ENVIRONMENTAL SOCIAL

AND GOVERNANCE REPORT

Exploring a Carbon-Based Future Achieving the ExtraordinaryCONTENTS

Greetings from the Chairman 01 01 Innovation: Strengthening Harmony: Protecting the About Us 03 Foundations for the Future 03 Ecology and Promoting Transformation

Special Topic:

Charting a New Blueprint for the 07 Strengthening R&D and Innovation 10 Accelerating Low-carbon Transition 20

15th Five-Year Plan Protecting Intellectual Property 12 Using Resources Efficiently 22

Enhancing Industrial Chain Resilience 13 Responding to climate change 23

Emphasizing circular economy 24

02 Endeavor: Creating Value Responsibility: Nurturing and Seeking Development 04 Talent and Benefiting

Society

Improving corporate governance 15 Safeguarding employee rights 26

Implementing intrinsic safety 18 Deepening talent cultivation 28

Building a harmonious community 29

together

Future Outlook 30

Appendix 31Zhongfu Shenying Carbon Fiber Co. Ltd. 2025 Environmental Social and Governance Report Message from the Chairman

Greetings from the Chairman

Passing the Frontier of Carbon Fiber Forging Ahead with

Renewed Vigor

Time cycles on and the seasons glide by. The year 2025 witnessed us advancing with unremitting and

Tireless Endeavor. Together with our partners in the carbon fiber industry we weathered challenges

witnessed breakthroughs and also reaped substantial rewards.On this vast journey our strides have been firm and powerful. We have acted upon our fundamental

duty to the nation kept in mind the Four Fronts and comprehensively advanced high-level scientific

and technological self-reliance and self-improvement. New models such as the ultra-high-strength

SYT80 ultra-high-modulus SYM65J ultra-cost-effective large-tow and the new-generation SYM55X

have been successively developed. For the first time we have won the CCE-JEC International Innovation

Award. We have established a commercial aviation-grade prepreg R&D-Pilot-Engineering platform with

key products receiving pre-approval certification from COMAC PCD. We persist in strengthening research

endeavors and securing key breakthroughs in composite materials and processing technologies

and were honored with the China Patent Silver Award and the Golden Bull Listed Company Sci-Tech

Innovation Award.On this vast journey our spirit has been high and vigorous.We have firmly established a quality and

service consciousness. Relying on system certifications high-precision online inspection equipment

the Chief Quality Officer system and a digital quality information system we were honored with

the China Quality Award Nomination making "Made in China" shine on the global stage. We have

continuously deepened digital transformation and were recognized as a National Advanced Smart

Factory. We have reshaped production paradigms achieving a digital and intelligent leap across the

entire process demonstrating the robust strength of green and smart manufacturing.On this vast journey our confidence has been full and assured.Capacity construction has been

accelerated and upgraded. On the shores of the vast Yellow Sea rows of new workshops were

successively topped out with core equipment for production lines installed. On the snow-capped

plateau technical upgrades increased the single-line capacity of precursor by over 30%. Green and low-

01Zhongfu Shenying Carbon Fiber Co. Ltd. 2025 Environmental Social and Governance Report Message from the Chairman

carbon initiatives enhanced quality and efficiency. Adhering to the "ecology-first green development" We thank all employees for their hard work and their families for their silent support. The unwavering

principle our clean energy usage rate surpassed 75% and carbon emissions per tonne of product set a dedication and effort from every role converge into a powerful driving force for the company's high-

green benchmark for the industry. The Zhongfu Shenying case was selected into the ESG Blue Book for quality development. The warm night lamp at home makes our footsteps returning home late feel

Listed Companies of Central Enterprises under the State-owned Assets Supervision and Administration eager yet unhurried. In 2025 we were honored with the "China Youth May Fourth Medal Collective"

Commission of the State Council (SASAC). award and individual National Model Worker titles. We built the "Zhongfu Shenying Industrial Worker's

Home" fostered a learning organization and cared for employees' career growth and family well-being."Let the World Feel the Power of Carbon Fiber"—our vision is both grand and simple. Ultimately it is

about adhering to customer-centricity and application-driven development to upholding the path of 2026 marks the start of the 15th Five-Year Plan. Zhongfu Shenying with the mission of "Materials Create

high-quality development and about realizing the transition of carbon fiber composites from “operable” a Better World" will firm up confidence and seize the momentum to forge ahead. We will continue to

to “reliable capable and versatile” through long-termism and professionalism. We anchor ourselves in strengthen technological innovation and industrial synergy integrate green and smart manufacturing

national strategic fields such as aerospace，wind solar and hydrogen energy focus on low-altitude and advance towards carbon fiber technologies with higher strength higher modulus and loweraviation electronics 3C healthcare and other emerging growth tracks and make breakthroughs in carbon footprint. We will join hands with partners to inject stronger material momentum into building

upgraded market segments such as sports and leisure automotive and rail transit and marine and a manufacturing powerhouse and contribute a more solid material backbone to advancing the

shipping. Our production and sales volume hit record highs with operational quality significantly rejuvenation of the Chinese nation on all fronts through Chinese modernization.improved.We express gratitude for the striving past and salute the thriving future extending our most heartfelt

thanks to all friends who have worked together in unity.We sincerely thank our shareholders and all stakeholders for their support.Precision-targeted

and scientifically enabling industrial policies have provided solid assurance for Shenying to break

development barriers seize opportunities of the times and deepen reform and development.Investors and stakeholders have always stood together through thick and thin with us forming

the bedrock of our confidence to navigate cycles pierce through uncertainties and achieve steady

growth.We thank our vast number of customers for their trust and tolerance and our industry partners

for walking hand in hand.Every choice you make inspires us to continuously enhance quality and

optimize experience enabling carbon fiber materials to move from the laboratory to thousands of

industries becoming a key force empowering industrial upgrading.We have collaborated sincerely with

industry peers universities and research institutes — from joint research to cooperation across the Jian Zhang Chairman of Zhongfu Shenying

industry chain from resource sharing to standards advancing — stringing individual links together to

build an industrial ecosystem with a nascent yet promising landscape.

02Zhongfu Shenying Carbon Fiber Co. Ltd. 2025 Environmental Social and Governance Report About Us

About Us

Company Profile Corporate Culture

Zhongfu Shenying was established in 2006 and is a national In January 2018 Zhongfu Shenying was awarded the 2017 Zhongfu Shenying actively practices the corporate culture

high-tech enterprise specializing in the research production National Science and Technology Progress Award as the first of China National Building Material Group adhering to the

and sales of carbon fibers and their composite materials. It is completing unit. At the end of 2021 the Xining ten-thousand- corporate mission of "Materials Create the World". It innovates

a Fortune 500 company under the management of the State- ton carbon fiber project was selected as one of the top ten through inheritance cultivates through practice and actively

owned Assets Supervision and Administration Commission of super projects of the State-owned Enterprises under the fosters a corporate culture with unique Zhongfu Shenying

the State Council - China Construction Materials Corporation. Administration Commission. In 2025 the company's revenue characteristics.On April 6 2022 it successfully listed on the Shanghai Stock and profitability will significantly increase its role as an

Exchange (stock symbol: Zhongfu Shenying stock code: 688295). innovation entity will continue to strengthen and its market

value and price-earnings ratio will outperform the market. As

The company possesses mature technology for producing of now it has built three advanced manufacturing bases in

carbon fibers on a ten-thousand-ton scale. It was the first Jiangsu Lianyungang Qinghai Xining and Shanghai Lingang. It

to achieve breakthroughs in key technologies such as dry currently has a dry-spun wet-filament carbon fiber production Let the world feel the

spinning and wet spinning and to achieve self-automation of Missioncapacity of 29000 tons and is constructing an additional 31000 power of carbon fibe

core equipment in China. It has steadily advanced its product tons of capacity.range and continuously mastered the production technology

for high-performance carbon fibers of SYT49 and SYT55 at the In the future the company will concentrate its technical efforts

kiloton scale. It has successively broken through technologies on researching and innovating the possibility of developing

for ultra-high-strength SYT70 and SYT80 at the hundred-ton high-performance carbon fibers leading the development To build a world-

scale as well as the engineering preparation technologies for of carbon fiber technology and continuously accelerating class carbon

high-strength high-modulus and high-toughness SYM60J and the construction of the 30000-ton project in Lianyungang Vision fiber enterprise

SYM55X. with "new quality productive force" as the core driving force with global

creating "national superior materials" empowering the new competitiveness

era and becoming a world-class carbon fiber enterprise with

global competitiveness!

Innovation

Core Integration

Values Endeavor

Responsibility

Upholding our original

aspiration and

Business craftsmanship Pursuing

Purpose excellent quality

Leading technological

progress

Bravely shouldering social

03Zhongfu Shenying Carbon Fiber Co. Ltd. 2025 Environmental Social and Governance Report About Us

Honors and Awards

First Prize for National Science and China Quality Award Nomination

Technology Progress (2025)

(2017)

National Specialized and Sophisticated CCE-JEC Innovation Product Award

"Little Giant" Enterprise (2025)

(2022) Typical Practice of Listed Company Board

of Directors

National Green Factory Excellence-Level Intelligent

(2023) Manufacturing Factory

(2025)

China Patent Silver Award Golden Bull Listed Company Science and

(2025) Technology Award

(2025)

Golden Bull Award for ESG Excellence in

Central SOEs

04Zhongfu Shenying Carbon Fiber Co. Ltd. 2025 Environmental Social and Governance Report About Us

Sustainable Development Strategy

With technological innovation as the core market demand as the guide and quality upgrading as the goal we strengthen the application of green product attributes in the development

of the value chain and strive to promote high-quality low-carbon development in society.Promoting Green Production through Technology Driving the Circular Economy through Innovation

Improve resource use efficiency through technological upgrades reduce Fully integrate the concept of a circular economy accelerate the improvement of

pollutant emission levels adjust the energy structure using clean energy resource recycling efficiency and cascaded energy utilization commit to creating

technologies implement clean production reduce the carbon footprint of our "Zero-emission" factories promote the development of a circular economy in the

products and demonstrate corporate responsibility in supporting national "Dual industry and strive to achieve green and high-quality development goals.Carbon" goals and responding to global climate change.Tapping into High-end Markets through Quality Building an Excellent Team through Talent

In line with market development needs continuously build a solid R&D Safeguard employee rights ensure employee health and safety provide a

foundation pursue high-quality products and services actively respond to secure working environment and enhance employee happiness and sense of

the concerns of domestic and international markets regarding the Company's belonging; create career development paths tailored to employees' growth

sustainable development performance and explore new high-end markets. aspirations deepening employee care initiatives to attract and cultivate high-

caliber talent.Building Long-term Operations through Governance

Continuously strengthen our responsible corporate image enhance the capacity building and awareness of our partners in sustainable development promote coordinated regional

development in our operating areas and lay a solid foundation for the Company's sustainable growth.

05

One Core Five PillarsZhongfu Shenying Carbon Fiber Co. Ltd. 2025 Environmental Social and Governance Report About Us

Board of Directors Strategy and ESG Committee ESG Working Group

The highest responsible body for the Company's Responsible for proposing ESG goals and strategies Responsible for the execution and promotion of

ESG affairs exercising leadership and supervision assessing and identifying the Company's ESG risks specific ESG matters of the Company including

over the Company's overall ESG goals strategies including climate change-related risks and promoting preparing the annual ESG report advancing the

risks policies etc. including climate change-related the establishment of appropriate and effective ESG implementation of the ESG strategy and organizing

matters. risk management and internal control systems. ESG-related exchanges and training activities.

06Zhongfu Shenying Carbon Fiber Co. Ltd. 2025 Environmental Social and Governance Report Special

Topic

Looking Ahead to the 15th Five-Year

Plan Charting a New Blueprint

Overall Development Strategy for the 15th Five-Year Plan Period

Guiding Principles Development Principles

Guided by Xi Jinping Thought on Socialism with Chinese Advancing towards

Focus on value-driven growth "Greenization High-end Characteristics for a New Era we will closely align with the strengthening comprehensive Development and Intelligent

national strategic deployments for high-quality development competitiveness Manufacturing" to facilitate

new quality productive forces and self-reliance in science and and optimizing scale and the holistic upgrade of efficiency metrics. the carbon fiber industry.technology during the 15th Five-Year Plan period. Bearing in

mind the country's most fundamental interests and committed Promotion of Serving National

to creating materials of national significance we will anchor Adherence to Industrial Strategies

our mission as the chain leader of the carbon fiber industry High-Quality Upgrading

chain within China National Building Material Group. We will Development

establish a development model driven by both R&D innovation

and marketing fostering a positive interaction between Leadership in Deepening

industrial operations and capital management. Sci-Tech

Asserting the enterprise's Innovation Leveraging the

SOE Reform Aligning with the national

pivotal role intensifying R&D STAR Market platform strategy for new materials

investment and driving the deep pioneering institutional and fortifying the security of

Development Goals convergence of technological innovations and establishing supply and industrial chains.and industrial innovation. a benchmark for reform.Anchor the grand blueprint of "Five First-Class"

Forge First-Class Technology Development Pace

Create First-Class Products Industry Foundation leadership

Adopt a "Three-Step" strengthening

Breakthrough

Develop First-Class Markets ecosystem market orientation upgrading

strategy and technological market expansion

building

accumulation and global layout

and global

Build First-Class Management dominance

Shape First-Class ESG Influence Phase 1 （2025-2026） Phase 2 （2027-2028） Phase 3 （2029-2030）

07Zhongfu Shenying Carbon Fiber Co. Ltd. 2025 Environmental Social and Governance Report Special

Topic

Key Initiatives for Development During the 15th Five-Year Plan Period

Forge First-Class Technology Achieve breakthroughs in leading-edge technologies disruptive processes and greenization. ??

Implement the integrated "Research-Pilot-Industrialization" model and build a collaborative system of government

industry academia research and application.Comprehensively build an independent and leading technology system accelerating the leap from "0 to N".??

Systematically develop a series of high-performance and large-diameter carbon fiber products with Chinese characteristics. Create First-Class Products

Fully implement a quality management system to support brand building with excellent quality.Build strong brand momentum to drive the synchronous upgrading of technology and the supply chain.Develop First-Class Markets ??Enhance marketing functions and professional teams build a customer-centric marketing system and vigorously expand

international markets.Build market competitiveness capable of keenly identifying needs efficiently delivering value and maximizing company value.?? Deeply integrate the "Three-Refinements Management" philosophy to enhance operational efficiency. Build First-Class Management

Deepen governance reform and improve market-oriented incentive and constraint mechanisms.Create an intelligent management and control platform enhance digitalization level and build a modern management system

that supports sustainable development.Foster an industrial ecosystem take the lead in forming an industry alliance and guide the healthy development of the industry. ??

Shape First-Class ESG Influence Strengthen capital operations establish a market capitalization management system and make strategic investments to build

an industrial ecosystem.Promote green low-carbon and social responsibility practices establish a carbon management system and improve ESG

ratings.

0801

Innovation:

Strengthening

Foundations for

the Future

The path of innovation: We firmly adhere to self-reliance and

self-strengthening in technology and in enterprises. Zhongfu

Shenying has always regarded innovation as the core engine

driving development. Through research and development

innovation we lay a solid technological foundation build

a robust innovation system and continuously promote

strategic leaps in key core technologies. In the pursuit of

cutting-edge products we take on the national strategic

mission break through the engineering bottlenecks of ultra-

high-performance carbon fibers achieve a leap from the

laboratory to large-scale production and constantly set new

performance heights for domestic carbon fibers. We build a

competitive barrier through intellectual property protection

form a systematic and forward-looking technology

protection system; in enhancing industrial resilience we

adhere to the path of self-reliant development strengthen

the coordination of upstream and downstream in the

industrial chain and with large-scale manufacturing

capabilities lay a solid foundation for the security and

stability of the carbon fiber industry.Contributing to the UN Sustainable Development

Goals (SDGs)Innovation

Zhongfu Shenying Carbon Fiber Co. Ltd. 2025 Environmental Social and Governance Report Strengthening

Foundations for the Future

Strengthening R&D and Innovation

We have established a Science and Technology Committee and a chief scientist system to continuously enhance strategic foresight optimize the allocation of innovation resources and accelerate the

commercialization of research outcomes.We place great emphasis on the top-level design and platform construction of our R&D system accelerate the cultivation and introduction of scientific and technological talent and continuously

strengthen our innovation foundation through internal resource integration and external collaboration.Three major platforms

Carbon Fiber and Composites Laboratory – Evaluation and

Testing Platform

2022–Present: Strategic transformation SYT70/SYT80

Carbon Fiber – Pilot Research Platform high-quality development 48K

2019-2021 aerospace preparation of new-

prepreg

Leading innovation industrial upgrading generation high-

Aerospace-Grade Carbon Fiber Prepreg – Research performance carbon fiber

Platform ten-thousand-tonne and composite materials

industrialization of high-

2009-2018 performance carbon fiber

Carbon fiber R&DDriven by high-end applications R&D breakthroughs innovation and SYT65

Lianyungang advancements

mastering dry-jet wet spinning

Engineering trials for carbon fiber technology technology

development SYT49/SYT55

Xining 2006-2008

Early stages technology

Industrialization verification

accumulation

Shanghai wet-spinning

Carbon fiber application and promotion process phase SYT35

Three-location synergy

Technology and product iteration

10Innovation

Zhongfu Shenying Carbon Fiber Co. Ltd. 2025 Environmental Social and Governance Report Strengthening

Foundations for the Future

Building a product matrix

Performance illustration of Zhongfu Shenying carbon fiber

High-quality product

Zhongfu Shenying closely follows market demands

and independently researches and develops to

produce over 30 product series and more than

50 types of product specifications and sizes of

filament bundles. It has achieved full coverage of

high-strength high-strength/medium model high-

strength high-model and other categories of carbon

fiber products providing more reliable "bones and

muscles" for aerospace low-altitude economy

automotive industry high-end sports new energy

industries and future industries.Aerospace

Low-altitude economy

Sports & leisure

Wind turbine blades

Carbon/carbon composites

Pressure vessels

Building & bridge

Rail transit

Carbon core cables

Automotive industry

3C electronics

Medical devices

11Innovation

Zhongfu Shenying Carbon Fiber Co. Ltd. 2025 Environmental Social and Governance Report Strengthening

Foundations for the Future

Protecting intellectual property

Zhongfu Shenying strictly adheres to national laws and

regulations concerning intellectual property protection and

continuously improves its intellectual property management New patent Of which Utility model

system with institutional development at its core. The applications filed invention patent patents

Company has formulated and implemented policy documents

such as the Administrative Measures for the Protection of 308 197 111

Trade Secrets the Intellectual Property Management System

and the Administrative Measures for Patents and Papers to

systematically regulate the management and protection of New patents Of which Utility model

trade secrets patented achievements and academic results. granted invention patents patents

Zhongfu Shenying has also incorporated intellectual property

protection into its "15th Five-Year" development plan clarifying

the requirement to strengthen full-process management and 104 27 77

protection of intellectual property. This institutionalized and

long-term mechanism ensures the security and control of Laying the foundation for future technology protection

scientific and technological innovation achievements laying and enhanced market competitiveness

a solid foundation for the Company's innovation-driven and

high-quality development.

12Innovation

Zhongfu Shenying Carbon Fiber Co. Ltd. 2025 Environmental Social and Governance Report Strengthening

Foundations for the Future

Enhancing industrial chain resilience

Industrial layout

In Lianyungang

Strengthen cutting-edge innovation and digitally flexibly

produce products with high modulus high strength high

toughness and excellent interface performance.With the intelligent factory of an outstanding level as

the core driving force we will focus on promoting the

construction of a modern chemical plant at the 30000-ton

base and drive the production process to upgrade to "less

human intervention and automation" operation.In Xining

We focus on quality improvement and cost reduction

to solidify its role as a "Ballast Stone". We have built a

25000-tonne high-performance carbon fiber production

base which was recognized as one of the "Top Ten Super

Projects of Central SOEs".In Shanghai

We expand composite material application technology

and have built an aerospace-grade prepreg R&D and

production base providing systematic solutions for

carbon fiber composite material applications.

1302

Endeavor:

Creating Value

and Seeking

Development

The path of progress is built on values and marked by

development. The long-term growth of an enterprise

is rooted in the commitment to quality the deepening

of service the joint construction of an ecosystem the

steadfast pursuit of safety and the reverence for compliance

management. From laying a solid foundation for product

quality polishing the excellent service experience to

creating a stable chain group that promotes mutual benefit

and win-win outcomes safeguarding the bottom line of

essential safety development and then establishing a

standardized and efficient compliance management system

every step of deepening efforts embodies the principle of

striving for excellence and each step of progress adheres

to the pursuit of creating value and looking towards the

long-term. With practical actions to lay the foundation and

with collective efforts to promote development Zhongfu

Shenying continuously creates enterprise value industrial

value and social value throughout its journey of progress

and takes every step of high-quality development.Contributing to the UN Sustainable Development

Goals (SDGs)Endeavor

Zhongfu Shenying Carbon Fiber Co. Ltd. 2025 Environmental Social and Governance Report Creating Value and

Seeking Development

Improving corporate governance

Optimizing the governance Optimizing quality

system management

Governance structure4 Product quality governance structure

Management level

Shareholders' Meeting During the reporting

Formulates the Company's quality policy and period there were no

objectives creates a culture of quality excellence and incidents of recall due

builds a benchmark enterprise for quality. to product safety and

Board of Directors: Audit Committee quality issues.Nomination Committee Remuneration and Implementation level

Appraisal Committee Strategy and ESG

Committee The Operation Management Department as the

department responsible for quality management

breaks down annual quality targets to subsidiary

Management:various functional departments enterprises and conducts regular quality supervision

underneath and inspections. Optimizing quality standards

Operational level

Standards determine quality and high quality requires high

Production units establish dedicated Quality Control standards to lead and promote it. Based on industry development

(QC) departments and full-time inspection personnel and its own technological advantages the Company closely follows

formulate product inspection systems covering all the needs for building quality standards for product application

4For the resumes of the Chairman and other members of the quality control nodes from raw material entry to final scenarios in strategic emerging industries. It actively participates in

Board of Directors please refer to the Zhongfu Shenying 2025 product delivery and ensure "Zero-Defect" delivery for the formulation and revision of national standards and carries out

Annual Report. every process to the greatest extent possible. work related to the optimization of corporate standards. This has significantly enhanced its product technology advantages and quality

assurance capabilities consolidated its industry leadership position

and laid a solid foundation for sustained high-quality development.

15Endeavor

Zhongfu Shenying Carbon Fiber Co. Ltd. 2025 Environmental Social and Governance Report Creating Value and

Seeking Development

Providing high-quality products Responding to customer complaints

As a leading enterprise in the domestic carbon fiber industry Zhongfu Shenying thoroughly implements the spirit of General To effectively protect customer rights and improve service

Secretary Xi Jinping's instructions on quality work and fulfills the requirements for building a quality-driven nation. The Company response efficiency the Company has formulated the

deeply integrates technological innovation with meticulous management. By constructing a unique "One 'Carbon' for the World Delivery and Service Control Procedures to fully standardize

Quality as the Foundation" full-lifecycle intelligent quality management model the Company has achieved stable and large-scale the customer complaint handling process and clearly

production of high-performance carbon fiber. It has successfully broken the long-term foreign technological monopoly providing define the responsibilities of each department upon

key material support for China's strategic fields such as aerospace new energy and rail transit. receiving a complaint. We strictly implement the "24-Hour

Acknowledgement 48-Hour Written Response" mechanism for

quality complaints to ensure issues are resolved in a closed-

Light enough! Strong enough! Accelerating a high-speed life loop and efficient manner. We promptly handle customer after-sales service requests and provide technical support. In 2025

the Company's customer complaint response rate was 100%

In July 2025 the Wuhan University of Technology Fuel Formula Racing Team (WUT team) won the championship in the British and the resolution rate was 84.1%.University Formula Racing Competition (FSUK) for vehicle design. With a strong and lightweight body made of carbon fiber this car

weighing only 196 kilograms and capable of accelerating from 0 to 100 kilometers per hour in 4.2 seconds demonstrates the robust

"Chinese speed" of China's new material industry. Customer complaint handling measures

Establish a dedicated customer service team and conduct

professional training to enhance their communication

skills problem-solving abilities and emotional

management capabilities;

Add after-sales service staff and product delivery

managers to provide one-on-one follow-up throughout

the "Pre-sales In-sales and After-sales" stages ensuring

real-time tracking of issue resolution and timely feedback

on customer needs;

Add communication channels such as telephone

WeChat and email to provide customers with diverse

communication options;

Use a digital system to record and track customer

complaints enhancing information transparency in the

complaint handling process;

A dopt a cross-departmental collaborative approach to

identify and resolve similar issues improving handling

efficiency;

E mploy scientific analysis methods to trace the root

causes of problems and systematically improve product

quality to enhance customer satisfaction.

16Endeavor

Zhongfu Shenying Carbon Fiber Co. Ltd. 2025 Environmental Social and Governance Report Creating Value and

Seeking Development

Improving customer satisfaction Practicing responsible marketing

We provide products that satisfy users through advanced

production technology maintain our corporate vitality The Company focuses on building a comprehensive and systematic service network to enhance its brand marketing strength. By

with the highest quality and efficiency and fulfill our creating a system that covers domestic and international sales after-sales and market management we achieve full coverage

commitments by focusing on customers. We conduct customer of the sales process and service regions. This enables us to control processes for identifying reviewing and managing customer

satisfaction surveys twice a year on a regular basis compile requirements and changes ensuring that customer needs and expectations are fully understood and met thereby providing

analysis reports analyze the root causes of major areas of products that satisfy customers and enhancing their satisfaction.dissatisfaction and formulate corrective and preventive

measures. This ensures that our product quality delivery

and services meet customer needs and expectations thereby

continuously improving customer satisfaction. Implementing supplier management Focusing on ESG performance

The Company has established a full-lifecycle supplier We firmly believe that sustainable development is inseparable

Key performance 2025 evaluation system covering admission audits performance from the synchronized efforts of our supply chain partners.assessments dynamic ratings and exit mechanisms ensuring Therefore the Company places a strong emphasis on the

that every partnership is guided by standards and supported ESG performance of its suppliers. Under equal conditions

Customer satisfaction rate was by a system. We have formulated regulations such as the we prioritize collaboration with suppliers who demonstrate

95.5 Sustainable Supply Chain Management Policy Statement and excellent ESG management and performance. Through this % the Supplier Code of Conduct which clearly require suppliers symbiotic effort we aim to build a green and responsible

to fulfill their responsibilities in areas such as safety and supply chain ecosystem ensuring that every collaboration

health employees and community and environment and holds both value and warmth.climate change.Protecting customer

information

The Company strictly adheres to the Personal Information

Protection Law of the People's Republic of China and industry

data security regulations always considering customer privacy

and information protection as a crucial bottom line for its

business development. We have enhanced our Confidentiality

Management System and Customer Management System to

strengthen customer data management. From the collection

and storage of customer information to its use transmission

and destruction we have established standardized control

processes to build a strong security defense against

information leakage tampering and misuse.

17Endeavor

Zhongfu Shenying Carbon Fiber Co. Ltd. 2025 Environmental Social and Governance Report Creating Value and

Seeking Development

Implementing intrinsic safety

Upholding the bottom line of safety to solidify the foundation for development. The Company has always regarded safety as the prerequisite and bottom line for development. We diligently implement

intrinsic safety construction deeply integrating the safety concept into every process and link of production and operation. Through institutionalized standardized and refined safety management we

build a strong protective barrier making intrinsic safety the solid foundation for the Company's high-quality development and ensuring its steady and long-term progress.Information security Building a compliance system Upholding business ethics

The Company attaches great importance to information security Focusing on sound operations and risk prevention Zhongfu Zhongfu Shenying adheres to business ethics as a

management regarding it as a vital guarantee for stable Shenying continuously improves its Compliance Management development principle strictly complies with the Anti-

development and has established a comprehensive network System and systematically streamlines compliance Unfair Competition Law of the People's Republic of

security management system. In terms of governance the management processes. The Company has designated the China and has formulated the Zhongfu Shenying Code of

Board of Directors serves as the highest decision-making body Audit Committee under the Board of Directors to oversee Business Ethics and the Anti-Corruption Policy Statement.for information security providing overarching supervision risk supervision and has established an Audit Department These documents explicitly prohibit corruption in

professional support and strategic direction to fortify the and a Legal Compliance Department to conduct audits legal all aspects of the Company's operations covering

Company's security defenses. On the policy front regulations compliance reviews and related work. A working mechanism all employees suppliers and other partners in its

such as the Administrative Measures for Information System led by the Legal Compliance Department with coordination operations.Security have been formulated to define the security governance from various business departments embeds compliance

framework and solidify management responsibilities at all requirements into daily operations and management to

levels. Furthermore the Company conducts regular vulnerability effectively prevent legal and compliance risks.analyses to promptly identify assess and mitigate security risks.A standardized reporting mechanism has been established

for employees to report security incidents vulnerabilities or

suspicious activities ensuring smooth feedback channels and

fostering a collective defense mindset across the organization. As

of the end of 2025 the Company's industrial informatization office

platform achieved Network Security Level III protection with zero

information security incidents recorded throughout the year.

1803

Harmony:

Protecting the Ecology

and Promoting

Transformation

The path to harmony is defined by an ecological bottom

line and a transformative journey. Zhongfu Shenying deeply

integrates the modern mission of technological innovation

with the corporate responsibility for ecological civilization.Using high-performance carbon fiber materials as a

cornerstone we have built a full-chain low-carbon practice

from green manufacturing to empowering downstream

industries thereby promoting the green transformation

of the industry. Through a comprehensive environmental

management system and continuous innovation in clean

production we not only reduce pollution and carbon

emissions in our own operations but also leverage the power

of our materials to promote lightweight upgrades in key

sectors such as transportation energy and construction. In

our high-quality development we are painting an industrial

picture of harmonious coexistence between humanity and

nature.Contributing to the UN Sustainable Development

Goals (SDGs)Harmony

Zhongfu Shenying Carbon Fiber Co. Ltd. 2025 Environmental Social and Governance Report Protecting the Ecology and

Promoting Transformation

Accelerating Low-carbon Transition

Strengthening environmental

management Cleaner production

The Company strictly abides by all applicable environmental The Company ensures that the emission concentration and total amount of all pollutants including wastewater waste gas waste

laws and regulations such as the Environmental Protection and noise meet the mandatory standards of the state and the locality. We reduce the emissions of air pollutants water pollutants

Law of the People's Republic of China and the Air Pollution hazardous waste and non-hazardous waste enhance the efficiency of resource utilization and reduce the negative environmental

Prevention and Control Law of the People's Republic of China. impact of the Company's production and operation. In 2025 all issues raised by ecological and environmental protection

We adhere to the principle that "Environmental Protection inspections supervision and assistance at all levels were rectified on time with high quality and in full.Must Be Managed Alongside Development Production

and Operation and Business Activities". It implements

environmental protection requirements at all levels of Pollutant Progress in 2025

decision-making execution management and supervision

and continuously implement and build a comprehensive Waste gas Unorganized waste gas collection and treatment have been continuously improved and the collection efficiency environmental responsibility system. Zhongfu Shenying has of the main processes has reached over 90%.obtained environmental management system certification

(GB/T 24001-2016). In 2025 all of the Company's ecological and Waste 100% compliant disposal rate for general solid waste and hazardous waste

environmental protection goals were fully achieved resulting

in a compliance management record of zero environmental Wastewater 13.8% reduction in wastewater discharge intensity per unit of product; wastewater per unit of product 28.1%

violations zero accidents and zero penalties. reduction in COD emission intensity

The Company continuously improves its environmental

management system systematically revising and upgrading

regulations such as the Ecological and Environmental Item 2025 target Progress

Protection Responsibility System and the Implementation Rules

for Ecological and Environmental Protection Management. We

have also formulated and publicly released the Environmental Number of reported incidents of violation (cases) 0 0

Policy Statement promoting the in-depth development of

environmental management towards a more systematic Number of fined incidents of violation (cases) 0 0

refined and closed-loop approach. Number of genuine complaint and report incidents (cases) 0 0

Number of environmental pollution accidents (cases) 0 0

Number of cases involving temporary seizure or revocation of

licenses administrative detention or orders for production 0 0

suspension business closure or shutdown (cases)

Emissions of wastewater waste gas waste noise etc. Compliant with local and national relevant regulations and standards Compliant

20Harmony

Zhongfu Shenying Carbon Fiber Co. Ltd. 2025 Environmental Social and Governance Report Protecting the Ecology and

Promoting Transformation

Green products

The Company continuously strengthens the construction of its green and intelligent manufacturing system explores low-carbon management throughout the entire lifecycle of carbon fiber products increases

investment in energy-saving low-carbon technologies and the application of renewable energy actively explores the construction of zero-carbon factories and strives to achieve industry leadership in energy

consumption and carbon emission intensity for high-value output. Our products are widely used in fields such as wind power hydrogen energy and new energy vehicles contributing to energy conservation and

carbon reduction in downstream industries through their lightweight characteristics. "China Strength" has become a distinct symbol of sustainable material solutions.Empowering green transformation in multiple fields through material innovation

Transportation sector: New energy sector: Construction engineering sector:

Carbon reduction through lightweighting Efficiency enhancement through clean technology Material savings through longevity

The products are used in unmanned cargo aircraft As a key material for wind turbine blades photovoltaic Applied in cables for ultra-long-span bridges structural

rail transit and new energy vehicles. By significantly thermal fields and hydrogen storage cylinders it reinforcement of buildings and high-performance

reducing equipment weight they directly improve effectively enhances the reliability efficiency and concrete enhancement it helps break the limits of

operational energy efficiency and lower energy safety of clean energy equipment serving as an traditional materials extend infrastructure lifespan reduce

consumption and emissions. indispensable supporting force in building a "Green resource consumption and maintenance costs over the

Kinetic Energy" system. entire lifecycle and reshape the "Green Standard" for

infrastructure strength.The first carbon fiber subway train in the country The world's largest 26MW offshore anti-tornadic blade The world's largest-span suspension bridge - Changtai

CETROVO 1.0 - Carbon Star Express Rail Bridge

Protecting biodiversity In the mission of our time to protect clear waters and blue skies the Company has always adhered to the concept of green development committed to achieving a harmonious coexistence between corporate growth and ecological environmental

protection. We strive to minimize the impact of our operations on the natural environment and biodiversity putting our green

development commitment into practice and making the co-construction of a beautiful home where humanity and nature coexist in

harmony a conscious action internalized by every employee.

21Harmony

Zhongfu Shenying Carbon Fiber Co. Ltd. 2025 Environmental Social and Governance Report Protecting the Ecology and

Promoting Transformation

Using Resources Efficiently

Zhongfu Shenying strictly complies with relevant laws and regulations such as the Energy Conservation Law of the People's Republic of China adheres to the development philosophy of being green low-

carbon and circular and actively promotes the transformation of its energy structure and the efficient use of resources. Through systematic measures such as optimizing the energy mix increasing the

proportion of renewable energy and deepening the recycling of water resources the Company is committed to reducing the environmental load of resources per unit of product. It has also established a

special energy-saving team and implemented an energy performance assessment system to continuously explore opportunities for energy conservation and consumption reduction aiming to maximize

energy use efficiency.In 2025 the Company's energy sources included electricity steam natural gas and municipal water.The consumption of new energy electricity was Reduce carbon dioxide emissions increase the purchase of natural gas for use in generating steam instead of traditional

295.5966 coal-fired steam production. million kWh

The electricity consumption of new energy (including green Natural gas consumption increased by reducing carbon dioxide emissions by

certificate electricity) has increased month-on-month 192.86% compared to the previous period

27.23 32000 tonnes. %

Clean energy substitution

Shenying Xining is gradually replacing externally supplied coal-fired steam with self-produced steam from natural gas reducing

carbon dioxide emissions per tonne of steam by 50%.Increasing the proportion of green electricity

The proportion of clean energy such as wind power and hydropower has been continuously increased and the proportion of

electricity consumed by wind power and hydropower has exceeded 75%. The comprehensive energy consumption per unit of

carbon fiber and the carbon dioxide emissions have decreased by 4.4% and 8.2% respectively year-on-year. Among them Shenying

Xining purchased 5708.28 megawatt-hours of green certificates. Shenying Lianyungang relying on the resource endowment of the

Lianyungang sea area has realized the three-dimensional utilization of spatial resources effectively contributing to the reduction

of carbon footprint.

22Harmony

Zhongfu Shenying Carbon Fiber Co. Ltd. 2025 Environmental Social and Governance Report Protecting the Ecology and

Promoting Transformation

Responding to climate change

Zhongfu Shenying anchors its efforts on the national "Dual Carbon" goals integrating climate change response into its overall corporate development. We continuously improve our environmental

governance structure clarify responsibilities at all levels formulate forward-looking response strategies and progressively develop our climate change risk management system. We also set quantitative

indicators to ensure the efficient implementation of our actions.Governance Strategy

To better address the challenges posed by climate change the In the process of responding to climate change to identify and assess the impact of climate-related risks and opportunities on

Company has integrated the concept of climate change into its the Company we integrate risk management requirements. Based on our own operational conditions and with reference to future

sustainable development governance structure. This effectively climate change trends we closely monitor these trends to identify and evaluate potential climate risks and opportunities. We

promotes the implementation of our climate strategy reduces comprehensively assess the Company's climate resilience and based on the analysis results define and adjust our climate change

the impact of climate risks on our operations and involves strategy and response measures in a timely manner. This lays the foundation for enhancing long-term operational resilience and

identifying climate opportunities. By embracing the trends seizing future development opportunities.of clean energy transition and low-carbon development we

contribute to the green development of both the Company Regarding physical climate risks the Company has identified that it will be affected by acute and chronic physical risks such as

and society as a whole6. increased extreme weather and rising sea levels in the medium and long term. However considering the locations of our operations

the continuous improvement of our risk monitoring system and the vigorous promotion of risk emergency response measures the

overall level of physical climate risk is relatively low.

6The Company's governance structure for responding to climate change is consistent with its sustainable development governance

structure.

23Harmony

Zhongfu Shenying Carbon Fiber Co. Ltd. 2025 Environmental Social and Governance Report Protecting the Ecology and

Promoting Transformation

Emphasizing circular economy

Zhongfu Shenying adheres to the development philosophy of "Resource Efficiency and Green Circulation" and has built and practices a "Dual Circulation Development Model" that combines an "Energy

Input Cycle" with a "Product Output Cycle". We are not only committed to optimizing the resource utilization efficiency of our own production processes but also leverage the lightweight properties of

carbon fiber materials to empower downstream industries to achieve systematic energy conservation and carbon reduction promoting the green transformation of the entire value chain.Zhongfu Shenying's "Dual Circulation"

development model

Fostering green and Water resource recycling

lightweight development

Empowering low-carbon Over 99% of the Company's water is used for production

solutions for carbon all sourced from the municipal pipe network. We are

fiber applications fully committed to advancing water recycling through

Promoting natural management and technological innovations such as the

resource circulation cascade utilization of flash steam via ejectors steam

condensate recovery the commissioning of a reclaimed

Developing compre- water reuse project and the upgrade of our wastewater

hensive resource Comprehen- Cascaded

sive utilization resource treatment station thereby achieving efficient closed-utilization in carbon of waste loop utilization of water resources.fiber production utilization

Key performance 2025

Building a product recycling system Reused water volume of 161.857 million

Promoting high-quality recycling and utilization of carbon fiber products

tonnes with a water reuse rate of 98.3%.Energy recycling

The Company has built and practices a "Dual Circulation" development model systematically promoting the optimization of its energy

structure and the extension of resource value. At the energy input end we not only continue to advance the cascaded recovery and Shenying Xining was recognized as

recycling of waste heat and steam to achieve "High-Quality for High-Use Low-Quality for Low-Use" but also reduce the carbon intensity a "Water Efficiency Leader" among

of our energy structure through measures such as replacing high-carbon coal steam with natural gas steam. At the output end we key water-consuming enterprises in

actively direct carbon fiber products toward clean energy fields like wind power and photovoltaics leveraging material innovation to Qinghai Province.support the green and low-carbon transformation of downstream industries. Through the dual path of "Carbon Reduction at the Input

End + Empowerment at the Output End" the Company is gradually achieving a circular leap from energy consumption to value creation

comprehensively enhancing the green benefits of resource utilization.

2404

Responsibility：

Nurturing Talent and

Benefiting Society

Zhongfu Shenying always adheres to the mission of CNBM

"Creating a Better World With Materials". We uphold a

people-centered development philosophy fostering a

humanistic environment of "Happy Work Happy Life

and Mutual Growth for Employees and the Company".We continuously contribute to rural revitalization and

social welfare activities sowing hope on our journey of

progress.Contributing to the UN Sustainable Development

Goals (SDGs)Responsibility

Zhongfu Shenying Carbon Fiber Co. Ltd. 2025 Environmental Social and Governance Report Nurturing Talent and

Benefiting Society

Safeguarding employee rights

Zhongfu Shenying strictly complies with laws and regulations such as the Labor Law of the People's Republic of China and the Labor Contract Law of the People's Republic of China. We also refer to UN

conventions and declarations including the Universal Declaration of Human Rights Inhuman or Degrading Treatment or Punishment and the International Convention on the Elimination of All Forms of

Racial Discrimination to formulate our human rights policy statement. This statement defines the commitments and responsibilities regarding human rights for our own operations suppliers and other

partners. We have improved our human rights due diligence process firmly oppose human trafficking and safeguard the personal freedom and dignity of our employees. We have clarified the channels

for human rights mitigation and remedy grievances investigation procedures compensation plans and system improvements actively building harmonious labor relations.Standardized employment

The Company strictly adheres to internal regulations such as

the Employee Handbook of Zhongfu Shenying Carbon Fiber

Co. Ltd. prohibiting discrimination based on gender ethnicity

religious belief age or region. We treat every employee fairly

and justly maintaining a "Zero-Tolerance" attitude toward

discrimination and committing to protecting employees from

any form of discrimination thereby effectively safeguarding

their rights and interests. During the reporting period the

Company had no instances of child labor or forced labor.Diversity and equality

The Company provides fair and reasonable work opportunities.Decisions regarding employment remuneration training

promotion demotion or retirement are based on an

individual's work capabilities and needs not on factors such

as race nationality religion disability social class sexual

orientation union membership or government relations. The

Company advocates for a diverse and inclusive workforce and

work environment. Senior management is responsible for the

diversity of the Company's employees and regularly conducts

training for all staff on diversity workplace inclusivity and

anti-discrimination.Convening the 2025 Work Conference of Zhongfu Shenying and the 14th Session of the First Workers' Congress

26Responsibility

Zhongfu Shenying Carbon Fiber Co. Ltd. 2025 Environmental Social and Governance Report Nurturing Talent and

Benefiting Society

Caring for employees Upholding the philosophy that "The

Enterprise Is About People for People and

The Company adheres to a people-oriented philosophy placing high importance on employee care. Through a variety of cultural and Loves People" we implement both inclusive

sports activities it enriches the leisure lives of its employees builds a platform for communication and interaction and effectively care and targeted services.addresses their urgent needs and concerns committed to creating a happy and warm working environment.Focusing on the spiritual cultural and daily needs of our

employees we have meticulously built an "Industrial Workers'

Home" to create a diverse cultural and lifestyle hub. We

Organize annual employee welfare health check-ups covering all employees to help them fully regularly carry out four-season care initiatives: "Comfort

Employee health understand their physical condition; in Spring Coolness in Summer Student Aid in Autumn

and Warmth in Winter". During important occasions like

Provide critical illness insurance and employee mutual aid insurance to offer comprehensive and International Women's Day the Dragon Boat Festival and

effective protection for employees. the National Day/Mid-Autumn Festival we plan special

themed activities to convey the Company's warmth in all

aspects effectively enhancing employees' sense of belonging

The Company continuously promotes the scientific rational and standardized management of leave. happiness and fulfillment.Employees are entitled to sick leave personal leave and statutory holidays in accordance with the law.Statutory holidays include: marriage leave bereavement leave family visit leave parental care leave for

single-child families family planning leave and annual leave8:

* Marriage leave: Employees are entitled to 13 days of paid leave for marriage in accordance with the law;

Leave management

* Family visit leave: Employees who do not live with their parents and cannot reunite with them during

public holidays may be granted 20 days of family visit leave depending on the specific circumstances.Round-trip travel expenses for the family visit are reimbursed by the Company;

* Family planning leave: Female employees are entitled to 158 days of standard maternity leave. Male

employees are entitled to 15 days of paid paternity leave during their spouse's maternity leave.Additionally employees can take various types of f.Educational aid During the periods of the national senior and junior high school entrance examinations the

for employees' Company provides exam-accompanying leave for eligible employees. It awards scholarships to the

children children of employees who are admitted to universities and assists the children of employees in

need with applying for educational aid grants through the "Golden Autumn Student Aid" program.Employee

condolences Carried out special condolences and support (such as for birthdays childbirth retirement

and support weddings and funerals) and conducted "Sending Warmth" assistance visits supporting a total of 36 employees in need.

8The Company provides annual leave pay for employees in accordance with legal requirements

27Responsibility

Zhongfu Shenying Carbon Fiber Co. Ltd. 2025 Environmental Social and Governance Report Nurturing Talent and

Benefiting Society

Deepening talent cultivation

Zhongfu Shenying effectively integrates the concept of talent development into its business operations and growth. By providing abundant learning resources and diverse career development paths the

Company offers employees opportunities to showcase their abilities builds platforms for career advancement and achieves a win-win situation for both personal value and company development.Empowering growth through Industrial worker

Middle and senior management capability

training enhancement reform

Focusing on the three core themes of "Application of

The Company has developed an efficient and adaptive talent Lean Work Methods Process Optimization and Refined The Company places great importance on the reform of its industrial

training system. Through customized training new employee Management" the training is closely aligned with the workforce and continuously promotes the enhancement of employee

training and other programs it empowers employees in an Company's needs for management modernization and capabilities. Taking the establishment of the Craftsman College

all-round and multi-level manner establishing a tiered and sustainable development. It adopts a blended online as a new starting point the Company will focus on strengthening

categorized training system that covers the entire career cycle of and offline model to achieve full coverage of middle the capacity of employee representatives to fulfill their duties

employees. and senior management. The aim is to strengthen their optimizing the evaluation mechanism for proposals improving the

strategic execution and refined management capabilities efficiency of cross-level consultations and accelerating the digital

The Company has enhanced the systematic and standardized through systematic empowerment driving the Company's transformation of industrial reform. A special innovation fund will be

nature of its training through measures such as strengthening progression towards lean development. established and incentive mechanisms improved aiming to create

process supervision optimizing onboarding training a replicable and scalable model for industrial reform. This will inject

standardizing the management of internal trainers and revising strong "Craftsman Momentum" into forging a high-quality industrial

training management systems. It conducts specialized tiered and workforce for the new era boosting the Company's transformation

categorized training for groups such as leaders key personnel New employee onboarding training and upgrading and promoting high-quality local economic

and critical positions forming a training model that combines To help new employees integrate into the Company development."Specialized Training + Self-Directed Learning". The training culture more quickly during their probationary period

coverage for leadership personnel reached 100% with specialized the Company regularly conducts new employee

training covering over 400 participants throughout the year. This training. This helps them become familiar with work More than just "Craftsmanship"! The Zhongfu

has effectively promoted the enhancement of competencies and processes and requirements effectively facilitating Shenying Carbon Fiber Craftsman College injects

qualities of employees at all levels providing continuous talent their role transition and cultural integration. innovative momentum into industrial reform

support for the Company's development.* S ystematic training courses: Covering company In August 2025 Shenying Xining's reform of its industrial

Key performance 2025 introduction rules and regulationssafety production workforce yielded another significant achievement: the

integrity education quality management etc.; Company's meticulously established "Zhongfu Shenying

Carbon Fiber Craftsman College" was officially accredited by

the Company Cumulative training * F ull-coverage training: 100% coverage for new the Qinghai Provincial Federation of Trade Unions. This marks

conducted a total of employee onboarding training; a solid step forward for the Company in deepening industrial 62025person-times * R esults-oriented evaluation: Training effectiveness reform and cultivating highly skilled talent.2424 training is assessed through online exams surveys etc. A

Notice of Qualification for Post-training Employment

sessions across all is issued upon passing the exam to ensure the

levels training's practical impact.

28Responsibility

Zhongfu Shenying Carbon Fiber Co. Ltd. 2025 Environmental Social and Governance Report Nurturing Talent and

Benefiting Society

Building a harmonious community together

Zhongfu Shenying is committed to fulfilling its social responsibilities through concrete actions. By deeply engaging in public welfare and charity and contributing to community prosperity the Company

integrates the promotion of local socio-economic development and the enhancement of public well-being with its own growth working hand in hand with stakeholders to build a beautiful and

harmonious society.Leading with passion shouldering public

welfare

On June 13 2025 the "Donating Blood to Pass on Hope

Joining Hands to Save Lives" public welfare and promotional

event for the 22nd World Blood Donor Day in Qinghai

Province was held. As a central state-owned enterpriseDonated to the “Good in Qinghai Shenying Xining has always integrated socialBuilding Public Welfare responsibility into its corporate DNA. By continuouslyFund” for multiple Launched a series of assistance programs including the dedicating itself to the cause of voluntary blood donation

consecutive years; consecutively five-year “Shenying Student Aid Program” and it has become a benchmark and model for public welfarethe “Construction Technology Festival – Resource Utilization practices in Qinghai Province.Day” benefiting hundreds of ethnic minority students through

educational support and material donations;

Actively organize

public welfare teaching

assistance programs

Organized employees to participate in “Voluntary Blood Donation”Environmental campaigns; Shenying Xining was honored with the “Nationalprotection volunteer Voluntary Blood Donation Promotion Award.”

activities

29Zhongfu Shenying Carbon Fiber Co. Ltd. 2025 Environmental Social and Governance Report Future

Outlook

Future Outlook

The "14th Five-Year Plan" has witnessed a remarkable

progress. The grand blueprint for the "15th Five-

Year Plan" is unfolding before our eyes. We always

keep in mind the "Four Comprehensives" and work

collaboratively in the three dimensions of environment

society and governance. We will continuously strengthen

technological innovation and industrial collaboration

promote the deep integration of green manufacturing

and intelligent manufacturing and keep advancing

towards higher intensity higher standards and more

low-carbon and green carbon fiber technologies. We

will adhere to people-oriented principles and safety

as the foundation share development achievements

with shareholders employees customers partners

and society and build a sustainable development

ecosystem of mutual support and co-prosperity. We

will continuously improve the company's governance

system and lay a solid foundation for high-quality

development through compliant transparent and

efficient management.We will adhere to the strategic path of “Greenizationhigh-end digitalization” shoulder the responsibility of

being a "material power" enhance our core competitive

edge and strive to build a globally competitive carbon

fiber technology industry company.

30Zhongfu Shenying Carbon Fiber Co. Ltd. 2025 Environmental Social and Governance Report Appendix

Appendix

Key performance

Environment

Topic index Unit 2023 2024 2025

Total comprehensive energy consumption Tonnes of standard coal 180371.6 163336.1 190242.6

Comprehensive energy consumption intensity Tonnes of standard coal/tonne of carbon fiber 8.7 8.3 8.4

Energy Total direct energy consumption Tonnes of standard coal 2589.1 2045.6 2321.0

Total indirect energy consumption Tonnes of standard coal 177782.6 161290.5 187921.7

Including: total purchased electricity consumption Tonnes of standard coal 61549.3 55859.2 66987.1

Including: total purchased heat consumption9 Tonnes of standard coal 116233.2 105431.3 95742.5

Including: total purchased heat consumption Tonnes of CO2 equivalent 650218.0 586016.0 651032.4

Greenhouse gas emission intensity Tonnes of CO2 equivalent/tonne of carbon fiber 31.2 29.9 28.8

Responding to

climate change Including: total scope 1 greenhouse gas

emissions Tonnes of CO2 equivalent 4642.0 20420.0 60015.0

Including: total scope 2 greenhouse gas

emissions Tonnes of CO2 equivalent 645576.0 565596.0 591017.4

Hazardous solid waste generation Tonnes 1941.7 1505.0 1690.3

Hazardous solid waste generation intensity Tonnes of carbon fiber 0.09 0.08 0.07

Non-hazardous solid waste generation Tonnes 2741.9 2720.9 3467.5

Non-hazardous solid waste generation intensity Tonnes of carbon fiber 0.13 0.14 0.15

Waste Waste disposal-industrial treatment Tonnes 1010.3 2661.6 3050.6

Waste disposal-landfill Tonnes 1251.2 350.0 17.8

Waste disposal-incineration for power generation Tonnes 492.4 40 0

Waste disposal-incineration only no power

generation Tonnes 1929.2 1298.4 1871.4

Resource

consumption Non-renewable material consumption Ten thousand tonnes 4.4 3.9 4.5

31Zhongfu Shenying Carbon Fiber Co. Ltd. 2025 Environmental Social and Governance Report Appendix

Topic index Unit 2023 2024 2025

Material consumption intensity Tonnes of carbon fiber 2.1 2.0 2.0

Total drainage Ten thousand tonnes 173.6 118.2 125.7

Resource

consumption Total water withdrawal Ten thousand tonnes 313.7 243.4 275.7

Water withdrawal intensity Tonnes of carbon fiber 150.7 124.0 122.0

Recycled water volume Ten thousand tonnes 10103.7 10248.8 16185.7

Environmental

investment Amount of environmental investment Ten thousand yuan 3770.7 2733.8 3205.3

Social

Topic index Unit 2023 2024 2025

Total number of employees Persons 3719 2955 3267

Total number of employees by gender - Male Persons 2139 1734 1981

Total number of employees by gender - Female Persons 1580 1221 1286

Total number of employees by ethnicity - Han Persons 3414 2735 2991

Total number of employees by ethnicity - Ethnic minorities Persons 305 220 276

Total number of employees by job rank - Senior management Persons 9 9 8

Total number of employees by job rank - Senior management (Female) Persons 2 2 2

Total number of employees by job rank - Middle management Persons 70 77 75

Total number of employees by job rank - Middle management (Female) Persons 20 22 22

Total number of employees by job rank - General staff Persons 3640 2869 3184

Employee recruitment Total number of employees by job rank - General staff (Female) Persons 1558 1197 1957

Number of employees by age - Under 30 Persons 1455 928 1195

Number of employees by age - 30 to 50 Persons 2169 1944 1969

Number of employees by age - Over 50 Persons 95 83 103

R&D and technical (STEM) personnel Persons 325 303 328

Including: Female R&D and technical personnel Persons 73 76 130

Total number of new recruits Persons 1082 366 970

Total number of internal hires Persons 143 144 102

Internal hiring rate % 13.2 39.3 10.5

Employee turnover rate % 14.5 14.3 16.40

32Zhongfu Shenying Carbon Fiber Co. Ltd. 2025 Environmental Social and Governance Report Appendix

Topic index Unit 2023 2024 2025

Average training hours per person Hours 128.6 110.2 100.0

Training hours by gender - Male employees Hours 127.1 110.2 100.0

Training hours by gender - Female employees Hours 130.7 110.2 100.0

Employee training hours by job level - Senior management Hours 38.9 103.1 78.6

Employee training Employee training hours by job level - Middle management Hours 128.6 116.5 101.4

Employee training hours by job level - General staff Hours 128.9 110.1 100.1

Training hours by age - Under 30 Hours 128.1 110.1 90.7

Training hours by age - 30 to 50 Hours 130.6 110.9 107.2

Training hours by age - Over 50 Hours 88.8 84.5 70.3

Employee training Number of environmental protection training sessions Times 10 12 6

Number of participants in environmental protection training Person-times 3078 1103 4576

Number of employees in the trade union Persons 3719 2955 3267

Percentage of employees in the trade union % 100 100 100

Employee rights Percentage of employees covered by collective contracts % 100 100 100

Percentage of employees represented through the employee representative

conference % 100 100 100

Number of work-related fatalities Persons 0 0 0

Fatality rate per thousand people ‰ 0 0 0

Number of contractor work-related fatalities Persons 0 0 0

Health and safety Number of workdays lost due to work-related injuries Days 0 0 0

Employee lost time injury rate per million hours worked / 0 0 0

Contractor lost time injury rate per million hours worked / 0 0 0

Investment in safety production Ten thousand yuan 1985.5 1797.1 1374.7

Number of patent applications in the year Items 230 269 308

Number of invention patents in the year Items 123 166 197

Number of patents granted in the year Items 95 107 104

R&D investment Number of invention patents granted in the year Items 17 12 27

Cumulative number of valid patents10 Items 212 319 425

Cumulative number of valid invention patents Items 47 59 90

Cumulative number of successful software copyright registrations Items 3 5 7

33Zhongfu Shenying Carbon Fiber Co. Ltd. 2025 Environmental Social and Governance Report Appendix

Topic index Unit 2023 2024 2025

Customer satisfaction survey rate % 100 100 100

Responsible Average customer satisfaction % 95 96.4 95.6

operations Number of cases of employee violations of the code of conduct Cases 0 0 0

Number of integrity and self-discipline commitment letters signed Copies 205 218 192

Number of tier 1 suppliers with transactions (direct transactions) Counts 165 178 200

Number of critical tier 1 suppliers with transactions (sum of grade A and B) Counts 17 17 21

Supplier Percentage of transaction expenditure with critical tier 1 suppliers % 27.6 35.6 31.7

management Number of critical non-tier 1 suppliers with transactions Counts 0 0 0

Total number of critical suppliers for the year Counts 55 60 63

Total number of suppliers undergoing desk or on-site assessments Counts 55 63 81

Supplier Number of suppliers participating in capacity building Counts 8 8 9

management Percentage of critical suppliers participating in capacity building % 30.9 28 14.3

Total public welfare expenditure Ten thousand yuan 46.6 16.2 11.2

Charitable education support - assisting/rewarding children of employees in

need with their schooling Person-times 17 26 33

Charitable education support - total expenditure on assisting/rewarding

children of employees in need Ten thousand yuan 2 1.3 2.1

Social welfare Charitable education support - total number of university students assisted Persons 25 13 21

Charitable education support - total annual scholarship amount disbursed Ten thousand yuan 10 1.3 2.1

Public welfare activities - visiting and supporting employees in need Person-times 34 34 36

Public welfare activities - total expenditure on visiting and supporting

employees in need Ten thousand yuan 4.7 4.3 4.0

34Zhongfu Shenying Carbon Fiber Co. Ltd. 2025 Environmental Social and Governance Report Appendix

Responsible operations

Topic index Unit 2023 2024 2025

Shareholders' Number of shareholders' meetings Times 5 2 3

Meeting Total number of proposals reviewed and approved Items 20 13 15

Number of directors Persons 9 9 9

Number of female directors Persons 2 4 3

Percentage of female directors % 22 44 33

Number of non-independent directors Persons 6 6 6

Board of Directors

Number of independent directors Persons 3 3 3

Number of board meetings Times 9 5 8

Number of proposals reviewed and approved by the board Items 61 41 62

Status of proposal rejections Cases 0 0 0

Key senior management Persons 9 9 8

Senior management

Number of female senior executives Persons 2 2 2

Zhongfu Shenying Carbon Fiber Co. Ltd. Zhongfu Shenying (Shanghai) Technology Co. Ltd. Contact Us

North of South Ring Road Dapu Industrial Zone Lianyungang No. 111 Kaihang Road Zhuqiao Town Pudong New Area Shanghai Domestic Market

Economic and Technological Development Zone

Marketing Director Mr. Teng

Jiangsu Zhongfu Shenying Carbon Fiber Engineering Center Co. Ltd. Zhongfu Shenying Carbon Fiber Lianyungang Co. Ltd. Email: tengyz@zfsycf.com.cn

North of South Ring Road Dapu Industrial Zone Lianyungang No. 15 Xianghe Road Lianyun District Lianyungang City Jiangsu Cell Phone: +86 15150997747

Economic and Technological Development Zone Province International Market

Marketing Director Mr. Jiang

Zhongfu Shenying Carbon Fiber Xining Co. Ltd. Zhongfu Shenying Carbon Fiber Co. Ltd. Beijing Office

Email: jiangag@zfsycf.com.cn

No.2 Ganjia Road Ganhe Industrial Park Xining Economic Floor 16th Building 2 Guohai Plaza No. 17 Fuxing Road Haidian

Development Area Xining City Qinghai Province District Beijing Cell Phone: +86 13585996021

35LET THE WORLD FEEL THE POWER OF CARBON FIBER