About this Report

Report Briefing Data Sources

Since its first release of a social responsibility report in 2008 Zhejiang NHU Co. Ltd. ("NHU") has issued such reports for 15 All data used in this Report are derived from the Company's internal official documents internal statistics and publicly available

consecutive years. The Environmental Social and Governance (ESG) Report 2024 of Zhejiang NHU Co. Ltd. (the "Report" or materials. Key financial performance data are primarily sourced from the Annual Report 2024 of Zhejiang NHU Co. Ltd."this Report" for short) is the Company's first-ever ESG Report released to the public. Unless otherwise stated all monetary amounts in this Report are in CNY. The Board of Directors assumes responsibility for the

authenticity accuracy and completeness of the Report's contents.Organizational Scope Report Acquisition Method

This Report encompasses the environmental social and corporate governance efforts of NHU and its subsidiaries. For ease of This Report is available in both Chinese and English versions for readers' reference. In case of any discrepancies the Chinese

reading unless otherwise specified "Zhejiang NHU Co. Ltd." and its subsidiaries are collectively referred to as "Zhejiang NHU" version shall prevail. It can be viewed and downloaded on the Company's website (https://www.cnhu.com)."NHU" "the Company" or "We."

Contact Us

Reporting Period

We welcome feedback from all stakeholders. For inquiries or suggestions regarding NHU's sustainable development initiatives

or the content of this Report please contact us through the following channels:

The Report covers the period from January 1 2024 to December 31 2024. However to maintain information continuity and

integrity some content may extend beyond this timeframe.Address: No. 418 Xinchang Dadao West Road Qixing Sub-district Xinchang County Zhejiang

Province China

Preparation Basis

Tel.: +86 575 86017157

Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange—Sustainability Report (For Trial E-mail: 002001@cnhu.com

Implementation)

Sustainability Reporting Standards by the Global Reporting Initiative (GRI Standards)

The United Nations' 2030 Agenda for Sustainable Development (UN SDGs)

Financial Stability Board's Task Force on Climate Related Financial Disclosures (TCFD) Disclosure Recommendations

01 02Message from the Chairman“As time progresses NHU has achieved notable advancements in 2024. Remaining committed to our corporate We are committed to sharing development achievements with all stakeholders and fostering a moreprinciples of "Creating Wealth Elevating Employees and Benefiting Society" we have strengthened the harmonious society.foundation for ESG development and integrated sustainability into our corporate strategy while pursuing high-

quality business growth.Upholding integrity and compliance operations we continuously enhance our risk management framework and strengthen

business ethics governance. NHU has maintained a 16-year consecutive "A" rating in the Shenzhen Stock Exchange's

information disclosure evaluation and was honored among the 2024 Top 30 Best Internal Control Awards for Zhejiang Listed

Companies. We prioritize employee development by cultivating an inclusive diverse and innovative organizational ecosystem.We continuously pursue superior products to better serve society. Annual training expenditures exceeded CNY 7 million with an average of 42 training hours per employee. Our comprehensive

occupational health and safety (OHS) management system achieved 100% work-related injury insurance coverage and

maintained zero occupational disease incidence. We extend sustainability practices across the supply chain by optimizing

Through intelligent and digital transformation we supplier ESG management achieving 100% execution of Supplier Integrity Agreements. We actively support community

have accelerated our smart factory development development initiatives contribute to building harmonious communities and increase investments in public welfare and

evaluated 22 digital and intelligent projects and charitable initiatives. While driving our own growth we remain committed to social responsibility and the creation of enduring

optimized resource allocation. We remain committed value.to innovation-driven development completing 76

technical transformation projects and the R&D of

14 new products with a focus on green technology We are dedicated to leading green and low-carbon development in our industry.

research and low-carbon solutions to enhance

product ion eff ic iency. We r igorously contro l

product quality implement information security and In response to the "Dual Carbon" strategy (carbon peaking and carbon neutrality) we achieved a 7.67% reduction in energy

quality training for all employees and reinforce consumption intensity completed carbon footprint verification for 36 products and compiled greenhouse gas emission

our "customer-centric" philosophy. Guided by inventories for all subsidiaries. We continuously improve our environmental management systems fulfilling annual targets

technological innovation empowered by intelligent including a 5% reduction in COD emissions and a 2% decrease in wastewater discharge per output value of CNY 10000

systems we remain dedicated to safety and quality while ensuring compliance with pollutant discharge standards. Embracing green operational principles we explore circular

advancing new quality productive forces. economy models maintaining a 96.30% water recycling utilization rate. Confronting challenges posed by climate change

resource constraints and environmental shifts we actively drive green and low-carbon transformation to advance sustainable

development.In 2025 we will continue to implement ESG principles execute sustainable development strategies concentrate on

our dual-core strategy of "Chemistry+" and "Bio+" propel industry progress through innovation enrich lives through

chemistry and generate greater societal value.Chairman Hu Baifan

Zhejiang NHU Co. Ltd.”

1 COD: Chemical oxygen demand.

03 04About NHU Global Footprint

With a global footprint encompassing sales R&D and production operations the Company has established integrated functional

Company Profile systems covering HR management financial operations logistics IT infrastructure and administrative support. Our business network currently spans key Asia-Pacific markets including Singapore Japan and Vietnam and extends to Europe and South

America.Zhejiang NHU Co. Ltd. ("NHU" or "the Company") a subsidiary of NHU Holding Group was founded in 1999 and listed on the

Shenzhen Stock Exchange in 2004 (Stock Code: 002001).Maintaining a commitment to innovation-driven development and market-oriented growth the Company specializes in the R&D

production sales and servicing of functional chemicals. Through providing integrated solutions spanning nutrition & health

personal & home care transportation environmental protection and energy sectors we serve customers across 100+ countries

and regions. Our premium-quality healthy eco-friendly and low-carbon products continuously improve human wellbeing while

generating sustainable value for stakeholders progressing toward our vision as a global leader in functional chemicals solutions.Among China's

Top 100 Fine

Chemical

Provided over Companies

Founded in 100

1999 comprehensive

solutions

Listed in Among China's

2004 Top 100 Listed Headquater Production Base R&D Institute Trade Company Companies

NHU Global Layout

05 06Development History

Corporate Creating Wealth Elevating

Principles Employees and Benefiting Core Values New Harmony and Union

Society

In 1999 NHU was established by Xinchang County Synthetic Chemical Factory as the initiating entity. Pursue Pragmatism Innovation Creating Wealth Maintaining Corporate Management

Morale Quality and Efficiency Philosophy Balance and Sustainable Progress

In 2003 The construction of Shangyu Base commenced.Employee Code Honesty Focused-mindset Administrative Staff Modeling Accountability

of Conduct Diligence and Thrifty Code of Conduct Vigilance and Self-sacrifice

In 2004 NHU became the first company to be listed on the SME board (now the main board) of the Shenzhen Stock Exchange with the stock code of 002001.Conduct Oneself With Honesty

Corporate Motto and Do Everything in a Corporate Image Aim High But Firmly-grounded

In 2006 The development of Coenzyme Q10 was successfully completed marking the Company's entry into Thorough Manner

the fermentation sector.Company Honors

In 2008 The construction of Shandong Base commenced.Honor Awarded by Winner / Project

In 2013 Zhejiang NHU Special Materials Co. Ltd. was established signaling NHU's expansion into the new

The 15th China Listed Companies

materials sector. Investor Relations Tianma Award Securities Times Zhejiang NHU Co. Ltd.for Shareholder Return

China Chemical Industry Information

In 2014 The construction of Shandong NHU Amino Acids Co. Ltd. commenced marking NHU's foray into 2024 China's Top 100 Fine Chemical Association; China National Fine Chemical

the amino acid sector. Companies Raw Materials & Intermediates Industry Zhejiang NHU Co. Ltd.Cooperation Group

In 2018 The construction of Heilongjiang Base commenced laying the foundation for NHU's advancements 2024 Top 20 Innovative

China Chemical Industry Information

in bio-fermentation. Development Enterprises in China's Association; China National Fine Chemical Raw Materials & Intermediates Industry Zhejiang NHU Co. Ltd.Fine Chemical Industry Cooperation Group

In 2021 The NHU Life and Health Industrial Park was completed heralding a new journey in human

nutrition. 2024 Top 20 Green and Low-Carbon

China Chemical Industry Information

Development Enterprises in China's Association; China National Fine Chemical

Fine Chemical Industry Raw Materials & Intermediates Industry

Zhejiang NHU Co. Ltd.Cooperation Group

In 2023 Zhenxin Bio was founded in collaboration with Sinopec Zhenhai Refining & Chemical Company

and the construction of the 180000-ton liquid methionine project started. Innovative Small and Medium Zhejiang Provincial Department of Zhejiang NHU Special Materials

Enterprises in Zhejiang Province Economy and Information Technology Co. Ltd.Corporate Culture

Cultural Characteristics Teacher Culture

The Wiser Is the Teacher; the More Capable the Teacher; Act in Modesty; Training for Excellence

The founders of NHU were mainly teachers and students. Ever since its inception NHU has rooted values of respecting

teachers and stressing training. In its course of development Corporate leaders and staff have embodied educator virtues -

self-cultivation through mentorship principles and honoring expertise through the title "Teacher". This Teacher Culture now an

organizational hallmark continues to propel the Company's sustainable development.

07 08ESG Strategy and Governance ESG Key Areas Goals

Superior Products

NHU is committed to establishing itself as a global sustainability benchmark in functional chemicals. We have deeply integrated

sustainable development into our business operations and formulated an ESG strategy that aligns with the United Nations

Sustainable Development Goals (SDGs). This strategy aims to foster a more sustainable industrial ecosystem enhance quality Digital and Intelligent Empowerment: Drive

smart factory development by upgrading

of life through innovative fine chemical solutions and demonstrate Chinese enterprises' contributions to global sustainability. ● Build an ESG Information Systementire operations through digitalization

automation informatization networking ● Maintain zero incidents of data security and customer privacy breaches

and intelligentization

ESG Strategy

Innovation-driven Development: Drive

industrial transformation through product ● By 2030 the sales proportion of green and low-carbon products will exceed

Guided by our corporate mission "Exploring Chemistry Improving Life" and our core value of "New Harmony and Union" the R&D and technological innovation 15%

ESG strategy has been developed in accordance with the UN 2030 Agenda for Sustainable Development and fully integrated delivering high-quality products that ●

into our corporate strategic framework. By 2030 the coverage rate of quality certification system will reach 100%contribute to a better life

Risk Management: Strengthen risk ●

ESG Strategic ESG Strategic Conduct due diligence investigations on negative impacts or risks related Pioneering Innovation Shared To establish NHU as a global sustainability control frameworks to proactively identify

Vision to sustainable development every 2 yearsProsperity Sustainable Future Goals benchmark in functional chemicals assess and address sustainability-

related risks and opportunities ensuring ● Complete risk and opportunity assessments related to short medium

and long-term sustainable development every 2 years

Our ESG implementation framework comprises three strategic pillars - "Superior Products" "Harmonious Society" and sustainable and resilient operations

"Sustainable Environment" - supported by nine concrete initiatives to achieve the ESG strategic vision and goals of NHU.Through continuous innovation that transcends conventional chemical boundaries we deliver competitive product and solutions

while generating sustainable value for stakeholders. Our efforts address critical challenges in food security environmental

protection and life quality enhancement driving balanced and sustainable development for humanity society and the planet. ESG Key Areas Goals

Harmonious Society

Sustainable Development Strategy Map of vation S

Zhejiang NHU Co. Ltd. h Inno arg ed

rin

Pr

ee

o

tainable Fut spe Integrity Compliance: Maintain u ● s r Conduct a business ethics audit of the production legal entity every three Su e r regulatory-compliant operations and years

uphold the highest business ethics

standards with zero-tolerance policies ● Annual business ethics and anti-corruption training coverage reaches

against corruption and malpractice 100%

ESG Overall Vision

Employee Well-being: Cultivate ● By 2030 the proportion of female senior management will reach 20%

Superior Sustainable

Main Pillars Products Harmonious Environment inclusive and “Harmonious” corporate

Society ● culture safeguarding employee health Each employee has an annual learning time of more than 50 hours

while enabling professional growth ● Annual number of work-related deaths among employees: 0

Key Action Commitments

it i

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v

a

an form atu

k at

d

io In nte

s

llig Tra

n th N no Ma -n driv

e

e nn t b

on wi o

ag

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D me p

c

e v oe werme Low

-car armo

ny

m l n H cula

r E

op t r Shared Success and Prosperity: ent ment Ci

Integrity Compliance Employee Well-being Shared Success and Prosperity Address societal needs and empower ●

partners to drive sustainable By 2028 all strategic suppliers will be included in the Company's ESG

development across industries and management and assessment

communities

0910

Pion

o n

re

m y

ity

Dig

Inn

RisESG Key Areas Goals ESG Governance

Sustainable Environment To ensure the scientific rigor and rationality of the Company's ESG development processes from an organizational perspective

the Company has established a comprehensive ESG governance structure with clearly defined hierarchies and responsibilities.This framework specifies duties across all organizational levels departments and positions to facilitate robust ESG management

systems and mechanisms.Low-carbon Transformation:

Reduce energy consumption and ● Achieve operational carbon neutrality by 2060 (Scope 1+Scope 2)

carbon emissions to achieve a ● Compared to the 2023 baseline reduce greenhouse gas (GHG) Board of Directors

greener energy mix and climate- Decision-emissions per unit of revenue 25% by 2030

friendly operations making Level Strategy Committee

ESG Management Committee

● Environmental management system certification maintains a coverage

rate of 100%

●

Harmony with Nature: Enhance Maintain 0 annual major environmental incidents Management Office Director Deputy Office Director

environmental management systems ● Compared to the 2023 baseline reduce COD emission intensity 30% by Level

to minimize pollution advance 2030

biodiversity conservation and foster

●

human-nature coexistence Compared to the 2023 baseline reduce industrial waste emission

intensity 10% by 2030 Senior Management

● Compared to the 2023 baseline reduce hazardous waste generation

intensity 10% by 2030

ESG Office Environmental and Social Responsibility and Comprehensive

Circular Economy: Implement water Sustainability Working Group Governance Working Group

conservation and recycling programs ● Compared to the 2023 baseline the Company's water recycling utilization

while promoting closed-loop resource rate is expected to exceed 95% by 2030 Executive

utilization and renewable material Level

adoption to build resource-efficient ● The purchased renewable raw materials reach 200 tons/year

circular economies Headquater Departments Business Divisions and Subsidiaries/Branches

The Board of Directors serves as the supreme decision-making body for the Company's ESG management assuming The ESG Management Committee has established an ESG Office which is responsible for leading and coordinating the

ultimate responsibility for the truthfulness accuracy and completeness of ESG-related work and report contents. It oversees ESG Management Committee's functions overseeing the implementation of tasks and decisions by ESG working groups

the overall ESG strategy and make decisions on material matters. Reporting to the Board of Directors the Board Strategy and reporting to the ESG Management Committee. The ESG Office performs the following key responsibilities: (1) Regularly

Committee performs research and guidance functions for ESG management conducting deliberation evaluation and tracking external regulations and policy developments staying informed of changes in legal requirements regulatory

oversight of significant ESG matters. Its responsibilities encompass: (1) developing strategies and policies; (2) overseeing frameworks and international standards and conducting periodic reviews of the Company's sustainability policies and

ESG plan implementation and performance evaluation; (3) identifying risks and opportunities; (4) reviewing the annual ESG initiatives; (2) Coordinating the development of corporate ESG goals and dual materiality evaluations and analyzing

Report and related disclosures with reporting obligations to the Board of Directors. sustainability-related risks and opportunities; (3) Overseeing stakeholder engagement activities and preparing sustainability

reports; (4) Convening at least one annual ESG Management Committee meeting.The ESG Management Committee operates under the Board Strategy Committee tasked with: (1) Establishing the Company's

ESG strategic framework vision phased development plans annual targets and core policies; (2) Evaluating sustainability- The ESG Management Committee establishes two ESG working groups: the Environmental and Sustainability Working Group

related risks/opportunities with regular reporting to the Board Strategy Committee; (3) Examining sustainability policies and and the Social Responsibility and Comprehensive Governance Working Group. Aligned with the Company's ESG strategic

critical internal management data; (4) Ensuring ESG compliance across business models and organizational structures; (5) roadmap these working groups operate through clearly defined lead departments and collaborating departments that jointly

Coordinating ESG task allocation and internal resource mobilization; (6) Examining the annual ESG Report for deliberation drive the implementation of specific ESG strategic initiatives.approval and disclosure by the Board Strategy Committee.

11 12Stakeholder Engagement

NHU attaches high importance to stakeholders' opinions and suggestions. By establishing diversified communication channels

and maintaining regular dialogues we proactively address inquiries regarding our operational performance and sustainable

development. In alignment with our industry characteristics and business nature we have identified key stakeholder groups

including employees customers shareholders & investors government & regulatory bodies suppliers & business partners and

local communities.Stakeholders Areas of Focus Communication and Response Channels Stakeholders Areas of Focus Communication and Response Channels

● Customer relationship management ● Business ethics and anti corruption

● Official account information disclosure

● Product quality and safety ● Responsible supply chain ● Supplier conference

● One on one communication channel

● Innovation and R&D ● Information security and privacy ● Supplier training

● Factory tour protection

Information security and privacy ● ● Whistleblowing hotline and email

Customers ● protection Customer complaint hotline Suppliers and Partners ● Compliance operation

● Environmental management

● Compliance operation ● Corporate annual reports and Provision of jobs●

●

announcements Biodiversity● Corporate governance ● Official account and website

●

● Risk management ● Field trip

Rural revitalization

● Assisting in infrastructure construction

●

Official account platform Implementing national strategies● Business ethics and anti corruption ● ● Public welfare and charity activities

Community and the Public ● Public welfare and charity

● Return on investment ● Reception Day event ● undertakings Environmental Open Day

Shareholders and Investors

● Information transparency ● Roadshows and special meetings

● Responding to climate change ● Investor relations website

NHU strictly adheres to relevant laws regulations and disclosure requirements by This resulted in a

publishing reports on a regular basis and ensuring timely compliance in material

Compliance operation information disclosure. We maintain active two-way communication with investors ● year-on-year

through both digital and physical channels. In 2024 we implemented the Investor 50%

● Corporate governance Relations Management Policy to further institutionalize investor relations practices. growth in participant

● Responding to government inquiries engagement

● Tax payment according to law Our comprehensive investor engagement program includes online performance

● Participating in government training briefings annual investor conferences on-site communication participation in

● Business ethics and anti corruption

● Regulatory assessment strategy sessions as well as digital platforms and hotline services. This resulted in

●

Government and Regulatory Implementing national strategies a 50% year-on-year growth in participant engagement.● Special meeting

Bodies ● Rural revitalization

● Emission management

● President and General Manager's mailbox

● Employee's rights and interests ● Rational suggestions

● Training and development ● Five mandatory visits and five mandatory

● Occupational health and safety (OHS) conversations

Innovation and R&D ● ● Staff and workers' representative congress

Employees

● Intellectual property protection ● Symposium & communication

● Internal reporting and complaint hotline

13 14Identification and Analysis of Material Topics 2024 Matrix of Dual Materiality Topics

Environmental Social Governance

In 2024 NHU conducted a dual materiality evaluation for sustainable development through a four-phase process: (1) context

analysis & topic identification; (2) dual materiality evaluation; (3) materiality prioritization; and (4) review analysis and

confirmation. This methodology enabled us to systematically assess both the impact materiality and financial materiality of ESG

topics to our organization. Emission ManagementEmployee's Rights and Interests

Resource and Energy Management

Staff Training and Development Occupational Health and Safety (OHS)

Context Analysis and Dual Materiality Materiality Review Analysis and Environmental Management

Topic Identification Evaluation Prioritization Confirmation Circular Economy

Implementing National Strategies

Based on NHU's Stakeholder Through analysis of NHU's ESG

industry characteristics questionnaires were questionnaire findings Management Committee

business priorities and administered with and expert inputs the subsequently reviewed

corporate development distinct versions for Company assessed and approved the

strategy while impact materiality and the degree to which material topics along Innovation and R&D

considering external financial materiality each topic impacts with the finalized Biodiversity Chemical Safety

regulatory requirements assessments enabling environmental materiality matrix for

rating agency focuses the evaluation of each social and economic corporate application. Customer Relationship Management Responding to Climate Change

and incorporating ESG topic's materiality dimensions as well as

feedback from external through these dual business operations

stakeholders the lenses. thereby establishing the Information Security and Privacy Protection Compliance Operation

Company has identified materiality prioritization of Product Quality and Safety

its material topic list. identified topics. Business Ethics and Anti-corruption

Public Welfare and Charity Undertakings Risk Management

Responsible Supply Chain

Corporate Governance

Through synthesizing internal and external stakeholder concerns with our industry context and business attributes we

determined 22 high-priority ESG topics. An extensive survey covering corporate leadership directors supervisors and senior Stakeholder Engagement

management employees shareholders & investors customers government & regulatory bodies suppliers & partners and

community members yielded approximately 250 valid questionnaires. These responses provided multidimensional evaluations

of ESG topics' materiality across environmental management social responsibility and economic value creation dimensions.Financial Importance

1516

Importance of Influence01

Superior Products

Our Actions

NHU leverages digital and intelligent empowerment as a fulcrum to build an intelligent system covering

the entire value chain of R&D production and services. By adopting a dual-track development model

that integrates technological breakthroughs with management upgrades we drive the coordinated

optimization of product performance and the reduction of production energy consumption. Through

digitalization intelligence and continuous innovation we enhance the price-performance ratio of our

products while creating greater value for customers and contributing to a better quality of life. Moving

forward we will deepen the integration of intelligent technologies under the strategic framework of

"technological breakthroughs + management upgrades" continuously refine the economic value of our

products provide replicable paradigms for high-quality industrial development and position superior

high-quality products as a key driver of sustainable societal progress.Our Performance

Contribution to SDGs

Applied for Total valid patents Achieved ISO 56005

17 information 777 Level 4

technology-related honors Certification

17 18Digital and Intelligent Empowerment Digital and Intelligent Actions

Amid the rapid growth of global digital economy digital transformation has become imperative for enterprises to achieve high- By constructing smart factories advancing intelligent operations and cultivating digital & intelligent talents we continuously

quality development. NHU recognizes the critical role of digital transformation aligning with national policies to position it as the deepen the application of cutting-edge technologies and equipment to boost production efficiency.core engine for our high-quality growth. We are committed to enhancing operational efficiency optimizing products and services

and innovating business models through digital and intelligent solutions thereby building core competitiveness and advancing

sustainable development. Smart Factory

Digital and Intelligent Management System NHU has actively advanced the deployment of smart factories under its digital transformation strategic framework achieving

full integration of core business chains including production supply sales and finance. This initiative has realized digitalized

NHU places great emphasis on the development of digital and intelligent management systems. It has established a scientific and refined production management as well as visualized and intelligent production decision-making. Through these efforts

standardized and efficient digital and intelligent project management system providing a solid guarantee for the high- the Company has developed a replicable chemical smart factory model providing industry-specific digital transformation best

quality development of the enterprise. The Company continues to refine its digital and intelligent project methodology based practices. To date smart factory systems have been operationalized in Shandong NHU Industrial Park Heilongjiang NHU

on the enterprise architecture. It has issued the Digital and Intelligent Project Management Regulations and the Intelligent Shangyu NHU and Tianjin demonstrating significant improvements in production efficiency and management effectiveness.Manufacturing System Manual. Additionally it has revised the Application Architecture Management Rules and completed Concurrently the HSE management system has been implemented enabling intelligent real-time monitoring of major hazard

the issuance and dissemination of the four architecture systems involved in the enterprise architecture method. Meanwhile sources Gas Detection System (GDS) data and fire alarm systems thereby enhancing safety and environmental management

the Company has completed the sorting and establishment of the business architecture for data management software capabilities.development and information security and has formulated and implemented a promotion plan. This provides a systemic After years of practice and accumulation several factories and workshops of the Company have received honors related to

guarantee for the standardized management and efficient implementation of digital and intelligent projects. intelligent manufacturing and its industrial Internet platform has been selected for the provincial Internet platform creation list.Xinchang NHU Vitamins Co. Ltd. Zhejiang Vityesun Animal Nutrition and Health Co. Ltd.

2019 Shaoxing Intelligent Manufacturing 2020 Shaoxing Intelligent Manufacturing

Demonstration Workshop Demonstration Workshop

Vitamin Preparation Workshop Vitamin Premix Production Workshop

Zhejiang NHU Co. Ltd. Xinchang NHU Vitamins Co. Ltd.Zhejiang Province Nutrients Digital Workshop 2021 Shaoxing Digital Workshop

Workshop Xinchang NHU Vitamins Digital Workshop

Zhejiang NHU Co. Ltd. Zhejiang NHU Co. Ltd.Zhejiang Provincial Industrial Internet Platform Second Batch of Digital Factories (Unmanned

NHU Intelligent Quality Control Management Platform Creation List Workshops) in Xinchang County

Industrial Internet Platform Workshop

The Company has established an ITPMO (IT Project Management Office) Applied for a total of

mechanism to conduct full-process monitoring and management of core

digital and intelligent projects during the stages of preparation initiation Zhejiang NHU Co. Ltd. Zhejiang NHU Co. Ltd. information-related

implementation and summary acceptance. In 2024 the Company organized 17 Municipal Industrial Internet Platform Provincial Industrial Internet Platform

the evaluation of 22 digital and intelligent projects and summarized and honors

developed replicable and promotable models and templates. These include NHU Smart Factory Integrated Platform NHU Fine Chemical Industrial Internet Platform

guidelines for smart factory development large-scale amino acid chemical

industry projects and operation and maintenance mechanisms for smart

factories. These efforts provide strong support for the standardized construction Shandong NHU Amino Acids Co. Ltd. Shandong NHU Amino Acids Co. Ltd.and experience promotion of digital and intelligent projects. Provincial Smart Factory Provincial Key Industrial Internet Platform

The Company places great emphasis on the application for information technology projects regarding it as an important way NHU Full Process Amino Acids Smart Factory Full-Process Digital Factory Industrial Internet Platform

to showcase digital and intelligent achievements and enhance brand influence. In 2024 the Company applied for a total of

17 information-related honors including 1 national-level honor (currently under application) and 14 provincial-level (including

association) honors (12 of which have been approved and 2 are under review). 2 HSE: Health Safety and Environment.

19 20Shandong NHU Pharmaceutical Co. Ltd. Shandong NHU Vitamins Co. Ltd. Intelligent Operation

Provincial Intelligent Manufacturing Scenarios Provincial Intelligent Manufacturing Scenarios

Holistic Digital Management of Warehouse and The Company has made sustained progress in the development of its intelligent operation system achieving significant Holistic Digital Management of Work Safety

Logistics Operations milestones in data governance financial management R&D innovation manufacturing enhancement and global expansion.These advancements have laid a robust foundation for boosting operational efficiency optimizing managerial decision-making

and strengthening core corporate competitiveness.Heilongjiang NHU Biotechnology Co. Ltd. Heilongjiang NHU Biotechnology Co. Ltd. By centralizing procurement and production data the Company has eliminated data silos across business units establishing

Provincial Smart Factory Provincial Digital Demonstration Workshop integrated data connectivity. This infrastructure provides strong support for business analytics enhancing operational efficiency

and facilitating management decision-making. We have implemented paperless electronic record-keeping in R&D laboratories

Heilongjiang NHU Smart Factory NHU Glucose Digital Production Workshop thereby elevating the scientific rigor and standardization in technological R&D and enabling high-efficiency precision research.The expanded manufacturing platform now features optimized modules for production energy and quality management. Key

functionalities include full-screen dashboard visualization accessible via unified portal authentication.While executing business-enabling system deployments the Company has accelerated the development of digital infrastructure

Heilongjiang NHU Biotechnology Co. Ltd. in its overseas subsidiaries. This initiative has created a replicable global digital deployment framework for international trading

entities extended domestic management systems with localized adaptations and reinforced the Headquarters' operational

Provincial Digital Demonstration Workshop oversight—collectively underpinning the corporation's globalization strategy.NHU Vitamin B12 Digital Production Workshop

Case Intelligent Warehouse System Development

Case Smart Factory Development

NHU has optimized material storage utilization balancing and statistical operations through its intelligent warehousing

NHU aims to become a benchmark enterprise in comprehensive digital transformation. Through the implementation of management system which covers the entire process of procurement sales transfer and inventory counting. The

intelligent manufacturing systems the Company enhances automation informatization digitalization and intelligent system has established warehouse dashboard reports including inventory reports storage location utilization rates

capabilities across all business divisions / subsidiaries. Centered on production process optimization business process and material turnover rates enabling real-time monitoring of warehouse status and enhancing management efficiency.reengineering and management model innovation the Company progressively achieves "visualization transparency The system is deeply integrated with business modules such as procurement sales logistics and production

predictability and self-adaptation" in production processes. This system meets manufacturing management achieving coordination between order warehousing sales delivery and production dispatch. It facilitates inter-company

requirements including decision-making planning execution analysis and evaluation thereby significantly improving material sharing thereby reducing inventory costs. Through data analysis and process optimization the Company has

management efficiency. significantly enhanced operational efficiency decreased offline communication by over 30% and realized digital and

intelligent transformation in warehouse management.The Company has established an intelligent system that covers production planning scheduling

operations energy material and quality management. Through multidimensional data analysis

Application the system extracts production statistics from multi-source data and generates real-time reports to

Scenarios elevate production management standards. To date 100 management dashboards and statistical Cultivation of Digital & Intelligent Talents

reports have been developed with the automated reporting system systematically delivering

operational supply-chain and production information.NHU always attaches great importance to the cultivation of digital & intelligent

talents continuously strengthening training efforts and gradually establishing Created over

By implementing the "Integrated Management" concept the Company achieves vertical control a sound talent training system. We have defined competency standards

and horizontal information integration to eliminate operational discontinuities and ensure data and capability frameworks for core positions across all functional modules. 60 training courses

Business consistency. Adhering to the "Three Integration Systems" principle the Company has realized Specifically we have created over 60 training courses spanning 8 specialities

Path spanning 8 specialities

Optimization unified management of quality control decision-execution alignment and production logistics. This and conducted more than 50 training sessions systematically enhancing

culminates in an intelligent manufacturing control platform that enhances operational efficiency employees' digital intelligence competencies. Furthermore four benchmarking Conducted more than

while reducing production costs. initiatives between the production bases and the Headquarters were

implemented to facilitate cross-organizational knowledge transfer. Targeted training sessions

development programs for three core positions have been designed and 50

The Company has established end-to-end management from sales order to accounts receivable operationalized ensuring talent pipeline sustainability for key positions.Project

Outcomes settlement. This framework drives coordinated production-sales planning and synchronized

manufacturing-logistics execution creating integrated industrial synergies. The Company actively advances smart factory system development leveraging these systems as strategic platforms for digital &

intelligent talent cultivation. In 2024 through digital and intelligent projects across branches subsidiaries and production bases

we have developed business consultants development engineers and graduate trainees forging the core workforce driving our

digital transformation.

21 22Data Security and Customer Privacy Protection

The Company has always regarded data security and customer privacy protection as the lifeline of its development attaching

high importance to relevant system development and management practices. We are committed to providing users with

secure and reliable products and services while respecting and protecting their privacy information. We have established a

comprehensive information security management system conducting annual internal reviews of the system and performing

complete inspections on 13 major control areas in accordance with ISO 27001. Through cross-inspections between the

Headquarters and all production bases we thoroughly investigate potential security risks generate audit results and formulate

detailed rectification plans to ensure full implementation of security measures.In 2024 the Company engaged external professional institutions to conduct attack-and-defense drills that simulate real attack

scenarios testing the effectiveness of the security protection system. Timely rectifications were made based on issues identified

during the drills. During major events and holidays the Company implemented on-duty safeguarding measures performing

penetration tests on application systems to promptly identify and repair security vulnerabilities ensuring secure and stable

system operations. The Company regularly conducts data security and privacy protection training to enhance all employees'

security awareness and skills. This year a total of 76 information security training sessions were conducted covering 100% of

the Company's employees.NHU has obtained

certifications for 1 2

A total of Covering

National High-Tech National "Little Giant" National Manufacturing

76 9 information security training sessions 100% of the Company's employees enterprise Single Champion productsEnterprises

were conducted

China's China's

3 Top 10

Innovation-driven Development Top 100 Fine Top 100 Companies in the Flavor Provincial Gazelle Chemical Companies Listed Companies Sector in China's Light

Enterprises Industry

NHU has always prioritized innovation as a strategic focus driving the Company's high-quality development through

technological product and management innovation. We concentrate on green technology R&D efficient resource utilization and

low-carbon solutions emphasizing industry-academia-research collaboration and intellectual property management to enhance National Key Hidden Won Top 500

operational efficiency through innovation and ensure product quality and safety through compliance. Leading Champion Recognition Petroleum and Chemical

R&D and Innovation Enterprise in the 7th Enterprises in Chinaof Zhejiang Province Award

NHU adheres to the development principles of "integration serialization and synergy" with "Chemistry+" and "Bio+" as core in Agricultural China Grand Awards for

technology platforms. Guided by market demand we implement forward-looking R&D strategies and conduct multi-level Industrialization Industry

innovation encompassing fundamental science "science + technology" and "technology + application". We have established a

comprehensive R&D and innovation management framework formulating regulations such as the R&D Program Management

Regulations and the R&D Program Incentive Management Regulations. The Company has built an organizational structure Product R&D Management

centered on the Research Institute supported by R&D centers of business divisions while strengthening management of

external research units including the Japan R&D Institute and Singapore R&D Institute. In 2024 we optimized the three-tier decision-making process for new products establishing a decision-making model based on

unified principles and quantitative data to achieve hierarchical and categorized product management. This year we successfully

We continuously increase innovation investment and upgrade R&D infrastructure. By aligning academic research with industrial advanced over 10 new products into the R&D phase.needs we actively develop specialized common technology platforms in analysis separation and catalysis. These efforts

accelerate our transformation toward "innovation leadership" and "basic research technologies" laying the foundation for Technology Platform Construction

efficient industrial development. Over the past three years the Company's R&D expenditure has consistently exceeded 5% of

total sales revenue.Guided by the strategy of "accelerating technology application deepening technological expertise and broadening technological

During the reporting period NHU has obtained certifications for 9 National High-Tech Enterprises 1 National "Little Giant" scope" we established a professional technology matrix through internal collaboration and external partnerships achieving

enterprise 2 National Manufacturing Single Champion products and 3 Provincial Gazelle Enterprises. The Company has been significant progress in building both generic and specialized technology platforms. We actively explored digital transformation

recognized as: China's Top 100 Fine Chemical Companies China's Top 100 Listed Companies Top 10 Companies in the Flavor by engaging advanced R&D digital solution providers to develop and deploy a tailored management system integrating modules

Sector in China's Light Industry Top 500 Petroleum and Chemical Enterprises in China National Key Leading Enterprise in for project management experimental task tracking analytical management and resource allocation. This system provides

Agricultural Industrialization and Hidden Champion of Zhejiang Province. Notably NHU won Recognition Award in the 7th China robust support for knowledge accumulation reuse and data-driven decision-making in R&D creating a systematic innovation

Grand Awards for Industry. ecosystem while enhancing the efficiency and precision of R&D management.

23 24Talent Development In 2024 we achieved breakthrough progress in multiple new product R&D initiatives across business segments

building a robust pipeline of products and technologies for future growth:

NHU positions talent development as the cornerstone of its innovation ecosystem driving sustainable growth through effective

cultivation mechanisms. The Company maintains a high-caliber R&D team where 31.81% hold master's degrees and 2.79% The Nutraceuticals segment

hold doctoral degrees. We implement an innovation incentive system featuring milestone-based bonus packages for product

development projects and technology initiatives. This results-oriented mechanism proportionally rewards achievements at critical Several "Bio+" innovations achieved industrialization with select fermentation products reaching industry-leading yield levels.development stages effectively motivating researchers' creativity while enabling rapid market responsiveness and technological

breakthroughs.The Company actively expands collaborations with renowned domestic and international universities and research institutions

building a diversified industry-academia-research innovation network. We conducted multiple technical exchanges with The Flavors & Fragrances segment

institutions including Xiamen University Lanzhou University Lanzhou Institute of Chemical Physics (CAS) and the University

of Oxford resulting in 32 substantive collaborations. Long-term partnerships have been established with Zhejiang University Enhanced industrial chain competitiveness through new products and processes expanding into emerging sectors including

the Chinese Academy of Sciences (CAS) Beijing University of Chemical Technology Jiangnan University and the Technical UV protection and moisturization.University of Denmark. By funding cutting-edge basic research at universities NHU integrates its strengths in talent technology

capital and platforms to accelerate the industrialization of scientific achievements.Shandong NHU Vitamins Co. Ltd. has established the Shandong Postdoctoral Innovation Practice Base certified by the The Specialty Materials segement

Shandong Provincial Department of Human Resources and Social Security. This marks a key achievement in deepening

industry-academia-research integration. This platform serves as a bridge connecting enterprises with universities and research Made strides in differentiated product R&D with new resin grades entering high-end modification applications.institutes for high-level talent cultivation and technological innovation significantly enhancing the Company's R&D capabilities

while contributing to industry advancement and sustainable development.R&D Team Total number R&D Team Proportion The Active Pharmaceutical Ingredients (API) segment

2867 Persons 25.22% Multiple products obtained CEP certifications and domestic market authorization approvals.

R&D team where R&D team where

31.81% hold master's degrees 2.79% hold doctoral degrees This year we completed 76 technical transformation projects. Through green process Completed innovations product quality enhancements and circular economy implementations

we revitalized existing product upgrades ensured consistent production quality and technical

elevated customer satisfaction. 76

transformation projects

Product R&D Achievements

Case Plant-based Raw Material Product R&D

Our product R&D has garnered widespread industry recognition with honors including the National Technology Invention Award

China Patent Gold Award petrochemical and light industry awards and the Zhejiang Provincial Technology Invention Award:

NHU has achieved significant breakthroughs in the R&D of plant-based raw materials successfully creating

lignosulfonate-based (plant-based) feed-grade carotenoid products. To address the growing market demand for plant-

based feed solutions the Company established a cross-functional team comprising R&D specialists engineers market

analysts and quality control personnel. The team set clear objectives to replace traditional porcine gelatin systems

Key Technology A Recombinant Microorganism Green Synthesis Technology

Development and Its Preparation Method and Development and with lignosulfonate-based formulations while accommodating religious dietary requirements (e.g. Halal Kosher)

Industrialization of Application in Coenzyme Q10 Industrialization of High-Quality and animal-origin-related specifications. Through rigorous analysis of global feed regulations the team ensured full

Fragrance-Type Series Production and Preparation Method DL-Methionine was selected

Flavor Products was of Polyphenylene Sulfide Resin for the First Prize in compliance and conducted comprehensive studies on the chemical composition physicochemical properties and

awarded the First Prize in the and Resulting Product received Shandong Provincial Science functional characteristics of lignosulfonate to identify optimal raw materials for feed-grade applications.

2024 Technology Invention Outstanding Awards at the & Technology Awards

Awards by China National 25th China Patent Awards The R&D team refined the formulations through experimental optimization ensuring stability digestibility and growth-

Light Industry Council enhancement performance in feed applications. The products passed stability tests during both pilot-scale and mass

Outstanding production with feeding trials in poultry and aquaculture demonstrating efficacy in growth promotion and carotenoid First Prize Awards First Prize deposition. Customer validation confirmed superior product quality establishing a strategic foundation for NHU's

expansion in the plant-based feed market.

25 26Case Nutritional Health Product R&D

Implementing the ISO 56005 standard with Level 4 certification we have enhanced lifecycle IP

management spanning pre-development active R&D and post-commercialization phases. We have

Proactive IP conducted targeted IP clearance searches to mitigate infringement risks.Vitamin E a critical fat-soluble nutrient exhibits multiple physiological functions including antioxidant Review

protection anti-inflammatory activity and lipid metabolism regulation. It finds extensive applications across

the food processing cosmetics dietary supplements pharmaceuticals and animal nutrition industries. NHU

possesses proprietary vitamin E synthesis technology which has been continuously optimized through Collaborating with the legal division we have updated technology partnership agreements to include

technological advancements to enhance product quality reduce production costs and sustain our competitive explicit IP ownership clauses. We have executed Freedom To Operate (FTO) analyses for strategic

edge in the global vitamin E market. Risk projects established continuous competitive intelligence monitoring and strengthened internal risk

Prevention alert systems.and Control

Regarding feed-grade product nutrition innovation we have conducted groundbreaking research. Our R&D

team systematically investigated the crystallographic forms particle size distribution and cis-trans isomer ratios

of carotenoids to develop astaxanthin canthaxanthin and apo-ester products with superior bioavailability. The

Company's nutrition research focuses on critical issues such as protein resource scarcity developing single- Partnering with external entities on trade secret protection programs we have upgraded classified

cell protein (SCP) as an alternative high-quality protein source with established partial substitution protocols. information systems and revised the Technical Data Confidentiality Management Regulations to fortify

Concurrently studies explore replacing inorganic mineral elements with organic forms to enhance trace element Confidentiality

Enhancement safeguards.utilization efficiency and reduce environmental emissions.As of December 31 2024 NHU maintains 777 valid patents worldwide providing robust protection for innovation achievements

Intellectual Property Protection across all core products.This year Zhejiang NHU Special Materials Co. Ltd. received both the China Patent Excellence Award and was designated as

NHU places a high priority on protecting its trade secrets while fully an Innovative Small and Medium Enterprises in Zhejiang Province. Shandong NHU Pharmaceutical Co. Ltd. became a finalist

respecting the legal rights of third parties. To this end we have for the 25th China Patent Excellence Award. To date the Company has been honored with 2 China Patent Gold Awards 1 China

established a comprehensive intellectual property (IP) management Patent Silver Award 3 China Patent Excellence Awards and 2 Second Prizes in the National Technology Invention Awards.system to effectively safeguard our innovation achievements. The

Company has developed a suite of IP governance documents

including the Intellectual Property Management Framework

Patent Management Regulations Intellectual Property Emergency Maintains

Response Plan and Product Patent Portfolio & Confidentiality 2 1

Review Procedures. These are complemented by the Trademark 777 valid patents

Management Regulations to protect trademark rights and maintain China Patent Gold China Patent Silver

worldwide Awards Award

brand integrity. As a national leader in IP protection NHU has

achieved ISO 56005 certification for Innovation Management

Systems the international standard for innovation and IP

management thereby systematically enhancing our IP governance

capabilities. NHU has achieved ISO 56005 Level 4 Certification 3 2

NHU ensures that all products and services strictly comply with IP China Patent Excellence Second Prizes in the National

regulations and do not infringe on any third-party rights. We also Awards Technology Invention Awards

legally require our business partners to adhere to equivalent IP

compliance standards for their products or services.NHU's 2024 Key Intellectual Property Initiatives NHU has implemented a structured IP awareness enhancement Conducting

program conducting 9 internal training sessions in 2024 with

over 10000 participant engagements. The curriculum covered 9 internal training sessions on IPessential IP competencies including patent innovation evaluation

IP risk assessment and mitigation strategies patent and database

Through comprehensive analysis of industrial ecosystems market trends and competitive landscapes utilization and confidentiality training. Over

Patent we have filed patents in high-efficiency strains and formulation technologies. We have also optimized

Portfolio protection for nylon industry chain projects and established multidimensional patent barriers.Strategy 10000 participant engagements

27 28Our tiered training framework ensures role-specific development: Product Quality and Safety

NHU always regards product quality and safety as the core elements of enterprise development and is

Specialized Field Training committed to providing customers with safe and reliable products.To address the unique requirements of the biological field we engaged experienced former patent examiners Quality Management System

specializing in biological patents to conduct targeted training sessions ensuring practical integration with actual

workflows. The Company has established a comprehensive and advanced quality management system. The Chief Engineer's Office at the

production base oversees product quality and safety while the Quality Assurance Department formulates quality criteria and

conducts random inspections on finished products. Several departments collaborate on process safety management forming

a multi-department coordinated mechanism for quality and safety control. NHU has obtained certifications and maintains

compliance with internationally recognized standards including ISO 9001 ISO 14001 ISO 45001 FAMI-QS ISO 22000

R&D Personnel Training BRCGS FSMA HALAL NSF and GMP. The Company has established quality management protocols such as the Quality Laws

and Regulations Identification Evaluation and Compliance Monitoring Regulations Production Process Quality Monitoring

To enhance R&D personnel's patent application capabilities we conducted specialized training on: patent

Regulations and Hazardous Materials Sales Management Regulations covering the entire product lifecycle from R&D

inventiveness assessment and mining; technical disclosure drafting; and patent/literature database utilization. production and sales to after-sales services. Strict quality control standards have been implemented for each product to ensure

These sessions aimed to improve both the quality and efficiency of patent applications. consistent quality and reliability. During the reporting period no major quality-related incidents involving products or services

occurred.Product Design and Development

Training of the Management

For the management we engaged senior experts from certification agencies to deliver specialized training on trade NHU conducts in-depth analysis of customer requirements and performs comprehensive risk assessments. Both

secret protection strengthening the leadership's confidentiality awareness. customer requirements and quality standards are integrated into product design to proactively mitigate potential quality

and safety hazards from the design phase.Product Production

Company-wide Training

NHU continuously refines production processes through customer requirements alignment and industry benchmarking.During Intellectual Property Month we conducted comprehensive IP education covering fundamental IP knowledge It implements globally recognized quality assurance methodologies and process control techniques to optimize

and confidentiality awareness training. All employees were required to participate achieving a near 100% production efficiency while maintaining stringent quality standards.completion rate.Quality Risk Control

Additionally for key positions such as IP roles and innovation management roles we conducted approximately 8 external

training sessions to enhance their professional quality and business capabilities. The external training topics included enterprise By applying quality management tools and risk identification methodologies we have established a product risk control

IP management patent practice courses new IP standards use of innovation methods application of large models in the system. This includes: Regular specialized risk assessments; Identification of critical control points with corresponding

biopharmaceutical industry and data IP. mitigation measures; Periodic review and validation processes; Preventive testing for emerging quality and safety

issues. The systematic approach ensures consistent product quality and safety compliance.Training for NHU Management Participating in the Innovation Method Promotion and Application

Training organized by Shaoxing Municipal Authorities

29 30To strengthen company-wide quality awareness NHU

actively conducts comprehensive quality training programs Case Strengthening Quality Management by Zhejiang NHU Special Materials Co. Ltd.covering quality-related regulations quality management

system knowledge and quality risk control requirements. In

2024 through the "Quality Month" initiative the Company Zhejiang NHU Special Materials Co. Ltd. continuously explores and innovates in quality management. Adhering to

delivered specialized training sessions on HACCP3 a customer-centric quality philosophy the company has established a comprehensive quality management system

analysis FMEA4 methodology implementation and quality centered on its Management Manual. By implementing Total Quality Management (TQM) quality management

management tool applications. These efforts effectively practices are integrated throughout the entire product lifecycle.enhanced personnel capabilities in critical control point

● Conduct regular ISO 9001 compliance training to strengthen team competencies.management and hazard identification. Concurrently NHU

implemented site management SOP5-focused training and ● Establish a Quality Control (QC) plan to monitor the production process in real-time.standardized technical proficiency competitions to upgrade ● Optimize quality information management systems to boost cross-functional collaboration.job-specific competencies. This approach embeds the

customer-centric quality philosophy while continuously NHU has set non-negotiable quality thresholds and compliance baselines to reinforce operational rigor within its Quality

advancing quality management excellence. Management System (QMS). By establishing SOPs and risk prevention mechanism the enterprise ensures process

stability across operations. Through systematic and refined quality management the company has enhanced its

product quality and customer satisfaction thereby facilitating sustainable development.Product Recall

NHU has developed a food additive Recall Control Procedures in compliance NHU maintained

with HACCP principles ISO 22000 BRCGS7 standards and China's Food

Recall Management Regulations. These procedures establish defined response product recalls

workflows for safety incidents enhancing operational resilience during 0

emergencies while mitigating stakeholder losses. All branches subsidiaries and attributable to quality

DOE Training6 Quality Training business divisions implement the recall mechanisms through periodic simulation

deficiencies

exercises ensuring crisis management readiness. In 2024 NHU maintained zero

product recalls attributable to quality deficiencies.

3 HACCP (Hazard Analysis and Critical Control Point): This is a management system used to ensure food safety. The core principle is to prevent

food safety issues by identifying and controlling potential hazards in the food production process.

4 F MEA (Failure Mode and Effect Analysis): This tool can identify potential failure modes and causes in product and process design so that

personnel can take necessary measures to reduce potential risks. 7

5 BRCGS Standard: BRCGS certification (British Retail Consortium Global Standards) is a global food safety standard originally developed and SOP: Standard Operating Procedure. published by the British Retail Consortium in 1998 aimed at ensuring the safety and quality of the production and supply chain of food and

6 DOE: Design of Experiments. This training can help participants learn how to design and implement experiments analyze and infer the other consumer goods. BRCGS certification is an internationally recognized food safety and quality mark applicable to fields such as food

relationships between various experimental factors. beverages and personal care products.

313202

Harmonious Society

Our Actions

On the path to sustainable development NHU fosters internal cohesion by upholding integrity and

self-discipline through standardized operations. This has earned the Company widespread respect

and steadfast support from employees. Externally NHU expands its social responsibility footprint

by empowering industrial development through the delivery of high-quality services and products

thereby contributing to a more harmonious social ecosystem. While driving our own growth we

remain committed to social responsibility through active participation in public welfare and charity

programs collectively shaping a sustainable future.Our Performance

Annual customer Total employee training

satisfaction index

hours

92.64 points 478910 Contribution to SDGs

Signing rate of the "Integrity Agreement"

among the management and employees

100%

33 34Compliance Governance Risk Governance

NHU strictly adheres to corporate governance laws and regulations as well as the provisions of the Articles of Association. The Company continuously enhances its risk management framework to ensure NHU was honored

The Company has established a comprehensive governance framework including Rules of Procedure for the General operational stability. During the reporting period we further optimized risk identification among the "2024

Meeting of Shareholders Rules of Procedure for the Board of Directors Rules of Procedure for the Supervisory Board and and mitigation framework by refining the risk register with new additions including

Working Guidelines for the General Manager. These documents clearly delineate the responsibilities of the General Meeting information security HSE risks personnel risk inventory and legal risks inventory for Top 30

of Shareholders Board of Directors Supervisory Board Chairman and President ensuring a standardized and efficient bidding and tendering processes. To address overseas secondment risks we updated Best Internal Control

governance structure. the Overseas Short-term Assignment Safety Guidelines based on operational needs Awards for Zhejiang

and host country risk profiles. The implementation of electronic signature systems Listed Companies"

The Board of Directors upholds the principles of independence and diversity of expertise with members possessing was accelerated through revised Digital Seal Management Protocols strengthening

professional knowledge in chemical engineering accounting and legal affairs to ensure informed and effective decision- controls over authorization risks.making. In 2024 NHU's Board of Directors comprised 11 directors including 4 independent directors and 7 non-independent

directors. Throughout the year the Company held 8 Board meetings 4 Supervisory Board meetings and 3 General Meeting of The Company implements targeted risk management training programs including compliance training for directors supervisors

Shareholders refining management procedures for critical matters through these governance mechanisms. and senior management under the revised Company Law of the People's Republic of China. Recognized for outstanding

risk governance capabilities NHU was honored among the "2024 Top 30 Best Internal Control Awards for Zhejiang Listed

Companies".In 2024 NHU's Board of

Directors comprised 4 7 Business Ethics

11 Directors Independent directors Non-independent directors

NHU strictly complies with applicable laws regulations and business ethics standards in conducting operations. We develop

The Company held 4 3 and maintain business relationships exclusively with partners committed to principles of integrity probity and fair practice the Company has established comprehensive governance documents including the Business Ethics Governance Procedures the

8 Board meetings Supervisory Board meetings General Meeting Management Discipline Regulations and Notice on Implementing Integrity Management Requirements which explicitly address

of Shareholders anti-bribery anti-corruption and fair competition provisions while institutionalizing ethical compliance initiatives. The Board of

Directors bears ultimate responsibility for leading overseeing and decision-making in business ethics governance.Compliance Management During the reporting period we conducted systematic integrity risk assessments for high-risk positions with decision-making authority over human resources financial allocations and material procurement. The identified control enhancements have been

incorporated into our 2025 Internal Control Optimization Roadmap to establish a closed-loop management system.In 2024 under the oversight of the Board of Directors the Supervisory Board and the General Meeting of Shareholders the

Company implemented the requirements of the newly amended Company Law of the People's Republic of China and revised The Company maintains an absolute zero-tolerance stance against corrupt practices. To strengthen anti-fraud safeguards we

internal governance documents including the Internal Control System. For high-risk areas identified in operational activities have enhanced whistleblowing mechanisms and mandated heightened scrutiny of potential misconduct during internal audits.- such as holding subsidiary governance related-party transactions fundraising management external investments and All personnel including directors supervisors senior management and employees completed mandatory anti-corruption training

information disclosure - the Company has established dedicated management mechanisms. These include multi-tier approval with 900+ newly onboarded and transferred staff signing Integrity Commitment Letters in 2024.processes and cross-functional review mechanisms to mitigate risks and ensure robust internal control effectiveness.NHU extends its integrity principles to supplier relationships through mandatory integrity clauses in procurement contracts. The

newly revised Supplier Integrity Agreement Template (2024 Edition) establishes standardizes compliance requirements for all

Internal Audit contractual engagements. No corruption-related litigation cases occurred during the reporting period.The Company maintains an independent internal audit function staffed by full-time auditors. This function encompasses financial

audits business ethics compliance audits post-employment accountability audits and economic responsibility audits. The Audit

Committee oversees all audit procedures while the Chief Audit Executive reports directly to the Board of Directors thereby

safeguarding the impartiality objectivity and autonomy of audit operations.Information Disclosure

The Company has established a strict information disclosure regulatory framework The Company has

including the Information Disclosure Management Regulations Insider Registry maintained a

Management System and Annual Report Material Misstatement Accountability

Procedures. These documents establish comprehensive standards governing the " " rating in the

fundamental principles content requirements division of responsibilities among A

departments documentation review and release processes as well as accountability Shenzhen Stock

mechanisms. The Company has maintained a "A" rating in the Shenzhen Stock Exchange's information

Exchange's information disclosure evaluations for 16 consecutive years. disclosure evaluations for

16 consecutive years

35 36The whistleblowing handling process is as follows

Indicator Data in 2024 Unit

The Management's Signing Rate of the Integrity Agreements 100 % Whistleblowing Acceptance

Employee's Signing Rate of the Integrity Agreements 100 % 1 ● After receiving a whistleblowing matter the integrity department of each unit shall report the information to the

Discipline Inspection and Supervision Department within 5 working days for unified registration and circulation.Coverage Rate of Anti-corruption Training 100 %

Directors 11 Person

Number of Supervisors 5 Person

Anti-corruption Whistleblowing Investigation

Training

Participants Senior Management 4 Person 2 ● Establish an investigation team comprising two or more members based on case requirements designate a team leader analyze the circumstances and formulate an investigation plan; collect evidence conduct

Employees 11365 Person interviews with relevant personnel and prepare an investigation report. The investigation process strictly

follows the Company's rules as well as national laws and regulations to ensure fairness and accuracy.Fair Competition

The Company upholds fair competition principles in strict compliance with applicable laws Coverage Rate of Anti- Handling Decision

and regulations including the Anti-Monopoly Law of the People's Republic of China and corruption Training

the Anti-Unfair Competition Law of the People's Republic of China. We have established ● Decision Execution: The case shall be handled according to the Management Discipline Regulations including

Competition Compliance Management Regulations to proactively reject unethical or 100% supervisory recommendation interview yellow card warning demotion/removal (dismissal) or termination of unlawful business practices ensuring all operations maintain fairness and integrity while the employment contract.effectively mitigating antitrust risks. A systematic approach has been implemented to

● Pending Verification: The clues show a certain degree of verifiability but verification must be temporarily

regularly consolidate competition-related regulatory updates and precedent cases into our 3 deferred due to objective constraints until conditions become favorable for proper verification.Competition Compliance Handbook: Case Studies & Regulatory Guidelines. Furthermore

the Company integrates competition compliance risk inspections into project audit ● Wrap up: The clues are verified to be unsubstantiated or verification is possible.activities producing standardized audit reports that: evaluate competition compliance risk ● Transfer to Judicial Authorities: If serious illegal facts are found upon verification subject to criminal

controls; and standardize ongoing compliance monitoring procedures. prosecution the case will be transferred to judicial authorities.Case Anti-monopoly Self-assessment by the Active Pharmaceutical Ingredient (API) Division

The Company has proactively advanced anti-monopoly compliance initiatives within its API Division. A dedicated risk

assessment was conducted in response to the Anti-Monopoly Guidelines for the Pharmaceutical Sector (Draft for

Comment) culminating in the issuance of the API Division Self-Inspection Risk Assessment Report Based on the

Draft Pharmaceutical Guidelines. Furthermore two specialized training sessions entitled Interpretation of Fundamental

Anti-Monopoly Legal Framework and Guidance on Anti-Monopoly Compliance in the Pharmaceutical Sector were

conducted. These measures have enabled the API Division to enhance the comprehensiveness of its compliance risk

assessment framework thereby effectively mitigating potential regulatory violations.Whistleblowing Handling Procedure

NHU has established the Management Discipline Regulations and the Employee Reward and Punishment Management

Measures to standardize the conduct of management and employees. A formal whistleblowing process has been implemented

with dedicated integrity supervision hotlines reporting email and President/General Manager's mailboxes to provide multiple

reporting channels. The aim is to correct misconduct promptly with the purpose of rehabilitating and educating the management.At the same time we actively safeguard whistleblowers' legitimate rights and interests strictly protecting their personal

information and the content of their reports while providing timely feedback on investigation outcomes—fostering a clean and

upright work environment.

37 38Employee Well-being Indicator Data in 2024 Unit

Total Number of Employees 11369 Person

Guided by a human-centric development philosophy the Company has established an employee governance framework Total Number of Disabled Employees Employed 34 Person

centered on talent potential optimization and holistic well-being enhancement. Through integrated empowerment mechanisms

we facilitate employee professional advancement while safeguarding physical and psychological health. Our diversity & inclusion Total Number of Employed Veterans 210 Person

strategy fosters a collaborative innovation ecosystem where organizational agility synergizes with humanistic values driving

symbiotic value co-creation between the enterprise and its employees. Number of New Employees 778 Person

Compliance Employment and Human Rights Protection Employee Turnover Rate 5.07 %

NHU strictly complies with the Labor Law of the People's Republic of China and the Labor Contract Law of the People's Republic Compensation and Benefits

of China to regulate employee recruitment and employment management. We have established internal regulations including

the Anti-Discrimination Anti-Harassment and Anti-Abuse Management Regulations and the Prohibition of Forced Labor NHU adheres to the principles of fairness and value co-creation establishing a remuneration system based on job value

Management Regulations firmly opposing human rights violations such as child labor forced labor and discriminatory practices. evaluation to ensure gender pay equity and provide market-competitive compensation and benefits. In compliance with national

In the reporting year NHU maintained a clean record with 0 incidents of child labor workplace harassment discrimination or statutory requirements the Company contributes to social insurance and housing provident fund for all employees. Additionally

labor disputes. through performance evaluation and incentive mechanisms we align employees' contributions with their career development.Guided by the "contributor-centric" philosophy NHU implements initiatives such as management innovation awards and project

NHU is dedicated to fostering a diverse and inclusive workplace through institutionalized mechanisms and systematic achievement awards enabling core employees to share corporate growth dividends while fostering organizational vitality and

implementation of our Anti-Discrimination Anti-Harassment and Anti-Abuse Policy. The principle of equity is embedded innovation.throughout the employee lifecycle from talent acquisition to development retention and succession planning - ensuring

equal opportunities and value co-creation across all departments in job placement performance appraisal promotion Adhering to the principle of "Harmony" NHU regards employees as the foundation of corporate development. We attentively

recommendations and incentive allocation. We rigorously uphold gender equality in recruitment practices fully complying with address the needs of every employee offering comprehensive support in work life mindset and health. Care initiatives such

national regulations to prohibit any form of discrimination based on gender or marital status while providing female employees as regular health checkups recuperation leave and hospitalization mutual aid have been implemented. Facilities including

with equitable career advancement opportunities. gyms libraries basketball courts and decompression rooms are provided to promote physical and mental well-being further

enhancing the employee benefits system. We strive to create an inclusive and harmonious workplace for female employees by

offering not only standard health checkups but also exclusive benefits such as antenatal leave maternity leave and lactation

leave fully demonstrating respect and support for women in the workplace.To accelerate employee development NHU has established a mentorship platform between junior and senior staff under the

guidance of the “Teacher Culture” philosophy facilitating experience sharing and personalized career roadmaps to help young

professionals achieve rapid career progression. Additionally the Company focuses on building team cohesion by creating a

Number of Employees by Gender Number of Employees by Age variety of employee clubs based on individual interests and hobbies. It also carefully plans sports and cultural activities as well

as distributes benefits during important moments such as employee birthdays festivals and corporate anniversaries. These

initiatives cultivate a sense of belonging and organizational identity ultimately driving synergistic growth between individuals and

the enterprise.

535

2244

91254742

5%

20%

80%42%

6092

53%

Male Female Under 30 years old 30-50 years old Over 50 years old

39 40Employee Communication Employee Care

NHU respects and values the opinions and suggestions of every employee establishing diversified and multi-tiered NHU regards talent as the primary resource and consistently implements the “Teacher Culture” to advance a culture of care.communication channels and platforms. Through thorough implementation of the "Five Mandatory Visits and Five Mandatory The Company consistently prioritizes employees' physical/mental well-being and professional development. Through regularly

Conversations" mechanism we effectively monitor employees' psychological status and professional/personal needs ensuring organized cultural and recreational activities including storytelling sessions team-building events and recreational sports

timely identification and resolution of issues. The Company maintains a dedicated General Manager's Mailbox that encourages competitions we help employees alleviate work-related stress while enhancing workplace satisfaction and organizational

both named and anonymous feedback complaints and suggestions with strict confidentiality protections for whistleblowers to commitment thereby fostering a supportive and collaborative work environment. To accommodate diverse employee interests

foster a secure and transparent communication environment. In 2024 NHU conducted a five-month staff canteen satisfaction NHU has established officially registered clubs for yoga football basketball traditional lacquer fan crafting baking and other

survey implementing dynamic management improvements based on monthly feedback that resulted in progressively enhanced hobbies enabling staff to cultivate personal interests beyond work responsibilities and maintain healthy work-life integration. The

satisfaction levels. Company has also developed comprehensive welfare facilities across its production bases including standardized basketball

courts fully-equipped fitness centers and the NHU Town community complex providing employees with comfortable and

We conduct regular employee symposiums and Staff and Workers' Representative Congresses to create open and inclusive accessible spaces for both professional and leisure activities.dialogue platforms. These platforms enable employees to share professional experiences developmental challenges and

improvement proposals serving dual purposes of informing management decision-making and strengthening cultural alignment NHU has established a structured employee care mechanism providing professional services such as mental and physical

and organizational commitment. In compliance with legal requirements NHU has established a Labor Dispute Mediation health consultation legal aid children's school enrollment support and green channels for medical treatment effectively helping

Committee comprising employee representatives administrative personnel and trade union delegates. Operating under employees solve problems in both work and life.principles of fairness and impartiality the committee ensures prompt resolution of workplace disputes at early stages thereby

safeguarding employee rights while supporting sustainable corporate development. Case NHU Fun & Spirit: Team Games Showcasing Talent

On November 8 2024 NHU successfully conducted

● 1. Mandatory visits are required for employee life events including marriage bereavement and its Annual Staff Sports Festival engaging nearly

childbirth (covering childbirth for female employees marriage ceremonies and bereavement

of employees or their immediate family members (spouse children parents or spouse's 200 participants from cross-functional departments.parents)); The event featured four team-based recreational

compet i t ions where employees demonstrated

● 2. Mandatory visits are required for employees hospitalized due to illness or accidental exceptional collaborative spirit and organizational

injuries; cohesion. This initiative not only created valuable

Five Mandatory opportunities for physical engagement and interpersonal

Visits ● 3. Mandatory visits are required when employees experience exceptional hardships (defined

as major natural disasters or family emergencies); connection but also embodied the corporate morale of

"Dynamic Vitality and Progressive Excellence" thereby

● 4. Mandatory visits are required for severe domestic disputes (including domestic violence reinforcing organizational alignment and cultural

divorce proceedings or failure to fulfill child-rearing/elder-care obligations); cohesion. Recreational Sports

● 5. Mandatory visits are required for seconded employees supporting project construction (as

defined in the Seconded Personnel Management Regulations).Case Hearts Aligned: NHU's Warm Connection Between Employees and Organization

Throughout 2024 the Labor Union of NHU Shandong Production Base coordinated with subsidiaries to execute

targeted employee assistance programs. These initiatives provided support to nine employees experiencing temporary

● 1. Mandatory conversations are required during employee onboarding position transfers hardships through personalized visits and financial aid totaling CNY 117000. Aligned with our corporate social

or employment separation; responsibility commitments the company maintains structured protocols for needs assessment and timely intervention

● 2. Mandatory conversations are required for workplace conflicts emotional distress or demonstrating organizational empathy through concrete actions and sustained engagement.mental health concerns;

● 3. Mandatory conversations are required for employees receiving S C or D ratings in the

annual performance evaluation; Five Mandatory

Conversations

● 4. Mandatory conversations are required for employees subject to disciplinary actions due

to violations of laws regulations or company policies; Staff Training and Development

● 5. Regular conversations are mandated with core personnel (including frontline supervisors

and above mission-critical positions graduate employees PhD researchers and NHU places great emphasis on employee training and development having established a comprehensive career-cycle training

management trainees). system that provides diverse and multi-tiered learning platforms with tailored growth pathways. Through innovative initiatives

including campus recruitment programs talent subsidy policy implementation and a doctoral talent database development we

strategically attract and nurture high-caliber professionals. This enables them to maximize career potential and achieve personal

value fostering a mutually beneficial synergy between individual growth and organizational advancement.

41 42Employee Promotion Staff Training

NHU has established a comprehensive career-long training system covering multiple dimensions including new employee onboarding

NHU has developed a scientific and well-structured employee career development system focusing not only on enhancing the training position-specific skill enhancement technical expertise development and management capacity building. The Company

capabilities of current employees but also on cultivating backup talents. The Company offers a dual-track career progression develops annual training programs that systematically guide the implementation of structured learning initiatives. Employing a blended

system (management and professional sequence) providing diversified development options. Promotional assessments for both learning approach that combines online and offline formats with internal faculty and external specialists the organization ensures

tracks strictly adhere to performance-driven and competency-based principles ensuring equitable and transparent selection industry-relevant and future-oriented training content. Through meticulously designed curricula encompassing corporate culture

processes. Additionally NHU facilitates internal mobility opportunities with corresponding training support enabling employees professional ethics technical expertise and managerial competencies the programs holistically enhance employees' comprehensive

to chart optimal career paths aligned with personal aptitudes and organizational needs. quality and operational capabilities.Anchored in three flagship programs - Yuan Hang Qi Cheng and Yang Fan - the Company implements a tiered talent development

framework combining theoretical instruction practical project work and mentorship systems. For technical expertise certification

Management Grassroots management → Middle management → Senior management successively undergo programs such as Equipment Technology Expert Certification and Workshop Management Leadership Program have been established

sequence Yang Fan Qi Cheng and Yuan Hang programs to cultivate backup talents to cultivate technical specialists and modernize workshop management driving the organization's strategic transformation toward

youthful dynamism and professional excellence.Capitalizing on digital learning advancements NHU provides global-standard courses and industry-leading knowledge through its

XiaoXin Digital Academy platform empowering employees to expand professional horizons and strengthen competitive edge. The

Company actively encourages employee participation in external training and degree advancement programs while regularly hosting

Professional Proficient-level → Advanced-level → Expert→ Senior Expert → Chief Expert with talent development premium academic conferences to provide enriched learning resources and growth opportunities fostering synergy between personal

sequence implemented through the establishment of learning path maps. development and organizational objectives.NHU's annual training

In 2024 NHU's annual training investment totaled CNY 7.06 million with cumulative investment totaled CNY

training hours reaching 478910 across the workforce. This equates to an average of 42.12

Additionally in the cultivation of management trainees and Future Stars the Company launched the 2024 NHU Future Stars/ training hours per employee and achieved 100% training participation rate throughout the

New Horizon Development Program in July 2024. Implementation effectiveness is monitored through monthly feedback sessions organization. 7.06 million

to ensure continuous optimization and precise execution.With cumulative training An average of Achieved

hours reaching

Management sequence 478910 42.12 training 100% training across hours per employee participation rate throughout

Current executive Newly appointed and backup the workforce the organization

management

Senior management Yuan Hang program Case Next-Gen Talent Cultivation: Institutionalizing Mentorship Traditions

Middle management Qi Cheng program

NHU conducted structured onboarding programs including the "Mentorship Journey"

Grassroots management Yang Fan program bootcamp for new graduate hires. Through blended learning approaches encompassing

online learning face-to-face classroom physical training personal development activities

and collaborative workshops new employees gained comprehensive understanding of

Individual development plan corporate culture rules and regulations industry knowledge and career development

pathways. These initiatives effectively fostered professional ethics enhanced essential

workplace skills and strengthened alignment with NHU's distinctive "Teacher Culture" New Employee Onboarding

facilitating successful transition from academic environments to corporate professionalism.Professional sequence Training

Chief Expert

Senior Expert

Expert Leading

Advanced-level Innovation synergy development

Proficient-level Overcoming transformation

incubation

Professional challenges circular

empowerment and and strategic

Cultural integration training integrating tactical framework advancement

skills development training with

and goal execution practice and tactical

building

implementation "Mentorship Journey" Bootcamp for NHU New Graduate Hires Personal Growth Activities for NHU New Graduate Hires

NHU Dual-track Career Progression System

43 44Occupational Health and Safety (OHS) Work Safety

NHU regards work safety as a precondition of corporate operations. The Company not only maintains rigorous internal safety

NHU strictly complies with OHS laws and regulations including the Work Safety Law of the People's Republic of China the

management but also extends compliance requirements to suppliers and contractors. We have formulated the Contractor HSE

Occupational Disease Prevention and Control Law of the People's Republic of China the Fire Protection Law of the People's

Management Regulations and HSE Management Regulations for Related Parties clearly requiring contractors to adhere to work

Republic of China and the Regulations on the Safety Management of Hazardous Chemicals. We actively benchmark against

safety standards and implement operational safety protocols throughout project execution.industry best practices such as the Guidelines for Chemical Process Safety Management (AQ/T 3034) and the Guidelines for

Inherent Safety Assessment of Chemical Processes (T/CCSAS 044) to establish a comprehensive OHS management system.The Company has developed and implemented comprehensive internal regulations including the HSE Risk Management

Regulations Work Safety Information Management Regulations Process Hazard Analysis Management Regulations Accident

and Incident Management Regulations Factory Change Management Regulations Contractor HSE Management Regulations Pre-contractual Conduct compliance verification of contractor qualifications and

HSE Training Management Rules Occupational Disease Prevention and Control Measures Management Regulations for personnel certifications maintain valid documentation with explicit

Identification and Monitoring of Occupational Disease Hazards and Occupational Health Surveillance and Records Management accountability for record integrity.Measures. These collectively form an HSE management system that comprehensively covers all aspects of OHS management.We provide work-related injury insurance for all employees and have invested CNY 1226300 in purchasing work safety liability

insurance for high-risk positions achieving nearly 100% coverage. HSE agreements are executed with contractors with mandatory

During contract signing pre-entry safety training for all personnel and documented

safety inspections of construction tools/equipment. Before any

operational activity safety condition confirmation risk notification

Driving Leadership manpower funding and time and technical safety briefings must be conducted.Force

HSE Policy: Safety first green development full participation of all staff and

Cultural Concept continuous improvement

(HSE Policy and Golden Rule) The Golden Rule: Compliance intervention and respect During operations

Multi-tier supervision is performed by guardians contract holders

and HSE personnel covering: contractor pre-entry safety training

Core Elements: Laws regulations and standards institutions and responsibilities compliance risk and technical safety communication effectiveness

Management Scope risk management changes management systems... tool/equipment safety regulation/procedure adherence safety

(16 core elements and 63 sub-elements) Sub-elements: Compliance management work safety investment factory changes measure completeness and contractor behavioral compliance.

operating procedures alarm management... Identified issues require immediate rectification with feedback

Management Regulations: HSE Risk Management Regulations loops to contractors and contract holders.Management System Management Regulations for Withdrawal and Use of Safety-related Funds...

(49+5 management regulations 14 management rules) Management rules: Management Rules for HSE Projects Management

Rules for Normative Documents on HSE...Best Management Practices (Guidelines): Guidelines for

Promoting the Elements of Accident and Incident Management...Executive Standards/Guidelines The Company conducts regular emergency drill exercises Enhanced Tools and methods: ACT JHA isolation plan quantitative review

horizontal evaluation... exceeding regulatory requirements by mandating: monthly 302

emergency skill training or drills for each shift; quarterly on- 97 specialized on-site emergency site emergency handling procedures exercises for each

HSE Management System Hierarchy Chart handling proceduresworkshop section; In 2024 we enhanced 97 specialized emergency response

emergency response plans and 302 on-site emergency plans

The Company has established a dual mechanism for management performance evaluation and incentive compensation handling procedures achieving 100% drill completion rate.specifically for OHS responsibilities ensuring effective implementation efficient operation and continuous optimization of the

HSE management system. HSE performance metrics include both outcome-based and process-based indicators: Outcome-

based indicators: thousand-person injury rate total direct economic losses from accidents number of fire/explosion incidents

with losses exceeding CNY 10000 and new occupational disease cases. Process-based indicators: safety leadership Chemical Safety

engagement quantitative audit scores for work permits alarm rate and on-time completion rate of HSE training programs.Through scientifically designed management metrics the management can accurately identify systemic weaknesses clarify

improvement priorities and drive comprehensive enhancement of OHS performance. NHU deeply recognizes the unique characteristics of the chemical manufacturing industry and its potential environmental

and social impacts. The Company has actively participated in formulating the national standard Safety Management Code for

The company adopts a risk management-centered approach with Responsible Care as the guiding principle and safety Fine Chemical Enterprises sharing its practical experience in the fine chemical field to advance industry safety standards. To

leadership/safety culture as the foundation to comprehensively implement the HSE management system. Starting with inherent enhance chemical safety management NHU has established the Chemical Substance Management Regulations implementing

safety strategies such as minimization substitution moderation and simplification we continuously improve HSE performance full-process and lifecycle management of chemicals in production and usage. The Company systematically identifies potential

to safeguard the health and well-being of employees customers and stakeholders ultimately reducing or eliminating adverse risks of different chemicals and implements targeted control measures to minimize the incidence and consequences of

environmental and OHS impacts during production while enhancing stakeholder satisfaction. accidents.

45 46NHU actively promote standardized chemical management in its headquarters and subsidiaries regular chemical inventories Case Occupational Health Training for Enhanced Accident Risk Response Capability

are conducted to maintain comprehensive internal management records for hazardous substances. NHU requires personnel

handling hazardous chemical production usage and emergency response to complete mandatory job-specific safety

training ensuring requisite safety knowledge and operational competencies. The Company has established a Safety and

Environmental Research Institute and formulated the Reaction Safety Risk Assessment Management Regulations responsible On 10 April 2024 Shangyu NHU conducted

for testing chemical reaction heat thermal stability and flammability/explosivity data as well as conducting reaction safety risk occupational health training for 122 employees.assessments. In 2024 the institute achieved: 3 process hazard level downgrades and 8 optimizations of combustion/explosion- The session covered: relevant occupational health

related processes. Currently the institute has obtained CNAS8 accreditation further enhancing the Company's expertise and regulations occupational hazard identification

credibility in chemical safety management. occupational hygiene management systems

and proper use and maintenance of personal

NHU annually commissions accredited occupational health service providers to conduct comprehensive workplace hazard protective equipment. Post-training assessments

monitoring supplemented by internal inspections. By establishing a monitoring results database and utilizing data analytics with demonstrated 100% pass rate among frontline

early-warning systems the Company optimizes worksite conditions and conducts preemptive maintenance on deteriorating workshop staff successfully achieving training

occupational hazard control facilities. In 2024 NHU and all subsidiaries obtained ISO 45001 OHS Management System objectives. This initiative enhanced employees'

certifications. awareness of occupational health importance and

improved risk identification/response capabilities.OHS Training

Occupational Health Training by Shangyu NHU

NHU places high priority on employee competency development and skills

enhancement. Guided by the talent development process of "cultivation

certification deployment and management" the Company has established an

internal HSE trainer development program to advance the professionalization

and capacity building of HSE personnel. In 2024 NHU implemented systematic

OHS training through blended learning approaches effectively elevating 2024 NHU HSE Internal Trainer Training Indicator Data in 2024 Unit

employees' HSE proficiency and practical competencies. Opening Ceremony

Proportion of Employees Covered by OHS Training 100 %

Online Knowledge Sharing

Investment Amount of Work-related Injury Insurance 825.11 CNY 10000

The Company developed 89 training modules including: Three Simultaneousness Management Process for Construction

Project Safety Three Simultaneousness Management Process for Construction Project Environmental Protection Three

Simultaneousness Management Process for Construction Project Occupational Health HSE Training Management Personnel Coverage Rate of Work-related Injury Insurance 100 %

System and Work Safety Cost Management. These courses with instructional videos were uploaded to the official

XiaoXin Platform providing flexible learning resources to help employees master core OHS management competencies. Investment Amount of Work Safety Insurance 122.63 CNY 10000

Offline Training

NHU organized diversified practical activities including: firefighting skills Shared Success and Prosperity

competitions hazard identification contests safety knowledge quizzes

emergency response drills and on-site emergency handling procedures

exercises. These initiatives significantly improved employees' accident NHU consistently upholds the principle of "shared success and prosperity" creating long-term value for customers partners

prevention capabilities and emergency response readiness. communities and society. The Company has established a comprehensive customer service management framework that

drives collaborative implementation of sustainable development goals across the supply chain actively supports community

Firefighting Skills Competitions development initiatives and contributes to building harmonious communities.In 2024 NHU delivered 209 OHS training sessions Delivered Achieving

achieving 100% employee coverage rate substantially Customer Services

strengthening company-wide safety awareness and

operational preparedness. 209 100%

OHS training sessions employee coverage rate NHU maintains a steadfast commitment to customer-centric service principles dedicated to delivering efficient professional and

sustainable service solutions. Through systematized customer service management structured complaint handling mechanisms

8 C NAS accreditation refers to the certification system administered by the China National Accreditation Service for Conformity Assessment demonstrating customer satisfaction survey and digital transformation of sales operations the Company has achieved holistic improvements in

that certified bodies laboratories or inspection agencies meet international standards in technical competence and impartiality. service quality resulting in enhanced customer satisfaction and loyalty.

47 48Customer Service Management Customer Complaint Management

To standardize customer management processes NHU has established the Customer Management Regulation which: For customer complaint management NHU has instituted the Customer Information Feedback Management Regulations along

clearly defines departmental responsibilities workflows and management criteria for customer management; ensures the with related governance documents that define standardized complaint handling processes:

completeness and accuracy of customer archive information; systematically enhances overall service quality. The company has

concurrently optimized sales workflows through its Sales Management Regulation. In brand management NHU enforces the

Product Brand Management Regulations to standardize corporate brand identity thereby improving brand distinctiveness and

market competitiveness. Regular brand competency training programs are conducted to deepen employee understanding of Complaint The sales department communicates with customers to understand their needs and provides initial handling

brand values and ensure effective brand strategy execution. Acceptance results or plans within 2 working days.To guarantee after-sales service quality NHU has instituted the Delivery & Returns Management Regulations establishing

standardized domestic and international logistics processes that ensure timely accurate and efficient delivery operations.The Company proactively addresses ESG-related customer requirements by integrating sustainability into service delivery.Zhejiang NHU Special Materials Co. Ltd. has provided some customers with PPS Product Carbon Footprint Declarations and

obtained ISCC PLUS certification in January 2025. Shandong NHU Industrial Park conducted full life cycle assessment (LCA9) The sales department fills out the Customer Information Feedback Form and initiates the complaint

for VE powder and VB6 products generating relevant carbon audit certificates and reports to deliver transparent verifiable feedback and return/exchange process within the system; The quality assurance department investigates Complaint

environmental footprint data to customers. Handling the reasons and prepares a report; The sales department provides feedback to the customers. For

complaints from "major customers" the sales manager of the business division must be notified in order to

Case Development of Customized Feed-Grade Vitamin Preparations improve response speed and effectiveness.NHU delivers customized product solutions to customers. To address specific requirements for feed-grade vitamin

preparations the Company has established a cross-functional team comprising professionals from sales R&D

and marketing. This team conducted extensive consultations with customers to comprehensively understand their Complaint The sales department tracks the entire process from initial complaint acceptance handling feedback and

expectations regarding product performance quality criteria and regulatory compliance. Tracking complainant's satisfaction to ensure customer satisfaction.To ensure compliance with customer market requirements the team performed comprehensive analysis of local

feed additive markets including market size evaluation competitive landscape assessment and trend analysis.Concurrently regulatory affairs and technical specialists conducted in-depth reviews of local feed additive regulations With a complaint

encompassing product quality criteria vitamin type/level restrictions and labeling/documentation specifications to handling rate of

guarantee full regulatory compliance. The procurement team secured reliable suppliers of vitamin raw materials to In 2024 the Company received a total of 15 complaints regarding products and services

ensure consistent material quality. Based on customer requirements and regulatory mandates the R&D department with a complaint handling rate of 100%.developed optimized formulations for feed-grade vitamin preparations. Rigorous testing of pilot-scale and production- 100%

scale samples demonstrated excellent vitamin stability under demanding feed processing conditions including high-

temperature high-humidity and extrusion environments. The product has received strong customer endorsement for Customer Satisfaction Survey

successfully meeting specialized market requirements.To further enhance product and service quality the Company has established the Customer Satisfaction Survey Management

Regulations administered by the Marketing Management Department and implemented by the Quality Assurance Departments

across business divisions branches and subsidiaries. In 2024 the Company conducted comprehensive customer satisfaction

Case Customized Production of Vitamin C surveys encompassing product performance brand perception and service delivery achieving an annual Customer Satisfaction Index (CSI) of 92.64. For identified areas of dissatisfaction the Company has developed improvement recommendations and

action plans to drive continuous optimization of the quality management system.In vitamin C production NHU has implemented an integrated customization system spanning "demand analysis

- process engineering - production delivery". To address differentiated requirements from food and nutraceutical Intelligent Sales

customers regarding particle size whiteness and stability parameters the Company leverages customization

demands as drivers for technological advancement. Through physicochemical characterization of reference samples To establish precise customer profiles and deliver enhanced service experiences the Company is accelerating its intelligent

coupled with application scenario simulations NHU has established correlation models between vitamin C quality sales transformation. In 2024 the Company fully implemented intelligent sales systems and established non-intelligent factory

parameters and end-use performance enabling the development of tailored production systems. production-sales modules to achieve operational synergy. Concurrently we have consolidated global customer resources

through standardized information management and service process optimization delivering more efficient and accessible

service solutions for overseas customers.Through systematic customer service management streamlined complaint handling mechanisms comprehensive satisfaction

survey and intelligent sales transformation we have established transparent and sustainable service frameworks that

9 LCA: Life Cycle Assessment a systematic tool evaluating the environmental impact of products/services across their entire lifecycle—from raw material strengthen long-term customer relationships.

extraction to final disposal.

49 50Empowering Industrial Development Industry Empowerment and Ecological Co-construction

Through technological innovation and resource sharing initiatives NHU empowers partners throughout the industrial value

NHU has consistently prioritized promoting sustainable advancement in global industries through global expansion strategies chain facilitating comprehensive industry advancement. The Company actively engages in industry standard development

industry-academia-research collaboration and technological innovation. This approach empowers the entire industry chain and disseminates best practices and promotes green transformation across sectors. Through global cooperation and industry-

injects renewed vitality into industrial development. Guided by the core philosophy of "market-driven demand and integrated academia-research synergies we deliver high-quality products and solutions to international customers contributing to

collaboration" NHU has established a technological innovation system characterized by enterprise leadership market the establishment of robust and sustainable industrial ecosystems. During the reporting period NHU organized 23 expert

orientation and industry-academia-research partnerships collaborating with global partners to accelerate industrial upgrading symposiums featuring distinguished specialists participated in 44 industry conferences and exhibitions completed 36

and low-carbon development. Regarding global operations the Company strengthens its multinational footprint through strategic technology and equipment integration projects and conducted in-depth evaluations of 144 product technologies 56 enterprises

overseas investments and overseas R&D center establishments fostering synergistic partnerships to bolster sustainable and 8 industrial sectors. To accelerate the internationalization of R&D and production capabilities we continuously monitor

industry development. global technological trends and expand international collaboration channels thereby solidifying the foundation for our global

strategic deployment.Assistance to Upstream and Downstream Enterprises

Through technology sharing and collaborative R&D models NHU actively empowers capacity building across the industrial Organized Participated in Completed

chain to accelerate sustainable development and innovation-led upgrading. Our approach encompasses: (1) Upstream

Empowerment: Deploying technical teams and sharing quality management expertise to enhance suppliers' manufacturing 23 expert symposiums 44 industry 36 technology and

processes and product quality. (2) Downstream Collaboration: Co-developing market-driven solutions by integrating our material

science capabilities with customers' application scenarios through joint R&D initiatives. featuring distinguished specialists conferences and exhibitions equipment integration projects

By cultivating an open and collaborative industrial chain ecosystem NHU achieves high-quality development while generating

multiplier value for upstream and downstream partners collectively advancing industrial competitiveness. Case Fostering Global Partnerships: NHU's Strategic Participation in CPHI Korea

NHU actively participates in global industry exchanges and is committed to advancing technological progress and

Case Improving Product Quality for a Specific Fragrance Ingredient Supplier sustainable development within the pharmaceutical sector. In 2024 the Company made its debut at CPHI Korea

the international pharmaceutical ingredient exhibition hosted at Seoul's COEX Convention & Exhibition Center.NHU showcased its core pharmaceutical-grade products including Vitamin C Vitamin E Vitamin B6 Moxifloxacin

Hydrochloride and Ibuprofen along with nutritional health solutions such as food-grade Vitamin C and Coenzyme

To address persistent quality challenges in a specific fragrance ingredient NHU deployed a dedicated technical team

Q10. The Company's high-quality products and innovative solutions garnered substantial attention and received

to conduct on-site capacity building at the supplier's facility. Through systematic process optimization including reaction

unanimous acclaim from both domestic and international attendees.parameter refinement and purification technology enhancement the six-month collaborative intervention successfully

elevated the compliance rate of critical quality parameters establishing a robust foundation for high-performance This participation not only elevated NHU's brand recognition in the global pharmaceutical ingredients market but also

fragrance product development. established effective communication channels with international customers and partners. Through in-depth discussions

with industry experts and global buyers NHU gained valuable insights into emerging market demands and industry

trends which will inform future product R&D and market expansion strategies. The Company also demonstrated

its innovative capabilities in sustainable pharmaceutical ingredients and nutritional health solutions reinforcing its

Industry Standard Setting commitment to industry-wide sustainable development.NHU recognizes that standardization constitutes the fundamental pillar for the healthy and orderly development of industries.Through technological innovation and industrial implementation we proactively share our expertise and achievements to

advance industry standardization. To date NHU has chaired or participated in formulating 34 national standards 10 industry

standards and 35 association standards spanning multiple sectors including chemical industry pharmaceuticals and food

manufacturing providing crucial support for technological advancement and product quality enhancement across these

industries.Committed to an open cooperation philosophy of shared success and prosperity NHU synergizes with cross-industry partners to

co-advance technological progress and sustainable development.NHU chaired or participated in formulating

1035

34 national standards Industry standards Association standards

51 52Case NHU Hosts 2024 Petrochemical Industry Innovation Summit: Exemplary Enterprises Exchange Supplier Management Mechanism

NHU has established a rigorous supplier qualification and screening system in strict compliance with internal policies such as

In 2024 NHU successfully hosted the "2024 Petrochemical Industry Innovation Summit: Exemplary Enterprises the Supplier Management Regulations under the Purchasing Department. This system mandates comprehensive assessments

Exchange" in Xinchang Zhejiang organized under the auspices of China Petroleum and Chemical Industry Federation of suppliers' operational status certifications and management systems covering quality environmental protection and

(CPCIF). The summit convened industry leaders to explore collaborative innovation pathways and share best practices occupational safety. Adhering to the principles of fairness and equity NHU evaluates all suppliers against uniform criteria

in sustainable development. regardless of their size thereby ensuring transparency and impartiality in supplier selection. Based on material risk classification

(Category A/B/C) NHU implements a multi-stage evaluation process including pilot testing mass production trials and on-site

Mr. Hu Baishan Vice Chairman and President of NHU presented an overview of the Company's business audits. This ensures both material quality and suppliers' production & quality control capabilities align with the company's internal

development and innovation achievements in his speech. He sincerely expressed the hope to establish closer ties with control standards. Suppliers admitted into the qualified vendor system are required to execute binding agreements including

enterprise representatives and expert professors to jointly explore cooperation opportunities share resources share the Environmental and Occupational Health & Safety Commitment Code of Ethical Business Conduct and Integrity and Fair

risks and pursue mutual development. Competition Agreement thereby reinforcing their social responsibility obligations. NHU requires suppliers to strictly adhere to

environmental regulations safeguard employees' OHS and uphold ethical business practices. This collaborative approach

As an innovation-driven enterprise NHU remains steadfast in fosters a fair transparent and sustainable supply chain ecosystem. During the reporting period there were no incidents of

its dual-core strategy of "Chemistry+" and "Bio+". Guided by the delayed payments to small and medium-sized enterprises.principles of integrated development and product diversification

the Company focuses on three strategic pillars: life sciences

new energy and green and low-carbon technologies. Indicator Data in 2024 Unit

NHU continues to strengthen industry-academia-research

collaboration while maintaining global perspectives in technical

planning and innovation ecosystem development. Total Number of Suppliers 4192 Nos.Speech by Mr. Hu Baishan Vice Chairman and

President of NHU

Suppliers' Signing Rate of Integrity Agreements 100 %

Case NHU Showcases Sustainable Solutions at International Green Chemistry Conference Supplier Performance Evaluation

Annually in December NHU conducts comprehensive performance evaluations for all suppliers. Evaluations for raw materials

NHU played a significant role as a principal sponsor of the 10th IUPAC International Conference on Green Chemistry and auxiliaries suppliers are jointly performed by production workshops quality assurance departments across production

held under the theme "Advancing Carbon Neutrality through Sustainable Chemistry" at the Beijing International bases warehouse operations teams and the purchasing department. Equipment suppliers are assessed by the equipment

Convention Center. Co-organized by the Chinese Chemical Society the Institute of Chemistry at the Chinese management division in collaboration with the purchasing department. The rating system categorizes suppliers into four tiers:

Academy of Sciences and the Interdivisional Committee on Green Chemistry for Sustainable Development under the Excellent Good General and Unsatisfactory. Subsequent risk assessments and procurement decisions are formulated based

International Union of Pure and Applied Chemistry (IUPAC) the event attracted global scientific leaders. on these evaluation outcomes.At the conference NHU's exhibition booth served as a hub Daily Audit of Suppliers

for knowledge exchange drawing specialists researchers

academics and industry professionals. NHU demonstrated All production bases and business divisions implement batch-by-batch incoming inspection for raw materials and auxiliaries

its capabilities shared the latest scientific achievements and with strict quality compliance verification prior to warehouse acceptance and production usage. Each base's Quality Assurance

gained fresh inspiration and new knowledge from global experts. Department establishes annual supplier audit plans aligned with operational requirements. Primary raw material suppliers

Moving forward NHU will continue upholding the philosophy undergo on-site audits every three years while secondary suppliers complete desk audits through standardized questionnaires

of open cooperation actively collaborating with global industry every six years.partners and experts to jointly explore cutting-edge scientific

technologies promote the development of green chemistry and Supplier Training

contribute NHU's solutions to sustainable development goals. Honorary Dean of NHU Research Institute

Presents NHU's Green Chemistry Innovations

NHU prioritizes supply chain quality management. Focusing on critical areas such as product quality technical standards and

environmental requirements the Company provides customized professional training and technical guidance to suppliers as

needed supporting them in enhancing production capabilities and management competencies. The Company is committed

to establishing collaborative partnerships with suppliers. Through knowledge sharing and capacity building it drives the

Responsible Supply Chain enhancement of overall supply chain competitiveness.Our production bases and business divisions conduct periodic on-site training workshops to ensure supplier alignment with

NHU is committed to establishing a responsible and sustainable supply chain system. Through stringent supplier qualification evolving quality criteria operational protocols and industry standards. Training modules encompass technical specifications

auditing and risk management mechanisms we ensure compliance with quality environmental and social responsibility quality testing parameters environmental regulations and work safety standards enabling comprehensive optimization of

requirements while enhancing supply chain sustainability. suppliers' quality management work safety and sustainability performance.

53 54Supply Chain Risk Management Case Caring for Elderly Health: Donating Vitamins and Nutritional Supplements

NHU conducts thorough risk assessments for new suppliers evaluating critical factors including production capacity production

processes equipment and facilities quality control geographic location transportation methods and delivery timelines. The Addressing age-related immune system vulnerabilities NHU donated vitamins and nutritional supplements valued

Company requires suppliers to submit environmental impact assessments (EIA) and safety assessment reports to evaluate their at over CNY 500000 to Kaihua County's health and nutrition improvement program. This initiative not only improves

environmental and safety risks. Approved suppliers must complete the standardized Supplier Risk Assessment Form followed quality of life for elderly residents affected by health-related poverty but also elevates community health awareness.by systematic evaluation through on-site audits and documentation reviews addressing quality commercial financial EHS and

delivery risks.According to the risk level the Company implements differentiated control: High-risk suppliers are subject to semi-annual on-

site audits or documentary reviews medium-risk suppliers to annual evaluations and low-risk suppliers undergo reviews when Case Assisting Healthcare Burden Reduction and Health Check-Ups

circumstances require. Should irremediable risks be identified during evaluation the Company will promptly terminate business

engagements to safeguard supply chain integrity and operational continuity.In 2024 NHU supported the "Nodule-Free" Lung Cancer Prevention campaign providing free health screenings through

professional medical teams to enhance public health awareness. Our efforts assisted 49 individuals facing healthcare

accessibility challenges to obtain medical relief.NHU is committed to building a sustainable supply chain ecosystem targeting 100% ESG integration with strategic

suppliers by 2025. Our enhanced supplier screening process now incorporates ESG due diligence systematically

evaluating suppliers' sustainability performance across environmental social and governance practices. This holistic

approach drives collective progress toward sustainable supply chain development.Case Assisting Students to Achieve Their Dreams and Supporting Impoverished Students

This year NHU provided financial assistance to six academically outstanding students from economically disadvantaged

Public Welfare and Charity Undertakings families admitted to Tsinghua University and Peking University facilitating their enrollment and supporting the

achievement of their academic aspirations.NHU steadfastly upholds its core mission of "Creating Wealth Elevating Employees and Benefiting Society". While pursuing

high-quality development the Company actively participates in public welfare initiatives. Through concrete actions including

educational donations healthcare burden reduction programs and rural revitalization efforts NHU earnestly fulfills its corporate

social responsibilities. We not only focus on operational performance but also commit to generating long-term societal value. Case Promoting Common Prosperity and Supporting Local Development

In 2024 our public welfare and charity contributions totaled approximately CNY 2.56 million. Additionally the foundation has

allocated approximately CNY 300000 to rural revitalization initiatives injecting new vitality into social development.In alignment with China's common prosperity initiative NHU has proactively implemented the "Third Distribution"

mechanism through strategic philanthropic investments. Key programs include the Sertar County Basic Support Fund

(targeting underdeveloped regions) the Qixing Subdistrict Common Prosperity Partnership and the Community Charity

Endowment Fund. These initiatives are designed to stimulate regional economic growth and enhance social welfare

Public welfare and charity contributions The foundation has allocated approximately systems. These programs not only provide local residents with employment opportunities and sources of income but

totaled approximately CNY also promote exchanges and cooperation among different regions contributing to the building of a harmonious society.CNY

2.56 million 300000

to rural

revitalization initiatives.Case Volunteer Service Spreading Positive Social Energy

The Company's products are exported to over 100 countries and regions worldwide spanning Southeast Asia South Asia the

Middle East Africa Central Asia Russia and other markets along the Belt and Road Initiative. Within this extensive operational

footprint we prioritize both product/service quality enhancement and active community engagement. Through educational NHU's employees actively participate in volunteer services. They have established three volunteer service teams

support livelihood improvement programs and community development initiatives NHU implements global public welfare and and five volunteer associations which continuously visit local community streets nursing homes schools and other

charity activities that contribute to building a harmonious and sustainable society. institutions to carry out volunteer services such as street cleaning home appliance repair free haircuts and the

popularization of scientific knowledge.

555603

Sustainable Environment

Our Actions

Facing the challenges of climate change resource depletion and environmental degradation

NHU actively aligns with China's national strategy of "carbon neutrality" and "carbon peaking."

We engage extensively in global climate change action initiatives comprehensively advance the

efficient utilization of energy and resources and strive to establish an eco-friendly enterprise.Our Performance

Compared to the Compared to the Compared to the previous

previous year the previous year the COD year the amount of wastewater

energy consumption per output value of CNY discharge per output value of

intensity decreased by 10000 decreased by CNY 10000 decreased by

7.67% 6.50% 8.20% Contribution to SDGs

The water recycling All wastewater and waste gases

utilization rate was were discharged in compliance with

96.30% standards and hazardous waste are disposed of legally

57 58Low-carbon Transformation Identification and Management of Climate Risks and Opportunities

Through a comprehensive assessment of climate risks we have not only identified climate-related risks and opportunities but

also systematically identified prioritized and managed both physical and transition risks that may affect corporate assets. This

Guided by our low-carbon development principles of "Green Transition Energy Efficiency Enhancement Smart Management process has enabled the formulation of targeted response measures.and Continuous Improvement" NHU drives the transition of the energy structure and reduction of GHG emissions. We rigorously

implement low-carbon and clean production practices while reducing the carbon emissions. We have established clear timeframes for climate-related risks and opportunities: defining 1–2 years as short-term 3–5 years as

medium-term and over 5 years as long-term. The key climate-related risks and opportunities identified are as follows:

Responding to Climate Change

Physical Risks and Counter-measures

NHU consistently considers climate change response as a corporate imperative. We prioritize climate-related topics at the

strategic level and systematically enhance our climate risk management mechanisms. In this reporting year we conducted Risk Category Potential Impact Response Measures Timeframe

climate risk and opportunity assessments in alignment with the TCFD framework. These findings inform our climate change

strategy development and goal-setting process enabling more effective climate change risk mitigation. Coastal production bases may

face operational stoppages due to Implement typhoon-

Typhoon & extreme weather (e.g. typhoons resistant upgrades at coastal

Governance Rainstorm Short-termrainstorms) affecting the production bases to enhance

timely delivery of time-sensitive climate resilience.products.We have established a climate-related governance mechanism that clearly defines the principal and supporting departments

for climate change topics. The Company proactively identifies climate risks and opportunities develops mitigation strategies Acute Risks

and implements product carbon footprint management. We are committed to enhancing carbon emission performance across

the entire value chain and reducing climate change impact. Furthermore we have institutionalized GHG reduction through the Low-lying factory areas are

formulation of regulatory documents including the Carbon Management Manual Energy Conservation and Carbon Reduction vulnerable to floods and Establish a climate early-

Management Regulations Carbon Emission Monitoring Regulations and Carbon Information Disclosure Guidelines. Floods & waterlogging. Water ingress warning system and

Waterlogging Short-terminto workshops and prolonged monitor real-time drainage

The Company has implemented a five-tier climate change governance structure comprising the Board of Directors Strategy commissioning periods may result infrastructure.Committee ESG Management Committee ESG Office and ESG working groups. When formulating major strategic plans and in economic losses.reviewing risks and opportunities the Board of Directors and the Strategy Committee comprehensively consider climate-related

risks to ensure full integration of climate strategy and risk management into business development. The ESG Management

Committee operating under the Strategy Committee assumes direct responsibility for climate-related affairs. Its responsibilities Prolonged high temperatures may

include evaluating climate change risks/opportunities overseeing strategy implementation and providing regular reporting to the raise workshop cooling costs Develop heat-resistant Sustained High

Board of Directors. Temperatures increase refrigeration energy technologies and optimize Long-term

consumption and impact the refrigeration systems.The ESG Office executes resolutions from the Board of Directors Strategy Committee and ESG Management Committee. stability of biological products.It conducts periodic climate risk/opportunity assessments monitors implementation progress of climate initiatives ensures

achievement of climate-related goals and reports regularly to the ESG Management Committee. The ESG working groups drive

implementation of specific climate change related tasks systematically collect operational data and submit progress reports to Construct emergency water

the ESG Office. To strengthen carbon management we have established a dedicated Carbon Management Task Force under Chronic High water intensity in chemical storage facilities reduce per-

the ESG working groups. This specialized unit develops carbon management systems conducts carbon footprint verification Risks Arid Climate &

Water Scarcity production could escalate costs unit water usage through Mid-termand ensures data accuracy and integrity throughout emission reporting processes. during prolonged droughts. R&D and improve water

recycling rates.Climate Strategy

Rising sea levels may increase Strategically plan new factory

NHU closely tracks global climate policy dynamics and action initiatives. By aligning corporate operations with mainstream insurance costs for coastal sites and adopt a "1+N"

Sea-Level Rise Long-term

climate scenario analysis frameworks the Company systematically identifies assesses and responds to climate change risks infrastructure and threaten work distributed warehousing

and opportunities. Deeply embedding climate governance into strategic planning NHU continuously strengthens its climate safety and stability. model.resilience while advancing the climate change response capabilities of its supply chain partners. In alignment with strategic

development goals operational characteristics and value chain impacts we have established a comprehensive mechanism for

identifying climate risks and opportunities. This includes in-depth analysis of material climate change risks along with potential

opportunities coupled with financial impact assessments to inform scientific decision-making for sustainable development.

59 60Transition Risks and Countermeasures Risk Management

Risk Category Potential Impact Response Measures Timeframe NHU has integrated climate change risks into its strategic risk management framework with regular reporting to the Board

of Directors. The Company actively tracks developments in China's Dual Carbon Policy and global sustainable supply chain

Stricter emission requirements from standards to promptly identify regulatory changes climate-related risks and opportunities relevant to corporate growth.Continuously optimize

Environmental evolving international and domestic environmental protection

Regulation environmental regulations may Mid-term

Upgrades infrastructure to ensure timely necessitate continuous investment in Climate Risk Identification Process

regulatory compliance.environmental facility upgrades.Aligned with the TCFD framework NHU has embedded climate governance within its Enterprise Risk Management (ERM)

Enhance carbon emission data system. By establishing a Climate Risk & Opportunity Management Regulations the Company follows a four-phase closed-loop

Policies such as the EU Carbon management optimize energy

Policy and International management system: Risk Identification - Quantitative Assessment - Strategic Response - Performance Monitoring.Legal Risks Border Adjustment Mechanism management systems conduct Green Trade Mid-term

Barriers (CBAM) may indirectly impact export carbon tariff stress tests and

product competitiveness. develop advanced market pricing Identify physical risks (including high temperatures extreme cold long-term precipitation extreme

strategies. snowfall floods wildfires etc.) and transformation risks (including policies and laws technology

Climate Risk

Rising carbon costs across the Identification markets reputation etc.) that may affect the production operation and commercial goals of NHU Employ innovative financial

Carbon Pricing industrial chain may increase understand the potential causes and consequences of risks and form a list of climate risks and

and Taxation instruments and actively participate Mid-termoperational costs for chemical opportunities of NHU.in carbon markets.enterprises.Low-carbon Green technology R&D has become Increase R&D investment and Measure the physical risks of climate change to NHU with "fixed assets" and "income" as key indicators

Technical Technology a critical competitive factor while drive innovation in energy- Climate Risk and rank them according to the risk levels of "extremely low low moderate high and extremely high";

Risks Transition Long-termtraditional processes may face efficient processes and carbon Assessment Make qualitative analysis of transformation risks and evaluate the potential impact of future policy

Pressure obsolescence risks. management technologies. technological and market changes on NHU.Downstream customers and Conduct climate resilience

Market Market consumers increasingly demand assessments and carbon emission

Risks Demand Short-termproducts with stronger green management for key raw material Monitor the development trends of climate-related regulations policies markets etc. regularly evaluate Transformation Climate Risk

credentials. suppliers. the impact of physical and transformation risks and implement climate risk response measures to Management reduce or avoid climate change risks.Strengthen environmental

Reputation Growing Inadequate carbon reduction efforts infrastructure to ensure regulatory

Risks Environmental Long-termAwareness may damage corporate reputation. compliance and prevent

environmental incidents.Climate Risk The management regularly oversees the effectiveness of climate risk response measures and the progress

Overseeing of related goals and optimizes strategies to ensure the timely achievement of climate goals.Climate Change Opportunities

Indicators and Goals

Opportunity Transformation Strategy Timeframe

Green Technology Product Development: Leverage technological expertise to This year we have advanced the verification of GHG emissions and enhanced carbon emission data management systems

accelerate development of bio-based materials biodegradable materials and related laying a solid foundation for future carbon reduction efforts.Product products. Mid-term

Clean Energy Utilization: Promote large-scale adoption of clean energy sources Corporate Level Product Level

including biomass energy optimize energy mix and reduce product carbon footprint.International Market Expansion: Mitigate embodied carbon emissions in exported

Market Mid-term

products and reduce potential carbon tariff impacts through supply chain decarbonization. Completed Scope 1 and Scope 2 GHG emissions Conducted carbon footprint verification for 36 products

inventories for all subsidiaries in 2024; Achieved a (ISO 14067:2018 certified); Performed LCA data

Carbon Asset Development & Trading: Identify viable emission reduction opportunities Rating B in the CDP Climate Change Questionnaire accounting for 32 product specifications across 14

Carbon Trading for carbon asset development generating additional revenue through carbon asset Long-term submission. major categories.creation and carbon market participation.

61 62NHU has incorporated climate-related risks into its strategic risk management framework accounting for operational Energy Utilization

characteristics asset distribution and potential climate impacts. The Company continuously monitors key climate indicators—

particularly GHG emissions and intensity—and systematically quantifies carbon data to proactively identify and mitigate emission

challenges. NHU continuously optimizes its energy management system to enhance energy efficiency and increase clean energy adoption.We have established a four-tier energy management structure. This structure ensures the effective implementation of energy

Indicator Data in 2024 Unit conservation initiatives. The President holds ultimate accountability for energy management while the Vice President (in

charge of operations) oversees and coordinates energy management efforts and supervise the implementation of the energy

management system. The Production & Operations Department leads the implementation of strategic energy plans and policy

Scope 1 GHG emissions 765023.45 Ton of carbon dioxide equivalent decisions.We have established an energy management system documentation including the Energy Management Manual Energy

Management Regulations and Energy Conservation Protocols. These establish clear accountability matrices define energy

Scope 2 GHG emissions 2018419.37 Ton of carbon dioxide equivalent related goals and performance metrics and institute audit mechanisms to ensure standardized and efficient energy utilization

thereby enhancing sustainable production capacity. Regular energy conservation training programs engage employees

10 transforming compliance into proactive participation across all operational processes. This year NHU accelerated the Total GHG emissions 2783422.82 Ton of carbon dioxide equivalent standardization of energy management across its facilities with Shandong NHU Vitamins Co. Ltd. being recognized as a 2023

Energy Conservation Exemplary Enterprise by the Weifang Municipal Government.GHG emission intensity 2.02 Ton of carbon dioxide equivalent/ton of production We implement annual energy consumption targets with regularly progress reviews to ensure tangible outcomes.

2024 Energy Consumption Target Target Achievement Status 2025 Energy Consumption Target

Based on operational realities and aligned with climate strategies NHU has established the following quantitative climate goals Compared with the previous year the Compared with the previous year the

to advance low-carbon development. The Company will implement regular carbon inventory audits systematically track goal energy consumption per output value Achieved energy consumption per output value progress and execute tailored mitigation measures. of CNY 10000 will decrease by no less of CNY 10000 will decrease by no less

than 5%. than 5%.Energy Efficiency Improvement

NHU is committed to achieving efficient utilization of energy and resources. As a strategic priority the Company has

Compared to the 2023 baseline decrease the carbon emission intensity per unit of products 25% by 2030. implemented energy digital transformation and is advancing the Smart Energy Control Platform to enable intelligent and refined

energy management. This platform facilitates real-time monitoring and analysis of energy consumption data optimizes energy

allocation strategies and significantly enhances energy efficiency. Additionally the Company has established a comprehensive

energy consumption indicator management system for production processes. Through digital technologies it precisely controls

key energy consumption nodes to ensure continuous optimization of all energy performance metrics.

10 G HG emissions are calculated in strict compliance with ISO 14064-1:2018 Greenhouse Gases - Part 1: Specification with Guidance at the Organization Level for Quantification and

Reporting of Greenhouse Gas Emissions and Removals.

63 64Expanded Utilization of Renewable Energy Harmony with Nature

NHU is advancing clean energy integration achieving 45.58 million kWh of clean electricity utilization in 2024 (including green

power certificate purchases) substantially decreasing traditional energy dependence. Our photovoltaic power generation NHU strictly complies with environmental protection laws and regulations in all jurisdictions where we operate including the

projects across production bases have installed 11.73 MW of solar capacity delivering 26000 tons of annual carbon reductions. Environmental Protection Law of the People's Republic of China the Law of the People's Republic of China on the Prevention

and Control of Atmospheric Pollution and the Law of the People's Republic of China on the Prevention and Control of

Environmental Pollution by Solid Waste. We implement rigorous environmental management throughout production and

Achieving Our photovoltaic power Delivering operations promote green office initiatives and continuously strengthen environmental awareness among all employees.generation projects across

45.58 million kWh of clean production bases have installed 26000 Environmental Management

electricity utilization in 2024 (including MW tons of annual

green power certificate purchases) 11.73 carbon reductions NHU recognizes the Board of Directors' pivotal role in environmental management and has clearly defined environmental

responsibilities across all management levels and departments. By integrating the ISO 14001 Environmental Management

System and operational realities the Company has established a HSE management framework. This framework has been

In clean transportation NHU actively adopts green logistics methods such as belt conveying systems and electric truck institutionalized through the NHU HSE Management Manual which contains 20 environmental management documents

transportation which have substantially increased the proportion of clean energy in inbound and outbound logistics. These covering policy formulation target setting regulatory compliance operational procedures and emergency response protocols.initiatives enhance energy efficiency and reduce carbon emissions throughout the transportation process. Specific emergency plans including the Emergency Response Plan for Environmental Incidents and the Special Emergency

Within the biofermentation sector NHU utilizes renewable corn as a raw material to produce target molecules through advanced Plan for Hazardous Waste Incidents have been developed to enhance incident response capabilities and maintain an accident-

microbial fermentation technology. By leveraging cell metabolism-based production the Company drives the strategic transition free record. The Company conducts annual internal environmental audits to verify effective implementation of its environmental

from fossil fuels to renewable energy sources. management systems.The Company has prepared Environmental Risk Assessment Report and Environmental Emergency Resource Investigation

Additionally NHU innovatively recycles biogas from wastewater treatment stations to NHU utilized Report to promptly identify and rectify potential environmental non-compliances continuously enhancing pollution monitoring

replace traditional fossil fuels. Through the integrated utilization of biogas in production and emergency response capabilities. This ensures rapid accurate reactions during environmental emergencies to minimize

processes and eco-friendly combustion systems the Company has reduced the million ecological impact. During the reporting period all NHU production bases maintained ISO 14001 certification with zero major

consumption of coal powder and natural gas. In 2024 NHU utilized 11.40 million 11.40 environmental incidents or penalties.standard cubic meters (SCM) of biogas achieving an annual carbon reduction of 18000 standard cubic meters

tons. (SCM) of biogas NHU establishes annual environmental management targets with progress tracking mechanisms incorporating environmental

performance into all employees’ compensation metrics to ensure effective implementation. In 2024 the Company successfully

The Company plans to expand investments in clean energy infrastructure and optimize Achieving an annual achieved all its environmental targets realizing a 6% year-on-year reduction in COD and an 8% decrease in wastewater

the energy structure across its operations. carbon reduction of discharge per output value of CNY 10000 compared to the previous year.In 2024 NHU achieved a 7.67% reduction in energy consumption intensity compared to tons

the previous year reflecting significant energy-saving progress. 18000 2024 Environmental Management Targets Target Achievement 2025 Environmental Management Status Targets

Compared with the previous year the COD per output Achieved The COD per output value of CNY 10000 will

Indicator Data in 2024 Unit value of CNY 10000 will decrease by ≥ 5%. decrease by 5% compared with 2024.Total Energy Consumption11 809200 Ton of standard coal Compared with the previous year the wastewater The wastewater amount per output value of

amount per output value of CNY 10000 will decrease Achieved CNY 10000 will decrease by 2% compared

Direct Energy Consumption 560600 Ton of standard coal by ≥ 2%. with 2024.Indirect Energy Consumption 248600 Ton of standard coal All wastewater and waste gases were discharged in All wastewater and waste gases were

compliance with standards and hazardous waste are Achieved discharged in compliance with standards

disposed of legally. and hazardous waste are disposed of legally.NHU has established a comprehensive HSE training system by formulating and implementing the HSE Training Management

Rules to ensure that the environmental awareness and skills of all staff members meet the job requirements. In 2024 the

Company achieved 100% coverage through systematic environmental training programs for all staff. For new employees the

Company implements an "Environmental Access" mechanism requiring completion of mandatory environmental training hours

and passing competency assessments before obtaining formal job qualification. Prior to equipment maintenance the Company

conducts specialized environmental training for contracted maintenance personnel mandating strict adherence to corporate

environmental management requirements during maintenance activities. The Company routinely supervises and inspects the

11 T he standard used for calculating energy consumption is the General Rules for Calculation of Comprehensive Energy Consumption implementation of environmental protection measures at maintenance sites.

(GB/T2589-2020).

65 66Clean Production Waste Gas Management

NHU has continuously enhanced its clean production management system. In 2024 the Company revised and issued the NHU attaches great importance to waste gas treatment especially in the management of unorganized waste gas in the factory

Solid Waste Management Regulations to comprehensively advance the "reduction valorization and harmless disposal" of areas. It has implemented efficient and sustainable solutions to advance the construction of "odor-free factories".solid waste. Through collaborative R&D and the introduction of internationally advanced three-waste disposal technologies and

equipment NHU has progressively increased waste valorization efficiency establishing a solid foundation for developing eco-

friendly factories. Adhering to the full-process clean production principle of "source reduction process control and end-of-pipe

treatment" the Company strengthens fundamental process research and optimizes production workflows to minimize waste Case Heilongjiang NHU Waste Gas Management

generation and discharge. Leveraging vertical integration advantages across its value chain NHU actively develops green

process technologies that enable circular utilization of intermediates catalysts and by-products. This has resulted in significant

reductions in wastewater waste gas emissions solid waste discharge and production-related pollutant emissions.Heilongjiang NHU Biotechnology Co. Ltd. ("Heilongjiang NHU") has implemented a systematic management

framework encompassing source reduction process control and end-of-pipe treatment. The implementation of

unorganized waste gas collection and treatment from anaerobic tanks coupled with the incineration of collected gases

has fundamentally resolved odor issues in the surrounding areas and ensured compliant exhaust emissions.Pollution Prevention at Source Process Control End-of-pipe Treatment

Waste Management

Conduct research on clean production Establish a quantifiable multi-dimensional Explore paths for hazardous waste

projects such as fly ash optimization environmental evaluation plan in terms of disposal and achieve zero storage in

and sal t -containing wastewater wastewater waste gas solid waste and solid waste warehouses. NHU has achieved notable progress in waste valorization. By implementing comprehensive measures through new technologies

dezincification to reduce the pressure environmental hazard identification. and scientific management systems the Company has systematically advanced waste reduction valorization and harmless

on end treatment. Renovate the pre-treatment system disposal. For general solid waste NHU has established recycling mechanisms and external collaboration systems to achieve

of the sewage station to enhance the zero-landfill disposal. Notably several production bases of NHU have attained 100% comprehensive utilization of general solid

sewage treatment capacity. waste. In alignment with Zhejiang Province's "Near-Zero Landfill" Three-Year Campaign for Hazardous Waste Management

Zhejiang NHU Pharmaceutical Co. Ltd. has pioneered a fly ash valorization initiative. This innovation has reduced hazardous

NHU proactively adopts new materials process technologies and equipment to improve operational efficiency of equipment. waste landfill volume by 31.80% year-on-year in 2024 substantially mitigating environmental impacts.The Company prioritizes energy-efficient equipment selection process optimization and environmental technologies to reduce

both energy consumption and environmental pollution. Through comprehensive energy integration strategies encompassing The Company has set the goal of "reducing hazardous waste generation intensity 10% by 2030 against the 2023 baseline" and

heat coupling and steam-water balance optimization NHU actively employs advanced control technologies utilizing intelligent are committed to continuously minimizing hazardous waste emissions to mitigate environmental pollution.control systems and sensor technologies to monitor the operating conditions and energy consumption of equipment in real time.By conducting intelligent adjustments and optimized control we enhance the automation rate of equipment thereby reducing

energy consumption and improving operational efficiency.

67 68Ecological and Biodiversity Conservation Circular Economy

NHU has demonstrated exceptional performance in ecological conservation and biodiversity protection maintaining zero

incidents of soil contamination ecosystem disruption or animal testing throughout the reporting period. For new construction NHU adheres to a green operation philosophy and fully implements the circular economy model. We enhance the utilization

projects the Company proactively sources cost-effective earthwork and slag resources achieving 100% on-site backfilling for of renewable resources and advance the deep integration of chemical products with biotechnology contributing to industry

some factory areas. This circular approach optimizes resource efficiency while minimizing natural resource consumption. progress and ecological sustainability.Indicator Data in 2024 Unit Management of Water Resources

Total Amount of Harmless Waste 229292.18 Ton

NHU maintains a rigorous water resource management framework with the President bearing ultimate accountability. The

Quantity of Harmless Waste Recycling 218137.77 Ton ESG Management Committee oversees water management strategies and performance metrics while each production base

establishes annual water conservation targets aligned with operational requirements and conducts regular progress reviews. The

Total Amount of Hazardous Waste 109122.16 Ton Company has implemented a tiered water recycling system achieving efficient water resource utilization through technological

innovation process optimization and refined management. In 2024 NHU successfully submitted its response to the CDP Water

Landfill Rate of Hazardous Waste 4.06 % Security Questionnaire and received a rating B-.Water Conservation from Source

In 2021 Shangyu NHU was awarded Reduce the consumption of chilled water and circulating water as well as the amount of wastewater generated through

the title of Zhejiang Province's first batch of process improvement and cascade utilization of water quality."Waste Free Factories"

Water Reuse

Advance technologies including water reclamation rainwater reuse and electrodialysis reversal (EDR) water treatment

In 2022 Heilongjiang NHU was awarded to enhance wastewater recycling/reuse rates achieving remarkable water conservation results.the honorary title of "National Green Factory"

Optimal Discharge

Introduce sophisticated treatment equipment from abroad to reduce the generation of industrial wastewater; Optimize

In 2024 Zhejiang NHU was selected as water-saving management and circulating water systems and strengthen water quality monitoring for optimal

one of the first batch of key cultivation units for discharge."zero waste enterprise groups" in Zhejiang Province

Case Comprehensive Management of Water Resources in Shangyu NHU

Green Office Shangyu NHU exemplifies environmental responsibility through its innovative water recycling practices. By

implementing a full-process management strategy that encompasses "source reduction process control and end-

NHU actively implements green office practices by optimizing the management of air conditioning lighting water systems and of-pipe treatment" the Company systematically enhances water efficiency. Guided by its "service + supervision"

other facilities while cultivating employee awareness of resource conservation. Additionally the Company has adopted paperless environmental management philosophy Shangyu NHU has conducted clean production initiatives including COD

office initiatives through digital and intelligent platforms to reduce paper consumption enhance operational efficiency minimize reduction in wastewater and the separation of metal ions in workshop wastewater. These measures effectively alleviate

resource waste and establish a high-efficiency low-carbon green office ecosystem. NHU encourages employees to adopt green end-of-pipe treatment pressures. Additionally Shangyu NHU has upgraded the pretreatment system at its existing

commuting practices by installing EV charging stations across its industrial parks. The Company has developed photovoltaic (PV) wastewater plant significantly improving wastewater quality stability and treatment capacity.projects on vacant land parking sheds and office building rooftops utilizing green power for lighting. In 2024 the Shandong

NHU Pharmaceutical Base PV-integrated parking facility was commissioned generating approximately 1.60 million kWh of Concurrently Shangyu NHU has pioneered new chemical technologies and processes streamlining the co-production

electricity annually and achieving an annual carbon emission reduction of approximately 890 tons. process for vitamin series products. This innovation which was awarded the Second Prize of the National Technology

Invention Award achieves an annual wastewater reduction of over 50000 tons.In logistics NHU is pioneering a green transformation by deploying new energy vehicles (NEVs) optimizing logistics route

planning and utilizing less-than-container-load (LCL) consolidation to reduce shipment frequency and enhance logistics

efficiency.

69 70Case Comprehensive Utilization of Water Resources and Wastewater in Shandong NHU Circular Economy Development

We actively implement circular economy principles through systematic innovations in packaging material management

Shandong NHU enhances water efficiency and reduces wastewater discharge through technological innovation and establishing a comprehensive green packaging lifecycle management system. The Company has set an annual procurement

resource optimization. In 2024 the company conducted general solid waste identification and recycled the aqueous target of 200 tons of renewable raw materials to drive sustainable industry development.solutions generated in the production process reducing COD discharge by 17 tons and salt emissions by 25.50 tons.Full project implementation is projected to decrease annual wastewater discharge by 8000 tons.The company implements closed-loop water management through boiler blowdown water recycling. After temperature Source Control Process Optimization Innovative Packaging Form

reduction treatment the boiler blowdown water is diverted to the common rainwater recycling system. Following

purification by water treatment equipment the reclaimed water is repurposed for industrial applications. Furthermore

existing filtration infrastructure has been optimized to utilize treated rainwater as supplementary industrial water The Company has developed We have created a closed- Through technological

thereby enhancing comprehensive water utilization efficiency. a scientific procurement loop packaging system with innovation we have achieved

management system and standardized management for packaging reduction by adopting

established green procurement reusable materials like pallets liquid-phase material processing

partnerships with suppliers. By employing digital tracking to technology that replaces

implementing demand-driven monitor usage patterns and traditional solid packaging with

and specialized procurement optimize distribution processes. pipeline transportation systems.Indicator Data in 2024 Unit mechanisms we strictly control Bulk container trucks are now

the specifications quantities and preferentially used for material

quality of packaging materials at transfer. Aligned with customer

Water Recycling Utilization Rate 96.30 % the source effectively preventing requirements and internal

unnecessary purchases logistics needs we prioritize

and inventory accumulation. renewable packaging materials

Furthermore we collaborate including corrugated boxes

with raw material suppliers and steel drums and aluminum

packaging manufacturers to bottles significantly reducing

recycle used packaging drums environmental impact.and plastic pallets prioritizing

circular solutions for packaging

waste management.Case Improved Packaging Materials for Mycelium Residue Bags in Heilongjiang NHU

Heilongjiang NHU has innovated packaging processes by developing mycelium residue bags using polypropylene

granule blow-molding technology. The incorporation of recycled feedstock into raw materials enhances the eco-

performance of these bags advancing waste valorization and providing practical solutions for circular economy

implementation.Case Conservation and Recycling of Packaging Materials in Shandong NHU Industrial Park

At Shandong NHU Industrial Park we continuously optimize packaging specifications and structural designs according

to product characteristics and customer requirements maximizing material efficiency and recyclability. Internal

subsidiaries have achieved 100% circular utilization of packaging materials for intra-park product transfers. Meanwhile

without compromising quality we have reduced the thickness of certain product packaging bags. These changes yield

a 20% reduction in plastic usage and a 33% decrease in paper consumption significantly lowering overall packaging

material requirements. Decommissioned packaging materials are cleaned and repurposed for filling waste-derived

materials achieving resource reuse.

71 72Appendixes Aspect Topic Indicator Unit Data in 2024

Total energy consumption Ton of standard coal 809200

Appendix I: Key Performance Table - Direct energy consumption Ton of standard coal 560600

- Indirect energy consumption Ton of standard coal 248600

Coal consumption Ton 781000

Aspect Topic Indicator Unit Data in 2024 Natural gas consumption 10000 standard cubic meters 4708

Operating revenue CNY 216.09 Gasoline consumption Liter 0

Economic (hundred million)

Diesel consumption Liter 110947

Governance Performance Total assets CNY 429.89

Performance (hundred million) Energy consumption intensity Ton of standard coal/ton of production 0.59

Corporate

Governance Number of directors Person 11

Proportion of decrease in energy consumption

intensity compared to the previous fiscal year % 7.67

Nitrogen oxide (NOX) emissions Ton 261.52 Electricity consumption Ten thousand kWh 150600

Ozone depleting substances (ODS) emissions Ton 4.94

Electricity intensity KWh/ton of production 1091

Emissions Sulfur oxides (SOX) emissions Ton 60.66

Purchased electricity Ten thousand kWh 136420

Volatile organic compounds (VOCs) emissions Ton 85.73 Utilization of

Resources Photovoltaic power generation Ten thousand kWh 1034

Particulate matter emissions Ton 19.05 Environmental

Performance Proportion of clean energy consumption % 2.06

Total amount of general solid waste Ton 229292.18

Consumption of renewable resources Ton of standard coal 16671

Intensity of general solid waste Ton/ton of production 0.17 - Total amount of solar energy used by the

Waste Ton of standard coal 1271

Total amount of hazardous waste Ton 109122.16 Company

- Total amount of green energy purchased by the

Intensity of hazardous waste Ton/ton of Ton of standard coal 4331production 0.08 Company

Environmental

Performance - Total amount of biomass energy used by the Total GHG emissions (Scope 1 and Scope 2) Ton of carbon dioxide equivalent 2783442.82 company

Ton of standard coal 11069

- Scope 1 GHG emissions Ton of carbon 765023.45 Proportion of renewable resources

12%2.06

dioxide equivalent

- Proportion of solar energy used by the % 0.16

- Scope 2 GHG emissions Ton of carbon Companydioxide equivalent 2018419.37

- Proportion of green energy purchased by the

Greenhouse Ton of carbon Company % 0.54

Gas (GHG) GHG emission intensity (Scope 1 and Scope 2) dioxide equivalent/ 2.02

ton of production - Proportion of biomass energy used by the % 1.37

Ton of carbon Company

- Scope 1 GHG emission intensity dioxide equivalent/ 0.55 Management Total water intake Ton 15732000

ton of production of Water

Ton of carbon Resources Fresh water intake Ton 15732000

- Scope 2 GHG emission intensity dioxide equivalent/ 1.46

ton of production

12 Proportion of renewable resources=Consumption of renewable resources/Total energy consumption*100%

73 74Aspect Topic Indicator Unit Data in 2024 Aspect Topic Indicator Unit Data in 2024

Total water consumption Ton 15732000 Proportion of women in senior management % 25

Fresh water consumption Ton 15732000 Under 30 years old Person 4742

Water consumption intensity Ton/ton of production 11.40 Number of

employees by age 30-50 years old Person 6092

Water reuse Ton 409200000 Employee

Employment Over 50 years old Person 535

Water recycling utilization rate % 96.30 Total number of disabled employees employed Person 34

Management Discharge amount of industrial wastewater Ton 7783289.53 Total number of employed veterans Person 210

of Water

Resources Number of new employees Person 778

Discharge intensity of industrial wastewater Ton/ton of production 5.64

Employee turnover rate % 5.07

COD emissions Ton 1636.40

Male % 4.71

Environmental Employee turnover Ammonia nitrogen emissions Ton 34.15 rate by gender

Performance Female % 6.52Employee

Total phosphorus emissions Ton 21.16 Turnover

Under 30 years old % 8.99

Total nitrogen emissions Ton 93.97 Employee turnover

rate by age 30-50 years old % 2.04

Packaging material consumption Ton 27432 Over 50 years old % 1.09

Social

- Wood/paper fiber consumption Ton 16301 Performance Employee's Percentage of labor contract coverage % 100

Rights and

- Metal consumption Ton 7014 Interests Percentage of employees with social insurance % 100

Packaging

Materials

- Plastic consumption Ton 4117 Physical examination rate of employees % 100

OHS examination rate of employees % 100

Intensity of packaging materials used Ton/ton of production 0.02

Number of work-related deaths Person 0

Amount of recycled packaging materials Ton 4.50

Proportion of factories certified by ISO 45001

Total number of employees Person 11369 OHS Management System

%100

Occupational

Senior management Person 4 Investment amount of work-related injury Health insurance CNY 10000 825.11

and Safety

Middle management Person 372 (OHS)

Number of Personnel coverage rate of work-related injury

employees by level insurance

%100

Social Employee

Performance Employment General management Person 750 Investment amount of work safety insurance CNY 10000 122.63

Ordinary employees Person 10243

Number of OHS training sessions conducted Times 209

Number of Male Person 9125

employees by Proportion of employees covered by OHS % 100

gender Female Person 2244 training

75 76Aspect Topic Indicator Unit Data in 2024 Aspect Topic Indicator Unit Data in 2024

Training participation rate % 100 Product R&D Number of products with carbon footprint certificates Nos. 14

Number of training sessions conducted Times 4166

Total number of suppliers Nos. 4192

Male % 80.26

Proportion of trained Mainland China Nos. 4153

employees by gender

Female % 19.74

Number of suppliers by Hong Kong Macau Nos. 2

Male Hour 370878 region and Taiwan

Total training hours by Supply Chain

Staff gender Management

Training and Female Hour 108032 Overseas Nos. 37

Development

Total training hours for employees Hour 478910 Suppliers' signing rate of Integrity Agreements % 100

Average training hours per employee Hour 42.12 Amount of delayed payments to small and

medium-sized enterprises CNY 10000 0

Average training hours Male Hour 40.64 Directors Person Times 83

per employee by

gender Female Hour 48.14 Supervisors Person Times 310

Anti-corruption training

Annual training expenditure amount CNY 10000 706 attendances Senior management Person Times 762

Percentage of products recalls attributable to Employees Person Times 10485

quality deficiencies in the total number of sold % 0

Product or delivered products

Quality and Directors Person 11

Social Service Complaint handling rate regarding products and Social Supervisors Person 5

Performance services % 100

Number of anti-

Performance corruption training

participants Senior management Person 4

Number of information security training sessions

Data Security conducted

Times 76

Anti- Employees Person 11365

and Privacy corruption

Protection Proportion of employees covered by information Directors % 0.10

security training % 100

Supervisors % 0.04

Proportion of anti-

R&D investment (funds related to technological CNY corruption training

innovation) (hundred million) 10.36 Senior management % 0.04

Total number Person 2867 Employees % 99.82

R&D Team

Proportion % 25.22 The management's signing rate of the Integrity

Agreements % 100

Number of valid patents Nos. 777

Employees' signing rate of the Integrity

Product R&D Agreements

%100

Number of invention patents applied to the main

business Nos. 405 Number of corruption lawsuits filed or concluded Nos. 0

Number of invention patent applications Nos. 114 Total investment in rural revitalization CNY 10000 30

Number of authorized invention patents Nos. 76 Public Welfare Investment in public welfare and charity

and Charity undertakings CNY 10000 256

Number of trademark rights Nos. 463 Undertakings

Number of people participating in volunteer

Number of copyrights Nos. 274 activities Person 646

77 78Appendix II: Self-Regulatory Guidelines No. 17 for Companies Listed

on Shenzhen Stock Exchange—Sustainability Report (For Trial

Implementation)

Dimension No. Topic Clause Chapter of the Report Dimension No. Topic Clause Chapter of the Report

1 Climate response Articles 21 to 28 Responding to Climate 13 Supply chain security Article 45 Responsible Supply ChainChange

14 Equal treatment of SMEs Article 46 Responsible Supply Chain

2 Pollutant discharge Article 30 Clean Production

Product Quality and Safety

3 Waste disposal Article 31 Clean Production Product and service safety Customer Services

Community 15 and quality Article 47 Empowering Industrial

4 Ecological and biodiversity protection Article 32 Clean Production

Development

Data Security and Data Security and Customer

Environmental

5 Environmental compliance

16 Customer Privacy Article 48 Privacy Protection

management Article 33 Environmental Management

17 Employees Article 50 Employee Well-being

6 Energy utilization Article 35 Energy Utilization

18 Due diligence Article 52 Compliance Management

7 Water resources utilization Article 36 Management of Water Resources

19 Stakeholder engagement Article 53 Stakeholder Engagement

Sustainability-

Green Office related

8 Circular economy Article 37 Circular Economy governance 20 Anti-commercial bribery Article 55 Business Ethics

Development and anti-corruption

9 Rural revitalization Article 39 Public Welfare and Charity

21 Fair competition Article 56 Business Ethics

Undertakings

10 Social contributions Article 40 Public Welfare and Charity Undertakings

Digital and Intelligent

Community Management System

11 Innovation Article 42 Digital and Intelligent Actions

R&D and Innovation

Intellectual Property Protection

12 Ethics of science and technology Article 43 N/A

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