2024
Orinko Advanced Plastics Co. Ltd.Environmental Social and
Corporate Governance (ESG) ReportContents 01
CONTENTS 01 02 03 04
Sustainable Development Making Innovations Empowering Maintaining Steady Growth Ensuring Integrity and Transparency
Management Industrial Development Upholding Value Creation Practising Normative Governance
ESG Strategy 12 R&D Innovation 20 Product Quality and Safety 29 Governance System of the Listed Company 39
ESG Governance 15 Green Products and Solutions 24 Supply Chain Management 33 Internal Audit 42
Communication with Stakeholders 16 Intellectual Property Protection 26 Customer Service 36 Business Ethics 43
Evaluation of Materiality Issues 17 Information Security 45
Digital Construction 47
05060708
Low-Carbon Transition Protecting Environment Putting People First Building Embracing Diversity and Shared Growth
About the Report 02 Reshaping Industry Ecosystems Building a Green Home Together a Defense Line to Ensure Safety Fulfilling Corporate Responsibility
Message from Chairperson 03
Strategic Carbon Neutrality Action 50 Environmental Managemen 60 Workplace Safety Management 66 Protection of Employees' Rights and Interests 72
About Orinko 04
Response to Climate Change 54 Energy Management 61 Dual Prevention Mechanism 68 Human Resources Management 73
Circular Development 58 Water Resource Management 63 Occupational Health & Safety 69 Employee Development and Training System 75
Pollution and Emissions Management 64 Employee Promotion and Career Development 77
Employee Care 78
Public Welfare and Charity 79
Appendix 80About the Report 02
About the Report
Overview of the Report Sources of Information
This Report is the second environmental social and corporate governance (ESG) The information in the Report is sourced from internal statistical statements compa-
report released by Orinko Advanced Plastics Co. Ltd. (hereinafter referred to as ny documents stakeholder surveys and interviews of Orinko."Orinko" "the Company" or "we") aiming to disclose the Company's management
actions and performance on ESG issues to its stakeholders.References for Report Preparation
Organizational Scope of the Report
The Report is prepared in accordance with the Self-Regulatory Guidelines No. 14 for
The headquarters and its branch offices and subsidiaries of Orinko Advanced Plas- Companies Listed on Shanghai Stock Exchange—Sustainability Report (For Trial
tics Co. Ltd. Implementation) the Self-Regulatory Guide No. 4 for Companies Listed on Shanghai
Stock Exchange—Sustainability Report Preparation the Self-Regulatory Guide No. 13
for Companies Listed on SSE STAR Market—Sustainability Report Preparation and
UN SDGs and also taking into account the actual situations of Orinko Advanced
Time Range of the Report Plastics Co. Ltd. at the present stage.The Report covers the period from January 1 to December 31 2024. To enhance the
comparability and continuity of the contents part of the contents may trace back to
previous years where appropriate. Disclaimer
Release Cycle of the Report The Report contains predictive statements. Except for historical facts any events and statements that may or will occur in the future (including but not limited to premis-
es objectives estimates or business plans) shall be regarded as predictive state-
The Report is released annually in parallel with the Company's annual report. The ments. However the future development of the facts or the trends may differ from
specific time is subject to the official announcement of the Company in the year. the statements due to external variables.About the Report 03
Message from Chairperson
The year 2024 marked a pivotal juncture where the sustainability concept was continued to refine the talent training system established a Painting a blueprint for sustainable development with Li Jianyi
further integrated in global economic and social development. For Orinko it's whole-lifecycle mechanism for selecting cultivating using and a global vision and fulfilling our new responsibilities as
also a crucial year where the Company honoured predefined ESG strategies retaining talents and helped employees achieve both career values a Chinese enterprise Chairperson
and forged ahead towards sustainable development. In the face of unprece- and personal growth. Meanwhile we actively engaged in charitable
dented changes and accelerated advancement towards the "carbon peaking activities and practiced our responsibilities as a corporate citizen Globally ESG development is moving from a stage of concept advo-
and neutrality" goals we firmly believe that ESG is not only a "ballast" for through student aid assistance and community care initiatives to cacy to one of implementation. Chinese enterprises are engaging in
enterprises to tackle the challenges but also a "compass" guiding high-quality make our achievements in development benefit more groups. global sustainability governance with a most positive stance.development. Upholding a global vision of "serving the world with new materials" Conquering sustainable development challenges Orinko remains committed to its responsibilities during the process
Charting the course for ESG development with a strategic vision through innovations and pioneering a new path for of internationalization.and building a new paradigm for sustainable development industry transformation On one hand we actively aligned with international ESG standards
and refined our management system and information disclosure
As an explorer and practitioner in the new materials industry Orinko is keenly As a strategic emerging industry in China new materials represent mechanism to boost our global competitiveness. On the other
aware that an enterprise's values have long transcended the economic dimen- both a frontier arena for technological innovation and a critical field hand relying on the "dual circulation" development pattern we
sion embodying instead the enterprise's harmony with the environment for green transition. In 2024 guided by the ESG concept we fulfilled established low-carbon industrial alliances with partners at home
progress with the society and alignment with the times. In 2024 we further our responsibilities by driving technological breakthroughs and
incorporated the ESG concept into the Company's strategic plans remained engaging in industrial collaboration.and abroad sharing experience in carbon reduction and driving the
green transition of global value chains. We are deeply aware that in
committed to the mission of 'facilitating customers' success with innovative In terms of the innovation of green technologies the Company the era of globalization an enterprise’s sustainability capabilities
materials and creating a green life for mankind' and built a sustainability focusing on areas like new energies and high-end manufacturing are not only the "golden name card" of its brand but also an import-
system comprising environmental social and governance dimensions. developed a number of energy-efficient and environment-friendly ant testimony to the country’s industrial competitiveness.In terms of environmental protection guided by the "carbon peaking and modified materials enabling downstream customers to develop Looking ahead we will pursue a more strategic perspective and take
carbon neutrality" goals we drove green and low-carbon transition across the lightweight and low-carbon products. For example the lightweight
materials applied to new energy vehicles lower carbon emissions more practical steps further enhancing ESG management incorpo-whole chain from R&D to production and operation. By conducting annual
greenhouse gas inventory and verification we precisely identified the major while enhancing battery duration; the environment-friendly
rating ESG requirements into our strategic decisions business
flame-resistant materials applied to electronics and electrical appli- processes and corporate culture and forming a regular and institu-sources of carbon emissions and advanced optimization of the energy struc- tion-based model of sustainable development.ture and upgrading of production processes. Meanwhile the Company further ances reduce the use of hazardous substances from the source.increased input in the R&D of renewable materials established a whole indus- These technological outcomes have not only created value for
trial chain for RCR materials and formed a closed loop for recovery recycling customers but driven the upgrading of industrial chains toward Conclusion: Building a century-old enterprise through
greener ones. ESG endeavoursand application contributing to the green transition of the economy and
society. In terms of digital transformation we advanced the building of There is no end to the path of ESG but one fresh starting point after
another. Our practices in 2024 convince us even more that only
In terms of corporate governance we consolidated the foundation of develop- "smart factories". We applied an intelligent production and manage- when an enterprise closely combines its own development with
ment through regulated and transparent operations tightened internal ment system to achieve real-time energy consumption monitoring national strategies global trends and human well-being can it
control and risk management and ensured efficient and compliant deci- dynamic resource efficiency optimization and a significant reduc- unleash enduring vitality beyond the commercial dimension.sion-making. Through diverse channels such as information disclosure and tion in energy consumption per unit of output. Meanwhile we lever-
investor surveys we built a bridge of mutual trust with shareholders custom- aged digital tools to build a carbon footprint management system Ushering into a new historical stage we will adhere to the ESG
ers and employees. We fully acknowledge that outstanding governance capa- across product lifecycles providing customers with transparent concept protecting the waters and mountains through environmen-
bilities serve as the guarantee for an enterprise's sustainable development as environmental performance data and empowering the building of a tal governance promoting a better life by fulfilling our social respon-
well as the core competence for the enterprise to win market trust. green supply chain ecosystem. sibility and staying true to our original aspiration in governance
We firmly believe that only by deeply integrating our innovation transformation. In terms of social responsibility we enabled social values through a
human-oriented approach. Employees are our most valued asset. In 2024 we gene with the ESG concept can we open up new horizons amid the Thank you!
changes and turn challenges into opportunities.2024 Environmental Social and Corporate Governance (ESG) Report About Orinko 04
About Orinko
Company Profile ?? Business Layout ??
Corporate Culture ?? Globalised Services ??
Development Course ?? Honours and Awards in ??Environmental Social and Corporate Governance (ESG) Report About Orinko 05
Company Profile
Orinko Advanced Plastics Co. Ltd. (hereinafter referred to as "Orinko") is a national The Company's main products include modified materials special-purpose engineering materials environ-
high-tech enterprise the first modified materials company listed on the STAR ment-friendly high-performance PCR materials and multifunctional membrane materials etc. and are applied in a
Market as well as one of the largest advanced material enterprises with the widest wide range of national pillar industries and emerging industries such as automotives home appliances new energy
customer coverage in China. As a new materials company operating globally Orinko consumer electronics electronic and electrical products AI healthcare rail transit home furnishing & building mate-
has set up seven production bases in Hefei Anqing Foshan Chongqing Wuhu and rials and security protection.Weifang in China and Chonburi Province in Thailand as well as a global R&D centre
in Shanghai. Through the robust production network and technical service system Committed to the mission of "facilitating customers' success with innovative materials and creating a green life for
the Company provides global customers with more precise accessible and timely mankind" Orinko provides high-quality products and exceptional services for global customers with a good reputa-
professional services and integrated material solutions. tion continuous innovations and a stable quality creating a green life for mankind.2024 Environmental Social and Corporate Governance (ESG) Report About Orinko 06
Corporate Culture
Vision
Become a global leader in the advanced materials industry
Mission
Facilitating customers' success with innovative materials and creating a
green life for mankind
Core values
Customer first open learning reform and innovation cooperation and
striving honesty and pragmatism
Organizational atmosphere
Simple interpersonal relationships candid communication openness
and inclusivenessEnvironmental Social and Corporate Governance (ESG) Report About Orinko 07
Development Course
The Company was listed as
a national enterprise tech-
The Company was qualified as a national nology center
high-tech enterprise. Shanghai Research Insti-
The Company was awarded the title of an tute was put into operation.The Company was listed
The Company was incorporated on the SSE STAR Market Orinko New Energy Company was
and officially started business in innovation-oriented enterprise. I t acquired Guangdong (stock code: 688219). established to expand into the field of
the field of new materials. The Company established a postdoctoral Yuanrong to operate in the new energy battery separators.workstation. South China market.Hefei Industrial Park Phase II was completed.Orinko Advanced Plastics Interna- Orinko Environmental Tech-
The Company completed the tional Co. Ltd. was established
joint-stock system reform. and set up a subsidiary in Thai-
nology (Anhui) Co. Ltd. was
land to promote the Company’ s established as a joint ven-
Hefei Industrial Park was completed Chongqing Orinko was estab- process of internationalization.t u r e t o d r i v e p r e s e n c e
lished to operate in the South- across the PCR industrial and put into operation. west China market. The new base in Hefei A new base in Anqing was com- chain in all aspects.was completed and pleted and put into operation.put into operation. The special nylon synthesis base
in Shandong was put into trial
operation integrating synthesis
a n d m o d i fi cat i o n i n d u st r i a l
chains.Environmental Social and Corporate Governance (ESG) Report About Orinko 08
Business Layout Food Housing
Transpor-
Clothing tation
Orinko Advanced Plastics Co. Ltd. is a national high-tech enterprise
the first modified materials company listed on the STAR Market as
well as one of the largest advanced material enterprises with the Service
widest customer coverage in China. areas
Automotives Homeappliances New energy
Modified new materials
Consumer Electronic and
electronics electrical products Healthcare
Special-purpose engineering materials
Product Products
Rail transit Home furnishing and Security application and servicesbuilding materials protection Environment-friendly high-performance PCR materials
AI Low-altitude Humanoid Multifunctional membrane materialseconomy robots
Data center Hydrogen
cooling Energy storage energy
Service
purpose
Orinko provides specialised innovative and efficient products and services for global customers creating a green life for mankind.Environmental Social and Corporate Governance (ESG) Report About Orinko 09
Globalised Services
Chongqing
Shandong
Japan
Shanghai
North America Anhui
Guangzhou
Thailand
Europe
Global R&D Centre Domestic modification R&D Separator base Overseas presence
Shanghai and production base Wuhu Anhui Southeast Asia (Chonburi Province in Thailand)
Eastern areas: Hefei and Anqing Anhui Japan and South Korea (Tokyo Japan)
Synthesis base Western areas: Tongliang Chongqing North America Europe (planned)
Weifang Shandong Southern areas: Foshan GuangdongEnvironmental Social and Corporate Governance (ESG) Report About Orinko 10
Honours and Awards in 2024
Significant awards and honors received by Orinko and its subsidiaries in 2024:
A National Specialised and
National Green Factory Sophisticated "Little Giant" A National High-Tech
Enterprise Producing Novel Enterprise
and Unique Products
A Technological Innovation
A Technology-Oriented SME Demonstration Enterprise in An Intelligent Factory
China's Petroleum and in Anhui Province
Chemical Industry
A Pilot Base (Platform)
A Green Factory in A Technological Innovation for the Commercialisa-
Guangdong Province Centre in Tongliang District tion of Technological Chongqing
Results in Hefei
An Outstanding Private One of the Top 10 New One of the Top 100
Enterprise in Anhui Province Material Industry Leaders in Manufacturers in
Anhui Province Anhui Province
One of the Top 500 One of the Top 100 Private One of the Top 100
Manufacturers in Enterprises in Foshan Manufacturers in Foshan
Guangdong Province2024 Environmental Social and Corporate Governance (ESG) Report Sustainable Development Management 11
01 Sustainable DevelopmentManagement
ESG Strategy ??
ESG Governance ??
Communication with Stakeholders ??
Evaluation of Materiality Issues ??2024 Environmental Social and Corporate Governance (ESG) Report Sustainable Development Management 12
ESG Strategy
ESG Core Concept and Strategic Objectives
With "creating innovative materials to drive green development and harmony with nature" as the ESG mission Orinko deeply
integrates the ESG concept with the carbon neutrality goal and strives to build an ESG value system featuring "environmental
sustainability co-growth with society and high-standard governance". Through systematic ESG strategic planning the Company
aims to be a benchmark of ESG practices for the global new materials industry with specific objectives including:
Short-term objectives Medium and long-term objectives
(2025-2028) (2028-2035 and before 2050)
Governance upgrade Governance benchmark
Officially put into operation the Strategy and ESG Committee The Board of Directors will continuously supervise the Company's
under the Board of Directors include the carbon neutrality goal progress towards ESG objectives include the completion of ESG
and climate risk management into the decision-making agenda of objectives into the ESG performance assessment and continuous-
the Board of Directors; significantly enhance the transparency of ly disclose progress of relevant core issues in the annual ESG
ESG information disclosure; and continuously release the annual report and TCFD report; participate in the formulation of interna-
ESG report and the special TCFD report. tional/domestic green standards and become a member of the
United Nations Global Compact.Environmental transformation
Environmental leadership
In 2028 reduce energy consumption per unit product by 15% and
greenhouse gas emissions (Scope 1 + Scope 2) by 20% when com-
pared with 2025 and increase the proportion of green products In 2035 reduce the carbon emissions in its operations by 30% from
(low-carbon modified materials PCR renewable materials) to the ESG 2025 and improve the proportion of clean energy to total energy
operating income to 30%; complete the annual greenhouse gas consumption to 30%; form a closed loop of mass circular economy
emission inventory and verification and build a carbon footprint operations and bring the proportion of renewable materials to
management system covering the whole value chain. operating income to more than 20%.Social values Social impact
Ensure a 100% employee training coverage over an 80% talent Keep the ratio of R&D input above 5% raise the self-sufficiency rate
retention rate in key posts and zero significant safety accident; of key technologies to above 80% become a core supplier of
build at least four industry-leading "demonstration factories of low-carbon materials in areas like new energy vehicles PV and
green manufacturing"; and ensure a 100% ESG compliance audit energy storage enable an employee satisfaction rate of over 90%
rate across all suppliers. and ensure annual public welfare input equivalent to 0.5% of net
profits or more covering at least five community environmental
protection and education programs.2024 Environmental Social and Corporate Governance (ESG) Report Sustainable Development Management 13
ESG Strategic ESG Strategic Vision
Directions ESG governance structure of the listed company Orinko views the ESG strategy as a key engine for the restruc-
turing of core competence leads environmental transforma-
tion with the carbon neutrality goal deepens social values with
Compliance management and transparency improvement a human-centric approach and reinforces the foundation of
development through transparent governance. Going forward
the Company will continue to strengthen the pattern of "tech-
nological innovation + industrial collaboration + globalized
operations" forge differentiated advantages in areas like new
nce
energy materials and circular economy provide global custom-
pli
a
So ers with more sustainable products and services and empower m n a
rat
io n the realization of "carbon peaking and carbon neutrality" goals
and the sustainable development of humanity.Green manufacturing
and improvement Employee development
of energy efficiency and rights protection
En ng
Circular economy and viro tur
i Responsibility for
n c
material innovation men fa customers andtal u: Low-carbon ma
n communities
and circular econom
y
Governance: T
and r s atra nt se pgi ac r c eo nll ca yb o co
ty
cent
rici
n lues
mau on o
f va
l: H rea
ti
cia o-c
d c2024 Environmental Social and Corporate Governance (ESG) Report Sustainable Development Management 14
ESG Strategic Path: Phased Implementation and Capability Building
Stage of consolidating governance Stage of accelerated Stage of ecosystem-wide collaboration
capability (2025-2028) green transition (2028-2035) and globalization (2035-2050)
Complete the setup of the Strategy and ESG Committee Ensure continued production and delivery at the green pro- Establish the "New Materials Industry ESG Alliance" jointly
under the Board of Directors develop the ESG Management duction base in Thailand establish R&D centres and produc- with industrial chain partners and peer enterprises to build
Manual and include the carbon neutrality goal and tion bases in North America and Europe and meet local a green supply chain together; push more than 80% core
response to climate risk into the Company's articles of asso- carbon emission-related compliance requirements (such as suppliers to complete carbon footprint calculation and
ciation and business processes; conduct basic ESG diagno- the CBAM of EU); improve the proportion of overseas opera- form an industrial ecosystem featuring "sharing of technolo-
sis formulate improvement plans for weak links in the gov- tions to total operating income to 20% in 2035 and build a gies mutual recognition of standards and sharing of
ernance structure and carbon emission management and globalised green supply chain. responsibilities".ensure the full coverage of ESG related systems by 2028. Establish the "Low-Carbon Materials Institute" and drive Improve the climate-related risk disclosure framework in
Improve the "core path of carbon reduction" conduct an breakthroughs in the synthesis of bio-based materials and line with ISSB TCFD and other applicable international stan-
inventory of Scopes 1-3 emissions in accordance with the high-value utilization of waste plastics in collaboration of dards engage in the formulation of international ESG stan-
ISO 14064 standards complete the setting of the carbon universities and research institutes; in 2035 realise a R&D dards realise carbon neutrality in its operations and value
neutrality strategic goal and path planning and make clear outcome commercialisation rate of over 80% and increase chain before 2050 become a member of the United Nations
the carbon reduction objectives and schedule under the the number of new patents by more than 100 at least 50% Global Compact and improve its premium in the interna-
path of limiting the rise of global temperature to 1.5°C. of which are related to green products. tional market as a green brand.ESG Support Measures and Resources Input
Resources allocation Digital tools Cultural integration
Ensure the annual ESG budget is not Research and deploy the ESG data manage- Raise the awareness of participation
less than 1% of operating income; ment platform; integrate modules for among all employees through internal
prioritise support for the R&D of green carbon emission accounting supplier ESG training themed ESG activities and
technologies building of the gover- data and employee training records etc.; publicity on the carbon neutrality goal;
nance system and development of realize real-time monitoring and dynamic include "sustainable development" into
public welfare programs and the digital optimization; and complete integration of core values and foster a top-to-bottom
platform for carbon management. data across the value chain before 2050. consensus on ESG practices.2024 Environmental Social and Corporate Governance (ESG) Report Sustainable Development Management 15
ESG Governance ESG management structure ESG job responsibilities and division of labour
At the decision-making level the Board of Directors is the
To systematically enhance the Compa- supreme decision-making body for ESG work. The Board of
ny's ESG management capabilities Board of Directors Directors and the Strategy and ESG Committee are responsible
Orinko established and improved the for approving ESG strategic directions and objectives reviewing and deciding on major ESG matters regularly supervising and
ESG work mechanism and built an ESG inspecting the progress of ESG related matters implementing
management structure comprising three the ESG work requirements imposed by the listed regulator and
levels namely the decision-making Strategy and ESG Committee (to be established) providing support for the Board of Directors in making ESG deci-
level management level and execution sions. The Company's Board Chairperson serves as the chairper-
level in 2024. Specifically at the deci- son (convener) of the Strategy and ESG Committee chairing
sion-making level the Board of Directors work of the committee.and the Strategy and ESG Committee
review the Company's ESG strategies At the management level the ESG Leading Group consists of the
and plans major policies and sustain- ESG Leading Group Company’s General Manager and other senior executives. It's
able development goals to ensure the responsible for developing the ESG management system super-vising the implementation of ESG work carrying out the ESG
corporate governance social responsi- work and reporting the progress of ESG work to the Board of
bility and environmental responsibility ESG Work office (R&D Centre) Directors and the Strategy and ESG Committee on a regular
are highly aligned with the Company's basis. The ESG Work Office was set up under the ESG Leading
long-term development objectives. At Group with the R&D centre heading the daily coordination and
the management level the ESG Leading management of ESG related matters.Group was set up the ESG Work Office
under which takes charge of the daily
coordination data management and ESG Work execution group
external communication related to ESG
work. At the execution level the ESG
Work Execution Group was established At the execution level the ESG Work Execution Group consists of Centres and functional departments Factories and business departments
across various centres functional full-time employees assigned by various centres functional departments factories and business departments of the Com-
departments subsidiaries and business CEO Office investment & securit ies Hefei factory Guangdong factory Anqing
departments coordinating the imple- centre audit & legal affairs centre quality factory Chongqing factory membrane
pany. It is responsible for the implementation of daily ESG man-
mentation of various ESG work within centre supply chain centre human product company special-purpose mate-
agement to ensure the achievement of ESG goals.resources centre R&D centre process rial company central research institute
the Company. data & IT centre Orinko Environmental Protection
Execution level Management level Decision-making level2024 Environmental Social and Corporate Governance (ESG) Report Sustainable Development Management 16
Communication with Stakeholders
Orinko attaches great importance to the concerns and demands of stakeholders. Through effective channels and mechanisms for the communication with stakeholders the Company conveys and discloses the
information stakeholders are concerned about in a timely manner and listens to their feedback and suggestions. Based on comprehensive analysis and surveys Orinko identified its main stakeholders as share-
holders and investors regulators exchanges and rating agencies customers suppliers contractors and other partners communities public society and media employees non-governmental organizations
(NGOs) and industrial associations.Main stakeholders Expectations and demands Main communication channels Main stakeholders Expectations and demands Main communication channels
Charity and public welfare Community project cooperation
Economic performance
General meetings of shareholders Protection of employee rights and interests Charity and public welfare activities
Risk management
Regular report disclosure Ecological environment protection Daily communications
Management structure Communities public
Shareholders Daily communications Resource recycling and waste disposal
(telephone email and meeting)
Operation compliance society and media
and investors (telephone email and meeting)R&D innovation
Employee health and safety Employee communication groups
Protection of employee welfare rights Corporate email box for employee feedback
Compliance management Information disclosure and interests Corporate service account for employee feedback
Legal employment Compliance training Employees Employee training and development Employee satisfaction survey questionnaires
Regulators exchanges
and rating agencies Business ethics Questionnaire surveys
Water resource management
Energy management Information disclosure
Customer privacy and information security Global service platforms Response to climate change Daily communications
Customer services Customer visits NGOs Waste management (telephone email and meeting)
Product quality and safety Quarterly operation communication meetings
Customers Legal employmentProduct performance Customer satisfaction surveys
Exhibitions
Sustainable procurement Regular evaluation and review Scientific and technological innovationand intellectual property protection International standard formulation
Business ethics Supplier conferences Product management Academic exchange activities
Suppliers contractors Responsible production Daily communications
and other partners Industrial associations Industrial association meetings(telephone email and meeting)2024 Environmental Social and Corporate Governance (ESG) Report Sustainable Development Management 17
Evaluation of To better understand stakeholders' core expectations and demands and make Orinko's ESG report more target-ed and material the Company carried out the ESG work in three stages namely issue identification issue
Materiality Issues survey and issue screening.Analysis of industrial characteristics: The Company took industrial characteristics into full consideration including environmental
issues like energy consumption and waste generation arising from the production process as well as social and governance issues like
product quality and supply chain management.Issue Alignment with standards and policies: With reference to relevant domestic and international standards macro policies and industrial
identification trends such as national environmental protection policies carbon peaking and carbon neutrality goals and industrial specifications
stage the Company identified the ESG issues related to the industry such as response to climate change energy management circular econo-
my product quality and safety and compliance operation.Stakeholder surveys: The Company collected the opinions and suggestions of internal and external stakeholders through interviews
and focus groups etc. For example it communicated with suppliers on the requirements for sustainable procurement and communi-
cated with employees on their expectations for career development and working environment to fully understand the concerns and
Issue survey expectations of different groups for ESG issues.stage
Evaluation of financial materiality: The Company analysed the impacts of various ESG issues on the Company's financial conditions
operating results cash flows financing modes and costs. For example improved energy management can lower production costs and
enhance profitability; response to climate change can help the Company avoid policy risk and market risk and ensure sustained and
stable operation.Evaluation of impact materiality: The Company evaluated the impacts of its performance in various ESG issues on the economy soci-
Issue analysis
stage ety and environment. For example circular economy practices can reduce resource waste and environmental pollution exerting positive
impacts on the society and environment; product quality and safety concern consumers' health and rights having significant impacts on
the society.Identification of material issues: Based on comprehensive analysis and ranking results the Company identified the ESG issues of
financial materiality and impact materiality to Orinko. These issues such as response to climate change energy management circular
economy product quality and safety and compliance operation became the contents highlighted in the ESG report.Issue
screening Dynamic adjustments: The Company regularly reviewed and evaluated the materiality of the issues and adjusted the scope and focus-
stage es of the material issues in time based on the changes in internal and external environments changes in stakeholder expectations and
its own developments to ensure Orinko's sustainable development strategy is consistently aligned with actual conditions.2024 Environmental Social and Corporate Governance (ESG) Report Sustainable Development Management 18
Material Issue Evaluation Matrix for the ESG Report
Evaluation Results of the Material Issue Matrix Material issues
Environmental dimension Social dimension Corporate governance dimension
7 1 Environmental20 21 compliance management
8 Product quality and safety 17 Listed company governance
4 2 Carbon neutrality strategy11 19 1 9 R&D innovation 18
Risk management
and internal control
8
3 Pollution and18 emission management 10 Supplier management 19 Anti-corruption and integrity
9
6 4 Circular development 11 Customer service 20 Privacy and data security
13
22 17 5 Water resourcemanagement 12 Labour management 21 Intellectual property protection
3 6 Response to 13 Employees' occupationalclimate change health and safety 22 Digitalisation12 14
7 Innovation of Employee training10 green products 14 and career development
16 5 15 Employee care
15
16 Public welfareand charity
Financial materiality
Impact materiality2024 Environmental Social and Corporate Governance (ESG) Report Making Innovations Empowering Industrial Development 19
02 Making Innovations Empowering Industrial Development
R&D Innovation ??
Green Products and Solutions ??
Intellectual Property Protection ??2024 Environmental Social and Corporate Governance (ESG) Report Making Innovations Empowering Industrial Development 20
R&D Innovation R&D Innovation Mechanism
The Company upholds innovations and continuously
increases input of resources in R&D to drive the develop- The Company makes constant innova- Based on pain points of the industry and customer
ment of new technologies and products. The Company has tions in new materials and new technolo- demands the Company follows market trends and gives
in place a professional and experienced R&D team which gies. Meanwhile it increases investments full consideration to customer demands. Through close
consists of experts and technical talents in multiple disci- and efforts in the R&D of cutting-edge cooperation with customers it provides targeted product
plines such as polymer materials and chemical engineer- technologies and converts novel ideas solutions to solve pain points of the industry and meet
ing. The team members possess profound theoretical into product solutions in line with cus- customer demands.knowledge and rich practical experience laying a solid tomer demands to break foreign monop-
intellectual foundation for R&D innovation. In terms of oly replace imported products and We continuously improve the serviceability and innova-
industry-academia-research collaboration the Company advance towards advanced technologies tiveness of our products and create new green material
maintains long-term and stable partnership with several in the industry. technologies.universities and research institutions. By jointly carrying
out research projects and co-establishing R&D platforms
among other means the Company integrates resources
from all sides broadens R&D perspectives and accelerates
technological innovation and the commercialisation of
research outcomes. In 2024 the Company carried out the
project of "Design Preparation and Application of
New-type High-performance Composite Polypropylene
Fibre Reinforced Composites for Automobiles" jointly with
the Anhui University.The Company has established a sound innovation incentive
mechanism to encourage employees to actively engage in
R&D innovation. The Company has set up a special innova-
tion award fund providing considerable material awards
and spiritual incentives for the teams and individuals who
have achieved outstanding results in R&D innovation to
fully stimulate their enthusiasm for innovation. Meanwhile
the Company champions a culture of innovation advocates
the innovation concept defined by openness inclusiveness
and cooperation and encourages employees to try and
innovate offering an enabling culture and environment for
R&D innovation.2024 Environmental Social and Corporate Governance (ESG) Report Making Innovations Empowering Industrial Development 21
R&D Framework R&D System
The R&D framework consists of basic research With a customer-centric approach the Company has established a three-level R&D system to ensure swift response to customer
applied research and development research. demands. It has also planned for the development of material technologies in the next 3-5 years and put in place complete lifecycle
management for product technologies.Basic research serves as the cornerstone. New theo-
ries and principles are explored to discover new
scientific knowledge and provide data support and At the core of the R&D system it focuses on
theoretical guidance for the invention and creation the R&D and disruptive innovation of frontier
of new technologies. Global strategy research technologies to establish the Company's
and frontier technology incubation technological leadership in the industry.tral
L Cenevel Research 1 Institute
Applied research is the extension to basic research It focuses on technological accumulation
and connects scientific research with the market. product platform building and generic tech-
The research on how to apply the new knowledge Core product technology nology research to provide support for the
and theories discovered in basic research to specific development and capability platform building Level 2 R&D Cen
tre Company's core technologies.goals aims to open up ways for the specific applica-
tion of the outcomes of basic research and convert
them into practical technologies.ess Un
it It is responsible for customising solutions to
L usi
n
ev Solutio
ns
ment swiftly address market demands and
Market-oriented application innovation el 3 pDevelo artment advancing the commercialisation of techno-p
Development research aims to apply basic research and solution development De logical outcomes.and applied research in product development and
production practices. It is the central link to convert
science into productivity including the research and
development of industrialisation technology and
industrial technology.2024 Environmental Social and Corporate Governance (ESG) Report Making Innovations Empowering Industrial Development 22
R&D Platform Construction
A National Enterprise A National CNAS A National-Level An Industrial Technology Innovation Centre
Technology Centre Laboratory Postdoctoral Workstation of Petroleum and Chemical Industries
By National Development By China National Accreditation By National Post-Doctoral By China Petroleum
and Reform Commission Service for Conformity Assessment Administrative Committee and Chemical Industry Federation
An Engineering Research Centre An Enterprise R&D Centre An Enterprise Technology Centre An Enterprise Technology Centre
in Anhui Province in Anhui Province in Guangdong Province in Guangdong Province
By Anhui Provincial Development By Anhui Provincial Department By Guangdong Provincial Department By Guangdong Provincial Department
and Reform Commission of Science and Technology of Industry and Information Technology of Science and Technology
An Enterprise Technology Centre A Small and Medium-sized Enterprise An Industrial A Technological Innovation Centre
in Chongqing Technology R&D Centre in Chongqing Design Centre in Hefei in Tongliang District
By Chongqing Municipal Economic By Chongqing Municipal Economic By Hefei Municipal Economic Science and Technology Bureau
and Information Technology Commission and Information Technology Commission and Information Commission of Tongliang District Chongqing2024 Environmental Social and Corporate Governance (ESG) Report Making Innovations Empowering Industrial Development 23
R&D Capability Building
Whole-process technological empowerment and one-stop material solutions:
Injection mould design Testing and certification guarantee
* Focus on the common problems of * A national CNAS laboratory
the injection moulding process
* Covering 150+ testing items
* Independent mould development
and reproduction of product defects * Four major testing standards: ISO GB ASTM and DIN
* 39+ sets of verification moulds
Intelligent simulation prediction Application engineering support Closed-loop mould verification
* Moldflow + CAE dual-core simulation platform * Multiple injection moulding machines ranging from * A 23-member moulding support team
* Simulation of performance for five major 450T to 1300T * A global service network that ensures
types of structure * Basic research on processes and reproduction of arrival at the site within 36 hours
* 90% precision in the prediction of product injection moulding defects * Fast response to market demands
performance with mould flow - structure com- * A database of 500+ injection moulding defects
bined simulation2024 Environmental Social and Corporate Governance (ESG) Report Making Innovations Empowering Industrial Development 24
Green Products Innovative materials for automotives Innovative materials for home appliances
and Solutions Focusing on light weight low carbon and environmental protection Focusing on intelligence premium quality segmentation energy safety and comfort intelligence and interaction Orinko provides conservation & environmental protection health and safety and
Upholding the mission of "facilitating cus- integrated material solutions for the 12 major systems of automotives. home aesthetics Orinko keeps advancing product innovation and
tomers' success with innovative materials upgrading and provides integrated material solutions for home appli-
and creating a green life for mankind" the ances in the whole house.Company actively responds to China's
"carbon peaking and carbon neutrality"
strategy and embeds the green concepts of Polarity injection-moulded surface for intelligent cockpits Thermoplastic powder coatings for dishwasher baskets
light weight low carbon energy conserva- Orinko pioneered the "ORINKO IMSS" injection moulding technology In the field of basket powder Orinko independently developed the resin
tion environmental protection health and which is widely applied to the injection moulding of large thin-wall surface and powder grinding technology which precisely matches the dip moulding
safety reliability and long service life into products replacing the traditional moulding process for soft surfaces like process enables replacement of imported products and takes the lead in genuine skin wrapping slush moulding and vacuum thermoforming in neg- the domestic market.the whole process of product development. ative mould and greatly boosting productivity and product competitive-
Committed to developing green and envi- ness.ronment-friendly materials the Company
has launched innovative products including Integrated long-carbon-chain nylon industry Spray-free materials
halogen-free flame-retardant reinforced
Orinko integrated the long-carbon-chain nylon synthesis and modification From mould flow analysis to customization of colour effects and from mate-nylon material high-flow thin-wall injection industrial chain achieving breakthroughs in such areas as new energy cool- rials to processes Orinko delivers domestically leading green and low-car-
moulding P-TPE translucent surface materi- ing pipes fuel pipes inlet pipes and pipe joints and breaking foreign bon spray-free materials for home appliances.al which are successfully applied in areas monopoly.like new energy vehicles and home appli-
ances addressing key industry challenges Innovative translucent bumper materials Renewable materials
and contributing to green and low-carbon Orinko created innovative translucence bumper materials which feature
development. Orinko provides renewable and low-carbon PP ABS and PC material series high light transmittance excellent light diffusion stable dimensions and across the ecosystem empowering customers to achieve the goal of reduc-
high weather resistance delivering to customers intelligent and tech-in- ing carbon emissions from products.fused products.High-gloss black PMMA alloy The first refrigerant-resistant PBT material at home
Orinko completed the 3500kJ ageing certification and was included in the Orinko passed the long-term refrigerant immersion and precipitation test
SAIC General Motors system designated for the development of exterior as well as relevant GMCC tests breaking the monopoly of imported materi-
trim panels of pillars grilles and other components of all vehicle models. als on the customer side.2024 Environmental Social and Corporate Governance (ESG) Report Making Innovations Empowering Industrial Development 25
Innovative materials for new markets Lithium-ion battery separator materials
Focusing on light weight low density chemical corrosion resistance Orinko continuously advances implementation of the lithium-ion bat-
and weather resistance Orinko continuously develops novel and tery wet-process separator project speeds up production of wet-pro-
unique formulations and processes providing innovative materials cess separators with stable quality and excellent performance focus-
for new markets such as engineering materials consumer electron- es on achieving breakthroughs in the lithium-ion battery market and
ics and new energy. strives to become a supplier of new energy materials that can pro-
duce a range of functional separators.Halogen-free flame-retardant nylon Domestic production line
The highly heat-resistant alloy technology solves the problems related to Orinko independently designed the first fully domestic 6.5-meter-wide
precipitation corrosion and moulding appearance of existing products finished product production line in China demonstrating full mastery over
guaranteeing safe connections in the new energy field. production line iteration and upgrade technologies.PC and alloy materials Aramid fibre coating materials
With the UL746C F1 certification the materials for outdoor applications Orinko independently developed the polymerization and coating technolo-
feature an RTI of 120℃ and excellent low-temperature resistance perfor- gy for para-aramid fibre. The product features high temperature resistance
mance (-50℃). They are applied in areas like communication radomes con- (with a film-breaking temperature of over 350℃) low specific gravity oxida-
nectors charging guns and batteries etc. tion resistance and sound wettability improving the energy density and
safety performance of batteries.Dielectric PPE materials Online coating process
Orinko is the only manufacturer in China that can stably supply the whole
series of low-loss PPE materials with a dielectric constant ranging from 2.6 Orinko independently designed the online coating equipment which
to 9.0 and has been recognised by multiple communication equipment achieves integrated production shortens the production cycle and boosts
manufacturers. production efficiency.Integrated high-temperature nylon materials High-temperature resistant ceramic coated separator
Orinko integrated the high-temperature nylon synthesis and modification Based on the conventional ceramic formulation Orinko improved the
industrial chain achieving breakthroughs in areas such as new energy con- heat-resistant performance of heat-sensitive auxiliary materials and
sumer electronics and LED display with products leading in the domestic increased the product's heat resistance temperature by another 20-50℃.market.2024 Environmental Social and Corporate Governance (ESG) Report Making Innovations Empowering Industrial Development 26
Intellectual Property Protection
Since its establishment Orinko has viewed intellectual property protection as a major strategy guiding its development. Building of the Intellectual
The Company has continuously improved the intellectual property management system refined intellectual property Property Management System
management policies and enhanced the capabilities in creating applying protecting and managing intellectual proper-
ties to provide strong support for its innovation and development. Orinko has established a special department for intellectual
property management as well as dedicated IP management
positions including the director of intellectual property and
intellectual property management specialists to take full
charge of the application for and management of the Compa-
ny's intellectual property rights such as patents trademarks
software copyrights. The Company has formulated and
improved a series of intellectual property management policies
including the Patent Management Measures to specify the cre-
ation application protection and management of intellectual
properties and put in place a long-term management mecha-
nism to ensure the orderly advancement of intellectual proper-
ty related work.Intellectual Property Creation
and Quality Improvement
The Company highlights intellectual property motivation and
the building of an innovation culture. In accordance with the
Patent Management Measures and relevant national regula-
tions it gives commendations and awards to the employees
who complete inventions creating a sound atmosphere for
independent innovation. Meanwhile the Company has in place
a classified and tiered system for patent protection and imple-
ments scientific tiered and classified protection of patents in
compliance with the Measures for the Tiered and Classified
Management of Patents refining management of patents and
enhancing the quality and values of patents.2024 Environmental Social and Corporate Governance (ESG) Report Making Innovations Empowering Industrial Development 27
Intellectual Part ic ipation in the
Property formulation / revision
International Deployment Intellectual Property Statistics Rights of national standards
of Intellectual Properties and Standards Formulation 382 26
Orinko actively expands international markets having As of the end of 2024 Orinko was authorised 382 intel-
applied for one patent through the Patent Cooperation lectual property rights including 274 patents on a
Treaty (PCT) system and applied for and been granted cumulative basis a testimony of the Company's strong Authorised Industrial Group
three registered trademarks through the Madrid trade- capabilities in technological innovation. The Company Patents Standards Standards
mark registration system which further enhances its capa- is also an active participant in the formulation of stan-
bility in deploying intellectual properties worldwide. Also dards engaging in the development/revision of 26 274 2 4
the Company actively engages in the formulation of inter- national standards two industrial standards and four
national standards which amplifies its influence and voice group standards and contributing to the technological
in the global industry. progress of the industry.Intellectual Property Achievements
and Honours
For its remarkable achievements in the intellectual prop-
erty field Orinko was granted many honours at the state
or local level. The Company was recognised as a "National
Intellectual Property Demonstration Enterprise" honoured
the "China Outstanding Patent Award" and "Anhui Patent
Silver Award" and named as an " Intellectual Property
Demonstration Enterprise of Guangdong Province" and an
" Intellectual Property Competitive Enterprise of Chongq-
ing" among others. In addition the Company also won
local honours including the "Patent Intensive Product of
Hefei" "Patent Navigation Project of Hefei" and "High-Val-
ue Patent Cultivation Project of Hefei" which further con-
solidated its technological leadership in the industry.2024 Environmental Social and Corporate Governance (ESG) Report Maintaining Steady Growth Upholding Value Creation 28
03 Maintaining Steady GrowthUpholding Value Creation
Product Quality and Safety ??
Supply Chain Management ??
Customer Service ??2024 Environmental Social and Corporate Governance (ESG) Report Maintaining Steady Growth Upholding Value Creation 29
Product Quality and Safety
Product Quality System Development
Orinko has obtained certifications for ISO 9001 ISO/IEC 17025 and Laboratory Accreditations
IATF 16949 quality management systems. Adhering to the require-
ments of these systems it implements comprehensive quality man- National ISO/IEC 17025 accredited laboratory
agement ensuring meticulous control over product safety and Laboratory accreditation by SAIC Motor Ford BYD JAC Motors FAW-Volk-
quality from product initiation and design to production and sales. swagen and others
Additionally a full set of production management measures has
been established to control all factors during production ensuring Joint laboratory established with Guangzhou Institute of Chemistry Chinese Academy of Sciences
product quality and delivery meet customer expectations. To effi-
ciently satisfy customer needs the Company has set up an internal
laboratory accredited as a National Enterprise Technology Center
and a CNAS-accredited laboratory providing comprehensive prod-
uct and application technology services to customers.Hardware Facilities
Leading quality inspection and R&D equipment and advanced and customized production equipment
System Standards
ISO 9001:2015 Quality Management System
IATF 16949:2016 Automotive Quality Management System
ISO 45001:2018 Occupational Health and Safety Management System
ISO 14001:2015 Environmental Management System
IECQ QC 080000:2017 Hazardous Substance Process Management System
Intellectual Property Management System2024 Environmental Social and Corporate Governance (ESG) Report Maintaining Steady Growth Upholding Value Creation 30
Eight major performance testing equipment Product Quality Policy
Orinko has established the Quality Management Manual and adheres to the quality
policy of "putting quality first making continuous improvement and providing stable
products and satisfactory services to customers".Emission testing Orinko's Commitments:
Thermal performance Photoelectric
testing performance testing
Quality First Customer-Oriented
Material reliability Mechanical Orinko regards quality as its life and Orinko is customer-centric responding
assessment performance testing always puts quality first with contin- to customer requirements quickly and
uous efforts to improve product and effectively and continuously improving
service quality. customer satisfaction.Material composition Flame retardant Zero Defects Full Employee Participation
analysis performance testing Do things right the first time. The All employees are involved in continu-
Company does not accept non-con- ous improvement and the Company's
formance produce non-conforming quality culture building to ensure the
Rheological products or allow non-conformance effectiveness of the quality manage-
performance testing to pass through. ment system.2024 Environmental Social and Corporate Governance (ESG) Report Maintaining Steady Growth Upholding Value Creation 31
Orinko enhances product quality from
the following four dimensions: Product Traceability Management
Orinko promotes product traceability management with digital transformation as the core driver. It has achieved a
Improve quality Strengthen quality
management processes performance management leap in end-to-end supply chain traceability through technological upgrades process restructuring and ecosys-
tem collaboration building an efficient and transparent technological foundation for quality control risk
Orinko has developed processes such Orinko has developed the Quality response and customer trust.as the New Product Development Performance Management Mea-
Management Process the Change sures quantifying quality objectives
Management Process the Unqualified and conducting regular assessments On the technical front
Product Management Process the and feedback.Incoming Material Inspection Manage- Orinko has fully implemented a digital traceability platform connecting the entire lifecycle data chain from raw
ment Process the Production Process material procurement production and processing warehousing and logistics to end customers. This enables pre-
Inspection Management Process and cise management through "one item one code" with traceability granularity refined to the single-piece or batch
the Product Delivery Inspection Man- level. The real-time data collection rate has improved to 98% and key node information is uploaded to the block-
agement Process covering quality
management throughout the entire chain to ensure data integrity and full-process reliability. System response speed has been significantly optimized
product lifecycle. reducing the average traceability time for quality issues from 2 hours to 3 minutes with a 100% accuracy rate in
identifying affected batches.Promote standardized On the application front
management Customer-oriented
The traceability system has expanded its coverage from core products to the Reduction in process
handling time
Orinko actively promotes standard- Orinko gains deep insights into entire product line and 180 suppliers and achieved deep integration with the
ized management including raw customer needs actively promotes PDM SCRM ERP and MES systems facilitating quality collaboration across the
material standardization process continuous improvement and con- supply chain. To meet customer demands Orinko has developed a mobile visual 50%
standardization measurement tinuously enhances the ability to
system standardization and prod- meet customer requirements. traceability interface which allows customers to instantly access over 20 key
uct development process standard- pieces of information including product inspection reports process parameters
ization. and logistics tracking simply by scanning QR codes. This has led to a 50% Customer satisfaction ratefor traceability inquiries
year-on-year reduction in process handling time and a 97% customer satisfaction
rate for traceability inquiries. Additionally traceability data is used to inform and
improve R&D and production helping to identify and optimize 15 process bottle- 97%
The Company's quality policy defines continuous improvement as the driving necks which contributed to a 1.2% reduction in product defect rate.force for constantly enhancing the ability to meet customer requirements. As a Reduction in product
key priority of Orinko's quality culture continuous improvement has been em- In the future Orinko will further integrate the traceability system with various sce- defect rate
bedded into the top-level design logic of the Company's quality strategy. narios and explore a "quality - environment - social responsibility" integrated
traceability system continuously setting the industry benchmark through trans-
parency and digital capabilities. 1.2%2024 Environmental Social and Corporate Governance (ESG) Report Maintaining Steady Growth Upholding Value Creation 32
Nonconforming Product Product Quality Enhancement Initiatives
Control and Management
In 2024 Orinko's quality management efforts achieved breakthrough progress in comprehensive quality systematization digitalization and company-wide lean
The Company has formulated procedures activities comprehensively supporting the enhancement of product competitiveness and customer satisfaction. Through systematic optimization and innova-
such as the Incoming Material Inspection tion the quality management system transitioned from traditional "post-error correction" to a "prevention-first full-process control" model leading to signifi-
Management Process the Production Pro- cant improvements in core indicators. Specifically:
cess Inspection Management Process and
the Product Delivery Inspection Manage- System Optimization Customer-Oriented
ment Process to ensure strict quality veri- and Risk Control Process Control and Efficiency Improvement and Continuous Improvement
fication for raw materials processes and
finished goods. Leveraging digital intelli- Standardization development: Digital empowerment: Complaint closed-loop management:
gent systems it has realized the preload- The Company reviewed and optimized By introducing the QMS system key process inspection effi- A customer quality interaction platform
ing of quality standards and automatic 32 quality control processes covering ciency improved by 50% defect miss rate dropped to has been launched enabling full digitali-
judgment ensuring the reliability of prod- R&D procurement production and 0.02% full-chain traceability response time compressed to zation of the "complaint - analysis - cor-
uct quality. For in-process quality control logistics closing management gaps in 3 minutes and issue location accuracy reached 100%. rection - feedback" process. The average
methods such as first inspection in-pro- high-risk areas. As a result the cover- handling time was reduced from 7 days
cess inspection and final inspection are age rate of Process Failure Mode and Breakthrough in first-time pass rate: to 48 hours the customer complaint rate
appropriately applied based on product Effects Analysis (PFMEA) increased
characteristics. Statistical knowledge and Through real-time monitoring with SPC (Statistical Process
dropped by 65% year-on-year and the
from 75% to 95%. recurrence rate of repeat issues reduced
tools are utilized to effectively detect and Control) and process parameter optimization the first-time
reduce process variation. pass rate of core products rose from 98.2% to 99.6% reach-
to below 3%.ing an industry-leading level.For any nonconforming product identified Risk prevention and control: Full employee participation:
during raw mater ial in-process or A three-level "red-yellow-green" quali- Supply chain collaboration:finished product inspections the Compa- A series of "Lean Improvement" activities
ny follows the Unqualified Product Man- ty early warning mechanism has been
Leveraging the SRM system the Company collaborated were conducted with 800 employees
established intercepting 28 potential with suppliers to build a comprehensive quality system. agement Process to isolate label and trained and 256 improvement proposals The pass rate of incoming material batches increased by
lock the items in the system. Meanwhile a major quality risks over the year and accepted directly contributing to cost 5% and production abnormalities caused by raw materials
nonconforming product review process is achieving the goal of zero major quali- savings of RMB 22.7 million.were reduced by 80%.triggered where team members jointly ty incidents.assess the quality risks of the noncon-
forming product and provide appropriate
handling recommendations from the per- In the future Orinko will deepen its "comprehensive quality system" strategy focusing on zero-defect management and quality chain construction. It will con-
spective of customer requirements. tinue to drive quality upgrades through technological innovation providing higher-value products and services to global customers.2024 Environmental Social and Corporate Governance (ESG) Report Maintaining Steady Growth Upholding Value Creation 33
Supply Chain Management
Supplier Management
To continuously optimize and improve supplier management Orinko has built systems such as SRM
QMS and MIP to implement lifecycle management of suppliers. It closely monitors suppliers' quality
and non-quality system development mobilizes resources to empower them and enhances supply
chain efficiency and flexibility ensuring stable production. Meanwhile the Company collaborates with
suppliers in technological innovation to deliver satisfying products and services to customers.Orinko has developed a series of digital intelligent management models to achieve dynamic manage-
ment of suppliers from onboarding to process management and exit. Based on category management
needs the Company has formulated differentiated supplier onboarding rules and daily management
models supplemented by an exit mechanism that promotes the survival of the fittest among supply
resources thereby realizing visualized and transparent management of operations.Supplier Assessment and Performance Evaluation
To strengthen dynamic management of suppliers the The Company's supply chain center orga-
Company has formulated and implemented the Sup- nizes monthly supplier performance eval-
plier Performance Evaluation Management Measures uations in collaboration with the quality
conducting performance assessments of raw material planning and finance departments. Eval-
suppliers. This promotes comprehensive improve- uation results are categorized as Green+
ments in supplier capabilities and efficiency across Green Yellow or Red representing Excel-
four key dimensions: product quality delivery perfor- lent Good Average and Poor respective-
mance pricing and service level ultimately ensuring ly encouraging continuous improvements
the delivery of satisfying products and services to in supplier quality and management and
Orinko's customers. ensuring stable production.2024 Environmental Social and Corporate Governance (ESG) Report Maintaining Steady Growth Upholding Value Creation 34
New Supplier Onboarding Supplier Audits
The Company develops and onboards new suppliers in accordance with the New Supplier Development and Introduction Supplier audits include onboarding audits for new suppliers
Management Measures. Suppliers that meet the requirements are included in the List of Qualified Suppliers. The principles and annual audits for existing ones.for evaluating qualified suppliers are as follows:
Onboarding Audits for New Suppliers
Pass ISO 9001 certification or pass a second-party audit with the audit methodology aligned with process
Quality audit requirements; In accordance with the New Supplier Development and Intro-duction Management Measures Orinko conducts on-site
Pass the on-site audit of its quality capability and achieve a rating of B level or above. audits of new suppliers covering production workshops DCS
system R&D management laboratory center fire safety
acceptance warehouses and logistics and transportation.For any issues identified during the audit the Company col-
Cost Meet the Company's gross margin and payment term requirements. laborates with the suppliers to review them and formulate
systematic improvement measures.Annual Audits
Deliver goods within the specified time (excluding uncontrollable factors) ensuring that the Company can
Delivery supply finished products to customers without interruption. Following the Supplier Control Procedure the Company con-
ducts on-site audits of existing suppliers. A score of 80 or
above is required to qualify as a qualified supplier. For any
product or operational system-related issues identified
Meet rapid response requirements i.e. arranging dedicated personnel within 24 hours when required. during the audit the Company collaborates with the suppli-
Execute purchase contracts and technical agreements (incorporate technical standards as an annex to the ers to revise system documents optimize rules and regula-Service
quality assurance agreement with the same effect as the technical agreement) as well as quality assurance tions and introduce new specifications ensuring that 100%
agreements (including quality objectives for the year). of the identified issues are properly addressed.Environment Suppliers certified under ISO 14001 Environmental Management System ISO 45001 Occupational Health
and
occupational and Safety Management System and IECQ QC080000 Hazardous Substance Process Management System
health will receive bonus points and be given priority among suppliers of the same grade.2024 Environmental Social and Corporate Governance (ESG) Report Maintaining Steady Growth Upholding Value Creation 35
Case 2024 Supplier Conference
Orinko held its 2024 Supplier Conference on January 19 2025 in Hefei Anhui Province. Company executives department heads and representatives from 129 core suppliers attended the event.During the conference Mr. Li Jianyi Chairman of Orinko emphasized the importance of creating value for customers together with suppliers and highlighted the need to build a healthy ecosystem.His speech covered topics such as establishing strategic partnerships promoting joint innovation fostering positive competition and quickly seizing opportunities. He also stressed the critical role
of product and technological innovation as well as Orinko's exploration and practices in digital transformation.Five awards were presented at the conference: the Best Growth Award the Outstanding Supplier Award the Excellence in Quality Award the Technological Innovation Award and the Gold Strategic
Supplier Award recognizing the contributions of outstanding suppliers. In addition a session was held to reinforce integrity awareness among suppliers and employees. In 2024 Orinko strength-
ened its collaboration with leading companies such as Midea achieving significant business growth. Looking ahead the Company will continue to focus on the automotive home appliance and
consumer electronics sectors while expanding into emerging industries such as smart home low-altitude economy and robotics. Orinko will further deepen cooperation with new energy vehicle
manufacturers to meet customers' evolving requirements for material performance while continuing to deliver high-quality reliable products and services to home appliance customers.2024 Environmental Social and Corporate Governance (ESG) Report Maintaining Steady Growth Upholding Value Creation 36
Customer Service
Building Customer Service Capabilities
Orinko is committed to providing customers with comprehensive service experience:
In-depth technical End-to-end satisfaction
support of customer requirements
Full lifecycle technical service Ser ving 1000+ customers the
assurance from mold trials to Company deeply understands
mass production and after-sales their pain points and offers profes-
support. sional solutions.Fast response Strategic collaboration
mechanism and sharing
The Company offers 24/7 quick Orinko conducts regular follow-up
response to customer demands. visits and technical exchanges to
co-build a collaborative innova-
tion ecosystem.2024 Environmental Social and Corporate Governance (ESG) Report Maintaining Steady Growth Upholding Value Creation 37
After-sales Service Customer
Satisfaction Survey
Orinko has formulated a series of management measures including the Customer Complaint Management Measures and established a CRM-based
complaint handling process ensuring full-process follow-up and closed-loop management from complaint initiation to process tracking root cause
analysis and corrective action. In 2024 Orinko conducted a customer satisfaction survey targeting strategic and
After-sales services primarily focus on handling customer complaints with the specific process outlined as follows: key customers across business lines such
as automotive smart home and struc-
tural functionalities. The survey covered
Preliminary assessment of aspects including quality delivery ser-Receive customer feedback On-site handling at Root cause
and align information anomalies and temporary vice product innovation brand value countermeasures the customer site analysis and international expansion at the cus-
Verify whether the custom- Lo cate t h e p ro b l e m i n In accordance with the 3G (Genba Thoroughly investigate root tomer end. Sur ve y results showed
er-reported issue deviates stages systematically ana- Genbutsu and Genjitsu) principle causes across the generation improvements across all dimensions
from the design intent. Clarify lyze potential loopholes dispatch after-sales engineers to the outflow and system dimen- compared to 2023.the customer's application and determine a tempo- site for handling. Recreate the cus- sions using tools such as fish-
scenario and assign dedicated rary countermeasure plan tomer's usage scenario and assist in bone diagrams and 5 Whys. The Company developed a comprehen-
p e r s o n n e l t o f o l l o w u p within 4 hours. resolving the issue. Alternatively Simulate and reproduce poten-
throughout the entire process clearly describe the problem using tial causes using the restoration sive improvement plan which included
until closure. 5W2H and initiate ITR for problem method to repeatedly verify collecting customer feedback on anoma-
improvement. and accurately identify the true l ies compil ing feedback summar y
root cause. reports conducting on-site customer
v i s i t s a n d i m p l e m e n t i n g s p e c i a l
improvement initiatives with clearly
Knowledge accumulation and Customer response and Countermeasure
continuous improvement exception handling development defined deadlines and responsible per-
sons for each task all aimed at further
H o l d m o n t h l y r e v i e w a n d With customer satisfaction The responsible department shall enhancing customer satisfaction.improvement meet ings to as the goal submit a writ- propose a corrective action plan
address high-frequency cus- ten improvement report to within 24 hours after root cause
tomer complaints. For custom- the customer and clarify confirmation ensure full problem
er application scenarios prone t h e d i s p o s a l p l a n f o r closure within 5 working days and
to issues conduct extreme suspected items. define preventive measures and
scenario simulation during the horizontal deployment strategies
design phase to reduce mis- within 7 working days.matches at the source and
ensure product alignment with
customer needs.2024 Environmental Social and Corporate Governance (ESG) Report Ensuring Integrity and Transparency Practising Normative Governance 38
04 Ensuring Integrity and Transparency Practising Normative Governance
Governance System of the Listed Company ??
Internal Audit ??
Business Ethics ??
Information Security ??
Digital Construction ??2024 Environmental Social and Corporate Governance (ESG) Report Ensuring Integrity and Transparency Practising Normative Governance 39
Governance System
of the Listed Company The general meeting of shareholders is the highest power body of the Company. The summoning proposals convening voting resolutions and meeting minutes of the general meeting of shareholders comply with the
requirements of relevant laws regulations normative documents the Articles of Association and the Rules of
In accordance with the requirements of the Company Law of the People's Republic of China Procedure for Shareholders' Meeting. The Company appoints the lawyer to attend and witness the meeting and issue the legal opinion which further guarantees the legality and validity of the meeting ensures that all share-
(hereinafter referred to as the "Company Law") the Securities Law of the People's Republic of holders enjoy equal status and fully exercise their rights and safeguards the rights and interests of minority
China (hereinafter referred to as the "Securities Law") the Rules Governing the Listing of Stocks shareholders.on the STAR Market of the Shanghai Stock Exchange and other relevant laws and regulations
Orinko Advanced Plastics Co. Ltd. continues to improve the corporate governance structure
ensuring its standardized operation. The summoning convening and voting procedures of the
Company's general meetings of shareholders and meetings of the Board of Directors and the The Board of Directors is the decision-making body of the Company. The summoning proposals convening voting resolutions and meeting minutes of the meeting of the Board of Directors comply with the provisions of
Board of Supervisors comply with the provisions of relevant laws and regulations and all rele- relevant laws regulations normative documents the Articles of Association and other relevant systems. All
vant members perform their respective rights and obligations in strict accordance with relevant directors of the Company perform their duties and obligations in a faithful diligent and prudent manner main-
laws and regulations. The Company makes all major decisions on production and operation tain timely and ongoing oversight of the Company's operation and management fully discuss various propos-
investment and finance according to the procedures and rules set forth in the Articles of Associ- als at meetings give careful deliberations and make scientific decisions with no violations of laws or regula-tions or harm to the interests of the Company and its shareholders especially those of minority shareholders.ation and relevant internal control systems. During the Reporting Period we recorded good and
independent practice and standardized information disclosure with actual conditions of cor-
porate governance in line with the requirements of normative documents on corporate gover-
nance of the listed company.The Board of Supervisors is the supervisory body of the Company. The summoning proposals convening
A governance struc- General meeting of voting resolutions and meeting minutes of the meeting of the Board of Supervisors comply with the provisions
ture of the general shareholders of relevant laws regulations normative documents the Articles of Association and other relevant systems. All
meeting of sharehold- supervisors perform the duties entrusted by all shareholders diligently and dutifully supervise the Company's financial conditions and the legality and compliance of directors and senior executives in performing their
ers the Board of
Board of Supervisors duties oversee and express opinions on major events related party transactions and financial conditions of
Directors and the the Company and safeguard the legitimate rights and interests of the Company and its shareholders.Board of Supervisors
Board of Directors
The Company's Board of Directors has four special committees namely the Audit Committee the Remunera-
tion and Assessment Committee the Strategy and Development Committee and the Nomination Committee
which were accountable to the Board of Directors. The composition of all special committees complies with the
Remuneration requirements of relevant laws and regulations as well as the Articles of Association. In the principle of diligence Strategy and Nomination Audit
Development Committee Committee and Assessment Committee Committee and dutifulness all members of special committees conscientiously perform their duties attend the meetings
in person without entrusting attendance or absence and put forward many valuable professional opinions on
In 2024 the Company held a total of four general meetings of shareholders nine meetings of the the Company's system improvement and decisions on daily operations playing their due roles in enhancing the
Board of Directors nine meetings of special committees and eight meetings of the Board of Company's supervision mechanisms and safeguarding the legitimate rights and interests of the Company and its shareholders.Supervisors.2024 Environmental Social and Corporate Governance (ESG) Report Ensuring Integrity and Transparency Practising Normative Governance 40
Construction of Communication with stakeholders (investors)
the Board of Directors
The Company continues to improve the investor relations management
The Company fully considers the age gender professional arranges special personnel to take charge of relevant matters and provides
background industrial experience and other factors of multiple communication modes such as SSE E-interactive on-site surveys
board members to optimize and diversify the composition by investors investor hotline performance presentation and announcement
of the Board of Directors. disclosure carefully listening to the opinions and suggestions of investors on the Company's production operation and strategic development.As of 31 December 2024 the Company had a total of seven
directors of which three were external independent direc-
tors accounting for 42.86% and four were non-indepen- Timely reply on SSE E-interactive
dent directors taking up 57.14%. The current board mem- On the SSE E-interactive platform the Company timely answered a total of 68
bers had professional competence in multiple fields such questions from investors in 2024;
as industries finance law accounting and human resource
management with abundant industry experience.Reception of investors in on-site surveys
The Company had a total The Company receives institutions and individual investors in on-site surveys
of seven directors and provides investors with opportunities to gain a deeper understanding of the
7 Company's operation and development;
Call answering of the investor hotline
Number of external Proportion
independent directors The Company arranges special personnel to answer calls through the investor
3 42.86% hotline so that investors can obtain necessary information in a timely manner;
Regular performance presentations
Number of non-inde- Proportion In 2024 the Company held three presentations (Orinko 2023 Annual and 2024
pendent directors First Quarterly Performance Presentation Orinko 2024 Semi-annual Collective
4 57.14% New Material Performance Presentation and Orinko 2024 Third Quarterly Perfor-mance Presentation).2024 Environmental Social and Corporate Governance (ESG) Report Ensuring Integrity and Transparency Practising Normative Governance 41
Compliance Information Disclosure Related party transactions
In accordance with relevant provisions of the Company Law of the People's Republic of China the Securi- Orinko improves its internal control systems
ties Law of the People's Republic of China the Administrative Measures for Information Disclosure of Listed and standardizes related party transactions in
Companies and the Articles of Association the Company formulates a series of management systems strict accordance with relevant provisions of
including the Information Disclosure System to further strengthen the management of the Company's the Articles of Association and the Manage-
information disclosure affairs fulfil information disclosure obligations in a truthful accurate complete and ment System for Related Party Transactions.timely manner improve the Company's information disclosure management level and information disclo- The Company signs relevant agreements for
sure quality and safeguard the rights and interests of investors. new related party transactions in a timely
manner while independent directors issue
According to the Information Disclosure Management System the Company's directors supervisors and independent opinion letters on relevant party
senior executives faithfully and diligently perform their duties ensuring that the Company discloses infor- transactions. We continue to standardize the
mation in a truthful accurate complete timely and fair manner. In addition to information disclosed as decision-making procedures for related party
required by mandatory regulations we also actively and timely disclose information that may have a sub- transactions determine transaction prices in
stantial impact on the decisions of shareholders and other stakeholders and ensure that all shareholders the principles of justice openness and impar-
have equal opportunities to obtain information without disclosing or leaking information to individual or tiality follow legal procedures and enter into
partial investors. The Company discloses various key information in a complete timely and accurate relevant agreements or contracts in accor-
manner so that public investors have a deep understanding of the Company's operation status financial dance with regulations and timely disclose
health progress of major events existing risks and future development potential. Its information disclosure information ensuring the fairness of related
not only effectively safeguards the right to know of all investors especially small and medium-sized inves- party transactions.tors but also provides reliable references for their investment decisions thereby guiding investors to make
more wise and rational choices.In 2024 the Company issued a total of four regular announcements and 76 temporary announcements to
the public.Number of regular Number of temporary
announcements announcements
4 762024 Environmental Social and Corporate Governance (ESG) Report Ensuring Integrity and Transparency Practising Normative Governance 42
Internal Audit
In 2024 the Company conducted audits on four main business processes namely sales and collection management production and warehousing management procurement and payment management and
expense management for Orinko and its branches and subsidiaries as follows:
Sales and collection audit Production and warehousing audit Purchase and payment audit Expense audit
The sales and collection audit mainly evaluates The production and warehousing audit mainly The purchase and payment audit mainly evalu- The expense audit mainly evaluates the imple-
the design effectiveness of internal control evaluates the design effectiveness of internal ates all purchase activities on the supply chain mentation of expense control policy and the
systems in the sales process and the rigor of the control systems in the production and ware- purchase platform. The audit covers such compliance of expense reimbursement proce-
execution process making the Company’s over- housing process of domestic modified material process nodes as purchase plan management dures in the expense reimbursement and
all sales activities controllable. The audit covers factories and the rigor of the execution process purchase order management payment approv- accounting process making the Company's
such process nodes as sales order manage- making the Company’s overall production and al management contract execution manage- expense management transparent and effective.ment sales process control customer manage- warehousing activities controllable. The audit ment and supplier management. According to The audit covers such process nodes as expense
ment shipment and income confirmation and covers such process nodes as production plan- the audit results the internal control manage- budget preparation expense reimbursement
leased warehouses. According to the audit ning management production process manage- ment of the purchase and payment process is approval expense accounting and travel
results the internal control management of the ment quality management warehousing man- controllable in general. expense management. According to the audit
sales and collection process is controllable in agement and asset management. According to results the internal control management of the
general. the audit results the internal control manage- expense process is controllable in general.ment of the production and warehousing
process is controllable in general.2024 Environmental Social and Corporate Governance (ESG) Report Ensuring Integrity and Transparency Practising Normative Governance 43
Construction of anti-fraud culture
Business Ethics To create a clean honest and self-disciplined cultural environment the
Company holds various forms of publicity and promotion activities:
Orinko commits to creating a clean transparent and efficient corpo-
rate environment laying a solid foundation for the Company's sus- The Company's directors supervisors and senior executives take
tainable development. the lead in complying with the Company's various systems
through practical actions and uphold honest and righteous pro-
fessional ethics setting good examples;
Construction of anti-fraud system The corporate culture of "anti-corruption and integrity" is pro-
moted in various forms including but not limited to employee
To prevent fraud risks and safeguard the legitimate rights and inter- manual website and posters;
ests of the Company and its shareholders Orinko released the
Anti-Fraud Management System in January 2024 aiming to stan-
dardize anti-fraud efforts of Orinko and its subsidiaries creating a
clean and self-disciplined corporate culture environment.New employees are required to take the anti-fraud management
The Anti-Fraud Management System requires establishing an system training and the exam;
anti-fraud work execution group responsible for organizing fraud risk
self-assessment risk prevention and training for all departments.The group is also responsible for accepting fraud reports investigat-
ing cases compiling reports and reporting the cases according to
established procedures. Illegal unethical and dishonest behaviours can be reported
through multiple channels with protective measures for infor-
mants.2024 Environmental Social and Corporate Governance (ESG) Report Ensuring Integrity and Transparency Practising Normative Governance 44
Anti-fraud measures in internal control systems Reporting channels
and informant protection
The Company assesses fraud risks establishes internal control systems and strengthens daily business management and supervi-
sion to reduce the possibility of frauds. The main measures are as follows: The Company sets up a special hotline email address and mail-box for reporting and promises to keep the reporting units infor-
mants and the report contents strictly confidential.Construction of internal control systems Declaration of interest conflicts Reporting Channels
Internal control systems are established An interest conflict declaration mechanism is
and improved for various businesses to established to enable employees to promptly
conduct closed-loop management over and truthfully declare existing or potential Telephone:
systems and processes plugging vulnera- interest conflict information of their own and 18355099271
bilities and preventing frauds. their specific related parties.Separation of incompatible duties Email:Honesty and self-discipline agreement audit@orinko.com.cn
With "internal check" at the core each
economic transaction must be handled by The Company organizes internal employees
two or more departments or personnel to sign the Honesty and Self-discipline Agree-
ment and requires suppliers to sign the Address: forming supervision and check mecha-
nisms for each other. Honest Cooperation Agreement and other Audit and Legal Service Centre in the Office Building
relevant agreements that need to be signed. at the northwest corner of the intersection of Changning
Avenue and Ningxi Road Baiyan Industrial Park
Authorized review and approval measures Hefei High-tech Zone
The Decentralization Manual is regularly Reporting and investigation measures
revised to strictly review and approve all
business activities of the Company. A fraud reporting hotline is set to ensure Informant Protectiontimely and effective information transmis-
sion with a promise to protect the privacy of
Intellectual property protection reporting units and informants. The Company prohibits any organizations or individuals from
unlawful discrimination or retaliation against personnel partici-
Its intellectual property protection mea-
sures focus on the protection of business pating in the investigations. Anyone who illegally discloses the
secrets and anti-unfair competition in Punishment measures informant’s information or retaliates against the informant will
accordance with the Administrative Regu- Once frauds are confirmed corresponding be given punishments such as warning or a dismissal according
lations for Cultural Publicity Software Use punishments will be imposed immediately. to the seriousness of the cases. Those who violate the laws will
and Intellectual Property Applications. be transferred to judicial authorities for legal proceedings in
accordance with the laws.2024 Environmental Social and Corporate Governance (ESG) Report Ensuring Integrity and Transparency Practising Normative Governance 45
Information Security
Orinko has a specialized position of Information Security Engineer responsible for information security and data privacy protection. The Company develops a series of management systems such as the "Infor-
mation Security Management Measures and the Data Centre Management Measures and carries out security protection work in five aspects namely networks host computers applications data and operations.The specific implementation is as follows:
Network Host computer
Firewall deployment Protection by Desktop protection system
antivirus software and watermarks
Efficient firewalls are deployed at the Company's network boundaries to moni-
tor and filter network traffic in real time and intercept malicious attacks and Antivirus software is installed on terminals and The desktop protection system is deployed
unauthorized access ensuring security of internal systems and data. servers and virus databases are upgraded and and desktop watermarks are set to pre vent
updated promptly to effectively identify and i l l ega l re p l i cat i o n o r d i s s e m i n at i o n o f co n -
remove malicious software preventing virus and tent on the screen further protecting confi-
malicious software intrusion. dential information.Internet behaviour management
Efforts are made to manage employees' Internet behaviours and standardize
network use preventing information leakage or security incidents caused by
improper behaviours. Domain controller management Disposal of scrapped
and password strategy information assets
In the domain controller management terminal After irreversible destruction scrapped informa-
password complexity and 5-minute lock screen tion assets are uniformly scrapped to prevent
Sangfor VPN for remote access control are set to enhance account security and prevent recovery of data in the scrapped equipment and
illegal login and operations. avoid data leakage.A safe remote access channel is built via VPN to restrict access to internal
networks ensure the security of remote access and effectively prevent infor-
mation leakage.2024 Environmental Social and Corporate Governance (ESG) Report Ensuring Integrity and Transparency Practising Normative Governance 46
Application Data Operation
Vulnerability scanning and remediation Data backup strategy Industry vulnerability intelligence monitoring and handling
Vulnerability scanning devices are imported to conduct regular Important system databases are fully backed up once a Security engineers conduct internal verification and disposal for industry
security checks on applications to promptly identify and rectify day. Business application data is incrementally backed up vulnerability intelligence in a timely manner preventing the Company's
non-compliant applications and eliminate security hazards. every day and fully backed up every seven days to ensure systems and applications from threats from known vulnerabilities.data integrity and availability and enhance the data
disaster resistance capability.Revocation of departing employees' access permission Monitoring of security log alerts
The application system access permission of departing employees Relevant security log alerts are monitored to promptly detect and handle
is revoked promptly according to the demission process to prevent security incidents so that security incidents can be responded to and
permission abuse or information leakage. resolved quickly.Data storage security
Unified identity authentication and permission control Professional data backup software is used to store the Virus handling and incident investigation
A unified identity authentication system is imported to control the backup data on a safe and reliable data backup storage
access permission of various business systems so that users can server to ensure security and reliability of the backup After discovery viruses and other security threats are handled immediately
only access the resources they require for their work which data. and investigated in a closed-loop management model to prevent recurrence
improves security and controllability of systems. of similar incidents.2024 Environmental Social and Corporate Governance (ESG) Report Ensuring Integrity and Transparency Practising Normative Governance 47
Digital Construction
Orinko upholds a digital intelligent construction strategy covering the whole business process and builds digital
intelligent factories. The specific achievements and progress are as follows:
Visual management of factories
Manufacturing platform construction Warehousing management optimization
The Company achieves data-driven intelligent visual operation at its bench-
The Company establishes a unified The Company builds a unified inventory man- mark factory in Hefei. A big data centre is composed of three major areas
manufacturing management platform agement platform enabling precision manage- namely the visitor passage area the on-site operation area and the on-site
to gradually integrate production ment and efficient operation of inventories command meeting area involving eight modules i.e. general management
warehousing and logistics systems in a through features such as purchase arrival inven- production quality control warehousing logistics equipment security &
centralized management model and tory transfer outbound shipment and storage environmental protection and lean management. Comprehensive visual
significantly improve production effi- location statement. Meanwhile warehousing effi- management covers multiple business areas including corporate publicity
ciency and management accuracy ciency is further optimized through pull produc- factory introduction quality management mixing operation extrusion
through functions such as work order tion reduced workshop inventories and precise operation colour powder centre additive centre warehousing manage-
tasks material error proofing output storage location management. ment logistics management equipment management security & environ-
reporting and historical traceability. mental protection management lean management and work safety man-
agement totalling 23 visual boards. We achieve the goal of overall visual
management through real-time alerts for key data anomalies earning
unanimous recognition from customers.Number of visual boards
Logistics management enhancement
23
The Company develops a unified shipment and in-transit monitoring platform for overall visual manage-
ment over the logistics process through functions such as arrival scheduling in-transit monitoring auto-
mated charging and order visualization significantly improving control capability and efficiency in the
delivery process.2024 Environmental Social and Corporate Governance (ESG) Report Ensuring Integrity and Transparency Practising Normative Governance 48
Technological exploration and application Achievements in digital construction
The Company actively explores the application of The company makes remarkable achievements after
AI-powered intelligent assistants pioneering a new intel- above digital construction:
ligent interactive office model. Specifically nine AI-driven
scenarios including intelligent inventory inquiry IT Efficiency improvement:
knowledge base yellow card assistant Orinko GPT and
translation assistant are launched to enhance employ- Digital tools are applied to significantly reduce redundant links in work
ees' work efficiency and customer service quality signifi- procedures improving work efficiency.cantly. Key applications include: Cost control:
Marketing terminals enable employees to inquire product Digital means helps us precisely manage resources achieving reasonable
inventories when they communicate with customers and to cost control.retrieve yellow card data when they recommend products.Business expansion:
Digital construction provides powerful support for the Company’ s prod-
uct and service innovation.Planning personnel can inquire available inventory label
dates and batch numbers through AI-powered Q&A making Honours and awards:
scientific and reasonable production and purchase plans
rapidly with no need to spend time in system switching and
complex manual inquiry. * National Manufacturing and Internet Integration Development Pilot Demonstration Project: a project on manufacturing of modified plas-
tics and capabilities of lean quality management and control
* Enterprise-level Industrial Internet Platform in Anhui Province: an industrial Internet platform on full life-cycle control of new types of
multi-functional composite materials
AI-powered knowledge base provides business personnel * Industrial Internet New Application Model Demonstration Project in Anhui Province: a new model application demonstration project on
with business personnel system use guidance base printer manufacturing of modified plastics and lean quality management
use guidance yellow card inquiries and daily IT office proce-
dure guidance. * Intelligent Factory in Anhui Province: an intelligent factory for producing modified plastics
* Top 10 Empowered Industrial Scenario Demonstration Project in Hefei: an industrial Internet demonstration project on digital collabora-
tion in high-performance fireproof material industry chain2024 Environmental Social and Corporate Governance (ESG) Report Low-Carbon Transition Reshaping Industry Ecosystems 49
05 Low-Carbon Transition Reshaping Industry Ecosystems
Strategic Carbon Neutrality Action ??
Response to Climate Change ??
Circular Development ??2024 Environmental Social and Corporate Governance (ESG) Report Low-Carbon Transition Reshaping Industry Ecosystems 50
Strategic Carbon
Short term (by 2028) Reduce the energy consumption per unit product by 15% and the greenhouse gas emis-
Neutrality Action sion intensity by 20% (Scope 1 + Scope 2) and increase the revenue share of green prod-ucts to 30%; complete the annual greenhouse gas emission accounting and verification
and establish a carbon footprint management system covering the whole value chain.Orinko's strategic goalsfor carbon neutrality
Guided by China’s "dual carbon" goals Orinko commits to becoming
an internationally competitive green new materials solution provider
through technological innovation and whole-industry-chain collabo-
ration.Medium term (by 2035) Long-term (by 2050)
Reduce the greenhouse gas emission intensity Achieve carbon neutrality in
(Scope 1 + Scope 2) by 30% compared to that in operations and value chains
2025 and encourage over 80% of core suppliers build a closed-loop ecosystem of
to complete carbon emission accounting; "material production recycling
increase the revenue share of low-carbon mate- and carbon asset operation"
rials for new energy vehicles photovoltaic mod- and grow into a global bench-
ules and energy storage devices to over 40% marking company for low-car-
and achieve large-scale production capacity in bon transition in the new materi-
circular economy businesses. al industry.2024 Environmental Social and Corporate Governance (ESG) Report Low-Carbon Transition Reshaping Industry Ecosystems 51
Orinko's carbon neutrality strategy focuses on four core areas:
Low-carbon product upgrades driven Whole-process green manufacturing
by technological innovation and energy efficiency improvement
Developing high-performance low-carbon materials Building intelligent green factories
Breakthroughs are made in bio-based resins post-consumer Energy consumption in the process of production is monitored and
recycled plastics and lightweight engineering plastics to reduce optimized in real time on the energy management platform (EMP).carbon footprints throughout the full life cycle. For example Rooftop photovoltaic system and green electricity purchase are
battery pack shell materials (over 20% weight reduction) and promoted to increase the proportion of renewable energy use to
motor insulation materials (15% higher temperature resistance) 25% by 2030 and use green electricity in all main production bases
are developed for new energy vehicles helping downstream cus- by 2050.tomers achieve emission reduction goals.Advancing the circular economy model
Advancing cutting-edge material technologies Throughout the whole industry chain of "waste plastic recycling
sorting modification and application" PCR (post-consumer
Based on the demands of emerging fields such as low-altitude recycled) material production bases are established in East
economy and robotics low-dielectric and high-thermal-conduc- China and South China with an annual production capacity of
tivity modified materials are developed to make intelligent devic- 150000 tons. Lightweight PCR-ABS for vehicles and weather-re-
es more lightweight and efficient. Materials relating to carbon sistant PCR-PP for home appliances are developed to help cus-
capture utilization and storage (CCUS) are explored to offer sup- tomers reduce emissions in their supply chains.port for industrial carbon sequestration.Globalization and policy Green and high value-added
compliance capacity building industrial structure
Addressing international carbon policy challenges Exploring core new energy materials
A dedicated team is established to track policies such as the EU The wet-process separator project is extended to lithium battery
CBAM and the US IRA and a traceable product carbon footprint separators oil-based coatings and aramid coatings aiming to
system is built to ensure that exported products meet internation- develop leading customers in the new energy industry and seize
al low-carbon standards. The Company engages in global supply opportunities amid global surging demands for new energy mate-
chain carbon emission reduction cooperation to enhance its rials.green brand premium.Phasing out outdated production capacity
Strengthening carbon emission governance optimizing production capacity layout
and disclosure
With a declining number of conventional high-energy-consump-
The carbon neutrality target is included into the ESG-specific tion material production lines green manufacturing bases are
performance assessment. The annual greenhouse gas emission established in Southeast Asia (e.g. Thailand factory) and North
data is published to disclose climate risk response and emission America to better meet overseas market demands and reduce both
reduction progress improving transparency and investor confi- emissions in transportation and impacts from trade barriers.dence.2024 Environmental Social and Corporate Governance (ESG) Report Low-Carbon Transition Reshaping Industry Ecosystems 52
Orinko' Carbon Neutrality Action Green design: advancing low-carbon
transition through technological innovation
Orinko focuses on the full life-cycle carbon reduction boosts Orinko attaches attention to the quality of raw materials at the source and
coordinated development of green design green purchase designs and develops renewable low-carbon products bio-based low-carbon
green intelligent manufacturing green logistics and green recy- products and high-quality low-carbon products throughout the whole industry
cling and forms closed-loop model from technological innova- chain building a green material system spanning from synthesis to modifica-
tion to industrial chain collaboration setting a leading example tion. The Company's high-performance steel-replacing plastic materials not
for achieving a green and low-carbon economy in the industry. only enhance the lightweight performance of terminal products but also
significantly reduce their carbon emissions providing critical support for green
transition of new energy vehicle and home appliance industries. Additionally
its self-developed spray-free materials and laser-engraving materials empower
the low-carbon economy demonstrating that its forward-looking designs
advance green manufacturing.Green purchase: co-building a closed-loop Green intelligent manufacturing: offering
model in supply chains technological support to energy management
Adhering to the green supply chain management principle Orinko In the field of green intelligent manufacturing Orinko's production bases
establishes strategic partnerships with Midea GEM and other lead- actively carry out the ISO 50001 energy management system by establishing a
ing enterprises and develops PCR (post-consumer recycled) ma- microgrid system integrating energy management system distributed photo-
terial recycling dismantling and advanced plastic processing voltaic modules and energy storage devices which enables real-time energy
through equity investments and co-investments in factories. This consumption monitoring and data-driven operation analysis. The digital tran-
closed-loop management model spanning from raw materials to sition of energy management not only increased the energy utilization efficien-
terminal products not only ensures upstream resource supply but cy but also provides scientific basis for decarbonizing the production process.also drives large-scale development of resource recycling. Further- By reference to Danaher's DBS lean management system Orinko establishes
more the Company leverages its Thailand production base to its own lean production system to build green factories through process opti-
expand PCR resource channels providing solid support for build- mization and energy management improvement initiatives. Currently its Hefei
ing global green supply chains and demonstrating its strategic and Guangdong factories have successively passed provincial and nation-
layout in international resource guarantee. al-level green factory demonstration certifications further solidifying the Com-
pany's leading position in the field of green manufacturing.2024 Environmental Social and Corporate Governance (ESG) Report Low-Carbon Transition Reshaping Industry Ecosystems 53
Green logistics: intelligent optimization
for low-carbon transportation
Case Hefei and Guangdong production bases were awarded green factories in 2024
Orinko significantly reduces energy consumption and carbon emissions in the process
of transportation by such measures as local purchase optimized transportation routes
Since the construction start of the factories Orinko has carried out friendly sustainable develop- and prioritized use of new energy vehicle models. Meanwhile the Company adopts the
ment concepts of low carbon energy efficiency and environmental protection in design and proj- WMS (Warehousing Management System) for automated and unmanned warehouse
ect construction. With green development and circular economy as its main development direc- operations improving the space utilization rate of warehouses the inbound and out-
tions the Company commits to building a "green manufacturer" to advocate green manufactur- bound efficiency of goods and the intensive use of land. We apply AGVs (automated
ing concept and boost comprehensive green development. guided vehicles) palletizing robots conveyor belts and other intelligent devices in
automated cargo handling and sorting making logistics operations more automatic
and efficient.At the organizational level the Company set up a green factory promotion body consisting
of the promotion committee the promotion office the promotion backbone group and the
green factory construction assessment group.Full life-cycle carbon reduction: a closed-loop system
from materials to value chains
At the institutional level the Company developed a range of management systems devel-
oped the green factory performance assessment management system and defined the Orinko actively responds to national and market policies by establishing a carbon foot-
duties and the target-based assessment accountability system. print accounting platform. By the full life-cycle assessment method stated in the ISO
14067 standard the Company uses professional software such as eFootprint LCA for
Experts and databases including CLCD ELCD and Ecoinvent to assess product carbon
footprints and compile reports in a bid to track and monitor environmental emissions
At the practical level the Company satisfied the green factory assessment requirements in from raw material acquisition through the whole production process and adopt target-
terms of building and lighting infrastructures ISO management system certification energy
resource input products environmental emissions and performance. ed emission reduction measures in key links. In 2024 we completed the carbon
accounting for over 200 product series in PP ABS and PC categories and the third-party
carbon footprint evaluation for two product series boosting the construction of a prod-
uct carbon footprint database by both internal and external efforts. According to the
ISO 14067 standard the Company organized greenhouse gas accounting and carbon
reduction assessment management across its production bases to have comprehen-
sive understanding of its own greenhouse gas emissions identify key emission reduc-
tion processes and formulate and implement effective carbon reduction measures
laying a solid foundation for its sustainable development.2024 Environmental Social and Corporate Governance (ESG) Report Low-Carbon Transition Reshaping Industry Ecosystems 54
Response to Climate Change
Governance Strategy Risk management
Orinko integrates climate change governance into its top-level Admit the progress toward "dual carbon" goals Orinko formulates Orinko establishes a full life-cycle climate risk manage-
design by establishing a climate governance system that is short-term medium-term and long-term strategic plans against climate ment system based on the TCFD (Task Force on
supervised by the Board of Directors and led by the manage- change focusing on synergy between green technological innovation Climate-related Financial Disclosures) framework to iden-
ment with cross-departmental collaboration. The Board of and emission reduction on full value chains. Through systematic evalua- tify the impacts of physical risks (such as extreme weath-
Directors proposes to establish a Strategic Development and tions on climate-related risks and opportunities the Company optimizes er) and transition risks (such as policy tightening) on its
ESG Committee to define the decision-making rights and carbon footprints of products throughout the full life cycle explores operations and quantify their financial relevance. In
responsibilities for climate-related issues and develop climate alternative solutions for clean energy and boosts technological innova- response to extreme weather policy and regulations
policies and execution mechanisms as a whole. Each produc- tion in green processes reducing the carbon emission intensity in opera- updates technological disruptions and other potential
tion base has a climate action team which incorporates tions and value chains in an all-round way. We deeply integrate the risks the Company formulates emergency plans and
low-carbon goals into performance evaluation to fulfil climate low-carbon concept into our product R&D and business models devel- keeps optimizing its resource allocation capabilities. By
responsibilities throughout core processes such as R&D pro- op high value-added and environmentally friendly materials and em- taking advantage of its green financial tools and low-car-
duction and supply chains. The Company holds regular train- power low-carbon transition in downstream industries building a bon technology reserves we become more adaptive to
ings and publicity programs on climate issues to enhance em- climate resilience competitiveness. In the implementation of the strate- transition risks such as carbon pricing mechanisms and
ployees' awareness of climate change and continues making its gic plans the Company lays emphasis on cooperation with stakehold- changes in market preferences.governance framework more complete and effective through ers and participates in discussions on industry initiatives and policies to
the stakeholder communication mechanism. jointly build a climate-friendly industrial ecosystem.2024 Environmental Social and Corporate Governance (ESG) Report Low-Carbon Transition Reshaping Industry Ecosystems 55
Climate-related risks and countermeasures (partial)
Risk type Risk description Countermeasures Impact degree Time range
Global warming leads to frequent extreme weather conditions such 1. Establish climate risk maps and screen physical risks in core production bases and supply chain nodes; Lead to potential local production capacity
as high temperatures heavy rains and typhoons which may affect
Entity risk 2. Strengthen disaster-resistance capabilities of infrastructures such as flood control facilities backup energy fluctuations in the short term require
Short term (1-3 years)
the operational stability of production bases cause equipment systems; continuous investments in resilience build- Long term (more than 5 years)
damage disrupt raw material supply or delay logistic delivery. 3. Sign flexible supply agreements with major suppliers and establish emergency stocks. ing in the long term.Transition risk Global carbon peak and carbon neutrality policies and increasingly
1. Establish a policy research team to Keep track of global carbon policy trends;
in policy strict industry emission standards such as the EU's CBAM and the
Increase compliance costs in the medium
2. Optimize the carbon footprint accounting system for products and develop purchase of low-carbon raw Medium term (3-5 years)
compliance expansion of the domestic carbon market may increase carbon
term avoid market access barriers through
materials and green manufacturing processes; Long term (more than 5 years)
compliance costs and carbon tariffs on exported products. technological upgrades in the long term.3. Hedge compliance costs through carbon offsetting and carbon trading tools.
1. Increase investments in R&D to develop low-carbon modified materials such as renewable PP ABS and Record declined sales volume of part of
Transition risk Conventional high-carbon materials are under the pressure of
PC series materials. conventional products in the medium term
substitution with low-carbon ones such as degradable materials
in technological 2. Establish a whole industrial chain of "consumer product recycling dismantling crushing sorting pelletiz- achieve a differentiated competitiveness
Medium term (3-5 years)
PCR materials and bio-based materials. Lagging technological itera- ing and modification" in PCR material production bases.substitution through technological innovation in the long Long term (more than 5 years)tions may lead to the loss of market shares. 3. Jointly build a green supply chain together with customers in new energy vehicle home appliance and term expected an increase of 10%-15% in
other industries to pass low-carbon product certifications. new revenue.
1. Establish a raw material price monitoring mechanism to reduce the impact of price fluctuations through
Transition risk Climate change intensifies price fluctuations of oil and other hedging and other tools;
Suffer an impact on profits from cost fluctua-
conventional raw materials affecting the stability of production tions in short term optimize supply chains Short term (1-3 years)
and raw material costs. Meanwhile the supply system of low-carbon raw materials 2. Establish production bases through co-investment with upstream PCR enterprises in East China and to gradually alleviate the impact in the
fluctuations such as bio-based resins remains immature so there may be South China to ensure stable supply of low-carbon raw materials; medium term rely on low-carbon materials Long term (more than 5 years)
purchase risks. 3. Optimize purchase strategies and increase the proportion of local purchase to reduce supply chain risks. for substitution in the long term.Transition risk in 1. Establish project-specific working groups to monitor the progress in real time and coordinate resources;The progress of new construction projects is affected by such Have a potential impact in the implementa-
project progress factors as climate-related approvals and supply chain delays which 2. Strengthen climate resilience cooperation with equipment suppliers raw material suppliers and construc- tion pace of the second growth curve in the Medium term (3-5 years)
below may result in the lag of production capacity release and the loss of tion units and formulate emergency plans; medium term reduce the dependence on a
expectation market opportunities. 3. Simultaneously advance the development of existing businesses and the R&D of cutting-edge technolo-
single project through diversified layout in
gies to diversify risks. the long term.Core The brain drain of technical personnel or the leakage of core 1. Sign confidentiality agreements with core technical personnel;
Have an impact on R&D efficiency in the
competitiveness technologies lead to lagging R&D of low-carbon materials making it
short term lead to declined market competi- Short term (1-3 years)
difficult to meet customer demands for high-performance and 2. Implement employee shareholding plans to bind the interests of core talents; tiveness in the medium term require contin- Medium term (3-5 years)
risk low-emission products. 3. Establish an R&D achievement protection mechanism to strengthen technical barriers based on patents. uous investments in talent and technologi-cal reserves in the long term.Core competitiveness risks : Risks are classified based on the TCFD framework and industry characteristics focusing on entity risks (physical impacts) and transition risks (policy technology and market changes)
while including climate risks relating to core competitiveness.2024 Environmental Social and Corporate Governance (ESG) Report Low-Carbon Transition Reshaping Industry Ecosystems 56
Climate-related opportunities and countermeasures (partial)
Opportunity
type Opportunity description Countermeasures Impact degree Time range
China's 14th Five-Year Plan and the Guiding Opinions on Promoting High-Quality
Development of the Petrochemical and Chemical Industries During the 14th 1. Focus on R&D of high-end modified materials and make breakthroughs in special Record the revenue share of high-end products
Policy-driven Five-Year Plan Period explicitly support the development of high-end modified
engineering plastics (such as long-carbon-chain nylon PEEK) bio-based materials of more than 25% in the medium term (3-5
opportunities materials bio-based materials and low-carbon materials and requires that domes-
and other "bottlenecks" accelerating the process of import substitution; years) grow into a core beneficiary of import Medium term long term
tic chemical new materials meet 75% of domestic demands by 2025 indicating a 2. Participate in developing industry standards strengthen cooperation with govern- substitution in the long term (more than 5
clear import substitution trend. China's new materials industry scale is expected to ment departments and industry associations and strive for policy subsidies and years) and expect to contribute additionally
exceed RMB11 trillion by 2025 and reach RMB23.5 trillion by 2029 with a com- green credit support. 15%-20% of profits.pound annual growth rate of approximately 21%.Explosive Global new energy vehicles and energy storage markets are experiencing rapid
1. Accelerate the implementation of the wet-type separator project and develop Increase the revenue share of new energy mate-
growth. In 2024 China's lithium battery market recorded 1175 GWh of shipments high-performance lithium-ion separator materials covering energy storage power rials by more than 10% in the medium term (3-5
demands for and the demand for lithium battery separators is expected to reach 26.7 billion batteries and 3C fields; years) develop the business into the second
new energy Medium term long termsquare meters by 2025. The Company is steadily advancing its wet-process separa- 2. Develop lightweight materials for new energy vehicles such as battery pack shell growth curve in the long term (more than 5
materials tor project aiming to become a leading supplier of new energy materials. materials and motor insulation materials as well as weather-resistant materials for years) and expect an increase of 5-8 percentage
photovoltaic modules to retain core customers. points in the gross profit margin.During the development of the circular economy driven by global "dual carbon" 1. Expand the production capacity of PCR materials and develop high value-added Continuously increase the revenue of circular
Circular goals there are increasing demands for PCR (post-consumer recycled plastic) recycled material products such as lightweight PCR-ABS for automobiles and weath- economy in the medium term (3-5 years) form a
economy and materials in automobile and home appliance industries. The Company establishes er-resistant PCR-PP for household appliances; closed loop of "production recycling modifica-
low-carbon a complete industrial chain covering "consumer product recycling dismantling
Medium term long term
tion and application" in the long term (more
products crushing sorting pelletizing and modification" and builds joint venture production
2. Provide carbon footprint accounting services for customers jointly build green
than 5 years) and expect to contribute 10%-15%
bases in East China and South China with a total annual capacity of 150000 tons supply chains and help downstream customers achieve ESG goals. of profits.covering PP ABS PC and other recycled materials.2024 Environmental Social and Corporate Governance (ESG) Report Low-Carbon Transition Reshaping Industry Ecosystems 57
Opportunity
type Opportunity description Countermeasures Impact degree Time range
Indicators and targets
With reference to mainstream international standard
With the increasing demands for low-carbon materi- 1. Make business presence with its Thailand base at the Gradually increase the proportion frameworks such as TCFD and SASB Orinko builds a
als in new energy vehicle and home appliance core gradually expand into markets in North America of overseas business revenue in the medium term (3-5 years) grow into climate performance management indicator system
International markets across Southeast Asia North America and and the EU countries and meet local requirements for Medium term
market Europe the Company's Thailand factory phase I has low-carbon compliance (e.g. EU CBAM);
a global supplier of green materials covering carbon emission intensity energy use
long term
expansion come into operation. In 2024 the Company recorded
in the long term (more than 5
2. Develop localized production and supply chain years) and expect to earn more efficiency proportion of renewable energy and other rapid growth in overseas revenue and planned to layout while reducing transportation emissions and
sales offices in North America and Europe. than 20% of revenue from interna- core dimensions. The Company sets phased emis-impacts of trade barriers. tional markets. sion reduction targets in a scientific and practical
manner based on process optimization equipment
upgrades circular economy model innovation and
With surging demands for lightweight high-strength Continue to increase business other measures in the pathway toward carbon neu-
and low-dielectric materials in emerging industries
Technological 1. Establish a specialized R&D team to focus on devel- revenue from emerging fields in trality and conducts regular evaluations and disclos-such as intelligent connected vehicles low-altitude
innovation oping materials for cutting-edge fields such as low-alti- the medium term (3-5 years) form economy (drones) and robots the Company has Medium term tude economy and robots; technological barriers in the long es to stakeholders to make climate actions increas-and product developed lightweight PC materials for drones and long term
upgrades electromagnetic shielding materials for robots 2. Advance AI-assisted R&D and accelerate product
term (more than 5 years) and ingly more transparent. Furthermore we take an
achieving mass production of relevant vehicle iterations to seize the initiative in emerging markets.expect to achieve revenue increase active part in climate action initiatives commit to
by 10% to 15%.models. aligning with global temperature control goals and
carry out climate actions through dynamic and itera-
tive indicator management contributing measurable
value to stakeholders.Green With energy efficiency upgrades of the manufacturing Reduce energy consumption costs
manufacturing industry driven by China's "dual-carbon" policy the
1. Promote energy-saving technologies such as photo-
in the short term (1-3 years) build
Company introduces lean management and digital voltaic power stations and green electricity purchase Short term
and energy tools (e.g. MES WMS systems) to build intelligent to reduce carbon emissions in the production process;
zero-carbon manufacturing medium term
efficiency demonstration factories in the long green production lines with the goal to reduce the 2. Enhance the resource utilization rate through intelli- long termterm (more than 5 years) enhance
enhancement energy consumption per unit product by 15% by 2028 gent upgrades to reduce waste discharge. the brand's ESG competitiveness.compared with that in 2025.Opportunities are classified based on policy guidance market demands technological innovation and internationalization strategies focusing
on business segments highly related to low-carbon transition such as new energy materials circular economy and green manufacturing.2024 Environmental Social and Corporate Governance (ESG) Report Low-Carbon Transition Reshaping Industry Ecosystems 58
Circular Development Content certification
of renewable materials
Purchase of recyclable resources
As the EU's Green Deal initiative requires 100% recyclable
plastic packaging by 2030 and China's 14th Five-Year Plan
Under China's "dual-carbon" policy the proportion of recycled material manu- for Circular Economy Development targets a recycling
facturers shows a gradual upward trend. Orinko partners with domestic waste industry output of RMB5 trillion by 2025 global supply
household appliance and automobile dismantling plants to make business chains are facing increasingly stringent requirements for
layout in South China and East China which greatly shortens recycling chains the use ratio of recycled materials. For instance brands like
reduces recycling costs and improves the PCR recycling system. In 2024 the Apple and Dell require over 30% of recycled plastics in their
Company launched product portfolios involving PP ABS PA PBT PE PC PPO products by 2030. Orinko commits to "building value
AS HIPS and GPPS and provided services mainly to manufacturers of home chains for circular economy and driving green material
appliances automobiles electric vehicles and electric tools. upgrades" passes GRS UL 2809 ISO 14021 and other inter-
national authoritative certifications and creates a
Utilization of renewable resources closed-loop process of "recycled materials → green prod-
ucts → low-carbon supply chains" in line with global
By strengthening R&D and manufacturing of recycled materials in terms of quali- market access standards gaining a first-mover advantage
ty and process the Company cooperates with many brands to widely apply its in "green competitiveness".products in electronic appliances automobiles and other fields.Quality Process
From sorting crushing high-efficiency Under intelligent and IT-based Certification Number Core value
cleaning to composite sorting and puri- control the whole PCR production
fication the whole operation process process becomes an integrated GRS 62 Make efforts in environmental protection social responsibility and business development to
complies with the standards. Through manufacturing procedure guaran- drive global industrial chains toward a low-carbon circular model.melting in high temperature impurities tee system incorporating waste
are further removed then the materials plastic sorting crushing high-effi- Quantify carbon emission reduction data supporting customers' carbon offset claims and help
are pelletized cooled and homoge- ciency cleaning composite sorting UL 2809 48 companies reach the requirements of recycled material utilization regulations of all countries
nized into finished products which are and modified material pelleting. while avoiding trade barriers.high-quality PCR materials and can
replace all or part of new materials in
ISO 14021 68 Boost technological innovations in PCR products and enhance transparency and credibility modified formulas. while avoiding trade barriers.OBP 1 Reduce marine plastic pollution protect biodiversity and advance the circular economy while mitigating policy risks.2024 Environmental Social and Corporate Governance (ESG) Report Protecting Environment Building a Green Home Together 59
06 Protecting Environment Building a Green Home Together
Environmental Management ??
Energy Management ??
Water Resource Management ??
Pollution and Emissions Management ??2024 Environmental Social and Corporate Governance (ESG) Report Protecting Environment Building a Green Home Together 60
Environmental Development of the Environmental EnvironmentalManagement System Emergency Management
Management To comprehensively enhance the Company's environmental protection Orinko's major production bases have integrated environmental risk prevention
efforts and continuously strengthen environmental risk management and control into routine enterprise management continuously enhancing their
Development of the Environmental ensuring compliance with relevant laws regulations and standards in capacity to prevent environmental risks and reinforcing pre-incident prevention production and operations Orinko strictly adheres to the requirements efforts. The Company has established a comprehensive emergency response
Management System of the Environmental Protection Law the Environmental Impact Assess- mechanism for environmental incidents formulating the Emergency Plan for ment Law and the Law on the Prevention and Control of Environmental Abrupt Environment Incidents as a guiding document. It has also set up a
Pollution by Solid Waste. It has formulated documents such as the Haz- response team for environmental emergencies and concerns fully responsible for
Orinko's major production bases strictly comply with the Envi- ardous Waste Management System and the Methods for the Routine ensuring swift accurate and efficient emergency handling within the factories.ronmental Protection Law of the People's Republic of China the Administration of Environmental Protection Collection System as opera- These measures aim to minimize mitigate or eliminate casualties and property
Regulations on the Administration of Construction Project Envi- tional guidelines. A dedicated Environmental Health and Safety (EHS) losses caused by unexpected environmental incidents. Additionally the Company
ronmental Protection and other relevant laws and regulations. department is established staffed with full-time personnel responsible conducts regular emergency drills to strengthen the emergency response capabil-
The Company continues to improve its environmental manage- for supervising and guiding environmental management efforts to ities and identify potential environmental risk points followed by assessment and
ment system through system development and compliance ensure effective operation of the Company's environmental manage- rectification while reinforcing routine environmental monitoring.management identification of environmental factors and risk ment system and continuous improvement of its environmental perfor-
control as well as resource conservation and recycling. Orinko mance thereby reducing the impact on the public and the environment.has successfully obtained ISO 14001 Environmental Management
System certification. In line with the Environmental Protection
Target Responsibility System the Company has set environmen- Environmentalincident
tal goals and indicators which are then allocated to specific
departments. Detailed plans for training drills and hazard occurrence rate in 2024 0
inspections are developed for each target and indicator to con-
tinuously enhance environmental performance. Through scientif-
ic planning full participation and continuous improvement
Orinko effectively enhances its environmental management
achieving coordinated development of both economic and envi-
ronmental benefits.During the construction of new facilities Orinko strictly imple-
ments the "Three Simultaneities" policy for environmental pro-
tection in construction projects ensuring that environmental
protection facilities are designed constructed and commis-
sioned simultaneously with the main project. The Company
enforces rigorous standards throughout project design and regu-
latory submission environmental acceptance and pollutant
discharge permit processing. It also ensures timely completion of
environmental impact declarations and the preparation of relat-
ed project documentation for public disclosure.In 2024 the Company recorded no environmental pollution inci-
dents and received no environmental complaints.2024 Environmental Social and Corporate Governance (ESG) Report Protecting Environment Building a Green Home Together 61
Energy Management Development of the Energy Management System
To reduce energy consumption and improve energy efficiency Orinko's major production bases have developed the Energy Manage-
Energy Energy saving & efficiency ment Manual as a guiding document in accordance with the ISO 50001 Energy Management System standard and tailored to the Com-
Management improvement and clean production pany's specific context. The manual defines the Company's energy management policy and objectives. To ensure effective implementa-
Policy tion the company leadership coordinates with relevant departments to carry out the Energy Management Implementation Plan estab-lishing practical measures and actions and ensuring their execution.Energy saving & efficiency
improvement Energy-saving Initiatives and Outcomes
In its energy use Orinko seeks to minimize
waste and continuously improve utilization Real-time energy consumption monitoring and analysis
and operational efficiency thereby reducing
energy costs and improving overall perfor-
mance. Through the workshop energy man-
agement system Orinko collects Identify equipment operation patterns and
energy consumption data at work- schedule off-peak electricity usage
shop production line team and Monitor the power supply system to detect
equipment levels and calculates abnormalities in real time
Clean production tota l e n e rg y co n s u m pt i o n a n d Set energy efficiency benchmarks with
energy intensity as dual-control indi- over-limit alerts and benchmark analysis
The Company is committed to complying with cators. By comparing collected data
energy conservation laws and regulations with historical production data the
actively adopting high-efficiency and ener- system identifies anomalies and
uncovers potential energy-saving Enable real-time energy monitoringgy-saving equipment and technologies and
meticulously organizing energy management opportunities continuously optimiz-
Automatically generate energy reports
to reduce energy consumption and green- ing energy use efficiency.Integrate with the MES system to support
intelligent manufacturing networking
house gas emissions thereby fulfilling its social
responsibility and obligations in environmental
protection.2024 Environmental Social and Corporate Governance (ESG) Report Protecting Environment Building a Green Home Together 62
Equipment operation optimization
The Company enhances energy efficiency through multiple measures including identifying equipment operation patterns to
schedule off-peak electricity usage monitoring the power supply system to detect anomalies in real time and setting energy
efficiency benchmarks with over-limit alerts and benchmark analysis.Rooftop photovoltaic power generation
Distributed photovoltaic systems have been installed
at all major production bases of Orinko increasing the
use of renewable energy.Hefei Factory Chongqing Factory Idle rooftop space on industrial buildings is utilized for PV
panel installation without occupying land resources;
Reduction in emissions of CO2 SO2 NO2 and particulate
matter;
Power generated is primarily self-consumed with excess elec-
tricity fed into the grid effectively reducing peak-hour power
loads;
During staggered electricity consumption the Company ben-
efits from government policies that prioritize the consump-
tion of green energy such as solar power thereby reducing
Guangdong Factory Anqing Factory the impact of staggered power rationing and outages.2024 Environmental Social and Corporate Governance (ESG) Report Protecting Environment Building a Green Home Together 63
Water Resource Management
Development of the Water Resource Water-saving Initiatives Water-saving Publicity
Management System
Orinko has established a water-saving and water-consuming man- Water balance testing The Company's water-saving and water-consum-
agement steering group led by the general manager with depart- and rational water use assessment: ing management steering group has organized
ment and workshop heads serving as team members and desig-
nated personnel responsible for daily management of water-sav- Regular water balance testing is carried out to fully
multiple water-saving publicity campaigns for
employees distributing brochures and sharing
ing efforts. To ensure effective implementation the Company has understand the Company's water supply network and water-saving tips via the internal network. These
introduced specific responsibility systems for water conservation water usage status providing a scientific basis for ratio-nal water use. The test results help identify issues in efforts aim to embed water-saving awareness leaders departments and officers with clear responsibilities deeply into employees' mindset turning conser-
assigned to individuals. A comprehensive set of water conserva- water usage enabling targeted optimization and vation into a conscious and voluntary habit. Em-
tion management regulations has been established including the improvement measures to enhance both efficiency and ployees are encouraged to report any leaks drips
pipe network inspection system the water-saving and water-con- effectiveness. or abnormal water usage promptly to the man-
suming statistics system and the reward and punishment system agement for immediate repair.for water-saving quota management. To incorporate water-saving
as a mid- to long-term component of corporate management Water recycling systems:
Orinko has formulated an annual water conservation plan and the
14th Five-Year Plan for water conservation. During production cooling towers circulation tanks and
other equipment are used to facilitate water recycling
and reuse.2024 Environmental Social and Corporate Governance (ESG) Report Protecting Environment Building a Green Home Together 64
Pollution and Emissions Wastewater During its production process the Company generates circulating cooling water and domestic
Management wastewater. Wastewater is treated through a dedicated sewage treatment system with regular monitoring of indicators such as chemical oxygen demand (COD) biochemical oxygen demand
(BOD) ammonia nitrogen and total phosphorus to ensure compliance with discharge stan-
At its major production bases Orinko ensures that the dards. Orinko centrally collects and treats wastewater using a combination of physical chemi-cal and biological methods ensuring compliance with national and local discharge standards
emissions of exhaust gas wastewater solid waste and before discharge.noise generated during the manufacturing process all
comply with environmental protection requirements.Exhaust gas
During the extrusion blending coloring and additive processes exhaust gases such as
particulate matter hydrogen chloride and non-methane total hydrocarbons may be gen-
erated. The Company treats them properly using activated carbon bag-type dust collec-
tors zeolite rotors combined with RTO and pulse dust collectors before discharge in
compliance with relevant standards.Solid waste
During production processes such as blending and material feeding as well as in employees'
daily activities the Company generates general solid waste (e.g. packaging materials waste
paper) and hazardous solid waste (e.g. spent activated carbon waste mineral oil). Orinko
keeps detailed records and statistics on the quantities types and disposal of solid waste and
regularly inspects and evaluates the treatment process. General waste and hazardous waste
are stored separately in dedicated temporary storage areas and are collected centrally before
being transferred at regular intervals to qualified third-party entities for compliant disposal.Noise
The Company's major sources of noise include production machinery ventilation systems and
transport vehicles. To reduce noise technical measures such as installing vibration-damping pads
on equipment are implemented. When upgrading or replacing equipment low-noise models are
prioritized. The Company also engages qualified third-party institutions to regularly monitor envi-
ronmental noise levels. Effective noise reduction measures are adopted to ensure that noise
emissions comply with national and local environmental protection standards.2024 Environmental Social and Corporate Governance (ESG) Report Putting People First Building a Defense Line to Ensure Safety 65
07 Putting People FirstBuilding a Defense Line to Ensure Safety
Workplace Safety Management ??
Dual Prevention Mechanism ??
Occupational Health & Safety ??2024 Environmental Social and Corporate Governance (ESG) Report Putting People First Building a Defense Line to Ensure Safety 66
Workplace Safety Management
Development of the Workplace Safety System Workplace Safety Accountability
All major production bases of Orinko strictly comply with relevant national laws and regulations and uphold the concept of "safety is the In accordance with the State Council's Five Provisions on
basis of survival" and the policy of "safety first prevention foremost and comprehensive control". The Company has established a com- Strengthening the Safety Management in the Production
prehensive safety management system covering the entire production process. of Enterprises Orinko's major production bases have
established a workplace safety accountability system
At the organizational level the Company has implemented a safety accountability system with the general manager serving as the high- and signed the Letter of Commitment on Workplace
est decision-maker and commander for safety matters ensuring that safety responsibilities are enforced at all levels to prevent and Safety Accountability with principal safety officers of all
reduce the occurrence of safety incidents. Safety-related metrics including administrative penalties work-related injuries and the functional departments. All factories have implemented
on-time rectification rate of identified hazards are incorporated into performance evaluations across departments with a reward and the safety accountability system with commitment letters
penalty mechanism in place to effectively enhance the Company's safety management. Guided by the Management System for Work- signed at every level.place Safety Goals Orinko sets workplace safety goals and performance indicators which are further allocated to specific departments.Through a combination of goal-setting and process management supported by the collective efforts of all employees the Company
achieved its target of zero safety incidents in 2024.Workplace Safety Training
In 2024 Orinko's major production bases enhanced workplace safety Average hours of safety
training to ensure improved safety awareness and operational skills training per employee
among employees. Training topics covered three-level safety educa-
tion for new employees specialized safety training and comprehen-
sive safety training. The training content included workplace safety 40
laws and regulations safe operation procedures and accident case
analysis. These training sessions enhanced employees' safety aware-
ness and operational capabilities reduced "three violations" (viola-
tion of procedures discipline and safety rules) and effectively pre-
vented and reduced the occurrence of accidents.2024 Environmental Social and Corporate Governance (ESG) Report Putting People First Building a Defense Line to Ensure Safety 67
Workplace Safety Initiatives "Fire Safety Month" Events
To build a harmonious and safe factory environment and foster a strong culture of fire safety Orinko takes active steps to enhance
fire awareness among all employees. In strict accordance with the National Outline for Fire Safety Publicity and Education the
Company has made solid efforts to implement the "Fire Safety Month" campaign. In November 2024 major production bases of
Orinko officially held kick-off ceremonies to launch the "Fire Safety Month" initiative."Workplace Safety
Month" Events
June 2024 marked the 33rd Workplace Safety Month in
China. Orinko's major production bases actively responded
to the campaign themed "Safety first for everyone emer-
gency readiness for everyone". In alignment with relevant
directives issued by local governments the Company
promptly formulated an activity plan and ensured its imple-
mentation through comprehensive publicity and organized Fire safety quiz with prizes
execution enabling the campaign to be well-planned
well-arranged well-inspected and well-executed.The production bases focused on promoting national work-
place safety laws and regulations workplace safety knowl-
edge and the Company's internal workplace safety man-
agement system with the goal of enhancing employees'
safety awareness and accident prevention capabilities. A
wide range of engaging and informative activities were
launched along with intensified efforts to identify and recti-
fy potential hazards. These initiatives enhanced recognition
of workplace safety across the organization improved safety Nighttime dormitory emergency evacuation drill Specialized training on fire protection systems
management mechanisms elevated the quality of work-
place safety management strengthened risk prevention
capabilities and effectively eliminated potential hazards
yielding significant outcomes and ensuring workplace
safety.2024 Environmental Social and Corporate Governance (ESG) Report Putting People First Building a Defense Line to Ensure Safety 68
Dual Prevention Mechanism
Risk Classification & Control
and Hazard Investigation & Rectification
At all major production bases Orinko has established a "six-mechanism" safety risk control
system to implement hierarchical management of safety risk areas. Risk points are evaluat-
ed with supporting tools such as risk data collection/review/reporting flowcharts risk classi-
fication methods and standards risk rating (risk matrix) early warning grading standards
and a structured risk control process. Over 80 types of hazards were identified including me-
chanical injuries burns electric shocks object strikes vehicle-related risks fires and falls
from height.Divide units Continuous improvement
Identify risk points Assign responsible persons for risk control
Identify sources of hazards Prepare emergency response plans for accidents
Evaluate risks and determine risk levels Develop response procedures
Develop preventive measures Define early warning levels2024 Environmental Social and Corporate Governance (ESG) Report Putting People First Building a Defense Line to Ensure Safety 69
Occupational Health and Safety
Development of the Occupational Health and Safety System
Orinko strictly complies with the Law of the People's Republic of China on the Prevention and Control of Occupational Diseases and other relevant laws
and regulations. It has established institutional documents such as the Responsibility System for Occupational Disease Hazard Prevention and Control the
Occupational Disease Hazard Warning and Notification System and the Publicity Education and Training System for Occupational Disease Prevention and
Control to regulate employees’ work practices strengthen supervision and risk control and effectively protect employees' occupational health and safety.All major production bases have continuously improved their occupational health and safety management systems and obtained ISO 45001 Occupational
Health and Safety System certification.The Company places great importance on employees' occupational health treating it as a key aspect of its ESG management. Orinko is committed to
ensuring a healthy and safe working environment for employees and continuously improves its occupational health management measures to enhance
both work quality and quality of life for employees. To achieve this goal the Company has adopted the following measures:
When signing labor contracts with employees in positions exposed to occupational Employees engaged in hazardous or toxic operations are
disease hazards the Company truthfully informs them of potential occupational required to undergo occupational health examination before
hazards and their consequences as well as protective measures and clearly taking the job during employment and upon departure. In the
includes this information in the labor contract. event of an emergency in the workplace immediate health
examinations must be conducted.In accordance with the Technical Specifications for Occupational Health Surveil-
lance (GBZ188-2014) the Company formulates an annual plan for occupational
health examinations and selects hospitals with corresponding qualifications to pro- For employees exposed to occupational risks corresponding
vide physical examinations for employees aiming to prevent the occurrence of measures are taken as required along with regular re-examina-
occupational diseases and strengthen occupational health management through tions.regular health checkups.Subsidiaries and branches are required to provide employees exposed to occupa- The Company strictly enforces the "Three Simultaneities" occu-
tional hazards with personal protective equipment that meets national standards pational health policy for construction projects ensuring that
free of charge and offer training and supervision to ensure proper use of personal occupational health facilities are designed constructed and
protective equipment. Warning signs are placed in workplaces job positions equip- commissioned simultaneously with the main project. This guar-
ment material packaging and storage areas where occupational hazards are pres- antees the efficient operation of supporting occupational
ent and occupational health bulletin boards are set up in prominent locations to health equipment and reduces occupational health risks in the
raise employee awareness. workplace.2024 Environmental Social and Corporate Governance (ESG) Report Putting People First Building a Defense Line to Ensure Safety 70
Occupational Health Assessment Occupational Disease Prevention
Orinko conducts annual occupational
health assessments for employees includ- The Company has established For occupational disease The Company regularly orga-a comprehensive occupational p r e v e n t i o n O r i n k o h a s nizes occupational health
ing physical examinations and occupa- health management system prepared documents such as training and educational activ-
tional disease screenings. In 2024 the par- that covers occupational the Pre-assessment Report on ities to enhance employees'
ticipation rate for occupational health health assessments occupa- Occupational Disease Hazards awareness of occupational
examinations reached 100%. Participation rate in tional disease prevention the Special Plan for the Design health and self-protection
occupational health work-related injury manage- o f O cc u pat i o n a l D i s ea s e capabilities.Hazards and risks in the workplace are examinations ment health monitoring and Prevention Facilities and the reporting. Responsibilities and Assessment Report on Control
assessed and occupational disease obligations are defined in Effect of Occupational Disease
hazard factors are monitored regularly to 100% accordance with relevant stan- H a za r d s . E m p l o y e e s a r e
ensure the implementation of effective dards and regulations with provided with relevant training
occupational health control measures. regular reviews and continu- and guidance on occupational ous improvements in place. d i s e a s e p r e v e n t i o n a n d
protection.Manage and record work-related injury incidents con- Compliance and Regulatory Adherence
duct investigation and analysis and propose improve-
ment measures.Work-related
Injury
Management Orinko complies with relevant occupational Orinko regularly conducts ISO 45001 Occupational
health regulations and standards to ensure the Health and Safety Management System audits and
Assist employees in applying for work-related injury Company's occupational health practices align provides relevant occupational health data and
compensation and provide necessary medical and with legal and regulatory requirements. information.rehabilitation support.2024 Environmental Social and Corporate Governance (ESG) Report Embracing Diversity and Shared Growth Fulfilling Corporate Responsibility 71
08 Embracing Diversity and Shared GrowthFulfilling Corporate Responsibility
Protection of Employees' Rights and Interests ??
Human Resources Management ??
Employee Development and Training System ??
Employee Promotion and Career Development ??
Employee Care ??
Public Welfare and Charity ??2024 Environmental Social and Corporate Governance (ESG) Report Embracing Diversity and Shared Growth Fulfilling Corporate Responsibility 72
Protection of Employees' Rights
and Interests
Labor Management
Orinko strictly complies with the Labor Law the Labor Contract Law and other relevant laws and
regulations. It signs labor contracts with employees makes timely contributions to social insur-
ance and housing provident fund and ensures full and punctual salary payments. The Company
emphasizes the protection of minors and strictly prohibits the employment of child labor. It
respects employees' freedom of association allowing them to lawfully organize or join labor
unions and other social organizations. In recruitment hiring and promotion discrimination
based on race gender age religion ethnicity disability or place of residence is strictly prohibit-
ed ensuring all employees have equal access to fair opportunities. Reasonable working hours are
arranged to protect employees' lawful rights and interests.Employee Safety and Labor Protection
Respecting and caring for every employee Orinko refines its implementation of labor laws and
regulations through detailed internal regulations and disciplines to standardize management.The Company continuously improves its workplace safety system and operating procedures and
regularly organizes safety training and educational activities to enhance employees' workplace
safety awareness and emergency response capabilities. Various safety activities such as the
"Workplace Safety Month" campaign fire drills and safety competitions are actively carried out
to strengthen accident prevention and safety awareness. The Company also strictly complies with
laws and regulations on occupational health establishes detailed occupational health manage-
ment systems provides free occupational health examinations and necessary protective equip-
ment and posts warning signs in workplaces to ensure employees' health and safety.2024 Environmental Social and Corporate Governance (ESG) Report Embracing Diversity and Shared Growth Fulfilling Corporate Responsibility 73
Human Resources Employee Compensation and Benefits
Management Short-term incentivesEmployee compensation primarily consists of: fixed salary welfare subsi- Monthly performance bonuses pro-
dies short-term incentive bonuses and long-term incentive bonuses cess-based incentives recognition
Employee Recruitment (such as equity). Employee benefits mainly include: social insurance ((in- awards commissions annual perfor-
and Employment cluding pension medical unemployment work-related injury and mater- mance bonuses etc.nity insurance) and housing provident fund meal subsidies holiday gifts
regular team-building activities annual physical examinations company
Upholding the spirit of continuous innovation and pursuit of excel- dormitories and commuter shuttles. Medium- to long-term incentives
lence Orinko actively embraces globalization by recruiting college
graduates experienced professionals and high-level talents. The
Company attracts top industry professionals international talents Equity incentives among others.and high-potential graduates from the world's top 30 universities in
the materials field aiming to deliver world-class competitive prod-
ucts and services. Compensation Management Principles
As of 2024 Orinko has employed over 2270 staff members. The R&D
and marketing teams are composed of individuals with master's or Strategic Compensation aligns with the Company's overall strategy with a focus on rewarding
doctoral degrees or specialized knowledge in materials science. In alignment strategic talents.
2024 alone the Company recruited over 170 college graduates and
several renowned industry experts and overseas professionals.Relative Salaries are determined based on job value to reflect internal equity while also
fairness benchmarking against the market to ensure competitiveness for key talents.Number of employees College graduates recruited in ????
Performance Adjustments to base pay and distribution of variable pay are tied to performance
2279 170+ -oriented ensuring that dedicated employees are fairly rewarded.
Benefit Employee income is linked to the Company's business performance—the better the
sharing Company performs the more employees share in its success.2024 Environmental Social and Corporate Governance (ESG) Report Embracing Diversity and Shared Growth Fulfilling Corporate Responsibility 74
Employee Communication
Employee communication is a vital component of effective internal communication. It involves conveying information to em-
ployees establishing communication channels identifying issues and finding solutions. Effective communication enhances
the Company's continuous development drives internal collaboration serves as a key tool for problem-solving and acts as a
crucial bridge for employee engagement and feedback.Employee communication channels within the Company mainly fall into two categories: online communication and offline
communication.Online communication Offline communication
OA office system Regular meetings Employee satisfaction surveys
Allows employees to access official docu-
ments and send internal emails. Including team meetings weekly Carried out annually through question-
monthly biannual and annual meet- naires to gather comprehensive feedback
ings employee forums dormitory visits on work life company policies interper-
Feishu and interdepartmental exchange ses- sonal relationships employee growth and
Enables seamless information exchange sions which provide opportunities for corporate development.among all employees. face-to-face communication among em-ployees between staff and manage-
ment and across departments.Chairman's mailbox
Allows all employees to offer suggestions
report misconduct or submit complaints Performance reviews Rationalization proposal initiatives
directly.Held at least once ever y quarter to Regularly organized to encourage cost-re-
Employee suggestion box guide employees to improve their work duction and efficiency-enhancing sugges-performance and advance their person- tions tapping into employees' collective
Provides an anonymous feedback channel al development. wisdom to improve the Company's econom-
to encourage employees to raise issues ic performance.and offer suggestions.2024 Environmental Social and Corporate Governance (ESG) Report Embracing Diversity and Shared Growth Fulfilling Corporate Responsibility 75
Employee Development Case The 24th Orinko Star Training Camp
and Training System
To support the rapid growth of emerging talents the Company innovatively launched the 24th
Orinko Star Training Camp with over 170 new campus recruits in 2024. Adopting business orien-
Employee Development tation and combination of training and practical experience as the core philosophy the program
developed a curriculum system driven by cultural identity and business understanding inviting
Guided by its strategic priorities Orinko has built a multidimen- external experts and Company executives to give lectures on corporate culture product knowl-
sional talent development system. In 2024 the Company centered edge and career advancement skills fostering strategic vision and a strong sense of organiza-
its efforts on a tiered and categorized training framework integrat- tion belonging. The program introduced an innovative four-site rotational model allowing par- Overall satisfaction rate
ing diverse online and offline learning scenarios. Over the year of the training campticipants to gain in-depth experience of the entire production process through rotations across
Orinko conducted more than 800 customized training sessions different production bases and workshops. A horizontal competition mechanism was embed-
achieving 100% employee coverage with an average of 9.5 training ded in localized project management stimulating innovation momentum through a standard- 98%
hours per employee and 13301 training attendances recorded. ized evaluation system and real-time score display. Additionally the program built a
The Company also launched the innovative "Orinko Star Training three-in-one mentorship model where business mentors guided professional advancement
Camp" to help emerging talents grow into strategic talent pipe- career mentors supported career path planning and HR mentors enhanced soft skills enabling
lines with plans to further enhance the training model in 2025. multi-dimensional growth of participants through job rotations and phased performance
reviews. The training camp received an overall satisfaction rate of 98%. In 2025 the Company
will further enhance the data-driven dynamic assessment model continuously strengthen orga-
nizational talent pipeline and increase the density of high-potential talents.Customized Employee
training sessions coverage
800+100%
Average training hours Attendances
per employee recorded
9.5 133012024 Environmental Social and Corporate Governance (ESG) Report Embracing Diversity and Shared Growth Fulfilling Corporate Responsibility 76
Employee Training Introduction of External
Training Resources
Orinko has established a comprehensive
training system that includes tiered and
categorized internal training as well as Case Orinko Trainer Evaluation and Certification In 2024 Orinko restructured its external training
professional training by external experts model to support strategic transformation and
supporting employees' continuous organizational capability upgrading shifting from
growth and career development. To meet the Company's growing training needs and promote the inheritance of knowledge standardized knowledge input to value-driven
and wisdom Orinko launched a trainer evaluation initiative in June 2024 to select and certify capability development. On one hand the Com-
internal trainers with strong professional capabilities and effective teaching skills. pany actively invited experts across various fields
to build specialized knowledge systems. In mar-
Internal Training keting Orinko implemented the LTC process
Development management while strengthening the "iron trian-gle" system to deliver systematic solutions for
customers thereby enhancing the Company's
To support the Company's growth brand reputation. In manufacturing initiatives
strengthen knowledge management such as Lean Improvement Week and in-depth
and foster a learning-oriented organiza- OBS system training enabled lean competency
tion Orinko launched several initiatives certification of core leaders supporting the con-
in 2024 such as focused capability build- struction of benchmark factories. On the other
ing and modular course coaching to hand targeted training programs were launched
develop an internal trainer team shift- for the management team covering areas such
ing from reliance on external resources as strategic planning and deployment organiza-
to cultivating internal expertise. As a tional transformation and digital process devel-
result 55 employees successful ly opment. Senior executives also engaged in
passed certification. Additionally in benchmarking visits and industry forums to
alignment with trainer schedules and enhance business thinking and strategic execu-
business priorities Orinko regularly tion capabilities. This structured tiered talent
hosted internal knowledge seminars development system provides critical talent sup-
covering manufacturing R&D business port for the Company's strategy of "customer
finance planning and lean manage- orientation product leadership lean operations
ment attracting over 1000 participants. and sustainable development".2024 Environmental Social and Corporate Governance (ESG) Report Embracing Diversity and Shared Growth Fulfilling Corporate Responsibility 77
Employee Promotion and Career Development
Employee Promotion Employee Career Development
To align with the Company's strategic priorities of customer orientation Orinko highly values employees’ career development. It
product leadership lean operations and sustainable development has established a multi-channel promotion mechanism
while better attracting motivating and retaining top talents Orinko car- that includes management and professional career tracks
ries out its employee promotion initiatives based on the following three supporting both vertical promotion and horizontal devel-
principles: opment. Through talent review the Company builds a
talent pipeline and enhances job rotation and vitality
mechanisms effectively stimulating talent engagement.Employee career development is deeply integrated into
the corporate governance system to support organization-
Progressive promotion al capability enhancement.Objective evaluation In principle employees are pro-
moted progressively. Employees
It adheres to the princi- with significant contributions and Construction of Career
ples of openness fair- outstanding performance will be Development Pathways
ness and impartiality in granted accelerated promotion
comprehensive assess- Orinko implements multi-channel position management opportunities.ments of employees' job that includes management and professional career tracks
competency. supporting both vertical promotion and horizontal devel-
opment. The management pathway includes functional
management and production management while the pro-
Dynamic management fessional pathway covers areas such as strategic opera-
Talent management allows for tions marketing technical R&D production operations
upward or downward mobility as process coloring quality management supply chain
well as entry and exit providing financial management human resources information
flexibility. technology legal management technology management
administrative management and operational support.2024 Environmental Social and Corporate Governance (ESG) Report Embracing Diversity and Shared Growth Fulfilling Corporate Responsibility 78
Employee Care Dormitories Office Environment
In 2024 the Company renovated and upgraded employ- In 2024 the Company carried out a comprehensive renovation and redesign of the office
Orinko organizes a wide variety of activities ee dormitories improving the supporting facilities to building providing employees with a more comfortable and aesthetically pleasing
for employees during various holidays and better serve staff needs. modern workspace.traditional festivals such as the Lantern
Festival International Women's Day (March
8) Mother's Day Father's Day Mid-Autumn
Festival National Day and more. The Com-
pany provides various benefits to employ-
ees and organizes team-building trips each
summer. To enrich employees' leisure
time it has built facilities such as basket-
ball courts badminton courts and gyms
and organizes various competitions like
skill contests tug-of-war basketball games
shuttlecock kicking and badminton com-
petitions. These activities help enhance
employees' competitiveness and team
spirit. The Company also periodically orga- Canteen
nizes flexible competitions and employ-
ee-led innovation activities. These initia- In 2024 the Company continually introduced new menu
tives help cultivate a sense of dedication items in the Canteen enhancing the quality of meals to
and commitment to the job strengthen ensure employees enjoy healthier safer more nutritious
employees' sense of ownership stimulate and balanced food.innovation and unleash employees' initia-
tive and enthusiasm Shuttle Service
To improve commuting convenience for employees the
Company offers shuttle bus services addressing the
issue of long commutes.2024 Environmental Social and Corporate Governance (ESG) Report Embracing Diversity and Shared Growth Fulfilling Corporate Responsibility 79
Public Welfare and Charity
Case Charity Program for Student Support Case Charity Campaign to Support Agricultural Product
On October 25 2024 the Party branch secretary and staff of Orinko Advanced Plastics Co. Ltd. In November 2024 Orinko launched an internal charity campaign titled "Support Rural
visited Fengle Town Central School in Feixi County Hefei Anhui Province to carry out a charity Revitalization by Purchasing Agricultural Products". Organized by the Company's Party
program for student support. Orinko provided scholarships and supplies to ten outstanding branch the campaign encouraged employees to purchase specialty agricultural prod-
students. ucts—rice and lotus root starch—from Jianggang Village in Fengle Town Feixi County
Hefei Anhui Province. The campaign open to all employees aimed to boost the sales
As a publicly listed company Orinko actively fulfills its social responsibilities. While pursuing of agricultural products from Jianggang Village through compassionate consumer
its own development the Company also dedicates part of its resources and efforts to public action helping increase farmers' income and contributing to rural revitalization.welfare giving back to society through concrete actions.2024 Environmental Social and Corporate Governance (ESG) Report Appendix 80
Appendix
Key ESG Performance in 2024
Ⅰ. Governance
Corporate governance performance Business ethics performance R&D and innovation performance
Number of general Number of resolutions Confirmed Confirmed unfair competition R&D R&D investment
meetings of reviewed at general corruption incidents and antitrust violations investment as a percentage
shareholders held meetings of shareholders of total revenue
4 23 0 0 RMB 275119851.69 4.52%
Number of Number of employees
Number of Number of resolutions anti-corruption who participated in Number of R&D staff as a percentage
board meetings held reviewed at training sessions anti-corruption training R&D staff of total workforce
board meetings 1 432 566 24.84%
948
Average hours of anti-corruption training per employee Information security performance
Number of supervisory Number of resolutions 1.2
board meetings held reviewed at supervisory
board meetings Complaints related to customer privacy violations
8250
Percentage of employees who signed the business ethics
commitment letter
Confirmed incidents of customer data leakage theft or loss
100% 02024 Environmental Social and Corporate Governance (ESG) Report Appendix 81
Intellectual property performance Environmental management performance Waste management performance
Total investment in Number of environmental Compliance rate
Cumulative intellectual Of which environmental protection violations and penalties Total waste generated for waste treatment
property rights obtained cumulative granted patents
382 RMB 20.25 million 0274 3131.44 tons 100%
Hazardous waste Non-hazardous waste
Intellectual property rights Of which
obtained during the granted patents Energy management performance
reporting period 274.855 tons 2856.585 tons
61 31 Total wastewaterEnergy consumption in production operations discharged Total exhaust gas emissions
Total electricity consumption in production
558272.84 tons 2811831600 m3
Ⅱ. Environmental 221913.1 MWh
Rooftop photovoltaic
Organizational GHG emissions Purchased electricity self-generated electricity
204623.53 MWh 17289.57 Ⅲ. SocialMWh
Total GHG emissions Of which: Scope 1 emissions Employee rights and interests performance
1455614.97tCO2 1087.23 tCO2 Natural gas consumption Diesel consumption
Labor contract signing rate Social insurance coverage rate
448848.88 m3 0 tons
Of which: Scope 2 emissions Of which: Scope 3 emissions 100% 100%
110959.35 tCO2 1343568.39 tCO2
Water resource management performance
Employee rights and interests performance
GHG emissions reduced through carbon reduction measures Total water withdrawal Number of public welfare and charity activities conducted
231903.46 tCO2 558272.84 tons 42024 Environmental Social and Corporate Governance (ESG) Report Appendix 82
Employee employment performance Employee training performance Occupational health and safety performance
Total training hours Average training hours Number of work-related Occupational disease
Total number of employees for employees per employee fatalities of direct employees incidence rate
227985359.500
Average hours of safety Average training hours Occupational health examination participation rate
Male Female training per employee per new employee
18664134010100%
Coverage rate Percentage of employees regularly
of new employee assessed for performance
By profession: training and career development Supplier Management Performance
100%100%
Functional staff 348 Total number of suppliers Of which domestic suppliers
Sales staff 236 Occupational health and safety performance 484 474
R&D staff 566
Production & 1129 Major fire Work-related fatalities Of which Number of new suppliers addedaccidents and serious injuries overseas suppliers during the reporting periodmanufacturing
staff 0 0 10 71
By educational background: Employee workplace Rectification rate
safety education and training rate of potential hazards Number of suppliers eliminated during the reporting period
PhD 22 100% 100% 0
Master’s 201 Facility and equipment Percentage of newly introduced suppliers selected based on
Bachelor’s 2056 maintenance rate environmental standards
and below 100% 100%2024 Environmental Social and Corporate Governance (ESG) Report Appendix 83
Index of Reporting Indicators Social
No. Topic Article Corresponding Section in This Report
Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation
9 Rural revitalization Article 39 Embracing Diversity and Shared Growth Fulfilling
of Listed Companies—Sustainability Report (Trial) Corporate Responsibility
10 Contributions to the society Article 40 Embracing Diversity and Shared Growth FulfillingCorporate Responsibility
11 Innovation-driven Article 42 Making Innovations EmpoweringIndustrial Development
During the reporting period the Company’s
business did not involve scientific and technolog-
12 Ethics of science and technology Article 43 ical fields such as genetics or AI ethics nor did its
production and operations involve any activities
related to ethics of science and technology.
13 Supply chain security Article 45 Maintaining Steady Growth UpholdingValue Creation
During the reporting period the Company had no
outstanding payments overdue to small and
Equal treatment to small medium-sized enterprises. As of the end of the 14 and medium-sized enterprises Article 46 reporting period there were no accounts payable
Environmental (including notes payable) exceeding RMB 30 billion or accounting for more than 50% of total
assets.No. Topic Article Corresponding Section in This Report 15 Safety and quality of Article 47 Maintaining Steady Growth Upholdingproducts and services Value Creation
1 Climate change tackling Article 21-28 Low-Carbon Transition ReshapingIndustry Ecosystems 16 Data security and customer Article 48 Ensuring Integrity and Transparency Practisingprivacy protection Normative Governance
2 Pollutant discharge Article 30 Protecting Environment Building a GreenHome TogetherIndustry Ecosystems Embracing Diversity and Shared GrowthFulfilling
17 Employees Article 50 Corporate Responsibility Putting People First
3 Waste disposal Article 31 Protecting Environment Building a Green Building a Defense Line to Ensure SafetyHome TogetherIndustry Ecosystems
During the reporting period the Company’s
4 Ecosystem and biodiversity
operating sites were not located in protected
Article 32
protection areas and its business activities did not have
Governance
any significant negative impact on ecosystems
or biodiversity. No. Topic Article Corresponding Section in This Report
5 Environmental compliance Protecting Environment Building a Greenmanagement Article 33 Home TogetherIndustry Ecosystems 18 Due diligence Article 52 Sustainable Development Management
6 Energy usage Article 35 Protecting Environment Building a GreenHome TogetherIndustry Ecosystems 19 Communications with stakeholders Article 53 Sustainable Development Management
7 Usage of water resources Article 36 Protecting Environment Building a Green 20 Anti-commercial bribery Ensuring Integrity and Transparency PractisingHome TogetherIndustry Ecosystems and anti-corruption Article 55 Normative Governance
8 Circular economy Article 37 Low-Carbon Transition Reshaping 21 Anti- unfair competition Article 56 Ensuring Integrity and Transparency PractisingIndustry Ecosystems Normative Governance
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