2025 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT About this Report Message from the Chairman About NHU ESG Strategy and Governance Green Development for Responsible Commitment: Integrity and Compliance: a Low-Carbon Future Co-Creating a Better Life Fortifying Governance Foundations Appendixes
About this Report Data Sources
The data used in this Report are derived from the Company’s internal official documents internal statistical data and
relevant publicly available materials. Key financial performance data are sourced from the Annual Report 2025 of
Report Briefing Zhejiang NHU Co. Ltd. which has been approved by the Company’s Board of Directors. Unless otherwise specified all
amounts presented in this Report are in CNY. In the event of any discrepancy between the financial data presented in
this Report and those disclosed in the Company’s audited Annual Report 2025 the Annual Report 2025 shall prevail.Since releasing its first social responsibility report in 2008 Zhejiang NHU Co. Ltd. ("NHU") published its inaugural
Environmental Social and Governance (ESG) Report in 2025. This report is the second ESG report released by NHU
which presents NHU's ESG philosophy and commitments along with the Company's specific practices and key
achievements in the ESG domain. Report Acquisition Method
Reporting Boundary This Report is available in both Chinese and English versions for readers' reference. In case of any discrepancies the Chinese version shall prevail. It can be viewed and downloaded on the Company's website (https://www.cnhu.com).For ease of reading unless otherwise specified "Zhejiang NHU Co. Ltd." and its subsidiaries are collectively referred
to as "Zhejiang NHU" "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 2025 to December 31 2025. However to maintain information
continuity and integrity some content may extend beyond this timeframe. E-mail: 002001@cnhu.com
Address: No. 418 Xinchang Dadao West Road Qixing Sub-district Xinchang County Zhejiang Province
Reporting Standards China
Tel.: +86 575 86017157
Ministry of Finance of the People's Republic of China: Sustainability Disclosure Standards for Business Enterprises –
Basic Standard (Trial)
Ministry of Finance of the People's Republic of China: Sustainability Disclosure Standards for Business Enterprises No.
1 – Climate (Trial)
Self-Regulatory Guidelines No.17 for Companies Listed on Shenzhen Stock Exchange - Sustainability Report (For Trial
Implementation) issued by Shenzhen Stock Exchange
The United Nations Sustainable Development Goals 2030 (UN SDGs)
Sustainability Reporting Standards by the Global Reporting Initiative (GRI Standards).
01 022025 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT About this Report Message from the Chairman About NHU ESG Strategy and Governance Green Development for Responsible Commitment: Integrity and Compliance: a Low-Carbon Future Co-Creating a Better Life Fortifying Governance Foundations Appendixes
Message from the Chairman
Against the backdrop of accelerating global sustainable development climate change resource
constraints and industrial transformation are profoundly reshaping the corporate operating
environment. In 2025 NHU remained committed to the philosophy of sustainable development
continuously strengthening corporate governance and actively fulfilling ESG responsibilities. Confronting global climate change and ecological challenges we remain steadfast in our
The Company accelerated its green and low-carbon transformation achieved breakthroughs in green development mission.technological innovation and focused on building a mutually reinforcing industrial ecosystem— Ecological civilization represents the inevitable direction of human progress. We have integrated the "Dual Carbon" goals and
contributing its corporate strength to creating a better life and advancing social sustainability. sustainable development principles throughout our operations systematically advancing energy structure optimization green
manufacturing upgrades and efficient resource utilization. We accelerated the construction of green and low-carbon factories
and industrial layout optimization continuously enhancing environmental performance and operational resilience. We commit to
reducing greenhouse gas emissions intensity per unit of revenue by 25% by 2030 compared to the 2023 baseline and achieving
carbon neutrality by 2060—fulfilling global sustainability expectations through concrete action.By converging diverse strengths we jointly promote balanced development.In the pursuit of high-quality development we have continuously deepened collaboration with our stakeholders. Guided by an
innovation-driven approach the Company has focused on pioneering key technologies promoted coordinated industrial growth
and steadily enhanced its capabilities in green smart manufacturing and product value. Upholding the "Harmony" philosophy
we continuously enhance employee safeguards and optimize talent development systems to forge a community of shared
destiny. We are dedicated to establishing a responsible supply chain and product lifecycle management systems consistently
delivering premium safe and reliable products and services to customers. Concurrently we actively fulfill social responsibilities
supporting charitable initiatives including rural revitalization educational assistance and ecological conservation with total
contributions reaching CNY 5.53 million. We march forward with stakeholders to jointly build a Beautiful China and create a
prosperous future.Establishing a high-standard governance system we earn trust through value creation.Integrity and compliance form the foundation of NHU's steady growth. We strengthen external image-building through
enhanced information disclosure and investor communication boosting transparency and market confidence. Simultaneously
we optimize internal governance by refining systems covering business ethics and intellectual property protection improving
decision-making processes and reinforcing risk control thereby solidifying the basis for value creation. In 2025 the Company
received an A rating in Shenzhen Stock Exchange's information disclosure evaluation for the 17th consecutive year. It was also
honored with awards including the "19th Top 100 Most Valuable Main Board Listed Companies" and the "2025 Zhejiang TOP 30
Listed Companies for Best Internal Control". We recognize that only by fortifying governance foundations can we withstand
challenges and achieve sustainable progress.Looking ahead as a technology-driven enterprise serving the global market NHU will remain committed to the
mission of "Innovating Chemistry for a Better Life". We will further integrate sustainable development strategies into
our operations drive green and low-carbon transformation through technological innovation and actively respond
to global challenges. In doing so NHU strives to achieve harmonious coexistence between humanity and nature
while consistently delivering long-term stable and comprehensive value.Chairman Hu Baifan
Zhejiang NHU Co. Ltd.
03 042025 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT About this Report Message from the Chairman About NHU ESG Strategy and Governance Green Development for Responsible Commitment: Integrity and Compliance: a Low-Carbon Future Co-Creating a Better Life Fortifying Governance Foundations Appendixes
About NHU Global Footprint
The Company is firmly advancing its internationalization strategy with its core sales and R&D functions already operating on
a global scale. It is accelerating the layout of overseas production bases and its business network has now expanded into key
Company Profile Asia-Pacific markets—including Singapore Japan and Vietnam—as well as 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 service of functional chemicals. Through providing integrated solutions spanning nutrition & health
personal & home care transportation environmental protection and energy sectors we serve customers across more than 100
countries and regions. Our high-quality eco-friendly and low-carbon products continuously improve human well-being while
generating sustainable value for stakeholders progressing toward our vision as a global leader in functional chemicals solutions.Provided Among China's
Founded in over 100 Top 100 Fine
1999 comprehensive Chemical
solutions Companies
Listed in
2004
Among China's
Top 100 Listed
Companies
NHU Global Layout
05 062025 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT About this Report Message from the Chairman About NHU ESG Strategy and Governance Green Development for Responsible Commitment: Integrity and Compliance: a Low-Carbon Future Co-Creating a Better Life Fortifying Governance Foundations Appendixes
Development History
Corporate Principles Core Values Corporate Morale
Creating Wealth Elevating New Harmony and Union Pursue Pragmatism Innovation
Employees and Benefiting Society Quality and Efficiency
In 1999 NHU was established by Xinchang County Synthetic Chemical Factory as the initiating entity
In 2003 The construction of Shangyu Base commenced Management Philosophy Employee Code of Conduct
Creating Wealth Maintaining Honesty Focused-mindset
Balance and Sustainable Progress Diligence and Thrifty
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
Administrative Staff Code of Conduct Corporate Motto Corporate Image
In 2006 The development of Coenzyme Q10 was successfully completed marking its entry into the Modeling Accountability Vigilance Conduct Oneself With Honesty and Aim High But Firmly-grounded
fermentation sector and Self-sacrifice Do Everything in a Thorough Manner
In 2008 The construction of Shandong Base commenced Company Honors
In 2013 Zhejiang NHU Special Materials Co. Ltd. was established signaling NHU's expansion into the new Honor Awarded by Winner / Project
materials sector
2025 China's TOP 10 Innovative Fine Chemical China National Chemical Information Center China
In 2014 The construction of Shandong NHU Amino Acids Co. Ltd. commenced marking NHU's foray into Companies (Ranked 1st) Chemical Industry Information Association
Zhejiang NHU Co. Ltd.the amino acid sector
2025 China's TOP 100 Fine Chemical Companies China National Chemical Information Center China
(Ranked 1st) Chemical Industry Information Association Zhejiang NHU Co. Ltd.In 2018 The construction of Heilongjiang Base commenced laying the foundation for NHU's advancements
in bio-fermentation 2024-2025 Information Disclosure Rating A
for Shenzhen Main Board Listed Companies Shenzhen Stock Exchange Zhejiang NHU Co. Ltd.The NHU Life and Health Industrial Park was completed heralding a new journey in human (Awarded for 17 Consecutive Years)In 2021
nutrition 16th China Listed Companies Investor Relations
Management Tianma Award Securities Times Zhejiang NHU Co. Ltd.NHU established a joint venture with China Petroleum & Chemical Corporation (SINOPEC) to form 19th Most Valuable Main Board Listed
In 2023 Ningbo Zhenhai Refining & Chemical NHU Biotechnology Co. Ltd. The construction of the 180000- Companies TOP 100 Securities Times Zhejiang NHU Co. Ltd.ton liquid methionine project was also initiated
EcoVadis Gold Medal Corporate Social Responsibility (CSR) Rating Platform Zhejiang NHU Co. Ltd.National "Little Giant" Enterprise (Specialized Zhejiang NHU Pharmaceutical
In 2024 Tianjin NHU Materials Technology Co. Ltd. was established strengthening and expanding the new
material industry Refined Unique and Innovative)
Ministry of Industry and Information Technology Co. Ltd.TOP 10 Companies in the Flavor Sector in China's China National Light Industry Council & China Association Shandong NHU Pharmaceutical
Ningbo Zhenhai Refining & Chemical NHU Biotechnology Co. Ltd. successfully produced its first Light Industry of Fragrance Flavor and Cosmetic Industries Co. Ltd.In 2025 batch of liquid methionine products marking a major milestone in China's move toward large- 2024 Golden Bull Award for Listed Companies
scale eco-friendly liquid methionine production with Most Investment Value China Securities Journal Zhejiang NHU Co. Ltd.
2024 Golden Bull Award for Listed Companies
with Excellent Dividend Returns China Securities Journal Zhejiang NHU Co. Ltd.Corporate Culture
Cultural Characteristics Teacher Culture
The Wiser Is the Teacher; the More Capable the Teacher; Act in Modesty; Training for Excellence
NHU originated from a school-run enterprise with its first generation of entrepreneurs primarily consisting of 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 08Green Development for
a Low-Carbon Future
Our Actions
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 through
innovative fine chemical solutions and demonstrate Chinese enterprises' contributions to global
sustainability.2025 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT About this Report Message from the Chairman About NHU ESG Strategy and Governance Green Development for Responsible Commitment: Integrity and Compliance: a Low-Carbon Future Co-Creating a Better Life Fortifying Governance Foundations Appendixes
ESG Strategy ESG Key Areas Goals
Superior Products
Guided by our corporate mission "Exploring Chemistry Improving Life" and our core value of "New Harmony and Union" the
ESG strategy has been developed in accordance with the UN 2030 Agenda for Sustainable Development and fully integrated Digital and Intelligent Empowerment：
into our corporate strategic framework. Drive smart factory development by ● Build an ESG Information System.upgrading entire operations through ● Maintain zero incidents of data security and customer privacy breaches.digitalization automation informatization
networking and intelligentization.ESG Strategic Vision Pioneering Innovation Shared Prosperity Sustainable Future
ESG Strategic Goals To establish NHU as a global sustainability benchmark in functional chemicals Innovation-driven Development：
Drive industrial transformation through ● By 2030 the sales proportion of green and low-carbon products will exceed
product R&D and technological 15%.innovation delivering high-quality ●
Our ESG implementation framework comprises three strategic pillars - "Superior Products" "Harmonious Society" and By 2030 the coverage rate of quality certification system will reach 100%.products that contribute to a better life."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 Risk Management：Strengthen risk
protection and life quality enhancement driving balanced and sustainable development for humanity society and the planet. control frameworks to proactively ● Conduct due diligence investigations on negative impacts or risks related to
identify assess and address sustainable development every 2 years.sustainability-related risks and ● Complete risk and opportunity assessments related to short- medium- and
opportunities ensuring sustainable and long-term sustainable development every 2 years.resilient operations.ESG Key Areas Goals
Sustainable Development Strategy
ovation Sha Harmonious SocietyMap of Zhejiang NHU Co. Ltd. g In
n red
eri
n P
e tainable
ro
us
Futu spe
S re r Ethical Governance: Maintain
regulatory-compliant operations and ● Conduct a business ethics audit of the production legal entity every three
uphold the highest business ethics years.standards with zero-tolerance policies ● Annual business ethics and anti-corruption training coverage reaches 100%.ESG Overall Vision against corruption and malpractice.Superior Sustainable
Main Pillars Products Harmonious Environment
Society Employee Well-being: Cultivate inclusive ● By 2030 the proportion of female senior management will reach 20%.and “Harmonious” corporate culture
● Each employee has an annual learning time of more than 50 hours.safeguarding employee health while
enabling professional growth. ● Annual number of work-related deaths among employees: 0.Key Action Commitments
ital ma
ti
ov an or atu
k a t
d f
i Inte rans N o
M on-d llr ii ga v ee nt Em carbo
n T with on
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c
agem Dev erm Lo
w- armo ular
E
en elopme ent n t Ht Cir
c
Integrity Compliance Employee Well-being Shared Success and Prosperity
Shared Success and Prosperity: Address
societal needs and empower partners ● By 2028 all strategic suppliers will be included in the Company's ESG
to drive sustainable development across management and assessment.industries and communities.
1112
Pion
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ity
Dig
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Ris2025 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT About this Report Message from the Chairman About NHU ESG Strategy and Governance Green Development for Responsible Commitment: Integrity and Compliance: a Low-Carbon Future Co-Creating a Better Life Fortifying Governance Foundations Appendixes
ESG 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 carbon ● Achieve operational carbon neutrality by 2060 (Scope 1 + Scope 2).emissions to achieve a greener ● Compared to the 2023 baseline reduce greenhouse gas (GHG) emissions Board of Directors
energy mix and climate-friendly per unit of revenue 25% by 2030. Decision-
operations. making Level Strategy Committee
ESG Management Committee
● Environmental management system certification maintains a coverage rate
of 100%.Harmony with Nature: Enhance ● Maintain zero 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 ● Compared to the 2023 baseline reduce industrial waste emission intensity
human-nature coexistence. 10% by 2030. Senior Management
● Compared to the 2023 baseline reduce hazardous waste generation
intensity 10% by 2030.Environmental and Social Responsibility
ESG Office Sustainability Working and Comprehensive
Circular Economy: Implement water Group Governance Working Group
conservation and recycling programs
● Compared to the 2023 baseline the Company's water recycling utilization
while promoting closed-loop resource Executive rate is expected to exceed 95% by 2030.utilization and renewable material Level
●
adoption to build resource-efficient The purchased renewable raw materials reach 200 tons/year. Headquarters Business Divisions and
circular economies. departments Subsidiaries/Branches
In December 2025 the Company publicly disclosed its Environmental Social and Governance (ESG) Management System tracking external regulations and policy developments staying informed of changes in legal requirements regulatory
further clarifying its ESG governance structure and responsibilities: frameworks and international standards and conducting periodic reviews of the Company's sustainability policies
and initiatives; Coordinating the development of corporate ESG goals and dual materiality evaluations and analyzing
The Board of Directors serves as the supreme decision-making body for the Company's ESG management assuming sustainability-related risks and opportunities; Overseeing stakeholder engagement activities and preparing sustainability
ultimate responsibility for the truthfulness accuracy and completeness of ESG-related work and report contents. It reports.oversees the overall ESG strategy and make decisions on material matters. Under the Board the Strategy Committee
is responsible for researching and making recommendations on the Company's long-term strategy major investment The ESG Management Committee oversees two ESG working groups: the Environmental and Sustainability Working Group
decisions and ESG-related matters. The Committee also reviews evaluates and supervises significant ESG matters and the Social Responsibility and Comprehensive Governance Working Group. Aligned with the Company's ESG strategic
including developing strategies or policies overseeing the implementation of ESG plans and performance assessments roadmap these working groups operate through clearly defined lead departments and collaborating departments that
identifying and evaluating risks and opportunities and reviewing the annual ESG Report and related disclosures with all jointly drive the implementation of specific ESG strategic initiatives.findings reported to the Board.To strengthen the execution of ESG initiatives at the organizational level and enhance the efficiency of ESG
Under the Strategy Committee an ESG Management Committee has been established. This Committee is responsible for implementation clearly defined responsible departments and supporting departments have been established under the
promoting and implementing the Company's ESG-related matters including but not limited to assessing and researching ESG working groups. Together they advance the execution of specific tasks under the ESG strategy. Each responsible
ESG-related policies formulating the Company's ESG goals and strategies and supervising their implementation. department has designated at least one ESG Action Officer and one Implementation Coordinator forming an ESG
liaison network. These officers and coordinators are responsible for developing and driving the annual work plan and
The ESG Management Committee has established an ESG Office which is responsible for leading and coordinating the projects; participating in goal setting and data collection to ensure the breakdown and realization of targets; maintaining
ESG Management Committee's functions overseeing the implementation of tasks and decisions by ESG working groups routine communication with stakeholders; organizing materiality assessments and data verification; and supporting the
and reporting to the ESG Management Committee. The ESG Office performs the following key responsibilities: Regularly preparation of the ESG Report.
13 142025 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT About this Report Message from the Chairman About NHU ESG Strategy and Governance Green Development for Responsible Commitment: Integrity and Compliance: a Low-Carbon Future Co-Creating a Better Life Fortifying Governance Foundations Appendixes
Stakeholder Engagement Stakeholder Areas of Focus Communication and Response Channels
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 ● Business ethics and anti-corruption
development. In alignment with our industry characteristics and business nature we have identified key stakeholder groups ● Responsible supply chain ● Supplier conference
including employees customers shareholders & investors government & regulatory bodies suppliers & business partners and ● Information security and privacy ● Supplier training
local communities.Suppliers and protection ● Whistleblowing hotline and email
Partners ● Compliance operation
Stakeholder Areas of Focus Communication and Response Channels
● Environmental management ● Provision of jobs
● Biodiversity ● Official account and website
● Customer relationship management ● Official account information ● Rural revitalization ● Assisting in infrastructure
● Product quality and safety disclosure ● Implementing national strategies construction
● Innovation and R&D ● One on one communication channel Community and ● Public welfare and charity ● Public welfare and charity activities
Information security and privacy ● Factory tour the PublicCustomers ● undertakings ● Environmental Open Day
protection ● Customer complaint hotline
In 2025 the Company strictly complied with laws regulations and regulatory requirements such as the Guidelines for Investor
● Compliance operation ● Corporate annual reports and Relations Management of Listed Companies and the Stock Listing Rules of the Shenzhen Stock Exchange. Centered on
transparent communication professional services and full-cycle management the Company continues to deepen its investor
● Corporate governance announcements
Field trip relations and stakeholder communication system ensuring timely accurate and transparent information delivery and effectively Risk management ● ● safeguarding the legitimate rights and interests of all shareholders and stakeholders.● Business ethics and anti-corruption ● Official account platform
Shareholders Return on investment ● Reception Day event The Company further improves its internal policy framework including the Investor Relations Management Policy and the Market ●
and Investors Roadshows and special meetings Value Management Regulations and optimized two-way online and offline communication mechanisms. A full-channel ● Information transparency ● communication matrix has been established to cover a diverse range of stakeholders including institutional investors minority
● Responding to climate change ● Investor relations website shareholders analysts and the media. In 2025 the Company carried out extensive and high-frequency investor relations
activities. Throughout the year it organized or participated in a total of 24 investor meetings including performance briefings
brokerage strategy sessions and dedicated exchange meetings. The Company also hosted one on-site investor tour and
Compliance operation production base visit reaching over 300 investors and analysts in total. Online the Company responded to investor inquiries on ●
a regular basis maintaining a 100% response rate on the Shenzhen Stock Exchange’s Interactive Easy Platform. These efforts
● Corporate governance
● Responding to government inquiries helped fully communicate the Company’s strategy and business performance reinforcing the market’s long-term understanding
● Tax payment according to law of the Company’s value.● Participating in government training
● Business ethics and anti-corruption
●
Government Regulatory assessment Since its listing the Company has consistently paid annual cash dividends as a way to give back to its investors. In 2025 the ● Implementing national strategies
and Regulatory ● Special meeting Company implemented a special dividend an annual dividend and a semi-annual dividend distributing a total of CNY 2.762 ● Rural revitalization billion in cash. Since its listing in 2004 the Company’s cumulative cash dividends have reached CNY 16.114 billion while its total
Bodies
● Emission management proceeds from its initial public offering and subsequent refinancing amounted to CNY 6.452 billion. The total cash dividends paid
represent 249.75% of the total funds raised.● Employee's rights and interests ● President and General Manager's
● Training and development mailbox
● Occupational health and safety ● Rational suggestions
(OHS) ● Five mandatory visits and five
● Innovation and R&D mandatory conversations
● Intellectual property protection ● Staff and workers' representative
Employees congress
● Symposium & communication
● Internal reporting and complaint
hotline
15 162025 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT About this Report Message from the Chairman About NHU ESG Strategy and Governance Green Development for Responsible Commitment: Integrity and Compliance: a Low-Carbon Future Co-Creating a Better Life Fortifying Governance Foundations Appendixes
Identification and Analysis of Material Topics Environmental Social Governance
Absent major changes in internal/external environments NHU conducts a three-year cycle materiality assessment. A Emission Management
comprehensive evaluation occurs in Year 1. Results are verified in Years 2 and 3 to determine adjustment necessity. Employee's Rights and Interests
Resource and Energy Management
Materiality Topics Assessment Process
Year 1
Staff Training and Development
Occupational Health and Safety (OHS)
Circular Economy
Implementing National Strategies Environmental Management
Context Analysis and Dual Materiality Materiality Review Analysis
Topic Identification Evaluation Prioritization and Confirmation
Based on NHU's industry Stakeholder Through analysis NHU's ESG Management Innovation and R&D
characteristics business questionnaires were of questionnaire Committee subsequently Biodiversity
priorities and corporate administered with distinct findings and expert reviewed and approved Chemical Safety
development strategy versions for impact inputs the Company the material topics Customer Relationship Management
while considering external materiality and financial assessed the degree along with the finalized Responding to Climate Change
regulatory requirements materiality assessments to which each topic materiality matrix for
rating agency focuses enabling the evaluation impacts environmental corporate application.and incorporating of each ESG topic's social and economic Information Security and Privacy Protection
Compliance Operation
feedback from external materiality through these dimensions as well as Business Ethics and Anti-corruption Product Quality and Safety
stakeholders the dual lenses. business operations Public Welfare and Charity Undertakings Risk Management
Company has identified thereby establishing the
Responsible Supply Chain
its material topic list. materiality prioritization
of identified topics. Corporate Governance
Stakeholder Engagement
Years 2 and 3
General Materiality Moderate Materiality High Materiality
Financial Materiality
Internal verification and assessment Adjustment confirmation
In 2024 NHU conducted a dual materiality evaluation for sustainable development through a four-phase process: context
analysis & topic identification dual materiality evaluation materiality prioritization and review analysis and confirmation. This
methodology enabled us to systematically assess both the impact materiality and financial materiality of ESG topics to our
organization. In 2025 following assessment and verification the Company maintained the materiality assessment results from
the previous year with adjustments made as appropriate.
1718
Impact Materiality
General Materiality Moderate Materiality High MaterialityGreen Development for
a Low-Carbon Future
Our Actions
In response to the global challenges of climate and environmental change NHU adheres to
its green development mission. It proactively shoulders responsibilities actively responds to
China's "Dual Carbon" goals and deeply integrates into the global climate governance system.By continuously enhancing the efficient utilization of energy resources we promote the
coordinated advancement of production operations and ecological conservation striving to build
a sustainable development model where humans and nature coexist in harmony.Our Performance
● Energy consumption per output value of ● The COD per output value of CNY
CNY 10000 decreased by 10000 decreased by
7.53% compared to the 17.07% compared to
previous year the previous year
● The amount of wastewater generated per output ● The water recycling rate was
value of CNY 10000 decreased by
5.10% 96.54% compared to the previous year
● All wastewater and waste gases were discharged in compliance with standards and
hazardous waste were disposed of legally
SDGs2025 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT About this Report Message from the Chairman About NHU ESG Strategy and Governance Green Development for Responsible Commitment: Integrity and Compliance: a Low-Carbon Future Co-Creating a Better Life Fortifying Governance Foundations Appendixes
Addressing Climate Change Strategy
Viewing climate actions as a core strategic pivot for the Company's sustainable development NHU proactively aligns with
Addressing climate change remains an important mission of NHU. We include it in core strategic issues and continuously global climate governance goals and policy trends. Based on science we systematically identify and assess the physical risks
enhance our greenhouse gas management system. Guided by our low-carbon development principles of "Green and Low-carbon and transition risks posed by climate change. In the selection of new products and projects priority is given to carbon emission
Transition Energy Efficiency Enhancement Smart Management and Continuous Improvement" we drive the transition of the levels to seize development opportunities offered by low-carbon technologies and green markets. We deeply integrate climate
energy structure and reduction of GHG emissions. We implement green low-carbon and clean production practices to reduce governance into strategic planning and business decision-making for ongoing improvement in our climate resilience and low-
carbon emissions. In 2025 guided by the TCFD framework we systematically identified climate-related risks and opportunities carbon competitiveness. We also collaborate with supply chain partners to advance climate adaptation and emission reduction
and steadily advanced climate actions contributing to building a low-carbon future. actions contributing to the realization of global carbon neutrality goals through concrete actions.Governance
We have established a climate-related governance mechanism and built a climate governance structure with the Board Impact Risk and Opportunity Management
of Directors as the highest decision-making level the ESG Management Committee as the management level and the
Carbon Emission Management Task Force—comprising functional departments of the Headquarters business divisions and Through a comprehensive assessment of climate-related risks we have not only identified climate-related risks and opportunities
subsidiaries—as the execution level. This forms a top-down highly coordinated organizational system featuring clearly defined but also systematically identified prioritized and managed both physical and transition risks that may affect corporate assets.authority and responsibilities. This process has enabled the formulation of targeted response measures.We have established clear timeframes for climate-related risks and opportunities defining 1-2 years as short-term 3-5 years as
Composed of members of the Board of Directors is responsible for: medium-term and over 5 years as long-term. The specific climate-related risks and opportunities identified are as follows:
Overseeing climate change-related matters comprehensively;
Decision- Reviewing and approving the Company's climate change-related strategic plans;
making Physical Risks and Countermeasures
level Periodically reviewing climate change-related targets; and
Receiving reports from the management on climate change-related work at least once a year and
providing recommendations. Risk Category Potential Impact Response Measures Time Frame
The ESG Management Committee composed of senior executives is responsible for: Production facilities in coastal or low- Establish an early warning
lying areas may be shut down due to linkage system for climate and
Comprehensively planning and systematically advancing the Company's climate change-related Typhoon extreme weather such as typhoons monitor the drainage system of
initiatives; Rainstorm and rainstorms leading to delays in the the factory area in real time.Management Coordinating the formulation of climate-related policies and strategic plans; Acute Risks Flooding delivery of time-sensitive products. If Short-termand Urban floods or waterlogging occur workshops Issue environmental emergency level
Receiving reports from the execution level on climate change matters overseeing the implementation of waterlogging may be inundated prolonging the plans and conduct practical
climate policies and reporting to the Board Strategy Committee; and recovery period and resulting in drills to strengthen emergency
Approving and reviewing major climate-related initiatives at least once a year. significant economic losses.response capabilities.Retrofit workshop equipment for
A Carbon Emission Management Task Force composed of functional departments of the Headquarters energy saving to reduce energy
business divisions and subsidiaries is established with responsibilities as follows: loss.The Company's Carbon Management Department implements decisions plans and daily tasks; develops Prolonged high temperatures may Install photovoltaic power
annual plans and sets and breaks down corporate emission reduction targets every year; coordinates Prolonged raise workshop cooling costs increase generation equipment in the
and plans carbon emission management initiatives and regularly reviews the implementation progress. Heatwaves refrigeration energy consumption and
Long-term
factory area to reduce reliance
impact the stability of biological products.Execution on the traditional power grid
level Departments of the Headquarters business divisions and subsidiaries undertake translate and advance and alleviate electricity and
tasks identify climate-related risks and opportunities and implement climate response plans and carbon cost pressures during high-
reduction measures. temperature periods.Subsidiaries implement low-carbon development measures collect factory carbon emission data and Chronic Risks Construct a reclaimed water
conduct product carbon footprint verification to ensure the achievement of the Company's green reuse system to treat production
transition goals. Drought and High water intensity in chemical wastewater for non-production
Water Scarcity production could escalate costs during water scenarios such as Medium-termprolonged droughts. equipment cooling and floor
In 2024 we formulated the Carbon Management Manual the Energy Conservation and Carbon Reduction Management washing reducing the intake of
Regulations the Carbon Emission Monitoring Regulations and the Carbon Information Disclosure Guidelines among others fresh water.based on the TCFD framework and ISO 14090 Adaptation to Climate Change — Principles Requirements and Guidelines. In the
reporting year we continued to advance the operation of the greenhouse gas emission system and compiled the Greenhouse Rising sea levels may increase insurance Strategically plan new factory
Gas Accounting Guidelines. The information management platform of the Company enabled us to precisely capture emission Sea-Level Rise costs for coastal infrastructure and sites and adopt a "1+N" Long-term
data from various production bases providing solid data support for the Company to formulate scientific emission reduction threaten work safety and stability. distributed warehousing model.strategies and steadily move towards the "Dual Carbon" goals. In 2025 the Company invited Bureau Veritas to conduct
acceptance inspections on the operation of carbon management systems of its subsidiaries in Shangyu and Shandong.
21 222025 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT About this Report Message from the Chairman About NHU ESG Strategy and Governance Green Development for Responsible Commitment: Integrity and Compliance: a Low-Carbon Future Co-Creating a Better Life Fortifying Governance Foundations Appendixes
Transition Risks and Countermeasures
At the corporate level At the product level
Scope 1 and Scope 2 GHG emissions inventories were Carbon footprint verification was conducted for five
Risk Category Potential Impact Response Measures Timeframe completed for all subsidiaries as required by ISO finished products (HDI IPDA IPDI trimer and biuret)
Stricter emission requirements from 14064-1 in 2025; CDP Climate Change Questionnaire in 2025 and ISO 14067 product carbon footprint
Continuously optimize
Environmental evolving international and domestic was completed and submitted with a Rating B. certification was granted; environmental footprint
environmental protection
Regulation environmental regulations may Medium-term verification for two products in the moxifloxacin
infrastructure to ensure timely
Upgrades necessitate continuous investment hydrochloride series across the lifecycle was completed.regulatory compliance.in environmental facility upgrades.Enhance carbon emission data
Policies like the EU Carbon Border management optimize energy
Policy and Indicators and Targets
International Green Adjustment Mechanism (CBAM) management systems conduct
Legal Risks Medium-term
Trade Barriers may indirectly impact export carbon tariff stress tests and
product competitiveness. develop advanced market pricing Target Achievement Status of 2025 Target
strategies.Rising carbon costs across the In 2024 NHU proposed to reduce the carbon emission
Carbon Pricing and industrial chain may increase Actively participate in the carbon
Medium-term intensity per unit product by 25% by 2030 on the basis of Achieved
Taxation operational costs for chemical market. that in 2023. (Scope 1 Scope 2)
enterprises.Green technology R&D has become
Low-carbon Invest substantially in technology
Technical a critical competitive factor while
Technology R&D and deploy low-carbon Long-term Indicator 2025 2024 2023 Unit
Risks traditional processes may face
Transition Pressure technologies in advance.obsolescence risks.Scope 1 GHG emissions 897516.30 765023.45 686977.86 tCO e
Downstream clients and consumers Proactively collaborate with 2
are increasingly demanding downstream clients fully engage
products with stronger green in the development of their
Market Demand
Market Risks attributes which in turn poses green supply chains and provide Short-term
Transformation Scope 2 GHG emissions 1983945.93 2018419.37 1633950.65 tCO2e
higher requirements for companies customized low-carbon solutions
to provide environmentally friendly to enhance customer loyalty and
products. cement its place in the market.Strengthen communication and GHG emission intensity 2.47 2.62 2.83 tCO2e/Ton of production
interaction with stakeholders such
as environmental organizations
Growing Inadequate carbon reduction
Reputation communities and media; regularly
Environmental efforts may damage corporate Long-term
Risks organize open days symposiums Note: Starting from 2025 the reporting scope for product output has been adjusted to exclude intermediate products with data
Awareness reputation.and other events; promptly address for the 2023 baseline year and 2024 restated accordingly.societal concerns to establish a
responsible corporate image.Climate Change-related Opportunities
Opportunity Transformation Strategy Timeframe
Drive green and low-carbon product innovation and develop zero-carbon products;
Product Medium-term
verify carbon footprints for products to enhance green competitiveness.Expand international markets reduce the embodied carbon emissions of export
Market products through supply chain decarbonization and mitigate potential impacts from Medium-term
carbon border tariffs.Actively participate in the national carbon emissions permit trading market and obtain
Carbon Trading surplus carbon allowances through emission reduction projects to increase revenue; Long-term
explore diversified carbon asset operation models such as green electricity trading.
23 242025 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT About this Report Message from the Chairman About NHU ESG Strategy and Governance Green Development for Responsible Commitment: Integrity and Compliance: a Low-Carbon Future Co-Creating a Better Life Fortifying Governance Foundations Appendixes
Pollution Prevention and Ecosystem
Protection Drill for Secondary Environmental Emergency
To strengthen the ecological environment safety barrier Shandong
In strict compliance with relevant national laws and regulations such as the Environmental Protection Law of the People's NHU Industrial Park worked with the Binhai District Ecology and
Republic of China the Law of the People's Republic of China on the Prevention and Control of Atmospheric Pollution and the Environment Branch Emergency Management Bureau and other
Law of the People's Republic of China on the Prevention and Control of Environmental Pollution by Solid Wastes and those in entities to conduct a drill for a secondary environmental emergency.jurisdictions where we operate NHU implements environmental management throughout the production and operation process. The drill simulated a fire triggered by tank leakage in the factory
The Company actively practices the concept of green development comprehensively promotes clean production and resource area. The Company's emergency team rapidly responded efficiently
recycling and continuously enhances employees' green development awareness and the Company's sustainable development assembled and performed coordinated firefighting operations and
capabilities. hazard inspections containing fire spread immediately. The HSE
information platform allowed remote visual command dispatch.Environmental Management Integrated smart solutions including unified emergency command mapping and personnel positioning enabled dynamic
monitoring of the entire incident response process. This ensured comprehensive leakage risk control complete collection
Governance of abnormal wastewater and prevention of secondary environmental pollution at the source.This drill thoroughly tested the Company's practical response capabilities for environmental emergencies continuously
NHU emphasizes the leadership role of the management in environmental management defining environmental responsibilities enhancing employees' emergency handling proficiency and operation collaboration thereby establishing a robust
of all management levels and departments. Based on the ISO 14001 Environmental Management System and its production safeguard for the safety of both the industrial park and the ecological environment
reality the Company upgraded its HSE management system and updated its HSE Management Manual in 2025. Notably the
Company revised and formulated a total of 20 environmental-related institutional documents including policies objectives
and waste gas wastewater solid waste and environmental protection facility management measures. In 2025 the Company Attaching great importance to environmental protection training the Company has formulated and implemented the HSE
formulated the Management Rules for Ozone-Depleting Substances listing ozone-depleting substances such as refrigerants Training Management Rules. Through online and offline courses it continuously enhances the environmental awareness
involved in the Company's production and operations and implemented full life-cycle management requirements from of leaders and employees at all levels as well as the technical proficiency and professional competence of environmental
procurement storage and use to waste disposal. The Company fulfilled its responsibility for protecting the global ozone layer specialists.to support national compliance actions building a more solid compliance foundation for green and low-carbon development.During the reporting period all subsidiaries of NHU obtained ISO 14001 Environmental Management System certification. Indicators and Targets
Each subsidiary has developed emergency plans such as the Emergency Response Plan for Environmental Incidents and the
Special Emergency Plan for Hazardous Waste Incidents to enhance their capabilities to respond to and handle environmental The Company establishes annual environmental management targets with progress tracking mechanisms incorporating
emergencies. In case of significant changes in environmental risks the Company promptly revises emergency response plans; environmental performance into management remuneration metrics to ensure effective implementation of environmental
additionally in accordance with relevant regulations retrospective evaluations of emergency response plans are conducted protection measures.at least every three years with revisions made to such plans based on evaluation results and filed with the competent
local ecological and environmental authorities. To safeguard ecological bottom lines the Company leverages an automated Target
monitoring system to allow round-the-clock online monitoring of pollutants. We conduct environmental audits across subsidiaries 2025 Environmental Management Targets Achievement 2026 Environmental Management Targets
every year thereby ensuring effective implementation of the Company's environmental management requirements. Status
Compared with the previous year the COD per Compared with 2025 the COD per output value
Shangyu NHU Bio-Chem Co. Ltd. was included in the Positive List for Ecological and Environmental Supervision and Law output value of CNY 10000 will decrease by no Achieved of CNY 10000 will decrease by no less than 5%
Enforcement by the Shaoxing Municipal Bureau of Ecology and Environment. less than 5% (inclusive). (inclusive).Compared with the previous year the
Compared with 2025 the wastewater amount per
In 2025 wastewater amount per output value of Achieved output value of CNY 10000 will decrease by no less
CNY 10000 will decrease by no less than 2%
than 2% (inclusive).(inclusive).the Company recorded 0 environmental emergencies and All wastewater and waste gases will be All wastewater and waste gases will be discharged
no discharged in compliance with standards and Achieved in compliance with standards and hazardous waste incurred environmental penalties. hazardous waste will be disposed of legally. will be disposed of legally.No environmental emergencies Achieved No environmental emergencies
The Company has set the goal of "reducing the hazardous waste generation intensity by 10% by 2030 against the 2023
baseline" and are committed to continuously minimizing hazardous waste emissions to mitigate environmental pollution.Target 2025 Progress
Reduce the hazardous waste generation intensity by 10% by 2030
Achieved
against the 2023 baseline
2526，2025 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT About this Report Message from the Chairman About NHU ESG Strategy and Governance Green Development for Responsible Commitment: Integrity and Compliance: a Low-Carbon Future Co-Creating a Better Life Fortifying Governance Foundations Appendixes
Emission Management facilities like Regenerative Thermal Oxidizers (RTOs) gas-liquid incinerators and combustion furnaces the Company completely
collects and thoroughly treats organic waste gases. For heavily polluted weather conditions subsidiaries develop emergency
plans for emission reduction and implement "one policy for one factory" response mechanisms to ensure precise and effective
Strategy pollution control measures. Besides the Company focuses on odor issues by implementing an odor operation approval system
and encourages employees to proactively report odor points by giving rewards to them fostering whole-staff participation in
Focusing on emissions of major pollutants such as wastewater waste gases and solid wastes the Company has set environmental governance and continuously improving air quality management.quantifiable reduction targets. It reduces emissions of pollutants to safeguard employees' and surrounding community residents'
physical health enhancing the Company's social image deepening positive interactions with the community and achieving Shangyu NHU Bio-Chem Co. Ltd. Zhejiang NHU Pharmaceutical Co. Ltd. and Zhejiang NHU Special Materials Co. Ltd. were
synergistic development between the enterprise and its surrounding environment and residents. rated as Grade A enterprises in Air Pollution Prevention Performance Evaluation of Key Industries of Zhejiang Province.Impact on employees Empowering Air Pollution Control with Digital and Intelligent Means Leading Park
Through process improvements we improve the production environment reducing the impact of pollutants (such as Governance as a Benchmark
waste gases dust and noise generated during production) on employees. This lowers occupational disease risks and
protects employees' physical health. Additionally we enhance employees' work comfort and sense of belonging to As an odor control benchmark enterprise in Shangyu Economic and Technological Development Zone Zhejiang NHU
strengthen their environmental awareness and corporate identity. Pharmaceutical Co. Ltd. advances digital transformation in air pollution prevention becoming the first to connect
to Zhejiang Province's first intelligent monitoring traceability and warning system for odor in the industrial park.Impact on local community residents The company deployed 43 online odor monitoring points in key factory areas (including workshops tank farms and
boundaries) enabling 24/7 real-time monitoring of volatile odor substances.We effectively control end-of-pipe emissions of pollutants including wastewater and waste gases to reduce
contamination of surrounding air water bodies and soil. This mitigates health risks for community residents caused by
pollutant exposure and improves the quality of living environment in the community. By regularly holding Environmental
Open Days we invite neighboring residents to visit the plant premises utilizing "public standards" to evaluate the 所有废气均达标排放
Company's environmental protection efforts.Indicator 2025 Unit
Wastewater Management
Particulate matter 30.11 Ton
The Company's wastewater primarily originates from production processes domestic sewage within factory areas and initial
rainwater with key pollutants being chemical oxygen demand (COD) and ammonia nitrogen. All factories strictly implement Nitrogen oxides (NOX) 334.27 Ton
the management principle of "separation of clean and polluted water segregation of rainwater and sewage treatment by
classification and cyclic utilization" in their efforts to comprehensively advance efficient water resource utilization and pollution Sulfur dioxide (SO2) emissions 66.54 Ton
prevention. For source control workshops rigorously collected wastewater by classification and managed rainwater and sewage
by classification ensuring dedicated use of rainwater pipelines to eliminate mixed discharge of contaminated water. Regarding Volatile organic compounds (VOCs) 185.28 Ton
process control advanced technologies such as Catalytic Wet Air Oxidation (CWAO) and Mechanical Vapor Recompression
(MVR) were introduced for high-COD and high-salinity streams deepening treatment levels and effectively reducing pollutant
concentrations. Besides the Company promoted the construction of the reclaimed water reuse system to improve industrial Solid Waste Management
wastewater recycling rates. In 2025 456380000 tons of recycled water was reused representing an 11.5% increase from 2024.The Company continues to reduce freshwater intake and total wastewater discharge driving water resource recycling toward Always upholding the core principles of "reduction resource utilization and harmlessness" in its solid waste management the
higher standards. Company minimizes waste generation at the source and maximizes resource recycling. At the internal management level the
Company advocates for "zero off-site disposal of hazardous waste" with 53% of hazardous waste treated internally in 2025.In 2025
456380000 representing an11.5% Deep Processing of Phosphorus-Containing Residue to Achieve "Integrated Control
of Carbon and Pollution"
tons of recycled water was reused increase from 2024
1100 tons of phosphorus-containing residue generated by the
Company every year are incinerated in the Company's self-
Waste Gas Management built waste incinerator. Through technical upgrades about
350 tons/year of this residue are reprocessed into phosphorus-
For comprehensive waste gas management the Company adheres to an containing raw materials fully realizing the self-recycling of
integrated strategy of "source reduction process control and end-of-pipe phosphorus compounds. This significantly reduces hazardous
treatment" fully advancing the reduction efforts in Volatile Organic Compounds residue generation while substantially lowering carbon
(VOCs). By promoting raw and auxiliary material alternatives implementing dioxide emissions achieving "integrated control of carbon and
enclosed storage closed transportation and efficient collection/treatment for pollution".materials containing VOCs and constructing supporting sophisticated treatment
27 282025 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT About this Report Message from the Chairman About NHU ESG Strategy and Governance Green Development for Responsible Commitment: Integrity and Compliance: a Low-Carbon Future Co-Creating a Better Life Fortifying Governance Foundations Appendixes
In 2025
Resource Utilization of Fermented Bacterial Residue: Innovative Youpo Powder (UPF)
Boosts Green Aquaculture subsidiaries implementing a total of of which
Fishmeal is a costly component in traditional aquatic feed that relies on fishing. By converting fermented bacterial
residue into raw materials for aquaculture the Company developed a novel feed ingredient Youpo Powder (UPF) that 80 clean production projects 67 were successfully completed with significant results
partially replaces fishmeal. This resource utilization establishes a circular economy loop reducing the Company's
environmental disposal pressure while providing safe economical feed sources for downstream aquaculture. It
alleviates pressure on wild fish stocks and supports green farming and sustainable agricultural development.the Company cumulatively reduced saved steam cut wastewater
hazardous waste generation by consumption by discharge by
To implement the standardized "Five Immediate" management requirements for hazardous waste (immediate management
upon generation immediate packaging immediate weighing immediate labeling immediate warehousing) the Company 4425 tons 53000 tons 43000 tons
has upgraded its integrated smart equipment. This enables traceability from generation and transportation to utilization and
disposal of hazardous waste. Besides the Company actively expands hazardous waste resource utilization channels to promote
comprehensive utilization of hazardous waste. In 2025 the landfill rate of hazardous waste significantly decreased to 1.46%
from 4.06% in 2024. Ecological and Biodiversity Conservation
In 2025
The Company strictly complies with relevant laws and regulations such as the Wildlife Conservation Law of the People's Republic
of China and the Regulations of the People's Republic of China on Nature Reserves and pledges to not construct factories
1.46% 4.06% within ecological conservation redlines. Prioritizing the prevention and control of soil contamination the Company rigorously the landfill rate of hazardous waste significantly decreased to from in 2024 implements the Law of the People's Republic of China on Prevention and Control of Soil Contamination and relevant policy
requirements and systematically screens and manages environmental risks related to soil. It conducts regular inspections in
and specialized assessments of its key areas (such as chemical storage zones production facility areas wastewater treatment
facilities and temporary storage sites for solid waste) to comprehensively identify potential pollution sources and points with
leakage risks.Indicator 2025 2024 Unit
The Company actively organizes diverse activities and campaigns on environmental protection including World Earth Day
Amount of general solid waste 242164.38 229292.18 Ton World Environment Day National Low Carbon Day and Energy Conservation Promotion Week. Shangyu Base collaborated
with the Propaganda Department of Shangyu District Party Committee to host the Shangyu District "Two Mountains" Theory
Total amount of hazardous waste 115852.13 109122.16 Ton Promotion Semifinals and Shangyu NHU "Youth Culture Micro-Lecture" where 10 young presenters shared firsthand experiences
of implementing the concept that "lucid waters and lush mountains are invaluable assets" transforming green principles from
Landfill rate of hazardous waste 1.46 4.06 % abstract notions into tangible practices. This event not only demonstrated the Company's commitment to green development
but also established a "Two Mountains" theory exchange platform for the youth in the district.Hazardous waste generation intensity 0.099 0.103 Ton/Ton of production
Note: Starting from 2025 the reporting scope for product output has been adjusted to exclude intermediate products with data
for 2024 restated accordingly.Impact Risk and Opportunity Management
The Company has the Management Measures for Identification and Assessment of Environmental Factors in place and identifies
environmental factors once a year. Besides specialized identification is promptly performed in response to environmental
regulation updates and production process modifications ensuring the list of environmental factors identified aligns with
production and operation realities of the Company and external environmental requirements. Following identification various
environmental factors undergo assessment by classification to identify key control targets. This provides a basis for subsequent
clean production environmental risk prevention and opportunity exploration. The Company also ensures compliant release of all
categories of pollutants.In 2025 the Company continued to advance clean production with subsidiaries implementing a total of 80 clean production
projects of which 67 were successfully completed with significant results. To achieve resource efficiency and pollution reduction
goals the Company prioritized key technological breakthroughs in areas such as residue recovery solid waste characterization
analysis and comprehensive utilization systematically enhancing waste resource utilization levels. Through optimizing
production processes strengthening process control and implementing green technology upgrades the Company cumulatively
reduced hazardous waste generation by 4425 tons saved steam consumption by 53000 tons and cut wastewater discharge
by 43000 tons throughout the year achieving synergistic improvements in economic and environmental benefits.
29 302025 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT About this Report Message from the Chairman About NHU ESG Strategy and Governance Green Development for Responsible Commitment: Integrity and Compliance: a Low-Carbon Future Co-Creating a Better Life Fortifying Governance Foundations Appendixes
Resource Utilization and Circular Economy Indicators and Targets
Indicator 2025 2024 Unit
Management of Water Resources
Water Recycling Utilization Rate 96.54 96.30 %
Governance
In compliance with laws and regulations such as the Water Law of the People's Republic of China and the Environmental Energy Utilization
Protection Law of the People's Republic of China NHU attaches great importance to water resource management and
incorporates the sustainable utilization of water resources as a key component of the Company's strategic development. In Governance
terms of governance structure NHU has established an ESG Management Committee as the highest decision-making body for
the Company's water resource management to be responsible for water resource management strategies and performance.Against the backdrop of the new development stage NHU embraces the core vision of "energy efficiency improvement and
digital empowerment". It has built a modern energy management system that is safe reliable economically efficient and green
Strategy low-carbon with a sustained focus on raising energy efficiency and driving the green and low-carbon transformation.The Company has formulated water management regulations covering the entire chain of water intake usage and discharge. Energy Management System
It conducts water balance calculations to comprehensively identify key water-consuming processes and potential water-saving The Company has established and effectively operated an energy management system to ensure the systematic deployment
opportunities and determine key control units. On this basis the Company continuously promotes the optimization of production and implementation of energy conservation and carbon reduction targets and measures.processes and water-saving technology upgrades such as adopting high-efficiency cooling systems to reduce water demand at
the source. Meanwhile the Company vigorously advances the construction of reclaimed water reuse systems where production
wastewater undergoes advanced treatment and is reused for non-potable purposes such as cooling and cleaning thereby Governance structure and responsibilities
improving the rate of water reuse. The Company advances institutionalization digitalization and technological innovation in a
coordinated manner to reduce water consumption per unit of output value and enhance water resource utilization efficiency as The Company's President serves as the primary responsible person for energy management providing
part of its efforts to support the green low-carbon transformation and sustainable development of the Company. overall leadership; the Vice President in charge of operations overseas and coordinates energy management;
and the Production and Operation Department of the Headquarters as the competent body executes the
Impact Risk and Opportunity Management Company's energy development plans and decisions. Authorities and responsibilities are clearly defined at all levels to facilitate collaborative advancement.Subsidiaries set annual water-saving targets based on their production realities and establish quantitative indicators such as
water recycling rates. They regularly monitor target progress through monthly and quarterly tracking mechanisms and adjust Management responsibilities of the Headquarters
management strategies promptly to ensure quantifiable and assessable water-saving outcomes.The Headquarters coordinates the Company's energy strategy formulates management policies and
standards sets energy conservation and low-carbon targets and assessment frameworks organizes
technical exchanges and benchmarking and supervises guides and assesses production bases. In 2025 the
Cascaded Reuse of Condensate Contributes to Water Conservation Cost Reduction Headquarters organized and implemented 38 major energy-saving measures saving energy of 23000 tons
and Efficiency Enhancement of standard coal and reducing carbon emissions by 63000 tons for the year; it also promoted continuous
system improvement through annual reviews and compiled the Technological Pathways for and Typical Cases
To address high tap water consumption and low condensate utilization in workshops the Company implemented on Energy Conservation and Carbon Reduction to disseminate internal best practices.an MVR technology upgrade for cascaded reuse of condensate. This project allows the reuse of system-generated
condensate at various process points replacing partial water intake points. The project saves approximately 20 tons of
freshwater daily significantly reducing water procurement and wastewater treatment costs. Responsibilities of business divisions and production bases
Each business unit is responsible for the whole-process control of energy consumption optimization of energy
Shangyu NHU Bio-Chem Co. Ltd. was recognized as a Water-Saving Benchmark Enterprise in Zhejiang Province while Zhejiang use structure and efficiency enhancement in accordance with the Company's policies. Specific measures in
NHU Pharmaceutical Co. Ltd. and Zhejiang NHU Special Materials Co. Ltd. were designated as Water-Saving Enterprises in 2025 included the following: Shangyu Base upgraded transformers and motors reducing carbon emissions by
Zhejiang Province. 520 tons for the year; and Xinchang Base upgraded equipment energy efficiency reducing carbon emissions
by 150 tons for the year.NHU prioritizes aligning with international sustainability standards. In 2025 the Company successfully completed the CDP
Water Security Questionnaire and received a B rating in the CDP Water Security category fully demonstrating its outstanding The Company has established systematic management documents including the Energy Management Manual the Energy
performance and industry leadership in water resource management. Performance Management Measures and the Energy Review Management Measures defining responsibilities at all levels and
setting targets and performance assessment indicators; it has also established an audit mechanism. Meanwhile the Company
regularly conducts training on energy conservation education and technology to enhance employees' energy-saving awareness
and skills aiming to foster an energy conservation culture of "all-staff participation and whole-process control".
31 322025 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT About this Report Message from the Chairman About NHU ESG Strategy and Governance Green Development for Responsible Commitment: Integrity and Compliance: a Low-Carbon Future Co-Creating a Better Life Fortifying Governance Foundations Appendixes
Strategy
The Company has formulated an efficient clean and low-carbon energy utilization strategy oriented towards sustainable Full-process Revamping for Enhanced Resource Recycling
development. By regularly conducting energy audits it comprehensively identifies energy consumption weaknesses and
conservation potential to systematically optimize energy efficiency in production and operation processes. As part of its efforts The original distillation system in VE production line of Shandong NHU Industrial Park faced issues including redundant
to increase the proportion of renewable energy it advances photovoltaic deployment and green electricity procurement. It column configuration low thermal energy utilization efficiency and ineffective recovery of low-grade waste heat.strengthens waste heat recovery and digital energy management to reduce energy consumption and carbon emissions per Centered on "resource recycling" the project underwent full-process revamping through systematic approaches such
unit of output value. It also incorporates energy performance into risk management and executive assessments to ensure the as distillation column integration for optimization low-grade heat recovery and cascaded utilization of energy. After
implementation of strategies for a win-win scenario for both environmental benefits and corporate resilience. put into operation the system achieves steam savings of 10800 tons annually equivalent to approximately 1020 tons
of standard coal reducing CO2 emissions by about 3800 tons per year.Energy Conservation Consumption Reduction and Efficiency Improvement
Leveraging energy digital transformation the Company comprehensively advances the construction of a smart energy
management platform to allow real-time energy consumption monitoring data analysis and optimized scheduling thereby
enhancing the intelligence and refinement of management. By improving the energy consumption indicator control system for Refrigeration System Optimization for Energy Conservation and Carbon Reduction
production processes it implements precise management at critical nodes.Our energy conservation management focuses on four aspects: Shandong NHU Amino Acids Co. Ltd. continuously identifies efficiency bottlenecks. In 2025 it strengthened the energy
efficiency weaknesses of refrigeration units by adding air coolers to improve cooling efficiency. This measure is expected
Strengthening source design to save approximately 6.8 million kWh of electricity annually and reduce carbon emissions by about 3800 tons.We incorporate lifecycle energy conservation concepts in the planning and design of new projects and emphasizes
synergistic optimization of process equipment and system energy efficiency driving the transition from "end-of-pipe
treatment" to "source control" in energy management.Process Optimization for Enhanced Energy Efficiency
Building a robust supply system Responding to national green development and "Dual Carbon" goals Heilongjiang Base conducted detailed research on
steam usage processes in backend workshops and operational conditions of post-extraction equipment and optimized
We optimize the energy structure and expand supply channels and forms to enhance energy security and risk resilience. the outlet steam pressure of thermoelectric turbines to enhance overall power generation efficiency while improving
system safety and reliability. This measure increased the power generation capacity of turbines by approximately 780
kW saving over 840 tons of standard coal and reducing carbon emissions by about 2100 tons annually.Building a cost control system across the value chain
We implement fine management across the energy chain of "procurement-conversion-transportation-utilization-recovery"
to establish a comprehensive energy cost control system. Clean and Renewable Energy Utilization
The Company actively increases the proportion of clean energy to reduce reliance on traditional fossil fuels. In 2025 72.07
million kWh of clean electricity (including green certificates) was comprehensively utilized.Practicing green and low-carbon initiatives
We systematically advance projects such as distributed photovoltaic systems waste heat and pressure recovery and
smart energy platforms and actively explore transformation pathways that combine management innovation with Green power generation
technological upgrades.The Company continued to expand photovoltaic deployment with cumulative installed capacity of 12820 kW while
increasing the procurement of green power and green certificates reducing carbon emissions by approximately 37490
tons for the year.Systematic Integrated Optimization of Process and Equipment
Expanding Photovoltaic Deployment
To address high steam energy consumption caused by substantial solvent recovery in post-extraction processes
Heilongjiang Base implemented systematic integrated optimization of process and equipment. Through precise control
and integrated innovation the base made technical modifications to key areas including reaction temperature control Xinchang NHU Vitamins Co. Ltd. continuously utilizes new energy and expands photovoltaic deployment. In 2025 the
chromatography process crystallization conditions and vacuum pump units in the Q10 production line. This resulted in Phase II expansion project utilized vacant land and parking sheds within the industrial park reducing carbon emissions
annual steam savings of approximately 24000 tons equivalent to 2200 tons of standard coal reducing CO2 emissions of approximately 650 tons annually.by about 7000 tons per year.
33 342025 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT About this Report Message from the Chairman About NHU ESG Strategy and Governance Green Development for Responsible Commitment: Integrity and Compliance: a Low-Carbon Future Co-Creating a Better Life Fortifying Governance Foundations Appendixes
Biogas recovery and utilization Circular Economy
The Company innovatively recovered fermentation biogas from wastewater treatment stations for use in production
processes and environmentally friendly combustion replacing fossil fuels. In 2025 12.64 million standard cubic meters of Upholding the concept of green operations NHU deeply implements the development model of circular economy committed to
biogas was utilized reducing carbon emissions by 20201 tons for the year. efficient resource utilization and recycling. It promotes the transition from a linear model to a closed-loop model of "Resource—
Product—Recycled Resource" facilitating high-quality industry development and harmonious coexistence with the ecological
environment.In the future the Company will continue to increase investment and deployment in the clean energy sector persistently elevate
the proportion of renewable energy and steadfastly advance towards green and low-carbon development.Raw Material Recycling
Impact Risk and Opportunity Management
Dedicated to reducing resource consumption at the source the Company actively adopts renewable biomass-based raw
materials to replace traditional fossil-based raw materials. We have set a target to procure 200 tons of renewable raw materials
The Company has established a systematic impact risk and opportunity management mechanism focusing on key areas annually leading the green transformation of the supply chain. In the field of bio-fermentation we use sustainable corn as
of energy utilization. On one hand it identifies high energy-consuming processes through real-time monitoring and energy the primary raw material to make target products through advanced microbial fermentation technology facilitating the green
efficiency benchmarking and implements equipment upgrades process optimization and lean management to drive energy transition of raw material pathways.conservation consumption reduction and efficiency improvement; on the other hand it actively evaluates opportunities
arising from policies the market and technology trends accelerating the deployment of rooftop photovoltaics green electricity
procurement and direct renewable energy supply to steadily increase the proportion of clean energy. Green procurement and source control
We establish a scientific procurement management system and collaborate with suppliers to promote green
Indicators and Targets procurement. By implementing on-demand requisition and professional requisition mechanisms we strictly
control the category quality and quantity of raw and auxiliary materials at the source effectively avoiding over-
procurement and resource waste.Indicator 2025 2024 Unit
1 Process optimization and material circulationTotal Energy Consumption 860800 809200 Ton of standard coal
We have established and improved an internal material recycling system implementing standardized management
Direct Energy Consumption 594000 560600 Ton of standard coal and full-process tracking for reusable materials. We optimize scheduling through digital means to enhance recycling
efficiency.Indirect Energy Consumption 266800 248600 Ton of standard coal
Energy Target Process Optimization Contributes to Raw Material Conservation and Recycling
Energy Target Achievement Status of 2025 Target 2024 Through process optimization Shangyu NHU Bio-Chem Co. Ltd. increased the recovery rate of effective components in
taurine mother liquor by 1% reducing mother liquor discharge by 270 tons and recovering 500 tons of raw materials in
The energy consumption per output value of CNY 10000 will decrease by
7.53% 7.67% 2025 achieving conservation and circular utilization of raw materials.
no less than 5% compared with the previous year.
1 The standard used for calculating energy consumption is the General Principles for Calculation of the Comprehensive Energy Consumption (GB/T2589-2020).
35 362025 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT About this Report Message from the Chairman About NHU ESG Strategy and Governance Green Development for Responsible Commitment: Integrity and Compliance: a Low-Carbon Future Co-Creating a Better Life Fortifying Governance Foundations Appendixes
Packaging Material Recycling Packaging form innovation and reduction
We reduce packaging through technological transformation. For example we adopt liquid-state processes for
intermediate materials to replace traditional solid packaging with pipeline transportation and tanker trucks; we
The Company has systematically built a full-lifecycle management system for green packaging committed to packaging prioritize renewable or easily recyclable materials such as cartons iron drums and aluminum bottles to reduce
reduction circularity and material renewability. environmental footprint.Reuse and efficiency enhancement
In 2025 The Company vigorously promotes standardized recycling and reuse of packaging materials across all bases. For
among the Company's main packaging materials example Shangyu Biopharmaceutical repeatedly recycled packaging materials like VA iron cages and main-ring
packaging bags with cumulative number of reuses amounting to several thousand times; Shandong NHU Amino
Acids Co. Ltd. optimized paper bag design and stacking processes reducing packaging layers and eliminating the
6972 17935 usage of top cardboards while ensuring quality.
tons of paper-based packaging materials tons of wood-based packaging materials
Optimized Utilization of Packaging Materials
12065 6755 In 2025 Shandong NHU Industrial Park continued to optimize packaging specifications and structures achieving 100% recycling for internally circulated palletized packaging materials. Through material improvements plastic usage in
certain product packaging decreased by 20% and paper consumption reduced by 33%. Decommissioned packaging
tons of metal-based packaging materials tons of plastic-based packaging materials were cleaned and repurposed for filling three-waste materials enabling resource cascading utilization.materials were used
Through these systematic practices NHU has not only reduced resource consumption and environmental impact from its
operations but also promoted circular economy collaboration across the industrial chain making active contributions to
sustainable production and consumption models.
37 38Responsible Commitment:
Co-Creating a Better Life
Our Actions
NHU leverages chemical innovation as its core driver to develop cutting-edge products and
solutions that propel the chemical industry. Together with all stakeholders we are committed to
contributing our expertise to enhancing people's livelihoods fostering economic development
and advancing social progress—ultimately building a better future for humanity.Our Performance
● Annual customer satisfaction index: ● Total employee training hours:
94.08 points 517978
● Investment in rural revitalization and public welfare and charity:
CNY 5.53 million
SDGs2025 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT About this Report Message from the Chairman About NHU ESG Strategy and Governance Green Development for Responsible Commitment: Integrity and Compliance: a Low-Carbon Future Co-Creating a Better Life Fortifying Governance Foundations Appendixes
Rural Revitalization and Social Welfare Innovation-Driven Development
Guided by the enterprise purpose of "Creating Wealth Elevating Employees and Benefiting Society" NHU actively responds
to national strategies for rural revitalization and common prosperity participates in the Belt and Road Initiative projects Following the development principles of "Integration Serialization and Synergy" NHU leverages its core "Chemical+" and "Bio+"
and fulfills corporate social responsibility through tertiary distribution while pursuing high-quality development. In 2025 the technology platforms to conduct precision and forward-looking R&D aligned with market demands.Company invested CNY 5.53 million in rural revitalization and public welfare and charity with products exported to over 100
countries and regions globally covering Southeast Asia South Asia the Middle East Africa and other areas along the Belt and
Road. During business expansion we actively integrated into local communities promoted economic cooperation and livelihood
improvements created long-term social value and demonstrated corporate responsibility. R&D and Innovation
Rural Revitalization Governance
In alignment with national common prosperity initiative NHU proactively implements the "tertiary distribution" mechanism
through strategic philanthropic investments. These include supporting Nanmulin County in Tibet funding the Qixing Subdistrict We have established a comprehensive R&D and innovation management framework formulating regulations such as the R&D
Common Prosperity Partnership in Xinchang County establishing the Community Charity Endowment Fund and contributing Program Management Regulations and the R&D Program Incentive Management Regulations. The Company has built a three-
to Weifang Basic Livelihood Security Service Center thereby driving local economic development and improving public welfare. tier R&D system covering "Scientific Exploration – Technology Development – Application Transformation" with the Headquarters
In 2025 approximately CNY 600000 was invested in rural revitalization efforts. These initiatives not only created employment Research Institute at its core and business divisions providing support forming an integrated internal-external R&D network.opportunities and income sources for local residents while improving living conditions for disadvantaged groups but also
fostered regional exchanges and cooperation contributing to the building of a harmonious society.Strategy
Public Welfare
We are committed to building a complete industrial chain from bulk raw materials to fine chemical products. Through serialized
Guided by its "Harmony" and "Balance" principles NHU continues to advance initiatives in education livelihood and community extension and synergistic integration we continuously enrich our product portfolio providing customers with cost-effective
development to build a harmonious and sustainable society. comprehensive solutions for mutual growth.To support systematic innovation the Company actively expands global collaborations. We have established a Forward-Looking
Education Empowerment Technology Research Center with Zhejiang University set up joint laboratories with institutions like Anhui Innovation Technology
Co. Ltd. and deployed overseas research institutes in Japan and Singapore creating an open innovation ecosystem with
● The Company maintains scholarship programs at Zhejiang University Beijing University of Chemical Technology and international vision.Tianjin University rewarding over 400 chemical engineering students over the past decade to cultivate future industry
talent. Through the "New Light Education Assistance" project NHU donated CNY 3.2 million to enhance educational
facilities at primary and secondary schools in Weifang Binhai District supporting underprivileged teachers and students
while inspiring youth to contribute to national strategic fields. Overseas subsidiaries focus on youth development by Guided by the strategy of "Accelerating Technology Application Deepening Technical Expertise and
partnering with local foundations and child aid organizations to support sports clubs kindergartens and universities Broadening Technological Scope" the Company systematically constructs a professional technology
promoting educational equity and talent cultivation. matrix through enhanced internal collaboration and deepened external partnerships. Concurrently we
advance the development of unit technology resource libraries standardizing key unit technologies
through modular integration and knowledge-based management. This effectively promotes rapid reuse
Poverty Alleviation of technical experience and capability diffusion achieving significant progress in both generic and specialized technology platforms as well as overall technical capacity enhancement. Breakthroughs in
hydrogenation and oxidation technologies accelerate the industrialization of related products. Systematic
● This year 16 individuals from impoverished families received assistance to improve living conditions affected by illness. Technology
Platform research in synthetic biology facilitates rapid iteration of fermentation strains fundamentally enhancing
Construction the technical competitiveness of our fermentation segment. The systematization of pharmaceutical
Volunteer Services compliance helps ensure product quality and market competitiveness while meeting international
standards.● NHU has established three professional volunteer teams and five volunteer associations creating a service network
characterized by "corporate coordination employee participation and community benefit". In 2025 volunteers
contributed over 500 person-times with cumulative service hours exceeding 800 covering diverse activities including
street cleaning appliance repairs free haircuts science popularization elderly care home support and school assistance
injecting warmth into social harmony.This year the Company vigorously promoted digital transformation in R&D completing Phase 1
deployment and launch of the Electronic Lab Notebook (ELN) and Laboratory Information Management
Blood Donation System (LIMS). The systems enable structured data entry and full-process traceability of experiments
facilitate knowledge accumulation and sharing and improve laboratory resource allocation and
● For over two decades NHU has organized regular blood donation drives establishing an periodic large-scale and Digital standardization of testing procedures. Through digitalization and paperless operations the Company
sustainable donation mechanism. In 2025 the Company organized three voluntary blood donation events contributing a Transformation has enhanced R&D efficiency while further advancing its green and low-carbon operational philosophy.total of 31200 milliliters throughout the year. Over the past three years cumulative donations reached 142000 milliliters. in R&D
41 422025 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT About this Report Message from the Chairman About NHU ESG Strategy and Governance Green Development for Responsible Commitment: Integrity and Compliance: a Low-Carbon Future Co-Creating a Better Life Fortifying Governance Foundations Appendixes
Risk Management
NHU prioritizes talent cultivation as the core pillar of its innovation-driven R&D system treating
"human capital" as its primary resource. By implementing efficient talent development mechanisms it
accelerates professional growth and injects sustainable momentum into the Company. NHU focuses on In 2025 the Company enhanced its R&D project management system by establishing a comprehensive evaluation mechanism
building a robust R&D talent structure systematically developing three core teams: technology leaders covering technology maturity process integrity safety quality intellectual property and organizational effectiveness. This
high-potential young professionals and skilled R&D practitioners. This approach drives integrated talent facilitated over 60 new products advancing to subsequent R&D stages. We rigorously implemented tiered laboratory safety
acquisition deployment and development. For technology leaders the Company employs precision management and embedded Process Hazard Analysis (PHA) throughout the R&D lifecycle covering 14 ongoing projects.recruitment aligned with strategic needs through channels like talent referrals while providing open Simultaneously we strengthened the confidentiality management system through clarified classification standards and multi-
platforms and resource support. For young professionals it implements a dual-mentorship system and dimensional controls covering personnel equipment materials methods and environment to fortify information security.industrial practice rotations offering dual career paths in both technical and managerial tracks. For
R&D Team skilled practitioners it deepens university-industry collaboration and enhances hands-on training with
Building skills competitions. Concurrently the Company establishes fault-tolerant mechanisms and diversified Indicators and Targets
incentives including project awards and equity incentives. It overcomes geographical constraints through
talent apartments and competitive remuneration fostering mutual growth between talent and the
enterprise. As of December 2025 the Company maintained a In 2025
high-caliber structured R&D team of 2841 members
accounting for 24.69% of total employees. Master's
degree holders constituted 33.65% and PhD holders 3.03%
Dur ing the report ing per iod the Company held of the R&D team.certifications including: 9 National High-Tech Enterprises
1 National Key "Little Giant" Enterprise 2 National "Little For over two decades NHU has deepened expertise in the Company maintained a high- accounting for
Giant" Enterprises 2 National Manufacturing Single fine chemicals building innovation chains optimizing caliber structured R&D team of
Champion Products and 3 Provincial Manufacturing industr ial chains and elevating value chains. I t 24.69%
Single Champion Products. It ranked first in China's TOP dedicates substantial annual resources to cutting-edge 2841 members
100 Fine Chemical Companies and featured in China's Top technology exploration and product development with of total employees
50 Multinational Corporations TOP 100 Internationalized R&D expenditure reaching CNY 4.665 billion over the
Private Enterprises TOP 10 Companies in the Flavor past five years averaging over 5.19% of annual sales
Sector in China's Light Industry and TOP 500 Petroleum revenue. In 2025 NHU invested CNY 1.099 billion in R&D Master's degree holders constituted PhD holders
and Chemical Enterprises. representing 4.94% of core business revenue. It ranked
149th in the "TOP 500 R&D Investment" and 96th in the 33.65% 3.03%
"TOP 500 Invention Patents" lists released by the All-
China Federation of Industry and Commerce. of the R&D team of the R&D team
Our sustained innovation vitality and stable output in product R&D earned authoritative recognition: topping China's TOP 10
Innovative Fine Chemical Companies ranking in the TOP 500 Private Enterprises for R&D Investment and Invention Patents. The
patents A Method for Selective Hydrogenation of Propargyl Alcohol to Allyl Alcohol A Recombinant Microorganism Preparation
Method Thereof and Application in Coenzyme Q10 Production and A Method for Preparing Polyphenylene Sulfide Resin and Over the past five years In 2025
Polyphenylene Sulfide Resin Prepared Thereby won the 25th China Excellent Patent Award. In addition the project Development
and Industrialization of High-Quality Solid Methionine Manufacturing Technology received the First Prize for Scientific and
Technological Progress from the China Petroleum and Chemical Industry Federation (CPCIF).R&D expenditure reaching NHU invested
During the reporting period
CNY 4.665 billion CNY 1.099 billion in R&D
9 1 2 averaging over
representing
National High-Tech Enterprises National Key "Little Giant" National "Little Giant"
Enterprise Enterprises 5.19% of annual 4.94% of core business
sales revenue
2 3 revenue
National Manufacturing Provincial Manufacturing
Single Champion Products Single Champion Products
43 442025 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT About this Report Message from the Chairman About NHU ESG Strategy and Governance Green Development for Responsible Commitment: Integrity and Compliance: a Low-Carbon Future Co-Creating a Better Life Fortifying Governance Foundations Appendixes
"IUPAC-Zhejiang NHU International Green Chemistry Award" Unites Global Expertise
From July 12-19 the 53rd IUPAC General Assembly and 50th World Chemistry Congress convened in Kuala Lumpur
Malaysia themed "Chemistry for Sustainable Future". NHU joined over 3000 chemists worldwide to explore chemistry's
pivotal role in addressing sustainability challenges. As founder of the "IUPAC-Zhejiang NHU International Green
Chemistry Award" NHU presented honors to distinguished laureates.Prof. Javier Pérez-Ramírez (ETH Zurich) received the "Outstanding Green Chemist" award while Dr. Jianbin Li (Chinese
Empowering Industrial Development University of Hong Kong) Dr. Philip Stanley (Technical University of Munich) and Dr. Sahel Fajal (Indian Institute of
Science Education and Research) were honored as "Emerging Green Chemists".Leveraging its role as an innovation driver NHU focuses on addressing critical technological challenges in nutrition & health Committed to a green low-carbon and sustainable development path NHU partnered with the International Union
green transportation semiconductors and environmental protection industries. Guided by high-tech and low-emission principles of Pure and Applied Chemistry (IUPAC) – the world's largest chemical organization – to establish this award in 2019. It
the Company systematically develops new processes and products embedding green low-carbon and circular economy recognizes global achievements in green chemistry research and dissemination with 16 eminent chemists honored to
concepts throughout the R&D-to-industrialization chain to propel industrial transformation toward high-end intelligent and date.sustainable development. At the congress forum Prof. Li Haoran Honorary Dean of NHU Research Institute delivered a keynote titled "Green
Oxygenation Mediated by Geminal-Diol Type Species" highlighting clean production strategies for vitamins E/K3 and
innovative pathways for efficient green synthesis.Industry Empowerment and Ecological Co-construction
Through technology transfer and joint R&D initiatives NHU actively engages in value co-creation across the industrial 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 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.Integrated Rumen-Protected Methionine Solution
Addressing dairy farms' differentiated needs for rumen protection rate intestinal release efficiency and palatability
of rumen-protected methionine NHU's application service team transformed customer pain points into R&D priorities.Through joint feeding trials and productivity validation with key customers we established correlation models between
methionine specifications and milk yield milk protein content and feed conversion efficiency. This evolved our offering
from standalone products to a holistic "Product + Technology + Data" solution continuously elevating our professional
service capabilities and customer value creation.Embracing open collaboration NHU deepens diversified innovation mechanisms to integrate global resources share
development opportunities and co-create the future. We have conducted technical exchanges with over 40 renowned
institutions including National University of Singapore University of Tokyo Chinese Academy of Sciences and Chinese Academy
of Agricultural Sciences resulting in 21 substantive collaborations. The Company hosted 13 expert lectures participated in 64
industry conferences and exhibitions completed 24 technology/equipment integration projects and conducted field visits to
multiple countries across Asia Europe and America. These initiatives enhance our insights into global technological frontiers
expand international cooperation channels and strengthen innovation capabilities.
45 462025 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT About this Report Message from the Chairman About NHU ESG Strategy and Governance Green Development for Responsible Commitment: Integrity and Compliance: a Low-Carbon Future Co-Creating a Better Life Fortifying Governance Foundations Appendixes
Advancing Green Industrial Development
In response to global resource and climate challenges we remain committed to green and low-carbon innovation. In 2025 Sustainable Production of Algal DHA Oil
we achieved key technological breakthroughs across several new products in various business segments laying a solid
technological foundation for the sustainable development of related industries.Through heterotrophic fermentation technology algal DHA oil is produced using sustainably sourced glucose via
engineered algal strain selection and precision fermentation control. The fully enclosed process demonstrates high
● The deep integration of "biotechnology + green chemistry" has enabled the implementation of fully resource utilization efficiency substantially reducing water consumption and waste discharge while decreasing reliance
Nutraceuticals
Segment circular green synthesis technology for methionine reducing waste emissions by over 30% for certain
on marine ecosystems. The product features high purity and excellent stability earning recognition from domestic and
fermentation products. international customers as a sustainable plant-based Omega-3 solution for the nutrition and health industry.Aroma ● Upgraded green processes earned EcoVadis Silver Medal in sustainability; Green citral production
Chemicals resolved environmental challenges while expanding new downstream applications for natural eco-
Segment friendly fragrances. PPS Materials Contributing to Global Carbon Reduction
New ● Major breakthroughs in bio-based materials include the debut of bio-based PPS and the entry of green
Materials The Company's new materials division delivers comfortable eco-friendly and healthier material products through
Segment closed-loop IPDI product series into high-end markets. efficient stable energy-saving and environmentally specialized production. By 2025 PPS material solutions for thermal
management and electric systems in new energy vehicles (NEVs) will reduce carbon emissions by 4 tons per vehicle
annually contributing to an estimated 20 million ton reduction in NEV carbon emissions. Applications of PPS fibers in
Active Significant optimization of green synthesis processes enabled in-house production of moxifloxacin side eco-friendly filtration materials reduced global particulate emissions by approximately 40 million tons by 2025.●
Pharmaceutical
Ingredients (API) chains. The green ibuprofen production line has completed validation and will commence construction
Segment shortly.Comprehensive Advancement in Green Raw Material Substitution to Build Compliant
and Diversified Product Systems
Green Synthesis and Lean Manufacturing of Pharmaceutical-grade Vitamin B6
We are committed to promoting the systematic replacement of traditional animal-derived components with plant-
based raw materials. For instance natural wood salt gum arabic and other plant-based materials are progressively
replacing animal-derived ingredients like gelatin across multiple product lines. This transition not only significantly
NHU is dedicated to embedding "Green Chemistry" principles throughout the product lifecycle from R&D to production. reduces reliance on animal farming supply chains and associated environmental risks but also actively addresses
The Company's proprietary pharmaceutical-grade Vitamin B6 process anchored in "clean production technology" and diverse cultural and religious consumption needs such as Halal and Kosher. Through rigorous benchmarking against
"safety-first" principles achieved milestone objectives through innovative reagents and reaction redesign: simplified domestic and international regulations and comprehensive functional validation of raw materials we have established
flows high space-time yield continuous hazardous steps and drastic waste reduction. Environmentally unfriendly a plant-based ingredient system aligned with global compliance trends that balances functionality and sustainability
solvents were entirely replaced by biodegradable alternatives or solvent-free systems. Additionally the production line laying a solid foundation for expanding our green product portfolio.features fully enclosed solid handling systems and advanced crystallization drying and sieving controls. Integrated
separation technologies significantly reduce saline wastewater generation while minimizing electricity and steam
consumption ensuring safe green and energy-efficient operations.Low-Carbon Amino Acid Manufacturing Driven by Synthetic Biology
Leveraging its synthetic biology platform the Company has developed green fermentation processes using renewable
starch as feedstock to produce various amino acids and vitamins. This approach replaces traditional high-energy-
consumption chemical synthesis routes and eliminates the use of hazardous chemicals. The relevant products have
passed regulatory reviews by the Ministry of Agriculture and Rural Affairs (MARA) and the National Health Commission
(NHC) achieving industrial-scale application. This has significantly reduced energy consumption and carbon emissions
per unit of product supporting the green transformation of the feed industry.
47 482025 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT About this Report Message from the Chairman About NHU ESG Strategy and Governance Green Development for Responsible Commitment: Integrity and Compliance: a Low-Carbon Future Co-Creating a Better Life Fortifying Governance Foundations Appendixes
Standard Development Suppliers and Customers
As a technological pioneer driving industry advancement NHU has consistently transformed its technical expertise and practical
insights into standardized specifications to foster healthy industry development. During the reporting period the Company led
the formulation of two national standards: Food Additive Hydroxycitronellal and Feed Additives – Part 1: Amino Acids Their Salts NHU consistently develops a high-standard rigorous and sustainable supply chain management system and quality
and Analogues – Taurine. It participated in developing 20 national standards including Plastics – Determination of Temperature of management system. Through full lifecycle compliance control end-to-end quality management and customized innovation we
Deflection Under Load – Part 1: General Test Method. Additionally NHU led or participated in formulating two industry standards provide customers with premium safe and reliable products and services that meet their needs and expectations.for Feed Additive Calcium D-Pantothenate and four group standards including Food Additive Raspberry Ketone steering
industrial upgrading and supporting standardized high-quality sector development. During the reporting period 28 such items
were released. Responsible Supply Chain
During the reporting period NHU is committed to establishing a responsible and sustainable supply chain system. Through stringent supplier qualification
auditing and risk management mechanisms we ensure compliance with quality environmental and social responsibility
requirements while enhancing supply chain sustainability.the Company led the formulation of participated in developing
2 Supplier Management Mechanism national standards 20 national standards
NHU has established a scientific and rigorous full lifecycle management system covering supplier onboarding operational
assessment and dynamic exit. Strictly adhering to the Supplier Management Regulations and related procedures we conduct
comprehensive reviews of suppliers' operational status certifications and quality environmental and safety management
systems. Regardless of supplier size all evaluations follow uniform standards to ensure fairness and transparency in supplier
NHU led or participated in formulating 4 28 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 audits. This ensures both material quality and suppliers' production & quality control
2 industry standards capabilities align with the Company's internal control standards.
group standards such items were released
NHU is systematically integrating and deepening ESG requirements across the supply chain. Suppliers admitted into the qualified
vendor system are required to execute binding agreements including the Environmental and Occupational Health & Safety
Commitment Code of Ethical Business Conduct Integrity and Fair Competition Agreement and Quotation Commitment Letter
thereby reinforcing their social responsibility obligations. Strategic suppliers undergo regular ESG performance evaluations using
a combined approach of the "Supplier ESG Questionnaire" and "ESG Scorecard" covering environmental management labor
practices business ethics etc. Evaluation outcomes inform both risk identification and procurement decisions: Suppliers with
outstanding ESG performance receive pricing incentives while those failing standards or inadequate rectification face measures
such as order reductions or suspended cooperation establishing effective incentives. NHU requires suppliers to strictly adhere to
environmental regulations safeguard employees' occupational health and safety (OHS) and uphold ethical business practices.This collaborative approach fosters a fair transparent and sustainable supply chain ecosystem. As of the reporting period end
no overdue payments to SMEs occurred.NHU promotes a secure and competitive supply chain ecosystem. Regular integrity training for procurement staff-featuring case
studies and policy reviews-strengthens compliance awareness. Integrity requirements are embedded in supplier collaboration
guidelines supported by strict implementation of the Integrity Management Measures and multi-channel whistleblowing
mechanisms. This creates a closed-loop integrity management system of "training guidance policy constraints and oversight
safeguards" to ensure full-process transparency. Additionally we collaborate with suppliers to sign Integrity Partnership
Agreements advocating ethical operations and fair competition while prohibiting commercial bribery and unfair practices. This
fosters a supply chain ecosystem grounded in "mutual trust shared responsibility and clean collaboration".In process management we implement a strict "Yellow Card" suspension and "Black Card" delisting mechanism. Suppliers
exhibiting quality instability severe delivery delays environmental penalties or business ethics violations face temporary
transaction suspension (3 months or 1 year) based on severity. Suppliers causing significant losses violating core business
ethics or failing consecutive evaluations are permanently disqualified and blacklisted.In 2025 the Company terminated partnerships with 96 suppliers due to expired qualifications integrity issues and the
discontinuation of certain materials as part of its product upgrading initiatives.
49 502025 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT About this Report Message from the Chairman About NHU ESG Strategy and Governance Green Development for Responsible Commitment: Integrity and Compliance: a Low-Carbon Future Co-Creating a Better Life Fortifying Governance Foundations Appendixes
Green Supply Chain
Indicator 2025 Unit
Suppliers 4581 Companies We are actively exploring pathways to green transformation in logistics
and transportation striving to build a low-carbon efficient and sustainable
Suppliers' signing rate of integrity agreements 100 % modern supply chain system. In response to the national "dual carbon"
strategic goals and ecological and environmental protection requirements
the Company continues to advance the development of a green logistics
system. Systematic improvements have been implemented in areas
such as transportation modes fleet management route planning and
Supplier Performance Evaluation loading efficiency significantly reducing energy consumption and carbon
emissions in logistics operations. Regarding transportation equipment
Every December NHU conducts comprehensive performance evaluations for all suppliers. Evaluations for raw materials the Company has fully phased out all outdated vehicles that fail to meet
and auxiliaries suppliers are jointly performed by production workshops quality assurance departments across production environmental standards. Vehicles with emission levels below China
bases warehouse operations teams and the purchasing department. Equipment suppliers are assessed by the equipment National V Standard are completely prohibited from participating in the
management division in collaboration with the purchasing department. The rating system categorizes suppliers into four tiers: Company's logistics operations ensuring that all carrier vehicles comply
Excellent Good General and Unsatisfactory. Subsequent risk assessments and procurement decisions are formulated based on with China National V Standard or above. Concurrently the Company
these evaluation outcomes. is actively promoting the adoption of new energy vehicles. In terms of
transportation organization methods such as bulk cargo consolidation
and shared container shipping are used to reduce shipping frequency and
Daily Audit of Suppliers optimize logistics efficiency. The Company implements full-coverage ESG
management for its strategic suppliers requiring them to provide product
life-cycle carbon footprint data. This drives the development of a low-
All production bases and business divisions implement batch-by-batch incoming inspection for raw materials and auxiliaries carbon transparent and sustainable supply chain.with strict quality compliance verification prior to warehouse acceptance and production usage. Each base's Quality Assurance
Department establishes annual supplier audit plans aligned with operational requirements. Primary raw material suppliers
undergo on-site audits every three years while secondary suppliers complete desk audits through standardized questionnaires
every six years. Product Quality and Safety
NHU regards product quality and safety as the cornerstone of sustainable development adhering to a "customer-centric" quality
Supplier Training philosophy. We have established a comprehensive quality assurance system dedicated to providing high-quality high-safety
products.NHU prioritizes sustainable supply chain development not only enforcing stringent quality and technical standards but also
advancing collaboration in EHS and international regulatory compliance. Quality Management System
Bases and business divisions regularly organize specialized training sessions and on-site exchanges focusing on core dimensions
such as product technical requirements quality inspection standards updates to environmental regulations and work safety The Company has established and continuously improved an integrated quality management system. The Headquarters
protocols. Specifically in the specialized management of key material suppliers (e.g. packaging materials and pharmaceutical Production & Operations Department oversees quality policies and objectives while site QA departments execute standard
excipients) we systematically communicated the latest regulatory requirements such as the updated Pharmacopoeia ensuring development and product sampling. Multi-department collaboration mechanisms enhance process safety management.supply chain compliance with domestic and international regulatory dynamics. Currently NHU has systematically implemented and maintains internationally recognized certification systems including ISO
9001 ISO 14001 ISO 45001 FAMI-QS ISO 22000 BRC FSMA HALAL NSF and GMP setting stringent internal control standards
Additionally we treat every on-site quality audit and ESG assessment as a crucial opportunity for bidirectional communication for each product category.and training. During audits our professional teams conduct face-to-face technical workshops and regulatory interpretations
with suppliers addressing identified issues and best practices particularly providing targeted guidance on evolving international Through regulatory documents such as the Quality Laws and Regulations Identification Evaluation and Compliance Monitoring
client requirements and overseas market access standards. Regulations Production Process Quality Monitoring Regulations and Hazardous Materials Sales Management Regulations
quality management is embedded throughout R&D production sales and after-sales processes ensuring consistent and reliable
product quality. No major product or service quality liability incidents occurred during the reporting period.Supply Chain Risk Management
Product Design and Development
NHU conducts comprehensive risk assessments for new suppliers covering operational dimensions including production
capacity process stability geographic location transportation methods and delivery reliability. Mandatory submission of ● Emphasizing early-stage risk prevention we embed quality and safety requirements into product design through in-
compliance documents (e.g. environmental impact assessment and safety assessments) is required to review environmental depth customer needs analysis and specialized risk assessments eliminating potential hazards at the source.and safety risks. For qualified suppliers the Company utilizes the periodic Supplier Risk Assessment Form to organize cross-
departmental on-site inspections or written surveys systematically evaluating performance in quality commercial financial
environmental safety and delivery aspects. Differentiated controls are implemented based on risk levels (High/Medium/Low): Production Process Monitoring
High-risk suppliers are inspected at least semi-annually medium-risk suppliers annually and low-risk suppliers as needed.Cooperation is terminated immediately upon identification of uncontrollable risks. This mechanism combined with the "Yellow ● We continuously optimize production techniques and proactively adopt advanced quality control technologies globally
Card" (suspension) and "Black Card" (delisting) management system forms a complete risk response framework effectively to enhance efficiency while ensuring products meet customer specifications and benchmarking standards.isolating major risk sources.
51 522025 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT About this Report Message from the Chairman About NHU ESG Strategy and Governance Green Development for Responsible Commitment: Integrity and Compliance: a Low-Carbon Future Co-Creating a Better Life Fortifying Governance Foundations Appendixes
Establishing Tiered Product Priority Matrix Topic Indicator 2025 Unit
● Through quota management in production (raw/auxiliary materials packaging inventory finished goods inventory
spare parts inventory etc.) we implement tiered classification based on product line risk levels and criticality to Quality certification system coverage 100 %
mitigate supply chain risks.Product Quality and Service
Quality Risk Control
Percentage of products recalls attributable
to quality deficiencies in the total number 0 %
● We have established robust product risk control mechanisms utilizing professional quality management and risk of sold or delivered products
identification tools. Through regular specialized inspections we identify critical control points implement corresponding
measures and conduct continuous review and evaluation. Additionally through pre-/post-shift meetings Five-Type
Team initiatives and quality workshops we foster a quality culture at the grassroots level empowering frontline
staff to proactively identify risks and propose improvements—shifting quality control upstream and strengthening
organization-wide prevention capabilities.Customer Services
Product Testing and Auditing
● With in-house testing facilities and specialized teams we achieve comprehensive product testing coverage and NHU consistently upholds the marketing philosophy of "Creating Demand Serving Customers" and the quality concept of
establish preventive testing mechanisms for proactive quality risk control. Annual quality audits conducted by "Customer Centric" committed to delivering efficient professional and sustainable service experiences. Through systematized
headquarters experts across all bases supplemented by internal/external audits enable timely issue identification and customer service management structured complaint handling mechanisms customer satisfaction survey and digital
correction driving continuous quality management enhancement. transformation of sales operations the Company has achieved holistic improvements in service quality resulting in enhanced
customer satisfaction and loyalty.To reinforce company-wide quality awareness we implement annual quality control and product safety training covering quality
regulations quality system knowledge and risk management requirements for all employees. Targeted training for quality Customer Service Management
personnel and production staff—such as on-site quality management workshops during 2025 Quality Month covering defect
analysis and quality tool applications—enhances critical control point mastery and hazard identification. SOP training and
standardized skill competitions further elevate professional competencies while embedding customer-centric quality principles. To standardize full customer lifecycle management the Company has established the Customer Management Regulations
defining departmental responsibilities operational procedures and management standards to ensure accurate customer records
We advance digital-intelligence integration in quality management by linking core systems like LIMS (Laboratory Information and elevate service efficiency. To strengthen customer credit risk management the Company has concurrently formulated the
Management System) and QMS (Quality Management System) breaking data barriers across MES WMS and other platforms Customer Credit Management Measures to standardize credit assessment quota determination and dynamic management
to achieve cross-functional quality data traceability and process efficiency—establishing an end-to-end digital quality control establishing a comprehensive customer credit management system. The Company also implements the Sales Management
system. Regulations to continuously optimize sales processes and ensure efficient and standardized operations.Technologically we continuously adopt advanced inspection methods and develop AI-powered quality inspection solutions For brand management the Product Brand Management Measures has been established to unify brand image standards and
tailored for industrial scenarios using AI and big data. This elevates inspection precision while reducing manual intervention enhance market recognition and core competitiveness. Regular specialized training on brand knowledge is conducted to deepen
optimizing processes minimizing resource consumption and human error—laying a technological foundation for consistent and employees' understanding and commitment to brand values driving the implementation of brand strategies. To ensure after-
sustainable product quality. sales service quality the Delivery & Returns Management Regulations has been developed clarifying domestic/overseas logistics
procedures and return/exchange workflows to guarantee timely accurate deliveries and improve customer satisfaction.Product Recall
To address potential product safety issues the Company
has established a product recall control procedure based
on HACCP principles ISO 22000 BRCGS and other In 2025
Developing Plant-Based Functional Materials for Green Development
management system standards as well as relevant national
and industry regulations. This procedure defines the recall
process in the event of product safety hazards improving NHU maintained Addressing growing market demand for clean green-sourced products we focus on independent innovation and
emergency response efficiency and minimizing losses for industrial application of plant-based materials. A cross-functional team spanning R&D process marketing and
both customers and the Company. At the same time all 0 compliance has successfully developed a modified starch-based coating material system applied in producing core branches subsidiary and business units have developed product recalls attributable to nutrients (e.g. VA VE VD3). This initiative achieves synergistic sustainability upgrades from raw materials to end
recall procedures for their respective product categories products while delivering high-performance eco-friendly solutions that enhance customers' green competitiveness.quality deficiencies
based on the Company's documents and conducts regular
drills to ensure fast and effective crisis management.
53 542025 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT About this Report Message from the Chairman About NHU ESG Strategy and Governance Green Development for Responsible Commitment: Integrity and Compliance: a Low-Carbon Future Co-Creating a Better Life Fortifying Governance Foundations Appendixes
Customer Complaint Management Data Security and Customer Privacy Protection
The Company has established the Customer Information In 2025 Throughout its comprehensive digital transformation the Company prioritizes information security and customer privacy at
Feedback Management Regulations and related protocols to the strategic core systematically building a holistic protection framework covering "personnel processes technology and
define complaint resolution processes track effectiveness
The complaint resolution rate reached ecosystem". Through company-wide security training in-depth audits public-private partnerships and system upgrades the and verify outcomes. Quality follow-ups via onsite/online Company fortifies its digital security defenses laying a solid foundation for business excellence and customer trust.channels are conducted to identify additional needs which
are incorporated into continuous improvement plans. 100%
In 2025 the Company received a total of 12 complaints
regarding products and services with a complaint handling
rate of 100%. Continuous Management System Enhancement to Consolidate the Institutional Foundation
To refine the information security governance framework the Company has completed a comprehensive upgrade and
Customer Satisfaction Survey restructuring of its ISO/IEC 27001:2022 Information Security Management System. This upgrade involved revising 41 policy
documents achieving deep optimization from architecture to workflows and advancing systematic standardized and unified
information security management.To further enhance product and service quality the In 2025
Company has established the Customer Satisfaction
Survey Management Regulations administered by the
Marketing Management Department and implemented Customer Satisfaction Index (CSI): Deepening Public-Private Collaboration to Foster a Joint Security Ecosystem
by the Quality Assurance Departments across business
divisions branches and subsidiaries. This year the Company 94.08 The Company partners with public security authorities to establish a "Cybersecurity Co-governance Demonstration Site"
conducted comprehensive customer satisfaction surveys exploring innovative governance models featuring government-enterprise coordination and multi-stakeholder participation.encompassing product performance brand perception and This collaboration facilitates a shift from unilateral protection to open co-governance while strengthening the Company's
service delivery achieving an annual Customer Satisfaction engagement and coordination effectiveness in public security domains.Index (CSI) of 94.08. Identified improvement areas were
systematically analyzed to develop optimization plans
continuously refining the quality management system.Strengthening Group-Wide Security Coordination to Drive Unified Defense
Intelligent Sales To build an integrated group security framework NHU conducted specialized information security inspections covering its
headquarters and four major production bases. The inspections comprehensively evaluated equipment operations control
implementation and policy effectiveness driving the establishment of a group-level security mechanism featuring "unified
To build precise customer profiles and enhance service experience the Company actively advances sales intelligence policies unified strategies and unified protections" to achieve standardized cross-regional and cross-hierarchy security
transformation. In 2025 the Company fully launched sales intelligence initiatives establishing a non-smart factory production- controls.sales coordination module to achieve efficient supply-demand linkage. Concurrently ERP and CRM system deployments
have been implemented for overseas subsidiaries with successful rollouts in Germany Mexico Brazil Vietnam and Turkey
significantly improving marketing and operational management precision. Concurrently we have consolidated global customer
resources through standardized information management and service process optimization delivering more efficient support for Company-Wide Security Awareness and Skills Enhancement
overseas customers. Systematically strengthening organizational security capabilities we continuously conduct specialized training on
information security and privacy protection. Through multi-level practical courses and drills we achieve full coverage and
deep participation from management to frontline employees. This enhances the entire staff's awareness of identifying and
preventing security threats.
55 562025 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT About this Report Message from the Chairman About NHU ESG Strategy and Governance Green Development for Responsible Commitment: Integrity and Compliance: a Low-Carbon Future Co-Creating a Better Life Fortifying Governance Foundations Appendixes
Employees To establish and improve benefit-sharing mechanisms for employees and shareholders while enhancing workforce cohesion and corporate competitiveness NHU has implemented five phases of Employee Stock Ownership Plans (ESOP) since its IPO in 2004
covering approximately 2700 employees cumulatively.We continuously optimize our benefits system through employee satisfaction surveys launching personalized welfare
NHU consistently upholds sustainable development principles. We prioritize building balanced stakeholder relationships among programs covering health protection housing support and others to strengthen employees' sense of belonging and well-
people society and nature as the cornerstone of harmonious growth. Particularly we emphasize the strategic value of human being. Furthermore by revising Employee Wellness & Leave Management Measures and Retired Management Re-employment
capital in enhancing corporate core competitiveness. Through robust governance mechanisms and social value practices we Measures NHU has enhanced its holistic welfare framework to support employees throughout all career phases.foster a community of shared interests career aspirations and common destiny between employees and the enterprise.Employee Communication
Employee Recruitment and Human Rights NHU respects and values the opinions and suggestions of every employee establishing diversified and multi-tiered
communication channels and platforms. Through thorough implementation of the "Five Mandatory Visits and Five Mandatory
Conversations" mechanism we effectively monitor employees' psychological status and professional/personal needs ensuring
NHU strictly complies with the Labor Law of the People's Republic timely identification and resolution of issues. The Company maintains a dedicated General Manager's Mailbox that encourages
of China and the Labor Contract Law of the People's Republic of both named and anonymous feedback complaints and suggestions with strict confidentiality protections for whistleblowers to
China to regulate recruitment and employment management. We foster a secure and transparent communication environment. In 2025 monthly canteen satisfaction surveys were conducted
have established internal policies including the Anti-Discrimination with management methods dynamically optimized based on feedback resulting in progressively improving employee
Anti-Harassment and Anti-Abuse Regulations and the Prohibition of satisfaction.Forced Labor Regulations firmly opposing human rights violations
such as child labor forced labor and discrimination. No incidents We conduct regular employee forums and Staff and Workers' Representative Congresses to create open and inclusive dialogue
involving child labor malicious harassment discrimination or labor platforms. These platforms enable employees to share professional experiences developmental challenges and improvement
disputes occurred at NHU during the reporting year. proposals serving dual purposes of informing management decision-making and strengthening cultural alignment and
organizational commitment. In compliance with legal requirements NHU has established a Labor Dispute Mediation Committee
The Company has established the Recruitment Management comprising employee representatives administrative personnel and trade union delegates. Operating under principles of
Measures supported by detailed operating procedures SOPs and fairness and impartiality the committee ensures prompt resolution of workplace disputes at early stages thereby safeguarding
an Employee Onboarding Guide. These documents standardize procedures uphold fundamental recruitment principles and employee rights while supporting sustainable corporate development.ensure fairness impartiality and transparency – preventing external violations while eliminating internal malpractice. This year
we established key partnerships with institutions including Zhejiang University and received multiple employer accolades. NHU Employee Care
was honored as "The Most Popular Global Employer" at GUCDC 2025 and "China's Best Employer | Ningbo's Best Employer" by
Zhaopin in 2025. Our subsidiary Heilongjiang NHU Biotechnology Co. Ltd. was recognized by the Ministry of Human Resources NHU regards talent as its primary resource consistently implementing the "Teacher Culture" and "Harmony" philosophy
and Social Security as a "National Advanced Private Enterprise in Employment and Social Security". to advance a caring culture. The Company consistently prioritizes employees' physical/mental well-being and professional
development. Through regularly organized cultural and recreational activities including storytelling sessions team-building
events and recreational sports competitions we help employees alleviate work-related stress while enhancing workplace
Remuneration and Benefits satisfaction and organizational commitment thereby fostering a supportive and collaborative work environment. To
accommodate diverse employee interests NHU has established officially registered clubs for yoga football basketball
badminton tea ceremonies and other hobbies enabling staff to cultivate personal interests beyond work responsibilities and
Guided by fairness and value co-creation principles NHU has established a position-value-based remuneration system. This maintain healthy work-life integration. The Company has also developed comprehensive welfare facilities including standardized
ensures equal pay for equal work regardless of gender and provides market-competitive remuneration. We regularly benchmark basketball courts fully-equipped fitness centers and the NHU Town community complex providing employees with comfortable
remuneration levels against the market and dynamically adjust strategies to maintain industry competitiveness for core and accessible spaces for both professional and leisure activities.positions.NHU established a comprehensive employee care mechanism providing professional services such as mental and physical
We strictly implement national regulations by contributing to employees' social insurance and housing provident funds. health counseling legal assistance children's school enrollment support and medical green channels to effectively help
Remuneration levels are dynamically adjusted based on actual contributions and job performance ensuring a shared growth employees resolve work-life challenges.mechanism between employee income and corporate development. Clear provisions are established regarding employee
remuneration working hours and rest periods. We legally implement working hour systems with defined overtime limits. For
overtime required by production needs department and project managers are required to notify employees in advance with
justifications and arrangements. Overtime pay is promptly provided or compensatory time-off is arranged in accordance with
the law.For sales personnel and certain frontline staff we implement flexible working hour systems.We have developed a diversified incentive structure comprising four components: fixed income variable income allowances/
subsidies and benefits for all employees. Variable income is linked to company performance and individual contributions.Through performance evaluations and remuneration incentives we closely align employee efforts with career development
to drive workforce engagement. Guided by the "contributor-centric" philosophy NHU has established initiatives such as
Management Innovation Awards and Project Achievement Awards enabling core employees to share in corporate development
outcomes while fostering organizational vitality and innovation.
57 582025 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT About this Report Message from the Chairman About NHU ESG Strategy and Governance Green Development for Responsible Commitment: Integrity and Compliance: a Low-Carbon Future Co-Creating a Better Life Fortifying Governance Foundations Appendixes
statutory maternity leave breastfeeding breaks and Women's Day holidays distributing care packages and organizing annual
health checkups for all female employees during Women's Day. The Company consistently prioritizes female employees'
"E-Care Initiative" Launched to Enhance Employee Well-being physical and mental well-being through regular yoga sessions specialized health check-ups parent-child activities and wellness
initiatives fostering a respectful equitable and caring workplace.On March 4 2025 NHU partnered with Zhejiang Based on the Company's employer branding initiatives and business needs targeted recruitment of interns is conducted. For
Provincial Political Research Association and Zhejiang interns in functional roles the compensation package is highly competitive in the market. Interns in production roles enjoy equal
Corporate Culture Construction Association to launch pay for equal work under legally binding agreements that safeguard their working conditions safety and health rights. Regular
the "E-Care" employee support program simultaneously training and assessments ensure interns' skill development aligns with job requirements. Interns benefit from comprehensive
activating a 24/7 mental health hotline. Employees labor protection and career guidance with their responsibilities rotation plans and growth trajectories integrated into the
participated in interactive sessions including one-on- Company's talent pipeline strategy.one psychological counseling stress-relief brainwave
lamps OH Card introspection traditional Chinese
ear acupressure and traditional Chinese medicine Staff Training and Development
wellness consultations. The professional expertise
and meticulous service helped participants gain self-
awareness process emotions alleviate stress and NHU places great emphasis on employee training and development having established a comprehensive career-cycle training
recharge mentally earning positive feedback. system that provides diverse and multi-tiered learning platforms with tailored growth pathways. By refining pedagogical
instructional and curricular frameworks NHU ensures the effective implementation of its talent development system. We
cultivate five core talent categories—management professionals global talents leaders technical experts and skilled
specialists—continuously enhancing organizational competitiveness.Implementing Targeted Care to Strengthen Employee Cohesion In 2025
NHU's annual training investment totaled with cumulative training hours reaching
In 2025 NHU's Shandong base continued its "Practical Solutions for Employees" campaign addressing daily concerns
through vehicle management services meal delivery home cleaning assistance and dormitory facility upgrades. The CNY 5.12 million 517978 across the workforce
program expanded its scope to include youth social events psychological counseling legal aid hardship support and
educational/medical access facilitation to boost employee belongingness.This equates to an average of achieved
Diversity Equity and Inclusion 45.01 training hours per employee 100% training participation
rate throughout the organization
NHU is dedicated to fostering a diverse and inclusive
workplace through institutionalized mechanisms and
systematic implementation of our Anti-Discrimination Anti- Employee Promotion
Harassment and Anti-Abuse Regulations. The principle of
equity is embedded throughout the employee lifecycle
- from talent acquisition to development retention and The Company offers a dual-track career progression system (management and professional tracks) providing diversified
succession planning - ensuring equal opportunities and development options. Promotional assessments for both tracks strictly adhere to performance-driven and competency-based
value co-creation across all departments in job placement principles ensuring equitable and transparent selection processes. Additionally NHU facilitates internal mobility opportunities
performance appraisal promotion recommendations and with corresponding training support enabling employees to chart optimal career paths aligned with personal aptitudes and
incentive allocation. We rigorously uphold gender equality organizational needs.in recruitment practices fully complying with national
regulations to prohibit any form of discrimination based on
gender marital status ethnicity or religion while providing Management Sequence
female employees with equitable career advancement opportunities. Additionally we hire qualified persons with disabilities
●
supporting their employment and ensuring their effective workplace integration. This year we employed 33 persons with Base-level management - middle management - senior management successively undergo Yang Fan Qi Cheng and Yuan
disabilities. Hang programs to cultivate reserve talents
The Company strictly complies with laws including the Law of the People's Republic of China on the Protection of Rights and Professional Sequence
Interests of Women Special Provisions on Labor Protection for Female Employees and Zhejiang Provincial Population and Family
Planning Regulations establishing internal Welfare Management Measure to safeguard female employees' rights. We implement ● Proficient → Advanced → Expert → Senior Expert→ Chief Expert
59 602025 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT About this Report Message from the Chairman About NHU ESG Strategy and Governance Green Development for Responsible Commitment: Integrity and Compliance: a Low-Carbon Future Co-Creating a Better Life Fortifying Governance Foundations Appendixes
Staff Training
NHU proactively implements mandatory standards like the General Specification for Work Safety Standardization
NHU has established a comprehensive career-long training system covering multiple dimensions including new employee of Hazardous Chemical Enterprises (GB 45673-2025) integrating requirements from the Guidelines for Chemical
onboarding training position-specific skill enhancement technical expertise development and management capacity building. Process Safety Management (AQ/T 3034-2022). By adopting industry best practices we systematically identified
The Company develops annual training programs that systematically guide the implementation of structured learning initiatives. gaps in existing management systems and executed a comprehensive HSE system upgrade.Employing a blended learning approach that combines online and offline formats with internal faculty and external specialists This overhaul updated 38 management documents including the HSE Management Manual Full-Coverage Work
the organization ensures industry-relevant and future-oriented training content. Through meticulously designed curricula Safety Responsibility System Procedures HSE Risk Management Regulations and Hidden Hazard Investigation
encompassing corporate culture professional ethics technical expertise and managerial competencies the programs holistically and Control Procedures . The enhanced system emphasizes risk control specialized safety and lifecycle
enhance employees' comprehensive quality and operational capabilities. management principles. It strengthens whole-process end-to-end safety supervision and establishes a lifecycle
For technical expertise certification programs such as Equipment Technology Expert Certification and Workshop Management management framework spanning design construction operation maintenance and decommissioning phases—
Leadership Program have been established to cultivate technical specialists and modernize workshop management driving the solidifying inherent safety foundations and elevating overall safety management standards.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 Deepening Engagement in Fine Chemicals – Co-drafting Industry Safety Standards
regularly hosting premium academic conferences to provide enriched learning resources and growth opportunities fostering
synergy between personal development and organizational objectives.In 2025 leveraging its decades of deep cultivation and accumulated expertise in the fine
Occupational Health and Safety chemical industry NHU contributed substantively to drafting the Safety Management
Code for Fine Chemical Enterprises (AQ 3062-2025) led by the Ministry of Emergency
Management with the standard published during the reporting period.NHU prioritizes employee well-being pursuing the "Three Zeros" goal—zero accidents zero violations zero emissions—as its
core objective. We continuously enhance our HSE and OHS Management Systems to achieve inherent safety and foster secure
enterprise development.Governance Strategy
NHU strictly complies with OHS laws and regulations including the Work Safety Law of the People's Republic of China the Work Safety
Occupational Disease Prevention and Control Law of the People's Republic of China the Fire Protection Law of the People's
Republic of China and the Regulations on the Safety Management of Hazardous Chemicals. We actively benchmark against NHU regards work safety as a prerequisite of corporate operations. The Company not only maintains rigorous internal safety
industry best practices such as the Guidelines for Chemical Process Safety Management (AQ/T 3034) and the Guidelines for management but also extends compliance requirements to suppliers and contractors. In accordance with the Contractor HSE
Inherent Safety Assessment of Chemical Processes (T/CCSAS 044) to establish a comprehensive OHS management system. Management Regulations and Stakeholder HSE Management Regulations the contractors are mandated to adhere to work
The Company has developed and implemented comprehensive internal regulations including the HSE Risk Management safety standards and implement operational safety protocols throughout project execution.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
HSE Training Management Rules Occupational Disease Prevention and Control Measures Management Regulations for
Identification and Monitoring of Occupational Disease Hazards and Occupational Health Surveillance and Records Management Conduct compliance verification of contractor qualifications and personnel certifications maintain valid documentation with
Measures. These collectively form an HSE management regulation that comprehensively covers all aspects of OHS management. explicit accountability for record integrity;
We provide work-related injury insurance for all employees. In 2025 we have invested CNY 1230000 in purchasing work safety
liability insurance for high-risk positions achieving nearly 100% coverage. During contract signing
The Company has linked management compensation incentives to HSE performance assessments thereby reinforcing HSE HSE agreements are executed with contractors with mandatory pre-entry safety training for all personnel and documented
management responsibilities and enabling the efficient operation and continuous improvement of the HSE system. HSE safety inspections of construction tools/equipment. Before any operational activity safety condition confirmation risk
performance metrics include both outcome-based and process-based indicators: Outcome-based indicators: thousand-person notification and technical safety briefings must be conducted.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 engagement quantitative audit scores for During operations
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 Multi-tier supervision is performed by guardians contract holders and HSE personnel covering: contractor pre-entry safety
enhancement of OHS performance. training compliance risk and technical safety communication effectiveness tool/equipment safety regulation/procedure
adherence safety measure completeness and contractor behavioral compliance. Identified issues require immediate
rectification with feedback loops to contractors and contract holders.
61 622025 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT About this Report Message from the Chairman About NHU ESG Strategy and Governance Green Development for Responsible Commitment: Integrity and Compliance: a Low-Carbon Future Co-Creating a Better Life Fortifying Governance Foundations Appendixes
The Company prioritizes Process Safety Management (PSM) advancing application of advanced tools like HAZOP (Hazard and
Operability Analysis) and LOPA (Layer of Protection Analysis) for systematic reviews of high-risk process units. A process safety
management system covering "pilot testing - scale-up - design" phases was developed alongside a 571-point PHA Checklist “Family-Enterprise Partnership for Safe” Initiative
standardizing risk identification and management procedures. This PSM approach transforms safety management from reactive
response to preventive action strengthening inherent safety foundations to support sustainable operations.Shandong NHU Amino Acids Co. Ltd. launched the "Family-Enterprise Partnership for Safety" initiative inviting
employees' family members to visit worksites observe working conditions and understand the importance of work
safety thereby encouraging family members to become "safety supervisors". Through joint participation of family
HSE Excellence Engineer Training Program members and employees this initiative deepens employees' sense of responsibility for work safety enhances family members' identification with the Company fosters mutual understanding and support collectively elevates safety
Launched awareness transforms families into safety barriers for the factory and effectively advances the implementation of
family-enterprise collaboration.To enhance resource sharing and collaboration NHU
co-organized the HSE Excellence Engineer Training
Program with Zhejiang Petroleum and Chemical
Industry Association during September 24-26 2025
training 58 safety engineers from diverse chemical
enterprises. Focused on "cultivating HSE excellence
engineers for fine chemical industry sustainability"
the program employed a "theory + practice + site
visits" model to elevate participants' expertise.Occupational Health
For employee occupational health management the Company strictly adheres to regulations including the Occupational Impact Risk and Opportunity Management
Disease Prevention and Control Measures and Personal Protective Equipment Management Measures continuously improving
its occupational health management system. All subsidiaries have obtained ISO 45001 OHS Management System certification The Company regularly conducts emergency plan drills. While meeting regulatory requirements it mandates each shift to
institutionalizing employee health protection. Subsidiaries conduct annual systematic detection and evaluation of occupational perform at least one emergency skills training or drill monthly and each workshop section to conduct on-site contingency plan
hazards employing advanced risk assessment methodologies for comprehensive workplace hazard identification. The Company exercises quarterly. In 2025 the Company continuously improved its emergency response system by refining the Emergency
arranges annual occupational health examinations establishing individualized surveillance files for at-risk employees to Organization and Resource Management Measures and Emergency Preparedness and Response Management Measures. A total
dynamically monitor health status. Concurrently proactive occupational health initiatives are implemented to identify prevent of 4087 on-site contingency plan drills and 452 specialized plan exercises were conducted across all production bases.and control occupational disease hazards effectively mitigating risks of health hazards to employees.In 2025
The Company annually organizes events such as the Occupational Disease Prevention and Control Law awareness week health A total of
knowledge lectures and emergency rescue training to comprehensively enhance employees' health protection awareness and 452
self-management capabilities thereby reducing the incidence of occupational health issues among employees at the source. 4087 on-site contingency plan drills
In 2025 NHU conducted 193 OHS training sessions with participation reaching 43218 person-times achieving 100% employee specialized plan exercises
coverage rate and substantially strengthening overall safety awareness and practical response capabilities.Practical Video-Linked Emergency Drills
In 2025
To test and enhance multi-level coordinated response capabilities
during emergencies on June 21 the Company headquarters
NHU conducted with participation reaching achieving and Shandong NHU Pharmaceutical Co. Ltd. utilized digital
platforms to conduct a cross-regional video-linked emergency
193 OHS training sessions 43218 person-times 100% employee coverage rate drill simulating real-world scenarios. This drill simulated a leakage
accident at Shandong NHU Pharmaceutical Co. Ltd. focusing on
testing emergency response coordination information sharing
command decision-making and joint disposal effectiveness
between headquarters and the production base.
63 642025 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT About this Report Message from the Chairman About NHU ESG Strategy and Governance Green Development for Responsible Commitment: Integrity and Compliance: a Low-Carbon Future Co-Creating a Better Life Fortifying Governance Foundations Appendixes
Indicators and Targets Strategy
To enhance inherent safety management NHU refined and upgraded its reaction/combustion-explosion risk assessment
Indicator 2025 Unit protocols based on the HSE Risk Management Regulations. The Reaction/Combustion-Explosion Safety Risk Assessment Rules
apply to risk evaluations during pilot testing scale-up testing and mass production trials stages covering reaction thermal risks
Work injury insurance expenditure 6.20 CNY million physical unit operation thermal risks gas (vapor) combustion-explosion risks and dust explosion risks. In 2025 NHU optimized
six hazardous processes and six combustion-explosion risk processes. It also organized specialized training on oxidation
Work injury insurance coverage rate 100 %
reaction and dust explosion risk assessments for relevant personnel improving their risk identification and emergency response
Work safety insurance expenditure 1.23 CNY million capabilities.Percentage of employees covered by OHS training 100 % Impact Risk and Opportunity Management
To extend the safety management chain the Company expands chemical risk control to logistics transportation by revising
Chemical Safety the Logistics Carrier HSE Management Rules. These clarify responsibilities among logistics carriers suppliers and receivers
establishing a multi-party collaborative governance mechanism. Focusing on risk identification responsibility allocation
The Company is committed to managing chemicals throughout their entire life cycle—from raw material procurement R&D and process control in chemical transportation the initiative drives stakeholders to fulfill work safety obligations and
design manufacturing product packaging sales distribution to waste disposal—to minimize environmental impact and risks to shifts management from "single-point control" to "full-chain collaborative governance". Institutionalized and standardized
employee health and public safety. Through an information management system the Company implements digital monitoring requirements ensure effective oversight of high-risk activities like hazardous material transportation effectively preventing
and dynamic traceability across all processes including supplier qualification sales tracking and hazardous waste disposal transport safety incidents.ensuring controllable risks and verifiable accountability at each stage. Subsidiaries conduct monthly self-inspections and
corrective actions for potential hazards related to hazardous chemicals.Indicators and Targets
Governance
Indicator 2025 Unit
In institutional development the Company continuously enhances chemical safety management. In 2025 it comprehensively
revised and implemented the Chemical Safety Management Measures further clarifying management responsibilities and
operational requirements at all levels. Additionally specialized management regulations were introduced including the Special Qualified rate of chemical procurement and sales 100 %
Controlled Chemicals Management Rules New Chemical Substances Management Rules and Ozone-Depleting Substances
Management Rules. These establish differentiated control mechanisms for high-risk and regulated chemicals strengthening Chemical-related accidents of general level or above 0 Case
source prevention and process supervision.
65 66Integrity and Compliance:
Fortifying Governance
Foundations
Our Actions
Only with solid foundations can we withstand storms. NHU consistently strives to build high-
standard governance frameworks ensuring stability through standardization earning trust through
transparency and driving growth through efficiency. During the reporting period we strengthened
the Board's strategic oversight deepened risk and compliance management and upheld business
ethics and compliance standards to ensure corporate decisions align with legal requirements and
stakeholders' long-term expectations. We believe continuous governance enhancement will provide
enduring organizational support for sustainable innovation and our mission of industrial contribution
to the nation.Our Performance
● Maintained rating "A" in the Shenzhen Stock ● Ranked among "2025
Exchange's information disclosure evaluations for
17 TOP 30 Best Internal Control consecutive years
Awards for Zhejiang Listed Companies"
● 100% ● 1339 ● coverage of 866
business ethics training patents granted globally total valid patents
● 5 ● newly certified patent- 15 newly registered products
intensive products
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Compliance Governance Internal Audit
The Company has established a robust internal audit system with a dedicated professional audit team. Regular reporting
NHU continuously optimizes corporate governance by strictly adhering to the Company Law Securities Law and Articles of throughout the entire review process has been designated as a core audit responsibility. The team conducts diversified internal
Association . Through systematic institutional reforms and organizational refinements we enhance governance standardization audit activities including internal control audits of financial reporting operational audits business ethics audits leadership
and effectiveness. departure audits and accountability audits. The audit scope covers the entire financial reporting process related party
To meet internal governance requirements and regulatory guidelines the Company consistently updates its governance transaction management procurement sales bidding and other key operational and information disclosure procedures. The
framework. Following approvals of the Board of Directors (BoD) meetings and General Meeting of Shareholders in 2025 we focus is on verifying the authenticity of financial data in regular reports the compliance of accounting treatments and the
revised 30 governance documents including the Articles of Association Rules of Procedure for Shareholders' Meetings Rules completeness of information disclosure ensuring that all reports comply with applicable accounting standards for business
of Procedure for the Board of Directors and Independent Director System. Three new policies were established: Market Value enterprises and regulatory disclosure requirements. The entire audit process is strictly supervised by the Audit Committee of the
Management Regulations ESG Management Regulations and Executive Departure Management Regulations. The Company Board. The head of internal audit reports directly to the Board of Directors. This structure—encompassing organizational setup
has established a well-defined governance structure centered on the Articles of Association clearly delineating responsibilities performance protocols and reporting mechanisms—fully safeguards the fairness objectivity and independence of the audit
among Shareholders' Meetings BoD specialized committees and management. function thereby reinforcing a robust quality defense line for information disclosure and protecting the legitimate rights and
interests of all shareholders and stakeholders.The BoD comprise 11 directors: 4 independent directors and 7 non-independent directors. Adhering to the principles of
independence and diversity the Company's BoD comprises members with expertise across multiple fields including chemical In 2025 the Company optimized 12 specialized audit management regulations including the Internal Audit Regulations and
engineering accounting law and management ensuring professional and efficient decision-making. In 2025 the Company Engineering Audit Management Measures completing 50 departure audits for executives 12 special audits and 1 audit
completed its supervisory board reform by abolishing the supervisory board and adding one employee director. The governance rectification verification project. Audit coverage included: performance and economic responsibility evaluations for executives
model transitioned from the structure of General Meeting of Shareholders BoD and supervisory board to the structure of AEO certification compliance audits subsidiary operations reviews new product project management assessments joint venture
Shareholders' Meeting and BoD with strengthened responsibilities of the Audit Committee assuming former supervisory governance examinations procurement and bidding audits cafeteria management reviews transportation cost controls and
functions. follow-up audits on prior-year rectifications.Information Disclosure
In 2025
Board of Directors The Company revised its Information Disclosure Management Regulations
per latest regulatory requirements enhancing quality control and process
Board of Directors management. A multi-tiered review system ensures the authenticity
accuracy completeness timeliness and fairness of disclosures. The
4 7 Company maintained rating "A" in the Shenzhen Stock Exchange's 7 information disclosure evaluations for 17 consecutive years.
General Meeting of Shareholders Risk Governance
4 The Company continuously enhances its risk management system to ensure operational stability. In 2025 the Company
developed a comprehensive risk inventory system by
Supervisory board extending risk identification from individual contracts to the
non-independent directors independent directors entire business chain. Core regulations including the Contract
Management Measures were updated to integrate systems
5 with operational practices establishing a management loop from issue identification to system optimization. Concurrently
the Company expanded the application of electronic seals
in overseas subsidiaries standardizing operational principles
and seal usage to enhance legal risk prevention capabilities
Compliance Management in cross-border operations.The Company proactively conducts risk management training delivering specialized legal programs tailored to different
hierarchies and functions. For directors supervisors and senior management listed company compliance and internal control
training was organized; For all executives and business unit heads signing compliance sessions reinforced risk control in
Under the oversight of the BoD meetings and shareholders' meetings in 2025 the Company enhanced its Internal Control overseas documentation processes; Sales finance and other operational teams received anti-dumping practical training to
System focusing on strengthening management controls over subsidiaries. Specialized control policies and procedures were build professional capabilities in addressing international trade barriers creating a legal risk defense system spanning from
optimized for high-risk areas including connected transactions external guarantees use of raised capital major investments management to execution levels.and information disclosure. For overseas subsidiaries the Company has established foundational compliance frameworks
through regulations such as the Overseas Subsidiary Management Regulations and Overseas Subsidiary Compliance Recognized for outstanding risk control capabilities NHU was honored among the "2025 TOP 30 Best Internal Control Awards
Management Measures standardizing operational principles and strengthening cross-border compliance governance. for Zhejiang Listed Companies".
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Business Ethics Business Ethics Training
NHU regards business ethics as the cornerstone of compliant operations strictly adhering to relevant laws and ethical Upholding its "Teacher Culture" NHU integrates integrity In 2025
standards while fostering trustworthy fair and sustainable business partnerships. A well-structured governance framework awareness as a core component of employee development.with clear accountability has been established with the BoD overseeing leadership supervision and decision-making for The Company employs diverse training methods to
business ethics development. At the operational level the Integrity Committee is responsible for integrity system development internalize compliance principles. In 2025 NHU issued
training organization and whistleblowing case management. Internal management regulations including the Business Ethics the Code of Conduct for Integrity clearly defining ethical business ethics training achieved
Governance Procedures Management Discipline Regulations Whistleblowing Management Measures and Relative Employment boundaries for all positions to guide self-assessment
Management Measures explicitly define anti-bribery and anti-unfair competition provisions. The internal audit department and ensure every employee adheres to the principle of 100% coverage
conducts regular on-site inspections and audits to monitor integrity risks. "Conducting Business with Honesty and Diligence". This
year business ethics training achieved 100% coverage
Whistleblowing Handling Procedure across all employees (including part-time staff) and
contractors.Multi-channel reporting systems (dedicated hotline email CEO/General Manager mailbox) operate under standardized
procedures. The Management Discipline Regulations Employee Reward and Punishment Management Measures and Integrity
Baseline Handbook establish disciplinary boundaries and behavioral guidelines adopting a "corrective and educational"
approach to promptly address misconduct. We rigorously protect whistleblower rights in accordance with company Indicator 2025 Unit
requirements ensuring confidentiality of personal information and report content. Every case receives follow-up and feedback
enabling employees to work securely in an ethical environment conducive to professional growth. Management's signing rate of integrity agreements 100 %
The Whistleblowing Handling Process
Employees' signing rate of integrity agreements 100 %
Whistleblowing After receiving a whistleblowing matter the integrity department of each unit shall report Coverage rate of anti-corruption training 100 %
Acceptance the information to the Discipline Inspection and Supervision Department within 5 working days for unified registration and circulation.Directors 11 Person
An investigation team of 2 or more people will be established according to the needs of Anti-Corruption training
the case to analyze the case and develop an investigation plan under the leadership of Senior Management 4 Personparticipants
Whistleblowing the team leader determined. Relevant personnel will be interviewed to get the picture
Investigation of the case evidence will be collected and an investigation report will be prepared. Employees 11508 Person
The investigation process will strictly follow the Company's rules as well as laws and
regulations to ensure fairness and accuracy.Decision Execution: The case shall be handled according to the Management Discipline
Regulations including supervisory recommendation interview yellow card warning
demotion/removal (dismissal) or termination of the employment contract. Integrity Short Video Creation
Pending Verification: The clues show a certain degree of verifiability but verification must
Handling be temporarily deferred due to objective constraints until conditions become favorable for
Decision proper verification. To deepen integrity culture development the Company continuously explores innovative educational approaches that
Warp up: The clues are verified to be unsubstantiated or verification is possible. integrate learning with entertainment and artistic expression enriching the substance and delivery channels of integrity
culture. The Company actively responded to and participated in the "Clean Practices Integrity in Action" short video
Transfer to Judicial Authorities: If serious illegal facts are found upon verification subject to competition organized by the NHU Holding Group extending integrity education from traditional didactic methods to
criminal prosecution the case will be transferred to judicial authorities. dynamic visual storytelling. All business units enthusiastically engaged in the initiative developing a series of compelling
integrity-themed short videos through meticulous planning scriptwriting and performance based on their operational
realities and workplace narratives. Multiple entries stood out among numerous submissions winning first second and
Reporting channels: Telephone corporate website email mail and in-person visits third prizes respectively demonstrating the Company's achievements in integrity culture development and employees'
commitment to ethical conduct.Reporting hotline: 13819569096
Reporting email: jubao@cnhu.com
Mailing address and in-person visits: West Xinchang Avenue No.418 Xinchang County Shaoxing City
Zhejiang Province
On-site Reporting: Direct reporting available at agreed time and location
71 722025 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT About this Report Message from the Chairman About NHU ESG Strategy and Governance Green Development for Responsible Commitment: Integrity and Compliance: a Low-Carbon Future Co-Creating a Better Life Fortifying Governance Foundations Appendixes
Intellectual Property Protection
Publication of Integrity Baseline Handbook
NHU places great emphasis on intellectual property (IP) protection and management consistently regarding it as a core pillar
Focusing on integrity risk points across positions the Company systematically for corporate innovation and development. The Company continuously enhances its IP management system covering patents
reviewed business processes and published the Integrity Baseline Handbook trademarks trade secrets and other areas. It has established and implemented internal regulations including the Patent
establishing behavioral standards covering all operational roles. Mandatory for new Management Regulations Trademark Management Regulations Basic Confidentiality Management Regulations Intellectual
hires transferred employees and newly appointed managers during onboarding Property Emergency Response Plan and Confidentiality Violation Investigation Procedures building a comprehensive IP
discussions this Handbook defines non-negotiable behavioral boundaries. It enables protection mechanism to ensure effective safeguarding of innovation outcomes. By actively implementing the national standard
continuous self-assessment and provides clear guidance for maintaining an ethical GB/T 29490-2023 Requirements for Enterprise Intellectual Property Compliance Management Systems and the international
work environment. standard ISO 56005 Innovation & Intellectual Property Management Capability NHU continuously optimizes and improves its IP
management systematically enhancing standardization and effectiveness.While refining internal management NHU steadfastly adheres to the principle of respecting others' IP rights and strictly prevents
infringement of any third-party legitimate interests. We require business partners to commit that their products and services
do not infringe others' IP rights. We strengthen compliance reviews and risk controls during collaborations to foster a fair
standardized and mutually trustworthy IP protection environment. Through continuous improvement of IP portfolio strategies
and risk prevention mechanisms we consistently enhance independent innovation capabilities and brand reputation providing
solid support for high-quality development.Ethical Collaboration During the reporting period amid global economic shifts and technological transformations the Company's IP work transitioned
from quantity accumulation to building high-value patent portfolios and systematic protection systems. As of December 31
2025 the Company had filed 1339 patents globally and held 866 valid patents including 726 domestic valid patents (588
NHU is committed to building a transparent mutually In 2025 invention patents) and 140 overseas valid patents (126 invention patents).trustworthy ecosystem for open cooperation. The Company
extends business ethics requirements to supply chain During the reporting period NHU successfully completed the certification upgrade for the new national standard GB/T 29490-
management through a rigorous supplier qualification 2023. It also continuously optimized IP management per ISO 56005 standards with two subsidiaries renewing Level 4 achieving
system comprehensively evaluating vendors' operational certification for Innovation & Intellectual Property Management Capability (ISO 56005). As a pioneer in Zhejiang Province's High-
credentials and quality environmental and safety Value Patent Cultivation Base initiative NHU comprehensively implemented the Advanced Polymer Materials Industry High-
management systems. We fortify integrity defenses via 100% supplier integrity Value Patent Cultivation Base further improving cultivation mechanisms and strengthening project management. This year five
contractual agreements with partners achieving 100% products were newly certified as patent-intensive with 15 additional filings recorded.supplier integrity agreement/clause signing rate by 2025. agreement/clause signing rate
We proactively promote sustainability throughout the value
chain establishing long-term strategic partnerships with
sustainability-aligned suppliers to drive collective progress
and innovation in the industry.During the reporting period the Company did not experience
any corruption incidents that seriously affected the financial
reports or the Company's operations.Fair Competition
Upholding fair competition principles the Company In 2025
strictly complies with the Anti-Monopoly Law of the
People's Republic of China the Anti-Unfair Competition
Law of the People's Republic of China and the Anti-
Monopoly Compliance Guidelines for Business Operators . the Company did not
We institutionalize legal requirements through our Anti- have any violations related to unfair
Monopoly Compliance Management Regulations and competition.establish a closed-loop risk management mechanism
via periodic publication of the Competition Compliance
Handbook: Case Studies & Regulatory Guidelines and
compliance inspection reports.
73 742025 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT About this Report Message from the Chairman About NHU ESG Strategy and Governance Green Development for Responsible Commitment: Integrity and Compliance: a Low-Carbon Future Co-Creating a Better Life Fortifying Governance Foundations Appendixes
Systematically Built Trade Secret Protection Frameworks
Total Valid Patents Overseas Valid Patents
NHU refined trade secret management regulations and implemented project confidentiality measures through key
866 140 special programs. We conducted regular confidentiality inspections onboarding/offboarding training and in-service education to establish "protecting trade secrets" as fundamental professional ethics for every employee.
Domestic Valid Registered Trademarks International Valid Registered Trademarks
Advanced IP Training and Cultural Development
365 305 Internally the Company designed courses and delivered hands-on training covering the entire innovation chain; created
an environment where "everyone values innovation and protects outcomes" through the Intellectual Property Month
campaign series; and organized 11 internal IP training sessions annually with over 10000 employee participations
significantly enhancing organization-wide IP protection awareness and practical skills. Externally the Company
Standards Development Participation proactively shared management expertise by disclosing R&D full-process practices on provincial/municipal government
platforms; and engaged deeply in international standard trainings and industry talent development while continuously
107 absorbing advanced concepts through exchanges to strengthen internal systems.
In April 2025 during the 14th Intellectual Property Month the Company conducted trainings including "Efficient
Literature Retrieval & Reading" "Patent Creativity Mining" "Patent Invalidation & Litigation Knowledge" and "Patent
National Technology China Patent China Patent Risk Assessment & Response".Invention Second Prizes Gold Awards Silver Awards
221
China Patent Excellence Awards
3
Key IP Protection Initiatives in 2025 In June 2025 the Company delivered corporate IP system construction and risk management training at the
"Stepping Stone" Collaborative Innovation Empowerment - Spring IP Training Camp hosted by Hangzhou High-Tech
Zone (Binjiang) Market Supervision Administration and organized by Guozhi Intellectual Property Consulting Co. Ltd.Deepened High-Value Patent Portfolio Strategies
In July 2025 the Company participated in the "ZheZhiZhi" online public lecture series by Zhejiang Intellectual
Upholding the "Innovation-Driven Development" principle NHU shifted its patent strategy focus from quantity Property Association sharing "Full-Process IP Management in Corporate R&D" with provincial innovators.accumulation to quality enhancement and core business protection in 2025 transforming innovations into technical
barriers and commercial advantages. We actively pursued patent applications for advantageous fermentation strains
and novel pigment formulations conducted forward-looking patent deployment around key projects such as the nylon
industrial chain and comprehensively implemented the Zhejiang High-Value Patent Cultivation Base for Advanced
Polymer Materials Industry project to strengthen the patent protection network.Enhanced Front-loaded Reviews and Full-process Risk Management
NHU embedded intellectual property reviews at critical stages of major project decision-making and operations through
deep front-loading. We implemented the new Intellectual Property Management System standard and ISO 56005
international standard systematically integrating risk management throughout the innovation lifecycle to upgrade
continuous risk prevention across project lifecycles.
75 762025 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT About this Report Message from the Chairman About NHU ESG Strategy and Governance Green Development for Responsible Commitment: Integrity and Compliance: a Low-Carbon Future Co-Creating a Better Life Fortifying Governance Foundations Appendixes
Appendixes Aspect Topic Quantitative Indicator 2025 Unit
Coal consumption 765000 Ton
Appendix I: Key Performance Table 10000 standard cubic Natural gas consumption 4940 meters
10000 standard cubic
Liquefied petroleum gas consumption 0
meters
Aspect Topic Quantitative Indicator 2025 Unit
Gasoline consumption 0 Liter
Nitrogen oxide (NOX) emissions 334.27 Ton Diesel consumption 79245.11 Liter
Ozone depleting substances (ODS)
1.93 Ton Ton of standard coal/
emissions Energy consumption intensity 0.74 Ton of production
Sulfur oxides (SO ) emissions 66.54 Ton Year-on-year decrease rate of energy 2 7.53 %
Emissions consumption per CNY 10000 output value
Hazardous air pollutants (HAP) emissions 0 Ton Electricity consumption 149100 10000 kWh
Volatile organic compounds (VOC) KWh/Ton of
185.28 Ton Electricity intensity 1277
emissions production
Purchased electricity 131000 10000 kWh
Particulate matter emissions 30.11 Ton
Self-consumed photovoltaic electricity 1410 10000 kWh
Total amount of general solid waste 242164.38 Ton Utilization of
resources Clean energy electricity consumption (including 7207 10000 kWh
Density of general solid waste 0.207 Ton/Ton of production green electricity and green certificates)Environmental
Waste Installed capacity of deployed photovoltaic
Total amount of hazardous waste 115852.13 Ton 12.82 MWpower projects
Environmental Density of hazardous waste 0.099 Ton/Ton of production Proportion of clean energy consumption 2.46 %
Total GHG emissions (Scope 1 + Scope 2) 2881462.22 tCO e Consumption of renewable resources 21133 Ton2
Total solar energy consumption by the Company 1733 Ton of standard coal
Scope 1 GHG emissions 897516.3 tCO2e
Total biomass resource consumption by the
Scope 2 GHG emissions 1983945.93 tCO e 12275 Ton of standard coal2 Company
Greenhouse GHG emission intensity (Scope 1 + Scope tCO e/Ton of Total green electricity purchased by the
2.47 2 7125 Ton of standard coalgas (GHG) 2) production Company
Proportion of renewable resources 2.46 %
tCO e/Ton of
Scope 1 GHG emission intensity 0.77 2
production Proportion of solar energy used by the Company 0.20 %
tCO e/Ton of Proportion of biomass resources used by the
Scope 2 GHG emission intensity 1.70 2 0.83 %
production Company
Proportion of green energy purchased by the
Total energy consumption 860800 Ton of standard coal 1.43 %Company
Utilization of
Direct energy consumption 594000 Ton of standard coal
resources Coverage scope of water intake data 100 %Management of
Indirect energy consumption 266800 Ton of standard coal water resources Coverage scope of water usage data 100 %
77 782025 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT About this Report Message from the Chairman About NHU ESG Strategy and Governance Green Development for Responsible Commitment: Integrity and Compliance: a Low-Carbon Future Co-Creating a Better Life Fortifying Governance Foundations Appendixes
Aspect Topic Quantitative Indicator 2025 Unit Aspect Topic Quantitative Indicator 2025 Unit
Total water withdrawal 16353000 Ton Total number of employees 11508 Person
Fresh water withdrawal 15985000 Ton Permanent 11305 Person
employees
Other water withdrawal 368000.00 Ton Employee Temporary
employment Number of employees by 203 Person
Total water consumption 472733000 Ton employeesemployment category
Fresh water consumption 15985000 Ton Non-guaranteed
working hours / Person
Fresh water consumption intensity 13.69 Ton/Ton of production employees
Recycled water volume 456380000 Ton Senior management 4 Person
Water recycling utilization rate 96.54 % Middle management 376 Person
Management of Number of employees by
water resources General Proportion of fresh water intake 97.75 % employment level 758 Personmanagement
Discharge amount of industrial
9465965.80 Ton Base-level employees 10370 Person
wastewater
Number of employees by Male 9208 Person
Discharge intensity of industrial
8.11 Ton/Ton of production gender
wastewater Female 2300 Person
Proportion of women in senior management 25.00 %
COD emissions 2100.88 Ton
Environmental Social Proportion of women in executive management 14.02 %Ammonia nitrogen emissions 122.80 Ton
Senior high school or
Total phosphorus emissions 42.16 Ton 1985 Personbelow
Total nitrogen emissions 246.97 Ton Number of employees by Junior college degree 3975 Person
Employee education level
Packaging material consumption 49037 Ton Bachelor's degree 4120 Personemployment
Paper category 6972 Ton Postgraduate degree 1428 Person
or above
Wood category 17935 Ton
Packaging Under 30 years old 5024 Person
materials
Metal category 12065 Ton Number of employees by 30-50 years old 5988 Person
age
Plastic 6755 Ton Over 50 years old 496 Person
Density of packaging materials used 0.042 Ton/Ton of production Mainland China 11421 Person
Environmental protection investment 46061.81 CNY 10000 Number of employees by Hong Kong Macao 0 Person
region and Taiwan
Number of environmental incidents
or administrative penalties related to 0 Times Overseas 87 Person
Others environmental issues
Number of employees by Han ethnicity 11231 Person
Percentage of factories certified with ethnicity Ethnic minorities 277 Person
ISO 14001 Environmental Management 100 %
System Total number of disabled employees employed 33 Person
79 802025 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT About this Report Message from the Chairman About NHU ESG Strategy and Governance Green Development for Responsible Commitment: Integrity and Compliance: a Low-Carbon Future Co-Creating a Better Life Fortifying Governance Foundations Appendixes
Aspect Topic Quantitative Indicator 2025 Unit Aspect Topic Quantitative Indicator 2025 Unit
Total number of veterans employed 296 Person Work injury insurance coverage rate 100 %
Number of employed persons hired (new employees) 829 Person Investment amount of work safety liability insurance 123 CNY 10000
Male 635 Person Personnel coverage rate of work safety liability
Employee 100 %
Number of new employees insurance
employment
Female 194 Person
Occupational Lost time injury frequency rate (LTIFR) per million man- Case/Million 0.74
Male 7.89 Year health and hours working hoursAverage tenure of employees
in the Company safety (OHS)
Female 7.09 Year Number of OHS training sessions conducted 193 Times
Employee turnover rate 4.29 % Number of participants in OHS training 43218 Participant
Male 4.07 %
Employee turnover rate by Proportion of employees covered by OHS training 100 %
gender
Female 5.15 % Number of safety drills conducted 452 Times
Under 30 years old 7.15 % Employee training coverage rate 100 %
Employee Employee turnover rate by age 30-50 years old 2.03 % Number of training sessions conducted 4838 Times
turnover
Over 50 years old 1 %
Total number of employees trained 11508 Person
Mainland China 4.28 %
Social Social Male 80.01 %
Employee turnover rate by Hong Kong Macao and
0 % Proportion of trained
region Taiwan employees by gender
Female 19.99 %
Overseas 1.14 %
Percentage of labor contract coverage 100 % Male 9208 Person
Employee's Number of trained employees
rights and Percentage of employees with social insurance 100 % Staff by gender
interests Female 2300 Persontraining and
Annual average paid leave days per employee 9.54 Day development
Senior management 0.03 %
Number of new occupational disease cases 0 Person
Middle management 3.27 %
Proportion of trained
Physical examination rate of employees 100 % employees by employee level
General management 6.59 %
OHS examination rate of employees 100 %
Base-level 90.11 %
Occupational
Number of work-related deaths 0 Person
health and
Senior management 4 Person
safety (OHS)
Occupational disease incidence rate 0 %
Middle management 376 Person
Number of trained employees
Proportion of factories certified by ISO 45001 OHS
100 % by employee type
Management System General management 758 Person
Investment amount of work injury insurance 620 CNY 10000 Base-level employee 10370 Person
81 822025 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT About this Report Message from the Chairman About NHU ESG Strategy and Governance Green Development for Responsible Commitment: Integrity and Compliance: a Low-Carbon Future Co-Creating a Better Life Fortifying Governance Foundations Appendixes
Aspect Topic Quantitative Indicator 2025 Unit Aspect Topic Quantitative Indicator 2025 Unit
Male 405631 Hour Number of information security training sessions conducted 73 Times
Total training hours by gender
Female 112347 Hour Number of participants in information security training 11508 Participant
Senior management 70 Hour Proportion of employees covered by information security
Data 100 %training
Middle management 13180 Hour security
Total training hours by employee and privacy
type protection Frequency of internal information security audits 2 Times/yearGeneral management 37382 Hour
Frequency of third-party information security audits 1 Times/year
Gross-root employee 467346 Hour
Total training hours for employees 517978 Hour Number of incidents involving breaches of customer privacy 0 Case
and information security
Staff
training and Average training hours per employee 45.01 Hour CNY (hundred
development R&D investment (funds related to technological innovation) 10.99
Male 44.05 Hour million)
Average training hours per
employee by gender
Female 48.85 Hour Proportion of R&D investment amount to main business 4.94 %
revenue
Senior management 17.5 Hour Social Total number 2841 Person
R&D Team
Average training hours per Middle management 35.05 Hour Proportion 24.69 %
employee by employee level
General management 49.32 Hour
Social Domestic invention patents 866 Item
Gross-root employee 45.07 Hour
Domestic valid patents 726 Item
Annual training expenditure amount 512 CNY 10000
Domestic invention patents 588 Item
Percentage of products recalls attributable to quality
0%
deficiencies in the total number of sold or delivered products Product Overseas valid patents 140 Item
R&D
Overseas invention patents 126 Item
Severe (Level 1) 0 Case
Cumulative 107 Item
Number of product recalls Moderate (Level 2) 0 Case Newly granted 26 Item
Product
quality and Newly added national Minor (Level 3) 0 Case 22 Item
service standards
Number of standards
Total number of complaints received regarding products participated in drafting Newly added industry 12 Case 2 Item
and services standards
Complaint handling rate regarding products and services 100 % Newly added
4 Item
association standards
Customer satisfaction 94.08 Point
Newly added local
Proportion of products certified by various quality standards 100 % 0 Itemstandards
83 842025 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT About this Report Message from the Chairman About NHU ESG Strategy and Governance Green Development for Responsible Commitment: Integrity and Compliance: a Low-Carbon Future Co-Creating a Better Life Fortifying Governance Foundations Appendixes
Aspect Topic Quantitative Indicator 2025 Unit Aspect Topic Quantitative Indicator 2025 Unit
Number of sessions
11 Time Directors 96 Person
conducted
Intellectual property-related Anti-corruption training
Cumulative time 17.25 Hour Senior management 782 Person
training participants
Number of participants 10000 Participant Employees 10889 Person
Product R&D
Directors 9 Hour
Participant Number of trademark rights 670 Item
Number of copyrights 408 Item Anti-corruption training hours Senior management 12 Hour
Number of products with carbon footprint certificates 41 / Employees 5 Hour
Total number of suppliers 4581 Company
Anti- Directors 100 %
Mainland China 3581 Company corruption Proportion of employees
receiving anti-corruption Senior management 100 %
Hong Kong Macao and
Number of suppliers by region 2 Company training by category
Taiwan
Employees 100 %
Supply chain Overseas 46 Company
Social management Governance Number of anti-corruption training participants 11508 Person
Number of suppliers assessed against environmental and
86 Company
social standards Management's signing rate of Integrity Agreements 100 %
Suppliers' signing rate of integrity agreements 100 %
Employees' signing rate of Integrity Agreements 100 %
Amount of delayed payments to small and medium-sized
0 CNY 10000
enterprises (SMEs) The amount involved due to the company's unfair 0 CNY 10000
competition behavior
Total investment in rural revitalization 60 CNY 10000 Operating revenue 22.251 CNY billion
Investment in public welfare and charity undertakings 493 CNY 10000 Economic Total assets 45.606 CNY billion
performance
Public welfare
and charity Number of participants in public welfare and charity 450 Person
undertakings Net profit attributable to shareholders of the listed undertakings 6.764 CNY billioncompany
Number of people participating in volunteer activities 500 Person
Number of directors 11 Person
Corporate
governance
Total hours dedicated to volunteer activities 800 Hour Proportion of women in directors 0 %
85 862025 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT About this Report Message from the Chairman About NHU ESG Strategy and Governance Green Development for Responsible Commitment: Integrity and Compliance: a Low-Carbon Future Co-Creating a Better Life Fortifying Governance Foundations Appendixes
Appendix II: Self-Regulatory Guidelines for Listed Companies—
Sustainability Report (For Trial Implementation)
Aspect S/N Topic Clause Chapter of the Report Aspect S/N Topic Clause Chapter of the Report
1 Responding to climate change Articles 21 to 28 Addressing Climate Change Social 17 Employees Article 50 Employees
Pollution Prevention and
2 Pollutant discharge Article 30
Ecosystem Protection 18 Due diligence Article 52 ESG Governance
Pollution Prevention and
3 Waste disposal Article 31
Ecosystem Protection 19 Stakeholder engagement Article 53 Stakeholder Engagement
Sustainability-
Ecosystem and biodiversity Pollution Prevention and related
4 Article 32
protection Ecosystem Protection governance 20 Anti-commercial bribery Article 55 Business Ethics
and anti-corruption
Environmental
Environmental compliance Pollution Prevention and
5 Article 33
management Ecosystem Protection 21 Anti-unfair competition Article 56 Business Ethics
Resource and Energy
6 Energy utilization Article 35
Management
Resource and Energy
7 Utilization of water resources Article 36
Management
8 Circular economy Article 37 Circular Economy
Rural Revitalization and Social
9 Rural revitalization Article 39
Welfare
Rural Revitalization and Social
10 Social contributions Article 40
Welfare
11 Innovation-driven development Article 42 Innovation-Driven Development
Ethics of science and
12 Article 43 N/A
Social technology
13 Supply chain security Article 45 Suppliers and Customers
14 Equal treatment of SMEs Article 46 Suppliers and Customers
Product and service safety &
15 Article 47 Suppliers and Customers
quality
Data security and privacy
16 Article 48 Suppliers and Customers
protection
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