S u s t a i n a b i l i t y
Zhejiang Jiuli Hi-Tech Metals Co. Ltd.Zhejiang Jiuli Hi-Tech Metals Co. Ltd.Address: (South Gate of Jiuli Industrial Park) No.1899 Zhongxing Road Wuxing District Huzhou Zhejiang China
Registered address: Shuanglinzhen West Huzhou Zhejiang China
Tel：0086-572-2539999
Postcode: 313028
Email：jlgf@jiuli.com Share Stock Code：002318CONTENTS CONTENTS
About This Report 03
Chairman's Statement 05 01 03 05
Sound Governance Upholding Quality Responsible Partnership
About Jiuli 07 Building Solid Innovating Leads Gathering
08 Foundation For Development the Future a Force for GoodSustainability Management
Strengthening Corporate Governance 17 Continuous R&D and Innovation 45 Responsible Supply Chain 83
Party Building Leads Development 25 Upholding Product Quality 53 Industry Connection 89
Key Performance Disclosure 95
Optimizing the Customer Experience 58 Fulfilling Social Responsibility 90
Index 100 Maintaining Information Security 60
02
Low-Carbon and 04
Environmental Protection Safety First
Building a New Chapter Empowering
of Sustainability Employee Development
Enhancing Climate Resilience 29 Protect Occupational Health 65
Optimizing Energy Use 34 Protecting Employee Rights and Interests 71
Environmental Compliance Management 37 Empowering Employee Development 76
Promoting Clean Production 38
Ecosystem Protection 41ABOUT THIS REPORT
This is the 2024 Sustainability Report published by Zhejiang Jiuli Hi-Tech Metals Co. Ltd. This report details the compa- EXPLANATION OF INFORMATION
ny's sustainable development philosophy and strategy as well as its efforts in environmental protection social respon-
sibility and corporate governance in 2024 aiming to respond to the expectations and needs of stakeholders.This report is compiled based on the company's consolidated statistics. Data is sourced from official company docu-
ABBREVIATIONS ments and statistical reports as well as specific data provided by relevant functional departments. Unless otherwise specified the currency in this report is in RMB.Due to the differences in statistical standards between China and abroad and to ensure data accuracy and comparabili-
For ease of presentation and readability"Jiuli " "the Company" and "we" in the report refer to Zhejiang Jiuli Hi-Tech ty in Chapter 4 and the key performance tables only headcount and gender statistics for overseas EBK locations are
Metals Co. Ltd "Jiuli Group" refers to Jiuli Group Co. Ltd. and "EBK" refers to EISENBAU KR?MER GMBH (a overseas included. Other data items do not currently include information on overseas EBK locations.subsidiary of Jiuli).REPORTING PERIOD REPORT ACCESSThe report is published on annual basis in digital format. It can be downloaded from Juchao Information Network（ww-This report covers the calendar year from January 1st 2023 to December 31st 2023 with some contents extended beyond w.cninfo.com.cn）.the above mentioned period for readability.REPORTING STANDARD
This report is prepared in accordance with the relevant requirements of the Global Sustainability Standards Board
(GSSB) Sustainability Reporting Standards(GRI STANDARDS 2021) the Shenzhen Stock Exchange's Self-Regulatory Guide-
lines for Listed Companies No. 1 - Standardized Operations and Self-Regulatory Guidelines for Listed Companies No. 17
- Sustainability Reporting (Trial) (hereinafter referred to as the "SZSE Guidelines") and in light of the company's actual
situation.
03 04S u s t a i n a b i l i t y
CHAIRMAN'S STATEMENT
To all stakeholders: welcome to our 2024 sustainability report. On
behalf of the board of directors of Zhejiang Jiuli Hi-tech Metals Co.Ltd. I would like to thank you for your continued care and support.In 2024 Jiuli carrying the mission entrusted by this era stood bravely at the forefront of industry develop- developed and delivered corrosion-resistant alloy pipes for the first domestic demonstration unit of
ment. Through the year all our colleagues worked together with determination and achieved fruitful environmentally friendly epichlorohydrin make technical breakthrough in key piping materials manufac-
results. Facing the challenges of development and the test of the times we have deeply embraced the turing for new nuclear energy and obtained 128 effective patents earning the title of "National Intellectual
concept of sustainability implemented innovation-driven development strategy and firmly fulfilled our Property Demonstration Enterprise."
corporate social responsibility contributing the strength of Jiuli to the realization of social sustainable
development. We have built a new landscape for co-development to inject new vigor into social progress.We adhere to a people-oriented approach creating a positive ecosystem with employees suppliers and
We continuously improve top-level design to strengthen the foundation of modern governance. the community. Internally we improve the safety production management system ensure employees'
While strengthening risk management and internal control compliance systems we adhere to business occupational health and provide clear career development channels. Externally we optimize supply chain
ethics optimize anti-fraud and reporting mechanisms deepen integrity education for all employees and management strictly control quality risks and promote the green transformation of the industrial chain.promote the concept of fair competition. The company always follow the leadership of the Party and In the community we actively participate in public welfare carry out donations and volunteer services
intensively promotes five key actions ? Ideological Strength Solid Foundation Innovation Leadership and promote the harmonious coexistence of business value and social value.Humanistic Well-being Integrity Culture achieving a two-way empowerment of Party building and corpo-
rate management. Setting sail on a new journey it is the right time for hardwork. Looking ahead to 2025 Jiuli will continue to
be based on scientific governance with a green concept as its soul adhering to the corporate spirit of
We actively promote green transformation and implement the dual-carbon strategic goals. "pioneering through hardship winning with quality and basing ourselves on integrity" and practicing the
With the goal of creating a "zero-carbon factory" we enhance climate resilience accelerate the optimiza- business philosophy of " Serving customers contributing to the society and developing Jiuli." We will work
tion of our energy structure and strengthen environmental compliance management. We implement clean hand-in-hand with all partners bravely assume social responsibility and contribute greater strength to
production and green operations optimize our waste management system and achieve efficient recycling promoting sustainable development.of water resources in our industrial park. In 2024 the company's cumulative carbon emissions were
reduced by 9864 tons and the carbon emission intensity was less than 1 ton/10000 yuan.Driven by technological innovation we have forged the industry quality benchmark.We are actively expanding our scientific research platform attracting technical talent breaking through key Li Zhengzhou Chairman Zhejiang Jiuli Hi-Tech Metals Co. Ltd.core technologies and promoting product intelligence upgrades. We implement full life-cycle quality manage-
ment build a strong information security defense line optimize our service system and continuously improve
customer satisfaction. In 2024 the company's R&D investment reached 360 million yuan. We successfully
05 06S u s t a i n a b i l i t y
ABOUT JIULI ACHIEVEMENTS AND HONORS
COMPANY PROFILE
2024 TOP 500 PRIVATE ENTERPRISES IN CHINA
Jiuli the core holding subsidiary of Jiuli Group Co. Ltd. has been committed to quality improvement since its establish-
ment in 1987. In 2009 the company was successfully listed (stock code: 002318) focusing on the R&D and production of JIULI GROUP
stainless steel that are resistant to corrosion high temperatures and high pressure and special alloy pipes wires bars
pipe fittings forgings and other products.This has formed a complete industrial chain covering R&D smelting forging
and processing services.Since 1997 the company has introduced the ISO 9001 quality management system and continuously improved customer "2024 Top 500 Manufacturing "2024 Top 100 Enterprises "2024 Top 100 Manufacturing
satisfaction by ensuring compliance with customer legal and regulatory requirements. Currently the company has Enterprises in China" - Rank 368 in Zhejiang Province" - Rank 95 Enterprises in Zhejiang Province"
passed ISO 9001 quality assurance ISO 14001 environmental management ISO 45001 occupational health and safety - Rank 65
management systems Civil Nuclear Safety Equipment Manufacturing License ASME nuclear power certification special
equipment manufacturing license for pressure pipelines and components API-5LC/5CT/5LD/5CRA certification major JIULI GROUP JIULI GROUP JIULI GROUP
classification society certifications and the TUV (PED/AD - W2000) EU Pressure Equipment Directive certification etc.Through the development journey Jiuli Group has successively won the National May 1st Labor Award been ranked
among the top 500 private enterprises in China the top 500 manufacturing enterprises in China named a national 2024 Huzhou City "Golden Elephant 2024 Huzhou City Major 2024 Huzhou City "Most Caring
supply chain innovation and application demonstration enterprise and established a postdoctoral research workstation & Golden Bull" Enterprise Taxpayer Donor Enterprise
and other honors. At the same time as the core business unit of Jiuli Group the company has also been honored as a
high-tech enterprise a single-item champion enterprise in manufacturing a national technology innovation demon-
stration enterprise a national intellectual property demonstration enterprise a green factory a Zhejiang Provincial JIULI GROUP JIULI GROUP JIULI GROUP
People's Government Quality Award winner a key enterprise research institute in Zhejiang Province and a key academi-
cian workstation in Zhejiang Province among other national and provincial honors.Relying on more than 30 years of precision manufacturing experience and innovative R&D capabilities the company has 2024 Huzhou Top 50 Private 2024 Huzhou Top 50 Private 2024 Huzhou Top 50 Private
become a qualified supplier for large enterprises such as Sinopec PetroChina and CNOOC thanks to its product quality Enterprises by Revenue Enterprises by Tax Contribution Enterprises by R&D
customer service and innovation capabilities. It is also actively expanding its international market with products sold
to more than 70 countries and regions worldwide and has established long-term cooperative relationships with Fortune
500 companies such as Saudi Aramco Shell BP and TotalEnergies. JIULI GROUP JIULI GROUP JIULI GROUP
Based in China and with a global perspective the company will continue to adhere to the enterprise spirit of "working
hard winning by quality being trustworthy" and the business philosophy of "serving customers contributing to the
society and developing the company" and implement the development concept of innovation coordination greenness 2024 Huzhou Top 50 Private Excellent Award for Science and Zhejiang Provincial Management
openness and sharing with "intelligent and green manufacturing" as the means to promote transformation and upgrad- Enterprises by Employment Technology Progress by Benchmarking Enterprise by Zhejiang
ing and to provide high-performance materials for global industries. China Association for Promoting
Private Sci-Tech Enterprises Provincial Department of Economy and Information Technology
JIULI GROUP JIULI JIULI
CORPORATE CULTURE
2024 Metallurgical Science "Green Supply Chain Management 2024 Nanxun
Enterprise" List by Ministry
and Technology Award of Industry and Information District Enterprise with
Technology Respect for Talent
JIULI JIULI JIULI
2024 Nanxun District Top 10 2024 Wuxing District Science 2024 Wuxing District
Foreign Trade Import and and Technology "Talent-Strong Enterprise"
MISSION SPIRIT PHILOSOPHY Export Enterprises Leadership Award Top 10
JIULI JIULI JIULI
Provide high-performance Working hard winning by Serving customers contrib-
materials for the global quality being trustworthy uting to the society and
industries developing Jiuli
07 08S u s t a i n a b i l i t y
SUSTAINABILITY MANAGEMENT SUSTAINABILITY STRATEGY
Jiuli deeply integrates its sustainability strategy into core strategy such as investment decisions and risk management systemically
advancing in the three major areas of environment society and governance. Before making major decisions the company thoroughly
Jiuli is committed to integrating sustainable development into all aspects and processes of its business operations. By assesses the potential environmental impact of new projects or business expansions including carbon emission levels and resource
continuously reducing risks improving operational efficiency and enhancing its own sustainability capabilities the use efficiency. In risk management it comprehensively considers environmental risks like energy price fluctuations social risks like
company actively contributes to the harmonious development of society and the environment. human rights issues and governance risks like corruption and conflicts of interest to ensure compliant operations and protect the
corporate reputation.SUSTAINABILITY GOVERNANCE ENVIRONMENT
Adhering to the business philosophy of " Serving customers contributing to the society and developing Jiuli" Jiuli inte-
grates the concepts of sustainable development and Environmental Social and Governance (ESG) into all areas and
processes of its business operation. Currently the company is progressively building and improving its ESG manage- The company sets phased targets for carbon emissions reduction and increases the proportion of renewable energy
ment framework incorporating it into strategy planning and daily operations. The Board of Directors is responsible for use including investing in clean technology projects such as solar and energy storage. At the same time the compa-
initiating and setting medium- to long-term ESG strategic goals ensuring high alignment with the company's overall ny implements measures to improve energy efficiency optimizes operational processes to reduce resource
strategy. Meanwhile the company has an ESG working group composed of representatives from relevant departments consumption and actively promotes water resource and waste management to minimize environmental impact.responsible for internal ESG matters performance data collection and management and other daily management tasks.Furthermore the Board's office is responsible for coordinating the ESG practices of various business departments
ensuring that all tasks are carried out as planned.IN 2024 SOCIAL
During the annual meeting the Board of Directors has listened to the report on ESG The company continuously improves employee welfare ensuring a safe diverse and fair working environment. It
strategy implementation. has implemented employee skill training and career development plans actively fostering a diverse and inclusive
atmosphere. At the same time the company continues to strengthen supply chain management to ensure suppliers
One ESG-related training session was held for members of the Board of Directors. meet ESG standards.GOVERNANCE
The company is committed to enhancing transparency and accountability establishing a clear governance structure
and ensuring compliant operations. Through regular reports and information disclosure it maintains transparent
What’s ESG and its Disclosure analysis on Preliminary proposals for Action plans communication with stakeholders.development trends Jiuli ESG discussion points
and report outline
ESG TRAINING CONTENT FOR BOARD MEMBERS
DOUBLE MATERIALITY ASSESSMENT ON CRITICAL BUSINESS MATTERS
In order to identify and manage issues with significant impacts on the economy environment society and finance while meeting
regulatory requirements Jiuli conducts double materiality assessment on critical business matters. This effectively enhances strategic
decision-making capabilities increases stakeholder trust and promotes the company's sustainable development.In 2024 the company conducted a double materiality analysis of its identified sustainability-related issues using questionnaire surveys
and quantitative assessments based on the requirements of the Shenzhen Stock Exchange's Self-Regulatory Guidelines for Listed
Companies No. 17 - Sustainability Reporting (Trial) and international standards like the GRI Standards 2021.
09 10S u s t a i n a b i l i t y
* UNDERSTANDING COMPANY ACTIVITIES AND BUSINESS CONTEXT
STAKEHOLDER GROUP KEY MATTERS COMMUNICATION CHANNELS
Develop deep understanding of the Guidelines published by Shenzhen Stock Exchange while also referencing other
domestic and international sustainability standards and policies. Further analyze the company's business operations * Corporate Governance
products services value chain and industry conditions to understand its sustainability context. *Information Disclosure
* Business Ethics
Government & *Visits Surveys Meetings* Risk Management
Regulators *Research & Implementation of Policies* Environmental Compliance
*Daily Communication & Reporting
* ESTABLISH SUBJECT MATTERS * Climate Change
Update last year’s subject matter lists and conduct impact opportunity & risk assessment based on the consideration *Shareholder Meetings
of the company's current situation stakeholder demands policy/regulatory requirements and industry trends analysis. *Corporate Governance *Site Visits
Shareholders & *Risk Management
Investors *Press Releases & Announcements*Business Ethics
*Business Result Announcement
*Climate Change
*Roadshows
* ASSESSMENT AND FINALIZATION
*Customer Service *Customer Hotlines
From the perspectives of "Impact Materiality" and "Financial Materiality" conduct quantitative assessment and ranking Customers *Product Quality & Safety *Customer Satisfaction Surveys
of sustainability issues based on stakeholder survey results. *R&D and Innovation *Official Media Platforms
IMPACT MATERIALITY ASSESSMENT:Invite internal and external experts and stakeholders to assess the impact of
each issue on the economy society and environment from multiple dimensions including scale of impact scope of *Grievance and Whistleblowing Service
impact probability of occurrence and irremediability. *Occupational Health & Safety *General and Functional Training
FINANCIAL MATERIALITY ASSESSMENT:Invite the Board of Directors Board of Supervisors senior management Employees *Employee Rights & Benefits *Phone Calls & Emails
finance-related personnel and internal/external experts to assess the financial materiality of each issue from multiple *Employee Hiring & Development *Employee Satisfaction Surveys
time horizons1 focusing on the likelihood of impact and the degree of financial impact. *Work Meetings
1 THE COMPANY DEFINES TIME HORIZONS AS SHORT-TERM (UP TO 1 YEAR) MEDIUM-TERM (1 TO 5 YEARS) AND LONG-TERM (OVER 5 YEARS).*Supply Chain Management
*Supplier Qualification Audits
Suppliers *Product Quality & Safety *Supplier Meetings
*Industry Cooperation & Development
* REVIEW AND REPORTING
*Environmental Compliance
Company's Board of Directors and internal/external experts will conduct a final review and confirmation. This forms the *Climate Change *Implementing Energy Saving Policies
basis for the double materiality issue matrix and serves as a crucial foundation for the company's ESG management *Energy Management
actions. *Forums & Meetings
Environment *Waste Management *Environmental Data Collection
*Water Resource Management & Disclosure
*Biodiversity Protection *Green Public Welfare Activities
*Green Operations
STAKEHOLDER COMMUNICATION
Industry Partners *Industry Cooperation & Development *Forums & Meetings
Jiuli highly values the needs and expectations of various stakeholders including government bodies shareholders customers employ- Universities *R&D and Innovation *R&D Cooperation
ees suppliers the environment industry partners universities and communities. By creating economic social and environmental R&D Institutions P*roduct Quality & Safety *Industry-university-research collaboration
value we contribute to sustainable development. The company maintains transparent channels to actively respond to stakeholder
expectations and demands continuously improving communication mechanisms and enhancing information exchange efficiency.*Public Charity
*Site Visits
Community & NGOs *Environmental Compliance *Community Service & Activities
*Climate Change
11 12S u s t a i n a b i l i t y
SUBJECT MATTERLIST AND IMPACTS RISKS AND OPPORTUNITIES ANALYSIS ASSESSMENT RESULTS
To meet regulatory requirements and stakeholder demands Jiuli strictly following the Shenzhen Stock Exchange Guidelines and taking Through quantitative assessment and ranking of sustainability-related issues the results of Jiuli 2024 double materiality assessment
in consideration its business operations products services value chain and industry conditions has updated its list of sustainabili- are shown in the matrix below. 5 issues were identified as having both financial and impact materiality 1 issue with only financial mate-
ty-related issues from previous years. In 2024 the company identified 19 sustainability-related issues including 7 environmental riality and 9 issues with only impact materiality.issues 9 social issues and 3 governance issues. The company also conducted a preliminary identification and analysis of the impacts
risks and opportunities for each issue shown in the table below.POS NEGDIME ISSUE NAME SCOPE OF IMPACT TIME ITI ATIVERISK OPP CORRESPONDING SZSE CORRESPONDING
high
NSION HORIZON ORUVE IMPACT NITY GUIDELINE ISSUE2 REPORT CHAPTER
Environmental
Compliance Own Operations
Short-
Medium-Long Environmental Compliance
Own Operations
Climate Change MediumValue Chain -Long Climate Change
& Community
Product Quality & Safety
Energy Management Own Operations & Medium Upstream Value Chain -Long Energy Use Occupational Health & Safety
Water Resource Own Operations & Medium
Management Community -Long Water Resource Use
Low-Carbon and
Own Operations Short- Pollutant Emissions Environmental
Industry Cooperation
Waste Management Value Chain & Medium-Long Waste Treatment Protection
Community Circular Economy Employee Rights & Interests
Environmental Compliance
Own Operations Ecosystem and Waste Management
Climate Change
Biodiversity
Protection Value Chain Long Biodiversity Protection Employee Hiring & Development
Customer Service
& Community R&D Innovation
Public Charity Business Ethics Supply Chain ManagementWater Management
Green Climate Change Corporate Governance
Operations Own Operations
Short-
Medium-Long Energy Use Water Use Circular Economy Energy Managemen
Occupational Short-
Health & Safety Own Operations Medium-Long Employee Risk Management
Employee Short- Safe Operations
Rights & Interests Own Operations Medium-Long Employee Empowering Employees
Employee Employment Medium
& Development Own Operations -Long Employee
Own Operations & Short- Product & Service Safety/ Biodiversity Protection
Customer Service Downstream Medium-Long Quality Data Security
Value Chain & Customer Privacy Uphold Quality Green Operations
Medium Lead with Innova-R&D Innovation Own Operations -Long Innovation tion
Product Quality Own Operations & Short- Product & Service
& Safety Downstream Value Chain Medium-Long Safety/Quality
Supply Chain Own Operations & Medium Supply Chain Security
Management Upstream Value Chain -Long Due Diligence
Industry Cooperation Own Operations & Shared Responsi-
& Dev. Downstream Value Chain Long Social Contribution bility Pooling Forces low
IPublic Charity Community Long Social Contribution high FINANCIAL MATERIALITY
Medium Stakeholder Communication Sustainability Management，Corporate Governance Own Operations Sound Governance-Long Building Solid Foundation for DevelopmentOwn Operations & Medium Sound Governance Building Risk Management Solid Foundation for Development，Downstream Value Chain -Long Due Diligence Assume social responsibility for positive impactOwn Operations & Short Anti-bribery & Sound Governance
Business Ethics Downstream Value Chain -Medium Anti-corruption Building Solid For its 2024 ESG report Jiuli strictly follows the Shenzhen Stock Exchange Guidelines. For the financially material sustainability issues
Anti-unfair Competition Foundation for Development such as Product Quality & Safety Occupational Health & Safety Climate Change R&D Innovation Supply Chain Management and
Corporate Governance the company has deeply investigated stakeholder demands and expectations comprehensively identified the
2 The company actively responds to government calls and fulfills its social responsibilities with Jiuli Group as a unified entity. For more "Governance - Strategy - Impact Risk & Opportunity Management - Indicators & Goals" and presents them in a four-pillar format.information on rural revitalization and social contributions please visit the official website of Jiuli Group (www.jiuligroup.com). The
company is not engaged in research or development in sensitive areas of scientific and technological ethics such as life sciences or
artificial intelligence and therefore does not disclose related information. As of the end of 2024 the company's accounts payable
(including notes payable) do not exceed 30 billion yuan and do not exceed 50% of total assets therefore information regarding equal
treatment of small and medium-sized enterprises is not disclosed.
1314
IMPACT MATERIALITY
Environment Social GovernanceSound Governance Building
Solid Foundation for Development
Jiuli strictly adheres to laws regulations and supervisory requirements. Taking the stability and
sustainability of its operations as fundamental the company integrates Party building with corpo-
rate governance leading high-quality corporate development through high-quality Party building.Meanwhile the company continuously refines its governance structure strengthens internal risk
management and upholds business ethics to ensure stable and standardized operations.S u s t a i n a b i l i t y
STRENGTHENING CORPORATE GOVERNANCE STRATEGY
Jiuli complies with laws and regulations such as the Company Law of the People's Republic of China the Securities Law of the People's The domestic and international economic environments are undergoing complex and frequent changes the industrial stainless steel tube
Republic of China and the Governance Standards for Listed Companies as well as normative documents like the Shenzhen Stock Exchange industry is facing a profound structural transformation. Robust corporate governance is particularly crucial under this environment. It is
Self-Regulatory Guidance for Listed Companies No. 1 - Standardized Operation of Main Board Listed Companies. It has formulated the not only the solid cornerstone of sustainable development but also provides assurance on enterprises＇ effective respond to market
Articles of Association established a standardized corporate governance structure and rules of procedure and formed a system with changes and sound decision making. We are well aware of this and therefore we will make scientific and efficient construction of the
scientifically effective division of duties and supervision and power balancing mechanism thereby continuously ensuring the company's Board of Directors a strategic goal dedicating ourselves to perfecting the Board's core role in long-term development strategy building and
stable governance. risk prevention.The company place high importance on standardize the selection and performance management of its Board of Directors. We establishing
GOVERNANCE and continue to refine the incentive and restraint mechanisms to ensure that board members can lead the company towards its estab-lished goals with a high sense of responsibility and professional competence. At the same time we deeply integrate risk management and
The company has established a governance structure comprising the Shareholders' Meeting the Board of Directors the Board of Supervi- compliance internal control requirements into our business processes building a comprehensive whole-system risk prevention and con-
sors and the management team. The Shareholders' Meeting is the decision-making body the Board of Directors is the executive body and trol mechanism to ensure that every operational management decision is traceable thereby enhancing the quality and effectiveness of
the Board of Supervisors exercises supervisory power. The Shareholders' Meeting is the highest authority in the company composed of all decision-making.shareholders and is responsible for deliberating on major issues such as the company's annual financial budget and final accounting plans In terms of information disclosure we adhere to the principles of truthfulness and accuracy continuously expanding disclosure formats
major investments and major guarantees. The Board of Directors is the company's decision-making body accountable to the Shareholders' increasing transparency and strengthening investor relations management to build and maintain investor confidence. The company strict-
Meeting responsible for executing its resolutions and reporting on its work. The Board of Directors has established a Strategy Committee a ly adheres to the business ethics practicing self-discipline and self-reflection and is committed to fostering a clean and upright business
Nomination Committee a Remuneration and Appraisal Committee and an Audit Committee which operate in accordance with their respec- ecosystem.tive detailed implementation rules to provide professional advice and recommendations for the Board's decisions. During the reporting period we upheld the principle of comprehensive risk management closely followed changes in the external envi-
ronment and our own operational realities systematically assessed risk factors and development opportunities in the field of corporate
governance and formulated targeted response measures. Through the standardized "Three Meeting" structures (Shareholders' Meeting
Board of Directors and Board of Supervisors) We have strengthened risk identification and control and Improved compliance and inter-
nal control mechanisms. This ensures that the business management is lawful compliant its assets are safe and complete and its
disclosed information is truthful and accurate providing solid support for the realization of the corporate governance strategic goals.SHAREHOLDERS' MEETING
Impact Type Impact Description Countermeasures
BOARD OF SUPERVISORS
If the governance structure operational process- Establish an independent diverse and profes-
es anti-fraud supervision and risk management sional governance structure. Strengthen function-
are not well established and not standardized it al supervision and link remuneration to perfor-
SECRETARY TO THE BOARD BOARD OF DIRECTORS may lower the quality of corporate decision-mak- mance. Establish a corporate risk identification
ing increase reputational loss risk and operation- assessment and warning mechanism. Strictly
RISK al management costs and further lead to missed object commercial bribery corruption unfair
market opportunities and damage to long-term competition and other acts that undermine
shareholder value. business ethics. Enhance information disclosure
OFFICE OF THE BOARD STRATEGY NOMINATION REMUNERATION and transparency.OF DIRECTORS & APPRAISAL AUDIT COMMITTEES
Establish a communication platform for
Integrating the concept of sustainable development stakeholders to collect suggestions and opinions
into the company's strategy to drive long-term on corporate governance and enhance the
value creation. Engaging stakeholders in corporate long-term sustainable value. At the same time
GENERAL MANAGER AUDIT DEPARTMENT governance improving the internal governance promote diversity in gender background and
structure and ensuring diverse backgrounds skills in board nominations. Establish an inclusive
OPPORTUNITY professional performance and independent decision-making mechanism to adapt quickly to
decision-making. market changes and conduct regular organiza-
tional efficiency assessments through perfor-
mance appraisals.
17 18S u s t a i n a b i l i t y
IMPACT RISK AND OPPORTUNITY MANAGEMENT
2024
Standardizing the Governance with the "Three Meetings"
Board of Supervisors Meeting Held:5 times Members of the Board of Supervisors: 3
BOARD OF DIRECTORS Employee representatives on the Board of Supervisors: 1
To ensure that the nomination and selection of members of the Board of Directors and senior management are open transparent compli-
ant and efficient the Nomination Committee under the Board of Directors studies and decides on the qualifications selection procedures
and tenure of directors and senior management based on the company's actual situation. In the selection process talent needs are clarified SHAREHOLDERS' MEETING
through research and candidates are widely sought through multiple channels. Subsequently the qualifications of the candidates are
comprehensively reviewed and their consent for the position is obtained. Finally a special meeting is held for qualification review and after The company strictly follows the provisions and requirements of the Articles of Association and Rules of Procedure for the Shareholders'
a resolution is formed it is filed and submitted to the Board of Directors for approval. Meeting to standardize the convening holding and voting procedures of the Shareholders' Meeting treating all shareholders equally. The
To ensure the Board of Directors has comprehensive and thorough views in decision making the company values the board's independency Shareholders' Meeting exercises its rights and obligations granted by the Company Law of the People's Republic of China and the Articles of
and diversity. During the reporting period the company had a total of 11 directors including 4 independent directors accounting for 36.36% Association by law ensuring that all shareholders especially small and medium-sized shareholders are treated equally and can fully
who participated deeply and provided fair and objective decisions. To ensure the diversity of the board's composition and expression of exercise their rights. Proposals for discussion matters at the Shareholders' Meeting comply with procedural requirements and the meetings
views the company measures the diversity of its board from aspects such as gender age cultural and educational background professional discuss on the items listed in the meeting notice in sequence.experience and skills. During the reporting period the board had 2 female directors. Board members possess relevant industry expertise in
fields such as materials metallurgy steel pipe manufacturing and environmental management while also having rich management experi-
ence in areas like corporate governance risk management and quality management. 2024
2024 Shareholders' Meetings Held: 2Times
BOARD OF DIRECTORS MEETINGS HELD:7TIMES BOARD MEMBER ATTENDANCE RATE:100%
To improve the remuneration and performance evaluation system for directors supervisors and senior management the company has
established and implements the Remuneration Management System. The Nomination Remuneration and Appraisal Committee under the RISK MANAGEMENT
Board of Directors is responsible for the performance appraisal of the company's directors and senior management. During the reporting
period the remuneration of the company's directors supervisors and senior management was determined according to the company's
unified remuneration management system and the allowance standards for directors and supervisors were approved by a resolution of the RISK IDENTIFICATION AND ASSESSMENT
Shareholders' Meeting.To promote the company's sustained healthy and stable development and to ensure the business achieve operation objectives the compa-
2024 ny has established a dynamic and systematic risk assessment mechanism based on its established development strategy with the consider-
ation of different development stages and business expansion realities. By comprehensively and continuously collecting relevant internal
1 and external information potential risks are identified in a timely manner scientific risk analysis is conducted. Based on the assessment Remuneration Committee Meetings Held: time results the company dynamically optimize its countermeasures. This ensures that the risk management is integrated with the development
of the company.RISK MANAGEMENT SYSTEM
BOARD OF SUPERVISORS
The company has established a risk team led by the manager of the Audit Department. The risk assessment is conducted by people from
Holding responsibility towards all shareholders the Board of Supervisors diligently performs its functions granted by laws regulations and the company's Finance Department Legal Affairs Department and relevant project personnel which is performed at ad hoc basis. Following
the company. It supervises major corporate matters related-party transactions financial status and the performance of directors and senior the risk assessment based on the project characteristics project owner will be assigned who will be responsible for the risk assessment of
management effectively safeguarding the legal rights and interests of the company and all its shareholders. the project and providing fair and objective assessment opinions and suggestions.During the reporting period the company has continuously refined its risk management system. Relying on the company's Risk Management
procedure it has continued to optimize the "Three Lines of Defense" risk control framework. This further clarifies the roles and responsibili-
ties of the governance management and decision-making levels in risk identification assessment and response promoting the institution-
alization and normalization of risk management to safeguard the company's stable development.
19 20S u s t a i n a b i l i t y
THE "THREE LINES OF DEFENSE" FOR RISK CONTROL INTERNAL CONTROL EVALUATION
In accordance with policy regulations and supervisory requirements such as the Basic Norms for Enterprise Internal Control and the
Shenzhen Stock Exchange Guidelines for Standardized Operation of Listed Companies (Revised in 2020) and in conjunction with the compa-
ny's management practices the company has constructed a self-evaluation system for the effectiveness of internal control that covers all
FIRST LINE SECOND LINE THIRD LINE levels and departments. Utilizing this system we have comprehensively evaluated the design and operational status of internal controls as
OF DEFENSE OF DEFENSE OF DEFENSE of the end of this reporting period. For issues and potential risks discovered during the process we have identified corrective measures and
the responsible departments and deadlines to ensure that problems are addressed and closed in a timely manner.TAX MANAGEMENT
All business departments Key performance management The Board's Audit Committee
departments and the Audit Department The company strictly complies with national tax laws and regulations. We have further revised the company's Tax Management Policy
standardized tax management responsibilities and standards strengthened the company's various tax management tasks ensured lawful
operation and honest tax payment and prevented and reduced tax management risks. In 2024 the company was not involved in any tax-re-
lated litigation or penalty events.INTERNAL CONTROL AND COMPLIANCE 【HONORS】
The company continuously improves its internal control and compliance management system. The overall internal control system is From 2015 to 2024 Jiuli Group was consecutively honored as a "Golden Elephant" Enterprise and a Major Taxpayer
complete and can adapt to the current management needs. It plays a good management and control role in key areas such as business in Huzhou City.management related-party transactions external guarantees major investments use of raised funds and information disclosure. At the
same time the company has established a sound internal control and supervision mechanism covering all business processes. Relying on
tax management and internal control audit functions it strengthens compliance review and supervision laying a solid foundation for
compliance management.INTERNAL CONTROL AUDIT
ANTI-FRAUD MANAGEMENT
The company has continuously improved its internal control management system by establishing a three-level internal control audit
management structure consisting of the Board of Directors the Audit Committee and the Audit Department. In terms of routine audits it Honesty is the foundation of self-establishment and integrity is the foundation of business success. Jiuli strictly complies with laws and
regularly conducts self-assessments of various business lines reports audit progress quarterly and submits a comprehensive internal audit regulations such as the Anti-Monopoly Law of the People's Republic of China the Supervision Law of the People's Republic of China and the
report at least once a year. In terms of special audits in 2024 the Audit Department focused on key areas and conducted audits on Customs Anti-Unfair Competition Law of the People's Republic of China. We continuously improve the business ethics system constantly refines the
AEO certification management material management factory entry and exit safety management logistics and transportation management anti-fraud and whistleblowing mechanisms strengthen employee integrity education and promote the concept of fair competition. We
and project establishment and construction management and proposed specific management recommendations. strive to create an honest law-abiding fair and transparent business environment ensuring high-quality development of the enterprise.INTERNAL CONTROL AUDIT MANAGEMENT STRUCTURE
ENSURING INTEGRITY ACROSS THE BUSINESS
BOARD OF DIRECTORS
sits under the Board of Directors supervises the The company has built an anti-fraud management system composed of Board of Directors Management Audit Department and all employ-
REPORT company's internal audit system and its imple- ees where all entities work in synergy to form a tight prevention and control network. The Board of Directors promotes anti-fraud culture
mentation is responsible for communication within the company and demand the continuous improvement of the internal control mechanism. The management is responsible for
AUDIT COMMITTEE between internal and external audits reviews the establishing the anti-fraud system setting up convenient and effective whistleblowing channels and strengthening the ability to identify
company's internal control system etc. fraudulent behavior and improve handling process. The Audit Department oversees anti-fraud work as part of their ongoing responsibility.It is responsible for coordinating the investigation of anti-fraud incidents and coordinating involved parties to implement control measures
SUBMIT ANNUAL sits under Audit committee staffed with 5 audit to ensure that problems can be discovered and handled in a timely manner. All employees are expected to adhere to professional ethics.AUDIT PLAN experts. Responsible for supervising and inspect- Any suspicious matters should be reported through the compliant channels to jointly create a clean and upright atmosphere within the
ing the effectiveness of the design and operation
AUDIT DEPARTMENT company.of the company's internal controls.
21 22S u s t a i n a b i l i t y
We are committed to continuously improves its business integrity management system by formulating and implementing the Anti-Fraud and
Whistleblowing Policy to comprehensively regulate employee’s professional conduct and prevent violations that harm the company's
interests and seek personal gain through fraudulent means. In 2024 the company continued to implement internal policies such as the
"Regulations on Employee Integrity and Professional Practice" and the "Several Provisions on Civilized and Thrifty Celebration of Happy
Events." All employees and related parties are required to sign the "Employee Integrity and Self-Discipline Commitment Letter" and the INVESTOR RELATIONS
"Family Assistance in Integrity Commitment Letter for Employees in Important/Key Positions" to strengthen the sense of integrity responsi-
bility in a contractual form. In the annual performance review of employees in key positions and mid-to-high-level management a special We understand the importance of effective communication with investors for the company's development. To this end the company has
section on integrity and professional practice has been added and it serves as an important reference for performance appraisal appoint- established a comprehensive Investor Relations Management Policy to strengthen communication with investors improve the transparency
ment promotion rewards and discipline. At the same time the company has further optimized the employee integrity record management of information disclosure to effectively protect the legal rights and interests of investors especially public investors. The company actively
system and continued to promote the implementation of the "integrity interview" continuously strengthening the management and presents major matters development strategies operating performance and corporate culture to investors through various methods such
improved guidance of employee’s business integrity. as regular and ad-hoc reports annual report performance briefings shareholder meetings the company website one-on-one communica-
In addition the company places great importance on building integrity awareness and trainings. Through various forms such as organizing tion telephone consultations on-site visits and research analyst meetings and roadshows. In terms of information disclosure we adhere
the viewing of integrity education films holding forums and carrying out themed activities. This helps the employees to embed the concept to the principles of truthfulness accuracy completeness and timeliness conducting comprehensive and detailed disclosure of information
of integrity into the daily work and life to continuously enhancing the integrity awareness of all staff so that the culture of integrity is deeply that can be made public. The company ensures that all disclosed information has undergone rigorous review not only reflecting the compa-
rooted in people's hearts and becomes the intrinsic spiritual driving force for the enterprise's development. ny's current situation but also indicating its future development direction thereby helping investors to better understand the company and
make informed investment decisions.CONDUCTING BUSINESS INTEGRITY EDUCATION
INVESTOR COMMUNICATION CHANNELS:
In February 2024 to further strengthen Party and governance integrity
education the company specially invited Mr. Xu Weiming President of the Consultation Hotline:0572-2539041 Consultation Email: jlgf@jiuli.com
Huzhou Economic Crime Investigation and Prevention Association to give
a special lecture. President Xu citing classic cases deeply explained the
serious consequences of corporate duty-related crimes and the key points
for preventing legal risks. He also proposed practical prevention and A company’s sustainable development is inseparable from the deep concern for and practical protection of investor interests. While pursu-
control suggestions providing important guidance for the company to ing long-term development we have always considered the interests of investors as paramount importance making it the fulcrum of our
promote the construction of a clean culture. corporate strategy and the direction of our value system. In 2024 on the one hand the company has conducted share buyback showing to
the market our confidence in the company future. On the other hand the company formulated an active dividend distribution plan deciding
to distribute a cash dividend of 0.97 yuan (tax included) per share to all shareholders ensuring that investors can benefit from the company's
growth. By building a comprehensive investor return system the company has achieved an organic combination of capital operations and
cash returns.FAIR COMPETITION
The company adheres to the Anti-Unfair Competition Law of the People's Republic of China conducting business activities based on the 2024
principles of voluntariness equality fairness and good faith. It actively maintains a positive market environment of fair competition and
firmly opposes any form of unfair competition and monopolistic behavior.TOTAL CASH DIVIDEND TO ALL SHAREHOLDERS (EXCLUDING BUYBACKS)：920168522.71RMB
WHISTLEBLOWING PROCEDURE
We hold ourselves to the principle of "no miss to investigate any allegations" and continuously improves the whistleblowing mechanism. TOTAL AMOUNT OF SHARE BUYBACKS AS A FORM OF DIVIDEND：383031025.28RMB
Whistleblowers can report in person or anonymously through written correspondence letters faxes face-to-face meetings phone calls or
emails. Upon receipt the company will conduct an investigation in accordance with the law and coordinate with relevant departments to
ensure fair and efficient handling with feedback provided within 15 working days. The company strictly treat the whistleblowing information
as confidential effectively protecting the legal rights and interests of whistleblowers and creating a safe and transparent supervisory
environment.Whistleblowing Hotline：0572-2539110 Email：jbzx@jiuli.com
WHISTLEBLOWING Fax：0572-2539110 Postal Code：313028
CHANNELS Whistleblowing Address：Business Integrity Management Committee
1899 Zhongxing Street Wuxing District Huzhou City
23 24S u s t a i n a b i l i t y
INDICATORS AND GOALS
EDUCATIONAL CAMPAIGN IN RESPONSE TO THE CALL FROM THE JIULI GROUP PARTY COMMITTEE
The company continuously strengthens its self-regulatory management and enhances the scientific nature of its governance. It has set
management goals and achieved certain progress in dimensions such as board construction risk internal control mechanisms anti-corrup-
tion and integrity investor communication and information disclosure steadily enhancing the effectiveness of its corporate governance. In February 2024 the company actively responded to the call of the Jiuli Group Party Committee taking "Forge Our Soul To
Enhance Party Consciousness Uphold Fundamental Principles and Drive Development through Innovation"as the theme
and organized the "First Party Lecture" to systematically study and implement Xi Jinping Thought on Socialism with Chinese
Characteristics for a New Era.MANAGEMENT GOAL 2024 PROGRESS
Directors supervisors and senior management must undergo performance appraisals
Scientific and Efficient Board by the Nomination Remuneration and Appraisal Committee. Their allowance
of Directors Construction standards are approved by the Shareholders' Meeting and their remuneration is
uniformly determined by the company's remuneration management policy.Construction of Risk Assessment Established Risk Management Department . Members include the audit finance and
and Control Mechanism legal departments as well as relevant project personnel to coordinate the risk assess-
ment and control for the entire project lifecycle.Improvement of Compliance and The overall internal control system is complete and can meet to the current manage-
Internal Control System ment needs
Strengthening of Anti-corruption The company has not had any incidents of unfair competition or any public litigation
and Integrity Building or penalties resulting from corruptions. 第一堂党课主题教育活动
Held 1 performance briefing session received over 200 institutional research visits
Strengthening Investor Communication received 38 investor questions and answered 38 questions with a response rate of
and Information Disclosure 100%.SOLID FOUNDATION
The company proactively implements the Jiuli Group Party Committee's responsibility transmission mechanism for Party building. By formu-
lating the "Responsibility Letter for Party Branch Work Assessment" it includes Party building work as part of the business performance
review. The company establishes Party member responsibility zones in key areas and ensures the team stability in key positions. At the same
PARTY BUILDING LEADS DEVELOPMENT time the company's Party branches created "Pioneer Party Member Posts" and the "Pairing and Assistance" program to fully leverage the
exemplary role of Party members in technical breakthroughs and management optimization promoting the transformation of organizational
Jiuli Special Material deeply implements the philosophy of "Red does not rust Steel is toughened by repeated tempers" as our main line of advantages into development effectiveness.work anchoring the goal of "Staying committed and enhancing Party consciousness forging ahead for development". we vigorously promote
the "Strengthens the Red Foundation" action holistically advance five major special actions: Ideological Strength Solid Foundation Innova-
tion Leadership Humanistic Well-being Integrity Culture continuously improving the new model of two-way empowerment between Party
building and business management.IDEOLOGICAL STRENGTH
The company has always closely followed the general requirement of the Jiuli Group Party Committee to "Forge Our Soul To Enhance Party
Consciousness Uphold Fundamental Principles and Drive Development through Innovation." We continuously promote knowledge building
of the Party members and enhance their Party consciousness. By organizing centralized study sessions on Xi Jinping Thought on Socialism
with Chinese Characteristics for a New Era and through various forms such as thematic Party Day activities and special Party lectures we
encourage Party members to learn think and practice using learning to promote action further solidifying the ideological foundation and
enhancing their sense of purpose and service.
25 26Low-Carbon and Environmental Protection
Building a New Chapter of Sustainability
Guided by the "Dual Carbon" strategy and centered on full life-cycle green and low-carbon management Jiuli
is deeply engaged in green manufacturing and energy transformation. The company reduces carbon emis-
sions and energy consumption by improving its environmental management system and optimizing energy
use thereby increasing our resilience facing climate change challenges and opportunities. At the same time
the company properly handles pollutants and waste in accordance comply with regulatory requirements
continuously striving to mitigate its negative environmental impact and steadily advancing on the path of
green development.S u s t a i n a b i l i t y
In the light of intensifying global climate change we pay close attention to the actual and potential impacts of climate change on the
ENHANCING CLIMATE RESILIENCE production operations and value chain. Based on the type of risk and its evolution over time and in accordance with the actual conditions
of its operating locations we have identified several climate-related risks that may affect the production and operations and has formulated
corresponding mitigation measures. At the same time we actively seize the opportunities brought by climate change and are gradually
In light of the global climate change we have developed deep understanding of the importance of climate change for strategic planning and building development model that is adaptive to the climate change.business operations. The company actively responds to "Dual Carbon" policy that is strategically deployed national wide by continuously
improve its climate risk management system and constructing a scientifically sound plan and implementation strategy for green and
low-carbon development. At the same time we comprehensively examine the opportunities and challenges brought by climate change full CLIMATE RISK IDENTIFICATION AND RESPONSE
steam ahead to drive the transition to green and low-carbon operation and actively responding to the various challenges brought by climate
change with the aim of achieving sustainable development in the new green economic landscape. Risk Type Time Frame Potential Risk Description Mitigation Measures
GOVERNANCE Rising temperatures and sea levels may Strengthening plant construction
standards formulating emergency
The company has established a low-carbon working group directly led by the General Manager which coordinates various workstreams such Chronic Risk Mid- to weaken foundation stability damaging
Long-term the infrastructure of the East China plans reducing risk exposure of produc-as energy conservation and emission reduction energy optimization safety and environmental protection and technology research and tion facilities and enhance disaster
development. At the same time the company collaborates with external research institutions and industry experts to jointly formulate the coastal plant resilience
enterprise's green and low-carbon development plan ensuring that it is forward-looking and feasible.The production base in East China may Establishing weather forecasting and
early warning systems enabling
JIULI LOW-CARBON WORKING GROUP face severe climate change and extreme proactive preparation with reference to
weather events such as typhoons and meteorological data.Acute Risk Short- to heavy rainfall which could lead to Key equipment to be waterproof and
Mid-term factory shutdowns equipment damage moisture-proof; regularly dredge and
and supply chain disruptions
GENERAL MANAGER install new rainwater drainage pipelinesDiversify supply chain layout.EXTERNAL Set clear emission reduction targets and LOW-CARBON WORKING GROUP With the tightening of carbon emission plansRESEARCH INSTITUTE policies the EU’s Carbon Border Adjust- Establish a carbon tariff working group
Mid- to to address the challenges of carbon
Policy & Legal Risk ment Mechanism (CBAM) is expected to
Long-term have potential impact for production tariffs on exported products.Continuously carry out product carbon
capacity and exports. footprint assessments to promote
carbon footprint management across
SAFETY & PUBLIC the value chain.MANAGEMENT ENVIRONMENTAL DEPARTMENT. FACILITIES DEPARTMENT R&D CENTER EXTERNAL EXPERTS
Traditional high-carbon production Focusing on the development of
methods may be restricted while rapid transitional technologies and increase
Short- to technological advancements in the investment in green process R&D such Technology Risk
Mid-term as ultra-low CO2 emission steelmaking industry are expected to intensify technologies and hydrogen-based
pressure on R&D investments. steelmaking to proactively position for
STRATEGY potential opportunities.The company incorporates science based carbon reduction into its core strategy comprehensively reviewing the list of carbon reduction Market preference for green and Develop green and low-carbon steel
technologies for the steel industry. The company has developed a low-carbon and energy-saving development plan centered on the core low-carbon products may lead to a products achieve a reduction in carbon
ideas of improving energy efficiency optimizing energy structure building a carbon management system and tracking product carbon decline in the competitiveness of emission intensity in long-process
footprints. We strive to become the industry benchmark for green development by 2025. By 2030 we aim to achieve the "carbon peak" reduce
Mid- to traditional products potentially production and enhance product
carbon emission intensity by 2.23% and carbon footprint by 4.07% compared to 2023 and“ Net Zero” by carbon offsetting and purchasing Market Risk
Long-term resulting in the loss of some market competitiveness.green electricity purchasing. share Establish long-term supply contracts
Raw material prices volatility may with partners and improve internal
Improve energy efficiency for energy conservation. directly affect production costs inventory management to reduce risks.Low-Carbon and Clean production to reduce pollutant emissions.Regulatory requirements are becoming Pay close attention to disclosure
increasingly stringent and various
Energy-Saving requirements related to sustainable
Development Plan Strengthen comprehensive resource utilization to continuously promote circular development.stakeholders are paying more attention development and climate change.Reputation Risk Mid- to to corporate sustainability. If a compa- Ensure compliance and regularly
Long-term
Reduce greenhouse gas emissions and actively promote a low-carbon transition. ny's acts slowly in green transition disclosing information and expanding
process it will face potential risks such external communication channels on
as damage to its brand image
Enhancing technological level to drive green innovation. sustainable matters.
2930
PHYSICAL RISK TRANSITION RISKS u s t a i n a b i l i t y
CLIMATE OPPORTUNITY IDENTIFICATION AND RESPONSET JULI’S SIX MAJOR LOW-CARBON ACTIONS
Opportunity Type Time Frame Potential Opportunity Description Countermeasures
EQUIPMENT OPERATION
The "dual carbon" policies favor green 1 OPTIMIZATION
factories and low-carbon technological Keep updated with domestic and
Policy-Driven Long-term transformation projects. Breaking
international carbon management REGULAR EQUIPMENT
Opportunity through international green trade policies and regulations comply with 2 MAINTENANCE EY US Y
barriers can increase market share in relevant regulatory requirements and NE
RG CIEN
C
FI
the EU strengthen internal management 3 DIGITAL TRANSFORMATION EF OF ENERGY AND CARBON
MANAGEMENT
Accelerate the R&D of low-carbon
product lines such as hydrogen or 6
The value chain favors green low-car- nuclear power tubes and actively obtain MAJOR LOW-
bon supply partners. Clear market product carbon footprint certification CARBON ACTIONS
Market Opportunity Mid-term preference for low-carbon products and/or low-carbon certification
means incremental market opportuni- Promote the joint construction of a full
ties life-cycle low-carbon management
ARB
system in the supply chain prioritizing ST ON M GREEN ELECTRICITY
the procurement of low-carbon raw EM AC NO AGEMENT 4 PURCHASE
materials NSTRUCTION 5 CLEAN ALTERNATIVE6 FOR MOBILE SOURCES CARBON MANAGEMENT
Phase out high-energy-consumption SYSTEM CONSTRUCTION
Promote a circular economy and reduce production technology and equipment
costs through measures like scrap steel explore traditional energy substitution
Energy Optimization and promote intelligent production line
Opportunity Mid-term
utilization and metal recycling and
increase production efficiency through construction
process improvements and digital Develop a circular economy increase
energy management recycled steel content and resource At the same time we have established a carbon tariff reporting task force to proactively address the challenges brought by global climate
regeneration and reduce raw material
energy consumption change especially international carbon barriers such as the EU's Carbon Border Adjustment Mechanism (CBAM). The carbon tariff reporting
task force is composed of cross-departmental members responsible for compliant reporting for the EU's CBAM production carbon emission
verification and data reporting product carbon footprint calculation and report preparation. Additionally the company has introduced
organizational carbon and product carbon management software systems to improve the accuracy and efficiency of carbon emission
The domestic substitution of new Strengthen R&D in low-carbon accounting and to achieve online verification of carbon data ensuring compliance for international market access.Technological materials has become a growth engine metallurgy and clean energy utilization
Innovation Opportunity Mid-term and digital production promotes technologies focusing on nuclear
automation and production efficiency power and new energy tubes to
enhance competitiveness in high-end
markets.INDICATORS AND GOALS
SHORT-TERM THE COMPANY DEFINES TIME HORIZONS AS SHORT-TERM (1 TO 3 YEARS) MEDIUM-TERM (3 TO 5 YEARS) AND LONG-TERM (OVER 5 YEARS).To integrate climate change into our development strategy and governance system we tracks national policy trends and combines them with
the business and operational conditions to develop a carbon neutrality roadmap. In 2024 we have made certain progress in emission reduc-
IMPACT RISK AND OPPORTUNITY MANAGEMENT tion. In addition the company has established a regular annual carbon verification plan to improve carbon data management providing a
foundational support for achieving long-term carbon reduction goals.We grasp the opportunity of the low-carbon transition by systematically formulating six major "low-carbon actions" focusing on three main
directions: energy efficiency improvement energy structure transformation and strengthening carbon management all driven by digitaliza-
tion and clean technology to promote full life-cycle emission reduction. In terms of energy efficiency we optimize equipment operating
parameters strengthen regular maintenance and achieve precise energy consumption control through an intelligent carbon management
system. In terms of energy structure transformation we are increasing the proportion of renewable energy sources such as solar and wind
power and implementing clean transformations for transportation vehicles and factory machinery. At the same time the company is
building a comprehensive carbon management system that covers carbon emission accounting emission reduction target setting and
dynamic monitoring forming a closed-loop carbon management mechanism from production to operation systematically promoting the
company's green transformation.
3132
IMPR
EF OF VIC INIE GN C EY
W-CA
RBON ENE
URE
RGY
LO RUC
T
ST
C
SYS u s t a i n a b i l i t y
MANAGEMENT GOAL 2024 PROGRESS OPTIMIZING ENERGY USE
We continuously optimizes our energy management system by improving the energy management regulatory framework and strengthening
he company has reduced its cumulative carbon emissions to 82842 tons through intelligent monitoring and management. Relying on energy structure transformation and innovative technological applications we further
micro management of energy consumption optimization of production processes progress in energy transition and improve energy efficiency. Build on above the company sets scientifically sound energy-saving and
Create a carbon neutrality roadmap and improvement of equipment efficiency. It has achieved an 11% reduction in consumption-reduction targets promotes industrial upgrading and green transformation and injects lasting momentum into sustainable
to build a "dual carbon" flag factory greenhouse gas emission intensity through energy conservation emission reduc- development.and lead the industry to transform tion and green transformation. ENERGY MANAGEMENT SYSTEM
into a green and low-carbon The company has obtained a series of carbon labels. Based on total carbon
operation. emissions assessment the company currently holds a "low-carbon" level label. It The company strictly follows national and industry-related standards has formulated the
has also obtained a level 3 efficiency label which is considered a medium level.。 Energy Saving and Emission Reduction Management Policy and Energy Management Policyetc. and has built a clean and efficient energy system. Through promoting renewable energy
substitution improving energy efficiency and digital management all together we have
significantly reduced the carbon footprint while reducing production costs continuously
driving the green development and environmental friendliness in our operation. During the
reporting period we conducted an energy audit and obtained ISO 50001 Energy Manage-
ment System certification.Actively promote Carbon Footprint As of the end of 2024 the company has conducted greenhouse gas emission
Verification and regularly compile accounting for nine consecutive years. Additionally the company has established a DEEPENING THE ENERGY TRANSITION
professional greenhouse gas sound carbon data management system to provide data support for formulating
emission reports scientific emission reduction strategies. We actively promote the substitution of clean energy use. Through measures such as
building rooftop photovoltaic power stations deploying green hydrogen production and
energy storage projects and bulk buying of green electricity and certificates it systematically
advances clean energy substitution. By the end of 2024 the company has cumulatively used
approximately 90 million kWh of green electricity and holds 1111 green certificates. The
proportion of energy from photovoltaics and liquefied natural gas has increased to 15% and
60% respectively. Compared to 2023 the natural gas consumption per ton of steel produced
has decreased by 5.0% and electricity consumption per ton of steel produced has decreased ISO 50001 ENERGY
GREENHOUSE GAS EMISSIONS IN THE LAST THREE YEARS by 2.13%. At the same time through technological innovation the company has built MANAGEMENT SYSTEM CERTIFICATION
multiple all-hydrogen protective atmosphere heat treatment production lines and vacuum
INDICATOR UNIT 2024 2023 2022 heat treatment production lines in its core seamless steel pipe park significantly increasing
the use of clean energy.Direct (Scope 1) GHG Emissions TCO2E 22676 20248 18138
Indirect (Scope 2) GHG Emissions TCO E 78227 73392 64917 JIULI DEPLOYS PHOTOVOLTAIC POWER STATIONS AND ENERGY STORAGE PROJECTS2
TCO E 100903 93640 83055 Jiuli has built a solar-storage integrated project with a total installed capacity of 19.8 MWh of photovoltaic power stations and a Total GHG Emissions (Scope 1 and 2) 2 4MW/8MWh energy storage system. It absorbs and stores excess electricity generated by photovoltaics during the day or electricity
from the grid during low-load periods at night achieving the goal of peak shaving and valley filling. This reduces greenhouse gas
emissions decreases reliance on the municipal grid and increases the proportion of clean energy. As of December 2024 the total
GHG Emission Intensity (Scope 1 and 2)
TCO E/10000 RMB 0.092 0.109 0.127 installed capacity of the solar-storage integrated project reached 26 MW with an annual power generation of approximately 26
(per unit of operating revenue) 2 million kWh. This has reduced electricity costs by 23% with photovoltaic power accounting for 15.6% of energy consumption and
reducing carbon dioxide emissions by approximately 16310 tons per year.GHG Emission Reductions TCO2E 991.86 996.57 10294
Carbon Emissions per Unit of Industrial TONS / 10000 RMB 0.41 0.46 0.42
Value Added
IN 2022 2023 AND 2024 CHINA'S ELECTRICITY EMISSION FACTORS DECREASED SEQUENTIALLY AT 0.7035 0.5703 AND 0.5366 TCO2E/MWH
HE COMPANY'S TOTAL GREENHOUSE GAS EMISSIONS HAVE INCREASED WITH THE GROWTH IN PRODUCTION CAPACITY AND OUTPUT BUT THE GREENHOUSE
ENERGY STORAGE SYSTEM INTERFACE
GAS EMISSION INTENSITY SHOWS A DOWNWARD TREND DUE TO IMPROVED ENERGY EFFICIENCY AND THE PRODUCTION. ROOFTOP SOLAR PANELS
33 34S u s t a i n a b i l i t y
We actively conduct energy-saving technological transformations updating and renovating
energy-consuming equipment and establishing a phase-out mechanism for high-ener-
gy-consumption equipment. We have carried out comprehensive transformations on As of the end of 2024 the company has obtained a series of honors in green development:
transformers motors lighting systems and special equipment. As of the end of 2024 we
have phased out 5 transformers and 119 motors completed lighting retrofits for about Since 2018 it has been awarded the title of "Green Factory" by the Ministry of Industry and Information Technology.
1000 lamps and replaced equipment such as forklifts (from oil to electric). This results in
an annual electricity saving of approximately 2.84 million kWh equivalent to 809 tons of The solar-storage integrated project was selected as a "2023 Carbon Efficiency Forerunner Case" by the China Association
standard coal. of Industrial Energy Conservation and Clean Production.In 2023 it was awarded the title of "Green Product Design Demonstration Enterprise" by the Ministry of Industry
Phased Out Phased Out Lighting Retrofits and Information Technology.
5 transformers 119motors ~1000 lamps
ENERGY SAVING TARGETS
Annual Electricity Saving Equivalent To We have built clear energy-saving and emission reduction roadmaps and targets that covers the entire life cycle of design R&D production
packaging and sales with the emphasis on promoting strategic measures such as green product design and process R&D green and
~2.84 HUZHOU CARBON ACCOUNT PLATFORM million kWh 809 tons environmentally friendly project construction introduction of advanced energy-saving equipment. We actively promoting energy-saving - JIULI ENTERPRISE CARBON ACCOUNT
INFORMATION technological transformations. Guided by the goal of creating a "zero-carbon factory" we aim to achieve the following targets by the end of
2027:
ENERGY SAVING TARGETS
TECHNICAL UPGRADE TO HEAT PIPE STEAM GENERATORS Reduce energy consumption per unit of product (industrial value-added) by 13% from the current 0.15 tons of
standard coal per 10000 RMB to 0.13 tons of standard coal per 10000 RMB.In October 2024 due to the shutdown of the Reduce raw material consumption per unit of product by 7% from the current 1.2 tons per ton of output to 1.1 \
Nantaihu Thermal Power Plant we have tons per ton of output.purchased high-efficiency natural gas heat
pipe machines to replace the traditional Increase the proportion of renewable energy use by 10% from the current 6% to 16%.coal-fired boilers for steam supply achiev-
ing independent steam production. All
emissions meet environmental protection ENERGY CONSUMPTION IN THE LAST THREE YEARS
requirements. As of the end of 2024 this
technical modification project had Item Unit 2024 2023 2022
produced 19500 tons of steam. HEAT PIPE STEAM GENERATOR INTERFACE
Electricity 10000 kWh 14881 12972 11400
Energy Consumption Natural Gas 10000 m3 1048 931 827
The company has deployed an intelligent energy
management system based on the industrial Steam GJ
internet. By constructing a three-level metering 114467 99414 84773
network it achieves fine-grained monitoring of
major energy-consuming equipment. This intelli- Industrial Value Added 10000 RMB 244678.3 204938 197558
gent energy system has functions such as
real-time data collection dynamic energy Omprehensive Energy tons of standard coal
consumption analysis and energy efficiency Consumption (Equivalent Value) 60252.57 52742.52 46379.86
diagnosis. It has enabled precise identification of
energy-saving potential through big data analysis Energy Consumption per Unit tons of standard coal 0.25 0.26 0.23
optimization of operational and production plans of Industrial Value Added
based on data analysis and improvement of ENERGY MONITORING PLATFORM
energy management efficiency providing a
scientific basis for formulating energy-saving
plans and strategies.
35 36S u s t a i n a b i l i t y
ENVIRONMENTAL COMPLIANCE MANAGEMENT
JIULI CONDUCTS ENVIRONMENTAL EMERGENCY RESCUE DRILL IN RESIDENTIAL AREA
The company strictly complies with the Environmental Protection Law of the People's Republic of China the Environmental Impact Assess-
ment Law of the People's Republic of China the Law of the People's Republic of China on the Prevention and Control of Atmospheric In March 2024 Jiuli Special Materials held an environmental emergency rescue and evacuation drill. This drill simulated a
Pollution the Law of the People's Republic of China on the Prevention and Control of Water Pollution the Law of the People's Republic of composite environmental event of a water pipe rupture caused by a fire leading to smoke diffusion. The entire drill was
China on the Prevention and Control of Soil Pollution the Law of the People's Republic of China on the Prevention and Control of Environ- conducted with live-action. On-site safety personnel quickly activated the emergency plan and organized personnel evacua-
mental Pollution by Solid Wastes and other relevant environmental laws regulations and local environmental compliance management tion; firefighters simultaneously carried out fire extinguishing and water leak control; other personnel urgently closed the
systems. We fully adherent to the concepts of green development and ecological civilization constructing an environmental compliance sewage system to prevent pollutants from escaping; the maintenance team rapidly repaired the damaged pipeline; the
system to prevent and resolve environmental protection risks. rescue team set up clear zone on the smoke diffusion area removed contaminated materials and equipment to prevent the
The company has improved its environmental safety management system formulating the Compilation of Enterprise Management policy spread of pollution. After the drill the surrounding air quality pH value of surface water and water quality of rainwater wells
(Safety and Environmental Protection Volume) which includes the Environmental Protection Management policy and the Safety Hazard were comprehensively tested to ensure environmental safety. This drill effectively tested the ability of multiple departments
Investigation and Governance policy. At the same time based on ISO 14001:2015 Environmental Management Systems - Requirements with to coordinate in handling sudden environmental incidents and strengthened employees' awareness of environmental safety
Guidance for Use we have compiled the Environmental Occupational Health and Safety Management Manual comprehensively standardiz- and compliance.ing environmental management activities from the perspectives of management responsibilities policies and objectives and risk control.We have established an environmental management responsibility system involving the whole company building an environmental compli-
ance management structure where General Manager takes full responsibility actions are cascaded and implemented through each level
with full employee participation. As the primary person in charge the General Manager coordinates environmental strategies and resource
allocation. The deputy general manager in charge is responsible for daily execution. The chief engineer provides technical support. Each
business unit/plants manages the implementation within their remit. The safety and environmental department provide supervision. Team
leaders are responsible for implementing measures on the front line. Each employee is expected to fulfill their responsibilities. This system
ensures environmental compliance from decision-making to operation ultimately achieving the coordinated development of environmental
protection and production operations.We continue to improve the environmental emergency management systems. Based on the implementation of the environmental emergen-
cy plan we conduct a retrospective evaluation of the environmental risks and emergency plan at least once every three years and revises it
in a timely manner according to changing circumstances. In February 2025 the Wuxing branch made revisions to the Emergency Plan for
Environmental Incidents (V4.0) to ensure that in the event of an environmental emergency all emergency work can be initiated quickly and
executed efficiently and orderly avoiding and minimizing the damage and harm caused by the incident to the environment.In 2024 the
company did not receive any major administrative penalties from environmental authorities or face criminal prosecution for environmental ENVIRONMENTAL EMERGENCY RESCUE AND EVACUATION DRILL
incidents.ENVIRONMENTAL EMERGENCY RESPONSE MANAGEMENT PLAN PROMOTING CLEAN PRODUCTION
When a pollution accident or other environmental emergency occurs each factory/depart- Jiuli is committed to the efficient recycling and utilization of water resources in its production processes to reduce water consumption while
ment should immediately take emergency measures to prevent the accident from escalat-
As the Incident Occurs also eliminating water waste at the source. The company has established a full-process pollution prevention and control mechanism imple-ing contain the spread of pollution and reduce or eliminate the impact of the accident. menting fine-grained control over wastewater waste gas solid waste and other pollutants generated during production. It continuously
improves its waste management system to ensure that pollutant emissions meet standards and that waste is disposed of safely and in
compliance with regulations.Within 2 Hours of an Incident Each factory/department shall fill out the "Environmental
Accident Report Form" and report it to the company's Safety and Environmental Department WATER RESOURCE MANAGEMENT
Within 2 Hours of an Incident and the Head of Business Division. Each factory/department shall actively assist in the
investigation and handling. In the event of a major personal injury accident or a major We place high importance on the sustainable use and management of water resources. In accordance with laws and regulations such as the
environmental pollution accident it must be reported to the General Manager and simulta- Water Law of the People's Republic of China and the Law of the People's Republic of China on the Prevention and Control of Water Pollution
neously reported to the local environmental management department. we have established a sound water resource management system. In 2024 a water-saving target was set to reduce the unit product water
intake from the current 7.4 tons/ton of output to 6.6 tons/ton of output by 2027 a reduction rate of 10%.The Safety and Environmental Department will organize a review meeting with relevant We continuously improve production water efficiency. We have invited industry experts and partner universities such as Zhejiang University
personnel to analyze the environmental accident identify the cause and propose preven- and Zhejiang University of Technology to develop plans for water circulation and wastewater utilization. It has successfully improved the
tive measures and make decisions to the responsible units and individuals. Fill out the cooling circulating water process in the industry park increasing water resource utilization efficiency and alleviating local water pressure. In
After an Incident Ends "Environmental Accident Investigation and Handling Report Form" and submit it for approval 2024 the company's total water intake was 861601 tons a decrease of 11828 tons from 2023. In 2024 the company's water use intensity was
by the Deputy General Manager of Jiuli The investigation report for major personal injury 8.4 tons per ton of output showing a year-on-year decrease in water resource use intensity from 2022 to 2024.accidents or major environmental pollution accidents shall be submitted for approval by the
General Manager of Jiuli.
37 38S u s t a i n a b i l i t y
KPI item Unit 2024 2023 2022 WASTEWATER REDUCTION ACHIEVEMENTS
Total Water Consumption TONS 1151126 1102500 1023800 Wastewater DischargeConcentration Indicator Before Upgrade After Upgrade Reduction Rate
Water Use Intensity PH VALUE 7-9 6-9 ≤15%TONS / TON OF OUTPUT 8.4 8.6 8.8
Total Water Intake COD（MG/L） ≤600 ≤500 ≤16.67%TONS 861601 873429 713543SS（MG/L） ≤125 ≤100 ≤20%
POLLUTION AND WASTE MANAGEMENT
PETROLEUM (MG/L) ≤40 ≤35 ≤12.5%
We strictly comply with the provisions on pollutant emissions in laws regulations and policy documents such as the Environmental Protec-
tion Law of the People's Republic of China the Law of the People's Republic of China on the Prevention and Control of Water Pollution and
the Law of the People's Republic of China on the Prevention and Control of Atmospheric Pollution. We resolutely fulfills the provisions TOTAL NITROGEN (MG/L) ≤50 ≤45 ≤10%
concerning waste disposal in policy regulations like the Law of the People's Republic of China on the Prevention and Control of Environmen-
tal Pollution by Solid Wastes and the Administrative Measures for the Transfer of Hazardous Wastes. Based on our business nature we have
established a series of waste management policies including the Solid (Hazardous) Waste Management Policy Major Hazard Source
Management Policy Hazardous Chemicals Management Policy Precursor Chemicals Management Policy and Explosive Precursor Chemicals
Management Policy to strictly manage each production stage and reduce environmental impact. During the reporting period all pollutant EXHAUST GAS MANAGEMENT
indicators of the company met emission standards and there were no major penalties or criminal liabilities for pollutant emissions.We strictly adhere to national standards such as the Integrated Emission Standard of Air Pollutants and implement in depth treatment to
WASTEWATER MANAGEMENT industrial exhaust gases. For the exhaust gas generated from the pickling process it is collected through sealed pipelines and sent to the
exhaust gas treatment system. Using SCR technology it efficiently purifies nitrogen oxides fluorides and other exhaust gases. The purified
We strictly implement national and industry standards such as the "Integrated Wastewater Discharge Standard." We emphasize the construc- gas is then returned to the gas-to-gas heat exchanger for waste heat recovery and finally discharged through the chimney in compliance
tion of the wastewater treatment system and strictly implements wastewater reduction measures. In terms of management there are 4 with standards. We ask third party to test the fugitive emissions at the plant boundary annually to ensure timely discovery and resolution
technicians take shifts to 24 hours monitor the quality of external drainage ensuring compliance of discharge requirement. In terms of of potential environmental problems safeguarding the air quality around the plant and avoiding negative impacts on the health and quality
treatment technology during the pre-treatment stage wastewater undergoes physical and chemical treatment to reduce heavy metals and of life of employees and local residents.COD. In the biochemical treatment stage a combined process is used such as oxidative decomposition of organic matter physicochemical
removal of heavy metals biological decomposition of organic matter and denitrification and decarbonization with a COD removal rate of EXHAUST GAS EMISSION LIMIT SETTINGS
over 90%. In terms of pollution control facility construction the company has invested 6.98 million RMB to build a degreasing wastewater
treatment plant with a daily capacity of 650 tons which complies with the Level III standard of the Integrated Wastewater Discharge Standard No. Item Limit Unit
(GB8978-1996). Total nitrogen is strictly controlled according to the Class C standard of the Water Quality Standard for Wastewater Discharged
into Urban Sewers (GB/T 31962-2015). At the same time the company has added remote water quality monitoring equipment and a self-con- 1 Pickling Exhaust Gas Volume 5000 m3/h
trol system to enhance the automated operation and management of the degreasing wastewater station ensuring that the upgraded
degreasing wastewater can be treated independently and achieve stable compliant discharge.
2 Exhaust Gas Temperature 40 oC
3 Inlet NOx 5000 mg/m3
4 Inlet HF 300 mg/m3
5 Outlet NOx (Emission Concentration) 150 mg/m3
6 Outlet Fluoride (Emission Concentration) 6 mg/m3
ACTUAL VIEW OF THE WASTEWATER REDUCTION FACILITY
7 Outlet NOx (Emission Rate) 1.3 kg/h
39 40S u s t a i n a b i l i t y
WASTE MANAGEMENT
We have created the "Solid (Hazardous) Waste Management Policy" to regulate the solid and hazardous waste management processes for
ourselves and our subsidiaries reducing waste generation at the source. At the same time through ledger-based management and a
full-process traceability system we ensure that information on waste type quantity flow storage utilization and disposal is traceable
achieving 100% code-based traceability targets.We follow the relevant management requirements of the Standard for Pollution Control on the Storage and Landfill of General Industrial
Solid Wastes and strictly manage the general solid waste. We actively adopts relevant pollution prevention measures collecting and storing
general solid waste by category and requires that industrial solid waste not be dumped or piled up arbitrarily and prohibits mixing industrial
solid waste with domestic garbage.We comprehensively implement standardized hazardous waste management requirement. In terms of storage management storage zones
are set up and isolated based on the category quantity and form of hazardous waste. Hazardous waste is labeled and equipped with
emergency facilities such as diversion channels and collection pools. In terms of transfer and disposal management in accordance with the
National Hazardous Waste Directory (2021 Edition) electronic manifests will be filled out for the transfer of hazardous waste and qualified
third parties are contracted for compliant disposal. At the same time through regular filing it ensures the completeness of commissioning
procedures and records.ECOSYSTEM PROTECTION
We care about biodiversity protection adhering to relevant laws and regulations such as the Law of the People's Republic of China on the
Prevention and Control of Soil Pollution the Wildlife Protection Law of the People's Republic of China the Regulations of the People's
Republic of China on Nature Reserves the Biosafety Law of the People's Republic of China and policy documents such as the Opinions of
the General Office of the State Council on Further Strengthening Biodiversity Protection. We are committed to reducing the negative impact
of our business activities on the natural environment.In the early stage of the project sensitive areas are avoided through ecological surveys and environmental impact assessments. During the
construction and operation phase full-process ecological monitoring and early warning are implemented. During the reporting period all
of the company's production bases and operating sites were not located in nature reserves or other areas rich in biodiversity and no signifi-
cant negative impacts of the company's operating activities product production or transportation on biodiversity were found. At the same
time the company extends its environmental protection requirements to its supply chain partners continuously improving its biodiversity
protection system and is committed to achieving the coordinated development of business operations and ecological protection.
41 42Upholding Quality
Innovating Leads the Future
Jiuli firmly believes that technological innovation is the core driving force for enterprise development. It
shoulders the responsibility of "providing high-performance materials for global industry" actively
explores cutting-edge technology fields strictly adheres to the bottom line of product quality and safety
and promotes product upgrades with quality as the foundation. By pursuing excellence in quality we aim
to enhance our core competitiveness and drive the Company toward high-quality development.S u s t a i n a b i l i t y
CONTINUOUS R&D AND INNOVATION EXPERT
CONSULTANTS
Jiuli leads industrial upgrading through technological breakthroughs strengthen innovation foundation with talent cultivation playing Decision-making
a critical role in "Pillars of a Great Power" and actively strives for the driving seat in global competition. project initiation RESEARCH ENTITIES
gate keeping. Research center/subdivisions
and project teams as
GOVERNANCE research entities with clear
objectivesdefined r
Technological innovation is the cornerstone of Jiuli existence and also a microcosm of Zhejiang's role as a major contributor to the esponsibilities
nation's revenue. The company continuously optimizes the organizational structure and functional positioning of its research centre PLATFORM and division of labor and
strengthens the construction of its R&D system and continues to increase its R&D investment. We have launched and implements cooperation.internal management systems such as the Management Measures for Scientific Research and Innovation Projects and the Interim Research Center as
Measures for New Product R&D Sales Management and Rewards. It standardizes the management of technological innovation the innovation platform
projects clarifies implementation standards and acceptance processes and established detailed rules for innovative achievements
reward encouraging all employees to actively participate in technological (and managerial) innovation activities thus providing a -Coordination and decision making EXTERNAL
strong guarantee for the company's continuous innovation and development. In 2024 with the research center as the innovation -Innovation through collaboration COOPERATION
platform we work with expert consultants research entities external cooperation and other forces to comprehensively form a sound -All- member participation
cooperative and efficient innovation system. -Review and evaluation Cooperation with universi-ties and research institu-
tions to form "Industry-Ac-
ademia-Research-Applica-
DIRECTOR tion" module
SENIOR PROJECT SENIOR DEPUTY DIRECTOR LAB MANAGE Jiuli Scientific Research and Innovation SystemMANAGER CHIEF ENGINEER
INTELLIGENT DIVISION OF DIVISION OF DIVISION OF
EQUIPMENT WELDING MATERIAL BUSINESS
DEPARTMENT TECHNOLOGY RESEARCH DEVELOPMENT DEPUTY DEPUTY
RESEARCH LAB LABMANAGER MANAGER
(BALI SITE) (ZHENXI SITE)
DIVISION OF
PROCESS LAB MANAGE
RESEARCH
PROCESSING CHEMISTRY CORROSION MECHANICS
TEAM TEAM TEAM TEAM
MECHANICS METALLOGRAPHIC GENERAL METALLOGRAPHIC
TEAM TEAM AFFAIRSOFFICE TEAM
Jiuli Research Center Organizational Chart
Obtain High-tech Enterprise Certificate
45 46S u s t a i n a b i l i t y
STRATEGY IMPACT RISK AND OPPORTUNITY MANAGEMENT
Jiuli focuses on the research and manufacturing of high-end industrial stainless steel and special alloy materials. We committed to
produce long special superior and high-end product to serve national strategic needs. We continue to invest in advanced materials R&D PLATFORMS AND TALENT
R&D and have broke monopolies to achieve domestic production. This allows us to leap from follower to leader position in the indus-
try contributing Jiuli's strength to the high-end development of Chinese manufacturing. Jiuli has established an Academician and Expert working grop a Postdoctoral Research working group and a CNAS-certified laboratory.We have precisely identified the risks and opportunities in the field of technological innovation and formulated a series of targeted It has also co-established joint R&D centers with institutions like the University of Leeds in the UK and the Central Iron and Steel
response measures. These strategies have pointed out the development direction for the company optimized resource allocation Research Institute in Beijing. As of the end of2024 the company's laboratory has integrated platforms for material calculation micro-
improved the scientific nature of decision-making and enhanced the company's market competitiveness. On this basis the company structural characterization and chemical analysis high-temperature long-term service performance evaluation and material corrosion
also actively promotes a culture of innovation injecting inexhaustible momentum into the enterprise's continuous innovation and evaluation. It has also established research and development base for advanced welding technology research and pipe forming
long-term development. process development possessing full-process capabilities for development manufacturing inspection and testing in the field of
industrial stainless steel pipes.Impact Type Description CountermeasuresJIULI NDUSTRY-UNIVERSITY-RESEARCH COLLABORATION” PLATFORM
Keep an open mind in innovation contin-
uously advancing in-depth cooperation Collaborate with the University of Leeds (UK) establishing the "Jiuli Corrosion and Integrity Centre" as an overseas R&D
with universities and research institu- institution.To deliver the high-end products strategy tions. Jointly established the Special Stainless Steel and Alloy Material Technology Innovation Center with units like the Central
we must rely on high-level R&D and Introduce high-end talent build a Iron and Steel Research Institute promoting innovation and leapfrog development with partners.investment to drive innovation create high-capability innovation team estab- Led the establishment of the Yangtze River Delta Ultra-High Purity Stainless Steel Material Innovation Consortium to
leading R&D results to meet customer lish an "Innovation Contribution Award" help realize the domestic production of high-purity and ultra-high-purity stainless steel tubes for high-precision
needs. to stimulate innovative vitality and semiconductor equipment.promote the company's technological Established industry-university-research collaboration with 44 design institutes universities and research institutes
development and sustainable develop- including Tsinghua University Peking University of Science and Technology Shanghai Jiao Tong University Zhejiang
ment. University China Institute of Atomic Energy and Shanghai Nuclear Engineering Research & Design Institute.RISK
If trademarks or patents are not
registered in a timely manner our own Place a high importance on intellectual
We adheres to the principle
that "talent is the primary
rights and interests may not be fully property management actively protect-
protected. ing proprietary IP from infringement
resource" actively introducing
dozens of high-level domestic
During the R&D process failure to respecting the intellectual property of
conduct a thorough search of existing others and jointly maintaining a good
and overseas talents. We
assembled an R&D team led by
technologies may lead to redundant R&D industry competition order. an CAS Academician focusing
or the inability to protect R&D results. on key areas such as material
calculation and characteriza-
tion service performance
evaluation and welding
technology R&D to conduct
Continuously developing forward-looking in-depth research on
products actively serving major national Actively participate in national "14th cutting-edge technologies. At
projects responding to the development Five-Year Plan" projects national key the same time the company
needs for green and low-carbon R&D programs and Zhejiang Province's works closely with universities
products and always being guided by "Jianbing Lingyan" key R&D program to implement the "Excellent
customer needs and closely following projects continuously maintaining a high
OPPORTUNITY Engineer Training Program" market development trends thereby level of industry standing and innovation training over 200 core technical
effectively enhancing market competi- vitality. talent on average each year
tiveness. laying a solid talent foundation
for the company's develop- Appointment Ceremony for Liu Zhengdong CAS Academician
ment.
47 48S u s t a i n a b i l i t y
We have established an "Innovation Contribution Award." Through various forms such as R&D achievement commercialization benefits
and equity incentives it fully mobilizes the innovative enthusiasm of the research team encouraging researchers to be patient not
defeated at the developing phase and to devote in research injecting powerful momentum into technological innovation and SUCCESSFUL DEVELOPMENT OF HIGH-PRECISION ULTRA-THIN-WALLED AVIATION TUBES
long-term development.Jiuli ultilized its advantageous R&D resources to establish a project to tackle high-precision high-strength stainless
steel tubes for aerospace applications. We broke through industry qualification barriers to become a core supplier of
2024 key aerospace components. In 2024 We successfully developed a series of high-precision ultra-thin-walled aviation
tube products contributing to our nation's aerospace industry.Internal professional skills training sessions: 23 External professional skill certifications obtained: 13
7 Engineers 4 Senior Engineers
PRODUCT TECHNOLOGY BREAKTHROUGHS
Jiuli has always made serving major national projects and
substituting imports its core direction for technological
innovation aiming to "replace the industrial arteries with
Chinese pipes." In recent years the company has under-
taken or participated in several national key R&D
programs and Zhejiang Province's "Jianbing Lingyan" key
R&D programs making progress in R&D work on key
subjects such as materials for service in extreme environ-
ments and high-quality pipe precision forming.In the field of advanced energy materials the company
successfully conquered the technology for U-shaped heat
transfer tubes for nuclear power steam generators break-
ing foreign monopolies and achieving domestic produc-
tion. The products are used in major national nuclear
power brand projects such as "Hualong One" helping our High-Precision Ultra-Thin-Walled Aviation Tube Products Series
country completely shake off its reliance on imports for
this product. In the field of oil and gas transportation the
company has independently developed high-end pipeline
products such as duplex stainless steel and nickel-based
corrosion-resistant alloys which are used in major oil and Certificate of Metallurgical
gas projects contributing to the nation's energy security Science and Technology Award
strategy. LOW-CARBON PRODUCT INNOVATION
Located in the nation's first green and smart manufacturing pilot demonstration city we firmly adherent to the concept that "lucid
We have achieved fruitful scientific research results in 2024 including leading the 2030 National Key Science and Technology Project waters and lush mountains are invaluable assets" and translates it into the practice that "green pipes are the green future." We contin-
for oil country tubular goods completed the domestic development and delivery of C22 for the first 50000-ton environmentally friend- uously optimize material formulas and performance to provide high-performance metal material solutions for fields such as hydrogen
ly epichlorohydrin demonstration unit of Sinopec Hunan and achieved significant results in research projects such as integrated KD energy storage and transportation photovoltaics solar thermal and thermal power helping downstream industries reduce emissions
component structural materials and evaporator heat transfer tubes. We also completed multiple batches of composition smelting for and increase efficiency and promoting the green and sustainable development of the entire value chain. In recent years the company
new welding materials like 9Ni as well as performance evaluations for deposited metal and welded joints. has participated in the national "14th Five-Year" plan project led by Sinopec. By developing the domestic production technology of
Hastelloy N06022 material for tubular epoxidation reactors we have solved the bottleneck in the domestic design and manufacturing
of core reactors for national green and low-carbon special projects providing certain technical reserves and application experience
for related industries.
2024
[Honors]
New R&D projects established: 30 International PTP testing projects with satisfactory results: 2
Awarded "Industrial Product Green Design Demonstration Enterprise" by the Ministry of Industry and Information Technology
of the People's Republic of China.Seamless steel tubes for ultra-low temperature liquid hydrogen containers passed the Zhejiang Provincial New Industrial
Product Certification and obtained the 2024 Zhejiang Province First Batch of New Materials Certification.
49 50S u s t a i n a b i l i t y
INTELLIGENT MANUFACTURING TRANSFORMATION INTELLECTUAL PROPERTY MANAGEMENT
To standardize and strengthen intellectual property (IP) management enhance innovation capabilities and core competitiveness Jiuli
Jiuli vigorously promotes digital construction and automation transformation. It has built the first "5G + Industrial Internet" platform strictly adheres to laws and regulations such as the Patent Law of the People's Republic of China and the Copyright Law of the People's
for stainless steel tubes in China achieving full-process quality traceability AI optimization of process parameters and AI detection of Republic of China. It has formulated internal management policies such as Intellectual Property Management Measures and Manage-
surface defects which has significantly improved production efficiency and product quality. ment Measures for Scientific Research and Innovation Projects following the principle of "unified management full participation
division of labor and cooperation and process driven." It continuously improves the three-tier IP management structure of
"decision-making management and execution" clarifying implementation details for IP assessment searching retrieval archiving
contract management transfer and protection.[Honors]
Awarded "Intelligent Manufacturing Demonstration Factory" by the Ministry of Industry and Information Technology DECISION- Responsible for the review and approval of major matters such as
of the People's Republic of China. MAKING IP WORK LEADING GROUP IP work strategic planning annual plans systems budget execution
LEVEL and reward and punishment schemes.POSITIVE OUTCOMES FROM AUTOMATION TRANSFORMATION Responsible for the comprehensive management and protection of MANAGEMENT TECHNOLOGY MANAGEMENT IP; the formulation and implementation of various IP management
LEVEL systems; the establishment and operation of the IP management
In 2024 the automation transformation of Jiuli workshops and processes delivered significant results achieving DEPARTMENT system.improvements in production efficiency and cost reduction showcase development fueled by new technology. The
company's processing workshop has been relocated and optimized which has resulted in labor intensity reduction and Responsible for cooperating with the Technology Management
production efficiency increase. Automated the polishing process lead to increase efficiency by 20%. By optimizing the EXECUTION Department on IP management-related work; assisting the Technol-IP INTERNAL AUDITORS/LI- ogy Management Department in complying with and implementing
cutting process parameters it reduced costs by 30%. The automatic hardness testing equipment increased work efficien- LEVEL AISONS relevant laws and regulations; system formulation and IP reporting
cy by 10% after the upgrade. tasks.The company has demonstrated excellence performance in intellectual property creation application protection and management.We have developed a high-value patent portfolio and recognized as a National Intellectual Property Demonstration Enterprise and a
Zhejiang Provincial Intellectual Property Demonstration Enterprise and is certified under the Intellectual Property Management
System (GB/T 29490). In 2024 the company completed the declaration for the "Case of High-Efficiency Heat Exchange New High-Tem-
perature Alloy Tube Materials Patent commercialization" filed information for patent-intensive products and submitted excellent case
of patent industrialization thereby obtaining data intellectual property rights from Zhejiang Province.Automated Grinding and Polishing of Pipe Fittings
Certificate: Zhejiang Provincial Intellectual Property Certificate: Intellectual Property Management
Demonstration Enterprise System Certification
51 52S u s t a i n a b i l i t y
The Chairman as the primary person responsible for the company's product quality and safety has "one-vote veto" right to quality and
INDICATORS AND GOALS safety establishes a comprehensive quality and safety management system and implements standardized management to ensure the
quality and safety of every process every link and every product throughout its entire life cycle. At the same time each department
To clarify the direction of scientific research and innovation and enhance market competitiveness Jiuli has established management of the company based on its own responsibilities and management documents implements detailed management for various
goals focusing on key areas of R&D innovation precisely allocating resources accelerating the output of innovative achievements and processes such as raw material procurement inspection process control process inspection finished product acceptance labelling
ensuring that intellectual property rights are not infringed. and shipping continuously improving the conformity suitability and effectiveness of the product management system.Legal Representative
Management Goal 2024 Progress
Continuously enhance R&D R&D investment amount: 360 million RMB General Manager
capabilities and build a Assembled an R&D team led by CAS academician.high-quality R&D talent team.Management Representative
Continuously improve the patent
application and layout of propri- Total of 128 effective patents
etary R&D achievements to 42 new patent applications achieving 185% of the annual target
achieve comprehensive protec- Executive Assistant Assistant Assistant
tion of intellectual property in key 60 new proprietary technology applications achieving 240% of the annual target. Deputy To The To The To The Financial Chief QualityGeneral General General Director Engineer Director
technology areas. Gm Manager Manager Manager
UPHOLDING PRODUCT QUALITY Business
Division
Jiuli regards quality as a vital part of the enterprise upholds the corporate spirit of "winning through quality" and strictly controls Finance
product quality. Leveraging its robust quality management system and reliable delivery capabilities the company has successfully Department
earned the trust of its customers significantly enhanced its own market competitiveness and promoted high-quality corporate devel-
Human Re Public Safety & Quality Corporateopment with outstanding quality. Archives Sources Facilities Environment Sales Depar Inspection Management
Department Department Department Ment Research Department Department
GOVERNANCE Center
Quality
Jiuli strictly complies with laws and regulations such as the Assurance
"Company Law of the People's Republic of China" and the Nuclear DepartmentSupply
"Contract Law of the People's Republic of China." It fully imple- Department Power
ments quality management systems like ISO 9001 AS9100D and Administrative Pmc Office Technical
adheres to relevant standard requirements such as TSG 07-2019 Office Department Department
"Licensing Rules for Special Equipment Manufacturing and Equipment
Filling Units." At the same time we continuously improve prod- Dept
uct quality and safety management systems drafting and Information Infrastructure
implementing quality management manuals like the "ISO 9001 Department Department
Quality Management System Quality Manual" and other quality
management manuals as well as over 40 procedural Production Production
documents like "Control Procedure for Monitoring and Technical Department Branches
Measurement of Processes and Products" "Control Procedure Commercial Steel Metrology
for Monitoring and Measurement Resources" and "Procurement Department Research Lab Office
Control Procedure" hundreds of SOP documents. This compre-
hensively guarantees the operation of the quality management
system and effectively ensures the outstanding quality and
safety of its products. ISO9001 QUALITY MANAGEMENT SYSTEM CERTIFICATE ADMINISTRATIVE MANAGEMENT LIAISON AND COORDINATION QUALITY CONTROL SUPERVISION
Quality Management System Organizational Structure and Relationships
53 54S u s t a i n a b i l i t y
STRATEGY ULTRASONIC PHYSICAL & CHEMICAL EDDY CURRENT HYDROSTATIC SURFACE INSPECTION X-RAY
The company deeply embeds the national strategies of "Manufacturing Power" and "Quality Power" and practices the corporate spirit
of " working hard winning by quality being trustworthy ." We strictly abide by laws and regulations follow industry standards incorpo-
rate quality and safety goals into the core indicators of our development plan and are committed to realizing the mission of " Provide
high-performance materials for the global industries.To enhance market competitiveness and protect the company's brand image we accurately identify potential risks and opportunities
in the production process establishes full life-cycle control measures and a series of preventive and improvement mechanisms and Jiuli Finished Product Inspection Procedure
continuously reduces quality and safety risks.IMPACT TYPE DESCRIPTION COUNTERMEASURES QUALITY INSPECTION AND CERTIFICATION
To ensure product quality meets standards and to continuously improve quality stability the company is equipped with comprehensive
With the continuous strengthening of Implement full life-cycle quality control inspection equipment with 4 inspection labs and over 100 inspection items. The inspection center is equipped with internationally
policy supervision if product quality and for products to cover each steps from raw advanced instruments such as an electrically cooled gamma-ray spectrometer and a high-temperature creep testing machine. At the
safety do not meet standards or if many material procurement to post-delivery same time the company collaborates with multiple domestic and international laboratories. It has co-established the "Zhejiang
serious problems occur the company use Moore-Jiuli Engineering Materials Joint Laboratory" with Xi'an Moore Petroleum Engineering Laboratory and established a metal mate-
may face regulatory penalties a decline Improve the product complaint handling rials testing cooperative laboratory with TüV Rheinland Group from Germany continuously strengthening its technical strength and
in customer trust and damage to its process strictly managing products with product quality. In 2024 the company's laboratory will complete the CNAS reassessment and certificate renewal.reputation. potential quality problems and prioritiz-
Risk If the company is unclear about market ing the resolution of customer needs.demand product competition etc. it may Regularly conduct quality training to
face strategic and operational risks enhance employees' quality awareness 2024 ACHIEVEMENTS
leading to a loss of customer trust and and professional skills.financial losses.Increase R&D investment. Drive business
development from both R&D and sales. Received NSF-61 certification for seam-
With reliable product quality and safety Establish multiple specialized laboratories less/welded pipe products.and outstanding performance that for timely product testing and continuous Completed Norsok M650 certification
exceeds industry standards the company Improvement of product quality. extension for welded pipes.can win a competitive advantage in
Opportunity Actively adopt quality testing and certifica-domestic and international markets tion testing and certification to ensure
which means more development oppor- products meet or even exceed industry
tunities. standards.NSF-61 Certificate for Seamless/Welded Pipes
IMPACT RISK AND OPPORTUNITY MANAGEMENT
PRODUCT FULL LIFE-CYCLE QUALITY CONTROL
PRODUCT DISPUTE RESOLUTION PROCESS
Jiuli proceeds from four dimensions: "duties in place documents in place work in place and records in place" promoting the imple-
mentation of the system in each management department and operation post with detailed roles and responsibilities. Each Business The company has established "Quality Management Policy" "Customer Communication and Satisfaction Measurement Control Proce-
division based on its business situation and product specifications document production operation procedures such as the Extrusion dure" and other quality control procedures. It strictly adhere to product quality management process clarifying that external quality
Process Operation Procedures and Cold Working Process Operation Procedures and adopts a combination of planned inspection disputes are solely managed and coordinated by the company's Quality Inspection Department. Relevant personnel such as sales are
mutual inspection and random inspection (patrol inspection) to achieve full life-cycle quality control of products. to communicate with customers in a timely manner and the Business Division and other related departments will action based on the
audit and processing opinions.
55 56S u s t a i n a b i l i t y
Quality Dispute Resolution Process Management Goal 2024 Progress
1. Receive Information Receive customer feedback. Production bases have passed ISO 9001 API There have been zero recorded incidents of product quality
Q1 and other quality management system accidents.certifications and continuously improve Holds API Q1 certificate NADCAP-NDT non-destructive testing
2. Fill out Review Form Fill out the "Customer Feedback (Complaint) Review Form." their quality management level. certificate NADCAP-HT heat treatment certificate NADCAP-MTL
Product quality is certified by authoritative laboratory certificate NADCAP-WLD welding process certificate
industry bodies such as NSF and Norsok UKCA certificate etc.
3. Review outcome If necessary visit the site immediately. Respond within 24 hours provide a reply within ensuring a high level of product quality in Products have passed authoritative industry certifications such
72 hours. the industry. as NSF and NORSOK.
4.Take Actions Based on the review outcome implement recommended actions.
Continuously provide high-performance and Most of the company's set product inspection pass rate targets
stable materials
Provide feedback on the handling result and have the Quality Assurance Department have been achieved demonstrating good quality control levels.
5.Case Review Product inspection pass rate: Welded pipe identify and organize corrective measures or convert it into an internal experience The company has made positive progress in product quality products >98.5% Seamless pipe products
feedback case. control and still needs to strive to ensure the overall pass rate >93% Pipe fitting products >93% Nuclear is comprehensively improved.
6.Case close In principle close within one month. Special circumstances require reporting and
power precision tube products >93.5%
approval.OPTIMIZING THE CUSTOMER EXPERIENCE
PRODUCT QUALITY TRAINING Jiuli adheres to a customer-demand-oriented approach continuously optimize its service concepts and models fully safeguards
customer rights and interests places high importance on customer feedback and is committed to providing customers with conve-
nient efficient and personalized service experiences.In 2024 the company held multiple quality management-related training sessions covering topics such as process quality issue analy-
sis and summary quality assurance management nuclear-grade pipe quality control equipment maintenance and metrology as well
as control of hydrostatic pressure ultrasound and material delamination defects. CUSTOMER SERVICE AND RIGHTS
Jiuli puts the customer at the center continuously optimizing service quality and management efficiency. The company has issued a
Sales Management Policy which details the operational procedures for after-sales services such as service and technical support
PROCESS QUALITY PROBLEM ANALYSIS AND SUMMARY TRAINING complaint handling customer satisfaction surveys and product returns ensuring the entire service process is efficient and standard-
ized and providing customers with comprehensive and high-quality support.In March 2024 Jiuli based on the Standard Operating Procedure Guide organized a hands-on assessment training on Jiuli Service Quality Improvement Practices
process quality issue analysis and summary with a total of 15 employees participating. During the training the company
focused on analyzing and improving common quality problems clarifying the functions and responsibilities of each Implement Customer Relationship Record and analyze customer profile provide personalized services
position to ensure they meet job requirements. At the same time the company compiled statistics on quality losses and Management (MAS) System and meet unique needs.implemented corrective measures thereby continuously enhancing the quality management capabilities and profes-
sional skills of its employees. Provide timely feedback and guidance to sales staff on issues encountered
Regular Meetings and Weekly Reports in their work prompting them to improve their work methods and thus
effectively enhance service quality.Utilize Sales Data Analysis Tools Track market dynamic data and adjust sales strategies in a timely manner
to ensure products and services always meet market demand.INDICATORS AND GOALS
Provide regular training on product technical parameters and other related
The company sets key performance indicators to measure development trends pays attention to process performance and product Product Knowledge and Sales
Knowledge Training knowledge supported by the 0technical department. At the same time service compliance benchmarks with industry peers and development trends improves product quality performance and enhances provide sales training to sales staff.product competitiveness.Utilize Social Media and Other Increase introduction of participating projects and enhance product
New Marketing Tools visibility in related fields.The company develop annual sales strategy based on market dynamics covering key dimensions such as pricing strategies and sales
channel management to ensure the business activity compliance.
57 58S u s t a i n a b i l i t y
CUSTOMER SATISFACTION The company provides public complaint hotlines through its official website after-sales
service commitment letters and other channels to ensure that customers can provide
feedback at any time. At the same time the company clearly stipulates that staff must
Jiuli continuously improves its product quality and service levels places Customer Complaint Hotline
great importance on customer feedback and constantly optimizes the respond within 24 hours of receiving a customer complaint; for major quality issues relevant
customer experience to enhance customer satisfaction. The company personnel must arrive at the customer's site within 48 hours to handle it (for export 0572-2539247
regularly conducts customer satisfaction surveys using the "Customer products the specific response time is determined based on communication with the
Satisfaction Survey Form" to conduct a comprehensive evaluation from customer).five dimensions: product quality product condition product cost-effec- In 2024 customer feedback received by the company was mainly around product dimension-
tiveness delivery time and overall service. This allows for precise access
to customer satisfaction data which is then used to compile a "Customer al deviations and surface quality. In response to the above complaints the company has
Satisfaction Survey Results and Analysis Report." The analysis report actively analyzed and investigated the root causes of the problems and taken effective
details the improvement measure plans and implementation results measures to resolve them avoiding the recurrence of similar incidents.ensuring that customer opinions are addressed and rectified. At the
same time the company sends satisfaction surveys to customers
quarterly and pays close attention repeat issues in two consecutive
customer satisfaction feedbacks taking practical and effective measures MAINTAINING INFORMATION SECURITY
to address them.In 2024 the company collected a total of 309 Customer Satisfaction Awarded "Excellent Supplier"
Survey Forms with customer satisfaction reaching 98.26 points a Jiuli places great importance on data and network security management monitoring in real-time to prevent network attacks and data
year-on-year increase of 0.66 percentage points achieving the target of leakage risks. It effectively responds to information system emergencies ensuring the integrity and confidentiality of data and providing a
customer satisfaction being higher than 96 points. In addition the solid guarantee for the company's stable development and customer trust.company received 39 thank-you letters from domestic and international
customers such as Shell Yantai West Port and China United Engineering
Corporation. DATA AND NETWORK SECURITY MANAGEMENT
Customer complaints are a direct and important channel for the company to address its own product and service issues which can help the
company improve its overall service quality and improve customer relationships. To ensure the openness of the customer complaint
channels the company clarifies the primary responsibilities of each department in handling customer complaints and has developed the Jiuli continuously strengthens its data security management having formulated internal management systems such as the "Information
"Customer Communication and Satisfaction Measurement Control Procedure" accordingly. This procedure details the customer complaints System Management policy" and the "Confidentiality Management System for Information Systems Information Equipment and Storage
handling process to resolve them efficiently and properly. Devices." These policies regulate the security and confidentiality management of the company's information systems equipment and
storage devices providing strong support for the sustained development of the company's business. The company stipulates that all service
data are backed up will be managed by information department who will decide on the backup strategy and dedicated network storage
Determine the responsible space is set up for synchronous data backup. Based on the importance and retention period of the data the company sets appropriate
Receive and record the department for handling the Root Cause Analysis. backup methods for various types of data such as network storage backup mobile storage backup and optical disc burning backup with key
complaint. complaint and report to the business data requiring off-site storage. At the same time the company formulates corresponding backup strategies according to the backup
up-level.levels of different systems regularly checks the data backup situation and promptly handles backup failures.The company places great importance on customer data and privacy protection clearly requiring operators to strictly adhere to confidential-
ity regulations and eliminate the risk of system passwords and data information leakage. The MAS system as the relationship management
system between the company and its customers undertakes important functions such as collecting storing processing and analyzing
customer data. In addition the company's sales staff are equipped with dedicated sales phone sims which have a higher level of security
Communicate and confirm the Company review the recom- Propose resolution recom- protection and can effectively protect user information security during data transmission.solution with customer. mendation. mendation.Resolve the complaint issue. Conduct internal reflection Record the complaint handling
and case sharing. process and archive it.Customer Complaint Handling Process Flowchart
59 60S u s t a i n a b i l i t y
Mas System Safeguard Customer Security
ORGANIZING SPECIAL TRAINING TO ENHANCE NETWORK SECURITY AWARENESS
Customer data is encrypted during storage and transmission. Advanced encryption In January 2025 Jiuli Group invited an external network security expert to hold a
DATA ENCRYPTION algorithms are used to convert raw data into ciphertext for storage in the database Network Security Awareness Training in which all employees of Jiuli participated.and for encryption during network transmission ensuring that even if data is stolen This training with the goal of "making network security awareness a habit" was
attackers cannot obtain the plaintext information. dedicated to maximum reducing the risk of corporate and individual network attacks
or data breaches and effectively preventing the occurrence of network security
incidents and accidents. The training content covered aspects such as identifying
information leakage hazards the principle of minimal software installation and
Establish a strict user identity authentication and authorization mechanism. Only identifying and preventing phishing emails to comprehensively improve employees'
authorized employees can access customer data and their access to data is restricted network security awareness.ACCESS CONTROL based on their job responsibilities and permission levels. For example customer
service staff can only view basic customer information and consultation records; data
analysts are limited to accessing data relevant to their analysis tasks. INFORMATION SYSTEM EMERGENCY RESPONSE
To enhance the ability to respond to information security emergencies the company has developed the Information System Emergency Response Plan
established a prevention and response mechanism and set up a special coordination group responsible for preventing and handling information system
emergencies. The company categorizes information system emergencies into eight types including network attacks information sabotage information
When processing and analyzing data sensitive information involving customer content security incidents network failures software system failures catastrophic events and other incidents. Based on the severity of the impact of the
privacy is anonymized and desensitized. For example customer names ID numbers information system interruption the incident level is divided into four grades: general major critical and catastrophic and targeted emergency response
DATA ANONYMIZATION and other sensitive information are replaced with anonymous identifiers and procedures are created. In addition the company conducts at least one disaster recovery drill and risk assessment annually completes data backups on
AND DESENSITIZATION information such as phone numbers and addresses is partially hidden so that the time and includes backup and recovery technical support clauses in equipment procurement contracts to further improve the level of emergency
processed data cannot be used to directly or indirectly identify customer identities. response and ensure data and information security.Information System Emergency Prevention and Response Coordination Group
A comprehensive security audit mechanism is implemented recording all operations
related to customer data in the system including data access modification deletion Analyzes the emergency situation determines the incident level and directs and coordinates the emergency Command Group
etc. Through audit logs every operation can be traced to the operator time location response actions; supervises the actions of emergency operators and ensures personnel safety.SECURITY AUDIT
and specific action so that in the event of a data breach or other security incident Business System
the problem can be quickly located and corresponding measures can be taken. Responsible for resolving faults found in business systems and handling system failure reports from business Emergency Repair
Group departments; performs diagnosis troubleshooting and recovery of information system failures.Infrastructure Responsible for the configuration of the company's network security protection and timely handling and repair
Emergency Repair Group of network security vulnerabilities. Performs daily maintenance and handles abnormal situations for security
monitoring smart park and other systems.Power Supply Group Ensures power input to the computer room.
2024 Security Group Supervises the fire protection facilities in the computer room and ensures on-site safety during emergencies.
Customer privacy leakage incidents: 0 DATA BACKUP AND RECOVERY DRILL
To test the feasibility and effectiveness of the server emergency plan in October 2024 Jiuli in conjunction with a third party conducted a
To ensure network security the company requires that networks for different business operations be isolated and partitioned. It allocates backup server recovery drill. The drill aimed to improve the response speed and coordination in dealing with emergency. The drill
reasonable permissions and security policies for devices accessing the company network and adds hardware firewalls or network gateways simulated a file loss scenario on a hyper-converged virtual machine server and the lost files were recovered by restoring from a backup
at key network nodes to ensure network security and reliability and effectively resist unauthorized intrusions. At the same time the company of the virtual machine server. The drill concluded successfully. The results showed that the total time from restoring the virtual machine
regularly conducts network security risk assessments to accurately identify potential security hazards and vulnerabilities and promptly takes server to the complete recovery of the lost files was 2 hours and 48 minutes and the verification of relevant files on the recovered virtual
machine was normal meeting the target.targeted measures to reduce risks. In addition the company also regularly organizes training on specific network security risks to improve
employees' security awareness and skills enhancing their ability to identify and respond to common network security threats.
61 62Safety First
Empowering Employee Development
Jiuli regards talent as a vital asset of the enterprise. It focuses on employee occupational
health and safety promotes standardized management and safe production and creates a
safe and healthy working environment for employees. We also focus on employees' rights
and interests' protection create a diverse and inclusive workplace atmosphere and acceler-
ating the construction of a talent hub and innovation center to provide a broad platform for
employee development and drive the continuous progress of the enterprise.S u s t a i n a b i l i t y
Protect Occupational Health Impact Type Impact Description Countermeasures
Establish a full life-cycle equipment management system and conduct
Jiuli considers safety and occupational health of its employees as a bottom line. By establishing a sound occupational health and regular preventive maintenance and key component inspections
safety management system promptly controlling hazards and risk sources ensuring the safe conduct of production and operation Heavy machinery failure Introduce intelligent monitoring systems (e.g. vibration analysis
activities timely eliminating occupational health hazards and enhancing employees' awareness of occupational health and safety it leading to production temperature sensors) to monitor equipment operating status in
builds a solid line of defense for corporate safety. interruption or personal real-time.injury. Implement lock-out/tag-out (LOTO) procedures to ensure safety during
Governance maintenance operations.The company has established an occupational health and safety management system and has Implement classified storage for chemicals (e.g. isolating flammable
clearly defined various requirements in the HSE Management Manual. The occupational health and oxidizing substances) and configure spill containment pallets and
management system covers 4509 people with a coverage rate of 100%. In 2024 the company Improper storage of ventilation systems.passed the ISO 45001 occupational health and safety management system certification. Internal Risk hazardous chemicals Use electronic tags (RFID) to manage hazardous chemical inventory
The company advocates that "safety is everyone's responsibility" and has established an occupa- causing chemical reactions and monitor storage conditions (temperature humidity pressure) in
tional health and safety management system headed by the General Manager. It clarifies the or leaks. real-time.responsibilities of management department heads safety specialists and employees and sign Regularly conduct chemical compatibility assessments and emergency
up safety production responsibility commitment at each level. The General Manager is fully drills.responsible for the effectiveness of the management system the approval and release of the
occupational health management policy ensuring the formulation and implementation of goals Conduct functional safety certification (e.g. SIL level assessment)
indicators and management plans and supporting the establishment and operation of the Health Maloperation of automat- for automation systems
and Safety Committee. The Safety and Environmental Department is responsible for the specific ed equipment or program Install redundant control and emergency stop devices and
implementation of occupational health and safety management work composing relevant vulnerabilities causing conduct regular logic safety tests.management documents carrying out the identification and control of relevant risks and oppor- Juli has passed safety incidents.ISO 45001 Certification Operators must undergo special training for the Human-Machine
tunities and organizing relevant departments to develop goals indicators and management Interface (HMI) and be certified to operate.plans. The Human Resources Department by implementing education training and communica- Select legally qualified suppliers collecting their business licens-
tion at different levels strengthens the publicity and implementation of occupational health and safety work. Other departments fulfill es relevant engineering construction qualification certificates
their respective responsibilities and coordinate with the Safety and Environmental Department to carry out occupational health and Potential safety risks safety production licenses etc.safety work. during on-site construc- Provide training to the contractors complete the training record
tion activities by external form safety notification letter and external personnel safety
Strategy contractors. education test.The company adheres to the policy of "safety first prevention foremost and comprehensive governance" and insists that "production During construction issue work permits as required and arrange
and safety management must happens hand in hand throughout the entire production process." We improve and strengthen the safety for dedicated personnel for supervision and inspection.production responsibility system strictly control and eliminate occupational disease hazards ensures the normal operation of enter- Material supplier should be contracted for material delivery. Their
prise production and protects the health of workers. At the same time the company conducts annual safety risk identification estab-
Accidents during the vehicles and logistics transporter must comply with national lishes a risk control mechanism and through scientific assessment levels of control and continuous improvement ensures that chemical transportation requirements.occupational health and safety are integrated into the company's long-term development strategy balancing production efficiency transportation of chemi-
with employee well-being. cals potentially causing
The supplier requires transportation personnel to operate safely
chemical spills. during transportation establish an emergency mechanism and
External Risk immediately activate emergency response plans in case of an
Impact Type Impact Description Countermeasures accident.Establish and improve the emergency management system emphasize Establish a sound occupational health management system
the construction of the company's internal emergency response team
After a fire explosion or standardize daily management and fulfill all compliance obliga-and conduct regular reviews training and drills for emergency plans.environmental accident tionsOrganize team-level environmental emergency and safety training to
the emergency plan is Strengthen daily training and education inspections and hazard enhance emergency awareness. Increasingly strict occupa-
not activated effectively. investigation and make timely corrections for continuous Equip with appropriate emergency equipment and conduct regular tional health management. improvement
Internal Risk inspections and checks. Preventing occupational Ensure proper operation of on-site occupational hygiene equip-
disease from happening. ment monitor equipment operation through inspections and
Spillage or leakage of Provide corresponding training to operators. conduct annual regular equipment maintenance to prevent occu-
chemicals during product Personnel handling hazardous chemicals must be certified; filling and pational disease accidents
filling loading or loading should be done according to the SOP. Distribute PPE in a timely manner
transportation. Conduct daily supervision and inspection or random checks. Equip with appropriate emergency supplies and conduct regular
inspections and maintenance.
65 66S u s t a i n a b i l i t y
Impact Type Impact Description Countermeasures Impact Risk and Opportunity Management
Establish a diversified supplier base and sign long-term supply
Supply chain may be agreements with core suppliers.interrupted leading to a Maintain a safety stock of key raw materials and regularly assess Risk and Opportunity Management Procedure
shortage of chemical raw supply chain resilience.materials.Each department based on the company's internal and external environmental factors the needs and expectations of interested
Proactively deploy advanced waste gas/wastewater treatment parties as well as the results of hazard identification and legal and regulatory compliance requirements preliminarily analyzes and
Upgrades in environmental technologies (such as high-efficiency denitrification technology assesses the risks and opportunities within its department. The Safety and Environmental Department collates the risks and opportu-
External Risk regulations may lead to Conduct third party compliance audits to ensure conformity with the nities reported by each department organizes relevant personnel from each department to conduct an assessment and determines
non-compliant emissions. "Guiding Principles for the Investigation and Governance of Safety the risks and opportunities. For the determined risks and opportunities the Safety and Environmental Department specifically imple-
Risks in Hazardous Chemical Enterprises." ments the Risk and Opportunity Control Procedure.At the same time the company develop the Safety Risk Hierarchy of Control using hierarchy of control measures to control risks deter-
mines the risk level based on the probability and severity of potential accident types forms a risk list and determines risk control
Extreme weather (e.g. Establish a warning and coordination mechanism with meteorologi- measures.heavy rain high tempera- cal departments and formulate emergency plans for extreme weather
tures) may affect the Equip transport vehicles with GPS and temperature/humidity moni-
transportation and storage toring providing real-time feedback to the dispatch center.of hazardous chemicals. Emergency Management
Increased awareness The company has created the Emergency Preparedness and Response Control Procedure and the Production Safety Accident Emergen-
among management and Conduct training and publicity on all relevant safety laws regula- cy Plan. It has established a hierarchical of control emergency response management system based on the hazard level of potential
the general workforce. tions and requirements for all employees accidents and has developed specific emergency plans for potential accident types which are regularly tested to ensure a rapid
Improved safety protec- Regularly organize professional personnel to attend international response and management in emergency situation. The company has established an emergency command center responsible for
tion equipment. and domestic technical exchange conferences and exhibitions for organizing and commanding emergency rescue work. It also defines the duties of each department and relevant personnel and sets
Introduction of new new processes and equipment. out rules for information reporting early warning emergency response rescue post-incident handling and emergency support after
environmental manage- Rely on the research center to develop new processes. an accident ensuring the efficient implementation of emergency management work. The company regularly revises these documents
ment technologies and and conducts emergency drills to enhance its emergency management capabilities.concepts. In 2024 the company organized a total of two emergency drills and assisted the sub-production sites in conducting 14 emergency drills
promptly addressing and correcting any issues.Build a safety production information platform integrating risk
The Industrial Internet monitoring hazard investigation and emergency command
enhances safety manage- functions. Accident Hazard Investigation
ment efficiency. Apply digital twin technology to simulate high-risk work scenarios
and optimize emergency plans.Opportunity The company has created the "Accident Hazard Investigation and Governance Management Policy." Based on the governance principles
Cooperate with scientific research institutions to develop low-toxici- of "area owner owns the responsibility" and "all employees engagement all-round and ongoing" it conducts hazard investigations The Industrial Internet
ty biodegradable alternative chemicals through a combination of regular and irregular checks as well as specialized and comprehensive investigations. It investigates hazards enhances safety manage-
Apply for government subsidies for green manufacturing special in areas such as the implementation of the safety production responsibility policy the implementation of laws and regulations the ment efficiency.projects to reduce the cost of technological upgrades. provision of emergency supplies and the formulation and drilling of emergency plans the maintenance of facilities and equipment
the management of hazardous operations and the provision of labor protection equipment and safety education and training and
carries out timely rectification.National promotion of the Apply for intelligent factory/digital workshop demonstration projects In 2024 the company conducted investigations into work-related accidents that occurred during production analyzed the causes of the
deep integration of to strive for policy and financial support accidents and hold responsible individuals accountable as stated in the safety production responsibility policy. After an accident the
intelligent manufacturing Introduce AI visual recognition systems to automatically capture company carries out actions for rectification provides safety education to employees to improve their safety protection awareness
and safe production. unsafe behaviors (e.g. not wearing PPE). and improves potentially hazardous work processes and environments to prevent similar accidents from recurring. It strengthens the
on-site hazard investigation for similar positions and promptly rectifies any discovered hazards. It also improves safety operation
Increased customer Enhance market competitiveness through ISO 45001 and ISO 14001 training which is updated with the finding from the hazard investigation.demand for ESG (Environ- system certifications.mental Social Governance) Regularly publish ESG reports to disclose occupational health and
performance. safety performance.
67 68S u s t a i n a b i l i t y
Work Safety Management 2024
Through the development of Work Safety Management Policy Work Safety Responsi-
bility System Contractor Management Policy and Special Operations Management Total hours of occupational health and safety training:54326hours
Policy. Jiuli has established management systems for work safety responsibility work
safety education work safety inspection and PPE management. All engineering Average hours of occupational health and safety training per person:10hours or more
projects must be reviewed and approved from work safety fire protection and In 2024 the company continued to strengthen safety education
occupational health＇s perspective. At the same time the company carries out work
safety education and campaign to improve the safety awareness of all employees with a safety education coverage rate of99%
strengthen accident management to eliminate accident hazards and address on-site
management and infrastructure construction to ensure the safety of production
operations. The company has obtained the Huzhou City Safe Production Standardiza-
tion Certification. In 2024 the company completed the construction of a micro fire Jiuli obtains Huzhou
City Work Safety Standardization Level Jiuli Invites Wuxing District Fire Rescue Brigadestation and introduced water-swellable bags to enhance its fire emergency capabili- Three Enterprise (Machinery) certification. for Fire Emergency Knowledge Training
ties.In November 2024 Jiuli held a National Fire Safety Awareness Month event inviting the Wuxing District Fire Rescue
Occupational Health Protection Brigade to conduct fire emergency knowledge training. A total of more than 110 team leaders from different production
sites have participated in this training. During the training instructors from the Wuxing District Fire Rescue Brigade
combining case studies of fire incidents from recent years detail explained fire emergency rescue knowledge and the
The company keeps improving employee occupational health and hygiene use of emergency fire station equipment. Through on-site demonstrations employees learned the skills of using fire
management level. An occupational health management file system was equipment further enhancing their fire prevention awareness and ability to handle fire emergencies and fostering a
created with a 100% filing rate. Each role is equipped with an occupational culture of "Everyone owns fire safety and Life is the top priority."
hazard notification board and AED defibrillators are installed in public areas
throughout the company. At the same time it strengthens the management
of employees and third-party labor ensuring that proper personal protective
equipment is used. Regular and ad hoc inspections for occupational health
hazard are conducted monthly. Occupational disease prevention measures
(such as for dust noise and chemical management) are implemented and
regular health monitoring and psychological support are provided.In 2024 the company conducted safety campaign among several of its
subsidiaries on occupational disease hazard detection and occupational
hazard assessments. It organized examinations of working stations expose to AED device installed in a
hazards and occupational health examinations for 1158 general workers 115 public area of Jiuli
polishing laborers. Through cross-checks 1721 hazards were identified with
a 100% rectification rate.
2024
Incidence rate of occupational disease:0 Fire safety training
Occupational Health and Safety Training
Indicators and Goals
The company has established the Safety Education and Training Policy conducting tiered safety training (such as new employee induc-
tion special training for high-risk operations). It launches "Safety Month" campaign and carries out occupational health and safety The company's main goal for occupational health and safety is to "eliminate safety hazards promote work safety and ensure safety in
training that includes practical driving training cardiopulmonary resuscitation (CPR) training emergency rescue and production." At the same time we have set clear management goals such as accident rates injury and fatality rates and equipment
working-at-heights training. In 2024 the company built a driving training base and conducted ground-operated driving training for a integrity rates to protect the life and health of employees improve safety management levels and eliminate accidents and occupa-
total of 382 people. Additionally the company also held "Safety Month" and "Fire Safety Month" activities inviting the fire brigade to tional diseases.provide training to the team leaders and workshop manager enhancing the fire safety awareness of front-line personnel.
69 70S u s t a i n a b i l i t y
Management Goal 2024 Progress
2024
Reduce hazards regularly distribute protective equipment. Work injury insurance and safety production liability
Emergency facility provision rate: 99% insurance investment amount: 5.747 million RMB
Protective equipment integrity rate: 100% Coverage rate for work injury insurance and safety Total number of employees (including BK company): 4509
Annual inspection rate for special equipment: 100% production liability insurance: 100%
Equipment normal operation rate: 95%
Employee Gender distribution （including BK）
Reduce accident occurrence rate. Work-related deaths: 0
Zero major accidents causing death or injury. Recordable work injuries: 2 people Male 85.85%
Zero fire and explosion accidents. Recordable work injury rate: 0.04%
Minor injury accident rate <5‰ Lost workdays due to work injury: 37 days
Female 14.15%
Employee Age Distribution
Protecting Employee Rights and Interests 15.26% 57.45% 27.29%
Jiuli always stick to a people-oriented development philosophy and guarantees the legitimate rights and interests of its employees.The company strictly follows a fair and just recruitment process creates a safe fair and respectful working environment opposes all
forms of discrimination and forced labor. Work contracts are signed in accordance with the law and effectively protects the employees' 50 and above 30-50 30Female
right. At the same time the company has established a competitive salary and benefits system providing security and care to the
employees. The company also cares for the physical and mental health and career growth of employees promoting the construction
of a diverse equal and inclusive corporate culture and achieving the common progress of employees and the enterprise.Mid-level and above management personnel (e.g. managers department heads): 221
Employment Compliance Management Level Gender Distribution
We comply with laws and regulations such as the Labor Law of the People's Republic of China Labor Contract Law of the People's
Republic of China and Employment Promotion Law of the People's Republic of China. we have formulated measures such as the Male 84.62%
Human Resources Management Policy and Employee Recruitment and Employment Guidance signing and performing labor contracts
in accordance with the law. The company has clear and standardized employment procedures. During the recruitment process
background check are conducted as specified in the guidance and the identity documents of newly hired employees are strictly Female 15.38%
reviewed. If false information is found the labor contract can be terminated. The company resolutely prohibits the use of child labor
and forced labor. In 2024 the company had no incidents of using child labor or forced labor no labor arbitration cases throughout the
year and no major employee complaints. Management level Age Distribution
30Female
Diversity and Equality 23.98% 75.11% 0.91%
The company adheres to the principle of "recruiting on merit combining ability with integrity and making the best use of talent." It has
built a recruitment system that is open fair and just. We ensure that in processes such as talent recruitment training and develop- 50 and above 30-50
ment performance management and salary and promotion there is no discrimination based on gender age ethnicity birth place
religious belief physical condition or other factors. The company advocates for a diverse and inclusive corporate culture respecting
differences and embracing diversity encouraging employees from different backgrounds and with different perspectives to work
together and stimulate team innovation and vitality. At the same time Jiuli thoroughly implements the spirit of the document issued Employees from ethnic minorities such as Yi Miao and Tujia:78
by the General Office of the State Council Action Plan for Promoting the Employment of Persons with Disabilities (2022-2024). Focusing
on equal employment opportunities for disadvantage groups increases efforts to recruit persons with disabilities and provides
employment positions for those of working age who have the desire and ability to work. Foreign employees: 1 Discrimination incidents: 0
71 72S u s t a i n a b i l i t y
The company respects employees' freedom of association and democratic management rights striving to protect their legitimate rights
and interests. In 2024 the company held 3 employee representative congresses with a total of over 300 participants. The employee "Hercules Cup" Tug-of-War Competition
representatives reviewed and passed motives such as the "Collective Contract" "Wage Agreement" (draft) and special working hour
approval policies.In 2024 Jiuli organized the fourth "Hercules Cup" tug-of-war competition. In the final the JCO factory team won the
runner-up and the large welded pipe factory team won the "Hercules Cup" championship for the second consecutive
Remuneration and Benefits year in production division. The tug-of-war competition was not only a contest of strength but also a showcase of the
company's team spirit and cohesiveness. It also added color to the employees' lives outside of work.In terms of salary benefits and social security the company has formulated regulatory documents such as the Regulations on Employ-
ee Participation in Urban Employee Basic Medical Insurance Regulations on Employee Housing Provident Fund Management and
Remuneration Management System. This ensures equal pay for equal work and the payment of five social insurances and one housing
fund. It also implements various remuneration models such as an annual salary system a performance-based salary system a
piece-rate payment system and a contract-based wage system according to different job positions. The company also adjusts the
overall salary level in a timely manner based on annual business performance to ensure that the remuneration system is both
externally competitive and internally aligned with job characteristics. In terms of working hours the company adopts standard
eight-hour workday policy and at the same time implements a comprehensive working hour system based on production characteris-
tics and actual needs. In 2024 the company paid employee wages and social insurance on time with a total welfare expenditure of
81.6273 million RMB.
Employee Care
Tug-of-War Competition Championship awards
The company has always adhered to a "people-oriented" management philosophy placing high importance on the physical and
mental health and comprehensive development of its employees. We are committed to creating a warm and caring work environment.In 2024 the company continued to improve its employee care mechanism actively assisting 15 employees in difficulty. Through
organizing women's health check-ups and providing fitness facilities we provide physical and mental health to the employees gives
special care and attention to female employees and creates a harmonious positive and inclusive corporate atmosphere enhancing
employee satisfaction and happiness.March 8th Goddess Day" Event
2024
In March 2024 the Jiuli Group Labor Union held a "Uniting Hearts - Spicy Goddess Passion fo Life" event for Internation-
al Women's Day. We have organized varies activities including "guess the song" mini-game "She Power She Defines"
Conducted Employee Satisfaction Survey in November 2024 inspirational story sharing session and "Cake DIY". The event has successfully encouraged sharing and celebration
among the female employees.Surveyed 3385 people
Participation rate: 98.35%
Overall employee satisfaction rate: 97.57%
An increase of 1.57% compared to 2023.Cake DIY Group photo of the event
73 74S u s t a i n a b i l i t y
Empowering Employee Development
"High-school graduate visit & Appreciation to Parents" Event
"Those who govern the world value talent and those who cultivate the world's talent value education." Jiuli has always regarded talent
as the most precious resource of the enterprise making the cultivation and development of talent a key pillar of our corporate strategy.In 2024 Jiuli Group along with its employees and their children who had taken the college entrance exam joined the The company adheres to the talent philosophy of "building the business with talent prioritizing both integrity and ability and making
seventh " High-school graduate visit & Appreciation to Parents" event. The employees' children visited the Jiuli exhibi- the best use of talent." We continue to focus on key areas such as optimizing the organizational structure expanding career pathways
tion center experienced the Jiuli spirit and were deeply inspired. The parents and children strengthened their bonding and talent develoopment. By improving the talent management as a whole including talent cultivation deployment and retention it
through completing craft projects together. This event is not only a recognition and reward for the hard work of the creates a positive culture that respects talent and encourages growth continuously consolidating the intellectual foundation and
employees but also where we express our sincere expectation and best wishes to the young talents who are about to talent support for the high-quality development of the enterprise.start the next chapter of their life.Talent Attraction
The company attracts talent through various channels such as campus recruitment and social recruitment. At the same time the
company also focuses on work with university research institutions to create an open and collaborative innovation ecosystem. The
company has established close cooperative relationships with universities such as Beijing University of Science and Technology and
Zhejiang University of Technology forming a virtuous cycle through close industry-university-research collaboration injecting continu-
ous momentum into the high-quality development of the enterprise.
2024
Total new employees:629
The chairman presents gifts to the employees' children.New full-time employees with a bachelor's degree or above: 142
Retired Employees Event
On September 27 2024 Jiuli Group held
a retirement appreciation meeting to
sincerely appreciate the employees
who honorably retired in the third
quarter. The company took portraits for
each retired employee to preserve their
best moments at Jiuli. They also visited
the Jiuli exhibition center together
looking back to Jiuli's 37-year develop-
ment history. The company expressed
its most sincere gratitude and blessings
to each retired employee wishing them
Form an industry-university-research collaboration Jiuli and Zhejiang University of Technology's
a happy fulfilling and healthy retire- with Beijing University of Science and Technology. Materials Science and Engineering College build student2024 Third Quarter Retired Employees Appreciation Meeting internship and practice base.ment.
75 76S u s t a i n a b i l i t y
Job System Construction Talent Training
In terms of career path development the company has continued its "dual-channel" management system where the administrative The company has always regarded talent as a key resource for enterprise development and continues to improve a diversified training
management channel and the technical channel are interconnected. Furthermore the company has carried out individual talent system that covers employees at all levels. Through a combination of online and offline methods and coordination of internal training
cultivation plans for four work streams including production technology administration and marketing. This not only promotes the and external resources the company systematically carries out various forms of learning activities such as course training expert
implementation of the career development channel system but also lays an important foundation for employees to have a clear career lectures and hands-on learning. This continuously enhances the professional abilities and overall capability of employees helping
development direction and promotion path. them to grow and develop in synergy with the enterprise.Management Channel Expert Channel
2024
Senior Manager Senior Expert
Number of employee training sessions:836 Total training investment: 4.97 million RMB
Middle Manager Expert Average training hours per employee: 22.57hours
Average training hours for female employees: 11.03 hours
Entry-level Key member Average training hours for male employees: 30.99 hours
Average training hours for management: 11.62 hours
Experienced Employee Average training hours for junior employees: 27.63 hours
Training plan completion rate: 100%
Junior Employee
Y-shaped Dual Career Development Channels Spring Training for Sales
To strengthen the business knowledge of sales staff improve their understanding of product features R&D situations
Dual-Channel Mechanism: and to improve their information security awareness Jiuli held a spring training for all sales staff in 2024. The course
focused on the future application of alloy products the overview and quality control points of bimetallic composite
Technical Talent: The company cultivates their professional skills to enhance their competitiveness pipes information security the application market and R&D of high-performance nickel-based alloy welding materials the current situation and future development of high-efficiency heat exchange and business etiquette. It provided
in specific sub-fields. comprehensive training and guidance for the sales staff of the company and its subsidiaries.Management Talent: The company encourages them to leverage their professional strengths
provides a development platform and offers a management channel for promotion.An effective talent incentive mechanism is key to stimulating employee potential and promoting continuous organizational innovation.To this end the company has also built a scientific and comprehensive incentive system. Through multiple means such as a
market-competitive salary structure performance incentive policies career development channels and employee recognition mecha-
nisms it ensures that employees' contributions are fairly recognized and rewarded achieving synergistic development between
individuals and the enterprise. The company has established incentive measures like efficiency awards and lean proposal awards to
encourage employees to actively participate in daily management optimization promoting a closed-loop management model of
"discovering problems - solving problems - receiving awards" and enhancing the participation and sense of ownership of all employ- Sales staff listening attentively during
ees. Furthermore to further improve the scientific and transparent nature of the incentive mechanism since 2023 the company has the spring training Spring training session
optimized the "dual-channel" career development mechanism and integrated it with the remuneration system. The company has
annual performance review on employee professional competency. The review results serve as an important basis for salary adjust-
ments and position promotions providing strong support for employees' career growth paths.
77 78S u s t a i n a b i l i t y
Siemens Hand-on Technical Training Seamless Pipe Production Process Technology Training
In April 2024 Jiuli held a Hand-on technical training on the application and common troubleshooting of Siemens To improve the understanding and mastery of seamless pipe production process technology and production specifica-
frequency converters aiming to enhance the technical proficiency and practical skills of its technical staff and ensure tions for relevant staff Jiuli held a seamless pipe production process technology knowledge training in the summer of
the application of theoretical knowledge into practical skills. To fully evaluate the training effectiveness the company 2024. This training covered all employees of the seamless pipe business unit and production department ensuring that
conducted a rigorous test assessment for the 35 participating technical staff. Among them 30 technical staff successfully every employee received systematic and comprehensive training. The training content was tailored with actual produc-
passed the assessment. The company recognized their achievement and awarded them completion certificates to tion needs explaining the important aspects of seamless pipe production in a simple and profound way. All participat-
encourage their progress in the technical field. ing staff passed the assessment with excellent result.Technical staff training session
Siemens Hand-on Technical Training
79 80Assume Social Responsibility
For Positive Impact
Jiuli actively undertakes its social responsibilities participates in industry develop-
ment to promote progress builds a sustainable supply chain assist the sustainable
transformation of industry partners and actively engages in public welfare contrib-
uting to social harmony development and progress.S u s t a i n a b i l i t y
Responsible Supply Chain Impact Type Impact Description Countermeasures
Jiuli continuously strengthens its supply chain sustainability management capabilities incorporating sustainable development into its Strengthen warehouse receiving management and conduct regular
supply chain management system. It actively implements environmental and social risk management for its suppliers helping the Risk of theoretical weight vs. inventory counts of warehouse materials
industrial chain achieve a sustainable transformation. actual weight. Improve the gate pass management system to ensure a closed loop
weight management at entry and exit.Governance
Risk of loss of goods in Select reliable warehouses and conduct joint inventory counts every
The company has developed the Supplier Management Policy and Procurement Policy. The Supply Management system has Supply external warehouses. quarter.department taking overall responsibility and Quality and Technical Departments as support functions to manage the end-to-end
supply parocess including supplier development performance evaluation and supplier exit. This collaboration enhances supply chain Risk
resilience promotes sustainable supply chain management and fosters synergy with suppliers.EU carbon tax and other Promote the trial use of green low-carbon raw materials with raw
Strategy policy risks. material suppliers and promote customer certification.The company upholds the corporate mission of "Provide high-performance materials for the global industries " and actively establish-
es partnerships with suppliers. We aim to improve supply chain product quality and enhancing supply chain resilience as our strategic Good supply chain security
goals and continuously strengthen the full life-cycle supplier management. At the same time guided by the concept of sustainable contributes to the stable
development we implement the national "dual carbon" strategy. We focus on building a responsible supply chain as at the key driver Strengthen daily supplier management improve the full life-cycle development of the
to deliver our sustainable strategy. We strengthen the management of suppliers' conduct in terms of environment society and gover- supplier management system strengthen supplier product quality company's business
nance promotes responsible mineral management and jointly advances green supply chain construction. management optimize supply chain configuration and at the same reduces procurement and
The company update "Risk Identification and Assessment Form" annually to identify and develop countermeasures for risks in procure- time enhance the assessment of suppliers' sustainable development logistics costs and
ment suppliers warehousing and product transportation. Opportunity capabilities to ensure supply chain security and stability.improves production
efficiency.Impact Type Impact Description Countermeasures
Promote joint development with suppliers to drive the domestic
Single source supplier production of Impact Risk and Opportunity Management
supply risk. Avoid using a single supplier
Balance the procurement ratio of imported and domestic products
based on the consideration on quality and price. Full Lifecycle Supplier Management System
Assess production capacity price and transportation performance of Supplier Approval
foreign suppliers placing orders with multiple suppliers for bulk
orders.Risk Supply chain sustainability. For critical materials that could cause a complete company shutdown The company conducts an initial evaluation of suppliers through the information survey forms they fill out. We assess suppliers in
use long-term contract suppliers or develop inhouse production aspects including but not limited to business risk quality risk product risk and social responsibility. Suppliers that passed the assess-
capability. ment is categorized as potential suppliers. Potential suppliers are then sub-categorized and on-site audit are conducted to further
assess supplier's products quality against the requirements for supply. Suppliers with an on-site review score of 70 or above will be
approved as qualified suppliers. Those with a score below 70 are categorized as non-compliant supplier or have their supplier qualifi-
cations revoked if they are existing suppliers which will not be allowed to supply to us. Non-compliant suppliers are not allowed to
participate in re-audit within six months. At the same time the company regularly conducts re-audit of suppliers with the interval not
Exchange rate fluctuation Use the same currency for import and export business to allow Finance exceeding 3 years.risk. Department to arrange hedging activities. The company develops an annual supplier audit plan based on customer requirements supplier evaluation results and legal and
regulatory requirements. In 2024 the company conducted audits on 6 suppliers and implemented timely corrective measures for any
non-conformities found during the audits.
83 84S u s t a i n a b i l i t y
Supplier Assessment Jiuli Supplier Code of Conduct
The company conducts regular supplier assessment based on documents such as the "Raw Material Supplier Evaluation Form" "Auxil- Prohibition of forced labor Against violence harassment and
iary Material Supplier Evaluation Form" and "Service Supplier Evaluation Form." It comprehensively evaluates suppliers from source to Prohibition of child labor other inhumane treatment
payment across key dimensions including price quality on-time delivery rate emergency order response capability complaint Labor and Human Rights Lawful arrangement of work and Anti- discrimination
handling and supply quantity. Based on the evaluation results the company categorizes suppliers into excellent qualified restricted rest times Respect for freedom of association and
and unqualified and implements corresponding actions such as purchase through preferred supplier feedback to supplier for correc- Compliant provision of salary and collective bargaining rights
tive actions cap the purchased volume and freezing of accounts. In 2024 the company conducted performance evaluations for 112 raw benefits
material suppliers. No restricted or unqualified suppliers were identified and timely corrective measures were implemented for quali-
fied suppliers with non-conforming items.Provide of healthy and safe working conditions
Health and Safety Provide of clean living conditions
Termination Policy Emergency readiness
Requirement for employees to comply with safety rules
In the product acceptance process the company will immediately revoke the qualification of any supplier found to have intentionally
provided counterfeit or substandard products or to have seriously breached contract terms or refused to perform the contract without
force majeure. Such suppliers will be banned from the qualified supplier list for five years. Obtaining and maintaining environmental permits and reports
Environmental Compliance with product environmental requirements
Protection Prevention of environmental pollution
Energy saving and emission reduction
Supply Chain Sustainable Development Management
Upholding integrity and honesty
Protection of intellectual property
Business Ethics Adherence to fair trade marketing and competition standards Protection of The company integrates ESG management into the entire procurement process including supplier development selection and evalua- whistleblower identity and establishment of a no-retaliation policy
tion management and audit and exit covering the full lifecycle management. In the supplier assessment the "Supplier Social Respon- Responsible sourcing of minerals
sibility Evaluation Form" is used to assess a total of 50 items related to the code of conduct. The company uses methods such as suppli- Protection of private information
er self-assessment on-site auidt and remote audits to screen and approve suppliers with a score of 70 or above as qualified. At the
same time the company will review the supplier's business ethics intellectual property labor safety and environmental records over
the past 3 years by checking the supplier survey form and relevant public websites for any complaints or penalties from the govern- Compliance with company commitments and management responsibilities
ment customers or other related parties. Risk assessment and management
The company specifies ESG-related clauses in its procurement contracts and incorporates ESG into supplier performance assessments. Management Systems Management of upstream suppliers
Suppliers with good ESG performance will be the preferred supplier to gain more purchase volume and priority in business coopera- Internal audits and management reviews
tion opportunities. For suppliers with poor ESG performance especially those who violate ESG bottom lines a deadline for rectification
will be required while their procurement volume will be reduced or business cooperation opportunities will be limited until the
partnership is terminated. For suppliers who violate environmental labor and personnel-related clauses the company will suspend
their qualifications and prohibit re-assessment for one year. In cases of serious violations their qualifications will be revoked.Promote Sourcing Transparency
2024 We continuously strengthens the integrity and compliance of its supply chain opposing corruption and unfair trade. We collaborates
with suppliers to maintain a fair and competitive principle achieving win-win cooperation and jointly building a standardized just and
0 transparent business environment. The company co- sign "Partner with Integrity commitment" with its suppliers requiring them to Number of suppliers found to have actual or potential significant negative ESG impacts: comply with anti-corruption requirements and regulating the conduct of both company and supplier personnel. It is clearly stated that
accepting bribes strictly prohibited by Jiuli in any form and violators will be subject to disciplinary measures such as job transfer
performance management or termination of the employment contract. Severe cases will be handed over to judicial authorities for
handling. The company opposes suppliers offering bribes through various means and will take measures such as issuing notices
warnings suspending business terminating contracts and even revoking qualifications for violators. By the end of 2024 referencing
the company's signing requirements we have signed the " Partner with Integrity commitment " with over 410 suppliers.
85 86S u s t a i n a b i l i t y
Green Supply Chain
Supplier Product Quality Management
We believe it is important that the suppliers has environmental protection built in their corporate culture and business philosophy
and are committed to building a green supply chain. When selecting suppliers we look at to their low-carbon strategies and products
purchasing products that use energy-saving and carbon-reducing technologies such as zero-carbon cold rolling and internal circula- The company strictly manages the quality of supplier products. During the supplier approval phase the company requires all raw
tion of coke oven gas to replace natural gas. Selected suppliers have obtained ISO 14001 environmental management system certifica- material suppliers to have ISO 9001 quality management system certification and all raw material and service suppliers must be
tion. equipped with sufficient quality inspection capabilities and have acceptable business performance in supplying the same material.When necessary the company will collect samples for testing and evaluation. Based on the various requirements of the materials or
services and the supplier's quality-related documents and requirements etc. we formulate "Auxiliary Material Procurement and
Build a Low-Carbon Supply Chain System Acceptance Criteria" or related technical requirements for different categories of suppliers to clearly states the acceptance criteria.Establish a low-carbon supply Conduct supplier carbon
chain evaluation system disclosure Selection and assessment Supplier Training
We build long-term relationships with suppliers to create a sustainable supply chain and jointly respond to market fluctuations.Product Design Raw Material Input Production Through collaboration in technical and training sessions we developed better understanding of each other's needs and challenges
improving the supply chain's agility and resilience and jointly improve product quality and performance. This enables the company to
meet market demand and achieve our strategic development goals. It also promotes win-win situation with suppliers maintaining the
Reduce energy Low-carbon raw materials Energy-saving throughconsumption during use production process company's competitiveness in the market and creating maximum value for customers. During the reporting period the company
organized monthly on-site collaboration sessions with suppliers for discussion and learning.extend service life recyclable materials reduce raw material waste
Indicators and Goals
packaging recycle and reuse Logistics Management
The company takes ensuring the quality stability and safety of its supply chain products as its main goal for supply chain management.At the same time we set relevant indicators for raw material defect rate on-time delivery target and ESG evaluation and continuously
low-carbon packaging increase recycledand reuse rate maintain reasonable inventory
monitors the implementation progress to enhance supply chain resilience.reduce packaging procedures reduce carbon emissionthrough recycling clean energy substitution Management Goal 2024 Progress
Utilize Information Technology Strengthen supply chain product quality The company has a total of 1410 suppliers of which 570 are
management ensure the stable operation of local suppliers in Zhejiang accounting for 40% of the total
the supply chain number of suppliers.Improve production and
logistics efficiency Raw material acceptance rate (quality) 98% Raw material acceptance rate(quality) 99.32%
On-time delivery rate of raw materials 90% On-time delivery rate of raw materials 96.44%
[Honor] 100% of new suppliers were screened using environmental Strengthen supplier ESG management standards.enhance supplier access thresholds and ESG 100% of new suppliers were screened using social standards.Jiuli was selected as a "Green Supply Chain Management Enterprise" for the year performance evaluation mechanisms
2024 by the Ministry of Industry and Information Technology of the People's Republic of China.
87 88S u s t a i n a b i l i t y
Industry Connection
Participation in the China Society for Metals Carbon Neutrality Branch
Jiuli actively participates in industry connection to drive industry development. We have attended industry events and participated in
the formulation of industry standards and has led or participated in the formulation of more than 40 national and industry standards
contributing to the development of the industry. On November 27 2024 the inaugural meeting of Carbon Neutrality Branch of the China Society for Metals was held in
Beijing. With the theme of practicing the carbon neutrality development strategy promoting the coordinated develop-
ment of carbon neutrality and new productive forces and boosting future economic and social development the
2024 conference focused on discussions and exchanges on basic theories around“ carbon neutrality” and the discussion of
development and application of cutting-edge technologies and key equipment. The aim was to accelerate the research
and development of low-carbon technologies and the construction of an ecological chain and jointly explore the path
Led or participated in national standards formulation: 3 of green development. The deputy director of the Jiuli Research center attended the conference as the company repre-
5 8 sentative. The chief engineer and director of the Jiuli Research center was successfully elected as a member of the first Industry/group standards forumation: Filed enterprise standards: committee of the Carbon Neutrality Branch of the China Society for Metals based on their professional influence in the
industry.Jiuli Participates in the Second Petrochemical
Equipment Industry Standardization Conference
In August 2024 Jiuli's Chairman Li Zhengzhou participated in the "Second Petrochemical Equipment Industry Standard-
ization Conference" hosted by the China Petroleum and Petrochemical Equipment Industry Association. During the
conference Liu Hongbin President of the China Petroleum and Petrochemical Equipment Industry Association together
with more than 100 experts and representatives from the petrochemical equipment industry visited Jiuli. The group
toured the Jiuli Exhibition Center Research Institute and other locations gaining a detailed understanding of Jiuli's
development history industrial system production processes and product application areas. They experienced closely
the efforts and achievements made by Jiuli in product innovation technological innovation and standard innovation.Fulfilling Social Responsibility
The company actively responds to the government's call taking the Jiuli Group as a unified entity to earnestly fulfill its social responsi-
bilities and promote sustainable corporate development. In 2024 the company continuously developed public welfare projects
promoting the spirit of volunteering and hardworking through supporting rural revitalization practicing vocational education engaging
in charitable donations and participating in volunteer services. The company proudly undertakes the responsibilities of a corporate
citizen striving to contribute social value and contribute to the harmonious development and progress of society.[Honor]
In 2024 Jiuli Group donated a total of 2.95 million yuan and was
jointly awarded by the Huzhou Charity Federation and the Charity
United Association with“ Annual Pioneer Company Member”
In terms of rural revitalization Jiuli Group continued to carry out party-building co-construction and village-enterprise pairing
assistance activities with Tushan Village in Shuanglin Town. Jiuli subsidiary Qiancheng Company also carried out village-enterprise
pairing activities with Yushan Village in Daixi Town and donated 20000 yuan to support the construction of Yushan Village.
89 90S u s t a i n a b i l i t y
Assisting Education Public Welfare Donations
We upholds our value of giving back to society and caring for education actively cooperates with the Huzhou Municipal Education In 2024 Jiuli Group further spread the concept of charity promoted the traditional Chinese virtue of helping those in need and actively
Bureau and the Municipal Charity Federation deeply participates in vocational education public welfare projects and invest in the organized and participated in various types of donation activities. In 2024 Jiuli Group's investment in the field of public welfare and
cultivation and growth of talents. Taking our industrial advantages we provide educational resources and assists in the practical charity amounted to 2.95 million RMB.implementation of "science education" related policies. Through the actions the company not only create pathways for young people
to succeed but also nurtured a large number of young talents with practical skills and innovative abilities for society fully demonstrat-
ing the company's responsibility and commitment in the field of public welfare and charity.[Honor]
The 6th "Jiuli Craftsmanship" Vocational Education Talent Award
On January 6 2025 Jiuli once again won the title of "Huzhou's Most Caringand Donating Enterprise."
On November 26 2024 the award ceremony for the 6th "Jiuli Crafts-
manship" Vocational Education Talent Award was held at Zhejiang
Information Engineering School where relevant leaders presented
awards to 31 award-winning teachers and students. The "Jiuli Crafts-
manship" Vocational Education Talent Training Award (Charity) Fund Blood Donation Activity
was jointly established by Jiuli Group the Municipal Education Bureau
and the Municipal Charity Federation in 2017. So far a total of 72
students and 83 supervising teachers in the city have received awards. On October 19 2024 Jiuli Group organized its 2024 annual blood donation activity with a total of 50 employees partici-
This initiative reflects Jiuli people's unremitting pursuit of the spirit of pated. 2024 is the 25th year that Jiuli Group has carried out blood donation activities. The people of Jiuli act on their
The 6th "Jiuli Craftsmanship" Vocational
model workers and craftsmanship and shows the company's advocacy Education Talent Award Ceremony sense of responsibility practicing their reverence for life and their responsibility to society.of skills and respect for talents.Shuanglin No. 2 Middle School Teachers and Students Visit Jiuli
for a Science Education
Jiuli actively cooperates with the Education Bureau's "science education" related policies and has become an important
academician science education base. In October 2024 teachers and students from Nanxun Shuanglin No. 2 Middle
School came to Jiuli Group for a visit getting a close-up experience of how "amazing steel pipes" are created. This activi-
ty enhanced the students' interest in science and promoted the cultivation of technology-oriented talents.Group photo of Shuanglin No. 2 Middle
School Teachers and Students’ Juli Visit Jiuli Group Blood Donation Activity Photo
91 92S u s t a i n a b i l i t y
Charity Day Donation" Activity Learning from Lei Feng Delivering Love
“Love carries us forward and every bit counts”. In mid-to-late September 2024 Jiuli Group launched the 2024 "Charity To promote the spirit of Lei Feng in the new era and inherit the traditional Chinese virtue of respecting and loving the
Day Donation" activity throughout the company. A total of 3654 people participated in this fundraising activity with a elderly on March 1st on the occasion of the 61st Lei Feng Memorial Day the Party Committee of Jiuli Group organized
donation amount of 391725 yuan. The people of Jiuli contributed to the cause of charity with practical actions creating volunteers to go to the New Era Civilization Practice Station in Loucun Village to carry out the theme activity of "Learning
a strong atmosphere of "everyone is charitable everyone does good." from Lei Feng in Spring Sending Warmth and Love" sending care and blessings to the elderly over 90 years old.Photo of Learning from Lei Feng Activity Members
"Charity Day Donation" Activity Photo
Visiting the Elderly on the Double Ninth Festival
Deep affection for the Double Ninth Festival warming hearts with visits. On October 9 2024 volunteers from the Party
Committee and Labor Union of Jiuli Group went to Zhenggang Village in the high-tech zone to carry out a visit to the
Volunteer Activities elderly with the theme of "Practicing Zhejiang's Etiquette Respecting and Loving the Elderly and Inheriting Chinese
Virtues" to make the elderly in the village fully feel the care and warmth from the caring enterprise. Jiuli Group has
To further fulfill its corporate social responsibility and promote the spirit of volunteer service Jiuli Group actively organizes various always dedicating themselves in giving back to the society being enthusiastic about public welfare and deeply practic-
volunteer service activities conveying the warmth of the enterprise with practical actions serving the public and letting volunteers ing the "Ten Etiquettes of Zhejiang" striving to build a civil and happy atmosphere.measure warmth with their footsteps and interpret their commitment with their actions.
2024
Registered volunteers: 2200 Total investment in volunteer services: 50000 RMB
Employee volunteer service hours:38890hours
Photo of Jiuli Group Volunteers Visiting the Elderly on the Double Ninth Festival
Average volunteer service hours per person: 18 hours
93 94S u s t a i n a b i l i t y
Subject
Key ESG Performance Disclosure 2024 matter Subject Matter Information Unit 2023 2024
Total Non-hazardous Waste Generated Tonnes 16000 16124
Waste Total Waste Recycled and Reused Tonnes 6879 8161
Environmental matters Management
Total Waste Disposed Tonnes 197 261
Proportion of Renewable Resource Consumption
Subject Subject Matter Information Unit 2023 2024 to Total Consumption
%10.038.68
matter
Environmental Protection Capital Investment 10000 RMB 4090 5980
Environmental
Compliance Number of Environmental Trainings Conducted Times 21 33 Social mattersManagement
Number of Participants in Environmental Training Person-times 3986 4688 Subject
matter Subject Matter Information Unit 2023 2024Direct (Scope 1) Greenhouse Gas Emissions Tonnes of CO2 equivalent 20248 22676
Indirect (Scope 2) Greenhouse Gas Emissions Tonnes of CO2 equivalent 73392 78227 Work Safety Investment 10000 RMB 1520.50 1722.5
Climate
Total Greenhouse Gas Emissions (Scope 1 and Scope 2) Tonnes of CO2 equivalent 93640.05 100902.93 Investment in Work Injury Insurance & ProductionChange Safety Liability Insurance 10000 RMB 205.23 574.7
Response Greenhouse Gas Emission Intensity Tonnes of CO2 equivalent / 0.109 0.092 Investment in Work Injury Insurance & Production (Scope 1 and Scope 2) (per unit of operating revenue) 100 100 10000 RMB Safety Liability Insurance ％
Greenhouse Gas Emission Reductions Tonnes of CO2 equivalent 996.57 991.86 Number of Employees Covered by OccupationalHealth and Safety Management System People 4126 4509
Carbon Emissions per Unit of Industrial Added Value Tonnes / 10000 RMB 0.46 0.41 Coverage Ratio of Employees by OccupationalHealth and Safety Management System % 100 100
Electricity 10000 kWh 12972 14881 Occupational Number of Recordable Work-related Injuries People 3 2
Health
Natural Gas 10000 m3 931 1048 and Safety Recordable Work-related Injury Rate % 0.07 0.04
Energy Steam Gigajoules (GJ) 99414 114467 Lost Work Days Due to Work-related Injuries Days 100 37
Management
Industrial Added Value 10000 RMB 204938 244678.30 Number of Work-related Fatalities People 0 0
Comprehensive Energy Consumption Tonnes of standard coal 52742.52 60252.57 Number of Occupational Disease Cases People 0 0
Energy Consumption per Unit of Industrial Added Value Tonnes of standard coal / 10000 RMB 0.26 0.25 Occupational Disease Incidence Rate % 0 0
Total Water Consumption Tonnes 1102500 1151126 Total Safety Training Hours Hours 41970 54326
Water
Resource Water Use Intensity Tonnes / Tonne of output 8.6 8.4 Average Safety Training Hours per Capita Hours 8 10
Management
Total Water Withdrawal Tonnes 873429 861601 Total Number of Employees People 4126 4509
Total Wastewater Discharge m3 114389 208380 Female % 14.49 14.15
Employee Ratio by Gender
Discharged Wastewater COD (Chemical Oxygen Demand) Tonnes 26.04 39.89 Male % 85.51 85.85
Discharged Wastewater Ammonia Nitrogen Tonnes 0.56 2.76 Below 30 % 25.02 27.29
Total Waste Gas Emissions m3 277842 159362 Employee Ratio by Age 30-50 years old % 58.63 57.45
Waste Nitrogen Oxides (NOx) Emissions Tonnes 1.69 12.22 Talent Above 50 % 16.35 15.26
Management Employment
Sulfur Oxides (SOx) Emissions Tonnes 0.05 0.24 andDevelopment Number of Ethnic Minority Employees People / 78
Volatile Organic Compounds (VOCs) Emissions Tonnes 0 0 Ratio of Ethnic Minority Employees % / 1.91
Suspended Particulate Matter (PM) Emissions Tonnes 0.19 1.3 Number of Disabled Employees People / 48
Total Waste Generated Tonnes 23076 24546.71 Ratio of Disabled Employees % / 1.17
Total Hazardous Waste Generated Tonnes 7076 8422.71 Number of Locally Hired Employees People / 3219
95 96S u s t a i n a b i l i t y
Subject
matter Subject Matter Information Unit 2023 2024
Subject
matter Subject Matter Information Unit 2023 2024
Ratio of Locally Hired Employees % / 78.72 Employee Amount of Welfare Benefits Distributed 10000 RMB 7784.30 8162.73
Right
Total Number of Management Staff People 204 221 Protection Number of Employees in Need Assisted People / 15
Management Staff Ratio Female % 11.27 15.38 R&D Investment Amount 10000 RMB 33934.50 36172.89
by Gender Male % 88.73 84.62 R&D Investment as a Percentage of Main Business Revenue % 4.2 3.46
Below 30 % 0.49 0.91 Number of R&D Personnel / 504 559
Management Staff Ratio by Age 30-50 years old % 80.39 75.11 R&D Personnel Ratio % 12.22 12.40
19.12 23.98 ResearchAbove 50 % and Number of New Invention Patent Applications / 20 19
Innovation
Total Number of New Employees People 452 629 Number of New Invention Patents Granted / 5 5
Female % 12.31 10.97 Number of New Utility Model Patent Applications / 7 23
New Employee Ratio by Gender
Talent Male % 87.69 89.03 Number of New Utility Model Patents Granted / 9 9
Employment
and 59.72 63.91
Development Below 30 % Total Number of Valid Patents / 119 128
New Employee Ratio by Age 30-50 years old % 39.06 35.45 Customer Satisfaction % 97.60 98.26
% 1.22 0.64 CustomerAbove 50 Service Number of Customer Complaints / 20 31
Total Number of Career Development Trainings Times 756 836 Number of Customer Complaints Resolved / 20 27
Total Investment in Career Development Training 10000 RMB 484.37 497 Total Number of Suppliers / 1016 1410
Employee Career Development Training Coverage Rate ％ 100 100 Supplier Localization Ratio % / 40.43
Supply
Average Career Development Training Hours per Employee Hours 12.15 22.57 Chain Localized Procurement Ratio % / 30
Management
Percentage of Employees Receiving RegularPerformance % 97.85 97.09 Percentage of new Suppliers Screened withand Career Development Reviews Environmental Standards % 100 100
Ratio of Employees Receiving Regular Female % / 14.04 Percentage of New Suppliers Screened with Social Standards % 100 100
Performance and Career
Development Reviews by Gender Male % / 83.05 Total Charity donation 10000 RMB 608 295
Ratio of Employees Receiving Management % / 24.72 Number of Employees Participating in Volunteer Activities / 2160 2200
Regular Performance and Career
Development Reviews Category Entry Level % / 72.36 Public Welfare Company's Total Investment in Volunteer Activities RMB 20000 50000
Total Employee Volunteer Service Hours Hours 38880 38890
Average Volunteer Service Hours per Employee Hours 18 18
97 98S u s t a i n a b i l i t y
Governance Matters INDEX
Subject
matter Subject Matter Information Unit 2023 2024
Number of Shareholders' General Meetings Held Times 4 2 Report Section GRI Standards Shenzhen Stock Exchange GuidelineNo. 17 ? Sustainability Report(Trial)
Number of Board of Directors' Meetings Held Times 12 7
Attendance Rate of Board of Directors' Members % 100 100 About This Report 2-1、2-2、2-3、2-4 Articles 4 6
Number of Supervisory Committee Meetings Held Times 7 5 Chairman's Address 2-6、2-16、2-17、2-22 —
Number of Board of Directors' Members People 11 11
Corporate About Jiuli 2-1、2-6 —
Governance Number of Independent Directors People 4 4 Sustainability Management 2-23、2-29、3-1、3-2、3-3 Articles 5 9 53
Number of Female Directors People 2 2
Sound Governance Strengthening 2-9、2-10、2-11、2-12、2-13、2-20、
Number of Audit Committee Meetings Times 6 6 Building Solid Corporate 2-23、2-24、2-25、2-26、3-3、 Articles 2 51 53 5455
Governance 205-1、205-2、205-3、207-1、405-1
Number of Remuneration Committee Meetings Times 1 1 Foundation for
Development Party Building — —
Number of Nomination Committee Meetings Times 2 0 Leads Development
2 1 Enhancing 3-3、201-2、302-1、305-1、305-2、Number of Strategic Decision Committee Meetings Times Climate Resilience Articles 20-28305-4、305-5
Business Number of Anti-corruption Trainings Conducted Times 1 16 Low-Carbon and Optimizing Energy Use 3-3、302-1、302-3、302-4、302-5 Articles 20 34-36
Ethics
Number of Participants in Anti-corruption Training Person-times 5 1800 Environmental Environmental
Compliance Management 2-27、3-3 Articles 29Protection Building
a New Chapter 2-27、3-3、301-2、303-1、303-2、
Promoting
of Sustainability 303-3、303-4、303-5、305-7、 Articles 30-3133-3537Clean Production
306-1、306-2、306-3、306-4、306-5
Practice Green
Operation 3-3、302-4、304-2 Articles 29 3436
Continuous R&D
and Innovation 3-3 Articles 41 42
Upholding Quality Upholding Product 2-23、2-24、2-25、2-27、3-3、
Innovating Leads Quality 416-2、418-1 Articles 44 4748
the Future Optimizing the
Customer Experience 2-23、2-24、2-25、3-3 Articles 44 47
Protect Information
Safey — Articles 48
Protect 2-27、3-3、403-1、403-2、403-3、
Safety First Occupational Health 403-5、403-6、403-7、403-9、403-10
Articles 50
Empowering Protecting
Employee Rights 2-7、2-23、2-24、3-3、401-1、401-2、Employee 407-1、408-1、409-1 Articles 49-50Development and Interests
Empowering
Employee Development 3-3、404-1、404-2、404-3 Articles 50
Responsible 2-23、2-24、2-25、2-27、3-3、
Responsible Supply Chain 204-1、308-1、308-2、414-1、414-2 Articles 44-45
Partnership
Gathering a Force Industry Connection 3-3 —
for Good Fulfilling Social
Responsibility 3-3、203-1、203-2、413-1 Articles 38 40
Key Performance Table — —
Index — —
99100
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