CONTENTS

About this Report 02

Message from the Chairman 03 INTELLIGENT ENJOYMENT INTELLIGENT MANUFACTURING INTELLIGENT INTEGRATION

QUALITY LIVING GREEN OPERATIONS ORGANIZATIONAL VITALITY

ESG Highlights Performance 04

Empowering a Better Life 13 Digital Intelligence Empowerment 34 Empowering Employee Growth 57

ESG Ranking 05 and UpgradingBuilding a Trustworthy Choice 27 Creating a Fulfilling Workplace 62

Practicing Green Manufacturing 40

Excellent ESG practices 07 Diversity Equity and Inclusion 66

Responding to Climate Change 44 Strengthening the Foundation 70

About INTCO Recycling 10 of Safety

Summary of 2025 ESG

Key Performance Indicators 108

INTELLIGENT CARE INTELLIGENT CONNECTIVITY INTELLIGENT GOVERNANCE

GRI Standards Index 112 HARMONIOUS COMMUNITY SHARED SUCCESS SOLID FOUNDATION

Guidelines No. 14 of Shanghai Stock Expanding the Philanthropic 74 Strengthening Supply Chain 81 Optimizing Corporate Governance 92

Exchange for Self-Regulation of Listed Network Resilience

Companies—Sustainability Report (Trial) 120 Strengthening ESG Management 100

Advancing Rural Revitalization 78 Fostering a Synergistic Ecosystem 85

Safeguarding Information Security 103

Assurance Statement 121 Strengthening Community 79

Partnerships

INTCO RECYCLING-2025 ESG REPORT INTCO / 01About this Report Message from the Chairman ESG Highlights Performance ESG Ranking Excellent ESG practices About INTCO Recycling

ABOUT THIS REPORT

INTRODUCTION BASIS OF REPORTING REPORTING SCOPE

This report is the fourth environmental social and governance report

(referred to as "this Report" or the "ESG Report") issued by INTCO This Report is in accordance with the GRI Sustainability Reporting Unless otherwise stated the policies and data provided in this

Recycling Resources Co. Ltd (referred to as "INTCO Recycling" "we" or

Standards issued by the Global Sustainability Standards Board Report cover the Company and its subsidiaries and the scope of

"the Company") which aims to truthfully disclose the ESG performance

of the Company in 2025 as well as its responsibility fulfillment practices (GSSB) (referred to as the “GRI Standards”) and references the this Report is aligned with that of the annual financial report.for important stakeholders such as shareholders customers partners Shanghai Stock Exchange Self-Regulatory Guidelines for Listed

employees environment and communities. This Report focuses on the Companies No. 14 – Sustainability Reporting (Trial) and the UN

ESG management and achievements about the Company from January Sustainable Development Goals (SDGs).

1st to December 31st 2025 (referred to as the "reporting period").

Unless otherwise specified certain information and data may refer to

periods outside the reporting period.DATA SOURCES AND CONFIRMATION REPORT ACCESS

RELIABILITY STATEMENT AND APPROVAL AND CONTACT

The data and textual information disclosed in this Report have been

subject to a limited assurance engagement conducted by an independent After confirmation by management this Report was approved This Report is available in electronic form. Readers can visit the

third-party assurance provider in accordance with the International by the Board of Directors on April 27th 2026. Shanghai Stock Exchange (https://www.sse.com.cn) and the

Standard on Assurance Engagements (ISAE) 3000 (Revised) Assurance

Engagements Other Than Audits or Reviews of Historical Financial website of the Company (https://www.intco.com.cn). If you have

Information the International Standard on Assurance Engagements (ISAE) any comments or suggestions on the Company's environmental

3410 Assurance Engagements on Greenhouse Gas Statements and other social and governance disclosures and performance please

relevant standards. An assurance conclusion has been issued accordingly.The data and cases of this Report are mainly from the Company's statisti- contact us in the following ways:

cal reports and relevant documents. The Company's board of directors

commits that this Report contains no false records or misleading E-mail: Board@intco.com.cn

statements and takes responsibility for the truthfulness accuracy and Tel: 0533-6097778

completeness of the contents.INTCO RECYCLING-2025 ESG REPORT INTCO / 02About this Report Message from the Chairman ESG Highlights Performance ESG Ranking Excellent ESG practices About INTCO Recycling

MESSAGE FROM THE CHAIRMAN

In 2025 against the backdrop of continued shifts in the global macro environment and industry landscape INTCO Recycling

remained focused on navigating both risks and opportunities. We continued to advance our AI-driven development strategy

deepened our core business in resource recycling and high-value utilization and achieved another step-up in operating

performance. Our annual revenue exceeded RMB 3.5 billion for the first time underpinned by strong and sustained growth

momentum. I want to extend my heartfelt thanks to our global partners investors and all stakeholders who care about

INTCO's development！

Frank LiuAs a pioneer in the global resource recycling industry we have consistently upheld our mission of “serving environmentalChairman of INTCO Recyclingneeds through human ingenuity”. Driven by AI we are building a new generation of advanced manufacturing system and

embedding trustworthy AI across the full industrial chain of “plastic collection – plastic regeneration – circular reuse”

accelerating our digital and intelligent transformation. Meanwhile we have always regarded information security and data

compliance as fundamental principles using trustworthy AI to safeguard the rights and interests of our stakeholders.Looking ahead we will continue to explore the integration of AI technologies and advanced manufacturing and contribute

INTCO’s expertise and solutions to sustainable development.In response to the upgrading of green consumption trends and evolving product needs we have remained focused on the

high-value utilization of recycled plastics made from multiple materials. We continue to broaden our green product portfolio

and expand diversified scenario-based solutions. From healthy and comfortable home living to industrial and construction

applications that require stringent standards; from refined interior decoration to diverse outdoor settings we remain

committed to a low-carbon and environmentally friendly philosophy. By leveraging recycled materials we are creating new

benchmarks in sustainable living aesthetics and unlocking greater application potential and value.We uphold the core values of “Love Goodness Truth” and continue to strengthen our systems for employee occupational

health and development so that every INTCO employee can grow together with the Company and share in its success. We

work closely with supply chain partners to enhance ESG capabilities and deepen collaboration building a circular industrial

ecosystem featuring shared value and green development. Relying on the “INTCO Foundation” and the “INTCO Mutual AidFund” we extend the benefits of development to employees and wider communities and join hands with all parties to

consolidate the foundation for sustainable development.As a pioneer in green manufacturing in China INTCO Recycling will continue to deepen its presence across the resource

recycling value chain and stay on the main course of circular regeneration. We will continue to take AI as a core engine andserve the world with innovative technologies and quality products turning the vision of “trustworthy AI+ recyclable homesand a sustainable future” into shared global practice. We will continue to harness the innovative strength of China’s intelligent

manufacturing to contribute to the realization of the national Dual Carbon goals protect our shared planet and work with

society toward a sustainable future for humankind as we write the next chapter for INTCO.INTCO RECYCLING-2025 ESG REPORT INTCO / 03About this Report Message from the Chairman ESG Highlights Performance ESG Ranking Excellent ESG practices About INTCO Recycling

ESG HIGHLIGHTS PERFORMANCE

Total Greenhouse Gas Emissions Energy Intensity General Waste Recycling Rate A Highest Level of Information Grade for

Disclosure Rating by Shanghai

591835.74 tons of CO?e 0.36 2 consecutiveStock Exchange yearsMWh/ten thousand RMB 84.57%

Scope 1 2683.95 tons of CO?e Percentage of Percentage of Women in

Female Directors Top Management Positions

Scope 2 55224.35 Renewable Energy Usetons of CO?e

Partial 60% 80%

Scope 3 533927.44 tons of CO?e 818.86ten thousand kWh

Employee Training Investment

Business Ethics

6777900 Training SessionsRMB 9 times

Volunteer Activities Employee Participants Total Volunteer Hours

Total Training Time 375 2652 872 Business Ethics359520 and Anti-corruptiontimes hours Training Coverage 100%hours

Customer Satisfaction Strategy and ESG

Score Charity Donations (Company & Foundation) Committee Meetings

98.2 2396500 RMB 3 times

INTCO RECYCLING-2025 ESG REPORT INTCO / 04About this Report Message from the Chairman ESG Highlights Performance ESG Ranking Excellent ESG practices About INTCO Recycling

ESG RANKING

All-China

Best ESG STAR Environment

Market Listed Federation –

Companies Included in the

S&P Global ESG Score 69 Ranking in the top 5% globally AA ESG 100 index ofRated from Wind ESG Rating Chinese Enterpries

Included in

S&P Global Sustainability

Yearbook 2026 for the first time

Shanghai Stock Exchange – Key Cases

from ESG Practice in Two Decades

China Association for

Public Companies – Shanghai Low-Carbon Supply Chain

"Best Practice Case of Benchmark Enterprises

the Board of Directors

of Listed Companies" Cailian Press – Cailian Press ZhiyuanAward*ESG Pioneer Award

Included in Sustainability ESG Carbon Neutral Taurus Award

Yearbook (China Edition) for two consecutive years

2025 Golden Dawn Investor Relations Award

Best Practices in Investor Relations

Management for Chinese Listed Companies

Securities Times –

Outstanding ESG Practice Case Ranked among the New Quality Enterprise Golden Bull Award

for Listed Companies "Top 100 ESG

B Performers of Shanghai Climate Week – ClimateRated (Management) Chinese Listed Lighthouse Outstanding Case Award

from CDP Climate Change Companies"

INTCO RECYCLING-2025 ESG REPORT INTCO / 05About this Report Message from the Chairman ESG Highlights Performance ESG Ranking Excellent ESG practices About INTCO Recycling

CORPORATE HONORS

2025 Forbes China 2025 Bloomberg Green 2025 National

Best Employers: DEI Caring & Inclusive Key Cultural Export 2025 China Top 500

Most Popular with Workplace Award Enterprise Innovative Brands

Employees

2025 Shandong 2025 Shandong Provincial

2025 China Top 100 Provincial Manufacturing 2025 Shandong Advanced Collective for

Growing Listed Single Champion Provincial Enterprise Supporting Persons

Companies Enterprise Technology Center with Disabilities

2025 Shandong 2025 Zibo 2025 Zibo 2025 Zibo

Annual Extraordinary TOP 100 Enterprises Top 100 Manufacturing Key Laboratory

Employer Enterprises

INTCO RECYCLING-2025 ESG REPORT INTCO / 06About this Report Message from the Chairman ESG Highlights Performance ESG Ranking Excellent ESG practices About INTCO Recycling

TRUSTWORTHY

Product Design Brand PR Customer Service Sales

Design tool integration Market trend insights Recommended solutions Knowledge base search

Process digitization

Supplier External Stakeholders

Human Resources

Supply Chain Smart recruitment

Trend insights Performance management

Material analysis

Collaborative development Customer

Procurement automation

Prospective

Manufacturing Customers

AIT

Workshop management Marketing automation

Material coding

Quality inspection Existing

Information security management

Customers In-house tool development

Production collaboration Warehousing and Logistics

Customer relationship

management Finance AffairsEnd-to-end tracking Legal Affairs

Intelligent container loading Project support Process automation

Document processing management Compliance review Intelligent Q&A

INTCO RECYCLING-2025 ESG REPORT INTCO / 07About this Report Message from the Chairman ESG Highlights Performance ESG Ranking Excellent ESG practices About INTCO Recycling

Lifest

yle r-P

ics

S ph

m otir or o frr a f mt ra em se ps ihe

c

a tn ud re o ft rh ae mr et a sc es cessories RENEWABLE HOMEA

Healthy Living Spaces r-PSr- mPE oT u la dc ino gu ss t aic n dp a wn ae ll ls p ae ntc e. ls

Scenic Outdoors r-PEW oP uC td d oe oc rk gin ag r da en nd bw ea dll p anels etc.INTCO RECYCLING-2025 ESG REPORT INTCO / 08About this Report Message from the Chairman ESG Highlights Performance ESG Ranking Excellent ESG practices About INTCO Recycling

SUSTAINABLE FUTURE

-450000

Tons/year

-300000 Crude Oil Resources +1.6 Million

Tons/year Boxes/Year

Carbon Emissions PS Mouldings

+150000 -2.7 Million

Tons/year Trees/Year

Recycled Plastic were Protected

Production Capacity

Cumulative Savings

3.4 5.1 33 Upholding the sustainable development philosophy of “INTCO Recycling Renewing the World” the Company has million Tons million Tons million pioneered a fully integrated industrial model of “plastic recycling–regeneration–reuse.” Through this innovative

approach we actively practice the principles of “replacing wood with plastic” and “turning waste into treasure”

Carbon Emissions Crude Oil Resources Trees be Protected bringing discarded materials back to life with renewed purpose.INTCO RECYCLING-2025 ESG REPORT INTCO / 09About this Report Message from the Chairman ESG Highlights Performance ESG Ranking Excellent ESG practices About INTCO Recycling

ABOUT INTCO RECYCLING

INTCO Recycling (Stock Code: 688087) is a high-tech manufacturer specializing in the recycling

regeneration and utilization of renewable resources. The Company has innovatively developed a 20+Years 3 6

fully integrated industrial chain for plastic recycling and reuse and is a pioneering enterprise that Business Units R&D Bases

seamlessly integrates recycled plastics with the production of fashionable consumer goods.INTCO Recycling operates six major production bases worldwide located in Shandong Shanghai

Anhui and Jiangsu in China as well as overseas in Malaysia and Vietnam. 5000+Employees 130+Countries 12000+Customers

The Company’s main product lines include decorative finished frames decorative building materials PET products plastic pellets and environmental protection equipment. Our products are exported to over 130 countries

and regions across the Americas Europe Asia Africa and Oceania serving over 12000 customers worldwide with high-quality products and services.Shanghai INTCO 2002 Jiangsu INTCO 2010 Anhui INTCO 2010

Shandong INTCO 2005 Malaysia INTCO 2018 Vietnam INTCO (Thanh Hoa) 2022 Vietnam INTCO (Quang Ninh) 2023

INTCO RECYCLING-2025 ESG REPORT INTCO / 10About this Report Message from the Chairman ESG Highlights Performance ESG Ranking Excellent ESG practices About INTCO Recycling

CORPORATE CULTURE

Corporate Values

INTCO Recycling practices the values of “Love Goodness Truth” upholding its multi-dimensional responsibilities.The Company continues to drive the development of the plastic recycling economy through the power of technological The Duty to Our Employees

innovation. Maximize the Individual Potential of Each Employee

Recruit and promote the right employees

Coach and support the development of individual professional skills

Values Provide continuous constructive performance assessment

Encourage innovation and change among employees

Love Goodness Truth

The Duty to Our Team

Create a Positive Working Environment

Encourage teamwork and collaboration

Recognize and reward outstanding performance

Provide competitive compensation and benefits

Promote consistent two-way communication

Mission Vision

INTCO Recycling Becoming a Global Leader The Duty to Our Customers

Renewing the World in High-tech Recycled Satisfy Our Customers

Resource Manufacturing Understand customer vision and strategic objectives

Continuously improve product service and value offerings

Anticipate and meet customer expectations

Build strong alliances with customers and suppliers

Spirit Objectives The Duty to Our Enterprise

Grow Our Business

Honesty & Integrity With the Human Wisdom

Enhance long-term profitability

Diligence & Hardworking Serving the Human Needs Expand our business and customer base

Professionalism & Teamwork Reinvest in new products services and support

Customer First

The Duty to Society

Improvement & Innovation Practice Ethical Behavior

Every Suggestion will be Cherished Operate with honesty and integrityPromote trust responsibility and respect

Every Improvement will be Awarded Encourage employees to recognize and embrace diversity and cultural awareness

Protect and care for the needs of communities and the environment

INTCO RECYCLING-2025 ESG REPORT INTCO / 11Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

Intelligent Enjoyment

Quality Living

2025 Highlights

Avoided landfill disposal of Cumulatively reducing carbon footprint by Invested RMB Representing Held

130136tons of PS PET PE and PP 293200.6 tons of CO?e 119.71million in R&D 3.38% of total operating revenue 3421 intellectual property rights

Key Topics Our Actions Corresponding SDGs

Circular Economy Development Deepen circular economy model innovation

Product Lifecycle Management Establishment of a sound product quality and safety supervision management

R&D Innovation system

Promoting equipment intelligentization and information automation to develop

Intelligent Manufacturing new quality productive forces

Customer Relationship Management Enhancing customer experience management and continuously improving

product and service quality

INTCO RECYCLING-2025 ESG REPORT INTCO / 12Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

EMPOWERING A BETTER LIFE

Intelligent Enjoyment

Quality Living Sell recycled pellets 130000tons/year

Reduce carbon footprint

emissions about

300000

tons of CO?e/year

Accumulated sales of Carbon reduction of

equipment about Serving about Serving over130 recycled products about

1400sets 100 countries globally RECYCLE countries globally 20%-50%

Reducing virgin plastics Recycling networks

Serving over12000 Renewable material

150000tons/year worldwide1300+ global customers content up to85%

With the "plastic circular economy" as its core strategy INTCO Recycling has built a full life cycle closed-loop system of "plastic collection - plastic regeneration - circular reuse" covering multiple plastic

categories including PS PET PE and PP. Its main products cover four major categories: environmental protection equipment recycled plastics decorative finished frames and decorative building materials

achieving a win-win synergy of efficient resource utilization and environmental protection.INTCO RECYCLING-2025 ESG REPORT INTCO / 13

REDUCE

E

REU

SIntelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

The Company takes sustainable products as its core strategic direction continuously increasing

R&D investment accelerating the upgrading of intelligent production lines and building and GREENMAX series intelligent 100% utilizing post-consumer

iterating a diversified product portfolio. The Company has established a product life cycle recycling equipment achieves recyc led p last ics (PCR)

management system deeply integrating sustainable design concepts into the R&D process highly efficient recycling of waste Recycled processed through multi-stage

continuously improving the R&D and design team's capabilities in sustainable innovation and plastics through compacting Material Selection washing intelligent sorting

actively promoting the exploration and implementation of circular economy business models. technology significantly reducing and modification and pelletizing

carbon emissions in transportation technologies recycling hundreds

Key Performance and storage. of thousands of tons of waste

By the end of the reporting period ent plastics annually.m

16 ip of the Company's product categories Equ R

have obtained GRS certification and e

1236 products and packaging have

obtained FSC certification.Sustainable

Product Portfolio

Market

Application Manufacturingat ai ive t

er

F ainish ding

M

ed Fram u

il

es rative B & Deco

Empowered by diverse innovative processes the renewable material content reaches up to 85%

andthecore product series have completed carbon footprint verification and LCA certification.*The Company has preliminarily established sustainable product management standards covering its four major product series. Based on

differentiated evaluations of quantitative indicators it optimizes the full-chain value creation from recycling to application.INTCO RECYCLING-2025 ESG REPORT INTCO / 14

Environmental Protection

ls

last

ics

P

cle

d

cy

co

r

DeIntelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

INTELLIGENT RENEWAL THROUGH RECYCLING

The Company's self-developed GREENMAX equipment covers functions such as compacting washing and

pelletizing of waste plastics gradually transforming from a single equipment supplier to a comprehensive

system solution provider. This layout can effectively improve recycling efficiency and quality while laying a

solid foundation for stable raw material supply and enhanced customer stickiness thereby strengthening

the enterprise's risk resistance.Through intelligent equipment innovation and global layout we are driving the plastic recycling industry to

transform towards high efficiency intelligence and low carbon providing solid technical support and

infrastructure assurance for building a global circular economy system.Product Portfolio Plastic cleaning and recycling line

In 2025 addressing the processing challenges of high-density EPP/EPO/EPE materials GREENMAX

launched the new-generation M-C300E intelligent compacting equipment.By optimizing the crushing process and hot melt system the equipment reduces the material

processing particle size to 2cm and simultaneously increases heating power by 30%. It

achieves highly efficient compacting and automated packaging for high-density complex

materials significantly reducing manual dependence and operational costs and effectively

breaking through the technical bottlenecks of traditional processing models.Packaging machine product line

Foam compact and recycle equipment Pelletizing machine product line

INTCO RECYCLING-2025 ESG REPORT INTCO / 15Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

Integrated System Design Intelligent System

The H-400 silo+II introduced by the Company

in 2025 is a highly efficient integrated Integrated

device precisely adapted to high-density Hydraulic Press The GREENMAX intelligent operating system was independently developed and successfully validated in

and high-dust foaming working conditions. 2024 and achieved large-scale application in 2025. It has been equipped on more than 10 core devices

The equipment pioneers a dual-silo-in-one

design efficiently unleashing the large marking that the equipment's digitalization and intelligent capabilities have entered a substantive

production capacity of dual stations; implementation stage. Through equipment interconnection and predictive maintenance the system

supported by intelligent material buffering effectively reduces energy consumption and on-site maintenance frequency shortens fault response

it balances production and maintenance time reduces high-risk operations and enhances operational stability and employee occupational

allowing for overhauls without shutting health and safety levels.down; it comes standard with cyclone dust

removal on top strongly suppressing dust

dispersion and comprehensively upgrading

the clean production experience in the

workshop.In 2024 the Company introduced the M-C300E model specifically designed for highly elastic foamed materials

such as EPE and EPP. This integrated system combines feeding storage compression cutting and conveying

and is equipped with a multi-layer alternating enhanced stirring mechanism to effectively prevent material

bridging with a production capacity of 300 kg/h.Foam Melting Machine

Intelligent Operation

and Maintenance Safe Control

Convenient

Management

Remote signal monitoring enables High-precision access control with Support multi-terminal access

collaborative troubleshooting with traceable full-process recording without APP installation and open

clients to remotely diagnose and of operation logs ensuring the API interfaces to realize interconnection

quickly eliminate faults. security and compliance of remote and interoperability of systems.connections.INTCO RECYCLING-2025 ESG REPORT INTCO / 16Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

RENEWING QUALITY PELLETS

Leveraging advanced plastic regeneration and pelletizing technologies the Company

has built a high-purity recycled pellet product portfolio covering four core categories: In 2025 the Company avoided the landfill disposal of approximately 130136 tons of waste through its

r-PS r-PET r-PE and r-PP with performance comparable to virgin materials meeting

the demands of high-end markets. By continuously optimizing production processes recycled plastic processing business cumulatively reducing its carbon footprint by around 293200.6 tons of

the Company promotes the upgrading of recycled plastics from "substitutes" to CO?e highlighting the significant environmental benefits of replacing virgin plastics with recycled materials in terms

"preferred products" providing global customers with high-quality recycled material of resource conservation and carbon emission reduction.solutions and achieving a closed loop of commercial value in the circular economy.Environmental Strictly controlling hazardous substances and r-PS pellets r-PET pellets Environmental High purity and low odor strictly meeting

Protection ful ly complying with EU RoHS standards Protection high-standard food-grade safety

Attributes ensuring environmental friendliness. Attributes requirements.The whole process is traceable with stable Excellent quality widely used in high-end

Application performance and good processability helping Application fields such as food packaging and beverage

Value customers real ize green upgrading and Value bottles empowering brand sustainable

product value addition. packaging strategies.

2025 Carbon Emission Reductions* 2025 Carbon Emission Reductions*

207752.29tons of CO?e 56271.60tons of CO?e

2025 Carbon Emission Reductions* 2025 Carbon Emission Reductions*

26421.78tons of CO?e 2754.93tons of CO?e

Environmental Excellent impact resistance and chemical Environmental Full process traceability and quality control

Protection stability durable and easy to recycle. Protection safe use through multiple tests such as RoHS

Attributes Attributes DSC infrared spectroscopy etc.Strong processing adaptability suitable for

blow molding injection molding pipes Building a high-value utilization loop for PP

Application packaging film etc. supporting customers to Application recycled materials based on modification

Value reduce costs increase efficiency and realize r-PE pellets r-PP pellets Value technology to meet the demand for lightweight

green manufacturing. functional and green customization.The carbon reduction of r-PET/r-PE/r-PP pellets is calculated based on data from the Association of Plastic Recyclers (APR); the carbon reduction of r-PS pellets is calculated based on product carbon footprint verification reports

and the Ecoinvent 3.10 database.INTCO RECYCLING-2025 ESG REPORT INTCO / 17Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

In 2025 the Company further enhanced the transparency of pellet quality management and completed the

upgrading of its quality informational management system. It can automatically aggregate raw material Innovative Modification Breakthroughs

supplier data as well as raw material quality assessment and acceptance status realizing full-process quality

traceability management of raw materials and products. The Company adheres to independent R&D and continues to make breakthrough progress in the

field of plastic modification.Transparent nstitutionalized Resource

Delivery Management Maximization In 2025 the Company successfully developed a new recycled HIPS modified material whose

impact strength increased significantly by 125% and realized internal independent substitution

of toughening agents reducing the related raw material costs by 48%.This innovation not only patches the product's performance shortcomings but also opens up significant

profit margins providing the industry with a solution that combines both economic and environmental

For key categories such as PS Further deepened the control Innovatively developed the benefits.and PET outgoing inspection of the pelletizing production "Green Clean Flake" order for

reports are automatically process formulated and the PET washing secondary

generated and dispatched implemented policies such as line while conducting internal

ensuring that the quality the PET Pelletizing Flake closed-loop consumption of Green Collaborative Practices

information of each batch of Washing Process Standard and green miscellaneous bottles

products is clearly searchable Process Change Contact Form from the main line

and the source is traceable and clarified strict risk significantly improving the raw The Company upholds the concept of openness and mutual benefit deeply connects with global

significantly enhancing trust assessment and verification material utilization rate and supply chain partners and jointly accelerates the scaled application of recycled materials in diverse

and collaboration with procedures for key variables achieving deep mining of

upstream and downstream such as raw material changes resource value. scenarios.partners. and additive adjustments.In 2025 the Company reached strategic synergy with a

world-leading consumer electronics brand successfully

delivering approximately 1000 tons of r-EPS electrical

packaging materials containing 50% recycled GPPS

content (corresponding to a finished product volume of

about 41700 cubic meters) achieving carbon

reductions of about 900 tons of CO?e.This cooperation not only verified the commercial viability of recycled materials in high-end

electronic packaging but also provided a replicable practical model for the green transition of the

industry.INTCO RECYCLING-2025 ESG REPORT INTCO / 18Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

ELEGANT AND BEAUTIFUL HOME

The Company upholds the core philosophy of a "responsible approach to product life cycles" building a The Company deeply integrates environmental sustainability DNA with modern aesthetics advocating a

closed-loop management system that covers raw material acquisition manufacturing logistics transportation new trend of green consumption through a diversified product portfolio and driving the home and

end utilization and disposal ensuring that all links strictly benchmark international environmental building materials industries towards a low-carbon transition. We prioritize the use of post-consumer

standards (such as the ISO 14000 series) and the relevant laws regulations and industry standards for each recycled plastics to reduce reliance on virgin plastics significantly lowering carbon emissions and

product category. To scientifically empower green design the Company has built a hierarchical multi-method environmental impact. Simultaneously we actively choose recyclable materials to ensure that products

concurrent Life Cycle Assessment (LCA) strategy. are easy to recycle and reuse after their life cycle ends.We integrate green design concepts throughout our two major

Key Performance product series: decorative finished frames and decorative building

The Company has commissioned a third-party organization to complete full life cycle assessments on materials with renewable material content reaching up to 85%.three types of decorative building materials: r-PS wall panels r-PET acoustic panels and r-PE WPC

decking. The decorative finished frames series uses r-PS extrusion molding supplemented by bending surface treatment and other processes to present a refined texture. The decorative building materials series

employs diverse processes such as integrated extrusion molding and PET felt needle punching allowing

In-Depth eco-friendly materials and modern aesthetics to complement each other in functional scenarios.Multi-Dimensional

Assessment Rapid Iteration Verification While pursuing green and low-carbon goals the Company adheres to the baseline of product safety. We

continuously increase R&D expenditures optimize production processes actively explore more

environmentally friendly and safer alternative raw materials and collaborate with industry associations

to jointly elevate industry standards.Implement in-depth Adopt simplified LCA Integrate external tools

LCA for representative for comparison among (e.g. carbon footprint) Risk Control Implemented a risk assessment mechanism across all product lines to avoid

products pinpoint high products of the same and third-party data potential human health and environmental hazards from the source.environmental load type and model and and conduct specialized

stages and guide support rapid green quantification of key

material selection and upgrading. indicators such as Dual Assurance Commissioned third parties to test the content of hazardous substances in raw

design optimization. carbon emissions. materials according to international authoritative standards such as ISO

16000 and continuously invested in advanced testing equipment to strengthen

internal self-inspection capabilities ensuring that hazardous substance limits

for all products 100% comply with stringent global regulatory requirements

such as REACH and RoHS.Serious The Company guarantees that all products across our entire line do not

Commitment contain EU-banned hazardous substances safeguarding user health and

the ecological environment.INTCO RECYCLING-2025 ESG REPORT INTCO / 19Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

Star

Product

Lifestyle Aesthetics r-PS Curved Mirror Frames Replaced traditional solid wood with recyclable r-PS integrating environmental protection into daily aesthetics.Green Circularity Quality and Safety Aesthetic Experience

High-value Regeneration: The Product Design Resilient Quality: Stable structure and strong Smooth Lines: Integrated bending design

Manual stipulates that recyclable materials can impact resistance Retro Texture: Distressed surface precipitating

account for up to 100% Safe and Harmless: Passed EU RoHS and REACH the texture of time

Process Upgrade: Hot bending molding certification Style Adaptability: Compatible with Nordic

enhances material utilization Moisture-proof Features: 100% waterproof and minimalism and industrial retro

Clean Production: Eco-friendly inks control mildew-proof non-deforming

exhaust gas from the source

INTCO RECYCLING-2025 ESG REPORT INTCO / 20Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

Star

Product

Healthy Living Spaces r-PET Acoustic Panels Transforms recycled PET fibers into high-performance acoustic materials safeguarding tranquillity and health.Green Circularity Quality and Safety Aesthetic Experience

Replacing Wood with Plastics: Adopts a International Standards: Zero formaldehyde Lightweight Craftsmanship: Modular and

composite process of recycled PET staple fiber VOC emission reaches French A+ standard dismountable design easy to maintain

and MDF Non-toxic and Harmless: Passed both RoHS and Fast Installation: Efficiency increased by 2.7

Low-Carbon Logistics: Lightweight design REACH certifications times dust-free construction

reduces transportation energy consumption Excellent Noise Reduction: Noise Reduction Minimalist Integration: Modern minimalist

Green Packaging: Recyclable minimalist Coefficient reaches up to 0.8 appearance visually comfortable

packaging design

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Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

Star

Scenic Outdoors Product r-PE Modular Garden Bed Made from recycled PE to create durable gardening products constructing an original ecological outdoor green space.Green Circularity Quality and Safety Aesthetic Experience

High-value Regeneration: Uses a high Long-lasting Weather Resistance: Resistant to Bionic Nature: Precise imitation wood grain with

proportion of recycled PE material extreme climates non-fading and non-cracking a warm touch

Low Carbon Footprint: Full-chain optimization Pure and Safe: No harmful additives passed Free Combination: Modular splicing flexibly

lowers the carbon footprint international environmental protection certifications changing shapes

Circular Reuse: Dismountable and re-com- Solid Structure: Modular design stable and reliable User-friendly: Comes with toolkits and guides

binable supporting partial replacement structure for easy installation

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Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

DELIVERING HIGH-QUALITY SERVICE 营M销ark自e动tin化g Automation

WITH INTEGRITY With the continuous expansion of its global business INTCO Recycling actively leverages AI technologies to

Responsible Marketing upgrade its market expansion model breaking through the efficiency bottlenecks of traditional business development

with digital and intelligent solutions thereby providing more timely and precise responses and services to

INTCO Recycling strictly complies with relevant laws and regulations such as the Law of the People's

Republic of China on the Protection of Consumer Rights and Interests and the Advertising Law of the customers worldwide.People's Republic of China conducting product marketing activities in accordance with legal and

regulatory requirements. The Company continuously improves its review mechanisms for promotional Intelligent Customer Lead Management Customer Segmentationcontent and marketing information standardizes the promotional practices of sales personnel and

partners and firmly prohibits violations such as false information and exaggerated advertising. Communication Operation

The Company has further strengthened its responsible marketing management. For products involving

materials certified under the Global Recycled Standard (GRS) the Company strictly requires upstream

suppliers to provide valid documentation ensuring traceability and compliance of raw material sources Utilizes Al technology to Employs intelligent tools to Leverages digital capabilities

and guaranteeing the authenticity and verifiability of marketing claims. This protects customers' gain insights intocustomer identify potential customer to enrich customer profiles

legitimate rights and interests and continuously fosters a trustworthy transparent and healthy market needs and enable intentions and implement and establish a scientific

environment.personalized interactions hierarchical management customer segmentation

The Company has independently built a digital marketing system enhancing brand visibility and

market expansion efficiency through precise online promotion. By integrating market research with enhancing communication improving sales conversion management system

website optimization the Company continuously improves the communication effectiveness and user efficiency and building efficiency. enabling precise service

reach of its proprietary platforms effectively supporting successful global customer acquisition and stronger collaborative trust. alignment with customer

service and driving high-quality business growth.needs.In 2025 the Company accelerated the

development of an AI-powered marketing

automation system leveraging AI technologies

to expand customer markets and utilizing AI

tools to optimize the creation of marketing

content. This enhanced brand communication

efficiency and market responsiveness Company continues to advance responsible marketing training requiring sales personnel to accurately convey

enabling customers to efficiently understand product information and strengthening the professional capabilities and compliance awareness of the sales

the advantages of the Company's products. team. Meanwhile the Company conducts specialized training on key customer platform operations covering

analysis of best-selling and new products marketing video production and other topics. Through a combination

of training and hands-on practice the team's e-commerce operation capabilities and market responsiveness has

been effectively enhanced. In addition the Company organizes thematic training sessions on product knowledge

and protection of trade secrets comprehensively improving employees' professional competence and risk

prevention awareness thereby providing strong support for achieving compliant precise and efficient marketing.INTCO RECYCLING-2025 ESG REPORT INTCO / 23Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

Promoting Industry Development

Participating in Industry Exchanges and Key Performance

Fostering Collaborative Development

During the reporting period the Company

INTCO Recycling actively participates in renowned

domestic and international industry exhibitions participated in a total of 43 exhibitions

continuously deepening external cooperation and

technological exchanges to advance the sustainable

development of the plastic recycling and circular receiving 8146 visitors.utilization industry.Ambiente Frankfurt（Spring Consumer Goods Fair） K Show

The 138th China Import and Export Fair (Canton Fair) CHINAPLAS International Trade Fair for Plastics and Rubber

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营销自动化 Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

Customer Relationship Management

The Company continuously optimizes its customer service system actively adopts intelligent technologies INTCO Recycling has established the Customer Complaint Control Procedure to standardize the processes

to enhance customer relationship management promptly responds to and properly handles customer for receiving responding to and handling customer complaints. This system promotes thorough problem

inquiries and drives continuous improvement in service quality and customer experience. analysis and the implementation of corrective and preventive actions ensuring that customer feedback is

promptly communicated effectively analyzed and rapidly addressed thereby minimizing quality losses

and continuously enhancing customer satisfaction.Customer Relationship Management The Company adheres to a customer-centric approach deeply integrating customer feedback into the

entire process of product iteration and service optimization. By building a diversified customer communication

Centered on customers' end-to-end service needs the Company deepens the application of AI technology network that combines online and offline channels the Company provides convenient and efficient

to optimize management processes enhance service efficiency and response speed and advance customer pathways for feedback tailored to different customer segments. Leveraging a digital customer service

management toward refinement efficiency and intelligence. platform customers can access real-time consultation and submit issues through AI-powered chatbots

online forms or dedicated email addresses. A dedicated customer service hotline is also maintained to

ensure uninterrupted communication. For special groups such as elderly and disabled individuals the

Company continuously improves accessible and age-friendly service procedures to enhance inclusivity

and service accessibility. For significant matters or complex issues the Company conducts offline on-site

communications to comprehensively meet customer service needs across various scenarios.The Company has established a standardized closed-loop customer

Utilizing digital technologies Leveraging intelligent

complaint management mechanism enabling full-process control from Key Performance

to analyze customer tools to analyze customer

interaction data supporting Precision Efficient requests matching complaint intake to root cause analysis responsibility assignment corrective

the development of historical cases and action verification and implementation of outcomes. This ensures efficient During the reporting period Service Response

personalized service plans to solutions to accelerate response clear accountability and effective improvements driving the Company achieved a

improve customer satisfaction service response and continuous enhancement in both product and service quality. Meanwhile

and loyalty. enhance standardization. the Company strictly enforces service protocols during complaint

handling promptly confirming receipt of complaints to customers and 100% customer

clearly communicating expected resolution timelines and follow-up complaint closure rate.Employing data analysis Developing intelligent arrangements thereby safeguarding customers' rights to information and

and trend forecasting to assistant tools to provide oversight.proactively anticipate sales teams with instant

customer needs coordinate Systematic Professional support on product INTCO Recycling Customer Complaint Handling Process

resource allocation and Assurance Capability knowledge and business

ensure stable and reliable consultation continuously

service delivery. enhancing service 01 02 03 04 05 06

professionalism. Receiving Conducting Organizing Developing Tracking Verifying

customer internal customer improvement implementation continuous

complaints traceability complaint plans of corrective improvements

investigations meetings actions

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Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

Customer Satisfaction Management Localized Brand Communication and Product Experience Services

The Company consistently adheres to a customer-first principle and has established and implemented

the Customer Satisfaction Control Procedure. It conducts regular customer satisfaction surveys annually To enable overseas customers to gain a more intuitive and authentic understanding of

evaluating aspects including product quality after-sales service new product development capability product functions installation usage and actual effects the Company has partnered with

responsiveness to issue resolution and on-time delivery. The Company continuously listens to local content creators abroad to produce material on product experience installation

customer feedback and optimizes service processes accordingly to enhance the overall customer guidance and practical tips from the perspective of local users. This approach has effectively

experience. increased market recognition and boosted sales of related acoustic panel products.Customer Satisfaction Research Management

Client Satisfaction

Management

Satisfaction Satisfaction

Survey Rating

Marketing Department

Issue Summary

Quality Department

Improvement Tracking

Relevant Departments

Follow-up and Implementation

Customer Satisfaction Additionally for large decorative panel products the

Improvement Key PerformanceCompany offers sample trial experience services

allowing customers to physically assess material In 2025 the Company achieved a customer

craftsmanship color and quality before purchase.This minimizes expectation gaps and significantly satisfaction score of 98.2.improves customer satisfaction.INTCO RECYCLING-2025 ESG REPORT INTCO / 26Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

BUILDING A Innovative R&D of Modification Technology Advances the Plastics Circular Economy

TRUSTWORTHY

CHOICE Equipped with proprietary advanced plastic modification

technology INTCO Recycling transforms waste plastics into R&D Expenditure (ten thousand RMB)

high-performance customizable recycled plastic transit containers

INTCO Recycling has always regarded R&D and innovation breaking through the performance bottlenecks of conventional 9072 10502 12266 11971

as the core driving force for development focusing on recycled plastics. Through the application of novel modification

technological breakthroughs and industrial upgrading. techniques and specialized additives the product demonstrates

The Company strictly implements relevant standards for significant improvements in strength toughness wear

intellectual property protection strengthening the resistance and aging resistance approaching or even surpassing

foundation for innovative development and continuously the quality of virgin materials. Combined with an innovative

enhancing its core competitiveness. Meanwhile the foldable structural design the containers are lighter stackable

Company adheres to the principle of quality excellence and easy to transport increasing logistics and storage space

rigorously controlling product quality throughout its utilization by 80%. The Company has established a closed-loop

entire lifecycle. Leveraging a comprehensive quality full-industry chain covering collection recycling and high-value

management system and refined control mechanisms utilization enabling efficient resource circulation while reducing

the Company ensures consistent and reliable product energy consumption and production costs—driving green

quality delivering high-quality products and services to industrial upgrading through technological innovation.customers.STRENGTHENING R&D 2022 2023 2024 2025

INNOVATION Innovative R&D of J-C50 Thermal Melting Machine for Efficient and Intelligent Molding of Recycled Plastics Number of R&D Staff (person)

The Company has established an efficient and collaborative

R&D system releasing the Research and Development 379 377 484 511

Project Management System Manual to build a full-cycle The Company independently developed the J-C50 thermal melting

management mechanism covering project initiation machine enabling continuous intelligent and highly efficient

execution and outcome implementation. It optimizes molding of recycled plastics. Adopting innovative mold and

resource allocation strictly controls key milestones structural design the machine integrates automatic air-cooling

strengthens the management of key technological system and an online cutting system to achieve continuous precise

breakthroughs improves R&D efficiency and achievement length cutting automatically producing standardized blocks. This

transformation capabilities stimulates innovation vitality reduces labor intensity and reliance on packaging while enhancing

through standardized and refined management and production continuity. Additionally the machine is equipped with an

promotes rapid product iteration. activated carbon filtration system that effectively adsorbs dust and

volatile impurities generated during heating significantly reducing

In 2025 the Company launched its R&D management emission risks and fully meeting environmental safety and

system achieving digital closed-loop control over the entire regulatory requirements.R&D process. Through automated data collection

intelligent verification and full-process traceability the

Company has continuously improved R&D management

efficiency consolidated its compliance foundation and 2022 2023 2024 2025

provided robust support for technological innovation and

high-quality development.INTCO RECYCLING-2025 ESG REPORT INTCO / 27Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

Intellectual Property Management

The Company strictly abides by the Patent Law of the People's

Republic of China the Trademark Law of the People's Republic of

China and other relevant laws and regulations. The Company has The Company collaborates with external professional institutions to deploy a digital patent search platform. At critical

established the Intellectual Property Management System and the stages such as research project initiation new product launches and the introduction of new technologies it conducts

Intellectual Property Incentive System promoted the development patent and related literature search and analysis to effectively avoid redundant research and infringement risks thereby

of its intellectual property management system and defined the enhancing innovation efficiency and compliance standards. In addition the Company has begun developing an internal

protection standards and implementation measures for various intellectual property management system covering multiple modules such as patent metrics patent incentives and

types of intellectual property including patents trademarks intellectual property administration enabling centralized management of intellectual property outcomes.copyrights new product technologies and trade secrets thereby

comprehensively mitigating infringement risks and safeguarding the

Company's legitimate rights and interests. The Company has

maintained certification in accordance with the Enterprise Intellectual

Property Compliance Management System-Requirements (GB/T

29490-2023) for consecutive years safeguarding its innovative

development through compliance management.Patent Trademark

Intellectual Property (IP) 113pieces 100pieces Total

Indicator Management

Incentive Application Image Copyright Domain Software Copyright Name Standardsetc. 3421pieces

Patent Management 38pieces 3170pieces

Trademark Management

Document Management

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Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

ENHANCING THE QUALITY CONTROL SYSTEM

INTCO Recycling adheres to the quality philosophy of " Quality First Prevention-Centric" implementing strict quality control throughout the entire product lifecycle. The Company deepens its enterprise-wide quality

culture and ensures high-quality products and services through a standardized and efficient quality management system laying a solid foundation for sustainable development.Quality Management System

The Company strictly complies with laws and regulations such as the Product Quality Law of the People's As of the end of 2025 the coverage rate of ISO 9001 quality management system certification across

Republic of China and the Foreign Trade Law of the People's Republic of China as well as the requirements of

the ISO 9001 quality management system. It has formulated and implemented multiple management systems INTCO Recycling's manufacturing facilities reached 66.67%.including the Quality Manual and the Product Safety Management Control Procedure establishing a clear

division of responsibilities and an efficient operational quality management framework. The Company adopts In 2025 we achieved several key breakthroughs in quality compliance:

a management mechanism in which the General Manager oversees quality management while a designated

July 2025: The Malaysia factory became a partner of Operation

Management Representative is responsible for quality supervision and internal-external coordination Clean Sweep (OCS) committing to full implementation of the

ensuring effective transmission of management responsibilities and successful implementation of control OCS program with the goal of achieving zero pellet flake and

measures. powder loss. The facility also obtained OCS certification from the

Malaysian Plastics Manufacturers Association demonstrating our

Focusing on key stages such as research and development production and delivery the Company has commitment to green and sustainable development through

established a full-process quality control mechanism and implements standardized inspection and measurement precise production management.procedures to ensure that products meet stringent standards in environmental protection safety and quality.In 2025 the Company revised several systems including the Outgoing OQC Work Instructions the Product

Risk Assessment Control Procedure the Nonconforming Product Control Procedure the Identification and

Traceability Control Procedure and the Product Recall Procedure continuously improving its quality control

system and comprehensively enhancing quality management capabilities.INTCO Recycling regards quality management system certification as a core element of compliant operations

and quality assurance. The Company actively promotes certification initiatives and fully cooperates with

audits and oversight conducted by third-party auditing agencies customers and suppliers thereby

strengthening its quality defense line through full-process control.关键绩效

In 2025 the Company underwent 47 April 2025: Our recycled PET products successfully obtained FSSC 22000

food safety certification complying with ISO 22000:2018 ISO/TS

93 22002-4:2013 and FSSC 22000 Annex requirements. This certification customer audits and third-party audits enables the production of recycled PET flakes pellets and clean flakes for

use in the food and beverage industry providing authoritative compliance

achieving a 100% pass rate. assurance for applications involving food contact.INTCO RECYCLING-2025 ESG REPORT INTCO / 29Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

In 2025 the Company continued to advance its product international certification efforts. The building materials product series successfully obtained a range of certifications in the construction materials field aligning

product performance in safety environmental protection and quality with international standards further strengthening competitiveness in the global market.Category Core Certification / Standard Test Method / Standard Result

Safety EN 15102 PASS

Chemical Control REACH Regulation RoHS 2.0 (EU 2015/863) PASS

Indoor Air Quality ISO 16000

Acoustic Performance ISO 354 NRC=0.8

Weather Resistance ISO 4892-2 ＞3000h

In terms of new product design and development the Company has established the New The Company continuously implements the Quick Response Quality Control Mechanism / QRQC. Through real?time identification

Product Introduction and Prototyping Guidelines. Closely integrating customer needs the and rapid response to various quality abnormalities in the whole production and operation process it ensures timely and effective

Company conducts strict quality testing and comprehensive evaluation on new products and

implements orderly quality management throughout the whole process from prototyping and control and closed?loop resolution of quality issues and continuously maintains stable production and product quality.small batch trial production to mass production so as to ensure standardized controllable

processes and stable quality in product R&D and volume production. Quick Response Mechanism for Quality Abnormalities

In terms of finished product quality management the Company carries out Design Failure

Mode and Effects Analysis (DFMEA) and Process Failure Mode and Effects Analysis (PFMEA)

for building materials and profile products made of PS MDF and PE. It systematically

identifies potential failure risks across the entire product life cycle including raw and auxiliary

material procurement production processes finished product assembly and packaging Exception Responsible Archiving Facilitate Weekly

warehousing and logistics and transportation establishes prevention and response mechanisms Launch QRQC Exception LevelInformation Departmentand Clarify Assessment and Records Implementation Meetings

and realizes proactive control and closed?loop management of quality risks throughout the Report and Feedback onResponsibilities Set Timelines and Information and Close and Continuous

chain. Record Improvement Sharing Exception ImprovementPlan

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Quality Information Management Enhancing Enterprise-wide Quality Awareness

Enterprise-wide Quality Standardization Initiative

INTCO Recycling has fully launched an information-based material inspection system

across all production bases. Through digital means the system realizes automatic statistics To strengthen the foundation of quality management achieve full-process quality control with participation

and real-time monitoring of core data throughout the incoming material inspection from all employees and establish a standardized and systematic quality management system the

Company launched the enterprise-wide quality standardization initiative in 2025. Centered on the

process covering key quality indicators such as defect rate. It also supports detailed

product lifecycle the initiative systematically advances five core areas:

analysis and report generation by multiple dimensions including material type supplier

and purchaser providing data support for quality control in the material management Establish standardized control processes from design review

process. New Product and sample verification to pilot production release clearly

Introduction: defining quality standards and responsibilities at each stage to

proactively identify and mitigate design and process risks;

Standardize supplier qualification review in-process audits and

Supplier performance evaluation systems and establish collaborative

Management: improvement mechanisms to ensure consistent quality across

the supply chain;

Refine work standards for each production process strengthen

patrol inspections at critical control points and data traceability

Manufacturing:

eliminate non-compliant operations and achieve closed-loop

quality control throughout production;

Develop a tiered and categorized training and assessment system

Training and covering quality knowledge operational procedures and anomaly

Assessment for All handling capabilities. Through regular evaluations promote

Employees: continuous learning and reinforce the quality foundation across

all staff;

Integrate quality principles into daily operations through awareness

Quality Culture campaigns role model recognition and case sharing fostering a

quality culture where "everyone values quality and everyone

Development: upholds quality" and driving the sustained and long-term

implementation of quality management.INTCO RECYCLING-2025 ESG REPORT INTCO / 31Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

Implementing Enterprise-wide Quality Training Specialized Training on MDF Acoustic wall panel Processes

In 2025 for acoustic panel products involving different manufacturing processes the Company

In 2025 the Company continued to deepen its quality culture by comprehensively further improved its process standard documents for acoustic panels. It conducted special

organizing targeted quality training programs covering all employees. The training sessions focusing on core process standards quality control points and safe

training content included key modules such as quality standards inspection operation specifications and disseminated knowledge on process risk identification and

methods non-conforming product control handling of abnormalities in hazard prevention and control. This further strengthened all employees’ awareness of process

externally procured materials product defect assessment and finished compliance quality and safety built a solid line of defense for process quality and safety

throughout the full product lifecycle and effectively ensured efficient and orderly production

goods warehouse management. These initiatives further strengthened and operation as well as stable and controllable product quality.employees' quality awareness and practical capabilities providing solid

support for quality control throughout the product lifecycle.During the reporting period

the Company conducted a total of 179 quality training sessions

achieving 100% employee participation.INTCO RECYCLING-2025 ESG REPORT INTCO / 32Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

Intelligent Manufacturing

Green Operations

2025 Highlights

14922 Invested RMB Comprehensive energy Greenhouse gas emissions intensityImplemented lean improvement 11507900 8.1886 consumption intensity: from own operations: 90.37% of packaging 29.23% in environmental

Utilized million kWh materials made from

projects with a increase year-on-year protection initiatives of renewable energy 0.36 MWh per RMB 10000 0.16 tons CO?e per RMB 10000 recycled/renewable materials

Key Topics Our Actions Corresponding SDGs

Intelligent Manufacturing Advance intelligent manufacturing

Responding to Climate Change Address climate change

Energy Management Enhance resource efficiency

Water Resource Management Optimize green operations

Pollution Prevention

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Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

DIGITAL INTELLIGENCE Lean System Iteration

EMPOWERMENT AND The Company has comprehensively established and deepened its lean management system and developed the "INTCO Lean System" to realize intelligent management of the lean system. By systematically building a full-process standardized and collaborative management framework it has formed an

UPGRADING efficient closed-loop management ecosystem of "project implementation – improvement delivery – effectiveness analysis – intelligent evaluation". Through systematic management measures the Company continuously promotes cost reduction and efficiency improvement optimizes resource allocation

and steadily enhances overall operational quality and collaborative management capability.The Company takes digital and intelligent transformation as the

driving force and lean management as the core continuously deepening

its intelligent manufacturing layout and iteratively improving the lean

management system. Through comprehensive multi-dimensional

integration of resources and process optimization across the entire

value chain the Company enhances collaboration efficiency across

internal functions. With an efficient and coordinated operating model

a continuously refined management system and intelligently upgraded

manufacturing capabilities the Company is steadily strengthening

the foundation for high-quality development and injecting strong

internal momentum into its sustainable growth.IMPROVING COLLABORATIVE In 2025 the Company implemented labor efficiency optimization in 17 key areas

completed 25 lean improvement projects and launched 41 QCC improvement initiatives.EFFICIENCY

PMC Management Transformation Breaking Through Promoting Lean Production to Enhance On-Site

Operational Bottlenecks Operational Efficiency

In 2025 the Company's Vietnam base comprehensively advanced lean In 2025 the Company’s Vietnam base continued to deepen lean

improvements in the Production and Material Control (PMC) management production by establishing a rapid response mechanism for production

system refining production coordination order delivery and material abnormalities implementing standardized quick model changeover

availability assurance processes to drive efficient end-to-end production procedures and carrying out automation and ergonomics improvements

collaboration. for fixtures and tooling. These initiatives effectively reduced operational

Leveraging lean improvement initiatives the PMC management effectiveness intensity and significantly improved workshop operational efficiency.at the Vietnam base significantly increased achieving a material availability Through the implementation of targeted lean projects multiple core

rate of 92.6% a timely output rate of Bill of Materials (BOM) of 94% and a production indicators of the Vietnam base showed continuous

sales order on-time delivery rate of 93.7% effectively ensuring stable and improvement achieving an 8.2% increase in production capacity

efficient operation of production and business activities at the base. compliance rate and a 17.4% increase in plan achievement rate.INTCO RECYCLING-2025 ESG REPORT INTCO / 34Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

In 2025 the Company collaborated with third-party professional

institutions to advance the upgrade of lean management iterated

and optimized the lean operation structure took performance

improvement as the core main line and advanced in depth focusing

on three key dimensions: performance formulation application of

performance improvement tools and lean talent training. It deeply

integrated lean management tools such as 6S visualization operation

standardization Industrial Engineering (IE) and problem-solving

methodologies built a standardized and systematic lean production

management system and improved the standardization and scientization

level of lean operation.Lean Consulting Promotes Standardization of Workshop Management

By implementing lean consulting projects across all production bases the Company has actively built a lean management system:

IE Industrial Engineering Optimize production processes Establish unified management

Core Focus PMC Production Planning Improve the planning system Cultivation Standardized Management standards of the Group

Continuous Improvement Enhance overall efficiency Means Build a training system for front-line

Initiatives managers

TPM Equipment Ensure stable operation of equipment Consolidate the foundation of

Production Management Guarantee stable product quality Management 6S Management on-site operations

Assurance TQM Quality Management Ensure the achievement of production Cornerstone Employee Training Strengthen the capacity building of

KPI Assessment System plans personnel

On this basis the Company has refined lean improvement measures: established an indicator system for labor efficiency and equipment efficiency built a closed-loop mechanism for efficiency abnormalities and promoted an

overall efficiency increase of 10%; constructed product-level cost prediction and accounting tools to optimize costs; realized "One INTCO One Standard" through top-level design and implemented unified lean standards with

improvement weeks as the carrier; introduced lean Yellow Belt Green Belt Black Belt certification and five-star team training system achieving 100% pass rate for Yellow Belt certification and one-star certification; introduced

the improvement week tool sorted out improvement projects and promoted closed-loop problem solving achieving the management goal of each employee solving two problems through improvement weeks per month.INTCO RECYCLING-2025 ESG REPORT INTCO / 35Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

Performance System Optimization

In 2025 the Company launched the IBS performance management

The Company has established a strategic map covering four dimensions: finance information system which integrates functions such as data entry

indicator configuration visualized display intelligent identification of

market and customers internal operations and organizational growth. This map is abnormal indicators and closed-loop management of improvement

progressively broken down to form Company-level and department-level KPI systems. tasks. The system automatically issues alert for abnormal indicators

An annual performance dynamic optimization mechanism has been implemented to and sends notifications significantly improving data accuracy and

ensure that performance indicators are aligned with business development. Meanwhile management efficiency thereby providing strong data support for

the Company holds monthly performance review meetings and tracks the implementation lean operations and data-driven decision-making.of improvement measures through a digital progress dashboard enabling full-process

Figure Caption: Monthly Performance Visualization

closed-loop management. Feature in the IBS System

Lean Culture Development The Company a culture of continuous improvement involving all employees promoting deep engagement in improvement and innovation through incentive platforms such as an improvement suggestion system.Throughout the year

the Company organized 29 Improvement Week events and 102 sessions

of monthly themed continuous improvement activities. Combined with a

diversified matrix of featured activities the Company has continuously

deepened the penetration of the improvement culture promoted full employee

participation in improvement initiatives and built an improvement culture

system featuring "incentives + activities + tracking".Star Feature Improvement

Interview ProposalChallenge

Matrix Of

Department Diversified Mentorship

Excellence Award for Featured Activity Points Lottery

Improvement Event

Matrix for Lean

Culture

Themed

Improvement Eagle Eye Activity

Month

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Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

Key Performance

Employee-Driven Continuous Improvement

The Company has established an AI-driven continuous improvement system to achieve In 2025 the Company submitted a total of

full-process visualization data management and standardized management of improvement 14922 continuous improvement and

proposals. The system integrates functions such as visualized tracking offline proposal innovative improvement proposals

registration quantified incentive points AI-powered intelligent review and one-click report representing a

export significantly enhancing the efficiency of evaluation and implementation of lean year-on-year increase

improvement proposals.of 29.23%

compared to 2024.In 2025 the system recorded 51 offline proposals and accumulated 21232

proposal points continuously empowering a company-wide culture of improvement

through digital technologies.At the capability development level the Company has systematically organized lean skills focusing on 17 core lean tools for specialized training cultivating an internal team of lean experts to provide talent support for the

effective implementation of lean management. Meanwhile the Company has officially launched the Gold Standard Team Leader Program continuously driving improvements in overall factory production and operations performance.Gold Standard Team Leader Training and Certification: Strengthening the

Foundation of Lean Talent

In 2025 the Company launched the Gold Standard Team Leader Development Program simultaneously across all

manufacturing bases further enhancing team leaders' capabilities in on-site management stable production

and continuous improvement.The program included 14 training modules focused on core competencies such as lean principles

standardized work communication skills line balancing management walkthroughs Job Instruction

(JI)/Job Relations (JR) methods and QCC improvement activities with over 2800 training participations

in total. Based on training participation and examination results the Company conducted a comprehensive

certification process successfully cultivating and certifying 267 team leaders during the year.INTCO RECYCLING-2025 ESG REPORT INTCO / 37Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

DEEPENING INTELLIGENT

MANUFACTURING

Workshop MES System

Information Automation Launched and improved the MES systems across multiple production

workshops enabling end-to-end digital management including production

The Company deepened the construction of information automation planning distrilpution progress tracking and labor efficiency data statistics.across the entire production and operation process focusing on core Integrated with equipment to automatically calculate materialconsumption

areas such as production scheduling collaboration and quality traceability enhancing production coordination efficiency andI raw material utilization.to carry out intelligent upgrading. By optimizing the on-site MES system Production Management Dashboard

integrating data from multiple platforms and building a digital dashboard

for procurement and materials the Company ensures efficient connectivity Monitored production line density and capacity in real ttime via the Feishu

of production scheduling collaboration information. Meanwhile relying platform. Predefined production milestones trigger advance alerts to relevant

on a full-process information system the Company constructed a quality personnel effectively reducing production delays.traceable control system from raw materials to finished products Procurement Process Optimization

empowering the production and operation to improve quality and

efficiency through data-driven approaches. Established a procurement reminder workflow on the Feishuplatform to prompt

procurement staff to verify material lists and place orders promptly significantly

reducing the occurrence of missed orders.Production Efficiency Enhancement

The Company has deployed AI technologies across its entire production process systematically enhancing production

efficiency and quality control capabilities through digitalization.Utilizes AI scheduling algorithms to enable intelligent order forecasting and

AI-powered Production planning integrating data across sales procurement production and logistics. This

Scheduling Tool ensures real-time information synchronization and efficient communication across all

stages.Implements an AI vision-based color sorting system that leverages high-speed visual

AI Vision Inspection recognition to accurately identify and remove impurities within milliseconds achieving a

System sorting accuracy of 99.9%. Seamlessly integrated with automated conveyor lines it

enables unmanned operations and increases sorting efficiency by 40%.Introduces the "Process Assistant" a tool that consolidates production knowledge

AI Process Assistant into a database providing frontline workers with instant technical support. This reduces delays caused by information retrieval and ensures continuous efficient

production operations.INTCO RECYCLING-2025 ESG REPORT INTCO / 38Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

Equipment Automation PE Workshop Wood-Plastic Composite Production Automation Project

The Company has implemented equipment automation upgrades across various production stages

enhancing production automation through intelligent logistics layout equipment iteration in The Company actively promoted the green and intelligent upgrading of the PE wood-plastic

composite (WPC) production process by implementing the PE WPC automation project. Focusing

production processes and the application of smart machinery. Through systematic automation on the professional and intelligent production line transformation for board and profile products

improvements the Company aims to minimize manual intervention and operational errors driving the project efficiently adapted to the post-processing requirements of various PE WPC products.production operations toward higher efficiency precision and safety thus establishing a solid Integrating multiple advanced precision equipments with a supporting central control system the

equipment foundation for lean manufacturing. project achieved intelligent collaboration and unmanned operation in each production process

effectively improving production efficiency reducing labor costs and driving the Company’s

production to enhance quality and efficiency.Integrated Intelligent Material Handling System Upgrade in Workshops

Automation Equipment Empowers Process Upgrading

In 2025 the Company promoted automation and intelligent upgrading throughout the entire production process. Focusing on three

major directions: R&D of intelligent equipment transformation of core production lines and optimization of key processes the Company

achieved a lean upgrading of its production model from three dimensions: labor efficiency improvement cost optimization and quality

assurance further consolidating the foundation of digital production.Integrated Printing & Cutting Machine

Independently developed integrated equipment combining printing and

cutting processes. Automatic cutting and unloading are realized

immediately after printing. Upon full implementation staffing in relevant

posts has been reduced by 30% effectively boosting production efficiency

in the cutting process.Automation Upgrading of Labeling Process

The automatic label placing machine centered on a four-axis robotic arm has

been implemented integrating high-precision motion control with flexible

pick-and-place technology to achieve automatic label retrieval intelligent

positioning and stable application thereby improving labeling efficiency

consistency and overall production standardization.In 2025 building upon the existing Rail Guided Vehicle (RGV) intelligent

conveying platform on production lines the Company further upgraded its Full-Automatic Laminating Line

intelligent transportation system by introducing Automated Guided Vehicle

(AGV) based material handling systems in workshops such as extrusion and The full-automatic laminating line was put into

material mixing. This system enabled data interoperability and collaborative operation. Supported by six closed-loop processes and intelligent configuration it has increased

operations with RGVs through intelligent scheduling forming an integrated production capacity by 50% cut operating

intelligent material handling network. It automatically handled tasks such headcount by 60% and raised labor efficiency by

as order dispatching route navigation material loading and replenishment 275% while improving processing accuracy and

based on production line requirements achieving full automation of raw production stability.material transportation. This significantly reduced labor intensity and

safety risks while improving the stability and accuracy of material delivery

ensuring stable and safe production operations.INTCO RECYCLING-2025 ESG REPORT INTCO / 39Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

PRACTICING GREEN

MANUFACTURING CONSOLIDATING ENVIRONMENTAL COMPLIANCE

The Company strictly abides by the Environmental Protection Law of the People's Republic of China the Energy Conservation Law of the People's Republic

The Company has always adhered to green manufactur- of China the Water Pollution Prevention and Control Law of the People's Republic of China and other relevant laws and regulations and continuously

ing committed to reducing carbon emissions and improves the development of its environmental management system. In 2025 the Company formulated the Environmental Management Policy which

clarifies requirements including environmental protection target responsibilities construction project management environmental protection facility

resource consumption of products improving resource operation environmental incident emergency response environmental training rewards and penalties assessment. It regulates the management of

utilization efficiency and building an efficient clean and “three wastes” hazardous waste and waste hazardous chemicals strengthens the control of raw material loading unloading and leakage implements

low-carbon green production and operation model. It environmental governance and risk prevention responsibilities and ensures the green and compliant operation of the enterprise.has thoroughly implemented the 3R principles (Reduce The Company has established and improved its environmental management organizational structure. The Board of Directors as the highest

Reuse Recycle) addressed climate change challenges decision-making body for environmental management policies bears ultimate oversight responsibility for the implementation of environmental management

through technological innovation and continuously strategies and improvement of environmental performance regularly evaluates environmental management effectiveness and ensures the achievement

of corporate environmental objectives. Meanwhile the Company has set up an Environment Health and Safety (EHS) Committee led by the General

enhanced environmental management. Manager with members including heads of all business divisions and core departments to coordinate the planning operation and continuous optimization of

the environmental management system. The Company abides by national and local ecological and environmental laws and regulations and adheres to

high standards in environmental protection and ecological management. In the past 4 years there have been no instances of significant administrative

penalties due to violations of environmental or ecological protection regulations.Key Performance

As of the end of the reporting period

85.71% of INTCO Recycling's manufacturing facilities have obtained ISO 14001 environmental management system certification.

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STRICT CONTROL OF POLLUTION EMISSIONS VOCs Treatment for PET Felt Production Line

Waste Gas Discharge The Company actively develops green production lines with ultra-low emissions adhering to the clean production

The Company has formulated the Waste Gas Absorption System Operating Procedures to regulate the concept of combining source prevention and end-of-pipe treatment. It has innovatively adopted the synergistic

treatment of waste gas generated in the production process and strictly ensure that waste gas is treatment technology of "high-voltage electrostatic precipitation + two-stage activated carbon adsorption"

discharged up to standard. During the loading and unloading of raw materials and products automated which stably controls the VOCs emission concentration of the acoustic cotton production line to < 5mg/m3 far

enclosed loading and unloading facilities are adopted to reduce fugitive waste gas emissions at the source. exceeding stringent national and local emission standards effectively reducing environmental impact. Meanwhile

Waste gas from various exhaust outlets of production equipment is fully collected and effectively treated the production line is equipped with intelligent fan variable-frequency and energy management systems that

through combined processes such as recycling caustic scrubbing absorption and adsorption so as to dynamically optimize energy consumption reduce greenhouse gas emissions and enhance equipment resource

ensure stable and compliant discharge of waste gas. The Company regularly entrusts qualified third-party efficiency through data-driven predictive maintenance.professional institutions to conduct environmental impact assessments. Through scientific evaluation and

systematic analysis it accurately identifies environmental risk points and continuously optimizes waste gas

treatment and environmental protection schemes. Meanwhile the Company actively promotes the

construction of online VOCs monitoring facilities carrying out real-time monitoring and dynamic control

over key parameters of waste gas emissions. Digital means are adopted to improve the accuracy of waste

gas emission supervision realizing transparent standardized and long-term environmental management.关键绩效

Waste gas emission

Nitrogen Oxides (NOx)

0tons

Sulfur Oxides (SOx)

0tons

VOCs

8.84tons

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Waste Discharge Malaysia Base Participates in DOE Hazardous Waste

The Company strictly abides by the Law of the People's Republic Management Training

of China on the Prevention and Control of Environmental

In February 2025 employees of the Company’s Malaysia base attended a

Pollution by Solid Wastes and other relevant laws and regulations. special training session for the Certified Practitioner in Solid Waste Management

It has established and continuously improved its waste (CePSWaM) organized by the Department of Environment (DOE) of Malaysia.management system standardized the control of various The training covered relevant regulatory requirements and practical specifications

waste types in classification storage transfer and disposal including hazardous waste identification and classification standardized

and achieved compliant whole-process control of waste and management of temporary storage areas record keeping full-process

traceability and legal transfer and disposal. Participants comprehensively

closed-loop management of environmental risks. studied key control points throughout the hazardous waste management

In accordance with relevant national standards the Company process and have fully applied this knowledge to standardize on-site hazardous

has constructed standardized temporary solid waste storage waste management practices and improve record documentation at the site.This has further enhanced the site's compliance with hazardous waste regulations

sites within its production areas equipped with anti-seepage effectively reduced environmental compliance risks and promoted continuous

enclosed and odor control facilities to prevent secondary improvement in environmental management.pollution from solid waste storage at the source. Meanwhile

the Company rigorously enforces management standards for Closed-Loop Recycling of Waste Frames to Achieve

timely removal and compliant disposal ensuring a 100% safe Circular Resource Reuse

disposal rate for both industrial solid waste and hazardous

waste. INTCO Recycling actively implements the concept of circular economy development by establishing a

production waste recovery and utilization system. The Company carried out closed-loop recycling

For general industrial solid waste the Company has and reuse of waste materials generated during production such as PS waste frames.established an efficient recycling system to promote the

Through multiple professional processing procedures production waste is converted into

internal circular reuse of such waste. For portions that cannot high-quality recycled pellets realizing efficient circular reuse of resources.be directly recycled the Company transports them to

designated compliant disposal sites in strict accordance with

relevant regulations for centralized and standardized In 2025 the Company cumulatively recycled approximately 9764 tons of waste

treatment maximizing the resource utilization rate of solid frame strips and related materials with all produced recycled pellets reused in the manufacturing

waste. process effectively reducing resource consumption and waste emissions.For hazardous waste the Company carries out classification

identification collection and management in strict accordance

with the National Catalogue of Hazardous Waste. It also Key Performance

entrusts qualified third-party institutions to conduct Total non-hazardous

standardized disposal of hazardous waste. The Company also Waste Non-hazardous waste waste generated Non-hazardous waste Total hazardous waste

implements targeted measures such as source material substi- recycled/reused

tution to effectively reduce the total generation of hazardous 11700.93tons 9895.55 treated1573.38tons generated698.28tonswaste and minimize its potential impact on the surrounding tons

ecological environment.INTCO RECYCLING-2025 ESG REPORT INTCO / 42Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

Wastewater Discharge Intelligent Upgrade of Wastewater Treatment Plant at Anhui Base

The Company actively implements scientific and rational wastewater

management optimizes water resource allocation plans based on In 2025 INTCO Recycling’s Anhui Base completed the intelligent upgrading of its wastewater treatment station. It fully implemented automatic data recording

actual production and operation and effectively ensures the and a full-process automated control system realizing real-time monitoring storage and traceability of key indicators including water quality flow rate and

sustainable supply and efficient utilization of water resources. For equipment operation. This has replaced traditional manual ledgers ensuring stable compliance and efficient control throughout the entire wastewater

treatment process.wastewater pollutants discharged during the rainy season the

Company strictly implements rain-sewage diversion management In addition the filter press equipped in the wastewater treatment system adopts advanced solid-liquid separation technology which can precisely control the

clarifies disposal procedures and division of responsibilities and moisture content of treated sludge at 50% to 60%. This significantly reduces sludge volume and disposal costs further improving the wastewater treatment

ensures such wastewater is effectively treated through dedicated efficiency of the base.treatment facilities and discharged in compliance with standards

after testing so as to prevent pollution to the surrounding water

environment.For waste acid waste alkali various residual liquids and organic

solvents generated in the production process and equipment

maintenance the Company establishes special ledgers for

full-process traceability and gives priority to recycling such

materials back into production. Portions that cannot be directly

recycled are professionally treated to meet relevant standards and

then uniformly sold to qualified third-party entities for standardized

disposal. Meanwhile throughout the entire equipment maintenance

process the Company centrally collects generated wastewater

utilizing dedicated collection devices and treatment facilities

standardizing disposal procedures strictly preventing leaks of

various pollutants that could cause secondary contamination and

fulfilling comprehensive control responsibilities for wastewater

and associated pollutants across the entire process.Key Performance

Wastewater Discharge

COD BOD Ammonia Nitrogen

0tons 0tons 0tons

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Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

RESPONDING TO CLIMATE Climate Governance

CHANGE The Company attaches great importance to climate-related issues and has established a top-down climate governance structure. It has incorporated climate management into its overall enterprise risk management framework and formulated

corresponding control measures. Climate-related performance requirements have also been incorporated into the annual

Adhering to the concept of green and low-carbon development the Company fulfills its individual performance assessments of relevant senior executives production heads and the EHS Department to

corporate environmental responsibilities and builds a sustainable green development promote the effective implementation of relevant work through remuneration-linked incentives.model focusing on three dimensions: climate governance resource efficiency optimization

and green operations.INTCO Recycling Climate Governance Structure

CLIMATE RISK GOVERNANCE

Board of Directors

Responsible for reviewing and making decisions on climate change-related

matters including climate strategy risk management and oversight of climate

response progress.Strategy and ESG Committee of the

Board of Directors

Responsible for identifying analyzing and assessing

climate change impacts under the supervision of the Board

of Directors formulating climate response strategies and

reporting to the Board on an annual basis.ESG Executive Team

Led by the General Manager of the Company the ESG

According to the Global Risks Report 2025 climate risks have become one of the major global Executive Working Group is responsible for coordinating

risks. Against this backdrop the Company follows the disclosure framework and recommenda- the implementation of climate-related initiatives across

tions of the Task Force on Climate-related Financial Disclosures (TCFD) and actively advances business segments reporting progress to the

Committee and providing information for

climate management across four dimensions: Governance Strategy Risk Management and decision-making.Metrics and Targets. The Company has established a closed-loop climate risk management

process of identification assessment analysis response and monitoring. The Company

carries out systematic climate impact assessments on a regular annual basis to identify Functional and Business

physical and transition risks and opportunities and formulates climate response plans based Units

on the results to strengthen its capabilities in addressing climate-related risks and capturing Implement climate change initiatives in line

climate-related opportunities. Based on the assessment conducted given the low-carbon with the Company’s climate strategy and

and environmentally friendly nature of the Company’s business no material reputational targets including energy management and

risks or market risks have been identified at present. extreme weather response and report

progress on a regular basis.INTCO RECYCLING-2025 ESG REPORT INTCO / 44Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

Identification Assessment and Response to Climate Risks and Opportunities

Physical Risk Identification & Impact Assessment List

Risk Impact Pathway Impact Time Horizon Impact Value Chain Response Measures

Typhoon events may cause damage to equipment Upstream

Typhoon facilities and buildings at production bases Production

resulting in asset impairment and increased Transportation Conduct regular assessments of climate hazard

maintenance outlays. risks and strengthen protection for vulnerable

equipment and facilities.Improve the climate risk early warning mechanism

and closely monitor weather alerts issued by

Heavy rainfall may disrupt transportation Upstream

meteorological authorities.Acute Heavy routes leading to delivery delays and affecting Production Establish emergency response plans for extreme

Rainfall Short termrevenue. Medium term Transportation

weather.Work with government authorities and business

partners to strengthen joint disaster prevention

systems.Purchase insurance for key equipment and

Extreme heat may reduce the productivity of facilities.Extreme outdoor workers affect employee health and

Heat increase expenditures on heatstroke prevention

Production

supplies and high-temperature allowances.Seawater intrusion and flooding may impact production Conduct comprehensive analyses of the

plants in coastal areas disrupting production and

Chronic Sea

business operations. natural environmental conditions in project

Level Rise Long term Production locations and develop optimal planning Seawater corrosion may impact production equipment

and facilities influence production safety diminish solutions to enhance resilience to sea level

asset longevity and increase maintenance outlays. rise.INTCO RECYCLING-2025 ESG REPORT INTCO / 45Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

Transition Risk Identification & Impact Assessment List

Risk Impact Pathway Impact Time Horizon Impact Value Chain Response Measures

Implement energy conservation and emission

reduction initiatives and formulate targeted

The trading mechanism of China's national carbon plans based on the characteristics of each

Carbon Short term Upstream business segment.emissions trading market may expose the Company to

Market Medium termcarbon mitigation risks increasing operating and Production Continuously monitor carbon market policies

Long term

management costs. Transportation including carbon prices CCER trading rules

and carbon quotas.Formulate the Internal Carbon Pricing Policy.Policy Products exported to overseas markets (including Expand the coverage of carbon footprint

Risk the EU and other regions) may be subject to policy Upstream certification for the Company’s products.International Short termrequirements and restrictions related to carbon tariffs Production Monitor policy requirements related to carbon

Trade Medium termand carbon footprint which may increase R&D Transportation tariffs promptly assess export costs and adjust

expenditure for compliant production. business portfolio accordingly.Guidelines No. 14 of Shanghai Stock Exchange for

Self-Regulation of Listed Companies—Sustainability Adhere to regulatory disclosure requirements

Upstream

Disclosure Report (Trial) requires disclosure on climate change Short term identify and assess climate-related risks andRequirements Productionresponse around the dimensions of “governance Medium term opportunities and disclose relevant climateTransportation

strategy impacts risks and opportunities and metrics management measures.and targets” leading to increased compliance costs.The development of green and energy-efficient Strengthen feasibility studies on the R&D and

Technology Low-carbon Short termproduction technologies and products may result in Production application of low-carbon technologies to

Risk Technologies Medium term

increased R&D expenditures. reduce the risk of investment failure.Long term

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Opportunity Identification & Impact Assessment List

Risk Impact Pathway Impact Time Horizon Impact Value Chain Response Measures

Introduce renewable energy to effectively Clean energy development

Use of Renewable reduce greenhouse gas emissions and Medium term Production Procurement of green electricity

Energy mitigate potential future costs arising Long term Transportation

from carbon quotas and carbon pricing. Application of renewable fuels

Launch green low-carbon products to Integrate green and low-carbon principles into

Green and Low-carbon align with consumer preferences for green

Short term Upstream production technologies and product R&D.Products consumption generating substantial

Medium term Production

Collaborate with upstream and downstream partners

operating revenue. Long term Transportation to jointly develop green and low-carbon products.Leverage preferential policies from financial Short term Continue to monitor policies including the Green

Green institutions for green loans including interest Bond Principles and the Green Credit Guidelines and Medium term

Finance rate concessions guarantee exemptions and Production proactively advance green investment and financing

credit enhancements to reduce financing costs. Long term arrangements.Scenario Analysis Supporting the Green and Low-carbon Transition of a Globally Renowned Retail Enterprise

To further identify the impacts of climate change the Company conducted scenario analysis to

assess the potential effects of future climate change on its production and operations. For transi- In response to the low-carbon transition needs of a globally renowned retail chain concerning green packaging storage and logistics the

tion risks the Company selected the International Energy Agency (IEA)’s Net Zero Emissions by Company has developed high-strength recyclable paper pallets to replace the traditional “carton + wooden case” model. Meanwhile it has

2050 Scenario (NZE) Announced Pledges Scenario (APS) and Stated Policies Scenario (STEPS) for optimized packaging structures for fragile products by adopting lightweight and recyclable designs. To meet the clamp handling requirements at distribution centers the Company has collaborated with an ISTA-certified laboratory to conduct professional testing and verification.supporting

scenario analysis. The results indicate that under the low-carbon emissions scenario (i.e. NZE) the greenhouse gas emission reductions in its supply chain and driving the global retail industry toward a green low-carbon efficient and

Company may face increasing pressure for energy conservation and carbon reduction development compliant transition.which could lead to potential compliance costs for emissions and replacement costs for energy-sav- Through these optimization measures packaging

ing equipment. For physical risks the Company selected the Intergovernmental Panel on Climate waste has been reduced by approximately

Change (IPCC)’s Shared Socioeconomic Pathway (SSP1-2.6) and Shared Socioeconomic Pathway 30%. The adoption of ultra-thin stretch

(SSP5-8.5) to analyze the impacts of climate hazards. The results indicate that under the Shared

film has cut the use of virgin plastics by around

Socioeconomic Pathway (SSP5-8.5) extreme weather events become more frequent and severe

worldwide exposing the Company’s production operations assets and equipment to potential 40%.losses from climate hazards.INTCO RECYCLING-2025 ESG REPORT INTCO / 47Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

Climate Metrics and Targets

Resource Conservation Targets: 2025 Greenhouse Gas Emissions

Per-unit energy consumption target Per-ton water usage target Direct GHG emissions intensity Indirect GHG emissions intensity[ Including Scope 2.]

3% reduction compared to 2025 3% reduction compared to 2025 0.01tCO2e/ten thousand RMB 0.16tCO2e/ten thousand RMB

Product Carbon Certification

The Company is committed to reducing carbon emissions across the entire product

life cycle conducting carbon footprint verification for core products tracking

product carbon emission profiles and providing low-carbon products to society. By

the end of the Reporting Period the Company selected three product categories -

r-PS 3D wall panels r-PET acoustic panels and r-PE WPC decking - to conduct full

lifecycle carbon footprints assessments and obtain related certifications.Achieved 53.68% carbon emission

r-PS 3D wall panels reduction compared to conventional PS wall panels.Achieved 54.15% carbon emission reduction

r-PET acoustic panels compared to conventional PET acoustic panels.Achieved 21.84% carbon emission reduction

r-PE WPC decking compared to conventional PE WPC decking.产品碳足迹核查声明书

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OPTIMISING RESOURCE Energy Monitoring

EFFICIENCY The Development of Energy Management System and Digital Transformation

The Company regards resource conservation as an important strategy

for corporate development. It places great emphasis on the rational

use of resources continuously strengthens scientific management of The Company continued to upgrade its energy management system and advance digital transformation by introducing the Mogulinker Energy

energy and water consumption formulates standardized internal Management System and establishing an integrated energy monitoring platform. The platform enables real-time and accurate data collection

management systems implements measures for the efficient use of dynamic monitoring and centralized visualization of key energy sources such as water electricity and gas providing data-driven scientific

resources and leverages innovation strengths to optimize resource support for energy conservation.efficiency.Leveraging platform data analysis the Company identified opportunities for energy efficiency improvement across production processes

Energy Management developed differentiated energy conservation measures and dynamically optimized energy consumption strategies. The intelligent warning

In strict compliance with relevant laws and regulations the Company has function integrated in the system automatically triggers alarms when energy consumption indicators deviate from preset thresholds enabling

established a comprehensive energy management system standardized resource timely intervention and response. This effectively avoids equipment failures caused by abnormal energy use and ensures production continuity

use procedures actively advanced the development of the energy management and operational stability.framework and conducted regular energy audits to comprehensively identify

improvement opportunities across all aspects of energy management. To achieve

precise control over energy consumption the Company has installed electricity

meters and introduced an intelligent energy management system for real-time data

collection and monitoring abnormal energy consumption identification and

dynamic adjustment of equipment power output based on the real-time load and

process requirements of each production lines. These efforts have effectively Energy

avoided energy waste and reduced greenhouse gas emissions. In addition the

Company actively developed photovoltaic power generation projects and

continued to promote the substitution and application of clean energy upholding Direct energy consumption11259.94MWh

the concept of green operation.Indirect energy consumption115639.24MWh

Key Performance

During the reporting period Total energy consumption126899.18MWh

the Company carried out ISO 50001

Energy intensity 0.36MWh/ ten thousand RMB

energy management system

certification with certified operating

sites accounting for 16.67%.INTCO RECYCLING-2025 ESG REPORT INTCO / 49Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

Green Energy Consumption Shanghai Base Launched a BIPV Project to Advance Energy Transition Through Building Integrated Photovoltaic

The Company actively responds to the national "Dual

Carbon" strategic goals accelerates energy transition The Shanghai base has implemented a Building Integrated Photovoltaics

(BIPV) project Compared with conventional rooftop-mounted

makes full use of its premises to develop renewable photovoltaic systems BIPV deeply integrates photovoltaic power

energy projects and increases the proportion of green generation with building structures by directly incorporating photovoltaic

energy utilization. modules into factory roof structures enabling them to serve as both

building materials and power-generating units. This not only

Key Performance effectively reduces overall building operation and maintenance costs

As of the end of the reporting period but also fully utilizes existing rooftop resources without occupying

additional land achieving the integration of power generation and

the Company had cumulatively constructed building functions. Meanwhile the project delivers enhanced waterproofing

10.3 MW of photovoltaic power and wind resistance performance ensuring building safety and structural

integrity while enabling clean energy generation.generation and reduced 4928.53

tons of greenhouse gas emissions. During the reporting period the project generated 1.388 million kWh

of electricity upon commissioning achieving revenue of RMB 1.523

Photovoltaic power generation（million kWh） million and effectively reducing greenhouse gas emissions by 736.47 tons.

4.32 4.3738 9.2886 Water Resource Management

The Company continues to strengthen its water resource management system. Focusing on self-driven and innovation-driven improvement it has established

incentive mechanisms for water resource management continuously improved water metering and identified weak links in water management. In

addition the Company actively promoted advanced and high-efficiency water conservation practices replaced aging water facilities and equipment

eliminated water waste such as running overflowing dripping and leaking thereby effectively improving water use efficiency. Meanwhile the Company

has actively implemented water recycling measures to promote the efficient recycling and rational use of water resources.Water Resource

Waterworks/municipal water Water reuse Water consumption in water-stressed areas *

433285 Tons 70062 Cubic Meter 69573 Tons

2023 2024 2025 Note: 1. "Water-stressed areas" are based on "high risk" and "very high risk" areas as defined by the World Resources Institute (WRI) Aqueduct Global

Water Risk Tool; 2. Water consumption = water withdrawals - water discharges

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Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

DEEPENING GREEN Automated Glue Dispensing Process for Mirror Frames

OPERATIONS To advance low-carbon eco-friendly production the Company upgraded the

The Company remains committed to the path of green and sustainable automated glue dispensing process for mirror frames using parallel robots. The

development deeply integrating the green philosophy into its entire traditional extensive and continuous glue application was replaced with

operation process. Focusing on six areas including green production precise structured intermittent dispensing eliminating glue overflow and

green packaging green warehousing green logistics green office dripping. This has reduced the use of cleaning solvents mitigated secondary

operations and green finance the Company optimizes resource efficien- pollution from discarded wiping cloths and lowered VOC emissions at production

cy reduces environmental impact establishes a green operating system sites. Meanwhile the upgrade reduced rework and scrap caused by glue

across the entire value chain and fulfills corporate environmental overflow and improved product qualification rates. While ensuring mirror frame

responsibilities. quality the upgraded process has cut adhesive consumption by approximately

Green Production 40% reducing material consumption from the source of production and delivering coordinated improvements in environmental performance quality

The Company integrates the green and low-carbon philosophy through- and efficiency. This demonstrates the Company’s commitment to green

out the entire production process. Focusing on optimizing production production and supports the transition of production toward low-carbon and

processes and upgrading production equipment the Company continu- refined operations.ously advances green refined and intelligent transformation across

production activities. It strives to reduce resource consumption and

environmental impact at the source promoting the coordinated develop- Application of Nano-infrared Heating Technology

ment of production efficiency product quality and environmental

benefits. With concrete actions it consolidates the foundation for green

production and supports the development of a low-carbon efficient and The Company continues to advance the green and low-carbon transformation of Conventional heating tubes were replaced with

sustainable production system. production focusing on systematic energy efficiency upgrades for high-energy-consuming nano-infrared heating tubes. Leveraging their Shandong rapid temperature rise uniform heating and processes. During the year the Company prioritized heating system upgrades in the

Base precise temperature control heat loss has been injection molding and extrusion processes by scaling up the application of nano-infrared significantly reduced by 30%–50% delivering

heating technology to replace conventional heating methods thereby achieving outstanding energy conservation performance.both lower energy consumption and improved product quality supporting the green

upgrading of production operations.Infrared nano heaters were installed on frame-strip

Shanghai extrusion machines to replace conventional

Base cast-aluminum heaters achieving energy savings of approximately 5%.Lu’an Far-infrared heaters were used for heater replacements

to reduce energy waste achieving heating energy

Base saving rate of 10%.INTCO RECYCLING-2025 ESG REPORT INTCO / 51Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

Green Packagin Promotion of Recyclable Packaging

The Company focuses on source reduction and

process energy conservation pursuing recyclable and

lightweight packaging solutions. It continuously

innovates and optimizes green packaging to minimize In 2025 the Company continued to promote recyclable pallet

adverse environmental impacts and effectively packaging to replace traditional carton packaging. A total of

advances the green transformation of packaging.

171814 cartons were eliminated throughout the year

effectively reducing the generation of disposable packaging

waste and enabling the recycling of packaging resources.Packaging Materials

Total plastic reduction1056tons

Lightweight Material Upgrade

Percentage of packaging materials made from

90.37% The Company adopted 1.7S-specification materials in product packaging to replace the original 1.9S materials. By optimizing material recycled/reclaimed materials thickness to achieve weight reduction and resource conservation it cut plastic usage by 32642 kg over the year reducing raw material

consumption while maintaining packaging protection performance.Green Warehousing

The Company is committed to building an efficient low-carbon and energy-saving green warehousing management system with green principles embedded across the entire warehousing operation. Leveraging

digitalized and intelligent warehousing systems the Company precisely controls end-to-end warehousing processes to reduce inefficient operations and resource waste while intelligent operations optimize inventory

scheduling and cut warehousing energy consumption. In addition the Company has established high-bay warehouses to maximize space utilization and reduce resource loss caused by land occupation. By optimizing

item storage modes it continuously improves operation efficiency and resource utilization driving the low-carbon and green transformation of the warehousing sector.Digitalized Warehousing Intelligent Warehousing

Material requisitions via mobile terminals enable material delivery The application of semi-automated shuttles helps shorten forklift travel paths

to production lines within 2 hours. and significantly improves cargo handling efficiency.The material planning and kitting system provides visibility into The automated material replenishment system improves the efficiency of

the kitting status of scheduled production and material shortages material distribution and communication.Through automation upgrades to the hardware warehouse and label

for both warehouses and production lines.Digitalized inbound and outbound inventory management warehouse conventional shelving was replaced with fully automated high-bay

racking for centralized storage saving 2900 square meters of space.eliminates manual counting and verification. The finished goods warehouse is designed as a fully automated stacker crane

Digitalized management of arrival schedules helps prevent early

AS/RS increasing space utilization by 80% and saving 4000 square meters of

deliveries reduce inventory levels and avoid stock stagnation.space.INTCO RECYCLING-2025 ESG REPORT INTCO / 52Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

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Green Logistics

The Company has further integrated internal and external transport capacity and information resources. Guided by its digital logistics system and considering cargo

categories timeliness requirements costs and transport efficiency the Company scientifically determines optimal transport modes and plans detailed logistics routes

reducing logistics turnover frequency and inefficient losses. At the same time the Company has stepped up efforts to promote the use of clean transport fuels and

advance the transition from fuel to electricity gradually replacing traditional fuel-powered transport vehicles with new energy electric vehicles. This helps reduce carbon

emissions and exhaust pollution at the source and supports the development of an intelligent green and low-carbon modern logistics ecosystem.Multiple Bases Optimized Logistics Routes and Transport

The Digital Logistics System (TMS) Supports Green Logistics Upgrading Models to Reduce Energy Consumption and Greenhouse

Gas Emissions

In 2025 the company logistics segment advanced the digital upgrade of its logistics operations by rolling out a new-generation TMS logistics

management system. This comprehensively promoted the intelligent efficient refined and green transformation of logistics operations supporting To further embed the concept of green logistics development the Shandong Shanghai and Lu’an bases focused on optimizing

the development of a low-carbon and efficient green logistics system. transportation routes. Based on the actual needs of cargo logistics the Company integrated diversified transport resources including

The new TMS system incorporates an AI-enabled automatic container-loading calculation function which uses intelligent algorithms to accurately road rail and sea freight and upgraded the traditional single-mode transport model into a more flexible efficient multimodal

calculate loading plans reducing manual time and labor input for container loading calculations and improving loading efficiency. By combining transport improving transport efficiency conserving energy and reducing emissions. Specifically:

multiple dimensions such as cargo category and specifications weight parameters and transport requirements the system generates multiple

optimized loading plans maximizes container loading rates reduces the number of transport trips and lowers logistics energy consumption and

carbon emissions at the source. The Shandong base further optimized its sea–rail intermodal

transportation by replacing conventional fuel-powered short-haul

In addition through an EDI data interface the new system achieves seamless connectivity with the Shandong Yungang platform enabling interopera-

drayage trucks with new energy electric vehicles. In 2025 this

ble port logistics data and precise end-to-end traceability across the logistics chain. The system also incorporates a Feituo tracking module to provide

initiative cumulatively saved 28200 liters of fuel further advancing

full-process visual monitoring of cargo transportation and dynamic updates on key stages such as destination port customs clearance and cargo

the implementation of green logistics.pick-up and delivery. This enables end-to-end traceability controllability and precise optimization in cross-border logistics improves transportation

timeliness reduces inefficient turnover and lowers carbon emissions during logistics operations. The Shanghai base optimized its transport model by shifting from

road transport via Yangshan Port to water transport via Dushan

Port. In 2025 this adjustment cumulatively saved 6912 liters of

fuel effectively reducing the carbon footprint of the transportation

process.The Lu’an base actively advanced the concept of green transportation

by adopting sea–rail intermodal transport routes reducing the

energy consumption associated with conventional road transport.In 2025 this initiative cumulatively saved 62361 liters of diesel

further improving the green logistics transport system.Key Performance

In 2025 2797 containers were transported via sea–rail intermodal transport accounting

for 11.9% of total transport volume and reducing carbon emissions by 222.23 tons.INTCO RECYCLING-2025 ESG REPORT INTCO / 53Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

Green Office

The Company actively practices the concept of green development.Through a combination of measures including the use of eco-friendly

construction materials digital office practices the application of

energy-saving equipment and systems and the promotion of green

commuting it has continuously improved the green and low-carbon

operation of its office premises.In addition the Company attaches great importance

to raising energy conservation awareness among all

employees and has actively carried out a series of

Eco-friendly Applied digital office platforms and promoted digital reportingand themed training sessions covering off-peak

Achieved 100% usage of recycled building materials online meetings. Digital electricity use internal plastic bottle recycling Construction Encouraged e-invoicing and paperless processing for no-invoice water conservation and other green initiatives with

Materials across all buildings dormitories and cafeterias. scenarios enabling online process management and paperless Office a view to enhancing the green and low-carbon approval mindset and practical capabilities of all staff.Key Performance

During the reporting period

the Company conducted 29 environmental

protections training courses

covering a total of 9531

participants and

Applied LED lighting intelligent dimming systems and other

Energy-saving efficient energy-saving equipment and systems Replaced office fuel vehicles with new energy electric vehicles. achieving 100% employee

Promoted energy-saving practices encouragedemployeestoswitch Cooperated with airport buses and other public transportaticon Green

Management off power and lighting when not in use and placed energy-saving resources to reduce carbon emissions. Travel coverage.reminders next to switches.INTCO RECYCLING-2025 ESG REPORT INTCO / 54Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

Green Finance

The Company actively participates in advancing sustainable finance. In compliance with policy standards such as the Green Bond Principles and Green Credit Guidelines it has achieved cooperation agreements with

multiple financial institutions and successfully obtained qualifications as a green mark credit enterprise and green loans. Such funds have been actively channeled into green projects including environmental protection

energy conservation and consumption reduction renewable energy and pollution control effectively minimizing the ecological impact of its production and operations. Through financial support the Company empow-

ers its green and low-carbon transformation and sustainable development.At the end of the reporting period

INTCO Recycling obtained RMB 837 million credit line.INTCO RECYCLING-2025 ESG REPORT INTCO / 55Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

Intelligent Integration

Organizational Vitality

2025 Highlights

Awarded Employee satisfaction rate reached

" Forbes China Most Popular Employeramong Employees of the Year" 96.30% RMB 6777900 359520 100% training coverageinvested in employee training total training hours

Key Topics Our Actions Corresponding SDGs

Talent Attraction and Development Promoting intelligent talent management and applying AI technology to enhance recruitment efficiency and

Diversity and Equity decision-making scientificity

Employee Rights and Benefits Creating a compliant fair diverse and inclusive workplace environment and perfecting rights protection and

Occupational Health and Safety anti-discrimination systems

Perfecting comprehensive compensation and care systems balancing employee career development and well-being

Practicing safety management strengthening the safety awareness of all employees and enhancing emergency

response capabilities INTCO RECYCLING-2025 ESG REPORT INTCO / 56Promoting intelligent talent management and applying AI technology to enhance recruitment efficiency and

decision-making scientificity

Creating a compliant fair diverse and inclusive workplace environment and perfecting rights protection and

anti-discrimination systems

Perfecting comprehensive compensation and care systems balancing employee career development and well-being

Practicing safety management strengthening the safety awareness of all employees and enhancing emergency

response capabilities

Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

EMPOWERING ACTIVATING TALENT VALUE

EMPLOYEE GROWTH Smart Talent Management

As a high-tech manufacturer of resource recycling INTCO Recycling's business covers

more than 130 countries and regions continuously deepening its global layout. Facing

INTCO Recycling has always regarded talent as the core large-scale talent needs across multiple bases professions and regions the Company

driving force for its sustainabledevelopment. Upholding the has continuously increased its investment in digitalization and intelligence in recent

people-oriented philosophy and centering on unlocking the years introducing AI technology into key recruitment processes to accelerate the

value of talent the Company has established a comprehensive

construction of a talent management system in the smart era.In 2025 the Company

empowerment system. By building a high-performance and

talent-dense organization it stimulates innovation vitality and officially launched the AI recruitment innovation strategy focusing on marketing

realizes the common growth of employees and the enterprise. technical functional management trainee and production positions to develop a

new intelligent recruitment system through digitalized and systematic approaches.Talent Recruitment

INTCO Recycling launched the AI resume screening project to improve recruitment

AI Resume efficiency reduce recruitment costs and optimize the enterprise's talent resource

Screening

management level. The project focuses on building two core systems:

Key Performance

Talent Pool Precise Matching System: Overseas Resume Automated Processing System:

Relying on AI technologies such as natural language Achieving automatic downloading of overseas resumes AI Recruitment efficiency increased by over 60%

understanding and intelligent search engines to accurately translation for minor languages such as Vietnamese and

talent needs and deeply match candidates. Indonesian and synchronously uploading them back to Recruitment costs reduced by 20-30%

Feishu Recruitment.AI INTCO Recycling built an AI interview system tailored to its own needs assisting interviewers in asking questions efficiently and advancing the

Interview interview process achieving a scientific and objective assessment of candidates from multiple dimensions such as talent profiles professional

capabilities and comprehensive qualities.Core capabilities: Equipped with functions such as multi-round follow-upquestioning scenario simulation and practical

programming tests for technicalroles. It can handle tens of thousands of parallel interviews in a single day meetingthe

large-scale recruitment needs of multiple bases and positions.System integration: Directly connected with Feishu Recruitment to form a digital closed loop allowing candidates to

interview flexibly 24 hours a day.Application value: AI reports help interviewers make precise decisions and expandthe boundaries of HR's work capabilities.With its outstanding practices in intelligent humanized and efficient recruitmentINTCO Recycling was awarded the "2025NFuture AI Recruitment ExcellenceAward” fully reflecting the Company's forward-looking layout in talent managementin

the digital era.INTCO RECYCLING-2025 ESG REPORT INTCO / 57Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

2025 EMPLOYER HONORS OVERVIEW

China Most Popular Employer "Benevolent Workplace"

among Employees of the Year List Honor

Forbes Bloomberg Green

Shandong Extraordinary NFuture AI Recruitment

Employer of the Year Excellence Award Best Talent Attraction Unit

Liepin Nowcoder Anhui University

INTCO RECYCLING-2025 ESG REPORT INTCO / 58Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

Optimizing Compensation and Benefits Upgrading Performance Appraisal

In 2025 INTCO Recycling deepened the construction of its human resources management system

The Company actively responds to international human rights frameworks including the Constitution of the International Labor Organization and the Elimination of using performance reform and talent development as the core drivers. The Company comprehen?

Discrimination in Respect of Employment and Occupation and strictly complies with the Labor Law of the People's Republic of China the Company Law of the People's Republic of sively promoted the digitalization of performance appraisal relying on the Feishu platform to

China and other applicable laws and regulations in regions where it operates. It formulated andissued the Labor Policy clarifying requirements regarding implement the KPI evaluation system and build a scientific and systematic performance manage?

labor remuneration overtime management maximum working hours equal remuneration for men and women and the shortest notice period for layoffs ment model.and terminations. This policy applies to all employees of the Company and its subsidiaries as well as suppliers contractors and other partners who have The Company established a systematic performance appraisal system closely linking departmental

business cooperation with the Company. objectives with individual performance and implementing scientific weight distribution. We practice

agile management concepts and establish a dynamic monthly indicator mechanism supporting

Meanwhile the Company continuously increases resource investment to build a comprehensive multi-level compensation system covering compensation employees to flexibly set objectives based on phased priorities; through regular communication

guarantees statutory rights life support humanistic care long-term development and risk protection. We are committed to building a solid foundation for continuous feedback and periodic adjustments we strengthen process management and improve

employees' material life and rights protection erecting a barrier for career development and risk protection and effectively enhancing employees' sense of assessment accuracy and recognition. In addition the Company regularly conducts multidimension

belonging well-being and professional identity. al 360 evaluations to achieve a comprehensive and multidimensional assessment of employee

performance.Remuneration Guarantee 2025 Restricted Stock Incentive Plan To establish a long-term incentive mechanism

attract and retain outstanding talent and

The Company strictly adheres to the Remunera- Granted 7.37 million shares enhance motivation thereby closely aligning

tion Management System provides market-com? 607 the interests of shareholders the Company petitive remuneration ensures the remunera? Granted to people and its core team theCompany implemented a

tion level is no lower than the minimum wage 15.36% "Restricted Stock Incentive Plan" based on the standard at the Company's domicile or the Accounting for of the Company's principle of commensurate rewards and

place of performance of the labor contract total employees at the end of the previous year contributions.and pays overtime.Statutory Benefits Guarantee Living Support

Strictly complies with national statutory Provides diversified living allowances

standards to safeguard employees' right Optimizing Compensation including free shuttle buses meal

to rest; and Benefits allowances housing allowances etc.;

Provides five social insurances and the Offers star-rated apartment

housing provident fund expanding accommodation;

employees' social security coverage;

Leave Management Special Benefits

Strictly implements all national statutory leave

entitlements. The Company uniformly conducts Holiday benefits monthly birthday

the paid annual leave system. Employees may parties Saturday afternoon tea regular

check the balance of annual leave parental health check-ups annual domestic and

leave maternity leave marriage leave etc. via overseas travel and other initiatives.Feishu to make reasonable arrangements and

take all entitled leave;

INTCO RECYCLING-2025 ESG REPORT INTCO / 59Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

MULTIDIMENSIONAL TALENT

To help new employees quickly adapt to their positions and integrate into the corporate culture

DEVELOPMENT PLATFORM the Company has established a one-on-one exclusive mentorship mechanism. Experienced

senior employees act as mentors providing precise assistance in work guidance skill transfer and

Employee Training System cultural integration helping new employees quickly familiarize themselves with job responsibilities

enhance professional capabilities and merge into the team atmosphere effectively solidifying the

foundation for talent development.Onboarding &

Integration Training

Focuses on corporate culture

1 inheritance compliance guideline

dissemination and job safety

specifications to help new hires

quickly establish a sense of

identity

Job Skills Training

The INTCO Academy online platform provides employees with

Centers on core business

p ro ce s s e s o n - t h e - j o b 2 comprehensive and diversified courses covering everything from

practical skills and digital tool onboarding to subsequent career development with the system

application to consolidate core

job competencies comprehensively covering core categories such as leadership

training cultural education training and digital transformation

Management training.Capability Training

Focuses on strategic thinking

3 development team empowerment methodologies and organizational

collaboration capabilities to drive

managers' transformation from

"business executors" to "team leaders"

Total Employee Training Investment Total Employee Training Hours (h) Average Training Hours per Employee (h)

Professional (RMB ten thousand)

Development Training 341.26 625.32 677.79 206352 263871 359520 Tracks cutting-edge industry 58.35 66.79 67.54

technologies market trends 4

and innovative methodologies

to drive iterative upgrading of

professional capabilities

202320242025202320242025202320242025

INTCO RECYCLING-2025 ESG REPORT INTCO / 60Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

AI Capability Building

In 2025 to ensure the safe standardized and orderly implementation of AI technology the Company continued to strengthen internal capacity building regularly conducting employee skill training and safety awareness enhancement activities to help all

employees efficiently adapt to AI office scenarios.In 2025 we organized a total of 20 AI-related training sessions including 15 internal specialized training sessions and 5 external expert training sessions achieving full-level coverage from frontline workers to management.Efficiency Pioneer AI+ Competition Key Performance

The Company conducts specialized training on AI The Company invites external supplier trainers and industry Coverage: The entire Group

knowledge and skills for all employees systematically experts to conduct special AI training explaining the The Company in collaboration with Feishu

teaching practical methods and operational techniques to practical application of mainstream AI tools and sharing launched the five-month "Efficiency Number of applicants: 758

improve daily work efficiency. The training content covers cutting-edge technological trends and safety risk preven Pioneer AI+ Competition" in mid-June

Types of organized courses: 3

core modules such as the efficient use of AI software tion cases. Through precisespecial training we broaden focusing on the practical application of Number of training sessions

application skills of large language models AI-empow employees' horizons strengthen their understanding of AI Feishu's AI functions aiming to enhance

ered applications of multi-dimensional tables and usage application trends and safety management points and the AI literacy of all employees and carried out: 7

methods of knowledge Q&A tools simultaneously sharing promote the integration of advanced concepts into the stimulate innovative potential. Number of high-quality solutions

practical cases of AI applied to business process optimiza Company's AI R&D and management practices.produced: 25

tion. Through combining theoretical instruction and

practical exercises it helps employees master the safe Training

efficient and standardized usage methods of AI tools in

their daily work.Internal External

Efficiency Pioneer AI+ Competition

INTCO RECYCLING-2025 ESG REPORT INTCO / 61Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

CREATING A FULFILLING

WORKPLACE Key Performance

In 2025

INTCO Recycling is committed to building a quality workplace improving mechanisms to protect employee rights and The Company recruited 204

enhance well-being. Through various initiatives it attracts and retains top talent optimizes organizational ecology to INTCO Young talents

unlock employee potential and vitality achieves shared growth between employees and the enterprise and injects Conducted internal competitions

sustained momentum into its long-term strategic development.for 124 positions

PRECISE TALENT ATTRACTION AND RETENTION Appointed and promoted 101

management personnel

Talent Acquisition Management

INTCO Recycling strictly complies with various laws and regulations in regions where it operates and has developed a Human Resources Manage- In 2025 the "INTCO Young Program" has been continuously advanced. The "INTCO Young Program" is a comprehensive

ment Policy to ensure that all recruitment processes are lawful compliant and fair providing equal employment opportunities to all candidates. development program tailored by INTCO for fresh graduates. Spanning three years the program consists of three

In recruitment and employment-related policies the Company clearly stipulates that employees will not face discrimination or differential phases: integration and learning departmental professional enhancement and cultivation and excellence cultivation.treatment based on factors such as gender age nationality race religious belief family status or health conditions actively upholding the Focusing on five core objectives including cultural integration and professional development the Program has

principles of diversity and inclusion throughout the talent acquisition process adhering to the principle of fair employment and demonstrat? coordinated multiple stakeholders such as trainees mentors and senior management established an all-staff

ing the enterprise's humanistic responsibility. empowerment mechanism and strived to to cultivating versatile workplace talents.Regarding specialized campus recruitment training the Company officially launched the"Talent Program" this year. This program is a strategic

upgrade project in INTCO's talent acquisition tailored specifically for graduates from top global universities focusing on attracting talents in

fields such as AI computer science and equipment manufacturing. Based on a global perspective the project builds a high-growth

high-challenge and high-reward career development pathway for the selected candidates helping them accelerate their growth in key areas

such as technological innovation intelligent manufacturing and global market expansion becoming the backbone of industry development.

2025 Talent Program First Stop at Tsinghua University

INTCO Recycling successfully held the first stop of the "Talent

Program" at Tsinghua University. The Company's founder and

chairman attended the event sharing his entrepreneurial journey with

Tsinghua students and encouraging them to seize opportunities and

dare to innovate. In the interactive session the chairman answered

students' concerns regarding global environmental trends AI-em?

powered manufacturing corporate global competition and career

development one by oneproposing that the core competitiveness of

manufacturing lies in technology and talent. As the landmark first

stop of the "Talent Program" this event used a top university as a

fulcrum opening a new chapter for INTCO Recycling to precisely

attract and cultivate leading industry talents.INTCO RECYCLING-2025 ESG REPORT INTCO / 62Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

2025 Employee

Composition

By Gender By Nationality By Age By Position Level By Employment Type

Domestic (including Hong 30 and Below

Female Others Kong Macau and Taiwan) 50 and Above

Management-male Management-female

43.96%1.33%

42.27%

64.06% 6.44% 1.88% 1.73%Malaysia

2.89%

Male Vietnam Full-time

56.04% 31.71% 31 to 50 Non-management 100%

51.29%96.39%

2025 New Hire

Composition

By Gender By Nationality By Age By Position Level

Malaysia Others 31 to 50 50 and Above Management Non-management

Male Female

981900942572

2476

1497

Vietnam

1096 China

1292 30 and Below1479

INTCO RECYCLING-2025 ESG REPORT INTCO / 63Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

Employee Turnover Management SAFEGUARDING RIGHTS

Key Performance

INTCO Recycling highly values employee turnover management viewing talent AND INTERESTS

retention as a crucial part of corporate talent development. Centered on the core

goal of stabilizing the workforce the Company actively listens to employee appeals As of the end of the reporting period Human Rights Management

closely monitors employees' work experiences and career development needs

The Company's total employee turnover rate was 18.49%

responds to and resolves employee concerns in a timely manner continuously INTCO Recycling actively aligns with international human rights frameworks including the Constitution of the International Labor

optimizes the employee work experience and takes multiple measures to solidify The voluntary employee turnover rate was 18.49% Organizationthe Universal Declaration of Human Rightsand strictly complies with the Labor Law of the People's Republic of China

the foundation of talent retention. the Law of the People's Republic of China on the Protection of Minors and other laws and regulations in regionswhere it operates

continuously improving internal policies such as the Human Rights Policy and the Prohibition of Forced Labor Control Procedure.The Company's human rights policy applies toall employees of the Company and its subsidiaries as well as all external parties

Employee Turnover in 2025 who havebusiness relationships with the Companyexplicitly prohibiting human trafficking forced laborchild labor and violence

and harassment.By Gender

Male Female

17.87%19.37%

By Age

To systematically identify and address human rights issues that may arise during operations ensuring the rights of stakeholders

30 and Below 31 to 50 50 and Above

30- 31-50 50+ such as employees communities and suppliers are respected and protected the Company has developed a Human Rights Due

18.41% 18.22% 21.51% Diligence Process conducting due diligence through four steps: identification assessment disposal and tracking. Additionally

the Company places importance on the human rights policies of suppliers and partners regularly conducting human rights

assessments for key suppliers and requiring them to adhere to human rights standards consistent with the Company's to jointly

By Nationality foster a safe and equitable workplace.China Vietnam Malaysia Others The Company maintains a zero-tolerance policy toward any human rights violations with disciplinary actions clearly defined in

15.92% 22.96% 29.93% 17.05% the Employee Handbook. The Company respects and upholds employees’ rights to freedom of association and collective

bargaining. By the end of the reporting period there were no incidents of child labor forced labor or significant labor disputes

reported.By Position

Level Key Performance

Management Non-management

8.20% 18.80% The collective agreement signing rate reached 100%.

INTCO RECYCLING-2025 ESG REPORT INTCO / 64Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

Anti-Discrimination and Harassment Responsible Sourcing Advisory Program

The Company firmly opposes any form of discrimination and harassment maintaining a zero-tolerance policy. We clearly In 2025 the Company successfully participated in and implemented the Responsible Sourcing Advisory Program (RSAP) organized

define disciplinary rules and response protocols through the Employee Handbook the Anti-Discrimination Control Procedure the by an international client. Relying on this project the Company has formed scientific and systematic management results in

Anti- Harassment Control Procedure and the Sexual Harassment Protection Policy. Depending on the type and severity of discrimi? protecting the legitimate rights and interests of employees demonstrating its firm commitment to safeguarding employee rights

nation and harassment the Company will take measures such as issuing warnings adjusting job positions or lawfully providing a safe and healthy working environment complying with local regulations and international social responsibility

terminating labor contracts. standards and building an internationally trusted partnership.Various production bases of

Corporate Social Responsibility Occupational Health & Safety Management System

the Company actively promote Team Capability Enhancement& Labor Law Compliance Development

Conduct specialized training for key

international ethics and social Systematically refine and optimize labor Continuously improve safety conditions in Standardize various processes and positions including HR EHS compliance

policies and factory rules standardize working production areas establish and regularly drill

responsibility certifications fire protection and emergency evacuation compliance documents formulate and production management strengthen hour salary and welfare management improve time-limited improvement plans and internal self-evaluation and independent

strictly following international employee complaint and feedback channels

mechanisms strengthen equipment safety and

labor protection supplies management and follow up on rectification progress; improvement capabilities and promote and ensure the completeness and transparency

conduct regular safety training for all the integration of CSR requirements into

standards and client require? of personnel files and compliance documents; employees; daily production management.ments and fully cooperating

with full-process audits by

third-party organizations

and clients practicing respon?

sibility through transparent

and standardized operations.To better implement the Company's policies regarding human rights anti-discrimination and anti-harassment in terms of internal

promotion the Company conducts specialized training on human rights protection anti-discrimination and anti-harassment for

all employees to further strengthen compliance awareness and responsibility awareness and clarify behavioral baselines.Regarding reporting channels the Company established a dedicated whistleblower email and hotline setting up online and

The Vietnam and Lu'an bases passed the BSCI social responsibility audit of the European Foreign Trade Associa?

offline

tion with the Vietnam base upgraded to a B rating. The Vietnam base also passed the SMETA ethical trade audit

anonymous reporting channels establishing tiered reporting rapid response and standardized handling procedures and

initiated by Sedex. These two authoritative international audit certifications fully prove the Company's compre?

regularly disclosing the receipt and handling of reports. Simultaneously the Company continuously improves whistleblower

hensive strength in social responsibility management labor rights protection and supply chain compliance

construction. Key Performance

During the reporting period the Company received no reports of employee discrimination or harassment.INTCO RECYCLING-2025 ESG REPORT INTCO / 65Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

Employee Communication

To achieve comprehensive multi-level employee communication and rights protection DIVERSITY EQUITY AND INCLUSION

INTCO Recycling has built a multi-dimensional internal communication mechanism and

a humanistic care system. INTCO Recycling upholds the workplace philosophy of diversity and inclusion cultivating humanistic construc?

tion centered on equality and respect. We respect the diverse national and ethnic backgrounds of our global

employees embrace varied lifestyles and religious beliefs actively support minority groups such as people with

disabilities sincerely care for female employees and strive to build a harmonious workplace ecosystem of

In terms of regular communication INTCO Recycling has established an employee equality and mutual acceptance.communication and appeal response mechanism. Through various formats such as the

specialized collection of "Golden Ideas" the Labor Union Employee Representative DEEPENING DIVERSITY AND INCLUSION

Congress and the semi-annual employee representative meetings the Company

regularly engages in deep discussions with employee representatives on working

conditions daily demands and other issues precisely identifying employees' actual Cultural Integration

needs and promptly driving issue rectification and management optimization. INTCO Recycling's overseas bases consist of multi-national and multi-ethnic employees from China

Vietnam Malaysia India etc. The Company strictly respects their religious beliefs and cultural customs

providing universal ingredients in cafeterias to accommodate different employees' dietary needs. In

addition the Company organizes diverse collective activities to celebrate various traditional festivals

inviting employees and their families to participate putting care and warmth into practice and building an

open and interactive cultural exchange platform. Meanwhile the Company organizes multicultural inclusion

Besides the formal appeal response mechanism the Company always advocates an training guiding all employees to respect differences and learn from each other continuously fostering an

open sincere and positive colleague communication culture. By implementing equal open and inclusive workplace atmosphere.heartwarming initiatives such as "Praise Cards" it guides employees to actively

recognize and acknowledge the bright spots and value contributions of their

colleagues conveying respect and goodwill through positive reinforcement.The Company conducts an annual employee satisfac Key Performance

tion survey covering all staff following a scientifically

structured process with an indicator system covering In 2025

Party Vietnam Annual Party Trad

core dimensions such as job satisfaction sense of job 96.30% Eid al-Fitr Mini Annual e Union Congress Org of employees reported high satisfaction. atch anM ization

n & Basketb

all Friendly

o Mid-Au

purpose career well-being and work stress. Badmint tumn Festival Event

INTCO RECYCLING-2025 ESG REPORT INTCO / 66Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

Empowering People with Disabilities

Based on the actual needs of people with disabilities INTCO Recycling has built a dual?track support system of "fixed employment + centralized assisted employment" to create a diverse and inclusive employment

environment. Internally we connect with the Disabled Persons' Federation to conduct special recruitment tailoring positions for persons with disabilities; build barrier-free facilities conduct skill training and psycho?

logical counseling and comprehensively help employees with disabilities quickly integrate into the team. Externally we linked with the "Rukang Home" in Chuantai Community Linzi District launching a manual

outsourcing cooperation model enabling people with disabilities to achieve employment and increase income at home. In 2025due to its solid initiatives and outstanding contributions in the field of disability

supportINTCO Recycling was jointly awarded the title of "Advanced Collective for Assisting the Disabled in Shandong Province" by the Working Committee on People with Disabilities of the Shandong Provincial People's

Government and other departments.Key Performance

As of the end of the reporting period

The Company employed 44 people

with disabilities and 142 ethnic

minority employees.Shining “Her Power”

INTCO Recycling highly values the protection of female employees' rights and welfare care. In terms of Gender Diversity Indicator

distinctive festival activities the Company focuses on specific occasions such as Women's Day carefully Percentage in 2025 Target Percentage by 2030

planning themed activities to convey respect for female employees. In regular activities the Company

Share of women in total workforce

offers boutique courses such as flower arranging makeup yoga and dance building a high-quality 43.96% /

platform for female employees to relax interact and improve themselves. Furthermore all company Share of women in all management positions 47.92% /

bases have standardized "Mom Lounges" continuously optimizing the nursing room environment to (including junior middle and top management)

create comfortable and convenient dedicated care spaces for pregnant and breastfeeding female Share of women in top management positions 80.00% 68%

employees effectively enhancing their sense of gain happiness and belonging.

1247 1699 1500 2340 Share of women in junior management positions 46.00% 50%

Share of women in management positions in

revenue-generating functions 66.67% 68%

Share of women in STEM-related positions 34.60% 40%

2022 2023 2024 2025 *Due to a change in the statistical scope for junior female management and STEM related positions this year

the relevant proportions and targets have been adjusted accordingly.INTCO RECYCLING-2025 ESG REPORT INTCO / 67

The Number of Female EmployeesIntelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

CONVEYING ORGANIZATIONAL WARMTH

INTCO Recycling has always prioritized employee care as a cornerstone of its corporate development. Upholding a people-centric philosophy the Company focuses targeted efforts on three core dimensions: employee

welfare working conditions and family benefits. Through diverse and practical caring initiatives the Company continuously launches various employee support programs to translate humanistic care into tangible

action. By fostering and perpetuating organizational warmth the Company aims to strengthen employees’ sense of belonging and well-being and is dedicated to building a warm vibrant and fulfilling workplace.This enables the enterprise and its employees to advance hand in hand and achieve synergistic coordinated development.Employee Benefits

Work Stress Relief Mental Health Care

Provide exclusive relaxation services Invite senior psychological experts to

including massage hot spring carry out featured activities such as art

therapy bone setting and foot therapy for stress relief comprehensively

massage to effectively alleviate work and multi-dimensionally caring for

fatigue with head massage services employees' physical and mental health

covering over 500 employees

Diverse Humanistic Care

Physical Health Care Leverage traditional festivals including Spring Festival and

Dragon Boat Festival to carefully plan and launch a series

Construct supporting facilities such as of featured cultural events

gyms and health stations Regularly organize activities such as group movie screen?

Regularly host various sports events ings and afternoon tea to enrich employees' daily life

such as the "INTCO Table Tennis Tourna? Regularly arrange team building tours for employees. This

ment" and "INTCO Recycling Basketball year we organized tours to Hong Kong-Zhuhai-Macao

Tournament" to guide employees to covering over 400 person-times; and team building

enhance their physical fitness and forge activities in Huanghuaxi Yinghuashan and other

team spirit through diverse sports locations with a cumulative coverage of over 2000

activities person-times

INTCO RECYCLING-2025 ESG REPORT INTCO / 68Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

Working Conditions INTCO Recycling Smart Cafeterias Cover All Bases

In 2025 INTCO Recycling's Smart

INTCO Recycling continuously optimizes working conditions from the dual dimensions ofhumanistic care and Cafeterias system was further

hardware facilities creating a safe comfortable and convenient working environment. In terms of humanistic expanded to two overseas bases

care the Company implements a flexible work mechanism allowing employees to flexibly clock in and out achieving 100% coverage of

balancing their work pace and life needs and enhancing the flexibility and adaptability of work arrangements. production bases driving dining

For hardware facilities the Company continuously improves infrastructure construction setting up dedicated management toward digital and

employee resting areas in workshops; all bases are equipped with AED emergency facilities with professional intelligent upgrading. The system

usage training provided simultaneously building a strong defense line for employee health and safety; supports employees' independent

Meanwhile the Company further expands the layout of Smart Cafeterias comprehensively upgrading meal selection which not only

hardware facilities to enhance the employee work experience from the details. optimizes employees' dietary choices

and enhances their dining experience

but also effectively reduces food

waste deeply integrating employee

care with green operations and using

digital means to practice the concept

of resource conservation fully

demonstrating the Company's dual

Vietnam Base Smart Cafeteria emphasis on employee well-being

and sustainable development.Family Benefits

INTCO Recycling focuses on employees' family

needs building a comprehensive family benefit

system to effectively alleviate the pressure of

balancing work and family demonstrating

corporate humanistic care. In 2025 the

Company actively prepared a nursery hiring

professional external teachers to provide

teaching and self-study services covering the

care and learning needs of children across

various age groups. Regarding leave benefits

the Company strictly implements statutory

paid parental leave and offers an additional

exclusive "Mom Leave" for female employees

which is uniformly applied across the Group

solidifying family life guarantees for employees

AED Usage Training INTCO Recycling Employee Nurseryacross multiple dimensions.INTCO RECYCLING-2025 ESG REPORT INTCO / 69Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

STRENGTHENING THE

FOUNDATION OF SAFETY

2025 Safety Production Targets and Completion Status 2026 Safety Production Targets

The Company consistently prioritizes employee health and safety strictly adheres to Zero major mechanical equipment accidents Zero major mechanical equipment accidents

relevant laws and regulations such as the Law of the People's Republic of China on the

Prevention and Control of Occupational Diseases and the Work Safety Law of the People's Republic of Zero fire or explosion accidents Zero fire or explosion accidents

China. The Company has continuously improved its occupational health and safety

management system enhanced employees' safety awareness and emergency response Zero serious injury accidents Zero serious injury accidents

capabilities and built a solid line of defense for workplace safety.Zero occupational disease cases Zero occupational disease cases

SAFETY MANAGEMENT MECHANISM 100% compliance rate for safety education 100% compliance rate for safety education

100% certification rate for special operations personnel 100% certification rate for special operations personnel

The Company has established an EHS Committee led by the General Manager with safety officer representa?

tives designated by each functional department to participate in daily work. As the highest decision-making 100% rate of certified personnel on duty 100% rate of certified personnel on duty

body for the implementation of occupational health and safety policies the Board of Directors exercises Zero radiation or other accidental safety incidents Zero radiation or other accidental safety incidents

comprehensive supervision and management over the Company’s EHS management work. The EHS Committee

is responsible for organizing daily safety inspections promptly feeding back potential safety hazards and Zero environmental pollution incidents Zero environmental pollution incidents

management issues identified during inspections supervising the relevant responsible departments to Zero major environmental incidents involving contractors Zero major environmental incidents involving contractors

complete rectification within a time limit and form closed-loop management. The Committee also communi?

cates and collaborates closely with frontline employees fostering a collective commitment to safety and driving Facility and equipment integrity rate > 95% Facility and equipment integrity rate > 95%

continuous improvement and enhanced effectiveness in occupational health and safety management. Safety facility integrity rate 100% Safety facility integrity rate 100%

The Company has formulated and strictly enforces a Workplace Safety Commitment System covering all employees Zero shutdowns or business suspension penalties Zero shutdowns or business suspension penalties

clearly defining safety responsibilities and performance standards for each position thereby reinforcing safety

accountability at every level and ensuring full compliance with safety management requirements. Additionally Zero major production safety accidents with significant Zero major production safety accidents with significant

an annual safety bonus incentive mechanism has been established directly linking bonus disbursements to the direct economic losses direct economic losses

implementation of safety practices and the achievement of safety targets. This approach fully motivates *A major production safety accident with significant direct economic losses refers to a production safety accident that results in a one-time direct economic loss exceeding RMB 1 million.employees to actively and proactively participate in workplace safety ensuring orderly and standardized

advancement of the Company’s safety initiatives.In accordance with the Safety Policy and Objectives the Company scientifically establishes annual occupational

health and safety goals defining annual priorities key tasks and implementation pathways. These goals are

cascaded down to all organizational levels and individual positions with factories serving as the fundamental The Company continuously improves its occupational health and safety management system clearly prioritizes various safety action plans and

implementation units to systematically advance various safety initiatives and continuously improve occupation? closely aligns them with annual safety targets to effectively address diverse health and safety risks. For employees in special positions exposed to

al health and safety management standards. Furthermore ESG principles have been deeply integrated into the occupational hazards the Company regularly organizes targeted occupational health examinations and ensures routine health checkups for all

performance evaluation system for managerial staff significantly increasing the weight of indicators related to employees establishing comprehensive employee health records to effectively safeguard their physical well-being and life safety. The Company has

quality control safety and environmental protection. This strengthens managers’ sense of responsibility toward steadily advanced external occupational health and safety audits and certification. In 2025 50% of operational sites have obtained ISO 45001

safety management and ensures effective implementation of safety accountability across the organization. occupational health and safety management system certification and work safety standardization certification.INTCO RECYCLING-2025 ESG REPORT INTCO / 70Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

The Company places high importance on occupational health and safety risk management systematically conducting job

hazard assessments and implementing routine quarterly monitoring of hazard factors such as production equipment and Building a Solid Fire Safety Line of Defense

working environments. Multi-point monitoring devices for dust noise and hazardous gases are deployed across work areas

to enable real-time risk surveillance. Meanwhile the Company strictly enforces access control and full-process safety To effectively prevent fire incidents and reduce safety risks INTCO Recycling's

management for external contractors requiring all external personnel to sign documents including the Notice to External Shandong base has implemented multiple fire protection measures to enhance

Personnel the Construction Safety Management Agreement and the Personal Health Commitment Letter thereby strengthening emergency response speed and firefighting efficiency while strengthening

safety awareness among construction personnel and establishing a comprehensive traceable occupational health and employees' fire safety awareness and practical skills:

safety risk monitoring and control system.The Company routinely conducts hazard assessments on-site inspections and specialized equipment checks. All Professional Equipment Configuration

identified safety hazards are promptly registered classified controlled and rectified within specified timeframes with full

tracking of correction progress and follow-up verification to ensure closed-loop management of hazard remediation. The Based on production processes and material characteristics specialized foam fire trucks and foam fire suppression

Company has established a performance evaluation mechanism for hazard assessments and rectification to continuously systems have been deployed to quickly control initial fires and suppress fire spread significantly improving on-site

improve the quality of inspections and the effectiveness of corrective actions thereby solidifying its safety production firefighting and emergency response capabilities.defense line.Emergency Response Team Development

A part-time fire brigade has been established within the base with clearly defined roles and response protocols;

weekly routine drills such as hose connection equipment operation and evacuation procedures are conducted

along with regular professional training and joint exercises with local fire departments to enhance scientific rescue

capabilities.Rapid Response Mechanism

The Company has established specialized emergency response plans for accidents such as fires and chemical leaks clearly

defining emergency organizational structures response procedures handling measures and support mechanisms. All

Mini fire stations have been set up in each production workshop fully equipped with fire-fighting equipment and

employees are required to strictly follow emergency management procedures with enhanced emergency training and

emergency supplies to shorten the emergency response radius; the night duty system has been improved to achieve

drills to ensure rapid and effective responses to emergenciesthereby improving the Company's overall emergency

24-hour uninterrupted fire safety duty ensuring that emergency situations are responded to and handled in the first

response capabilities.During the reporting period the Company had no any chemical leakage incidents.place.Key Performance Work-Related Fatalities of INTCO Recycling in the Past Four Years

2022 2023 2024 2025 Digital Management Upgrade

In 2025 the Company achieved a

Number of Work-Related

100% Fatalities for Employees (Person) 0 0 0 0 In collaboration with the IT department a customized fire inspection mobile application has been independently coverage rate for

Number of Work-Related

occupational health examinations 0 0 0 0 developed on the Feishu platform enabling information-based standardized and visualized management of fire safetyFatalities for Contractors(Person)

among employees. facilities. Through online inspections real-time data upload automated alerts and closed-loop tracking the system

Number of Tier 1 Process

Safety Events per Million 0 0 0 0 ensures full traceability and verifiability of facility management continuously improving management precision.Working Hours (Case)

INTCO RECYCLING-2025 ESG REPORT INTCO / 71Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

Regular Drills Strengthen Emergency ResponseCapabilities

PROMOTING SAFETY CULTURE

The Company promotes the development of a safety culture carries out safety publicity and guidance as well as various practical

measures to improve the overall safety prevention literacy and professional emergency response capabilities of all employees.The Company regularly holds safety work meetings and organizes regular special safety training covering key areas such as

forklift operation specifications electrical safety control high-altitude operation protection and interpretation of the Law on the

Prevention and Control of Occupational Diseases ensuring the comprehensiveness and professionalism of employees' safety knowledge

and operational skills. In addition the Company strictly implements the requirements for the management of safety education

and training specifying that all new employees must complete systematic safety education and training as well as assessments

before taking up their posts ensuring that they proficiently master the safety-related knowledge and skills required for

on-the-job production and preventing various potential safety hazards in production operations from the source.In 2025 the Company continued to carry out regular thematic publicity activities such

Key Performance as Safety Month and Fire Prevention Month and regularly organized various special

emergency drills including mechanical injury fire electric shock and dust explosion.To enhance fire safety management within the facility and improve the fireemergency response system the Company regularly During the reporting period Through practical training mode it continuously improved the emergency response

conducts specialized fireemergency drills. These drills simulate scenarios such as equipment fires inproduction workshops and are

157 efficiency and sudden risk disposal capabilities of all employees. The Shanghai Base coordinated by the emergency response commandteam. They strictly follow standardized procedures including fire alert reporting the Company carried out simultaneously implemented the "Safety and Environmental Star" selection and

orderly evacuation of personnel initial fire suppression on-site safety cordon andpost-incident handling. Through realistic drills the occupational health and safety

training sessions with a total of management mechanism adopting an incentive method combining public recognition

Company further optimizes itsemergency coordination mechanisms and effectively strengthens employees' emergency response skills and cash rewards which effectively mobilized the enthusiasm of all employees to take

and sense of responsibility for fire safety. 10682 participants and a total the initiative to report potential safety hazards and implement 6S on-site management.All subsidiaries of the Company actively implement the requirements of production safety management regularly organize various 652 It further enhanced employees' sense of professional honor and corporate belonging types of safety emergency drills such as fire response hazardous chemical leakage response special equipment emergencies flood training duration of hours promoted the creation of a good atmosphere of "competing for safety environmental

and disaster prevention and electric shock first aid continuously improve the emergency plan system strengthen all employees' safety protection and tidiness" in the production workshop and laid a solid foundation for the

prevention awareness and emergency response capabilities and fully build a long-term line of defense for production safety. construction of a safety culture.INTCO RECYCLING-2025 ESG REPORT INTCO / 72Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

Intelligent Care

Harmonious Community

2025 Highlights

Charitable donations from the Company and its 2652 The total duration offoundation amounted to RMB employee activities reached Conducted 375 Organized 18 A total of 10475

2396500 participated in the 872 volunteer activities environmental participants took part in the volunteer activities hours education activities science popularization activities

Key Topics Our Actions Corresponding SDGs

Community Engagement and Development Establishing diverse characteristic philanthropicprojects around elderly care education support and

disability assistance to form a systematic philanthropy system

Conducting environmental science popularization and practical activities for youths to promote the

widespread adoption of low- carbon concepts

Focusing on rural education assistance and continuously investing in educational support actions

INTCO RECYCLING-2025 ESG REPORT INTCO / 73Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

EXPANDING THE

"INTCO Mobility Assistance Program" Elderly Care Philanthropic Practice in Baoshan Shanghai

PHILANTHROPIC NETWORK INTCO Recycling participated in the "Joyful Aging

Companion" elderly assistance project initiated by the

INTCO Recycling continues to expand a multi-collaborative philanthropic network. Leveraging the Shanghai Private Enterprise Public Welfare Foundation

INTCO Foundation and INTCO Mutual Aid Fund the Company has built a public welfare system that Alliance conducting Double Ninth Festival elderly care

"supports the society externally and cares for employees internally". Meanwhile it focuses on environ? actions. As an alliance member the INTCO Foundation

mental science popularization and green education promoting the circular economy concept among donated 100 professional wheelchairs adapted for the

campuses and communities to embody its commitment to sustainable development. elderly. These wheelchairs feature lightness stability

and ease of operation fitting the physiological charac?

INTCO FOUNDATION teristics and comfort needs of the elderly genuinely

providing travel convenience for elders with limited

Guided by the principle of "Love Goodness Truth" the INTCO Foundation adheres to the original mobility practicing corporate social responsibility

intention of aiding impoverished communities and helping social and natural harmonious through philanthropic action and conveying the

development.Sinceitsest ablishmentthe Foundation has actively responded to national calls corporate warmth of respecting and loving the elderly.focusing on areas such as community harmony and rural revitalization to conduct philanthropic

"Framing a Better Life Initiative" Linking International Children's Art Exhibitions to Practice Green Development

practicesincubating avariety of characteristic philanthropic projects.INTCO Recycling deeply linked with the "One Mountain

One Water One World" international children's art exhibi?

INTCO Mobility Framing a Better tion participating in the 2025 Beijing 798 International

Life Initiative Green Sprout InitiativeAssistance Program Children's Art Week and the Food and Agriculture Organi?

Senior care and disability Rely on the company's Public education project zation of the United Nations World Food Forum Chengdu

as s i s tance pro jec t featured eco- f r iend ly focusing on the recycling of Launch Week activities providing recycled eco-friendly

continuously providing p ro d u c t s t o s u p p o rt waste plastics plastic photo frames for mounting all exhibited artworks thereby

supporting facilities for c o m m u n i t y c a re a n d classification and effective reducing reliance on natural resources avoiding forest

elderly care and mobility various cultural activities recycl ing methods and felling and lowering carbon emissions. Meanwhile it

support deliver relevant environmental

protection courses to schools conveyed the concept of sustainable development to the

public earnestly fulfilling the ecological responsibility of a

recycling technology enterprise."Echo Project" Helping Hearing-Impaired Children

Key Performance

The INTCO Foundation donated to the "Echo Project" and helped

By the end of the reporting period the Company cumulatively conducted 375 volunteer officially launch it in Beijing benefiting 20 hearing-impaired children aged 2-7 and their impoverished families. Following

activities with 2652 employee volunteer participations totaling 872 service hours and the project's launch parent classes were held to explain the use of hearing aids and rehabilitation techniques simultaneously

hosting parent activities and public safety training for

charitable donations from the Company and its foundation reached RMB 2396500. hearing-impaired children aiding their rehabilitation and family

empowerment from multiple dimensions.INTCO RECYCLING-2025 ESG REPORT INTCO / 74Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

INTCO Recycling's Philanthropic Achievements Showcased at the 2025 China Charity Fair

As one of the 7 exhibiting representatives of the

Shanghai Private Enterprise FoundationAlliance the

INTCO Foundation participated in the 2025 China

Charity Project Exchange Exhibition. Focusing on

four major directions—disability care educational

support community welfare and sustainable

development—the Foundation systematically

displayed the results of recent philanthropic

projects and deeply exchanged and shared experi?

ences with national philanthropic organizations

industry experts and partners. This exhibition laid

the foundation for INTCO Recycling's subsequent

philanthropic project innovation and deepened

cooperation and the Company will continue to

focus on social concerns to promote the effective

implementation of philanthropic projects.INTCO RECYCLING-2025 ESG REPORT INTCO / 75Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

INTCO Labor Union's "Assistance and Education Delivery" Activity

INTCO MUTUAL AID FUND

INTCO Recycling Labor Union launched the "Assistance and Education Delivery" Glimmer

The INTCO Recycling Employee Mutual Aid Fund strictly complies with the Articles of Association of the Employee Dream-Building Education Action precisely assisting 37 disadvantaged families. The targets of

Mutual Aid Fund actively practicing the purpose of "mutual aid and relief poverty alleviation". Internally the assistance cover impoverished employees within the Company children of workers in new employ?

found provides timely and powerful assistance to employees facing unexpected emergencies major illnesses ment forms across the district and left-behind children. INTCO Recycling established a

or family hardships genuinely building a solid backing for employees' work and life effectively enhancing "One-on-One Growth Mentor" mechanism pairing corporate party members and model worker

employee belonging and corporate cohesion. Externally the found actively expands the radiation scope of representatives with assisted students providing each student with an annual grant of RMB 1000

philanthropy and social influence proactively extending a helping hand to vulnerable groups in the commu? until they reach 18 years of age. This education assistance action is centered on the core concept of

nity solidly carrying out educational assistance and other philanthropic practices extending the internal "supporting intelligence + supporting ambition" and INTCO Recycling will continue to deepen

spirit of mutual aid to the societal level and using tangible actions to give back to the community and society. educational assistance through diversified and precise measures to earnestly fulfill its corporate

social responsibility.Key Performance

By the end of the reporting period the Employee Mutual Aid Fund had disbursed nearly

*Linzi District Industrial Workforce Reform Promotion Conference & National Model Workers Inspirational Deeds Report Meeting RMB 690000 in relief funds genuinely benefiting 49 needy employee families.INTCO RECYCLING-2025 ESG REPORT INTCO / 76Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

Key Performance

PROMOTING ENVIRONMENTAL AWARENESS By the end of the reporting period:

INTCO Recycling upholds sustainable development as its core responsibility viewing the popularization of the Company organized a total of 18 environmental education activities

environmental protection concepts as an important practical direction for the enterprise and actively practicing

its green development mission. As a deep cultivator in the resource recycling field the Company proactively with a cumulative 10475 participants achieving an increase of more than 8 times

participates in various green environmental practices and focuses even more on cultivating the environmental compared with the previous year

awareness of the next generation tangibly conveying the concepts of resource circulation and low-carbon

environmental protection to consolidate the consensus and strength of society for green development. The Company was successfully selected as "Shanghai Municipal Environmental Education Base"

"Green Sprout Initiative" Enters Yunnan Schools and Hosts Badong Study Tour INTCO Recycling Supports Shanghai's Waste Sorting Promotion INTCO Recycling Plastics Circular Science Popularization Career Day

In 2025 INTCO Recycling's "Green Sprout Initiative" entered schools in Yunnan to INTCO Recycling partnered with the Shanghai High School International Division to

conduct green science popularization education sequentially visiting Fuxing No. 2 INTCO Recycling was invited to participate in Shanghai's National Urban Domestic conduct a Career Day activity helping students concretely understand professional

Complete Primary School Zhuji Town Central Complete Primary School and Kuishan Waste Sorting Promotion Week deeply engaging in the "Where Did the Recyclables concepts related to the circular economy by hosting a special lecture on plastic

Town Central Complete Primary School in Xuanwei City covering over 1200 teachers Go" sitcom showcasing its fully integrated plastic "Collection - Regeneration - Reuse" recycling combined with case studies and diagrams to deconstruct the complete

and students. INTCO Recycling hosted the opening ceremony of the Badong No. 1 industrial chain. The Company actively practices the "Replacing Wood with Plastics" plastic recycling loop. The event also organized students to visit the recycled plastic

Middle School Shanghai Public Welfare Study Tour Camp an important extension of the concept transforming waste plastics into tens of thousands of eco-friendly products finished products exhibition hall displaying products made of recycled plastics such

INTCO Foundation's "Green Sprout Initiative". The Company led students on an in-depth such as finished frames and decorative building materials intuitively presenting the as finished frames and home wall decorative building materials intuitively presenting

tour of the enterprise comprehensively demonstrating the full process of waste plastics circular reuse process of recyclables. Due to its outstanding contributions in the fields the value of resource utilization of waste plastics. This activity integrated the concept

from recycling and processing to transformation into recycled products; it offered of waste sorting and resource regeneration INTCO Recycling received honorary of sustainable development into youth education building a professional platform

characteristic handicraft courses of the Green Sprout Initiative allowing students to commendation from the "Hushang Recycling" platform. for students to explore career development directions in the environmental

create imaginative works with their own hands while gifting them recycled plastic photo protection field.frames. This activity made the concept of environmental protection tangible allowing

teenagers to intuitively feel the value of resource recycling.INTCO RECYCLING-2025 ESG REPORT INTCO / 77Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

ADVANCING RURAL REVITALIZATION Key Performance

INTCO Recycling actively practices corporate social responsibility taking rural revitalization as an important direction for philanthropic By the end of the reporting period

practices focusing precisely on the actual needs of rural areas linking across multiple dimensions such as educational support and the Company's cumulative investment in rural revitalization reached

livelihood improvement to implement pragmatic measures and promoting sustainable economic and social development while ensuring

the Company's healthy growth and continuously rewarding investors.RMB 239705 covering multiple provinces including Yunnan and Sichuan.In the future the Company will further combine its business operations to make supporting rural revitalization and consolidating and

expanding the achievements of poverty alleviation a strategic priority driving the development of distinctive rural industries through its

own business model promoting local employment and achieving the organic unity of social and economic benefits."Firefly Education Support" INTCO Recycling's Education Support in Nanjian Yunnan "Firefly Education Support" Liangshan Prefecture Yi-Road Companion Education Support Project

During the 2025 back-to-school season INTCO Recycling traveled to Nanjian Yi Autonomous County Dali Yunnan The Liangshan Yi-Road Companion education support project supported by INTCO Recycling funded 170 students from

Province to conduct an education support action. The foundation donated RMB 50000 in financial aid to local disadvantaged families throughout the year 46 of whom successfully graduated this year. The project synchronously

students to cover tuition and living expenses while also preparing a full set of back-to-school supplies such as conducted a series of activities such as monthly study meetings picture book reading and summer emotional stress

backpacks stationery and books to help assisted students start the new semester. INTCO Recycling has long upheld management camps organized family visits volunteer service practices and other assistance actions distributing reading

philanthropic concepts and deeply cultivated the field of educational support; this action is a significant practice in books to students and conducting expression and stress-resistance training accompanying multiple disadvantaged

fulfilling corporate social responsibility paying attention to rural education development and promoting educational students to achieve physical and mental growth and capability transformation escorting the growth of disadvantaged

equity. students in Liangshan with continuous support.INTCO RECYCLING-2025 ESG REPORT INTCO / 78Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

STRENGTHENING COMMUNITY PARTNERSHIPS

INTCO Recycling deeply practices the concept of community co-building actively linking governments community organizations and other multiple stakeholders to consolidate synergistic development efforts precisely

docking with community development needs and empowering community construction and enhancing community well-being throughdiverse actions."Framing a Better Life Initiative" INTCO Practices Community Responsibility INTCO Recycling Sponsors the 19th Zibo City Sports Games INTCO Recycling's Vietnam Base Participates in Thanh Ma Village Community Co-building

As a National Civilized Unit INTCO Recycling actively supports local Qixi As a naming sponsor and strategic partner INTCO Recycling sponsored INTCO Recycling's Vietnam base launched a philanthropic action target?

Festival-themed cultural activities participating in cultural heritage-re? the "INTCO Cup" 19th Zibo City Sports Games. Hosted by the Zibo Munic? ing the livelihood and educational difficulties of Thanh Ma Village in

lated activities alongside community residents. During the event INTCO ipal People's Government the event featured multiple major and minor Thanh Hoa Province Vietnam. The Company donated 100 care packages

Recycling took commemorative photos for couples celebrating their events attracting over 12000 participants. to local disadvantaged children to help them with their studies;

golden anniversaries and gifted them customized eco-friendly photo INTCO Recycling has long used sports as a carrier to fulfill social respon? Meanwhile the Company installed 22 solar streetlights on unlit road

frames. This activity organically combined environmental concepts with sibilities continuously investing in sports philanthropy for nearly a sections solving travel difficulties for residents. This activity received

family tradition inheritance enriching community cultural life while decade: in 2012 it helped bring a Gymnastics World Cup stage to Zibo; strong support from the local government and active participation from

earnestly fulfilling corporate social responsibility fully demonstrating the partnered with the Yao Foundation to carry out the basketball season for company employees; it is a significant practice for the Company to fulfill

enterprise's humanistic care and social warmth. 7 consecutive years; and regularly named grassroots sports events. This its corporate social responsibility deepen community connections and

sponsorship is a specific measure of the enterprise giving back to its convey social warmth.hometown and practicing the "Love Goodness Truth" values aiding public

health and urban sports development.INTCO RECYCLING-2025 ESG REPORT INTCO / 79Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

Intelligent Connectivity

Shared Success

2025 Highlights

Achieved 100% signing rate for Supported 378 significant suppliers with Covering 100% of Selected as a benchmark case of Shanghai

the Supplier Anti-bribery Commitment development measures among them significant suppliers in Tier - 1 Low-Carbon Supply Chain Enterprises

Key Topics Our Actions Corresponding SDGs

Supplier Management Built a closed-loop full lifecycle management system for suppliers covering admission screening performance

Customer Relationship Management evaluation and dynamic classification

Implemented ESG performance evaluation and targeted capacity-building for suppliers

Deepened the integration of industry academia research and application actively participated in industry activities and

promoted collective progress across the industry

INTCO RECYCLING-2025 ESG REPORT INTCO / 80Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

STRENGTHENING SUPPLY STANDARDIZING COLLABORATION MECHANISMS

CHAIN RESILIENCE System Upgrade

INTCO Recycling strictly complies with the laws and regulations of its operating In 2025 the Company completed a comprehensive upgrade of its Supplier Relationship Management (SRM) system and actively

regions and internationally recognized standards. It systematically promotes the explored the integration of frontier technologies such as AI driving supplier management from "process digitalization" to

standardization digitalization and green transformation of supplier management and "intelligent decision-making." The upgraded system covers key processes including admission assessment qualification review

is committed to building a responsible transparent and resilient global supply chain performance evaluation and tiered management establishing an end-to-end digital management closed loop and significantly

system. The Strategy and ESG Committee of the Board of Directors serves as the enhancing supply chain transparency and operational efficiency.highest decision-making and supervisory body comprehensively coordinating ESG

management across the supply chain.The Company has formulated and publicly disclosed the Supplier Code of Conduct

incorporating key ESG requirements such as the protection of human rights and labor On-site QualifiedSupplier Information Registration Assessment Supplier Supplier Tieredrights environmental protection and business ethics into supplier admission reviews Registration Verification Review Management Application Assessment Managementand periodic evaluation procedures. In 2025 the Company comprehensively revised

the Supplier Management Plan and Management System optimizing the coordination

mechanism between the Procurement and Quality Departments in supplier lifecycle Supplier Lifecycle Management

management and further refined the processes for qualification assessment performance

evaluation and exit management strengthening the institutional foundation for the

sustainable operation of its supply chain. Upgrade

At the operational level the Company has established a digital end-to-end control Core Functions Management Values

mechanism covering key stages such as procurement production and logistics. Dimensions

Through a tiered and categorized supplier management system we accurately identify The system automatically captures suppliers’ basic information

key suppliers and implements differentiated management measures. By continuously and verifies the authenticity of their qualifications. Suppliers Improves data accuracy anddeepening supplier partnerships through strategic collaboration and value co-creation Intelligent Admission that are dishonest or restricted are subject to a “one-strike strengthens compliance andthe Company further enhances supply chain resilience and strengthens the capability rejection” mechanism. risk control.to manage sustainability-related risks across the supply chain.Key performance indicators are automatically collected and

Key Performance Achieves performance visibility and Dynamic Evaluation analyzed across multiple dimensions supporting real-time

optimizes resource allocation.As of the end of the reporting period ratings and intelligent decision-making.the Company had a total of 2292suppliers including Advancement of the "procurement digitized electronic invoice

Improves tax compliance and

1934 Finance and Tax Synergy linked to input invoice" function enables automatic matching domestic suppliers audit efficiency.and verification.

358 overseas suppliers.

INTCO RECYCLING-2025 ESG REPORT INTCO / 81Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

Supply Chain Management

In 2025 the Company integrated AI technologies into supply chain management building a data-driven The Company applies rigorous screening criteria for supplier admission. The Supply Chain

digital procurement system to enable intelligent decision-making and risk control. Management Department together with Technical Production and other relevant departments

forms cross-functional teams to conduct on-site assessments of new suppliers and systematically

assesses their production processes quality control and ESG practices. The assessment

covers both business relevance and ESG performance:

Intelligent Insight Price Monitoring Risk Identification Business Dimension ESG Dimension

AI-assisted trend Real-time monitoring of Deep learning based on

research and price fluctuations with historical data enables The Company views ESG performance as an

information retrieval automatic alerts for proactive identification The Company focuses on factors such as important scoring criterion in supplier admission

improves anomalies optimizes of supply chain risks. the value proportion of supplied raw assessment holistically evaluating suppliers'

decision-making costs. materials in equipment their impact on systems and actual performance in areas

accuracy. product quality incoming material pass including environmental management

rates price competitiveness delivery lead occupational health and safety management

times and logistics costs. and business ethics. We give priority to

suppliers with outstanding ESG performance

as preferred partners.Admission Corrective Additionally the Company has established a risk

Action Alternative

Management Program Suppliers

General identification mechanism throughout the supplier

Suppliers admission process systematically assessing

specific risks across three dimensions: country

industry and commodity. We consider the political

social environmental and regulatory conditions of

Submit Materials Document On-site Assessment List of Sample Application for the countries and regions in which suppliers Review Assessment Report Suppliers Verification Admission operate; examine ESG performance in areas such as

workforce management energy consumption and

emissions based on sector-specific characteristics

including those of manufacturing industries; and

Significant

Non-cooperative Suppliers screen key factors such as raw material sources

Suppliers and material toxicity in order to comprehensively

identify and effectively manage ESG impacts

across the supply chain.Supplier Admission Workflow

INTCO RECYCLING-2025 ESG REPORT INTCO / 82Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

Based on comprehensive assessment results the Company classifies

suppliers with elevated ESG risks or high business importance as significant COMPREHENSIVE RISK MANAGEMENT AND CONTROL

suppliers serving as key management targets for continuous monitoring. In 2025 the Company fully implemented supplier tiering standards establishing a groupwide dynamic tiered management mechanism

For prospective partners with significant risks the Company may based on a comprehensive assessment of factors including cooperation scale performance strategic value and ESG risks. This marked a

postpone cooperation or decline engagement resuming the assessment shift in the Company's supply chain management approach from a one-size-fits-all standard to precise differentiated management

process only after such risks have been adequately mitigated. enabling systematic resource allocation reducing supply chain risks and enhancing resilience and sustainable competitiveness.

1601 Assessment and Oversight Mechanism Remediation Capability BuildingTotal number of Tier-1 suppliers

The Company requires all suppliers to sign the Supplier Anti-Bribery The Company has established a "identify-remediate-verify-improve"

Commitment and strictly comply with the Supplier Code of Conduct. closed-loop management mechanism. When issues are identified

Number of significant suppliers in Tier-1 321 We carry out routine supplier oversight through diverse measures during assessment cooperation is suspended and a Corrective and

including monthly procurement reviews social responsibility audits Preventive Action Notice is issued. The Company assists suppliers in

Percentage of total spend on significant and on-site EHS inspections. Assessments combine daily performance developing remediation plans providing remote or on-site technical

suppliers in Tier-1 78% monitoring with periodic evaluations. The procurement team support while monitoring remediation progress. If the supplier fails

conducts desktop or on-site assessments and fully documents to meet the Company's minimum ESG standards within the specified

results in the supplier management system creating a traceable time frame the business relationship will be terminated.Number of significant suppliers in non-Tier-1 576 audit trail. The Company maintains a comprehensive supplier audit training

The Company integrates international clients' social responsibility program regularly organizing cross-functional training to enhance

Total number of significant suppliers 897 standards into internal management protocols with particular supplier management and procurement personnel awareness and focus on ISO 9001 Quality Management System certification ISO practical skills regarding the Supplier Code of Conduct and supplier

Note Tier-1 suppliers refer to those who directly engage in business 14001 Environmental Management System certification and ESG management. Training covers ESG policy interpretation risk ：

transactions with the Company. Non-Tier-1 suppliers refer to upstream third-party quality system certifications or audit approvals from identification methodologies audit procedures and remediation

suppliers in the supply chain of Tier-1 suppliers. major international clients ensuring consistency and reliability tracking ensuring relevant personnel possess the expertise required

across the global supply chain. for effective sustainable supply chain management.Supplier Performance Assessment and Improvement Workflow

Supplier

Identify Supplier Procurement Evaluate Notify suppliers

suppliers for Assess supplier Review and lssue corrective

formulates

implements

corrective personnel tracks

effectiveness of of results and

performance performance approve action report to corrective and confirms supplier's archive assessment

internally supplier action plan and assessmente programs implementation improvement recordsresponds

INTCO RECYCLING-2025 ESG REPORT INTCO / 83Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

SUPPORTING PARTNER GROWTH Green Value Incentive

INTCO Recycling adheres to the philosophy of "empowerment and mutual success" deeplyintegrating development initiatives into the full lifecycle of supplier management helping The Company innovatively established a "carbon credit” exchange mechanism converting environmental performance

suppliers enhance their technical capabilities management standards and ESG performance. into quantifiable development resources and creating an

The Company designs and implements capability-building programs in areas such as quality incentive mechanism for emissions reduction. Each ton of

management lean production and environmental compliance and regularly organizes project CO? reduced by suppliers can be exchanged for technical

improvement meetings to share industry best practices driving continuous improvement in support training resources or priority cooperation benefits.product and service quality and ESG performance. In 2025 the Company further refined the carbon credit standards simplified the declaration process enabled

automatic credit calculation across dimensions including

energy consumption materials packaging and logistics

and supplemented the program with low-carbon training

Special Capability-building Initiatives in 2025 services. Carbon credits are directly linked to supplier cooperation

ratings and order allocation mechanisms driving the green

transformation of the supply chain.The Company carried out dedicated The Company established unified

QCC initiatives for key categories such production management and control

as decorative paper and wood veneer standards for pallet suppliers Benchmark Recognition: Selected as a Shanghai Low-carbon Supply Chain Enterprise

established joint improvement specifying raw material specifications

teams with suppliers and process parameters In 2025 INTCO Recycling was selected as a Shanghai Low-carbon

implemented root cause

C Pro inspection procedures Supply Chain Benchmark Enterprise marking authoritative

ity ent o danalysis and process llm ab and traceability recognition of the Company’s achievements in recycled resources e

optimization. mechanisms. utilization green manufacturing and the development of a low-carbon supply chain system. Through measures such as

digital management platforms carbon footprint accounting

optimization of the energy mix and innovation in green

warehousing and logistics the Company has actively advanced

The Company proactively The Company opened

recommended cooperation the development of a green and low-carbon supply chain system.system data interfaces

opportunities for t n

photovoltaic projects and io n D

i

o to supplier partners p

assisted more than 10 E m providing ESG performance

suppliers in assessing the benchmarking and guidance

feasibility of rooftop solar

installation promoting the adoption on industry best practices driving

of clean energy reducing electricity continuous improvement among

costs and delivering both economic suppliers through transparent data.and environmental benefits.INTCO RECYCLING-2025 ESG REPORT INTCO / 84

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nIntelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

关键绩效 FOSTERING A SYNERGISTIC

ECOSYSTEM

KPIs for sustainable supply chain management during the reporting period:

A healthy industrial ecosystem is fundamental to sustainable corporate development. INTCO

Recycling is committed to building an open collaborative and mutually beneficial industrial ecosystem

Indicator Number Remarks by advancing resource sharing joint standard-setting and value co-creation. Working together with

government authorities industry associations research institutions and value chain partners the

42% Company seeks to inject new momentum into industry development. of unique

Number of unique significant suppliers

significant suppliers

supported with development measures 378 GOVERNMENT-ENTERPRISE

supported in development

measures COLLABORATION LEADERSHIP

68% The Company actively participates in government-enterprise exchanges and industry association Number of unique significant suppliers 608 of unique activities demonstrating leadership and responsibility in the green economy and circular economy assessed via desk assessments/on-site significant suppliers fields. Through close interaction with government authorities and proactive engagement in industry

assessments assessed organizations the Company continues to expand its development opportunities and set a benchmark

for sustainable development in the industry.Number of unique significant suppliers Corrective actions and Supporting Urban Civility Development

assessed with substantial actual/potential 10 improvement plans formulated

negative impacts for all issues In May 2025 as a National Civilized Unit INTCO Recycling was invited to participate in the second

season of the Shanghai municipal thematic event "Embracing the Covenant of Civilization"

Number of unique significant suppliers organized for Shanghai civilized units to support cultural tourism commerce sports and exhibitions. The

Development measures

with substantial actual/potential negative Company used immersive displays to vividly present the full process of turning waste plastics into 10 integrated throughout the impacts with agreed corrective action/- valuable resources and showcased our distinctive model of integrating plastic recycling and regeneration

entire rectification process

improvement plan with fashion consumer product applications effectively raising public awareness of and participa-

tion in resource recycling.Number of unique significant suppliers

with substantial actual/potential negative 9 Failed to meet the minimum impacts that were terminated ESG standards

Note：All supplier figures disclosed in the table represent deduplicated unique supplier counts

covering both Tier-1 and non-Tier 1 suppliers.INTCO RECYCLING-2025 ESG REPORT INTCO / 85Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

Delivering Green Value Across Industries

In 2025 the High Net Worth Institute organized a visit to INTCO Recycling for more than 50 financial

tic

Recycling Intelligent experts and entrepreneur delegates. The group toured the Company's full recycled plastics circulation

full recycled industrial chain gaining an in-depth understanding of the closed-loop system covering waste plastics

plastics recycling intelligent compaction recycled pellet production and green products. During the visit

circulation renowned financial commentator Dr. Ma Hongman delivered an on-site lecture and exchanged views

industrial

chain with participants on the future economic outlook and green industry development trends. The event

fostered deeper interaction between the industrial and financial communities and raised INTCO

ro d u c t s Recycled Pell Recycling's brand recognition in the sustainability field.INTCO RECYCLING-2025 ESG REPORT INTCO / 86

Waste Plas

e t Production

Compaction

Green PIntelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

Deepening International Green Cooperation

In 2025 INTCO Recycling welcomed a delegation from Pakistan's Ministry of Commerce and

Ministry of Finance. Hosted by Shandong Foreign Trade Vocational College under the auspices of

China's Ministry of Commerce the visit provided the Company with an opportunity to fully

demonstrate our technological capabilities and innovation achievements in resource recycling

and utilization. We also introduced our innovative fully integrated plastics circularity value chain

promoting in-depth exchanges between China and Pakistan in the green industry field and

laying a solid foundation for deeper international cooperation.Empowering a New Chapter in Green Development

In December 2025 a delegation led by the Deputy Director of the United Front Work Department of the

Gansu Provincial Party Committee and Director of the Gansu Provincial Ethnic and Religious Affairs

Commission visited INTCO Recycling to conduct research on efforts to strengthen awareness of the

Chinese nation as a community. The delegation viewed a corporate video presentation and toured the

exhibition hall and production workshops to gain a detailed understanding of the Company's development

history production operations and export business. The visit promoted deeper government–enterprise

exchanges and showcased INTCO Recycling's active efforts to advance the coordinated development of

ethnic unity and progress together with green manufacturing.INTCO RECYCLING-2025 ESG REPORT INTCO / 87Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

Advancing Industry Association Collaboration Formulating Industry Standards

The Company actively joins influential industry associations 关键绩效

The Company actively establishes collaborative relationships

and promotes the flow of knowledge and value co-creation

with external certification bodies research institutions and As of the end of the reporting period

through technical exchanges academic sharing and

industry partners to jointly advance the development and

strategic cooperation. In 2025 the Company the Company had led or participated in the development

implementation of national and association standards. We

officially joined the Special Committee of Extruded

also formulate enterprise standards based on our product of 25 standards.Polystyrene Foam Board (XPS) of the China Plastics Process-

characteristics production processes and market needs.ing Industry Association (CPPIA) marking its strategic

transition from a supplier of recycled PS raw materials to a

provider of green XPS board solutions. This move provides Standards Led or Participated in by INTCO Recycling（Selected examples）

policy technical and market support for building an indus- Standard Title Type of Standard

trial "recycling–regeneration–high-value utilization" closed

loop and for consolidating the Company's position as a Plastics—Recycled plastics—Part 6: Polystyrene (PS) and impact-resistant polystyrene National

global leader in recycled plastics. (PS-I) materials

standard

Key Performance Plastics—Recycled plastics—Part 5: Acrylonitrile-butadiene-styrene (ABS) materials Nationalstandard

During the reporting period

the Company contributed a total of RMB 182000 in industry association fees. Plastics—Recycled plastics—Requirements for restricted substances Nationalstandard

The Kuala Lumpur National

and Selangor Chinese Guidelines for the recovery and recycling of plastics waste standard

Chamber of Commerce

China Chamber of

and Industry

Commerce of Metals Shanghai Fengxian District National

Minerals & Chemicals Association of Foreign-Invested Classification and code of waste plastics standard

Importers & Exporters Enterprises

Guidelines for Corporate Environmental Social and Governance (ESG) Information Association

Plastic Recycling Disclosure standard

Branch of the China Shanghai Fengxian

Synthetic Resin International Chamber

Association of Commerce Guidelines for Corporate Environmental Social and Governance (ESG) Evaluation

Association

standard

Major Industry Associations …………

INTCO RECYCLING-2025 ESG REPORT INTCO / 88Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

CO-CREATING CUSTOMER VALUE

Leveraging our global presence we work closely with industry peers customers suppliers and other partners to advance resource circularity and industrial collaboration. Focusing on efficient recycling of different

types of recycled plastics we share technological achievements integrate upstream and downstream resources and provide innovative solutions that help customers reduce costs and improve efficiency while

jointly advancing sustainable development goals.During the expansion of a new facility a leading electronics A globally renowned Japanese automotive parts manufacturer

recycler in India faced challenges arising from the large volume had long faced challenges in handling foam packaging

and high transportation costs of rigid PU foam. Following a waste from logistics operations. After introducing GREENMAX

systematic evaluation the company selected the GREENMAX foam recycling equipment in 2025 the manufacturer

H Series hydraulic compactor. The equipment achieves a significantly reduced waste storage space cut waste

volume reduction ratio of 8–12 times compressing PU foam to disposal costs by 30% and improved warehouse operating g A

a density of over 300 kg/m3 and reduces energy consumption clin y

u

tom efficiency. The equipment enabled the circular use of foam M

by 15%–20%. Once operational it is expected to reduce annual cRe s an ou resources with recycled materials being used in downstream e

transportation volume by 3000–4000 m3 equivalent to is f product manufacturing thereby successfully establishing

eliminating 120–150 truck trips thereby significantly reducing a closed-loop system of "recycling–regeneration–reuse"

costs and carbon emissions and supporting EPR implementa- and setting a benchmark for green operations in the

tion in India. GREENMAX automotive industry.Empowering

Shared Value

Creation Under Oregon's EPR framework in the United States the

In 2025 the data R&D center of a renowned North American Circular Action Alliance (CAA) introduced GREENMAX

university introduced GREENMAX compaction equipment to compaction equipment in 2025 to locally compress EPS

conduct on-site compression of EPS EPP and EPE foam e foam reducing volume by more than 90% and significantly

packaging waste generated in daily operations. The equipment sti Rt r u ce at cutting warehousing and transportation costs. The

significantly reduced waste volume greatly cutting warehouse tio odu izns Pr ga

n compressed blocks were then transported to INTCO

space usage and the frequency of outbound transportation. O

r Recycling's plant for pelletizing and were processed into

This helped the institution reduce waste disposal costs by high-value products such as picture frames achieving

30% while also lowering energy consumption and carbon closed-loop resource utilization. This solution provides a

emissions from transportation providing a replicable model sustainable pathway for hard-to-recycle EPS materials and

for green operations in research institutions. offers a replicable model for EPR implementation in other

states.INTCO RECYCLING-2025 ESG REPORT INTCO / 89

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RIntelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

INTEGRATING INDUSTRY ACADEMIA University-Enterprise Collaboration through Corporate Open Day Series

RESEARCH AND APPLICATION

The Company adheres to the philosophy of open innovation and actively promotes the integrated In 2025 INTCO Recycling launched a nationwide

synergy of industry academia research and application. We continuously deepen our long-term series of Corporate Open Day activities for

strategic cooperation with universities including Tsinghua University and China University of Petroleum. universities across China covering multiple core

By establishing high-quality internship and practice platforms we help students effectively translate bases and attracting more than 600 teachers and

theoretical knowledge into practical application. At the same time leveraging the research strengths students from over 20 universities. Through

of universities in frontier fields we drive ongoing breakthroughs in technological innovation and the immersive visits to production workshops R&D

upgrading of management models jointly empowering the high-quality development of the industry. centers and living support facilities together with

alumni sharing sessions the activities

Integrating Industry and Academia to Nurture New Talent for the Industry comprehensively showcased the Company's

leading strengths and future strategy in the field

In October 2025 INTCO Recycling's Malaysia base hosted a university student delegation for the 2025 of resource recycling giving students fresh

Plastic Circular Design Challenge organized by the Malaysian Plastics Manufacturers Association. perspectives on industry trends and career

Through an introduction to the Company's development journey a thematic presentation on its plastics choices.circularity system on-site visits to production workshops and technical Q&A exchanges students

gained firsthand insight into the full value chain from waste plastics collection sorting and processing to

the production of recycled pellets. The visit built a bridge between campus creativity and industrial

practice helping university students translate circular plastics concepts into design proposals with

greater practicality.As of the end of 2025 INTCO Recycling had signed agreements with multiple universities including

Tsinghua University and East China University of Science and Technology to establish "University

Student Employment and Practice Bases." This marked the shift of cooperation from introductory

visits to collaborative base development providing young talent with a stable and systematic

development pathway.INTCO RECYCLING-2025 ESG REPORT INTCO / 90Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

Intelligent Governance

Solid Foundation

2025 Highlights

Conducted 4 integrity training sessions Delivered 24 information security training sessions Delivered 20 AI-related training sessions

with 196 participants achieving 100% employee coverage achieving 100% employee coverage

Key Topics Our Actions Corresponding SDGs

Corporate Governance Enhanced the efficiency and diversity of the governance structure to strengthen corporate

Business Ethics governance capabilities

Risk Management Improved business ethics and risk management systems to fully implement compliant

operations

Customer Privacy

Upheld technology ethics and privacy protection laws and regulations to build a secure

and trustworthy digital ecosystem

INTCO RECYCLING-2025 ESG REPORT INTCO / 91Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

OPTIMIZING CORPORATE Board Diversity

GOVERNANCE The Company firmly believes that a diverse governance Key Performancestructure is essential for enhancing decision-making As of the end of the reporting period

quality and organizational resilience. In its Board Rules

DIVERSE AND TRANSPARENT of Procedure the Company specifies that when selecting the Board of Directors comprised 5 members director candidates it considers not only factors such as

GOVERNANCE experience skills professional knowledge and personal including 2 independent directors with women integrity but also diversity factors including gender

comprising 60% of the total.Corporate Governance Structure nationality ethnicity race religion and cultural background.With the Board of Directors as the core of governance framework INTCO Recycling has established a

clear governance system of "decision-making - oversight - execution" and promotes the coordinated

implementation of ESG and business management through four specialized committees. 2 3 1 2 2

Strategy and

ESG Committee

Shareholder

Audit Committee

Board of Directors

Remuneration and

Appraisal Committee

Male Female Executive Independent

Other

Non-executive

Senior Executives Director

Director Director

Nominating Gender Distribution of the Board of Directors Type Distribution of the Board of Directors

Committee

In 2025 the Company completed the election of a new Board of Directors.INTCO Recycling Governance Structure

INTCO RECYCLING-2025 ESG REPORT INTCO / 92Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

High-Quality Information Disclosure

The Company strictly complies with the Rules Governing the Listing of Stocks on the Science and Technology

Innovation Board of the Shanghai Stock Exchange and the Administrative Measures on Information Disclosure by 2025 Best Practice Case

Listed Companies and continuously improves the information disclosure procedures and internal review of Listed Company

mechanisms to ensure that material information disclosures including periodic reports and interim

announcements are truthful accurate complete timely and comprehensive. Meanwhile through the Boards of Directors

official website WeChat Official Account and major domestic and international media channels we carry

out multi-dimensional communication on topics including corporate governance product quality technological

innovation and social responsibility effectively safeguarding investors' and minority shareholders' right to

information and lawful interests.INTCO Recycling also discloses ESG-related information through various professional platforms. In addition

to data platforms used by customers and government authorities its principal public disclosure channels

include:

Important case study: "Implementing

External the 'Two Mountains' Concept: Twenty

Information Years of ESG Practice in Shanghai

Disclosure Stock Exchange"

Information Disclosure

Documents 165copy

Performance Briefings 4times

Visual Summaries

("One-Pagers") 3times

Performance

Videos 2times

SSE e-Interaction

Responses 51response

Response Rate 100% Best Practices in Investor Relations

Management for Chinese Listed

Companies

INTCO RECYCLING-2025 ESG REPORT INTCO / 93Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

STRENGTHENING RISK PREVENTION AND CONTROL

INTCO Recycling integrates risk management into strategic decision-making and daily operations and has established a risk management framework covering principal businesses systematically advancing risk identification

assessment response and ongoing monitoring. Through structured control mechanisms the Company enhances operational resilience and compliance standards providing support for long-term value creation and

sustainable development goals.Risk Management Structure Risk Control Mechanism

The Company continues to improve internal control and risk governance framework. Leveraging The Company strictly complies with internal policies including the Internal Control Management Policy and has

a "three lines of defense" structure we clarify responsibilities and oversight arrangements established a risk prevention and control system with clear responsibilities traceable processes and effective

strengthens the identification assessment response and ongoing monitoring of key risks and execution. By covering key areas clarifying role responsibilities and strengthening controls over critical nodes the

safeguards compliant and effective operational decisions. Company systematically enhances the ability to identify assess and respond to risks laying a solid foundation for

long-term and stable operations.Regular

The heads of business and functional departments are responsible for

First Line of Defense Identification Organize annual risk reviews across all departments to identify risks associated with business

identifying assessing and managing department-specific risks as well

Operations Risks operations and embed risk control requirements into the entire process of product and service

as mitigating and resolving potential risks. development.Assessment and Assess and categorize identified risks by level form a written report for submission to

Classification management and clearly define risk sources affected areas causes potential impacts and Second Line of Defense Company management monitors and ensures adherence to risk proposed control measures.Risk and Compliance

Oversight management standards.Plan Implement approved risk response plans track implementation progress and provide timely

The Internal Audit Department is responsible for conducting regular Implementation feedback on the handling process and outcomes.Third Line of Defense internal audits of the effectiveness of the risk management and compliance

Independent Internal processes and reporting the results to the highest management level of

Audit Monitor key risks and their changes. Promptly conduct reassessments and adjust manage-

the Company. Dynamic ment measures according to updated risk levels in the event of material changes or emergence

Monitoring of new information.External Audits Summarize annual risk identification assessment and response systematically extract

Summary and improvement points and promote the optimization of relevant mechanisms.Improvement

Risk Management Structure Risk Control Process

INTCO RECYCLING-2025 ESG REPORT INTCO / 94Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

Identification and Response to Emerging Risks

During the reporting period we focused on key supply chain risks by upgrading the supplier risk

early warning and dynamic scoring s ystem improving the full-lifecycle supplier risk control

framework achieving full coverage of supplier commitment letter signings and strengthening

the identification and rectification of key risks. Emerging Potential Impact Risk Description Mitigation Measures

Risk onthe Company

Control Management

Core Measures

Dimension Objective

Incorporated credit and compliance Improve the timeliness Cost and compliance

information including lists of dishonest and accuracy of risk Rising global geopolitical p re s s u re s : l o n g e r Optimize logistics routes

Risk Early entities and judgment debtors into supplier identification and enhance uncertainty may disrupt procurement cycles and carrier mix; Establish

Warning onboarding and ongoing cooperation the efficiency of early Geopolitical cross-border logistics higher transportation a trade compliance monitoring

Mechanism management; Focused on monitoring warning and corrective Risk drive volatility in shipping costs and increased and early warning mechanism;

changes in the credit status of customers action costs and lead to changes review requirements

with extended payment terms in trade terms.Strengthen due diligence

that may give rise to and sanctions screening.breach and penalty

Optimized prepayment strategies to reduce Strengthen risk controls risks.capital risks; Collaborated with the IT at all stages of supplier

Full-cycle department to enable continuous monitoring cooperation and enhance

Control of risk indicators; Strengthened the review the granularity of risk

of abnormal situations while introducing management Information security risks

intelligent tools such as data breaches Define boundaries for AI

and account takeovers use and data classification

Data may increase; Operational and reputational requirements;

The Company conducted multiple rounds of internal audits covering key areas such as finance attendance Security AI-enabled fraud techniques risks: data breaches Strengthen system security

contracts expense reimbursement incoming material inspection and inventory management. Through Risks Arising are becoming more business interruption protection;

a closed-loop remediation process it promoted the effective implementation of internal policies and from AI sophisticated and may be financial loss and weakened

further strengthened the effectiveness of internal controls. exp lo i ted across customer trust. Conduct anti-fraud and Applications

The Company embeds compliance requirements upfront and throughout the entire business process procurement sales

privacy compliance training.ensuring that suppliers sign the Supplier Anti-Bribery Agreement as required and continuously and financial approval

strengthens risk controls and accountability at key nodes. Meanwhile the Company further optimized processes.its contract risk alert function to automatically flag contractual performance risks based on the performance

cycle enhancing focus on critical nodes and avoiding omissions in contract fulfillment.INTCO RECYCLING-2025 ESG REPORT INTCO / 95Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

Risk Culture Development UPHOLDING BUSINESS ETHICS

The Company regards risk culture building as a key pillar of risk management. We provide regular training

and communications for the Board of Directors and all employees focusing on business ethics compliance Business Ethics Management

management and intellectual property rights. Through targeted outreach and continuous reinforcement

the Company strengthens employees' capabilities in risk identification compliance execution and risk

prevention and control supporting sound and standardized operations. The Company has established and continuously strengthened its business ethics and anti-corruption

management system and strictly enforced national laws and regulations such as the Company Law of

The Company conducts comprehensive risk awareness programs to continuously enhance employees'

the People's Republic of China and the Anti-Unfair Competition Law of the People's Republic of China.capabilities in preventing and managing risks within their respective professional areas. We revised our

It clearly defines the boundaries of conduct and compliance requirements applicable to employees

procurement contract templates to address major contract performance risks and delivered multiple specialized

and business partners. The Audit Committee under the Board of Directors provides

contract management training sessions to reduce such risks.overall oversight of related work and forms a closed-loop management mechanism

Key Performance through internal supervision commitment signing and accountability measures.Contract Performance Risk Training

The Company maintains a zero-tolerance stance toward violations such as

During the reporting period

In 2025 the Company conducted specialized training on procurement bribery and kickbacks conflicts of interest unfair competition and money

contract management systematically strengthening employees' risk 6 laundering. Through regular internal audits and risk assessments it links the company conducted

management capabilities across three dimensions: key contract terms business ethics requirements to employee performance management to

performance monitoring and exception handling. The training clarified trainings on intellectual property strengthen compliance execution. The Company has also established strict

acceptance standards breach-of-contract liability monitoring channels 100% rules for key scenarios such as business entertainment gift-giving rights achieving

and exception-handling procedures guiding employees to maintain and supplier management to prevent any incidents involving

timely attention close communication and robust evidence retention to employee coverage. corruption bribery extortion fraud money laundering

minimize contract performance risk to the greatest extent possible. insider trading or similar misconduct.At the same time through its employee conflict of

interest disclosure mechanism the Company further

strengthens its business ethics management and guides

employees to uphold sound values and high standards of

professional conduct.Employee Conflict of Interest Disclosure Mechanism

The Company requires employees to make regular disclosures regarding matters such as

the employment of relatives or friends financial interests and investments outside

employment office relationships gifts and business influence strengthening the

internal supervision system.INTCO RECYCLING-2025 ESG REPORT INTCO / 96Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

The Company continues to implement policies on clean and transparent procurement embedding integrity requirements into supplier management and key procurement control points. During supplier onboarding

and cooperation we require suppliers to sign the Supplier Anti-Bribery Commitment. In addition during preliminary on-site visits and similar processes the Company communicates anti-bribery requirements to suppliers and

distributes anti-bribery reminder cards strengthening preventive controls against the improper transfer of benefits at an early stage.Key Performance

In 2025

100% of employees had signed the Integrity and Self-discipline Commitment. We reported no business ethics incidents or illegal acts involving corruption

100% bribery conflicts of interest fraud money laundering and unfair competition. of major suppliers had signed the Supplier Anti-Bribery Commitment.

Anti-corruption Warning and Education Activities

In 2025 INTCO Recycling carried out anti-corruption warning and

education activities across its four major bases in Shandong Shanghai

Anhui and Jiangsu. Employees from Internal Control and Supply Chain

Departments participated in the activities which totaled approximately

35 hours of training achieving 100% coverage across all business and

functional departments. The activities aimed to help employees clearly

understand behavioral boundaries and compliance "red lines" and

encouraged participants to apply what they had learned to risk identification

process execution and self-discipline in daily business scenarios further

strengthening the foundation of business ethics.INTCO RECYCLING-2025 ESG REPORT INTCO / 97Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

Reporting Channels and Protection Measures

The Company has formulated and published the Code of Conduct Anti-Bribery Management System Whistleblower Protection Policy and Anti-Fraud Whistleblowing and Complaint Management Policy. We encourage

all employees and external stakeholders to report misconduct either anonymously or by real names through multiple channels including the Feishu platform email and telephone hotlines.The Company is committed to protecting complainants and whistleblowers during investigation and strictly prohibits any form of retaliation reprisal or suppression against whistleblowers ensuring fairness and

security throughout the process. Any individual who improperly discloses whistleblowers' information or retaliates against them shall be dealt with seriously in accordance with the Company's policies. If any violation

of laws is involved the case shall be transferred to the judicial authorities in accordance with the law.The Company has established the INTCO Complaint and Reporting Platform as a unified intake channel to facilitate employees and business partners in submitting clues and opinions. The Platform regularly pushes

corporate anti-corruption cases reminders on integrity during holidays and other materials to all employees further strengthening compliance guidance and risk prevention.INTCO RECYCLING-2025 ESG REPORT INTCO / 98Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

Enhancing Awareness of Business Ethics

New Employee Onboarding and Ongoing Promotion Supplier Integrity Cooperation Group Integrity Compliance Policy Promotion Activity Training

The Company

continues to advance a culture of

integrity by combining onboarding training with

ongoing communication to deliver business ethics and compliance

In 2025 the Company organized its first In 2025 the Company continued to strengthen education to all employees. The focus is on promoting and implementing reporting channels relevant

policies and compliance requirements to ensure that employees understand the path for reporting Supplier Integrity Cooperation Promotion

integrity risk prevention and control by

violations. Meanwhile the Company has continuously strengthened awareness in key areas such as activity further clarifying the boundaries of

promulgating the Group's integrity compliance

policy among all employees clarifying

workshops warehouses offices cafeterias and dormitories by displaying reporting platform access cooperation and compliance requirements. The

activity covered approximately 40 participants behavioral standards and management information and posting regular posters and display boards further enhancing employees' understanding of

and lasted two hours with a focus on requirements. Drawing on typical violation and adherence to business ethics standards.interpreting typical violation cases and cases in recent years the Company conducted

corresponding disciplinary measures while warning and education activities to explain Key Performance

also communicating complaint and reporting the consequences of disciplinary violations

During the reporting period channels to strengthen suppliers' compliance and accountability mechanisms reinforcing

awareness and standards of integrity in employees' awareness of and respect for

compliance red lines and promoting the

a total of over 2000 new employees participated cooperation. effective implementation of integrity requirements

in the induction training. in daily business operations.INTCO RECYCLING-2025 ESG REPORT INTCO / 99Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

STRENGTHENING ESG MANAGEMENT ESG GOVERNANCE FRAMEWORK

The Company embeds ESG management into its strategic planning and operational decision-making. The Company has established the Strategy and ESG Committee of the Board of Directors and formulated

Through innovation in circular recycling and industrial collaboration we establish end-to-end the Implementation Rules for the Strategy and ESG Committee of the Board of Directors clarifying the

management across the full value chain spanning technology R&D production and operations and division of responsibilities and rules of procedure. Chaired by the Chairman of the Board the Committee is

the delivery of low-carbon products. Supported by institutionalized and process-based ESG management responsible for reviewing and overseeing major ESG matters. An ESG Executive Team has been established

mechanisms we continue to enhance value chain resilience and operational quality contributing to under the Committee to coordinate the implementation of ESG initiatives working with functional and

the achievement of global carbon neutrality goals. business departments to ensure full delivery forming a three-tier ESG governance structure of "Committee

– Executive Team – Units."

Strategy review

Oversee implementation

Strategy and ESG Assess performance

Committee of the

Board of Directors

Formulate ESG policies identify

ESG risks and coordinate

ESG-related efforts

ESG Executive Team

Specific implementation

Provide feedback

Functional and

Business Units

INTCO RECYCLING-2025 ESG REPORT INTCO / 100Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

STAKEHOLDER ENGAGEMENT

The Company regards stakeholder engagement as a fundamental part of its ESG management. We continuously During the reporting period drawing on the GRI Standards domestic and international ESG trends and

collect opinions and expectations through regular communication channels and integrate feedback on key topics industry priorities and based on own business characteristics the Company systematically identified

into operational management and decision-making promoting collaborative value creation. key stakeholders closely related to corporate governance and operational activities.Stakeholders Government and Shareholders and Partners (Suppliers

Clients / Consumers Employees Community Media

Regulatory Agencies Investors and Other Partners)

Compliance operation Reduce operational risks Product and service quality Protection of basic rights Conduct fair trade Support community Daily communication

Drive social employment Improve corporate governance Customer relationship Career development path Promote industry progress development Information disclosure

Expectations

Product quality and safety Timely investment returns management Healthy safe and comfortable Participate in public welfare Thematic interviews

and Demands

Protection of investor rights work environment Support disaster relief and exchanges

Promote technological innovation Compensation and benefits

Comply with laws and Enhance risk management Provide high-quality Comply with labor laws and Establish transparent Engage in charity and Provide transparent

regulations Improve profitability products and services regulations procurement mechanisms voluntary services disclosure

Implement regulatory Strengthen corporate governance Strictly fulfill contractual Provide employee develop- Foster mutual benefit and Contribute to rural Conduct media visits

Our Response requirements Disclose information in accordance obligations ment planning cooperation revitalization and communications

Support local economic with laws Organize employee care Responsible sourcing Support education and

development Protect the rights of minority initiatives Participate in setting industry elderly care

Improve product quality investors standards Environmental education

Research reception Shareholders’ meetings Customer satisfaction Employee congress Industry associations and Charity events Press releases

Daily working meetings Earnings briefings surveys Employee communication and chambers Volunteering activities Media interviews

Communication Thematic sessions Press releases information Customer communication engagement Industry exhibitions

Channels Information submission disclosures

and visits Employee training and Open and transparent bidding

and correspondence Roadshows and reverse Online channels (App development programs Supply chain partner training

roadshows Website 400 Hotline etc.) Employee care initiatives and management

INTCO RECYCLING-2025 ESG REPORT INTCO / 101Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

MATERIALITY ASSESSMENT

The Company has established an annual materiality assessment mechanism. Based on benchmarking ESG Materiality Matrix of INTCO Recycling

analysis strategic priorities and feedback from internal and external stakeholders the management of the

Company identified and assessed 18 material topics in accordance with the principle of double materiality. Codes of Business Conduct

These topics are considered to have significant impacts on society and the environment as well as material Compliance Operations

implications for the Company's development and long-term value creation. The assessment results were

reviewed and confirmed by the Strategy and ESG Committee of the Board of Directors and are disclosed Talent Attrcation and Retention Environmental

Compliance

and addressed in this Report.Occupational Health and Safety

Product Lifecycle Management

Materiality Identification and Assessment Process

Responding to Climate Change Customer

Relationship

Management

Identification of Potential Material Issues Stakeholder Engagement Corporate Govermance

Intelligent Manufacturing R&D Innovation

Analyze regulatory requirements industry Develop stakeholder engagement plans Supplier ManagementEnergy Management

benchmarking capital market trends and conduct interviews and surveys to understand Diversity and Equity

Water Resource Management

internal assessments to identify 18 ESG the ESG concerns of all key stakeholder

issues that significantly affect the Company's groups. Circular Economic Development

core operations.Confirmation of Material Issues Prioritization of Material Issues

Submit the materiality matrix to the management Assess each material topic from two

for validation and confirm the relevance and dimensions—importance to the Company

Community Contribution and Development

impact of identified issues. and to stakeholders—and generate the ESG

materiality matrix. Pollution Prevention

Important Influence to the Sustainable Development of INTCO Recycling Extremely Important

INTCO RECYCLING-2025 ESG REPORT INTCO / 102

Extremely Important Influence of Stakeholders’ InterestIntelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

SAFEGUARDING INFORMATION Information Security Governance Structure

SECURITY The Company has appointed a senior-level executive as AIT leader to oversee the Company’s IT strategy system architecture and infrastructure development. This leader also serves as the highest management authority for IT and

information security taking full responsibility for the supervision and management of information security. For critical

system operations the Company implements authorization and approval controls maintains operation logs and

ENSURING DATA SECURITY strengthens the traceability and compliance of key system operations.To systematically enhance its information security governance the Company continues Information Security

to upgrade its information security governance structure and policy framework clarify Key Performance

responsibilities strengthen key controls and extend relevant requirements to external Risk Prevention

stakeholders facilitating the effective implementation of standardized information The Company has built a zero-trust During the reporting period

security management. security framework based on the principle the signing rate of information security

Information Security Policies and Systems of “never trust always verify.” We apply confidentiality agreements reached tiered authentication and access

The Company strictly complies with laws and regulations including the Cybersecurity Law controls to different devices and users 100%

of the People’s Republic of China the Personal Information Protection Law of the People’s reducing internal cybersecurity risks at

Republic of China and the Data Security Law of the People’s Republic of China. We contin- the source.ue to improve internal policies such as the Information Security Management Policy Data

Center Backup Management Policy Information System Development Management Policy

and IT Equipment Maintenance Management Policy clearly defining information security

management requirements. The Company has also established corresponding system

access control policies for systems including NC and MRP.In 2025 the Company revised the IA-AS-1001-A3 Information Security Management

Policy adding illustrative cases to the information security incident reporting procedures Access to critical systems Implement micro-segmentation Deploy a unified security

which are accessible to employees via Feishu. Meanwhile we established dedicated requires multi-layered mechanisms to enforce strict monitoring system to

operation and maintenance groups for key systems and launched an IT workspace authentication for all controls over data sharing conduct real-time monitoring

available to all employees facilitating the submission of issues and responses from IT terminal devices and between departments thereby and logging of all access

personnel. users to ensure security. mitigating potential internal and operational activities

For key external stakeholders such as visitors customers and suppliers the Company threats. enabling timely detection

has established stringent information security requirements and strictly controls data and response to potential

access and export permissions to reduce the risk of information leakage. During the security events.reporting period the Company experienced no information security breaches or other

cybersecurity incidents with zero information security vulnerabilities found and zero

customers clients and employees affected by compliance violations. Zero-trust Security Framework

INTCO RECYCLING-2025 ESG REPORT INTCO / 103Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

Information Security Management Plan Information Security Training

The Company has established hierarchical response procedures for information security incidents of The Company continues to strengthen employees' information security awareness by conducting two

different severity levels and conducts quarterly vulnerability scans. We carry out focused inspections company-wide information security training sessions each month. Training topics cover fundamental

and risk monitoring on infrastructure application systems and network environment improving information security knowledge security technologies and application practices data protection and

response efficiency and standardization through continuous follow-up and iterative optimization. compliance requirements and secure operating protocols. To enhance practical response capabilities

The Company also regularly uses vulnerability management tools and cybersecurity training ranges to the Company also conducts scenario-simulated phishing email attack drills helping employees

conduct attack-and-defense validation exercises. Additionally we collaborate with external security strengthen their ability to identify and guard against security threats through hands-on practice.experts to review security architecture assess the soundness and effectiveness of network architecture

Key Performance

and security design and promptly identify and address potential risks and vulnerabilities.During the reporting period

the Company conducted 24 relevant trainings achieving a 100% employee participation rate.Vulnerability Scanning Auditing & Inspection

the average training hours per employee reached 24 hours for the whole year.Quarterly vulnerability scanning verification and equipment security

inspection

Semi-annual security policy audit and optimization

Biannual 24/7 emergency response drills with specialized reports

Periodic attack surface assessment security advisories and annual report

Annual cybersecurity awareness training

Information

External Assessment & Certification Security Training

Meeting

December 2025: Engaged a third-party firm for internal/external network

vulnerability scanning; delivered inspection reports

October 2025: Engaged a third-party firm for cybersecurity classified

assessment; the Company passed Level 3 Cybersecurity Classified Protection

annual re-certification

INTCO RECYCLING-2025 ESG REPORT INTCO / 104Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

External Engagement

To keep pace with industry developments and continuously enhance cybersecurity management capabilities the Company actively participates in external forums training programs and technical exchange activities

related to information technology development and cybersecurity. Drawing on external best practices through these activities we promote the continuous optimization of information security management capabilities.Fortinet Accelerate 2025 – North Asia Tour

On June 5 2025 the Company participated in Fortinet Accelerate 2025 hosted by Fortinet. Under the theme "Fortify Your Tomorrow"

the event focused on cutting-edge topics including SASE AI security and cloud cybersecurity and explored the development of

AI-driven security architectures and security practices in complex network environments. During the roundtable sessions the Company

gained deeper insight into industry best practices. Combined with own existing deployment of Fortinet firewalls FDR and related

policies and training the Company further refined the coordinated protection approach covering technology management and

people. This enhanced business continuity and operational stability providing useful reference points for further strengthening the

Company's information security capabilities.CSOP Cybersecurity Operations in Practice Conference

On August 21 2025 the Company participated in the 7th CSOP Cybersecurity Operations in Practice Conference. The conference focused on cybersecurity developments such as attack-and-defense exercises ransomware

attacks phishing attacks and vulnerability exploitation while also addressing the latest advances in the application of large AI models and threat intelligence. Under the theme "New Landscape New Practice" the

conference featured exchanges on practical security operations strategies and experience in protecting critical infrastructure. Through this participation the Company gained deeper insight into industry technology

trends and operational best practices gaining valuable opportunities to learn from real-world attack-and-defense experience and stay abreast of emerging developments.INTCO RECYCLING-2025 ESG REPORT INTCO / 105Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

AI Information Security

The Company embeds ethics requirements throughout the entire technology development

process and conducts ethical assessments for AI projects at the project initiation stage

Grounded in the principles of compliance focusing on data-use compliance fairness in model decision-making and transparency. The technology and legal teams jointly review relevant matters to ensure compliance with

security and trustworthiness INTCO Recycling applicable laws regulations and industry standards. Senior management also regularly

is committed to the responsible development reviews AI application projects to promote compliance and controlled operation of AI

and application of AI technologies. Against the technologies.backdrop of digital and intelligent transformation In 2025 the Company assigned an IT Business Partner (ITBP) to each business department

the Company is accelerating the application and to drive the deep integration of AI tools with business scenarios and comprehensively

development of AI technologies while adhering enhance the organization's digital capabilities. We deployed internal AI assistants on the Feishu platform for information retrieval and workflow management reducing the risk of

to technology ethics and privacy protection internal information leakage and supporting employees in the secure use of AI tools. At

regulations. Through internal platforms the same time the Company upgraded the AIOps intelligent O&M model by leveraging

training and practical application we continue intelligent assistants and an AI knowledge base to provide targeted Q&A support and

to enhance employees' AI capabilities and enable the intelligent generation of office documents thereby improving workplace

compliance awareness and are committed to efficiency and accuracy.building a trusted AI ecosystem.Strictly comply with data protection laws and regulations and ensure compliance in data collection

usage storage and other processes

Data Privacy Protection Continuously improve management measures for personal information protection based on actual

business operations

Deploy large-scale AI models in a private environment to safeguard systems against malicious

System and Network attacks abuse and data leakage

Security Conduct regular security testing and vulnerability scanning

Establish a multi-layered security protection mechanism

Right to be Informed Carefully review AI-generated content and improve relevant notices and explanations in applicable scenarios

Science & Technology Pay close attention to fairness bias risks and ethical issues in AI applications

Ethics Norms Improve the explainability of AI-driven decision-making

INTCO RECYCLING-2025 ESG REPORT INTCO / 106Intelligent Enjoyment Intelligent Manufacturing Intelligent Integration Intelligent Care Intelligent Connectivity Intelligent Governance

Quality Living Green Operations Organizational Vitality Harmonious Community Shared Success Solid Foundation

PROTECTING CUSTOMER PRIVACY

The Company places high priority on customer data security and consumer privacy protection. In compliance

with the Personal Information Protection Law of the People's Republic of China we have established stringent Centralized CRM Management

customer privacy management measures centrally manages customer information through the CRM system

and apply classification and tiering encryption for customer data to comprehensively safeguard customer Data Minimization: Strictly limits the scope of data collection and access permissions to prevent any

privacy. unauthorized use.To strengthen employees' awareness of customer privacy protection the Company continues to organize sharing Access Control: Strengthens approval procedures for customer data access and restricts non-essential

sessions on typical privacy protection cases enabling employees to identify and prevent potential risks. external exports to reduce the risk of data leakage.

01 Immediately contact the digital automation department after the

incident

02 Conduct a risk assessment and determine priorities and respond

based on the results of the assessment

03 Inspect devices involved in the incident to determine the cause of

the data breach

04 Isolate and disable the affected devices

05 Establish incident response records analyze causes strengthen relevant protections and conduct thorough inspections at each

base

Customer Privacy Breach Response Process

INTCO RECYCLING-2025 ESG REPORT INTCO / 107Appendix 1

APPENDIX 1: SUMMARY OF 2025 ESG KEY PERFORMANCE INDICATORS

Key Performance 2022 2023 2024 2025 Unit

Key Economic Performance

Revenue 205605.56 245507.70 292374.12 354621.70 Ten thousand RMB

Profit 23977.58 19565.37 30731.95 28573.45 Ten thousand RMB

Key Environmental Performance

Energy Use

Gasoline 98011 117159 200704 218904 Liter

Diesel 159181 225651 424009 467748 Liter

Natural gas 407080 743058 778987 468277 Cubic Meter

Liquefied natural gas -- -- -- 11 Ton

Purchased electricity 70023245 92677515 82457219 110594487 kWh

Purchased steam -- -- 7402 5991 Ton

Energy Consumption

Direct energy consumption 6481.50 10365.18 13456.28 11259.94 MWh

Indirect energy consumption 70023.24 92677.52 88690.11 115639.24 MWh

Total energy consumption 76504.74 103042.70 102146.40 126899.18 MWh

Energy intensity 0.37 0.37 0.35 0.36 MWh/ten thousand RMB

Greenhouse Gas Emissions

Direct GHG emissions (Scope 1) 1442.49 2295.12 3087.04 2683.95 tons of CO2e

Direct GHG emissions intensity 0.007 0.01 0.01 0.01 tCO2e/ten thousand RMB

Indirect GHG emissions (Scope 2) 36517.70 47568.53 43678.73 55224.35 tons of CO2e

Indirect GHG emissions intensity 0.18 0.17 0.15 0.16 tCO2e/ten thousand RMB

Partial other indirect GHG emissions (Scope 3) -- 534933.56 587082.17 533927.44 tons of CO2e

Partial other indirect GHG emissions intensity -- 1.93 2.01 0.04 tCO2e/ten thousand RMB

Total GHG emissions tons of CO2e

(Scope 1 + Scope 2+Partial Scope 3) 37960.19 584797.21 633847.94 591835.74

Intensity of own-operation GHG emissions 0.18 0.18 0.16 0.16 tCO2e/ten thousand RMB

Water Resources

Total water withdrawal 224287 311111 326225 433285 Ton

Total water discharge 150134 261436 207415 290528 Ton

Total water consumption 74153 44177 113152 142757 Ton

INTCO RECYCLING-2025 ESG REPORT INTCO / 108Appendix 1

Key Performance 2022 2023 2024 2025 Unit

Waste Water

BOD 0.34 0 0 0 Ton

COD 1.00 0 0 0 Ton

NH3-N 0 0 0 0 Ton

Waste

Total non-hazardous waste generated 10444.76 5311.08 9020.55 11700.93 Ton

Non-hazardous waste recycled/reused 9612.65 3738.53 8040.45 9895.55 Ton

Non-hazardous waste treated 832.11 1572.55 980.10 1573.38 Ton

Total hazardous waste generated 81.98 529.48 943.32 698.28 Ton

Hazardous waste recycled/reused -- -- 3.45 0 Ton

Hazardous waste treated -- -- 939.87 698.28 Ton

Waste Gas

Nitrogen oxides emissions 0 0 0 0 Ton

Sulfur oxides emissions 0 0 0 0 Ton

VOCs 3.83 7.02 4.71 8.84 Ton

Packaging Materials

Total packaging material 9077.70 13352.06 16279.00 21098.00 Ton

Paper consumption 7572.00 12076.15 14762.00 19066.00 Ton

Plastic consumption 1505.70 1275.94 1517 2032.00 Ton

Total plastic reduction in packaging (replacing plastic with paper) -- -- 960 1056.00 Ton

Percentage of packaging materials made from recycled/renewable materials 83.41 90.44 90.68 90.37 %

Key Social Performance

Employment

Total number of employees 2986 3536 3951 5323 Person

Employment Category

Full-time 2985 3536 3951 5323 Person

Part-time 1 0 0 0 Person

Employees Composition

Male 1739 2036 2252 2983 Person

Female 1247 1500 1699 2340 Person

Aged 30 and under 1103 1378 1562 2250 Person

Aged 31 to 50 1585 1850 2088 2730 Person

Aged 51 and above 298 299 301 343 Person

INTCO RECYCLING-2025 ESG REPORT INTCO / 109Appendix 1

Key Performance 2022 2023 2024 2025 Unit

Chinese employees 2458 2805 2985 3410 Person

Overseas employees 528 731 966 1913 Person

Management Diversity

Number of senior management-male 360 105 96 100 Person

Number of senior management-female 123 74 85 92 Person

New Employees Overview

Total number of new employees 622 1122 1317 2478 Person

Male 386 665 808 1497 Person

Female 236 457 509 981 Person

Aged 30 and under 351 641 762 1479 Person

Aged 31 to 50 267 445 539 942 Person

Aged 51 and above 4 36 16 57 Person

Chinese employees 181 946 833 1292 Person

Overseas employees 441 176 484 1186 Person

Employees Turnover

Total number of employee turnover 630 1000 917 1189 Person

Employee turnover rate 21.09 21.47 18.90 18.49 %

Male 21.03 22.03 20.60 17.87 %

Female 21.28 20.69 16.48 19.37 %

Aged 30 and under 25.99 29.59 22.71 18.41 %

Aged 31 to 50 16.20 15.16 15.49 18.22 %

Aged 51 and above 23.65 15.52 19.37 21.51 %

Management turnover rate -- 8.79 13.74 8.20 %

Non-management turnover rate -- 21.98 19.10 18.80 %

Chinese employee turnover rate 22.81 23.33 18.42 15.92 %

Overseas employee turnover rate 11.82 13.78 20.33 23.61 %

Occupational Health and Safety

Number of EHS training sessions 109 117 135 157 Session

EHS training coverage rate 100 100 100 100 %

Investment in EHS 923.05 718.51 997.04 1150.79 Ten thousand RMB

Number of work-related accidents 15 20 28 27 Case

Number of deaths due to work-related incidents 0 0 0 0 Person

INTCO RECYCLING-2025 ESG REPORT INTCO / 110Appendix 1

Key Performance 2022 2023 2024 2025 Unit

Employee Training

Total hours of employee training 134508 206352 263871 359520 Hour

Employee training coverage 100 100 100 100 %

Average training hours per employee 45.05 58.35 66.79 67.54 Hour

Supply Chain Management

Number of suppliers 1214 1166 1226 2292 Unit

Chinese supplier 1075 841 1018 1934 Unit

Overseas supplier 139 325 208 358 Unit

Note: The 2025 employee turnover rate is calculated based on employee departures that occurred without external third-party involvement.INTCO RECYCLING-2025 ESG REPORT INTCO / 111Appendix 2

APPENDIX 2: GRI STANDARDS INDEX

INTCO Recycling has reported the information for the period from January 1 2025 to December 31 2025 in accordance with the GRI Standards

GRI 1: Foundation 2021

GRI Standard Disclosure Chapter Page/Notes

GRI 2: General Disclosures 2021

The organization and its reporting practices

2-1 Organizational details About INTCO Recycling 10

2-2 Entities included in the organization’s sustainability reporting About this Report 2

2-3 Reporting period frequency and contact point About this Report 2

2-4 Restatements of information No restatements of information

2-5 External assurance Independent Third-Party Assurance Report 117

Activities and workers

2-6 Activities value chain clients/consumers government and regulatory agencies NGOs About INTCO Recycling 10

community media suppliers and other business relationships Strengthening Supply Chain Resilience 81-85

2-7 Employees Creating a Fulfilling Workplace 62-66

Summary of 2025 ESG Key Performance Indicators 108-111

2-8 Workers who are not employees No workers who are not employees -

2-9 Governance structure and composition Optimizing corporate governance 92-99

2-10 Nomination and selection of the highest governance body Optimizing corporate governance 92-99

2-11 Chair of the highest governance body Optimizing corporate governance 92-99

2-12 Role of the highest governance body in overseeing the management of impacts Strengthening ESG Management 100-102

2-13 Delegation of responsibility for managing impacts Strengthening ESG Management 100-102

2-14 Role of the highest governance body in sustainability reporting About this Report 02

2-15 Conflicts of interest Optimizing corporate governance 92-99

2-16 Communication of critical concerns Strengthening ESG Management 100-102

2-17 Collective knowledge of the highest governance body Strengthening ESG Management 100-102

2-18 Evaluation of the performance of the highest governance body Strengthening ESG Management 100-102

2-19 Remuneration policies Disclosures are omitted due to commercial confidentiality restrictions

2-20 Process to determine remuneration Disclosures are omitted due to commercial confidentiality restrictions

2-21 Annual total compensation ratio Disclosures are omitted due to commercial confidentiality restrictions

INTCO RECYCLING-2025 ESG REPORT INTCO / 112Appendix 2

GRI Standard Disclosure Chapter Page/Notes

Strategy policies and practices

2-22 Statement on sustainable development strategy Message from the Chairman 03

2-23 Policy commitments Empowering a Better Life 13-26

Digital Intelligence Empowerment and Upgrading 34-39

Practicing Green Manufacturing 40-43

Responding to climate change 44-55

Creating a Fulfilling Workplace 62-66

Strengthening the Foundation of Safety 70-72

Strengthening Supply Chain Resilience 81-85

Optimizing corporate governance 92-99

Strengthening ESG Management 100-102

Safeguarding Information Security 103-107

2-24 Embedding policy commitments Empowering a Better Life 13-26

Digital Intelligence Empowerment and Upgrading 34-39

Practicing Green Manufacturing 40-43

Responding to climate change 44-55

Creating a Fulfilling Workplace 62-66

Strengthening the Foundation of Safety 70-72

Strengthening Supply Chain Resilience 81-85

Optimizing corporate governance 92-99

Strengthening ESG Management 100-102

Safeguarding Information Security 103-107

2-25 Processes to remediate negative impacts Empowering a Better Life 13-26

Building a Trustworthy Choice 27-32

Strengthening the Foundation of Safety 70-72

Creating a Fulfilling Workplace 62-66

Diversity Equity and Inclusion 66-69

Safeguarding Information Security 103-107

2-26 Mechanisms for seeking advice and raising concerns Optimizing corporate governance 92-99

2-27 Compliance with laws and regulations Not occurred during the reporting period

2-28 Membership associations Fostering a Synergistic Ecosystem 85-90

Stakeholder engagement

2-29 Approach to stakeholder engagement Strengthening ESG Management 100-102

INTCO RECYCLING-2025 ESG REPORT INTCO / 113Appendix 2

GRI Standard Disclosure Chapter Page/Notes

2-30 Collective bargaining agreements Creating a Fulfilling Workplace 62-66

GRI 3: Material Topics 2021

3-1 Process to determine material topics Strengthening ESG Management

3-2 List of material topics Strengthening ESG Management 100-102

Economics 100-102

GRI 201: Economic Performance 2016

3-3 Management of material topics Strengthening ESG Management 100-102

201-1 Direct economic value generated and distributed Summary of 2025 ESG Key Performance Indicators 108-111

201-2 Financial implications and other risks and opportunities due to climate change Responding to climate change 44-55

201-3 Defined benefit plan obligations and other retirement plans Creating a Fulfilling Workplace 62-66

Diversity Equity and Inclusion 66-69

201-4 Financial assistance received from government Disclosures are omitted due to commercial confidentiality restrictions

GRI 202: Market Presence 2016

3-3 Management of material topics About INTCO Recycling 10

202-1 Ratios of standard entry level wage by gender compared to local minimum wage The company adheres to the principle of equal pay for equal work.

Disclosures are omitted due to commercial confidentiality restrictions

202-2 Proportion of senior management hired from the local community Disclosures are omitted due to commercial confidentiality restrictions

GRI 203: Indirect Economic Impacts 2016

3-3 Management of material topics Expanding the Philanthropic Network 74-77

Advancing Rural Revitalization 78

Strengthening Community Partnerships 79

Fostering a Synergistic Ecosystem 85-90

203-1 Infrastructure investments and services supported Expanding the Philanthropic Network 74-77

Advancing Rural Revitalization 78

Strengthening Community Partnerships 79

Fostering a Synergistic Ecosystem 85-90

203-2 Significant indirect economic impacts Expanding the Philanthropic Network 74-77

Advancing Rural Revitalization 78

Strengthening Community Partnerships 79

Fostering a Synergistic Ecosystem 85-90

GRI 204: Procurement Practices 2016

3-3 Management of material topics Strengthening Supply Chain Resilience

204-1 Proportion of spending on local suppliers Disclosures are omitted due to commercial confidentiality restrictions 81-85

INTCO RECYCLING-2025 ESG REPORT INTCO / 114Appendix 2

GRI Standard Disclosure Chapter Page/Notes

GRI 205: Anti-corruption 2016

3-3 Management of material topics Optimizing corporate governance 92-99

205-1 Operations assessed for risks related to corruption Optimizing corporate governance 92-99

205-2 Communication and training about anti-corruption policies and procedures Optimizing corporate governance 92-99

205-3 Confirmed incidents of corruption and actions taken Optimizing corporate governance 92-99

GRI 206: Anti-competitive Behavior 2016

3-3 Management of material topics Optimizing corporate governance 92-99

206-1 Legal actions for anti-competitive behavior anti-trust and monopoly practices Optimizing corporate governance 92-99

Environment

GRI 301: Materials 2016

3-3 Management of material topics Responding to climate change 44-55

301-1 Materials used by weight or volume Summary of 2025 ESG Key Performance Indicators 108-111

301-2 Recycled input materials used Responding to climate change 44-55

301-3 Reclaimed products and their packaging materials Responding to climate change 44-55

GRI 302: Energy 2016

3-3 Management of material topics Responding to climate change 44-55

302-1 Energy consumption within the organization Summary of 2025 ESG Key Performance Indicators 108-111

302-2 Energy consumption outside of the organization Summary of 2025 ESG Key Performance Indicators 108-111

302-3 Energy intensity Summary of 2025 ESG Key Performance Indicators 108-111

302-4 Reduction of energy consumption Responding to climate change 44-55

302-5 Reductions in energy requirements of products and services Responding to climate change 44-55

GRI 303: Water and Effluents 2018

3-3 Management of material topics Practicing Green Manufacturing 40-43

Responding to climate change 44-55

303-1 Interactions with water as a shared resource Practicing Green Manufacturing 40-43

Responding to climate change 44-55

303-2 Management of water discharge-related impacts Practicing Green Manufacturing 40-43

Responding to climate change 44-55

303-3 Water withdrawal Responding to climate change 44-55

Summary of 2025 ESG Key Performance Indicators 108-111

303-4 Water discharge Practicing Green Manufacturing 40-43

Summary of 2025 ESG Key Performance Indicators 108-111

303-5 Water consumption Responding to climate change 44-55

Summary of 2025 ESG Key Performance Indicators 108-111

INTCO RECYCLING-2025 ESG REPORT INTCO / 115Appendix 2

GRI Standard Disclosure Chapter Page/Notes

GRI 305: Emissions 2016

3-3 Management of material topics Practicing Green Manufacturing 40-43

Responding to climate change 44-55

305-1 Direct (Scope 1) GHG emissions Summary of 2025 ESG Key Performance Indicators 108-111

305-2 Energy indirect (Scope 2) GHG emissions Summary of 2025 ESG Key Performance Indicators 108-111

305-3 Other indirect (Scope 3) GHG emissions Summary of 2025 ESG Key Performance Indicators 108-111

305-4 GHG emissions intensity Summary of 2025 ESG Key Performance Indicators 108-111

305-5 Reduction of GHG emissions Responding to climate change 44-55

305-6 Emissions of ozone-depleting No ODS emissions during company operations and production processes

substances (ODS)

305-7 Nitrogen oxides (NOx) sulfur oxides (SOx) and other significant air emissions Practicing Green Manufacturing 40-43

Summary of 2025 ESG Key Performance Indicators 108-111

GRI 306: Waste 2020

3-3 Management of material topics Practicing Green Manufacturing 40-43

306-1 Waste generation and significant waste-related impacts Practicing Green Manufacturing 40-43

306-2 Management of significant waste-related impacts Practicing Green Manufacturing 40-43

306-3 Waste generated Practicing Green Manufacturing 40-43

Summary of 2025 ESG Key Performance Indicators 108-111

306-4 Waste diverted from disposal Practicing Green Manufacturing 40-43

Summary of 2025 ESG Key Performance Indicators 108-111

306-5 Waste directed to disposal Practicing Green Manufacturing 40-43

Summary of 2025 ESG Key Performance Indicators 108-111

GRI 308: Supplier Environmental Assessment 2016

3-3 Management of material topics Strengthening Supply Chain Resilience 81-85

308-1 New suppliers that were screened using environmental criteria Strengthening Supply Chain Resilience 81-85

308-2 Negative environmental impacts in the supply chain and actions taken Strengthening Supply Chain Resilience 81-85

Social

GRI 401: Employment 2016

3-3 Management of material topics Creating a Fulfilling Workplace 62-66

401-1 New employee hires and employee turnover Creating a Fulfilling Workplace 62-66

Summary of 2025 ESG Key Performance Indicators 108-111

401-2 Benefits provided to full-time employees that are not provided to temporary or Empowering Employee Growth 57-61

part-time employees Diversity Equity and Inclusion 66-69

401-3 Parental leave Empowering Employee Growth 57-61

INTCO RECYCLING-2025 ESG REPORT INTCO / 116Appendix 2

GRI Standard Disclosure Chapter Page/Notes

GRI 402: Labor/Management Relations 2016

3-3 Management of material topics Creating a Fulfilling Workplace 62-66

402-1 Minimum notice periods regarding operational changes Creating a Fulfilling Workplace 62-66

GRI 403: Occupational Health and Safety 2018

3-3 Management of material topics Strengthening the Foundation of Safety 70-72

403-1 Occupational health and safety management system Strengthening the Foundation of Safety 70-72

403-2 Hazard identification risk assessment and incident investigation Strengthening the Foundation of Safety 70-72

403-3 Occupational health services Strengthening the Foundation of Safety 70-72

403-4 Worker participation consultation and communication on occupational health and safety Strengthening the Foundation of Safety 70-72

403-5 Worker training on occupational health and safety Strengthening the Foundation of Safety 70-72

403-6 Promotion of worker health Strengthening the Foundation of Safety 70-72

403-7 Prevention and mitigation of occupational health and safety impacts directly linked by Strengthening the Foundation of Safety 70-72

business relationships

403-8 Workers covered by an occupational health and safety management system Strengthening the Foundation of Safety 70-72

403-9 Work-related injuries Strengthening the Foundation of Safety 70-72

Summary of 2025 ESG Key Performance Indicators 108-111

403-10 Work-related ill health Strengthening the Foundation of Safety 70-72

GRI 404: Training and Education 2016

3-3 Management of material topics Empowering Employee Growth 57-61

404-1 Average hours of training per year per employee Empowering Employee Growth 57-61

Summary of 2025 ESG Key Performance Indicators 108-111

404-2 Programs for upgrading employee skills and transition assistance programs Empowering Employee Growth 57-61

404-3 Percentage of employees receiving regular performance and career development reviews Empowering Employee Growth 57-61

GRI 405: Diversity and Equal Opportunity 2016

3-3 Management of material topics Diversity Equity and Inclusion 66-69

405-1 Diversity of governance bodies and employees Diversity Equity and Inclusion 66-69

405-2 Ratio of basic salary and remuneration of women to men The company adheres to the principle of equal pay for equal work.

Disclosures are omitted due to commercial confidentiality restrictions

GRI 406: Non-discrimination 2016

3-3 Management of material topics Creating a Fulfilling Workplace 62-66

406-1 Incidents of discrimination and corrective actions taken Creating a Fulfilling Workplace 62-66

GRI 407: Freedom of Association and Collective Bargaining 2016

3-3 Management of material topics Creating a Fulfilling Workplace 62-66

407-1 Operations and suppliers in which the right to freedom of association and Creating a Fulfilling Workplace 62-66

collective bargaining may be at risk

INTCO RECYCLING-2025 ESG REPORT INTCO / 117Appendix 2

GRI Standard Disclosure Chapter Page/Notes

GRI 408: Child Labor 2016

3-3 Management of material topics Creating a Fulfilling Workplace 62-66

408-1 Operations and suppliers at significant risk for incidents of child labor Creating a Fulfilling Workplace 62-66

GRI 409: Forced or Compulsory Labor 2016

3-3 Management of material topics Creating a Fulfilling Workplace 62-66

409-1 Operations and suppliers at significant risk for incidents of forced or compulsory labor Creating a Fulfilling Workplace 62-66

GRI 410: Security Practices 2016

3-3 Management of material topics Creating a Fulfilling Workplace 62-66

410-1 Security personnel trained in human rights policies or procedures Creating a Fulfilling Workplace 62-66

GRI 413: Local Communities 2016

3-3 Management of material topics Advancing Rural Revitalization 78

Strengthening Community Partnerships 79

Fostering a Synergistic Ecosystem 85-90

413-1 Operations with local community engagement impact assessments and development Advancing Rural Revitalization 78

programs Strengthening Community Partnerships 79

Fostering a Synergistic Ecosystem 85-90

413-2 Operations with significant actual and potential negative impacts on local communities Disclosures are omitted as it is not applicable

GRI 414: Supplier Social Assessment 2016

3-3 Management of material topics Strengthening Supply Chain Resilience 81-85

414-1 New suppliers that were screened using social criteria Strengthening Supply Chain Resilience 81-85

414-2 Negative social impacts in the supply chain and actions taken Strengthening Supply Chain Resilience 81-85

GRI 416: Customer Health and Safety 2016

3-3 Management of material topics Building a Trustworthy Choice 27-32

416-1 Assessment of the health and safety impacts of product and service categories Building a Trustworthy Choice 27-32

416-2 Incidents of non-compliance concerning the health and safety impacts of products and Not occurred during the reporting period

services

GRI 417: Marketing and Labeling 2016

3-3 Management of material topics Empowering a Better Life 13-26

Building a Trustworthy Choice 27-32

417-1 Requirements for product and service information and labeling Empowering a Better Life 13-26

Building a Trustworthy Choice 27-32

417-2 Incidents of non-compliance concerning product and service information and labeling Empowering a Better Life 13-26

Building a Trustworthy Choice 27-32

417-3 Incidents of non-compliance concerning marketing communications Not occurred during the reporting period

INTCO RECYCLING-2025 ESG REPORT INTCO / 118Appendix 2

GRI Standard Disclosure Chapter Page/Notes

GRI 418: Customer Privacy 2016

3-3 Management of material topics Safeguarding Information Security 103-107

418-1 Substantiated complaints concerning breaches of customer privacy and losses of Not occurred during the reporting period

customer data

INTCO RECYCLING-2025 ESG REPORT INTCO / 119Appendix 3

APPENDIX 3：GUIDELINES NO. 14 OF SHANGHAI STOCK EXCHANGE

FOR SELF-REGULATION OF LISTED COMPANIES—SUSTAINABILITY

REPORT (TRIAL)

Disclosure Chapter Pages

Climate change tackling Responding to climate change 44-55

Pollutant discharge Practicing Green Manufacturing 40-43

Waste disposal Practicing Green Manufacturing 40-43

Ecosystem and biodiversity protection This topic did not meet the thresholds for financial materiality or impact materiality during the reporting period.Environmental compliance management Practicing Green Manufacturing 40-43

Energy usage Responding to climate change 44-55

Usage of water resources Responding to climate change 44-55

Circular economy Empowering a Better Life 13-26

Rural revitalization Advancing Rural Revitalization 78

Contribution to the society Expanding the Philanthropic Network 74-77

Innovation-driven Empowering a Better Life 13-26

Ethics of science and technology Safeguarding Information Security 103-107

Supply chain security Strengthening Supply Chain Resilience 81-85

Equal treatment to small and medium-sized enterprises This topic did not meet the thresholds for financial materiality or impact materiality during the reporting period.Safety and quality of products and services Building a Trustworthy Choice 27-32

Data security and customer privacy protection Safeguarding Information Security 103-107

Employees Empowering Employee Growth 56-72

Creating a Fulfilling Workplace

Diversity Equity and Inclusion

Strengthening the Foundation of Safety

Due diligence Creating a Fulfilling Workplace 62-66

Communications with stakeholders Strengthening ESG Management 100-102

Anti-commerical bribery and anti-corruption Optimizing corporate governance 92-99

Anti-unfair competition Optimizing corporate governance 92-99

INTCO RECYCLING-2025 ESG REPORT INTCO / 120ASSURANCE STATEMENT

INTCO RECYCLING-2025 ESG REPORT INTCO / 121