CONTENTS

About Us Sustainable Development Special Topic

Management

About the Report 02 Penglai Facility Practices SBTi Targets and Leads

the Way to Low-Carbon Transition 16

Letter from the Chairman 03 Sustainable Development Governance Framework 13

About Us 04 Materiality Assessment 14 Green Steel Strategy A New Chapter of

Sustainable Manufacturing 20

Key Performance in Sustainability 07 Stakeholder Communication 15

Environmental Social Governance

Responding to Climate Change 25 Quality Assurance 41 Responsible Governance 55

Strengthening Environmental Management 32 Production Safety 43 Compliance 57

Environmental Key Performance Data 39 Employee Rights and Benefits 46 Business Ethics 58

Responsibility for Good 50 Information Security 62

Social Key Performance 53 Governance Key Performance 63

Indicator Index 64About Us Sustainable Development Management Special Topic Environmental Social Governance Indicator Index

About the Report Letter from the Chairman About Us Key Performance in Sustainability

About the Report

This Report is the second sustainability report (“the Report”) published by Dajin Heavy Industry Co. Ltd. (hereinafter “Dajin Heavy Industry” “Dajin” “the Company”

or “We”). The Report is intended to disclose the Company’s achievements on sustainable development and management performance in Environmental Social

and Governance (hereinafter “ESG”) objectively and transparently helping stakeholders to better understand our business.Reporting Period Terms and Definitions

The information and data contained in the Report covers the period from 1 January 2024 to 31 December

Abbreviation Full name

2024 (hereinafter “2024” or “this year”). To ensure the comparability and completeness of the Report the

period has been extended forward and backward as appropriate. Penglai Facility Penglai Dajin Offshore Heavy Industry Co. Ltd.Fuxin Facility Dajin Heavy Industry Co. Ltd.Reporting Scope Zhangjiakou Facility Zhangjiakou Dajin Wind Power Equipment Co. Ltd.Yangjiang Facility Yangjiang Dajin Wind Power Offshore Engineering Technology Co. Ltd.The Report covers Dajin Heavy Industry and its subordinate production facilities and wind farms. The

financial data disclosed herein comes from the annual report of the Company while other data comes from Xing An’meng Facility Xing’anmeng Dajin Heavy Industry Co. Ltd.internal statistics. The standards applied for the calculations that are involved in this regard have been Panjin Facility Panjin Dajin Offshore Engineering Co. Ltd.indicated in the Report. Unless otherwise stated the currency in the Report is denominated in RMB.Basis of Preparation Contact Information

This report follows the relevant requirements of the Shenzhen Stock Exchange’s Self-Regulatory Guidelines E-mail: djsustainability@dajin.cn

No. 1 for Listed Companies – Standardized Operation of Main Board Listed Companies and Self-Regulatory Tel: +86(10)57837709

Guidelines No.17 for Listed Companies – Sustainability Report (For Trial Implementation). It also refers to the

Global Reporting Initiative Standards (GRI) the Task Force on Climate-related Financial Disclosures (TCFD) Address: East Tower China Overseas Property Plaza Courtyard 8 West Binhe Road Yongdingmen

and the United Nations Sustainable Development Goals (UNSDGs). Dongcheng District Beijing China

Dajin Heavy Industry Co. Ltd | 2024 Sustainability Report 02About Us Sustainable Development Management Special Topic Environmental Social Governance Indicator Index

About the Report Letter from the Chairman About Us Key Performance in Sustainability

Letter from the Chairman

To our Stakeholders

The year 2024 marked a period of continuous business optimization and significant achievements in global market expansion for Dajin Heavy

Industry. Guided by innovation and a commitment to green development we remain dedicated to delivering high-quality offshore and onshore

wind power equipment and services to our global clients. As the global energy transition accelerates—particularly with Europe’s increasing focus

on low-carbon solutions and green steel—we have proactively adapted strategically positioned ourselves strengthened our green supply chain

and promoted the application of green steel. These efforts have enabled us to meet the increasingly stringent carbon emission requirements of

our clients while earning widespread recognition.In the wind power equipment manufacturing sector our offshore business has continued to expand while our onshore operations have been

adjusted in an orderly manner. The revenue contribution from both domestic and international offshore segments continued to grow with

The year 2024 marked a period of overseas offshore projects emerging as a key driver of our sustained profitability. Although 2024 and 2025 present challenges for the wind

continuous business optimization power industry including policy adjustments supply chain fluctuations and extreme weather conditions we have maintained our market

competitiveness through a stable operational business strategy and unwavering confidence in the industry. Despite the complexities of the

and significant achievements in global external environment we have achieved steady business growth.market expansion for Dajin Heavy We remain committed to our environmental responsibilities and continue to address the challenges and opportunities posed by climate change.Industry. Guided by innovation and a In our decarbonization efforts we are actively advancing the low-carbon transition of both our company and our supply chain. Through optimizing

production processes and improving energy efficiency we strive to reduce carbon emissions at every stage. Meanwhile we have partnered with leading

commitment to green development international providers of floating foundation solution providers to develop the next-generation floating foundation products positioning ourselves for

we remain dedicated to delivering deep-sea offshore wind opportunities and laying a solid foundation for the sustainable development of global offshore wind industry.high-quality offshore and onshore At the same time we uphold a people-oriented approach fostering diversity and attracting top global talent. In 2024 we welcomed international

colleagues from Spain France South Korea India and other countries further enriching our international team and enhancing our global perspective

wind power equipment and services and cross-cultural collaboration capabilities. We are committed to creating a positive work environment offering ample opportunities for career growth

to our global clients. and continuously investing in training and skill development to foster a sense of belonging and drive continuous personal and professional advancement.In corporate governance we continue to optimize our internal structures strengthen risk management and internal controls and enhance compliance

reviews in areas such as anti-bribery trade compliance and environmental regulations. We have gradually improved our compliance management

framework to ensure that the Company operates in a lawful transparent and efficient manner with all business activities adhering to domestic and

international legal requirements thereby promoting stable growth in the global market. We also maintain close collaboration with our global supply

chain partners working together to navigate market challenges drive industry-wide synergy and achieve mutually beneficial growth.Reflecting on 2024 we have encountered uncertainties and challenges in the wind power industry but we have also grown and achieved

significant milestones. Looking ahead we remain steadfast in our commitment to ESG principles integrating them deeply into our corporate

strategy and daily operations. We will continue to enhance our sustainability capabilities and core competitiveness. contributing even more to the

global energy transition and sustainable development goals.Chairman of Dajin Heavy Industry Jin Xin

Dajin Heavy Industry Co. Ltd | 2024 Sustainability Report 03About Us Sustainable Development Management Special Topic Environmental Social Governance Indicator Index

About the Report Letter from the Chairman About Us Key Performance in Sustainability

About Us

Company Profile

Dajin Heavy Industry Co. Ltd. was founded in 2000 in Fuxin Liaoning Province China and was listed on

the Main Board of the Shenzhen Stock Exchange in 2010 (Stock Code: 002487) becoming the first publicly

The Company became the first in China to export

listed company in China’s wind power tower industry. After more than 20 years of dedicated development offshore wind towers (14.7MW) to Europe

the Company has firmly established itself as a leading global manufacturer of offshore wind power

equipment delivering high-quality low-carbon emission and reliable infrastructure to support the growth

of renewable energy worldwide.As an industry pioneer Dajin Heavy Industry has been deeply engaged in wind power equipment The Company became the first in Asia to export

manufacturing specializing in providing a full range of wind towers and foundations for both onshore and extra-large monopiles (14.7MW) to Europe

offshore wind energy. Our product portfolio includes wind turbine towers transition pieces foundation

sections monopiles deep-sea jackets floating foundations and offshore substations. We continuously drive

technological innovation and industrial upgrades achieving groundbreaking milestones in multiple areas. The

Company became the first in China to export offshore wind towers (14.7MW) to Europe the first in Asia to

export extra-large monopiles (14.7MW) to Europe and the only top-tier wind power equipment manufacturer

in the Asia-Pacific region capable of large-scale exports of offshore wind power products to the European

market. By the end of 2024 our delivered products have supported a total global wind power installed capacity

of 10 GW contributing to the low-carbon transition of the global energy landscape.Leveraging advanced manufacturing technology stringent quality control and highly efficient delivery

capabilities Dajin Heavy Industry has successfully completed high-profile offshore projects in the

UK Germany France Denmark and other European markets earning widespread recognition from

international clients. Meanwhile we are actively expanding into emerging markets such as Japan and

South Korea collaborating with local partners to jointly advance offshore wind power and marine

engineering development. Through continuous technological innovation and premium services we are

steadily building a global business presence.Guided by our sustainability strategy we are accelerating investment in renewable energy

development advancing deep-sea floating foundation technology and enhancing our global logistics

network including specialized large-scale offshore transport vessels. This deep industrial chain

integration is becoming a new growth drivers for the Company’s long-term and stable development.Looking ahead Dajin Heavy Industry will continue to uphold the principles of innovation-driven and

green development supporting the sustainable evolution of the global clean energy industry and

contributing to the shared goal of carbon neutrality.Dajin Heavy Industry Co. Ltd | 2024 Sustainability Report 04About Us Sustainable Development Management Special Topic Environmental Social Governance Indicator Index

About the Report Letter from the Chairman About Us Key Performance in Sustainability

Business EcosystemAdhering to the vision of “Sailing Towards a Sustainable and and an optimized supply chain to promote the high-qualityGreener Future” and remaining committed to the mission of “From development of the offshore wind power industry. DespiteDajin to the World From Good to Great” Dajin Heavy Industry market fluctuations policy adjustments and environmental

is dedicated to providing clients with high-quality low-carbon challenges in the global wind power sector Dajin Heavy Industry

emission and sustainable products as well as integrated solutions remains strategically focused. With world-class production

for industry-related services and operations. We are committed capacity a flexible and efficient logistics network and strong cost

not only to being a manufacturer of wind power infrastructure but competitiveness we continue to enhance our industry influence

also to playing a pivotal role in driving the global energy transition. and collaborate with our global partners to drive the sustainable

The Company firmly implements its “Dual-Sea Strategy” (offshore transformation of clean energy.wind power and overseas markets) deepening its global footprint Looking ahead the Company will further strengthen its global

by leveraging cutting-edge technology high efficient production capabilities advancing green manufacturing and a low-carbon

emission supply chain transformation with an international

perspective. We are actively responding to the European market’s

increasing demands for green steel carbon reduction and

sustainable development providing more reliable innovative

and environmentally friendly solutions for the global windpower industry. Through these efforts we are building a “DajinEcosystem” that truly belongs to the era of globalization.Dajin Heavy Industry Co. Ltd | 2024 Sustainability Report 05About Us Sustainable Development Management Special Topic Environmental Social Governance Indicator Index

About the Report Letter from the Chairman About Us Key Performance in Sustainability

Business Segments Global Business Layout

Dajin Heavy Industry adheres to a globalization development strategy continuously deepening its

presence in the offshore wind and renewable energy industry chain supporting the global green and

Wind Power Equipment Manufacturing low-carbon emission transformation through high-quality manufacturing and services.Currently the Company has established over 40 subsidiaries and affiliated enterprises in European countries

Dajin Heavy Industry specializes in wind power equipment manufacturing offering key structural components

such as Germany and Poland as well as in several provinces (regions) in China including Liaoning Inner

for both onshore and offshore wind power projects including towers monopiles transition pieces jackets

and floating foundations. To continuously optimize our production capacity we have established seven major Mongolia Hebei Shandong and Guangdong. With a client base and sales network spanning more than

manufacturing facilities across China (including one under construction) along with three specialized ports (with 30 countries and regions we have built a reputation for exceptional product quality a robust supply chain

one under construction). With an annual production capacity exceeding 2 million tons we provide high-quality and a strong commitment to sustainability. Collaborating closely with global wind power developers energy

infrastructure support for wind power projects worldwide. enterprises and industry partners we are dedicated to jointly promoting the transformation and upgrading of

the global energy structure toward a low-carbon emission and sustainable future.With a client base and sales network spanning

the Company has established over 40

subsidiaries and affiliated enterprises in European

Renewable Energy Development more than 30 countries and regionscountries such as Germany and Poland

Dajin Heavy Industry is actively expanding its renewable energy investment and development business

deepening its presence across the renewable energy value chain. As of the end of 2024 we have owned

and operate a 250 MW grid-connected wind power projects (commissioned in March 2023 with 63 installed Company Facility Distribution

turbines). This project has generated a cumulative 1.102 billion kWh of green electricity equivalent to reducing

591300 tons of CO2 emissions. Additionally we are advancing the construction of a 250 MW photovoltaic project

which is expected to be commissioned by April 2025. Furthermore we have secured project approvals and Business Segments and Facility Distribution Facilities/Projects

grid connection clearance for 950 MW of wind power capacity with plans to complete construction and grid Penglai Offshore Facility and Ports

connection within the next two years contributing more green energy to global clean energy development. Offshore Wind Power Yangjiang Offshore Facility

Equipment Manufacturing

Tangshan Offshore Facility & Ports (in progress)

Liaoning Fuxin Production Facility

Onshore Wind Power

Hebei Zhangjiakou Production Facility

Equipment Manufacturing

Inner Mongolia Xing’anmeng Production Facility

Global Logistics System & Self-operated International Shipping Fleet Fuxin Zhangwu Xiliujiazi Power New Energy Co. Ltd.Tangshan Shilihai 250MW Aquaculture-PV Complementary

To accelerate global expansion and enhance supply chain resilience and logistics efficiency Dajin Heavy Industry Renewable Energy Project (in progress)

is actively developing a specialized global offshore transportation system for offshore projects. We have already Development Tangshan Caofeidian 700MW Onshore Wind Power Project

initiated Phase 1 of our construction plan which includes 2–4 deck carriers with the first two vessels scheduled (Approved)

to be delivered in 2025. Looking ahead we plan to establish a fleet of 10–20 ultra-large deck transport vessels of

Tangshan Fengnan 250MW Wind Power Project

varying tonnage. This high-efficiencylow-carbon logistics system will support the global delivery of offshore wind

and marine equipment further strengthening our supply chain competitiveness in the global markets. Self-operated International Panjin Offshore Facility

Shipping Fleet Segment

Dajin Heavy Industry Co. Ltd | 2024 Sustainability Report 06About Us Sustainable Development Management Special Topic Environmental Social Governance Indicator Index

About the Report Letter from the Chairman About Us Key Performance in Sustainability

Key Performance in Sustainability

Sustainable Development Progress Completed a comprehensive upgrade of the Penglai Offshore Facility transforming

it into the world’s largest monopile export facility for offshore wind.Successfully produced and delivered the world’s largest offshore wind monopile:

maximum diameter of 10 meters maximum unit weight of 2014 tons and

maximum plate thickness of 115mm.Officially embarked on international Officially commenced production at the Yangjiang Offshore Facility covering

development by passing supplier qualification offshore towers onshore towers and jacket foundations serving markets in

Initiated the strategic transformation audits from global industry leaders such as Guangdong Guangxi Fujian Zhejiang Southeast Asia South America and Europe.from traditional energy equipment Envision Energy Vestas and GE becoming a Established the shipping division and built specialized transport vessels at themanufacturing to clean energy certified Vestas MK10 supplier. Panjin Offshore Facility creating a professional fleet and pioneering the “verticalequipment manufacturing.Established a subsidiary in Hamburg Germany loading” solution to build a global logistics system.Successfully delivered the first marking the beginning of the Company’s global Actively developing next-generation floating foundation products for offshore

onshore wind tower project. expansion journey. wind positioning for a third growth curve.

200620152016-20192020-202120232024

Successfully delivered the first Passed the qualified supplier audit Released the first bilingual (Chinese-English) Dajin Sustainability Report

domestic offshore wind tower of ?rsted the world’s largest wind advancing transparency in ESG initiatives.project and successfully delivered energy developer. Signed an MOU (Memorandum of Understanding) with a global leader in floating

the first domestic monopile project. Successfully delivered the first offshore wind to jointly build a global supply chain for floating offshore wind projects.offshore tower export project Accelerated the construction of the Tangshan Dajin offshore Facility strategically

strengthening our global presence. positioning for the next decade's offshore wind market in developed countries

Commenced operations at the covering a full range of offshore wind power equipment.Zhangjiakou and Xing'anmeng Awarded the EcoVadis Bronze Medal for sustainability performance recognizing

onshore wind power manufacturing our commitment to responsible business practices.facilities significantly enhancing

domestic production capacity. Achieved a CDP rating of C reflecting our efforts in environmental disclosure

and climate action.Formally applied to join the Science Based Targets initiative (SBTi) aligning our

climate goals with global standards.Established a Green Steel Task Force and signed green steel strategic

cooperation agreements with major domestic steel manufacturers.Dajin Heavy Industry Co. Ltd | 2024 Sustainability Report 07About Us Sustainable Development Management Special Topic Environmental Social Governance Indicator Index

About the Report Letter from the Chairman About Us Key Performance in Sustainability

2024 Sustainability Core Initiatives and Key Performance

Sections and Topics Key Sustainable Development Initiatives Key Performance and Objectives United Nations Sustainable Development Goals

The Penglai Facility aims to reduce Scope 1 and Scope 2 carbon emissions

by 42% from the benchmark year by 2030 decrease Scope 3 emissions

Continuously identify analyze and assess climate change related by 25% and cut emission intensity in steel procurement by half. By

risks and opportunities in accordance with TCFD (Task Force on 2040 it will achieve carbon neutrality for Scope 1 and 2 completing

Climate-Related Financial Disclosures) recommendations and the decarbonization of its own operations. By 2050 it targets net-zero

implement corresponding mitigation measures. emissions across the entire value chain with a significant reduction of 95%

Further updated the “dual-carbon” targets and decarbonization in emissions intensity from steel and flange procurement.roadmap at the Dajin Heavy Industry Penglai Facility building on the The Company holds a total of 250MW of grid-connected wind power

Reducing fact that it has already achieved peak carbon emissions in operations. projects with 63 installed turbines generating a cumulative 1.102

Carbon Promote green procurement and enhance the efficiency of billion kWh of green electricity equivalent to reducing 591300 tons resource utilization across all stages of the supply chain. of carbon dioxide emissions.Emissions Practice the concept of green logistics by strengthening In 2024 the Penglai Facility used a total of 11181000.00 kWh of green

the warehouse management capability and improving the electricity accounting for 32% of its total electricity consumption. The

efficiency of logistics. facility plans to increase this proportion to 60% by 2025 achieve 96.5%

Continuously accelerate the construction of wind farms and green electricity usage by 2030 and reach 100% by 2036.photovoltaic power plants to reduce the Company’s own carbon CDP C level in Climate.emissions while contributing to the society's transition toward

low-carbon development. C

Developing regulations on energy-saving and consumption

Energy reduction tailored to the company’s business characteristics Dajin Incorporate consumption information for all energy consumption

Management Heavy Industry has implemented refined energy management categories into the Company management system.practices to enhance energy efficiency across operations.By optimizing bevel angels Zhangjiakou Facility achieved a reduction

of 11.06% in wire consumption equivalent to around 140kg and a

Dajin continuously optimizes process technologies across key

Process Innovation 11.07% reduction in flux consumption approximately 150kg.production stages—including beveling welding and painting—

and Energy Saving to reduce raw material usage and energy consumption. These The introduction of Regenerative Thermal Oxidation (RTO)

Technology Application efforts contribute to lowering both material inputs and carbon

technology converts VOCs in exhaust gases into carbon

emissions associated with the manufacturing process. dioxide and water through high-temperature oxidation and

the purification efficiency of some part of the heating process

reaches as high as 95% to 99%.Released the Biodiversity Statement committing to proactive

risk prevention and control strict in-process management and

regular publicity on biodiversity conservation.For the management of foreign vessels signing agreements

Biodiversity with professional third-party organizations for the treatment of 100% compliance with external vessels ballast water wastewater

Conservation oily sewage and garbage from ships to ensure that waste can be and waste treatment.disposed of in a timely safe and standardized manner.For new facility projects scientific planning and strict construction

management will minimize the negative impacts of project

operation on the ecological environment.Dajin Heavy Industry Co. Ltd | 2024 Sustainability Report 08

EnvironmentalAbout Us Sustainable Development Management Special Topic Environmental Social Governance Indicator Index

About the Report Letter from the Chairman About Us Key Performance in Sustainability

Sections and Topics Key Sustainable Development Initiatives Key Performance and Objectives United Nations Sustainable Development Goals

Formulated a series of standard documents clarify the

Waste requirements for waste recycling storage and disposal and

entrusted qualified third parties to carry out the recycling and

Management treatment process ensuring that all kinds of waste are disposed

of in full compliance with applicable regulations. Utilization of 1145.52 tons of steel offcuts and 0.3 tons of waste

materials (e.g. wooden pallets packaging etc.).Penglai Facility set up a production recycling rate of no less than

Secondary cutting and processing of reusable scrap generated 90% by 2030 and committed to full circularity by 2040.Circular during the cutting of steel plates in the production process.Economy Processing and utilization of backlog inventory to avoid waste of

resources and additional costs.Water consumption is reduced through the use of recycled water

Water systems water-saving fixtures and water-efficient processes.Resources Domestic wastewater is treated and reused through the installation

CDP C level in Water Security. C

of advanced wastewater treatment systems promoting circular

water usage.Dajin Heavy Industry Co. Ltd | 2024 Sustainability Report 09

EnvironmentalAbout Us Sustainable Development Management Special Topic Environmental Social Governance Indicator Index

About the Report Letter from the Chairman About Us Key Performance in Sustainability

Sections and Topics Key Sustainable Development Initiatives Key Performance and Objectives United Nations Sustainable Development Goals

Set quality management objectives real-time monitoring Penglai Facility revised 67 documents and issued 45 new

Product and statistics and analysis of the completion of the objectives for documents throughout the year further refining the details of

individual non-compliance with the development of relevant quality control.Service Quality corrective measures to ensure the effective realization of the Full coverage of ISO 9001 quality system certification for

Company’s quality management objectives. production bases that have been in long-term operation.Establish a strong correlation mechanism between safety

targets and the management KPIs and incorporate the accident

rate hidden danger rectification rate and other indicators into The Company's NOY monopile / Thor monopile / NSC monopile

the performance evaluation of all employees. / WAK monopile / SGRE offshore tower / GE offshore tower

Organize safety training for all employees and promote an projects have accumulated about 3 million safe man-hours.internally driven safety culture.Health and Safety Penglai Facility organized 260 safety inspections throughout the

Implementing full-cycle health and safety management for year identifying 21850 potential safety hazards and rectifying

outsourced personnel ensuring "same work same standard the corrective actions.and same training" to comprehensively safeguard the health 100% of outsourced employees signed HSE contracts before the

and safety of outsourced personnel. project started.Conducting systematic inspections of various production

processes that may pose potential safety hazards.Established a Labor and Human Rights Management System

based on the International Labor Organization (ILO) Core

Conventions and the United Nations Guiding Principles on

Employee Rights Business and Human Rights which explicitly prohibits child

and Benefits labor forced labor and any form of discriminatory treatment.Included provisions to guarantee the right of employees to

freedom of association and collective bargaining in the Social

Responsibility Management System. 0 incidents of illegal employment such as child labor and forced

labor and 0 incidents of discrimination humiliation corporal

punishment and other violations of rights and interests and

Compensation Establish a fair and transparent compensation governance unfairness identified throughout the year.and Benefits framework adhering to the principle of equal pay for equal work. Female senior management member reached 20%.Building a Diverse Equitable and Inclusive (DEI) workplace where

discrimination on the basis of race religion disability gender and

Diversity age is strictly prohibited.We promote diversity within our board of directors and management

team aligning with the United Nations' commitments to gender equality.Employee Establish a high-potential talent pool across different businesses and backgrounds Over 20000 cumulative training hours for the year.Development Implementation of differentiated training programs.Dajin Heavy Industry Co. Ltd | 2024 Sustainability Report 10

SocialAbout Us Sustainable Development Management Special Topic Environmental Social Governance Indicator Index

About the Report Letter from the Chairman About Us Key Performance in Sustainability

Sections and Topics Key Sustainable Development Initiatives Key Performance and Objectives United Nations Sustainable Development Goals

Formulated the Supplier Social Responsibility Guidelines

establishing diverse audit standards covering labor rights

safety and environmental protection ensuring compliance

through “document pre-review + on-site inspections”.Require suppliers to sign the Conflict-Free Minerals Green Supply Chain Management Approach sent to the

Sustainable Supply Commitment adhering to the OECD Supply Chain Due Diligence associated 19 suppliers.Chains Guidance. 100% of suppliers with potential conflict minerals risk signed theThe Company has upgraded the “Management Measures for Conflict-Free Minerals Commitment .Supplier Development and Admission ” to gradually improve

the content of supply chain due diligence and build an access

system that covers ESG risk assessments throughout the entire

lifecycle.Sections and Topics Key Sustainable Development Initiatives Key Performance and Objectives United Nations Sustainable Development Goals

Held 5 meetings of the Board of Directors and 9 meetings of

specialized committees throughout the year and revised 28

On the basis of retaining the original Sustainable Development corporate policies.Center four specialized committees have been established

namely the Green Steel Special Committee the Carbon Obtained EcoVadis Bronze Medal.ESG Governance Emission Reduction Special Committee the Sustainable

Development Risk Assessment Special Committee and the

Sustainable Procurement Special Committee.Organized visits to warning education bases for executives and

personnel in sensitive positions to strengthen the awareness of

red line. 100% signing rate of Supplier Integrity Agreement among Tier 1Business Ethics and Introduced a series of systems such as the “Regulations suppliers and 75% among all suppliers.Compliance on Integrity of Management Personnel and Personnel Proportion of employees participating in training related toin Economically Sensitive Positions ” and whistle blower business integrity is 100%.protection to build a business ethics management system that

covers the entire process before during and after the event.Dajin Heavy Industry Co. Ltd | 2024 Sustainability Report 11

Social GovernanceSustainable Development

Management

Sustainable Development

Governance Framework 13

Sustainable development management serves as a fundamental pillar of Dajin Heavy

Materiality Assessment 14

Industry’s long-term and stable operations. We remain committed to responsible

Stakeholder Communication 15 governance actively fostering a corporate culture of sustainability and deeply integrating

green low-carbon emission and sustainable principles into our operational framework.The Company continuously improves its responsibility management system strengthening

the governance framework enhancing risk control and optimizing management

mechanisms to provide robust support for sustainable development. At the same time we

maintain transparent and in-depth communication with stakeholders working together

to build a collaborative co-created and shared sustainable development ecosystem that

contributes to the global transition toward clean energy.SDGs

Dajin Heavy Industry Co. Ltd | 2024 Sustainability Report 12About Us Sustainable Development Special Topic Environmental Social Governance Indicator Index

Management

Sustainable Development Governance Framework Materiality Assessment Stakeholder Communication

Sustainable Development Sustainable Development Center

Governance Framework As the executive body responsible for implementing the Company’s sustainability strategy the Sustainable Development Center coordinates internal

and external resources to drive sustainability innovation and execution. Its primary duties include:

Tracking global sustainability trends identifying compliance risks and exploring sustainable business growth opportunities to enhance the Company’s

core competitiveness in sustainability.To fully implement the sustainable development strategy and enhance

management effectiveness and competitiveness Dajin Heavy Industry Continuously monitoring sustainability developments among clients partners and industry peers formulating response plans and addressing

officially established the Strategy and Sustainability Committee in 2024. stakeholder concerns.Building upon the original Sustainable Development Center this initiative Providing sustainability training for business units facilitating discussions on sustainability topics and assessing their business impact.further refines the Company’s governance structure creating a top-down

sustainability management system. Under the Strategy and Sustainability

Committee four specialized subcommittees have been established: the

Green Steel Special Committee the Carbon Reduction Special Committee Board of Directors

Strategy and Sustainable

Development Committee All Relevant Departments

the Sustainability Risk Assessment Special Committee and the Sustainable

Procurement Special Committee. Each special committee is responsible for As the highest decision-making and supervisory This committee is responsible for formulating Conducting sustainability initiatives

specific functions supporting the Company’s high-quality development in body for the Company’s sustainability efforts and overseeing the Company’s sustainability in accordance with the Company’s

the green and low-carbon emission transition. the Board of Directors fulfills the following strategy ensuring compliance transparency sustainability management system and

responsibilities: and corporate responsibility in sustainability processes to ensure smooth execution.The Green Steel Special Committee is dedicated to driving the practices. Its key responsibilities include: Regularly collecting reporting and

Company’s green steel business focusing on enhancing carbon Reviewing and approving the Company’s evaluating the progress of sustainability

competitiveness and supporting domestic and international clients sustainability vision mission and strategy Establishing the Company’s long-term

in building low-carbon supply chains. By integrating internal and while assuming ultimate responsibility for sustainability vision mission and strategy

initiatives and key performance

external resources it accelerates the development and industrial sustainability disclosures. ensuring alignment between strategy and

indicators (KPIs).application of low-carbon emission steel ensuring the Company Regularly receiving progress reports execution.maintains a proactive position in the green transition. The Carbon on sustainability initiatives to ensure Monitoring the Company’s fulfillment of

Reduction Special Committee focuses on advancing the Company’s effective strategy implementation. sustainability commitments assessing related

carbon reduction targets by formulating scientific emission reduction Overseeing the execution of the risks and optimizing sustainability performance.pathways and applying innovative technologies. It strengthens carbon Company’s sustainability management Regularly reporting sustainability progress to

management capabilities to ensure steady progress in green and system and related measures. the Board of Directors.low-carbon emission development. The Sustainable Development

Risk Assessment Special Committee is tasked with establishing

a risk identification and early-warning mechanism. It conducts

comprehensive evaluations of potential risks related to sustainability

Green Steel Special Committee Carbon Reduction Special Sustainable Development Risk Sustainable Procurement issues and proposes scientific and effective risk mitigation strategies Committee Assessment Special Committee Special Committee

to ensure the Company’s stable operations and long-term sustainable

development. The Sustainable Procurement Special Committee focuses Developing a green steel business Planning the Company’s carbon Identifying and assessing key Developing a sustainable supply

on green supply chain management driving the transformation and strategy and roadmap promoting reduction strategy and setting risks in the sustainability domain chain strategy.innovation of the supply chain towards sustainability. By formulating its application in the global offshore emission reduction targets. including ESG risks. Establishing supplier sustainability

and implementing sustainable procurement policies it enhances supply wind market. Establishing milestones and measures Proposing risk management assessment standards

chain transparency and low-carbon emissions ensuring that upstream Strengthening long-term for phased emission reductions. recommendations and developing strengthening due diligence

and downstream partners work together to achieve green goals. partnerships with green steel Fostering close collaboration among response measures. and promoting continuous ESG

The Sustainable Development Center as a permanent executive suppliers to drive technological technical teams to explore and Establishing a risk early-warning improvement among suppliers.body is responsible for coordinating policy research providing data innovation in green steel production. implement advanced low-carbon mechanism. Enhancing supplier communication

support and facilitating cross-functional collaboration. Through Advancing the development production technologies and processes. and collaboration to jointly addressa governance mechanism of “two fixed annual meetings plus ad- application and market expansion Enhancing employee awareness of sustainability challenges.hoc motions” the Center ensures the efficient implementation of of low-carbon emission products carbon reduction promoting energy-

strategic initiatives integrates green technology breakthroughs with while deepening collaboration saving and emission-reduction

carbon competitiveness enhancement and drives high-quality low- across the industry value chain. technologies and reducing energy

carbon development. This enables the Company to provide global consumption and carbon emissions.clients with innovative and sustainable industrial solutions.Dajin Heavy Industry Co. Ltd | 2024 Sustainability Report 13About Us Sustainable Development Special Topic Environmental Social Governance Indicator Index

Management

Sustainable Development Governance Framework Materiality Assessment Stakeholder Communication

Materiality Assessment

In 2024 Dajin Heavy Industry further optimized High

its materiality assessment process to ensure a

systematic accurate and efficient selection of 09

key sustainability topics. By integrating insights 01 10

from key stakeholders analyzing national 02

policies global and domestic sustainability 17

standards and industry trends we effectively

aligned our sustainability strategy with macro 03

policy directions and disclosure requirements 11

while conducting in-depth research on industry- 04

relevant topics. 18 12

Based on the above analysis we developed a 05 19

survey covering 20 key material topics inviting 06 13

both internal and external stakeholders to 07 14

participate in the evaluation. The assessment 08

ranked the significance of each topic based

on two core dimensions: "Impact on Dajin 20

Heavy Industry" and "Impact on external 16 15

stakeholders". This approach led to the

formation of a Materiality Matrix ensuring our

sustainability strategy is closely aligned with

industry needs and societal expectations. Low Materiality to Dajin Heavy Industry High

Environmental Social Governance

01 Low-carbon Products 09 Quality of Products and Services 17 Business Ethics and Compliance

02 Reducing Carbon Emissions 10 Health and Safety 18 Compliance Disclosure

03 Technological Innovation and Application 11 Sustainable Supply Chain 19 ESG Strategy and Risk Management

of Energy-saving Technologies 12 Employee’s Rights and Interests 20 ESG Govemance

04 Waste Management

13 Employee Development

05 Biodiversity Conservation

14 Remuneration and Benefits

06 Energy Management

15 Diversity

07 Promoting Circular Economy

16 Public Welfare Activities

08 Water Resources Management

Dajin Heavy Industry Co. Ltd | 2024 Sustainability Report 14

Materiality to external StakeholdersAbout Us Sustainable Development Special Topic Environmental Social Governance Indicator Index

Management

Sustainable Development Governance Framework Materiality Assessment Stakeholder Communication

Stakeholder Communication

We remain committed to actively addressing Stakeholders Communication

stakeholder expectations. Considering our

business characteristics and operational

Domestic and Business cooperation factory audits site visits client service hotline client satisfaction surveys client

realities we systematically identify core

Overseas clients meetings and emails official website and other online platforms etc.stakeholders and have established diverse

communication channels and efficient

engagement mechanisms to facilitate Shareholders Exchange and official website e-interactive platform company announcements through telephone and

transparent dialogue. By attentively listening Potential investors e-mail shareholders’ meeting analysts’ strategy meeting results briefing on-site visit etc.to stakeholder perspectives we integrate

their feedback into our sustainability

decision-making and practices continuously Government and Government and regulatory meetings training program cooperation information disclosure official

improving corporate governance and driving Regulatory Bodies correspondence and policy advice etc.high-quality sustainable development.Directors Supervisors General Meeting of Shareholders Board of Directors and its specialized committees Supervisory Board

Senior Management Specialized Meeting of Sole Directors etc.Staff Council Employee Suggestion Box Employee Satisfaction Survey Employee Activities Employee

Employees

Training etc.Suppliers and Supplier contractor business partnerships audits training communication meetings business

Contractors negotiations etc.Community and

Community service activities official website and other online platforms etc.the Public

Media Press releases company announcements media interviews etc.Industry on-site communication meetings industry online seminars cooperation and communication

Industry Association

through e-mail and telephone etc.Dajin Heavy Industry Co. Ltd | 2024 Sustainability Report 15Special Topic:

Setting SBTi Target 17 Penglai Facility Practices

Current Status of Carbon Emissions

and Energy Structure 18 SBTi Targets and Leads the Way

Carbon Neutral Pathway 18 to Low-Carbon Transition

Amid the pressing challenges of global climate change enterprises play a crucial role in

driving social and economic development while bearing an inescapable responsibility for

environmental protection. Dajin Heavy Industry recognizes that achieving carbon neutrality

is not only a corporate social responsibility but also a strategic pathway for transformation

upgrading and long-term sustainability. As a result the Company has fully integrated

carbon neutrality goals into its corporate development strategy leveraging technological

innovation management optimization and industrial chain collaboration to drive emission

reductions and contribute to a green low-carbon society.SDGs

Dajin Heavy Industry Co. Ltd | 2024 Sustainability Report 16About Us Sustainable Development Management Special Topic Environmental Social Governance Indicator Index

Penglai Facility Practices SBTi Targets and Leads Advancing Green Steel Strategy—Pioneering a

the Way to Low-Carbon Transition New Chapter in Sustainable Manufacturing

Setting SBTi Target

The Penglai Facility "has For Scope 1 and Scope 2 GHG emissions the facility has set clear targets For Scope 3 emissions

adhered strictly to the Science

Based Targets initiative (SBTi)

standards and conducts in- by 2030 it aims to reduce absolute emissions by 42% compared to 2024 levels the target is to reduce emissions by 25% by 2030

depth research and analysis

on its operational status and

industry development trends. and by 2050 this reduction will increase to 90% compared to 2024 levels and achieve a 90% reduction by 2050

Based on this Penglai Facility

has established a set of emission

reduction targets that are both

challenging and feasible. Ultimately the Penglai Facility is committed to achieving net-zero greenhouse gas

emissions across the entire value chain by 2050

Dajin Heavy Industry Co. Ltd | 2024 Sustainability Report 17About Us Sustainable Development Management Special Topic Environmental Social Governance Indicator Index

Penglai Facility Practices SBTi Targets and Leads Advancing Green Steel Strategy—Pioneering a

the Way to Low-Carbon Transition New Chapter in Sustainable Manufacturing

Current Status of Carbon Emissions Carbon Neutral Pathway

and Energy Structure Aligned with the principles and requirements of SBTi the Penglai Facility's carbon neutrality pathway for

Scope 1 and Scope 2 emissions focuses on three core strategies: energy efficiency electrification and green

The Penglai Facility takes 2024 as the key benchmark year and follows internationally recognized standards electricity development and carbon offsetting. The approaches include reducing energy consumption

such as the Greenhouse Gas Protocol (GHG Protocol) and ISO 14064-1:2018 Specification with guidance at the through targeted energy-saving goals optimized energy management and technological advancements;

organization level for quantification and reporting of greenhouse gas emissions and removals. The facility has accelerating the transition to a cleaner energy structure by promoting electrification and expanding the

conducted a comprehensive systematic and detailed inventory of its greenhouse gas emissions. The results use of green electricity; and offsetting residual emissions through carbon sink projects. By systematically

indicates that emissions sources at the Penglai Facility are widely distributed across multiple areas: implementing these strategies the Penglai Facility is committed to achieving its carbon neutrality targets.Scope 1 covers direct greenhouse gas emissions from sources such as stationary combustion and mobile

combustion with annual emissions totaling 15916.75 tons of CO2e accounting for 2.24% of total emissions.Scope 2 primarily involves indirect emissions from purchased electricity with annual emissions of 15820.32 Energy-Saving Measures and Renovation

tons of CO2e representing 2.23%.The Penglai Facility has established clear forward-looking energy-saving KPI targets aiming to reduce energy

Scope 3 includes various indirect emissions along the value chain such as purchased goods and services intensity per unit of product revenue by 6% by 2030 compared to 2024 and further reduce this intensity

capital goods and upstream and downstream transportation and distribution. The annual emissions for by 30% by 2050. To ensure the achievement of these goals the facility has prioritized the development

Scope 3 reached 678615.85 tons of CO2e accounting for 95.53% of the total. and enhancement of its energy management system including compliance with ISO 50001. Additionally

it continues to deeply explore energy-saving potential through practical measures such as optimizing

Emissions by Sub-category under Scope 1 and Scope 2 (tCO e) production equipment and improving process flows.2

37% 1.1 Stationary Source Combustion Emissions 2024 2030 2050

Scope 1 and 1.2 Mobile Source Combustion Emissions

49.82%

Scope 2 1.3 Industrial Process Emissions and Removals

1.4 Fugitive Emissons from Human Activities

7% 2.1 Electricity indirect GHG emissions

5.18%

1%

Emissions by Sub-category under Scope 3 (tCO2e) 6%

3.1 Purchased goods and services

2.61% 3.2 Capital goods

0.70%

1.34% 3.3 Fuel-and energy-related activities

0.01% 30%(not included in scope 1 or scope 2)

0.04%

0.14% 3.4 Upstream transportation and distribution aiming to reduce energy intensity

2.06%

93.10% Scope 3 0.00% 3.5 Waste generated in operations per unit of product revenue

3.6 Business travel by 2030 compared to 2024

3.7 Employee commuting further reduce this intensity

3.9 Downstream transportation and distribution by 2050

3.12 End-of-life treatment of sold products

Dajin Heavy Industry Co. Ltd | 2024 Sustainability Report 18About Us Sustainable Development Management Special Topic Environmental Social Governance Indicator Index

Penglai Facility Practices SBTi Targets and Leads Advancing Green Steel Strategy—Pioneering a

the Way to Low-Carbon Transition New Chapter in Sustainable Manufacturing

Energy Structure Adjustment Scope 3 Net Zero Target

Penglai Facility actively aligns with the energy transition trend and will vigorously promote the electrification To steadily achieve its Scope 3 greenhouse gas (GHG) reduction targets the Penglai Facility is prioritizing

process. A detailed electrification KPI system has been established targeting different emission sources. supply chain management as a key driver of decarbonization with a particular emphasis on key raw

For fixed sources such as welding preheating using natural gas canteens and boilers and heating in the materials such as heavy steel plates and flanges driving low-carbon transformation systematically through

coating workshop as well as non-road transportation equipment using gasoline and diesel electrification the following initiatives:

renovations are being steadily implemented. Furthermore green electricity development is a key pillar

of the facility’s sustainability strategy. In 2024 the Penglai Facility used a total of 11181000.00 kWh of

green electricity accounting for 32% of its total electricity consumption. The facility plans to increase this

proportion to 60% by 2025 achieve 96.5% green electricity usage by 2030 and reach 100% by 2036.The Company has established strict carbon footprint entry standards

Strengthening for suppliers requiring upstream suppliers to provide lower-carbon

2025 2030 2036 Supplier Carbon products to reduce carbon emissions at the source. Additionally

the Company has enhanced the sustainable supply chain evaluation

Footprint mechanism with an increase weight on carbon emissions indicators

Management ensuring that low-carbon requirements are integrated throughout the

entire supply chain.

100.00%

96.50%

Advancing The Company encourages suppliers to optimize production processes

60.00% and apply low-carbon technologies to enhance carbon reduction levels Green Upgrades throughout the entire product lifecycle. The Company is also actively

in Production fostering a new suppliers system that meets green standards building

a full-chain carbon reduction ecosystem to continuously strengthen

Processes supply chain resilience and green competitiveness.Dajin Heavy Industry Penglai Facility’s Green electricity Target

Carbon Offset Strategy

At the upstream and downstream logistics stages Penglai Facility is

Building on the proactive emission reduction measures such as energy efficiency improvements and Green Logistics actively promoting the transition to alternative marine fuels gradually

electrification the Penglai Facility will develop a scientifically sound and reasonable carbon offset strategy and Transportation replacing traditional fossil fuels with low-carbon or zero-carbon

for the emissions that cannot be fully eliminated. To achieve operational carbon neutrality and ensure alternatives. This initiative significantly reduces greenhouse gas Decarbonization emissions in upstream and downstream transportation mitigating the

precise alignment with the SBTi net-zero targets the facility will: supply chain’s impact on climate change.Purchase high-quality carbon offsets to neutralize remaining emissions.Actively explore and participate in carbon sink projects with a focus on forest and ocean-based carbon

sinks to leverage emerging decarbonization opportunities.Dajin Heavy Industry Co. Ltd | 2024 Sustainability Report 19Special Topic:

Establishment of the Green Steel Task

Force 21 Advancing Green Steel Strategy—

In-Depth Research to Advance the

Green Transition of Chinese Steel Mills 21 Pioneering a New Chapter in

Establishing Green Steel Cooperation Sustainable Manufacturing

Principles to Deepen Industry-Wide

Win-Win Collaboration 21

In the context of accelerating global climate governance the 2°C temperature control target set by the Paris

Signing Green Steel Strategic Agreement is profoundly reshaping the global industrial landscape. The implementation of the European

Partnerships to Drive Low-Carbon Union's Carbon Border Adjustment Mechanism (CBAM) has formally integrated carbon pricing into the

Growth in the Global Wind Power international trade system with carbon taxes scheduled to be levied on high-emission imports such as steel

Industry 22 from 2026 onwards. This transformation is not only accelerating the clean transition of global manufacturing

but also urging companies to expedite their low-carbon development pathways.As a core material for strategic industries such as wind power and renewable energy green steel's low-

carbon emission attributes directly determine the emission reduction effectiveness of the entire industry

chain. In response Dajin Heavy Industry has proactively developed a green supply chain strategy driving

the low-carbon transition of upstream suppliers and deepening the global decarbonization pathways across

industrial value chains. As the only offshore wind foundation supplier in the Asia-Pacific region with large-

scale deliveries to Europe Dajin is actively integrating into the global green supply chain transformation

contributing to the green transition of the wind power industry.SDGs In 2024 Dajin Heavy Industry officially established its Green Steel Special Committee to comprehensively

advance the development of its green steel business enhance the Company's carbon competitiveness and

support domestic and international clients in building more low-carbon supply chains. The Company set up a

dedicated Green Steel Task Force to coordinate its green steel development strategies promote innovation

and application of low-carbon emission steel technologies and reduce the carbon footprint of its wind power

products——setting a benchmark for the global green transformation of the wind power industry.Dajin Heavy Industry Co. Ltd | 2024 Sustainability Report 20About Us Sustainable Development Management Special Topic Environmental Social Governance Indicator Index

Penglai Facility Practices SBTi Targets and Leads Advancing Green Steel Strategy—Pioneering a

the Way to Low-Carbon Transition New Chapter in Sustainable Manufacturing

Establishment of Establishing Green Steel Cooperation

the Green Steel Task Force Principles to Deepen Industry-Wide

To comprehensively implement its green steel strategy Dajin Heavy Industry officially established the Green Steel Win-Win Collaboration

Task Force in 2024. Led by a Sponsor the task force coordinated by a designated team leader and composed of

core members from key departments including the Sustainable Development Center Supply Chain Management In promoting the development of green steel products Dajin Heavy Industry adheres to the principle of win-

Center and Overseas Business Division creating a highly efficient and collaborative working mechanism. win cooperation and has established a set of green steel collaboration guidelines. These guidelines clearly

Based on clearly defined responsibilities the task force has developed a set of scientific working principles to ensure state that partners must possess advanced low-carbon production capabilities to ensure a competitiveness

the effective execution of the strategy. The Sponsor provides strategic guidance the team leader is responsible for in the global low-carbon transition. By partnering closely with top-tier green steel suppliers Dajin Heavy

overall coordination and departmental members work in close collaboration to form a synergized effort. Through Industry continues to enhance its technical capabilities and market adaptability in green steel. Together with

close cooperation among the Sustainable Development Center Supply Chain Management Center and Overseas its partners Dajin aims to meet the challenges of global green transformation and jointly build a competitive

Business Division the task force ensures efficient communication with clients and suppliers promptly conveying internationally recognized green supply chain system.requirements and feedback while accurately tracking of market trends. This approach guarantees that suppliers’

products meet client expectations. At the same time under the coordination of the task force departments

proactively provide necessary support and resources collectively advancing the success of green steel initiatives and Steel Plate Quality

accelerating the low-carbon emission transformation of the supply chain and the adoption of Green Steel products. Partner steel mills must have the ability to produce high quality steel platesespecially in the manufacture of

high-strengthcorrosion-resistant steel platesto meet the stringent requirements for material properties in

overseas offshore wind projects.In-Depth Research to Advance Green Steel Certification and StandardsThe green steel products of the partner steel mills must comply with the relevant EU and international certifications

the Green Transition of Chinese Steel Mills and standards to ensure the environmental performance of the products and their acceptability in the market.Capacity and Reputations

In 2024 Dajin Heavy Industry’s Green Steel Task Force conducted in-depth research at more than 10 Priority is given to steel mill partners with large-scale production capacity and market influence to ensure the

leading steel mills across China. The research focused on key topics such as steel plate production continuous supply of green steel products and their wide application in the market.processes product carbon footprints decarbonization technologies green steel development plans and

Technological lnnovation and R&D Capability

cost premiums. During these visits the task force held in-depth discussions with the steel mills' industrial

research institutes and carbon management departments. The dialogues centered on exploring technology Priority will be given to those mills with foresight and innovation in green steel technology R&D to promote

the development and application of low-carbon or zero-carbon steel plates.pathways for green steel sharing research findings and the latest technological developments and actively

identifying practical and feasible green steel solutions to support the industry’s low-carbon transformation. Supply Chain Transparency

Steel mills are required to provide comprehensive carbon emissions data and other environmental

information to ensure transparency and traceability throughout the supply chain.Market Adaptability

The green steel products of the partner steel mills must be adaptable to market demandincluding meeting

the actual needs of overseas offshore wind projects in terms of costperformanceand delivery time.Long-term Strategic Cooperation

Establish long-term strategic partnerships with steel mills to jointly set and promote higher environmental

and sustainability goalsand collaborate to meet the challenges of future market and regulatory changes.In May 2024 the Company visited the headquarters In August 2024 the Company visited Nanjing Iron andof Baowu Group Baosteel’s Baoshan Base in Shanghai Steel to conduct research and exchange ideas on “low-and Zhanjiang Base to learn more about heavy steel carbon” strategy and green steel. Dajin Heavy Industry Establishes Principles for Cooperation with Green Steel Mills

plate production lines and green steel planning.Dajin Heavy Industry Co. Ltd | 2024 Sustainability Report 21About Us Sustainable Development Management Special Topic Environmental Social Governance Indicator Index

Penglai Facility Practices SBTi Targets and Leads Advancing Green Steel Strategy—Pioneering a

the Way to Low-Carbon Transition New Chapter in Sustainable Manufacturing

Signing Green Steel Strategic

Partnerships to Drive Low-

Carbon Growth in the Global Looking ahead Chinese steel mills will continue to leverage their

Wind Power Industry institutional strengths resource integration capabilities and technological innovation to make steady advancements in the

In 2024 Dajin Heavy Industry officially signed green steel strategic cooperation green steel sector providing strong support for the sustainable

framework agreements with Baosteel and Nanjing Iron & Steel. The development of offshore wind industry in Europe. Dajin Heavy

partnerships focus on improving steel plate production processes optimizing

carbon footprints and advancing green steel planning. Through joint efforts in Industry will take this green steel cooperation as a key opportunity

technical research project implementation and knowledge sharing Dajin and to deepen its green and low-carbon transformation. By joining

its partners are working together to build an international green supply chain forces with global partners to build a greener and more sustainable

system and provide low-carbon emission steel solutions from China to support

the decarbonization of the global wind power industry. supply chain Dajin is committed to contributing “Dajin Strength” to

the realization of global climate goals.Signing of the Green Steel Strategic Cooperation Framework

Agreement with Baosteel

Signing of Green Steel Strategic Cooperation Framework

Agreement with Nanjing Iron and Steel (NISCO)

Dajin Heavy Industry Co. Ltd | 2024 Sustainability Report 22About Us Sustainable Development Management Special Topic Environmental Social Governance Indicator Index

Penglai Facility Practices SBTi Targets and Leads Advancing Green Steel Strategy—Pioneering a

the Way to Low-Carbon Transition New Chapter in Sustainable Manufacturing

Dajin Heavy Industry Co. Ltd | 2024 Sustainability Report 23EnvironmentalResponding to Climate Change 25 Dajin Heavy Industry remains steadfast in its corporate vision of “Sailing Toward aSustainable and Greener Future.” The Company is committed to green and low-carbon

Strengthening Environmental Management 32 emission development integrating environmental sustainability deeply into its production

Environmental Key performance Data 39 and operations. By actively contributing to the achievement of carbon peaking and carbon

neutrality goals while strengthening its own environmental management systems

Dajin strives to protect natural ecological harmony and support both national and global

transitions toward a green and low-carbon emission future.SDGs

Dajin Heavy Industry Co. Ltd | 2024 Sustainability Report 24About Us Sustainable Development Management Special Topic Environmental Social Governance Indicator Index

Responding to Climate Change Strengthening Environmental Management Environmental Key Performance Data

Responding to Climate Change

Dajin Heavy Industry incorporates climate Major Climate Change-related Risk and Opportunities for Dajin Heavy Industry and Measures to Address Them

change-related factors into its business

risk identification process continuously Types Categories Descriptions Existing or Potential Impact on Impact Company Response Measures in the Company Scopes Place or Planned

advancing its efforts to identify and

respond to climate change risks. At the Early warning mechanisms and emergency This will lead to power outages

same time the Company proactively plans to deal with severe weather have been set water outages and damage to up at each production site and the resilience

seizes the opportunities brought by

Increased frequency of production equipment which will of equipment has been upgraded to improve

climate change positioning global low- extreme natural disasters affect the normal operation of the resistance to natural disasters.carbon emission development and energy Acute such as typhoons floods Company’s production facilities Short-term Programs are in place to ensure a stable and

transformation as key growth drivers. The and extreme weather affect logistics and transportation and reduce the timeliness continuous supply of the supply chain and we are

Company accelerates product optimization events. and safety of the supply chain working with marine logistics-related departments

and strategically expands its focus on the transportation link resulting in to adjust transportation routes in accordance with

renewable energy sector to meet the ever- Physical Risk potential economic losses.weather conditions to reduce the possible impact

of bad weather on product delivery.evolving low-carbon emission demands of

its downstream clients. Some of the production facilities are When constructing new production facilities and Risks of long-term climate

change such as a sustained located along the coastline as well

other office areas the long-term risks of climate

rise in global temperatures as in river basins and the related

change are taken into account in the selection of

risks may lead to relocation of Medium- sites so as to minimize the impact of such risks.due to climate change

Climate Change Risk Chronic leading to rising sea levels operation sites increased demand and Long- For established production facilities

changes in the distribution for refrigeration equipment and term construction of breakwaters and upgrading of

and Opportunities of water resources and hot increased frequency of equipment the efficiency of refrigeration equipment will be

weather. maintenance etc. which may increase carried out to strengthen the resilience of the the Company’s operating costs. facilities to the long-term risk of climate change.Following the Recommendations of the As domestic and international In the face of increasingly stringent

Task Force on Climate-related Financial attention to climate change regulatory trends the Company may

Disclosures (TCFD) Dajin Heavy Industry continues to grow related face growing compliance risks in areas Pay close attention to the update of domestic

comprehensively identifies analyzes and Policy and climate regulations and industry such as product import and export trade Medium- and international policies and regulations

evaluates the risks and opportunities Regulatory standards are becoming and compliance operations. Meanwhile increasingly stringent such as given the global surge in demand for low- and Long-

follow the latest policy trends related to climate

related to climate change within the Risks change and quickly implement strategies to CBAM China’s “Dual Carbon” carbon and renewable energy changes term reduce the carbon footprint of products and

context of its business and operational development strategy and new in clean energy-related policies and operational carbon emissions.conditions. Based on this analysis the policies and regulations are subsidies may occur potentially affecting

Company develops corresponding constantly being introduced. the Company’s profitability.strategies and countermeasures to Evaluate the carbon emissions of the whole process

address these challenges and capitalize on Transition Risk of the product production cycle and accurately

emerging opportunities. Market attention and

expectations for green and In order to meet the requirements of

formulate precise carbon reduction plans based on

low-carbon emission products low-carbon emission and environmental

inventory reports.are rising with both domestic protection the Company needs to During the year the Company established a

Market and international downstream allocate more resources to technological

Medium-

dedicated Green Steel Task Force to conduct in-

Risks clients placing higher demands research and development equipment

and Long-

term depth research on steel plate production process in

on the Company's climate risk upgrades and raw material optimization China product carbon footprints decarbonization

management and low-carbon etc. which may lead to increased technologies green steel planning and cost

emission performance. production and procurement costs. premiums etc.. The task force is committed to

providing practical green steel solutions for global

offshore and onshore wind clients.Dajin Heavy Industry Co. Ltd | 2024 Sustainability Report 25About Us Sustainable Development Management Special Topic Environmental Social Governance Indicator Index

Responding to Climate Change Strengthening Environmental Management Environmental Key Performance Data

Types Categories Descriptions Existing or Potential Impact on the Company Impact Scopes Company Response Measures in Place or Planned

The Company is actively undertaking low-carbon

transformation initiatives accelerating the deployment

of the sustainable energy industry and timely

If the Company fails to communicate the progress communicating its progress in low-carbon emission Stakeholders are increasingly development to stakeholders through channels such as

Reputational attentive to the Company’s

and status of low-carbon emission development

Transition Risk performance in green and low- in a timely manner it may negatively impact Medium- and

sustainability report enhancing its image as sustainable

Risks carbon development as well as its the Company's reputation and brand image Long-term

development leader.response to climate change. which in turn may affect the Company’s market This year the Company was awarded the EcoVadis Bronze performance. Medal CDP C level both in Climate and Water Security

and recognized by a leading international offshore winddeveloper and operator as the “Most Advanced Supplierin Sustainable Development in Asia-Pacific Region”.Both domestic and international

policies supporting the new energy Continuously improving product quality and optimizing

industry have been introduced such the manufacturing processes according to clients' needs

as China’s Action Plan for High-Quality the Company aims to steadily provide high-quality low-

Development of the New Energy For companies focused on wind power emission towers offshore engineering infrastructure and

Storage Manufacturing Industry (Draft equipment manufacturing the introduction other steel components for wind power to downstream

Market for Public Comments) and Japan’s and implementation of favorable policies have clients expanding the Company's market share.Opportunity Green Growth Strategy Through created new market opportunities potentially Long-term Accelerating the layout of renewable energy industries

Achieving Carbon Neutrality in 2050. driving the expansion of the Company’s such as wind farms and formulating a work plan focusedThese initiatives further promote the operational market and increasing revenue. on “increasing design optimization and deepeningdevelopment of both offshore and cost reduction” to enhance the competitiveness of

onshore wind power industry thereby the Company's sustainable energy power generation

expanding the potential of the wind projects and maintain its market advantage.Opportunities power market.Closely monitoring the latest developments in the carbon

Various countries and regions An increasing number of energy-intensive

market Dajin Heavy Industry keeps track of market

trends in real time to help the Company anticipate

around the world are gradually industries are participating in carbon emissions

establishing and launching carbon trading schemes. This enables companies to

future directions mitigate potential risks and seize

environmental opportunities.Resilience emissions trading system aiming obtain emission allowance while optimizing Medium- and

Opportunities to control and reduce greenhouse their own emission costs. At the same time it Long-term The Company continues to invest in and develop

gas emissions through market- encourages environmental technology innovation renewable energy projects while actively participating

based mechanism for carbon in environmental technologies and the use and in green electricity trading to reduce carbon emissions.emission trading. development of clean energy thereby promoting As of 2024 the Company has generated a total of 1.102 the Company’s sustainable development. billion kWh of green electricity equivalent to reducing

591300 tons of CO2 emissions.

Dajin Heavy Industry Co. Ltd | 2024 Sustainability Report 26About Us Sustainable Development Management Special Topic Environmental Social Governance Indicator Index

Responding to Climate Change Strengthening Environmental Management Environmental Key Performance Data

Providing Low-Carbon Emission Solutions

Dajin Heavy Industries remains committed to delivering high-quality wind power products and delivery solutions Reducing the Carbon Footprint of Product

while actively reducing carbon emissions generated during production and daily operations. Additionally the

Company plays a key role in guiding and promoting low-carbon development among upstream and downstream Dajin Heavy Industry is committed to building a green low-carbon supply chain and actively explores

partners in the supply chain jointly advancing the transition to a low-carbon economy. product lifecycle carbon emissions management. By identifying key factors affecting the carbon footprint

across raw material procurement manufacturing and logistics the Company implements multiple measures

to improve resource efficiency and advance carbon reduction.Carbon Peak and Carbon Neutrality Goals and Carbon Reduction Pathway

Implementing of Green Procurement

To support China’s 14th Five-Year Plan the 2035 Long-Range Objectives the 30·60 Carbon Peaking and

Carbon Neutrality Goals as well as the United Nations’ Paris Agreement Dajin Heavy Industry’s Penglai To further promote green development across the supply chain the Company has formulated and

Facility has taken the lead in announcing its "Dual-Carbon" goals. In 2024 building upon its already achieved implemented the Green Supply Chain Management Measures. These measures cover raw material suppliers

peak carbon emissions the Company will further update its “Dual-Carbon” goals and outline a refined manufacturers distributors retailers and end-users forming a chain structure pathway or network to

carbon reduction roadmap. establish a comprehensive green supply chain system. By enhancing resource efficiency at each stage of the

supply chain Dajin Heavy Industry effectively minimizes ecological and environmental impacts supporting

Target for 2050 to maintain its sustainable competitive advantage.Target for 2040

Target for 2030 Performance

Carbon emissions from scope Achive carbon neutrality in By 2050 net zero emissions of In 2024 the Company distributed the Green Supply Chain Management Measures and the Conflict

1（ direct emissions) and scope scope 1 and 2 and decarbonize the full value chain (including Minerals Non-use Self-Declaration to 19 relevant suppliers via email.2（indirect emissions) have its own operations through scope 3) will be achieved indecreased by 42% compared to process optimization energy which the emission intensity of All suppliers organized internal training sessions and submitted their acknowledgement achieving a

the base year. structure transformation (such steel and flange procurement

Scope 3 (value chain emissions) as using renewable energy) will be significantly reduced

reduced by 25%; for steel and other measures. from 2.39 tons of products/ton 100% response rate.procurement the emission CO2e to 0.128 tons/ton CO2e a

intensity of scope 3 will decrease decrease of 95%。 In addition during the supplier admission process we require suppliers tofrom 2.39 tons of steel Plate/ton

CO e to 1.22 tons of steel plate/ upload their ISO 14000 Environmental Management System certificates 2

ton CO e which achive half through the Company’s procurement platform (“Yicaitong”). This ensures 2

reduction on emission intensity. that suppliers adhere to international environmental management

standards during production thereby minimizing negative environmental

Penglai Faci l it y "Dual Carbon" Targets impacts. By setting this requirement we aim to lead upstream and

downstream enterprises in enhancing environmental management

practices improving overall supply chain environmental performance and

driving coordinated progress in green supply chain development.Performance To ensure the full implementation of green supply chain practices the

Company conducted a specialized training program on the Green Supply Supply Chain Management Center

Chain Management Measures in 2024 for employees in the Supply Chain conducted trainings on Green Supply

Management Center. The program deepened their understanding of Chain Management Measures

179600 sustainable procurement principles and strengthened their practical In 2024 an investment of RMB was made in emission reduction initiatives. application skills. By integrating training with real-world practice the

Company actively promotes green procurement initiatives across all

departments fostering a culture where all employees participate in and

uphold green supply chain management.Dajin Heavy Industry Co. Ltd | 2024 Sustainability Report 27About Us Sustainable Development Management Special Topic Environmental Social Governance Indicator Index

Responding to Climate Change Strengthening Environmental Management Environmental Key Performance Data

Implementing Green Production: Promoting Low-Carbon Process Upgrades

The Company continually explores carbon reduction pathways in production processes focusing on key production techniques such as beveling welding and painting. By continuously optimizing production techniques

and workflows we reduce raw material and energy consumption collaboratively decreasing carbon emissions from both material usage and manufacturing operations.Case Study

Optimizing Bevel Angles to Improve Welding Energy Efficiency Spraying Painting Process Upgrade to Reduce Paint Waste

In a project in Zhangjiakou Facility the traditional old beveling process has the problem of wastage of In the anti-corrosion workshop the traditional spraying method often resulted in the

welding consumables and energy due to design limitations. The project originally used larger bevel release of harmful gases such as xylene and toluene and led to significant paint waste and

angles such as 60° and 75° for steel plate welding which met the welding strength requirements frequent defects. To improve this situation the Fuxin Facility introduced a general-purpose

but resulted in lower welding consumables and energy utilization. In order to reduce cost waste and spray painting turntable and rotating spray process to optimize the spraying method. This

environmental burdens the project team scientifically optimized the bevel angle. By reducing the improvement effectively reduced the paint quota loss factor improved the passing rate of paint

groove angle while maintaining welding strength we achieved dual savings in both welding materials inspection and reduced paint defects and usage. At the same time the harmful gas emission

and energy consumption. After optimization: Wire consumption decreased by 11.06% (approx. 140 kg was significantly reduced achieving the double enhancement of environmental protection and

per unit). Flux usage dropped by 11.07% (approx. 150 kg per unit). The improved process also enhanced production efficiency.energy efficiency reducing both material waste and carbon emissions. This delivers a true win-win

outcome—lower production costs and greater environmental benefits.Gas-free Bevel Welding Process Reduces Toxic Gas Emissions Upgrading Catalytic Combustion RTO Heating System to Reduce VOC Emissions

At the Fuxin Facility traditional tower fabrication relied on submerged arc welding (SAW) for Traditional catalytic combustion technology faces challenges such as catalyst poisoning and

longitudinal and circumferential seams with carbon arc gouging as the primary method for deactivation caused by tar sulfur compounds and other substances along with insufficient

weld root cleaning. However this process emits benzopyrene-laden fumes posing health risks high-temperature stability. These issues lead to fluctuations in treatment efficiency and rising

to workers while generating smoke arc glare and noise pollution—undermining environmental operation and maintenance costs. To overcome these bottlenecks the Zhangjiakou facility has

goals. To address this Fuxin Facility established a Gas-free Gouging Process Team integrating introduced Regenerative Thermal Oxidation (RTO) technology.professionals from R&D production equipment and quality control departments to tackle the RTO technology uses high-temperature oxidation to convert VOCs in waste gases into carbon

problem. After several rounds of testing and optimization the team successfully developed and dioxide and water achieving a purification efficiency of 95% to 99%. The system is equipped

implemented a gas-free gouging technology suitable for steel plates with a thickness of less with real-time monitoring to track operating status and waste gas emissions ensuring that

than 23mm which was fully adopted in actual production. For towers weighing less than 60 the discharged gases meet environmental standards. Furthermore the RTO equipment uses

tons the average carbon rod consumption has been reduced to 1 rod/ton. This improvement regenerative ceramic beds to recover heat which is then used to preheat subsequent waste gases

not only significantly reduces the emission of harmful gases in the work environment but enabling efficient heat recovery and significantly reducing energy consumption during operation.also reduces smoke arc light and noise pollution generated during the carbon arc gouging

process. It has greatly improved the work environment reduced occupational health risks and

enhanced employees’ sense of safety and comfort.Dajin Heavy Industry Co. Ltd | 2024 Sustainability Report 28About Us Sustainable Development Management Special Topic Environmental Social Governance Indicator Index

Responding to Climate Change Strengthening Environmental Management Environmental Key Performance Data

Promoting Recycling

The Company continuously enhances its capacity to recycle waste materials throughout the production process. Through innovative production

management initiatives it effectively lowers production costs reduces reliance on primary resources and minimizes environmental pollution

caused by waste. By promoting the adoption of green production models the Company fosters a sustainable approach that delivers both

economic and environmental benefits creating a win-win outcome.Performance Case Study

In 2024 the utilization of steel scrap and leftover materials reached Green Recycling of Steel Plate Cutting Scrap

1145.52 In 2024 the Yangjiang Facility implemented unified management of steel plate cutting waste generated during the production tons process significantly enhancing both environmental and economic benefits. By setting up a special waste recycling area on the

production line the waste materials that can be reused are selected for secondary cutting and processing and are made into various

kinds of tooling such as marine tooling vertical shipping tooling tower storage saddles and flange support solutions. For the steel

while the utilization of other scrap materials such as wooden plate cutting scrap that can’t be utilized the base adopts a unified collection method and establishes a cooperative relationship

pallets and packaging materials amounted to with a professional waste recycling company to sell the collected steel plate cutting scrap on a regular basis. This series of initiatives

300 have reduced the demand for new steel plates alleviating environmental pressures from resource extraction and lowering kg energy consumption and carbon emissions associated with new steel plates production. This initiative not only saves raw material

procurement costs but also provides innovative ideas for the green development of the entire industry.Tower Storage Saddles

Re-utilization of Overstocked Bolts Inventory

In 2024 the Fuxin Facility undertook the production task of mixed tower transition sections for a project. During production the originally

planned M42 bolts were insufficient and there were no available fixed matching bolts in the hardware warehouse for direct installation.To address this issue the facility selected bolts from the overstocked inventory that were either of the wrong length had varying thread

lengths or were slightly larger in size. These bolts were then processed using a lathe machine to modify them into the required M42 bolt

model. These modified bolts were successfully applied to the fixed welding work of the mixed tower transition section. A total of 260 sets

of bolts were modified throughout the year effectively solving the bolt shortage problem in the production of the mixed tower transition

sections. This not only optimized the overstocked inventory but also prevented resource waste and additional cost expenditures.Dajin Heavy Industry Co. Ltd | 2024 Sustainability Report 29About Us Sustainable Development Management Special Topic Environmental Social Governance Indicator Index

Responding to Climate Change Strengthening Environmental Management Environmental Key Performance Data

Building Green Logistics

The Company actively practices the concept of green logistics by strengthening warehousing management

capabilities improving logistics transit efficiency and optimizing transportation route planning continuously Case Study

enhancing its green logistics system.Penglai Facility Reduced the Environmental Impact during Logistics and Transport

In 2024 the logistics workshop at the Penglai

Facility further enhanced its efficiency by

Management Objectives Major Measures optimizing key factors such as production

Strictly check the warehouse Optimize inventory management capacity product type transport procedure

material submission plan to reduce inventory overhang and optimization and tooling modifications. By

reduce purchasing and reducing reduce inventory loss. integrating SPMT (Self-Propelled Modular

emission. Improve the utilization rate of Transporter) resources and refining axle

The warehouse logistics industry storage space and reduce storage configurations the facility reduced the

is facing the trend of green costs. number of axles from 120 in the first half

development and it needs to Improve storage operation of 2024 to 100 axles contributing to lower SPMT

improve the storage operation efficiency and reduce labor cost. emissions of sulfur dioxide nitrogen oxides

capacity by focusing on the

environment resources and Ensure the safety and compliance smoke and other exhaust gases. Additionally the logistics workshop improved packaging

efficiency. of storage operations. methods to address challenges posed by the large mass and small contact surface of individual

Enhance the intelligent storage Achieve the real-time monitoring products which previously led to paint wrinkling and breakage. With this improvement there was

management capability improve data analysis and decision virtually no damage during transport significantly reducing the need for paint repairs.the space utilization rate and support of warehousing

realize a more refined inventory operations.management. Fuxin Facility

Strengthened the The Shipping Division Continuously Deepens Optimal Transport Solutions

Warehouse Management In 2024 the Shipping Division fully leveraged its professional advantages and innovative spirit during

Capability the sea transport phase of product delivery. By accurately planning the number of monopiles and

the ship's cargo capacity the Division carried out deck modifications adding external extension

brackets to expand the cargo area. At the same time considering the safety risks in international

waters comprehensive safety measures were implemented significantly enhancing risk resilience.Without detouring the transportation task was successfully completed achieving a perfect balance

between cost savings efficiency improvement and safety assurance. Additionally the Shipping Division

incorporated carbon emission indicators into its shipping vessel leasing criteria classifying the vessels’

carbon emissions based on reports provided by leasing companies and prioritizing the selection of

energy-efficient shipping companies with lower carbon emission indicators to promote green shipping.Management Performance

Continue to improve warehouse management and job responsibilities

efficiently integrate environmental protection and social responsibility into

the operation of corporate culture and strengthen various measures in

environmental improvement and supply chain cooperation and resource

conservation have been achieved to reduce costs and increase efficiency.Dajin Heavy Industry Co. Ltd | 2024 Sustainability Report 30About Us Sustainable Development Management Special Topic Environmental Social Governance Indicator Index

Responding to Climate Change Strengthening Environmental Management Environmental Key Performance Data

Supporting Society’s Low-Carbon Transition

Dajin Heavy Industry upholds the concept of green and low-carbon development actively laying out and

accelerating the development of the green energy industry particularly in wind power generation and

other fields. The Company is dedicated to reducing its own carbon emissions while contributing to society’s

transition toward low-carbon development.The Company continues to advance the construction of wind farms and photovoltaic power plants. By the end

of 2024 the Company had completed and put into operation the 250MW Fuxin Zhangwu Xiliujiazi Wind Farm.Additionally the 250MW Tangshan Caofeidian Aquaculture-PV Complementary Project is under construction and

is expected to be connected to the grid in April 2025. The 700MW Tangshan Caofeidian Wind Power Project and

the 250MW Tangshan Fengnan Wind Power Project have both obtained construction permits and are actively

processing preliminary development procedures. Once completed these projects are expected to provide

approximately 3.4 billion kWh of green electricity annually reducing carbon emissions by about 1.82 million tons.Performance

In 2024

the Company cumulatively holds 250000 kW of grid-connected wind power projects

with 63 turbines installed

The total power generation reached 1.102 billion kWh

equivalent to a reduction of 591300 tons of carbon dioxide emissions

Green Finance

In line with the Company's renewable energy investment strategy the Company has actively advanced

green finance initiatives. By the end of 2024 the Shilihai PV Project had secured 849 million RMB in financing

approvals with 320 million RMB disbursed. In the future the financing scale for the Tangshan Wind Power

Project is expected to reach 3 billion RMB.Dajin Heavy Industry Co. Ltd | 2024 Sustainability Report 31About Us Sustainable Development Management Special Topic Environmental Social Governance Indicator Index

Responding to Climate Change Strengthening Environmental Management Environmental Key Performance Data

Strengthening Environmental Management

Dajin Heavy Industry always adheres to the development philosophy of green and environmental protection actively promoting a clean production model and striving to build a production system with efficient resource utilization

and environmental friendliness. Throughout its production and operations the Company continuously explores and advances the circular economy strictly controlling the discharge of pollutants and waste and reducing the impact

on the surrounding natural ecology and biodiversity from the source. Through practical actions the Company fulfills its green responsibility and makes a positive contribution to sustainable development.Enhancing Management Capabilities Resource Management Optimization

Environmental Management System Energy Management

Dajin Heavy Industries has always regarded environmental protection as one of its core responsibilities in business Dajin Heavy Industry strictly adheres to national and local energy management laws and regulations developing

development. The Company strictly complies with and enforces key laws and regulations such as the Environmental energy-saving and consumption-reduction policies tailored to its business operations. The Company implements

Protection Law of the People’s Republic of China the Air Pollution Prevention and Control Law of the People’s Republic meticulous management of energy consumption throughout its production and operations. By actively adopting

of China the Water Pollution Prevention and Control Law of the People’s Republic of China and the Clean Production energy-saving and efficiency-improving measures the Company effectively fulfills its commitment to energy

Promotion Law of the People’s Republic of China. Additionally the Company follows the relevant standards of the conservation and emission reduction.ISO 14001 Environmental Management System and actively builds and improves its environmental management

system.The Company has developed key documents including the Environmental Policy Statement Environmental Indicators Unit Data

Management Procedures Environmental Impact Assessment Forms and List of Significant Environmental Factors

ensuring that environmental management requirements and measures are more standardized and transparent Total Integrated Energy Consumption MWh 133953.76

thereby laying a solid foundation for the Company’s sustainable development.Energy Consumption per Million RMB of Revenue MWh/Revenue in million RMB 35.44

Each of the Company’s production facilities has established Health Safety and Environment (HSE) departments

responsible for managing environmental matters at the facility level and regularly reporting the management results Total Direct Energy Consumption MWh 72718.79

to the Company headquarters. By the end of 2024 all long-term operational production facilities have obtained ISO

14001 Environmental Management System certification and the newly established production facilities in 2024 have Total Indirect Energy Consumption MWh 61234.97

initiated the certification process.Environmental Audit and Risk Prevention and Control Direct Eenergy Consumption of Dajin Heavy Indirect Energy Consumption of Dajin Heavy Industry in 2024 (MWh) Industry in 2024 (MWh)

The Company regularly conducts internal and external environmental impact audits systematically checking the

environmental risks and compliance at each production facility. Internally the Company has developed policy

documents such as the Departmental Environmental Factors List Departmental Environmental Factors Checklist

and Departmental Environmental Factors Evaluation Form and identifies significant environmental factors associated

Direct Eenergy Indirect Energy

with each department based on these documents. At the same time each facility regularly identifies and evaluates Consumption Consumption

internal environmental factors addressing any issues with targeted corrective actions to ensure early detection and

prevention of environmental risks.Environmental Emergency Management

Natural Gas Consumption 59038.33MWh

The Company pays close attention to the prevention and response to sudden environmental incidents and is committed

to enhancing the Company’s overall environmental emergency capabilities. The Company has developed several Diesel Consumption 11075.85MWh Total Purchased Electricity 60185.40MWh

environmental emergency management plans including the Emergency Plan for Environmental Incidents and Emergency Propane Consumption 1623.59MWh Total Purchased Heat 1049.57MWh

Plans for Heavy Pollution Weather. These plans clearly define the handling procedures for sudden environmental incidents

such as hazardous waste leakage fires and other unforeseen events. Additionally the Company implements a tiered Gasoline Consumption 981.00MWh

management system for environmental emergencies ensuring a refined approach to emergency incident management.Dajin Heavy Industry Co. Ltd | 2024 Sustainability Report 32About Us Sustainable Development Management Special Topic Environmental Social Governance Indicator Index

Responding to Climate Change Strengthening Environmental Management Environmental Key Performance Data

Raw Material Management Water Resource Management

Case Study

The Company has established materials management procedures such To improve water resource utilization efficiency and reduce water

as the Consumables Exchange and Distribution Control Procedure consumption the Company continues to optimize its water resource

The Penglai Facility Upgrades Carbon Rods and and the Consumables Control Management Regulations which strictly management strategies. In daily operations the Company focuses on

Heating Rods to Optimize Energy Management manage the distribution and recycling of materials like welding wire reducing water usage by implementing water recycling utilizing water-

and flux effectively reducing unnecessary material waste. saving devices and adopting water-efficient processes. For domestic

The Penglai Facility adheres to the concept of energy water consumption the Company displays water conservation notices

conservation and emission reduction actively improving in prominent areas to encourage water-saving actions. Additionally

energy utilization efficiency. In the production process Indicators Unit Data through training and promotional activities the Company strengthens

the Company strictly selects carbon rods each year employees’ awareness of water conservation transforming it into a

choosing durable stable-performing fracture-resistant collective action among all employees creating a positive atmosphere

and easy-to-operate rods which effectively improves Total for water resources protection within the Company.operational efficiency reduces defect rates and Consumption 1000 metric tons 524.2

minimizes energy waste caused by frequent carbon rod of Major Raw The Penglai Facility has established a waste water

replacements and rework. For the monopile welding Materials treatment station to treat domestic waste water which

is then used for greening and watering within the

process where the steel plates are thick and require a Penglai yard. Additionally to encourage employees to actively

preheating temperature above 100°C before welding Facility conserve water resources the facility tracks water

resulting in high energy consumption the Penglai

Raw Material consumption in the canteen monthly and continuously

Facility has improved the heating rods and optimized the monitors overall water usage to ensure the effective

internal structure to concentrate the heat source. After Consumption per 1000 metric tons/ 0.139 management and water-saving measures.the improvements heating efficiency has significantly Million RMB of Revenue in million RMB

increased and energy consumption has been drastically Revenue

To enhance the management of dust reduction

water Fuxin Facility has implemented an internal

reduced while achieving the same preheating effect management system About Dust Reduction Water.successfully meeting the energy-saving and efficiency- Fuxin This system standardizes the number of dust

Facility

enhancing goals. reduction applications water source usage water Steel Plates 1000 metric tons 488.2 consumption and other relevant requirements to

ensure the rational use of water resources.Flanges 1000 metric tons 28 Indicators Unit Data

Total Water Resources

1000 metric tons 199.8

Acquired

Welding Materials 1000 metric tons 7.9

Water Resources Acquired 1000 metric tons/

0.053

per Million RMB of Revenue Revenue in million RMB

Total Paint Usage 1000 liters 2069.49 Of which: Total Purchased

Improved Monopile Welding Preheating Process 1000 metric tons 188.7Water Resources

Of which: Total Natural

1000 metric tons 11.1

Water Resources Acquired

Dajin Heavy Industry Co. Ltd | 2024 Sustainability Report 33About Us Sustainable Development Management Special Topic Environmental Social Governance Indicator Index

Responding to Climate Change Strengthening Environmental Management Environmental Key Performance Data

Circular Economy Emissions Management

The Company adheres to the core principle of recycling and is committed to enhancing the overall utilization

of resources. We have established a comprehensive recycling system for production waste and are actively Noise Control

exploring viable pathways for waste reuse in the procurement process. By collaborating closely with our

suppliers we aim to transform waste generated during procurement into reusable resources thus reducing The Company strictly adheres to the Environmental Noise Pollution Prevention and Control Law of the

resource waste and minimizing environmental impact. People’s Republic of China and other relevant laws and regulations placing great emphasis on noise

pollution prevention and control in daily production especially in areas pone to high noise such as cutting

The Penglai Facility is actively advancing the development of a circular and sandblasting. A series of effective measures have been implemented to mitigate noise pollution.economy within the facility with clear milestones:

To ensure the occupational health and safety of employees in high-noise environments the Company provides

90% labor protection supplies on time in accordance with national and local requirements. Additionally the Company by 2030 the production recycling rate will reach at least continues to upgrade equipment and facilities replacing high-noise machinery with low-noise alternatives to

and by 2040 full recycling will be achieved. reduce noise at the source. The Company also standardizes material usage procedures to lowers noise levels

in the working environment. During project construction and operations the Company applies various noise-

reduction techniques such as adding dampers to equipment using the building structures for sound insulation

Case Study installing silencers on key noise sources like fans and strategically arranging production areas to minimize noise

overlap and spread. This year the Penglai Facility received certification under the Industrial Enterprise Boundary

Noise Standards (GB12348-2008) at the secondary standard level. Additionally the noise indicators for various

Transform Cutting Waste into Practical Brackets projects meet the requirements outlined in the Industrial Enterprise Boundary Environmental Noise Emission

Standards (GB12348-2008) and the Environmental Quality Standards for Noise (GB3096-2008).Penglai Facility actively practices the

concept of resource recycling and Case Study

reuse in production moving away from

traditional waste disposal methods and

innovatively recycling cutting wastes Noise Control and Safety Assurance at Penglai Facility

and other materials. In 2024 the facility Penglai Facility has taken multiple

creatively utilized cutting wastes and effective measures to address

discarded bolts to make more than 200 operational noise of grinding mills and

warning line brackets while using plate potential safety hazards ensuring the

strips to create over 50 fan brackets.Brackets Made from Cutting Wastes health and work safety of employees.These specific measures include:

Installation of Silencers: The grinders

are equipped with silencers to reduce

Green Office noise pollution.The Company emphasizes fostering green office awareness by posting notices in office buildings canteens Provision of Earplugs: Based on

factory areas and other spaces with reminders such as “turning off lights when not in use” “energy-saving noise levels earplugs are provided Grinders Silencers Noise-canceling Earplugsand environmental protection”. We also encourage employees to save water and paper fostering a culture of to employees to further protect their for On-site Personnel

conservation. Additionally the Company continues to carry out energy-saving upgrades to equipment gradually hearing.replacing energy-intensive devices with more energy-efficient lighting power generation and other equipment to Safety During Grinding Wheel Replacement: A quick plug-in method is used to cut off the air supply

reduce energy consumption of daily operations. During the year the Penglai Facility completed the replacement when replacing grinding wheels ensuring safety during the process.of outdoor lighting with energy-efficient (LED) lights and installed time-controlled clock lighting systems that

adjust lighting based on seasonal timing to prevent energy waste. The Zhangjiakou Facility based on the lighting Through these measures the Company is committed to providing a safer and healthier working

requirements of the anti-corrosion workshop selected high-brightness long-lifetime LED fixtures improving the environment for its employees.overall lighting quality of the workshop while significantly reducing electricity consumption.Dajin Heavy Industry Co. Ltd | 2024 Sustainability Report 34About Us Sustainable Development Management Special Topic Environmental Social Governance Indicator Index

Responding to Climate Change Strengthening Environmental Management Environmental Key Performance Data

Waste Gas Management

The waste gas emissions generated by the Company's operation mainly come from the smoke and dust Dajin Heavy Industry Major Waste Gas Emissions

produced during cutting grinding and welding. The Company strictly abide by the Environmental Protection Law 143.23 tons

the Air Pollution Prevention and Control Law of the People’s Republic of China and other laws and regulations 150

to ensure that the generation collection treatment and discharge of waste gases comply with national laws

and regulations. The Company clearly defines the responsibilities and specific requirements for waste gas 100 82.825 tons

management during project processes.

50 34.06 tons

The Company reduces emissions from production and operation by installing dust prevention and purification

equipment optimizing production processes and strengthening end-of-pipe treatment. All waste gas are fully 4.93 tons 2.25 tons 7.189 tons

compliant with regulatory standards. At the same time the Company engages a professional third-party organization 0 Nitrogen oxide (NOx) Volatile organic compoudns(VOC) Dust

to conduct regular monitoring and analysis of air pollutants enablingreal-time tracking of pollutant compliance levels.

20232024

Case Study

Enhancing Waste Gas Treatment Efficiency Through Integrated Treatment Facilities Equipment and Process Upgrades for Comprehensive Waste Gas Treatment

To effectively address the issue of volatile organic compounds (VOCs) dust and particulate The Fuxin Facility is committed to enhancing the efficiency of industrial exhaust gas

matter emissions generated during the painting and sandblasting processes and to ensure treatment by building a high-performance emission control system that ensures full-process

compliance with discharge standards the Penglai Facility has taken the following three management from the source to final discharge guaranteeing compliance with environmental

approaches to improve the efficiency of waste gas treatment: standards:

Improving Waste Gas Collection Efficiency: For smoke and dust generated during welding Fume Control in Manual Welding Areas: In the manual welding zones of the fabrication

and grinding the facility employs a combination of dust bags and filtration screens to workshop the facility has deployed mobile welding fume purifiers. These devices efficiently

uniformly collect pollutants. This method effectively prevents the escape of waste gases capture welding fumes at the moment they are generated significantly enhancing initial

and reduces the risk of diffusion in the workshop at the source. fume collection minimizing pollutant dispersion and improving the working environment.Increasing the Variety of Waste Gas Treatment Technologies: For organic waste gases Exhaust Treatment in the Anti-Corrosion Workshop: As a key source of exhaust gases

technologies such as activated carbon adsorption catalytic combustion and regenerative the anti-corrosion workshop is equipped with an advanced dust and paint mist treatment

thermal oxidation (RTO) are used in combination. Activated carbon adsorbs pollutants system. Utilizing combustion and activated carbon adsorption technologies this system

catalytic combustion decomposes organic substances and RTO technology improves effectively purifies the air by significantly reducing pollutant concentrations thereby

energy utilization significantly enhancing the waste gas treatment efficiency. ensuring clean and safe air quality in the workshop.Strengthening End-of-Pipe Treatment: Dust purification devices have been installed Exhaust Treatment for High-Energy Cutting Gases: The facility has implemented a

outside the welding material drying area effectively reducing the amount of smoke and desulfurization and drying pre-treatment process to ensure that no harmful substances are

dust levels in the workshop further improving the work environment for employees. produced during the combustion of cutting gases achieving "zero pollution" in exhaust gas

emissions and positive contribution to environmental protection.Through the above integrated measures the Penglai Facility has successfully enhanced its

waste gas treatment efficiency making a positive contribution to environmental protection and

safeguarding employee health.Dajin Heavy Industry Co. Ltd | 2024 Sustainability Report 35About Us Sustainable Development Management Special Topic Environmental Social Governance Indicator Index

Responding to Climate Change Strengthening Environmental Management Environmental Key Performance Data

Waste Management

The Company strictly complies with laws and regulations such as the Environmental Protection Law of the

People’s Republic of China the Water Pollution Prevention and Control Law of the People’s Republic of Indicators Unit Data

China the Soil Pollution Prevention and Control Law of the People’s Republic of China the Soil and Water

Conservation Law of the People’s Republic of China the Solid Waste Pollution Prevention and Control Law Total Weight of General Waste Generated tons 18105.68

of the People’s Republic of China the Cleaner Production Promotion Law of the People’s Republic of China Total Weight of General Waste Disposed tons 18105.68

the Energy Conservation Law of the People’s Republic of China and the Measures for the Administration of

Hazardous Waste Business Licenses . The Company strictly controls over the generation and discharge of Where: Total Weight of Metal Waste Recycled tons 1145.52

waste throughout production operations to minimize environmental impact.Where: Total Weight of Metal Waste Processed

The Company’s solid waste mainly includes general waste hazardous waste and domestic waste. The tons 12883.33 by Third Parties

Company has developed relevant documents such as the Waste Management Standards the Waste Disposal

Area Management Regulations and the Hazardous Waste Storage and Disposal Management Regulations to Total Weight of Hazardous Waste Generated tons 526.31

standardize the responsibilities of each link in waste disposal clarify the requirements for recycling storage Total Weight of Hazardous Waste Disposed tons 545.00

and disposal and entrust qualified third parties for recycling and treatment to ensure all waste is disposed

of in compliance with regulations.General Waste Hazardous Waste Office and Domestic Waste

Management Management Management

The Company requires all departments The Company has set up independent Waste generated from daily office

to strictly follow the waste disposal hazardous waste storage rooms operations and employee activities

process documents after waste with scientifically reasonable layouts is collected and sorted centrally.generation and classify the waste and strict management measures to Recyclable materials are reused

according to its type transferring it to ensure that the storage and handling wherever possible to reduce resource

the designated waste storage area to of hazardous materials pose no risk to consumption and promote a green

facilitate recycling efforts. workplace safety or employee health. office culture.

36Dajin Heavy Industry Co. Ltd | 2024 Sustainability Report 36About Us Sustainable Development Management Special Topic Environmental Social Governance Indicator Index

Responding to Climate Change Strengthening Environmental Management Environmental Key Performance Data

Biodiversity Protection

The Company places great importance on the impact of its operations on biodiversity and strictly adheres to firmly prohibiting any activity that damages ecosystems or harms biodiversity and actively participating

international and domestic laws and policy requirements including the UN Convention on Biological Diversity and in biodiversity conservation efforts while promoting its sustainable resource use through scientific

the “Kunming Declaration” as well as the Chinese government’s Opinions on Further Strengthening Biodiversity approaches.Protection. All business operations comply with relevant biodiversity protection standards. The Company conducts thorough risk identification and hazard assessments embedding ecological

The Company continuously enhances its biodiversity management system by integrating biodiversity protection principles throughout the entire project lifecycle. From planning and construction to operational

strategies into its ESG governance framework ensuring awareness and implementation across business management strict oversight ensures the effective implementation of biodiversity protection measures

processes. It has issued a Biodiversity Statement committing to the principles of sustainable development driving long-term ecological sustainability.Proactive Continuous

Rigorous Ongoing

Prevention and Awareness

Oversight

Control Campaigns

The Company places strong emphasis on the proactive The Company strictly follows policy guidelines related The Company actively utilizes multiple channels to

management of biodiversity-related risks and is actively to ecological conservation red lines and firmly upholds promote biodiversity conservation through consistent

advancing the deveiopment of a robust biodiversity the ecological red line protection concept. During facility communication and public outreach. It strengthens

risk governance assessment and prevention system. site selection and layout planning rigorous analysis engagement with social organizations and media. while

Biodiversity risk identification and control mechanisms and evaluation are conducted to ensure alignment with also expanding international exchange and cooperation

are continuously strengthened within the Company’s biodiversity conservation requirements. Throughout the in the field of biodiversity. By deeply participating in

govemance structure and core business processes. For entire lifecycle of engineering and project construction and leveraging existing global green initiatives the

construction and operational activities the Company the Company actively implements measures to protect Company aims to raise awareness of biodiversity

conducts comprehensive and scientific assessments natural habitatswetlands forests wildlife corridorsand protection among its employees suppliers partners

to accurately identify potential impacts on biodiversity agricultural land-minimizing adverse impacts on and the general public. Through diverse biodiversity-

caused by environmental pollution natural disasters surrounding ecosystems and biodiversity caused by themed educational campaigns and professional

and other factors-effectively mitigating risks at project development and operations. At the same training activities the Company continuously enhances

the source.At the same time the Company strictly time the Company closely monitors dynamic changes the biodiversity knowledge and awareness of its staff

adheres to biodiversity conservation principles and within ecosystems located in ecological red line areas and stakeholders. These efforts contribute to building

firmly refrains from conducting operations in areas of and strengthens the monitoring and management of a strong image of Dajin as an ecologically friendly

significant global or national biodiversity importance. biodiversity conservation conditions. enterprise within the context of green finance and

sustainable development.Dajin Heavy Industry Co. Ltd | 2024 Sustainability Report 37About Us Sustainable Development Management Special Topic Environmental Social Governance Indicator Index

Responding to Climate Change Strengthening Environmental Management Environmental Key Performance Data

Dajin Heavy Industry Biodiversity Conservation Initiative

During the reporting period the Company implemented strict

control measures in key areas such as foreign vessel waste disposal

and ecological restoration for new facilities. For foreign vessel

management the Company has established a comprehensive waste

management system and partnered with professional third-party

agencies for the treatment of oily wastewater and solid waste.These efforts ensure that vessel-generated waste is disposed of

in a timely safe and standardized manner thereby minimizing

environmental pollution to the greatest extent possible.For new built facilities the Company applies scientific planning

and strict construction management to minimize ecological

impact. In addition ongoing ecological maintenance efforts

have been carried out to further ensure optimal restoration

results during the operational phase. These measures reflect the

Company’s strong commitment to environmental protection and

its social responsibility and further support the realization of its

sustainability goals.Dajin Heavy Industry Co. Ltd | 2024 Sustainability Report 38About Us Sustainable Development Management Special Topic Environmental Social Governance Indicator Index

Responding to Climate Change Strengthening Environmental Management Environmental Key Performance Data

Environmental Key Performance Data

Indicators Unit 2024 2023

Total GHG Emissions Ton CO2e 49639.64 57580.18

GHG Emissions (Scope 1) Ton CO2e 20194.84 21174.11

GHG Emissions (Scope 2) Ton CO2e 29444.80 36406.07

GHG Emissions Intensity per Million RMB Revenue Ton CO2e / million RMB Revenue 13.13 13.31

Total Renewable Energy Production MWh 686008.35 416119.95

Total Integrated Energy Consumption MWh 133953.76 155572.72

Energy Consumption per Million RMB of Revenue MWh / million RMB Revenue 35.44 35.97

Total Direct Energy Consumption MWh 72718.79 91319.56

Total Gasoline Consumption MWh 981.00 1089.79

Total Diesel Consumption MWh 11075.85 17601.37

Total Natural Gas Consumption MWh 59038.33 69851.09

Total Propane Consumption MWh 1623.59 2777.31

Total Indirect Energy Consumption MWh 61234.97 64253.16

Total Green Electricity Consumption in Penglai Facility MWh 11181 0

Total Major Raw Materials Consumption 1000 tons 524.2 511.3

Raw Material Consumption per Million RMB of Revenue 1000 tons/ Million RMB Revenue 0.139 0.118

Total Water Consumption 1000 tons 199.8 184.5

Water Consumption per Million RMB of Revenue 1000 tons/ Million RMB Revenue 0.053 0.043

Where: Total Water Purchased 1000 tons 188.7 173.5

Where: Total Water Sourcing 1000 tons 11.1 11.0

Total General Waste Generation tons 18105.68 /

Total General Waste Disposal tons 18105.68 /

Total Hazardous Waste Generation tons 526.31 680.20

Total Hazardous Waste Disposal tons 526.31 661.53

Dajin Heavy Industry Co. Ltd | 2024 Sustainability Report 39Social

Quality Assurance 41 Dajin Heavy Industry has always taken product quality and service as its core pursuit

and has continuously strengthened the foundation of product management and is

Production Safety 43 committed to providing clients with high-quality product solutions on a continuous basis.Employee Rights and Benefits 46 In the production process the Company actively builds a sustainable supply chain system

adhering to the concept of mutual benefit and win-win with suppliers and promotes the

Responsibility for Good 50 realization of sustainable development goals. At the same time the Company pays great

attention to the legitimate rights and interests of each employee and occupational health

Social Key Performance 53

and safety continuously improves the employee training and development system actively

responds to the needs of employees and continues to optimize employee benefits to ensure

that each employee can enjoy a fair diverse inclusive and safe working environment.SDGs

Dajin Heavy Industry Co. Ltd | 2024 Sustainability Report 40About Us Sustainable Development Management Special Topic Environmental Social Governance Indicator Index

Quality Assurance Production Safety Employee Rights and Benefits Responsibility for Good Social Key Performance

Quality Assurance

Dajin Heavy Industry insists on quality as the foundation and Quality Management System

honesty as the basis and always guarantees high-quality products

and services in order to fulfill the promises to clients. The Company The Company has established a comprehensive quality management system and measures to continuously enhance product quality management

maintains friendly and close contact with clients in order to accurately ensuring that every stage of production meets expected standards while strengthening its core competitiveness.understand the cutting-edge needs of domestic and foreign clients for

products and services. By perfecting the quality management system

creating a high-standard quality control process and advanced

quality management concepts adhering to the excellent quality and Quality Control

continuously optimizing the services the Company steadily improves

Establish a comprehensive quality

its reputation and brand value. Penglai Facility process control system implementing

Clients First

Quality Control full-process monitoring covering

Consistently prioritize Clients raw material inspection in-process

requirements and expectations as Policy quality verification and finished

Strict Product Quality Control the foremost principle in quality product testing.management.Continuous Preliminary Planning

Quality Management Objectives Improvement

Aligned with the quality policy framework the Company sets annual QHSE Establish periodic Full Participation Data -driven Conduct early quality plan evaluation and on each project to ensure

management objectives across various functions levels and production process improvement Ensure full participation Utilize scientific data the quality management

processes considering workshop capacity product types and other mechanisms to elevate of our employees in analysis methodologies to meets the standards and

factors. These objectives cover HSE management facility procurement product and service quality management identify nonconformities requirements of clients

security technology and processes production qualification rates quality levels. and cultivate the quality and improvement to meet the needs and

awareness. opportunities. expectations of clients.instrument calibration human resources domestic and international

project management production planning equipment and facility

management and administrative oversight. This ensures that quality

Quality Management Policy of Penglai Facility

management objectives are practical measurable and aligned with the

Company’s overall development strategy.To achieve these objectives each department monitors tracks and

analyzes progress monthly. For any non-compliance corrective measures 01 02 03 04

are developed and overseen by the Quality Management Department System Building Monitoring and Evaluation Quality Training Process Control

which ensures improvement efforts across functional areas. The

effectiveness of these measures is verified to guarantee the successful Establish a robust quality Establish quality KPIs conduct Conduct regular quality Develop standardized work

implementation of the Company’s quality management goals. assurance system including periodic evaluations of KPI management training programs instructions and quality

internal and external audit attainment and implement to enhance employees' quality inspection plans to monitor

system optimization procedure corrective actions to address awareness and technical production processes

improvement process audit identified gaps. competencies. ensuring compliance with

and other links to ensure that quality standards.products and services achieve

the expected results.Quality Management Measures at Penglai Facility

Dajin Heavy Industry Co. Ltd | 2024 Sustainability Report 41About Us Sustainable Development Management Special Topic Environmental Social Governance Indicator Index

Quality Assurance Production Safety Employee Rights and Benefits Responsibility for Good Social Key Performance

As of the end of 2024 all the Company’s long-term production facilities have been certified to the ISO 9001 Quality Risk Prevention

quality management system ensuring consistent high-quality control on a global scale. Additionally according to

our business characteristics the Penglai Facility has obtained multiple certifications including EN1090 EX Class 4 The Company consistently integrates quality risk management throughout the entire product lifecycle. Using

steel structure manufacturing ISO3834 welding quality management system Japanese Industrial Standard ( JIS) systematic risk assessment methods the Company continuously identifies potential significant quality risks

certification-Class H Japanese ClassNK and DNV-GL-C401 These certifications further strengthen its quality prioritizing them based on their severity and probability of occurrence. In response to the identified risks

assurance capabilities during production. combined with the actual situation the Company implements proactive and effective preventive measures

to control and reduce product quality risks during actual operations. By summarizing and generalizing

In terms of employee training the Penglai Facility emphasizes professional skill development tailored project experiences over time the Company not only provides valuable insights for future projects but

to actual post requirements. In 2024 one QA employee obtained a BSI three-system internal auditor also successfully prevents the recurrence of quality risks improving project management efficiency and

certification four NDT employees obtained NDT competency certificates and high-precision equipment continuously enhancing its quality management system.operators in the QC section also successfully obtained equipment operation certifications. The growing

number of certified staff provides a strong guarantee for improving employees’ ability and meeting quality In 2024 based on project risk assessments the Penglai Facility thoroughly identified potential quality

requirements and further enhances the Company’s competitiveness in quality management. risks in the production and inspection processes. It revised and improved existing quality procedures and

the quality management system updating 67 documents and adding 45 new ones throughout the year.These updates further refined quality control details and ensured the real-time effectiveness of the quality

Quality Enhancement management system. Thanks to strict quality management measures and a continuous improvement control

mechanism the Penglai Facility encountered no major product quality risks in 2024 demonstrating the

The Company is dedicated to advancing research and enhancing its production processes continuously Company’s strength and reliability in quality control.driving technological innovation and quality improvement. Through ongoing optimization of production

techniques it has achieved significant progress in product quality. To ensure quality management is

integrated into every stage of production the Company actively organizes various training programs

including pre-project training handover training and independent quality training sessions. These initiatives

not only strengthen employees’ awareness of quality management but also enhance their professional skills The Penglai Facility encountered no major product quality risks in 2024

in quality control further driving continuous improvements in product quality. demonstrating the Company’s strength and reliability in quality control.Case Study

Penglai Facility Carries Out the Innovative Test of

“Welding Process without Plate Flipping and Back Gouging”The Penglai Facility actively promotes welding process innovationcarried out the “No Flip No BackGouging” innovation test. As offshore wind power projects grow in capacity and scale traditional

plate assembly methods in monopile foundation manufacturing face efficiency problems and

safety risks making it difficult to meet the industry’s high-quality development demands. To

address these challenges the Penglai Facility has optimized plate assembly and rolling techniques

through innovative research and development. While ensuring compliance with domestic and

international industry standards the facility successfully reduced two plate-flipping processes

significantly improving section manufacturing efficiency. Additionally by analyzing and calculating

the design of the single-V groove angle it optimized the groove area and effective welding area

after back gouging reducing residual welding stress and enhancing structural fatigue resistance

and design lifespan. These technical innovations not only lower production costs but also greatly

enhance efficiency ensuring high-quality and timely product delivery. This initiative further

supports the Company’s goal of cost reduction and efficiency improvement.Dajin Heavy Industry Co. Ltd | 2024 Sustainability Report 42About Us Sustainable Development Management Special Topic Environmental Social Governance Indicator Index

Quality Assurance Production Safety Employee Rights and Benefits Responsibility for Good Social Key Performance

Service Enhancement Production Safety

Dajin Heavy Industry always prioritizes client-centered development responding actively to client concerns with Dajin Heavy Industry prioritizes production safety as a fundamental pillar of enterprise development striving

high service standards and standardized processes. The Company continuously strengthens cooperation with to establish a scientific comprehensive safety management system and a strict safety control framework. The

both domestic and international clients delivering high-quality products and services to every client. Company ensures end-to-end safety coverage from raw material procurement to final production delivery

clearly defining safety responsibilities at all levels. Regular safety inspections and risk assessments are conducted

to maintain a secure and controlled production process. Additionally the Company emphasizes employee

Standardizing Service Mode safety awareness and emergency response preparedness. Regular safety training sessions and practical

emergency drills equip employees with the necessary skills to handle emergencies effectively. These initiatives

enhance workplace safety literacy improve on-site response capabilities and reinforce a strong safety culture.The Company has established a comprehensive pre-sale sale and after-sale service process. The By continuously refining its safety management practices Dajin Heavy Industry has built a solid foundation

headquarters' domestic marketing center overseas business division and project departments for stable production operations fostering a safer environment for employees clients and society. The

both domestically and internationally follow this process. Through initial research real-time Company’s commitment to safety excellence is reflected in its achievement of ISO 45001 Occupational Health

monitoring and regular communication the Company has created a clear complementary service and Safety Management Systems demonstrating its adherence to international safety standards and ongoing

management model that provides high-quality service to clients across various regions. improvements in safety management.Performance

Improving Service Process

In 2024 there were no major safety incidents at any of

Tailoring its approach to different types of overseas business the Company conducts market the Company's production facilities.research and risk assessment while regularly gathering client needs and feedback. The Company

prioritizes client concerns fostering strong partnerships with clients. For domestic operations

a well-established service process ensures prompt responses to client inquiries and needs.Additionally the Penglai Facility has developed tools like the Project Process Work Planning Chart

and After-sales Service Management Regulations to continually optimize service quality aligning

with the Company’s strategy and overall business objectives. Safety Management System

To enhance its safety management capabilities Dajin Heavy Industry’s headquarters and production

facilities have developed a comprehensive safety framework. This includes the Quality and Safety Manual

Protecting Client’s Rights HSE Risk Assessment Management Procedures HSE Violations and Dereliction of Duty Accountability

Standards and HSE Monthly Evaluation Form all aligned with the Law of the People’s Republic of China on

Occupational Disease Prevention and Control and other national regulations. The Company conducts annual

The Company values client feedback and protects their interests across all areas. By using tools

comprehensive risk assessments and formulates targeted risk management measures before the start of

like the Client Complaint Information Registration Form and Client Satisfaction Questionnaire

each project. Prior to project commencement risk identification is performed and corresponding mitigation

the Company regularly collects and analyzes feedback providing efficient high-quality

strategies are implemented. Timely risk training and supervision are carried out based on project-specific

responses. Clients' issues with products or services are promptly addressed and the Company

conditions. The Company has also established the “Top Ten Safety Red Lines” and a structured safety

maintains regular visits to better understand their needs and improve service quality. In 2024

assessment reward and penalty mechanism ensuring standardized and effective safety management

with perfect service mechanism and high quality client experience the Company earned

practices. Additionally production facilities have implemented systematic safety management systems

numerous honors from its partners such as “Class A Qualified Supplier” and “Most Potentialtailored to regional and operational characteristics. Continuous employee safety education and trainingPartner” further highlighting Dajin Heavy Industry’s excellence in client service.further reinforce workplace safety ensuring full-process risk control and ongoing improvements in the

Company’s overall safety management capabilities.Dajin Heavy Industry Co. Ltd | 2024 Sustainability Report 43About Us Sustainable Development Management Special Topic Environmental Social Governance Indicator Index

Quality Assurance Production Safety Employee Rights and Benefits Responsibility for Good Social Key Performance

Safety Management and Security

In 2024 Dajin Heavy Industry conducted a thorough investigation of potential safety risks across all

production processes. At the Penglai Facility a permit-based approval system for high-risk operations was Case Study

implemented in accordance with HSE system requirements. This involved issuing and approving 1085

safety work permits while enforcing strict risk control measures. Additionally safety risk identification and

assessment processes were upgraded 11 times leading to the improvement of 16 safety risks and their Dajin Heavy Industry’s TP-less Monopile Project Achieves 500000 Working

corresponding preventive measures. To further enhance safety management Penglai Facility carried out Hours with Zero LTI(Lost Time Injury)

over 240 specialized safety inspections identifying and rectifying 21850 safety violations. These proactive

measures significantly strengthened risk control and ensured a safe and stable production process. On August 20 2024 the TP-less monopile project for Denmark’s

Throughout 2024 the Company achieved approximately 3 million safe working hours across major projects Thor offshore wind farm constructed by Dajin Heavy Industry

including NOY monopile Thor monopile NSC monopile WAK monopile SGRE offshore tower and GE at its Penglai Facility successfully reached 500000 work hoursoffshore tower. All projects successfully met the safety targets of “zero casualties and zero environmental with zero LTI. To celebrate this outstanding achievementpollution”. Notably the owners of the NOY project in France and the Thor project in Denmark awarded the representatives from the overseas client visited the Penglai

Company commendation medals recognizing its outstanding safety management performance. Facility joining the project team to mark this significant

milestone and present an award to the Dajin Thor Project Team.This milestone not only highlights the Company’s continuous

breakthroughs in production projects but also demonstrates its

remarkable achievements in safety management high-quality 500000 Safe Working Hours

Install AEDs across Deploy dedicated emergency delivery and teamwork. Plaque Awarded by the Client

production facilities to ensure response vehicles equipped of Thor Project

prompt emergency response with essential medical

for cardiac incidents devices and staffed by

effectively reducing life- certified personnel to ensure

threatening risks associated immediate on-site emergency

with sudden cardiac arrest care and medical evacuation

among workforce. 01 03 thereby enhancing rescue

operational efficiency.Penglai Facility

Production Safety

Management

Measures

Deploy certified first-aid

personnel holding Red Cross

Establish a 24/7 emergency 02 04 First Responder credentials

hotline to ensure immediate with medical training to ensure

access to emergency accurate on-site assessment

response teams for and treatment guaranteeing

production personnel during effective emergency response

critical incidents at any time. operations.Thor Project Celebrates 500000 Safe Working Hours蓬莱基地生产安全保障措施

Dajin Heavy Industry Co. Ltd | 2024 Sustainability Report 44About Us Sustainable Development Management Special Topic Environmental Social Governance Indicator Index

Quality Assurance Production Safety Employee Rights and Benefits Responsibility for Good Social Key Performance

Case Study Case Study

Penglai Facility to Carry Out Special Rectification of Safety Work in 2024 Penglai Facility Launches Online HSE Observation Card Filling System

To further enhance the Company’s safe production environment and create a secure and healthy To further improve the on-site safety supervision and management and

working atmosphere for employees in 2024 Penglai Facility carried out special safety rectification to encourage employees to actively participate in safety management

work. By upgrading the electrical control systems of 12 self-produced welding platforms evaluating Penglai Facility launched an online HSE observation card filling system

and optimizing the position of platform lifting guide wheels setting up dedicated charging stations in 2024. Employees can quickly fill in the observation data by scanning

and standardizing the use of cylinder joints in the Structure I workshop the safety of production the QR code through WeChat on their cell phones which is easy and

operations has been effectively improved and various safety hazards have been successfully fast to operate. The facility regularly conducts statistical analysis of

eliminated to ensure the steady progress of production work. HSE observation data to identify weak points in safety management

and provide a strong reference for subsequent safety management

decisions. The system is in use not only reduces the cost of safety

management but also promotes the construction of the Company’s

safety management informatization and effectively improves the Penglai Facility HSE

Company’s safety management capability. Observation Card

Developing Employee Safety Awareness

The Company has always regarded Performance

safety culture as a key component of ESG

governance continuously enhancing

employee safety awareness and capability. In 2024，

Each production facility strictly adheres Penglai Facility places great emphasis on safety training and

to the Company’s safety philosophy strictly adheres to HSE management requirements. In 2024

and actively organizes diverse safety it conducted 467 entrance safety training sessions for new

activities and incentive programs such employees and off-site subcontractor personnel training a

total of 1641 people. Additionally it organized 62 sessions

as Production Safety Month milestone of daily safety training internal pre-service training and

rewards for safe working hours monthly special position assessments covering 2266 participants. Penglai Facility conducts safety incentives and awards Penglai Facility Conducts Safety Knowledge and Skills Training

awards for outstanding team leaders and The facility also held 162 specialized safety training sessions

safety officers and recognition for excellent training 2800 employees significantly enhancing their

safety observation cards. In addition safety awareness and operational skills.regular company-wide safety training To strengthen emergency response capabilities Penglai

sessions are conducted to reinforce Facility conducted 12 emergency drills with 280 participants

employees’ awareness of production safety improving employees' ability to handle emergency situations

and instill a strong safety-first mindset. and ensuring safe and controlled production operations.These initiatives effectively encourage Throughout the year Penglai Facility carried out 260 safety

proactive employee participation in inspections identified 21850 potential safety hazards and

safety management providing a solid successfully completed corrective actions further reinforcing

foundation for the Company’s sustainable workplace safety and risk prevention. Penglai Facility Conducts Safety Penglai Facility Conducts Falling Prevention Safety

development. Emergency Drill Experience Event

Dajin Heavy Industry Co. Ltd | 2024 Sustainability Report 45About Us Sustainable Development Management Special Topic Environmental Social Governance Indicator Index

Quality Assurance Production Safety Employee Rights and Benefits Responsibility for Good Social Key Performance

Employee Rights and Benefits

Dajin Heavy Industry has always adhered to the development concept of people-oriented and regarded employees as the core assets of enterprise development. The Company insists on equal employment protects all

rights and interests of employees pays attention to the health and safety of employees and effectively cares for employees. We are committed to creating a fair inclusive and safe working environment for our employees

and promoting the common growth of employees and the Company.Adherence to Equal Employment Protecting Employee Rights and Interests

The Company strictly complies with relevant domestic and international laws The Company attaches great importance to the protection of employees’ legitimate rights and interests by

and regulations in all its operational locations. It has developed the Employee continuously enhancing its compensation and benefits system. During traditional festivals and holidays the

Handbook and the Labor and Human Rights Management Mannual and adheres Distribution of Company regularly provides benefits to all employees effectively enhancing their sense of fulfillment and

to the principles of fairness impartiality and transparency to standardize its Management Staffs in Dajin happiness. Additionally the Company regularly offers professional health check-ups and occupational disease

recruitment policies and ensure the full protection of employees' rights. The Heavy Industry screenings with special focus on employees in hazardous positions to ensure their physical and mental health.Company provides equal employment opportunities to female employees To uphold fairness the Company has established a dedicated complaint hotline and mailbox for reporting

overseas employees ethnic minority employees and other special groups. The complaints allowing employees to report discrimination or unfair treatment verbally or in writing. The Audit

Company firmly opposes all forms of workplace discrimination and is committed Male Management Staff 295 and Supervision Center conducts thorough investigations and responds within 15 days. If employees are

to building a diverse and inclusive career development platform effectively Female Management Staff 76 dissatisfied with the outcome they may escalate their complaints to the labor department. Proven violations

safeguarding the equal rights and interests of all employees. result in legal penalties for responsible parties with timely feedback to affected employees. By maintaining

Performance open feedback channels and valuing employee input the Company continuously improves its management

practices safeguards employees’ legal rights and fosters a fair and harmonious working environment.In 2024 Employee

Representative Congress Instant Messaging Tools Internal Mail System Department Meeting

Dajin Heavy Industry had a total of 1964 employees Conven the first Employee Conduct real-time Conduct daily All departments conduct

Representative Congress communication communication via the regular meetings to

among which 388 were female employees during which the collaboration and file internal email system review work progress

accounting for approximately 19.9% Employee Representative sharing within the to exchange work discuss plans and

Congress Charter was Company through information provide address issues

reviewed and adopted enterprise platforms like updates and address effectively enhancing

1558 were male employees ensuring that employees WeCom and DingTalk. issues with colleagues internal communication

accounting for approximately 80.1% can fully participate in and supervisors. and collaboration.decision-making.Daijin Heavy Industry’s Internal Communication Mechanism

The workforce also includes 138 ethnic minority employees and 1 disabled employee

Performance

fully reflecting the Company’s commitment to diversity and inclusion in its recruitment and employment

management practices Dajin actively provides equal development opportunities and career platforms

for all employees.In 2024 The employee social insurance coverage rate is 99%

Dajin Heavy Industry Co. Ltd | 2024 Sustainability Report 46About Us Sustainable Development Management Special Topic Environmental Social Governance Indicator Index

Quality Assurance Production Safety Employee Rights and Benefits Responsibility for Good Social Key Performance

Enhancement of Employee Competencies

The Company has established a systematic training system based on the Employee Training Management Measures through internal training external

training and external boarding diversified training forms regularly provide professional technical and skills training for employees. The Company focuses

on the comprehensiveness and practicability of the training content to help employees continuously improve their knowledge reserve and skill level

enhance their career competitiveness and development potential and endeavor to provide employees with comprehensive career growth opportunities.Case Study

Penglai Facility Leverages “Employee Skills Matrix” for Customized Trainings The Fuxin Facility Conducts Professional Trainings to

Comprehensively Improve Skill Levels

To continuously enhance employee skill

levels the Penglai Facility utilizes the In order to improve employees’ business skills and personal qualities and strengthen the talent

Employee Skills Matrix as an assessment team the Fuxin Facility based on Employee Training Management Measures and Employee

tool aligning training programs with Skill Matrix Management System combined with the actual needs of each department and

job function requirements and survey employees’ skill short boards scientific planning and precise implementation of professional

data. This approach enables the training. The training content covers management knowledge and skills quality and technical

development and implementation of an process improvement occupational health and safety and company system etc. In 2024 the

annual targeted training plan to improve Fuxin Fcility has carried out 32 times of competence improvement training 9 times of job

employee competencies. In 2024 the standardization training 11 times of company system and staff career development training

base conducted 141 training sessions

Penglai Facility Conducts Project totaling 273.5 hours. Through scientific and systematic training it ensures that the training

totaling 360.5 training hours. Additionally Management Basic Knowledge Trainings content is closely integrated with business development employee growth and ESG objectives

to meet the increasing qualifications and continuously strengthens the talent team construction and effectively improves the quality

professional standards required by overseas clients the base supported 36 employees in obtaining and skill level of employees.external professional certification. This not only fulfilled client expectations but also enhanced

employees’ expertise and career development prospects. By strengthening its talent foundation

Penglai Facility is contributing to the Company’s global expansion and ESG capability development.In 2024 the Fuxin Fcility has carried out 32 times of competence improvement trainings

The Panjin Facility Conducts Systematic Trainings Throughout the Year 9 times of job standardization trainings

In 2024 the Panjin facility conducted a year-round systematic training program with the core

objectives of “consolidating the foundation improving skills and building an elite workforce”.The training focused on key areas such as corporate culture promotion safety production 11 times of company system and staff career development trainings

standards job skill enhancement and sustainable development concepts. The facility

implemented a training approach that combined theory with practice ensuring that employees

quickly integrated into the team and mastered job skills. This provided strong talent support

for the efficient commissioning and sustainable operation of the new base. A total of 8785 totaling 273.5 hours

training hours were completed throughout the year with a training pass rate of 100%.Dajin Heavy Industry Co. Ltd | 2024 Sustainability Report 47About Us Sustainable Development Management Special Topic Environmental Social Governance Indicator Index

Quality Assurance Production Safety Employee Rights and Benefits Responsibility for Good Social Key Performance

Dajin Heavy Industry Employee Career Development Paths

Performance-based Grade System---Performance as the core basis and evaluation criteria for promotion

Grade Design Philosophy

Management Professional Technology Operation Broaden job grading structure to expand promotion opportunities.Same position different levels. Same levels different salary. Salary ranges with overlapping levels.Senior Level Level 24-21 Chairman President Senior Vice President Vice President Clear and well-defined job levels to provide employees with transparent career goals.Middle-Senior Level Level 20-18 General Manager Deputy General Manager Promotion Rules

Candidates must not have any subpar performance ratings (annual or semi-annual) to qualify for

Middle Level Level 17-14 Director Manager Deputy Manager promotion or grade advancement.Employees with 'S' performance ratings are eligible for promotion the following year. If no higher

grade exists for their current position they shall receive a salary band adjustment to maintain

Junior Level Level 13-11 Supervisor Commissioner incentive effectiveness.Employees with 'A' performance ratings shall receive priority nomination for promotion/grade

Various Types of Positions with Different Sequence advancement subject to final qualification review.Employees with 'B' performance ratings may be nominated for promotion based on merit pending

comprehensive corporate evaluation.Diagram of Position Levels

Outstanding performers in virtual organizations may receive independent promotion/

advancement nominations through a dedicated evaluation channel.Dajin Heavy Industry Co. Ltd | 2024 Sustainability Report 48About Us Sustainable Development Management Special Topic Environmental Social Governance Indicator Index

Quality Assurance Production Safety Employee Rights and Benefits Responsibility for Good Social Key Performance

Caring for Employees

The Company is dedicated to fostering a “Happy Workplace” by providing a comfortable office environment scientifically reasonable task allocation and effective overtime management ensuring the physical and mental well-being of employees.Additionally the Company actively encourages employees to participate in team activities and interactive experiences fostering a positive and uplifting work atmosphere. To help employees better cope with work and life pressures the Company regularly

organizes mental health education and discussion activities to improve employees’ psychological resilience and stress-coping abilities. For female employees the Company strictly adheres to regulations on pregnancy maternity and breastfeeding leave

while also providing dedicated mother-and-baby rooms to protect the special rights and interests of female employees. Furthermore the Company conducts regular employee satisfaction surveys implements a rapid response mechanism to promptly

incorporate employee concerns into management decision-making. Through these actions the Company demonstrates its commitment to valuing employee and continuously enhancing their sense of belonging and well-being.Dajin Heavy Industry Co. Ltd | 2024 Sustainability Report 49About Us Sustainable Development Management Special Topic Environmental Social Governance Indicator Index

Quality Assurance Production Safety Employee Rights and Benefits Responsibility for Good Social Key Performance

Responsibility for Good

The Company is dedicated to building a sustainable supply chain by continuously supporting local Each of the Company’s production bases in line with national laws and regulations the Company's strategic

community development and fostering long-term stable partnerships with suppliers. Through these efforts deployments and regional operational characteristics has systematically developed standardized management

the Company actively promotes local economic growth encourages the sustainable development of its systems such as the “Procurement Control Procedure” and “Tender Management Measures”. These systems

partners and fulfills its corporate social responsibility. ensure that procurement activities comply with ESG governance requirements achieve transparency

standardization and traceability in the procurement process and ensure fairness justice and objectivity in

procurement decisions. The Company continues to enhance the compliance level and sustainable development

Promoting Sustainable Supply Chains capacity of supply chain management. In 2024 the Company received no customs penalties in its import and export business and the timeliness and accuracy of imports and exports were 100%.The Company has established a comprehensive supplier management system to strictly ensure that

suppliers meet high standards in environmental social and governance aspects. Through regular training

and assessment the sustainable development capability of suppliers is continuously improved. In 2024 the Company received no customs 100%

penalties in its import and export business the timeliness and Improving Supply Chain System Building accuracy of imports

and exports were

In compliance with relevant laws and regulations the Company has established a comprehensive supply chain

compliance framework. This includes the Code of Conduct for Supplier Procurement Personnel the Code of Conduct

for Bidding of the Supply Chain Management Center the Procurement Risk Compliance Management System of the

Supply Chain Management Center and the Assessment and Management Measures for Supply Chain Management

Center Operational Personnel. To strengthen governance the Company has developed a new compliance system Enhancing Supply Chain Management

implemented three lines of defense and refined a three-tier management structure. By systematically integrating

process optimization comprehensive risk management regulatory development personnel training and risk The Company conducts out strict risk assessment of suppliers and continuously monitors the qualification rate of

awareness the Company has built a robust internal control and compliance system for its supply chain. With a product quality timely delivery rate price level and service quality of suppliers according to the Management Measures

commitment to “Standardized practices coordinated operations transparency integrity and efficiency” the Company for Supplier Performance Evaluation. We conduct supplier performance evaluation once every six months fill out and

strives to create a responsible and well-governed supply chain. These efforts drive continuous improvement in approve the semi-annual performance evaluation form of each supplier and according to the evaluation results we

compliance operational excellence and sustainable supply chain development. will conduct four levels of hierarchical management for suppliers namely “A B C D” and eliminate those suppliers who

don’t meet the requirements so as to comprehensively improve the comprehensive ability of suppliers further control

Develop the Wind Power Materials Supplier Directory Marine Equipment Supplier Directory and the risk of supply chain operation and make every effort to build an efficient and sustainable supply chain. In order

Wind Energy Logistics Provider Directory to establish a categorized supplier database effectively to further strengthen supply chain management the Company’s production facilities have formulated a scientific

identify supply gaps and formulate targeted development plans. subcontractor assessment and review mechanism based on project characteristics and operational requirements.Through the implementation of hierarchical classification management the establishment of a dynamic assessment

01 Refinement of supplier process and evaluation system and the strict implementation of the exit mechanism for unqualified subcontractors and other

management the implementation of key measures the Company has effectively guaranteed the quality control and progress management of the project

Refinement projects urgent projects risk supplier SQE

construction and ensured the high-quality and sustainable development of the project.of supplier management identification of production

process delivery quality and business In 2024 the Company upgraded the “Supplier Development and Access Management Measures”. Adhering to the

Standardize qualification management management risks; through outsourcing parts process principles of “fairness justice and transparency” the Company focuses on three core supplier categories: wind power

for all supplier categories by 03 02 management problem analysis the materials marine equipment and logistics transportation. Through rigorous document review and on-site inspection establishing a supplier onboarding development of corrective and preventive and by referencing the OECD “Guidelines for Multinational Enterprises on Responsible Business Conduct” the

framework to ensure only compliant measures tracking and verification and

supplieres gain access. Company gradually improves the content of supply chain due diligence. The Company is building an access system that landing and effectively enhance the covers ESG risk assessments across the entire lifecycle with a particular focus on key indicators such as environmental

supplier delivery qualification rate.compliance records (including the “Self-Declaration of No Use of Conflict Minerals”) carbon emission intensity and

Dajin Heavy Industry Supplier Management Measures resource recycling rates ensuring that environmental risks within the supply chain are controllable.Dajin Heavy Industry Co. Ltd | 2024 Sustainability Report 50About Us Sustainable Development Management Special Topic Environmental Social Governance Indicator Index

Quality Assurance Production Safety Employee Rights and Benefits Responsibility for Good Social Key Performance

01-Establish a supplier access mechanism In 2024 the Company focused on ESG governance clarifying the key responsibilities of each position in

supply chain development and setting measurable sustainable performance indicators. Through a company-

Formulate strict supplier access standards to ensure that all suppliers undergo qualification review before wide sustainable development capability assessment the Company accurately identified personnel with

cooperation; skill gaps and implemented targeted ESG-specific training. This approach promotes team sustainable

Set up the supplier information database record the performance reputation and compliance of suppliers. transformation through compliance assessments and capability reshaping. The Penglai Facility with the

Green Supply Chain Management Measures as its core framework carried out green supply chain awareness

initiatives for all employees. Through internal specialized training the procurement team's professional

02-Establish a supplier inspection and integrity campaign mechanism capabilities were enhanced. At the same time the facility provided training resources to suppliers

established a learning progress tracking and performance evaluation mechanism and promoted continuous

Formulate the supplier inspection mechanism clarify the inspection standards procedures archiving and

filing regulations. improvement of the overall ESG performance of the supply chain. Through these measures the Penglai

Facility has provided solid support for achieving its green transformation goals ensuring the sustainability

In the process of business investigation and negotiation the supervision and personnel shall clarify to the

supplier the procurement requirements and the serious consequences of violating the relevant integrity and green development of its supply chain.agreement and keep the recording and video of the process.

03-Implement supplier training and awareness programs

Green Supply Chain Management Measures

Regularly publicize the companys clean culture and values to suppliers.Make and distribute the Transparent Dajin Handbook to ensure that suppliers understand the Company’s

anti-corruption policies.

04-Strengthen contract management

Clarify the integrity clause in the contract. Internal Learning External Supervision Platform Control

A multi-department contract performance supervision mechanism shall be established to ensure the

transparency and fairness of the contract execution process.

05-Redeling the reporting and feedback mechanism

Encourage internal employees and external partners to report unhealthy practices and open up the Conduct specialized Deliver Green Supply Chain The procurement e-platform

reporting channels for the whole process. training for employees on Management Measures and requires suppliers to submit

Conduct timely investigation into the reported information and take corresponding measures for the the Green Supply Chain Self-Declaration with conflict documentation including

violations. Management Measures . minerals to 19 suppliers and ISO14000 Environmental

require suppliers to conduct Management System

internal training. certification during the

06-Promote cost reduction and efficiency enhancement supplier qualification phase.

Through technical communication flow and cooperative innovation with suppliers to achieve cost

reduction and efficiency enhancement.Dajin Heavy Industry Supplier Management Measures Dajin Heavy Industry Green Supply Chain Management Measures

Dajin Heavy Industry Co. Ltd | 2024 Sustainability Report 51About Us Sustainable Development Management Special Topic Environmental Social Governance Indicator Index

Quality Assurance Production Safety Employee Rights and Benefits Responsibility for Good Social Key Performance

Contribution to Community

Development

Dajin Heavy Industry actively participates in local community building

and development supporting education and charitable causes and

is committed to promoting the comprehensive progress of society.The Penglai Facility has signed a university-enterprise cooperation

agreement with local universities becoming an educational practice

base for these institutions. Both parties adhere to the principles of

complementary advantages resource sharing mutual benefits and

common development. This collaboration model provides a platform

for interaction and mutual growth between the facility and the

universities further promoting the development of local education.At the same time in the fall of 2024 the Panjin Facility also partnered

with Dalian Ocean University and Dalian Maritime University to launch

campus recruitment positions offering more job opportunities to fresh

graduates. This initiative fosters connections and training opportunities

between university students and the Company. Looking ahead to 2025

Dajin Heavy Industry plans to establish specialized campus recruitment

positions in departments such as technology quality and production

along with corresponding training programs. This will further deepen the

cooperation with local universities in the areas of technology education Dajin Heavy Industry Organized the “Student Workplace Experience Day” on August 25 2024

and talent development contributing to both local education and the

sustainable development of the Company.Dajin Heavy Industry Co. Ltd | 2024 Sustainability Report 52About Us Sustainable Development Management Special Topic Environmental Social Governance Indicator Index

Quality Assurance Production Safety Employee Rights and Benefits Responsibility for Good Social Key Performance

Social Key Performance

Indicators Unit 2024 2023

Total number of employees person(s) 1946 1640

Total number of female employees person(s) 388 331

Total number of male employees person(s) 1558 1309

Total number of full-time employees person(s) 1936 1640

Total number of part-time employees person(s) 10 0

Total number of employees from ethnic minorities person(s) 138 114

Total number of employees from vulnerable groups person(s) 1 0

Total number of new employees person(s) 660 524

Number of work-related injuries recognized by the local Human Resources

person(s) 11 7

and Social Security Bureau

Number of work-related fatalities person(s) 0 0

Total work-related injury rate % 0 0

Number of personal injury accidents per 1000 tons of production time(s)/per 1000 tons of production 0.025 0.023

Total work hours lost due to work-related injuries hour(s) 5366 1900

Total employee turnover person(s) 591 380

Total employee turnover rate % 32.96% 25.20%

Total employee training hours hour(s) 20851 15662

Total number of suppliers* case(s) 1127 134

*Note: This year the scope of supplier statistics has significantly expanded compared to last year. Last year's scope covered key collaborative suppliers while this year it includes

the addition of the Panjin Facility and extends to all suppliers involved in transactions during 2024.Dajin Heavy Industry Co. Ltd | 2024 Sustainability Report 53Governance

Responsible Governance 55 Dajin Heavy Industry upholds the management philosophy of “Compliance and Integrity”

continuously refining its corporate governance strengthening internal controls and

Compliance 57 ensuring all business activities comply with laws regulations and industry standards.Business Ethics 58 Striving to safeguard stakeholders’ rights and interests the Company takes integrity

transparency and standardization as its core values integrating them into daily operations

Information Security 62 to achieve a win - win situation for all parties. The Company is committed to fostering a

corporate culture of high-standard one that is deeply rooted in strong business ethics and

Governance Key Performance 63

compliance This culture serves as a driving force for Dajin Heavy Industry enabling it to

pursue long-term sustainable growth. This approach not only enhances the Company’s

industry reputation but also provides reliable protection for stakeholders laying a solid

foundation for its stable development in both domestic and international markets.SDGs

Dajin Heavy Industry Co. Ltd | 2024 Sustainability Report 54About Us Sustainable Development Management Special Topic Environmental Social Governance Indicator Index

Responsible Governance Compliance Business Ethics Information Security Governance Key Performance

Responsible Governance

Dajin Heavy Industry continuously promotes the modernization of Performance

its corporate governance system and governance capabilities. The

Company comprehensively strengthens scientific governance and

standardized operations conscientiously discharges its information In 2024

disclosure obligations innovatively conducts investor relations

management work and actively defends investors' legitimate

rights and interests. Dajin Heavy Industry dedicated to building a

Board Composition

regulated and transparent listed company adheres to the tenets of In 2024 the Company’s Board of Directors comprised 7 members including 2 female directors.standardization and transparency.Corporate Governance Structure Board Meetings In 2024 the Company held a total of 5 Board meetings and 9 specialized committee meetings

ensuring scientific and efficient decision-making.Dajin Heavy Industry strictly adheres to the Company Law of the

People's Republic of China the Securities Law of the People's

Republic of China and other relevant laws and regulations as well

as governance guidelines such as the Code of Governance for Revision and Formulation In 2024 the Company revised and formulated 28 new policies further improving its internal

Listed Companies in China and the Rules for Listing of Stocks on the of Company Policies management system and continuously optimizing its corporate governance structure.Shenzhen Stock Exchange. The Company has established a robust

governance structure to ensure the standardized operation of theCompany. The Company follows an operation mechanism with “ThreeBoards and One Management” comprising the General Meeting of

Shareholders the Board of Directors the Supervisory Committee

and senior management. Each entity operates within its designated

role and exercises its allocated power ensuring effective checks

and balances among decision-making supervision and operation General Meeting of Shareholders

management providing scientific governance guarantee for the Strategy and Sustainable Development Committee

Company.This system enhances oversight fosters accountability and

supports the Company's stable and sustainable growth. Supervisory Committee

The Board of Directors oversees four specialized committees: the Audit Committee

Strategy and Sustainability Development Committee Audit Committee Board of Directors

Nomination Committee and Remuneration and Evaluation Committee.These committees assist the Board of Directors in key governance areas Nomination Committee

including strategic planning audit oversight executive appointments

and performance evaluation ensuring efficiency and transparency in

Remuneration and

corporate operations. Additionally the Company prioritizes diversity in Evaluation Committee

gender and backgrounds within its Board of Directors and management Senior Management

team. This diverse composition strengthens the comprehensiveness of

decision-making enhances risk management capabilities and ensures

scientific and reasonable decision-making and well-informed adaptive

strategies in a dynamic market environment. Dajin Heavy Industry Management Structure

Dajin Heavy Industry Co. Ltd | 2024 Sustainability Report 55About Us Sustainable Development Management Special Topic Environmental Social Governance Indicator Index

Responsible Governance Compliance Business Ethics Information Security Governance Key Performance

Protecting Shareholders' Rights and Interests

Dajin Heavy Industry has always adhered to the principle of legal compliance and continuously refining its investor

relations management framework. in accordance with relevant laws and regulations such as the Company Law of the Performance

People’s Republic of China the Securities Law of the People’s Republic of China and the Rules Governing the Listing

of Stocks on the Shenzhen Stock Exchange formulated and revised the Measures for the Management of Investor

Relations. We adhere to the principles of full and compliant information disclosure equal opportunities for investors In 2024

and honesty and trustworthiness. We are committed to providing high-quality services to investors respecting their

A total cash dividend of million RMB was distributed

rights and interests and driving the maximization of both corporate value and shareholder returns. 116

The Company strictly complies with the requirements of laws and regulations such as the Securities Law of

the People’s Republic of China the Rules for General Meetings of Shareholders of Listed Companies and

other relevant laws and regulations standardizing the procedures for convening holding and voting at the The Company held 3 general meetings of shareholders

general meetings of shareholders. This ensures that all shareholders enjoy equal status and rights while

fulfilling their corresponding obligations. Through these measures we safeguard shareholders’ legitimate

rights and interests and ensure the standardization and transparency of corporate governance.Information Disclosure

Dajin Heavy Industry strictly adheres the Rules for the Listing of Stocks on the Shenzhen Stock Exchange and the Performance

Self-Regulatory Guidelines No.1 for Companies Listed on the Shenzhen Stock Exchange – Standardized Operation

of Main Board Listed Companies and other relevant laws administrative regulations and regulatory guidelines.The Company diligently fulfills its information disclosure obligations in accordance with its Information Disclosure

Management System ensuring that all disclosed information is true accurate timely and complete. In 2024

To keep investors and the public well-informed the Company disseminates relevant information through multiple channels Responded to interactive e-platform 63 times

including annual reports quarterly reports and other regular disclosures as well as social media platforms such as WeChat.These efforts have significantly expanded the reach of the Company's information and enhanced its accessibility enabling

stakeholders to stay up to date with the Company’s developments in a timely and comprehensive manner. held 3 performance briefings issued 3 long charts of performance

At the same time we remain committed to improving information transparency by providing investors with

more diverse and convenient access to Company-related information. These initiatives by strengthening

communication and fostering trust between the Company its shareholders and the public continuously

enhance corporate transparency and engagement.Protection of Creditors' Rights and Interests

Dajin Heavy Industry is committed to safeguarding not only shareholders’ rights and interests but also the

legitimate rights of creditors. During the reporting period the Company strictly fulfilled its debt repayment

obligations ensuring that all loans were repaid on time with no overdue payments. Upholding the principles

of integrity and responsible financial management the Company strives to maintain strong trust-based

relationships with creditors. Through prudent fund management and robust risk control measures the Company

safeguard creditors’ interests and thereby ensures financial stability and transparency. These efforts reinforce

the Company’s long-term financial health and its reputation as a reliable and trustworthy business partner.Dajin Heavy Industry Co. Ltd | 2024 Sustainability Report 56About Us Sustainable Development Management Special Topic Environmental Social Governance Indicator Index

Responsible Governance Compliance Business Ethics Information Security Governance Key Performance

Compliance

Dajin Heavy Industry is dedicated to fostering a corporate culture rooted in high standards strong business ethics and strict compliance. By continuously enhancing management practices improving institutional

construction and standardizing operations the Company establishes clear codes of conduct and compliance guidelines for employees managers and business partners and guides them to abide by business ethics and

compliance requirements. This in turn guarantees the long-term stable development of the Company.Compliance System Building Internal Control and Risk Management

Dajin Heavy Industry places great emphasis on building a robust legal compliance system. In pursuit of this objective Dajin Heavy Industry adheres to making efforts in both internal control and risk prevention which mutually promote

the Company has established the Dajin Heavy Industry Legal Work Management System and the Dajin Heavy Industry each other and continuously promotes the comprehensive risk management work to a deeper level to ensure that

Legal Dispute Management System and carried out a structured division of responsibilities based on the unique risk management is highly integrated with the business. The Company focuses on improving its ability to prevent and

characteristics of each business sector and the expertise of legal professionals. Through the continuous construction respond to risks. In four key areas namely the establishment of procurement bidding projects bidding supervision

and continuous improvement of this system the Company strengthens its comprehensive compliance management procurement payment and tracking and inventory management the Company implements real-time internal control

framework ensuring that all business operations are conducted in a standardized manner within the legal framework. supervision which effectively ensures the compliance of the Company’s operations and the level of risk control.This proactive approach minimizes legal risks and supports the Company’s long-term sustainable development. The Company emphasizes the initiative of compliance and risk control management and focuses on pre-event

prevention. In daily business by combining diversified means such as process and email review consultation and

answers meeting participation negotiation support legal popularization and due diligence investigation etc. the

Law review ledger Intellectual property Equity investment ledger Company effectively integrates risk identification assessment and prevention and control into every business link to

rights ledger

For the contracts agreements Establish an equity investment ledger ensure that the compliance review is comprehensive without omission and to minimize potential risks.letters letters of guarantee and Establish an intellectual property within the scope of the group and In terms of dispute resolution the Company always adheres to safeguarding its rights in accordance with the law

other legal documents applied ledger within the scope of the update it regularly. Strengthen the strives to reduce economic losses and firmly protects the Company’s legitimate rights and interests. At the same time

for legal review by each center group and update it regularly. dynamic supervision of matters related

/ department they shall be to changes in equity investments. in the face of the complexity of cross-border business the Company actively introduces external legal resources hires Strengthen the dynamic

registered and managed (time supervision of matters related Provide timely risk warnings according a third-party law firm to provide professional guidance and uses local lawyers at the location of overseas projects

matters belonging department to trademarks and patents to to the development and changes of to conduct localized risk analysis. The Company continuously pays attention to changes in the legal environment

docking person revision prevent potential risks. the company's business to prevent strengthens legal compliance management at home and abroad and ensures that comprehensive risk prevention and

frequency etc.). potential risks. control measures are effectively implemented.Internal Control Function Positioning: Driver of process Internal Control Objectives: Facilitate all departments to

Standardization of Contracts/Legal Standardized investment management and rule establishment Risk identifier and aggregator progressively establish and continuously improve business

Documents and Regular Updates

Formulate reference texts for resolutions of the Enabler of risk management capability enhancement for management rules Prevent operational issues caused by

Wind power project EPC contract shareholders' meeting board of directors and board of business units/functions. absent or inadequate management rules.Confidentiality agreement in Both Chinese and supervisors and usage instructions and strengthen post- Overall Strategy:

English versions investment compliance management. Distinguish between

Joint venture company joint venture platform wholly-owned companies and joint venture companies and Externally: Provide

Explain the working method and value of internal control explicitly

company cooperation agreement formulate resolutions of the shareholders' meeting board clear value and Identify the key points of the business side and leverage the business positive guidance

Articles of association applicable to different of directors and board of supervisors articles of association through work value actual cases and phased overall evaluation

situations (three copies) amendments to the articles of association etc. under

Internally: Provide clear Clear internal value orientation aiming to improve the coverage and Relevant templates related to the contract different circumstances including company establishment integrity of rules

modification and termination capital increase personnel changes changes in business guidance to form a resultant force

New energy outsourcing technical service contract scope/registered address and company cancellation. Clear internal and external output caliber and quality

Vacation shipping contract Formulate operation guidelines and key points for matters

MWS outsourcing agreement bracket binding design such as industrial and commercial registration change Clear scatter and system promotion standardsStandardization

outsourcing agreement record-filing and cancellation. Clear the standard results and template applications

Dajin Heavy Industry Compliance Management Measures Dajin Heavy Industry Internal Control Program

Dajin Heavy Industry Co. Ltd | 2024 Sustainability Report 57

Capability ManagementAbout Us Sustainable Development Management Special Topic Environmental Social Governance Indicator Index

Responsible Governance Compliance Business Ethics Information Security Governance Key Performance

Compliance Culture Training Business Ethics

Dajin Heavy Industry continuously fosters a robust corporate compliance culture and emphasizes the compliance Dajin Heavy Industry strictly complies with laws and regulations such as the Anti-Monopoly Law of the People’s

awareness and sense of responsibility of every employee. The Company regularly organizes all employees to Republic of China the Anti-Unfair Competition Law of the People’s Republic of China and the Interim Provisions

participate in compliance awareness training to ensure that everyone understands and abides by the Company’s on Prohibiting Commercial Bribery Behaviors. It has formulated relevant business ethics systems including the

compliance policies as well as the requirements of laws and regulations. At the same time for key departments Provisions on the Incorrupt Practice of Management Personnel and Personnel in Economically Sensitive Positions

and employees involved in significant compliance risks special compliance training is arranged specifically to help the Whistleblower Reward System and the Control Procedures and Preventive Measures for Fraud Prevention.them have an in-depth understanding of and master the compliance requirements and risk control measures The Company continuously improves its business ethics management system clarifies the professional ethics

both within and outside the industry. Through these training programs Dajin Heavy Industry continuously norms for employees and fosters an honest and clean work style.strengthens employees' identification with the compliance culture ensuring that the concept of compliance takes

root deeply within the Company and becomes an integral part of every employee's daily work. The construction

of this compliance culture not only promotes the standardized operation of the Company but also lays a solid Business Ethics Management

foundation for its long-term and stable development.Dajin Heavy Industry adheres to integrating integrity into the core values of its corporate culture and has established

Performance a business ethics management system that covers the entire process from pre-event during-event to post-event.The Company has issued the Provisions on the Incorrupt Practice of Management Personnel and Personnel in

Economically Sensitive Positions and has implemented a series of systems such as whistleblower protection.The Audit and Supervision Center performs its duties in multiple links. Based on the problems or hidden risks that

In 2024 occur during the bidding or process execution it puts forward reasonable suggestions continuously supervises the

Penglai Facility conducted 2 compliance trainings which is 1200 procurement process improves the system investigates fraudulent behaviors and rewards whistleblowers.person-time At the same time for employees in sensitive positions and senior executives the Company has issued the

Provisions on the Incorrupt Practice of Management Personnel and Personnel in Economically Sensitive Positions

which standardize the behavioral norms of employees in the fields of personnel finance materials production

supply sales etc. during the operation and management process or the power operation process. In terms of

conflict of interest management the Company strengthens the supervision of the kinship between employees

and suppliers effectively ensuring the construction of the Company’s business ethics and compliant operation.Dajin Heavy Industry Co. Ltd | 2024 Sustainability Report 58About Us Sustainable Development Management Special Topic Environmental Social Governance Indicator Index

Responsible Governance Compliance Business Ethics Information Security Governance Key Performance

Business Ethics Management Process

Case Study

Post-event

Pre-event During the event Dajin Heavy Industry Conducted Training on Preventing Occupational Crimes

During the project bidding The contracts of winning In collaboration with the In July 2024 Dajin Heavy Industry invited the Penglai District People’s Procuratorate to conduct

process the Integrity Agreement suppliers are reviewed to ensure Financial Management Center/ a training session on preventing occupational crimes for all employees. The training aimed to

is issued to regulate the behavior consistency with the bidding Facility Finance the actual

of suppliers emphasizing Dajin documents (including technical performance supply conditions enhance the Group's internal control mechanisms for preventing detecting and halting criminal

Heavy Industry's commitment documents). The supply of and payment schedules of activities and to further optimize the law-based operational environment. The Penglai District

to integrity and the penalties for products is monitored in real- suppliers are supervised and People’s Procuratorate systematically explained criminal cases involving enterprises focusing on

bribery by suppliers. The Audit time to prevent situations where the reasonableness of payment five key risk areas: embezzlement and bribery business operations financing taxation and safety.and Supervision Center exercise the goods do not match the amounts is reviewed. Regular They analyzed typical cases to illustrate the risks. Through this training employees increased their

its monitoring function during description or are of inferior audits both special and routine awareness of occupational crime risks and strengthened their sense of responsibility for compliant

the bidding process overseeing quality. Additionally the delivery are conducted for each base or

supplier evaluations and bids in schedule is closely monitored functional center. Based on audit operations. This session not only helped improve the Group’s ability to prevent and control criminal

real-time. and if there are delays findings corrective actions are risks but also reinforced the foundation of the Company's legal framework providing a solid

deductions and follow-ups are required from the relevant bases guarantee for the Company’s long-term healthy and compliant operations.implemented. or centers.The Penglai Facility Participated in

Occupational Crime Prevention Training

During the bidding and contract signing process Dajin Heavy Industry requires bidders and winning The Xinganmeng Facility Participated in

suppliers to sign the “Integrity Agreement”. This agreement clearly restricts the integrity responsibilities Occupational Crime Prevention Training

of both Party A and Party B and stipulates the consequences that should be borne in case of violation of

the integrity agreement. The Company publicly announces the channels and methods for reporting and

complaining throughout the bidding process and encourages suppliers to file complaints and reports in

case of improper behaviors such as collusion in bidding between Party A and Party B. This practice not only

ensures the fairness of the bidding process but also strengthens the crackdown on unethical behaviors.Fostering Integrity Awareness

The Company continues to enhance employees’ awareness of business ethics and compliance and for key

business and key position holders the Company has carried out specialized integrity and dedication training

and interactive integrity publicity in multiple aspects to promote integrity and diligence and dedication

of employees to help them better perform their duties to safeguard the Company's clean business

The Zhangjiakou Facility Participated in

environment and to further enhance the level of business operation and management. Occupational Crime Prevention Training

Dajin Heavy Industry Co. Ltd | 2024 Sustainability Report 59About Us Sustainable Development Management Special Topic Environmental Social Governance Indicator Index

Responsible Governance Compliance Business Ethics Information Security Governance Key Performance案例

Reporting and Handling

Dajin Heavy Industry Organizes a Visit to an Education Base To enhance compliance management and business ethics the Company has established

various public reporting channels including email phone and WeChat to ensure that

In August 2024 Dajin Heavy Industry organized a visit to a warning education base for all senior stakeholders can conveniently and anonymously submit reports. Upon receiving a report

executives and employees in sensitive positions. Through on-site visits real case analyses the Company promptly forms a dedicated investigation team to investigate and gather

and scenario reenactments participants gained a firsthand understanding of the serious evidence related to the issue ensuring that each report is thoroughly addressed and

harm that illegal and unethical behaviors can cause to individuals families and society. The responded to. Dajin Heavy Industry places great importance on protecting the legitimate

activity especially showcased vivid cases of how certain individuals strayed from their original rights and interests of whistleblowers. We maintain strict confidentiality regarding both

values and fell into misconduct and it illustrated their lives under strict confinement marked the whistleblower’s identity and the reported information. The Company's reporting

by profound remorse and transformation. This powerful warning education left a strong confidentiality policy is communicated to safeguard the privacy of the whistleblower.intellectual and emotional impact on all participants. Through direct experience and reflection Additionally we have created the Integrity Reporting Platform (https://www.dajin.cn/index/

everyone gained a clearer understanding of the importance of compliant operations and the index/reportlang=CN) on the Company’s official website providing an open and transparent

severe consequences of illegal and unethical actions. The event reinforced the idea of always channel for all stakeholders and further promoting transparency in corporate governance.keeping a “red line” in mind and reminded executives and employees in sensitive positions In 2024 the Company formally established the reporting channel and implemented the

to never cross this line. It further strengthened the Company’s cultural development in areas Whistleblower Reward System. Based on the information provided by whistleblowers the

such as business ethics legal compliance and personal professional integrity. The activity not Company conducts independent investigations while ensuring their safety through strict

only heightened employee awareness but also ensured that the Company’s governance system protection measures. After the investigation and verification process whistleblowers are

and business ethics are collectively adhered to and implemented by all. rewarded based on the circumstances. This initiative encourages employees and relevant

parties to actively participate in supervision fostering a healthy transparent and compliant

working environment.Conflict of Interest Management

Dajin Heavy Industry places significant emphasis on conflict-of-interest management and

requires all employees to proactively disclose any actual or potential conflicts of interest.The Company mandates that the human resources departments at each facility and

division report on employees and their kinship while also monitoring the kinship between

employee and suppliers in real-time to ensure effective management and control of relevant

information. To further ensure the success of this management policy the Company has

established a robust internal monitoring system that continuously tracks and evaluates the

handling process and outcomes of any conflicts of interest. This measure ensures that the

Company’s operations always stay on the track of compliance and fairness laying a solid

foundation for practicing ESG concepts and achieving sustainable development.Dajin Heavy Industry Co. Ltd | 2024 Sustainability Report 60About Us Sustainable Development Management Special Topic Environmental Social Governance Indicator Index

Responsible Governance Compliance Business Ethics Information Security Governance Key Performance

Supplier Integrity Management

In 2024 the Company launched “Operation Seal the Source” a special program focused on integrity

management within the supply chain. This initiative aims to strengthen the supply chain management system Communicate with Partners

by fostering synergy between the monitoring department and various business departments. The program

enhances supply chain transparency and efficiency by embedding an integrity monitoring mechanism Before establishing a business relationship with partners clearly inform the Company of the integrity

throughout the entire supplier process including entry evaluation cooperation and exit. Through this regulations and require the other party to comply to ensure that both parties remain transparent and fair in

their business contacts.mechanism the Company promotes the “Transparent Dajin” procurement culture to suppliers clarifies

integrity and compliance requirements and transforms integrity management into a key driver for supply

chain optimization. This approach injects new momentum into the Company’s sustainable development Strengthen the Sense of Responsibility

efforts. Ultimately it ensures that the Company’s relationship with suppliers is more open transparent and Strengthen the sense of responsibility within the organization so that every employee can understand that honesty

aligned with high-standard business ethics and compliance management. and self-discipline is not only the companys regulations but also the embodiment of personal professional ethics.Dajin Heavy Industry Launches “Operation Seal the Source” Special Program for Supply Chain Integrity Management

Continuous Improvement

Formulate Clear Regulations on Integrity business Hospitality According to the supervision and audit results constantly optimize the foreign affairs move the process and

integrity regulations to ensure the effectiveness and adaptability of the system.Develop a detailed business hospitality protocol prior to hosting and forming the inspection team.Training and Campaigning

Performance

Provide training on integrity regulations to all employees involved in external affairs activities emphasizing the

importance of honesty and self-discipline.The Signing of Integrity Agreement:

Establish a Supervision Mechanism The Company has signed the terms of the Integrity Agreement with a total of 919 suppliers

Establish an independent supervision group responsible for monitoring the business hospitality process to

ensure the transparency and fairness of foreign activities. with a signing rate of 75% Among them all first-tier suppliers have signed

Clearly Reject the Conflict of Interests

the agreement with a signing rate of

In the process of external affairs activities clearly refuse any form of interests delivery gifts or improper 100%

hospitality and explain to the integrity of the Company and individual.Recording and Reporting The signing of environmental clauses:

Record all activities and expenses in the external affairs activities including time place participants and The Company has signed environmental-related clauses with 79 suppliers to ensure that

expenses etc. and report regularly to the superior or supervision department for review.suppliers comply with the Company’s requirements on environmental protection during cooperation

Reshape the Whistleblowing Channel

Provide anonymous whistleblowing channels for employees and partners encourage them to report any behavior The signing of Labor Rights and Ethical Requirements Clauses:

that violates the integrity regulations and ensure that problems can be discovered and handled in a timely manner.The Company has signed labor rights and ethical requirements clauses with a total of 88

Periodic Audits contract manufacturing suppliers to ensure that the suppliers strictly comply with labor rights

Regular audit of the external affairs activities inspecting if violations exist to ensure compliance of the activities. protection and ethical norms in the production process

Dajin Heavy Industry Co. Ltd | 2024 Sustainability Report 61About Us Sustainable Development Management Special Topic Environmental Social Governance Indicator Index

Responsible Governance Compliance Business Ethics Information Security Governance Key Performance

Information Security

We establish an information security management system by referring to the international standard ISO 27001 and assign a professional cybersecurity team to enhance the capability of information security protection.Meanwhile the Company values employees’ awareness of information security and continuously conducts information security training programs. With a complete information security management and protection

mechanism and strict professional ethics norms for employees we can fundamentally safeguard the Company’s information security and related rights and interests.Improving Information Security Management System Data Backup and Recovery: Strict implementation of system backup regulations regular full backups real-time

incremental backups and offline backups of all systems and regular system and data recovery drills to improve

Dajin Heavy Industry places great emphasis on the security and protection of client information strictly adhering system availability and safeguard data security.to relevant laws and regulations regarding information protection and network security to ensure the effective Employee Training and Awareness Enhancement: Regularly provide employees with information security training to

safeguarding of information security in its operations. The Company has established a dedicated network information enhance their security awareness and operational skills. Through simulated phishing attacks and other means we help employees

security management team to enhance its information security capabilities. The Company has also revised and identify potential network security threats and take correct protective measures to reduce security risks caused by human errors.rigorously implemented its Information Security Management System and other related documents clearly defining Emergency Response Plan: We have developed a detailed emergency response plan for unavoidable security

its information security strategy. This strategy covers key areas such as data protection access control and network incidents. In the event of a data breach or other security incident the Company can act quickly to limit the scope of

security. These measures have allowed the Company to continually strengthen its information security infrastructure damage and provide timely notification to ensure that the security incident is handled appropriately.to address the increasingly complex network environment and ensure the protection of the Company’s information

security and related rights and interests. Additionally the Company conducts ongoing information security training

for its employees to improve overall awareness of information security. This ensures employees adhere to security

management protocols in their daily work enhances their awareness of information security protection and builds a Enhancing Information Security Capabilities

stronger defense against potential threats to the Company’s information security.To address the evolving cybersecurity threats and challenges the Company continued to strengthen its information

Information Security Committee security management capabilities in 2024. The Company implemented a range of effective measures covering

network security access control system and application security as well as terminal and device management.Information Management Department These efforts were aimed at building a robust information security technology infrastructure significantly reducing

information security risks and enhancing overall protection.Dajin Heavy Industry Enhances Information Security Measures

Beijing Penglai Fuxin Zhangjiakou Panjin Xing'anmeng Yangjiang

IT IT IT IT IT IT IT

Network Security Enhancement: Enhanced the security of network communications and applications

by adjusting firewall policies intrusion detection/defense systems and strengthening access filtering to

effectively stop the intrusion of external threats.Dajin Heavy Industry Information Security Management System

Data Protection Strategy: The Company implemented stricter data encryption backup and recovery

Construction of Security Management System: We have established a comprehensive information security strategies to ensure the confidentiality and integrity of the Company's internal and client data; regularly

management system and through regular review and upgrading of the system we ensure that all potential checks the access rights of each system and constantly adjusts the access strategy to strictly limit

security vulnerabilities can be detected and remedied on time thus effectively reducing information security risks. unauthorized access and ensure data security.IT Infrastructure Management: Through the implementation of a series of measures such as regular System and Application Security Strengthening: Strengthened system and application security through

inspections equipment upgrades patch updates virus protection and network monitoring we ensure that regular vulnerability scanning log monitoring and other operations timely detection and patching of

the IT infrastructure is protected from internal and external threats and that the system operates stably. potential security holes to ensure system stability and security.Application system Authority Control: A strict system access control policy is implemented for the Terminal Equipment Management: Mandatory installed antivirus software on all terminal equipment

application to ensure that only authorized personnel can access and operate the information within the scope strengthening virus protection and threat detection capabilities to ensure that the Company’s equipment is

of authority to effectively prevent the risk of data leakage. free from viruses malware and other security threats.Dajin Heavy Industry Co. Ltd | 2024 Sustainability Report 62About Us Sustainable Development Management Special Topic Environmental Social Governance Indicator Index

Responsible Governance Compliance Business Ethics Information Security Governance Key Performance

Governance Key Performance

Information Security Training Indicators Unit 2024 2023

Dajin Heavy Industry places great emphasis on employee information

security awareness ensuring that all employees understand and Number of Annual Shareholder Meetings Held time(s) 3 5

adhere to information security policies. To achieve this the Company

plans and implements a series of information security educational

and practical activities aimed at enhancing employees' security Total Number of Management Employees person(s) 371 155

awareness and prevention capabilities.Number of Male Management Employees person(s) 295 126

Regular

Information Number of Female Management Employees person(s) 76 29

Security Training

Total Number of Board Members person(s) 7 7

The Company continues to offer ongoing information security training Number of Female Board Members person(s) 2 2

covering fundamental security knowledge data protection techniques

and network threat identification. This training helps employees

Number of Board and Committee Meetings Held time(s) 14 13

understand and apply methods for preventing security threats.Number of Business Performance Briefings Held time(s) 3 /

Total Amount of Dividends Distributed million RMB 116.07 17.86

Security Tests and

Simulations

Percentage of Employees Participating In Business Ethics Training % 100 62

Number of Business Ethics-Related Complaints case(s) 4 0

In addition to regular training various departments also conduct

occasional security tests such as simulated phishing email attacks Number of Corruption and Bribery Incidents case(s) 7 1

to help employees identify potential network security threats.These tests aim to deepen their awareness of prevention in real-life

scenarios thereby reducing human-related security risks and further Number of Information Security-Related Incidents case(s) 0 0

strengthening overall information security protection.Dajin Heavy Industry Co. Ltd | 2024 Sustainability Report 63About Us Sustainable Development Management Special Topic Environmental Social Governance Indicator Index

Indicator Index

SZSE Guidelines for SZSE Guidelines for

Catalogs GRI Standards the Preparation of Catalogs GRI Standards the Preparation of

Sustainability Reports Sustainability Reports

About the Report 2-1/2-2/2-3 / Quality Assurance 417-1 Article 47

403-1/403-2/403-3/

Letter from the Chairman 2-1/2-22/201-1/203-1/203-2 / Product Safety 403-4/403-5/403-6/ Article 50

403-7/403-8/403-9/403-10

About Us 2-1/1201-1/203-2 / Employee Rights and 401-1/401-2/401-3/ Article 49

Social Benefits 404-1/405-1/405-2 Article 50

2-14/2-16/2-22/2-26/2-29/ Article 51 Article 38

Key Performance in Sustainability

2-30/3-1/3-2/3-3 Article 53 Commitment to Article 40

Responsibility and 308-1/308-2/414-1/414-2

Goodness Article 44

Sustainable Development Management 2-6 / Article 45

Penglai Facility Practices Article 15 Social Key Performance / /

SBTi Targets and Leads

305-1/305-2/305-3/305-5/307-1 Articles 21 to 28

the Way to Low-Carbon

Transition Article 35 2-9/2-12/2-25/2-27/Special Responsible Governance Article 12

topics 201-1/205-2/205-3Green Steel Strategy

A New Chapter Article 20

302-52-9/2-12/2-25/2-27/

of Sustainable Article 28 Compliance Article 54

Manufacturing 205-2

Article 20 Article 52

2-15/403-2/403-6/

Responding to Climate Article 22 Governance Business Ethics Article 55

302-1/302-2/302-5/305-5406-1/414-1

Change Article 23 Article 56

Article 27

Information Security 418-1 Article 48

Article 32

301-1/301-2/302-1/302-4/302-5/

Environmental Strengthening Article 33 Governance Key 303-1/303-3/304-2/305-1/305-2/ / /

Environmental Article 35 performance

Management 305-4/305-5/305-7/306-1/ Article 36

306-2/306-3/306-4/306-5

Article 37 Indicators Index / Article 57

Appendix

Environmental Key

//

Performance Data Feedback Form / /

Dajin Heavy Industry Co. Ltd | 2024 Sustainability Report 64About Us Sustainable Development Management Special Topic Environmental Social Governance Indicator Index

Feedback Form

Hi thank you for reading this report!

This is the second sustainability report released by Dajin Heavy Industry. We sincerely look forward to your

feedback to continuously improve the level of disclosure of information on the Company’s sustainable

development so that the report can truly play a role in communicating with stakeholders and at the same

time more effectively promote sustainable development management and practice.

1. What is your overall assessment of Dajin Heavy Industry’s fulfillment of sustainable development 5. What is your overall assessment of this report

□ Very Good □ Good □ Fair □ Poor □ Very Good □ Good □ Fair □ Poor

2. How do you think Dajin Heavy Industry is doing in corporate responsibility 6. Do you find the organization and layout of this report easy to read

□ Very Good □ Good □ Fair □ Poor □ Very Good □ Good □ Fair □ Poor

3. How well do you think Dajin Heavy Industry is doing in stakeholder communication 7. Do you have any suggestions for Dajin Heavy Industry to fulfill the sustainability and this report

□ Very Good □ Good □ Fair □ Poor

4. What is your opinion on Dajin Heavy Industry’s fulfillment of sustainability and this report

□ Very Good □ Good □ Fair □ Poor

Dajin Heavy Industry Co. Ltd | 2024 Sustainability Report 65