CONTENTS
Responsible Governance Craftsmanship Products
01 Strengthen the Foundation Create Outstanding Qualityof the Enterprise 03
About this Report 01 Strengthen Regulated Governance 19 Ensure Product Safety 51
Chairwoman's Message 03 Enhance Compliance Code 21 Prioritize Sustainable Products 57
Adhere to Business Ethics 23 Promote Research and Innovation 61
About AHB 05
ESG Development Strategy 11
Appendix 1-Laws and Regulations 87 Green Operation Humanistic Care
02 Promote Low-carbon Create a Better LifeAppendix 2-ESG Key Performance Indicators Transformation 04
89
Appendix 3-Content Index 96
Implement Climate Action 29 Gather Enterprising Talents 69
Appendix 4-Feedback Form 102
Optimize Resource Recycling 39 Foster Collaborative Success with Partners 80
Protect Ecological Balance 47 Contribute to Social Welfare 852024 Environmental Social and Governance Report About this Report
About this Report
Report Introduction Board Statement
This report is the second publicly released Environmental Social and Governance (ESG) Report The Board undertakes to supervise the contents of this report and ensure that there are no
of Anhui Huaheng Biotechnology Co. Ltd. (Stock Code: 688639.SH) (hereinafter referred to as false records or misleading statements. The Board has reviewed and approved this report and
"AHB" "the Company" or "we"). This report aims to disclose our strategic vision initiatives and guaranteed the authenticity accuracy and completeness of the contents of this report.performance in environmental social and governance areas for 2024 to our stakeholders.Reporting Scope Obtain this Report
This report covers Anhui Huaheng Biotechnology Co. Ltd. and its subsidiaries and the scope of Stakeholders can view and download this report on the official website of AHB (www.huahengbio.the report is consistent with that of our Annual Report. The time range is from January 1 2024 to com). This report is available in both Chinese and English for readers to refer to. In case of any
December 312024 and the release cycle is once a year which is consistent with the fiscal year. ambiguity or inconsistency due to language the Chinese version shall prevail.Reporting Standards Contact Information
This report is prepared in accordance with the "SSE Listed Company Self-Regulation Guidance Address: No.197 Chang' an Road High-tech District Hefei City Anhui Province
No.14——Sustainable Development Report (Trial)" and refers to the "SSE STAR Market Listed Website: www.huahengbio.com
Company Self-Regulation Guidelines No.13——Sustainable Development Reports Guideline" Email: ahb@ehuaheng.com
and the "GRI Standard for Sustainability Reporting" issued by the Global Sustainability Standards Tell: +86-0551-65689046
Board 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 2024 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.
01 022024 Environmental Social and Governance Report Chairwoman's Message
Chairwoman's Message
Dear friends
Time surges forward and the striving never ceases. Looking back from the new starting point of 2025 the Creating outstanding products with a craftsman's spirit ensuring customer value is embedded
employees of AHB have anchored their direction in the tide of the times with the tenacity to "Do difficult in every detail. Customer-centricity is not just a slogan it is a belief deeply ingrained in the DNA of AHB
but right things" and grown towards the sun in the turbulent currents of change with the resilience to employees. In 2024 we responded to expectations with unparalleled craftsmanship. Our technological
"take root downward." This year we have solidified our foundation through responsible governance moat widened further as we successfully broke through the research and application of new technologies
illuminated the future with green operations defined excellence with craftsmanship and warmed hearts such as succinic acid and 13-propanediol driving product advancement through technological
with humanistic care. innovation and defining new global quality standards with advanced processes. From the laboratory
to the production line from molecular structure to the customer satisfaction the employees of AHB
Strengthening corporate foundations through responsible governance ensuring every step achieved "millimeter-level pursuit" to enable customers to make "kilometer-level leaps."
is taken more steadily. AHB always believes that the vitality of a company stems from a sense of
reverence and commitment to responsibility. In 2024 we continued to refine our governance practices. Creating a better life with humanistic care ensuring strivers to grow alongside the times. Talent
This year our governance system has been further upgraded and we have received an A rating for is AHB's most precious "active cell." In 2024 we let the "Spirit of Strivers" shine with warm light. The
information disclosure from the Shanghai Stock Exchange for two consecutive years making trust culture of striving is passed down together; we implemented the "Stellar Plan" for new graduates
become the cornerstone for AHB to maintain a high level. The compliance gene is deeply embedded enabling young dreams to sprout and flourish sharing profits and bonuses with all employees making
with all employees signing the "Sunshine Commitment" maintaining a zero-tolerance attitude towards every drop of sweat sparkle with value; Customer value re-creation we focused on every detail and
safeguarding industry integrity. We are further solidifying our foundation because we understand that promptly responding to customer needs; Promoting win-win cooperation in the industrial chain we
the higher we grow the deeper we must root ourselves. provided training and empowerment to suppliers promoting the common success of our partners in the
industry.Promoting a low-carbon transformation through green operations ensuring every gram
of product maintains its ecological temperature. Synthetic biology is the answer to the green Looking back at 2024 the sleepless lights in those laboratories the pulsating data on production lines
revolution and the employees of AHB are the solvers continuously writing answers to the low-carbon and the satisfied smiles of our customers together weave the totem of AHB's employee's struggle. We
challenge with hardcore technology. This year we have made further breakthroughs in our zero-carbon deeply understand that the vast universe of synthetic biology does not lie in chasing market trends
landscape implementing rooftop photovoltaic power generation at our Changfeng and Qinhuangdao but in the meticulous cultivation over a decade. In 2025 let's continue to be "gardeners of industrial
bases continuously improving our green electricity self-sufficiency rate. The carbon footprint of ecosystems" with responsibility as our soil innovation as our light and hard work as our nourishment
valine and alanine products has been continuously optimized earning us the BASF Product Carbon allowing the seeds of green technology to grow into the power that changes the world!
Footprint Pioneer Award. While the industry is still discussing emission reduction targets we have
already harnessed the "magic" of biological manufacturing to harmoniously integrate lucidwaters and
lushmountains with economic prosperity.Chairwoman of AHB
03 042024 Environmental Social and Governance Report About AHB
About AHB Main Business and Products
Company Profile As a global leader in bio-manufacturing AHB continues to make efforts in synthetic biology innovation and research and development and has gradually formed a business layout of amino acids vitamins bio-based new material
monomers and other products.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 the Company's main products include amino Multi-category Multiple Products Applications
acid series (alanine series L-valine isoleucine tryptophan arginine etc.) vitamin series (D-calcium pantothenate
D-panthenol inositol) bio-based new material monomers (13-propanediol succinic acid) and other products Alanine series Valine Arginine
(malic acid arbutin). These products can be widely applied in intermediates animal nutrition personal care human Amino Acids Intermediates
nutrition & flavor plant nutrition and many other fields. After years of innovative development AHB has become a Tryptophan lsoleucine
global leader in the manufacturing of bio-based products.Animal nutrition
AHB upholds the concept of green environmental protection developing cutting-edge synthetic biology technology. D-Calcium Vitamins D-Panthenol Inositol
We have successfully undertaken the National Development and Reform Commission's Biotechnology Industry Pantothenate
Demonstration Project in China and won the title of Champion in Manufacturing by the Ministry of Industry and Personal care
Information Technology. Currently the Company owns the Huaheng Synthetic Biology Research Institute which Bio-based
possesses sustainable innovation capabilities as well as four major production bases in Changfeng Qinhuangdao New Materials 1 3-Propanediol Succinic Acid
Bayannur and Chifeng all known for high-quality delivery capabilities. Monomers Human nutrition
& flavor
Other Products Malic Acid Arbutin
Plant nutrition
Development Strategy
Vision Mission Core values Development path
Becoming a global Developing Putting customers Replacing non-renewable
leader in the biotechnology to at the center petrochemical resources with
biotechnology maintain health for and striving for renewable biological resources.industry. lives. excellence. Replacing energy-and-pollution-
intensive petrochemical processes
with green and clean biological
manufacturing techniques.
05 062024 Environmental Social and Governance Report About AHB
20222024
Huaheng Central Led the establishment of
Development History 2011 Research Institute and Hefei Synthetic Biology
2020 Hangzhou Research Innovation Institute
Qinhuangdao Huaheng 2018 Institute were Led the establishment 2009 was established Bayannur Huaheng established of Bio-based Polyester
2007 The process The world's first 2013 was established Chifeng Huaheng was Textile Industry AllianceSelected as a of D-calcium established
Undertake technical research
L-alanine anaerobic Complete the Qinhuangdao pantothenate Establish a joint
achievement of fermentation joint-stock 2016 Huaheng won the innovation projects esterase Forbes China Top 50 Laboratory for Bio-based technology National Green
2005 funded by the Anhui Academy of reform Provincial was broken Innovative Companies Chemical FiberFactory
Ministry of Science Sciences postdoctoral through and
AHB was and Technology workstation industrialized
established unit
200620082010
Breakthrough
Awarded as 2012of DL-alanine Undertake
High-tech transaminase the National Undertake the
Enterprise in process Development "863 Program"
Anhui Province and Reform of the Ministry
Commission's 2015of Science and
Awarded as microbial Hefei
Awarded as Top Technologythe first batch demonstration Huaheng was
Private Science of national project Strategic established
and Technology high-tech cooperation
Enterprise in Won the enterprises in with BASF
Anhui Province China Patent 2017Anhui Province 2019
2023
Excellence 2021Huaheng AHB won the National
Award L-alanine won the Research Listed on the Science and Green Factorymanufacturing single
Institute was Technology Innovation Board champion product National Enterprise
founded of Shanghai Stock Exchange Technology Center
and started National Intellectual (stock code: 688639)
construction Property Excellent Establish an academician
Enterprise workstation with Zhejiang
07 University of Technology 082024 Environmental Social and Governance Report About AHB
Honor and Certification Awards
National Green Supply Chain Management National Demonstration Enterprise of Green Design of
Demonstration Enterprise Industrial Products
I n 2 0 2 4 A H B a ct i v e l y i m p ro v e d i n fo u r
dimensions: environment labor and human
r i g h ts b u s i n e s s et h i c s a n d s u sta i n a b l e National Intellectual Property Top 100 Innovative Enterprises in Anhui Province
procurement and won the bronze medal in Demonstration Enterprise
Ecovadis rating.Anhui Province Export Brand Enterprises Anhui Patent Gold Award (bio-fermentation L-valine)
Hefei Microbial Manufacturing and Food Application Hefei Manufacturing Service Enterprises
Technology Innovation Center
Qualifications
Recommended Catalogue of Green and Low-carbon Top 100 ESG Listed Companies in China
Advanced Technologies and Products in Industrial Field
(bio-fermentation L-alanine)
ISO 14001 Environmental Management System ISO 50001 Energy Management System Certification
Certification
Leading Industrial Carbon Peak Enterprises in China Grade A in Information Disclosure of SSE
ISO 9001 Quality Management System Certification ISO 22000 Food Safety Management System
Certification China Listed Companies Association 2024 Excellent Annual Growth Enterprises in A-share
Practice Cases of Sustainable Development of Listed Listed Companies
Companies
ISO 45001 Occupational Health and Safety ISO 27001 Information Security
Management System Certification Management System Certification Top 50 Chinese Listed Companies with New Quality Anhui Province Extraordinary Employer of the
Productivity Year by Liepin
GB/T 29490-2023 Intellectual Property Compliance China National Accreditation Service for Conformity Annual Outstanding Value Award of the Guangdong- China Securities Journal "New Quality
Management System Certification Assessment (CNAS) Laboratory Accreditation Certificate Hong Kong-Macao Greater Bay Area Listed Companies Enterprise Golden Bull Award"
Federation ESG100
09 102024 Environmental Social and Governance Report ESG Development Strategy
ESG Development Strategy ESG Strategic Planning
AHB regards ESG management as a core strategy deeply integrating the concept
of sustainable development into every aspect of our operations. The Company AHB is committed to the ESG strategy of "green source reborn carbon recycling for the future" aiming to promote
establishes a robust ESG governance framework formulates clear sustainability resource recycling and regeneration through green innovation in synthetic biology thereby supporting global
strategies and actively communicates and collaborates with all stakeholders sustainable development. Biosynthesis technology is not only a critical pathway to replace traditional chemical
continuously optimizes the management and analysis of key issues promoting the routes but also an essential force in achieving carbon reduction goals. We hope that breakthroughs in green
systematic and standardized implementation of ESG work. technology will set industry benchmarks and contribute to the sustainable development of our planet.With our practical measures in energy conservation carbon reduction and AHB's ESG strategy closely aligns with the United Nations Sustainable Development Goals (SDGs). It revolves around
clean production AHB was selected as an excellent practice case of sustainable four pillars: "G-Responsibility Governance" "E-Green Operation" "S-Craftsmanship Products" and "S-Humanistic
development of listed companies in 2024 by China Listed Companies Association. Care." Starting from within the company it gradually extends to partners communities and society at large
showcasing AHB's grand vision of driving industry transformation through green technology and co-creating a better
future. Through continuous innovation and responsible practices AHB not only provides customers with higher
ESG Management System quality products but also injects more green energy into Earth's sustainable development. Together with global partners we are moving toward a brighter future.AHB has established a comprehensive three-tier ESG governance structure comprising the Board of Directors the
Strategy and ESG Committee and the ESG Working Group ensuring that the concept of sustainable development ere to Implh ement C
permeates all company operations. Through this clear division of labor the roles and responsibilities of the Board Ad li
iness E
thics Ac mtio an te
and the Strategy and ESG Committee in researching and formulating the Company's ESG strategy identifying key ce us Oian B ptim
issues managing ESG risks and opportunities ESG performance management and capital market ratings have been lmp R izo e
strengthened further enhancing corporate governance and sustainable development management. ede cy
ESG Governance ESG Related Functions
Structure nanc
e Gr
ove
r ation Pro ee
und mo
n O
As the highest decision-making body of ESG management the Board of Directors is responsible G e F
o t
rpri
se Tra en s L
Board of for formulating the overall strategic direction of ESG supervising the implementation progress te fo
Directors of ESG work and ensuring the deep integration of sustainable development concept with the
Company's long-term development goals. Green source
reborn carbon
The Strategy and ESG Committee under the leadership of the Board of Directors is responsible recycling for the
for researching and formulating the Company's ESG strategic plan identifying ESG topics relevant future
Strategy and
to business operations and assessing ESG risks and opportunities. Additionally the committee
ESG st
oversees the development of the ESG performance management system promotes the close a i m
Committee
c
B C tse are Craf rod
integration of ESG goals with business operations and monitors the implementation of ESG fe tter P ta
e Ou
ts
policies to ensure that strategies are effectively implemented. Creat
The ESG Working Group is the executive layer of the ESG strategy responsible for implementing
decisions made by the Board and the Strategy and ESG Committee. The main functions of the la rt bh or rio l
working group include: conducting daily ESG management coordinating various departments P ativ P ab
ESG Working art e in
to advance ESG projects collecting and analyzing ESG data preparing ESG reports and ners arch Sus
ta
Group Ga se
communicating ESG progress with internal and external stakeholders. Additionally the working Ente ther Promote R
e
rpris ation
group is tasked with tracking the latest developments in the ESG field proposing improvement ing Talen and Innovts
suggestions and driving continuous optimization of the Company's sustainability efforts.
1112
Strengthen Re
Go gve urn laan tece d Enhance C
Co
Resp
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o e ef t nhe t hEn
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it
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Crea
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uccte S
Contribu re
to Social W
elfa2024 Environmental Social and Governance Report ESG Development Strategy
Stakeholder Communication Stakeholders Expectations and Demands Communication Channels and Mechanisms
·P roduct quality and safety ·C ustomer visits and communication
AHB values the expectations and needs of stakeholders committed to establishing systematic and regular
communication mechanisms. The Company maintains close ties with regulatory bodies shareholders employees · Sustainable product ·C ustomer satisfaction survey
customers partners and industry associations. Through various means we widely collect and carefully listen · Quality service · Exhibition customer communication
to opinions from all parties. At the same time AHB continuously optimizes communication channels deeply Customers
understands the impact of our operations on stakeholders and pays attention to the challenges posed by ESG risks ·I nformation security and privacy ·I ndustry communication and
enhancing trust among all parties and jointly promoting the realization of sustainable development goals. protection discussion activities
Stakeholders Expectations and Demands Communication Channels and Mechanisms
· Sustainable supply chain · Supplier selection and evaluation
·P roduct quality and safety · Supplier communication
· Intellectual property protection · Strategic cooperation
·Compliance ·Supervision and inspection Suppliers and Partners · Business ethics · Research visits
·Pay taxes according to law ·Meeting exchange
Government and ·Anti-corruption ·Open consultation
Regulatory Agencies
· Product development and innovation · Industry communication
Industry Associations ·I ndustry development · On-the-spot investigation·Information disclosure announcement
·Protection of shareholders' equity
·G eneral meeting of stockholders
·Good corporate governance
· Daily phone and email communication
·Increase return on investment
·E xchange on the Shanghai e-interactive
Shareholders and ·High quality information disclosure platform
Investors ·Risk management · Public welfare charity ·P ublic welfare activities
·Performance presentation
·Business ethics ·C ommunity development · Community visits
·Investor research
Community ·E nvironmental protection · Employee volunteer service
·W orker's congress
·E mployee rights protection
·S taff training
· Employee compensation and benefits
·P erformance evaluation ·C ooperation between school and
· Employee health and safety · Scientific research and innovation enterprise
Employees · Set up a complaint and feedback
·S taff training and development Universities and ·T alent cultivation
mechanism · Academic researchResearch Institutes
13 142024 Environmental Social and Governance Report ESG Development Strategy
High
Assessment of Dual-material Topics Fourth level Third level Second level First level 10
17
AHB uses a dual-material topic assessment method in ESG management practice to scientifically and systematically 1522
identify and prioritize the most critical ESG topics for the Company and stakeholders. We collected opinions and 14 01
suggestions from the Company's management ESG working groups and various stakeholders through surveys. The 23 18 1609
assessment is conducted from two dimensions: impact importance (i.e. the impact on environment and society) and 02
12
financial importance (i.e. the impact on the company's financial performance).
07
05
We identified the material topics of our company for 2024 through the following process: 25 21 24 13 08 03
191106
Based on the comprehensive reference of relevant international standards and disclosure 20
frameworks (GRI SDGs) capital market rating agencies (Ecovadis CDP MSCI) Shanghai Stock
04
Exchange requirements of major customers performance of peers and business development
of AHB 25 ESG topics most closely related to the Company's operation were identified.Identification
Low Financial importance High
We invite internal and external stakeholders to assess the importance of issues through
questionnaires. The research includes Company management ESG working groups Environmental topics Social topics Governance topics
employees customers suppliers or partners etc.Research
First level Second level Third level Fourth level
10 E mployee health and 16 R esearch and 07 C ircular economy 24 Data privacy and security
Priority is ranked by quantified evaluation from two dimensions of impact importance and safety innovation
financial importance.
01 C limate change and 17 I ntellectual property 18 C ustomer service 11 Diversity inclusion
Ordering greenhouse gas emissions protection and equality
15 P roduct quality and 09 Human rights and labor 13 T raining and talent 21 Corporate governance
safety rights management development
The Management of the Company reviews the topic evaluation process and the ranking 22 C ompliance and risk 14 C hemical safety 08 C lean technology 19 Responsible marketing
results. management management opportunities
Review 02 E nergy management 12 E mployee compensation 20 Social contribution
and benefits
05 W aste management 06 S ustainable supply 25 Investor rights
After review the Board and The Management of the Company confirm the results of the dual- chain protection
material topic for the current year. 03 W ater resource 23 B usiness ethics and 04 Biodiversity
management anti-corruption conservation
Confirmation
1516
Impact importance2024 Environmental Social and Governance Report Responsible Governance Strengthen the Foundation of the Enterprise
01 Responsible GovernanceStrengthen the Foundation of the Enterprise
Strengthen Regulated Governance 19
Enhance Compliance Code 21
Adhere to Business Ethics 23
17 182024 Environmental Social and Governance Report Responsible Governance Strengthen the Foundation of the Enterprise
Strengthen Regulated Governance General The highest decision-making body which makes decisions on the appointment of directors and
Meeting of supervisors refinancing major foreign investment related party transactions etc. The convening
Shareholders proposal holding voting and resolution of the General Meeting of Shareholders are witnessed by
lawyers on site and legal opinions on legality and compliance are issued.Governance Structure Strengthening strategic decision-making and risk management functions. In 2024 the Board
consists of nine members including six non-independent directors (one of whom is the
AHB has always adhered to the compliance operation standards taking the Company Law of the People's Republic chairwoman) and three independent directors. The Board has established three specialized Board of
of China the Securities Law of the People's Republic of China the Code for the Governance of Listed Companies committees: Strategy and ESG Committee Nomination Remuneration and Evaluation Committee Directors
and other laws and regulations as the guidelines benchmarking the latest policy guidance of the China Securities and Audit Committee. The Board is accountable to the shareholders' meeting and is responsible
Regulatory Commission and the Shanghai Stock Exchange and continuously deepening the reform of the for deciding on the Company's business plans and investment strategies as well as implementing
governance system. resolutions passed by the General Meeting of Shareholders.The Company scientifically defines the boundaries of authority and responsibility between the General Meeting Implementing independent supervision and focus on efficient operation of management. In
of Shareholders the Board of Directors the Supervisory Committee and the Management Team constructing a Supervisory 2024 the Supervisory Committee is composed of three members including two shareholder
collaborative mechanism that integrates decision-making execution and oversight. Through institutionalized Committee representatives and one employee representative. The Supervisory Committee supervises the
checks and balances we ensure both the scientific nature and transparency of major decisions while continuously Company's legal operation and the performance of duties by directors and senior managers.unleashing operational vitality. This lays a solid institutional foundation for safeguarding shareholder rights and
practicing sustainable development. Key performance indicators
In order to optimize the corporate governance mechanism we will adjust governance structure as soon as possible in
accordance with the relevant provisions of the Company Law of the People's Republic of China the China Securities During the reporting period the convening of the General Meeting of Shareholders Board of Directors and
Regulatory Commission and the State Administration of Financial Supervision on not setting up a supervisory board. Supervisory Committee is summarized as follows:
General Meeting of
Shareholders General Meeting of Shareholders3times Board of Directors9times Supervisory Committee7times
Supervisory Committee Proposals Deliberated14items Proposals Deliberated47items Proposals Deliberated20items
Board of Directors
Diversified Governance
Strategy and ESG Committee Nomination Remuneration and Audit CommitteeEvaluation Committee AHB attaches great importance to the independence and diversification of the Board of Directors and continues to
improve the Independent Director Work System. At the same time we pay attention to the diversity of background
(such as gender age profession etc.) in the nomination of directors. The board members all have rich industry
Management Team experience covering biochemistry materials science business administration finance and other fields.By Gender By Age By Major By Independence
Governance System
1112
AHB continues to improve the management system and has formulated various corporate governance 1 3
systems including the Rules of Procedure for General Meeting of Shareholders the Rules of Procedure 5 3 1
for Board of Directors and the Rules of Procedure for Supervisory Committee to ensure the standardized 28 61
operation of the Company. 1
Male Under 45 years old Business administration Independent director
In order to realize the sustainable development of AHB we continue to improve the corporate governance structure Female 45-55 years old Accounting Finance Non-independent director
and clarify management responsibilities. During the reporting period the General Meeting of Shareholders the Over 55 years old Marketing Applied chemistry
Board of Directors the Supervisory Committee and the Management have clear rights and responsibilities each Polymer materials science
performing its own duties fulfilling its responsibilities checking each other and coordinating with each other. Biochemistry and molecular biology
19 202024 Environmental Social and Governance Report Responsible Governance Strengthen the Foundation of the Enterprise
Enhance Compliance Code Internal control
In accordance with the provisions of the enterprise internal control standard system AHB establishes and improves
Compliance and Risk Control the internal control and effectively implements it evaluates its effectiveness and ensures that the operation and
management are legal and compliant assets are safe and financial reports and related information are true and
complete.AHB has established a comprehensive risk management system formulating regulations such as the Risk and
Opportunity Response Control Procedures Internal and External Environment Analysis Management Procedures The Company strictly adheres to the requirements of laws and regulations such as the Company Law of the People's
and Internal Audit Management Standards to standardize the Company's risk management processes. We Republic of China the Securities Law of the People's Republic of China and the Accounting Law of the People's
manage internal and external risks related to our business activities through internal audits and risk assessments Republic of China as well as relevant rules from the China Securities Regulatory Commission and the Shanghai
implementing appropriate procedures and control measures to ensure effective risk management. On this basis Stock Exchange. Based on the Basic Standards for Enterprise Internal Control and its accompanying guidelines and
the Company also incorporates risk management indicators into individual performance evaluations to ensure the in light of the actual development of the Company we conduct timely evaluations updates and improvements to
effectiveness of risk management efforts. our internal control system. This not only enhances the efficiency of corporate management and decision-making
but also ensures the legality and compliance of business operations and asset security effectively promoting the
The Board and specialized committees are responsible for supervising and managing risks. Among them the Audit implementation of our strategic development plans.Committee is tasked with regularly reviewing internal control policies audit policies and their effectiveness as
well as evaluating the work of external auditing firms. The Legal Audit Department is responsible for identifying The Company's internal control covers the main aspects of business management. This year we focused on
and analyzing compliance risks in operations implementing preventive measures against these risks and swiftly supervising and evaluating high-risk areas such as sales collection processes procurement payment processes
addressing any compliance issues reported internally or externally. project management processes information system management processes and production management
processes. There are no significant deficiencies that could impact the Company's operations and development. The
Risk management procedures units and businesses included in the evaluation scope also have no major omissions; the Company's internal control
system is well-established and reasonable with effective implementation.In order to help us identify assess and manage risks that may adversely affect the Company's sustainable
development goals and operations we have developed a risk management process.Data Privacy and Security
Risk identification Risk assessment Risk response and Information security is one of the key challenges currently faced by the Company. Potential risks include data control breaches cyber attacks and technical vulnerabilities which can lead to the leakage of sensitive information
system failures or data theft causing significant losses for both the Company and our customers. To address these
The Company shall have An assessment is conducted The risk owner is designated challenges in 2024 we focused on optimizing security systems upgrading technology and providing comprehensive
insights and analysis of risks to determine the level of to formulate a work plan security training for all employees thereby enhancing overall information security protection capabilities.related to macro external identified risks. and take effective measures
environmentsegment to respond to the risk in a
industry technologylaw timely manner to reduce System and certification
and other fields and Risk monitoring and the adverse impact.identify potential risks that reporting
may affect the Company's Potential compliance risks are AHB has formulated a series of policies and regulations to ensure information security based on laws regulations
medium- and long-term identified in a timely manner and international standards such as the ISO/IEC27001 Information Security Management System Certification. These
development according to through monitoring and early include but are not limited to the Information Security Management Standards which standardize the information
the expectations or needs warning and reported to the security management framework from both management and technical perspectives laying a solid foundation for
of stakeholders. relevant responsible personnel information security work. In 2024 Changfeng Qinhuangdao and Bayannur bases successfully passed the ISO/
in a timely manner. IEC27001 Information Security Management System Certification audit and in 2025 Chifeng base will undergo an
information security management system certification audit.
21 222024 Environmental Social and Governance Report Responsible Governance Strengthen the Foundation of the Enterprise
Information security management measures Anti-corruption measures
In 2024 AHB introduced an information security inspection mechanism. Regularly
Periodic review
delving into business processes system architecture and network infrastructure using a
combination of automated detection tools and manual verification to accurately identify
Information potential security vulnerabilities configuration discrepancies and abnormal operations. The Audit Committee periodically reviews the implementation of systems and norms and provides policy guidance.security system After forming a list of issues immediate corrective actions are taken followed by ongoing The review is conducted at least quarterly.optimization monitoring and re-inspection to achieve dynamic zeroing of information security risks.Employee commitment and training
AHB has introduced cutting-edge network access control systems to strengthen the cyber
security defense. We optimized firewall rules to intelligently identify and block highly AHB provides all employees with the Rules of Business Conduct for Employees and the Commitment Letter for
concealed advanced persistent threats malware propagation and other complex attacks Cleanliness for Employees requiring all employees to be familiar with the relevant contents. In April 2024 the Human
effectively resisting external network risks. We continuously improved data leakage Resources Center organized all employees to sign the Commitment Letter for Cleanliness for Employees and 100%
Information security prevention technology to effectively block illegal data exfiltration routes further reducing of the employees completed the signing.technology updates the risk of data breaches. We established a bastion host system to effectively prevent
remote login brute force threats. Anti-corruption risk position assessment
AHB requires every new employee to attend an information security training course The Legal Audit Department led the 2024 annual corruption risk position assessment including procurement sales
during their onboarding to enhance their awareness of information security protection. production research and development finance engineering human resources audit high-risk positions with
Information security culture is integrated into daily operations such as incorporating subsequent validation review. The overall corruption risk is controllable and medium-high risk has corresponding
Information information security knowledge dissemination into training materials for projects like SAP. systems and control measures.security knowledge Through four sessions of information security knowledge presentations in different training
training scenarios comprehensive coverage is achieved from employee onboarding to regular Anti-corruption training
business training.In May 2024 AHB conducted a comprehensive integrity culture training and integrity promotion exam for all
employees. The aim was to enhance employees' understanding and recognition of integrity culture and strengthen
Adhere to Business Ethics their ability to resist negative trends at work. This training and examination covered the headquarters Qinhuangdao
Fengrui and four production bases with a total of 1262 participants.Adhering to the core values of "sincerity integrity and unity between knowledge and action" AHB strictly abides Anti-corruption campaign
by business ethics and complies with the laws and regulations of the countries where we operate. We enhance our
corporate ethical awareness and partners 'compliance consciousness through stringent business ethics standards
and internal oversight mechanisms thereby comprehensively strengthening business ethics and anti-corruption AHB conducts anti-corruption poster campaigns and produces integrity
management levels. videos during major holidays accumulated watching of over a thousand
people. We also set up integrity promotional boards and notice
boards at construction sites to comprehensively enhance employees'
Anti-corruption and Anti-bribery awareness of anti-corruption. We plan to expand the scope of integrity promotion establish an accountability mechanism for significant internal
responsibility accidents and create effective deterrence.AHB strictly adheres to laws and regulations such as the Company Law of the People's Republic of China and the
Anti-Unfair Competition Law of the People's Republic of China and has updated documents including the Employee
Business Conduct Rules Complaint and Reporting Management Standards and Integrity Management System
covering all employees and external partners. The Company requires everyone to comply with the laws and regulations
of their respective countries and regions prohibiting any illegal activities. Based on the standards and requirements of Cleanliness notice board of Bayannur
the ISO37001 Anti-Bribery Management System we continuously improve our institutional framework. Base Phase III project
23 242024 Environmental Social and Governance Report Responsible Governance Strengthen the Foundation of the Enterprise
Complaint handling and investigation
Anti-Unfair Competition
AHB advocates for the joint supervision of integrity construction by employees customers suppliers and other
stakeholders. The Company has established a complaint mechanism strictly adhering to the Complaint and Reporting
Management Standards to ensure that complaints are handled legally objectively and independently. The Company AHB strictly adheres to laws and regulations such as the Anti-Unfair Competition Law of the People's Republic of
firmly combats bribery embezzlement collusion disclosure of confidential information and non-compete restrictions. China formulating and updating the Employee Business Conduct Rules. We rigorously prohibit false advertising
Complaints can be submitted through various channels such as phone calls emails and letters. During the investigation monopolistic practices and infringement of trade secrets among other unfair competitive behaviors. We also
process non-investigation team members must not access complaint materials or investigation documents to ensure comply with applicable specific integrity rules in the countries regions industries or relevant organizations where
the confidentiality of informants. All complaints are uniformly received and investigated by the Legal Audit Department. we operate. We require all employees to uphold high standards of integrity treating others sincerely and conducting
Violations will be dealt with according to regulations and cases suspected of criminal activity will be referred to judicial business ethically. Employees must not engage directly or indirectly in encourage support tolerate or otherwise
authorities. For verified complaints we may offer rewards to informants as appropriate. participate in any fraudulent deceptive or other dishonest means of conducting business defrauding money
or personal gain for the purpose of obtaining unjust or improper benefits. Furthermore they must not harm the
◇ ◆ Reporting channels legitimate rights and interests of any company or individual through any illegal means.Tel: Email:
Such acts include but are not limited to:
0551-65388639 ahb@ehuaheng.com
* llegal fraud and other deceptive business practices against AHB and our business
Key performance indicators partners that result in financial or other losses to any person or entity;
Timeliness rate of Business ethics and anti- Litigation cases of corruption
complaint acceptance corruption reporting and embezzlement
100 0 0 *Fraud committed against any other third party.% cases cases
25 262024 Environmental Social and Governance Report Green Operation Promote Low-carbon Transformation
02 Green OperationPromote Low-carbon Transformation
Implement Climate Action 29
Optimize Resource Recycling 39
Protect Ecological Balance 47
27 282024 Environmental Social and Governance Report Green Operation Promote Low-carbon Transformation
Implement Climate Action Environmental Strategic Contents
Goal
· Z ero carbon supply: Establish a data management platform for digital and intelligent
Environmental Management supply chain integrate green procurement into the process of raw material and equipment
procurement and require all supply chain partners to meet ISO26000 standards in the next
step and provide guidance to promote continuous improvement.AHB practices sustainable development throughout the whole value chain and has set the strategic goal of · Z ero carbon factory: By 2024 two bases had been recognized as National Green Factory. In
Triple Zero (Zero carbon emission Zero waste Zero petrochemical resource) as the framework. It is committed to the future we will continue to optimize the underlying biotechnology and process and we are
accelerating and implementing the process of zero carbon production technology circular economy and renewable Zero carbon committed to reducing carbon dioxide emissions during operation.energy related projects and promoting the industry to move towards a recyclable integrated and sustainable future. emission
· 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
Zero carbon emission Zero waste 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
Towards Triple Zero materials such as corn. In the future we will strive to achieve 100% recycling.Circular economy Sustainable water resources
Lean production Recyclable materials · S ustainable water resources: Innovate and develop water-saving technologies such as
Zero carbon supply We are taking action wastewater evaporation condensate reuse reclaimed water reuse and fermentation
Zero carbon factory circulating water reuse implement sustainable water resource management in all related
Zero carbon logistics production bases and the recycling rate of process wastewater reaches more than 90%.Zero waste · Lean production: Since 2023 WCM (world-class manufacturing) has been implemented in
Renewable raw materials Zero petrochemical
resource all production bases to build a world-class smart factory and move towards the goal of zero
Green electricity accidents zero failures zero short stops zero complaints and zero defects.Biomass fuel
· 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
◇ ◆ Environmental protection policy year and recycle and utilize the packaging of each customer's order.Strictly comply with national Prevent and control
and local laws and regulations pollution and hazardous · Renewable raw materials: AHB's products are all made from renewable resources such as
and engage in environmental sources reduce pollutant corn and it has set a grand goal of producing more than 50% of its products from non-grain
management in accordance with discharge and prevent carbon source renewable raw materials.internally formulated procedures. related accidents. · G reen electricity: Green electricity trading has been carried out in Qinhuangdao base and
Bayannur base. Since 2022 rooftop photovoltaic power generation construction projects
Zero
Conduct internal have been gradually launched in each base. In the future solar energy wind energy and other
Reduce energy consumption petrochemical education on environental green power sources will be fully introduced to achieve green electricity supply.conserve resources and resourceprotection to enhance · Biomass fuel: The Qinhuangdao base takes the lead in fully replacing petrochemical fuel with
facilitate resource recovery and employee's awareness of biomass fuel including heating and gas supply. In the future the use of biomass fuel will be
recycling. green office. promoted in all bases.
29 302024 Environmental Social and Governance Report Green Operation Promote Low-carbon Transformation
Environmental management system Environmental emergency management
The Company attaches great importance to environmental management so as to set up the EHS Center (Environmental AHB in accordance with the Measures for the Filing and Administration of Emergency Response Plans for Sudden
Health and Safety Center) to systematically manage the Company's environmental health and safety affairs to ensure Environmental Incidents of Enterprises and Public Institutions (Trial) the Environmental Protection Law of the
that the Company's operations comply with relevant laws and regulations safeguard the health and safety of employees People's Republic of China the Law of the People's Republic of China on Responding to Emergencies and relevant
reduce environmental risks and enhance the Company's sustainable development capabilities and social image. local environmental regulations and in combination with the Company's actual situation has revised and improved
the Emergency Response Plan for Sudden Environmental Incidents. With environmental protection at the core we
AHB continues to deepen the construction of environmental management systems actively responding to the have formulated specific emergency response plans targeting sudden environmental incidents such as hazardous
requirements of the "14th Five-Year Plan for Industrial Green Development" and strictly adhering to national chemical leaks liquid material leaks natural gas leaks especially methanol storage tank leaks.environmental protection laws and regulations. Based on the Company's actual situation a series of internal
management systems have been formulated and improved. In 2024 the EHS Center released a series of management To ensure the effective implementation of emergency plans the Company has established a comprehensive
systems including the EHS Accident and Incident Management Procedure Solid Waste Management System and emergency system setting up an emergency leadership group and office to ensure that personnel can respond
Contractor Management Procedure to comprehensively enhance management standards and control EHS-related risks. quickly and efficiently carry out rescue and post-incident work. In the event of a sudden environmental incident the
Company will immediately entrust professional testing agencies for emergency monitoring to promptly investigate
the cause of the accident. At the same time we will swiftly activate the environmental recovery plan formulate and
Environmental management system implement a recovery strategy to minimize the impact on the environment and ensure the safety of the Company
and surrounding communities.Wastewater Management System
Water Conservation Management System
Energy Management Standard Emergency Command Answering alarm
Center
Measures for the Implementation of Energy and Resource Conservation
Quality/Environmental/Occupational Health and Safety/Food/Feed Safety Management Handbook
Quality/Environment/Occupational Health and Safety/Food Safety/Feed Safety/Halal Assurance Management Procedure Document
Solid Waste Management System
EHS Accident and Incident Management Procedure Emergency Level I events Level II events Level III events Level III
Contractor Management Procedure Commander (Social level) (Enterprise level) (Workshop level) Commander
The Company has implemented the Environmental Factor Identification and Evaluation Management Procedure
identifying evaluating and controlling significant environmental factors from three categories: production processes At the same time we have established close ties with surrounding enterprises to promote the connection between
office operations and auxiliary processes. This reduces the environmental impact and potential risks associated with the enterprise emergency plans and those of surrounding enterprises forming a more perfect joint prevention and
Company's operations. We have systematically advanced the reporting of environmental assessment information data control mechanism.and materials fully implemented measures for waste and wastewater treatment completed the environmental impact
assessment of the base project and timely filed relevant documents including the environmental impact assessment We have implemented a training and drill mechanism for all staff and set up a reward and punishment system to
report approval and environmental protection acceptance. encourage employees to actively participate in emergency management. By simulating various environmental
emergencies we test the feasibility of the plan and the ability of employees to respond which effectively improves
As of the end of the reporting period four production bases of the Company had all passed the ISO14001 Environmental the coordination and response speed of employees in emergency situations.Management System Standard Certification and the total investment in environmental protection reached 48.79 million
RMB in 2024 covering many fields such as process optimization technology and equipment upgrading energy equipment
monitoring system construction transportation cleaning transformation and power structure optimization.
31 322024 Environmental Social and Governance Report Green Operation Promote Low-carbon Transformation
◇ ◆ Governance
The ESG working group at AHB is responsible for identifying climate-related risks and incorporating them into
the board agenda to ensure that the Board and the Management effectively monitor the potential impacts and
opportunities of climate-related risks.◇ ◆ Strategy
We have systematically conducted assessments of risks and opportunities related to climate change and developed
corresponding response measures for potential impacts. Meanwhile we have established a digital management
system for carbon accounting achieving efficient management and precise analysis of carbon data. We are
committed to reducing carbon emissions improving energy efficiency and vigorously promoting the use of clean
energy to mitigate and adapt to the impacts of climate change. Additionally we identified four high carbon emission
Safety and environmental protection emergency drill at Qinhuangdao Base links and formulated a carbon reduction path for the next 3-5 years clarifying directions and goals for the Company's
low-carbon transition. Furthermore we work closely with all stakeholders to jointly address the challenges of climate
change actively develop and promote more environmentally friendly products advocate for resource recycling and
reuse and contribute to achieving sustainable development.In 2024 through continuous improvement of environmental protection and emergency management mechanism
for environmental emergencies the Company successfully achieved the goal of zero environmental accidents
throughout the year.The specific environmental management goals and their achievement status are as follows:
◇ ◆ Risk management
Environmental Management Objectives Indicator Achievement Status in 2024
Potential Financial
Category Level Actions Taken
Major environmental accidents 0 Achieved Impacts
Physical risks
Waste water discharge rate up to standard 100% Achieved
* F requent occurrence of * Develop special inspection system
Exhaust emission rate up to standard 100% Achieved extreme weather events (such and emergency plan for natural
Acute as hurricanes floods etc.) may
* Business and supply
chain disruptions can disasters to deal with unforeseen affect the construction and lead to lower earnings weather conditions and protect Noise emission rate up to standard 100% Achieved operation of the Company's corporate property from the
projects to some extent impact of climate change
Solid waste compliance disposal rate 100% Achieved
* Chronic risks such as global * Extreme weather
warming and rising sea events may increase
* Develop a post-disaster recovery
the safety risk and plan to ensure that operations Chronic levels may cause damage to
equipment and facilities at transportation
can be restored in a short
Climate Change and Greenhouse Gas Emissions the Company's base costs of material
period of time and the impact is
transportation minimized
Transformation risks
Climate change is one of the major challenges facing the world today. AHB deeply understands the multifaceted * Changes in domestic and * T he adoption of new * Implement energy saving
impacts of climate change on the environment society and economy as well as the risks it may pose to business foreign climate change technologies to adjust measures and use energy
operations. To proactively address climate-related risks and align with the national "dual carbon" goals we have Policies and policies may result in daily operations may saving equipment to reduce
implemented a series of measures to reduce carbon emissions. These efforts cover governance strategy risk regulations additional costs for the result in increased carbon emissions in daily
management and objectives providing a comprehensive disclosure of the climate-related risks and opportunities Company to ensure operating costs and operations and adapt to higher
the Company faces. compliance resources required environmental requirements
33 342024 Environmental Social and Governance Report Green Operation Promote Low-carbon Transformation
Potential Financial Indicators: The greenhouse gas emissions generated by the Company's business operations include direct emissions
Category Level Actions Taken
Impacts (Scope 1) from fixed combustion mobile combustion industrial emissions and unorganized emissions indirect
emissions (Scope 2) from purchased electricity and steam. In 2024 we invited external institutions to conduct a
* The market has higher * A dhere to the Company's systematic carbon inventory identified multiple carbon emission sources and newly included the Chifeng base in
* C onsumer preferences requirements for
sustainable development the statistical scope resulting in a significant increase in carbon emissions this year compared to the disclosed data
concept optimize the level
Market and needs are constantly products and the Company may face of production technology in
of the previous year.changing more competitive order to provide better quality products to meet the needs of Indicators Related to GHG Emissions Unit Amount pressure the market and consumers
Scope 1 tCO2e 246405.26
* More resources are * O ptimize the technical update
* The update and iteration needed for the low- of production bases and Scope 2 tCO2e 163932.41
of emerging technologies carbon transition (such vigorously develop existing
Technology may result in the Company as the use of low- green and clean biological
Total GHG emissions tCO2e 410337.67
investing more costs in carbon energy and manufacturing processes to
research and development technology and the replace traditional processes GHG emission intensity tCO2e/million RMB revenue 188.41
and training professionals purchase of low-carbon with high energy consumption
equipment) and high pollution
* Failure by the Company to * Adhere to the Company's
fulfill social responsibilities sustainable development
and take appropriate concept we conduct social With our outstanding practice in green and
Reputation measures to manage the
* Reduced revenue due
to reduced demand for responsibility training within
low-carbon transformation AHB has been
potential impacts of climate the Company and take awarded the title of "leader" in China's
change may affect the goods/services appropriate measures to industrial carbon peak in 2024.evaluation of the Company manage the impact of climate
by various stakeholders change in a timely manner
Opportunities
Case EHS Center conducted special training on "Climate Change and Our Actions"
* Take measures to optimize
* In the medium to long term equipment and processes
improving energy efficiency *R educe operating reduce energy waste In 2024 EHS Center conducted a special training on "Climate Change and Our Action" and released
Energy can lead to direct cost savings costs and achieve cost and promote employee a comprehensive action plan for all staff. This training systematically constructed a low-carbon
sources for operations and contribute reduction and efficiency participation in energy development awareness system for AHB focusing on analyzing the emission reduction path in the field of
to limiting global carbon improvement conservation actions biomanufacturing and advocating for all employees to practice green office promoting the deep integration
emissions *P romote the use of green
electricity of corporate carbon neutrality goals and emission reduction innovation practices. The overall coverage rate
of this training reached 88%.*I nnovation and development * Promote the innovation and
of low-carbon products upgrading of "synthetic biology
and services can improve and animal nutrition"
market competitiveness * Increase revenue by * Accelerate the low-carbon Energy Management
Products and such as customers prefer meeting customer transition and actively
services more environmentally demand for low participate in low-carbon
friendly service providers or emission products and construction AHB's four bases have all obtained services ISO 50001 Energy Management System Certification and have passed third-party products and investors tend * Reduce packaging materials certification energy audits and internal evaluations continuously monitoring and assessing energy consumption
to concentrate on investing in and use biodegradable to ensure the effectiveness of energy management measures. To standardize and optimize energy use AHB has
green enterprise materials established energy management systems such as the Energy Conservation and Resource Utilization Implementation
Management Measures and the Energy Management Standards. Each production base actively implements energy-
saving and emission-reduction measures contributing to a reduction in overall carbon footprint and promoting
environmental sustainability.
35 362024 Environmental Social and Governance Report Green Operation Promote Low-carbon Transformation
AHB has set a green electricity target and carried out green electricity trading in Qinhuangdao base and Bayannur
base. Since 2022 we have gradually started rooftop photovoltaic power generation construction projects in each Case Rooftop photovoltaic power generation projects in Changfeng base and Qinhuangdao base
base. In the future we will fully introduce solar energy wind energy and other green energy to achieve 100% green
electricity supply. We have significantly reduced our reliance on traditional energy sources and minimized pollutant emissions
by implementing rooftop solar photovoltaic power generation water recycling systems waste heat recovery
◆?Energy saving measures in Changfeng base systems and biogas recovery systems while optimizing production processes. Currently the Changfeng
base and Qinhuangdao base have completed photovoltaic installations.·?Improve the separation and concentration process to reduce the use of steam;
·?Optimize equipment such as compressors in the workshop;
·?C ontinue to carry out the variable frequency control optimization project of water pump to further help the
base improve energy efficiency;
·? Implement photovoltaic power generation and biogas boiler projects to provide clean electricity and
efficient utilization of biogas resources for the production base;
·?Replace all diesel forklifts with electric forklifts.◆?Energy saving measures in Chifeng base
Case Digital energy management system of Chifeng base
·? Reasonable layout of the orientation and spacing of each building the design of the building makes full use
of natural ventilation and natural lighting to reduce building energy consumption; In order to achieve the goal of energy saving and consumption reduction Chifeng base has introduced a
·?Reasonable design of power supply system to reduce power loss; digital energy management system to monitor and analyze the energy consumption data of each production
·?S elect motors water pumps transformers fans air compressors and other products and equipment that link in real time so as to provide managers with accurate energy optimization scheme and ensure the
meet the national level I energy efficiency standards. efficient use of energy.We have significantly reduced the impact of energy consumption on the environment through the use of green
◆?Energy saving measures in Bayannur base
electricity while also enhancing the Company's green competitiveness and injecting new momentum into
sustainable development.·? The biogas from the sewage station is burned to provide calorific value for the boiler and coal and steam are
saved through biogas recovery and waste heat recovery projects; In 2024 a series of energy optimization projects such as energy-saving equipment use biogas recovery and
·?Introduce new energy electricity and reduce the use of coal; photovoltaic power generation achieved remarkable results.·?Replace the energy-saving motor.Indicators Related to Energy Utilization Unit Amount
Direct energy
◆?Energy saving measures in Qinhuangdao base
Coal tons 118077.40
3
·? The project of generating power from the residual heat of amino acid production will be launched and we Natural gas m 3234274.24
plan to realize the grid-connected supply of power generation by utilizing the residual heat and pressure of Liquefied petroleum gas tons 1.23
the third phase biomass boiler;
·?A dopt high and low differential circulating fluidized bed boiler combustion technology to improve fuel Diesel liters 135263.55
efficiency and reduce cost;
·? The distributed photovoltaic power generation project is carried out; Gasoline liters 57554.07
·?P romote air compressor technical renovation projects. Biomass fuel GJ 446187.45
37 382024 Environmental Social and Governance Report Green Operation Promote Low-carbon Transformation
Indicators Related to Energy Utilization Unit Amount Water resources management initiatives
Indirect energy
Purchased electricity (non-renewable energy) MWh 259697.57 The water resources of AHB mainly come from municipal water supply and the fresh water consumption in 2024 is
4256.57 million liters. We continuously optimize the comprehensive management of water resources by formulating
Purchased electricity (renewable energy) MWh 163146.90 production process water system management regulations and promoting process transformation effectively
reducing and eliminating microbial and bacterial endotoxin contamination in the water production system ensuring
The usage of green electricity generated and
MWh 208.82 high-quality process water.consumed by the company
Steam GJ 80073.83 In 2024 with the core goal of improving water efficiency we continued to promote a number of water-saving projects
including reclaimed water reuse condensate water reuse fermentation circulating water reuse etc achieving a
Total consolidated energy consumption tce 158884.14 water reuse rate of over 90% in the production process.Consolidated energy intensity tce / million RMB revenue 72.95
◇ ◆ "Four-level water cascade utilization" model
Note: The lower calorific value and equivalent standard coal coefficient of various energy sources in the consolidated
energy consumption calculation formula are derived from China Energy Statistical Yearbook and GB/T 2589-2020
General Rules for Comprehensive Energy Consumption Calculation. Level 1 circulation reuse of fermentation tank cleaning water
Optimize Resource Recycling the primary condensate is recovered to the
Level 2 circulation
boiler system
Water Resources Management Level 3 circulation the process cooling water operates in a
closed loop
We actively promote water conservation and rational use continuously improving the water resource management the evaporated condensate water is reused
system. We have formulated the Water Conservation Management System the Water Conservation Management Level 4 circulation after high temperature membrane treatment
Quota Reward and Punishment System and the Workshop Water Use Management System. We implement total
water use control and refine water use plans breaking down water-saving goals and tasks to each department
and workshop. At the same time we establish a reward and punishment mechanism to encourage employees to
participate in water conservation and management striving to create a water-saving enterprise. Production Base Contents of the Project Handling Capacity
Water resources management objectives Chifeng base New MBR+UF+RO reclaimed water reuse system 6000m3/d
Qinhuangdao base New high density +UF+RO reclaimed water reuse system 1500m3/d
The Company has innovatively developed water-
saving technology such as wastewater evaporation
condensate reuse reclaimed water reuse and Key performance indicators
fermentation circulating water reuse aiming to
implement sustainable water resource management
Fresh water usage Water usage intensity
in all relevant production bases and the recycling
rate of process wastewater reaches more than 90%. 4256.57million litres 1.95million litres/million RMB revenue
39 402024 Environmental Social and Governance Report Green Operation Promote Low-carbon Transformation
◇ ◆ Practical measures
Pollutant Management
Mainly sludge ash and other general industrial waste and household waste. The Company
AHB continues to improve and revise pollutant management standards in accordance with environmental laws adopts strict treatment methods for general waste and centralized treatment of household waste
regulations and actual business conditions. It consistently strengthens control over pollutant emissions during and general industrial solid waste which is transferred and disposed by local environmental
operations and properly handles various emissions and solid wastes generated during production to ensure that protection departments and qualified third parties in accordance with the provisions of the Solid
wastewater exhaust gas solid waste and noise meet emission standards. In 2024 the Company's exhaust gas General Waste Management System.wastewater and solid pollutant emission indicators were all controlled within local pollutant emission standards. Waste
◇ ◆ Pollutant management system
The Company in accordance with the Solid Waste Management Standard and the Hazardous
Chemicals Management System strengthens internal management to prevent harmful waste from
polluting the soil. All hazardous wastes such as used engine oil empty paint cans laboratory
waste liquids and hazardous chemicals are entrusted to qualified third parties for final disposal
and are subject to supervision by local environmental protection authorities. To ensure that
《Wastewater Management System》
Hazardous employees comply with relevant laws regulations and requirements of environmental protection 《Waste Gas Management System》
Waste departments regarding the handling of hazardous waste we provide them with necessary
《Solid Waste Management System》 training.《Hazardous Chemicals Management System》
Key performance indicators
Solid Waste Management Indicators Related to General Waste Unit Amount
Total amount of general waste discharge tons 58993.40
General waste discharge intensity tons/million RMB revenue 27.09
AHB divides waste into general waste and hazardous waste formulating different treatment methods and standards
for each type. This ensures proper classification transfer and disposal of waste to ensure it is treated harmlessly and -Waste transferred from disposal (recycle) tons 5328.70
does not impact the environment. We have deployed a "Comprehensive Lifecycle Management Platform for Solid
Waste" to achieve full lifecycle supervision of all types of solid waste generation storage transfer and disposal. -Waste for direct disposal tons 0
(incineration with energy recovery)
-Waste for direct disposal
◇ ◆ Waste management goals tons 390.14 (incineration without energy recovery)
-Waste for direct disposal (landfill) tons 18719.61
-Waste for direct disposal (other operations) tons 34554.95
Reduce the impact on the natural environment through reasonable
waste disposal material circulation and recycling.
41 422024 Environmental Social and Governance Report Green Operation Promote Low-carbon Transformation
Indicators Related to Hazardous Waste Unit Amount Case Bayannur base sewage station capacity upgrading project
Total amount of hazardous waste discharge tons 56.65
In 2024 the Bayannur base carried out the acceptance of sewage
Hazardous waste discharge intensity tons/million RMB revenue 0.03 station capacity upgrading project realizing the daily sewage
treatment capacity of 4400 m3. The sewage station treatment capacity
-Waste transferred from disposal (recycle) tons 0
has been improved with a single tower treatment capacity of over
-Waste for direct disposal 2200 m3/d which can meet the subsequent sewage treatment needs
tons 0
(incineration with energy recovery) of existing projects and projects under construction.-Waste for direct disposal
tons 56.65
(incineration without energy recovery)
-Waste for direct disposal (landfill) tons 0 Case Qinhuangdao base sewage station upgrading
-Waste for direct disposal (other operations) tons 0 The Qinhuangdao base upgraded the existing sewage station adding
new wastewater treatment facilities such as regulating tank IC reactor
and anaerobic ammonium oxidation reactor and the treatment
Wastewater Management capacity was increased from 2100m3/d to 5100m3/d.AHB shall standardize the treatment of wastewater generated in the production and operation process in accordance
with relevant regulations and ensure that all production bases strictly comply with the laws regulations and
standards of wastewater discharge in the place where they operate.Case Chifeng base's new sewage station
Practical measures
The Chifeng base has newly built two sewage stations with a
?Waste water monitoring capacity of 4000m3/d using IC + anaerobic ammonium oxidation +
A/O treatment process.We have established waste water treatment stations in each production base introduced real-time online monitoring
system to monitor the waste water index and equipped with abnormal alarm system to warn the waste water index
exceeding the standard so as to ensure the compliance of waste water discharge.?Wastewater treatment
Key performance indicators
We continuously optimize wastewater treatment processes through measures such as wastewater monitoring
systems data analysis equipment upgrades and technological improvements. Under the condition that all
indicators of wastewater meet discharge standards we reduce the dosage of chemical agents to prevent secondary
pollution. Indicators Related to Waste Water Discharge Unit Amount
Total wastewater discharge million litres 3623.61
?Source reduction
Waste water discharge intensity million litres / million RMB revenue 1.66
We continuously enhance our water resource management capabilities and increase the proportion of water Chemical oxygen demand (COD) tons 253.00
recycling to reduce wastewater discharge. To protect water resources and minimize the environmental impact of
wastewater discharge we have comprehensively upgraded the water pollution prevention systems at all production Total phosphorus (TP) tons 63.38
bases. Each base has formulated targeted prevention measures based on its own production characteristics and Total nitrogen (TN) tons 8.88
environmental requirements aiming to achieve refined management in source reduction process control and end-
of-pipe treatment ensuring efficient use of water resources and compliant wastewater discharge. Ammonia nitrogen (NH3 -N) tons 4.97
43 442024 Environmental Social and Governance Report Green Operation Promote Low-carbon Transformation
Waste Gas Management Chemical Safety Management
AHB has established and implemented the Chemical Management Standards aiming to promote comprehensive
Practical measures management of chemical procurement storage distribution and use in production sites inspections and tests.We particularly emphasize the usage norms for hazardous chemicals clarifying regulations for procurement daily
Emission monitoring: management maintenance and use to ensure that the Company adheres to the highest safety standards in managing
AHB implements strict control procedures for exhaust gas emissions to ensure that exhaust gas emissions comply hazardous chemicals.with environmental regulations. The Company regularly hires third-party organizations to monitor the concentration We have clarified the responsibilities of each department to more effectively implement chemical management
of atmospheric emissions within the base area verify the compliance of emissions and help the Company timely regulations. The Materials Department is responsible for chemical procurement and storage while the Production
understand the status of exhaust gas emissions so as to adjust and optimize the production process and reduce the Quality and Technology Departments manage the daily use of chemicals. The Safety and Environmental Department
impact on the environment. oversees routine inspections and supervision. Clear division of responsibilities ensures that every step is professionally
regulated thus ensuring the effective management of chemicals.Exhaust gas treatment:
The Company also strengthens the supervision of boiler exhaust gas treatment facilities using advanced Circular Economy
environmental protection technology to minimize the generation and emission of nitrogen oxides sulfur oxides and
particulate matter.AHB constructs a green value chain that spans the entire lifecycle from raw material selection to production and
manufacturing from product application to packaging and recycling. From field straw to final packaging AHB
Case Real-time odor monitoring system of Bayannur base redefines the boundaries of "cycling" with technology giving every resource a new lease on life and making each
consumption a kind act of giving back to the Earth.The Bayannur base has installed a real-time odor monitoring
Raw material end Production end
system outside the factory boundary to monitor the
odor concentration of ammonia and hydrogen sulfide Replace petrochemical dependence with renewable Resource and energy recycling. The Company
wind speed and wind direction in real time. Through resources. Based on using corn as raw material implements water recycling projects such as
continuous monitoring the system can analyze the emission we innovatively adopt agricultural waste such as reclaimed water reuse condensate water reuse and
concentration of pollution sources and warn the odor straw and corn cobs as raw materials to reduce fermentation circulating water reuse to reduce carbon
emission in real time. the occupation of farmland and increase farmers' dioxide emissions. The Company's factories are
income. We develop the conversion path of "biomass equipped with rooftop photovoltaic panels to increase
- amino acid - high value material" to reduce crude oil the proportion of green electricity usage and achieve
consumption and improve resource utilization rate. the production of green products with green energy.Case Qinhuangdao base exhaust gas treatment facility metering system
Application end
The Qinhuangdao base has invested in the construction of a metering system for waste gas treatment
facilities to realize real-time monitoring of 44 monitoring points. The system collects and analyzes the Extension of full lifecycle value. Core products such as alanine and valine are biodegradable and the Company
electricity consumption data of production facilities and pollution prevention and control facilities to applies them in areas like biopesticides and degradable plastics helping customers reduce their product carbon
effectively prevent unauthorized shutdown of pollution prevention and control facilities and ensure long- footprint. In the future we will collaborate with downstream companies to establish a "Biobased Materials
term stable operation of the facilities. Recycling Alliance" recycling and reusing waste materials to promote a closed-loop industry.Consumer end
Key performance indicators The Company adheres to the 5R principles in green packaging promoting efficient resource utilization
environmentally friendly development and customer value enhancement across all fronts. Through optimized
Indicators related to Exhaust Gas Emission Unit Amount management of packaging materials and production processes we reduce packaging at the source. In
collaboration with qualified third-party recycling organizations we maximize the recovery or reuse of packaging
Nitrogen oxides tons 145.66 materials to minimize waste and enhance resource sustainability thereby reducing environmental burdens.We focus on the entire life cycle of products optimizing every stage from design production and packaging to
Sulfur oxides tons 87.81 transportation use and disposal. Considering all aspects comprehensively we ensure that product quality is
Particulate matter tons 10.96 maintained while minimizing the use of packaging materials to the greatest extent possible.
45 462024 Environmental Social and Governance Report Green Operation Promote Low-carbon Transformation
Protect Ecological Balance
Biodiversity Conservation
AHB believes that maintaining genetic diversity species diversity and ecosystem diversity is not only a necessary
condition for ecological balance but also the key to achieve long-term prosperity of enterprises. We regularly
hire third-party organizations to conduct environmental assessment and testing to ensure that the operation of
enterprises is in harmony with the ecosystem and meets the requirements of ecological red line.AHB signed a Cooperation Agreement on Wildlife Protection Public Welfare Activities with Hangjin Rear Banner Green Office
Forestry and Grassland Bureau focusing on the following work in the next three years:
In 2024 AHB regularly organized employees to participate in environmental protection activities promoting
Habitat restoration Species protection Scientific research Public education environmental knowledge and striving to create a low-carbon healthy safe and vibrant work environment for support employees. Through a digital office platform the Company helps corporate clients and employees achieve efficient
We organize employees The "Huaheng We purchase professional We hold "World collaboration promotes online video conferencing significantly reducing carbon emissions from offline meetings
to carry out regular Wildlife Protection observation equipment Wildlife Day" and while also lowering paper consumption providing comprehensive support for employees' low-carbon working
wetland garbage Studio" has been assist in the regional "Bird Week" every practices.cleaning activities in set up to provide biodiversity background year to spread the
Tushenze Wetland Park temporary shelter for survey; concept of protection · The office building uses solar air · Practice the "Clean Plate
every year covering the injured animals; through exhibitions conditioningCampaign"
river and surrounding and popular science ·I ntelligent control of office · Do not offer disposable cutlery
forest areas; manuals. temperaturevoluntarily
Save · Use energy-saving LED lighting ·Use water-saving faucets Energy
resources conservation fixtures
Green Manufacturing
·P rovide shuttle buses to pick up and drop off employees to reduce carbon emissions
As of the end of the reporting period the three production bases under AHB have been certified as green factories from travel
among which Changfeng base and Qinhuangdao base have been certified as the National Green Factory Bayannur
base has been certified as the Autonomous Region Green Factory. Green travelling
47 482024 Environmental Social and Governance Report Craftsmanship Products Create Outstanding Quality
03 Craftsmanship ProductsCreate Outstanding Quality
Ensure Product Safety 51
Prioritize Sustainable Products 57
Promote Research and Innovation 61
49 502024 Environmental Social and Governance Report Craftsmanship Products Create Outstanding Quality
Ensure Product Safety In addition the Company's product quality has also been recognized by other international organizations including CNAS Laboratory Certification ISO 9001 Quality Management System Certification ISO22000 Food Safety
Management System REACH Regulation Certification COSMOS Natural Organic Certification.In 2024 AHB established the Quality Center showcasing our high regard for product quality and safety. As an
innovative leader in synthetic biology we view product quality as a lifeline. We have set up a standardized
management team and a clear responsibility system adhering to the principles of transparency accountability and
continuous improvement. Our goal is to create long-term value for shareholders employees customers and society.Quality Management System
We strictly follow the domestic and foreign quality management laws and standards combined with the Company's
actual situation established a sound quality food and feed safety management system and formulated detailed
management norms to ensure that all regulations and requirements are clear and close to customer needs.Domestic standards International standards
·G B/T 19001-2016 Quality Management System ·B RC Global Standard for Food Safety Version 9.0
·G B/T 24001-2016 Environmental Management ·F AMI-QS European Feed Additives and Pre-
System Requirements and Usage Guide Mixtures Quality System Version 6.0
·G B/T 45001-2020 Occupational Health and ·E FFCI GMP European Cosmetic Ingredients Good
Safety Management System Requirements and Manufacturing Practices
Usage Guide ·K OSHER Certification
·I SO 22000:2018 Food Safety Management ·H AS 23000 Halal Certification (MUI)
System Requirements ·C OSMOS-standard Version 4.0 Natural Organic
Certification
AHB strictly adheres to national and international standards refining and implementing multiple product quality
and safety management systems. These include the Food Safety Management Standards Food and Feed Safety 此为证书 CN16/20051 译本 兹证明安徽华恒生物科技股份有限公司
Protection Plan Raw Material Acceptance Management Standards Nonconforming Product Management Standards 中国安徽省合肥市长丰县双凤开发区凤锦路 32 号 邮政编码 231131审核场所代码8969634
的管理体系已经过审核，并被证明符合下述要求and Product Release Management Standards. This ensures rigorous control at every stage from raw materials to 全球标准食品安全 第 9 版: 2022 年 08 月 达到的等级: B 审核方案 通知
所涉及的活动范围覆盖:
食品用 L-丙氨酸、L-瓜氨酸、L-鸟氨酸盐酸盐、L-肌肽、DL-丙氨酸的生产，主要工艺包括：发酵、脱色、浓缩、结晶、干燥; 食品用 L-精氨酸、L-天门冬氨酸、D-天门冬氨酸、DL-天门冬氨酸、L-谷氨酸、
finished products providing customers with safe and reliable products while continuously optimizing and upgrading β-丙氨酸、甘氨酸、L-缬氨酸、L-苹果酸、DL-苹果酸、肌醇的生产，主要工艺包括：脱色、浓缩、结晶、干燥；食品用 D-泛酸钙的生产，主要工艺包括：钙化反应、结晶、离心、干燥；食品用 L-瓜氨酸与 DL苹果酸 1:1或 2:1的比例复配的生产，以上产品均包装于塑料袋 产品范围外：无the Company's quality management system.产品类别15审核员编码22077审核日期2024年12月05日证书发放日期2025年01月02日换证审核期限2025年12月28日证书有效期止于2026年02月08日此证书将取代其他带有相同证书编号但颁发日期较早的证书。
如果您想直接向 BRCGS反馈有关 BRCGS标准或审核流程的意见，请联系：enquiries@brcgs.com 或使用 BRCGS 报告系统 https://tellusbrcgs.whistleblowernetwork.net。或者访问 https://directory.brcgs.com以验证证书的真实性。
AHB has obtained certifications for quality and food safety management systems. The Company's products have签署
Liz Moran
Business Manager
received BRCGS Certification for food safety EFFCI GMP Certification for cosmetic ingredients KOSHER Certification 此证书归 SGS United Kingdom Ltd Rossmore Business Park Ellesmere Port Cheshire CH65 3EN UK t +44 (0)151 350-6666 - www.sgs.com
for Jewish use HALAL Certification for halal products BRC Certification for European standards and FAMI-QS
Certification for feed. Some of these products have also been awarded the National Industrial Product Production 本文件是真实的电子版证书 仅供客户用于其商业用途。客户可自行打印 视同副本。本文件根据 Terms and Conditions | SGS 中认证服务通用条款的要求颁发。提请注意其中已包含的责任范围 赔偿和司法管辖事项。本文件受 SGS版权保护 任何未经授权的对此文件的内容或外观的变更 伪造或篡改皆属非法。 第 1 页共 1 页Certification High-Tech Product Certificate and National Key New Product Certification.
51 522024 Environmental Social and Governance Report Craftsmanship Products Create Outstanding Quality
Quality Management Process Case Bayannur Base Quality Month 2024
In order to actively respond to the Company's advocacy of "Quality Improvement Month" and "Lean
Production" improve quality management awareness and production process quality control ability
The Company maintains strict control over product quality from raw materials to production inspection every step Bayannur base carried out welding sampling testing forklift competition in September 2024 popularize
is carried out according to standards. Before production equipment operators check the status of the equipment in basic knowledge of quality and production process quality knowledge and enhance the quality subject
accordance with the Equipment and Facilities Control Procedure to ensure it meets production requirements. During consciousness of all employees.production workshop supervisors monitor the entire process strictly inspecting semi-finished and finished products
based on the Product Monitoring and Measurement Control Procedure to ensure compliance. If any non-conforming
products are found we will handle them properly according to the Nonconforming Control Procedure striving to
provide customers with high-quality products.· Establish raw material
· The production supervisor is
acceptance standards to
responsible for monitoring
ensure the quality and safety Highlights of the welding competition Highlights of the sampling competition· Aseptic conditions are and measuring the quality of
of raw materials; required for biological the product and the relevant
· E nsure that the temperature processes; records are kept by the Quality
and duration of storage · The chemical process requires Department;
and transportation of raw the control of the feeding · Samples must be taken from
materials are appropriate; order timing temperature each batch of product in
· A uxiliary materials must and pressure conditions of the accordance with sampling
comply with relevant national reaction. management standards
regulations and are permitted
for testing and retention
for use only after passing
purposes.inspection. Highlights of the testing competition Highlights of the forklift competition
Case "The Brain" knowledge competition in Changfeng Base
Control of Raw and Auxiliary
Process Control Product Inspection
Materials In January 2024 in order to promote the
dissemination and implementation of WCM 5S
quality safety and environmental protection
knowledge in Changfeng base Changfeng Base
Product Quality Training adopted the form of "Substitute competition
for examination" to encourage employees to
improve their enthusiasm through motivation
and competition promote all employees to
In 2024 we continued to strengthen quality management training for personnel such as quality managers physical deeply understand and participate in the factory
and chemical testers and microbiologists maintaining an average of over 22 training hours per person. The content construction and help Changfeng base to move
covers the use of professional equipment product testing and foreign matter management. Strict assessments are forward towards the goal of becoming a world-class
included in the training and the results are recorded in the Training Implementation and Effect Evaluation Record. factory.This ensures that every member can master key skills proficiently safeguarding product quality.
53 542024 Environmental Social and Governance Report Craftsmanship Products Create Outstanding Quality
Case Qinhuangdao base improvement team report review Department Responsible Matters
At the end of May 2024 the Qinhuangdao base successfully held the closing audit meeting of the
improvement team. The fault reduction team effectively reduced the fault time while increasing the output Quality Center Supervise the implementation of allergen control on production site and
and effectively improved the first-time qualification rate of β -alanine products and both passed the audit. develop a corresponding allergen list.Materials Department Responsible for the management audit and evaluation of allergens from raw
material suppliers.Production Department Responsible for the prevention and control of cross contact of allergens in
production areas.Business Department Responsible for sales tracking and product recall of allergenic products.Correctly evaluate the implementation effect of allergen management based
Food Safety Team on the Company's product allergen content test report customer complaints or
feedback from relevant departments and internal and external information.Quality Risk Management
In 2024 we further refined our quality risk management system. Starting from the product design phase we Product Recall Management
systematically identify and assess quality health and safety risks develop tiered response measures to ensure risks
are reduced to acceptable levels and disclose them transparently through the Risk Management Report. At the same
time we enhance comprehensive communication with customers accurately identify market demands and risks
promote customized R&D and ensure providing higher-quality services and products to our clients. AHB always prioritizes customer health and safety strictly adhering to the Product Recall Management Standards
to ensure that recall procedures comply with regulations and actual needs. If a product batch is found to be
Direct quality risk substandard or poses a safety hazard we will promptly initiate the recall process working together to fully control
the relevant products and handle them according to the Nonconforming Product Control Procedures. Even when
no actual recall is needed we conduct annual simulation exercises to verify the timeliness of our procedures. Since
·P roduct quality problems resulting in the risk of return scrap rework and so on 2024 the Company has not experienced any product recalls or customer health and safety incidents.Indirect quality risk ◇ ◆ Division of responsibilities for product recall management
· In the process of using the product if it damages other property rights or personal rights of customers it
shall bear civil compensation liability
General Manager Marketing Center HACCP Team
·P roblems caused by improper logistics storage conditions and broken packages during product
transportation
·E xecute customer recall ·Evaluate product quality
· Approve withdrawal/recall
engagement procedures ·A nalyze and correct the
At the same time we continue to strengthen the management of allergens realize the whole process control through procedures
·A rranging transportation of causes of non - conformity
the Allergen Control and Management Procedure eliminate cross-infection and fully ensure the safety of products ·Provide necessary resources
recalled products · Establish preventive measures
and the health of consumers and employees. At the same time we clarify the division of responsibilities to ensure
the effective implementation of management measures.
55 562024 Environmental Social and Governance Report Craftsmanship Products Create Outstanding Quality
Key performance indicators
Genome Genetic element Circuit
Biological Chassis Carbohydrates
network cell Plant nutrition
First-time qualification rate of the product Food safety incidents Separation
Biomass and
99.6 purification% 0cases
Fermentation Animal nutrition
Biodesign Gene Cell Cell editing culture screening
Feedback
Product recall/retract Effective rate of critical control point (CCP)
Project development
0 Industrialization
Bio-based
pieces monitoring100% products Intermediate
Rational Directed Machine Expression
design evolution learning system Enzyme
catalysis Separation Human nutrition
and & flavor
Responsible Marketing Enzyme Enzyme Substrate purificationEnzyme engineering expression screening
Feedback Personal care
The Company has established the Product Labeling and Traceability Management Standards which clearly defines
the types of product labels usage methods and management responsibilities. At each production stage we Fermentation method
meticulously record product and service information including the product name production date batch number
quantity and operators to enable traceability of product quality when necessary.L-alanine: The anaerobic biological manufacturing technology of L-alanine by AHB has overturned the traditional
In addition we manage the labeling of our products and services in detail to ensure that the labels are clear aerobic fermentation production mode of amino acids. Compared with the traditional petroleum route that relies on
consistent and comply with relevant regulations and standards. The product name and number are printed on all non-renewable petrochemical raw materials this technology not only reduces the consumption of fossil resources
finished packaging to ensure that each bag is numbered for management. The packaging also includes instructions but also achieves zero carbon dioxide emission in the anaerobic fermentation process significantly reducing carbon
for use inspection stamps and halal certification marks. emissions and environmental pollution.We conduct regular QA (Quality Assurance) inspection discuss non-conformities determine temporary corrective
actions and preventive control measures carry out rolling rectification follow-up and track the effectiveness of the Compared to traditional
completion of measures. petroleum based route
Benzene Fumaric Aspartic
The world's first Traditional acid acid
Prioritize Sustainable Products amino acid produced way Petroleum
by anaerobic biological L - alanine
manufacturing AHB Glucose
Wastewater reduced by
Clean Technology Opportunities 90 Extraction and % Cell factory purification
Energy consumption
reduced by
AHB Research Institute focuses on the fermentation process and enzyme process and gradually promotes the 40%
Company's product layout in the field of synthetic biology forming a cluster of core technologies related to synthetic
biology technology. Production cost reduced by
50% Raw material Intelligent control of the Products
fermentation process
57 582024 Environmental Social and Governance Report Craftsmanship Products Create Outstanding Quality
L-valine: Compared to aerobic fermentation AHB's anaerobic fermentation technology for L-valine achieves lower Enzymatic method
energy consumption lower costs and higher conversion rates significantly enhancing production efficiency and
economic benefits. At the same time this technology reduces carbon dioxide emissions minimizes environmental α-Arbutin:The enzymatic production process of α-Arbutin by AHB effectively addresses the common issues in
impact promotes green manufacturing and sustainable development bringing dual value of environmental traditional processes such as low enzyme activity high extraction and purification costs and high impurity content
protection and economic benefits to the industry and society. in the product. This process offers significant technological advantages. Enzymatic production can achieve stable
supply with greater capacity making it more efficient and safer.Compared with the aerobic
fermentation route Product advantages α-arbutin: A highly effective and safe whitening active compound
It has passedthe VEGAN KOSHER and HALAL certifications
The conversion rate Essential amino acids The content is strictly
of sugar and acid One of the eight essential amino acids for controlled above 99.9%
further increased the human body.Hydroquinone can meet the
Energy Promote growth undetected standard
consumption Promote normal growth of the body Extraction and Cell factory
significantly repair tissues and regulate blood sugar. Technological purification
reduced breakthroughs make it less
Nutritional supplement likely to form lumps
The production Enhance energy increase endurance and
Large production capacity
cost significantly help muscle tissue recover and repair.and stable supply Raw material Intelligent control of the Products
optimized fermentation process
In the future we will continue to optimize production paths in the following areas to reduce environmental pollution
13-Pentanediol: Traditional chemical methods for synthesizing 13-pentanediol (PDO) mainly include the acrolein improve resource efficiency and reduce carbon emissions:
method and the ethylene oxide method. The former is complex and involves highly toxic flammable and explosive · Continue to optimize the biogas recovery device of sewage station replace the traditional coal-
materials while the latter requires high-temperature and high-pressure conditions making it technically challenging Clean fuel fired boiler with biogas boiler and effectively reduce greenhouse gas emissions
and costly. In contrast AHB has utilized synthetic biology to construct a microbial cell factory using glucose as substitution · Optimize the pipeline design to realize the full recycling of waste heat and achieve energy saving
the raw material. The fermentation process is mild safe and controllable with a simple and efficient procedure. and emission reduction
Additionally the raw material price is stable further controlling production costs.·O ptimize the material temperature control process use preheated materials to reduce steam use
Natural palm and realize energy savingCompared with other fruit/Natural Ag Catalyst Energy · Optimize the air-condition temperature and humidity control in the production workshop
routes coconut optimization
Ferment Catalyst eliminate backward equipment and improve energy efficiencyHydrolyze · We will increase the proportion of electricity generated from biomass and photovoltaic energy
Renewable Glycerinum
resources Process ·C ontinuous chromatography process is adopted to reduce energy consumption
Glycerol fermentation Ethylene oxide carbonylation Acrolein hydration optimization · High and low differential speed circulating fluidized bed boiler combustion technology is adoptedStable raw method method hydrogenation
material price
Extraction and method ·T he wastewater treatment plant is further treated to realize the recycling of water resources to the
Controllable Cell factory purification production system and reduce the cost of production water
production
Water · Optimize the production process adopt the "Zero chemicals" scheme and use circulating water cost
recycling as the fermentation formula water which greatly reduces the frequency of shutdown cleaning of
Natural organic the circulating water station and the amount of wastewater discharge
certification ·T he condensate produced by the evaporator is recovered by the recovery pump and used in other
Raw material Intelligent control of the Products available processes to achieve water saving
fermentation process
59 602024 Environmental Social and Governance Report Craftsmanship Products Create Outstanding Quality
Product Carbon Footprint R&D Cooperation
In 2024 AHB adhered to the scientific carbon reduction path of "Exploring the bottom Identifying potential We rely on the Hefei Institute of Synthetic Biology Innovation and have established long-term cooperative
Implementing emission reductions and Green transformation" continuously advancing the carbon footprint relationships with research institutions such as Tianjin Institute of Industrial Biotechnology Chinese Academy
calculation and assessment of core products conducting carbon footprint calculations for key products such as of Sciences Institute of Microbiology Chinese Academy of Sciences Beijing University of Chemical Technology
L-valine and β-alanine scientifically quantifying their lifecycle carbon impacts to precisely align with the coordinates and Zhejiang University of Technology. Through these collaborations we gather outstanding talents in the field
of green development. At the same time the Company will continue this strategic mindset gradually promoting the of synthetic biology and related downstream applications forming an open R&D ecosystem. This promotes
construction of a comprehensive product carbon footprint verification system deepening low-carbon management interdisciplinary cooperation and knowledge sharing driving innovative development.practices and continuously strengthening the environmental governance foundation for sustainable development
under the ESG framework. We value close communication with the industry and maintain close collaboration with corporate partners to better
enhance our understanding of market demands and industry trends integrating them into our research and product
Case AHB won the BASF Product Carbon Footprint Pioneer Award development processes. We are committed to pursuing technological and product innovation developing promising
biotech products and solutions and making positive contributions to human health and environmental protection.AHB was invited by BASF to attend the China Supplier Conference
on the theme of "Sustainable Procurement" and won the Product
Carbon Footprint Pioneer Award which recognizes AHB's
outstanding contribution to product carbon footprint management
and sustainable development.Promote Research and Innovation Institute cooperation: Continuous connection with well- University-enterprise cooperation: Accelerate the
known institutes at home and abroad such as Tianjin transformation of scientific and technological
R&D System Institute of Industrial Biotechnology Chinese Academy achievements and personnel training with well-of Sciences Institute of Microbiology Chinese Academy known universities such as building an academician
of Sciences to complete the development of a number workstation with Academician Zheng Yuguo of Zhejiang
AHB-Research Institute focuses on market demand grounded in independent research and open innovation of projects realizing a great leap from science and University of Technology and building "AHB Excellence
developing cutting-edge synthetic biology technologies. We have established several high-level research platforms technology to economic benefits and social value. Class" with Hefei University.including independent R&D platform central research institute strategic investment cooperation joint laboratories Enterprise cooperation: Jointly promote the innovation Customer cooperation: Create multiple innovative
with major institutes and universities and academician postdoctoral workstations. The institute's R&D team provides and improvement of each link of synthetic biology projects for core customers and continue to promote
comprehensive support in areas such as strain construction technology scaling and innovative management laying industry chain with excellent enterprises in the industry. product innovation industrial upgrading and
a solid foundation for product innovation and sustainable development. cooperation upgrading.In 2024 AHB built a complete synthetic biological industry chain from design to industrialization and the research Case Hefei Synthetic Biology Innovation Research Institute was established
institute and four bases jointly built a global innovation ecology.In March 2024 the Hefei Synthetic Biology Innovation Research Institute
The Company places great emphasis on the standardization and systematization of R&D management. We have was established marking the official launch of the innovative consortium
issued documents such as the Management Standards for Technological Innovation Achievements of the Research jointly built by Changfeng County Government AHB and the team led
Institute Project Management Standards R&D Control Management Standards and Patent Incentive Measures. by Academician Zheng Yuguo. The project through platform-based
These documents comprehensively cover the entire process from project research pilot-scale planning and management and corporate operations aims to integrate resources
experimentation to intermediate-scale planning and experimentation and project summary. Through standardized and promote the application and dissemination of synthetic biology
R&D processes and systematic management the Company has effectively improved R&D efficiency and capability technology in fields such as medicine chemicals and food exploring new
in converting research results into practical applications. At the same time we encourage innovation laying a solid models of cooperation among government universities and enterprises.technical foundation for sustainable development.
61 622024 Environmental Social and Governance Report Craftsmanship Products Create Outstanding Quality
Case Established a joint Laboratory for Innovation of Sustainable Personal Care Case Established R&D Institute of Plant Nutrition Application with BASF
Raw Materials in cooperation with Shanghai Institute of Technology
In May 2024 AHB and BASF's Agricultural Solutions Business Unit signed
In July 2024 AHB and Shanghai Institute of Technology a strategic cooperation agreement. Leveraging our strengths in synthetic
established a joint Laboratory for Innovation of Sustainable biology and agricultural innovation we will jointly develop plant nutrition
Personal Care Raw Material. Leveraging both strengths products to promote sustainable agricultural development in China. We
in cosmetic research and synthetic biology we aimed to will establish R&D Institute of Plant Nutrition Application focusing on bio-
jointly promote the innovation of Chinese-characteristic stimulants to enhance crop yield quality and stress resistance. Through
ingredients. The laboratory will serve as a platform for deep digital agriculture applications we aim to provide growers with sustainable
integration of industry academia and research focusing value-added solutions supporting the green transformation of agriculture.on technological innovation product evaluation and talent
cultivation. It will support the continuous advancement of
personal care ingredient development formula design and Technological Innovation
safety efficacy assessment.In 2024 AHB achieved another breakthrough in synthetic biology not only solidifying our leading position in L-alanine
technology but also successfully expanding the research and application of new technologies such as L-malic acid
Case Establish a joint Laboratory for Bio-based Chemical Fiber with Donghua University succinic acid and 13-propanediol. Through genome design metabolic pathway optimization and cell factory
construction we have realized the green production of diverse chemical products significantly reducing carbon
In July 2024 AHB and Donghua University jointly established emissions. These technologies have not only driven innovation in industrial strains but also provided sustainable
the Joint Laboratory for Bio-based Chemical Fibers solutions for food pharmaceuticals and materials sectors contributing to global green transformation. In the future
aiming to advance cutting-edge research in the PDO-PTT we will continue to increase R&D investment maintain technological leadership and continuously drive industry
industrial chain and bio-based fiber technology thereby progress through innovation.facilitating the green transformation of the textile industry.Both sides will collaborate on developing new materials AHB AH Synova 13-propanediol won the New Leaf Award-Most Commercial Value Award at the
such as 13-propanediol (PDO) and bio-based monomers International Bio-based Industry Conference
connecting the upstream and downstream segments of the
slicing spinning dyeing finishing garment production In May 2024 AHB AH Synova 13-propanediol won the New Leaf
and end-user markets. This initiative seeks to build a Award-Most Commercial Value Award for international leading
comprehensive strategic alliance from raw materials to technology level green and low-carbon properties and broad
polymers fabrics and brand applications accelerating the application prospects.marketization of the PDO-PTT industrial chain.AHB Bioblanca 13-propanediol won the AHB BIOBLANCAPDO won the INPD
Case Ringier Technology Award International Innovation Raw Material AwardLed the establishment of Bio-based Polyester Textile Industry Alliance
In July 2024 AHB won the 2024 Ringier Technology In October 2024 AHB
In September 2024 AHB led the establishment of the Innovation Award with high performance and BIOBLANCAPDO won
world's first Bio-based Polyester Textile Industry Alliance natural source of Bioblanca13-propanediol from the INPD International
(hereinafter referred to as the "Alliance"). The aim is to many participating raw materials. Innovative Raw
break the overseas monopoly on 13-PDO and promote the Material Award at the
domestication of the PDO-PTT industrial chain. Through 2024 International
an innovative consortium of industry academia research Cosmetics Innovation
and application the Alliance accelerates the domestic Pia Competition.substitution of core materials supporting the high-quality
development of the bio-based polyester textile industry.
63 642024 Environmental Social and Governance Report Craftsmanship Products Create Outstanding Quality
AHB BIOBLANCA13-PDO won the "China Good Raw Material Award" Intellectual Property Protection
In December 2024 AHB BIOBLANCA13-PDO
stood out among more than 200 participating raw
materials and won the "China Good Raw Material AHB continuously strengthens intellectual property management fully protecting the
Award" in the "Amazing Chinese Raw Materials" Company's innovative achievements through the Intellectual Property Center and safeguarding
selection contest of Chunlei Agency. legitimate rights and interests. The Intellectual Property Center collaborates closely with
the Research Institute production bases and sales departments to conduct training on
patent layout and infringement risk identification. It has also established an intellectual
property learning system to provide guidance on patent application trademark registration
and relevant laws and regulations enhancing the employees' overall intellectual property
awareness and ensuring compliant operations. The Company has obtained the GB/T 29490-
L-methionine project successfully passed the scientific and technological achievement appraisal of 2023 Intellectual Property Compliance Management System Certification.China National Light Industry Council
Class Intellectual Property Management Initiatives
In July 2024 the biotechnological L-methionine
project implemented by Hengyu Bio a joint
venture subsidiary of AHB successfully passed the · Set KPIs actively apply for patents analyze and apply patent informationPatent application and
scientific and technological achievement appraisal · Carry out trademark related work to serve market demand and ensure the trademark use
organized by the China National Light Industry effective application of trademarks
Council. L-methionine an essential amino acid for
both humans and animals is widely used in the · Focus on planning technology routes in the research and development
pharmaceutical food and feed industries. This process and take intellectual property protection measures
technology not only reduces production costs but ·A sk relevant personnel to sign a confidentiality agreement
also aligns with green manufacturing principles. Technical route · Technical retrieval and FTO analysis are conducted to assess the risk and
protection probability of infringement to ensure that subsequent products do not
infringe the intellectual property rights of others
·P romote relevant analysis before and after to reduce intellectual property
Science and Technology Ethics risks
· Conduct the whole process of intellectual property risk planning to avoid
In the process of technology research and application AHB strictly follows the principles of science and technology potential risks
ethics and effectively controls the risks of science and technology ethics through ethical review and system Risk control · Purchase patents to hedge and third-party institutions to analyze
guarantee so as to ensure that the application of technology will not have a negative impact on society environment infringement and other methods to control risk
and human beings.·I n collaboration with universities and academic professors focus on the risk
Our technical approach is clearly defined with the core principles of "Replacing non-renewable petrochemical of duplication of research and development and work with partners to control
resources with renewable biological resources" and "Replacing energy-and-pollution-intensive petrochemical Control of this risk
processes with green and clean biological manufacturing techniques." Guided by low-carbon goals we aim to reduce cooperative R&D · In the process of collaborative research and development pay attention
environmental risks associated with technology application at the source. During experiments we continuously to whether there are published articles to balance the need for intellectual
strengthen operational standards restrict the acquisition and use of hazardous gene sequences ensuring that property protection and collaborative research
technologies such as gene synthesis and gene editing are not misused for other purposes. Additionally we establish
the AHB Business Partner Code of Conduct to require partners to adhere to ethical standards and set up an audit
committee to regularly review compliance. During the reporting period the Company did not identify any significant · Patent layout is carried out throughout the whole operation chain covering
scientific and ethical risks nor were there any incidents of regulatory penalties due to violations of scientific and Patent layout the whole process from research and development of strains to product
ethical principles. production
65 662024 Environmental Social and Governance Report Humanistic Care Create a Better Life
04 Humanistic CareCreate a Better Life
Gather Enterprising Talents 69
Foster Collaborative Success with Partners 80
Contribute to Social Welfare 85
67 682024 Environmental Social and Governance Report Humanistic Care Create a Better Life
Gather Enterprising Talents ◇ ◆ Practical measures
Talent is the most valuable resource of AHB. We adhere to people-oriented learn from the experience and Internal recommendations: Encourage internal employees to actively
mechanism of world-class enterprises and combine with the development situation of AHB to formulate talent recommend candidates based on job recruitment needs broaden
introduction and training mechanism. recruitment channels and reward successful recommendations
Internal with varying amounts of compensation according to the rank of the
recruitment hired individual. The principle of "relative avoidance" is also applied
Protection of Employees' Rights and Interests meaning that recommenders cannot participate in interviews and
department heads must not have a direct hierarchical relationship with
the recommended individuals ensuring fair and just hiring practices.In terms of employee rights and interests protection AHB always adheres to the concept of legal employment
respect for human rights and labor rights and advocate diversification inclusiveness and equality which is
integrated into every link of enterprise management.Social recruitment: Introduce senior talents through diversified forms
We firmly believe that only by protecting the legitimate rights and interests of employees can we stimulate their such as online recruitment information job fairs and headhunting
creativity and enthusiasm achieving common development between the Company and our employees. To this recommendations.end we have established a comprehensive employee rights protection system and actively foster a diversified and External
inclusive work environment. We respect individual differences among employees adhere to reasonable employment Campus recruitment: Special campus recruitment is carried out recruitment
practices and provide equal opportunities for development to every employee. We truly practice the principle of from August each year to attract outstanding graduates from all
appointing people based on talent promoting those who are competent utilizing everyone's abilities to the fullest kinds of majors to join the Company and inject new strength into the
and ensuring that talents are fully utilized. sustainable development of the Company.Employment in accordance with the law
Awards
AHB strictly adheres to the Labor Law of the People's Republic of China signing labor contracts with all employees
and implementing a full-staff contractual management system. We firmly oppose employment discrimination
AHB won the title of 2024 Anhui Annual Extraordinary
prohibit the hiring of child workers and ensure that all employees enjoy equal rights in recruitment treatment and
Employer for outstanding performance in talent training
promotion free from factors such as ethnicity race nationality gender religion age sexual orientation political
talent strategic planning and employer brand building.affiliation or marital status. The Company upholds the principle of setting positions based on tasks and selecting
people according to these positions providing employees with equal and fair opportunities for job rotation and
promotion.◇ ◆ Institutional system
Reasonable employment
*E ntry Departure and Labor Contract *Layoff Management Norms
Signing Norms *P rofessional Qualification Certification
*Working Hours Management Norms Management Norms AHB adheres to reasonable employment practices. Approved and registered by relevant government departments
*Prohibition of Child Labor *Salary Management Norms the Company implements standard working hours system comprehensive working hours system and flexible
*R ecruitment Management Norms *W omen's Rights and Labor Protection working hours system eliminating employee fatigue and overwork. Office staff operate under the standard working
*Anti-discrimination Policy Management Norms hours system. Due to production needs departments such as production engineering safety and quality adopt
the comprehensive working hours system while marketing procurement and senior management use the flexible
working hours system.
69 702024 Environmental Social and Governance Report Humanistic Care Create a Better Life
Diversity inclusion and equality Employee welfare
In the process of promoting sustainable corporate development we always regard diversification as our core
strategy. The Company actively builds an equal and inclusive work environment with a particular focus on In terms of employee benefits AHB has always been at the forefront of the industry. In addition to the statutory
supporting women's career development eliminating age discrimination and providing fair growth opportunities holidays prescribed by the state we also offer a variety of paid leave options including annual leave marriage leave
for employees from different backgrounds. As of the end of the reporting period the total number of Company sick leave family visitation leave childcare leave bereavement leave and personal leave. We pay special attention
employees reached 2191 with 1413 new hires during the year. By fostering a diverse and integrated team we are to the rights of female employees extending the statutory maternity leave by an additional 60 days and providing
committed to stimulating innovation and driving continuous organizational progress. male employees with 30 days of paternity care leave supporting them through important moments in family life.Furthermore our Employee Handbook clearly outlines the childcare leave policy granting male employees the
Gender structure of employees Gender structure of new employees same childcare benefits as female employees. Before their child turns six years old employees can enjoy 10 days
of childcare leave each year helping them better balance work and family life.Meanwhile to support employees
working abroad we offer additional family visit leave.
28% 26% These measures not only enhance employees' happiness and sense of belonging but also boost their loyalty and
productivity. In 2024 a total of 99 employees were entitled to parental leave with 72 choosing to take it accounting
for 73%. The re-employment rate for those who took leave was 100% fully demonstrating the employees' trust and
72% 74% recognition of the Company.
The Company handles social security and housing provident fund for employees in accordance with national
regulations and provides free working meals health check-ups accommodation holiday and birthday benefits high
Male Female Male Female temperature subsidies afternoon tea and other benefits. The Company is equipped with a gym and rest area to relax
the body and mind after work.Age structure of employees Ethnic structure of employees
3%
8%
42%
55%
92%
Gym Rest area Staff dormitory
Under 30 31 to 49 Above 50 Han Other ethnic
years old years old years old nationality groups
Human and labour rights management
The Company resolutely eliminates age discrimination. While introducing young talents the Company does not
set a threshold of 30+ years old. By the end of 2024 the proportion of employees over 30 years old in the Company
reached 58%.In 2024 AHB strictly adhered to the relevant provisions of the Labor Law of the People's Republic of China further
AHB insists on setting up positions based on specific needs and selecting people for these positions effectively refining internal management systems such as the Entry Departure and Labor Contract Signing Norms Working
promoting employment in the region. We strictly adhere to regulations such as the Anti-Discrimination Policy and the Hours Management Norms Training Management Norms Prohibition of Child Labor Recruitment Management
Management Standards for Women's Rights and Labor Protection firmly eliminating discrimination and unfairness Norms Anti-discrimination Policy Layoff Management Norms Professional Qualification Certification Management
of any kind. We fully respect employees' ethnic customs and actively foster a work environment that is "diverse Norms Salary Management Norms Women's Rights and Labor Protection Management Norms. The Company
equal and inclusive." As of the end of the reporting period among full-time employees there were 170 employees ensured that all these systems were rigorously enforced to fully protect the legitimate rights and interests of
from ethnic minorities accounting for 8% involving three ethnic groups: Manchu Mongolian and Hui nationality. employees.
71 722024 Environmental Social and Governance Report Humanistic Care Create a Better Life
Implementation measures ◇ ◆ Two-way communication mechanism for democratic dialogue:
The management seeks for opinions of Employees truthfully report issues and
We firmly reject any form of forced labor and prohibit the collection of deposits employees listens to public opinion and provide suggestions to the management
No forced labor or the seizure of identity documents when employees enter the Company. understands the situation covering: covering:
* In-depth solicitation of opinions and * Opinions and suggestions on the work of the
AHB respects the human rights of all employees and other stakeholders and suggestions from cadres and employees on CompanyNo workplace
discrimination or does not tolerate any form of discrimination harassment or retaliation in the important decisionsimportant matters and * Views and opinions on the personal working
harassment workplace. In recruitment compensation training promotion termination sensitive issues style working mode working method and
and retirement it is strictly prohibited to discriminate based on ethnicity * Report on key work and hot issues concerned working attitude of leaders and colleagues
social status language religious beliefs physical disability gender sexual by attitude of leaders and colleagues * Important issues
orientation union membership political affiliation or age. cadres and employees * P ractical difficulties in work and life that need
* Communication on major work arrangements to be resolved with assistance
of superiors in a timely manner and * Report on violations of law and discipline
Human rights due In response to the potential human rights impact of business operations we conduction of key discussions on key
diligence have added a labor and human rights dimension to our Supplier Due Diligence positions key personnelkey issues and key
Form to avoid significant risks in the supply chain. During the reporting period matters
we did not identify any operational sites or suppliers with significant risk of
forced or compulsory labor. ◇ ◆ Mechanism for handling employee complaints and comments:
* F or the complaints and comments that meet the policy requirements and
Security services for AHB are provided by third parties and 100% of security 01 conditions and can be resolved a clear reply and resolution deadline will be Security and human
rights training personnel have received formal training in human rights policies or specific
given on the spot.procedures and security applications. Mechanism
for handling * I n the case that the policies and regulations are not clear or that there
employee 02 are related regulations but the complaint and comment cannot be solved immediately a description of the situation and the deadline for reply shall
complaints and be provided.Key performance indicators comments
03
In 2024 the Company's labor contract signing rate is 100% and the coverage rate of social insurance * In case of a violation of policies and regulations it shall be explained clearly
face to face.payable is 100% .Training and Talent Development
Democratic management We firmly believe that talent is the core driving force for corporate development. To help every employee achieve
their career aspirations we have established a comprehensive training system a scientific performance evaluation
In 2024 the AHB Trade Union Committee based on the AHB Union Grassroots Organization Election Work mechanism and clear career advancement pathways dedicated to providing all-round growth support for our
Regulations completed the election and appointment of union members and the union chairman. At the same time employees. We continuously optimize our training content aligning with the actual needs and development goals of
the Company revised and implemented the AHB Enterprise Collective Negotiation System the AHB Democratic our employees offering diverse learning opportunities to enhance professional skills and overall competence. At the
Management System and the Employee Representative and Collective Negotiation Dialogue Mechanism Document. same time through fair and transparent performance evaluations we guide employees in their efforts and closely
These measures fully promoted democratic spirit and respected employee opinions. Through active communication link evaluation results with promotions and salary adjustments ensuring that every employee's efforts are rewarded
and dialogue the union effectively addressed employees' practical issues and reasonable demands further accordingly. Additionally we have designed smooth career development paths for our employees providing suitable
promoting the harmony and sustainable development of the Company. growth directions whether they focus on specialized expertise or management advancement.
73 742024 Environmental Social and Governance Report Humanistic Care Create a Better Life
Staff training AHB Talent Development Center
In terms of staff training the Company actively builds a training management system broadens the development
path and formulates the Training Management Standards. Through internal training and external training the Cutting-edge research and Advanced knowledge Cultivation of various exploration in the synthetic theory consolidation and kinds of excellent talents in
Company improves the skills and professional knowledge level of employees optimizes the growth and development biology industry refinement in the synthetic synthetic biology industry
system of employees and constantly empowers the Company's talent resource reserve. biology industry
In 2024 the Company provided training for a total of 2152 employees the proportion of trained employees among
Advanced technology Authoritative knowledge Excellent talents
all the staff reached 98%. The total duration of training reached 83222 hours and the average duration of training
per employee reached 39 hours. The Company regularly conducts performance ◇ ◆ By gender ◇ ◆ By age
and career development assessment for 4%
◇ ◆ By gender employees to motivate them to give full play
to their potential improve work efficiency and 28%
Total duration of training Total number of trained employees Per capita training hours quality promote the cooperation and efficiency 41%
of the whole team and provide better training 72% 55%
23% 60 and development opportunities for employees. 27% 50 41
40 32 During the reporting period a total of 2033 staff Male Female Under 30 31 to 49
77% 73% 30 received performance and career development years old years old20 assessment the specific data is as follows: Above 50
10
0 years old
Male Female Male Female Male Female
Career development
◇ ◆ By position
In terms of career development at AHB we offer a diversified career path for our employees including the "Stellar
Total duration of training Total number of trained employees Per capita training hours Plan" program for new graduates and a dual-track talent development system covering all staff. We are committed
to building clear career ladders for every employee helping them realize their self-worth in professional fields or
12% 7% management positions.
13%
6%8066
60 The Stellar Plan: A seamless transition from campus to the workplace40
40
82% 80% 20 17 To meet the Company's mid-to-long-term strategic needs for talent and to
0 build a high-quality team through talent ladder construction AHB has launched
Management Intermediate Management Intermediate Junior Intermediate Management the "Stellar Plan" campus recruitment and training plan. This plan integrates
team professionals team professionals professionals professionals team theoretical knowledge with practical activities specifically comprising six chapters:
Junior Junior Preparatory Warm-up First impression of AHB Integration Growth & leaps
professionals professionals Internal dual selection and Competent development. Through systematic training
and cultivation it aims to help newly hired college graduates quickly establish
We established the AHB Talent Development Center focusing on enhancing internal professional capabilities. By a sense of belonging enhance their professional competence and successfully
integrating case studies with theoretical practice we have built an educational platform that combines research and complete the role transformation from students to corporate employees.study. This place is not only a hub for knowledge dissemination but also an incubator for talent. We explore the most
cutting-edge technologies absorb the most authoritative knowledge and nurture the most outstanding talents Dual- track development: a parallel growth path of specialization and management
providing employees with comprehensive learning and development opportunities.AHB always regards talent cultivation as the top priority formulating a five-year development plan and implementing
AHB Talent Development Center comprehensively covers business talents production talents professional talents the "4221" talent strategy. We have established a dual-channel talent development path and qualification system
and management talents characterized by high standards internationalization AI technology application and providing employees with two career development directions: management channel and specialist channel.professionalism constantly innovating talent cultivation mechanisms. At the same time we closely integrate This meets the Company's human resource needs for development while also creating a clear growth ladder for
talent cultivation with performance evaluation to ensure that employees' growth is in line with the Company's employees. Whether it is delving deeper into specialized fields or advancing to management positions employees
development goals. can find suitable development paths at AHB realizing their career aspirations.
75 762024 Environmental Social and Governance Report Humanistic Care Create a Better Life
◇ ◆ Dual-channel talent development path Management structure
Health and Safety Committee EHS Center
Management Channel Specialist Channel The main responsibilities of the Health and In 2024 the Company established EHS Center
Safety Committee include participating in (Environmental Health and Safety Center)
various activities related to the prevention of to further strengthen the systematic and
work-related accidents identifying various professional management of related employees'
Senior Director Chief Scientist health and safety issues collecting employees' health and safety work create a safer and
opinions making corresponding improvement healthier working environment for employees
suggestions implementing relevant measures and promote the sustainable development of
Director Senior Engineer to solve problems and promoting dialogue the enterprise.between labor and management.Manager Intermediate Engineer Institutional system and certification
The Company strictly adheres to laws and regulations such as the People's Republic of China Law on Work Safety
Supervisor Engineer earnestly managing safety issues. Based on the base as a unit we have established standards like the Accident Management System Fire Safety Management System and Chemical Management Regulations to ensure worker
operational safety and chemical safety management. The four production bases of AHB—Changfeng Bayannur
Qinhuangdao and Chifeng—have all obtained ISO 45001 Certification for their occupational health and safety
Junior Employee/Assistant management systems.Occupational health management measures
Employee health management
Key performance indicators
The Company values the physical and mental health of employees. The Safety and Environmental Department has
Cultivation Annual training Total number of Average duration of training been established at the production base to manage employee occupational health. This department is responsible for formulating occupational health policies and establishing standards for labor protection supplies addressing
expenditure trainees received by each employee health and safety issues encountered by employees during work such as physiological and psychological problems
4.8 2152 39 caused by hazardous equipment working methods and harmful substances. It effectively controls occupational million RMB persons hours health and safety risks related to production and operations continuously improving occupational health and safety
performance.Career Number of employees regularly assessed on performance and career development
development 2033 Occupational health examinations and psychological guidance persons
The Company fully considers occupational hazards 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 arsenic
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
Occupational Health operations)—before they start work and during their employment. The Company also provides free health check-ups to employees who have been with the Company for more than six months. Additionally the Company has
established a channel for psychological guidance and organized mental health training sessions such as "Caring for
Women's Mental Health" to help employees manage psychological stress.AHB has always made every effort to ensure the physical and mental health of all employees as well as the safety Production safety management
of life and property. We have set up the Health and Safety Committee which is composed of elected employee The Company strictly implements the responsibility system in the process of production operation carries out fire
representatives to coordinate and communicate occupational health and safety affairs and ensure the effective drills and training regularly checks and ensures that safety facilities and equipment are perfect and effective works
operation of the occupational health and safety management system. according to regulations strengthens staff training and drills so as to reduce accident risks.
77 782024 Environmental Social and Governance Report Humanistic Care Create a Better Life
Safety inspections and accident handling Foster Collaborative Success with Partners
The Company has always adhered to safe production and the elimination of work-related accidents. It has
established a production safety management mechanism that includes safety awareness training safety warning
reminders and measure optimization emergency response to safety incidents and management and penalties for Empower Customer Value Creation
accident responsibilities. Regular safety inspections are conducted. In 2024 the Company held 44 safety meetings
and carried out 95 comprehensive safety inspections. By promptly addressing safety hazards identified during these
inspections the hazard rectification completion rate reached 100% effectively preventing potential risks before they AHB continues to prioritize customer satisfaction as one of our core goals. We understand that the trust and
occur. recognition of our customers are the driving force behind our progress. Therefore we conduct annual customer
Safety and occupational health training satisfaction survey each year to gain deep insights into customer needs expectations and genuine feedback
on product quality and service. We regularly review and update the Customer Satisfaction Survey Management
According to the EHS Training and Education Implementation Plan each base regularly holds safety production Standards to ensure that the survey process and methods remain relevant and aligned with market and customer
meetings and conducts major hazard source safety training By establishing Standard Operating Procedures (SOP)
and reinforcing employee safety education through training the next focus will be on enhancing safety in high- demand changes truly putting customers at the center.altitude work work in confined spaces and hot work. This includes cultivating professional personnel for operation
management providing operational management systems training materials and specialized audit forms. In response to customer feedback and complaints we have established a comprehensive Customer Complaint
Management Standard outlining a standardized process from receipt to resolution. When a customer raises a
Emergency safety management complaint the system automatically initiates an online handling procedure. The Quality Center and relevant
The Company has established the Production Safety Accident Emergency Plan aimed at enhancing rapid response departments promptly conduct issue analysis examining multiple dimensions including equipment materials
capabilities to production safety incidents. This plan seeks to promptly implement effective measures before during production processes environment and personnel operations to identify causes and develop targeted solutions
and after an accident occurs controlling the occurrence and development of emergencies and minimizing the harm and preventive measures. We commit to resolving complaints within one month and compile a Customer Complaint
to personnel the environment and property as much as possible. The Company has set up an Accident Emergency Feedback Report afterward which serves as a critical reference for internal learning and improvement preventing
Rescue Command Center which comprises four teams: the Emergency Medical Rescue Group Communication and
Liaison Group Logistics Support Group Accident Investigation and Aftermath Handling Group. The Command Center similar issues from recurring.is headed by a Chief Commander and Deputy Chief Commander with all employees serving as members of the
rescue organization. To better meet customer needs we update the customer's goods demand file monthly and apply QC (Quality
◇ ◆ Emergency organization system: Control) management techniques to conduct in-depth analysis of quality data during production continuously
optimizing manufacturing processes and standards. At the same time through QC pillar projects we focus on
Chief Commander tackling technical challenges gaining a deep understanding of actual application scenarios and potential needs
of our customers ensuring that our products and services always align with customer expectations. In 2024 by
Deputy Chief Commander implementing these measures we further optimized our customer service system improved product quality and
service levels striving to make every customer feel the dedication and professionalism of AHB. In the future we will
continue to prioritize customer satisfaction continuously improve and work together with our customers to create
Accident Investigation greater value.Emergency Medical Communication and Logistics Support
Rescue Group Liaison Group Group and Aftermath Handling Group AHB won the title of "2023 Strategic Partner AAAAA Supplier" from Muyuan Group
Key performance indicators Muyuan Group is a long-term customer of AHB. In March 2024 AHB was rated as "2023 Strategic Partner
AAAAA Supplier" by Muyuan Group. The good relationship between the two sides in long-term interaction
Class Performance Amount and deep cooperation was once again highlighted reflecting Muyuan Group's high recognition of AHB's
innovation ability product quality and service quality.Safety investment 12.77 million RMB
Security management The average duration of safety training received
27.3 hours
by on-the-job employees
Occupational safety Occupational health examination coverage 100%
Work-related injuries and The number of deaths due to work-related
0
accidents causes
79 802024 Environmental Social and Governance Report Humanistic Care Create a Better Life
Collaborate with Suppliers to Create the future AHB adopts a tiered management approach establishing a dedicated supplier review team to evaluate all Class A and B raw material suppliers or other category suppliers such as
key equipment and spare parts that have been cooperating for over a year each year. The
Supply chain management is an important link for enterprises to achieve steady operation and sustainable evaluation criteria include quality service social responsibility etc. and finally categorizes suppliers based on their total scores.development. AHB always adheres to the concept of sustainable development promises to purchase products
and services in a responsible way and is always committed to achieving sustainable development together with We categorize suppliers and material grades based on the results of their annual reviews to
suppliers. determine the frequency of annual audits for raw material suppliers. The supplier review
Supplier team can refer to the audit frequency table to jointly evaluate and formulate the "Annual
Supply chain management evaluation Supplier Audit Plan." When a supplier exhibits abnormal behavior after communication and confirmation by the supplier review team a temporary special audit may be conducted
to help the Company respond quickly adjust procurement strategies and optimize the
◇ ◆ Management system supply chain structure.AHB has established a comprehensive supply chain management system to identify environmental and social risks
in the supply chain. The Company has formed contractual standardized and routine management mechanisms for
product delivery schedules quality control and technical confidentiality. The Company has formulated and revised The Company conducts supplier capability building training for Class A and B material
relevant supply chain management documents including the AHB Business Partner Code of Conduct AHB Supplier suppliers on an irregular basis covering quality business ethics environment labor
Management Standards AHB Procurement Management Standards and AHB Bidding Management Standards. These and human rights. We also continuously monitor the subsequent capability building
documents are based on standards such as quality business ethics environment and human rights establishing a and performance of suppliers using these as reference dimensions for annual supplier
robust supplier evaluation system and forming a complete procurement framework. Supplier evaluations.training
By constantly improving the supplier management standards AHB encourages and promotes suppliers to
practice more responsible purchasing behaviors. At the same time the Company strengthens the supervision and Sustainable supply chain
assessment of suppliers to effectively prevent all kinds of procurement risks and promote the long-term goal of
healthy development of the supply chain. We firmly believe that responsible procurement practices can create positive impacts on society the environment
and the economy. Based on supplier management AHB deeply integrates the concept of sustainability into our
AHB has established a comprehensive supplier admission and evaluation mechanism. We regularly assess supplier collaborations prioritizing environmentally friendly suppliers and products. We consistently uphold principles of
performance and set requirements for non-compliant suppliers to rectify or eliminate them. This ensures that human rights labor rights and social equity ensuring that every worker in our supply chain enjoys fair treatment
suppliers meet qualification standards while also providing opportunities for mutual growth and development with and a safe working environment. We strongly oppose the use of child labor or forced labor and consider it a key
the Company. The assessment results will serve as a critical basis for supplier eligibility reviews further standardizing criterion for selecting suppliers.supplier behavior and achieving closed-loop management of suppliers. ◇ ◆ Implementation measures
◇ ◆ Practical measures Supplier sustainability requirements: The Company encourages suppliers to establish high standards of social
responsibility promoting continuous improvement in business ethics environmental protection and labor rights. To
strengthen suppliers' awareness of social responsibility we have clearly defined their obligations in the Procurement
Contract through specific clauses requiring them to appoint an independent social responsibility management
The Company formulates relevant guidelines and explanatory documents for supplier representative to oversee the operation of the social responsibility system ensuring it is not interfered with by other
selection and supplier behavior standards. It manages new suppliers according to organizations.institutional documents such as the Supplier Basic Information Survey Form Supplier Due Supplier sustainability investigation: To ensure suppliers actively fulfill their ESG responsibilities in 2024 the
Diligence Form and Supplier On-site Audit Form. The due diligence process covers various Company added a Supplier Due Diligence Form to the existing supplier entry process in addition to the Supplier
aspects of relevant qualification materials including business licenses production permits Basic Information Survey Form. This form aims to gather information on suppliers. Beyond the four survey
system certificates third-party inspection reports and REACH registration information as dimensions of business operations qualifications intellectual property and after-sales service it also includes
Supplier well as elements of business ethics environmental labor and human rights standards. three new dimensions: labor and human rights environmental protection and business ethics. The survey covers
access This ensures that suppliers meet procurement requirements through a comprehensive 22 categories and 80 questions. Meanwhile the Procurement Center reviews the questionnaire responses on social
evaluation system. responsibility from both public channels and on-site audits providing corrective suggestions. This approach not
only comprehensively evaluates new suppliers but also encourages them to establish stringent social responsibility
assurance systems promoting the development of social responsibility capabilities among upstream suppliers.
81 822024 Environmental Social and Governance Report Humanistic Care Create a Better Life
Supplier social responsibility requirements
Labor and Human Rights Digital intelligence supply chain
Compliance with laws and regulations of production Prohibition of child labor
sites
Prohibition of harassment or abuse of labor In 2024 AHB accelerated digital and information transformation deeply integrating digital technology with supply
Compensation and welfare regulations
Prohibition of discrimination chain management to fully unlock the value of digitalization. We have launched the SRM (Supplier Relationship
Working hours regulations Management) system injecting new momentum into supply chain management through digital means. Within the
Health and safety
Freedom of association and collective negotiating year we continued to optimize system functions enhancing transparency and collaboration efficiency in the supply
rights chain achieving full digital coverage from supplier selection cooperation management to performance evaluation.Prohibition of forced labor
AHB is driven by digitalization committed to establishing equal fair and mutually beneficial partnerships
with suppliers. By leveraging the integration of automation and informatization they aim to create a one-stop
Environmental Protection Business Ethics procurement platform standardize procurement processes shorten procurement cycles optimize procurement
efficiency reduce procurement costs and comprehensively streamline all steps in supply chain management. This
Environmental management requirements Anti-unfair competition approach saves on communication costs during supplier engagement achieving the digitalization intelligence and
Energy Anti-bribery efficiency of the supply chain.Water resources and wastewater Compliance with international trade laws
Air pollution and exhaust emissions Anti-drugs Focus on Partner Cooperation and Development
Greenhouse gas management Anti-money laundering
Hazardous chemicals management
Waste management AHB is committed to promoting industry exchanges and cooperation realizing technology resources and knowledge
Response plans and training for environmental sharing building a benign ecology with global partners promoting the development of scientific research and
leakage biotechnology and injecting new vitality into the sustainable development of the industry.Sustainability Covalence
Sustainable raw materials: The Company has strict requirements on the raw materials used by suppliers. Suppliers
should ensure that the parts and materials supplied meet the environmental protection requirements in the
Company's purchasing data encourage suppliers to use environmentally friendly reusable or recyclable packaging Initiated by BASF in collaboration with AHB and other partners in the upstream and downstream of the value chain
materials as far as possible and carry out REACH registration. the "Sustainability Covalence" was jointly established. The alliance aims to gather industrial chain partners rely
on chemical innovation and global best practices jointly promote low-carbon development in key industries and
Local procurement: The Company attaches importance Proportion of local procurement promote circular economy.to local procurement from production bases. During the
reporting period the total amount of local procurement
reaches 871 million RMB accounting for 58% of the total
annual procurement. 42% As a founding member enterprise of the Sustainability
Covalence AHB in collaboration with alliance enterprises led
58% the hosting of the second Sustainability Covalence Conference
and the Sustainability Covalence's Anniversary Celebration in
Hefei reviewing the achievements of sustainable development
Local Non-local and jointly building a new future of green development!
procurement procurement
83 842024 Environmental Social and Governance Report Humanistic Care Create a Better Life
Sustainable strategic cooperation
Charitable Initiatives
In September 2024 AHB signed a strategic cooperation
agreement with China Chengxin and Wangfanxin. The parties AHB continues to place a high priority on community responsibility and pay attention to the coordination between the
will fully leverage their respective strengths to establish development of enterprises and that of community. We actively participate in charitable initiatives focusing on and
extensive and in-depth cooperation in areas such as corporate supporting vulnerable groups in society and striving to contribute to the well-being of the communities we serve. Over
sustainability certification in the dual-carbon field building the past year we donated a total of RMB 230000 to charitable causes and dedicated 400 hours to community service. These efforts reflect not only our care for society but also our determination to grow together with our communities
a carbon footprint database and enhancing corporate and move forward hand in hand. We believe that every act of kindness and effort can help make society warmer and
compliance management. Together we aim to promote the better.bio-manufacturing industry toward a circular integrated and
sustainable future.Exhibition communication AHB donated RMB 200000 AHB donated RMB 30000 to the
in student aid to the Education Bureau Bayannur Municipal People's Education
In April 2024 AHB made a remarkable appearance at the 2024 of Hangjin Rear Banner. Foundation to support a sports gift package
China Feed Industry Exhibition in Xiamen where we launched initiative for underprivileged children.new products including L-Isoleucine L-Arginine and
L-Tryptophan. The Company comprehensively showcased
sustainable amino acid and vitamin product lines and
solutions. Community Building
As a technology-driven enterprise rooted in the regional economyAHB has established a mechanism for community
co-construction and sharing. Through the industrial spillover effect the Company continuously expands employment
opportunities particularly cultivating new types of technical positions in the field of biomanufacturing contributing
to the creation of a happiness employment circle close to home. Guided by the principle of full life cycle carbon
In July 2024 the 19th China International Polyurethane management AHB integrates concepts of clean production and circular economy across its entire operational chain.In collaboration with local governments the Company explores integrated pathways of ecological industrialization
Exhibition (PU China 2024) was grandly held in and industrial ecologicalization providing replicable carbon reduction solutions to support the region's "Dual
Shanghai. Under the theme of "Innovating Chemistry Carbon" goals.Exploring a Low-Carbon Future" with a focus on
sustainable development and the green transformation Driven by the value of "Technology for kindness" the Company has developed a systematic public welfare and
of the industrial value chain AHB showcased multiple science education program regularly offering free lectures to the public on topics such as safety health first aid and
innovative bio-based material monomers and cutting- synthetic biology. This dual-empowerment approach to corporate social responsibility strengthens the foundation
for sustainable development while promoting a new model of urban-rural integration—"Industrial prosperity
edge solutions at the exhibition for the first time. ecological beauty and prosperity for the people." Under the ESG governance framework AHB exemplifies the
responsible practices of a new-era private enterprise.Contribute to Social Welfare Rural Revitalization
In 2024 AHB continued to regard social welfare as a core part of corporate culture. While ensuring steady growth AHB is committed to "Empowering rural revitalization through technology and building a shared path to prosperity
and continuous economic value creation we have always closely integrated social responsibility with corporate through industry" and deeply fulfills corporate social responsibility. Guided by the strategic blueprint of the
development. We actively build mutual trust and supportive partnerships with the communities where we operate 20th National Congress to comprehensively advance rural revitalization the Company leverages cutting-edge
fulfilling our corporate social responsibility through concrete actions. By actively participating in and initiating synthetic biology expertise to drive rural industrial upgrading through technological innovation fully supports the
various charitable and public welfare activities we are deeply involved in local philanthropic efforts striving to modernization of agriculture through promoting a "Technology-industry-talent" integrated development model. AHB is committed to creating replicable and sustainable models for rural revitalization. The Company not only focuses
give back to society and promote regional sustainable development thereby truly achieving a win-win situation on enhancing the value of the agricultural industry chain but also emphasizes improving farmers' skills and overall
between the enterprise and society. We believe that every small action can bring about positive change and AHB is capabilities. These efforts provide strong support for building a modern agricultural powerhouse and demonstrate
committed to being part of this positive force. the responsibility of private enterprises in the great journey of rural revitalization in the new era.
85 862024 Environmental Social and Governance Report Appendix
Appendix 1 – Laws and Regulations
Dimension Applicable Laws
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
Dimension Applicable Laws by Solid Waste
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 Environmental Law of the People's Republic of China on Prevention and Control of Noise Pollution
Regulations on the Safety Management of Hazardous Chemicals of the People's Republic of
Securities Law of the People's Republic of China
China
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
Social
U.S. Federal Trade Commission Act Labor 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
Environmental
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 Diseases
Law 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
87 882024 Environmental Social and Governance Report Appendix
Appendix 2 – ESG Key Performance Indicators Water resource utilization Unit 2024
Fresh water usage million liters 4256.57
Environmental Indicators
Water usage intensity million liters/million RMB revenue 1.95
Environmental investment Unit 2024
Exhaust emissions Unit 2024
Environmental investment million RMB 48.79
Nitrogen oxides tons 145.66
Greenhouse gases emissions Unit 2024 Sulphur oxides tons 87.81
Scope I tCO e 246405.26 Particulate matter tons 10.962
Scope II tCO2e 163932.41
Wastewater discharge Unit 2024
Total GHG emissions tCO2e 410337.67
Total discharge of pollutants in water tons 330.23
GHG emission intensity tCO2e/million RMB revenue 188.41
Chemical oxygen demand (COD) tons 253.00
Total nitrogen (TN) tons 63.38
Energy consumption Unit 2024
Total phosphorus (TP) tons 8.88
Coal tons 118077.40
Ammonia nitrogen (NH -N) tons 4.97
Natural gas m3 3234274.24 3
Total wastewater discharge million liters 3623.61
Liquefied petroleum gas tons 1.23
Direct energy Wastewater discharge intensity million liters/million RMB 1.66
Diesel liters 135263.55 revenue
Gasoline liters 57554.07
Waste discharge Unit 2024
Biomass fuel GJ 446187.45
General waste
Purchased electricity (Non-
renewable energy) MWh 259697.57 Total amount of general waste discharge tons 58993.40
Purchased electricity
(Renewable energy) MWh 163146.90 General waste discharge intensity tons/million RMB revenue 27.09
Indirect energy The usage of green electricity
generated and consumed by the MWh 208.82 Waste transferred from disposal (recycle) tons 5328.70
company
Steam GJ 80073.83 Waste for direct disposal (incineration with energy recovery) tons 0
Total consolidated energy consumption tce 158884.14 Waste for direct disposal (incineration without energy recovery) tons 390.14
Consolidated energy intensity tce / million RMB revenue 72.95 Waste for direct disposal (landfill) tons 18719.61
89 902024 Environmental Social and Governance Report Appendix
Waste discharge Unit 2024 Employment Unit 2024
Waste for direct disposal (other operations) tons 34554.95 Under 30 years old persons 923
Hazardous waste By age 31-49 years old persons 1194
Total amount of hazardous waste discharge tons 56.65 Above 50 years old persons 74
Hazardous waste discharge intensity tons/million RMB revenue 0.03 China (including Hong Kong Macao and Taiwan) persons 2179
By region
Waste transferred from disposal (recycle) tons 0 Other countries persons 12
Waste for direct disposal (incineration with energy
recovery) tons 0 Han ethnicity persons 2009
Waste for direct disposal (incineration without energy By ethnic groups
recovery) tons 56.65 Other ethnic groups persons 170
Waste for direct disposal (landfill) tons 0
Waste for direct disposal (other operations) tons 0 Employment absorption Unit 2024
Total number of new employees persons 1413
Male persons 1045
By gender
Packaging materials Unit 2024 Female persons 368
Proportion of recyclable packaging materials used % 87 Under 30 years old persons 791
By age 31-49 years old persons 611
Above 50 years old persons 11
Social Indicators
Diversity inclusion and quality Unit 2024
Proportion of management
Employment Unit 2024 Diversification of team hired from local area % 54
management team Proportion of women in
Overall situation Total number of employees persons 2191 management team % 24
Male persons 1581
By gender
Female persons 610 Employee training Unit 2024
Management team Total annual training million RMB 4.80
(Grade 5 and above) persons 159 expenditures
By position Intermediate professionals Overall situation
Total number of employees persons 2152
(Grade 4) persons 283 trained
Junior professionals Per capita training
(Grades 1-3) persons 1749 expenditure
RMB 2200
91 922024 Environmental Social and Governance Report Appendix
Employee training Unit 2024 Employee health and safety Unit 2024
Total number of safety training
Number of trainees Male persons 1561 sessions in the reporting times 358
by gender periodFemale persons 591 The total duration of safety
Management team Safety training training in the reporting hours 50291
(Grade 5 and above) persons 151 period
Number of trainees Intermediate professionals The average duration of safety
(Grade 4) persons 273 training received by on-the- hours 27.3by position job employees
Junior professionals
(Grades 1-3) persons 1728 Work-related injuries and Number of work-related
accidents fatalities
persons 0
Total training duration Male hours 64114 Number of occupational
by gender Female hours 19108 health examinations
persons 1271
Occupational health
Coverage rate of occupational
Management team health examinations % 100
(Grade 5 and above) hours 10037
Total training duration Intermediate professionals Safety investment Safety investment amount million RMB 12.77
by position (Grade 4)
hours 4592
Junior professionals
(Grades 1-3) hours 68593 Social contribution Unit 2024
Per capita training Male hours 41 Public welfare donation million RMB 0.23
duration by gender Female hours 32
Public welfare inputs Public service hours 400
Management team
(Grade 5 and above) hours 66 Number of public service persons 84
Per capita training Intermediate professionals participants
duration by position (Grade 4)
hours 17
Junior professionals
(Grades 1-3) hours 40 Product quality and safety Unit 2024
Incidents of non-compliance
concerning the quality and
safety impacts of products cases 0
and services
Product quality and safety Number of products recalled
for quality and safety reasons pieces 0
Parental leave Unit 2024 Number of complaints for
Total number of employees quality and safety reasons
times 0
entitled to parental leave persons 99
Total number of employees persons 72
Vacation status took parental leave Responsible marketing Unit 2024
Total number of employees
who returned to work in the Incidents of non-compliance
reporting period after taking persons 72 concerning product and
parental leave service information and
times 0
Marketing and labeling labeling
Violations related to marketing times 0
93 942024 Environmental Social and Governance Report Appendix
Sustainable supply chain Unit 2024 Appendix 3 – Content Index
Proportion of expenditure on purchasing
from local suppliers % 58
Number of target suppliers that have
Suppliers Index Based on the Shanghai Stock Exchange Guidelinessigned the Supplier Code of Conduct - 273
Number of target suppliers that have
participated in Corporate Social - 20
Responsibility(CSR) assessments Dimension Topic Corresponding Chapter
Number of purchasers who have
received sustainable procurement persons 26 Climate Change Response Implement Climate Action
Purchasers trainingProportion of purchasers who have Pollutant Emissions Optimize Resource Recycling
received sustainable procurement % 100
training Waste Management Optimize Resource Recycling
Ecosystem and Biodiversity Protection Protect Ecological Balance
Governance Indicators Environmental Environmental Compliance Management Implement Climate Action
Governance of General Meeting of Shareholders Board of Directors Energy Utilization Implement Climate Action
Unit 2024
and Supervisory Committee Water Resource Utilization Optimize Resource Recycling
General Meeting of Number of meetings held times 3 Circular Economy Optimize Resource Recycling
Shareholders Number of proposals deliberated items 14 Rural Revitalization Contribute to Social Welfare
Social Contribution Contribute to Social Welfare
Number of meetings held times 9
Board of Directors Innovation-Driven Development Promote Research and Innovation
Number of proposals deliberated items 47 Science and Technology Ethics Promote Research and Innovation
Number of meetings held times 7 Social Supply Chain Security Foster Collaborative Success with Partners
Supervisory Committee Fair Treatment of SMEs Refer to Annual Report
Number of proposals deliberated items 20
Product and Service Safety & Quality Ensure Product Safety
Business ethics and anti-corruption Unit 2024 Data Security & Customer Privacy Protection Enhance Compliance Code
Percentage of bases that have undergone Employees Gather Enterprising Talents
corruption risk assessment % 100
Anti-corruption situation Due Diligence ESG Development Strategy
Corruption incidents cases 0 Governance Stakeholder Communication ESG Development Strategy
for Sustainable
Total training hours hours 1262 Development Anti-Bribery and Anti-Corruption Adhere to Business Ethics
Anti-corruption training Anti-Unfair Competition Adhere to Business Ethics
Number of employees trained persons 1262
Data privacy and security Unit 2024 GRI Content Index
Total training hours of information
security training hours 6
Information security
Number of employees who have persons 700 Statement of use: AHB has prepared this report with reference to the Global Reporting Initiative (GRI) Sustainability received information security training Reporting Standards. The reporting period is from January 1 2024 to December 31 2024.
95 962024 Environmental Social and Governance Report Appendix
Disclosure Disclosure Title Corresponding Chapter Disclosure Disclosure Title Corresponding Chapter
GRI 2: General Disclosures 2021 GRI 201: Economic Performance 2016
2-1 Organizational details About this Report About AHB 201-1 Direct economic value generated and distributed Refer to Annual Report
201-2 Financial implications and other risks and opportunities due to 2-2 Entities included in the organization's sustainability reporting About this Report climate change Implement Climate Action
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 About this Report GRI 204: Procurement Practices 2016
Foster Collaborative Success with 204-1 Proportion of spending on local suppliers Foster Collaborative Success with 2-6 Activities value chain and other business relationships Partners Partners
2-7 Employees Gather Enterprising Talents GRI 205: Anti-corruption 2016
205-1 Operations assessed for risks related to corruption Adhere to Business Ethics
2-9 Governance structure and composition Strengthen Regulated Governance
205-2 Communication and training about anti-corruption policies 2-10 Nomination and selection of the highest governance body Strengthen Regulated Governance and procedures Adhere to Business Ethics
2-11 Chair of the highest governance body Strengthen Regulated 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 ESG Development Strategy
GRI 301: Materials 2016
management of impacts Strengthen Regulated Governance 301-2 Recycled input materials used Prioritize Sustainable Products
2-13 Delegation of responsibility for managing impacts Enhance Compliance Code
301-3 Reclaimed products and their packaging materials Prioritize Sustainable Products
2-14 Role of the highest governance body in sustainability reporting ESG Development Strategy GRI 302: Energy 2016
2-16 Communication of critical concerns ESG Development Strategy 302-1 Energy consumption within the organization Implement Climate Action
2-18 Evaluation of the performance of the highest governance body Refer to Annual Report 302-2 Energy consumption outside of the organization Implement Climate Action
2-19 Remuneration policies Refer to Annual Report 302-3 Energy intensity Implement Climate Action
302-4 Reduction of energy consumption Implement Climate Action
2-20 Process to determine remuneration Refer to Annual Report
Chairwoman's Message ESG 302-5 Reductions in energy requirements of products and services Implement Climate Action2-22 Statement on sustainable development strategy Development Strategy GRI 303: Water and Effluents 2018
2-27 Compliance with laws and regulations Appendix 1 303-1 Interactions with water as a shared resource Optimize Resource Recycling
2-29 Approach to stakeholder engagement ESG Development Strategy 303-2 Management of water discharge-related impacts Optimize Resource Recycling
2-30 Collective bargaining agreements Gather Enterprising Talents 303-3 Water withdrawal Optimize Resource Recycling
GRI 3: Material Topics 2021 303-4 Water discharge Optimize Resource Recycling
3-1 Process to determine material topics ESG Development Strategy 303-5 Water consumption Optimize Resource Recycling
3-2 List of material topics ESG Development Strategy GRI 304: Biodiversity 2016
3-3 Management of material topics ESG Development Strategy Operational sites owned leased managed in or adjacent to
304-1 protected areas and areas of high biodiversity value outside Protect Ecological Balance
protected areas
97 982024 Environmental Social and Governance Report Appendix
Disclosure Disclosure Title Corresponding Chapter Disclosure Disclosure Title Corresponding Chapter
304-2 Significant impacts of activities products and services on Protect Ecological Balance 403-7 Prevention and mitigation of occupational health and safety biodiversity impacts directly linked by business relationships Gather Enterprising Talents
304-3 Habitats protected or restored Protect Ecological Balance 403-8 Workers covered by an occupational health and safety management system Gather Enterprising Talents
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
305-5 Reduction of GHG emissions Implement Climate Action 404-2 Programs for upgrading employee skills and transition assistance programs Gather Enterprising Talents
305-7 Nitrogen oxides (NOX) sulfur oxides (SOX) and other significant Optimize Resource Recycling 404-3 Percentage of employees receiving regular performance and air emissions career development reviews Gather Enterprising Talents
GRI 306: Waste 2016 GRI 405: Diversity and Equal Opportunity 2016
306-1 Waste generation and significant waste-related impacts Optimize Resource Recycling 405-1 Diversity of governance bodies and employees Gather Enterprising Talents
306-2 Management of significant waste-related impacts Optimize Resource Recycling GRI 408: Child Labor 2016
306-3 Waste generated Optimize Resource Recycling 408-1 Operations and suppliers at significant risk for incidents of child labor Gather Enterprising Talents
306-4 Waste diverted from disposal Optimize Resource Recycling GRI 409: Forced or Compulsory Labor 2016
306-5 Waste directed to disposal Optimize Resource Recycling 409-1 Operations and suppliers at significant risk for incidents of forced or compulsory labor Gather Enterprising Talents
GRI 308: Supplier Environmental Assessment 2016
GRI 414: Supplier Social Assessment 2016
308-1 New suppliers that were screened using environmental criteria Foster Collaborative Success with Partners 414-1 New suppliers that were screened using social criteria Foster Collaborative Success with
308-2 Negative environmental impacts in the supply chain and Foster Collaborative Success with
Partners
actions taken Partners 414-2 Negative social impacts in the supply chain and actions taken Foster Collaborative Success with Partners
GRI 401: Employment 2016
GRI 416: Customer Health and Safety 2016
401-1 New employee hires and employee turnover Gather Enterprising Talents
416-1 Assessment of the health and safety impacts of product and
Benefits provided to full-time employees that are not provided service categories
Ensure Product Safety
401-2 to temporary or part-time employees Gather Enterprising Talents 416-2 Incidents of non-compliance concerning the health and safety impacts of products and services Ensure Product Safety
401-3 Parental leave Gather Enterprising Talents
GRI 417: Marketing and Labeling 2016
GRI 403: Occupational Health and Safety 2018
417-1 Requirements for product and service information and labeling Ensure Product Safety
403-1 Occupational health and safety management system Gather Enterprising Talents Incidents of non-compliance concerning product and service
403-2 Hazard identification risk assessment and incident
Gather Enterprising Talents information and labeling
Ensure Product Safety
investigation 417-3 Incidents of non-compliance concerning marketing Ensure Product Safety
403-3 Occupational health services Gather Enterprising Talents communications
Worker participation consultation and communication on GRI 418: Customer Privacy 2016403-4 occupational health and safety Gather Enterprising Talents 418-1 Substantiated complaints concerning breaches of customer
403-5 Worker training on occupational health and safety Gather Enterprising Talents privacy and losses of customer data
Enhance Compliance Code
403-6 Promotion of worker health Gather Enterprising Talents
99 1002024 Environmental Social and Governance Report Appendix
Ecovadis Index Appendix 4 – Feedback Form
Dimension Sub-category Indicator Corresponding Chapter Dear Readers
Energy Consumption and Greenhouse Thank you for reading the 2024 Environmental Social and Governance Report of Anhui Huaheng Biotech Co. Ltd.Gas Emissions Implement Climate Action To enhance our ESG management we sincerely invite you to fill out this feedback form after reading the report
and share your valuable opinions and suggestions with us. Your feedback is a crucial basis for our continuous
Water Resource Management Optimize Resource Recycling improvement in ESG practices. We look forward to your reply!
Operation Biodiversity Protect Ecological Balance
1. Category of stakeholder:
Local Environmental Pollution Optimize Resource Recycling □ Government??□ Shareholder??□ Customer??□ Supplier??□ Employee??
□ Community?□ Industry associations?□ Universities and research institutes
Environmental Raw Materials Chemicals and Waste Optimize Resource Recycling
2. Your overall evaluation of this report:
Product Usage Ensure Product Safety □ Very good??□ Good??□ Average??□ Poor
End of Product Life Ensure Product Safety 3. Your evaluation of AHB's performance in corporate governance:
Product □ Very good??□ Good??□ Average??□ Poor
Consumer Health and Safety Ensure Product Safety
Environmental Services and Prioritize Sustainable Products 4. Your evaluation of AHB's performance in environmental responsibility:Advocacy □ Very good??□ Good??□ Average??□ Poor
Employee Health and Safety Gather Enterprising Talents
5. Your evaluation of AHB's performance in social responsibility:
Human Working Conditions Gather Enterprising Talents □ Very good??□ Good??□ Average??□ Poor
Resources Communication Gather Enterprising Talents 6. Do you think the information disclosed in this report is complete
Labor & Human □ Yes??□ NoCareer Development and Training Gather Enterprising Talents
Rights
Child Labour Forced Labour and 7.Other comments and suggestions for improving AHB's ESG-related work:
Human Trafficking Gather Enterprising Talents ____________________________________________________________________________
Human Rights Diversity Discrimination and Gather Enterprising Talents ____________________________________________________________________________Harassment ____________________________________________________________________________
Human Rights of External
Stakeholders Gather Enterprising Talents
Environmental Performance of Foster Collaborative Success with Your Contact Information
Sustainable Suppliers Partners
/ Name: ___________________________
Procurement Social Performance of Suppliers Foster Collaborative Success with Employer: ___________________________Partners Job title: ___________________________
Corruption and Bribery Adhere to Business Ethics
Business Ethics / Anti-Unfair Competition Practices Adhere to Business Ethics Our Contact Information
Social Responsibility and Ethics in Address: No.197 Chang'an Road High-tech District Hefei City Anhui Province China
Marketing Ensure Product Safety Website: www.huahengbio.com
Email: ahb@ehuaheng.com
Tel: +86-0551-65689046
101102
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