Environmental Social

and Governance (ESG) Report

Anhui Huaheng Biotechnology Co. Ltd.About this Report 01 Appendix

Laws and Regulations 97

Message from the Management 03

ESG Key Performance Indicators 99

About AHB 05 Content Index 107

ESG Development Strategy 09 Assurance Statement 115

Responsible Governance: Green Operation: Craftsmanship Products: Humanistic Care:

Strengthen the Foundation Promote Low-carbon Create Outstanding Quality Create a Better Life

of the Enterprise Transformation

Strengthen Standardized Governance 19 Implement Climate Action 29 Ensure Product Safety 55 Gather Enterprising Talents 75

Enhance Compliance Code 22 Optimize Resource Recycling 34 Prioritize Sustainable Products 63 Foster Collaborative Success with Partners 87

Adhere to Business Ethics 25 Protect Ecological Balance 41 Promote Research and Innovation 65 Contribute to Social Welfare 95RESPONSIBLE GREEN CRAFTSMANSHIP HUMANISTIC

01 Environmental Social and Governance (ESG) Report GOVERNANCE OPERATION PRODUCTS CARE APPENDIX 02

About this Report

Report Introduction Commitments and Statements

This report is the third publicly released Environmental Social and Governance (ESG) Report of Anhui Huaheng AHB undertakes to supervise the contents of this report and ensure that there are no false records or misleading

Biotechnology Co. Ltd. (Stock Code: 688639.SH) (hereinafter referred to as "AHB" "the Company" or "we"). This statements. The Board has reviewed and approved this report and guaranteed the authenticity accuracy and

report aims to disclose our strategic vision initiatives and performance in environmental social and governance completeness of the contents of this report.areas for 2025 to our stakeholders.Reporting Scope Obtain This Report

This report covers Anhui Huaheng Biotechnology Co. Ltd. and its subsidiaries and the scope of the report is Stakeholders can view and download this report on the official website of AHB (www.huahengbio.com). This

consistent with that of our Annual Report. The time range is from January 1 2025 to December 31 2025 and the report is available in both Chinese and English for readers to refer to. In case of any ambiguity or inconsistency

release cycle is once a year which is consistent with the fiscal year. due to language the Chinese version shall prevail.Reporting Standards Contact Information

This report is prepared in accordance with the "Guidelines No.14 of Shanghai Stock Exchange (SSE) for Self-Reg-

Address: No.197 Chang'an Road High-tech District Hefei City Anhui Province

ulation of Listed Companies—Sustainability Report (Trial)" (hereinafter referred to as the "Guidelines No.14") and

refers to the "Guide No.13 for Self-Regulatory Supervision on Listed Companies of the SSE STAR Market— Com- Website: www.huahengbio.com

pilation of Sustainable Development Reports" the "Global Reporting Initiative (GRI) Standard for Sustainability Email: ahb@ehuaheng.com

Reporting" issued by the Global Sustainability Standards Boardand the Chemical Industry Standards released by

Tel: +86-0551-65689046

the Sustainability Accounting Standards Board (SASB) among other relevant documents.Data Sources

The content data and cases disclosed in this report are sourced from internal company documents original

internal ledgers publicly available website information and third-party review reports. Some economic

performance data come from our 2025 Annual Report and have been organized edited and reviewed by the

Company's ESG Report preparation team. Unless otherwise specified the currency unit used in this report is RMB.RESPONSIBLE GREEN CRAFTSMANSHIP HUMANISTIC

03 Environmental Social and Governance (ESG) Report GOVERNANCE OPERATION PRODUCTS CARE APPENDIX 04

Message from the Management

2025 marks the 20th anniversary of AHB persistent cultivation and dream-driven advancement as well as a pivotal Honoring Social Responsibilities to Carry Forward Our People-Centered Original Intention

year for the synthetic biomanufacturing industry embracing high-quality development. We have always upheld our

Guided by the people-oriented philosophy we have built a comprehensive talent training and incentive framework to

original aspiration and mission of "advanced biotechnology for healthy life and sustainable world" anchored our

cultivate international interdisciplinary professionals and empower our employees to grow in their careers. Committed

development vision to become a global leader in the biotechnology industry and fully integrated ESG principles into

to win-win outcomes across the industrial chain we cooperate with global partners including BASF and Evonik to build

every link of our corporate strategic planning and daily operation and management. We break new ground through

a sustainable industrial ecosystem and drive coordinated development of upstream and downstream participants. We

green innovation pursue lasting progress via responsible practice and secure steady growth with sound governance.actively engage in public welfare initiatives spanning educational support flood disaster relief and ecological protection

We have delivered solid results across Environment Social and Governance dimensions contributing our strength to

launching multiple charitable donation programs to embody corporate care through tangible actions. We have rolled

the sustainable development of the biotechnology industry.out a penetrative ESG supply chain management system encouraging upstream and downstream partners to jointly

Advancing Green and Low-Carbon Development to Consolidate the Ecological Foundation adopt sustainable development practices and fully embody our identity as a responsible corporate citizen.We adhere to the development pathway of replacing non-renewable petrochemical resources with renewable biological Reinforcing Governance Foundations to Safeguard Stable Long-Term Growth

resources and replacing energy-and-pollution-intensive petrochemical processes with green and clean biological manu-

We keep refining our modern corporate governance structure. We set up the Strategy and ESG Committee and optimized

facturing techniques. We implement the "Triple Zero" Strategy (Zero Carbon Emission Zero Waste Zero Petrochemical Re-

the setup of all special board committees. We operate in full compliance with the newly revised Company Law of the Peo-

source). Leveraging synthetic biotechnology we conduct large-scale production of L-alanine bio-based 13-propanediol

ple's Republic of China while upgrading our internal control and information disclosure systems. We uphold the principle

(PDO) and other products using renewable feedstocks such as glucose. Our core production processes feature low carbon

of win-win shared benefits maintain a high cash dividend payout ratio and deliver tangible returns to shareholders. Rely-

footprints and environmental friendliness and our bio-based PDO has obtained certification for exemptions under the Eu-

ing on transparent governance and efficient administration we secure stable corporate growth and lay solid institutional

ropean Union (EU) Carbon Border Adjustment Mechanism (CBAM). We continuously upgrade production techniques and

groundwork for sustainable development.scale up renewable electricity adoption. We have jointly established a wetland protection station to honor our low-carbon

commitments via a "technology + ecology" model supporting the delivery of China's national "Dual Carbon Goals". Twenty years of remarkable growth lie behind us and we march firmly into a brand-new journey. Despite multiple

headwinds in 2025 including supply-demand volatility across the industry and mounting international trade barriers

Boosting Innovation Leadership to Unleash New Industrial Growth Drivers we press steadily ahead taking innovation as our blade and corporate responsibility as our sail. Standing at the new

milestone of our 20th anniversary we will hold fast to our green development aspiration stay focused on our core

We pursue integrated innovation of biology and AI (Artificial Intelligence) and consistently ramp up research and develop-

synthetic biotechnology business and prioritize technological innovation global layout and ESG implementation

ment (R&D) investment. Thirty-three new patents were newly granted throughout the year and we were named one of

as our key workstreams. We aim to create value for shareholders enable employee career advancement chart the

the first batch of National biomanufacturing Pilot-Scale Capacity Building Platforms designated by Ministry of Industry

development roadmap for the whole industry and contribute our share to society writing a brilliant new chapter of

and Information Technology (MIIT). This has opened up a full-chain transformation channel covering laboratory research

sustainable development for AHB over the next two decades.all the way to commercial industrialization. We deepen our footprint in the bio-based new material track facilitating the

application of 13-propanediol and other products in high-end materials daily chemicals and other sectors to accelerate

the popularization of green materials. By advancing "Biology + AI" integrated innovation we have built an intelligent

R&D system and overcome core technical hurdles including strain construction and fermentation control. We spearhead

industrial upgrading through technological breakthroughs delivering our insights to fuel the development of new quality

productivity.RESPONSIBLE GREEN CRAFTSMANSHIP HUMANISTIC

05 Environmental Social and Governance (ESG) Report GOVERNANCE OPERATION PRODUCTS CARE APPENDIX 06

About AHB Main Business and Products

As a global leader in bio-manufacturing AHB continues to make efforts in synthetic biology innovation and R&D and has

gradually formed a business layout of amino acids vitamins bio-based new material monomers and other products.Company Profile Multiple Categories Multiple Products Applications

Alanine series L-Valine Isoleucine Intermediates

Amino Acids

Tryptophan Arginine

Anhui Huaheng Biotechnology Co. Ltd. is a high-tech enterprise centered on synthetic biology dedicated to green

technological innovation and the creation of green value. Until now our main products include amino acid series Animal nutrition

(alanine series L-valine isoleucine tryptophan arginine etc.) vitamin series (D-calcium pantothenate D-panthenol Vitamins D-Calcium D-Panthenol Inositol

inositol) bio-based new material monomers (13-propanediol succinic acid) and other products (malic acid arbutin). Pantothenate

These products can be widely applied in intermediates animal nutrition personal care human nutrition & flavor plant Personal care

nutrition and many other fields. After years of innovative development AHB has become a global leader in the Bio-based New

manufacturing of bio-based products. Materials 13-Propanediol (PDO) Succinic Acid

Monomers Human nutrition

AHB upholds the concept of green environmental protection developing cutting-edge synthetic biology technology. & flavor

We have successfully undertaken the National Development and Reform Commission's Biotechnology Industry

Demonstration Project and won the title of Champion in Manufacturing by the MIIT. Currently AHB owns the AHB

Other Products Malic Acid Arbutin

Synthetic Biology Research Institute which possesses sustainable innovation capabilities as well as four major Plant nutrition

production bases in Changfeng Qinhuangdao Bayannur and Chifeng all known for high-quality delivery capabilities.Development Strategy

Vision Mission Core Values

To become the global leader in a Advanced biotechnology for Drive Customer Achievement

new biomanufacturing paradigm. healthy life and sustainable world. Champion Mutual Success

Excellence through Innovation

Powered by Dedication.Development Path

Replacing non-renewable petrochemical resources with renewable biological resources and replacing

energy-and-pollution-intensive petrochemical processes with green and clean biological manufacturing techniques.RESPONSIBLE GREEN CRAFTSMANSHIP HUMANISTIC

07 Environmental Social and Governance (ESG) Report GOVERNANCE OPERATION PRODUCTS CARE APPENDIX 08

Honors

Honors and Certifications

High-performance Bioreactors Innovation Task National MIIT Landmark Product in

"Open Bidding for Selecting the Best Candidates" Bio-manufacturing

In 2025 AHB actively improved in four dimensions: environment labor (Participating Unit) (L-alanine)

and human rights business ethics and sustainable procurement and

National biomanufacturing Pilot-Scale National Specialized Refined Differential and won the silver medal in EcoVadis rating1.Capacity Building Platforms Innovative "Little Giant" Enterprise

(Bayannur Huaheng)

First Batch of High-tech Enterprise in Anhui Province Synthetic biomanufacturing

Hebei Province 2025 Industry Innovation Center

(Qinhuangdao Huaheng)

Qualifications National Postdoctoral Research Workstation

Provincial "Triple Firsts" Product of Hefei

(L-alanine)

2025 Anhui Province Future Industry Landmark First Batch of "Three New" Products

New Product Certified in 2025

(High-Yield Inositol via Green Biosynthesis) (New Product: Bio-based L-valine)

ISO 14001 Environmental Management ISO 50001 Energy Management System

Systems Certification Certification Top 50 Listed Companies in China for

Top 30 Biostimulant Enterprises in China New Quality Productivity

ISO 9001 Quality Management System ISO 22000 Food Safety Management ESG Performance

Certification System Certification

Young Professionals SDG Innovation SSE Eagle Golden Quality Award -

ESG Accelerator Certification

Top 100 ESG Enterprises

United Nations Global Compact (UNGC) Shanghai Securities NewsRecognition (China Securities Network)

The 3rd Guoxin Cup·ESG Carbon

ISO 45001 Occupational Health and Safety ISO 27001 Information Security Management Neutrality Golden Bull Award 2025 ESG Pioneer Individual Award

Management System Certification System Certification China Securities Journal CCX Green Finance

2025 Best ESG Innovation Award

CCX Green Finance

GB/T 29490-2023 Intellectual Property China National Accreditation Service for

Wind ESG Rating CCX Green Finance ESG Rating

Compliance Management System Certification Conformity Assessment (CNAS) Laboratory ESG Rating

Accreditation Certificate A A

1 AHB won the Silver Award in March 2026. Search link: https://recognition.ecovadis.com/Rrb0BaLXtE-riJ2PLaOJqgRESPONSIBLE GREEN CRAFTSMANSHIP HUMANISTIC

09 Environmental Social and Governance (ESG) Report GOVERNANCE OPERATION PRODUCTS CARE APPENDIX 10

ESG Development Strategy ESG Management System

AHB has established a sound three-tier ESG governance structure comprising the Board of Directors the Strategy and ESG

Committee and the ESG Working Group to ensure that the concept of sustainable development runs through all corporate

AHB regards ESG management as a core strategy and deeply operations. Through a clear division of responsibilities the roles and functions of the Board of Directors and its subordinate

integrates the concept of sustainable development into all Strategy and ESG Committee are strengthened in researching and formulating our ESG strategy identifying material topics

aspects of AHB's operations. By establishing a sound ESG gover- managing ESG risks and opportunities driving ESG performance management and enhancing capital market rating perfor-

nance structure formulating a clear sustainable development mance.strategy and actively communicating and collaborating with all

stakeholders AHB continuously optimizes the management and

analysis of material topics and promotes the systematization and

standardization of ESG practices. ESG Governance Structure ESG-related Functions

As the highest decision-maker for our ESG management the Board of Directors is responsible

Board Statement for formulating the overall strategic direction of ESG management overseeing the progress of

Board of Directors ESG initiatives and ensuring the deep integration of the sustainable development concept with

The Board of Directors of AHB actively integrates ESG into our our long-term development goals.supervision and management including participating in

decision-making on major ESG-related matters overseeing the

direction of the ESG strategy and managing ESG-related risks

and opportunities. The Board of Directors will continue to Under the leadership of the Board of Directors the Strategy and ESG Committee is responsible

improve our corporate governance structure refine our internal for conducting in-depth research and formulating our ESG strategic plans identifying material

control system standardize corporate operations and ensure ESG topics relevant to our business and assessing ESG risks and opportunities. Meanwhile the Strategy and

our steady and sustainable progress on the path of sustainable Committee is also responsible for guiding the construction of the ESG performance manage-ESG Committee ment system promoting the close integration of ESG goals with business operations and

development.overseeing the implementation of ESG-related policies to ensure the effective execution of

The Board of Directors requires the management to implement strategies.environmental management policies to reduce the ecological

footprint improve resource utilization efficiency and lower

pollutant emissions thereby protecting the health of the

environment and ecosystems and aligning our long-term devel- The ESG Working Group as the implementation level of the ESG strategy is responsible for

opment with social and environmental interests. The Board of concretely implementing the decisions of the Board of Directors and the Strategy and ESG

ESG Working Group

Directors undertakes to actively fulfill its social responsibilities Committee. The main functions include: carrying out daily ESG management coordinating

attract talents with an open and inclusive attitude and safeguard various departments to advance ESG projects collecting and analyzing ESG data compiling

ESG reports and communicating ESG progress with internal and external stakeholders. In

the legitimate rights and interests of employees. Meanwhile we

addition the Working Group is tasked with tracking the latest developments in the ESG field

will focus on our core business of synthetic biology enhance the putting forward improvement suggestions and driving the continuous optimization of our

industrialization capability of key technologies and revitalize sustainable development practices.industrial vitality.RESPONSIBLE GREEN CRAFTSMANSHIP HUMANISTIC

11 Environmental Social and Governance (ESG) Report GOVERNANCE OPERATION PRODUCTS CARE APPENDIX 12

ESG Strategic Planning Case AHB Received "Young Professionals SDG Innovation Accelerator" Certification from the UNGC

AHB takes "Green Source Reborn Carbon Recycling for the Future" as the core of its ESG strategy committed to driving AHB actively advances the SDGs and promotes the deep

resource recycling and regeneration and contributing to global sustainable development through green innovation in synthet- integration of ESG strategy with global sustainable devel-

ic biology technology. Biosynthetic technology is not only a key pathway to replace traditional chemical processes but also an opment issues. During the reporting period AHB was

important force in achieving carbon reduction targets. We hope to set a benchmark for the industry through breakthroughs in certified by the UNGC as part of its Young Professionals

SDG Innovation Accelerator marking that AHB's contribu-

green technologies and contribute our part to the sustainable development of the planet.tion to the SDGs through its young talent development

AHB's ESG strategy is closely aligned with the Sustainable Development Goals (SDGs) of UNGC and centers on four pillars: G— model has received international authoritative recognition.Responsible Governance E—Green Operation S—Craftsmanship Products and S—Humanistic Care. Starting from within AHB

and gradually extending to partners communities and society this framework reflects AHB's grand vision of driving industry

transformation through green technology and co-creating a better future. Through continuous innovation and responsible

practices AHB will not only deliver higher-quality products to customers but also inject more green momentum into the

sustainable development of the planet joining hands with global partners to move toward a better future together."Young Professionals SDG Innovation Accelerator" Certification

Green Source

Reborn

Carbon Recycling

for the FutureRESPONSIBLE GREEN CRAFTSMANSHIP HUMANISTIC

13 Environmental Social and Governance (ESG) Report GOVERNANCE OPERATION PRODUCTS CARE APPENDIX 14

Stakeholder Communication

AHB values the expectations and needs of its stakeholders and is committed to establishing a systematic and regular commu-

nication mechanism. AHB maintains close ties with stakeholders including government and regulatory agencies shareholders

and investors employees customers suppliers and partners. Through various channels we extensively collect and carefully

listen to the opinions of all parties. Meanwhile we continuously optimize communication channels to gain an in-depth under-

standing of the impact of our operations on stakeholders address challenges posed by ESG risks enhance trust among all

parties and collectively advance the achievement of sustainable development goals.Stakeholders Expectations and Demands Communication Channels and Mechanisms Stakeholders Expectations and Demands Communication Channels and Mechanisms

Compliance Supervision and inspection Sustainable supply chain Supplier selection and evaluation

Pay taxes according to law Meeting exchange Product quality and safety Supplier communication meetings

Government and Anti-corruption Open consultation Intellectual property protection Strategic cooperation

Regulatory Agencies

Suppliers and Partners Business ethics Research visits

Protection of shareholders' equity Information disclosure announcement

Good corporate governance Shareholder's meeting

Increase return on investment Daily phone and email communication

High quality information disclosure Exchange on the SSE e-interactive platform Product R&D and innovation Industry communication

Shareholders

and Investors Risk management Performance presentation Industry development On-the-spot investigation

Business ethics Investor research Industry Associations

Employee rights protection Workers' congress

Employee compensation and benefits Staff training

Public welfare charity Public welfare activities

Employee health and safety Performance evaluation

Community development Community visits

Employees Staff training and development Complaint and feedback mechanism

Community Environmental protection Employee volunteer service

Product quality and safety Customer visits and communication

Sustainable product Customer satisfaction survey

Quality service Exhibition customer communication Scientific research and innovation Cooperation between school

and enterprise

Customers Information security and privacy Industry communication and

Universities and Talent cultivationprotection discussion activities

Research Institutes Academic researchRESPONSIBLE GREEN CRAFTSMANSHIP HUMANISTIC

15 Environmental Social and Governance (ESG) Report GOVERNANCE OPERATION PRODUCTS CARE APPENDIX 16

Assessment of Double Materiality Topics 2024 Version 2025 Updated

Customer Service Product Quality and Safety

We use a double materiality topic assessment method in ESG management practice to scientifically and systematically identify Responsible Marketing Safety and Quality of Products and Services

and prioritize the most critical ESG topics for us and stakeholders.In 2025 we collected a total of 69 valid responses through a Human Rights and Labor Rights Management

questionnaire survey and extensively collected feedback and suggestions from various stakeholders including the Company’s Employee Compensation and Benefits Employee Rights Protection

directors senior management employees and suppliers. The assessment is conducted from two dimensions: impact materiality Topic Integration & Split Diversity Inclusion and Equality

(i.e. the impact on environment and society) and financial materiality (i.e. the impact on AHB's financial performance).Business Ethics and Anti-Corruption Anti-Bribery and Anti-Corruption

Anti-Unfair Competition

The 2025 material topics for AHB were identified through the following processes:

Waste Management Waste Disposal Pollutant Emission

Clean Technology Opportunities Corporate

Deleted Topics

By comprehensively referring to international standards and disclosure frameworks (GRI SASB SDGs) Governance Investor Rights Protection

capital market rating agencies (EcoVadis CDP MSCI) requirements of the SSE and key customers peer

Identification Environmental Compliance Management performance and our own business development we identified 24 material ESG topics most closely related Ethics of Science and Technology Rural

to our operations. Added Topics Revitalization Equal Treatment to Small and

Medium-sized Enterprises (SMEs)

We invited internal and external stakeholders to assess the materiality of topics through questionnaires

Research including our management team the ESG Working Group employees customers suppliers and partners. The results of AHB's 2025 double materiality assessment are as follows:

High

Topics were prioritized through quantitative assessment across the two dimensions of impact materiality and

Prioritization Energy Utilizationfinancial materiality.Water Utilization

Waste Disposal

Review Our management team reviewed the topic assessment process and prioritization results. Intellectual Property Protection

Safety and Quality of Products and

Supply Chain Security Services

Employee Rights Protection

Following the review the Board of Directors and management team confirmed the results of this year's Employee Health and Safety

Confirmation double materiality assessment. Training and Talent Development Innovation-Driven

Anti-Bribery and Anti-Corruption Environmental Compliance

Data Security and Customer Privacy Management

Protection Compliance and Risk Management

In 2025 we implemented multi-dimensional adjustments to the list of material topics in compliance with the Guidelines No.14 Chemical Safety Management

issued by the SSE. Three removed topics are no longer presented as standalone items and the relevant content has been Pollutant Emission

integrated into corresponding sections of the report for disclosure. The specific adjustments are set out below: Impact

Materiality

2024 Version 2025 Updated Response to Climate Change

Ecosystem and Biodiversity

Climate Change and Greenhouse Gas Protection

Emissions Response to Climate Change

Social Contribution

Energy Management Energy Utilization Rural Revitalization

Water Resource Management Water Utilization Equal Treatment to SMEs

Naming Adjustment /Research and Innovation Innovation-Driven Ethics of Science and Technology

Sustainable Supply Chain Supply Chain Security Anti-Unfair Competition

Biodiversity Conservation Ecosystem and Biodiversity Protection Circular Economy

Data Privacy and Security Data Security and Customer Privacy

Protection Low Financial Materiality HighGREEN CRAFTSMANSHIP HUMANISTIC

17 Environmental Social and Governance (ESG) Report PREFACE OPERATION PRODUCTS CARE APPENDIX 18

01 Responsible GovernanceStrengthen the Foundation of the Enterprise

*Strengthen Standardized Governance

*Enhance Compliance Code

*Adhere to Business Ethics

SDGs Aligned with This ChapterGREEN CRAFTSMANSHIP HUMANISTIC

19 Environmental Social and Governance (ESG) Report PREFACE OPERATION PRODUCTS CARE APPENDIX 20

Strengthen Standardized Governance In 2025 the Shareholders' Meeting the Board of Directors and the Management Team exercised clear rights and responsibili-ties performing their respective duties checking and balancing one another while maintaining coordination.Governance Structure Shareholders' Meeting

As the supreme decision-making body it decides on the appointment and removal of directors and supervisors

AHB continues to deepen the reform of its governance system. In 2025 in accordance with relevant laws and regulations refinancing major external investments connected transactions and other material matters. The convening proposal

including the Company Law of the People's Republic of China and the Transitional Arrangements for the Implementation of submission holding voting and resolution of Shareholders' Meeting sessions are all witnessed by on-site lawyers who

Supporting Systems and Rules under the New Company Law AHB abolished the Board of Supervisors. We clarified a manage- issue legal opinions confirming legality and compliance.ment structure composed of the Shareholders' Meeting the Board of Directors and the Management Team and defined the

duties and powers of each tier. The powers and functions previously exercised by the Board of Supervisors are now undertak-

en by the Audit Committee of the Board of Directors. Meanwhile we formulated and continuously revised corporate gover-

nance documents such as the Rules of Procedure for the Shareholders' Meeting of AHB and the Rules of Procedure for the

Board of Directors of AHB. We have continuously improved the corporate management system and ensured standardized Board of Directors

operation through institutionalized checks balances and coordination. Accountable to the Shareholders' Meeting it determines our business plans and investment proposals implements

resolutions of the Shareholders' Meeting and strengthens its functions in strategic decision-making and risk control.Corporate Governance Structure The Board of Directors has four subordinate committees: the Strategy and ESG Committee the Remuneration and

Evaluation Committee the Audit Committee and the Nomination Committee.Shareholders' Meeting

Management Team

Board of Directors Accountable to the Board of Directors it oversees our daily production operation and management in accordance with

its job responsibilities and within the scope of authority delegated by the Board of Directors.In 2025

Strategy and Nomination Remuneration and

ESG Committee Committee Evaluation Committee Audit Committee Number of Number of Proposals deliberated Number of Board Number of Proposals deliberated

Shareholders' Meeting held at Shareholders' Meetings of Directors held at Board of Directors Meetings

5 times 29 items 9 times 68 items

Management TeamGREEN CRAFTSMANSHIP HUMANISTIC

21 Environmental Social and Governance (ESG) Report PREFACE OPERATION PRODUCTS CARE APPENDIX 22

Diversified Governance Enhance Compliance Code

AHB attaches great importance to the independence and diversity of the Board of Directors and continuously refines the

Working Rules for Independent Directors. Meanwhile AHB emphasizes diverse backgrounds (such as gender age profession-

al expertise etc.) in director nominations. All Board members possess extensive industry experience covering fields including Compliance and Risk Management

biochemistry applied science accounting and finance.Governance

Board Composition:

AHB has established a comprehensive risk management system and formulated systems including the Control Procedures for

Risk and Opportunity Response Measures the Management Procedures for Internal and External Environmental Analysis and

the Internal Audit Management Specifications to standardize the entire risk management process. The Board of Directors and

1 its special committees are responsible for overall risk oversight and management. The Audit Committee regularly reviews director aged 45 or below internal control and audit-related policies and the effectiveness of their implementation and evaluates the performance of

Age 3 external audit institutions. The Legal and Audit Department is dedicated to identifying and breaking down compliance risks in Composition directors aged 45-55 business operations implementing special prevention and control measures and promptly following up on and handling

5 various compliance issues fed back internally and externally. At the same time in accordance with the latest laws and regula-directors aged over 55 tions the requirements of the enterprise internal control standard system and our own business practices we continuously

evaluate update and improve our internal control system.Strategy

AHB has specially formulated risk management procedures to systematically identify assess and address various risks that may

3 adversely affect sustainable development goals and daily operations. AHB adheres to establishing improving and effectively independent directors

Independence implementing an internal control system. By enhancing internal control management we improve the efficiency of business

Composition management and decision-making ensure legal and compliant operations and the security and integrity of assets consolidate

6 the authenticity of financial reports and related information and effectively support the implementation of our development non-independent directors strategy.

Impacts Risks and Opportunities Management

AHB comprehensively manages internal and external risks involved in business activities through special risk assessments

internal audits and other methods and implements corresponding working procedures and control measures to achieve effec-

tive risk control.Risk Control To help us better identify assess and address risks that may adversely affect our sustainable development

Investor Relations Management Procedures goals and operations we have formulated risk management procedures.AHB attaches great importance to investor relations management. Upholding the principles of "Compliance and Transparency Risk Identification Risk Assessment Risk Response and Control

Equality and Integrity and Efficient Interaction" AHB has established management systems including the Investor Relations We shall have insights and analysis of An assessment is conducted to The risk owner is designated to

Management Policy and the Information Disclosure Management Policy and strictly complies with regulatory requirements to risks related to macro external determine the level of identified risks. formulate a work plan and take

standardize the entire process of investor communication and information disclosure. We always adhere to fair treatment of all environment segment industry effective measures to respond to the

investors and in particular create opportunities for minority investors to participate in activities. At the same time we build a technology law and other fields and risk in a timely manner to reduce the

identify potential risks that may affect Risk Monitoring and Reporting adverse impact.diversified online and offline communication platform relying on various forms such as the SSE e-interactive platform investor our medium- and long-term Potential compliance risks are

relations email and hotline performance presentations and investor research visits to unblock communication channels with development according to the identified in a timely manner through

investors. We timely and accurately disseminate information on our operations governance and sustainable development expectations or needs of stakeholders. monitoring and early warning and

effectively enhancing investors' understanding and recognition of us and building a sound investor relationship based on reported to the relevant responsible

personnel in a timely manner.mutual trust and win-win cooperation.GREEN CRAFTSMANSHIP HUMANISTIC

23 Environmental Social and Governance (ESG) Report PREFACE OPERATION PRODUCTS CARE APPENDIX 24

Strengthening Our internal control covers major aspects of business management. During the reporting period we focused Data Privacy and Security

Internal Control on supervising and evaluating high-risk areas including the sales and collection process procurement and

payment process project management process and information system management process. There were AHB attaches great importance to data asset protection and privacy compliance management. Adhering to the principles of security

no material deficiencies affecting our business development and no material omissions were found in the first and compliance-oriented we have built a comprehensive data security governance framework establishing robust safeguards in

entities and businesses included in the scope of evaluation. Our internal control system is sound and reason- terms of institutional systems technical protection and employee awareness. We fully prevent risks such as data leakage and misuse

able and its implementation is effective. and effectively protect the information security and legitimate rights and interests of the enterprise employees and partners.Policy and Certification

End-to-End To prevent compliance and legal risks related to seal use AHB strictly implements closed-loop control over AHB strictly complies with laws and regulations including the Cybersecurity Law of the People's Republic of China and the Data

Seal Control the entire process of seal engraving custody use off-site carrying and destruction in accordance with the Security Law of the People's Republic of China. Guided by the International Standard for Information Security Management

Seal Management Specifications. A seal management mechanism of "centralized oversight separation of System (ISO/IEC 27001) we have established a comprehensive and end-to-end institutional system for data security and

approval and usage decentralized custody and full-process traceability" has been established. informatization management control. We have set up the Information Security Management Department under the Process

Information Center which is responsible for the overall construction of the information security system policy formulation

maintenance of technical security protection systems handling information security incidents and organizing cultural devel-

Internal Audit Based on the Internal Audit Management Specifications the Legal and Audit Department conducts regular opment activities such as information security training and red-blue exercises. Quarterly regular inspections are conducted

Supervision internal audits including annual audit projects and special investigation projects. Audit projects are carried based on information security checklists to achieve closed-loop management of potential risks. In 2025 we issued and imple-

out in strict accordance with the full process of planning project initiation implementation rectification and

mented a series of rules and regulations including the Information Security Management Specifications Process and Informa-

filing. The Department promptly follows up on and addresses compliance issues raised internally and exter- tization Management System Master Data Management Specifications IT Operation and Maintenance Management Specifi-

nally maintains a ledger of audit findings and tracks rectification progress to ensure timely resolution of cations and Digital Project Implementation Management Specifications providing solid institutional guarantees for data

various potential risks and continuously enhance the effectiveness of internal control supervision. security privacy protection and compliant informatization operations. At present AHB and its subsidiaries have obtained ISO

27001 Information Security Management System Certification.

Customer Privacy Protection Measures

Indicators and Targets Key Performance AHB has built a customer privacy protection institutional system centered on the Information Security Management Specifica-

AHB attaches great importance to the practical implementation and tions clarifying control requirements for the entire lifecycle of customer information including collection storage use trans-

During the reporting period

closed-loop management of compliance control fully incorporates compli- mission and deletion. In terms of data management AHB implements classified and tiered data management dividing data by

ance performance into departmental and individual performance assess- 11 compliance audit projects sensitivity level and enforcing differentiated access control. In customer information processing we strictly follow the minimum ments and ensures that all employees fulfill their compliance responsibilities. were completed. necessity principle collecting only business-related necessary information and clearly informing customers of the purpose and

scope of information use. All customer information is stored in encrypted form and strict permission control ensures that only

authorized personnel can access it in accordance with their duties effectively safeguarding customer privacy and security.Information Security Management Measures

We have established a sound information security inspection mechanism. We regularly conduct in-depth inspections

Optimization of of business processes system architectures and network facilities accurately identifying potential security vulnera-

Information bilities configuration deviations and abnormal operations through a combination of automated detection tools and

Security System manual reviews. A list of identified issues is immediately assigned for rectification followed by tracking and

re-inspection to achieve dynamic elimination of information security risks.We have introduced advanced network access control systems to strengthen network security defenses. We

Upgrading of

optimize firewall rules to intelligently identify and block complex attacks such as Advanced Persistent Threats (APT)

Information

and malware propagation defending against external network risks. We continuously improve data leakage preven-

Security

tion technologies to effectively block unauthorized external data transmission and further reduce data leakage risks.Technologies

A bastion host system has been deployed to effectively mitigate brute-force attack threats to remote login.We require all new employees to complete information security training during onboarding to enhance their aware-

ness of information security protection. Information security culture is integrated into daily operations such as

incorporating information security knowledge into training materials for projects like SAP (System Applications and

Information Products). Through information security knowledge promotion across various training scenarios comprehensive

Security Training coverage is achieved from employee onboarding to daily business training. In 2025 we conducted 4 information

security training sessions with a cumulative attendance of 1339 person-times. The training covers multiple modules

including security awareness building risk prevention and security incident response to comprehensively reinforce

our information security defenses.GREEN CRAFTSMANSHIP HUMANISTIC

25 Environmental Social and Governance (ESG) Report PREFACE OPERATION PRODUCTS CARE APPENDIX 26

Adhere to Business Ethics

AHB has formulated a sound code of business ethics and an internal supervision system continuously strengthening the

compliance and ethical awareness of all employees and partners and fully consolidating the foundation of corporate business

ethics and anti-corruption governance.Integrity Construction Integrity Practice and Risk Prevention Training Case-Based Compliance Lectures by External Experts

Complying with the requirements of laws and regulations including the Company Law of the People's Republic of China and the Reporting Channels

Anti-Unfair Competition Law of the People's Republic of China AHB has formulated and continuously improved internal

systems such as the Code of Business Conduct for Employees and the Integrity and Compliance Policy regulating professional AHB issued and implemented the Complaint and Reporting Management Specifications establishing reporting channels for

conduct clarifying compliance standards and covering all employees and external partners. Meanwhile a robust responsibility misconduct including commercial bribery and corruption embezzlement and fraud conflicts of interest and self-dealing and

violations of business ethics to effectively protect the legitimate rights and interests of employees suppliers customers and

mechanism for integrity building has been established. The Audit Head and the Audit Department are responsible for supervis-

other stakeholders.ing and managing integrity work including following up on major integrity projects managing integrity documents and

information guiding various departments in conducting integrity risk assessment and prevention promoting the latest integri-

Email: shenji@ehuaheng.com Complaint and Reporting Hotline: 0551-65388639

ty regulations and practices and handling and investigating integrity complaints and reports. Integrity officers implement and

Mailing Address: Legal and Audit Department No. 197 Chang'an Road Baiyan Science Park High-tech District Hefei City

promote integrity policies raise anti-corruption awareness among employees in their respective departments conduct integ-

rity risk assessment and prevention related to business processes consolidate primary responsibilities at all levels.Protection for Reporters: AHB maintains strict confidentiality of the identities of reporters and witnesses as well as the

content of reports throughout the process. Reporting materials are managed as top-secret documents with restricted access;

Integrity Construction Initiatives disclosure of relevant information to the reported party or unauthorized personnel is strictly prohibited. Meanwhile retaliation

in any form is expressly forbidden. Violators will be seriously disciplined for gross misconduct and those suspected of criminal

Regular Reviews by The Audit Committee regularly reviews the implementation of internal systems and norms and provides policy offenses will be referred to judicial authorities in accordance with the law.the Audit Committee guidance.Key Performance

Timely rate of Business ethics and Corruption-related

AHB provides all employees with the Code of Business Conduct for Employees and the Employee Integrity Commit- reported complaints anti-corruption reported incidents litigation cases

Employee

ment Letter requiring all employees to familiarize themselves with and study relevant content. The Human

Commitment

Resources Center organizes all employees to sign the Employee Integrity Commitment Letter achieving a 100%

and Training 100 % 0 cases 0 cases

signing rate.Anti-Unfair Competition

Anti-Corruption Led by the Legal and Audit Department AHB conducts integrity risk assessments for high-risk positions including

Risk Position procurement sales production R&D finance engineering human resources and audit. AHB grades relevant risks AHB always abides by the requirements of laws and regulations including the Anti-Unfair Competition Law of the People's

Assessment and implements corresponding control measures. Republic of China continuously optimizes internal management documents such as the Code of Business Conduct for Employ-

ees and consolidates the compliance foundation for anti-unfair competition work. AHB explicitly prohibits all forms of unfair

competition including false advertising monopolistic practices commercial fraud and infringement of trade secrets. Meanwhile

AHB launches anti-corruption poster campaigns during major festivals. Integrity promotional boards and public AHB strictly complies with integrity codes and specific norms formulated by the countries/regions where it operates industry

Anti-Corruption notice boards are set up at base construction sites to comprehensively enhance employees' anti-corruption aware- regulatory authorities and relevant organizations ensuring full-process compliance of business activities.Promotion ness. AHB plans to expand the scope of integrity promotion establish an accountability mechanism for major

liability accidents within AHB and form an effective deterrence. We require all employees to adhere to high standards of integrity and conduct treat others with sincerity and act in good faith

and refrain from any unethical practices that violate the bottom line of business ethics.In addition we actively conduct training on anti-unfair competition continuously strengthen all employees' compliance aware-

Anti-Corruption AHB regularly organizes anti-corruption and integrity compliance training for all employees. During the reporting ness and capabilities to prevent and control unfair competition risks and build a solid ideological defense line for integrity-based

Training period a total of 2 anti-corruption training sessions were held. operations. In 2025 there were no litigation or major administrative penalties resulting from our unfair competition practices.RESPONSIBLE CRAFTSMANSHIP HUMANISTIC

27 Environmental Social and Governance (ESG) Report PREFACE GOVERNANCE PRODUCTS CARE APPENDIX 28

02 Green OperationPromote Low-carbon Transformation

*Implement Climate Action

*Optimize Resource Recycling

*Protect Ecological Balance

SDGs Aligned with This ChapterRESPONSIBLE CRAFTSMANSHIP HUMANISTIC

29 Environmental Social and Governance (ESG) Report PREFACE GOVERNANCE PRODUCTS CARE APPENDIX 30

Implement Climate Action Type Risk/Opportunity Potential Financial Impact Time Response MeasuresDescription Impact Horizon

Market *Consumer preferences and *The market has higher Medium-term *Adhere to our sustainable

needs are constantly requirements for Long-term development concept

Response to Climate Change changing. products and we may optimize the level of

face more competitive production technology in

pressure. order to provide better

The ESG Working Group of AHB undertakes the core responsibility of identifying climate-related risks. By submitting relevant quality products to meet the

topics to the Board of Directors it effectively ensures that the Board of Directors and the Management Team supervise the needs of the market and

potential impacts and opportunities of climate risks. AHB has systematically assessed climate-related risks and opportunities consumers.and formulated targeted response strategies. We actively collaborate with all stakeholders to jointly address climate challenges

and fulfill sustainable development commitments through initiatives such as researching and promoting eco-friendly products Technology *The update and iteration of *More resources are Long-term *Optimize the technical

emerging technologies may needed for the low-car- update of production bases

and advocating resource recycling. result in investing more costs bon transition (such as and expand the application

in research and development the use of low-carbon of our technical solutions

Climate Change Risks and Opportunities and training professionals. energy and technology replacing energy-and-pol-

and the purchase of lution-intensive petrochem-

low-carbon equipment). ical processes with green

Type Risk/Opportunity Potential Financial Impact Time Response Measures and clean biological

Description Impact Horizon2 manufacturing techniques.Physical Risks

Reputation *Failure by us to fulfill social *Reduced revenue due to Short-term *Adhere to our sustainable

Acute *Frequent occurrence of *Business and supply Short-term *Develop special inspection responsibilities and take reduced demand for Medium-term development concept

extreme weather events (such chain disruptions can system and emergency plan appropriate measures to goods/services. conduct social responsibility

as hurricanes floods etc.) lead to lower earnings. for natural disasters to deal manage the potential training within AHB and

may affect the construction with unforeseen weather impacts of climate change take appropriate measures

and operation of our projects conditions and protect may affect the evaluation of to manage the impact of

to some extent. corporate property from the us by various stakeholders. climate change in a timely

impact of climate change. manner.Chronic *The continued rise in global *The cost of water Long-term *Upgrade water-saving and Opportunities

and regional average resource compliance is cooling facilities and select

temperatures and long-term rising agricultural raw strains with high temperature Energy *In the medium to long term *Reduce operating costs Medium-term *Take measures to optimize

changes in precipitation material prices are resistance and low water Sources improving energy efficiency and achieve cost Long-term equipment and processes

patterns result in increased experiencing structural consumption to reduce can lead to direct cost reduction and efficiency reduce energy waste and

cooling energy consumption increases and there may production sensitivity to savings for operations and improvement. promote employee

in our fermentation processes be impairment risks due climate conditions. contribute to limiting global participation in energy

mounting pressure on to existing assets failing carbon emissions. conservation actions;

industrial water use and to adapt to climate Promote the use of green

reduced supply stability of change. electricity.agricultural raw materials.Transformation Risks Products *Innovation and development *Increase revenue by Medium-term *Promote the innovation and

and Services of low-carbon products and meeting customer Long-term upgrading of "synthetic

Policies and *Changes in domestic and *The adoption of new Medium-term *Implement energy saving services can improve market demand for low emission biology and animal

Regulations foreign climate change technologies to adjust Long-term measures and use energy competitiveness such as products and services. nutrition"; Accelerate the

policies may result in daily operations may saving equipment to reduce customers' preference for low-carbon transition and

additional costs for us to result in increased carbon emissions in daily more environmentally actively participate in

ensure compliance. operating costs and operations and adapt to friendly service providers or low-carbon construction;

resources required. higher environmental products and investors' Reduce packaging materials

requirements. tendency to concentrate on and use biodegradable

investing in green enterprise. materials.

2 Impact time horizon: short-term refers to within 1 year (including 1 year) medium-term refers to 1 to 5 years (including 5 years)

and long-term refers to more than 5 years.RESPONSIBLE CRAFTSMANSHIP HUMANISTIC

31 Environmental Social and Governance (ESG) Report PREFACE GOVERNANCE PRODUCTS CARE APPENDIX 32

Case AHB Launched Product Carbon Footprint Reduction Training Case AHB Won the 3rd "Guoxin Cup · ESG Carbon Neutrality Golden Bull Award"

In September 2025 AHB launched product carbon footprint reduction training covering five departments: Sales In November 2025 AHB won the "ESG Carbon Neutrality Golden Bull Award" by virtue of AHB's outstanding practic-

Procurement R&D Production and Environmental Management. Taking an amino acid product as an example the es in environmental social and governance (ESG) and firm commitment to carbon neutrality with remarkable results.training demonstrated the full life cycle carbon accounting process from raw materials to packaging. This training

laid a solid foundation for cross-departmental collaboration in product carbon footprint accounting and the formu-

lation of emission reduction implementation paths.Product Carbon Footprint Reduction Training

Case AHB Received the "2025 Case Award for Green Low-carbon and Sustainable DevelopmentCCaassee in Intelligent Manufacturing"

In November 2025 at the AIMG 2025 Anhui province Intelligent Manufacturing & Digitalization Annual Gala guided

by China Communications Industry Association the HMOM Intelligent Management System independently built by "Guoxin Cup · ESG Carbon Neutrality Golden Bull Award"

AHB won the "2025 Case Award for Green Low-carbon and Sustainable Development in Intelligent Manufacturing".The system covers two sections: environmental protection facility operation management and safety and environ-

mental compliance management. This award marks AHB's high recognition by the industry in refined green manu-

facturing EHS (Environment Health and Safety) digital management and systematic sustainable development.Trophy for the 2025 Case Award for Green Low-carbon and Sustainable Development in Intelligent ManufacturingRESPONSIBLE CRAFTSMANSHIP HUMANISTIC

33 Environmental Social and Governance (ESG) Report PREFACE GOVERNANCE PRODUCTS CARE APPENDIX 34

Carbon Emission Reduction Measures Optimize Resource Recycling

Our independently developed anaerobic fermentation technology has successfully achieved industrialization breakthroughs

subverting the dependence on traditional petrochemical routes. We have innovatively built a microbial cell factory using

renewable glucose as raw material and through the large-scale production process of anaerobic fermentation we have

achieved dual reduction of carbon footprint at the raw material source and in the production process setting a green transfor-

mation benchmark for the biomanufacturing industry. Energy Management

AHB actively adopts multi-dimensional carbon emission reduction measures. By continuously improving production processes

AHB has established a sound governance system for energy management. We have set up a special energy management team

(such as optimizing separation and concentration processes applying new boiler combustion technology) and comprehen-

with a clear centralized management department (Production Department). The senior management (General Manager) leads

sively upgrading production equipment (such as introducing magnetic suspension compressors electric forklifts and national

the energy management work in an all-round way approves and issues the energy policy objectives and management plans

first-class energy efficiency equipment) we have significantly reduced carbon emission levels. In terms of energy structure

and regularly hosts management reviews to ensure the effectiveness of the energy management system. We have established

optimization we vigorously promote the green transformation of energy through the construction of rooftop photovoltaic

an institutionalized information communication and reporting process. The energy management team is required to report the

power generation projects the implementation of biogas and waste heat recovery and utilization and the development of

system operation and energy performance to the top manager in accordance with regulations and through fixed mechanisms

green power transactions etc. to greatly increase the proportion of clean energy use.such as monthly assessment internal audit and annual management review ensure that the governance agency can obtain

energy management information in a timely and accurate manner.Case Biogas-to-steam Project at Changfeng Base

Methods for Obtaining Energy Management Information:

The Changfeng Base implemented the "Biogas-to-steam (0.5T) Workshop Heating Energy-saving Project" for anaerobic

biogas produced during the treatment of production wastewater. The biogas originally safely vented is purified and sent Monthly energy statistical statements and assessment results of energy performance parameters.to a biogas steam generator to produce saturated steam for workshop use. This not only avoids the greenhouse effect Internal audit reports and management review reports.caused by direct methane emissions but also significantly reduces the plant's carbon emission intensity by replacing fossil

fuel heating. Special meetings minutes briefings and other internal information exchange carriers.Regular energy management system performance reports.In 2025 AHB engaged external organizations to conduct a systematic organizational carbon inventory in compliance with ISO Annual Energy Management Performance Evaluation Report and Compliance Evaluation Form.

14064-1:2018 covering both direct greenhouse gas (GHG) emissions and energy-related indirect greenhouse gas emissions.

2025

Energy Management Information Acquisition Process:

Scope 1 GHG emissions Scope 2 GHG emissions

Each department monitors daily energy targets and indicators implementation of management

293122.36 205141.94 plans energy performance parameters and energy consumption of major energy uses in Data Collection tCO?e tCO?e 01 accordance with responsibilities and summarizes and reports data to the Production Depart-

ment monthly.Total GHG emissions GHG emission intensity

Statistics The Production Department summarizes AHB's energy statistical ledger inspects and assesses

498264.30 174.11 02 and Analysis the completion of each department and feeds back the evaluation results to all departments. tCO?e tCO?e / million RMB revenue

03 Performance The management representative regularly reports the operation performance and energy Report performance improvement of the energy management system to the General Manager.

Calculation explanation:

*The accounting of greenhouse gas emissions is based on the emission factor method. The emission factors selected for Scope 1 are derived

from the "2006 IPCC Guidelines for National Greenhouse Gas Inventories" while the lower heating values are obtained from the "China Energy The General Manager organizes at least one management review every year. The Production

Statistical Yearbook (2022)" actual measurements by enterprises or data provided by suppliers. Department prepares the Management Review Plan and relevant units submit written input

*The Scope 2 GHG emissions are calculated using market-based methodologies. The power sector emission factors are derived from Table Management documents (including energy performance data audit results compliance evaluation follow-up

Review

4 of the "2023 Power Sector Carbon Dioxide Emission Factors" published by the Ministry of Ecology and Environment which presents the 04 of previous measures etc.). The management review meeting comprehensively evaluates the energy management system and issues the Management Review Report after review by the

national average carbon dioxide emission factors for electricity generation (excluding non-fossil energy electricity generated through management representative and approval by the General Manager.market-based transactions). The purchased heat supply emission factors are based on the "Guidelines for Greenhouse Gas Emission Account-

ing and Reporting for Enterprises in Other Industrial Sectors (Trial)".*Total GHG emissions equal Scope 1 plus Scope 2 (market-based).RESPONSIBLE CRAFTSMANSHIP HUMANISTIC

35 Environmental Social and Governance (ESG) Report PREFACE GOVERNANCE PRODUCTS CARE APPENDIX 36

Energy Management System Certification Energy Conservation and Emission Reduction

Three production bases under AHB have passed the ISO 50001

Energy Management System Standard Certification and issued a Energy-saving Measures at Changfeng Base

series of norms such as Energy Management Manual and Imple- Improve the separation and concentration process to significantly reduce steam consumption.mentation Management Measures for Energy Conservation and

Upgrade workshop air compressor equipment for fermentation by replacing conventional screw-type compressors with

Resource Conservation. high-efficiency magnetic levitation compressors.Optimize the variable frequency control system of water pumps to improve overall energy efficiency at production bases.Construct photovoltaic power generation systems and biogas boiler facilities to supply clean electricity and realize efficient

recovery and utilization of biogas resources.Phase out all diesel-powered forklifts and complete the green transition to zero-emission electric forklifts.Energy-saving Measures at Chifeng Base

Optimize building orientation and spacing to leverage natural ventilation and daylight via architectural design and cut

building energy consumption.Adopt new high-efficiency energy-saving MVR (Mechanical Vapor Recompression) evaporators.Apply high-performance thermal insulation materials for heat exchangers and high/low-temperature pipelines.ISO 50001 Energy Management Deploy high-yield fermentation strains in production to boost fermentation acid conversion rate and unit yield saving

System Certification of AHB energy and raw materials.Prioritize procurement of motors water pumps transformers fans and air compressors that meet National Class I energy

efficiency standard.Clean/Renewable Energy Use

Energy-saving Measures at Bayannur Base

AHB attaches great importance to the application of clean and

Utilize biogas generated from wastewater treatment stations as boiler fuel via burners; biogas and waste heat recovery

renewable energy. We have laid out photovoltaic power genera- projects help substantially cut coal and steam consumption.tion projects in Changfeng Base Qinhuangdao Base and Bayannur

Scale up new-energy power adoption to displace partial coal-fired energy consumption.Base and systematically promoted the development and utilization

Complete installation of 3.1MW photovoltaic facilities which generated 1457.76 MWh of electricity in 2025.of solar energy resources. At the same time all four production

bases actively participate in Green Electricity Certificate transac- Replace legacy motors with high-efficiency energy-saving alternatives.tions covering wind power generation and solar power generation.Through the large-scale use of green power We have significantly

reduced the environmental impact of energy consumption and Energy-saving Measures at Qinhuangdao Base

effectively improved our own green competitiveness and sustain- Launch the construction of a biomass combined heat and power project equipped with a 4.5MW steam turbine matching

able development level. generator sets and electrical equipment. Generated power is supplied to the whole plant via the Phase III high-voltage

power distribution room with an estimated annual power output of 20.3849 million kWh. A supporting heat supply pipeline

network is built simultaneously to cover a heating area of 6800 square meters.Recover and reuse waste heat from production processes via plate heat exchangers achieving a waste heat recovery rate

exceeding 90%.Adopt high-low differential speed circulating fluidized bed boiler combustion technology to improve fuel efficiency and cut

operating costs.AHB Green Electricity Certificate Transaction Vouchers Carry out technical transformation of the air compressor system.RESPONSIBLE CRAFTSMANSHIP HUMANISTIC

37 Environmental Social and Governance (ESG) Report PREFACE GOVERNANCE PRODUCTS CARE APPENDIX 38

Indicators and Targets Water Resource Management

Target Progress in 2025 AHB has established a Water Conservation Leading Group directly managed by senior management with a Water Conserva-

tion Office affiliated to the Equipment and Energy Department and each department is responsible for the implementation of

water conservation work.Comprehensively introduce clean energy and Photovoltaic power generation projects have

finally realize 100% green electricity supply. been carried out at Changfeng Qinhuangdao

and Bayannur bases among which the Qinhuan- Water Resource Management Structure

gdao base has achieved both 100% green

electricity coverage and 100% steam supply Be responsible for implementing national water-saving policies establishing a sound

sourced from biomass fuels. Water Conservation

Leadership Group water-saving management system approving water-saving plans supervising implementa-

tion and administering rewards and penalties.

2025

Be responsible for formulating water conservation plans and annual plans developing

Direct Coal Natural gas Water management systems organizing and convening water conservation work meetings and Conservation Office

Energy overseeing technical renovation projects etc.162364.03 tons 2750924.00 m3

Implement AHB's water conservation systems and plans organize labor competitions for

Water Conservation

Liquefied petroleum gas Diesel water saving and consumption reduction strengthen equipment maintenance and Working Group optimized operation and conduct water conservation inspections and indicator analysis etc.

15.06 tons 158667.49 liters

We are committed to promoting the conservation and efficient use of water resources continuously improving the water

Gasoline Biomass fuel

resource management system formulating Enterprise Water Use Management System Water Conservation Management

33367.10 liters 46559.16 tons System and Water Conservation Management Quota Reward and Punishment System. By implementing total water use

control refining water use plans and decomposing water conservation objectives and tasks level by level to relevant depart-

ments and workshops and supporting the establishment of incentive and restraint mechanisms we fully mobilize the enthusi-

Indirect asm of employees to participate in water conservation management. The water conservation competent department of AHB Purchased electricity (non-renewable energy) Purchased electricity (renewable energy)

Energy regularly counts analyzes and publishes the water use and water conservation status of each department. Each department 322450.18 MWh 176339.54 MWh shall submit the annual water use and water conservation statistical report of the previous year to AHB before January 1 of

each year and the semi-annual water use and water conservation statistical report before June 30 of each year.Self-used on-site green power Steam AHB actively promotes the establishment of water-saving enterprises and has successfully obtained the certification of "Anhui

3049.66 78897.35 Province Water-saving Enterprise". MWh GJ

Water Resource Management Initiatives

AHB focuses on substantial water resource risks and conducts risk identification via the Aqueduct Water Risk Assessment Tool

Total direct energy consumption Total indirect energy consumption Total comprehensive energy consumption developed by the World Resources Institute (WRI). All our production bases are located in regions with high or extremely high

baseline water stress. Given long-term variations in regional precipitation patterns natural evolution of groundwater resourc-

146481.12 tce 64368.04 tce 210849.16 tce es and extreme weather events driven by climate change we need to continuously coordinate efforts to ensure the security

of industrial water supply. None of our operation sites are near water source areas and water resources are mainly from

Comprehensive energy consumption intensity Clean energy consumption municipal water supply. We continuously optimize the comprehensive management of water resources. By formulating the

production process water system management regulations and promoting process transformation we have innovatively

73.68 tce / million RMB revenue 52290.94 tce developed and applied water-saving process technologies such as wastewater evaporation condensed water reuse

reclaimed water reuse and fermentation circulating water reuse."Four-stage Water Hierar- First-stage Second-stage Third-stage Fourth-stage

chical Utilization" Model Circulation Circulation Circulation Circulation

Note: The low calorific value of various energy types and the conversion coefficient of standard coal in the calculation formula Reuse of fermenter Recovery of primary Closed-loop operation Reuse of evaporated

cleaning water condensate to boiler of process cooling condensate after

of comprehensive energy consumption are derived from China Energy Statistical Yearbook and General Principles for Calcula- system water high-temperature

tion of Comprehensive Energy Consumption GB/T 2589-2020. membrane treatmentRESPONSIBLE CRAFTSMANSHIP HUMANISTIC

39 Environmental Social and Governance (ESG) Report PREFACE GOVERNANCE PRODUCTS CARE APPENDIX 40

Case Water-saving Measures at Bayannur Base

Our bio-based material monomers including L-alanine and 13-propanediol manufac-

tured via biological processes are produced from renewable biomass and widely applied

* During construction rationally construct according to the site conditions to avoid damage to water resources. in sectors such as new chelating agents and new fiber materials. Looking ahead we will

* Adopt various automatic control and regulation measures and formulate water consumption plans to rationally Application also collaborate with upstream and downstream enterprises across the industrial chain to

conserve process and domestic water. further drive the development of an industrial closed loop.* Install water-saving sanitary fittings; ban cast-iron valves and spiral-lift faucets while popularizing ceramic-sealed

faucets.* Select cost-effective pipes and equipment for water supply and drainage networks and conduct regular mainte- We follow the 5R principles (Reduce Reuse Recycle Recover Responsibility). Source

nance on facilities and pipelines to prevent water leakage and eliminate water waste fundamentally. reduction is realized via optimized packaging materials and upgraded production

processes. Partnerships with professional recyclers improve packaging recycling rate and

Consumption build a full-life-cycle green packaging system covering design manufacturing and waste

disposal.

2025

Total water withdrawal Total water consumption

4764.29 million liters 350.36 million liters Case Improved the Long-term Mechanism of "Repair and Reuse of Waste Materials"

Water consumption intensity AHB fully implements the circular economy philosophy

0.12 and integrates the 3R principles of Reduce Reuse and million liters / million RMB revenue Recycle into the entire production and operation

process to systematically roll out full-lifecycle manage-

ment of equipment and supplies. We have established

and refined a long-term mechanism for "repair and

reuse of waste materials". Through technical resto-

ration component reassembly and functional remodel-

Circular Economy ing the enterprise reintroduces idle or scrapped equip-

ment and materials into production cycles effectively

AHB has built a green circular system covering the whole life cycle of "raw materials-production-application-recycling" driving extending resource service life cutting raw material

resource value reshaping through technological innovation. From agricultural waste to end products we expand the depth consumption and reducing waste generation.and scope of circular utilization driven by technological empowerment to revitalize various resources within a closed-loop

system.We innovatively adopt agricultural residues including straw and corn cob as feedstock to Polishing Cutting and Repair of the Explosion-Proof

develop a conversion route of “biomass–amino–acid–high-value–materials”. This Reusing Stainless Steel Pipes Electric Adjustment Actuator

Raw Material approach cuts arable land occupation raises farmers’ income and lessens reliance on

petrochemical resources.

2025

Volume of waste recycled and reused3

We launch water-saving initiatives such as intermediate water reuse condensate recov-

ery and fermented circulating water recycling. Rooftop photovoltaic installations lift the 6445.44 tons

proportion of renewable power intake and enable high-efficiency circular utilization of

Production

energy and resources.

3 The main types of recycled waste include used packaging bags fine ash and scrap materials.RESPONSIBLE CRAFTSMANSHIP HUMANISTIC

41 Environmental Social and Governance (ESG) Report PREFACE GOVERNANCE PRODUCTS CARE APPENDIX 42

Protect Ecological Balance

Environmental Management By the end of the reporting period our four major production bases have fully passed GB/T 24001-2016/ISO

14001:2015 Environmental Management Systems Certification achieving 100% certification coverage.

Governance

To fully fulfill environmental responsibilities the Company has set up an EHS (Environment Health and Safety) Center

to conduct comprehensive control over waste gas wastewater and waste. Guided by the Board of Directors’ strate-

gies the General Manager is tasked with formulating and implementing management policies and targets rationally

arranging management departments and allocating sufficient supporting resources. The Management Team rigorous-

ly enforces various environmental management policies. By shrinking ecological footprint boosting resource utilization

efficiency and cutting emissions of three types of industrial wastes we strive to realize harmonious coexistence

between corporate development and ecological protection.Decision-making Level: EHS Committee

Composed of our EMT (Executive Management Team) members key principals of each production base the headquar-

ters EHS Center employee representatives and other relevant personnel. The core responsibilities are to hold EHS

meetings every six months review the implementation and performance of the EHS management system and make

overall decisions and arrangements on major EHS matters response measures for critical regulations and rectification

of major hidden dangers.Management Level: EHS Center

As the core management and supervision department for environmental affairs it is mainly responsible for the formula-

tion revision and improvement of environmental management systems and conducts comprehensive supervision over

environmental management work such as waste gas wastewater solid waste and chemicals at all production bases.AHB Environmental Management System Certification

Execution Level: Functional Departments of the Group and Production Bases

The EHS Department of each production base comprehensively coordinates the compliant control of pollutants such as AHB strictly abides by environmental protection laws and regulations represented by the Environmental Protection Law

waste gas wastewater and solid waste as well as the supervision of environmental protection facility operation. It is of the People's Republic of China and has formulated and improved a complete set of internal environmental manage-

also responsible for the full life cycle supervision of chemicals the development of emergency response systems and ment systems including the Rules of the EHS Committee the Administrative Specifications for EHS Rewards and

the environmental assessment and review of new projects. All other functional departments (including production Penalties and the Control Procedures for Identification Evaluation and Management of Environmental Aspects.equipment administration procurement warehouse quality and other departments) shall cooperate to strictly imple-

ment environmental management requirements for waste gas wastewater solid waste and chemicals into their respec-

tive specific business processes.RESPONSIBLE CRAFTSMANSHIP HUMANISTIC

43 Environmental Social and Governance (ESG) Report PREFACE GOVERNANCE PRODUCTS CARE APPENDIX 44

Strategy Environmental

Contents

Centered on the Triple Zero (Zero Carbon Emission Zero Waste Zero Petrochemical Resource) strategic goals we advance Strategic Goals

sustainable development across our full value chain. By accelerating the deployment of zero-carbon technologies circular

economy initiatives and renewable energy solutions we actively drive the industrial transition toward circular integrated and * Zero Carbon Supply: Establish a data management platform for digital and intelligent supply

sustainable long-term growth. chain integrate green procurement into the process of raw material and equipment procure-

ment and require all supply chain partners to meet ISO 26000 standards in the next step and

provide guidance to promote continuous improvement.Zero * Zero Carbon Factory: By 2025 2 bases have been recognized as National Green Factory and 1

Carbon Emission base has been recognized as Autonomous Regional Green Factory. In the future we will continu-

ously optimize the underlying biotechnology and processes increase the application of anaero-

bic fermentation technology and commit to fully eliminating carbon dioxide emissions from the

production process of all products.* Zero Carbon Logistics: Integrate electric logistics trucks electric forklifts and electric ships into

the whole process of logistics system from raw material purchase to product delivery and plan

to increase the construction of green logistics infrastructure and finally achieve a development

mode of net zero carbon emission.* Circular Economy: By recycling and fermenting yeast liquid fermented biomass etc. it can be

transformed into efficient green fertilizer products and reused in the growth of renewable raw

materials such as corn. In the future we will strive to achieve 100% recycling.* Sustainable Water Resources: Innovate and develop water-saving technologies such as waste-

water evaporation condensate reuse reclaimed water reuse and fermentation circulating water

Zero reuse implement sustainable water resource management in all related production bases and

Waste

the recycling rate of process wastewater reaches more than 90%.Environmental Protection Policy * Recyclable Materials: In cooperation with sustainable packaging solutions companies we will

increase the proportion of green packaging materials that can be reused or degraded year by

year and recycle and utilize the packaging of each customer's order.* Lean Production: Since 2023 WCM (world-class manufacturing) has been implemented in all

Strictly abide by national and Prevent and control pollution and

production bases to build a world-class smart factory and move towards the goal of zero

local laws and regulations and hazardous sources reduce

conduct environmental manage- pollutant emissions and prevent accidents zero failures zero short stops zero complaints and zero defects.ment in accordance with internal the occurrence of related

formulated procedures. accidents.* Renewable Raw Materials: AHB's products are all made from renewable resources such as corn

and it has set a grand goal of producing more than 50% of its products from non-grain carbon

source renewable raw materials.Zero * Green Electricity: Green electricity and green-certificate transaction has been carried out in four

Petrochemical

Carry out internal environmental bases. Since 2022 rooftop photovoltaic power generation construction projects have been

Reduce energy consumption Resource

protection and green publicity and gradually launched in each base. In the future solar energy wind energy and other green power

conserve resources and promote

education and deepen the sources will be fully introduced to achieve green electricity supply.resource recycling and reuse.concept of green office.* Biomass Fuel: The Qinhuangdao base takes the lead in fully replacing petrochemical fuel with

biomass fuel including heating and gas supply. In the future the use of biomass fuel will be

promoted in all bases.RESPONSIBLE CRAFTSMANSHIP HUMANISTIC

45 Environmental Social and Governance (ESG) Report PREFACE GOVERNANCE PRODUCTS CARE APPENDIX 46

Impacts Risks and Opportunities Management To effectively improve the level of environmental emergency management AHB has built an emergency training and drill

system supported by a clear reward and punishment incentive mechanism fully mobilizing the enthusiasm of employees to

*Environmental Factor Identification

participate in emergency management. Through regular simulation actual combat drills for various sudden environmental

In the construction and operation of the environmental management system AHB always takes the identification and evalua-

events we not only effectively tested the scientificity and operability of the emergency plan but also comprehensively

tion of environmental factors as the cornerstone of risk prevention and control. In accordance with the provisions of our

tempered the employees' rapid response capability and cross-departmental collaborative operation level in emergency

Environmental Factor Identification and Evaluation Management Procedure we have established a dynamic identification and

situations.evaluation mechanism covering the entire group. The system requires all departments to start from the entire life cycle from

raw material acquisition to finished product delivery and scrapping comprehensively consider the time dimensions of "past *Green Manufacturing

present and future" and the state dimensions of "normal abnormal and unexpected" and comprehensively check eight types The Changfeng Base carried out cleaner production audit in accordance with government requirements put forward 17 clean-

of environmental impacts including air emission water pollution waste management and energy resource consumption. On er production programs and implemented all of them and has completed the cleaner production acceptance of the Depart-

this basis through quantitative evaluation rules we accurately screen out the major environmental risks that need to be ment of Ecology and Environment of Anhui Province.focused on and formulate special control measures accordingly and dynamically update them every year or when major

We actively create green factories. As of the end of the reporting period three production bases have obtained Green Factory

changes occur ensuring the systematic scientific and effective environmental management.Certification among which Changfeng Base and Qinhuangdao Base have won the National Green Factory title and Bayannur

*Actively Respond to Environmental Regulation Base has won the Autonomous Regional Green Factory title.AHB always regards paying taxes in accordance with the law and operating in compliance as the cornerstone of the steady

development of the enterprise and strictly complies with the national and local laws and regulations on environmental protec-

tion taxes and fees. AHB has established a sound tax compliance management system to ensure accurate accounting timely

declaration and full payment of environmental protection tax and other related taxes and fees. In 2025 AHB paid 760400 RMB

for environmental protection tax and 1183500 RMB for water conservancy fund. All environmental-related taxes and fees

were paid in accordance with laws and regulations truly reflecting the performance of environmental responsibilities in the

production and operation process.*Environmental Emergency Management

AHB strictly follows national relevant laws and regulations such as the Emergency Response Law of the People's Republic of

China and the Measures for the Record Management of Emergency Plans for Sudden Environmental Events of Enterprises and

Institutions (Trial) and closely combines with AHB's own operation reality and has comprehensively revised and optimized the National Green Factory National Green Factory of Autonomous Regional Green Factory of

Emergency Plan for Sudden Environmental Events. Focusing on environmental protection the plan focuses on specific risk of Changfeng Base Qinhuangdao Base Bayannur Base

scenarios such as methanol tank leakage leakage of hazardous chemicals and liquid materials and natural gas leakage and

has formulated highly targeted special response measures.To ensure the efficient implementation of the plan we have built a complete emergency response system specially set up an *Green Office

emergency work leading group and office to ensure that personnel can quickly assemble rescue and aftermath work can be AHB continuously carries out employee environmental protection theme publicity and education activities systematically

efficiently promoted in an emergency. Once a sudden environmental event occurs we will immediately launch the emergency popularizes green and low-carbon concepts and strives to build a low-carbon healthy safe and dynamic modern office

monitoring mechanism of professional institutions quickly find out the cause of the accident; at the same time synchronously environment. AHB actively promotes digital transformation relies on the intelligent office platform to promote efficient internal

launch the environmental restoration plan through the formulation and implementation of scientific restoration plans to and external collaboration vigorously promotes the online video conference mode effectively reducing carbon emissions

minimize the impact on the ecological environment and effectively protect the safety of the enterprise and the surrounding caused by business trips and offline meetings; at the same time the implementation of the financial electronic file management

community. system has significantly reduced paper resource consumption empowering employees to practice low-carbon office concepts

in all aspects.Emergency Command Center Answering alarm

Resource Conservation Energy Conservation Green Commuting

* Promote paperless office * Install solar-powered air condi- * Provide shuttle buses for employ-

tioners in office buildings ees to commute to and from work

* Practice the "Clear Plate Campaign" reducing carbon emissions from

* Intelligently adjust the temperature

Emergency Level I events Level II events Level III events Level III * Do not provide disposable cutlery employees' travel.of office areas

Commander Commander voluntarily(Social level) (Enterprise level) (Workshop level) * Use energy-saving LED lighting

* Use water-saving faucets fixturesRESPONSIBLE CRAFTSMANSHIP HUMANISTIC

47 Environmental Social and Governance (ESG) Report PREFACE GOVERNANCE PRODUCTS CARE APPENDIX 48

Indicators and Targets Case Hazardous Chemical Leakage Emergency Drill

By continuously optimizing the environmental protection and sudden environmental event emergency management system

AHB successfully achieved the goal of "zero occurrence" of environmental accidents throughout the year. In May 2025 AHB conducted a full-scale emergency drill for hazardous chemical leakage. The drill simulated a

scenario where a forklift collision triggered hazardous chemical leakage and subsequent personnel poisoning. AHB

immediately activated the plant-level emergency plan. All teams worked in efficient coordination and completed a full

Target Progress in 2025 set of responses including leakage containment first aid treatment sewage interception and traffic control. The

post-drill review identified areas for improvement in the dilution treatment process. In response AHB has rolled out

Zero major environmental accidents Achieved targeted special training programs to further strengthen frontline employees' practical operational skills and safety

awareness and effectively upgrade the team's collaborative emergency handling capabilities.

2025

Proportion of environmental protection

Environmental investment investment in operating revenue

37.28 1.30 Pollutant Management million RMB %

Closely aligning with national environmental protection laws and regulations and the actual situation of business operations

Amount of major administrative penalties

imposed by ecological and environmental Percentage of employees trained AHB continuously revises and improves a series of pollutant control systems such as Waste Gas Management System and

authorities due to environmental incidents on specific environmental issues Wastewater Control Procedure of Wastewater Station. By continuously strengthening the pollutant emission control through-

out the operation process AHB strictly ensures that all indicators such as wastewater waste gas and noise meet the national

0 RMB 88 % and local emission standards.

Percentage of operational sites with Percentage of operational sites with ISO 14001 Wastewater Management

specific environmental risk assessments Environmental Management Systems Certification

100%100%

Wastewater Each production base is equipped with a complete wastewater treatment station and introduces a

Monitoring real-time online monitoring system and abnormal early warning mechanism to monitor various water

quality indicators around the clock ensuring that wastewater discharge is fully compliant throughout the

process.Chemical Safety Management

Wastewater Relying on data-driven and equipment technological transformation we continuously optimize the

treatment process. On the premise of ensuring that the effluent quality fully meets the standards and is

In accordance with the Chemical Safety Management Specification AHB has built a chemical compliance management system Treatment

uniformly discharged into the pipe network we effectively reduce the dosage of chemical agents through

covering the entire life cycle ensuring that every link from introduction procurement transportation storage to use and waste

precise control preventing the risk of secondary pollution from the source. In 2025 all our wastewater

disposal is controlled and traceable. pollutants were discharged up to the standard and no violations related to water quality permits

AHB strictly implements the new chemical safety assessment and approval process follows the order and principle of standards or regulations occurred."non-toxic risk-free controllable governable low-toxic low-risk difficult to control difficult to govern" and implements strict

license and filing management for special chemicals such as precursor chemicals and explosive precursors. In the storage and

use link AHB implements the requirements of classified zoning and quantitative storage ensures that all workplaces are

equipped with complete safety technical specifications and safety labels and provides employees with adaptive personal Source We have comprehensively upgraded the water pollution prevention and control system committed to

protective equipment and emergency supplies. Reduction improving the water resource recycling rate to reduce the total wastewater discharge. Each base

combined with its own production characteristics implements refined management in the links of source

In addition we regularly organize hidden danger investigation and through institutionalized training and practical drills reduction process control and end treatment and fully realizes the efficient use of water resources and

continuously improve employees' awareness of chemical hazard and emergency response capabilities for accidents such as the standard discharge of wastewater.sudden leakage and fire effectively ensuring employee health production safety and environmental compliance.RESPONSIBLE CRAFTSMANSHIP HUMANISTIC

49 Environmental Social and Governance (ESG) Report PREFACE GOVERNANCE PRODUCTS CARE APPENDIX 50

2025 Waste Disposal

Total wastewater discharge Wastewater discharge intensity

AHB has formulated and strictly implemented a series of waste management specifications such as Solid Waste Management

4413.93 million liters 1.54 million liters / million RMB revenue System and implemented refined classification transfer and disposal standards for different types of waste ensuring that all

wastes are harmlessly treated and completely eliminating environmental hidden dangers. At the same time we fully launched

Total discharge of pollutants in water Chemical oxygen demand (COD) the "Solid Waste Whole Life Cycle Management Platform" implementing digital closed-loop supervision of the whole process

576.94 336.58 of various solid wastes from generation storage transfer to final disposal. In 2025 the compliance disposal rate of our waste tons tons reached 100%.

Total phosphorus (TP) Total nitrogen (TN)

10.90 90.95 Non-hazardous Mainly including general industrial solid waste such as sludge and ash residue as well as daily domestic tons tons Waste waste. In strict accordance with the requirements of the Solid Waste Management System we implement

Ammonia nitrogen (NH?-N) Biochemical oxygen demand (BOD?) centralized standardized management of the above wastes and uniformly entrust local environmental

protection departments and qualified third-party institutions to conduct compliant transfer and harmless

9.99 tons 128.51 tons disposal.

Hazardous We continuously strengthen the internal control mechanism to prevent harmful wastes such as waste

Waste Gas Management Waste engine oil waste paint buckets laboratory waste liquid and hazardous chemicals from polluting the soil

environment. We have set up a hazardous waste storage room. All harmful wastes are strictly entrusted

to legally qualified third parties for final disposal and are supervised by local environmental protection

Emission AHB has established a strict waste gas control system and regularly entrusts qualified third-party profes- departments throughout the process. In addition to ensure that front-line employees strictly comply with

Monitoring sional institutions to conduct compliance monitoring on the atmospheric emission concentration of the laws regulations and environmental protection requirements in the process of hazardous waste

production bases. Through precise control of monitoring data we can grasp the dynamics of waste gas

emission in real time and dynamically adjust and optimize the production process accordingly reducing treatment we regularly organize special compliance training to comprehensively improve employees'

the impact on the surrounding environment from the source. awareness and ability of environmental protection operations.Target Progress in 2025

Waste Gas We are fully equipped with advanced environmental protection facilities such as bag dust collectors

Treatment desulfurization towers and SCR (Selective Catalytic Reduction) denitration facilities using cutting-edge

exhaust gas treatment technology to deeply purify nitrogen oxides sulfur oxides and particulate matter 100% compliant disposal rate of solid waste Achieved

generated in the production process minimizing the emission of pollutants and ensuring that waste gas

is discharged up to the standard.

2025

Total amount of non-hazardous waste discharge Non-hazardous waste discharge intensity

2025

Nitrogen oxides (NOX) Sulfur oxides (SOX) 95715.64 tons 33.45 tons / million RMB revenue

159.87 tons 128.42 tons Total amount of hazardous waste discharge Hazardous waste discharge intensity

Particulate matter (PM) Volatile organic compounds (VOCs) 62.68 tons 0.02 tons / million RMB revenue

75.67 tons 8.63 tons2025 RESPONSIBLE GREEN CRAFTSMANSHIP HUMANISTIC

51 Environmental Social and Governance (ESG) Report PREFACE GOVERNANCE OPERATION PRODUCTS CARE APPENDIX 52

Ecosystem and Biodiversity Protection Case AHB's Special Action for World Earth Day

AHB attaches importance to ecological protection and deeply integrates ecological concepts into the whole process of enter- In April 2025 AHB launched the "Under the Wings Life Thrives" bird protection activity at Tushenze Wetland an

prise development. In the early stage of project planning we simultaneously carry out environmental impact and biodiversity important ecological node of the Yellow River Basin. We also jointly established the "Tushenze Wetland Protection

assessment strictly abide by the ecological protection red line ensuring that operation activities are in harmony with the Station" with the Hanggin Rear Banner Forestry and Grassland Bureau. AHB's volunteers went deep into the wetland

regional ecological environment and develop in compliance. We actively practice ecological responsibilities and signed the to clean up plastic pollution and restore the habitat for migratory birds. In the future the Protection Station will

Cooperation Agreement on Wildlife Protection Public Welfare Activities with Hanggin Rear Banner Forestry and Grassland systematically carry out work such as habitat restoration ecological monitoring and public education to build an

Bureau to systematically promote a number of biodiversity protection work. ecological co-governance model of "technology enterprise + local government".Habitat Maintenance

Every year AHB organizes employees to go to Tushenze Wetland Park to regularly clean up wetland garbage in

the river channel and surrounding forest areas continuously improving the habitat conditions of wild animals.Species Protection

Innovatively set up the "AHB Wildlife Protection Studio" providing professional temporary rescue and conserva- World Earth Day Activity

tion for wild animals that are injured or trapped in the wild and need help.Research Support

Equipped with professional field observation equipment we actively cooperate with the competent authorities

to carry out regional biodiversity surveys providing scientific basis for ecological governance.Public Education

Combined with activity nodes such as "World Wildlife Day" and "Bird Week" we continuously carry out ecological

science popularization publicity and advocate the environmental protection concept of harmonious coexistence

between human and nature through exhibitions and distribution of science popularization manuals. Tushenze Wetland Joint Protection StationRESPONSIBLE GREEN HUMANISTIC

53 Environmental Social and Governance (ESG) Report PREFACE GOVERNANCE OPERATION CARE APPENDIX 54

03 Craftsmanship ProductsCreate Outstanding Quality

*Ensure Product Safety

*Prioritize Sustainable Products

*Promote Research and Innovation

SDGs Aligned with This ChapterRESPONSIBLE GREEN HUMANISTIC

55 Environmental Social and Governance (ESG) Report PREFACE GOVERNANCE OPERATION CARE APPENDIX 56

Ensure Product Safety

Governance

AHB regards product quality and safety as its lifeline. We have established the Quality Center alongside a standardized

management team and a clear responsibility framework. Adhering to the principles of transparency accountability and

continuous improvement we exercise strict control over the entire product production process.Governance Structure and Responsibilities

Formulates our quality policy and quality management objectives and administers

Quality Center Quality Management IQNET Certificate of EFFCI GMP Certification

relevant management plans. System Certification Quality Management System

Quality Departments Implement quality management objectives and management plans and conduct

at each production base monitoring and inspection of product quality. *Food Safety Management

To prevent food safety incidents and safeguard food safety each production base has set up a Food Safety Protection Team

with clearly defined responsibilities for staff at all levels. Tailored to our respective production workflows and technical process-

es we have formulated the Food and Feed Safety Protection Plan to minimize risks of intentional contamination and sabotage

In compliance with national and international standards and in light of its actual business conditions AHB has built a sound

of food products.management system covering quality food safety and feed safety. A series of rules and regulations on product quality and

safety have been developed and enforced including Food Safety Management Specifications Food and Feed Safety Protec-

Food Safety Protection Team

tion Plan Raw Material Acceptance Management Specifications Non-conforming Product Management Specifications

Product Release Management Specifications and Change Management Specifications. These measures ensure rigorous

control over every link from raw materials to finished products enabling AHB to deliver safe and reliable products to custom- General Manager

ers. Meanwhile we keep promoting the optimization and upgrading of the corporate quality management system.During the reporting period in accordance with requirements specified in GB/T 19001-2016 idt ISO 9001:2015 Quality

Management Systems—Requirements ISO 22000:2018 Food Safety Management Systems—Requirements CNCA/CTS

0020-2008A (CCAA 0014-2014) BRCGS Global Standard Food Safety (Issue 9) FAMI-QS European Feed Additives and

Pre-mixtures Quality System and EFFCI GMP 2017 we revised the A16 Edition of Management Manual for Quality Environ-

QA (Quality

ment Occupational Health and Safety Food Safety Feed Safety and Cosmetic Raw Materials and related procedural docu-

Laboratory Procurement Warehouse Quality Assurance) Administration Production

ments. By continuously refining and improving the management system we ensure the consistent delivery of products that Supervisor Specialist Supervisor Department Specialist of Department Department Manager Quality Manager Manager

satisfy customer demands and comply with applicable laws and regulations. Department

By the end of the reporting period AHB has obtained the GB/T 19001-2016/ISO 9001:2015 Quality Management System

Certification. Some of our cosmetic raw materials have passed the EFFCI GMP Certification. In addition our product quality has By the end of the reporting period AHB has obtained the ISO 22000 Food Safety Management System Certification. Our prod-

been recognized by other international organizations including CNAS Laboratory Accreditation REACH (Registration Evalua- ucts have also been awarded BRCGS Food Safety Certification KOSHER Certification Halal Certification and FAMI-QS Feed

tion Authorization and Restriction of Chemicals) Certification and COSMOS (Cosmetic Organic Standard) Certification. Safety Certification.RESPONSIBLE GREEN HUMANISTIC

57 Environmental Social and Governance (ESG) Report PREFACE GOVERNANCE OPERATION CARE APPENDIX 58

Strategy

We continuously improve our quality risk management system and establish a robust governance framework for quality risk

management. We embed a pre-assessment mechanism for quality and food safety at the early stage of product design devel-

op tiered risk response plans and transform our quality management model from post-incident remediation to proactive

prevention and active end-to-end control throughout the entire process. We implement a long-term strategy for tiered raw

material management and build a full-lifecycle supplier management system. Benchmarking against applicable regulations we

have systematically developed a comprehensive internal control standard system that covers the entire chain of R&D produc-

tion and finished product inspection while planning for the iterative upgrading of testing capabilities in parallel. Meanwhile

leveraging in-depth customer demand research we map out customized product R&D roadmaps to precisely address diversi-

fied quality requirements and systematically consolidate the foundation for the long-term development of product safety.Type Risk/Opportunity Risk/Opportunity Description Impact Time Horizon

Direct and Indirect *Risks such as returns scrapping and rework caused Long-term

BRCGS Food Safety IQNET Certificate of Food Safety HALAL Certification Quality Issues by product quality issues.Management System Certification Management System *Problems arising from improper logistics/storage

conditions or package damage during product

transportation.Changes *Changes in product raw and auxiliary materials Long-term

packaging materials production processes formula-

Risk tions production sites and equipment finished

products and packaging testing standards and

methods or laws and regulations may trigger

quality-related risks.Overseas Market *Customers in different countries are subject to Long-term

Compliance varying quality standards leading to high certification

maintenance costs. Raised or adjusted quality

standards by customers may result in product quality

compliance risks.AI Technology *Designing high-tolerance strains through AI to Medium-to-long

Empowerment reduce fermentation by-products improve purity term

stability and minimize quality fluctuations at the

FAMI-QS Certificate of Feed Safety KOSHER Certification source.and Quality Management System

Opportunity

Green and Low-Carbon *AHB's products feature strong low-carbon attributes Long-term

Products that align with the EU CBAM and US IRA (Inflation

During the reporting period AHB successfully underwent an unannounced inspection conducted by the U.S. Food and Drug Reduction Act) requirements. Both international and

Administration (FDA) and passed with zero deficiencies. This fully demonstrates that our food safety management system domestic customers tend to prioritize the procure-

production specifications and quality control have met stringent international standards laying a solid foundation for our ment of low-carbon high-quality products.global development strategy.RESPONSIBLE GREEN HUMANISTIC

59 Environmental Social and Governance (ESG) Report PREFACE GOVERNANCE OPERATION CARE APPENDIX 60

Impacts Risks and Opportunities Management *Change Management

In view of change risks arising from customer and market demands updates to laws regulations and standards technological

*Quality Management Procedures innovation product optimization cost reduction and efficiency improvement production capacity expansion renewal of quali-

AHB maintains rigorous control over product quality with every procedure from raw and auxiliary material incoming inspection fications and certificates as well as supply chain adjustments we have formulated the Change Management Specifications and

to production testing performed in strict accordance with established standards. Prior to production equipment operators established standardized procedures. All changes that may affect product quality EHS performance product stability and

inspect equipment status in compliance with the Equipment and Facilities Control Procedures to ensure all facilities meet regulatory compliance are subject to identification assessment approval implementation and notification. This ensures all

production requirements. During production workshop supervisors conduct full-process supervision. Semi-finished and changes are carried out under effective control and relevant risks are minimized.finished products are tested strictly in accordance with the Product Monitoring and Measurement Control Procedures to To ensure the effectiveness of the change control system we conduct an annual review and audit of the system. Core assess-

guarantee quality compliance. In case non-conforming products are found we will dispose of them properly following the ment indicators include timeliness of change processing completion rate of action plans post-change product quality trends

Non-conforming Product Control Procedures so as to consistently provide high-quality products to customers. deviations complaints or recalls caused by changes and findings from regulatory inspections. We continuously improve the

change control system based on the review and audit results.Control of Raw and Auxiliary Materials Process Control Product Inspection

*Product Recall Management

AHB always prioritizes customer health and safety. We strictly comply with the Product Withdrawal/Recall Management Speci-

* Establish raw material acceptance * Aseptic conditions are required for * The production supervisor is

standards to ensure the quality biological processes; responsible for monitoring and fications to ensure recall procedures meet regulatory requirements and practical needs. In the event of batch non-conformities

and safety of raw materials; * The chemical process requires the measuring the quality of the or safety hidden dangers in products we will immediately activate the recall procedure coordinate across teams to fully

* Ensure that the temperature and control of the feeding order product and the relevant records contain the affected products and handle them in accordance with the Non-conforming Product Control Procedures. Even if

duration of storage and timing temperature and pressure are kept by the Quality Department; no actual recall is required we conduct annual simulation exercises to verify the timeliness and effectiveness of the procedures.transportation of raw materials conditions of the reaction. * Samples must be taken from each Since 2025 there have been no product recalls or customer health and safety incidents at AHB.are appropriate; batch of product in accordance

* Auxiliary materials must comply with sampling management

with relevant national regulations standards for testing and retention Division of Responsibilities for Product Recall Management

and are permitted for use only purposes.after passing inspection. General Manager Marketing Center HACCP Team

* Approve withdrawal/recall * Execute customer recall * Evaluate product quality

*Product Quality Training procedures engagement procedures * Analyze and correct the

We steadily advance the development of a professional quality talent team. We have established a complete quality training * Provide necessary resources * Arrange transportation of causes of non-conformity

management system improved the assessment mechanism for systematic quality training formed an in-house lead instructor recalled products * Establish preventive measures

team integrated various training resources and built a dedicated knowledge base. We conduct systematic training on a regular

AHB has established standardized procedures to ensure that non-conforming raw materials intermediate products

basis for relevant personnel including quality managers physical and chemical inspectors and microbiological inspectors. In

semi-finished products finished products and packaging materials identified during production inspection storage

2025 a total of 51 training sessions were held aggregating 75 hours with 2857 participant-times. The training covered all

and transportation are promptly and effectively identified isolated evaluated disposed of and documented. This

relevant positions in quality inspection production and other functions with courses focusing on compliance systems safety

prevents the unintended use release or delivery of non-conforming products.regulations on-site management and control and instrument operation. The training is accompanied by a standardized

assessment procedure with results recorded in the Training Implementation and Effectiveness Evaluation Records. These

efforts continuously strengthen the professional practical capabilities and quality control competencies of frontline personnel

comprehensively consolidating the defense line for product quality control.RESPONSIBLE GREEN HUMANISTIC

61 Environmental Social and Governance (ESG) Report PREFACE GOVERNANCE OPERATION CARE APPENDIX 62

*Customer Complaint Management

To standardize the management and assessment of customer quality complaints Indicators and Targets

we have formulated the Customer Quality Complaint Assessment Management

Specifications. With the product quality complaint rate as the core assessment

indicator we have built a collaborative management system involving the Quality AHB has formulated annual quality objectives under the quality policy of Quality-oriented Development Green & Health Focus

Center Base Quality Departments Finance Center and Base Human Resources Continuous Improvement and Customer Satisfaction. The performance of all objectives as of the end of the reporting period is

Departments. The specifications standardize the process of complaint data source set forth below.verification confirmation adjudication appeals and assessment. Complaint assess-

ment indicators are incorporated into Key Performance Indicators (KPIs) and Indicator Target 2025

decomposed to relevant departments and personnel driving continuous improve-

ment in product quality and delivery management across all departments to reduce Incidents of non-compliance concerning the quality

and safety impacts of products and services N/A 0

complaint rates.Number of products recalled for quality and safety

reasons 0 0*Responsible Marketing

AHB has established the Product Labeling and Traceability Management Specifica-

Number of complaints due to quality and safety

tions which clearly define the types of product labels their usage methods and N/A 27

reasons

management responsibilities. During the reporting period we revised this system

and added labeling requirements for material abnormalities. At each production Rate of quality complaints ≤1.2% 1.18

stage we clearly record product and service information including product name

production date batch number quantity and operators to achieve full-chain trace- First-pass yield rate ≥99% 97.27

ability. This ensures effective quality control rapid traceability and compliance with Food safety incidents N/A 0

regulatory and customer requirements.In addition we implement refined management of product and service labels to Transportation incidents N/A 0

ensure they are clear standardized and uniformly compliant with relevant laws and Critical Control Points (CCP) monitoring effectiveness

standards. All finished product packages are printed with the product name and a 100% 100rate

unique identification number enabling traceable control for each bag. Key informa-

tion such as usage precautions inspection seals and Halal Certification is also Incidents of non-compliance concerning product and N/A 0

labeled to ensure complete and traceable product information. service information and labeling

We conduct regular QA routine inspections to discuss non-conformities define Incidents of non-compliance concerning marketing N/A 0

temporary corrective actions and preventive control measures conduct ongoing communications

follow-up on rectification and track the effectiveness of action completion.RESPONSIBLE GREEN HUMANISTIC

63 Environmental Social and Governance (ESG) Report PREFACE GOVERNANCE OPERATION CARE APPENDIX 64

Prioritize Sustainable Products *Enzymatic Method

The enzymatic production process of α-Arbutin by AHB effectively addresses the common issues in

traditional processes such as low enzyme activity high extraction and purification costs and high impurity

content delivering a prominent leading technological edge. The green synthesis via enzymatic catalysis

Clean Technology Opportunities α-Arbutin operates under mild reaction conditions eliminates the use of strong corrosive reagents and organic

solvents and substantially reduces by-product generation and pollutant discharge. Meanwhile we strictly

Centering on two core production technologies namely fermentation and enzymatic synthesis the AHB Research Institute control harmful residues in products to establish an environment-friendly clean production system.steadily expands AHB's product lineup in the field of synthetic biology and builds a cluster of core technologies for synthetic

biology applications. Leveraging the inherent advantages of clean biomanufacturing processes none of our products contain In the future we will continue to optimize production paths in the following areas to reduce environmental pollution improve

substances classified as hazardous to human health and the environment under Category 1 and Category 2 of the Globally resource efficiency and reduce carbon emissions:

Harmonized System of Classification and Labelling of Chemicals (GHS). Green concepts are embedded throughout all links

from R&D and design to industrial-scale production continuously consolidating the competitiveness of green products and Clean * Continue to optimize the biogas recovery device of sewage station replace the traditional coal-fired

fully unlocking the sustainable value of clean technologies at the product end. Fuel Substitution boiler with biogas boiler and effectively reduce greenhouse gas emissions

* Optimize the pipeline design to realize the full recycling of waste heat and achieve energy saving and

*Fermentation Technology emission reduction

As the world's first enterprise to achieve large-scale commercial production of L-alanine via microbial * Optimize the material temperature control process use preheated materials to reduce steam use and

anaerobic fermentation AHB adopts renewable glucose to replace petrochemical feedstocks in this Energy

Optimization realize energy saving

process. No additional carbon dioxide is generated during fermentation. Compared with conventional

L-alanine * Optimize the air-condition temperature and humidity control in the production workshop eliminate technologies the production of one ton of L-alanine can cut carbon emissions by 0.5 tons. This technology backward equipment and improve energy efficiency

reduces the consumption of fossil resources and delivers substantial reductions in carbon emissions and

* Increase the proportion of electricity generated from biomass and photovoltaic energy

environmental pollution.Process

Optimization * Continuous chromatography process is adopted to reduce energy consumption

Compared to aerobic fermentation AHB's anaerobic fermentation technology for L-valine achieves lower * High and low differential speed circulating fluidized bed boiler combustion technology is adopted

energy consumption lower costs and higher conversion rates significantly enhancing production efficien-

L-valine cy and economic benefits. At the same time this technology reduces carbon dioxide emissions minimizes

environmental impact promotes green manufacturing and sustainable development bringing dual value * Conduct deep treatment on wastewater station discharge reuse treated water in production and cut

of environmental protection and economic benefits to the industry and society. process water costs.Water

Recycling * Optimize the production process adopt the "Zero chemicals" scheme and use circulating water as the

fermentation formula water which reduces the frequency of shutdown cleaning of the circulating water

Traditional chemical methods for synthesizing 13-Propanediol mainly include the acrolein method and the station and the amount of wastewater discharge

ethylene oxide method. The former is complex and involves highly toxic flammable and explosive materials * Deploy recovery pumps to collect condensate water produced by evaporators reuse such condensate

while the latter requires high-temperature and high-pressure conditions making it technically challenging for other applicable production processes and achieve water conservation

13-Propanediol

and costly. In contrast AHB has utilized synthetic biology technology to construct a microbial cell factory

using glucose as the raw material. The fermentation process is mild safe and controllable with a simple and

efficient procedure. Additionally the raw material price is stable further controlling production costs. Product Carbon Footprint

Case L-Alanine Honored as Landmark Product in Bio-manufacturing by MIIT AHB adheres to the scientific carbon reduction path of "exploring the bottom identifying potential implementing emission

reductions and green transformation" continuously advancing the carbon footprint calculation and assessment of core prod-

Our core product L-alanine has been successfully selected into the first batch of the List of Landmark Product in ucts conducting carbon footprint calculations for key products such as L-valine and β-alanine scientifically quantifying their

biomanufacturing issued by the MIIT. Leveraging our world's pioneering anaerobic fermentation technology we took lifecycle carbon impacts to precisely align with the coordinates of green development. In recent years we have successfully

the lead in realizing large-scale biomanufacturing of L-alanine. Compared with traditional chemical synthesis routes completed three rounds of carbon footprint certification for our L-alanine products with the product’s carbon footprint regis-

this technology boasts core advantages including simple process low carbon footprint and high efficiency achieving tering a progressive decline across each round. Meanwhile AHB integrates carbon management capacity building into organi-

an organic integration of economic and environmental benefits. Following the recognition as a National Single zational capacity enhancement. By launching specialized training on product carbon footprint reduction with supporting

Champion Product in Manufacturing this selection further validates our national-level recognition establishing it as assessments the initiative covers employees across the entire business chain. In 2025 a total of 2269 person-times of employ-

an industry benchmark product.ees participated driving the deep integration of carbon footprint calculation methodologies and emission reduction concepts

into all operational links.RESPONSIBLE GREEN HUMANISTIC

65 Environmental Social and Governance (ESG) Report PREFACE GOVERNANCE OPERATION CARE APPENDIX 66

Promote Research and Innovation Type Risk/Opportunity Description Potential Financial Impact Response Measures

*Failure of core processes to *Declining market share falling *Track cutting-edge technolo-

adapt to revolutionary new revenue and profits and gies increase R&D investment

Risk of

technologies may lead to the unrecoverable R&D invest- deploy multi-technology

Innovation-Driven Technological risk of substitution and ment. routes and deepen Obsolescence

weakened competitiveness. industry-academia-research

cooperation.Governance

AHB attaches great importance to technological innovation and R&D. We have established the AHB Synthetic Biology *Despite confidentiality and *Reduced competitiveness *Strictly enforce confidentiality

Risk of Core intellectual property protection potential legal disputes and systems standardize R&D

Research Institute three R&D centers (Systems and Synthetic Biology Center Precision Fermentation Engineering Technology

Technology measures there remains a risk compensation claims and processes strengthen intellectu-

Center and Enzyme Catalysis and Synthesis Center) and two management platforms (High-Throughput Platform and Strain Leakage of leakage of core technolo- increased financial burden. al property protection and

Platform). Clarifying R&D functions and management responsibilities we improve the full-cycle R&D management system gies or trade secrets. conduct employee training.collaborate with four production bases to build a global innovation ecosystem and integrate the entire synthetic biology chain

from design to industrialization. *Shortage of high-end talent *Delayed R&D reduced *Improve incentive mechanisms

Risk of Core and fierce industry competition efficiency increased talent optimize the talent environ-

AHB prioritizes standardized and systematic R&D management and has issued documents including the Management Specifi- Technical Talent may lead to the loss of core recruitment and training costs ment strengthen R&D team

cations for Technological Innovation Achievements of the Research Institute Project Management Specifications R&D Control Atrophy technical personnel affecting and unstable revenue and building and enhance

R&D and production. profits. employees' sense of belonging.Management Specifications and Patent Incentive Measures. These documents cover the entire process from project research

lab-scale trial planning and experiments pilot-scale trial planning and experiments to project conclusion. Through standard- *Deep integration of synthetic *Improve R&D efficiency reduce *Upgrade the R&D system

ized R&D process control systematic management mechanisms and innovation incentives AHB continuously enhances R&D biology and bio-manufacturing costs and increase efficiency drive deepen the integration of

efficiency and achievement transformation capabilities. During the reporting period we revised the Product R&D Control upgrades in tool technologies the launch of high-value-added "Biology + AI" optimize Opportunity of

Management Specifications refining and improving the control and management requirements for the entire product design and cost reduction through products capture market share processes and keep up with Technological

combining gene sequencing and enhance profitability. industry trends.and development process. Meanwhile as a major drafting unit we participated in formulating two group standards Biostimu- Breakthrough genome editing with AI to

lant Peptides and Biostimulants—Terminology and Classification further strengthening our industry influence. facilitate technology commer-

cialization.In 2025 our subsidiary Bayannur Huaheng was recognized as a National Specialized Refined Differential and Innovative "Little

Giant" Enterprise. This marks the second national honor of this kind for us following the recognition of Qinhuangdao Huaheng

Opportunity of *Deepen industry-academia-re- *Boost technological competi- *Strengthen collaborative

in 2022 fully affirming our technological innovation and high-quality development capabilities in the synthetic biology field. Industry-Aca- search cooperation expand tiveness expand business partnerships focus on core

demia-Research external R&D partnerships and scope and drive revenue technology R&D and

and External enhance technological and growth. accelerate the industrialization

Strategy Cooperation industrialization capabilities. of technological achievements.AHB has always regarded technological innovation and R&D as the core driving force for corporate development adhering to

an innovation strategy that combines independent R&D with open collaboration. We deepen cooperation with renowned

domestic and international universities and research institutions to build an efficient open R&D system. On the one hand we

Case AHB Selected for the First Batch of National biomanufacturing Pilot-Scale Capacity Building Platforms

focus on multi-field applications of synthetic biology technology and increase R&D investment in high-value-added

eco-friendly products. On the other hand we continuously expand the deployment of AI-powered digital laboratories and

Leveraging our accumulated biomanufacturing technologies and industrialization capabilities we have been select-

recruit specialized talents to drive integrated innovation of "Biology + AI" with a key focus on the R&D of AI-driven biomanufac-

ed for the first batch of "biomanufacturing Pilot-Scale Capacity Building Platforms" jointly recognized by the MIIT and

turing and the construction of pilot demonstration bases. Leveraging our proprietary strain R&D platform process engineering the National Development and Reform Commission. The platform integrates four core functional modules: molecular

scale-up system and strengths in large-scale production we streamline the translation pipeline from cutting-edge technolo- and synthetic technology precision fermentation separation and purification as well as testing and inspection. It has

gies to end products accelerating the industrial rollout of high-value innovation outcomes. In the future we will continue to provided pilot-scale verification services for 15 industry-academia-research projects successfully advancing the

strengthen the development of pilot platforms maintain high investment in R&D develop more new bio-based products and industrialization process of multiple products. Going forward the platform will integrate artificial intelligence and

consolidate our leading technological edge in the industry. digital information technologies to further improve its full-chain service capabilities covering strain design through to

mass production verification.RESPONSIBLE GREEN HUMANISTIC

67 Environmental Social and Governance (ESG) Report PREFACE GOVERNANCE OPERATION CARE APPENDIX 68

Impacts Risks and Opportunities Management Case Shortlisted as a Partner Unit for the National High-Performance Bioreactor Innovation Task

*Technological Innovation As a consortium member AHB has been successfully shortlisted for the "Open bidding for selecting the best candi-

We deepen innovation in synthetic biology technologies and have delivered significant achievements in both product compli-

dates" initiative under the MIIT's High-Performance Bioreactor Innovation Task participating in the R&D of "Microbial

ance breakthroughs and industry-university-research collaborative efforts to tackle core technologies providing solid support

Parallel Bioreactors". Together with industry-university-research partners including Suzhou Womei Biology company

for the high-quality development and green transition of the synthetic biology industry.Suzhou Institute of Biomedical Engineering and Technology under the CAS Tsinghua University and CABIO AHB

focuses on breakthroughs in key bioreactor technologies. This initiative helps enhance China's indigenous controlla-

Case β-Alanine Approved as One of China's First Food Nutrient Fortifiers bility and supply security capabilities for core biomanufacturing equipment demonstrating AHB's technological

AHB's β-alanine (AH BIOSUS BETA) has been approved by the National Health Commission for use as a nutrient fortifier strength and collaborative innovation advantages in the field of core biomanufacturing equipment.in sports nutrition foods making us one of the first enterprises in China to obtain approval for β-alanine as a new food

nutrient fortifier variety. This official authoritative certification enables us to deliver compliant and safe bio-based nutritional

solutions to the sports health industry. *R&D Team Building

AHB brings together high-level scientific research and technical talents in the industry to build a robust high-quality talent

Case Key Technology Project for Non-Grain Synthetic biomanufacturing of Platform Chemicals pipeline providing solid talent support for accurately assessing cutting-edge trends in synthetic biology and rapidly iterating

innovative products tailored to market needs. Leveraging the industry-university-research integration model we have estab-

The project Development and Industrial Application of Key Technologies for Non-Grain Synthetic biomanufacturing of

Platform Chemicals which we jointly developed with Hubei University Dalian University of Technology and other institu- lished long-term in-depth cooperation with research institutions including Tianjin Institute of Industrial Biotechnology under

tions has won the First Prize of the Science and Technology Award issued by the China Council for the Promotion of Science the CAS Institute of Microbiology under the CAS Beijing University of Chemical Technology and Zhejiang University of Tech-

and Technology Industrialization. Leveraging synthetic biology technology the project has built an innovative pathway for nology. We carry out multi-dimensional collaboration in joint talent training basic scientific research technological achieve-

the efficient production of platform chemicals from non-grain feed-stocks supporting the upgrading of the biomanufactur- ment transformation and professional talent training continuously strengthening our basic research capabilities and industri-

ing industry and the realization of the Dual Carbon Goals.alization technology reserves.Case AHB Awarded National Postdoctoral Research Workstation

*R&D Cooperation

AHB actively builds an open and collaborative R&D cooperation system engaging with domestic and international universities In 2025 AHB was officially approved to establish a National Postdoctoral Research Workstation marking a

research institutions and industry enterprises to expand the application boundaries of synthetic biology technology. We focus national-level upgrade of its high-level innovative talent recruitment and development platform. Relying on this

on the R&D of high-value-added products and continuously improve R&D efficiency and achievement transformation capabil- platform we will recruit and cultivate young core researchers with both solid theoretical foundations and strong

ities by refining the R&D project management mechanism. Leveraging the Hefei Synthetic Biology Innovation Research R&D capabilities consolidate our innovative talent pipeline and provide solid talent support for breakthroughs

Institute we gather high-quality industry talent resources to build an open R&D ecosystem and promote interdisciplinary in synthetic biology technology and high-quality development.collaboration and knowledge sharing. Meanwhile we deepen strategic cooperation on the industrial side expand into the crop

nutrition sector and develop eco-friendly products. By closely aligning with market demands and industry development trends

we empower industrial upgrading through technological and product innovation contributing to human health and ecological

Indicators and Targets

environmental protection.AHB attaches great importance to technological innovation and the accumulation of independent intellectual property rights

Collaborate with domestic and international research institutes including the Tianjin Institute of Industrial Biotech-

Research nology and Institute of Microbiology under the Chinese Academy of Sciences (CAS) to jointly conduct R&D and continuously increasing R&D investment expanding our innovative talent team and improving our intellectual property

Institute

Cooperation tackle key problems and realize the transformation of scientific and technological achievements into economic and management system. During the reporting period AHB added 22 invention patents and 11 utility model patents with innova-

social value. tion achievements being continuously realized.Conduct in-depth cooperation with universities including Shanghai Institute of Technology Donghua University 2025

University- Zhejiang University of Technology and Hefei University; co-establish joint laboratories academician workstations

Enterprise

Cooperation etc. to jointly advance the transformation of scientific and technological achievements and professional talent Total R&D investment Ratio of R&D investment to main business revenue

cultivation.

151.20 million RMB 5.28 %

Enterprise Work with leading enterprises in the industry to drive innovation and improvement in all links of the synthetic

Cooperation biology industrial chain.Number of R&D employees Ratio of R&D personnel to total company employees

Customer Launch multiple innovative projects with core customers to continuously advance product innovation industrial 285 persons 12.66 %

Cooperation upgrading and partnership enhancement.RESPONSIBLE GREEN HUMANISTIC

69 Environmental Social and Governance (ESG) Report PREFACE GOVERNANCE OPERATION CARE APPENDIX 70

Ethics of Science and Technology

AHB's research and development activities including gene synthesis and gene editing are strictly confined to industrial

bio-manufacturing. Such activities are primarily undertaken to optimise metabolic pathways in industrial microorganisms

develop production strains and improve fermentation performance for the manufacture of small-molecule products (e.g.amino acids organic acids and other fermentation-derived ingredients). AHB does not conduct any R&D or application involv-

ing (i) human clinical trials or clinical gene therapy (ii) human embryo or germline editing or (iii) the use development or

enhancement of highly pathogenic microorganisms or other activities with significant ethical controversy thereby maintaining

a clear technology boundary and reducing ethical and biosecurity risks. AHB uses non-pathogenic industrial microorganisms

with a long-standing history of safe industrial fermentation use and together with closed-system operations and mandatory

inactivation prior to disposal assesses the residual biosafety risk to be low and manageable.From a biosafety perspective AHB prioritises non-pathogenic industrial microorganisms with an established history of safe

industrial use and applies internal biosafety assessment procedures for strain selection handling and retention. Where an R&D

activity strain or product falls within regulated food/feed or other relevant application scenarios AHB will conduct compliance

assessment and/or confirmations in accordance with applicable regulatory frameworks (e.g. the safety histories of underlying

chassis strains under the US Food and Drug Administration's (FDA) Generally Recognized as Safe (GRAS) framework or the

European Food Safety Authority's (EFSA) Qualified Presumption of Safety (QPS) approach or obtaining relevant PRC "new

food raw materials/food additives" approvals as applicable).To ensure robust oversight and compliance with applicable PRC requirements including the Biosecurity Law of the People's Intellectual Property Compliance Intellectual Property Compliance Intellectual Property Compliance

Republic of China and the Regulations on the Biosafety Management of Pathogenic Microorganism Laboratories AHB has Management System Management System Management System Certification

established a tiered risk assessment and multi-level project approval mechanism for R&D projects involving genetic modifica- Certification of AHB Certification of Bayannur Base of Qinhuangdao Base

tion. Such projects are subject to risk identification and biosafety/ethics considerations at the project initiation stage and may

only proceed after review and approval by relevant functions under AHB's internal authorisation procedures (including R&D

biosafety/laboratory management legal/compliance and management oversight). Projects that exceed internal risk thresholds

or present sensitive factors are subject to escalated review and unapproved projects are not permitted to commence.Operationally AHB's engineered strains are used only in controlled laboratory environments and closed fermentation systems. *Intellectual Property Management Measures

AHB enforces standard operating procedures (SOPs) covering among others strain management sample transfer contain-

ment waste treatment and mandatory inactivation prior to disposal to reduce risks of leakage cross-contamination and Patent Application * Set KPIs to actively file patent applications and conduct analysis and application of patent information

environmental release and to achieve closed-loop controls over key biosafety risk points. and Trademark

Utilization * Conduct trademark management in line with market needs to ensure effective use of trademarks

* Plan the technology roadmap in advance during the R&D phase and formulate supporting intellectual

Intellectual Property Protection property protection measures

Technology Roadmap * All employees in core positions sign confidentiality agreements

AHB attaches great importance to the protection and management of intellectual property (IP). AHB has established a gover- Protection * Conduct technical searches and FTO (Freedom to Operate) analysis to assess infringement risks

nance system with overall decision-making by the Intellectual Property Management Committee centralized implementation * Mitigate intellectual property risks through pre-assessment and post-event reviews

by the Intellectual Property Center and coordinated collaboration among all departments clarifying full-process IP manage-

ment requirements as well as departmental responsibilities and authorities. For high-value patent management a dedicated * Implement full-process risk planning for intellectual property to proactively mitigate potential risks

High-Value Patent Review Committee has been set up to perform core tasks including formulating high-value patent Risk Management

and Control * Adopt risk control measures such as purchasing patent hedges and conducting infringement analysis standards and conducting review and classification. In 2025 we updated and consolidated documents including the intellectu- via third-party institutions

al Property Management Manual and issued the Intellectual Property Management Specifications and issued the High-Value

Patent Management Specifications concurrently. Focusing on patent mining we precisely cultivate high-value patents with * In cooperation with universities and academic professors focus on the risk of duplicate R&D and work

advanced technology and outstanding market value improve supporting incentive mechanisms and promote the efficient Collaborative R&D with partners to implement risk management

creation strict protection and scientific operation of intellectual property. Oversight * During collaborative R&D monitor publications to balance intellectual property protection with the

needs of cooperative research

AHB has obtained the GB/T 29490-2023 Intellectual Property Compliance Management System Certification continuously

consolidating the foundation for compliant operation. The Intellectual Property Center in collaboration with the Research * Deploy patent portfolios across the entire business chain covering the full process from R&D strains to

Institute production bases and sales divisions regularly conducts special training on patent layout infringement risk identifica-

Patent Portfolio product manufacturing

tion and other topics. We have also built an IP learning system to provide employees with professional guidance on patent Strategy * Focus on core synthetic biology technology links to deploy high-barrier high-value patents building

application trademark registration laws and regulations comprehensively enhancing all employees' IP awareness and compli- a strong technical moat to support the competitiveness of core products

ance literacy.RESPONSIBLE GREEN CRAFTSMANSHIP

71 Environmental Social and Governance (ESG) Report PREFACE GOVERNANCE OPERATION PRODUCTS APPENDIX 72

04 Humanistic CareCreate a Better Life

*Gather Enterprising Talents

*Foster Collaborative Success with Partners

*Contribute to Social Welfare

SDGs Aligned with This ChapterRESPONSIBLE GREEN CRAFTSMANSHIP

73 Environmental Social and Governance (ESG) Report PREFACE GOVERNANCE OPERATION PRODUCTS APPENDIX 74

Gather Enterprising Talents *Practical Measures

Category Measures

Internal Recommendations: Encourage internal employees to actively recommend candi-

AHB always regards talents as the most valuable assets and the source of core competitiveness. While drawing on advanced dates based on job recruitment needs broaden recruitment channels and reward successful

international experience in talent governance we fully integrate our distinctive development features and continuously Internal recommendations with varying amounts of compensation according to the rank of the hired

optimize mechanisms for talent introduction and development delivering solid talent support for high-quality development. Recruitment individual. The principle of "relative avoidance" is also applied meaning that recommenders

cannot participate in interviews and department heads must not have a direct hierarchical

Employee Rights Protection relationship with the recommended individuals ensuring fair and just hiring practices.Social Recruitment: Introduce senior talents through diversified forms such as online recruit-

AHB always upholds the philosophy of lawful employment respect for human rights and labor rights as well as diversity ment information job fairs and headhunting recommendations.inclusion and equality and integrates these principles into all aspects of corporate management. External

Recruitment Campus Recruitment: Special campus recruitment is carried out from August each year to

We firmly believe that protecting employees' legitimate rights and interests is the fundamental guarantee to stimulate their attract outstanding graduates from all kinds of majors to join AHB and inject new strength

enthusiasm initiative and creativity and also serves as the core foundation for win-win development between AHB and into the sustainable development of AHB.employees. To this end we have further improved the employee rights protection system and continuously optimized a diverse

and inclusive workplace ecosystem fully respecting employees' individual differences and diverse backgrounds. We strictly

comply with sound employment standards and provide all employees with equal opportunities for competition and career

development enabling talented personnel to stand out fully leverage their strengths and deliver value to the enterprise. Responsible Employment

AHB adheres to reasonable employment practices. Approved and registered by relevant government departments AHB

Compliant Employment implements standard working hours system comprehensive working hours system and flexible working hours system

eliminating employee fatigue and overwork. Office staff operate under the standard working hours system. Due to production

AHB signs labor contracts with all employees in accordance with the Labour Law of the People's Republic of China and other

needs departments such as production engineering EHS and quality adopt the comprehensive working hours system while

relevant laws and regulations and implements full staff labor contract management. We firmly oppose all forms of employ-

marketing procurement and senior management use the flexible working hours system.ment discrimination and prohibit child labor. We ensure that all employees enjoy equal rights in recruitment and hiring remu-

neration career promotion and other aspects and shall not receive differential treatment based on ethnicity race national Standard Working Hours System

origin gender religious belief age sexual orientation political affiliation or marital status. We adhere to the talent employment

principle of establishing positions based on job requirements and selecting talents according to position needs and provide all In strict compliance with the Provisions of the State Council on Employees' Working Hours.employees with equal and fair opportunities for job rotation and promotion.Institutional System Comprehensive Working Hours System

Within the comprehensive calculation cycle the total actual working hours shall not exceed the total statutory

standard working hours. The actual working hours on a single day or week may exceed 8 hours or 40 hours respec-

Compliant Employment Management Norms Anti-Discrimination Policy

tively. Any excess hours shall be deemed as extended working hours and overtime remuneration shall be paid in

full accordance with relevant provisions of the Labour Law of the People's Republic of China. The average monthly

Entry Departure and Labor Contract Signing Norms Layoff Management Norms extended working hours shall not exceed 36 hours.New Employee Probation Period Management Norms Professional Qualification Certification Management Norms

Working Hours Management Norms Salary Management Norms Flexible Working Hour System

This working hour system applies to roles whose workload cannot be measured by standard working hours and

Prohibition of Child Labor Women's Rights and Labor Protection Management Norms require flexible assignments. AHB implements a voluntary overtime policy. Forced overtime is strictly prohibited and

no punishment or disciplinary sanctions shall be imposed on employees who decline to work overtime. Where shift

Recruitment Management Norms rotation is arranged employees shall be guaranteed a rest period of no less than 12 hours before returning to work.RESPONSIBLE GREEN CRAFTSMANSHIP

75 Environmental Social and Governance (ESG) Report PREFACE GOVERNANCE OPERATION PRODUCTS APPENDIX 76

Diversity Inclusion and Equality

AHB strives to build an equal and inclusive workplace environment places particular

emphasis on supporting female career development and firmly puts an end to age

discrimination. We offer employees from diverse backgrounds a fair platform for growth

and career advancement. As of the end of the reporting period AHB had a total of 2252

employees including 531 new hires recruited in the current year. By fostering a diversified

and integrated talent team we continuously stimulate organizational innovation vitality

and inject enduring momentum into our high-quality development.Employee Welfare

AHB protects employees' rights to leave and welfare in accordance with applicable laws optimizes various subsidies and

improves the welfare system. AHB fully delivers leave benefits related to childbirth. Beyond statutory requirements AHB grants

Employee Structure female employees an extra 60 days of maternity leave and offers male employees 30 days of paternity leave. Meanwhile

parental leave benefits are equally available to all employees irrespective of gender. As explicitly specified in the Employee

Handbook employees are entitled to 10 days of parental leave per year before their children turn six years old enabling staff

to strike a good balance between work and family. These people-oriented welfare measures effectively strengthen employees'

72.87% 1641 64.03% 754 sense of belonging and work initiative. In 2025 137 employees met the eligibility criteria for parental leave and all 137 employ-Male Aged ≤30 ees took the leave marking a 100% uptake rate. The return-to-work rate of employees who resumed duty after leave also

1442 reached 100% which reflects employees' high recognition of AHB.2.49% Aged 31–49

27.13% Female 611 Aged ≥50 56 Employee Statutory Holidays Paid Annual Leave Marriage Leave Home Visit Leave Sick Leave Maternity 33.48% Leave Leave Paternity Leave Parental Leave Bereavement Leave Personal Leave...

Gender Structure Age Structure

Employee Complimentary Staff Meals Physical Check-ups Accommodation Festival & Birthday Benefits

Welfare High-temperature Allowance Afternoon Tea...

90.72% 71.19%2043 Male 378 AHB processes social insurance and housing fund for employees in accordance with national regulations and delivers a wide Han Ethnicity

range of welfare benefits. In addition AHB is equipped with a gymnasium and lounge areas to help employees relax and

unwind after work.

9.28%

Other Ethnic Groups 209 28.81% Female 153 Remuneration Management

AHB adheres to the principle of equal pay for equal work and continuously revises and improves the Salary Management

Ethnicity Structure Gender Structure of New Employees System and the Performance Management System. In terms of compensation management we uphold the dual principles of

internal equity and external competitiveness. Internally we ensure consistency between job compensation and job grade

through a standardized compensation framework. Externally we benchmark compensation data against target markets and

our actual situation to determine our compensation levels thereby enhancing competitiveness and increasing our appeal to

key talent. We pay salaries in full and on time and provide employees with detailed pay statements to ensure a clear under-

AHB resolutely eliminates age discrimination. While introducing young talents we do not set a threshold of 30+ years old. By standing of salary components bonuses and various benefits. In terms of compensation structure we adopt a mix of fixed and

the end of 2025 the proportion of employees over 30 years old in our workforce reached 66.52%. variable pay with differentiated fixed-to-variable ratios based on job characteristics and pay overtime wages in accordance

AHB adheres to the principle of establishing positions based on job requirements and selecting talents according to position with applicable laws. Furthermore we implement dynamic salary adjustments each year based on employee performance

ratings giving due preference to high-performing and high-potential talent to continuously strengthen compensation

needs at its headquarters and all bases which effectively drives employment in local areas. We strictly comply with the competitiveness and organizational vitality.Anti-Discrimination Policy and the Management Standards for Women's Rights and Labor Protection and other relevant

During the reporting period AHB further enriched its diversified incentive system. In addition to the regular year-end bonus

regulations. We eliminate all discrimination and unfair treatment caused by any factors fully respect employees' ethnic

we established multiple special incentives to recognize individuals and teams that have made outstanding contributions in

customs and actively foster a working atmosphere featuring diversity equality and inclusion. As of the end of the reporting different areas. At the same time AHB continues to implement its equity incentive plan deeply aligning employee interests with

period there were 209 ethnic minority employees among full-time staff representing 9.28% of the total full-time workforce. AHB's long-term development to achieve mutual growth and shared success.RESPONSIBLE GREEN CRAFTSMANSHIP

77 Environmental Social and Governance (ESG) Report PREFACE GOVERNANCE OPERATION PRODUCTS APPENDIX 78

Human and Labor Rights Management Democratic Management

AHB has further improved the internal management systems including the Recruitment Management Norms Salary Manage- AHB continuously improves institutional norms including the AHB Enterprise Collective Negotiation System the AHB Demo-

ment Norms Entry Departure and Labor Contract Signing Norms Working Hours Management Norms Training Management cratic Management System and the Employee Representative and Collective Negotiation Dialogue Mechanism Document. We

Norms Women's Rights and Labor Protection Management Norms Professional Qualification Certification Management fully uphold the spirit of democracy and respect employees' opinions. Our Trade Union effectively safeguards employees' rights

Norms Layoff Management Norms Anti-Discrimination Policy and Prohibition of Child Labor. We ensure that all systems are to collective bargaining. All work is carried out in strict accordance with the Trade Union Law of the People's Republic of China

strictly implemented to comprehensively protect the legitimate rights and interests of our employees. and the Constitution of the Chinese Trade Unions. The trade union plays a vital role in affairs disclosure employee participation

in corporate democratic management and the review of major matters concerning employees' vital interests. Through proac-

*Implementation Measures tive communication and dialogue the trade union effectively addresses employees' practical issues and reasonable demands

and further promotes corporate harmony and sustainable development.No Forced We firmly reject any form of forced labor and prohibit the collection of deposits or the seizure of *Two-way Communication Mechanism for Democratic Dialogue

Labor identity documents from employees at the time of employment.We respect the human rights of all employees and other stakeholders and do not tolerate any

No Workplace form of discrimination harassment or retaliation in the workplace. In recruitment compensation

Discrimination training promotion termination and retirement it is strictly prohibited to discriminate based on The management seeks employees' Employees truthfully report issues and

or Harassment ethnicity social status language religious beliefs physical disability gender sexual orientation opinions listens to public opinion and provide suggestions to the management

understands the situation covering: covering:

union membership political affiliation or age.* In-depth solicitation of opinions and sugges- * Opinions and suggestions on the work of AHB

tions from cadres and employees on important

We conduct due diligence on potential human rights risks across the supply chain based on the * Views and opinions on the personal working decisionsimportant matters and sensitive

Human Rights labor and human rights criteria set out in the Supplier Audit Checklist. During the reporting style working mode working method and issues

Due Diligence period no material risks of forced labor were detected at any operation site or among any working attitude of leaders and colleagues

* Report on key work and hot issues concerned

suppliers. * Important issuesby attitude of leaders and colleagues cadres

and employees * Practical difficulties in work and life that need

to be resolved with assistance

* Communication on major work arrangements

Security Our security services are provided by third parties and 100% of security personnel have received of superiors in a timely manner and conduction * Report on violations of law and discipline

and Human

formal training in human rights policies or specific procedures and security applications. of key discussions on key positions key Rights Training personnel key issues and key matters

01 For the complaints and comments that meet the policy requirements and conditions and 2025 can be resolved a clear reply and resolution deadline will be given on the spot.

Labor contract signing rate is The coverage rate of social insurance payable is

100 100 Mechanism for % % In the case that the policies and regulations are not clear or that there are related Handling Employee 02 regulations but the complaint and comment cannot be solved immediately a

Complaints and description of the situation and the deadline for reply shall be provided.Comments

03 In case of a violation of policies and regulations it shall be explained clearly face to face.RESPONSIBLE GREEN CRAFTSMANSHIP

79 Environmental Social and Governance (ESG) Report PREFACE GOVERNANCE OPERATION PRODUCTS APPENDIX 80

Training and Talent Development

AHB has always firmly believed that talent is the core driver of corporate development and we continuously improve our talent We established the AHB Talent Development Center focusing on enhancing internal professional capabilities. By integrating

cultivation and development mechanisms. We have established a comprehensive training system a scientific performance case studies with theoretical practice we have built an educational platform that combines research and study. This place is

appraisal mechanism and clear career development pathways committed to providing employees with holistic support for not only a hub for knowledge dissemination but also an incubator for talent. AHB Talent Development Center comprehensively

growth. During the reporting period we further optimized training content offering diverse learning opportunities that align

covers business talents production talents professional talents and management talents characterized by high standards

with employees' actual needs and development goals helping them enhance their professional skills and overall competencies.At the same time through a fair and transparent performance appraisal system we provide employees with clear directions for internationalization AI technology application and professionalism constantly innovating talent cultivation mechanisms. At the

growth and closely link appraisal results with promotions and salary adjustments to ensure that every employee's contribu- same time we closely integrate talent cultivation with performance evaluation to ensure that employees' growth is in line with

tions are duly recognized. Furthermore we have designed well-defined career development paths for our employees enabling our development goals.each individual to find a suitable direction for growth—whether deepening professional expertise or pursuing managerial

advancement.AHB Talent Development Center

Employee Training

In terms of employee training we actively build our training management system and broaden development pathways. During

the reporting period we further revised and improved the Training Management Norms comprehensively utilizing various

training formats such as internal and external training to enhance employees' skills and professional knowledge optimize the

employee growth and development system and inject new momentum into our talent reserve.In 2025 AHB provided training to 2252 employees representing 100% of all employees. The total training hours for production Cutting-edge research and Advanced knowledge theory Cultivation of various kinds of

bases employees reached 241010 hours with an average of 107 training hours per employee. exploration in the synthetic consolidation and refinement in excellent talents in synthetic

biology industry the synthetic biology industry biology industry

Employee Training Structure

*Total Number of Trained Employees

By Gender (persons) By Position (persons)

Advanced Technology Authoritative Knowledge Excellent Talents

72.87%

Male 1641 80.91% Managementteam 160

Intermediate AHB regularly conducts performance and career development assessment for employees to motivate them to give full play to

7.10% professionals 270 their potential improve work efficiency and quality promote the cooperation and efficiency of the whole team and provide

27.13% Female 611 11.99% Junior 1822 better training and development opportunities for employees. During the reporting period a total of 2252 employees received professionals performance and career development assessment the specific data is as follows:

*Total Duration of Training

By Gender (hours) By Position (hours) By Gender (persons) By Age (persons)

85.37% 205742 76.12% 183443hours 72.87% 64.03%hours

Male 1641 Aged ≤30 754

8.23% 2.49% Aged 31–49 1442

14.63%3526815.6537726%

hours 19840 hours 27.13%hours Female 611 33.48 Aged ≥50% 56

Male Female Management Intermediate Juniorteam professionals professionalsRESPONSIBLE GREEN CRAFTSMANSHIP

81 Environmental Social and Governance (ESG) Report PREFACE GOVERNANCE OPERATION PRODUCTS APPENDIX 82

Career Development 2025

In terms of career development we offer a diversified career path for our employees including the "Stellar Plan" program for Total annual training expenditures Total number of employees trained

new graduates and a dual-track talent development system covering all employees. We are committed to building clear career

ladders for every employee helping them realize their self-worth in professional fields or management positions. 2.66 million RMB 2252 persons

Total number of employees under performance

Average training hours per employee and career development assessment

The Stellar Plan: a seamless transition from campus to the workplace

To meet our mid-to-long-term strategic needs for talent and to build a high-quality 107.02 hours 2252 persons

team through talent ladder construction AHB has launched the "Stellar Plan" campus

recruitment and training plan. This plan integrates theoretical knowledge with practical

activities specifically comprising six chapters: Preparatory Warm-up First Impression of

AHB Integration Growth & Leaps Internal Dual Selection and Competency Develop-

ment. Through systematic training and cultivation it aims to help newly hired college Employee Health and Safety

graduates quickly establish a sense of belonging enhance their professional compe-

tence and successfully complete the role transformation from students to corporate Governance

employees. AHB always regards employees' life safety and physical and mental health as the top priority and delivers comprehensive

protection for their occupational health and safety. AHB has established and improved the EHS communication and coordina-

tion mechanism. A Corporate EHS Committee is set up at the headquarters which convenes EHS meetings semi-annually.These meetings serve to discuss key EHS matters and make decisions on major issues. The agenda includes EHS work reports

and arrangements for all bases dissemination of key laws and regulations and follow-up on the rectification of major hidden

dangers. Such arrangements ensure that safety management requirements are passed down level by level and fully imple-

mented.Dual-track Development: a parallel growth path of specialization and management

*Management Structure

AHB always regards talent cultivation as the top priority formulating a five-year development plan and implementing the

"4221" talent strategy. We have established a dual-channel talent development path and qualification system providing

employees with two career development directions: management channel and specialist channel. This meets our human

The main responsibilities of the EHS Committee include participating in various activities related to the

resource needs for development while also creating a clear growth ladder for employees. Whether it is delving deeper into prevention of work-related accidents identifying various health and safety issues collecting employees'

specialized fields or advancing to management positions employees can find suitable development paths at AHB realizing EHS Committee opinions making corresponding improvement suggestions implementing relevant measures to solve

their career aspirations. problems and promoting dialogue between labor and management.AHB has established the EHS Center to further strengthen the systematic and professional management

Supervisor Manager Director Senior Management EHS Center of related employees' health and safety work create a safer and healthier working environment for

Director Channel employees and promote the sustainable development of the enterprise.Junior

Employee/ AHB values the physical and mental health of employees. The EHS Department has been established at

Assistant the production base to manage employee occupational health. This department is responsible for formu-

EHS Department lating occupational health policies and establishing standards for labor protection supplies addressing

health and safety issues encountered by employees during work such as physiological and psychological

Intermediate Senior Chief

Engineer Specialist problems caused by hazardous equipment working methods and harmful substances. It effectively Engineer Engineer Scientist Channel controls occupational health and safety risks related to production and operations continuously improv-

ing occupational health and safety performance.Dual-channel Talent Development PathRESPONSIBLE GREEN CRAFTSMANSHIP

83 Environmental Social and Governance (ESG) Report PREFACE GOVERNANCE OPERATION PRODUCTS APPENDIX 84

*Institutional System and Certification Strategy

AHB strictly adheres to laws and regulations such as the People's Republic of China Law on Work Safety earnestly managing AHB adheres to the principle of "Safety First Prevention Prioritized and Comprehensive Management" coordinating the simul-

safety issues. Taking each base as a unit we have established standards like the Accident Management Regulations Fire Safety taneous advancement of the overall EHS framework across all production bases. Embracing a proactive risk control approach

Management Regulations Work Safety Responsibility System Management Regulations Occupational Health Management we carry out forward-looking planning for key tasks such as workplace environment inspections source prevention and

Regulations and Chemical Management Regulations to ensure worker operational safety and chemical safety management. control of occupational diseases and full-process management of hazardous chemicals. In parallel we establish a system for

Meanwhile AHB rolled out the EHS Reward and Punishment Management Regulations. AHB fully implements EHS responsibil- cultivating a safety culture and a mechanism for regular health protection. We comprehensively identify and assess various risk

sources that may cause personal injury in production scenarios thereby building a stable and long-term protection system for

ities strengthens group-level EHS objective management and establishes a complete EHS incentive and restraint mechanism

occupational health and safety.to steadily improve overall EHS performance. The four production bases of AHB—Changfeng Bayannur Qinhuangdao and

Impact Potential

Chifeng—have all obtained ISO 45001 Certification for their occupational health and safety management systems. Risk Type Risk Description Time Horizon Financial Impact Response Measures

*During production and operation Short-term Revenue Decline *Establish improve and strictly

violations of work safety operating Medium-term enforce work safety management

procedures by employees systems

inadequate on-site control over *Upgrade safety protection

production processes force majeure facilities for equipment and equip

such as natural disasters and other

Work Safety relevant personnel with profes-unexpected incidents may all lead to sional personal protective

work safety accidents. Such equipment (PPE)

incidents will exert adverse impacts

on our normal production & *Intensify work safety training and

operation order and operating inspection of hidden dangers and

performance. organize emergency drills on a

regular basis

*Irregular use of PPE long-term Short-term Revenue Decline *Arrange regular occupational

exposure to environments with Medium-term health examinations for employees

excessive noise excessive occupa- and establish occupational health

tional psychological stress and other records as well as personal health

issues may cause occupational surveillance files for employees

diseases or impair employees'

Occupational *Strengthen occupational health physical and mental health. This will training education and skill

Health not only weaken employees' assessments

working capacity but also trigger

legal disputes bringing adverse *Conduct testing and evaluation on

effects on corporate operations. occupational hazard factors at

workplaces

Impacts Risks and Opportunities Management

AHB regularly carries out various work including work safety training inspection and rectification of hidden dangers and

emergency drills. We continuously strengthen work safety objective management and inherent safety development so as to

comprehensively improve all employees' safety knowledge and standard operating skills. Meanwhile we attach great impor-

tance to the prevention and treatment of occupational diseases. We strictly implement the company-wide occupational health

examination system to effectively safeguard employees' rights to physical and mental health.*Occupational Health Management Measures

Hazard Identification and Occupational Health Examinations

AHB fully considers occupational hidden dangers during production and operation processes. We conduct health

check-ups for employees in five major categories of occupational health examinations—dust high temperature noise

coal dust welding fumes industrial frequency electric fields hydrogen sulfide methanol ammonia phosphorus and its

inorganic compounds lead and its inorganic compounds manganese and its inorganic compounds ultraviolet light

acetic anhydride mist nitrogen oxides hydroquinone and other types (such as special operations)—before they start

work and during their employment. AHB also provides free health check-ups to employees who have been with AHB for

more than six months. Additionally we have established a channel for psychological guidance and organized mental

health training sessions such as "Caring for Female Mental Health" to help employees manage psychological stress.ISO 45001 Occupational Health and Safety Management System CertificationRESPONSIBLE GREEN CRAFTSMANSHIP

85 Environmental Social and Governance (ESG) Report PREFACE GOVERNANCE OPERATION PRODUCTS APPENDIX 86

*Production Safety Management Measures Case Changfeng Base Held the 2025 Work Safety Month Campaign

Production Safety Management Centered on the theme "Everyone prioritizes safety everyone masters emergency response – Identify hidden safety hazards

AHB strictly implements the work safety responsibility system. We enhance risk prevention and control capacity by around you" the 2025 Work Safety Month activity of Changfeng Base ran from June 1 to 30 in three phases: launch &

organizing regular fire drills and safety training stepping up inspection and maintenance of facilities standardizing arrangement implementation & advancement and review & improvement. Upholding the guideline of "putting safety first

operating procedures and conducting staff drills. We ensure all safety facilities remain intact and effective so as to focusing on prevention and implementing comprehensive management" the base set up a leading group chaired by the

prevent and mitigate accident risks from the source. General Manager. A series of special activities were organized including thematic training safety warning education safety

knowledge contests and forklift safe operation competitions. Meanwhile the base rolled out three-level safety education

and closed-loop rectification for all detected hidden dangers. The campaign achieved a 100% hazard rectification rate and

a 100% staff safety awareness rate. Through post-event review merit commendation and standardized document filing the

Safety Inspections and Accident Handling base effectively boosted employees' emergency response capabilities and enriched the corporate safety culture.AHB has always adhered to safe production and the elimination of work-related accidents. We have established a

production safety management mechanism that includes safety awareness training safety warning reminders and

Case Bayannur Base Conducted Fire Extinguishing and Evacuation Emergency Drill

measure optimization emergency response to safety incidents and management and penalties for accident responsibili-

ties. Regular safety inspections are conducted. In 2025 we promptly rectified the safety hidden dangers identified

through safety inspections achieving a 100% rectification completion rate. Bayannur Base carried out an emergency drill for fire suppression and personnel evacuation in June 2025. Taking an electri-

cal fire at the No.4 Packaging Section as the simulated scenario the drill activated Level II emergency response which

verified the practicability of the emergency plan and the coordination efficiency of each working group. The drill featured

proper on-site command and timely emergency activation. However multiple deficiencies were exposed: inaccurate

Safety and Occupational Health Training positioning of trapped personnel single type of communication equipment tangled fire hoses and unsecured stretchers.Rectification responsibilities and completion deadlines have been fully assigned to resolve these problems. Comprehensive

AHB establishes a regular safety training mechanism in accordance with the EHS Training and Education Implementation assessment confirmed the drill achieved all expected goals effectively raising employees' emergency awareness and rescue

Plan and Work Safety Training and Education Management Regulations. All production bases hold regular work safety proficiency.meetings and organize company-wide training on EHS laws and regulations hazard source identification dust explosion

control and other relevant topics. Combining the formulation and training of SOP AHB comprehensively enhances

employees' safety awareness and operational skills. In 2025 we conducted a total of 556 safety-themed training sessions.Emergency Safety Management

AHB has established the Production Safety Accident Emergency Plan aimed at enhancing rapid response capabilities to

production safety incidents. This plan seeks to promptly implement effective measures before during and after an

accident occurs controlling the occurrence and development of emergencies and minimizing the harm to personnel the

environment and property as much as possible. AHB has set up an Accident Emergency Rescue Command Center which

comprises four teams: the Emergency Medical Rescue Group Communication and Liaison Group Logistics Support Emergency Drill at Bayannur Base

Group Accident Investigation and Aftermath Handling Group. The Command Center is headed by a Chief Commander

and Deputy Chief Commander with all employees serving as members of the rescue organization. AHB regularly organiz-

es special emergency drills for fire fire and explosion and hazardous substance leakage to improve practical response Indicators and Targets

capabilities and ensures that all emergencies can be dealt with promptly in an orderly manner and efficiently.Target Progress in 2025

Occupational health examination coverage 100% Achieved

Emergency Organization Structure The number of employees with work-related injuries of Grade 8 and above is zero Achieved

The number of work-related fatalities is zero Achieved

Chief Commander

Deputy Chief Commander 2025

Workplace safety investment amount Total safety training hours

Emergency Medical Communication Logistics Accident Investigation 5.43 million RMB 32102 hours

Rescue Group and Liaison Group Support Group and AftermathHandling GroupRESPONSIBLE GREEN CRAFTSMANSHIP

87 Environmental Social and Governance (ESG) Report PREFACE GOVERNANCE OPERATION PRODUCTS APPENDIX 88

Foster Collaborative Success with Partners

Collaborate with Suppliers to Create the Future

Supply chain management is critical to our stable operation and long-term development. AHB upholds the philosophy of

sustainable development conducts procurement of products and services in a responsible manner and continuously drives

mutual growth and sustainable development alongside suppliers.Supply Chain Management

*Management System

AHB has established a comprehensive supply chain management system to identify environmental and social risks in the

supply chain. We have formed contractual standardized and routine management mechanisms for product delivery

schedules quality control and technical confidentiality. We have formulated and revised relevant supply chain manage-

ment documents including the AHB Supplier Code of Conduct AHB Supplier Management Standards AHB Procurement

Management Standards and AHB Bidding Management Standards. We also steadily improve the supplier assessment

system so as to form a complete procurement management framework.AHB has established an admission and assessment mechanism covering the full life cycle of suppliers. We regularly evaluate

supplier performance and require suppliers that fail to meet relevant standards to carry out continuous improvement or

impose cooperation suspension and elimination when necessary. Assessment results serve as a key basis for supplier quali-

fication review quota adjustment and cooperation decisions. This helps further standardize supplier conduct and realize

full-process closed-loop management. Meanwhile we strengthen supervision and assessment over suppliers to effectively

prevent procurement risks and drive the sound and sustainable development of the supply chain.*Practical Measures

AHB formulates relevant guidelines and explanatory documents for supplier selection and supplier behavior AHB conducts supplier capability building training for suppliers on an irregular basis covering quality

standards. AHB manages new suppliers according to institutional documents such as the Supplier Basic business ethics environment labor and human rights. We also continuously monitor the subsequent

Information Survey Form Supplier Audit Checklist and Supplier On-site Audit Form. The due diligence capability building and performance of suppliers using these as reference dimensions for annual

process covers various aspects of relevant qualification materials including business licenses production Supplier supplier evaluations. During the reporting period 763 suppliers participated in improvement actions

Supplier permits system certificates third-party inspection reports and REACH registration information as well as Training or capacity-building initiatives.Access elements of business ethics environmental labor and human rights standards. This ensures that suppliers

meet procurement requirements through a comprehensive evaluation system.AHB is committed to maintaining a fair and ethical business environment. We sign the Supplier Integrity

AHB implements tiered supplier management and establishes a cross-departmental review team. In princi- Cooperation Agreement and the Statement of Compliance with AHB Supplier Code of Conduct with

ple performance evaluations are conducted quarterly for strategic leverage and bottleneck suppliers. our suppliers clearly defining core requirements such as anti-bribery anti-corruption conflict of

Suppliers with low order frequency are assessed semi-annually or annually. The evaluation covers five interest management and data privacy protection. AHB has established a supply chain transparency

dimensions: quality delivery service cost and social responsibility. The overall score is calculated and mechanism set up dedicated reporting channels and implemented anonymous whistleblower Supplier Integrity

supplier tiers are classified in accordance with the Supplier Performance Evaluation Standard Template. protection and a strict confidentiality system. At the same time AHB regularly conducts integrity Management

Supplier Based on annual review results and material classification AHB formulates the Annual Supplier Audit Plan. supervision and audits of suppliers promotes self-inspection self-correction and continuous

Evaluation In case of any irregularities from suppliers the review team may launch ad-hoc special audits after discus- improvement and organizes integrity-themed briefings for suppliers to communicate integrity

sion and confirmation. This enables AHB to respond promptly adjust procurement strategies and optimize requirements disseminate the code of conduct and strengthen suppliers' compliance awareness.the supply chain structure.RESPONSIBLE GREEN CRAFTSMANSHIP

89 Environmental Social and Governance (ESG) Report PREFACE GOVERNANCE OPERATION PRODUCTS APPENDIX 90

Sustainable Supply Chain Digital Intelligence Supply Chain

Based on supplier management we deeply integrate the concept of sustainability into our collaborations prioritizing environ- AHB is accelerating the digital and information transformation deeply integrating digital technologies with supply chain

mentally friendly suppliers and products. We consistently uphold principles of human rights labor rights and social equity management to fully unlock digital value. AHB has launched the SRM (Supplier Relationship Management) system injecting

ensuring that every worker in our supply chain enjoys fair treatment and a safe working environment. We strongly oppose the new momentum into supply chain management through digital means. During the reporting period we continuously

use of child labor or forced labor and consider it a key criterion for selecting suppliers. In 2025 we conducted child labor optimized system functions to enhance supply chain transparency and collaboration efficiency achieving full-process digital

screenings for some of our suppliers and no violations were identified. Additionally AHB has established the AHB Supplier coverage from supplier selection and cooperation management to performance evaluation. We are committed to building

Code of Conduct which sets comprehensive standards and imposes strict requirements on suppliers in areas such as quality equal fair and mutually beneficial partnerships with suppliers. Leveraging the dual integration of automation and information

business ethics environment and human rights. technology we have created a one-stop procurement platform that standardizes procurement processes shortens procure-

*Implementation Measures ment cycles improves procurement efficiency reduces procurement costs comprehensively optimizes all aspects of supply

chain management and lowers communication costs with suppliers driving the supply chain toward digital intelligent and

AHB encourages suppliers to establish high standards of social responsibility promoting continuous efficient development.improvement in business ethics environmental protection and labor rights. To strengthen suppliers' aware-

ness of social responsibility we have clearly defined their obligations in the Procurement Contract through

Supplier specific clauses requiring them to appoint an independent social responsibility management representative

Sustainability to oversee the operation of the social responsibility system ensuring it is not interfered with by other Equal Treatment to SMEs

Requirements organizations.AHB treats SMEs equitably throughout the entire process of supply chain management and business collaboration adhering to

To ensure that suppliers actively fulfill their ESG responsibilities AHB follows the Supplier Sustainable Procure- the principles of fairness transparency and openness in building an industrial ecosystem. In procurement and cooperation we

ment Management Manual and conducts systematic sustainability surveys on suppliers using the Supplier strictly follow market rules and uphold business ethics implementing unified standards in access criteria pricing mechanisms

Audit Checklist. The survey covers 13 assessment items (child labor forced labor discrimination working and payment term management to protect the legitimate rights and interests of SMEs. During the reporting period we continu-

hours and wages business ethics fire safety chemical safety equipment safety dormitory and canteen ously improved our cost control and revenue-expenditure management systems and no overdue payments to SMEs occurred.environmental protection management system and red line items) comprising over 100 checkpoints.The Procurement Center implements the following procedures during supplier admission and annual periodic

evaluations:

Supplier *Self-Assessment: New and key suppliers are required to complete a self-assessment form and submit

Focus on Partner Cooperation and Development

Sustainability relevant supporting documents.Investigation *On-Site Audit: The category procurement lead conducts on-site evaluations and scoring for each item with AHB is committed to deepening industry exchanges and cooperation promoting the open sharing of technologies resources

particular focus on basic human rights compliance and adherence to laws and regulations. and knowledge and working with global partners to foster a healthy and orderly industry ecosystem. We aim to accelerate

*Result Evaluation: Based on the comprehensive score (out of 100 points) and compliance with red line scientific research and biotechnological innovation continuously empowering the sustainable development of the industry.items suppliers are classified into grades ranging from A+ to D.*Rectification and Re-Evaluation: Suppliers rated B or C must complete rectification within a specified

Case Anhui Provincial biomanufacturing Industry Alliance Officially Established

timeframe; suppliers rated D will have their business cooperation terminated. Case AHB Elected as the First Chairperson Unit

On September 12 2025 the inaugural conference of the Anhui Provincial biomanufacturing Industry Alliance (hereinafter

We have strict requirements on the raw materials used by suppliers. Suppliers should ensure that the parts

referred to as "the Alliance") was successfully held in Hefei Anhui Province. With the mission of "integrating and optimizing

and materials supplied meet the environmental protection requirements in our purchasing data. We

encourage suppliers to use environmentally friendly reusable or recyclable packaging materials as far as industrial resources strengthening industry-university-research collaborative innovation breaking through key core technolo-

possible and carry out REACH registration. Regarding conflict minerals management we require our gy bottlenecks expanding application scenario development and promoting green economic transformation" the Alliance has

Sustainable

suppliers to conduct responsible sourcing due diligence for controlled minerals as defined by the RMI 41 founding member units covering the entire biomanufacturing industrial chain. The conference reviewed and approved the Raw Materials

including tungsten tantalum tin gold cobalt and lithium to ensure that the sources of raw materials are Alliance's charter and unanimously elected AHB as the first Chairperson Unit. As the Chairperson Unit AHB will lead the

legal and compliant. Alliance in playing a bridging and bonding role promoting industrial collaborative innovation and driving the high-end intelli-

gent and green development of Anhui's biomanufacturing industry.We actively promote the localization of our supply chain giving priority to sourcing raw materials and

services from areas surrounding our production bases. During the reporting period we had a total of 1177

Local production and operation suppliers. Our total local procurement4 amount reached RMB 343 million

Procurement accounting for 79.05% of the total annual procurement amount.

4 Local procurement defined as procurement from suppliers registered in the same province as AHB.RESPONSIBLE GREEN CRAFTSMANSHIP

91 Environmental Social and Governance (ESG) Report PREFACE GOVERNANCE OPERATION PRODUCTS APPENDIX 92

Case AHB Joined Anta Group's Sports Goods Industry Innovation Consortium *Exhibition Communication

In November 2025 AHB joined the Sports Goods Industry Innovation Consortium led by Anta. As an innovative enterprise Case PISC 2025 Forum

focusing on the development of bio-based new materials and committed to synthetic biology R&D AHB will contribute

advanced bio-based monomers and other materials and technologies to the Consortium. Through collaborative innova- On March 18 2025 AHB presented at the PISC Forum held in the United States. The forum brought together leading

tion with consortium members AHB will help drive the sports goods industry toward high-end green and technolo- companies and industry leaders from the global feed and pet food ingredient sectors to discuss supply chain innovation

gy-enabled development injecting new momentum into the Consortium's mission of "achieving industry breakthrough sustainable development and industry frontier trends. As one of the pioneering companies in the synthetic biology field

and fostering win-win partnerships". AHB engaged in in-depth exchanges with international partners to promote innovative development of the global

bioeconomy. Our participation not only demonstrated AHB's international influence but also provided an important

opportunity for industry collaboration and technological advancement.Case CPHI China 2025

In June 2025 at the CPHI China 2025 exhibition AHB showcased its breakthrough applications in green manufacturing

to global customers under the theme "Green Technology Empowering a New Industry Ecosystem". As a firm practitioner

of sustainable development we attracted significant attention at the exhibition with our "Triple Zero" strategy. Our booth

not only presented technological achievements but also served as a platform for industry partners to discuss low-carbon

transformation. During the exhibition we engaged in in-depth discussions with customers on innovative applications of

biomanufacturing technologies in pharmaceuticals nutrition materials and other fields further deepening their under-

standing of the full-chain quality control system and customized solution capabilities.Signing Ceremony for New Members of the Sports Goods Industry Innovation Consortium

Case Strategic Cooperation with Evonik to Expand the Global Animal Nutrition Market

AHB signed a Strategic Cooperation Memorandum with Evonik a global chemical company focusing on collaborative

development in the field of animal nutrition and health. Leveraging AHB's advantages in synthetic biology technology

and bio-based amino acid production capacity combined with Evonik's industry experience and global marketing

network the two parties complement each other's strengths and integrate resources to jointly provide green bio-based

amino acid products. This cooperation supports the low-carbon and sustainable development of the global animal

nutrition and feed industry and accelerates the global deployment of green biomanufacturing technologies.CPHI China 2025 ExhibitionRESPONSIBLE GREEN CRAFTSMANSHIP

93 Environmental Social and Governance (ESG) Report PREFACE GOVERNANCE OPERATION PRODUCTS APPENDIX 94

Case PU China 2025 Case AHB Showcased Four Scenario-Based Solutions at Sports Nutrition Innovation Conference

From September 3 to 5 2025 the 21st China International Polyurethane Exhibition (PU China 2025) was grandly held at From December 18 to 19 2025 the 3rd Sports Nutrition Food Technology and Application Innovation Conference was

the Guangzhou Poly World Trade Center Expo. AHB made a remarkable appearance at the exhibition showcasing its AH held in Shanghai. AHB made a prominent appearance with the BIOSCENTIS series of innovative applications. Driven by

Synova bio-based monomer products (13-PDO succinic acid etc.) providing high-quality raw materials and sustain- scenario-based needs AHB launched four core nutrition solutions injecting technological momentum into the sports

able innovation solutions for application areas such as sustainable chemicals bio-based materials and pharmaceutical nutrition industry.intermediates and demonstrating to global customers the innovative practices of bio-based materials in carbon reduc-

tion and emission mitigation.The 3rd Sports Nutrition Food Technology and Application Innovation Conference

The 21st China International Polyurethane Exhibition2025 RESPONSIBLE GREEN CRAFTSMANSHIP HUMANISTIC

95 Environmental Social and Governance (ESG) Report PREFACE GOVERNANCE OPERATION PRODUCTS CARE APPENDIX 96

Contribute to Social Welfare

In 2025 AHB continues to regard social welfare initiatives as a core part of our corporate culture. While achieving steady

business operations and creating sustained economic value we deeply integrate social responsibility into our development

strategy proactively building mutually trusting and cooperative partnerships with the communities in which we operate. We

fulfill our corporate social responsibilities through concrete actions. By actively initiating and deeply participating in various

charitable and public welfare activities we are committed to local social causes striving to give back to society and promote

regional sustainable development thereby realizing a true win-win situation for AHB and society. We firmly believe that every

small effort will eventually converge into a positive force for social change and AHB is always dedicated to being a steadfast

practitioner of this force.Charitable Initiatives Community Building

AHB actively engages in charitable and public welfare activities paying close attention to and supporting vulnerable groups in As a technology-driven enterprise rooted in the regional economy AHB has established a community co-building and sharing

society. AHB proactively makes donations and provides assistance to multiple public welfare institutions schools and disaster mechanism. Through industrial spillover effects we continuously expand the supply of job opportunities particularly by

relief organizations thereby supporting educational development community livelihood improvement and emergency disaster cultivating new technical occupations in the biomanufacturing sector helping to create a "happiness employment circle" right

response through concrete actions fulfilling our social responsibilities. During the reporting period AHB donated a total of at the doorsteps of local residents. Guided by the principle of full life-cycle carbon management we integrate cleaner production

RMB 1.97 million to organizations including the Anhui University Education Foundation Inner Mongolia Hanggin Rear Banner and circular economy concepts into every aspect of our operations and work with local governments to explore a development

Fendou Middle School Beijing Sunshine Health Foundation Hefei Women and Children Care and Love Foundation China path that harmonizes industrial ecologicalization and ecological industrialization providing a replicable low-carbon solution

Nationality Culture Foundation Hefei Women's Federation Anhui Sino-German Education Cooperation Foundation and the for achieving regional Dual Carbon Goals.Red Cross (for flood prevention and relief efforts). We firmly believe that every act of kindness and every effort will converge Upholding the value of "technology for good" AHB has established a systematic public science education system offering free

into a force that makes society warmer and better. regular public lectures on safety health and first aid as well as seminars on synthetic biology. This two-way empowering

corporate social responsibility practice not only strengthens the foundation for our sustainable development but also helps

build a new type of industry-agriculture urban-rural relationship characterized by "thriving industries sound ecosystems and

prosperous residents". Under the ESG governance framework AHB writes a new chapter of responsibility for private enterprises

in the new era.RESPONSIBLE GREEN CRAFTSMANSHIP HUMANISTIC

97 Environmental Social and Governance (ESG) Report PREFACE GOVERNANCE OPERATION PRODUCTS CARE 98

Appendix

Laws and Regulations

Dimension Applicable Laws Dimension Applicable Laws

Civil Code of the People's Republic of China Law of the People's Republic of China on Prevention and Control of Soil Pollution

Company Law of the People's Republic of China Law of the People's Republic of China on Prevention and Control of Noise Pollution

Securities Law of the People's Republic of China Environmental Regulations on the Safety Management of Hazardous Chemicals

Accounting Law of the People's Republic of China Law of the People's Republic of China on Energy Conservation

Criminal Law of the People's Republic of China Biosecurity Law of the People's Republic of China

Anti-Monopoly Law of the People's Republic of China Production Safety Law of the People's Republic of China

Anti-Unfair Competition Law of the People's Republic of China Emergency Response Law of the People's Republic of China

Governance Law of the People's Republic of China on the Preservation of State Secrets Copyright Law of the People's Republic of China

Basic Standards for Internal Control of Enterprises Advertising Law of the People's Republic of China

Data Security Law of the People's Republic of China Fire Protection Law of the People's Republic of China

Cybersecurity Law of the People's Republic of China Law of the People's Republic of China on Tenders and Bids

U.S. Foreign Corrupt Practices Act (FCPA) Labour Law of the People's Republic of China

U.S. Federal Trade Commission Act Social Labour Contract Law of the People's Republic of China

U.S. Data Protection Act Employment Promotion Law of the People's Republic of China

EU General Data Protection Regulation (GDPR) Social Insurance Law of the People's Republic of China

Law of the People's Republic of China on the Promotion of Cleaner Production Special Provisions on Labor Protection of Female Employees

Environmental Protection Law of the People's Republic of China Law of the People's Republic of China on the Protection of Minors

Law of the People's Republic of China on Environmental Impact Assessment Law of the People's Republic of China on the Prevention and Control of Occupational

Environmental DiseasesLaw of the People's Republic of China on Prevention and Control of Water Pollution

Law of the People's Republic of China on Donations for Public Welfare

Law of the People's Republic of China on Prevention and Control of Atmospheric Pollution

Law of the People's Republic of China on the Prevention and Control of Environmental Pollution

by Solid WasteRESPONSIBLE GREEN CRAFTSMANSHIP HUMANISTIC

99 Environmental Social and Governance (ESG) Report PREFACE GOVERNANCE OPERATION PRODUCTS CARE 100

ESG Key Performance Indicators

*Governance Performance *Environmental Performance

Indicators Unit 2025 Indicators Unit 2025

Corporate Governance Environmental Compliance Management

Number of Shareholders' Meetings held times 5 Environmental investment million RMB 37.28

Number of Proposals deliberated at Shareholders' Meetings items 29 Amount of major administrative penalties imposed by ecological 0

and environmental authorities due to environmental incidents million RMB

Number of Board of Directors Meetings held times 9

Percentage of employees trained on specific environmental issues % 88

Number of Proposals deliberated at Board of Directors Meetings items 68 Percentage of operational sites with specific environmental risk % 100

Total number of whistleblowing reports received times 0 assessments

Percentage of operational sites with ISO 50001 Energy Manage-

Anti-Bribery and Anti-Corruption % 60ment System Certification

Corruption risk assessment coverage of operational sites % 100 Percentage of operational sites with ISO 14001 Environmental % 100

Management Systems Certification

Corruption incidents cases 0

Response to Climate Change

Timely rate of reported complaints % 100

Percentage covered under emissionslimiting regulations % 0

Anti-corruption training hours hours 1815

Scope 1 GHG emissions tCO?e 293122.36

Percentage of directors trained on anti-corruption competition % 100

Scope 2 GHG emissions tCO?e 205141.94

Percentage of management trained on anti-corruption competition % 100

Total GHG emissions tCO?e 498264.30

Percentage of general employees trained on anti-corruption

% 86 GHG emission intensity tCO?e / million RMB revenue 174.11competition

Energy Utilization

Coverage rate of worksites/departments under business ethics risk

assessment % 100 Coal tons 162364.03

Coverage rate of worksites/departments in business ethics internal Natural gas m3 2750924.00

%100

audit Liquefied petroleum gas tons 15.06

Anti-Unfair Competition Diesel liters 158667.49

Amount of lawsuits and major administrative penalties related to

million RMB 0 Gasoline liters 33367.10unfair competition

Biomass fuel tons 46559.16

Total hours of anti-unfair competition training hours 1815

Purchased electricity (non-renewable energy) MWh 322450.18

Percentage of directors trained on anti-unfair competition % 100

Purchased electricity (renewable energy) MWh 176339.54

Percentage of management trained on anti-unfair competition % 100 Self-used on-site green power MWh 3049.66

Percentage of general employees trained on anti-unfair competition % 86 Steam GJ 78897.35RESPONSIBLE GREEN CRAFTSMANSHIP HUMANISTIC

101 Environmental Social and Governance (ESG) Report PREFACE GOVERNANCE OPERATION PRODUCTS CARE 102

Indicators Unit 2025 Indicators Unit 2025

Total direct energy consumption tce 146481.12 Total nitrogen (TN) tons 90.95

Total indirect energy consumption tce 64368.04 Total phosphorus (TP) tons 10.90

Total comprehensive energy consumption tce 210849.16 Ammonia nitrogen (NH?-N) tons 9.99

Comprehensive energy consumption intensity tce / million RMB revenue 73.68 Biochemical oxygen demand (BOD5) tons 128.51

Percentage of grid-purchased electricity in total electricity

Waste Management

consumption % 29.07

Total self-generated electricity MWh 3049.66 Hazardous Waste

Clean energy consumption tce 52290.94 Total amount of hazardous waste discharge tons 62.68

Percentage of renewable energy consumption % 23.06 Hazardous waste discharge intensity tons / million RMB revenue 0.02

Water Utilization Percentage of hazardous waste recycled % 0.00

Total water withdrawal million liters 4764.29 *Waste transferred from disposal (recycle) tons 0.00

Percentage of water withdrawal in high or extremely high

% 100 *Waste for direct disposal (incineration with energy recovery) tons 0.00baseline water stress

*Waste for direct disposal (incineration without energy recovery) tons 62.68

Total water consumption million liters 350.36

*Waste for direct disposed (landfill) tons 0.00

Percentage of water consumption in high or extremely

high baseline water stress % 100 *Waste for direct disposed (other operations) tons 0.00

Water consumption intensity5 million liters / million RMB revenue 0.12 Non-hazardous Waste

Pollutant Emissions

Total amount of non-hazardous waste discharge tons 95715.64

Waste Gas

Non-hazardous waste discharge intensity tons / million RMB revenue 33.45

Nitrogen oxides (NOX) tons 159.87

*Waste transferred from disposal (recycle) tons 6445.44

Sulfur oxides (SOX) tons 128.42

*Waste for direct disposal (incineration with energy recovery) tons 0.00

Particulate matter (PM) tons 75.67

*Waste for direct disposal (incineration without energy recovery) tons 3405.59

Volatile organic compounds (VOCs) tons 8.63

*Waste for direct disposal (landfill) tons 10669.99

Hazardous air pollutants (HAPs) tons 1.70

*Hydrogen sulfide tons 1.56 *Waste for direct disposal (other operations) tons 75194.62

*Mercury and its compounds tons 0.14 Circular Economy

Wastewater Volume of waste recycled and reused tons 6445.44

Total wastewater discharge million liters 4413.93 Proportion of waste recycled and reused % 6.73

Wastewater discharge intensity million liters / million RMB revenue 1.54

Total discharge of pollutants in water tons 576.94

Chemical oxygen demand (COD) tons 336.58

5 The accounting scope for water consumption intensity has been adjusted compared with last year. Water consumption intensity = total

water consumption / revenue per million RMB.RESPONSIBLE GREEN CRAFTSMANSHIP HUMANISTIC

103 Environmental Social and Governance (ESG) Report PREFACE GOVERNANCE OPERATION PRODUCTS CARE 104

*Social Performance

Indicators Unit 2025 Indicators Unit 2025

Employee Rights Protection Employee Training and Talent Development

Total employees persons 2252 Total annual training expenditures million RMB 2.66

*Male employees persons 1641 Average training expenditure per employee RMB 1200

*Female employees persons 611 Total number of employees trained persons 2252

*Management team (Grade 5 and above) persons 160 Employee training coverage rate % 100

*Intermediate professionals (Grade 4) persons 270 *Number of male employees trained persons 1641

*Junior professionals (Grade 1-3) persons 1822 *Number of female employees trained persons 611

*Employees aged ≤30 persons 754 *Number of management team (Grade 5 and above) trained persons 160

*Employees aged 31–49 persons 1442 *Number of intermediate professionals (Grade 4) trained persons 270

*Employees aged ≥50 persons 56 *NumTotal employee training hours persons 1822

*Employees in China (incl. Hong Kong Macao Taiwan) persons 2246 Total employee training hours hours 241010

*Employees in other countries persons 6 *Total training hours for male employees hours 205742

*Han ethnicity employees persons 2043 *Total training hours for female employees hours 35268

*Other ethnic groups employees persons 209 *Total training hours for management team (Grade 5 and above) hours 19840

Local management recruitment ratio % 53 *Total training hours for intermediate professionals (Grade 4) hours 37726

Female ratio in management % 27 *Total training hours for junior professionals (Grade 1-3) hours 183443

Labor contract signing rate % 100 Average training hours per employee hours 107.02

Social insurance coverage rate % 100 *Average training hours per male employee hours 125.38

Demobilized personnel persons 67 *Average training hours per female employee hours 57.72

New hires persons 531 *Average training hours per management team (Grade 5 and above) hours 124.00

*New male hires persons 378 *Average training hours per intermediate professionals (Grade 4) hours 139.73

*New female hires persons 153 *Average training hours per junior professionals (Grade 1-3) hours 100.68

*New hires aged ≤30 persons 277 Total number of employees under performance and career development assessment persons 2252

*New hires aged 31–49 persons 249 Percentage of employees under performance and career development assessment % 100

*New hires aged ≥50 persons 5 Number of male employees under performance and career development assessment persons 1641

Employee turnover rate % 11.57 Number of female employees under performance and career development assessment persons 611

Employees eligible for parental leave persons 137 Employees aged ≤30 under performance and career development assessment persons 754

Employees took parental leave persons 137 Employees aged 31-49 under performance and career development assessment persons 1442

Employees returned to work after taking parental leave persons 137 Employees aged ≥50 under performance and career development assessment persons 56RESPONSIBLE GREEN CRAFTSMANSHIP HUMANISTIC

105 Environmental Social and Governance (ESG) Report PREFACE GOVERNANCE OPERATION PRODUCTS CARE 106

Indicators Unit 2025 Indicators Unit 2025

Percentage of employees trained on diversity discrimination and harassment % 100 Innovation-Driveny

Percentage of operational sites with human rights impact and risk assessment conducted % 100 Total R&D investment million RMB 151.20

Percentage of operational sites with ISO 45001 Occupational Health and Safety Manage- Ratio of R&D investment to main business revenue % 5.28

ment System Certification % 100

Number of R&D employees persons 285

Number of occurrences of child labour employment times 0

Ratio of R&D personnel to total company employees % 12.66

Employee Health and Safety

Total valid patents items 310

Workplace safety investment amount million RMB 5.43

*Invention patents items 100

Total number of safety training sessions times 556

*Utility model patents items 88

Total safety training hours hours 32102

*Others6 items 122

Number of work-related fatalities persons 0

Supply Chain Security7

Number of occupational health examinations persons 1273

Total number of suppliers / 1177

Coverage rate of occupational health examinations % 100

Total procurement from local Suppliers million RMB 343

Percentage of operational sites with health & safety risk assessments % 100

Local supplier procurement ratio % 79.05

Lost time serious incident rate % 0

Number of target suppliers8 signed to Supplier Code of Conduct / 820

Total recordable incident rate (TRIR) % 0.86

Percentage of target suppliers signed the Supplier Code of Conduct % 69.67

Process Safety Incidents Count (PSIC) cases 2

Number of target suppliers assessed for Corporate Social Responsibility (CSR) / 763

Process Safety Incident Severity Rate (PSISR) % 0.09

Percentage of target suppliers assessed for CSR % 64.83

Safety and Quality of Products and Services

Number of suppliers with on-site CSR audits / 103

Incidents of non-compliance concerning the quality and safety impacts of products and

services cases 0 Percentage of suppliers with on-site CSR audits % 8.75

Number of products recalled for quality and safety reasons pieces 0 Number of suppliers with environmental labor and human rights contract clauses / 820

Number of complaints due to quality and safety reasons times 27 Percentage of suppliers with environmental labor and human rights contract clauses % 70

Rate of quality complaints % 1.18 Number of suppliers trained in ESG/sustainability / 763

First-pass yield rate % 97.27 Percentage of Suppliers trained in ESG/sustainability % 65

Food safety incidents cases 0 Number of procurement employees persons 30

Transportation incidents cases 0 Number of procurement employees trained on sustainable procurement persons 30

Critical Control Points (CCP) monitoring effectiveness rate % 100 Percentage of procurement employees trained on sustainable procurement % 100

Incidents of non-compliance concerning product and service information and labeling times 0

Incidents of non-compliance concerning marketing communications times 0 6 "Others" refers to the number of trademarks and other rights acquired by AHB.

7 The statistical scope of all suppliers is defined as the number of production and operation suppliers.

Percentage of products by revenue that contain genetically modified organisms (GMOs) % 0 8 Target suppliers refer to qualified production and operation suppliers.RESPONSIBLE GREEN CRAFTSMANSHIP HUMANISTIC

107 Environmental Social and Governance (ESG) Report PREFACE GOVERNANCE OPERATION PRODUCTS CARE 108

Indicators Unit 2025 Content Index

Data Security and Customer Privacy Protection

Coverage percentage of worksites/departments under information security risk *Index Based on the SSE Guidelines No.14

assessment % 100

Coverage percentage of worksites/departments via internal information security Dimension SSE Topic Corresponding Chapter

100

audit % Response to Climate Change Implement Climate Action

Percentage of operating sites certified with the ISO 27001 Information Security

% 100 Pollutant Emissions Protect Ecological BalanceManagement System

Number of verified information security incidents Waste Disposal Protect Ecological Balancecases 0

Number of information security training sessions conducted times 4 Ecosystem and Biodiversity Protection Protect Ecological Balance

Environment

Number of employees trained in information security persons 1339 Environmental Compliance Management Protect Ecological Balance

Social Contribution Energy Utilization Optimize Resource Recycling

Total amount of charitable donations million RMB 1.97 Water Utilization Optimize Resource Recycling

Circular Economy Optimize Resource Recycling

No relevant special initiatives during the

reporting period; all charitable donations are

Rural Revitalization

consolidated and disclosed in the Contribute to

Social Welfare chapter

Social Contribution Contribute to Social Welfare

Innovation-Driven Promote Research and Innovation

Society Ethics of Science and Technology Promote Research and Innovation

Supply Chain Security Foster Collaborative Success with Partners

Equal Treatment to SMEs Foster Collaborative Success with Partners

Safety and Quality of Products and Services Ensure Product Safety

Data Security and Customer Privacy Protection Enhance Compliance Code

Employees Gather Enterprising Talents

Due Diligence Enhance Compliance Code

Stakeholder Communication ESG Development Strategy

Governance

Anti-Bribery and Anti-Corruption Adhere to Business Ethics

Anti-Unfair Competition Adhere to Business EthicsRESPONSIBLE GREEN CRAFTSMANSHIP HUMANISTIC

109 Environmental Social and Governance (ESG) Report PREFACE GOVERNANCE OPERATION PRODUCTS CARE 110

*GRI Content Index GRI Disclosure Title Corresponding Chapter

Statement of use: AHB has reported in accordance with the GRI Standards for the period from 1 January 2025 to 31 December

2025. GRI 101: Biodiversity 2024

Statement of use: AHB has prepared this report with reference to the Global Reporting Initiative (GRI) Sustainability reporting 101-2 Management of biodiversity impacts Protect Ecological Balance

GRI Disclosure Title Corresponding Chapter GRI 201: Economic Performance 2016

GRI 2: General Disclosures 2021 201-1 Direct economic value generated and distributed Please refer to the Annual Report

2-1 Organizational details About this Report About AHB 201-2 Financial implications and other risks and opportunities due to

Implement Climate Action

2-2 Entities included in the organization's sustainability reporting About this Report climate change

2-3 Reporting period frequency and contact point About this Report 201-3 Defined benefit plan obligations and other retirement plans Gather Enterprising Talents

2-4 Restatements of information ESG Key Performance Indicators GRI 204: Procurement Practices 2016

2-5 External assurance Assurance Statement 204-1 Proportion of spending on local suppliers Foster Collaborative Success with Partners

2-6 Activities value chain and other business relationships Foster Collaborative Success with Partners GRI 205: Anti-Corruption 2016

2-7 Employees Gather Enterprising Talents 205-1 Operations assessed for risks related to corruption Adhere to Business Ethics

2-9 Governance structure and composition Strengthen Standardized Governance 205-2 Communication and training about anti-corruption policies and

Adhere to Business Ethics

2-10 Nomination and selection of the highest governance body Strengthen Standardized Governance procedures

2-11 Chair of the highest governance body Strengthen Standardized Governance 205-3 Confirmed incidents of corruption and actions taken Adhere to Business Ethics

2-12 Role of the highest governance body in overseeing the manage- ESG Development Strategy Strengthen GRI 302: Energy 2016

ment of impacts Standardized Governance

302-1 Energy consumption within the organization Optimize Resource Recycling

2-13 Delegation of responsibility for managing impacts Enhance Compliance Code

302-3 Energy intensity Optimize Resource Recycling

2-14 Role of the highest governance body in sustainability reporting ESG Development Strategy

302-4 Reduction of energy consumption Optimize Resource Recycling

2-16 Communication of critical concerns ESG Development Strategy

302-5 Reductions in energy requirements of products and services Optimize Resource Recycling

2-18 Evaluation of the performance of the highest governance body Please refer to the Annual Report

GRI 303: Water and Effluents 2018

2-19 Remuneration policies Please refer to the Annual Report

2-20 Process to determine remuneration Please refer to the Annual Report 303-1 Interactions with water as a shared resource Optimize Resource Recycling

Message from the Management 303-2 Management of water discharge-related impacts Optimize Resource Recycling

2-22 Statement on sustainable development strategy

ESG Development Strategy 303-3 Water withdrawal Optimize Resource Recycling

2-27 Compliance with laws and regulations Laws and Regulations 303-4 Water discharge Protect Ecological Balance

2-29 Approach to stakeholder engagement ESG Development Strategy

303-5 Water consumption Optimize Resource Recycling

2-30 Collective bargaining agreements Gather Enterprising Talents

GRI 3: Material Topics 2021

3-1 Process to determine material topics ESG Development Strategy

3-2 List of material topics ESG Development Strategy

3-3 Management of material topics ESG Development StrategyRESPONSIBLE GREEN CRAFTSMANSHIP HUMANISTIC

111 Environmental Social and Governance (ESG) Report PREFACE GOVERNANCE OPERATION PRODUCTS CARE 112

GRI Disclosure Title Corresponding Chapter GRI Disclosure Title Corresponding Chapter

GRI 305: Emissions 2016 403-9 Work-related injuries Gather Enterprising Talents

305-1 Direct (Scope 1) GHG emissions Implement Climate Action 403-10 Work-related ill health Gather Enterprising Talents

305-2 Energy indirect (Scope 2) GHG emissions Implement Climate Action GRI 404: Training and Education 2016

305-4 GHG emissions intensity Implement Climate Action 404-1 Average hours of training per year per employee Gather Enterprising Talents

404-2 Programs for upgrading employee skills and transition assistance

305-5 Reduction of GHG emissions Implement Climate Action Gather Enterprising Talents

programs

305-7 Nitrogen oxides (NOx) sulfur oxides (SOx) and other significant air

Protect Ecological Balance 404-3 Percentage of employees receiving regular performance and career

emissions Gather Enterprising Talentsdevelopment reviews

GRI 306: Waste 2020 GRI 405: Diversity and Equal Opportunity 2016

306-1 Waste generation and significant waste-related impacts Protect Ecological Balance Strengthen Standardized Governance

405-1 Diversity of governance bodies and employees Gather Enterprising Talents

306-2 Management of significant waste-related impacts Protect Ecological Balance

GRI 408: Child Labor 2016

306-3 Waste generated Protect Ecological Balance

Gather Enterprising TalentsESG Key

408-1 Operations and suppliers at significant risk for incidents of child labor

306-4 Waste diverted from disposal Protect Ecological Balance Performance Indicators

306-5 Waste directed to disposal Protect Ecological Balance GRI 409: Forced or Compulsory Labor 2016

GRI 308: Supplier Environmental Assessment 2016 409-1 Operations and suppliers at significant risk for incidents of forced or Gather Enterprising Talents

compulsory labor

308-2 Negative environmental impacts in the supply chain and actions Foster Collaborative Success with Partners GRI 414: Supplier Social Assessment 2016

taken

Foster Collaborative Success with

GRI 401: Employment 2016 414-2 Negative social impacts in the supply chain and actions taken Partners

401-1 New employee hires and employee turnover Gather Enterprising Talents GRI 416: Customer Health and Safety 2016

401-2 Benefits provided to full-time employees that are not provided to 416-1 Assessment of the health and safety impacts of product and service

temporary or part-time employees Gather Enterprising Talents categories Ensure Product Safety

401-3 Parental leave Gather Enterprising Talents 416-2 Incidents of non-compliance concerning the health and safety impacts Ensure Product Safety

of products and services

GRI 403: Occupational Health and Safety 2018

GRI 417: Marketing and Labeling 2016

403-1 Occupational health and safety management system Gather Enterprising Talents

417-1 Requirements for product and service information and labeling Ensure Product Safety

403-2 Hazard identification risk assessment and incident investigation Gather Enterprising Talents

417-2 Incidents of non-compliance concerning product and service informa-

Ensure Product Safety

403-3 Occupational health services Gather Enterprising Talents tion and labeling

403-4 Worker participation consultation and communication on 417-3 Incidents of non-compliance concerning marketing communications Ensure Product Safety

Gather Enterprising Talents

occupational health and safety GRI 418: Customer Privacy 2016

403-5 Worker training on occupational health and safety Gather Enterprising Talents 418-1 Substantiated complaints concerning breaches of customer privacy

Enhance Compliance Code

and losses of customer data

403-6 Promotion of worker health Gather Enterprising Talents

403-7 Prevention and mitigation of occupational health and safety

impacts directly linked by business relationships Gather Enterprising Talents

403-8 Workers covered by an occupational health and safety manage-

ment system Gather Enterprising TalentsRESPONSIBLE GREEN CRAFTSMANSHIP HUMANISTIC

113 Environmental Social and Governance (ESG) Report PREFACE GOVERNANCE OPERATION PRODUCTS CARE 114

*Sustainability Accounting Standards Board (SASB) Standards Content Index Topic Indicators Code Corresponding Chapter

Topic Metric Code Corresponding Chapter (1) Total recordable incident rate (TRIR) ESG Key Performance

and (2) fatality rate for (a) direct RT-CH-320a.1

Gross global Scope 1 emissions Indicatorsemployees and (b) contract employees

percentage covered under RT-CH-110a.1 Workforce Health

emissions-limiting regulations Implement Climate Action & Safety Description of efforts to assess monitor

Greenhouse Gas Protect Ecological Balance and reduce exposure of employees and RT-CH-320a.2 Gather Enterprising Talents

Emissions contract workers to long-term (chronic) Discussion of long- and short-term strategy ESG Key Performance health risks

or plan to manage Scope 1 emissions Indicators

RT-CH-110a.2

emissions reduction targets and an analysis Product Design for

of performance against those targets Revenue from products designed for Use-phase RT-CH-410a.1 No relevant numbers

use-phase resource efficiency9

Efficiency

Air emissions of the following pollutants:

Protect Ecological Balance (1) Percentage of products that contain

(1) NOx (excluding N?O) (2) SOx (3) Air Quality RT-CH-120a.1 ESG Key Performance Globally Harmonised System of

volatile organic compounds (VOCs) and

Indicators Classification and Labelling of Chemi-

(4) hazardous air pollutants (HAPs) Prioritize Sustainable

cals (GHS) Category 1 and 2 Health and RT-CH-410b.1

Products

Safety & Environ- Environmental Hazardous Substances

(1) Total energy consumed

Optimize Resource mental Steward-

(2) percentage of such products that

Energy (2) percentage grid electricity ship of Chemicals have undergone a hazard assessmentRT-CH-130a.1 Recycling ESG Key Perfor-

Management (3) percentage renewable and (4) total

mance Indicators

self-generated energy Discussion of strategy to (1) manage Protect Ecological Balance

chemicals of concern and (2) develop

RT-CH-410b.2 Prioritize Sustainable

alternatives with reduced human or

(1) Total water withdrawn (2) total Products

Optimize Resource environmental impact

water consumed; percentage of each in

RT-CH-140a.1 Recycling ESG Key Perfor-

regions with High or Extremely High Genetically Percentage of products by revenue that

mance Indicators ESG Key Performance

Baseline Water Stress Modified Organ- contain genetically modified organisms RT-CH-410c.1

Indicators

isms (GMOs)

Water Number of incidents of non-compliance Management of Discussion of corporate positions related

Management associated with water quality permits RT-CH-140a.2 Protect Ecological Balance Message from the the Legal & to government regulations or policy

standards and regulations RT-CH-530a.1 Management Protect Regulatory proposals that address environmental

Ecological Balance

Environment and social factors affecting the industry

Description of water management risks Optimize Resource

Process Safety Incidents Count (PSIC)

and discussion of strategies and practices RT-CH-140a.3 Recycling Prioritize Sustain-

Operational Process Safety Total Incident Rate (PSTIR) ESG Key Performance to mitigate those risks able Products RT-CH-540a.1

Safety Emergency and Process Safety Incident Severity Rate Indicators

Preparedness & (PSISR)

Protect Ecological Balance

Hazardous Waste (1) Amount of hazardous waste Response

RT-CH-150a.1 ESG Key Performance ESG Key Performance

Management generated (2) percentage recycled Number of transport incidents RT-CH-540a.2

Indicators Indicators

For details please refer to

ESG Development Strategy the Production and Sales

Discussion of engagement processes to Activity Metric Production by reportable segment RT-CH-000.A

Community Protect Ecological Balance Volume Analysis Table in the

manage risks and opportunities associat- RT-CH-210a.1

Relations Gather Enterprising Talents annual report.ed with community interests

Contribute to Social Welfare

9 As of the end of the reporting period the statistical calibers for relevant indicators remain a work in progress and are not yet aligned to a

reportable standard.RESPONSIBLE GREEN CRAFTSMANSHIP HUMANISTIC

115 Environmental Social and Governance (ESG) Report PREFACE GOVERNANCE OPERATION PRODUCTS CARE 116