Stock Code：002353
EnvironmentalSocialand
Governance(ESG)Report
Yantai Jereh Oilfield Services Group Co. Ltd.EMST
ENS
YS
G
MS
SYS
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GEN
No.5 Jereh Road Laishan District Yantai 264003 China
Tel: +86-535-6723 166
E-mail: sales@jereh.com
Web: www.jereh.com @jerehgroup Jereh Group @jerehglobal Jereh GroupTable of Contents
About This Report 01
Setting Industry Benchmark Responsibility and
Message from the Chairman 03 Anchoring Sustainability Through Solid Governance with Craftsmanship and
Benevolence
Excellent Service Cultivating Public Welfare
About Jereh 05
Company Overview 05 Establishing a Governance System 23 Innovation-Driven Development 61 Protection of Employees' Rights and 105Interests
Industrial Layout 06 Regulating Compensation Management 24 Product and Service Quality 72 Corporate Responsibility Communication 118
Refining Investor Relations Management 24
Corporate Culture 07 Protection of Customers' Rights and 77
Interests Community Development Empowerment 120Protection of Shareholders' Rights and 26
Development History 08 Interests Strict Protection of Data Privacy 79 Overseas Public Welfare and Business 121Development
Annual Honors 09 Stabilizing Debt Management 26 Collaborative and Responsible Supply 82
Performance Highlights 11 Optimizing Risk Management 27
Anti-Commercial Bribery and Anti- 30
Corruption Afterword to the Report 123
Sustainable Development 13
Governance Anti-unfair Competition Management 32 Safety as the Priority:
Building A Comprehensive Key Performance Form 123Response to SDGs Goals 13 Protection Network Indexes 130
Sustainable Development 15
Philosophy
Intelligent Green Reader Feedback Form 132
Sustainability Governance Structure 15 Manufacturing Safe- Health and Safety Governance 91
Sustainable Development Risk 16 guarding Natural Habitats Health and Safety Strategy 93
Identification
Risk and Opportunity Management 94
Sustainable Development Capability 17
Enhancement Response to Climate Change 35 Setting Indicator Targets 99
Communications with Stakeholders 18 Environmental Compliance Management 41 Occupational Health Protection 99
Management of Material Topics 19 Recycling of resources 51
Protecting Ecosystems 552025 EnvironmentalSocialand
Governance(ESG)Report
About This Report Appellation Description
Company Name Abbreviation
Yantai Jereh Oilfield Services Group Co. Ltd. Jereh Group Jereh the Companyor We
Introduction Yantai Jereh Petroleum Equipment & Technologies Co. Ltd. Jereh Equipment
This is the third Environmental Social and Governance (ESG) Report (hereinafter referred to as the "Report") issued by Jereh Oil & Gas Engineering Corp. Jereh Oil & Gas Engineering
Yantai Jereh Oilfield Services Group Co. Ltd. ("the Company") aiming at providing stakeholders with a detailed disclo-
sure of the Company's ESG performance in 2025 and responding to ESG topics of critical concern to stakeholders. The Jereh Energy Services Corporation Jereh Energy Services
Company pledges to exercise oversight over the contents of this report ensuring its absence of any false records or
misleading representations and assuming responsibility for its truthfulness accuracy and completeness. For any Jereh New Energy Technology Co. Ltd. Jereh New Energy
discrepancy between the Chinese version and the English version the Chinese version shall prevail.Jereh New Energy Regeneration and Recycling Technology Co. Ltd. Jereh New Energy Regenerationand Recycling
Reporting Period Jereh Bangda Environmental Protection Technology Co. Ltd. Jereh Bangda
This report covers the period from January 1 2025 to December 31 2025. To improve the comparability and perspective- Hanchuan Ruima Environmental Technology Co. Ltd. Hanchuan Ruima
ness some sections of this report may extend appropriately to previous and subsequent years.Dezhou United Petroleum Technology Corp. Dezhou United Petro
Reporting Scope Jason Energy Technologies Co. Ltd. Jason Energy
This report focuses on Yantai Jereh Oilfield Services Group Co. Ltd. including its branches and subsidiaries. Unless other- Yantai Jereh Power-Tech Co. Ltd. Jereh Power-Tech
wise specified the scope of this report is consistent with that of the Company's Annual Report.Jereh Hengri Natural Gas Engineering Jereh Hengri
Preparation Basis Jereh Agile Power Energy Jereh Agile Power Energy
Shenzhen Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 17 - Sustainability Report (for Trial Imple- Shandong Jereh Catech Technology Co. Ltd. Jereh Catech
mentation)
Shenzhen Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 3 - Preparation of Sustainability Reports Yantai Jereh Machinery Equipment Co. Ltd. Jereh Machinery
Ministry of Finance of the People's Republic of China Corporate Sustainability Disclosure Standards—Basic Standards (for
Trial Implementation)
Sustainability Reporting Standards of the Global Reporting Initiative ("GRI Standards 2021") Access to this Report
China Enterprise Reform and Development Society "Guide to Corporate Sustainability Reporting in China" (CASS-ESG 6.0)
China National Standardization Administration Committee (CNSA) Guidelines for Preparing Social Responsibility Reports The electronic version of this report is available for download at the websites of Shenzhen Stock Exchange (http://ww-
(GB/T 36000-2015) w.szse.cn) cninfo (http://www.cninfo.com.cn) or the Company (https://www.jereh.com) where you can find further
Disclosure Framework of the Task Force on Climate-related Financial Disclosures (TCFD) insights about the Company.UN Sustainable Development Goals (SDGs) 2030
Sustainability Accounting Standards Board Standards SASB (SASB Standards) Reader Feedback
To continuously strengthen the quality of ESG disclosure improve the Company's ESG management level and enhance
Data Explanation the recognition of value in the capital market we are hereby soliciting reader feedback on this report (please refer to Appendix II "Reader Feedback Form" for details) and kindly request readers to send their feedback to the Company's
email (zqb@Jereh.com).All data sources used in this report include public data from government agencies the actual operational data annual
financial data internal statistical reports of the Company third-party questionnaire surveys third-party evaluations or
interviews etc. Unless otherwise specified all amounts in this report are expressed in RMB. For any discrepancy
between this report and the Annual Report the Annual Report shall prevail.
01 022025 EnvironmentalSocialand
Governance(ESG)Report
Message from the Chairman V. Moving Forward with Goodwill to Fulfill Social ResponsibilityGuided by the principle of "To be a responsible individual" we fulfill our societal responsibilities with a spirit of generosity.Initiatives such as the "Employee Care Fund" and "Family Open Day" ensure that the fruits of enterprise growth benefit
Time flows swiftly yet our original aspirations remain unwavering. Gazing back at 2025 the global economic landscape employees and their families. In 2025 under the leadership of Chief Founder Mr. Sun Weijie with joint contributions from
experienced profound adjustments as geopolitical dynamics intertwined with AI technological transformation. Amid Founders Mr. Wang Kunxiao and Mr. Liu Zhenfeng the "Public Welfare Foundation" was established creating a multidi-
waves of uncertainty a vigorous new quality productivity force is emerging. Throughout this period we have remained mensional charity and public welfare network with a wider coverage contributing to community education critical
steadfast in our core values driven by relentless innovation embracing both the challenges and opportunities of the era healthcare and other public welfare initiatives. Meanwhile we actively practice community responsibility in our
and crafting a brand-new blueprint for Jereh's high-quality and sustainable growth. overseas locations through activities such as visiting nearby villages and supporting orphanage schools endeavoring to
extend warmth and goodwill to every corner of our operations.I. Revamping Corporate Governance to Enhance Organizational Efficacy With the wind and tide on our side we are called to sail with courage; and with immense responsibilities ahead we must
Corporate governance serves as the cornerstone of Jereh's sustainable and resilient development. In 2025 in alignment advance with unwavering resolve. At this pivotal juncture we will continue to be guided by the principles of sustainable
with the requirements of high-quality governance we canceled the Supervisory Board and further refined the modern- development strengthen our foundations through governance optimization expand our horizons through business
ization governance structure encompassing the "Board of Directors – Management – Specialized Committees". By breakthroughs and demonstrate social commitment with sincerity and warmth. Together with our global partners and
streamlining organizational layers and enhancing the Board's strategic decision-making and risk control functions we dedicated employees we move forward to shape a promising future!
achieved a leapfrog elevation in governance effectiveness. Concurrently we undertook a comprehensive review and
revision of our governance policies to ensure every facet aligns with contemporary requirements and market expecta-
tions. Safeguarding shareholder interests remains central to our governance practice and we continue to reinforce trust
through robust operational performance and transparent communication mechanisms constantly boosting a harmoni-
ous integration of governance system business growth and societal value.II. Embracing the AI Revolution to Co-build a Smart Energy Ecosystem
With global digitalization accelerating and AI computing demands soaring North America's data center sector is riding
a wave of unprecedented expansion. Next-generation computing power infrastructure exemplified by Artificial Intelli-
gence Data Centers (AIDC) imposes higher requirements on energy systems for reliability responsiveness flexibility
and sustainability. Drawing upon our extensive experience in oil and gas development and energy equipment manufac-
turing we have established a "Gas-to-Power" solution spanning the full value chain—from gas source treatment gas
pressurization clean power generation and intelligent regulation. This enables the provision of tailored low-carbon
integrated energy solutions across diverse scenarios. Our successful entry into the data center sector marked by multi-
ple gas turbine generator contracts underscores our commitment to powering technological transformation with clean
and abundant energy. Guided by a steadfast green development philosophy we continue to deepen our engagement
in the low-carbon energy sector delivering more reliable and intelligent energy infrastructure while co-creating a
sustainable forward-looking smart energy ecosystem.III. Upholding Open Collaboration to Foster Shared Prosperity
We maintain an open mindset creating opportunities through collaboration and jointly addressing challenges with
global partners. While consolidating our industrial leadership in the Chinese market we actively respond to the "Belt and
Road Initiative" deepening collaboration with partners across the Middle East Central Asia and beyond to jointly
advance high-quality sustainable development within the energy sector. By signing strategic cooperation agreements
on gas turbines with internationally renowned companies such as Siemens Baker Hughes and Kawasaki we are
forging a resilient supply chain while collaborating with global partners to jointly create value.IV. Prioritizing Safety in Protection to Safeguard Employee Wellbeing
Consistently adhering to the HSE principle of "Safety First" we place employee occupational health and safety at the
forefront of our operations ensuring that safety permeates every aspect of production and operational activity. We
continue to invest in safety production improve safety management systems and enhance safety education and
training to elevate overall safety levels. Through daily hazard checks emergency drills and various safety activities we
strengthen employees' safety production awareness. Coupled with policies and systems such as the HSE Assessment
and Incentive Management Regulations we empower every employee to participate in safety management to
constantly reduce occupational risks and foster a safe reassuring and healthy environment. Anchored in a
"people-first" philosophy we respect all employees regardless of nationality culture race gender or age unequivocally
rejecting all forms of enslaved labor forced labor and child labor. On our journey toward internationalization we actively
prompt multi-cultural integration and employee happiness and sense of belonging to the corporate culture through Jereh Group Chairman Li Zhiyong
annual gatherings sports events and International Women's Day activities. Together with our employees we move
forward toward a better tomorrow.
03 042025 EnvironmentalSocialand
Governance(ESG)Report
About Jereh Industrial Layout
Oilfield Equipment: We provide customers with a full range of oilfield development solutions and
Oil continuously develop cutting-edge products based on unconventional energy development covering
Segment more than 170 kinds of equipment: cementing fracturing coiled tubing equipment nitrogen generation Company Overview and pumping equipment high-pressure fluid products etc.Oil & Gas Field Services: Main businesses include smart oilfield solutions geological and reservoir
research services integrated drilling and completion stimulation oil recovery operation and mainte-
nance management downhole tools etc.Jereh is the first oil service company in China that has passed
the API Spec Q2 Certification.Oil & Gas Engineering: Jereh focuses on oil & gas field surface engineering gas processing and LNG
engineering natural gas gathering transportation storage and combined energy. We provide integrat-
1999 24 7000+ 70+ ed solutions from feasible plan engineering design procurement to equipment manufacturing construc-tion management start-up operation and maintenance.
Establishment first-level employees countries and regions Oil & Gas Development: Jereh holds four major oil and gas field blocks in Canada and Iraq covering a
date subsidiaries worldwide total area of approximately 160620 acres. These blocks are designated for the development of uncon-
ventional tight shale oil and gas resources with total recoverable reserves estimated at around 1 billion
barrels of oil equivalent.Founded in 1999 Yantai Jereh Oilfield Services Group Co. Ltd. (Stock Code: 002353.SZ) is a global listed company that Oilfield Digitalization: Providing intelligent solutions for the global oil and gas industry covering the
focuses on high-end equipment manufacturing oil and gas engineering and technical services oil and gas field develop- entire chain from exploration and development to production and operations empowering the industry
ment and new energy and recycling sectors. The Company has 24 first-level subsidiaries with more than 7000 employ- to achieve efficient and secure digital transformation.ees. The Company continues to deepen its operations in traditional oil and gas sectors while actively expanding into new Environmental Equipment: Jereh has independently developed and manufactured high-end stable
energy and environmental protection industries. It now owns ten major industrial parks including petroleum equipment efficient and smart equipment for environmental protection while promoting technology innovation in
manufacturing natural gas equipment manufacturing oilfield engineering and technical services and new energy addition to providing customers with cleaner and more efficient integrated solutions.anode materials and has established global branches or offices in more than 50 cities promoting products services
and integrated solutions to over 70 countries and regions worldwide.Natural Gas Equipment: Covering the full natural gas industry chainIts business covers products
Natural Gas including natural gas boosting equipment natural gas regulating equipment process equipment. These
Segment products are widely used in gas storage injection and withdrawal pipeline boosting gas processing fuel
gas boosting acid gas injection biogas CBM transportation CNG stations LNG plants associated gas
power generation CBM power generation refrigerant compression and chemical applications.Data Center Power: Building a comprehensive capability system of Power Equipment + Power Services + Customized
& Power Solutions we deliver highly reliable and adaptable power products and solutions for diverse industries
Segment such as data center oil and gas fields industrial manufacturing municipal emergency power and marine & offshore engineering.Anode Materials: Focus on the development of key anode materials for new energy batteries improv-
New Energy ing battery quality through exploration of basic materials and breakthroughs in key equipment technolo-
gies.Lithium-ion Battery Recycling: Independently develop integrated lithium battery recycling solutions
promoting intelligent greenand standardized development and an integrated development of the
industrial chain.Wind Turbine Blade Recycling: Committed to deliver innovative solutions for the efficient recycling and
sustainable reuse of decommissioned wind turbine blades fostering a green efficient and scientific
industry ecosystem for the circular economy of wind materials.Photovoltaic Module Recycling: Committed to deliver innovative solutions for the efficient recycling
and sustainable reuse of all components from decommissioned photovoltaic modules fostering a
standardized and intelligent industry ecosystem for the circular economy of photovoltaic materials.
05 062025 EnvironmentalSocialand
Governance(ESG)Report
Corporate Culture Development History
In the growth journey of Jereh Group corporate culture serves as a spiritual bond connecting every employee and 1999 2000 2001 2002 2003 2004
directs the development path of the Company like a navigation lighthouse. Jereh's corporate culture not only profoundly Startup
influences the thinking and behavior of every Jereh person but also continuously leads the Company towards the vision Established Jereh Presence in the Good Start of Jereh Established We had our first Ventured into the Oilfield Industry Brand production and office building Natural Gas Sector
of "to be an enterprise respected by people all around the world". R&D departments Engaged in the Rebuilt a severely and started the Independently Successfully
supply of oilfield damaged RR1500 journey of developed our first developed Jereh's
imported accessories frac pumper independent oilfield equipment first natural gas
Core Values Focus on customer needs value employees' dedication self-reflection and continu- and equipment development of for offshore drilling compressor unit
ously strive to be the best. repair service oilfield equipment platforms
Creating value for customers generating wealth for society offering opportunities
Our Purpose for employees delivering returns for investors and ensuring growth for Jereh's
future.Our Mission Focus on customers' challenges and pressures and provide competitive solutions
that create maximum value for them.
2012 2011 2010 2008 Global Expansion 2006 2005
Our Goal Build an international brand and achieve a century of excellence for Jereh! Jereh was the first and Launched the New Initial Public Established American Expanded into the From China to World
only oilfield equipment Branding Logo Offering Jereh Corporation Oilfield Services
manufacturer in China to Industry Independently
provide frac fleet Opened a new era developed and
including E-Frac and of development Provided services in exported first oilfield
Our Vision To be an enterprise respected by people all around the world. Turbine Frac for U.S. offshore platform slurry mixing system
shale gas development owned by
ConocoPhillips
Our Spirit Always look forward. Never give up. Nothing is impossible.Our Credo Doing well requires dedication. Opportunities come with effort. No pain no gain. Diversification 2014 2015 2019
Expanded into Oil and Gas Engineering Developed Initiated Electric Fracturing Solution
Quality Strategy Strive to create perfect quality with passion and dedication. Make improvement
Environmental
Launched the world's first Apollo 4500hp fracturing Management Industry Promoted the green development
step by step each day. equipment ushering in the era of new-energy of unconventional oil and gas
fracturing Established Jereh resources such as shale gas
Environmental
Built China's first shale gas LNG liquefaction plant Protection Technology
promoting the commercialization of China's shale gas
Talent Philosophy Always Seek the Most Outstanding People. Co. Ltd.(now renamed as Jereh New Energy
Regeneration and
Recycling)
Service Philosophy Focus on customer needs and be dedicated to exceeding customer expectations !
March on
New Energy
Market Philosophy The market does not believe in tears! Only results matter. 2025 2024 2023 2022 2021 Industry
Generator sets entered the North Initiated the Achieved Industry DUPT Went Public Expanded into the New Energy
American data center market construction of a Breakthroughs Industry
HSE Philosophy Safety always comes first! providing the world with more Middle East equipment reliable and intelligent energy manufacturing base Developed the new Won a 2.7 billion yuan contract for oil
infrastructure solutions generation of and gas treatment EPC project of
Won a number of lithium-ion battery Kuwait Oil Company
Established the Sun Weijie Public overseas oil and gas recycling equipment
Integrity is the essence of compliance. Welfare Foundation field development orders to fuel global
Compliance energy developmentCompliance creates value. Compliance operation is the guarantee of Jereh's sustain-
Principles able development. Compliance is the bottom line of business operation and always
comes in the first place in case of any conflicts between business and compliance.
07 082025 EnvironmentalSocialand
Governance(ESG)Report
Annual Honors Jereh Equipment
China Brand Value Ranking – 2 n d in 2025 "Morning Star Factory" in
Independent Innovation Shandong's Digital Economy
China Council for Brand Development Industry and Information Technology
Department of Shandong Province
Jereh Group
2024 Yantai City Science and Technology Innovation Achievement Competition
First and Second Prizes in Science and Technology Progress
China Brand Value Ranking Yantai Municipal Government Office
Top 100 Global Innovators – 16t h in Machinery
LexisNexis Manufacturing
China Council for Brand Development
Jason Energy
Investor Relations Management Outstanding Contribution Enterprise for
Best Practices for Listed High-Quality Development of Private
Companies Economy in Shandong Province
China Association for Public Companies Shandong Development and Reform Commission 2025 "Morning Star Factory" in
Industry and Information Technology Department Shandong's Digital Economy Yantai Green Factory
of Shandong Province
Industry and Information Technology Yantai Municipal Bureau of Industry and
Department of Shandong Province Information Technology
Top 200 Private Enterprises in Shandong Top 100 Innovative Private Enterprisesin Shandong
Federation of Industry and Commerce Federation of Industry and Commerce
of Shandong Province of Shandong Province
Jereh Oil & Gas Engineering
Top 100 Private Enterprises for Employment Tianma Award for Investor Relations
Contribution in Shandong Province Management
Federation of Industry and Commerce
of Shandong Province Securities Times 16 t h Industrial Construction Gold Award
of the Kuwait Society of Engineers
Golden Bull Award for Listed Companies - Golden Bull Award for Listed Companies -
Most Valuable Investment Award Golden Information Disclosure Award Tamilnadu Engineers Forum(TEF)
China Securities Journal China Securities Journal
Guoxin Cup · ESG Golden Bull Award Quanjing Investor Relations Gold
Top 100 Award – Outstanding IR Company
China Securities Journal p5w.net
Quanjing Investor Relations Gold Award – Quanjing Investor Relations Gold Award –
Outstanding Market Value Outstanding Institutional Investor
Management Award Attention Award
p5w.net p5w.net
Quanjing Investor Relations Gold Award –
Outstanding Small and Medium "SSE Eagle · Gold Quality" ESG Award
Investor Concerns Award Shanghai Securities News
p5w.net
Golden Dawn Award ESG Practice Award 2025 Virtuous Enterprise
Securities Market Weekly Towards a Bright Future
09 102025 EnvironmentalSocialand
Governance(ESG)Report
Performance Highlights
Business Performance Governance Performance
Formally signed the DQSP storage gas Signed gas turbine generator set sales General Meeting Board of Directors Compliance Training
centrifugal compressor supply contract contracts with two clients in North America
with a cumulative contract value exceeding of Shareholders3Times 11Times 218Times
amounting to over RMB 500 million
USD 200 million
Signed a localization manufacturing Won the Brunei onshore natural gas receiving Legal Training32Times Business Ethics Violations0Case
cooperation agreement for high-end terminal general contracting project with a
equipment products with ADNOC Drilling
deepening the cooperative relationship project value exceeding USD 100 million
Environmental Performance Social Performance
Environmental investment1514.05 Investment in R&D Total Number of Patents Granted
Total GHG emissions53070.96tCO2e
RMB 10000 55109.99RMB 10000 2122case
GHG emission intensity 0.0327 Conforming rate observed in pollutant monito- Investment in work safety Percentage of female employees
tCO2e/RMB 10000 revenue ring100% 3820.68RMB 10000 12.57%
Synchronized operation rate of environ- Compliance rate of "three simultaneities" Social Insurance Coverage Number of Employee Training
100 in environmental protection for construction mental facilities %
100 Rate100% Sessions2912Sessionprojects %
Incidents of Violation of Laws and Regula-
tions in the Environmental Field0Case
11 122025 EnvironmentalSocialand
Governance(ESG)Report
Sustainable Development SDGs Our Actions Our Planning
Governance Establish a fair compensation system Optimize skill-based incentive mecha-
and multi-dimensional employee prom- nisms promoting stable employment
otion channels ensuring compliant work- opportunities along the upstream and
ing conditions. downstream of the industrial chain.Response to SDGs Goals Adhere to the "product leadership" Continuously advance technological strategy tackling core technologies in innovation expand new energy material
oil and gas/new energy equipment and R&D and upgrade intelligent production
upgrading product performance. facilities.SDGs Our Actions Our Planning Ensure equal workplace opportunities Provide flexible cooperation support to
for employees and optimize the fair small and medium-sized suppliers and
Rely on oil and gas/new energy equipment su- Deepen cooperation with small and med- cooperation rules system with suppl- conduct supply chain collaborative capa-
pply chain cooperation to drive local employm- ium-sized suppliers in underdeveloped iers. bility enhancement training.ent expansion among suppliers and activate areas providing production skills training
regional industrial support vitality. to help stabilize their operations and incr-
ease income. Participate in industry discussions on Carry out environmental protection and
green transformation supporting low- public welfare activities in surrounding
carbon development practices across communities promoting low-carbon
Participate in regional development support th- Expand long-term engagement models the industry. living and green development concepts.rough public welfare and charitable activities for public welfare and charity building
contributing to the improvement of local living sustainable collaboration channels with
and development environments. supported regions. Optimize production energy consump-
tion and waste discharge management Establish product low-carbon manage-
incorporating low-carbon indicators into ment records improving recycling and
supplier evaluation criteria. reuse of production materials.Provide employees with annual health checkups Upgrade the workplace health service sy-
and workplace health protection resources and stem extending professional guidance
conduct occupational health knowledge awar- and support for employees' physical and Develop low-emission equipment
eness activities. mental well-being. products and promote plant Set annual low-carbon action targets
energy-saving and carbon-reduction and improve corporate climate manage-
technology upgrades. ment guidelines.Establish an internal talent development system
carry out various skills training programs and Optimize internal training resources and
enhance employees' professional capabilities improve the full-cycle employee growth
and overall competence. and development mechanism. Strengthen full-process control of pro-
Upgrade advanced wastewater treat-
duction wastewater to ensure compli- ment facilities promoting near-zero pol-
ant discharge. lution management practices for pro-duction wastewater.Implement gender-neutral recruitment and
promotion mechanisms and carry out female Introduce leadership development courses Participate in the R&D and application of
employee career development empowerment for female employees expanding support Expand the collaborative application sce-
programs. systems for management positions.oil sludge resource utilization and soil
ecological remediation technologies narios of soil ecological remediation
contributing to ecological improvement technologies deepening cooperation in
of contaminated sites. ecological governance.Optimize water circulation processes in produc- Upgrade water-saving facilities in produc- Adhere to compliant operations and Enhance ESG information disclosure
tion improving industrial water recycling effici- tion areas continuously optimizing the improve internal management sys- mechanisms improve corporate gover-
ency. management of water reuse and recycling. tems such as intellectual property and nance transparency and eliminate all
information security. forms of corruption and bribery.Increase investment in clean energy equipment Explore the application of distributed clean Collaborate with clients and suppliers to Deepen the green supply chain along the R&D to support customers' low-carbon operatio- energy facilities in plants increasing the promote low-carbon equipment appli- upstream and downstream of the indus-ns; promote energy efficiency upgrades in plant share of clean energy usage in operations. cation and participate in industry sus- try regularly publish ESG reports and areas. tainable development exchanges. engage in multi-party communication.
13 142025 EnvironmentalSocialand
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Sustainable Development Philosophy ESG Management Structure and Responsibilities
Jereh Group takes sustainable development as a long-term orientation actively responding to development trends
formulating and dynamically revising the Environmental Social and Corporate Governance (ESG) Management System Determine the Company's ESG strategy and goals;
adhering to the sustainable development concepts of innovation coordination greenness openness and sharing Identify and monitor ESG-related risks and opportunities that have a signif-
and systematically promoting the implementation of environmental protection social responsibility and corporate icant impact on the Company's business;
governance practices. At the same time the Company respects and protects the rights of stakeholders throughout Make decisions on significant ESG-related matters including but not
its operations continuously improves internal control and risk management systems enhances the standardization Board of Directors limited to ESG management systems ESG reports etc.;
and transparency of information disclosure thereby promoting the harmonious integration of economic and social Supervise the implementation of ESG development directions and strate-
benefits and advancing the Company toward sustainable high-quality development. gic goals.Jereh Group's Sustainable Development Philosophy Implement the Company's ESG development strategy and goals organize
and arrange each unit to carry out ESG work;
Organize each unit to identify risks and opportunities related to ESG topics
preliminarily review the identification results and report to the Board of
Innovation Coordination Green Directors;
Responsible for drafting ESG system documents related topics phase
Establish an R&D incentive and Integrate internal resources clar- Promote equipment energy-saving work plans and implementation schemes etc.;
results transformation system ify management responsibilities and consumption reduction across Responsible for collecting and compiling the Company's ESG information
focus on core technology iteration and optimize process coordina- all scenarios empower green preparing ESG reports and related documents;
and upgrading improve the inno- tion through cross-department energy development and clean ESG Working Group Responsible for communicating with consulting and rating agencies
vation trial-and-error and imple- collaboration mechanisms to energy expansion and establish organizing ESG business training tracking ESG policy requirements and
mentation support mechanism achieve efficient organizational normalized environmental compli- trends;
and support the Company's synergy. ance control processes practicing
long-term development through green development requirements Summarize problems and results in ESG work promptly report ESG work to
continuous enhancement of tech- across the full chain of operations. the Board of Directors and propose rational suggestions.nological capabilities.Responsible for coordinating ESG work in each unit;
Openness Sharing ESG Work According to the work deployment of the ESG working group and depart-
Coordination ment responsibilities cooperate in carrying out relevant ESG work.Organization
Participate in industry sustainable devel- Empower employee career development
opment discussions exchange manage- and capability improvement share devel-
ment experience with peers and expand opment dividends with investors collabo-
collaborative dimensions of corporate rate with all sectors of society exchange
development through open interaction. experiences integrate resources and Sustainable Development Risk Identification
achieve positive value interaction among
stakeholders.Based on its development strategy and actual operational scenarios Jereh Group integrates ESG factors into the
comprehensive management framework systematically identifying and assessing ESG-related risks and opportuni-
ties formulating and implementing corresponding control measures creating a management loop from risk identifica-
tion to effectiveness improvement thereby strengthening proactive ESG risk management and forward-looking
Sustainability Governance Structure deployment capabilities.In 2025 the Company has preliminarily completed core ESG risk identification including response to climate change
environmental management pollutant emissions R&D and innovation product quality supply chain sustainability
To efficiently implement sustainable development strategic planning Jereh Group has established a three-tier ESG occupational health and safety production. The identification of various risks and opportunities is detailed in the
management structure with clear responsibilities and hierarchical management. The Board of Directors leads ESG corresponding sections below.strategic decision-making the ESG working group coordinates implementation and each functional department and
subsidiary executes specific tasks. With clear hierarchical division and efficient coordination the Company achieves
full-chain integration from top-level design to frontline practice effectively translating sustainable development vision
and stakeholder commitments into compliant actionable practices.
15 162025 EnvironmentalSocialand
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Sustainable Development Capability
Enhancement Communications with Stakeholders
Jereh Group values communication with stakeholders and has established a normalized multi-dimensional communi-
cation mechanism. During the reporting period the Company strictly followed international standards such as GRI
Professional Competence and AA1000 Stakeholder Engagement Standards continuously broadened communication channels innovated
dialogue forms fully responded to stakeholder expectations and requirements absorbed suggestions promoted
Jereh Group focuses on cultivating ESG professional competence and practical capabilities by organizing ESG-specific consensus and achieved more efficient and inclusive sustainable communication.training trend interpretation internal interviews and report preparation workshops continuously enhancing employ-
ees' understanding and recognition of sustainable development strategies deeply integrating ESG into job responsi- Stakeholders CommunicationChannels Concerns Countermeasuresbilities and business processes and promoting full conversion from ESG awareness to action.Enhance product quality
Case Product quality Customer Satisfaction Manage-
Jereh Group's 2025 ESG Report Kick- Customer satisfaction survey High-Quality Service ment
off Meeting and Annual ESG Training Daily Visits/CommunicationCustomers Information Protection Protecting Customers' Privacy
Innovation-driven Promote scientific research and
In November 2025 the Company convened the 2025 innovation
ESG report project kick-off meeting and annual ESG
training calling for participation by heads of all busi-
ness units. The meeting focused on ESG policy inter- irm.cninfo.com.cn
pretation market trends and risk alerts industry prac- General meeting of shareholders Safeguarding stakeholders' rights Conduct investor relations
and interests activitiestice discussions and company status analysis system- Information disclosure
atically enhancing ESG awareness practical applica- Optimize risk governance structure
Shareholders or Official website
Risk Management
tion and data management capabilities of key person- Information Disclosure Enhance information disclosureWeChat Official Account
nel to ensure high-quality and professional ESG work. Investors Promote performance growth
ESG Report Project Kick-off Meeting and Investor relations events
Return and Growth continuously
Annual ESG Training Investor Hotline & Email
Establish multi-channel career
Brand Influence Career Development development systemEmployee Interaction Forum
Humanistic care Employee support
Jereh Group continuously communicates externally adhering Employee Appraisal Formulate a scientific remuneration
to high-quality information disclosure actively responding to Employees Compensation and benefitsEmployee activities system
investor concerns and integrating sustainable development Occupational Health and Safety Implement regular medical
into corporate operations forming a complete system from check-ups and safety production
internal governance to external recognition from concrete
practice to value transmission. During the reporting period Supplier assessment Win-win cooperation Facilitate exchanges and visits
the Company received multiple honors for solid ESG practice Supply chain management Improve supply chain system
achievements including "Outstanding Sustainable Develop- On-site audits
ment Practice Case of Listed Companies 2025 by the China Suppliers Daily communication Transparent procurement Compliant procurement
Listed Companies Association" "SSE Eagle Gold Quality ESG
Award" "Guoxin Cup ESG Golden Bull Award Top 100" "2025 Promotion of local development Respond to national policy calls
Best ESG Practice Award for Listed Companies" and "For Paying taxes in accordance with Pay taxes actively
Good Awards 2025 Virtuous Enterprise" gaining high recogni- Guoxin Cup ESG Golden Bull Supervision and inspection law
Award Ceremony Practice integrity and compliance tion from capital markets and the industry for its ESG effec- Governmental or Visitor Reception management
tiveness further highlighting the Company's benchmark role regulatory agencies
Compliant operations
Business ethics and anti-corruption Conduct anti-corruption and
and brand influence in ESG. integrity management
Environmental management Promote green development
Performance Appraisals Welfare activities Public welfare and charity
Enthusiastically participate in public
Community and welfareCommunity development and
While continuously improving the ESG governance structure Jereh Group explores mechanisms linking ESG indica- the Public support Actively engage in community construction
tors with compensation and performance evaluation. The Company has incorporated key ESG indicators such as
response to climate change environmental compliance management and occupational health and safety into Make timely disclosure of informa-News reports Information disclosure tion through official channels
senior executives' personal performance commitments with corresponding scoring standards achieving coordinat- Media interviews Establish a media communication
ed assessment and incentives further strengthening management's sustainable development responsibilities and Media Smooth communication system
ensuring effective implementation of ESG strategies and objectives.
17 182025 EnvironmentalSocialand
Governance(ESG)Report
Management of Material Topics ESG Matrix of Material Topics
Very
01 Environmental compliance manage-
In accordance with domestic and international ESG disclosure standards such as the Shenzhen Stock Exchange high ment
Self-Regulatory Guidelines for Listed Companies No. 17 - Sustainability Report (for Trial Implementation) and in combina- 02 Energy Utilization
tion with internal development strategy Jereh Group starting from the dual assessment perspectives of impact 03 Response to Climate Change
materiality and financial materiality carried out online questionnaire surveys and routine communication to provide 13 04 Circular Economy
in-depth insights into the needs of stakeholders and identify material topics. 06
05 Water Resource Utilization
Steps to Identify Material Topics 14 11 06 Pollutant Emissions
16 03 07 Waste Disposal01
08 Protection of Ecosystem and 07 Biodiversity
04 09 Employee Rights Protection
Learn about company Establish a list of Conduct stakeholder Analyze the Determine the 08 09 12 10 Employee Training & Development
background material issues survey materiality of topics priority of topics 10 11 Occupational health and safety
18
05 12 Research and Development Innovation Gain a deep under- Make a thorough anal- Implement an online Systematically screen The Board of Directors 02 17 & Intellectual Property Protection
standing of the Com- ysis of domestic and questionnaire survey topics in terms of both and the management
pany's internal opera- international ESG stan- and routine commu- financial materiality of the Company 15 13 Safety and quality of products and 20
tions and business dards in accordance nication and actively and impact materiality review the assess- services
connections assess with the guidance of invite internal and and conduct empirical ment results of mate- 14 Information Security and Privacy
the objective condi- national macro policies external stakeholders analysis of material rial topics based on Protection19
tions of the external and in combination to participate in topics. the Company's strate- 15 Supply Chain Management
environment analyze with the Company's assessing the materi- gic positioning and Social Contribution
the ESG impacts risks own development ality of ESG topics. expert judgment and 16
and opportunities strategy and market ultimately output the 17 Anti-Bribery and Anti-Corruption
present in various demand and establish matrix of topics with 18 Anti-Unfair Competition
operational links and a systematic list of impact materiality 19 Due Diligence
simultaneously gain material topics closely and financial material-
insight into stakehold- related to the Compa- ity. 20 Communications with StakeholdersVery
ers' demands and ny's development by Materiality of Financial Impact
expectations. reference to the good high
practices of outstand- Both Financial Materiality and Impact Impact materiality but not financial
ing companies in the Materiality materiality
industry.Financial materiality but not impact Neither Financial Materiality nor Impact
materiality Materiality
During the reporting period the Company comprehensively considered business layout operational models indus-
try trends and focus areas continuously tracked stakeholder feedback applied expert evaluation for comprehen- Impact Materiality Topics
sive judgment and confirmed that material issues remained consistent; the 2025 ESG materiality matrix remains
unchanged from the previous reporting period.Environmental Compliance Management Response to Climate Change Pollutant
Double Materiality Emissions Occupational Health and Safety R&D and Innovation Protection of
Intellectual Property Rights Safety and Quality of Products and Services
Financial Materiality
Only Supply Chain Management
Impact Materiality Circular Economy Waste Treatment Protection of Ecosystem and Biodiversity
Only Protection of Employees' Rights and Interests Employee Training and Develop-ment Information Security and Privacy Protection Contribution to Society
General Materiality Energy Utilization Water Utilization Anti-Commercial Bribery and Anti-Corruption Anti-Unfair Competition Due Diligence Communication with Stakeholders
1920
Importance to economic social and environmental impacts2025年度环境、社会和公司治理报告
Anchoring Sustainability
Through Solid Governance
Jereh Group continuously improves its governance structure and risk management system ensuring compliant
business operations accurate and complete information disclosure smooth investor communication strict adherence
to business ethics and a robust anti-corruption risk control loop thereby reinforcing a stable transparent and
efficient corporate governance foundation and systematically advancing governance modernization.Responded UN Sustainable Development Goals (SDGs):
21 222025 EnvironmentalSocialand
Governance(ESG)Report
Establishing a Governance System Board of Directors
The Board of Directors as the Company's decision-making body is accountable to the Shareholders' Meeting. The Board
has four specialized committees—Strategy Remuneration and Assessment Audit and Nomination—and has estab-
Governance Structure lished Rules of Procedure for the Board Meetings and committee-specific rules to ensure standardized operations.Regarding board independence the Company established the System of Work of Independent Directors specifying qualifi-
Jereh Group strictly adheres to the Company Law of the People's Republic of China the Securities Law of the People's cations and independence requirements for independent directors. By the end of the reporting period the Board had
Republic of China Guidelines for the Articles of Association of Listed Companies and Transitional Arrangements for the three independent directors; during the period they effectively performed supervisory and advisory duties with no
Implementation of Supporting Rules for the New Company Law and in October 2025 comprehensively optimized and incidents of related-party transactions harming the Company or minority shareholders' interests.adjusted its governance structure by abolishing the Supervisory Board transferring its supervisory functions to the In terms of board diversity the Company established a systematic director selection mechanism evaluating candidates
Audit Committee of the Board of Directors and revising the Articles of Association Rules of Procedure for Shareholders' based on professional expertise industry experience gender and cultural background. By the end of the reporting
Meeting Rules of Procedure for the Board of Directors Audit Committee Rules and other special committee rules to period the Board comprised nine directors with one-third female representation covering economics law computer
clarify responsibilities and standardize procedures. science business administration mechanical engineering and automation and financial management providing diverse perspectives and professional support for board decisions.Simultaneously the Company systematically revised 29 regulations including the Internal Audit System Work System
for Independent Directors and ESG Management System and established the Delayed or Exempted Information Disclosure Key Performance
Management System and Director and Senior Management Resignation Management System supplementing financial Held 7 audit committee meetings
audits compliance inquiries and executive exit audits to ensure supervisory functions remain effective procedures Held11 board meetings passing 85 proposals passing 12 proposals
uninterrupted and the governance structure transitions smoothly while advancing toward professionalization preci- Held 1 strategy committee meeting passing 1 proposal
sion and efficiency thus solidifying the regulatory foundation for compliant operations. Held 1 remuneration and appraisal committee meeting Held 2 nominationcommittee meetings
passing 2 proposals passing 4 proposals
General Meeting of Strategic Committee
Shareholders
Compensation and
Evaluation Committee Regulating Compensation Management
Board of Directors
Audit Committee
Board Secretary Jereh Group standardizes the management of executive compensation through the Remuneration and Appraisal
Nomination Committee Committee establishing a transparent and reasonable incentive and restraint mechanism. Independent directors
receive fixed allowances while non-independent directors and senior executives adopt a "base salary + performance
Management bonus" structure with some variable compensation linked to company financial and HSE target achievements.Refining Investor Relations Management
Information Disclosure
Jereh Group strictly complies with information disclosure laws and regulations formulating internal rules such as the
Information Disclosure Management Measures Insider Information and Insider Registration Management System and Infor-
mation Disclosure Suspension and Exemption Management Measures establishing a comprehensive information disclo-
sure framework. The Company designates the chairman as the primary responsible person for information disclosure
Functional Department Organization Chart and the board secretary as the main responsible officer ensuring truthfulness accuracy and completeness of disclo-
sures effectively safeguarding investors' equal access to information.Board of Shareholders Through high-quality disclosure and standardized corporate governance the Company has consecutively received an
"A" rating in the Shenzhen Stock Exchange annual disclosure evaluation for six years and won the "Golden Informa-
tion Disclosure Award of Golden Bull Award for Listed Companies". During the reporting period the Company had no
The Shareholders' Meeting as the Company's highest authority is Key Performance incidents of disclosure violations insider information leakage or insider trading and did not face any penalties.convened in strict accordance with the Articles of Association and
Rules of Procedure for Shareholders' Meeting treating all shareholders Held 3 Shareholders' Meetings Key Performance
equally and ensuring that minority investors are informed can partici-
pate and exercise voting rights thereby safeguarding shareholders' Passed 30 proposals A total of 196 announcements and documents 168 interim announcements and documents
lawful exercise of core rights and providing a standardized were disclosed throughout the year 22 investor relations activity record forms
decision-making mechanism for major corporate decisions. 6 periodic reports and summaries
2324
Subsidiaries
Listed Company
Securities Department
Strategic Development
Department
Central Research
Institute
Shipping and Logistics
Department
Public Affairs Manage-
ment Department
Procurement Manage-
ment Department
Information and Digita-
lization Department
Administration
Department
President's Office
Finance and Financing
Department
Finance Department
Trade Compliance
Department
Legal Affairs
Department
Marketing Department
Audit Department
Human Resources
Department
Intellectual Property
Department
Beijing Office2025 EnvironmentalSocialand
Governance(ESG)Report
Public Opinion Management Case
Investor Research Activities
To effectively manage reputational risk in the capital market Jereh Group has established a public opinion manage-
ment system and formulated the Public Opinion Management System. A dedicated leadership group manages public In June 2025 the Company hosted investor research
opinion establishing standardized procedures for major events that may cause or have caused abnormal stock price activities welcoming over 20 investors for discus-
fluctuations including rapid investigation formulation of handling plans timely clarification via compliant channels sions. Management held open in-depth dialogues on
accountability implementation and communication with media and investors for a fast and transparent response to business strategy and market layout and accompa-
maintain market fairness stability and the Company's reputation and shareholder rights. nied investors for on-site campus visits further
enhancing understanding of business barriers and
Investor Relations Management long-term value achieving effective two-way communication.Jereh Group values investor relations management establishing systems such as the Investor Relations Management
System and Measures for the Administration of Institutional Research Reception leveraging diversified communication Investor Field Visits and Surveys
channels to maintain transparent and trusting interactions with investors. The Company continuously holds perfor-
mance briefings investor research activities and other initiatives to convey corporate value enhance market under-
standing and recognition and improve the depth and effectiveness of investor relations management. During the
reporting period the Company received multiple honors including "Best Practices in Investor Relations Management Protection of Shareholders' Rights
for Listed Companies" "Tianma Award for Investor Relations Management" "Most Investment-worthy Award of
Golden Bull" "Outstanding IR Company" and "Outstanding Market Value Management Award". and Interests
Key Performance
Conducted 5 telephone briefings Jereh Group is committed to sharing development outcomes with shareholders and establishing a diversified return
1 mechanism focused on co-created value. The Company established a continuous stable and scientific long-term Held online performance briefing for 2024 Hosted 27 on-site investor research visits return mechanism following the Shareholder Return Plan for the Next Three Years (2024-2026) using share repurchases
Participated in 1 online collective reception day for 188 employee stock ownership plans and management share purchases to strengthen interest alignment among share-listed companies in Shandong in 2025 Replied to investor questions on 100 holders employees and the Company. During the reporting period the Company steadily advanced the 2025 share irm.cninfo.com.cn with a response rate of % repurchase plan. As of the reporting period end a total of 3.1257 million shares were repurchased amounting to RMB
109 million (excluding transaction fees).
Additionally the Company formulated and implemented the Management System for Preventing Major Shareholders and
Related Parties from Misappropriating Listed Company Funds to eliminate non-operational fund occupation risks and
ensure substantive protection of shareholder rights.Year 2022 2023 2024
Cash Dividends
(excluding repurchases) RMB 337.87 million RMB 498.80 million RMB 829.32 million
Annual Dividend
Payout Ratio 15.05% 20.32% 31.57%
Stabilizing Debt Management
Jereh Group adheres to contractual commitments with creditors promptly reporting material information that may
affect creditor rights ensuring timely debt repayment and maintaining stable trusting relationships with creditors.Through prudent financial policies the Company strengthens fund allocation and internal controls strictly implements
Investor Relationship Management Part Awards budget management and risk early-warning mechanisms safeguarding asset and fund security and protecting
creditors' lawful rights.
25 262025 EnvironmentalSocialand
Governance(ESG)Report
Optimizing Risk Management Key Performance
Legal training sessions: Legal training hours: Legal training participants:
Compliant Operations 32 50 3100
Compliance Management System
Jereh Group establishes a comprehensive compliance management system covering trade legal and operational
compliance embedding compliance requirements into business processes through institutionalized procedural and
digital means. The Company has set up a compliance committee as the highest decision-making and coordination body Risk Category Risk Description Risk Control Measures
for compliance governance; implements a "top leader responsibility system" with hierarchical signing of Commitment to Country Risk Risks from Differences in Political Economic and Legal
Compliance; and deploys compliance representatives across business units to ensure accountability. Environments Between Countries Real-time monitoring of
Risks Involved in the Transfer of Funds external risk changesTransfer Risk
Department/ Technology Products etc.Timely interpretation and
Level Responsibilities risk alertsCommittee Members Counterparty Risk Risks in Cooperation with Partners Suppliers and Automated risk identifica-Other Counterparties tion via digital processes
Director: Listen to/Review the Company compliance report Compliance personnel International Export Risks from Export Control and Sanction Policies in Interna- review and control risks
Highest Company Founder and Supervise the compliance work of managers in Control Risk tional Trade
Decision- Compliance Director various company units assess its adequacy and
Third-party screening soft-
Committee Committee Members: effectiveness Risk of Frequent Changes in Risks from Frequent Changes in International Politics
ware for risk monitoring
making Level Compliance Director the International Situation Economy and LawMake decisions on major compliance issues and
Company President systems Trade Compliance Risk Identification
Compliance Culture Construction
Build and continuously improve the system and
Trade process management framework
Compliance Culture Construction
Supervisory Compliance Director Continuously monitor external policy changes carry
Department Compliance Compliance OfficerDepartment out risk analysis and early warning work
Jereh Group systematically promotes compliance culture cultivation preparing Key Performance
Supervise and improve the implementation of com- annual compliance culture construction plans adopting both online and offline
pliance management system measures and busi- methods combining routine and special education and using multiple channels Compliance training sessions:
ness compliance such as compliance bulletins official accounts and knowledge competitions to
continuously educate employees and foster a compliance culture. 218
Sign the Commitment to Compliance and act as
Subsidiaries Subsidiaries Subsidiary Head the first responsible person for compliance work The Company organizes annual all-employee compliance training quarterly
Compliance training hours:
in this subsidiary specialized training and new employee onboarding compliance training. 209
Training covers policy interpretation case analysis and practical guidance with Compliance training
Participate in meetings communication records key positions required to pass annual compliance assessments aiming to
Execution Subsidiaries Subsidiary Compliance regular reporting promote the implementation of enhance compliance awareness and capability. participants: 6379Level Representative compliance systems and requirements within the
Company
Organizational Structure for Compliance Management Import and Export Compliance Management
Compliance Management Measures Jereh Group implements end-to-end compliance control for import and export business based on the Trade Compliance Management System. The Company strictly prohibits business dealings with fully sanctioned countries and enforces
mandatory pre-approval for transactions involving partially sanctioned countries. Through standardized processes such as
Based on the the Company embeds mandatory compliance requirements counterparty screening sanctioned country or region screening end-use and item checks economic sanctions verification Trade Trade Compliance Management System
Compliance into business processes and specifies operational norms for different scenarios using systematic controls and
red-flag warnings and compliance risk rating the Company
routine monitoring to ensure all business complies with domestic and international trade laws. systematically identifies and prevents risks.Compliance review procedures are established at key nodes
Legal The Company sets up a legal department. Relying on the Contract Risk Control Management System it fulfills including opportunity assessment contract approval order
Compliance core responsibilities such as legal risk identification protection of trade secrets and dispute resolution creation and shipment to ensure each transaction complies providing full-process legal support for business operations. with domestic and international trade regulations. The Compa-
ny continuously monitors changes in the international trade
Business The Company prepares an Employee Handbook and conducts systematic training to enhance compliance environment and updates country risk lists and sanctions
Compliance awareness among all employees; establishes and improves violation reporting investigation and corrective dynamics regularly ensuring compliant and stable import and prevention mechanisms promoting a shift from reactive to proactive compliance management. export operations. Import and Export Control ComplianceTraining On-Site
27 282025 EnvironmentalSocialand
Governance(ESG)Report
Risk Management Anti-Commercial Bribery and Anti-Corruption
Risk Management System
Jereh Group follows the "Three-Line Defense" risk management model with the Board of Directors at the core the audit Anti-Corruption Management System
committee for supervision and guidance and the audit department as the third-line executor establishing a comprehen-
sive risk management system covering finance operations compliance and strategy. The audit department independent- To better prevent identify and address corruption improve the Compa-
ly conducts risk audits fraud checks and internal control evaluations according to the Internal Audit System. ny's anti-corruption mechanism and establish a culture of integrity in
To ensure continuous effectiveness of the risk management system the Company conducts systematic annual evalua- 2025 Jereh Group formulated and improved the Anti-Corruption Manage-
tions and issues the Internal Control Self-Assessment Report. Additionally accounting firms are engaged to conduct special ment System comprehensively covering anti-bribery employee integrity
audits on internal control effectiveness issuing reports to promote continuous optimization of the "risk identification–as- supplier honesty and business partner compliance establishing a
sessment–rectification–verification" closed-loop system. three-tier anti-corruption management system of Audit Committee
guidance Audit Department execution and functional departments and
unit leaders' implementation aiming to eliminate all forms of corruption
Risk Control Management and prevent integrity risks and damage to business interests. During the reporting period neither the Company nor its employees were involved in
any incidents of embezzlement corruption or violations of business Functional departments
Jereh Group's risk control management integrates institutional regulations process embedding and continuous monitor- ethics. conduct anti-corruption training.ing. The Audit Department adopts a management approach focused on oversight complemented by service routinely
carrying out risk audits and targeted inspections. For any identified internal control deficiencies it requires the responsible In addition the Company designated the Audit Department as the core supervisory body fully responsible for independent
departments to develop corrective action plans and ensures their execution through closed-loop monitoring. supervision investigation and evaluation of the anti-corruption system embedding integrity requirements throughout
The Company customizes risk checklists for different functional departments establishing preemptive risk identification business management through anti-corruption training codes of conduct and other measures.barriers clarifying responsibilities for identification assessment and response ensuring residual risks are tolerable correc-
tive actions verifiable and business approvals accountable. Anti-Corruption Supervision Measures
Adhere to a "Zero Zero tolerance for any corrupt behavior; once confirmed employment contracts are Risk Management Training Tolerance" Principle immediately terminated and recorded in personnel files; legal action is taken if laws are violated.Jereh Group places great emphasis on cultivating employees' risk awareness. Targeting management and key-position Record employees' integrity and honesty performance as an important basis for
staff the Company regularly conducts specialized training covering core topics such as audit concepts and practices Establish Employee
Integrity Records promotion; employees who violate integrity or engage in corruption are vetoed and internal controls fraud prevention and compliant business operations. Training content is continuously enhanced formats relevant information is lawfully shared with industry and due diligence institutions.are innovated and effectiveness is reinforced to strengthen employees' ability to identify and respond to risks.Establish Jereh Anti- Initial investment of RMB two million rewarding internal and external personnel who
Corruption Fund provide valid tips and encouraging all employees to participate in anti-corruption
Key Performance supervision.
2 Average audit training hours Conduct Special Anti- The Audit Department conducts annual anti-corruption audits for key departments Audit training sessions:
12 Audit training participants: 4 Corruption Audits and positions to strengthen process supervision and risk prevention.per person:
Organize Jereh Anti-
Corruption Week Regularly organize anti-corruption themed events to cultivate a culture of integrity
activities where employees "cannot dare not and do not want to engage in corruption".Tax Management Ensure Smooth Anti-
Corruption Reporting Accept reports through DingTalk "Protect Jereh" module anti-corruption hotline email
Jereh Group has established a systematic tax management framework covering both domestic and overseas operations. Channels and other channels to ensure unimpeded internal and external feedback.It strictly complies with tax laws and regulations in China and abroad and in accordance with the Financial System Tax
Management Policy implements a tiered control mechanism coordinated by the Tax Center of the Finance Department and
executed by each subsidiary. The Company standardizes tax-related operations through a system of policies and
standardized procedures establishing a solid foundation for tax compliance. It regularly conducts training to enhance the Whistle-Blowing and Protection Mechanism
professional competence and risk awareness of relevant personnel implements routine risk assessment and early-warn-
ing monitoring mechanisms and maintains proactive communication with tax authorities. In doing so it effectively
mitigates tax risks across four dimensions—policy framework personnel capability dynamic monitoring and external To strengthen oversight of corruption Jereh Group has established an independently operating and strictly protected
coordination—ensuring the legality and compliance of global tax matters. supervision network providing multiple reporting channels for employees customers suppliers and other stakeholders and pledges to strictly protect the privacy and safety of whistleblowers.
29 302025 EnvironmentalSocialand
Governance(ESG)Report
DingTalk feedback mini-program: Reporting Email: fanwubi@jereh.cn Anti-unfair Competition Management
"Protect Jereh"
Reporting Hotline: 0535-6766706 Address: No.5 Jereh Rd. Laishan District
Channels Yantai Shandong
Jereh Group strictly complies with the Anti-Unfair Competition Law of the People's Republic of China Anti-Monopoly Law of the
The Audit Department is responsible for receiving and investigating all reports. All verified reports People's Republic of China and other relevant laws in operational regions maintaining fair and honest market practices. To
are formally investigated and results are fed back to the reporter; anonymous reports are record- prevent antitrust and unfair competition risks the Company establishes internal regulations and conducts regular training
Report ed and included in risk assessments. Internal and external personnel who provide valid leads or clearly prohibiting business confusion false advertising commercial defamation and improper acquisition of trade secrets.Handling cooperate in investigations are rewarded if verified. In commercial dealings with suppliers customers and industry partners the Company prioritizes quality technology and
service firmly opposing the use of illegal or unethical means to gain business opportunities or competitive advantages.During the reporting period the Company did not face lawsuits or major administrative penalties related to unfair competi-
According to the Anti-Corruption Management System the identity of whistleblowers report tion.Protection of content and reward information are fully confidential to ensure the legal rights of reporters and
Whistleblo- prevent any form of retaliation.wers
Integrity Culture Fostering
Jereh Group regards integrity culture as a key strate-
gic task for sustainable development regularly con-
ducting "Integrity Month" activities promoting
anti-corruption self-discipline culture and organizing
knowledge-based competitions to strengthen em-
ployee awareness and compliance. Additionally the
Company provides anti-bribery and anti-corruption
training specifically for management enhancing their
integrity accountability and risk prevention capabili-
ties cultivating consensus on integrity and using
targeted training to prevent corruption thereby
building a strong organizational barrier against cor-
ruption at its root.Employee Rewards for Integrity Quizzes
During "Integrity Month"
Key Performance
Number of participants in training on anti-commercial Number of participants in training on anti-commercial
bribery and anti-corruption for the management: bribery and anti-corruption for the management:
80person-times 2hours
31322025年度环境、社会和公司治理报告
Intelligent Green
Manufacturing
Safeguarding Natural Habitats
Jereh Group integrates sustainable development into operations systematically identifying and addressing
climate-related risks and continuously improving the environmental management system. The Company actively
manages its own carbon emissions and operational carbon footprint implements energy-saving and low-carbon
production methods enhances resource utilization efficiency and establishes a green operation system to fulfill
corporate environmental responsibilities.Responded UN Sustainable Development Goals (SDGs):
33 342025 EnvironmentalSocialand
Governance(ESG)Report
Response to Climate Change Climate Risk and Opportunity Identification
Likeli- Impact
Risk Type Risk hood of Duration Explanation of Description Occurr- Reporting Financial Impact Response Measures
ence Period
Jereh Group actively responds to global climate governance and "dual carbon" goals integrating climate action into Equipment used in drilling
product innovation and operational management. With global production bases in China the Middle East and North natural gas and other
America the Company continuously advances technological innovation and digital transformation optimizing energy PhysicalRisks from operations is susceptible to drought extreme cold Me- Long- Strengthen meteorological consumption and carbon footprint through process upgrades and energy substitution providing more efficient intelli- Extreme sea-level rise storms high dium term Increase in operat- disaster warnings and reserve
gent and low-carbon equipment and integrated solutions for the global oil and gas industry supporting both its own Weather temperatures and other ing costs: Equipment emergency materials
and clients' green transformation and promoting sustainable industry development while contributing to global carbon Physical extreme weather. damage or downtime may occur insurance Develop diversified suppliers
neutrality. Risks costs increase and establish strategic alliances
supply interruptions and conduct regular assess-
Supply Supply of newly selected raise production costs. ments to ensure supply chain
Climate Change Governance Framework Chain materials and critical com- resilienceand ponents may be affected Me- Mid-
Resource by climate policies or dium term
Risks extreme weather.Jereh Group has established an ESG governance system coordinated by the Board of Directors and ESG working groups
with collaboration from relevant institutions providing organizational support for systematic climate governance. The Domestic and international Closely monitor domestic and
Company proactively identifies climate-related topics as a fundamental prerequisite for effective climate risk manage- carbon taxes emission standards and environ- international climate-related
ment and opportunity capture integrating them into management agendas continuously optimizing risk identification Policy and mental regulations are
Increase in operat- laws and regulations and
and response processes exploring the implementation path from strategy to execution mitigating climate risk impacts tightening raising Long- ing costs: Increase implement relevant environ-Regulatory compliance thresholds and High compliance costs and mental management systems
and enhancing corporate climate resilience. Risks termimpacting traditional oil carbon trading expen- accordingly
and gas equipment ditures.manufacturing and Promote low-carbon technol-
development. ogy R&D
Climate Management Framework
Increase the proportion of
new energy equipment (e.g.The Board coordinates the formulation of climate-related strategies reviewing low-carbon Global energy transition Market accelerates reducing energy storage gas power
MediumMedium Reduction in operat- generation)
Decision-making transition plans and major technology investments in line with industry policies and "carbon Demand demand for traditional peaking and carbon neutrality" goals. and oil and gas equipment to and ing revenues: Declin-long- Strengthen R&D in circular Level Transition and increasing competi- High ing revenue from tradi- utilization technologies for oil
Risks tion in new energy
term tional business. and gas development lithium
equipment. batteries wind turbine blades
The HSE Management Committee regularly reviews climate governance implementation and photovoltaic modules
integrating emission reduction targets into internal performance evaluations to ensure effective
Supervisory execution. Increase in capital Level Transfor- expenditure: New
mational Technology New processes technologies are imma-
Introduce simulation analysis
The management-level ESG working group collaborates with R&D production and supply Risks and
materials and structures Me- Mid- ture prone to research Conduct dedicated reviews of
Process may be immature in dium term and development new processeschain departments to identify climate risks and opportunities implement climate actions and Risks climate-responsive failures leading to cost
Execution Level define emission reduction responsibilities across business lines. products. overruns; product
Establish a technical resource
coordination mechanism
performance shortfalls
may require additional
investment.Customer Clients have higher
and Market requirements on Medium Increase in capital Plan certifications in advance
Special low-carbon energy-effi- andcient and environmental High long- expenditure: Higher Communicate with clients to Requireme- certifications (e.g. DNV term certification costs understand requirements nts ABS) and establish client profiles
If the Company fails to Reduction in operat- Proactively engage stakehold-Reputation respond promptly to Me- Long- ing revenues: Rising ers' concerns establish a posi-and Brand climate policies it may tive image through environ-
Risk face skepticism from dium term financing costs and mental participation and
investors and customers. market share loss regular ESG disclosures
35 362025 EnvironmentalSocialand
Governance(ESG)Report
Opportunity Description Likelihood of Impact Explanation ofType Occurrence Duration Financial Impact Key Performance 2023 2024 2025 Unit
As global attention to climate change
increases demand for renewable
energy equipment (e.g. energy stor- Direct GHG
Market Mediumage gas-fired generators) and circular Increase in operating incomes: Emissions (Scope 1)
24157.30 25141.82 35283.83 tCO2e
Opportunities economy solutions (e.g. lithium High
and
long- Increase business income and obtain
battery recycling) continues to grow term government subsidy
driving business revenue and policy
subsidies. Indirect GHG
Emissions (Scope 2) 15750.16 20086.87 17787.13 tCO2e
Green Finance Green projects are more likely to Me- Decline in operating costs: Reduce
Opportunities access low-interest loans and green
Medium and
dium short-term financing costs and improve invest-funds. ment returns Total GHG Emissions 39907.45 45228.69 53070.96 tCO2e
Brand and Green transformation enhances Medium to Increase in operating incomes: Competitive corporate image attracting quality Long-term Increase brand premium and expand tCO2e/RMB 10000
Opportunities clients and partners. High into high-end markets GHG Emission Intensity 0.0287 0.0339 0.0327 revenue
GHG Emission Density 6.53 6.36 6.87 tCO2e/Person
Climate Risk and Opportunity Management
Note: The statistics and calculation scope of GHG data only include the operational emissions of Jereh Energy Services and
other plants in Yantai.Jereh Group integrates climate risk into its ESG comprehensive management framework. Under the board's supervision
and coordination by the ESG working group relevant functional departments and subsidiaries implement the process:
"scan and identify → assess and prioritize → strategic response → monitoring and iteration" to ensure effective climate
risk management. Greenhouse Gas Emission Management
Risk Identification and Screening Risk Assessment and Ranking Jereh Group establishes the low-carbon transformation strategic goals and incorporates energy saving and carbon
Continuously monitor macro policies indus- Collect and analyze key stakeholders' climate reduction into its green manufacturing system. Facing high energy consumption and emission challenges in the down-
try regulations and national regulatory change demands assessing and prioritizing stream oil and gas industry the Company proactively assumes low-carbon responsibility focusing on green upgrades
requirements at domestic and international risks based on likelihood and potential impact and technological innovation promoting electrification and clean energy adoption in main equipment power systems
business locations analyzing climate-relat- on the Company's finances operations and reducing GHG emissions from oilfield operations at the source and leading a new low-carbon paradigm across the value
ed risks at global production sites key strategy. chain.supply chain nodes and major target mar-
kets. Core Equipment Green Upgrade
Climate Risk
Management
Process of
Development and Implementation Jereh Group Risk Monitoring Review and Update Case
of Risk Response Strategy Electric-driven Fracturing Equipment: "Zero-Carbon Emission" Innovation
Track and advance measures regularly; for Well Site Operations
Develop and implement effective measures adjust or replace response strategies if results
for major assessed climate risks. are unsatisfactory; prepare and publish ESG Jereh Equipment's electric drive fracturing equipment replaces
reports to disclose management perfor- diesel engine drives with electric power from the grid energy
mance and progress to internal and external storage or gas-fired generators eliminating on-site diesel com-
stakeholders. bustion CO2 and other pollutants at the source.Emission Reduction Benefits
Climate Indicator Target Advancement Cumulative operations exceed Cumulative emission Electric-driven Fracturing Equipment
12000 layers reduction: 4.908
Jereh Group strictly complies with low-carbon and environmental regulations continuously strengthening full-process million tons
greenhouse gas (GHG) control employing source control process improvement and energy efficiency measures to
maintain stable and controllable emissions. During the Reporting Period the Company's GHG emissions were mainly
derived from direct emissions (Scope I) from natural gas gasoline and diesel fuel consumed in daily office and production
operations and indirect emissions (Scope II) from the use of purchased electricity.
37 382025 EnvironmentalSocialand
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Case Circular Technology Diversification
Turbine Fracturing Equipment: High-Efficiency Low-Carbon Clean Fuel Solution
Case
Jereh Equipment's turbine fracturing equipment replaces diesel Resourceful Recycling Technology for Lithium Batteries: Overcoming Lithium
engines with turbine engines flexibly adapting to LNG CNG Battery Recycling Safety and Environmental Challenges
wellhead gas and pipeline gas reducing total GHG emissions
by 25.50% and particulate matter by 33% lowering carbon Jereh's lithium battery resource recycling equipment innovatively
emissions at the source. The equipment has completed adopts Multi-Seal combined sealing and Dust-Free deep purifica-
270000 hours of fracturing operations cumulatively reducing tion systems to solve safety and environmental challenges in
carbon emissions by 1.6 million tons equivalent to one year of battery crushing enabling the Zhengzhou demonstration plant
emissions from 350000 cars. to efficiently extract approximately 1000 tons of lithium carbon-
Turbine Fracturing Equipment ate annually supporting full lifecycle recycling.Emission Reduction Benefits Implementation Results
Cumulative operations: Cumulative emission Black powder recovery rate and purity: 98%+
270000 Resourceful Recycling Equipment hours reduction: 1.6 million tons Copper and aluminum recovery rate: 95%+ for Lithium Batteries
Annual retired battery processing capacity: 10000 tons
Case
Case
Electric-driven coiled tubing equipment: Energy efficiency improvement Gas turbine hydrogen-blended power generation: Promoting Low-Carbon
and energy recovery smart solution and Clean Transition of Industrial Energy Structure
Jereh Equipment's electric drive coiled tubing equipment uses Jereh Oil & Gas Engineering utilizes the gas turbine hydro-
pure electric drive. During coiled tubing deployment the drum gen-blended combustion technology to convert industrial
motor can convert potential energy into electricity to recharge by-product gas containing 14%-34% hydrogen into clean energy
lithium iron phosphate batteries further reducing net energy processing over 10 million cubic meters of tail gas annually gen-
consumption. erating 30 million kWh of electricity and 60000 tons of steam reducing dependence on fossil fuels.Implementation Results Implementation Results
Energy efficiency utilization 110 The annual power generation is 30 million+ kWh%-157% improvement Electric-driven coiled Gas Turbine Hydrogen-Doped
rate: 90% over traditional equipment tubing equipment Combustion for Power Generation
Intelligent Electric Drive System Emission Reduction
Case
N+N Fuel-Storage Hybrid System: "Low Emissions + High Intelligence"
Power Supply Paradigm
Jereh's N+N fuel-storage hybrid system consists of 2×6 MW gas
turbines + 2×3.4 MW/7.4 MWh high-power storage systems
forming a "smart energy matrix" dynamically tracking efficient
turbine zones optimizing turbine-storage allocation replacing
high-consumption diesel generators and reducing redundant
power generation.Implementation Results
Cumulative electricity Emission reduction: NOx emissions
generation: 2.0391 40%+ meet compared to standards N+N Fuel-Storage Hybrid Systemmillion kWh traditional methods
39 402025 EnvironmentalSocialand
Governance(ESG)Report
Case Key Performance
AI*R FRAC Intelligent Fracturing System: Full-Electric Drive and AI Empower
15.1405 Compliant disposal rate of General and Low-Carbon Oil and Gas Development Environmental investment: RMB million
hazardous waste: 100%
The AI*R FRAC system integrates eight subsystems including Number of environmental training conducted: 80
intelligent fracturing decision-making equipment fault diagno- Compliance rate of rectified hidden Compliant mission rate of wastewater and exhaust gas: 100%
sis smart manifold and well site safety systems forming an hazards:100%
all-electric well site "smart fleet". AI empowers the entire
fracturing process enabling intelligent data analysis real-time
risk warnings and scientific decision-making.Implementation Results Identification of Environmental Compliance Risks
Precision control rate: Overall efficiency improvement: 45%
97.80 Safety performance: 100% Operation Site of AI*R FRAC Categories
Occurr- Impact
% Intelligent Fracturing System of Main Risk Type Risk ence Duration Explanation of Environm- Description Reada- Reporting Financial Impact Response Measures
ental Risks bility Period
Unexpected leaks or Establish emergency response
Environmental Compliance Management Environ- unplanned emissions Increase in operating mechanismsmental Environ- during production may costs: Generate emer-
Compli- mental cause environmental Short- gency response pollu-
Conduct regular emergency
ance Emergency pollution incidents
Low term tion cleanup and ecolog- drills
Jereh Group attaches importance to green development and environmental protection. In strict compliance with applicable Risks Risk directly impacting corpo- ical restoration costs. Improve environmental compli-
laws and regulations concerning environmental protection such as the Environmental Protection Law of the People's Republic rate environmental ance management systems
of China the Law of the People's Republic of China on the Prevention and Control of Water Pollution the Law of the People's performance.Republic of China on Prevention and Control of Environmental Pollution by Solid Wastes the Law of the People's Republic of China
on Prevention and Control of Soil Contamination and in light of characteristics of the Heavy Equipment Manufacturing Indus-
try and Environmental Management requirements we has formed a system and scientific environmental management Negative impacts on Reduction in operat- Strengthen communication
system by formulating a series of environmental control procedure documents such as the Regulations on Environmental surrounding water air ing revenues: Under-
Protection Management the Procedures for Identification Evaluation and Control of Environmental Factors and the HSE Manual noise and soil during mine customer loyalty
with stakeholders
Transfor- production or construc- and investor sentiment Conduct dynamic ecological
to standardize the management of various environmental factors such as wastewater waste gas hazardous waste and mational Reputa- tion may attract public Low Short- leading to a slowdown and environmental monitor-
noise. Risks tion risks attention and amplify term in sales growth and an ing clarify environmental
During the Reporting Period neither the Company nor any of its subsidiaries had violated any environment-related applica- reputation risk weaken- increased discount on standards and responsibili-
ble laws and regulations; the completed projects passing environmental protection acceptance had all obtained relevant ing customer loyalty and market valuation.investor sentiment. ties for each process
acceptance approvals; pollutant emissions were not subject to major administrative penalties and no adverse effects
were caused to employees or local community residents.Improvement of Environmental Management System Exceeding permitted Strengthen pollutant and pollutant limits during Increase in operating waste management imple-
Pollutant Pollutant operations may result in costs: It may incur heavy ment clean production
Jereh Group continues to improve and institutionalize environmental management ensuring efficiency and standardiza- Discharge Discharge regulatory penalties
Me- Mid-
dium term fines cover remediation Link environmental perfor-
tion. The Company has established a clear hierarchical and efficient environmental management structure. The Risks Risks and adverse effects on costs and temporarily mance with departmental
president's office and subsidiaries' HSE departments are the central environmental management units; unit and depart- local ecosystems and suspend operations. assessments conduct routine
ment heads are first responsible for environmental protection within their jurisdiction while relevant functional depart- public health. inspections
ments execute tasks ensuring full implementation of environmental responsibilities across business operations. Key
emission units incorporate recordable environmental incidents risk rectification and accident events into performance
assessments linking them to senior management compensation.As of the end of the reporting period Jereh and other 10 subsidiaries including Jereh Equipment and Jereh Oil & Gas
Engineering have all obtained ISO 14001:2015 Environmental Management System certification. Opportunity
Type Description
Likelihood of Impact Explanation of
Occurrence Duration Financial Impact
Emerging technologies such as
low-carbon solutions energy efficien-
Technological cy improvements and carbon cap- Decline in operating costs: New
Innovation ture present development opportuni- technologies and equipment
Opportunities ties. By adopting new technologies or High Long- upgrades can promote resource
upgrading equipment the production term recycling improve production
process can transition to low-emis- efficiency and reduce material and
sion and low-energy-consumption energy costs.modes.ISO 14001:2015 Environmental Management System Certification Certificate
41 422025 EnvironmentalSocialand
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Implementation of Environmental Case
Compliance Controls Hazardous Waste Leakage Emergency Drill by Dezhou United Petro
In June 2025 Dezhou United Petro conducted a hazardous waste leakage drill at the hazardous waste ware-
Environmental factor house simulating a container rupture during transport The drill strictly adhered to environmental compliance requirements with on-site personnel promptly reporting and the emergency team immediately implementing
containment waste collection and emergency response measures. The exercise effectively strengthened
Jereh Group adopts a risk prevention approach issuing documents such as the Procedures for Identification Evaluation and employees' emergency handling capabilities verified the feasibility of response plans and provided a practical
Control of Environmental Factors to comprehensively identify assess and manage environmental risks in operations. During foundation for reinforcing environmental safety defenses.the reporting period the Company conducted dynamic identification and graded evaluation of environmental factors
across the production process preparing and continuously updating risk evaluation tables to clarify factor importance and
develop targeted control measures. Annual management reviews systematically examine identification and evaluation
results. When significant operational changes legal updates new activities or discrepancies occur the environmental
factor re-evaluation and checklist update procedure is initiated to ensure dynamic effective and continual compliance.Emissions to the atmosphere
Emissions to the soil
Past Emissions to water bodies
Present
Future Energy release and energy use
Environmental pollution Hazardous Waste Leakage Exercise Site
Use of raw materials and natural
resources Ecological damage and
Normal state rational resource utilization
Abnormal Human health
state
Emergency Physical attributes Investigation of Environmental Hidden Dangers
state
Waste and by-products Jereh Group and its subsidiaries in strict accordance with relevant environmental laws and standards conduct compre-
hensive inspections of environmental hazards implement environmental safety management responsibilities and regular-
Other local environmental and
community issues ly examine key areas such as production processes operation of environmental facilities hazardous chemical manage-
ment and waste disposal. Special registers are established and corrective actions implemented to ensure a compliant
Environmental Factor Identification Flowchart of Jereh Group environmental management loop.Case
Environmental Emergency Response Hazardous Waste Hazard Inspection and Rectification by Jereh Power-Tech
To establish and improve the environmental emergency management mechanism Jereh Group and its subsidiaries estab-
lish and implement the Emergency Response Plan for Environmental Incidents strengthening risk assessment accident early In August 2025 frontline managers
warning emergency handling and post-event recovery improving comprehensive emergency response capabilities and at Jereh Power-Tech discovered
ensuring scientific effective and operable emergency plans. some hazardous waste with worn
labels in a temporary storage area.Emergency Command Group After assessment corrective actions were immediately taken by sealing
and laminating the labels to make
them waterproof oil-proof and
damage-resistant in compliance
Emergency Office with safety management standards.Emergency Logistics Communication Medical Rescue Post-disposal
Rescue Group Support Group Liaison Group Group Group
Before Rectification After Rectification
Organizational Chart for Emergency Response of Jereh New Energy
43 442025 EnvironmentalSocialand
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Training on Environmental Compliance Types of WastewaterPollutant 2023 2024 2025 Unit
Jereh Group actively fulfills its environmental protection responsibilities by continuously conducting specialized environ-
mental training to guide employees in understanding and practicing environmental responsibilities. During the reporting Chemical oxygen demand (COD) 414.90 374.84 21.07 ton
period the Company conducted 80 training sessions closely following the latest national and local environmental laws and
regulations covering various scenarios from daily operations to emerging businesses integrating theory with practice to Five-day biochemical oxygen demand (BOD5) 37.96 22.89 0.40 ton
embed environmental compliance culture deeply into organizational operations and strengthen employees' environmental
awareness and risk response capabilities. Suspended solids 61.39 36.65 1.86 ton
Case
Jereh New Energy Regeneration and Recycling Participated in External Ammonia Nitrogen 46.63 41.43 1.74 ton
Environmental Professional Training Total Phosphorus 1.91 3.42 0.10 ton
In November 2025 Jereh New Energy Regeneration and
Recycling attended an industrial seminar on lithium-ion battery Animal and plant oils 2.05 5.33 0 ton
recycling sharing the Industrial Application of Crushing and Recy-
cling Technology of Used Lithium Iron Phosphate Batteries high- pH 7.64 7.50 7.63 /
lighting innovative designs and practical results for safe envi-
ronmental protection and compliant disposal of the technical Note: The statistics and calculation scope of wastewater data only cover subsidiaries and key pollutant discharge units
schemes. By participating in industry exchanges and training in Yantai.the Company continuously follows the latest policies and
standards in the recycling sector enhancing the team's envi-
ronmental compliance awareness and risk management Influent Pump Room Grille Slag Odor Noise
capabilities in battery recycling operations. Professional Training in the Lithium-
Ion Battery Recycling Industry Aeration and Settling
Tank Settling Sludge Odor Noise
Compliance in the Discharge and Treatment of Biochemical Pool Odor Noise
"Three Wastes" Blower Room
Secondary Settling Tank Sludge Well Sludge Storage Dehydration Sludge CakePool Room Transport
Management of Wastewater Waste Gas and Residue Emission Residual Sludge
Noise Reaction Settling Tank Supernatant returns to the influentpump room Noise Odor
Jereh Group strictly complies with the Law of the People's Republic of China on the Prevention and Control of Water Pollution and
the Regulation on Urban Drainage and Sewage Treatment as well as local standards for wastewater discharge adhering to
the principle of "source prevention process control and end-of-pipe management" establishing a comprehensive waste- Filter Cloth Filter andDisinfection Tank
water discharge control mechanism. Subsidiary Jereh New Energy formulated the Water Pollution Prevention Management
System to classify collect and treat production and domestic wastewater ensuring compliant discharge. All wastewater
outlets are marked and assigned responsible personnel ensuring discharge throughout the process is under control and Effluent Measurement
meets related legal and regulatory requirements. Channel
During the reporting period all production sites and subsidiaries adopted appropriate wastewater treatment processes Ensure Discharge
based on wastewater characteristics ensuring treated water met discharge standards before entering municipal sewage Compliance
systems achieving a 100% compliant wastewater discharge rate.Domestic Sewage Treatment Process Flowchart of Hanchuan Ruima
Wastewater discharges 2023 2024 2025 Unit
Management of Waste Gas Emission
Wastewater Discharges 7651053.03 7731259.00 7321986.64 ton
Jereh Group strictly complies with the Law of the People's Republic of China on the Prevention and Control of Atmospheric
Wastewater Discharge Pollution and other regulations monitoring and managing all production emissions comprehensively. Subsidiary Jereh New
Intensity 20975.89 21170.43 20060.24 m3/day Energy formulated the Air Pollution Prevention and Control Management System implementing full-chain exhaust gas
management based on the principles of "total quantity control process management compliant discharge and abnormal
approval".For major pollutants such as boiler emissions industrial exhaust and particulates targeted treatment facilities were
constructed in the Company and subsidiaries to ensure emissions meet the Integrated Emission Standard of Air Pollutants (GB
16297-1996) and Emission Standard of Air Pollutants for Boiler (GB 13271-2014) standards minimizing impact on the surround-
ing environment and human health.During the reporting period all emissions from production sites and subsidiaries met discharge standards achieving a 100%
compliant exhaust emission rate.
45 462025 EnvironmentalSocialand
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Types of Waste Facility Operation and
Gases Treatment Processes Compliance Waste Categories Treatment Measures
Boiler Waste Gas Low-Nitrogen Combustion Technology Strictly implement clean production in new modified and expanded
projects optimizing raw material and energy use to reduce waste at the
Used an RTO combustion system for the treatment of high-con- source.centration organic exhaust gases; and adopted "limestone All environmental protec- Promote clean production improvements and full-process control for in-ser-
gypsum wet desulfurization + wet electrostatic dust removal" tion facilities are operating vice equipment.Industrial for the treatment of low-concentration organic exhaust gases normally
waste gas Processed through grid-type exhaust gas recovery devices Waste gas is discharged General industrial
Implement "three-prevention" requirements during waste collection storage
and transportation.exhaust purification towers VOCs treatment devices etc. after meeting relevant solid waste Standardize facilities and site signage maintaining them regularly.Alkaline washing + UV photolysis + activated carbon adsorption standards.methods were used for treatment.Apply hazardous waste labels during collection storage transfer and
Adopted bag-type dust collection filter cartridge dust collection disposal.Particulate matter spraying wet dust collection and other treatment methods Contract qualified entities for standardized transportation and disposal.Prepare and file hazardous waste emergency plans.Maintain hazardous waste management ledgers legally.Hazardous waste
Waste gas emissions 2023 2024 2025 Unit Conduct regular internal inspections and enforce compliance with incentives and penalties.Waste Gas Emissions 2.41 8.43 8.61 ton
Case
Training on Disposal of Hazardous and Solid Wastes
Types of Exhaust Pollutants 2023 2024 2025 Unit
To strengthen compliance man-
agement in September 2025
Nitrogen oxide (NO x ) 1.15 2.66 7.33 ton Jereh New Energy organized spe-
cialized training on hazardous
Sulfur dioxide 0.03 1.34 1.69 ton and solid waste disposal cover-
ing classification storage trans-
Volatile organic compound
(VOC) 0.58 0.69 0.01 ton fer and disposal regulations and
procedures including a written
Sulfuric acid mist 0.02 0.02 0.31 ton examination to ensure key per-
sonnel ful ly master relevant
Particulate matter (PM) 0.61 2.42 0.32 ton knowledge and workflows.Note: The statistics and calculation scope of wastewater data only covers subsidiaries and key pollutant Training on Disposal of Hazardous and Solid Wastes
discharge units in Yantai.Waste Emission Management Emission of SolidWastes 2023 2024 2025 Unit
Quantity of general waste
generated 1850.27 1227.00 6642.00 ton
Jereh Group thoroughly implements the requirements of the Law of the People's Republic of China on Prevention and Control of Environmental
Pollution by Solid Wastes and manages wastes adhering to the principles of "minimization valorization environmentally sound manage- Quantity of general waste 1850.27 1227.00 6642.00
ment recycling and reuse". Key emission units formulated internal regulations such as the tonSolid Waste Management System and Hazardous disposed of
Waste Management System clearly assigning responsibilities implementing classified collection temporary storage recordkeeping and Quantity of hazardous waste
directed transfer of general solid wastes hazardous wastes and household wastes ensuring full traceability. generated 61.86 375.24 447.36 ton
During the reporting period all waste generated by production sites and subsidiaries was transported and disposed of by qualified Quantity of hazardous waste
third-party entities achieving 100% compliance in general solid waste and hazardous waste disposal. disposed 64.76 376.48 449.43 ton
47 482025 EnvironmentalSocialand
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General waste Green Office Initiatives
Category Name of
Waste 2023 2024 2025 Unit Management of Regulate the use of computers printers and other electrical equipment; turn off power when
Electrical leaving for extended periods; set summer air-conditioning temperatures no lower than 24°C;
Dust ash / / 0.50 ton Equipment cooperate with security inspections and display unpowered equipment and lights to reduce standby energy consumption.Desulfurization gypsum / / 70.00 ton
Green Office Advocate the use of green office supplies such as environmentally friendly recycled paper and
Scrap steel 104.00 95.00 204.82 ton Supplies other resource-recycled products.Domestic waste 36.00 32.10 1095.00 ton
Electronic Fully implement paperless office operations utilizing OA systems to minimize paper usage; encour-
Office age double-sided printing avoid unnecessary color printing and strictly control the issuance of documents and materials.Hazardous waste
Category Name of
Waste 2023 2024 2025 Unit Regular Greenery Arrange to maintain greenery regularly in office areas to absorb CO? release oxygen purify air and
Waste oil sludge (HW08) 12.70 36.25 5.20 ton Maintenance reduce harmful gases in office spaces.Waste oil drums (HW08) 0.00 0.00 14.59 ton
Waste paint barrels (HW49) 0.32 0.00 30.84 ton Building Green Enterprises
Waste packaging (HW49) 3.90 5.34 5.98 ton Jereh Group and its subsidiaries deeply implement green development principles focusing on building a green enterprise
Chromium-containing 13.71 12.58 19.98 ton system achieving significant results in green manufacturing design and supply chain management. During the reporting sludge (HW17) period subsidiary Jason Energy was recognized as a Green Factory in Yantai; Dezhou United Petro obtained AAA-level green
Waste activated carbon 0.31 1.07 13.73 ton factory certification green supply chain green enterprise and green design product management system certifications; Jereh (HW49) Oil & Gas Engineering also received green enterprise certification. A series of achievements demonstrates the Company's firm
Residues of refinery or 30.93 320.00 119.40 ton commitment and systematic approach to green transformation setting a benchmark for green development in the industry and distillation (HW11) supporting the sector's sustainable upgrade.Note: The statistics scope of distillation residue (HW11) only covers key pollutant discharge units and that of other waste data
only cover subsidiaries and key pollutant discharge units in Yantai.Advancing Corporate Green Development
Implementation of Green Operation
Jereh Group advocates and fully implements green
office practices deepening energy conservation
emission reduction and resource recycling aiming
to enhance both environmental protection and Relevant Environmental Honors and Certifications
operational efficiency. Through paperless opera-
tions procurement of energy-efficient equipment
green procurement policies and environmentally
friendly office supplies the Company explores Achievement of Environmental Targets
innovative green office models guiding employees
to practice low-carbon lifestyles effectively reduc-
ing operational carbon footprint and creating a Jereh Group and its key emission units are committed to harmonizing human natural and developmental needs. By setting
sustainable low-carbon office environment. measurable and traceable environmental targets the Company promotes performance improvement and accountability
reduces environmental load deepens green transformation and enhances overall environmental management effectiveness.
49 502025 EnvironmentalSocialand
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Environmental Performance Case
Metrics and Targets Completion Rate in 2025 Jereh Group Pangu Series Plunger Pump—Innovative Path for Efficient
No incidents of general toxic or Achieved Resource Utilizationhazardous substance leakage
The Pangu series of Jereh Group focuses on efficient resource use and
No incidents of general or above Achieved sustainable materials practice with self-developed JRZT materials environmental pollution achieving billions of cycles without damage. The power end of fractur-
Zero discharge of production Achieved ing equipment is designed for lifetime use without replacement
wastewater through recycling significantly reducing metal consumption and waste generation.Embedded lubrication systems reduce operational resistance by 35%
Standardized discharge management Achieved with transmission performance exceeding industry standards
of domestic wastewater extending maintenance cycles by over two times and reducing equip-
Zero annual exceeding of exhaust Achieved ment operating costs by 50%. Paired with the JPCM system power emissions end fault prediction accuracy reaches 100% and hydraulic end reach-
Factory boundary noise meets es 97.7% precisely forecasting leak risks while achieving resource
standards Achieved efficiency energy optimization and environmental safety. Pangu Series Plunger Pump
100% proper disposal rate of Achieved
solid waste
Energy Utilization
Recycling of resources
Energy Management System
Jereh Group is committed to building a systematic and intelligent energy management system establishing an electricity
Jereh Group adheres to the principles of resource conservation and environmental friendliness optimizing the full chain of optimization team to guide subsidiaries in formulating energy management policies training staff and continuously reduc-
materials energy and water resources. Through upgraded packaging materials promotion of energy-saving technologies ing energy consumption through technological innovation process optimization and lean management. As of the end of
and water recycling the Company achieves coordinated reduction reuse and efficient circulation of resources. the reporting period 3 subsidiaries i.e. Jereh Equipment Dezhou United Petro and Jason Energy have all obtained ISO
50001:2018 Energy Management System certification.
Material Utilization
Jereh Group has systematically established an inventory management system improving supporting procedures such as
the Material Protection and Maintenance Process and Packaging Management Process. Led by the Operations Management
Department a dedicated team develops inventory driver models and builds an online platform for obsolete materials to
achieve the targets of "controlling increase at the source and reducing inventory volume". At the same time the inventory
management system is utilized to monitor material flow in real time and precisely matches supply and demand while
optimizing workshop layout to improve turnover efficiency; through holiday promotion meetings and periodic special
reviews difficult material handling issues are resolved strengthening resource utilization and cost control.Core materials include raw materials such as steel for oil and gas equipment and natural gas compressors as well as
recyclable/degradable turnaround materials reusable spare parts and consumables. In supply chain packaging the
Company promotes a green packaging system requiring suppliers to prioritize recyclable/degradable materials while
ensuring product quality and to reuse original packaging during returns to reduce secondary consumption. Currently the
subsidiary Dezhou United Petro Ltd. has established a comprehensive green packaging management system creating
replicable practices and promoting them across the Company steadily improving sustainability in packaging.Certificate of ISO 50001:2018 Energy Management System Certification
Usage of Packaging Materials
Indicator Name 2023 2024 2025 Unit Energy Consumption 2023 2024 2025 Unit
Total Energy 14927.89 16351.39 20921.07 tce
Total quantity of packaging Consumption
materials used 768.60 911.38 512.05 ton Energy Consumption
Intensity 0.0107 0.0122 0.0129 tce/RMB 10000
Packaging material tons/RMB 10000
consumption intensity 0.0005 0.0007 0.0003 revenue Note: The statistics and calculation scope of energy data only covers the operation consumption of Jereh Energy Service and the
energy consumption of plants in Yantai. The total energy consumption is calculated according to the conversion factors in the GB/T
Note: The data statistics and calculation scope for packaging materials only cover Jereh Group Jereh New Energy Regeneration
and Recycling and Jereh Equipment. 2589-2020 General Rules for Calculation of the Comprehensive Energy Consumption of the People's Republic of China.
51 522025 EnvironmentalSocialand
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Energy Usage "Grid-Storage Energy Aggregation" Project in Changqing Oilfield of Case
Energy Types 2023 2024 2025 Unit Jereh Agile Power Energy
Jereh Agile Power Energy customized a 2MW grid
Natural Gas 33.70 37.60 72.83 10000 m3 electricity + 10.2MW/22.2MWh storage solution for
Changqing Oilfield; using reactive compensation peak
Gasoline 71.56 61.79 140.00 ton shaving and island operation grid utilization reaches
98% solving small grid power supply challenges
Diesel 7500.00 7800.00 10756.00 ton enabling flexible power switching reducing NOx
emissions by 90%. This initiative balances cost reduc-
Total Purchased 28040160 35760854 33147832.21 kWh tion and efficiency improvement with low carbon Electricity goals providing a model for green oil and gas field
development. "Small Grid + Storage" Solution in JerehAgile Power Energy
Energy Conservation and Consumption Reduction Practices
At the headquarters level Jereh Group focuses on office electricity and domestic gas advancing energy-saving initiatives;
at the subsidiary execution level the Company applies the principle of "coordinated supervision and empowerment differ- Energy Consumption Target
entiated implementation" guiding subsidiaries to adopt multi-dimensional measures—policy technology and manage- Jereh Group and its subsidiaries set clear annual unit product key performance indicators for energy savings and efficiency
ment—tailored to their business and operations fostering participation continual improvement and promoting the improvement integrating them into operational unit assessment systems to enhance overall energy efficiency.improvement of the company's overall energy utilization efficiency and the reduction of energy consumption intensity.Measures for Energy Conservation and Consumption Reduction 2025 Annual Energy Target Achievement in Jereh Equipment
Energy
Jereh Equipment: Develops energy management and electricity-saving documents sets annual energy baselines Company Indicator Name Indicator Units Energy Target Achievement
and targets and tracks energy efficiency Name BaselineUnit Product Energy
Jereh Oil & Gas Engineering: Regularly conducts energy consumption diagnostics and proposes targeted improve- Consumption tce/unit 3.35 3.18 Achieved
ment measures.Policy and System Jason Energy: Issues Energy Management System Manual establishing energy target assessment mechanisms. Unit Product ElectricityJereh Consumption kWh/unit 15526 14749.70 AchievedDevelopment Dezhou United Petro: Diagnose key energy consumption variables across multiple dimensions and develop a Equipment
Ranked List Of Energy Performance Improvement Opportunities. Unit Product Natural GasConsumption m3/unit 910.29 864.78 Achieved
Jereh Oil & Gas Engineering: Replaced 95 halogen lamps (400W) with 200W LED lamps in Workshop 302 Unit Product Diesel kg/unit 237.56 225.68 Achieved
(saving approximately 15000 kWh annually); replaced standard air compressors with variable frequency units Consumption
to reduce energy consumption.Technical Upgrades and
Equipment Improvements Jereh New Energy: Installed smart power system for real-time electricity monitoring and data analysis.Jereh Equipment: Replaced diesel forklifts with electric forklifts to reduce emissions and fossil fuel use.Jereh Oil & Gas Engineering: Implemented peak-valley electricity usage and standardized office energy use to Water Resource Utilization
avoid idling and waste.Operational Management Jereh Equipment: Cultivated a company-wide energy-saving culture through promotion and inspection.and Behavior Optimization Water Resource Management System
Jereh Group continuously deepens refined water resource management
Case Key Performancecoordinated by the Administrative Department with defined management
Jereh New Energy Smart Power System Supports Energy Efficiency indicators and assessment mechanisms. Production water comes from munici-pal water supply and recycled water covering workshop use cooling water Total Water Usage:
makeup boiler makeup environmental facility use and domestic water.Jereh New Energy deployed smart power system 163535 tonsSubsidiaries issued Water and Electricity Conservation Management System
software at the Yantai facility to identify and optimize which clearly defines the management of water and electricity usage for
high-energy-consuming equipment schedules imple- production and daily life aiming to reduce resource waste and ensure safe Water Use Intensity:
ment off-peak electricity usage and achieve real-time water and electricity usage. 0.1008 tons per
monitoring and big data analysis of facility electricity
consumption. By the end of 2025 the Yantai facility During the Reporting Period the Company and its subsidiaries took a series of RMB 10000 revenue
reduced electricity costs by RMB 1.8366 million. water-saving measures to improve water resource utilization efficiency
promote rational water use and scientifically manage water. No direct or
Smart Energy Management System indirect significant impact on water resources occurred due to changes in
water intake consumption discharge or storage.
53 542025 EnvironmentalSocialand
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Water Resource Management Measures Case
Tree Donation Project at Baquba Iraq
To support the national call for a water-saving society Jereh Group implements a principle of giving high priority to saving
water promoting intensified water utilization in daily operations. During the reporting period in response to arid
sparsely vegetated erosion-prone conditions in
Water-saving signs and promotional materials are posted at water Baquba Iraq the Company donated seedlings to
usage points in public areas. the local government supporting regional ecologi-
cal improvement and biodiversity protection. The
Water-saving irrigation methods such as sprinkler irrigation and drip initiative aims to expand greenery stabilize soil
irrigation are gradually adopted for landscaping. prevent wind erosion and improve microclimates.This not only fulfills the Company's biodiversity
Water protection commitment but also demonstrates
Conservation Daily maintenance and management of water-using equipment are strengthened with strict check for any leakage dripping or wastage. community sustainability support.Measures Tree Donation Site
Where production equipment allows recycling water tanks are provided
to save water.Testing water is replaced with tank + cooling tower circulation reducing
test water consumption. Advancing Mine Rehabilitation
Water Resource Indicators and Objectives Jereh Group recognizes that the development of mineral resources must align with ecological protection and restoration.Relying on independent R&D and engineering experience the Company addresses coal gangue tailings disposal and
governance in mined-out areas providing integrated technical equipment and intelligent control solutions. This transforms
Jereh Group and its subsidiaries focus on lean water management establishing quantitative targets specifying unit mining waste into backfill resources mitigates geological hazards reduces land occupation and lowers environmental
product water consumption and implementing practical measures to fulfill water-saving responsibilities. impact on soil and air supporting green mining and continuous ecological improvement.
2025 Annual Water Saving Target Achievement in Jereh Equipment CaseUsing Integrated Modular Gangue Processing Technology to Assist
Indicator Name Indicator Units Water Baseline Water Target Achievement Mine Ecological Restoration
Unit Product Water kg/unit 126.43 120.11 The Company implements the Guizhou coal Consumption Achieved gangue backfill EPC project integrating crushing
mixing pumping and intelligent control to handle
coal gangue stockpiles on a large scale eliminating
land occupation and dust issues from solid waste
Protecting Ecosystems storage. At the same time the project mitigates subsidence risks in mined-out areas and together
with local vegetation restoration and habitat
rehabilitation gradually restores the ecological
integrity of mining sites providing a systematic
Focus on Ecological Protection solution for regional biodiversity conservation and
green mining.Jereh Group emphasizes biodiversity protection continuously monitoring and managing potential impacts on biodiversity Coal Gangue Backfill EPC Project Site
from business operations. The Company actively responds to the "Kunming-Montreal Global Biodiversity Framework" and
systematically carries out biodiversity risk assessments and hidden danger identification in strict compliance with national
laws regulations and policy guidelines such as the Opinions on Further Strengthening Biodiversity Protection and the Law of
the People's Republic of China on Prevention and Control of Soil Contamination to ensure operations meet ecological protection
requirements. While comprehensively advancing biodiversity risk management the Company not only focuses on localized
ecological restoration at its operational sites but also actively expands cross-regional public welfare ecological protection
projects participating in biodiversity governance practices with a global perspective.During the reporting period the Company continuously improved ecological monitoring systems and networks monitoring
air surface water soil and vegetation at all operation sites and surrounding areas with no significant negative impact on
biodiversity.
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Case Case
High-Pressure Grouting and Digital Twin Technology for Safe Metal
Tailings Backfill Sichuan Heavy Metal Contaminated Soil Solidification and Stabilization Project
The Company's self-developed integrated tailings The Sichuan Heavy Metal Contaminated Soil Solidification and Stabilization Project used crawler-type soil
backfilling system featuring modular design high- stabilization remediation equipment with a total treatment scale of 540000 cubic meters achieving remedia-tion of heavy metal-contaminated barium soils.pressure plunger pump grouting technology and
digital twin technology supports mines in resource
recovery of tailings and safe filling of goaf areas. It
effectively mitigates surface deformation and dam-
age reduces disturbance risks to vegetation and
wildlife habitats and minimizes pollution to surroun-
ding soil and water thereby protecting the mine
ecosystem and regional biodiversity.Backfilling Capacity Expansion
and Renovation Project
Promotion of Soil Remediation Comparison of the Sichuan Project before and after Soil Remediation
Jereh Group continuously invests in soil remediation deeply integrating pollution control with ecological restoration. Lever-
aging advanced research capabilities high-performance specialized equipment extensive project service experience and
refined engineering implementation techniques the Company provides customized treatment and remediation solutions Case
for soils and groundwater contaminated with organic pollutants heavy metals and other pollutants aiming to become a
leading provider of comprehensive technological and equipment solutions in soil remediation. Environmental Remediation Project at Jinan Steel Plant Site
The Jinan Steel Plant environmental remediation project
Case involves 440000 cubic meters and must be completed
Heavy Metal Barium Slag Soil Remediation Project in Tianzhu Guizhou within 365 days with a tight schedule and complex contam-
ination types including heavy metals such as arsenic and
The Heavy Metal Barium Slag Soil Remediation Project in Tianzhu Guizhou adopted an in-situ solidification lead and polycyclic aromatic hydrocarbons. To address the
stabilization remediation process and uses high-pressure jet grouting equipment for construction. The total complex pollution conditions and urgent timeline seven
treatment scale of the project reached over 600000 cubic meters achieving high-quality remediation of heavy remediation technologies were simultaneously applied
metal barium slag soils. on-site including leaching thermal desorption of odors and
chemical oxidation. Additionally as the project is adjacent to
residential areas its implementation not only improves the
surrounding living environment but also eliminates pollution
risks providing a solid barrier for the protection of regional
biodiversity. Environmental Remediation at Jinan
Steel Plant Site
Comparison of the Guizhou Project before and after Soil Remediation
57582025年度环境、社会和公司治理报告
Setting Industry Benchmark
with Craftsmanship and Excellent Service
Jereh Group adheres to the quality policy of "Create perfect quality with great care. Make progress each day"
strictly upholding product quality and safety standards continuously enhancing product and service levels
actively exploring frontier technologies and realizing a win-win supply chain philosophy.Responded UN Sustainable Development Goals (SDGs):
59 602025 EnvironmentalSocialand
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Innovation-Driven Development Innovation Risk and Opportunity Identification
Impact
Risk Type Risk Description Occurrence Duration Explanation ofReadability Reporting Financial Impact Response MeasuresDeepening the Innovation Management System Period
Optimize and improve proj-
Jereh Group always regards innovation as the core driver of corporate development continuously optimizing the R&D Increase in operat- ect initiation review and
governance structure centered on the Technology Committee with the Chief Technology Officer and Secretariat stage evaluation mecha-When launching new struc- ing costs: nisms.providing supervision and guidance and various specialized subcommittees executing responsibilities. The Company tural or process R&D projects R&D project failures Strengthen "industry-aca-
and its subsidiaries have formulated and implemented systems such as the R&D Innovation Incentive Management R&D Project in the oil & gas or new energy may result in finan- demia-research" collabora-
Measures Management Innovation Administration Measures and the Specification for the Research and Initiation of New Implementation sectors the lack of historical Medium
Mid-
term cial losses requiring tion to diversify technical Risk verification data may result in additional funds for risks.Products. Combined with innovation platform development these systems continuously improve the R&D innovation slower-than-expected prog- redeve lopment Establish new component/
management framework covering project initiation incentives and other processes promoting systematic standard- ress. thereby increasing new process trial proce-dures verifying reliability
ized and efficient R&D operations. R&D costs. through small-batch pilot
production.Technical Committee
Assistance
Secretariat Decline in operat-ing profits: Increase forward-looking R&D investment in areas
With the accelerating global Failing to keep up
Administrator/Deputy Director such as electric drive digi-energy transition misalign- with new energy talization and new energy
Technology ment of existing technology developments or to maintain technological
Iteration Risk with industry innovation pace Medium
Short-
term breakthroughs by leadership.may lead to decreased com- peers may reduce
Comprehensive Professional Mechanical Design and Electrical and Fluid Simulation and Fault Engineering Design and
Committee Member Manufacturing Professional Control Professional Diagnosis Professional Process Professional petitiveness and market product competitive-
Promote diversified techno-
Committee Member Committee Member Committee Member Committee Member share. ness and market logical development reduc-
share impacting ing dependence on a single
Technical Committee's Organizational Chart profits. technical path.Key Performance
Develop career planning
R&D Investment: RMB551.0999 million The loss of core technical
personnel could lead to Increase in operat- provide continuous training
Proportion of Revenue: 3.40 % technical disruption insuffi- ing costs: for technical personnel
cient R&D capabilities and a Additional funds and help them achieve
Turnover Risk of decline in innovation ability
their career goals
may be required for
Driven by an excellent innovation management system and sustained R&D Mid-Core Technical making it difficult to launch Low term talent recruitment
investment the Company has been recognized as a National Technology Personnel competitive new products
Sign confidentiality and
and training to fill non-compete agreements
Innovation Demonstration Enterprise National Intellectual Property Demon- or technologies which technica l gaps
would impact the Compa- to protect core technolo-
stration Enterprise and National Quality Benchmark. Meanwhile the subsidiary increasing human ny's market competitive- gies and trade secrets resource costs.echelon has achieved significant results: 11 subsidiaries have been recognized ness. reducing the risk of tech-nology loss
as national high-tech enterprises 1 has been awarded National Service-Orient-
ed Manufacturing Demonstration Enterprise. In addition the Company has
Jereh Group Listed Three
more than 10 national and provincial-level science and technology innovation Times on the"Global Top 100
platforms providing a solid foundation for continuous innovation. Innovation Companies"
61 622025 EnvironmentalSocialand
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Core technology may face Build a global intellectual
Case
Increase in operat-
infringement by others or the ing costs: property layout and actively Learning and Sharing through "Tiangong Lecture"
Intellectual Company's products /tech-
apply for domestic and
Short-
nologies may unintentionally Low High litigation and Property Risks term international patents
To continuously empower the R&D team Jereh Group has established the "Tiangong Lecture" as a regular
infringe on third-party intel- compensation costs Establish strict IP review learning and sharing platform inviting R&D personnel monthly to share frontier technology and project practice
lectual property leading to increase corporate expenses. checkpoints in the R&D pro- insights. It has become a key vehicle for maintaining technical foresight fostering innovative exchanges and legal disputes. cess building a learning-oriented ecosystem.Impact
Opportunity Type Description Occurrence DurationReadability Reporting Explanation of Financial Impact
Period
By leveraging the global energy Increase in operating incomes:
industry trend of cost reduction effi- The aim is to meet customers'
ciency improvement and low-carbon urgent needs for low-cost low-emis-
Electric Drive and transformation Jereh iterates and sion operations capture market
Turbine Fracturing promotes next-generation high-end Short toHigh medium share from traditional diesel-driven Technology equipment such as electric drive and term equipment replacement and new Opportunities turbine fracturing technologies electric drive markets form a tech- Training Session of Tiangong Lecture
establishing absolute technical lead- nological leadership advantage and
ership in unconventional oil and gas generate patent licensing and tech-
development. nology service revenue.Case
Increase in operating incomes: Innovation Case Sharing at Jereh Oil & Gas Engineering
Aligning with the global trend of Expanding markets for gas turbine
clean energy and flexible power sys- equipment sales power plant con- During the reporting period Jereh Oil & Gas Engineering focused on improving equipment R&D and engineering
tems Jereh develops and promotes struction and long-term operation services using department morning meetings as a platform for innovation exchange and organizing multi-dimen-
Gas Turbine Power high-efficiency low-carbon gas Medium and maintenance services; providing Mid-term sional case sharing. Content includes technical optimization such as unit motor modifications fuel tank structure Generation turbine power generation systems to High efficient power generation and Opportunities innovation welding standards peer pressure station skid processes PMS platform applications and radiator
addressing growing demand in cogeneration solutions helps cus-
tomers reduce energy consumption material selection aiming to continuously broaden innovative thinking through case learning.industrial parks distributed energy
and backup power scenarios. and carbon emissions generating
project revenue and recurring
service income.Innovation Risk and Opportunity Management
In frontier technology R&D and emerging business development Jereh Group systematically manages risks and
opportunities in innovation through project risk registers and special identification mechanisms covering four types
of "new unusual difficult and unique" risks including new technology applications special customer and regulatory
requirements core technology challenges and design differences. The Company enhances teams' forward-looking
Innovation Case Sharing Meeting at Jereh Oil & Gas Engineering
risk identification and systematic response capabilities through innovation training and relies on structured measures
such as selection assessment simulation analysis cross-department collaboration upgrade reviews and impact
analysis to transform potential risks into technological breakthroughs and market opportunities achieving a dynamic
balance of project control and innovation development.
63 642025 EnvironmentalSocialand
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Achieving Innovation Targets Case
Jereh Group Orange Craftsmen
Jereh Group treats technological innovation as the core development engine fully advancing the "Jereh Group Devel-
opment 2.0" strategy deepening systematic technological and management reforms maintaining product technolo- Jereh Group implements the "Process Optimization Naming
gy leadership across business segments and steadily transforming into a technology-driven innovative enterprise. + Display Stand" honor incentive approach effectively
stimulating employees' innovation enthusiasm and sense of
During the reporting period all R&D projects progressed steadily as planned with 260 new patents registered and all belonging. Combined with a comprehensive talent promo-
R&D indicators fully achieved. Looking forward the Company will fully promote industrialization and market transfor- tion mechanism and market-based compensation system
mation of new products achieving breakthroughs in both industry presence and output value. this approach supports talent retention and internal technol-
ogy inheritance creating a culture that respects innovation
and strengthening the Company's technological soft power
laying the talent and cultural foundation for product Orange Craftsmen Display Stand
upgrades and quality improvement.Deepening Full-Chain Innovation Management
R&D Team Development Protection of Intellectual Property Rights
Jereh Group positions its R&D team at the core committed to building a high-level independent R&D capability. During Strictly adhering to applicable laws and regulations such as the Trademark Law of the People's Republic of China the
the reporting period the Company promoted knowledge sharing and experience accumulation through systematic Patent Law of the People's Republic of China and the Copyright Law of the People's Republic of China Jereh Group continu-
training case sharing and technical exchanges continuously enhancing the team's professional skills and stimulating ously updates and improves the Intellectual Property Management System to systematically regulate intellectual
innovative thinking. To build a sustainable talent pipeline the Company aligns talent development closely with R&D property risk prevention patent management and protection incentives. Meanwhile the Company has established a
practice and introduces external think tank resources such as "Innovation China" to empower team growth. dedicated Intellectual Property Department comprising the Patent Application Center Licensing and Litigation
Center and Trademark and Process Center managing patents trademarks trade names copyrights and domain
names across all units. Each unit has designated personnel to coordinate implementation jointly building a robust
Key Performance protection system.
1430 The Company emphasizes intellectual property management using patent applications and other means to build a Number of R&D personnel: persons Proportion of R&D personnel: 18.52%
solid legal protection network for innovation achievements. The Company and five subsidiaries including Jereh New
Energy Regeneration and Recycling and Jereh Equipment have obtained GB/T29490-2013 intellectual property
management system certification.Incentives for R&D Innovation
Jereh Group continuously unleashes the innovative potential of R&D personnel through institutional incentives
issuing the R&D IInnovation IIncenttiivvee Maannaaggeemmeennt tM Meeaasusruerses and establishing awards such as the Tiangong Award
R&D Implementation Award and Technological Progress Award to precisely reward technological breakthroughs and
achievement commercialization. The Company has also established a standardized R&D career qualification system
deeply integrating professional capability grading with incentive mechanisms linking capability value directly to
rewards fully motivating R&D personnel's innovation enthusiasm and problem-solving energy and accelerating new
product and technology breakthroughs and commercialization. Intellectual Property Management System Certification
65 662025 EnvironmentalSocialand
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Key Performance Case
"Dual-Orientation" Key Layer Fracturing Process and Complete Equipment Achieve
By the end of the reporting period the Company held a total of2122valid authorized patents: New Underground Anti-Collapse Technology Breakthrough
Invention patents:649 Utility model patents:1376 Design patents:97 In January 2025 Yantai Jereh Machinery Equip-
ment Co. Ltd. in collaboration with China Coal
Software copyrights:170 Trademarks:379 Xi'an Design Engineering Co. Ltd. successfully
applied the "Dual-Orientation" key layer fracturing
process in the Datang Guoyuan Mining
Total patent authorized in the year:260 Longwanggou Mine key layer treatment project.This marks the technology system's domestic
Invention patents:149 Utility model patents:105 Design patents:6 leading level and showcases its innovative
strength in underground coal mine key technolo-
gies. "Dual-Orientation" Key Layer Fracturing Process Application
Case
2025 Mid-Year R&D and Intellectual Property Conference of Jereh Group Case
In August 2025 Jereh Group held the AI*R FRAC Intelligent Well Site Fracturing Solution Officially Released
"Precise Insight Winning Execution"
Mid-Year R&D and Intellectual Property In March 2025 Jereh Group launched the world's
Conference at its headquarters attend- first systematic intelligent fracturing solution—AI*R
ed by the R&D team and managers at all FRAC. The system integrates intelligent
levels. The conference reviewed break- decision-making equipment monitoring smart
throughs in technology innovation and manifolds well site safety power transmission
intellectual property over the first half of closed-loop sand mixing electric fracturing and
the year and ceremoniously recognized well site efficiency modules. Driven by AI it enables
"R&D Stars" from business units for 2025 Mid-Year R&D and Intellectual Property Conference intelligent data analysis real-time risk alerts and
outstanding contributions in R&D. scientific decision-making throughout the fractur-
ing process and is already applied on-site. Oil and Gas Industry Experts Gather at the Launch Event
Case
R&D Innovation Achievements Showcase Jereh New Energy Regeneration and Recycling Selected in the First Batch of "RetiredWind and Photovoltaic Equipment Recycling Enterprise Recommendation List"
In May 2025 Jereh New Energy Regeneration and
R&D Breakthroughs Recycling a wholly owned subsidiary was includ-
ed in the first batch of "Retired Wind and Photovol-
Jereh Group and its subsidiaries focus on developing new-quality productivity deeply cultivating independent innova- taic Equipment Recycling Enterprise Recommen-
tion while continuously deepening strategic cooperation with leading industry companies research institutes and dation List" leveraging its globally leading integrat-
universities jointly building a collaborative industry-academia-research innovation ecosystem to promote break- ed recycling solution. This demonstrates its innova-
throughs in core industrial technologies and overall competitiveness. The Company has undertaken over 80 national tion leadership in renewable energy and environ-
and local research projects with 23 achievements reaching internationally advanced levels 11 winning Shandong mental protection injecting core value into sustain-
Provincial Science and Technology Progress Awards and 3 receiving the Shandong Industrial Design Gold Award fully able industry development.demonstrating solid independent innovation capabilities and setting an industry benchmark. Enterprise Recommendation List Launch Ceremony
67 682025 EnvironmentalSocialand
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Case Case
Jereh New Energy Regeneration and Recycling Lithium Battery Resource Recovery Jereh New Energy Regeneration and Recycling Leading National Standard Pre-Research
Equipment Included in National Catalogue
In June 2025 the 14t h working meeting of the Vehicle Power
In November 2025 Jereh New Energy Regenera- Battery Recycling Standard Working Group was held in
tion and Recycling through its deep expertise and Yantai Shandong. As the core leading party Jereh New
innovative practices in lithium battery resource Energy Regeneration and Recycling together with Guang-
recovery was officially included in the Ministry of dong Brunp Recycling Technology Co. Ltd. promoted pre-re-
Industry and Information Technology's Catalogue search for national standards such as Vehicle Power Battery
of Advanced and Applicable Technologies and Recycling Equipment Part 2: Intelligent Crushing and Disassembly
Equipment for Comprehensive Industrial Resource Equipment and Safety Technical Specifications for Vehicle Power
Utilization (2025 Edition) receiving national-level Battery Disassembly and Crushing Equipment jointly advancing
recognition. This inclusion provides important standardization in the power battery recycling industry.guidance for industry technology upgrades sup- Vehicle Power Battery Recycling Standard Working Group2025 World Power Battery Conference Onsite
ports the cultivation of green new-quality produc-
tivity and promotes high-quality development of Case
the resource recycling industry.Jereh Group Supporting the Internationalization of National Standards
In August 2025 Jereh Group participated in hosting the
expert review meeting for the foreign-language version of the
national standard Corrosion-Resistant Alloy Coiled Tubing. Orga-
Industry Leadership nized by the Petroleum Specialized Pipe Sub-Technical Com-
mittee under the China National Technical Committee for
As a responsible industry leader Jereh Group and its subsidiaries actively participate in the formulation and revision Petroleum and Natural Gas Standardization the meeting
of national local industry and group standards guiding technological norms and quality upgrades co-building an focused on the theme of "Standard Internationalization and
open collaborative healthy and orderly industry ecosystem and promoting Chinese manufacturing toward higher Technology Co-Advancement". Experts from the subsidiary
standards and quality. During the reporting period the Company and its subsidiaries completed the preliminary Jason Energy and more than ten authoritative industry repre-
formulation and revision of multiple standards entering stages of public consultation review or pending approval sentatives attended discussing standard review and contrib-
uting to the development and implementation of the Foreign-Language National Standard
and release laying a technical consensus foundation for subsequent industry development. foreign-language national standard Corrosion-Resistant Alloy Expert Review Meeting
Coiled Tubing promoting standardization in the coiled tubing
Participation in Standards Compilation in Recent Two Years field.Standard Name StandardCategory Participating Entity
GB/T 33653-2025 Energy Consumption Test and Calculation
Method for Oilfield Production System National Standard Jereh Equipment Digital-Intelligent Integration
GB/T 17350-2024 Classification Name and Model Compilation
Methods for Special Motor Vehicles and Special Trailers National Standard Jereh Equipment
T/CPI 19001-2024 Guideline for Electricdrive Fracturing Based on the energy industry's digital and intelligent transformation trends Jereh Group integrates artificial intelli-
Equipment Tender Requirements Group Standard Jereh Equipment gence deeply into industrial scenarios systematically advancing industry digitalization. With technology-driven core
T/CPI 19002-2024 Guideline for Evaluating Electricdrive
Fracturing Equipment Bids Group Standard Jereh Equipment AI has been widely applied to critical scenarios including smart operation and maintenance of oil and gas equipment
T/CPI 19003-2024 Guideline for Preparing Electricdrive Fracturing operational optimization and predictive maintenance gradually building new service capabilities centered on data
Equipment Procurement Document Group Standard Jereh Equipment intelligence. In the future the Company will continue increasing R&D investment and collaborating with partners to
T/CRRA 9920-2024 Evaluation Standards for Photovoltaic Power Group Standard Jereh New EnergyEquipment Recycling Enterprises Regeneration and Recycling build an innovation ecosystem promoting intelligent upgrades across the full industry chain.T/CRRA 9918-2024 Evaluation Standards for Wind Power Group Standard Jereh New EnergyEquipment Recycling Enterprises Regeneration and Recycling
T/CRRA 9915-2024 Guidelines for the Evaluation of Group Standard Jereh New Energy
Decommissioned Assets in Wind Farms Regeneration and Recycling
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Case Product and Service Quality
Jereh AI Supporting Cost Reduction and Efficiency Enhancement in Compressor Stations
In August 2025 Jereh Oil & Gas Engineering launched
the "Compressor AI Remote Intelligent Diagnostic Analy-
sis System" which analyzes vibration temperature and Improving the quality management system
other data to accurately predict faults advancing
maintenance from "scheduled maintenance" to "condi- Jereh Group and its subsidiaries strictly comply with the Product Quality Law of the People's Republic of China and ISO
tion-based maintenance". The system successfully 9001 quality management system requirements developing internal norms such as the Quality Manual. By clarifying
extended a unit's maintenance cycle from 8000 hours to quality management organization detailing responsibilities and core tasks for each position the Company establish-
10750 hours effectively reducing maintenance costs es a comprehensive quality management system covering all processes and factors ensuring high-standard premi-
and gas transmission losses. um-quality products. Simultaneously the Company implements the PDCA cycle method with professional support
Compressor AI Remote Intelligent Diagnostic Analysis System from the QHSE department to achieve closed-loop lifecycle management of product and service quality.Case Quality Management System (4)
Jereh Showcasing Multiple AI Oil & Gas Innovation Technologies at ADIPEC Organization and Its
In November 2025 Jereh presented at ADIPEC 2025 Environment (4) Support
under the theme "Powering Energy That Thinks" (7)Operation
showcasing AI innovation in the oil and gas sector (8)
through digital sand tables and other multidimen- Customer Satisfaction
Planning Implementation
sional formats. The Company launched AI*R FRAC
intelligent fracturing system smart manifold equip- Customer Planning Leadership Performance Quality Management
ment and intelligent inspection robot InEscourt Requirements (6) Role Evaluation System Results(5) （9）
enhancing energy system resilience and operational Disposal Inspection
efficiency attracting global oil and gas companies Products and services
and supporting intelligent transformation in the
Improvement
energy sector through digital-intelligent capabilities (10)
reshaping industry development patterns. Stakeholder NeedsADIPEC Exhibition – Jereh Booth and Expectations (4)
Case
PDCA Cycle
Jereh Agile Power Energy's Innovative Power Generation Solutions Enter North
American Data Center High-End Market The Company is the first oil service enterprise in China to pass API Q1 API Q2 certification and API QHSE integrated
In November 2025 Jereh Agile Power Energy signed management system certification. By the end of the reporting period the Company and multiple subsidiaries have
a multi-million-dollar generator set sales contract obtained ISO 9001 certification; Jereh Energy Services Abu Dhabi Branch obtained API Q2 certification the first API Q2
with global AI industry leaders. Using fully self-owned certificate for Jereh Energy Services in overseas regions.modular intelligent power generation solutions the
Company successfully entered the high-end power
market for North American data centers. The
products feature high integration and scenario
adaptability with core technologies such as
intelligent microgrid control ensuring stable and
efficient power supply complemented by full-lifecy-
cle one-stop services enhancing reliable power
provision in digital scenarios and supporting global AIDC Rendering
digital infrastructure energy needs. API Q1 Certification of Jereh Oil & Quality Management System Certificates of
Gas Engineering Some Subsidiaries of Jereh
71 722025 EnvironmentalSocialand
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Quality Risk and Opportunity Identification Quality Risk and Opportunity Management
Impact Jereh Group and its subsidiaries prioritize quality risk management. Based on the Riisk Managementt anndd EEmeergrgeennccyy
Risk Type Risk Description Occurrence Duration Explanation of Response Measures Response Conttrrool l PPrroocceedduurere and JES Risk and Opportunity Management Procedure they establish a risk and opportuni-Readability Reporting Financial Impact
Period ty management mechanism covering quality and service spanning identification assessment control and continual
Increase in operating costs: improvement. Risk analysis is conducted using methods such as LDC with controls implemented according to risk
If the Company devel- If the Company needs to recall level while simultaneously identifying opportunities for quality improvement achieving closed-loop management and
ops new equipment products due to performance Increase R&D investment continuous performance enhancement.or provides related issues this will directly lead to and continuously optimize
service technologies product recall losses damage
Operations Management
product services and Department
that are not yet the Company's reputation technologies Risk Information Resources Executors Various Business
mature there may be trigger breach of contract Departments
product performance compensation and further Strengthen product quality Product Mid- increase financial pressure. control strictly control
Risk Management Risk Assessment
quality risk instability or even Low Input Output term quality standards at every and Emergency PlanControl Procedures and Handling Plansafety accidents Increase in non-operating
leading to regulatory stage from design produc-expenses:
fines for the Compa- tion to delivery
Brainstorming
If a safety production accident Method Methods Process Goal N/A
ny while also affect- occurs due to immature new Develop detailed emergen- Checklist Method
ing the product's product technology the cy plans for potential techni-
market competitive- Company will face fines and cal or service issues Quality Risk Management Flowchart of Jereh Oil & Gas Engineering
ness. non-operating expenses will
increase.Enhancing Product and Service Quality
Insufficient response Increase in operating costs:
time limited fault Establish a rapid response Delayed product delivery may
repair capability service network and spare trigger customer claims and parts reserve system Product Quality Inspectiondelayed spare parts contractual penalties directly
supply or substan- increasing operating costs. Implement service standard- Jereh Group and its subsidiaries strictly follow industry norms and quality-related
After-Sales dard service may Low Short- ization and customer Decline in operating profits: standards developing internal management documents such as Inspection and Service Risk disrupt customer term satisfaction follow-up mech-
operations reduce Poor after-sales service may anisms Test Control Procedure and Project Quality Management System optimizing product
satisfaction and cause customer dissatisfac- inspection processes and strengthening quality control. Dedicated quality
tion leading to loss of custom- Establish escalation handling affect brand reputa- and closed-loop manage- improvement positions are established to analyze and correct quality issues
tion and long-term ers reduced future orders ment for major complaints supported by part-time quality staff with regular internal and external quality
cooperation. and revenue impact.review activities to ensure product quality and delivery reliability.The Company's metrology and physical-chemical testing center is CNAS-accred-
Impact ited with equipment personnel and management systems meeting interna-
Opportunity
Type Description
Occurrence Duration
Readability Reporting Explanation of Financial Impact tional standards providing precise and scientific testing data to provide solid
Period support for petroleum equipment and technical services. During the Reporting
Build an integrated and visualized Decline in operating costs: Period Jereh Group and its subsidiaries conducted a total of 13 quality risk
quality management information Use data insights to prevent potential risks assessments carried out 4 annual internal quality audits and hired a third-party Jereh Group CNAS Laboratory
Digital platform to enable traceable and and reduce losses caused by quality issues. agency for random inspection 6 times. Accreditation Certificate
Opportunities analyzable quality data throughout High Long-term Increase operating profit:
in Quality the supply chain and after-sales
Management Provide customers with transparent quality
Key Performance
processes shifting quality reports enhance cooperation confidence
decision-making from experi- improve brand reputation and drive order
ence-driven to data-driven. Product pass rate: 99.88%growth.
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Raw Material Procurement and Outsourced
Subcontracted Components Incoming Inspection Quality Culture Development
Parts Processing Process Inspection Guided by annual quality improvement Jereh Group and its subsidiaries organized multi-level multi-domain quality
training focusing on quality month activities failure case analysis key equipment operation and maintenance special
Parts Non-Destructive Testing Non-Destructive Testing processes and inspection techniques. Training combined specialized skills with hands-on exercises to enhance technical
R&D manufacturing and quality control personnel's professional abilities and reinforce company-wide quality awareness.Assembly Assembly ProcessInspection
Testing Functional Testing Key Performance
Final Product Inspection Finished Product FinalInspection
Quality training sessions: 131 Training hours: 4710 Training participants: 5858
Shipping or Warehousing Product Release
Customer complaints If customer complaints occur products will be recalled if necessary and cause analysis will be
performed to establish preventive measures
Jereh Energy Products Inspection Process
Quality System Audit
Jereh Group and its subsidiaries regularly conduct internal quality system audit activities by forming a professional internal
audit team. Based on the ISO quality management system standard they comprehensively review the processes document
records and actual operations of each department to timely identify and correct potential problems ensuring the effective
operation and continuous improvement of the quality management system.Case
Jereh Equipment Steadily Advances Quality System Audits
Equipment Failure and Hazard Analysis Training of Jereh Energy Services
In 2025 Jereh Equipment steadily advanced quality
management system audit work including DNV ISO
9001 scope expansion API Q1 scope expansion and
annual supervisory audits of the measurement
management system successfully covering photo-
voltaic products control panels and conference
signage. Additionally two types of quality system
recertification audits are being orderly conducted to
continuously strengthen system compliance and
effectiveness.Quality System Audit Onsite
Key Equipment Operation Knowledge Training of Jereh Oil & Gas Engineering
Quality Performance Evaluation
To strengthen quality management responsibility Jereh Group and its subsidiaries established complementary quality
management incentive and penalty mechanisms linking quality-related indicators directly to performance evaluations for
employees and management fully motivating participation in quality management and continuously improving product
and service quality.Product Recall Mechanism
Jereh Group and its subsidiaries have established a Defective Product Recall System to regulate collection analysis tracing
decision approval recall execution and product handling ensuring rapid initiation of recalls and lifelong product quality
responsibility when sold products have design manufacturing labeling safety or environmental defects or hazards effec-
tively protecting customer rights. During the reporting period no engineering or product recalls occurred in the Company
and its subsidiaries due to quality issues. Special Process and Technical Capability Training of Jereh Equipment
75 762025 EnvironmentalSocialand
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Achieving Quality Management Goals
To ensure comprehensive achievement of annual quality management goals Jereh Group and its subsidiaries continuously
optimize production processes strengthen employee training and introduce advanced quality management tools and
technologies systematically improving product and service quality. During the reporting period all quality targets were "2485" Response Mechanism
Regular After-Sales
Follow-up Whole-Life-Cycle
under control and overall work consistently met high-standard quality. Management
Main Subsidiaries' 2025 On-site issues: Respond within 2 hours Organize quarterly Establish records for all Company Name Quality Objectives Compliance status follow-ups on after-sales equipment covering the Provide emergency measures and sites and no less than 2 entire lifecycle of research
0 secondary response within 24 hoursProduct incidents: on-site visits per year production supply sales and service with all
Jereh Equipment Provide preliminary cause andClosed-loop rectification completion Achieved countermeasures within 48 hours information retained in
rate: 100% real-time for future useProvide a complete analysis report
within 5 days
Customer satisfaction ≥ 90%
Early Failure Rate ≤ 2 items/unit
In-plant failure rate ≤ 7 items/unit Improving Service Quality
Jereh Oil & Gas Process document anomaly rate ≤ 0.2 Achieved Jereh Group with Yantai as its global hub has built an international service network covering over 60 major cities to ensure
Engineering items/unit a timely response to customer needs. Throughout the service process the Company regularly conducts after-sales
Production welding pass rate ≥ 98% follow-ups efficiently handles customer complaints and continuously improves service quality. Service teams receive professional skills training with performance evaluations centered on assessment results to strengthen service capability.Material arrival pass rate ≥ 90% Customer feedback is collected across response timeliness service attitude and technical ability followed by in-depth
root-cause analysis to generate specialized customer satisfaction reports driving continuous enhancement of the custom-
Inspection accuracy rate ≥ 99.7% er service experience. During the reporting period the Company achieved a 100% customer complaint resolution rate
demonstrating tangible service results.Protection of Customers' Rights
and Interests
Standardizing Service System
Jereh Group places high emphasis on customer needs and has established a comprehensive customer service manage-
ment system. The Company has formulated specialized procedures including the After-sales Service Management Proce- On-site Service Control Procedure Training at Customer Service Concept Training at
dure Delivery Project and After-sales Safety Management System Customer Management Procedure Customer Satisfaction and
Feedback Handling Management Procedure Continual Improvement Management Procedure and Customer Complaint or Jereh Oil & Gas Engineering Jereh Equipment
Grievance Response Handling Management System covering full lifecycle customer service management. These measures
enhance the efficiency of hierarchical response to customer requests improve service quality traceability and review
mechanisms and ensure standardized and efficient service.
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Strict Protection of Data Privacy
Information Security Management System
Jereh Group strictly implements laws and regulations including the Cybersecurity Law of the People's Republic of China estab-
lishing internal documents such as the Information Security Management Manual and Information Security Committee Opera-
tion Management Regulations setting up the Information and Digitalization Department and forming the Information
Security Committee. A comprehensive information security management system is in place to ensure the integrity
availability confidentiality and controllability of company information. Currently the Company has obtained authoritative
certifications such as the AA-Level Integration of Informatization and Industrialization Management System Certification
Tier 3 Information System Level Protection Certification and ISO 27001 Information Security Management System Certifi-
cation.Integration of Informatization and Industrialization Information Security Management
Key Performance
Management System Certification Certificate System Certificate
Data security investment: RMB 2.8 million Information security and privacy incidents: 0
Information Security Management Measures
CIO
Information Security Management
Group Information and
Digitalization Department
Jereh Group strictly follows the Personal Information Protection Law of the People's Republic of China establishing
an all-encompassing protection system covering network security data encryption and data backup ensuring
Director that supplier customer and employee data are not leaked altered destroyed or illegally accessed effectively
safeguarding information security and data protection.Deputy Director Deputy Director Chief Engineer Deputy Director Information Security Management Strategies
Firewalls IPS WAF and other cybersecurity devices are deployed at key network
nodes with detailed network policy settings;
Manager Manager Manager Manager Manager Manager Manager Manager Manager
Cybersecurity The Company's internal servers and employee computers are equipped with
Protection endpoint security protection software;
All security threat logs collected by network security devices and endpoint security
Project
Management software are unified and summarized and security event analysis and disposal are
carried out by the security operation platform.Quality
management
Operations
Management
Data Encryption All employee computers and servers storing critical data are installed with data encryption software to prevent data leakage.HRBP
Administration
Office
R&D Effectiveness Data backup is carried out using multiple data protection technologies including disk
Data Backup RAID disk array synchronization distributed storage database synchronization server snapshots periodic backups of all information systems and offsite disaster recovery to
ensure that data is not lost.Organizational Structure of Information System
7980
Basic Operation and
Maintenance Center
Overseas Information
Technology Center
Platform Engineering
Center
Data Intelligence Center
Finance Digitalization Center
Marketing and Service
Digitalization Center
Functional Digitalization
Center
Supply Chain Digitalization
Center
R&D and Production
Digitalization Center
Quality Operations Center2025 EnvironmentalSocialand
Governance(ESG)Report
Information Security Audit Key Digital Construction Projects in 2025 Business Domain
Jereh Group incorporates information security into company-level risk management regularly conducting information securi- Project Name Business Progress
ty management system audits maintaining system effectiveness through routine evaluation and iterative optimization. In Domain
2025 the Company's all regional management systems under external audit confirmed their effective operation.
Policy and A full lifecycle management platform was launched in 2025 and went online in
Internal Information Regulation August covering process frameworks external standards policies quality
Security Audit Conduct internal information security audits and management reviews to identify poten- Management IT Domain system documents and lessons learned. This platform supports full-text search
(Annually tial security risks in advance ensure the effectiveness of the management system and Platform Project process unification knowledge assetization and explicit performance improv-
July–August) prepare for external system audits. ing collaboration efficiency and reducing operational risks.Master Data A unified master data management platform was launched in February 2025 External System Entrust third-party professional institutions for external system audits to comprehensive- for standardized management of core data including finance materials
Audit ly prevent risks in information security database protection and user information securi- Management IT DomainProject customers and suppliers enhancing data quality and supporting enterprise
(Annually November ty implementing corrective actions based on audit reports to ensure continuous optimi- decision-making.
–December) zation and effective operation of the management system.The project was started in September 2024 went online in February 2025 and
MSA Spare Parts Production was completed in 6 months. It achieves online management of pricing procure-Management Domain ment and sales data integrated with ERP inventory and substitute material System Project
Information Security Emergency Response data using strategic calculation models to improve procurement response efficiency.Jereh Group has developed the Emergency Response Plan for Data Information Security and Data Center Fire Protection Plans The project was started in March 2024 went online in April 2025 It enables
based on different types of information risks classifying cybersecurity incidents analyzing the risk levels and producing Recruitment full-process online recruitment and establishes a corporate recruitment website
risk identification and assessment tables to further enhance the ability and level to prevent and control sudden network System Project HR Domain a talent pool sharing mechanism an interviewer evaluation system and multidi-
and information security incidents. During the Reporting Period the Company carried out internal and external information mensional recruitment analysis enhancing recruitment efficiency.security drills multiple times to prevent and reduce the damage and impact of various unexpected events on information
systems ensuring the secure and stable operation of information systems.Information Security Training
In terms of information security awareness Jereh Group implements a routine information security promotion mechanism. Collaborative and Responsible Supply
On one hand it conducts multiple rounds of information security knowledge training and internal and external specialized
drills to systematically strengthen employees' security awareness and practical skills; on the other hand it utilizes "Informa-
tion Security Month" as a key platform to organize knowledge competitions seminars and other activities cultivating an
atmosphere where "everyone pays attention to information security and everyone participates in information security
construction". Implementing Supply
Supplier Admission Re-examination
Key Performance Chain Governance 1 of Qualifications of Old Suppliers
Information security training Number of trainees: over Employee training coverage: Jereh Group has formulated and implemented suppli-
sessions: 20 7500 100% er management systems such as the Supplier Manage-ment Standards the Supplier Classif ication Management Digitalization
Measures the Measures for the Administration of Supplier
Annual Performance Evaluation and the Supplier Hand- Supplier Exit
Drive
Digital-Driven Efficiency Enhancement book. The Company sets the introduction standards ntand requirements based on category strategies and 2 S
the current situation of suppliers selects qualified up ep inklier e L
Jereh Group centers on information and digitalization systematically planning the Company-level digital development Performancsuppliers that meet the qualification requirements SQE Per ent
path from 2024 to 2026 continuously optimizing IT processes iteratively upgrading business systems and building a form sessmand has the procurement department work with the ance As
unified technical platform to comprehensively improve operational efficiency and management accuracy. process quality technology and other departments
The Company focuses on building a secure reliable and scalable enterprise-level digital architecture strengthening to carry out daily management performance evalua- Full Lifecycle Management of Suppliers
system integration and data governance to support engineering upgrades and new energy expansion. Through systemat- tion and audit evaluation of suppliers to achieve
ic IT development a solid digital foundation is established ensuring that the Company maintains technological leadership refined control of suppliers across the full life cycle.and operational stability during digital transformation.
8182
Process
Improve
QE
ment
S
d to
2 Su app Mlier P manc
e
erfor
na ug Sement
e Mana
gement
n-sit
QE
O
S
3
pplier P eer mfo erm cance Enhan2025 EnvironmentalSocialand
Governance(ESG)Report
Supplier Management Mechanism ImpactOpportunity
Type Description
Occurrence Duration Explanation of
Readability Reporting Financial Impact
Supplier Determine qualified suppliers fairly and impartially through procedures such as source
Period
Access investigation entry surveys reviewing qualifications technical communication on-site Supply chain collaboration and optimi-inspections and sample testing. zation helps to improve procurement Decline in costs: This promotes
Opportunities in inventory management and logistics supply chain collaboration enhances
Conduct performance evaluations at each stage based on the supplier's qualifications Management processes continually strengthen rela- High Long-
cooperation with suppliers and drives
product quality improvement and cost
Supplier environmental management quality management cost management delivery management Efficiency tionships with partners and enhance term reduction through information sharing
Evaluation and service conditions. Based on the evaluation results classify suppliers into categories: Excel- the flexibility and adaptability of the and resource integration.lent Suppliers Preferred Suppliers Qualified Suppliers and Unqualified Suppliers. supply chain.Identification Review whether suppliers have passed certifications for environmental quality and occupa- In response to the "dual carbon" policy
of Supply tional health systems and whether they have conducted comprehensive identification and establish green supply chains for elec- Increase in revenues: Obtain policy
Chain Risks control of risks related to the environment society and business cooperation.Green Supply tric drive equipment gas turbine power
Chain generation and environmental protec- subsidies and green order preferenc-
Development tion equipment (e.g. energy-efficient High Long- es expand supply chain business for new energy supporting equipment
Elimination of Terminate cooperation with any supplier that causes a major environmental pollution incident Opportunities motors eco-friendly material suppliers)
term
and drive revenue growth.Suppliers or safety accident violates health and safety regulations more than three times or engages in aligning with industry green transition serious dishonest business practices during the fulfillment process. demands.Supply Chain Risk and Opportunity Identification Supply Chain Risk and Opportunity Management
Jereh Group analyzes market dynamics supplier stability and raw material price trends in depth by establishing strategic
Occurr- Impact alliances with suppliers conducting regular evaluations and audits and scientifically using information exchange platforms.Risk Type Risk Description ence Duration Explanation ofReada- Reporting Financial Impact Response Measures The Company refines supply chain risk management and opportunity capture adopts diversified procurement strategies and
bility Period long-term cooperation mechanisms to ensure supply chain resilience and enhances overall competitiveness.Flexibly adjust procurement
strategies to respond to price
Raw material prices may Strengthen Supplier CommunicationIncrease in operat- fluctuations including negotia-
increase due to trade policies ing costs: Rising raw tions on price payment terms Jereh Group builds a multidimensional high-efficiency supplier communication mechanism. On the one hand it periodically Price Risk of natural disasters production Long- material prices directly and supply proportions
Raw Materials costs and other macroeco-
Low organizes supplier conferences to integrate online and offline channels creating platforms for deep exchange co-creation
term increase procurement
nomic factors. Sign long-term contracts with and resource sharing; on the other hand it irregularly conducts supplier satisfaction surveys to identify potential issues and costs. high-quality suppliers to lock in optimization opportunities continuously improving collaboration processes refining details and consolidating a mutually
key raw material prices and
reduce fluctuation risks beneficial cooperation foundation.On-site Inspection and
Cross-border procurement or Establish supplier compliance Communication regarding the
delivery may violate interna- Compliance risk costs: Other Daily Business MechanismsSeizure of goods high review mechanisms to verify if
Supplier's Enterprise and
Supply Chain tional trade control regula- Equipment
tions (e.g. China-US export Med- Long- fines and business
suppliers or related parties are
on restricted lists HSE Management Special HSE MeetingsCompliance control sanctions lists) or suspension directly ium term Recommendations Special Quality Meetings etc.involve non-compliant suppli- affect overseas order Conduct regular compliance Risk delivery. training and optimize cross-bor- Quality Issues and ers. Improvements Visits to Suppliers' Factoriesder logistics routes.Product and Service Solutions
Senior management Establishment of Strategic Cooperation
Establish long-term partnerships Cost Control meetings
Negotiation on Framework
Large equipment (e.g. com- with large logistics companies
plete fracturing units) has and optimize special equipment
Visits between Contract
Increase in operating Suppliers andtransportation plans
long transport distances and Demanders Joint Operation of Market Logistics and costs: Costs include challenges or cross-border expedited shipping Maintain safety stock of key Market Information Supplier
Projects
Delivery procurement of key compo- Med- Short- components to shorten delivery and Demandfees and a penalty for Conferenceium term cycles
Risks nents may face logistics con- delayed orders.gestion and geopolitical Prefer nearshore suppliers for SupplierCommunication
impact causing delivery critical cross-border components Channels
delays. to reduce geopolitical impact
83 842025 EnvironmentalSocialand
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Case Supplier Sustainability
First Strategic Supplier Conference Successfully Held in Dezhou United Petro
In September 2025 themed
"Harnessing Unity Empowering Supplier ESG Management
the Future" Dezhou United Pet-
ro's first strategic supplier con- Jereh Group integrates responsible procurement principles into practice strictly enforcing green standards prioritizing
ference was successfully held in environmentally compliant products with low environmental impact high resource utilization and low energy consump-
Dezhou Shandong focusing on tion. In supplier management social responsibility performance safety management capability and environmental protec-
strategic cooperation sharing tion are included in supplier onboarding and continuous evaluation. By signing the ereh-Supplier oint Commitment suppliers
intelligent technology achieve- are required to fulfill QHSE (Quality Health Safety Environment) commitments promoting sustainable development
ments and jointly creating new values and building an environmentally friendly responsibly shared green supply chain ecosystem.blueprints for cost reduction and
efficiency enhancement. Supplier QHSE Joint Commitment Terms
Supplier Conference Site
Suppliers must ensure that product quality meets mutually agreed-upon shipping
inspection and acceptance standards or complies with national and industry technical
standards.Improvement of Procurement Capability Suppliers are obligated to establish and continuously optimize a QHSE system in accor-
Quality dance with international standards such as ISO 9000 Environmental Management
Jereh Group continues to enhance procurement system capabilities improving professional competence of supply chain System ISO 14001 Occupational Health and Safety Management System OHSAS 18001
personnel through multiple measures. The Company systematically integrates internal and external training resources or the American Petroleum Institute API Q1 requirements.extending training to R&D process and other collaborative departments strengthening cost awareness and quality
control across the supply chain. The Company also establishes procurement professional career development and promo-
tion channels guiding employees to enhance professional skills and overall competence providing talent support for If suppliers need to use flammable explosive toxic or hazardous materials in the
high-quality supply chain operations. provision of products or services they must implement preventive measures to avoid fire explosion or leakage during storage and transportation preventing environmental
pollution. Additionally vehicles transporting hazardous materials must display clear
Key Performance hazard warning signs.Health and Suppliers must provide necessary training on environmental protection and safe opera-
tion practices for their workers. Personnel performing specialized operations must hold
Number of procurement Safety valid Special Operation Certificates.training sessions: 4 Suppliers must set up clear safety warning signs at construction sites equip sufficient
fire emergency equipment and ensure unobstructed fire safety passageways.Number of employees
received the training: 791
The products provided by suppliers and the raw materials used to produce these
products must comply with international national local and industry-related environ-
mental protection applicable laws and regulations.Suppliers should prioritize using eco-friendly processes equipment and packaging
materials with minimal or no pollution while ensuring the quality of products or services
2025 Procurement Negotiation and Cost Control Training Environmental meets the Company's requirements.
Protection During operations suppliers should focus on conserving resources such as water and
electricity strengthen energy-saving and emission-reduction education for employees
and prevent environmental pollution caused by leaks spills or emissions.
85 862025 EnvironmentalSocialand
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Supplier Digital Management
Jereh Group continuously advances supplier digital mana-
gement transformation to improve overall supply chain eff- Must not accept or solicit cash vouchers gifts or any form of
iciency and transparency. The Company builds an SRM gratuity from partners.supplier digital management platform integrating supplier
onboarding performance evaluation quality management
procurement collaboration contract management and Must not privately accept hospitality from partners or privately
data governance enabling full-process online collaboration entertain partner personnel.and real-time information sharing with suppliers breaking
information silos and improving cooperation efficiency. Must not conduct any private transactions or borrow/loan assets
with partners.Using big data analytics and AI the Company accurately
monitors market trends supplier operations and potential
risks formulating more scientific management strategies SRM System Must not develop private relationships with partners solicitbusiness or seek improper benefits.achieving real-time visibility intelligent alerts and dynamic
control across the supply chain upgrading management
from "experience-driven" to "data-driven" ensuring precise Must not request or accept personal favors or preferential
and forward-looking procurement decisions. treatment from partners.Partners must not provide the above personal favors or benefits
Transparent procurement to Jereh employees.Jereh Group considers business ethics and clean procurement as core to supply chain management building a transparent
and clean supply chain community based on systems process control and ecosystem co-creation. The Company adheres
to the "sunshine procurement" principle maintaining "zero tolerance" for corruption and fraud embedding integrity
requirements into the full procurement process via the Agreement on Procurement Behavior and the Strategic Procurement
Norms.To effectively manage risk the Company implements a dynamic governance mechanism of "prevention – process supervi-
sion – transparent control". During execution strict adherence to three-or-more bidding comparisons supplier onboarding
evaluations and contract integrity clauses is enforced; process transparency and loophole control are ensured through
special audits key position supervision and the Reported Gifts Process.Additionally the Company extends integrity requirements throughout the supply chain; all partners are required to sign the
Anti-Bribery and Integrity Agreement with compliance performance serving as a core criterion for collaboration evaluation.Any fraudulent behavior results in immediate termination of cooperation and accountability fostering a fair and healthy
business ecosystem.Promotion of Transparent Procurement Principles
8788
Integrity Procurement: Mutual
Conduct Guidelines for Partners2025年度环境、社会和公司治理报告
Safety as the Priority: Building
A Comprehensive Protection Network
Jereh Group deeply recognizes that occupational health and safety are fundamental prerequisites for sustainable develop-
ment. A sound occupational health environment and rigorous safety production controls effectively prevent occupational
diseases and accidents safeguard employees' physical and mental well-being and enhance operational efficiency.Responded UN Sustainable Development Goals (SDGs):
89 902025 EnvironmentalSocialand
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Health and Safety Governance Additionally the Company has established dedicated occupational health teams. Each unit must designate an occu-pational health management department and assign full-time or part-time personnel to regularly monitor occupation-
al hazard factors conduct health check-ups and maintain protective facilities ensuring effective operation of occu-
pational health management. By the end of the Reporting Period the Company and its subsidiaries including Jereh
Jereh Group strictly adheres to occupational health and safety policies treating safe production as the bottom line. Environmental Protection Jereh Equipment and 10 others have all passed the ISO 45001:2018 Occupational Health
The Company coordinates measures to protect personnel health and operational safety continuously advancing the and Safety Management System certification."220" HSE system clarifying HSE policies and objectives and strengthening fundamental risk prevention capabilities.Group HSE Management
Committee
Director: Chairman
Top-down Full HSE
Commitment Commitment
Ten HSE Management Principles Executive Officer
2 Major Frameworks: Thirty Clauses Ten Life-saving Clauses Top Ten
Organization & Culture Core Risks and High-risk Violations
Systems & Risks
20 Core Elements: 2 Major Frameworks HSE ProfessionalSupport Team HSE Management Office
Covering management 20 Core Elements
of safety occupational Guiding Documents for HSE
health environmental Activities
protection fire safety
traffic safety etc. Procedural Documents HSE Accident and Incident
Management Regulations
7 Hazardous Operations HSE Evaluation and Incen-
Safety Standards Work tive Management Regula- HSE Operations Subcommittee
Subgroup HSE Functional and Administrative
Management Subcommittees HSE Management Subcommittee
Permit Safety Manage- tions…
ment Standards Work Standard Practices
Safety Analysis Manage-
ment Standards Road
Traffic Safety…
"220" HSE Management System Framework of Jereh Group Subgroups/subsidiaries
To establish a systematic HSE management system the Company has set up an HSE
Management Committee chaired by the Chairman and composed of senior manage-
ment and department heads. This committee serves as the core decision-making
body for HSE strategies policies and major issues. Concurrently standardized proce-
dures such as the Occupattiionall Health Maannaaggeemeenntt SSyystsetemm HSE Maannaaggeemeenntt
Principles and Accident Management Meeaassuurreess have been developed creating a
management framework of institutional leadership + procedural support. All levels of
HSE committees conduct regular meetings and work reporting to identify existing Organizational Structure of HSE Management in Jereh Group
issues formulate rectification measures dynamically optimize improvement plans
and ensure comprehensive implementation of HSE initiatives. Occupational Safety Management
System Certification
9192
HSE Culture and Leadership Group
Risk Control Group
Incident Group
Contractor Management Group
Compliance Management Group
Personnel Capability Group
Process Safety Group
Environmental Protection Group
Occupational Health Group
Toxic and Hazardous Chemicals
Management Group
Emergency Management Group
Office Safety Center
Administrative Affairs Management Center
Engineering Maintenance Management Center
Vehicle Management Center
Logistics Management Center
Epidemic Management Center
Fire Safety and Security Management Center
Overseas Safety Management Center
Process Safety Management Center
Engineering Safety Management Center2025 EnvironmentalSocialand
Governance(ESG)Report
Health and Safety Strategy ImpactOpportunity Type Description Occurrence DurationReadability Reporting Explanation of Financial Impact
Period
Increase in operating incomes:
A well-established occupational
Impact
Risk Type Risk Description Occurrence Duration Explanation of
The Company may significantly health management system good
Readability Reporting Financial Impact Response Measures enhance its public image and gain employee rights protection and em-
Period the trust and support of stakehold- ployee welfare policies will attract
Reduction in operat- Brand Development ers and the market by establishing Long- high-level talent to join the Compa-
ing revenues: Implement HSE manage- Opportunities
High
and improving the HSE manage- term ny which is beneficial for improving
Occupational health or
Work stoppages will ment strengthen safety ment system and implementing the Company's market competitive-safety incidents may result occupational health and safety pro- ness in aspects such as innova-
in the temporary shutdown directly cause produc- production training devel-
Operating Short- tion delays and order op emergency response duction management. tion-driven work efficiency and
Risks of affected production lines Low investment attraction thus expand-work sites or projects direct- term delivery delays poten- plans improve employees'
tially triggering contract emergency prevention ing the Company's market share.ly interrupting normal opera-
tional processes. breach risks and cur- capabilities and prevent
rent period revenue safety accidents
loss. Risk and Opportunity Management
Improve the occupational
Increase in operating health and safety man- Jereh Group centers on building a systematic standardized safety management system fully covering risk forecast-
Adverse environmental costs: agement system clarifying ing hazard mitigation emergency response incident handling cultural development and stakeholder collaboration
conditions at project sites In cases of occupation- responsibilities and obliga- reinforcing the safety production defense line.and limited emergency al diseases the Com- tions
Occupational resources may lead to per- pany must bear em- Strengthen employee
Safety sonnel casualties team Short- ployee medical expens- safety training and educa- Safety Risk Control
and reduction and decreased Low term es work injury compen- tion raising employees'
Health Risks production efficiency caus- sation and potential safety awareness Jereh Group steadily advances a standardized risk control system routinely conducting systematic risk identification
ing substantial damage to government fines; Conduct regular safety comprehensively inspecting hazards in critical production operations such as large machinery tasks; implements
the Company's "safety media coverage may inspections and hazard dynamic risk monitoring and graded evaluation including major safety risks like electric shock mechanical injury and
first" reputation. increase operational identification promptly
costs. fire/explosion in key control lists identifying ten core risks and high-risk violations; warns all staff to strengthen risk discovering and eliminat-
ing potential safety risks anticipation and control awareness building a proactive risk management defense.The Company has established supervision and inspection mechanisms conducting multiple rounds of special inspec-
tions at key units to achieve full coverage of self-inspection mutual inspection and supervisory checks; it continuously
Increase in operating Conduct preliminary
HSE regulations vary signifi- strengthens risk control execution to ensure graded control standards are effectively implemented. During the report-costs: research on local regula-
cantly across countries (e.g. tions and assign local ing period all 11 subsidiaries established occupational health and safety risk management procedures.stricter environmental and Non-compliance with local HSE regulations compliance officersoccupational health stan-
HSE dards for oil and gas opera- may result in extra Develop compliance
Safety Hazard Assessment
Compliance Short-tions in Middle Eastern Low fines schedule delay term checklists by business unit Risk losses restricted market and track training on new Jereh Group has implemented the HIC information system and strictly follows the HIC Managementt RReegguulalattioionnss. countries). Failure to comply access and increased regulations Routine inspections surprise checks and comprehensive patrols regularly monitor safety conditions promptly identi-with local requirements
may trigger additional fines compliance adaptation Perform regular audits and fying preventing and correcting unsafe factors and potential accident hazards preventing production safety
or project suspensions. costs for future business establish HSE compliance incidents. The Company also prepares a company-level typical hazard atlas and promotes workshop and team-level expansion. early-warning plans atlas preparation to achieve risk visualization.During the reporting period units submitted 95625 HIC cases through the HIC system achieving a 100% safety
hazard rectification rate.
93 942025 EnvironmentalSocialand
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Safety Emergency Management Case
Safety Production Special Emergency Drills in Subsidiaries
Jereh Group continuously improves optimizes the emergency response mechanism and improves emergency
response mechanisms based on the Measures for the Administration of Emergency Response Plan for Production Safety
Accidents and other requirements. The Company formulates emergency drill plans organizes emergency accident
rescue drills strengthens employees' safety awareness enhances their safety skills and solidifies the Company's
safety production defense line.Key Performance
Emergency drills were conducted:582 Emergency drills coverage:13182person/times关键绩效
Case
Comprehensive Emergency Evacuation and Fire Drill at Jereh Equipment案例
In June 2025 Jereh Equipment conducted emergency evacuation and fire drills to test the rationality of
emergency response procedures and measures master essential emergency handling skills and improve all
employees' ability to respond to sudden incidents.Vehicle Injury Accident Emergency Rescue Drill in Jereh Equipment
Comprehensive Emergency Evacuation and Fire Drill
Case
Safety Production Special Emergency Drills in Subsidiaries
Fire Emergency Drill in Jason Energy
Pressure Vessel Accident Simulation Drill in Jereh Equipment
95 962025 EnvironmentalSocialand
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Safety Incident Management人人讲安全人人会应急时时查隐患层层筑防线
Jereh Group has formulated the HSE Incident Management Regullatiions complemented by digital tools to strengthen
incident management. Through the HSE Incident Management System and standardized processes precise control
1.外部专家讲安全1.创伤急救培训1.外部专家精准诊断1.一把手在行动
is maintained across all stages. For incidents that occur the responsible unit must hold an incident investigation and
analysis meeting review the incident process analyze causes and develop targeted long-term preventive measures. 2.集团层面讲安全 2.各类应急演练 2.内部交叉帮扶诊断 2.中层履职评估
During the Reporting Period no work-related fatalities or major safety responsibility accidents occurred in the Company. 3.一线员工讲安全 3.应急技能比武 3.HIC提报 3.兼职安全团队评估
4.安全团队讲安全4.厚仁基地参观学习4.典型隐患图册4.一线员工应知应会
Key Performance
Safety production investment:RMB38.2068million
Safety Production Month Diverse Activities
Safety Training Lectures Trauma First Aid Training Emergency Skills Competition
HSE Incident Management System
Training and Culture Development Visits to External Warning Internal Cross-Unit Hazard Atlas PreparationEducation Bases Support Diagnostics
Jereh Group conducts themed activities such as "Safety Production Month" and "Occupational Health Awareness
Week" to advance a safety culture. The Company establishes annual safety training plans guiding units to build Safety Management for Related Parties
training systems adapted to business characteristics and operational environment differences. In addition through
classroom teaching seminars competitions and on-site exercises it integrates laws and regulations to improve Jereh Group attaches great importance to stakeholder safety management issuing the HSE Guiidelliines for Contractor
training effectiveness. Selection clarifying contractor entry standards establishing a qualified contractor directory and a blacklisted contrac-
tor list to provide rigid compliance criteria.Key Performance Throughout collaboration the Company signs HSE agreements with contractors strictly conducts pre-entry HSE
2.7064 872 briefings clarifies project nature regulations rewards/penalties and environmental safety requirements; implements Safety education investment:RMB million Safety education training sessions: contractor HSE commitment and special penalty management rules; through strict training process supervision and
Safety training hours:872 Safety training coverage rate:100% periodic assessment the Company fully regulates stakeholder operational behavior and ensures safety throughout
collaboration.
97 982025 EnvironmentalSocialand
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Setting Indicator Targets Hazardous Factor Detection
Jereh Group has developed policies for identifying occupational disease hazards strictly enforcing identification and
Jereh Group builds a clear responsibility and strict accountability safety culture anchored to the HSE core objectives regular monitoring systems ensuring workplace hazard factors comply with national occupational health standards
of "zero injuries zero incidents zero pollution" fully protecting the health and safety rights of employees contractors and controlling occupational health risks at the source to protect employees' health. In addition the Company has
customers and operational sites. built an occupational disease hazard project reporting system to support orderly occupational health monitoring
projects achieving a data-driven management and continuous monitoring closed loop.During the reporting period the Company successfully achieved annual occupational health and safety targets; in
2026 it will continue benchmarking HSE management system standards steadily advancing and implementing all
safety strategic tasks. Key Performance
Detection Rate of Occupational Disease Hazards:100%
Pass Rate of Occupational Disease Hazard Detection:100%
Zero Zero Zero
Injury Accident Pollution
Case
Subsidiaries of Jereh Group Conducted Occupational Disease Hazard Factor Detection
In 2025 Jereh Group and its subsidiaries collaborated
Jereh Group HSE Strategic Goals with third-party institutions to conduct occupational
hazard factor testing. Based on test results the
Company prioritizes protective equipment and materi-
al management for special positions exposed to dust
noise toxic and hazardous substances building a
Occupational Health Protection full-chain occupational health protection mechanism
to effectively prevent occupational disease risks.Jereh Group establishes a sound occupational health protection mechanism standardizes health management
processes strengthens operational protection and health monitoring and enforces health and safety responsibilities Occupational Hazard Factor Testing Report Disclosure
at Jereh Machinery
fully safeguarding employee occupational health rights.Key Performance Case
Recordable incident rate of personal injury:0.13times per200000working hours Posting Occupational Hazard Warning Cards and Operational Area Warning Signs
Lost workdays due to work injuries:748days
The work injury insurance investment was RMB4.184million
Coverage rate of work-related injury insurance for employees:100%
The safety production liability insurance investment totaled RMB108600
Work safety liability insurance coverage rate:100%
99 1002025 EnvironmentalSocialand
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Provision of Labor Protection Equipment Case
Subsidiaries of Jereh Group Conducted Employee Occupational Health Checkups
Jereh Group committed to employee health has established systems such as the Labor Prrotteccttiion EEqquuipipmmeenntt
Management System providing standard protective equipment including helmets safety goggles and earmuffs for In 2025 Jereh Group and its subsidiaries conducted
annual occupational health checkups ensuring all
all positions and placing safety warning signs in work areas ensuring dual protection of work environment and
special-position employees received necessary checks
personal safety creating a safe healthy and compliant operational atmosphere. dynamically improving occupational health records
accurately recording checkup data and health status
and effectively safeguarding employee health and legal
rights.Occupational Health Monitoring Records
Safety Helmets for Production Process Requirements for Wearing
Personal Protective Equipment
at Production Workshop
Occupational health checkups
Jereh Group prioritizes occupational health monitoring regularly organizing comprehensive employee health check-
ups and dynamically monitoring health status. Dedicated departments uniformly manage employee occupational
health records ensuring timely identification and prevention of potential health risks providing precise health
interventions and comprehensive health protection. During the reporting period occupational health checkup cover-
age was 100%.Key Performance
Number of participants:2995 The occupational health checkup coverage rate is100%
1011022025年度环境、社会和公司治理报告
Responsibility and Benevolence
Cultivating Public Welfare
Jereh Group upholds a "people-oriented" philosophy continuously improving employee rights protection focusing on
physical and mental health enriching welfare policies and taking multiple measures to enhance employee happiness
and sense of belonging achieving mutual growth of the Company and employees.Responded UN Sustainable Development Goals (SDGs):
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Protection of Employees' Rights and Interests Case21-Day Onboarding Program for Graduates
In July 2025 Jereh Group held the "21-Day
Innovation Camp" empowering new profes-
sionals with the enterprise spirit. By sharing the
Talent Acquisition and Retention Company's development journey and core culture the program provided a collaborative
and growth-oriented platform directly address-
ing the needs of new graduates for onboarding
Diverse Recruitment and adaptation helping them quickly integrate
into the organizational environment and
Jereh Group follows an open recruitment strategy leveraging campus recruitment social recruitment and veter- smoothly embark on their career journey. Activity Photo
an-specific recruitment to continuously expand employment and create more jobs for society. To ensure recruitment
compliance fairness and transparency the Company has established the Recruitment and Employment Management
System to standardize procedures and create a fair and equitable employment environment.Employee Structure and Stability
Recruit veterans based on position needs
Jereh Group upholds the core principle of "stabilizing the team and retaining talents" emphasizing the construction
and provide adapted positions to support
of a stable workforce and actively implementing talent retention measures. The Company consistently monitors
employment of vulnerable groups.Specialized employees' career development and personal challenges proactively addressing their reasonable demands regard-
Recruitment ing professional growth incentives and communication. Over the past three years no major layoffs have occurred
and team stability has been continuously reinforced.Key Performance
Total employees:7722 Number of employees with disabilities:97 Employees of ethnic minorities:123
Collaborate with multiple
universities through online Employee turnover rate:18.83%
On-campus presentations in over 100
Recruitment institutions and campus 33 339 499
731
presentations in over 50 971Social 167
Recruitment universities focusing on
Number of Number of 1430 Number of 4019
graduates widely attract- 489Employees Employees Employees
by Gender (by Employee Level) (by Profession)
Recruit through dual channels:on-site recruit- ing talent.
2041
8761693
67517350
ment (participating in local Yantai job fairs) Number of
Female Senior Management Production Sales Technology Finance
and headhunter cooperation (linking with over EmployeesMale Mid-Level Management Administration Supply Chain Personnel by Age
20 agencies for mid-to-high-level positions). Frontline Employees 123 3499
1937 914 Under 30 (Exclusive) Years Old
30 to 40 Years Old (Inclusive of
Number of Number of 30 Exclusive of 40)
Employees 4075 Employees Employeesby Ethnicity 40 to 50 Years Old (Inclusive of
Key Performance (by Academic Qualification) by Region 40 Exclusive of 50)
1710 6808 7599 50 Years Old or Above
New hires:1883 Including: On-campus recruitment:126 Social recruitment:1757 Bachelor's degree or above Chinese Mainland Ethnic Minorities
College Overseas Regions Non-Ethnic Minorities
Secondary Vocational and Below Employee Composition
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Employee Turnover Employee Turnover Rate by Age Upholding Labor and Human Rights CommitmentsRate by Gender
The Company is committed to implementing human rights commitments across all operations integrating responsible
human rights management into corporate governance and daily operations and continuously identifying preventing
13.04 Under 30Female 22.82 10.95
30 to 40 Years Old
% % (Exclusive) Years Old % (Inclusive of 30Exclusive of 40) and addressing potential human rights impacts throughout its operations and value chain.Key Areas Specific Practices
15.60 13.95 40 to 50 Years OldMale 16.32
% % (Inclusive of 40Exclusive of 50)
50 Years Old or Above
% Strictly enforce the Code of Business Conduct and Recruitment and Employment Management
Prohibition of Child
Labor and Forced System using information verification and identity authentication to prevent child labor and
Employee Turnover Statistics Labor forced labor; in overseas operations and supply chain management strictly comply with local
labor laws and regulations protecting minors.Prohibition of Work- Eliminate all forms of discrimination and harassment ensuring employees are not treated Diverse Rights Protection place Discrimination unfairly based on race gender age religion cultural background or physical condition; active-
Bullying and Harass- ly provide employment opportunities for vulnerable groups; establish reporting and investiga-
ment tion mechanisms to ensure complaints are handled promptly and fairly.Labor Rights Management Respect employees' freedom of association and collective bargaining rights Support employ-ees in forming or joining legitimate organizations in accordance with the law. Domestically the
Freedom of Associa-
Jereh Group strictly complies with the Labor Law of tthe PPeeoopplele''ss RReeppuubblilcic o off C Chhininaa the Laborr Contract Law of the Company maintains regular communication with employee representatives; in overseas tion and Collective
Bargaining operations it strictly complies with local collective bargaining laws and engages in construc- People's Republliic of Chiina and other national labor laws and regulations. The Company also commits to upholding tive dialogue with lawful unions or employee representatives regarding labor conditions and
the Uniiverrssall Decllarratiion of Human Rights and the core labor standards of the International Labor Organization (ILO) remuneration.integrating human rights principles comprehensively into its global human resource management system covering
Comply with local labor regulations implement a fair compensation and benefits system
all domestic and overseas employees. The Company implements an open and transparent recruitment process ensure equal pay for equal work regulate working hours and overtime and guarantee
prohibits all forms of discrimination strictly forbids child labor and rejects modern slavery or forced labor practices. Employee Compen- statutory rest and leave rights. Overseas projects implement rest and leave arrangements
During the reporting period no major labor disputes or violations of employment regulations occurred and the overall sation and Rest according to local laws while paying attention to employees' physical and mental health and
employment environment remained compliant and harmonious. work-life balance.In overseas operations the Company prioritizes compliance and cultural respect establishing localized human Establish transparent and fair performance management and promotion mechanisms
resource management systems to ensure that overseas employees enjoy the same rights and protections as local Fair Development providing equal career development and training opportunities; support employee growth
and career advancement in global operations through cross-cultural leadership localized
employees. Through regular compliance reviews and training the Company ensures that all overseas branches fully training and international position exchanges.comply with local laws and international human rights standards regarding employment compensation working
hours and benefits. For pregnant maternity and breastfeeding employees provide protection and convenience Protection of Female
Employees in accordance with laws such as job adjustments and lactation facilities; for overseas opera-
Key Performance tions implement female protection measures in accordance with local culture.Establish multiple confidential grievance channels to ensure employees can raise human
Percentage of Contract Workers:100% Child labor and forced labor incidents:0 Human Rights Griev- rights concerns; all grievances are recorded investigated and responded to in accordance ance Procedures with procedures with any form of retaliation strictly prohibited.Workplace discrimination bullying and harassment incidents:0
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Local Employee Rights Protection special interests of female employees. For pregnant maternity and breastfeeding employees the Company guar-
antees rest and leave rights provides personalized services and facilities such as nutritional porridge for expectant
The Company attaches great importance to protecting local employees' rights systematically covering local hires mothers standardized lactation rooms and "baby care room" while benchmarking international practices to foster
Chinese expatriates and overseas cross-border employees. For local employees in addition to standard benefits such a fair and inclusive workplace.as holiday allowances and shuttle meals the Company promotes cross-cultural understanding workplace inclusion
and applies equality principles in compensation benefits and career development ensuring all lawful rights are The Company regularly organizes female-specific activities including hiking flower arranging health lectures beauty
protected. For expatriates the Company provides comprehensive support including cross-border compensation and classes and International Women's Day events. Adhering to diversity equality respect and inclusion the Company
benefits medical care safety and emergency support and family care ensuring safe and stable overseas work and strictly prohibits workplace gender discrimination provides equal career development opportunities for women and
life. For overseas-hired employees the Company establishes localized career development channels fair promotion fully supports female employees in achieving self-value and professional growth.mechanisms and cross-cultural integration programs safeguarding long-term development rights and professional
dignity. By continuously optimizing human resource management and site operations the Company creates a Key Performance
compliant respectful and inclusive environment for all on-site employees achieving mutual growth for individuals
and the Company. Female employee ratio:12.57% Female employee ratio in the Board:33.33%
Case Number of employees who took maternity leave:43
Localization of Human Resource System in the Middle East Return rate of employees who took maternity leave:100%
To protect overseas employee rights Jereh Middle East
Center promotes local HR system localization aligning
with local regulations. The team focuses on optimizing
recruitment visa and employee relations processes
ensuring compliant operations and enhancing manage-
ment transparency. By actively recruiting local talent
and liaising with agencies the Company strengthens
the management foundation while providing a stable
respected and culturally appropriate work environment. Middle East Human Resource Management
Standardized Lactation Room Baby Care Room at Jereh International Women's Day activities
Extending Partner Rights
The Company actively explores extending labor rights protection to domestic and overseas supply chain partners Valuing Cultural Diversity
steadily advancing responsible value chain management and clarifying standards for labor rights management for
suppliers at all levels. The Company emphasizes core compliance standards such as anti-discrimination and Jereh Group regards cultural diversity as an important component of global competitiveness promoting cross-cultural
anti-forced labor gradually integrating them into supplier admission and ongoing evaluation frameworks while management systems and fostering equal dialogue and efficient collaboration among employees of different nation-
considering local policy requirements and practical differences. alities and cultural backgrounds.The Company adheres to a pragmatic approach advancing labor rights protection in domestic and overseas value
chains steadily and gradually practicing shared responsibility and working with global supply chain partners for Cultural Differences Survey
compliant development and mutually beneficial cooperation.The Company conducts site visits and surveys to collect challenges needs and suggestions in cross-border business
and cross-cultural management optimizing cross-cultural team management.Safeguarding Female Employees' Rights
The Company strictly implements the Law on the Protection of Women's Rights and Interests Special Provisions on Labor
Protection of Female Employees and local overseas female labor protection regulations ensuring the legal rights and
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Case Cultural Inclusion and Co-Building
Cross-Cultural Team Management and Cultural Difference Survey in the Middle East The Company actively promotes multicultural integration overseas through employee birthday parties project
During the reporting period the team-building activities and establishing prayer rooms to respect cultural differences. Additionally using traditional
Company visited teams in the Chinese tea culture as a medium along with customs sharing and communal meals the Company fosters mutual
UAE Kuwait Iraq Bahrain and understanding in a relaxed atmosphere gradually building a trusting and inclusive corporate environment.Saudi Arabia using interviews
discussions questionnaires and Bahrain Project Cross-Cultural
observations to survey business Management Exchange Case
operations cultural integration Expatriate Employee Birthday Celebration in Abu Dhabi
and daily management collect-
ing frontline information chal- During the reporting period the Company actively promoted localized management and cultural integration of
lenges and suggestions to overseas teams organizing culturally relevant birthday celebrations to strengthen team cohesion and cross-cultural
inform HR policy improvement adaptability demonstrating internationalized employee care.and team management optimi-
zation. Bahrain Project Site Visit Kuwait JPF5 Project Cultural Differences
Questionnaire Survey
Corporate Culture Perception
Birthday Celebration Scene
The Company conducts overseas cultural training to deepen employees' understanding of corporate culture helping
overseas teams form exclusive values and reinforcing cultural implementation and employee recognition.Case Talent Training and Development
Overseas Team Cultural Co-Creation
During the reporting period the Human Culture and Leadership Center organized overseas cultural training co-cre-
ation sessions and leadership empowerment programs enhancing employee perception of corporate culture Employee Training System
co-creating team values and improving managers' cross-cultural management capabilities.Jereh Group regards talent development as a core growth driver building a systematic training system covering
management technical and operational areas at all levels. Using Jereh University as the core platform with the
motto "Learning Enjoying and Sharing" the Company provides leadership development programs from junior to
senior levels; through online learning seminars and offline training camps it offers professional skills and general
competency courses. The digital platform currently hosts over 5000 courses adding about 200 annually to continu-
ously meet personalized learning needs.The Company has established a Training Managementt SSyysstteem and an IInternall Lecturer Managementt SSyysstteem to
define training structures and responsibilities ensuring efficient system implementation. Meanwhile a professional
internal instructor team is cultivated continuously empowered through instructor boot camps; during the reporting
Corporate Culture Training and Co-Creation for the Management Awareness Training for the
Abu Dhabi Digital Project Iraq Mansuriya Project period 700 certified instructors were trained becoming the core of knowledge retention and dissemination fully
supporting employee capability development.
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Key Performance
Management Primary Middle Senior Experienced
Training investment:RMB5.8145million Total training sessions:2912 Channel Management Management Management
Total participants:6.36ten thousand person-times
Career
Development
Dual Channel
Cadre Management and Professional Position Training Management Professional Backbone Expert Senior Expert
Training System Training System Support System Channel Beginner
Cadre Inventory Sales Series Course System
Development Planning R&D Series Instructor System
Leadership Development Production Series Operation System Employee Engagement and Management
Cadre Evaluation Procurement Series Training Platform
Management Appointment Safety Series Workgroup
Employee Compensation and Benefits
Jereh Group adheres to fairness and reasonableness building a performance-oriented focused sustainable and
Leadership Conference competitively fair compensation and benefits system continuously improving the Compensation Maannaaggeemeenntt
/All Management Staff Conference Sales Staff Training Series Learning Path Based on Qualification System with salary structures consisting of fixed pay and annual bonuses. To establish long-term shared interests
Orange Voyage --
Young Cadre Training Camp R&D Innovation Design Competition
Instructor Skill Development Based on the Company has launched the "Striver" and "Business Partner" equity plans cumulatively granted to over 5000
Learning Path
Orange Leadership -- Production Skill Competition participants including a special channel for new graduates binding core talent and new employees to long-term SOP Standards for Operations Based
Executive-Level Senior Managers Procurement and Sales Simulated on Process incentives.Orange Endurance -- Negotiation Platform Development for Instructor
Director-Level Middle Managers Safety Themed Knowledge Contest Operation Based on Course For benefits statutory holidays are observed full social insurance contributions ("five insurances and one housing
Orange Set Sail -- Professional Management Quarterly Workgroup Meeting Direction fund") are paid and supplemental commercial accident insurance is provided. For position difference implement
Manager-Level New Managers Experience Forum Monthly Plan Control for Business Units refined measures and strictly comply with national working hours and overtime pay regulations for base-level roles
Talent Pool -- Reserve Managers while providing appropriate allowances and benefits for expatriates and employees in special positions. Additionally
interest-free home purchase loans are offered enhancing employee sense of belonging and satisfaction fully
Jereh University Operating System supporting career development and quality of life.Career Development Path
Jereh Group has established a systematic standardized employee promotion system implementing the Measurres for
the Admiiniistratiion of Employee Qualification standardizing promotion processes respecting employee development
choices and offering dual career paths in management or professional tracks stimulating employee growth potential
and achieving reasonable internal talent allocation.Key Performance
Number of employees undergoing internal transfers or applying for internal positions:1170
Internal transfers or internal applications proportion:15.15%
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Statutory
benefits Social insurance and housing provident fund
Festive Benefits for Chinese New Year Mid-Autumn Festival Women's Day home food welfare Group Human Resources Department organizes Evaluation results are reported
benefits birthday parties etc. Start all units for comprehensive performance evaluation. to each unit head.Health
Welfare Accident insurance annual health check-ups occupational disease check-ups etc.End Without Does the unit head have
Housing
Welfare Free accommodation for fresh graduates and interns
objection any objections
Employee Withobjection
Benefits
Bus Meals Free shuttle bus; free meals at work including breakfast lunch dinner late-night snacks and night meals The Human Resources The Group Human The Group Human Submit an appeal with
Department responds Resources Committee Resources Department will reasons and supporting
Maternity Parental gifts for female employees giving birth or for the spouses of male employees to the appellant based will make the final process the appeal within materials within 5
Welfare giving birth on the decision. decision. 3 working days. working days.Other
Welfare Irregular gifts and commemorative welfare Performance Result Feedback and Appeal Process
Key Performance
Employee Care and Communication
Social insurance coverage:100% Per capita paid annual vacation days:4.2 days
Labor Relations
Performance Appraisal and Feedback Jereh Group attaches great importance to labor relations establishing a labor dispute mediation committee in accor-
dance with the law and strictly following democratic procedures. For key decisions involving employee rewards and
Jereh Group positions performance management as a core support for strategic implementation organizational penalties the Company fully consults employee representatives to ensure fairness and impartiality in both process
vitality and employee rights protection. Based on the Performance Management System the Company has estab- and outcome. To continuously improve employment compliance the Company regularly organizes labor law training
lished a closed-loop management system driven by strategy and performance outcomes. The system follows princi- for human resource personnel supplemented by daily guidance comprehensively strengthening managers' legal
ples of strategic relevance transparency fairness and developmental alignment combining quantitative and quali- awareness and dispute prevention and handling capabilities.tative assessment methods to deeply link individual performance with organizational performance promoting joint
growth of the Company and employees. In the employee offboarding process the Company strictly implements the Employee DDeeppaarrttuurree MMaannaaggeemmeennt t
System. The Company arranges interviews for each departing employee to understand their reasons for leaving
To ensure transparency and fairness in performance management the Company has built multi-dimensional routine listen to their opinions and suggestions and provide necessary support to safeguard their legal rights ensuring that
performance communication channels including performance discussions quarterly reviews and annual presenta- employees are treated properly and respectfully during departure. Feedback collected is systematically consolidated
tions allowing employees to clearly understand goal progress assessment criteria and areas for improvement. At the and shared with relevant departments forming a closed loop for management improvement and continuously
same time a standardized performance feedback and appeal mechanism has been established clarifying the appeal optimizing human resource systems and employee relations.process handling points and timeframes to protect employees' rights to information and appeal.The Company has innovatively launched the "Spot Jereh's Problems" initiative encouraging employees to actively
propose improvements across operational processes aiming to strengthen organizational self-renewal capabilities Democratic Governance
cultivate a culture of sincere trust and provide mutual empowerment for organizational evolution and employee Jereh Group has built a comprehensive democratic communication mechanism disseminating rights-related informa-
value realization. tion via internal publications office platforms and bulletin boards; leveraging the "Youth Lakeside" forum and "Spot
Problems" activities to create suggestion platforms and smooth upward feedback channels. Employee satisfaction
surveys are conducted as needed across the Company providing a basis for optimizing management and care initia-
tives fully strengthening the foundation of employee rights protection and democratic management.
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Employee activities Case
th
Jereh Group focuses on employee care enhancing well-being and constructing a comprehensive employee support Hosting the 26 Employee Sports Games
system. The Company continuously improves employees' work-life experience and supports personal growth and In October 2025 the Company held the 26 t h Employee Sports Games featuring 30 competitive events that attracted
mental-physical balance by creating diverse physical activity spaces and organizing various cultural and sports over a thousand employees combining competition and collaboration energy and laughter with frequent victories
activities. reported. The activities not only release work vitality but also enhance team cohesion showcasing the hardworking and
enterprising spirit of Jereh employees.Case
Construction of "Employees' Home"
The Company values work-life balance
and invests resources to develop a physical
"Employees' Home" a multifunctional
space integrating an exhibition hall em-
ployee library and stress-relief room; based
on the plant layout employee cafeterias
and gyms are also provided to offer conve-
nient and comfortable spaces for relax-
ation and social interaction. Corporate Responsibility Communication
Employee Activity Spaces
Jereh Group always upholds "To be a responsible individual" as its corporate guidance deeply integrating civic corpo-
rate team and family responsibilities into its development fabric and actively practicing social responsibility with a
philanthropic spirit.Case
The Company engages in charitable initiatives through platforms such as the "Jereh Charity Fund for Helping the
Focusing on Mental Health Needy" "Boji Relief Fund" and "Jereh Pandemic Relief Fund" continuously carrying out disaster relief education
The Company emphasizes employee mental support disability aid poverty alleviation and rural revitalization programs. Since April 2013 the Company has
health forming a dedicated care team to launched the "Find Those in Need Around Me" charity activity engaging all employees to promote Jereh's disaster
provide systematic psychological support relief philosophy expanding assistance reach and intensity to support individuals and families in need.conduct mental health lectures and offer
professional assessments providing precise Alongside corporate initiatives the founding team personally participates in charitable activities to practice disaster
assistance to employees in need. Additionally relief and assistance. In 2025 the Company's Chief Founder and Chairman of Jereh United Group Sun Weijie togeth-
the Company has established the "Sunflower er with founders Wang Kunxiao and Liu Zhenfeng jointly contributed RMB 5 million to establish the "Sun Weijie Public
Psychological Care Station" and stress-relief Welfare Foundation" creating a broader and more responsive charitable network.spaces creating a multi-dimensional mental Since 2010 the Company and the founding team have cumulatively donated nearly RMB 40 million supported close
health protection system. to 500 disadvantaged families and implemented over 400 charitable projects earning multiple honors including the
Psychological Care Station and Stress-Relief Spaces China Charity Outstanding Contribution Award the Red Cross Humanitarian Medal the Dedication Medal Yantai
Charity List "Most Caring Enterprise" Yantai City Outstanding Charitable Organization Outstanding Charitable Orga-
nization in Yantai and other notable awards.Looking ahead Jereh Group will continue collaborating with government and social organizations to steadily advance
projects such as the "Hope Project" gathering warmth and contributing to a harmonious and beautiful society.
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Key Performance Case
Targeted Donation to the "Hope Project" Empowering Youth through Education
Number of assisted employees and community members: approximately200person/times
In November 2025 the Company participated in the
Charitable donations:over RMB 7.80 million (including support for employees in need) "Warm Support Build Dreams" youth growth care
event and "Hope Project" scholarship distribution in
Yantai donating RMB 213000 to support youth
Case development and education practically helping
Establishment of the "Sun Weijie Public Welfare Foundation" to demonstrate young people realize their dreams.corporate responsibility
Group Photo of the Care Activity
In June 2025 the Company held the signing and
awarding ceremony for the "Sun Weijie Public
Welfare Foundation" at its headquarters. The fund
jointly contributed by founders including Sun Weijie
with RMB 5 million focuses on supporting disadvan- Community Development Empowerment
taged groups and educational charity initiatives. In
the future the fund will work in coordination with
the Company's existing "Jereh Charity Fund for Help-
Jereh Group integrates community development into corporate sustainable development practices simultaneously
ing the Needy" to create a broader and faster-re-
Signing and Awarding Ceremony for supporting education resources and cultural-sports activities to improve local livelihoods and talent growth actively sponding charitable platform delivering corporate "Sun Weijie Public Welfare Foundation" fulfilling local corporate responsibilities and striving to build a mutually thriving community ecosystem.care and improving the lives of those in need.Case
Education Support – Air Conditioner Donation to Improve Learning Environment
Case
Charity Donation to Tibetan Girls Protecting Health through Medical Support To continuously improve local primary and secondary
school conditions in September 2025 Chairman Sun
In September 2025 Jereh Group through the "Jereh Charity
Weijie donated 793 air conditioners to 24 schools in
Fund for Helping the Needy" and in partnership with the
Yantai Charity Federation donated RMB 30000 to Awang Laishan District via the "Sun Weijie Public Welfare
Zhuoma a disabled Tibetan girl traveling over 4000 km to Foundation" specifically for student classrooms and
Yantai for leg correction surgery specifically covering post-in- dormitories with a total value of approximately RMB
surance surgery costs. This action demonstrates targeted 2.7397 million creating a more comfortable learning Air Conditioner Donation
medical charity support promptly addressing the urgent and living environment reflecting the Company's
needs of assisted families and symbolically linking charitable attention to foundational education and supporting
efforts between Shandong and Tibet. Donation by Jereh Group Board Representatives regional educational development.
119 1202025 EnvironmentalSocialand
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Case Case
Talent Development – Community Sports Events to Inspire Vitality Deep Engagement in Mansuriya Gas Field Project Supporting the Belt and Road
with Technology and Responsibility
In 2025 the Company continued sponsoring and naming
the Laishan District "Jereh Cup" Basketball League ("Lai BA" In 2025 while advancing the Mansuriya Gas Field project the Company continued to deepen local social responsi-
for short). As an important part of the Yantai City Basketball bility practices visiting surrounding villages with local partners during Ramadan in March and providing targeted
League (YBA) system the event attracted 21 teams and donations to Al-Farah Model Orphan School in Mansuriya in December to support its daily operations and educa-
nearly 300 players hosting 84 official games. Through this tion continuity ensuring orphan students' learning and development effectively fulfilling the Company's overseas
sports event the Company enriches community cultural and community commitments.sports life provides a community interaction platform
fosters a positive environment for talent growth and
supports a vibrant and inclusive community ecosystem. "Lai BA" Tournament
Overseas Public Welfare and Business Development
Jereh Group deeply integrates into the "Belt and Road Initiative" actively practicing the principle of "consultation
co-construction and shared benefits" and continuously deepening business exchanges and project cooperation with
partner countries. By promoting the implementation of its leading products and services in markets along the Belt and
Road the Company steadily expands overseas operations aiming to build a long-term mutually beneficial global
partnership network. At the same time through localized operations and corporate social responsibility practices the
Company contributes to sustainable development and economic cooperation in regions along the Belt and Road.Case
Jereh Signs Cooperation Agreement with ADNOC Drilling Visiting Surrounding Villages
In November 2025 the Company reached a milestone cooperation agreement with ADNOC Drilling in Abu Dhabi.The collaboration will focus on localized manufacturing of high-end energy equipment technology coordination
and global market expansion. This cooperation marks a key advancement in the Company's strategic layout in the
Middle East and significantly enhances both parties' competitiveness in the global oil and gas equipment sector.Sign cooperation agreements Supporting Orphan School
121 1222025 EnvironmentalSocialand
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Afterword to the Report Risk Control--Governance DimensionIndicator Name Unit 2023 2024 2025
Number of Participants in Audit Training Person-time 64 35 4
Key Performance Form Number of legal training sessions Times 36 40 32
Duration of legal training Hour 54 60 50
Number of Participants in Legal Training Person 3700 3960 3100
Corporate Governance--Governance Dimension Number of Compliance Training Sessions Times 120 136 218
Indicator Name Unit 2023 2024 2025 Duration of Compliance Training Hour 90 107 209
Number of General Meeting of Times 4 4 3 Number of Participants in Compliance Training Person 3489 3560 6379Shareholders Convened
Number of Proposals Reviewed at Number of Participants in Training on Anti-Commercial
Shareholders' Meetings Item 18 30 30 Bribery and Anti-Corruption for the Management
Person-time 45 56 80
Duration of Training on Anti-Commercial Bribery
Number of Meetings of Board of Directors Held Times 11 9 11 and Anti-Corruption for the Management Hour 3 3 2
Proposals Reviewed and Approved
at Board of Directors Times 60 49 85
Total Number of Meetings of Strategy Greenhouse Gas (GHG) Emissions--Environmental Dimension
Committee under the Board of Directors Times 1 1 1
Total Number of Meetings of Compensation and Indicator Name Unit 2023 2024 2025
Appraisal Committee under the Board of Directors Times 2 1 1
Total Number of Meetings of Audit Committee Direct GHG Emissions (Scope 1) tCO2e 24157.30 25141.82 35283.83
under the Board of Directors Times 6 6 7
Total Number of Meetings of Nomination Indirect GHG Emissions (Scope 2) tCO2e 15750.16 20086.87 17787.13
Committee under the Board of Directors Times 0 0 2
Total GHG Emissions tCO2e 39907.45 45228.69 53070.96
Information Disclosure--Governance Dimension GHG Emission Intensity tCO2e/RMB 10000 revenue 0.0287 0.0339 0.0327
Indicator Name Unit 2023 2024 2025 GHG Emission Density tCO2e/Person 6.53 6.36 6.87
Number of Disclosure Announcements
and Documents Copy 183 163 196
Number of Periodic Reports and Summaries Copy 7 7 Environmental Indicators--Environmental Dimension6
Number of Interim Announcements and Documents Copy 163 130 Indicator Name Unit 2023 2024 2025168
Number of Investor Relations Activity Record Forms Copy 13 26 22 Environmental Investment RMB 10000 1480.99 1396.49 1514.05
Environmental Training Times 64 17 80
Investor Relations Management--Governance Dimension Compliance Rate of Rectified Hidden Hazards % 100 100 100
Indicator Name Unit 2023 2024 2025
Times 1 1 1 Pollutant Emissions--Environmental DimensionNumber of Performance Briefings
Number of on-site investor research Indicator Name Unit 2023 2024 2025
visits received Times 15 41 27
Replies to Investors' Inquires at Piece 160 195 188 Waste Gas Emissions Ton 2.41 8.43 8.61irm.cninfo.com.cn
Reply Rate to Investors' Inquires at % 100 100 100 Waste Gas Emission Intensity Tons/RMB 10000 revenue 0.0000176 0.0000063 0.0000053irm.cninfo.com.cn
Compliance Rate of Waste Gas Emissions % 100 100 100
Risk Control--Governance Dimension Wastewater Discharges Ton 7651053.03 7731259.00 7321986.64
Indicator Name Unit 2023 2024 2025 Wastewater Discharge Intensity m3/day 20975.89 21170.43 20060.24
Number of Audit Training Sessions Times 16 8 2 Compliance Rate of Waste Water Discharge % 100 100 100
Duration of Audit Training Hour 29 27.50 12 Quantity of General Waste Generated Ton 1850.27 1227.00 6642.00
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Pollutant Emissions--Environmental Dimension R&D Innovation--Industry Value
Indicator Name Unit 2023 2024 2025 Indicator Name Unit 2023 2024 2025
Quantity of Hazardous Waste Generated Ton 61.86 375.24 447.36 —— Applied Invention Patents Case 165 115 12
Waste Disposal Compliance Rate % 100 100 100 —— Applied Utility Model Patents Case 119 129 33
—— Applied Design Patents Case 11 21 0
Energy and Water Resources--Environmental Dimension
Indicator Name Unit 2023 2024 2025 Product Quality--Industry Value
Total Energy Consumption tce 14927.89 16351.39 20921.07 Indicator Name Unit 2023 2024 2025
Energy Consumption Intensity tce/RMB 10000 0.0107 0.0122 0.0129 Product Percent of Pass % 100 100 99.88
Total Water Consumption Ton 160602.00 170039.00 163535.00 Number of Quality Training Sessions Times 68 52 131
Water Consumption Intensity Tons/RMB 10000 revenue 0.1154 0.1273 0.1008 Quality Training Duration Hour 2806.00 2010.30 4710.00
Number of Participants in Quality Training Person-time 2423 1410 5858
Usage of Packaging Materials--Environmental Dimension
Indicator Name Unit 2023 2024 2025
Customer Service--Industry Value
Total Quantity of Packaging Materials Used Ton 768.60 911.38 512.05
Indicator Name Unit 2023 2024 2025
Packaging Material Consumption Intensity Tons/RMB 10000 revenue 0.0005 0.0007 0.0003
Customer Complaint Resolution Rate % 100 100 100
R&D Innovation--Industry Value
Indicator Name Unit 2023 2024 2025 Data and Information Security--Industry Value
Investment in R&D RMB 10000 51120.22 50572.49 55109.99 Indicator Name Unit 2023 2024 2025
Number of Incidents of Information Security and
Number of R&D Personnel Person 1273 1319 1430 Privacy Protection Violations Times 0 0 0
Percentage of R&D Personnel % 20.84 18.54 18.52 Investment in Data Security RMB 10000 70 240 280
Total Number of Patents Granted as of the
End of the Reporting Period Case 1825 1914 2122
Training on Information Security Times 12 14 20
——Valid Authorized Invention Patents Case 354 503 649 Number of Information Security Training Participants Person
Approximately Approximately Approximately
600070007500
——Valid Authorized Utility Model Patents Case 1382 1316 1376 Coverage Rate of Information Security Training % 100 100 100
——Valid Authorized Design Patents Case 89 95 97
Number of Valid Patents Per Million Yuan in Revenue Case 0.1310 0.1433 0.1308 Supply Chain Management--Industry Value
Total Software Copyrights as of the End of the
Reporting Period Case 156 159 170 Indicator Name Unit 2023 2024 2025
Total Trademarks as of End of the Reporting Period Case 250 275 379 Procurement Training Sessions Times 3 5 4
Total Software Copyrights per Million
Operating Revenue Case 0.0110 0.0119 0.0105 Procurement Training Participants Person 1200 898 791
Total Authorized Patents within the Year Case 372 246 260
——Authorized Invention Patents Case 169 150 149 Employee Occupational Health and Safety--Human Resources Dimension
——Authorized Utility Model Patents Case 185 85 105 Indicator Name Unit 2023 2024 2025
——Authorized Design Patents Case 18 11 6 Investment in work safety RMB 10000 1915.70 1864.80 3820.68
Total Patent Applications within the Year Case 295 265 45 Safety Education Investment RMB 10000 277.13 115.46 270.64
125 1262025 EnvironmentalSocialand
Governance(ESG)Report
Employee Occupational Health and Safety--Human Resources Dimension Employment--Human Resources Dimension
Indicator Name Unit 2023 2024 2025 Indicator Name Unit 2023 2024 2025
Hours of Safety Training Hour / / 872 Technology Person 1273 1319 1430
Total Safety Education and Training Sessions Times 869 802 872 Finance Person 155 176 167
Number of Employees
Number of Emergency Drills Times 323 439 582 by Profession Administration Person 585 628 731
Number of participants in emergency drills Person-time / 7141 13182 Supply Chain Personnel Person 440 469 499
Safety Hazard Inspection and Rectification Rate % 100 100 100 Under 30 (Exclusive)
Years Old Person 1596 1865 2041
Number of Occupational Safety Accidents Case 29 28 22 30 to 40 Years Old Person 2925 3295 3499
Total number of work-related injuries Person 20 20 20 Number of Employees (Inclusive of 30 Exclusive of 40)by Age
40 to 50 Years Old
Workday Lost Due to Work Injuries Day 954 1031 748 (Inclusive of 40 Exclusive of 50) Person 1238 1501 1693
Investment in Work-related Injury Insurance RMB 10000 323.09 334.40 418.40 50 Years Old or Above Person 350 455 489
Coverage Rate of Work-Related Injury Insurance
for Employees % 100 100 100
Bachelor's degree
or above Person 2913 3380 4075
Safety Production Liability Insurance Investment RMB 10000 8.20 33.80 10.86 Number of Employees byEducational Background College Person 1381 1634 1710
Coverage of Work Safety Liability Insurance % 100 100 100 Secondary Vocationaland Below Person 1815 2102 1937
Incidence Rate of Occupational Diseases % 0 0 0 Chinese MainlandNumber of Employees Person 5396 6261 6808
Injury Rate per Million Hours Worked % 0.88 / 0.59 by Region Overseas and Hong KongMacau and Taiwan Regions Person 713 855 914
Detection Rate of Occupational Disease Hazards % 100 100 100 Number of Employees Ethnic Minorities Person 83 106 123
Pass Rate of Occupational Disease Hazard Detection by Ethnicity% 100 100 100 Non-Ethnic Minorities Person 6026 7010 7599
Occupational Health Checkup Participants Person 2531 2000 2995
Occupational Health Checkup Coverage Rate % 100 100 100 Employee Turnover--Human Resources Dimension
Indicator Name Unit 2023 2024 2025
Employment--Human Resources Dimension Number of Employees Departed Person 1265 1493 1397
Indicator Name Unit 2023 2024 2025 Employee Turnover Rate % 12.80 13.35 18.83
Total Number of Employees Person 6109 7116 7722 Male Employees % 12.80 13.68 15.60
Employee Turnover Rate
Number of Dispatched Workers Person 95 157 130 by Gender Female Employees % 12.60 11.04 13.04
Number of Part-time Employees Person 80 727 767 Under 30 (Exclusive)
Years Old % 15.70 18.50 22.82
Female Employee Ratio % 13.37 12.38 12.57
30 to 40 Years Old
Percentage of Employees of Minority Nationalities % 1.36 1.49 1.59 Employee Turnover Rate (Inclusive of 30 Exclusive of 40) % 9.66 12.07 10.95by Age
40 to 50 Years Old
Employee Numbers Male Employees Person 5292 6235 6751 (Inclusive of 40 Exclusive of 50) % 6.40 9.64 13.95
by Gender Female Employees Person 817 881 971 50 Years Old or Above % 7.61 11.36 16.32
Senior Management
Personnel Person 31 27 33
Employee Numbers Middle Management
by Job Level Personnel Person 482 398 339 Employees' Rights and Interests--Human Resources Dimension
Frontline Employees Person 5596 6691 7350 Indicator Name Unit 2023 2024 2025
Number of Employees Production Person 2948 3690 4019 Percentage of contract workers % 100 100 100
by Profession Sales Person 708 834 876 Social Insurance Coverage Rate % 100 100 100
127 1282025 EnvironmentalSocialand
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Employees' Rights and Interests--Human Resources Dimension Indexes
Indicator Name Unit 2023 2024 2025
Per Capita Paid Annual Vacation Day Day 5 3.8 4.2
GRI Sustainability Guidelines on Corporate Social Shenzhen Stock Exchange Self-Regulatory
Chapters and Sections Reporting Standards Responsibility Reporting for Chinese Guidelines for Listed Companies
Employee Recruitment--Human Resources Dimension （GRI Standards） Enterprises （CASS--ESG 6..0） No. 17 - Sustainability Report (Trial)
Indicator Name Unit 2023 2024 2025 About This Report 2-2/2-3 P1.1/P1.2 Article 4/Article 6
New Employees in the Year Person 1686 2349 1883 Message from the Chairman / P2.1 /
- Social Recruitment Person 1411 2077 1757
About Jereh 2-1 P3.1/P3.2/P3.3 /
- On-campus Recruitment Person 170 247 126
- Other Channels Person 105 25 0 Response to SDGs Goals / G1.1.7 Article 11/Article 13
Sustainable Development
Philosophy 2-22 G1.1.2/G1.1.6 Article 11/12
Employee Care--Human Resources Dimension
Sustainability Governance
Indicator Name Unit 2023 2024 2025 Structure 2-14 G1.1.1 Article 11/12
Number of Employees Who Took Maternity Leave Person 43 34 43 Sustainable Development / G1.1.8/G1.2.3 Article 11/Article 18/Article 52
Risk Identification
Return-to-work Rate for Employees on Maternity Leave % 99 100 100 Sustainable Development / G1.1.3/G1.1.5/G1.1.10 Article 11/Article 12/Article 19
Capability Enhancement
Communications with
Employee Training--Human Resources Dimension 2-16/2-29 G1.3.2 Article 9/Article 53Stakeholders
Indicator Name Unit 2023 2024 2025 Materiality Assessment 3-1/3-2/3-3 G1.1.8/G1.1.9 Article 5/Article 11/Article 18
Training Investment RMB 10000 387.51 562.99 581.45
Strengthening Organizational / / /
Total Number of Training Sessions Session 2410 2631 2912 Development
Total Number of Training Sessions Ten thousand 6.19 6.17 6.36 Enhancing Ideologicalperson-times Construction / / /
Strengthening Party
Discipline / / /
Employee Development--Human Resources Dimension
Establishing a Governance
Indicator Name Unit 2023 2024 2025 System 2-9/2-10/2-12/2-13/2-17/2-18 / /
Number of Employees Undergoing Internal Transfers
or Applying for Internal Positions Person 1330 660 1170 Regulating Compensation 2-18/2-19/2-20 / /Management
Internal Transfers or Internal Applications Proportion % 21.77 9.27 15.15
Refining Investor Relations 2-16/2-27 / /
Management
Public Welfare and Charity--Human Resources Dimension Protection of shareholders' 201-1 / /
rights and interests
Indicator Name Unit 2023 2024 2025
Stabilizing Debt Management / / /
Donation Amount
(Including Support for Employees in Need) RMB 10000 558.75 126.55 Over 780.00
Optimizing Risk Management 2-27/207-2 / /
Anti-Commercial Bribery 2-23/205-2/205-3 G2.1.1/G2.1.2/G2.1.3/G2.1.6 Article 55
and Anti-Corruption
Anti-unfair Competition 2-27/206-1 G2.2.2 Article 56
Management
129130
Anchoring Sustainability Through Solid Governance Keeping the Original AspirationAlive Lighting the Way Forward Sustainable Development Governance2025 EnvironmentalSocialand
Governance(ESG)Report
GRI Sustainability Guidelines on Corporate Social Shenzhen Stock Exchange Self-Regulatory
Chapters and Sections Reporting Standards Responsibility Reporting for Chinese Guidelines for Listed Companies
Enterprises （CASS--ESG 6..0） No. 17 - Sustainability Report (Trial) Reader Feedback Form（GRI Standards）
201-2/305-1/305-2/ E1.1.1/E1.1.2/E1.1.3/E1.1.4/E1.1.5 Article 21/Article 22/Article 23/Response to Climate
Change 305-4/305-5 /E1.1.6/E1.1.7/E1.1.8/E1.1.13/ Article 24/Article 25/Article 26/E1.1.14/E1.1.15/E1.1.16/E1.1.19 Article 27/Article 28 Dear reader
Hello! Thank you for taking the time to read this report. We greatly value your opinions on our ESG report practices and sustain-
E2.1.1/E2.1.2/E2.1.5/E2.1.6/
E2.1.7/E2.1.8/E2.1.9/E2.2.1/ able development management. Your suggestions are essential for the improvement of our ESG initiatives and the enhance-
Environmental Compliance 2-27/303-2/303-4/305-7/ E2.2.2/E2.2.3/E2.2.4/E2.2.5/ Article 29/Article 30/Article 31/ ment of our sustainable management practices. We kindly invite you to complete the "Feedback Form" section and share your
Management 306-1/306-2/306-3/306-5 E2.2.6/E2.2.7/E3.3.2/E2.4.1/ Article 33/Article 37 responses with us through the modes provided below. Once again thank you for your strong support of our ESG efforts.E2.4.2/E2.4.3/E2.4.4
Email: zqb@jereh.com
301-1/301-2/301-3/302-1/
Recycling of resources E3.1.1/E3.1.2/E3.1.3/E3.1.4/302-3/302-4/302-5/303-2/ E3.1.5/E3.2.1/E3.2.3/E3.3.2 Article 35/Article 36/Article 37 Address: No.5 Jereh Rd. Laishan District Yantai Shandong China
303-3/303-5
Protecting Ecosystems 304-2/304-3 E2.3.2/E2.3.3 Article 32 1、Which type of stakeholders do you belong to
Innovation-Driven S2.1.1/S2.1.2/S2.1.3/S2.1.4/ □Shareholders or investors □Government or regulatory agencies □Employees □Customers or partners
Development / S2.1.5/S2.1.6/S2.1.7/S2.1.9/ Article 42
S2.1.10/S2.1.11/S2.1.12/S2.1.13 □Suppliers □Community or public □Others _______________________________________________________________________________________________________________________
Product and Service
Quality 416-1/416-2/417-2 S3.3.1/S3.3.2/S3.3.3/S3.3.5 Article 47 2、Your overall assessment of this year's ESG report:
Protection of Customers'
Rights and Interests 417-1 S3.3.4/S3.3.6 Article 47 □Very Good □Good □Average □Below Average □Poor
Strict Protection of S3.4.1/S3.4.2/S3.4.3/S3.4.4 Article 48
Data Privacy / 3、Your opinion on this report's:
Collaborative and 308-1/308-2/414-1/414-2 S3.1.1/S3.1.2/S3.1.3/S3.1.4 Article 45Responsible Supply Information Disclosure: □Very Good □Good □Average □Below Average □Poor
Health and Safety
Governance 403-1/403-8 S4.2.2/S4.2.3
Article 50 Layout Design: □Very Good □Good □Average □Below Average □Poor
Health and Safety
/ S4.2.1 Article 50 Readability: □Excellent □Good □Average □Poor □Very PoorStrategy
Risk and Opportunity
403-2 S4.2.1/S4.2.4/S4.2.6 Article 50 4. Which topics are of most concern to you (You may select 3 items)Management
Setting Indicator Targets 403-7 / / Governance Topics: □Anti-Bribery and Anti-Corruption □Anti-Unfair Competition □Due Diligence
□Communications with Stakeholders
Occupational Health 403-3/403-4/403-5/403-6/ Article 50
Protection S4.2.5/S4.2.6403-9/403-10 Social Topics: □Employee Rights Protection □Employee Training and Development □Occupational Health and
Safety □R&D Innovation and Intellectual Property Protection □Product and Service Safety and Quality
S4.1.1/S4.1.3/S4.1.4/S4.1.5/
2-7/2-8/201-3/401-1/401-2/
Protection of Employees' S4.1.6/S4.1.7/S4.1.9/S4.1.11/ □Information Security and Privacy Protection □Supply Chain Management □Social Contribution
Rights and Interests 401-3/404-2/404-3/405-1/ S4.1.12/S4.3.1/S4.3.2/S4.3.3/ Article 49/Article 50
406-1/408-1/409-1 S4.3.4/S4.3.5 Environmental Topics: □Environmental Compliance Management □Energy Utilization □Response to Climate
Change □Circular Economy □Water Resource Management □Pollutant Emissions □Waste Management
Corporate Responsibility
Communication 203-1 S1.1.2/S1.1.4/S1.2.1/S1.2.2/S1.2.5 Article 40 □Protection of Ecosystem and Biodiversity
Community Development
Empowerment 203-1 S1.2.1 Article 40 5. Are all the information you are concerned about reflected in this year's ESG report
Overseas Philanthropy 203-1 S1.2.1 Article 40 □ Yes □ No (What additional information would you like to see ___________________________________________________________________)
Key Performance Form / A2 Article 6 6. Do you have any other comments or suggestions regarding our ESG work or sustainable develop-
Indexes / A3 Article 57 ment management
Reader Feedback Form 2-16 A6 Article 9 ___________________________________________________________________________________________________________________________________________________________________________
Thank you again for your understanding and support of our work!
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Afterword to the Responsibility and Benevolence Safety as the Priority: Building A Setting Industry Benchmark with Intelligent Green Manufacturing Safeguarding
Report Cultivating Public Welfare Comprehensive Protection Network Craftsmanship and Excellent Service Natural Habitats
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