s standards line principles and policies ensuring obligations and play a vanguard role

ensuring the standardization and that the resolutions of the superior Party contributing to the development of the

seriousness of the branch’s work organizations are implemented in the Company and Party building

Company

Standardized Implement Party’s Fulfill the

Party branch line principles and obligations of

setup policies Party members

Diversified Implement the

organizational tasks of the Party

forms organization

Party branches are encouraged to Party members are required to actively

adopt a variety of innovative forms in complete the tasks assigned by the Party

conducting activities enhancing the organization ensuring that the decision-

attractiveness and effectiveness of making and deployment of the Party

organizational life organization are effectively implemented

26 27ESG Report 2024 Juheshun Advanced Materials Co.Ltd.

Innovative R&D and technology leading to

promote upgradeHolding the core concept of “innovation leads future quality lays foundation service achievesvalue” Juheshun is committed to achieving sustainable development. Stimulating the vitality

of development via innovation drive winning the market trust via outstanding quality creating

long-term value via customer-orientation the Company constantly promotes the progress of its

own and the industry contributing more to the society.Our actions

Innovation drive

Quality management

Customer service

SDGs equivalent 02

28 29ESG Report 2024 Juheshun Advanced Materials Co.Ltd.

Innovation Drive Juheshun always adheres to the development strategy of innovation drive and attaches great importance to R&D innovation and green design committing to promoting technical progress Key awards

and sustainable development. We have established a sound R&D incentive mechanism to

fully mobilize the enthusiasm and creativity of R&D personnel ensuring the constant output of

innovative results. Meanwhile we pay attention to intellectual property management to strictly

protect the core technological results and we always adhere to the bottom line of scientific and

technological ethics to ensure that innovative activities are conducted in a compliant healthy

and orderly manner contributing to the high-quality development of the industry.Innovative R&D

The Company always regards innovative R&D as an important source of core competitiveness and we are committed to improving our innovation

ability and R&D level via a series of measures. In order to ensure the efficient and orderly development of R&D work the Company has formulated

the Research and Development Organization Management System the Intellectual Property Management Control Procedures and the Research

and Development Input Accounting Management System. Due to the sound R&D process and under the concept of green design and sustainable

development the Company promotes product innovation and we pay attention to the transformation and application of R&D results striving to

provide environmentally friendly and efficient products for the market. Meanwhile the Company has established the Scientific and Technological

Results Transformation Management System and the R&D Performance Assessment and Technological Innovation Reward System so the incentive

measures have been used to mobilize the enthusiasm of R&D personnel improving R&D quality and efficiency.

30 31ESG Report 2024 Juheshun Advanced Materials Co.Ltd.

Product R&D Green design

The Company attaches great importance to the standardization and systematic management of product design and development process so in The Company always holds the green concept in the design and R&D process and we are committed to integrating environmental awareness

order to ensure that every link of products from concept to finished products can meet high standards of quality requirements we have specially into every link of product development ensuring that products not only satisfy functional requirements but also create a positive impact on

formulated the Design and Development Control Procedure. This Procedure specifies the control measures for key steps such as design input the environment. We adopt green design approach to effectively reduce resource consumption and waste emissions promoting sustainable

output review verification and confirmation in details aiming to ensure that the products designed and developed not only satisfy the expectations development.and demands of the customers but also meet the requirements of applicable government laws and regulations via strict process management.Nylon chip is a recyclable material and the nylon waste generated in the production process of the

Product downstream industry waste yarns worn fishing nets tire fabrics plastic products can be reprocessed Resource

design and Design input Product design Product design recycling into new products via physical and chemical treatment which can effectively reduce resource waste and

development review review verification improve resource utilization realizing the closed-loop cycle of resources and reducing waste emissions

planning Process and the demand for new raw materials

Design and Product design

Sample trial

development design and development

production

input development and review

validation

Substitute Nylon chips have excellent performance and can substitute some traditional materials with greater

some highly environmental impact such as some metal materials. Compared with the production of metal materials

Design and development process pollutant the production process of nylon chips has lower energy consumption and pollutant emissions and it is

materials

easier to recycle and dispose after use

Due to the constant innovation the Company has developed more than 30 new products in which a number of technologies have reached the

leading level in China and their market shares rank the top four in China becoming a leading enterprise in the nylon chips industry. Our products

are widely used in textile automotive electronics machinery and other fields to promote industrial development and create significant economic

benefits. In the textile field the textile made of nylon chips has good wear resistance and elasticity; in the home field our products are used in Reduce * Automotive field: The automotive parts and components made of nylon 6 chips are more durable than

high temperature kitchen utensils; in the field of sports equipment our products can provide a lightweight operation experience to meet diverse carbon other materials reducing carbon emissions caused by frequent replacement due to product damage;

demands. As a result our outstanding products and technology constantly inject impetus into the development of the industry and create higher emissions meanwhile the promotion of automotive lightweight technology is to use plastic to substitute steel. If

value for customers. from

downstream the automotive weight is reduced per 100kg it can reduce fuel consumption by 0.3L to 0.6L and reduce

industries carbon dioxide emissions by about 5g/km

Time Innovative results Results source * Electronic and electrical fields: Nylon chips can be used to manufacture high-performance insulation

materials and electronic components which can improve the energy utilization efficiency of electronic

Industry—academia—research

Polyamide-6 material for food packaging film with antibacterial effect equipment and reduce the energy consumption of equipment during usage indirectly reducing the

transformation

carbon emissions

Polyamide-6 materials for barrier explosion protection Independent R&D transformation * Building field: The sealing materials and insulation materials made of nylon chips have good sealing

2021 MVR re-purification energy-saving process and device Independent R&D transformation and insulation properties which can reduce the energy consumption of buildings and reduce the use of

Copolymerized nylon material for high strength fishing net Independent R&D transformation HVAC and other equipment thus reducing carbon emissions

In situ polymerization grade carbon black polyamide-6 chips Independent R&D transformation

Industry—academia—research Positive impact of the products on the environment

Synthesis of high hydrophilic nylon 6 polymer and its industrial R&D

transformation

2022 Development of automotive grade in situ PA6/66 copolymer material Independent R&D transformation

R&D of Oxford fabric special spinning polyamide-6 chips Independent R&D transformation The innovative energy storage project helped green transformation and energy efficiency improvement Case

Synthesis of high toughness nylon 6 polymer and process R&D Independent R&D transformation

In 2024 the Company invested millions of yuan to develop a

2023 R&D of high toughness copolymer polyamide 66/6 Independent R&D transformation

2MW/4MWh user side energy storage project. This Project reduced the

R&D of microdenier fiber polyamide-66 ships Independent R&D transformation corporate electricity costs by charging during the valley and discharging

R&D of polyamide materials for direct injection molding connectors Independent R&D transformation during the peak. This not only reflects our capabilities in green design

and innovation but also optimizes energy management helping promote

Development of polyamide material for medical nylon thread Independent R&D transformation

sustainable development and enhance our competitiveness.

2024 R&D of polyamide material for low temperature and low voltage electrical resistance Independent R&D transformation

R&D of polyamide materials for permanent magnet device injection molding Independent R&D transformation

R&D of polyamide materials for high-depth dyeing spinning Independent R&D transformation

Electromagnetic energy storage project

Main corporate R&D and innovative results in the recent four years

32 33ESG Report 2024 Juheshun Advanced Materials Co.Ltd.

R&D rewards Key awards

The Company attaches great importance to the construction of innovation incentive mechanism and in order to stimulate the enthusiasm and

creativity of R&D personnel we have specially formulated the R&D Performance Assessment and Technological Innovation Reward System.This System clearly defines the assessment indicators and designs the salary structure of R&D personnel as a combination of basic salary and

project performance bonus ensuring that their income is directly linked to the R&D results. At the end of each year the Company will conduct

a comprehensive performance assessment on the R&D personnel and for cross-year or long-term projects we will conduct stage assessment

according to the progress of the projects.In addition the Company has also set up a variety of technological innovation incentives including patent bonuses and government innovation

incentives so we adopt multi-level incentive measures to encourage R&D personnel to constantly break through technical bottlenecks promoting

corporate innovation and development.Project

Project R&D costs Project

Project cost completion

completion budget technical

reduction progress Intellectual property related awards

quality control difficulty

control

Key performance 2024

Assessment indicators Intellectual property results Usage in production

As of the end of the reporting period

Used in the development of

the Company has obtained

Preparation of high temperature resistant copolymerization products improving

76 transparent polyamides product transparency and developing patents innovative products

including 1 4 Lay a solid foundation for the development invention patents R&D of nylon 66 nanocomposite materials

of nylon 66 series products

Government Scientific and Process

innovation technological paper and 6 2 utility model patents. Chilled water and triple-effect evaporating technology

reward publication reward

steam heat exchange devices of granulator

innovation

Significantly reduce the corporate energy

MVR re-purification device

consumption of electricity and steam

Usage of energy-saving device for high

Professional temperature chips cooling

title promotion Patent reward

reward Solid phase viscosifier

Rotary blending device Greatly improve product quality

Removal device for ring dimer in

Form of technological innovation rewards extraction water

Intellectual property Usage of intellectual property results in production

In order to strengthen the systematic management on intellectual property the Company has formulated the Intellectual Property Management Scientific and technological ethics

Control Procedure to realize the collection accumulation sharing and orderly transfer of knowledge within the enterprise via a standardized

process which can ensure the efficient utilization of knowledge resources providing powerful support for the improvement of corporate innovation

ability. Under the promotion of this management system the Company has successfully applied for and obtained a number of patents. These When conducting business the Company strictly complies with national and international laws and regulations ensuring that product development

patented technologies not only play a key role in the R&D link but also have been widely used in actual production which significantly improves the and technology application meet the requirements of scientific ethics. Holding the business philosophy of integrity we emphasize transparency and

technical level of products and market competitiveness injecting a powerful impetus for the corporate sustainable development. compliance and pay attention to user privacy protection and respect for intellectual property rights. We have established a sound management

system and regular training to ensure compliance of all employees eliminating any unethical behavior.

34 35ESG Report 2024 Juheshun Advanced Materials Co.Ltd.

Quality Holding the concept of “people-oriented quality first; customer respect sincere and trustworthy” Juheshun focuses on product quality management and strict controls the Improve product quality

Management production process to ensure that products meet standards. We treat nonconforming products in time and constantly optimize the production process so as to strive to improve product

quality for satisfying customer demands promoting the long-term and steady development of Under the increasingly fierce market competition product quality is the fundamental for corporate survival and development. In order to

the Company. comprehensively improve product quality the Company has formulated clear quality goals from a strategic height and has systematically promoted

the construction of quality management system. We have taken many efforts such as introducing advanced technologies optimizing production

processes strengthening supply chain management and constantly conducting quality training so that we constantly consolidate the quality

Key awards foundation to promote the product quality to a new level.Customer complaint On-time delivery Customer

handling 100% rate 95% satisfaction≥85%

Quality goals

The first and last materials for starting

Semi-finished products and up and shutting down shall be controlled

finished products are strictly and isolated for downgrade products

Government quality awards subject to internal control 01 02 in accordance with the Management

standards Measures on First and Last Materials for Key efforts Starting up and Shutting down

of quality

management

The management of key equipment

Strict control on raw and 03 04 shall be conducted in accordance with auxiliary materials

the Equipment Management System

Key efforts of quality management

We organized production quality training to improve employees’ quality awareness and operation skills Case

Quality management system certification certificates

In September 2024 the Company organized comprehensive production

quality training with the participation of 155 employees. The training

explained in details the influence of each link (such as feeding

polymerization granulating extraction and drying) on the quality of the

finished product as well as its manifestation. After the case analysis

and interactive discussions the employees deeply understood the

Quality critical control points of each production step further improving quality

People-oriented quality first Customer respect sincere and trustworthy

policy awareness and operation skills.Production quality training courseware

Quality policy

36 37ESG Report 2024 Juheshun Advanced Materials Co.Ltd.

Juheshun always adheres to the customer-oriented

We introduced the high-precision density instrument to shorten the detection time helping improve product quality Case Customer Service service concept and we have won the long-term trust

from customers with our advantages of stable product

In 2024 in order to constantly improve product quality and production efficiency the Company introduced a high-precision density instrument. The quality and high cost-effectiveness so the customer

application of this device reduced the density detection time from the original 3.5h to 0.5h and the detection efficiency was increased by 600%. stickiness has been significantly enhanced. Moreover we

This improvement not only significantly optimized the production process and shortened the production cycle but also further strengthened the have obtained many customer awards and established

product quality control ability via more accurate detection means which effectively reduced the quality risk in the production process providing a an annual contract cooperation relationship with a

powerful safeguard for product stability and customer satisfaction. number of customers. In order to constantly improve

customer experience the Company has established a

sound customer satisfaction management and customer

complaint management system. These systematic

processes and systems can ensure that customer

Customer award

demands are accurately identified quickly responded

and efficiently solved further consolidating the long-term

Disposal of nonconforming products partnership with customers.In order to ensure that product quality meets the requirements the Company has formulated the Management Control Procedure for

Nonconforming Products to prevent the unintended use or delivery of nonconforming products. According to this Procedure once a product is Customer satisfaction management

found to be nonconforming the Quality Inspection Department will issue a “Notification of Nonconforming Product” to the Production Department

requiring the Production Department to correct prevent and rectify and the Quality Inspection Department will verify the rectification results. If

there is a customer complaint for return of goods the Company will organize the QC team to conduct 8D analysis of the complained products

The Company has established a sound customer satisfaction management system. According to the Management Control Procedure on Customer

and deeply find the root cause of the problem and take effective measures to ensure that similar problems do not happen again thus constantly

Satisfaction and the Management Control Procedure on Customer Demand Identification we can ensure that customer demands are accurately

improving product quality and customer satisfaction.identified and fully understood and we will evaluate our ability to meet these demands. We regularly conduct customer satisfaction surveys to

collect feedback and analyze data identifying the improvement opportunities. Meanwhile we constantly optimize the production plan to improve

the delivery efficiency and ensure that the contract or order requirements are reasonable clear and documented so that we can constantly

improve customer satisfaction achieving the common development of customers and the Company.

010203040506

Survey and Survey Survey data Monitor the Customer system Create customer

planning: Screen implementation: statistics: implementation review file

customers for Questionnaires Summarize the of improvement

satisfaction are issued and survey results and measures until

survey and make collected 5 working identify the items the customer is

the Customer days later required to be satisfied

Satisfaction Survey monitored

Form

Customer satisfaction survey process

We optimized the polyamide chip production plan to improve delivery efficiency and customer satisfaction Case

In 2024 the Company made a significant contribution to customer service via improving the chip production plan and optimizing the production

transfer operation. After the accurate production scheduling the equipment utilization rate was greatly increased and the production cycle was

shortened from 10 days to 7 days significantly improving the speed and accuracy of order delivery. Meanwhile the matching degree between

procurement and production plan was optimized to ensure the flexibility and response speed of production. Most important of all the standardized

production processes and strict quality control measures reduced the rate of defective products improving the product consistency and the

customer satisfaction was improved from 94% to 95%.

38 39ESG Report 2024 Juheshun Advanced Materials Co.Ltd.

Supply Chain Focusing on the goal of high-quality development Juheshun constantly optimizes supply chain Customer complaint management management technology to improves the level of specialization and sustainability. The Company

Security is committed to building a stable transparent and green supply chain system and strengthens

Key performance 2024 the resource allocation and risk management & control ensuring supply chain security and

The Company has established a standardized customer complaint management system. quality under control. We constantly optimize the procurement management to improve the level

According to the Management Control Procedure on After-sales Service and the Operation During the reporting period the Company of inventory management and also contribute to the upgrade and sustainable development of

Center Business Process System we define the complaint handling process ensuring that the industry.customer feedback is timely response and effectively resolved. The complaint handling process received 0 complaints the resolution rate

includes receiving recording analyzing processing and tracking to ensure that each complaint was 1 0 0 % and the customer feedback

is accurately recorded and assigned to the relevant department for handling. We regularly

analyze the complaint data to identify the potential problems and constant improve so as to satisfaction was 9 5 % . Supplier management procedure

promote service quality and enhance customer trust and satisfaction.In order to strengthen the ability of supplier management the Company has formulated the Supplier Management Regulations. We select evaluate

Start and manage the suppliers to ensure that the procured products and received services are effectively controlled to meet the requirements of

customers and the Company. It is stipulated that starting from the procurement process quantitative indicators are proposed for the detailed

problems existing in the steps to improve the quality and transparency of procurement.Purchase products

Customer feedback problem President

Feedback abnormal quality information and Finance

Check the relevant provide corresponding samples and related P rov i d e s a mp l e Department

technical agreements information (process loss etc.) determine information such

signed by the customer the type of customer complaint and fill in the as chips Quality Inspection Manager of Procurement

Customer Complaint Handling Form Department Department

Production Procurement

Department staff

Reviewed and approval Reviewed by manager R&D Center Process owner Indoor staff

by competent deputy of Sales Department

general manager

Process Process

Salesman communicates solutions with supporter implementer

Judge the problem customers again and provides technical

support to customers if necessary

According to the result of cause The Quality Inspection

analysis notify the responsible Department shall identify Responsibilities of different management departments

departments to make rectification the cause according to the

and fill in corrective and preventive product process data and

measures and 8D report. quality problem samples

The general manager gives the review results

Salesman communicates solutions with

customers again and provides technical Customer satisfaction

support to customers if necessary Development Primary Evaluation and Daily Performance Site review of Elimination

demand selection of new recognition of management of evaluation suppliers management of

accepted suppliers new suppliers suppliers management of suppliers

Data archiving and customer follow-up usage tracking Problem closed suppliers

Customer complaint handling process Supplier selection process

40 41ESG Report 2024 Juheshun Advanced Materials Co.Ltd.

Raw material management goals and results Green supply chain construction

The management of raw materials and packaging materials is an indispensable part of the corporate production and operation and its Focusing on the concept of sustainable development the Company promotes the construction of recycling economy and formulates green supply

management goals and results are directly related to product quality production efficiency and cost control. The Company attaches great chain construction plans to guide supplier selection and raw material procurement. In order to ensure the smooth progress of the construction the

importance to the quality management of raw materials and packaging materials and has formulated the document Management Goals and Company has developed various safeguard measures to promote corporate procurement as planned.Results of Raw Materials and Packaging Materials. This Document specifies the raw material management goals packaging materials management

goals management results and other contents in details helping the Company achieve good results in inventory management. These results not

only improve the corporate operation efficiency but also bring significant economic benefits to the enterprise. Formulate supplier evaluation standards: Formulate green supplier evaluation standards covering the

environmental protection of raw materials energy consumption in production process waste treatment

《原材料与包装材料管理目标与成果》 and other aspects. Conduct primary evaluation of existing major suppliers and establish environmental

Key performance 2024 Short-term protection files of suppliers.Release green procurement guidance: The Company has officially released its internal green procurement

W e o p t i m i z e d t h e i n v e n t o r y 原材料管理目标 包装材料管理目标 管理成果 guidance which aims to clearly define the environmental criteria and procurement priorities that

management to reduce the inventory procurement staff shall follow when selecting raw materials and products.cost by 8.24% and improve material 确保原材料质量 确保包装材料质量 成本控制

turnover efficiency by 8.28%.优化库存管理 优化包装设计 质量提升 Supplier training and cooperation: Based on the evaluation results we will provide training and technical

support to suppliers that fail to meet the requirements helping them improve their production process and

降低采购成本 降低包装成本 效率提高 Medium- improve environmental protection. We establish long-term strategic partnerships with quality suppliers to

term jointly conduct green R&D projects.提高材料利用率 推广绿色包装 环保贡献 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

文件内容逻辑图 time promoting the green development of the entire supply chain.In order to satisfy the demands of customers the Company has formulated the document Incoming Acceptance and Usage Standards for Raw and Comprehensive green transformation of supply chain: Ensure that the entire supply chain realizes green

Auxiliary Materials which further controls conforming raw and auxiliary materials to reduce the potential product risks caused by the defects in the transformation from raw material procurement manufacturing product transportation to sales and use

raw and auxiliary materials. This Document specifies responsibilities acceptance and usage standards and describes the process and treatment and the whole process is in line with recycling economy and environmental protection requirements. Long-term

methods improving the standardization and compliance of corporate production. We will encourage upstream and downstream enterprises in the supply chain to jointly formulate and

implement recycling economy development strategy.研发中心 生产办 质检部 采购部 运营中心总经理 Corporate green supply chain construction plan液体己内酰胺

请验单 01 Set up a special leadership team Enhance employee training 02检验

Y 直接接收品

N This team is headed by corporate senior leader and the Regularly organize employees to participate in knowledge

卸料 物资质量反馈单 heads of all departments are members responsible for and skills training related to recycling economy enhance

the formulation promotion and supervision of the recycling employees’ environmental protection awareness and待审批接收品不合格品

悬挂标识 economy target plan participation退货

Corporate

Y safeguard

批次接收情况统计 一级审核 measures

03 Increase fund input in recycling economy field Establish an assessment mechanismN 04N 二级审核

退货

Y Special funds are set for key links such as technology R&D Incorporate the completion of recycling economy targets into

equipment renewal and project construction. Meanwhile the performance assessment system of departments and

N actively strive for government support funds and preferential employees. Departments and individuals with outstanding

批准 policy support performance will be given honors and substantial rewards

Y while strict accountability mechanisms will be implemented

卸料更新统计表 退货 for those who fail to complete the targets

公司液体乙内酰胺审批流程图 Corporate safeguard measures

42 43ESG Report 2024 Juheshun Advanced Materials Co.Ltd.

Industrial Synergy Based on the production of polyamide 6 new materials Juheshun constantly promotes the S/N Honor name Type Recognition timehigh-quality development of the industry. With Hangzhou as the strategic core to coordinate

production operation and Group managements we have expanded our production capacity to

Shandong and Hunan which not only extends the new material industry chain to the terminal 1 High-tech enterprise National level 2022.12

link in the chemical field realizing the strategy of chain extension but also supports upstream

enterprises through cooperation to implement capacity expansion realizing the full digestion

of upstream capacity which reflects the advantages of value synergy of the industrial chain 2 Specialized refined differential and innovative “Little Giant” enterprise National level 2023.07

and plays our bridge role in the intermediates of the subdivision field. Meanwhile we actively

participate in the formulation of industry standards to promote technological progress in the

3 Corporate research institute Provincial level 2022.12

industry and we cooperate with a number of universities in R&D to improve the level of scientific

research and application capabilities. This series of industry layout is not only close to the

production and service fields related to the industrial chain but also realizes the comprehensive “Specialized refined differential and innovative” small and medium-sized

economic value of the industry ecosystem to reduce costs and increase efficiency to the 4 Provincial level 2022.12enterprise

greatest extent.

5 High-tech corporate R&D center Provincial level 2018.01

S/N Standard name Type Release time Formulation

6 Patent demonstration enterprise Municipal level 2023.12

GB/T 38138-2019 National

1 2019.10.18 Participation

Fiber grade polycaprolactam (PA6) chips test method standard 7 Corporate technology center Municipal level 2017.11

T/ZZB 1775-2020 Group 8 Trade secret protection demonstration enterprise Municipal level 2023.102 2020.11.03 Participation

Polyamide/spandex air covered yarn standard

9 People’s government quality management innovation award District level 2024.01

FZ/T 51023-2024 Industry

3 2024.07.05 Participation

Fiber grade recycled polycaprolactam (PA6) chips standard

List of honor for corporate innovation ability certification

List of participation in formulating industry standards

44 45ESG Report 2024 Juheshun Advanced Materials Co.Ltd.

Green Environment and Sustainable

Development to Protect Ecology

Juheshun thoroughly implements the concept of green development and actively responds to

the national call for ecological civilization construction integrating ecological environmental

protection into the corporate development strategy. We are committed to reducing our impact

on the environment via conducting special environmental actions optimizing production

processes promoting energy conservation emission reduction and resource recycling.Meanwhile we advocate green production methods and lifestyles and accelerate the formation

of a new model of sustainable development so we promote high-quality corporate development

with a high level of ecological environmental protection contributing to the win-win situation of

economic and ecological benefits.Our actions

Environmental compliance management

Efficient resource usage

Waste discharge control

Address climate change

Biodiversity conservation

SDGs equivalent 03

46 47ESG Report 2024 Juheshun Advanced Materials Co.Ltd.

Environmental In order to implement the Environmental Protection Law of the People’s Republic of China and applicable laws & regulations the Company has established a sound environmental Environmental management system

Compliance management system and formulated 20 environmental management systems including the Environmental Management System and the Control Procedures on Environmental Goals and

Management Management Program. The Company has also formulated the Emergency Plan for Environmental Holding the concept of “green development and responsibility first” the Company deeply integrates environmental protection into its development Emergencies in accordance with the Guidelines for the Preparation of Emergency Plans for strategy and it is committed to building a scientific and sound environmental management system. We set clear environmental goals and an

Environmental Emergencies to improve the prevention response and disposal capabilities of efficient environmental protection organizational structure to ensure that the environmental protection work is conducted efficiently and is in

environmental emergencies. accordance with applicable regulatory requirements and provide powerful support for green development.In addition the Company is preparing a green factory plan to promote the corporate green and

low-carbon transformation achieving intensive land clean production waste resources and low-

carbon energy. Organizational structure

The Company has established a sound environmental management organizational structure to ensure the effective implementation of

environmental protection policies and smooth daily management. The Company has set up an environmental protection leadership team and

01 Environmental protection facilities shall be designed constructed and put into use simultaneously with an environmental protection daily management team forming a multi-level and all-round environmental management system. The leadership production facilities team is headed by the general manager the executive deputy general manager is the deputy leader and the members include the heads of all

departments responsible for the implementation of environmental protection policies and of major environmental protection decision-making. The

02 Environmental protection facilities shall be regularly maintained checked and repaired to ensure their daily management team is headed by the office environmental protection officer and the team members are related personnel of each workshop normal operation mainly responsible for daily environmental protection inspection and emergency treatment. In addition the Safety and Environmental Protection

Department acts as a full-time supervisory department to ensure the effective implementation of environmental protection work. This structure

03 The operation of environmental protection facilities shall comply with national and local environmental provides a powerful safeguard for corporate environmental protection management.regulations and standards

Principles of environmental protection management

Organize the implementation of national provincial municipal

and administrative committee’s policies laws and regulations on

Low carbon energy saving compliance with Environmental environmental protection

regulations policy Environmental protection constant improvement Plan arrange inspect summarize and evaluate environmental

Environmental protection work

protection Make decisions and arrangements for important environmental

leadership team protection work and activities throughout the Company

Environmental policy

Key awards Responsible for corporate environmental protection

daily inspection

Environmental protection

Coordinate and deal with corporate environmental

daily management team

emergencies

Corporate environmental protection

supervision department responsible

for corporate wastewater treatment

Establish environmental protection

Safety and Environment archives and record the results

Protection Department of each sampling monitoring and

inspection

Urge all departments and workshops

to properly clean the rain wells and

sewage wells

Corporate environmental protection organizational structure

Environmental management system certification certificates

48 49ESG Report 2024 Juheshun Advanced Materials Co.Ltd.

Environmental goals

Environmental impact assessment

The Company has formulated the Control Procedures on Environmental Factors Identification and Evaluation and the Control Procedures on

Environmental Operation providing scientific management basis for environmental protection work. We set up clear environmental goals and

establish a scientific environmental management system & operating mechanism to constantly optimize our environmental performance ensuring When promoting technological innovation and industrial upgrade introducing new technologies new processes new equipment and new

that our environmental protection work complies with applicable regulations. Currently our environmental management work has basically reached materials we must attach great importance to their potential impact on the environment. To this end the Company takes the initiative to

the standard and for a few areas that have not reached the standard we are actively promoting the rectification measures committing to achieving submit environmental impact assessment reports to applicable departments in the R&D stage and strictly implements the Three Simultaneous

all goals. Management Provisions on New Renovation and Expansion Projects. The environment impact assessment report provides a detailed analysis on

the possible impacts of pollutants on the environment and public health and proposes practical prevention and control measures to ensure equal

Noise compliance emission emphasis on technological innovation and environmental protection achieving the sustainable development goals.Separate operation methods are adopted for noise reduction of mechanical operations and sheet metal

tapping in sensitive locations or with special requirements

Mechanical blanking and sheet metal tapping shall be controlled within the production workshop and the

operation shall adjusted and conducted separately

Incorporation into sewage treatment system with a standard higher than the approval one to save social public resources

Corporate sewage treatment

Up-to-standard incorporation into sewage treatment system

No chemical leakage or explosion accident

Prepare operation instructions on the use and management of chemicals and toxic & harmful substances and

train operators before operation

A special warehouse or storage cabinet shall be set up for the storage of inflammable & explosive goods and

chemicals on the production site

Exhaust compliance emission

Pre-polymerization and post-polymerization injection with granulated waste gas water absorption treatment 48m Environmental impact assessment report

exhaust cylinder discharge

Containment of exhaust gases from polymerization devices reinforced equipment valves piping connections and

wastewater transfer processes Meanwhile Changde Juheshun has also promoted the EIA approval in an orderly manner and the Phase I production project has completed the

Exhaust gas discharge of heat medium system reinforced sealing and pipe and valve connection are welded environmental impact assessment approval discharge permit handling and environmental protection acceptance laying a solid foundation for

The exhaust gas of sewage tank anoxic tank aerobic tank and anaerobic sedimentation tank shall be covered by green production. Currently Phase II production project is in the stage of equipment installation and the relevant environmental procedures

arc plate have been entrusted to a qualified third-party institution to promote in an orderly manner fully reflecting our high sense of responsibility for

environmental protection.No fire incidents

Formulate relevant safety management measures responsible for daily management according to the regulations

Conduct emergency drills according to the requirements of the plan

Check boiler safety on time Environmental emergency management

In order to implement the Emergency Response Law of the People’s Republic of China and the Environmental Protection Law of the People’s

Various wastes shall be reasonably classified and disposed in accordance with legal requirements Republic of China the Company has formulated the Emergency Plan for Environmental Emergencies and the Regulations on Emergency

Response for Pollution Accidents and other systems aiming at establishing and improving the emergency management system for environmental

Waste shall be placed and disposed separately emergencies effectively preventing timely controlling and eliminating the hazards of environmental pollution emergencies and improving our

Hazardous waste shall be entrusted to a qualified entity for legal disposal and the transfer copy shall be kept in ability to respond to environmental risks. We clarify the emergency response process division of responsibilities and accident handling measures

the archives to ensure that we can act quickly and scientifically in environmental emergencies minimizing the impact on the environment and society.Level of hazardous industrial waste in/out of storage

Environmental goals and management plan

50 51ESG Report 2024 Juheshun Advanced Materials Co.Ltd.

01 Implement the guidelines policies and relevant provisions of the state local governments and higher competent authorities on the occurrence of environmental emergencies and emergency rescue

Organize the formulation and modification of emergency plans for environmental emergencies set up emergency rescue

02 team for environmental emergencies and organize the implementation of training and exercises for environmental

emergency rescue in a planned way

03 Review and approve the purchase plan of monitoring instruments protective equipment and rescue equipment for emergency rescue of environmental incidents

Check and urge the prevention measures of environmental incidents and the preparations for emergency rescue and urge

04 and assist relevant departments to eliminate the running bubbling dripping and leaking of toxic and harmful media in a timely manner

Safety risk assessment report in field of ecological environment Emergency plan for environmental emergencies 05 Release and cancel emergency rescue orders and signals organize and direct emergency rescue teams to conduct emergency rescue actions

Report the leakage volume of hazardous chemicals wind direction and other accidents to superiors and send reinforcement

Adhere Adhere to the

Principle of 06 request to relevant departments when necessary

to unified combination of

combining

Adhere leadership peacetime and

Adhere to wartime the corporate

to people classified

prevention first combination of full- self-help with 07 Organize and direct rescue teams to conduct rescue actions and be responsible for the mobilization of personnel resource orientation management time and part-time localization allocation and emergency teams

graded to make full use of

administration

response existing resources

08 Coordinate related work at the incident site. Organize incident investigation and summarize emergency rescue experience and lessons

Principles of emergency system for sudden environmental pollution accidents

09 Responsible for knowledge training on employees in the prevention of hazardous chemical poisoning and rescue methodsOrganizational structure of emergency agency

In response to emergencies the Company has set up an emergency agency with the emergency command as the core the general manager as the

Responsibilities of emergency command

chief commander the production manager as the deputy chief commander and it is composed of the communication emergency repair medical

rescue on-site security environmental monitoring supplies support and other emergency teams. Under the unified leadership of the command

each team performs its own duties and works together to ensure timely and effective handling of emergency incidents.Occurrence of pollution Report to emergency Determine pollution

accidents teams level

Chief commander

Define corrective

Deputy chief commander measures

Implement rectification Pollution accident occurrence

measures and treatment records

Prevent pollution from

occurring again

Emergency organization agency Emergency response steps

5253

Environmental

monitoring team

Emergency repair

team

Medical rescue team

On-site security team

Supplies support

team

Communication

liaison teamESG Report 2024 Juheshun Advanced Materials Co.Ltd.S/N Hazard source Accident type Hazard level Environmental protection training management

Fire and explosion Level III

1 Production workshop

We conduct the systematic environmental protection training management to promote the implementation of green development concepts and we

Leakage Level IV

regularly organize training covering hazardous chemicals management environmental protection norms and other fields to enhance employees’

safety awareness and operation skills. Meanwhile we hold the special sessions and other forms to strengthen the environmental protection

Fire and explosion Level III responsibility of all employees helping our constant performance improvement in the field of environmental protection.Caprolactam tank area hazardous

2

chemical warehouse

Leakage Level IV We held the hazardous chemicals management training to standardized operation for protecting the green environment Case

Leakage Level IV

In October 2024 the Company organized a comprehensive hazardous

3 Sewage treatment facility chemical safety training involving a total of 14 employees. This

Abnormal operation/out of service Level IV training covered several key links such as the receipt and storage of

hazardous chemicals transportation norms and emergency handling

of leakage aiming to improve the safety awareness and operation

Leakage Level IV

skills of employees so as to ensure the standardization and safety

4 Waste gas treatment facility of hazardous chemicals management. After the combination of

Abnormal operation/out of service Level IV theoretical explanation and practical operation the trainees had a

deep understanding of the potential risks of hazardous chemicals and

countermeasures thereof laying a foundation for our safe production

and environmental protection.

5 Hazardous waste warehouse Leakage Level IV

In November 2024 Juheshun Luhua conducted an environmental

protection training involving a total of 47 employees on the same

theme. Hazardous chemicals training

Emergency accidents classification and hazard level table

Changde Juheshun held a environmental protection session to promote the implementation of green development concepts Case

We held emergency drills for sudden environmental accidents to protect environmental safety and employee health Case

Changde Juheshun New Materials Co. Ltd. held an environmental

In July 2024 the Company organized an emergency drill for sudden environmental accidents and a total of 15 employees participated. The drill protection session which was organized by the Production

simulated the accident scenarios covering early warning response resource deployment and other links and a comprehensive assessment and Department and attended by relevant departments. This session

summary was conducted after the drill. This drill improved the accident prevention and control ability in the factory to safeguard the safety and focused on the implementation of the concept of ecological

health of employees and we can ensure the rapid response when accidents occurred effectively controlling losses and reducing environmental civilization and emphasized the solid environmental protection work

hazards & social impacts. during trial production laying a foundation for future environmental

protection goals. This session pointed out that environmental

protection was not only a necessary measure of production but also

a kind of responsibility and attitude so all employees are required to

work together to promote corporate environmental protection work Changde Juheshun environmental protection session

further.Sudden environmental accident drill site

54 55ESG Report 2024 Juheshun Advanced Materials Co.Ltd.

Efficient Resource Juheshun optimizes the utilization of energy and water resources via efficient resource management. The Company adopts the advanced energy-saving technology and equipment Key awards

Usage to significantly reduce energy consumption in the production process while minimizing water waste via the water recycling system. In terms of recycling economy the Company actively We implemented the energy-saving technical renovation projects to successfully improved energy utilization efficiency and obtained

promotes waste recycling and reuse transforming reusable materials in the production process patented technologies in related fields jointly promoting the realization of energy conservation and emission reduction goals.into valuable resources which not only reduces the environmental burden but also improves

economic benefits.Energy utilization

The Company implements the Energy Conservation Law of the People’s Republic of China and systematically promotes energy management

via a sound institutional system and organizational structure. Currently the Company has formulated the Management System on Energy

Conservation and Consumption Reduction and the Management System on Energy and Resources and has also established a three-level

(Company departments and employees) energy management network ensuring that energy management covers the whole Company. The Energy

Conservation Committee is led by the Manager of the Production Department and its members include the heads of various departments which

is responsible for coordinating the energy management of the whole Company and formulating energy conservation plans to effectively realize the

standardization and efficiency of energy management improving the energy utilization efficiency.Short-term goal Medium-term goal Long-term goal

Energy-saving device for endothermic Device for recycling exhaust heat energy Patent for re-concentration device

Energy upgrade and equipment upgrade: Energy management system improvement: Large-scale application of renewable en- effect of LNG vaporization after extraction water re-concentration of three-effect residual heat steam

Conduct energy upgrade to accurately Establish an energy management system ergy: Build solar power panels and small extraction water

identify high energy consumption set up special energy management posts wind power facilities on the roof and open

equipment and processes. Plan the and clarify their scope of responsibility. space of the factory to achieve par-tial

procurement proposal of energy-saving The intelligent energy management self-sufficiency in electricity. Ac-cording to

equipment and gradually eliminate old system is introduced to monitor energy the corporate production fea-tures explore The three-effect residual heat steam recovery device helped chemical enterprises save energy and reduce Case

equipment for example upgrade high- consumption in real time and conduct the feasibility of using other renewable consumption to achieve green and efficient production

energy-consuming lighting lamps to LED data analysis to achieve fine energy energy sources such as geothermal

ones. management. energy. In 2024 in response to the energy waste faced by chemical enterprises in the nylon polymerization production process the Company innovatively

developed and installed a three-effect residual heat steam extraction water re-concentration device. This device can make full use of the residual

heat steam generated in the three-effect evaporation process to secondarily concentrate the extract water effectively reducing the water content

Energy management goals

of the concentrated liquid and improving the product quality and polymerization efficiency. Meanwhile this device can recycle the residual heat

resources to reduce steam consumption achieving efficient utilization of energy.Electricity consumption management Gas consumption management Motor equipment upgrade and optimization to improve energy efficiency and reduce costs Case

All factories shall improve the utilization rate and load rate of Check and maintain the air pipelines valves and pneumatic tools

equipment eliminating the idling of equipment within the responsible scope every day to ensure the integrity of In 2024 the Company comprehensively upgraded the old

pneumatic tools connectors and air pipelines and timely deal

Set the air conditioner temperature properly. Except the central air with or replace any air leakage and inefficient motor equipment which were replaced with

conditioning the indoor air conditioning temperature is set not less high-efficiency and energy-saving motors and we optimized

than 26°C in summer and not higher than 20°C in winter; Don’t It is not allowed to use compressed air to blow the body blow the the motor control system. After this renovation the motor

turn on the air condi-tioner when there is no one in the room and ground or use it for other purposes

close the doors and windows when the air conditioner is turned on energy consumption was greatly reduced and the operation

Close and tighten the air valve after the work is finished efficiency of the production equipment was significantly

Regular clean the fan coiler filter and other devices of the air improved. After the renovation the overall energy efficiency

conditioning system to im-prove the energy efficiency of air

condition-ing of the motor system was improved which not only reduces

the operating costs but also makes a positive contribution to

Computers printers fax machines and pho-tocopiers and other the corporate sustainable development.equipment are only pow-ered on when in use or set into automatic

en-ergy-saving state to reduce and avoid electri-cal equipment in

a long standby state; con-sciously turn off various electrical power Motor equipment upgrade and optimization

after work

Electricity and gas consumption management code

56 57ESG Report 2024 Juheshun Advanced Materials Co.Ltd.

MVR technology helped polyamide production achieving double breakthroughs in energy saving and carbon reduction Case

Water recycling utilization Reclaimed water reuse system

infrastructure: Conduct construction: Construct the

In 2024 the Company introduced technology to significantly optimize energy utilization efficiency in polyamide production. This technology can comprehensive inspection of reclaimed water reuse and

compress the secondary vapor and recycle it to dramatically reduce the demand for fresh vapor so the vapor consumption was significantly water consumption equipment treatment facilities deeply purify

reduced saving significant fuel costs annually. The system runs stably and has significant long-term energy saving effect. Meanwhile this and repair the leaking points. Short- Medium- the wastewater and living sewage

technology can accurately control the production temperature and pressure to improve the quality stability of polyamide products and the long- Install water gauges to monitor term term up to standards in the production

term energy saving effect is significant. The production humidity and pressure are accurately controlled so the product quality stability is improved. water consumption in real time. goal goal process and then reuse them for

Construct a small rainwater production links with low water

collection system in the factory for quality requirements and factory

greening and irrigation. cleaning operations.Frequency converter technology was applied in Juheshun Luhua to improve production efficiency and reduce

energy waste Case

Water resources management goals

The frequency converter technology was applied by Juheshun Luhua in its production equipment and it can adjust the motor RPM to optimize

The Office shall be responsible for the installation and maintenance of living tap water the Production & Technology

electricity utilization according to actual load requirements. This technology effectively reduced energy waste improved production efficiency while

reduced electricity consumption and equipment fault rate and extended the service life of equipment. 01 Department shall be responsible for the production tap water and no other person is allowed to disassemble and install the

tap water pipeline

02 All departments shall use the water according to the water quota plan and shall try their best to reuse the equipment water that can be reused but is not reused

03 The water extracted from the production line shall be recycled 100%

04 Properly conduct the statistical analysis of water quantity every day and identify the causes of abnormal water utilization to eliminate waste

05 Frequently check the pipeline for leakage and plug the leakage in time to save resourcesFrequency converter equipment

Tap water management measures

Condensate water recovery system to improve water resource utilization efficiency

Water resources utilization Case

In 2024 the Company introduced the advanced condensate water recovery systems in chemical production significantly improving the utilization

The Company promotes efficient and sustainable water management via clear management goals and systematic measures. In 2024 the efficiency of water resources and heat energy. This system can recycle 112286m3 water resources per year via recovering the condensate water

Company innovated water resources utilization projects from production environment to office environment building an intelligent water resources that condenses after vapor releases heat. The recovered condensate water is not only used for factory heating storage tank insulation and

management system which realized the recycling utilization and optimal allocation of water resources effectively improving the utilization efficiency production medium heat exchange but also can be made in desalted water and reused in cooling water of the production process. Meanwhile the

of water resources. heat energy carried by the condensate water is effectively used which can significantly reduces electricity and steam consumption. In addition

the implementation of this system has reduced the discharge of corporate sewage by 30% which can reduce the cost of sewage treatment and

extend the service life of the equipment. Due to the stable condensate water reuse the production fault rate was reduced by about 2% and the

comprehensive energy saving water saving and equipment maintenance costs were reduced as a result we made outstanding contributions to

corporate energy conservation and emission reduction significantly improving economic and environmental benefits.

58 59ESG Report 2024 Juheshun Advanced Materials Co.Ltd.

Cooling water tower optimization to reduce water consumption and maintenance costs Case Recycling economy

In 2024 the Company optimized the operation of the cooling water tower to solve the problems of fungi algae growth and water quality. The

addition of shading cover plate can inhibit microbial growth and reduce scaling and corrosion extending equipment service life and reducing water In the present context of increasingly tight resources and prominent environmental problems the development of recycling economy has become

consumption. After optimizing the contact efficiency between water and air the cooling effect was significantly improved as a result the water the only way for Juheshun to achieve sustainable development. The Company actively promotes a recycling economy mode committing to reducing

outlet temperature was reduced by 3℃ meeting the production requirements. After optimization the annual maintenance cost was significantly resource consumption and waste emissions while we also enhance economic and environmental benefits. We have built a resource recycling

reduced which reduced water waste and maintenance costs significantly improving the utilization efficiency of water resources. utilization system to transform the traditional linear mode of “resource—product—waste” into a closed-loop cyclic mode of “resource—product—renewable resources” achieving efficient utilization of resources and minimized waste emissions.Set up a special leadership team

This team is headed by corporate senior leader and the heads of all departments are members responsible for

the formulation promotion and supervision of the recycling economy target plan

Enhance employee training

Regularly organize employees to participate in knowledge and skills training related to recycling economy

Cooling water tower optimization enhance employees’ environmental protection awareness and participation

Increase fund input in recycling economy field

Hydrolytic furnace technical renovation project to innovate water resources utilization Case

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 policy support

In 2024 the Company successfully obtained a patent and significantly improved the utilization

efficiency of water resources via the hydrolytic furnace technical renovation project. After the spray

water collection plate exchange cooling recycling and other technologies the Company reduced Establish an assessment mechanism

the consumption of spray water significantly reducing water resources waste and sewage treatment

pressure reducing production costs and lowering water consumption on the environment. Incorporate the completion of recycling economy targets into the performance assessment system of

departments and employees. Departments and individuals with outstanding performance will be given honors

and substantial rewards while strict accountability mechanisms will be implemented for those who fail to

complete the targets

Recycling economy safeguard measures

Gas fume gas dehumidification and purification device for hydrolytic furnace

Recycling of packaging bags to promote resource conservation and environmental benefits Case

We posted water-saving sign to raise employees’ awareness of environmental protection Case In 2024 the Company actively responded to the concept of sustainable development

so we launched the packaging bag recycling project. We established a sound recycling

treatment process to classify repair inspect and store the used packaging bags

Juheshun Luhua posted a water-saving sign in the office area aiming to raise employees’ and the qualified packaging bags were put into production again. This effort reduced

awareness of water conservation. The sign reminded employees to pay attention to the rational packaging costs which reduced waste disposal expenses and significantly reduced

use of water resources via concise language and encouraged everyone to develop the habit of resource consumption and environmental pollution.saving water in daily work effectively promoting the construction of corporate environmental

protection culture.Packaging bags were recycled

Water-saving sign

60 61ESG Report 2024 Juheshun Advanced Materials Co.Ltd.

Wood frame recycling project to reduce packaging costs and promote ecological protection Case Plastic pallet recycling to achieve efficient recycling of resources Case

In 2024 the Company established a sound recycling treatment process to solve the problem of large consumption of wood frames and difficult In 2024 the Company actively promoted the recycling of plastic pallets. We established a sound internal recycling mechanism and we classified

disposal of waste. We sorted repaired inspected and reused the wood frames to successfully reduce packaging costs reducing waste disposal and marked our own pallets to promote internal circulation. Moreover we conducted recycling cooperation with external enterprises to build an

pressures and we alleviated forest resource consumption making a positive contribution to ecological balance and sustainable development. efficient pallet recycling network. Meanwhile we introduced the pallet management system to achieve real-time tracking of pallet position status

and quantity effectively improving the pallet utilization rate. From January to December 2024 the Company recycled a total of 43308 plastic

pallets and recovered 43398 with an average of 5.03 uses per pallet. After the recycling and recovery the annual packaging cost was reduced

significantly and significant economic and environmental benefits were achieved.Plastic pallet recycling

Wood recycling Plastic pallet recycling situation

Ton packaging was changed into container bags to further save packaging materials Case

21758

20387

In 2024 the Company proposed and implemented a plan to change the traditional ton

packaging into container bag packaging aiming to further save packaging materials.Thanks to its large storage capacity marine packaging bags can be flexibly adjusted 15293 16419

according to the demand of loading operations significantly reducing packaging and

labor costs. As a recycled and renewable packaging material marine packaging bags

can be reprocessed to convert into other plastic products which is consistent with the

concept of environmental protection and sustainable development. This impeovement

significantly reduces packaging material consumption and then it effectively reduced

material costs and labor costs bringing higher economic benefits to the Company.

61776512

Container bag packaging

2372

102081880800

Customer A Customer B Customer C Customer D

Delivery 21758 15293 6177 80

Return 20387 16419 6512 80

Balance 2372 1020 818 0

Plastic pallet recycling

62 63ESG Report 2024 Juheshun Advanced Materials Co.Ltd.

Waste Discharge Juheshun attaches great importance to waste management and takes “quantity reduction Solid waste managementresource utilization and hazard free” as the core principle to fully implement the national

Control management policy on three wastes. The Company has formulated the Management Measures The Company attaches great importance to environmental protection and resource utilization and we have formulated and implemented the on Three Waste to build a full life cycle management system from the source to the end and Management System on Solid Waste and the Treatment and Control Procedures on Solid Waste to standardize the classification recycling and

we adopted the fine management to ensure that the disposal of waste water waste gas solid treatment process of solid waste. Moreover in order to improve the utilization efficiency of resource the solid waste generated in the production

waste is in line with the applicable national standards and policy requirements. In addition the and operation of various departments is fully recycled and collected in the category of industrial waste and hazardous waste and then is clearly

Company has also established an emergency response mechanism for the treatment of three labeled. According to our actual situation the solid waste is classified into three categories: garbage recyclable waste and hazardous waste. We set

wastes so as to cope with possible environmental emergencies ensuring the environmental up a special recycling box in front of the office building and use signs on the factory site to clearly identify them so that we ensure that the waste

safety. We have taken these measures to effectively control the impact of the “three wastes” on management is standardized and orderly helping achieve the sustainable development goals.environment but also promote the efficient utilization of resources.Living garbage general solid waste Hazardous solid waste

Living waste and general solid waste The department/workshop where the hazardous solid waste is located shall be

Waste management are not required to fill in the incoming responsible for filling in the solid waste storage incoming warehouse form which

warehouse application and can directly shall be subject to review and approval by the department/workshop safety and

enter warehouse. But they must be packed environmental protection supervisor and then such hazardous solid waste can

The Company has formulated the Management System on Solid Waste and the Treatment and Control Procedures on Solid Waste to establish a and stacked as required enter the warehouse

comprehensive solid waste management system and we also have set short-term medium-term and long-term solid waste management goals The Safety and Environmental Protection The solid waste management personnel receive application forms from various

achieving efficient recycling of resources and the waste reduction & harmless treatment. Department regularly inspects the stacking departments checking that the content is properly filled in the packaging is

of living garbage to ensure that it is intact the label is clear and definite and then accept the incoming warehouse.In the actual operation the Company manages the solid waste generated in the production and operation by classification classifying it into properly stacked and disposed regularly. The solid waste shall be stored in the corresponding area and the incoming/

three categories: garbage recyclable waste and hazardous waste and marking them respectively. In addition the Company also focuses on the Sign a contract for the disposal of living outgoing warehouse ledger for hazardous solid waste shall be properly kept

recycling of solid waste setting up a special recycling box in front of the office building and using signs on the factory site so that we ensure the garbage with qualified entity every year The hazardous solid waste warehouse shall be built in accordance with

standardized collection and storage of various types of solid waste thereby improving the utilization efficiency of waste resource. The Company’s waste and old office applicable requirements and the card for hazardous solid waste classification

equipment electronic products and identification and safety note shall be properly kept. The warehouse shall be kept

electrical waste are collected by the ventilated and dry and shall be equipped with the exhaust gas treatment system

Comprehensive Management Department accordingly

and the Procurement Department contacts The Safety and Environmental Protection Department shall sign hazardous solid

Waste classification and quantity reduc-tion: Set up classified garbage bins in production workshops and office the manufacturers for recycling and waste disposal contracts with qualified treatment entities and shall submit the

areas clearly mark them enhance employee training and ensure the correct classifica-tion and disposal of disposal solid waste management plan and hazardous waste trans-fer plan to the local

waste. Promote pa-perless office reduce paper waste opti-mize production processes and reduce the rate of Waste and old equipment without usable Environmental Protection Bureau. The Safety and Environmental Pro-tection

Short-term goals defective products to lower the waste generation. value shall be disposed by the Engineering Department shall contact for the dis-posal in time and the ledger of hazardous

Recycling system establishment: Estab-lish cooperation with local professional recycling companies to & Equipment Department solid waste shall be properly kept

regularly collect the recyclables. Special recycling tempo-rary storage area is set up in the factory to facilitate The ledger of hazardous solid waste shall be managed by full-time person and

classification and storage. kept for at least 10 years

Solid waste treatment system

Internal recycling network optimization: Build the internal recycling network for waste in the production links

and realize the direct reuse of waste in different workshops and procedures. For example the leftover material

Medium-term goals is collected and processed uniformly and then is used in the production of other product parts.Technological R&D input: Invest in R&D of waste resource utilization technology focusing on waste that is The feeding room in Juheshun Luhua adopted dust collector to technologically treat dust Case

difficult to recycle and explore ways to transform it into usable resources.In Phase I Juheshun Luhua adopted a solid feeder for micro-negative pressure

feeding to effectively control dust generation. The dust generated during the

feeding process is treated by the bag dust collector to ensure efficient removal.The treated dust is discharged via a 15-meter high exhaust cylinder (DA001)

which meets environmental standards. Meanwhile the collected dust is recycled

Achievement of zero waste: Constantly optimize the recycling technologies and processes to achieve almost

Long-term goals and re-put into production achieving resource recycling utilization to reduce the

zero waste emissions during its operations and all waste can be effectively treated and reused.environmental burden.Dust collector equipment

Waste management and recycling goals

64 65ESG Report 2024 Juheshun Advanced Materials Co.Ltd.

Hazardous waste management

Waste gas management

The Company has formulated the Management Measures on Hazardous Waste and the Management System on Hazardous Chemicals to

standardize the whole process management of hazardous waste on generation collection storage transportation and disposal from the

institutional level which ensures that the disposal of hazardous waste complies with applicable national laws & regulations and environmental

Luheshun Luhua has formulated the Management System on Waste Gas and

protection standards reducing the risk of hazardous waste to the environment and human health. In addition the Company also focuses on

the Prevention and Control Procedures on Waste gas to comprehensively

the whole life cycle management of hazardous waste and we define the clear management requirements on procurement collection storage

standardize the waste gas emission and treatment process ensuring that the

transportation utilization and disposal improving the efficiency and transparency of hazardous waste management.waste gas emission is up to standard. Juheshun Luhua adopts advanced waste

gas treatment technology to classify and control major waste gas sources such

as polymerization procedures monomer recycling and foul odor waste gas from

General rules for the management of hazardous chemicals sewage treatment stations. In addition the Company is also equipped with an

online waste gas monitoring system to monitor emissions of waste gas in real

The heads of all departments shall ensure that the safety management of hazardous chemicals complies with time ensuring that the control effect meets national and local standards.the requirements of laws and regulations.Personnel engaged in activities related to hazardous chemicals shall receive train-ing and pass the assessment

before taking up their posts.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 hazardous chemicals and

Spray tower device

conduct regular surveys.Procurement of hazardous chemicals

Department/

workshop organized The waste gas generated in the reactor in the workshop is classified into organic waste gas and inorganic waste

The Procurement Department shall establish a list of chemicals and update it annually. waste gas gas which shall be collected by pipelines and connected to the corresponding exhaust gas treatment device.Procure hazardous chemicals from qualified enterprises. management Direct emission to the atmosphere without treatment is not allowed

Organic waste gas is generally treated by condensation recovery and then adsorption. Inorganic waste gas is

The purchase of precursor or highly toxic chemicals requires a certificate of purchase and a transport permit.absorbed and treated with corresponding acid spray or alkaline spray device according to acid and alkali. The

remaining organic waste gas is connected to the incineration device for incineration and finally discharged up to

the standard

Storage and usage of hazardous chemicals Dust generated in centrifuge 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

The transportation shall be entrusted to a qualified carrier and the safety responsibilities shall be defined.Safety protection measures shall be taken and escorts shall be equipped during the transportation. Department/

workshop For workshop with process units or process points for unorganized waste gas escape the waste gas is treated by

Any accident during transportation shall be reported to the public security department immediately. unorganized waste means of process operation control isolation collection in the closed room collection by the draft hood etc.gas management The collected unorganized waste gas shall be treated in the same way as organized waste gas and discharged

up to the standard

Storage and usage of hazardous chemicals All workshops/departments shall regularly inspect and maintain the equipment pipes valves etc. within their

respective scope and keep the air tightness of the equipment in good condition. Personnel on duty shall enhance

the tour inspection to prevent the occurrence of running bubbling dripping and leaking phenomenon

Hazardous chemicals shall be stored in the special warehouses and managed by full-time personnel.Label management shall be standardized for storage and usage and shall be checked regularly.Management on

Highly toxic chemicals shall be stored separately and shall be received/dispatched and kept by two persons. waste gas generated The waste gas generated from the aeration unit of the sewage pretreatment system is collected in a closed

from sewage enclosure treated by oxidation absorption and acid & alkali spray respectively and discharged up to the standard

treatment systems

Emergency response to hazardous chemical accidents

The Company sets up a 24h emergency consultation telephone. Management on fume When cooking dishes in the canteen the kitchen hood must be turned on. The kitchen fume is collected and

and waste gas in

Accidents shall be handled in accordance with the Emergency Plan for Production Safety Accidents. canteen discharged via the kitchen hood

The kitchen hood shall be cleaned and maintained once a month

Hazardous chemicals management system Waste gas pollution prevention and control measures

66 67ESG Report 2024 Juheshun Advanced Materials Co.Ltd.

Juheshun Luhua waste water management system optimized discharge compliance to improve environmental

Waste water management monitoring capabilities 案例

In order to fully identify potential emergencies and accidents in sewage treatment stations that may affect the environment and make preparations Juheshun Luhua has adopted a strict treatment

process for waste water management. The waste

for emergencies to prevent and reduce the harmful impact of accidents on the environment the Company has formulated the Management System

water from production and living is first mixed via

on Waste Water the Treatment and Control Procedures on Waste Water and the Emergency Response Regulations for Sewage Treatment Station

the regulating pool and then enters the sewage

to comprehensively standardize the waste water treatment process ensuring that the waste water is discharged up to standard. Meanwhile the

treatment system for pretreatment ensuring that

Company implements strict clean water and sewage separate management prohibiting sewage from entering the clean water system and we

it meets the acceptance standards of the sewage

require all sewage to be transported via the pipeline to avoid the spread of pollution. treatment plant in the Park. The treated waste

water is transported to the sewage treatment plantIn addition Changde Juheshun plans to install an online waste water monitoring system and the equipment has been entered onsite expecting to for further treatment by means of “one enterprisecomplete the installation and commissioning in January 2025 which will further enhance the intelligent level of waste water management. and one pipe”. The Company has installed online

monitoring equipment at the discharge port which is

connected with the monitoring center of the Ecology

and Environment Bureau to upload data in real time

Department/workshop management Management on waste water in

on normal waste water sewage station effectively ensuring the compliance of waste water

discharge and environmental monitoring. Sewage treatment system and noise control on regulating pool

The waste water generated in the The sewage station is to classify

workshop is classif ied into high collect and configure according to

the requirements on waste water

concentration and low concentration treatment

which is separately collected into the Noise pollution control

corresponding collection tank in the T h e i n c o m i n g w a t e r f r o m t h e

workshop workshop entering the final waste

water treatment system is monitored The Company attaches great importance to noise prevention and control and has formulated the Noise Prevention and Control Procedures to

and the conforming water is allowed control noise at source optimize transmission channels strengthen personal protection regular monitoring and evaluation effectively reducing

The high concentration waste water is to enter the three-waste treatment the impact of noise on the environment and employee health via systematic management measures and also reducing the interference to the

pre-treated by oil separation standing stations surrounding environment.and settling in the workshop and then

pumped to the three-waste treatment The operators shall strictly implement

station the operation procedures and monitor The approval report and the feasibility report for projects that may cause corporate noise pollution or involve in noise pollution

the sewage treatment situation to

analyze the quality of the wastewater 01 control facilities shall be countersigned by the Safety and Environmental Protection Department and the Provisions on

The toxic waste liquid after experiment preventing the waste water from Simultaneous Management of New Renovated and Expanded Projects shall be strictly implemented

and analysis shall be collected. After exceeding the standard. Once any

abnormality is found the waste The responsible department for noise pollution shall organize production reasonably (the production that produces large noise recovery the remaining waste liquid

water discharge shall be stopped 02 shall be arranged in non-concentrated production time as far as possible) and strengthen operation management to reduce shall be inactivated and managed

immediately and the production shall noise pollution alleviating the impact on the surrounding environment

as hazardous waste. It shall not be be stopped if necessary until the

discharged into living sewage system normal operation is restored ensuring Each department is responsible for the daily maintenance and care of its own equipment and noise pollution control facilities

or dumped/discharged at will the discharging up to standard 03 to ensure that the equipment and control facilities are in good technical condition. 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

Clean water system pollution

Department/workshop management management

Living sewage management

on abnormal waste water 04 Once it is found that the equipment and noise pollution control facilities are faulty or the muffler sound insulation and The clean water system of the When abnormal wastewater is absorption materials are damaged and the repair and restoration shall be organized timelyCompany is managed in open gully Filters are arranged at the

generated it shall communicate with without dark gully and dark pipe dishwashing operation place and the

the three-waste treatment stations in main outlet of the canteen to filter the

time and the collection and storage

Sewage station is responsible for bulk impurities in the sewage before 05 No-horning signs shall be set up in the factory area and motor vehicles shall not horn.shall be properly conducted

clean water monitoring system and discharging them into the collection

shall entrust qualified operation & tank for delivery to the sewage stationIf a large volume of fire water is

generated from accidents such as maintenance entities to maintain 06 The entities conducting architecture and construction operations in the factory shall control noise in accordance with the Control fire the Safety and Environmental Washroom and toilet waste water is Procedures on Related Parties

Protection Department shall be The sewage station regularly inspects directly discharged into the septic

notified to open the accident pool for the clean water system to ensure that tank and then pumped into the three- The noise prevention and control shall be included in the Environmental Management Plan clearly defining the noise emission

collection it is not polluted waste treatment station 07 points the monitoring frequency and standards of the noise emission points and the noise prevention & control measures and

the inspection of the implementation thereof

Waste water classification management measures Noise pollution control measures

68 69ESG Report 2024 Juheshun Advanced Materials Co.Ltd.

Address Climate Juheshun actively addresses the climate change and has formulated the Emergency Response Changde Juheshun promoted the use of electric vehicles and the construction of charging facilities to help green and low-Plan for Heavy Pollution Weather to standardize the corporate emergency response measures carbon transformation Case

Change in heavy pollution weather ensuring the coordination between production activities and environmental protection requirements. According to different levels of heavy pollution weather

In order to actively promote the application of new energy reduce carbon emissions and

warning we take corresponding emergency response measures to minimize the impact on the

address the climate change Changde Juheshun encouraged employees and customers to

environment. Since 2022 the Company has worked with the qualified third-party agencies to

use electric vehicles and has set up charging piles in Changde Juheshun's Workshop and

conduct the Greenhouse Gas Emissions Verification Report annually to ensure the transparency

Warehouse and main office areas to provide convenient charging services. After this effort

and accuracy of carbon emissions data. Meanwhile Juheshun vigorously promotes renewable

we reduced the dependence on traditional fuel vehicles effectively reducing greenhouse gas

energy projects such as photovoltaic to accelerate the transformation of the energy structure

emissions to support green and low-carbon development.and we calculate the full life cycle carbon emissions via the product carbon footprint report

Changde Juheshun electric vehicles and charging piles

to promote energy conservation and emission reduction contributing to the low-carbon

development goal.Photovoltaic power generation project promoted energy transformation and helped address climate change Case

In 2024 the Company actively responded to the challenges of global climate change we significantly promoted energy transformation and

sustainable development via the implementation of distributed photovoltaic power generation project. This project made full use of the roof space

of the plant in which 2038m2 of photovoltaic modules were laid on the 6683m2 roofs in Phase I and 4155 m2 of photovoltaic modules were

extended on the 6642 m2 roofs in Phase II. The electricity generated by these photovoltaic systems is directly used in production not only reducing

the dependence on traditional energy sources but also saving a lot of electricity fees for the Company every year.Greenhouse gas emissions report

Year Photovoltaic power generation (KWH) Electricity fee savings (RMB)

20221189072889223.92

20231243072740604.25

Photovoltaic project

202418422271135300.00

Meanwhile Changde Juheshun also actively promoted the application

Photovoltaic project data statistics of clean energy. The 1MW photovoltaic project of Phase I has been put

into use with an annual power generation of about 1 million KWH while

the 1.6MW project of Phase II is expected to be connected to the grid

Product carbon footprint report calculated the full life cycle carbon emissions to promote corporate energy

Case in March 2025 with an annual power generation of about 1.6 million conservation and emission reduction KWH. The total annual power generation of the Phase I and Phase II

was about 2.6 million KWH which effectively helped the green and low-In August 2024 the Company released the carbon footprint report of Nylon 6 chip products aiming to calculate the carbon footprint of “one ton carbon development of the Company.of nylon 6 chip” produced in 2023 in its life cycle so at to meet environmental disclosure requirements providing data support for the corporate

energy conservation and emission reduction. This report adopted the Life Cycle Assessment (LCA) method to calculate the full life cycle carbon

emissions from raw material extraction processing to product transportation. The results showed that the carbon footprint of producing one ton of

nylon 6 chips was 6.51 tons of CO2eq of which the raw material production stage accounted for the highest proportion reaching 94.02% which Changde Juheshun photovoltaic application scenario

was the main source of carbon emissions.Life cycle stage Raw material Raw material Product production Product transportation Product carbon Biodiversity Juheshun attaches great importance to biodiversity conservation and takes it as an important production transportation footprint part of corporate sustainable development. During the production and operation the Company

Carbon emission Conservation strictly complies with the applicable environmental protection laws and regulations and actively 6.12 0.04 0.33 0.01 6.51

(tCO2eq) takes measures to reduce the impact on the ecological environment avoiding causing damage

to biodiversity. After optimizing the production process reducing the emission of pollutants and

Proportion 94.02% 0.68% 5.09% 0.21% 100.00%

promoting the application of green energy Juheshun is committed to reducing the consumption

of natural resources and the interference to the ecosystem striving to achieve the balance

Product carbon footprint assessment results between corporate development and ecological protection.

70 71ESG Report 2024 Juheshun Advanced Materials Co.Ltd.

Contribute Society and Share

Achievements to Create Future

Juheshun is committed to building a comprehensive employee management system putting

the protection of employees’ rights and interests in an important position and we take talent

development as an important corporate strategy. Meanwhile the Company provides training

opportunities for the diverse demands of employees and encourages employees to improve

themselves realizing the common development between their skills and the Company. In

terms of occupational health the Company attaches great importance to employee health and

production safety so we comply with applicable standards to take strict measures and regularly

conduct exercises and inspections to ensure that employees work in a safe and healthy

environment presenting our emphasis on employee well-being.Our actions

Employee employment and assessment

Employee development and training

Employee health and safety

Employee care and activities

Social feedback and public benefit

SDGs equivalent 04

72 73ESG Report 2024 Juheshun Advanced Materials Co.Ltd.

Employee Employment Juheshun attaches importance to the demands of employees and constantly improves the fair and transparent construction of the remuneration system. Meanwhile in order to

Key performance

and Assessment protect the rights and interests of employees the Company has formulated a performance 2024appeal management system to answer employees’ questions and respond to their concerns

in a timely manner. After optimizing the employee employment and assessment system During the reporting period the Company participated in received

the Company has improved the employees’ sense of gain in work contributing to creating a

harmonious employment environment for the society. 17 on-campus recruitments 129 resumes

Talent employment and rights & interests protectionHolding the talent concept of “equal stress on integrity and ability discover able people and put them at suitable posts authorize power to thecompetent people and grant reward to the merit people” the Company strictly complies with the applicable laws and regulations such as the

Labor Law of the People’s Republic of China to formulate internal norms such as the Employee Manual and we release recruitment information

via various channels to ensure that the recruitment process is fair and just. Meanwhile in order to protect the rights and interests of minors

the Company has formulated the Regulations on Management of Child Labor and Underage Workers and we are firmly committed to avoiding

the employment of child labor and underage workers refusing to include companies employing child labor into our supplier list. In addition the

Company pays attention to the employment demands of vulnerable groups and we have formulated the Juheshun Collective Contract—Protection of

Female Employees and the Special Protection on Minors and we actively recruit disabled people and veterans to help them realize personal value

fully practicing corporate social responsibility.Disability certificates of corporate employees Veteran certificates of corporate employees

Key performance 2024 38.12%

Gender Zhejiang University of Water Female employees

During the reporting period Composition of Resources and Electric Power China Jiliang University

Employees Male employees

the total number of

corporate employees Zhejiang University61.88% Hangzhou Vocational & Technical

College

703 Universities/colleges of Zhejiang Gongshang University

3.17% corporate on-

Zhejiang College of Construction

the number of labor dispatching campus recruitment168

person was 23.90%

Hangzhou Vocational & Technical

Production personnel

0 CollegeAdministrative personnel Zhejiang Sci-Tech UniversityPost Composition

of Employees Financial personnel

2.13%

the number of Technical & research personnel

Zhejiang A & F University

labor dispatching person Sales personnel

11.81%41458.89%

288 List of universities/colleges of corporate on-campus recruitment

Employee labor contract 15.79%

signing ratio 30.29%

100% Under 30 years oldAge Composition Between 30 and 50 years old

of Employees

Over 50 years old

53.91%

74 75ESG Report 2024 Juheshun Advanced Materials Co.Ltd.

Employee performance assessment Employee Juheshun attaches importance to the occupational development of employees. We provide employees with skills improvement training and position promotion opportunities and we

Development and encourage employees to improve themselves in the work achieving common progress between individuals and the Company. In addition the Company actively cooperates with the schools to

In order to fully mobilize the enthusiasm of employees and objectively evaluate their work performance & work ability the Company has formulated Training give full play to the advantages of the two sides in different fields creating a broader corporate the All-staff Performance Assessment Plan the Monthly Performance Assessment Form the Management System on Corporate Employee development space and enhancing the industry influence.Remuneration and Welfare and the Feedback System on Corporate Employee Performance Management. The above plans are applicable

to all employees and cover remuneration structure performance evaluation system department responsibility performance management

implementation plan performance appeal and other contents providing standardized reference for the Company to objectively evaluate the The Company is committed to helping employees improve their work ability stimulate their

performance of employees and also offering channels for employees to appeal. At the beginning of the second year the Company will grant honors Employee training potential and improve their work performance. Therefore the Company has formulated the

to the employees with outstanding performance in the work of the previous year and provide rewards to motivate them to work hard. Training Management Regulations to provide diversified skills training for employees in different

posts. The training content includes workshop safety training theoretical knowledge training

instrument fault handling vehicle use etc. aiming to help employees master more production

knowledge.For the training form in addition to offline courses the Company innovates in the form and

Basic salary Bonus approach. In terms of form the Company has formulated the Management Measures on Master

Remuneration Leading Apprentice to guide old employees and new employees to match each other. New

structure employees can learn practical skills from old employees and old employees can also receive

Performance salary Allowance/Subsidy corporate subsidies from training new employees. The master-apprentice system not only

Key performance 2024 shortens the time for new employees to work independently but also provides an alternative

source of income for old employees. In terms of approach the Company has purchased cloud

During the reporting period classroom services so the employees can learn knowledge points at any time via online

Corporate employee remuneration structure learning which is more flexible in time and place.the Company conducted induction The Company also pays attention to feedback from employees after training so that the course

trainings for new employees content can be adjusted later. In order to obtain employees’ evaluation on the training the

Company has formulated the Training Evaluation Sign-up Record Form in which the participating

Daily communication Performance Performance interview 299 employees are required to sign up in the Form and also to evaluate the corporate training Informal feedback Formal feedback feedback channels sessions effect evaluating the satisfaction of the assessment. After collecting employees’ feedback the

channels channels

and manners Company can better plan the next training form which shows that the Company attaches great Employee suggestion box Written feedback importance to the comments of employees.Number of Trainees

Employee performance feedback channels and manners 305 persons

conducted corporate trainings

Feedback result

Initiate feedback Survey and analysis

notification 37 sessions

Information Develop and Tracking and

departmental trainings

processing implement solutions evaluation

573 Corporate online course contentsessions

Employee performance feedback process

Full-year Training

01 02 03 04 05 06 07 8800 person-times

Respect The working Leave days Not Protect Over- Propose

average class time

corporate during is are less subject to corporate performance reasonable

culture more than than 10 punishment property suggestions

six months days safe 30.68 hours

Employee criteria for corporate annual appraising activities Corporate training evaluation and sign-up record form

76 77ESG Report 2024 Juheshun Advanced Materials Co.Ltd.

Employee Health The Company always places the health and safety of employees at an important position. We Employee development strictly comply with the laws and regulations on work safety and we actively input resources

and Safety to eliminate safety risks protecting the rights and interests of employees. In order to improve the safety awareness and emergency response ability of employees the Company regularly

The Company provides a clear promotion channel to encourage employees to work hard and enhance their sense of personal value. The Company conducts the safety training and exercises which fully reflects our importance and care of

has formulated the Training Plan for Primary Management Echelon Talent in Production Field and the Management System on Employee Promotion employees demonstrating our social responsibility.in which the latter is applicable to all poses and the former is oriented to management posts. In the corporate promotion system employees can

be promoted horizontally or vertically and they also have the opportunity to be included in the corporate human resource development system to Work safety

participate in the training plan based on the corporate development strategy becoming the corporate reserve talents. In addition to stipulating

promotion channels the Training Plan for Primary Management Echelon Talent in Production Field also rewards the masters who have cultivated

outstanding employees. This two-way reward model for teachers and students improves the participation enthusiasm of both new and old

The Company always holds the people-oriented concept. We attach importance to the work safety and we care about the demands and well-

employees.being of employees ensuring that employees are fully protected and cared during the work process. To this end the Company has formulated

system documents from many aspects to standardize the production process ensuring the safety of employees. Meanwhile the Company has

set up the Work Safety Committee and it has different departments as a work safety responsibility management system which can ensure the

implementation of work safety responsibilities at each level forming a safety management network with all-staff participation and comprehensive

coverage.Key performance 2024

Target fields Guidance documents

During the reporting period

Potential risk

the Company conducted Identification and Control System on Potential Riskselimination

16 Management System of Work Safety Management Committee internal tour inspections Policies and Goals of Work Safety (Comprehensive)

Work safety Responsibility Statement of Safety Environmental Protection

Occupational Health and Fire Protection Targets

Corporate reserve echelon training Employee promotion application form

implementation assessment form 8 Work Safety Committee Systemexternal tour inspections

Risk Classification Control System

The Company adheres to the principle of “fair competition equal competition merit-based recruitment strict assessment” and we encourage all found and rectified a number of Risk Control Operation Instruction for Safety Risk Assessment and Identification

regular employees to apply for corporate cadres. After the candidate appears the Company will publicize and conduct public opinion evaluation. security risks Safety Risk Control System and Efforts

We adopt the open appointment approach to create a “fair just competitive merit-based” selection and appointment environment which fully

mobilizes the enthusiasm and creativity of employees enhancing the corporate cohesion. Corporate safety documents

University-enterprise cooperation

In order to increase corporate high-quality talent reserve and promote technological innovation & knowledge innovation the Company has

conducted the industry—academia—research cooperation with a number of universities.Responsibility statements signed by departments

78 79ESG Report 2024 Juheshun Advanced Materials Co.Ltd.

We properly conducted fire safety protection measures to ensure the safety of employees Case Safety training

The Company attaches great importance to the safety training on employees and has formulated the Management System on Annual All-staff

In order to ensure the effective implementation of fire safety the Company has formulated the Fire Control Tour Inspection Registration Form and Training and the Training System on Occupational Health Education stipulating that the annual training time of employees shall not be less than

arranges full-time personnel to conduct tour inspection on eight areas such as fire and electricity use safety exits and evacuation access every 20h. Meanwhile the Company held a number of safety lectures and safety training to improve the practical ability of employees. We held the

day. Safety risks found during the tour inspection will be dealt with in a timely manner to eliminate the potential risks. In addition the factory is training for employees to improve their health awareness and ability to protect their own safety creating a good working environment.equipped with professional foam fire extinguishers and emergency rescue cabinets to ensure that fire risks can be quickly eliminated. For work-

at-height areas the Company has set up protective fences to prevent employees from falling. Meanwhile in order to meet the daily emergency

demands of employees the Company is also equipped with a medical box where there are commonly used first-aid medicines. We have taken the

above measures to comprehensively improve the level of fire safety management practically safeguarding the life safety of employees.Safety education training

Safety education Safety education

Annual Special safety Three-level safety

training on job Re-education on training on

reeducation

transfer work resumption

education training education training

special operation

Full-time safety Other

Professional foam fire extinguisher Medical box General management management Special type of work Other staff

Manager

personnel personnel

Pass the national safety training

Safety professional

and obtain the qualification

Not less than 12 technical training Not less than 12 Not less than

certificate and receive targeted

class hours shall not be less class hours 16 class hours

training not less than 20 class

than 12 class hours

hours per year

Safety training management system diagram

Fences newly arranged at height Emergency rescue cabinet

Internal and external safety inspection to reduce corporate safety risks Case

Key performance 2024

In order to further reduce corporate safety risks and improve production safety the Company will conduct safety inspection every month and

During the reporting period

before the festivals. Internal inspection is the tour inspection conducted by the head of each department and the President against corporate

departments and the rectification comments will be proposed to ensure safe production and safe holidays. External inspection is the deep survey the Company conducted safety trainings involving in the total training time

by an external company on the Company and it will discover safety risks from a professional angle to avoid possible losses. Internal and external

safety inspections have improved the corporate safety level and laid a foundation for the implementation of work safety. 14 times 274 employees 28 hours

8081

Corporate level

Workshop level

Team/group levelESG Report 2024 Juheshun Advanced Materials Co.Ltd.Work safety training to improve employees’ self-protection ability Case Hazardous chemicals training to improve the handling capacity of hazardous chemicals Case

In October 2024 the Company held a lecture on limited space safety knowledge for employees involving in a total of 88 employees. After the In October 2024 the Company held training on hazardous chemicals. In this training the request and storage of hazardous chemicals

training the employees can absorb the spirit of Party Central Committee documents understand laws and regulations and master the safety transportation precautions emergency methods related to handling of leakage were explained from the practical operation. After the meeting the

protection skills in limited space improving the safety awareness of employees. attendees basically understood the relevant measures and their abilities to safely handle hazardous chemicals were improved.Lecture site photo

2024 safety accident typical case analysis to optimize the operation process Case

At the beginning of 2025 the Company conducted a learning discussion seminar on the safety

incidents occurred in 2024. This seminar first introduced the concept and classification of

accidents and then reviewed the situation and analysis of work safety accidents in 2024

analyzing their causes and introducing rectification measures. Finally on-site employees

spoke freely and proposed their opinions and ideas. After this activity the employees improved Hazardous chemicals training site

their understanding of safety incidents in 2024 and enhanced their awareness of standard

operations.Safety accident learning seminar

Study and education in 2024 Safe Production Month to create a deep safety atmosphere Case

From May to July 2024 in order to implement the national work safety policy and carry out work safety responsibility system the Company

First-aid training to improve the first-aid skills of employees Case conducted the theme activities of the Safe Production Month. We organized safety implementation competition special inspection on the factory

emergency drill activities to improve the knowledge & skills and practical operation level of employees.In December 2024 the Company held a special

course “First-aid Training” course involving in

14 employees from 8 departments. During the

training the teacher showed the techniques of

cardiopulmonary resuscitation explained the

prevention methods of major diseases and the

content of occupational disease prevention and

control. The attendees studied carefully and

fully understood and they gave high appraisal

to the training content. After this training

employees mastered the first-aid skills and can

better protect their own lives and the safety of

others.First-aid training Photos related to Safe Production Month

82 83ESG Report 2024 Juheshun Advanced Materials Co.Ltd.

Special equipment mechanical injury accident drill to master emergency handling measures Case Occupational health

In February 2024 in order to help employees master the correct handling of special equipment and mechanical injury accidents the Company

conducted the special equipment mechanical injury accident drill for employees engaged in mechanical and electrical maintenance. We organized In order to practically protect the health rights and interests of workers the Company has formulated the occupational disease and occupational

personnel to conduct emergency simulation letting the personnel on site to understand how to report the situation and how to implement health management system in accordance with the applicable provisions of the Law of the People’s Republic of China on the Prevention and

emergency procedures to improve their response ability so that they can rapidly orderly timely and effectively handle the accidents. Control of Occupational Diseases and has set up the occupational health and safety leadership team which is fully responsible for occupational

health inspection safety education and health inspection. We adopt the standardized management health monitoring and protective measures to

ensure that our working environment meets the occupational health standards and can prevent the occurrence of occupational diseases while we

also improve the health awareness and safe operation skills of employees fully protecting the health rights and interests of employees.Occupational Health and Safety Leadership Team

Occupational health inspection Occupational health and safety education Occupational health inspection

Prevention

Publicity of Psychological

Set up and Environmental Canteen

occupational quality

employee publicity of health hygiene

health self- education of

health archive occupational inspection inspection

protection employees

diseases

The pre-job physical examination rate Improve employees’ health and

Keep the environment clean hygienic

is 100% to ensure healthy working safety awareness to maintain

and free of infectious diseases

Drill site photos on the post physical and mental health

Occupational health responsibility management system diagram

Poisoning exercise in limited space to improve the ability to deal with poisoning Case

In order to improve the corporate employees’ awareness of poisoning asphyxia in limited space popularize safety common sense and master basic

self-rescue knowledge the Company launched an observation and learning on poisoning exercise in May 2024. The exercise took the employees Responsibility System on Prevention and Control of Management System on Occupational Disease

fainting in the workshop as the background and successively conducted guardian reporting gas detection rescue and sending to the doctor. After Occupational Disease Hazards Hazard Monitoring Detection and Evaluation

this exercise the attendees mastered the disposal measures for the hazards of healthy radioactive sources clarified their responsibilities and Occupat ional Disease Hazard Warning and Three-simultaneous Management System on

improved their actual operation capabilities providing a reference for handling the same situation in the future. Notification System Occupational Health in Construction Projects

Declaration System on Occupational Disease Hazard Management System on Labor Occupational Health

Items Monitoring and Archives

Occupational Disease Hazard Accident Handling and

Occupational Health Education Training System

Radioactive source leakage exercise to improve emergency response capability Case Reporting System

Maintenance and Repair System on Occupational Emergency Rescue and Management System on

In order to improve the risk prevention and control ability of radioactive source leakage Disease Prevention Facilities Occupational Disease Hazards

accidents in the factory safeguard the safety and health of employees and improve the Management System on Occupational Disease Management Regulations on Corporate Environment

emergency response ability the Company conducted a radioactive source leakage accident Protection Supplies Occupational Health and Safety Post Responsibility

exercise in March 2024. The exercise took the following as the background: the radiological tour

inspection personnel detected abnormal radiological data and reported it immediately. After this

exercise the attendees clarified the risk handling steps and the tasks of their posts improving

their ability in response to emergencies.Radiological exercise site

Corporate occupational health documents

84 85ESG Report 2024 Juheshun Advanced Materials Co.Ltd.

Employee Care and The Company always adheres to the people-oriented corporate culture so we actively hold Employee physical examination to ensure the health of employees Case employee care activities and establish a sound welfare system so as to improve employees’

Activities happiness and sense of gain. To this end the Company constantly deepens the employee care

Before induction all new employees shall be subject to pre-job physical examination and the regular physical examination will be conducted once a mechanism and pays attention to the life and growth demands of employees creating better

year after induction. Before leaving post the employee will be subject to leave-post physical examination and the physical examination items shall working and living conditions. We optimize employee welfare and care measures to promote the

be implemented in accordance with the requirements of the Technical Specifications for Occupational Health Surveillance GBZ188-2014 to help common development between employees and enterprise driving the collaborative progress of

employees prevent occupational diseases and work-related injuries. employees and the Company.Health welfare Festival welfare Other welfares

Regular physical Employee care welfare Employee activities

examination Hardship allowance Accommodation

Supplementary Birthday welfare welfare

commercial insurance

010305

Statutory welfare 02 Holiday welfare 04 Training and 06

Social insurance Marriage leave development welfare

Housing provident maternity leave etc. Education background

Employee occupational health examination fund Statutory holidays promotion

Paid annual leave Training opportunities

Sick leave

Leave for personal

affairs

Corporate employee welfare system

Spring Festival welfare

Jan Jul

Annual meeting & Employee tourism

anniversary 2024 2024

Apr Sep Mid-Autumn Festival Employee birthday party

2024 2024 welfare

Went to Shandong

Dragon Boat Festival Jun Dec to participate in the

welfare 2024 2024 celebration

Employee welfare of corporate headquarters in 2024

86 87ESG Report 2024 Juheshun Advanced Materials Co.Ltd.

In order to timely understand the demands of employees and make the corporate system more close to the life of employees the Company has

Juheshun Luhua cared for employees to enhance cohesion Case

established a rationalization suggestion management system for employees encouraging employees to propose reasonable suggestions to the

management regarding incentive mechanism performance evaluation employee training corporate culture and other aspects. The Company will

During the reporting period Juheshun Luhua attached great importance to employee care organize a reasonable suggestion review team to evaluate the suggestions and if a suggestion is accepted the employee will be given a cash

and took a number of efforts to ensure employee welfare. In June 2024 Juheshun Luhua reward. This effort has played a role in encouraging employees to propose suggestions and has helped make the Company run more humanely.organized employees for team building in Rizhao and the employees rowed dragon boat

together to enhance the tacit understanding of employees promoting mutual understanding

and communication among colleagues. Meanwhile in order to improve the participation of Employee suggestions and rectification measures for the canteen

employees in corporate governance and solve the problems encountered in the management S/N Suggestions Rectification measures

process the Company held regular employee coordination meetings. In July 2024 the corporate

fourth logistics coordination meeting was officially held where the employee representatives Add some local special dishes and snacks to meet the taste of employees from different 1 Improve the taste

proposed opinions on the site and corporate leaders responded to problems proposed by regions

employees reflecting corporate care for employees to enhance employees’ sense of belonging. Corporate employee coordination meeting Provide a variety of meat dishes vegetarian dishes and soups for employees to choose every

2 Increase diversity day and update the menu regularly to keep the employees fresh

Strengthen the hygiene management on canteen staff requiring them to strictly comply with

the food hygiene operation code and wear masks hats gloves etc. Regularly clean and

3 Improve hygiene conditions disinfect the canteen’s tableware tables & chairs floor kitchen equipment comprehensively

ensuring a clean and hygienic canteen environment

According to the suggestions of the corporate night shift employees the business hours of

4 Extend business hours the canteen breakfast shall be extended appropriately to ensure that the employees after

night shift can also eat hot meals in the canteen

Garbage stacked next to the rear

5 Require the staff to clean up in timedoor of kitchen

The problem of uncooked dishes in Feed back to the chef and require the chef to pay attention to time and heat control during

6 the canteen cooking to ensure that the food is fully cooked

Corporate team building in Rizhao

Collection results of suggestions by employees on canteen

Changde Juheshun cared for employees in details to promote employees’ happiness in work and life Case

Suggestions on dormitory

In order to improve the employees’ happiness in work and life Changde Juheshun provides safeguard for employees from many aspects. In terms

S/N Problems Measures

of accommodation Changde Juheshun provides double rooms for ordinary employees and couple rooms with 24h hot water and heating offering

a comfortable environment for employees to rest. In terms of safeguard Changde Juheshun pays five insurances and one fund for all employees to Enhance dormitory internal management advocate civilized living of employees and avoid

1 Noisy dormitory environmentprotect the basic rights and interests of employees. In terms of employee assistance Changde Juheshun strives to solve the employees’ “urgent loud noise and high-decibel music during breaksdifficult worried and expected” issues and spares no effort to promote the accurate implementation of various measures of employee assistance Enhance the hygiene and cleaning in the public areas of dormitory increase the frequency

work reflecting corporate care and love for employees in difficulties. Many cigarette butts on stairs and 2 of cleaning especially in key areas such as corridors and stairs providing a healthy living stairway

environment for employees

Optimize the network facilities and the current dormitory network has the problems of

unstable signal and slow network speed. The Company has communicated with network

3 Poor dormitory network operators to increase network bandwidth and optimize network coverage ensuring that

employees can smoothly work study and play online

The equipment in the employee

4 Re-purchase and replace and add chess to enrich employees’ spare time lifeactivity room is damaged

Some dormitory furniture and electrical appliances are damaged in different degrees due to

long service time bed boards tables and chairs are shaking and air conditioning’s cooling

5 Furniture maintenance and renewal and heating effect is poor. Regularly conduct comprehensive inspection and maintenance on

dormitory furniture and electrical appliances for those seriously damaged and irreparable

timely replace and renew to ensure that employees can use normally

Collection form for comments by employees on dormitor

Photos related to employee assistance

88 89ESG Report 2024 Juheshun Advanced Materials Co.Ltd.

Social Contribution Juheshun always holds the operating philosophy of “taking responsibility for the society” so Kindly offering welfare to assist farmers benefitting farmers and the Company to achieve a win-win situation Casewe integrate social responsibility into the corporate development. We participated in public

and Public Welfare welfare donations and conducted practical actions such as helping and assisting farmers to actively fulfill our social obligations. At the same time of steady development we also paid equal We have organized and conducted several farmer assistance activities. We purchased fresh vegetables and fruits planted by local farmers which

attention to economic benefit and social benefit constantly contributing to social development. not only provided our employees with healthy and affordable welfare enhancing their sense of happiness and gain but also helped farmers solve

some sales issues to support the development of local agriculture contributing to the development of “countryside agriculture and farmers” and

regional economy.Certificate of honor for participating in public welfare Certificate of public welfare donation

Changde Juheshun conducted farmer assistance

Establishing farmer-assistance tea base for industry assistance and wellbeing benefit Case

Actively responding to the national rural revitalization strategy we fully utilized the local resource advantages to establish the farmer-assistance

tea base and conduct the industrial assistance. We have established a long-term cooperation mechanism to help local farmers improve planting

technology and expand sales channels effectively promoting agricultural efficiency and farmers' income.Shandong Luhua conducted farmer assistance

Farmer-assistance tea base

90 91ESG Report 2024 Juheshun Advanced Materials Co.Ltd.

Key Performance Table

Governance performance Indicators classification Unit 2024 2023 2022

Indicators classification Unit 2024 2023 2022

R&D innovation

Corporate governance R&D expenditure RMB (10000) 17907.14 15840.14 11163.45

Ratio of total R&D expenditure against

Total memebers of board of directors Person 7 7 7 R&D input % 2.50 3.11 3.18operating income

Number of female members Person 2 2 2 R&D employee ratio % 23.9 23.73 20.84

Board of directors

Number of independent directors Person 3 3 3 Number of patents held PCS 76 43 36

Number of full member meeting of

Times 14 12 11 Number of valid patents per unit oper- PCS/per million

board of directors 0.02 0.01 0.01ating income operating income

Board of Number of meetings of board of

Times 7 6 13 Number of invention patents held PCS 14 10 7

supervisors supervisors

Shareholders’ Intellectual Number of invention patents used in the

Number of Shareholders’ meeting held Times 5 2 4 property PCS 13 10 7

meeting main business

Equity and Senior executive shareholding rate % 0.63 0.63 0.63 Annual number of new patents PCS 13 7 1

shareholders Share pledge ratio % 6.26 6.26 6.26 Number of pending patents PCS 3 7 6

Number of trademarks etc. held PCS 43 43 43

Employee employment

Social performance Number of Total number of employees Person 703 573 571

employee

Number of new

Number of newly hired employees Person 296 179 236

employee

Indicators classification Unit 2024 2023 2022 Number and

Number of female employees Person 229 185 180

proportion of

employees by

Customer feedback response speed Day 1 1 1 Number of male employees Person 474 388 391gender

Number and

Customer service Customer feedback response rate % 100 100 100 Number of parttime employees (if any) Person 1 4 1

proportion of

Customer complaint Times 0 2 2 employees by

employment Number of fulltime employees Person 702 569 570

Total number of customer satisfaction

Copy 41 33 31 type

questionnaires issued

Total number of satisfaction ques- Number of employees under 30 Person 213 152 178Customer Number and Copy 41 33 31

satisfaction tionnaires collected proportion of Number of employees between 30 and

Person 379 312 286

survey Questionnaire collection rate % 100 100 100 employees by 50

age

Number of employees over 50 Person 111 109 107

Customer satisfaction survey results % 95 94.9 94

Number of employees below

Number of Person 577 487 493undergraduate

employees

by education Number of undergraduate employees Person 119 83 75

background

Number of master employees Person 7 3 3

92 93ESG Report 2024 Juheshun Advanced Materials Co.Ltd.

Indicators classification Unit 2024 2023 2022 Environmental performance

Number of employees in senior

Person 3 3 3

management Indicators classification Unit 2024 2023 2022

Number of employees in middle

Number of Person 33 31 30

management Total input in environmental management RMB (10000) 559.80 348.26 863.25

employees by

Number of employees in junior

rank Person 140 128 122 Proportion of total input in environmental

management % 0.08 0.06 0.14management against operating income

Environ-

Normal employees Person 530 411 416 mental Number of violations of environmental laws PCS 0 0 0

manage- and regulations

R&D Total number of R&D per-sonnel Person 168 136 119 ment During the reporting period amount of

department major administrative penalties imposed by

RMB (10000) 0 0 0

personnel R&D personnel proportion % 23.90 23.73 20.84 ecological environment and other rele-vant

Number and authorities due to environmental incidents

Number of dimission em-ployees Person 163 177 135

proportion Juheshun Advanced Materials Co. Ltd.of dimission Green-

Employee turnover/ dimis-sion rate % 23 31 24 Tons of carbon

employees house gas Total greenhouse gas emissions 13085 12628 11720

dioxide equivalent

emissions

Remuneration per capita RMB (10000) 7.81 7.58 7.52

3

Remuneration Total waste gas emissions 10000m 39480 39480 36298

Income per capita RMB (10000) 757.91 901.11 702.20 Nitrogen oxide (NOx) emissions Tons 0.034 4.074 3.415

Air pollution

Sulphur oxide (SOx) emissions Tons 0.244 0.362 0.161

Employee rights & interests and welfares emissions

Volatile organic compounds (VOCs) emissions Kg 2793 2637 2605

Discrimination Cases of confirmed discrim-ination Case 0 0 0 Particulate matter (PM) emissions Kg 1303 1303 1198

Total wastewater discharge m3 71430 84466 66040

Forced labor Case of confirmed forced labor Case 0 0 0

Chemical oxygen demand (COD) Tons 2.317 4.707 4.569

Water

Child labor Case of confirmed child labor Case 0 0 0 Biochemical oxygen demand (BOD) Tons 0.4634 0.5712 0.4436

pollutant

Total number of employee satisfaction emissions Ammonia nitrogen (NH3-N) Tons 0.03369 0.062 0.081

Copy 703 573 571

questionnaires issued Total nitrogen (TN) Tons 0.751 0.753 0.575

Employee

satisfaction Questionnaire collection rate % 74.22 81.50 78.46 Total phosphorus (TP) Tons 0.003 0.003 0.003

survey Total waste generated Tons 258 290 232

Employee satisfaction results % 87.25 86.34 84.38

Waste Total hazardous waste t Tons 258 290 232

treatment

Talent training and development Total non-hazardous waste Tons 50 45 44

Total recycled/reused waste Tons 30 28 25

Total training hours Hour 21620 18082.5 15275.5 Tons of standard

Comprehensive energy consump-tion tons 26530.41 25443.43 24430.71

coal

Training hour per capita Hour 30.68 31.56 26.75

Energy Natural gas consumption m

3611173959412085408408

Employee

Total training hours of female employees Hour 5808 4855.5 3713 utilization Electricity consumption MWH 62018.09 58555.81 57167.77

training hour

Steam consumption tons Tons 112286.93 107844.82 105937.16

Total training hours of male employees Hour 15812 13227 11562.5 Clean energy utilization MWH 1215.32 1243.07 1189.07

Water re-

Total training hours of senior management our 171 240 120 Total water consumption Tons 213658 217470 209906

sources

Employee Total net freshwater consumption m

3213658217470209906

man-

training and Total annual number of training Times 909 798 612 agement Recycled/reused water m

3384933603849840038505600

assessment Raw Total mass or volume of materials used in

Ton/m3materials 293941.30 284208.51 277713.07production and packaging

and

packaging

materials Packaging bags PCS 3865761 3264146 3370918

manage-

ment

94 95ESG Report 2024 Juheshun Advanced Materials Co.Ltd.

Index of Indicators

Indicators classification Unit 2024 2023 2022 Primary issue Secondary issue Related sections

Changde Juheshun New Materials Co. Ltd. * Management on risks and opportunities related to climate change Not disclosed

Air Nitrogen oxide (NOx) emissions Tons 12.145 8.817 5.439 * Evaluation on adaptability of corporate strategy business model to climate change Not disclosed

pollution

emissions Sulphur oxide (SOx) emissions Tons 0.210 0.274 0.302 * Transformation plans measures and progress to address climate-related risks and

Address climate change

oppor-tunities

Water Chemical oxygen demand (COD) Tons 1.382 1.555 1.977

pollutant * Provide different ranges of greenhouse gas emissions by classification Performance highlights

emissions Ammonia nitrogen (NH3-N) Tons 0.057 0.076 0.073 Address climate change

* Provide information on greenhouse gas emissions by classification Address climate change

Shandong Juheshun Luhua New Materials Co.Ltd.* Accounting methods of greenhouse gas emissions Address climate change

Nitrogen oxide (NOx) emissions Tons 2.575 1.155 /

* Greenhouse gas emission reduction practice Address climate change

Air Sulphur oxide (SOx) emissions Tons 0 0.091 / * New technologies products and services contributing to reducing carbon

pollution Volatile organic compounds Address climate changeTons emissions and achieving carbon neutralityemissions 2.774 1.952 /(VOCs) emissions

* Pollutant emissions information Waste emission control

Particulate matter (PM) Tons 0.130 0.326 /emissions * Pollutant emissions treatment Waste emission control

Pollutant emissions * Emission reduction goals Not disclosed

* Impact on groups Not disclosed

* Administrative punishment Not involved

* Waste quantity Key performance

Waste disposal * Disposal information Waste emission control

* Emission reduction goals Waste emission control

* Withdrawal activities Not disclosed

* Conservation measures within the region Biodiversity conservation

Ecosystem and

* Protection and recovery measures Not disclosed

biodiversity conservation

* Biological genetic resources Not disclosed

* Product full life cycle impact Not disclosed

Environmental compliance

* Risk management

management

Environmental compliance Environmental compliance

* Emergency incidents

management management

* Administrative punishment Not involved

96 97ESG Report 2024 Juheshun Advanced Materials Co.Ltd.

Primary issue Secondary issue Related sections Primary issue Secondary issue Related sections

* Usage information Efficient resource use * Management system Quality management

Energy utilization * Clean energy Address climate change * Quality certification Quality management

Product and service

* Saving goals Efficient resource use * Major accidents Not involvedsafety and quality

* Usage information Efficient resource use * After-sales service Quality management

Water resource utilization

* Saving goals Efficient resource use * Accessibility Not disclosed

* Goals and plans Efficient resource use * Management system Information security

Recycling economy * Specific measures Efficient resource use Data security and * Security incidents Not disclosed

customer privacy

* Progress and effect Efficient resource use protection * Customer privacy protection Not disclosed

* Corporate strategy Not disclosed * Leakage incidents Not disclosed

Social contribution and Employee employment and

Rural revitalization * Specific measures * Employee employment

public benefit assessment

Employee health and

* Work results Not disclosed Employees * Occupational health and safety

safety

Social contribution and Employment development

Social contribution Contribution information Career development and training

public benefit * and training

* Strategic goals Not disclosed Due diligence Due diligence implementation information Not disclosed

* Specific information Innovation drive ESG governance

Innovation drive * Communication system

* R&D results Innovation drive Investor relations

Stakeholder management

* Innovation impact Innovation drive communication ESG governance

* Suggestion channel

* Field engaged Not involved Investor relations

management

* Internal management Innovation drive

Scientific and * Management system Commercial ethics

technological ethics

* Violations Not involved

* Risk evaluation Not disclosed

Anti-commercial bribery

* Training and publicity Not involved and anti-corruption

* Training performance Not disclosed

* Risk management Supply chain security

* Incidents incurred Not disclosed

Supply chain security * Safeguard measures Supply chain security

* Management system Commercial ethics

Anti-unfair competition

* Improvement measures Supply chain security

* Administrative punishment Commercial ethics

Equal treatment of * Unpaid sums Commercial ethics

small and medium-sized

enterprises * Specific information Commercial ethics

98 99ESG Report 2024 Juheshun Advanced Materials Co.Ltd.

Reader Feedback Form

Dear readers

Hello! Thank you very much for taking time from your busy schedule to read the 2024 Environmental Social and Governance Report of

Juheshun Advanced Materials Co. Ltd. In order to provide you and other stakeholders with more valuable information and effectively

promote us to improve the ability and level in performing corporate social responsibility we sincerely look forward to your comments and

suggestions.Choice questions (please tick the appropriate place)

1. What is your overall evaluation on this Report

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C r e a t e a n i n t e r n a t i o n a l b r a n d t o a c c o m p l i s h

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7. How do you think Juheshun does in terms of community responsibility

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Open question

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JUHESHUN ADVANCED MATERIALS CO.LTD.Address: No. 389 Weishi Road Qiantang District Hangzhou

Tel: 0571-82955559

100

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