1CONTENTS

About This Report 01

Message from the 03

Chairman

About ABA Chemicals 05

Company profile 05

Corporate culture 05 Technological Nourishing Hearts to

2025 in review 07 Excellence and Superior Forge Dreams and

Quality Lead the Future Advance Together

ESG Management 09

Adhering to innovation-driven development 17 Protecting employee rights and interests 59

ESG governance 09

Strictly controlling quality and safety 21 Growth with employee 63

Stakeholder communication 11

Creating high-quality services 27 Building a solid safety defense line 65

Materiality analysis 13 Building a resilient supply chain 31 Fulfilling social responsibility 72

Table of Key 89

Performance Indicators

Index 95

Reader Feedback Form 96

Green Development and Sound Governance for

Enduring Protection of Sustainable Steady

Nature Growth

Environmental compliance management 37 Strengthening corporate governanc 77

Addressing climate change 41 Compliant and prudent operations 81

Improving resource efficiency 46 Adherence to business ethics 84

Strict control of pollution emissions 51 Optimizing the “Intelligent Manufacturing” system 87

Protecting biodiversity 56ABA Chemicals Corporation 2025 Environmental Social and Corporate Governance (ESG) Report About This Report

About This Report Abbreviation Full Company Name

This report is the third annual Environmental Social and Corporate Governance (ESG) Report (hereinafter Yihui Biotechnology Huzhou Yihui Biotechnology Co. Ltd.referred to as “this Report” ) issued by ABA Chemicals Corporation and its affiliated companies. It aims to

Electroxolve Technology Electroxolve Technology Co. Ltd.explain the Company's ESG-related systems practices and performance and to objectively disclose the

Company's sustainability management and outcomes in response to the concerns of stakeholders and the Aierwang Henan Aierwang New Energy Environmental Co. Ltd.general public.Malta Base The base includes Amino Chemicals Limited and A2W Pharma Ltd.Reporting Scope

This Report covers ABA Chemicals Corporation and its subsidiaries consistent with the scope of the Reporting Period

consolidated financial statements in the Company's annual financial report. For ease of presentation and This Report covers the period from January 1 2025 to December 31 2025 (hereinafter referred to as the

reading in this report “ABA Chemicals Corporation” is referred to as “ABA Chemicals” the “Company” “reporting period” or “the year” ). To enhance comparability and forward-looking value certain information

or “we” . Subsidiaries include: Shanghai ABA Chemicals Co. Ltd. ABA Chemicals (Nantong) Limited ABA may retrospectively reference 2024 or earlier years or be extended to 2026 where appropriate.(Shaoxing) Pharmaceuticals Limited ABA Jiangsu Jiannong Agrochemicals Co. Ltd. ABA（Gansu）Lanwo

Technology Limited ABA（Gansu）Lannong Technology Limited ABA (Lanzhou) Fine Chemicals Limited ABA Basis of Preparation

(Lanzhou) Pharmaceutical Creation Technology Limited Shanghai Puyi Chemical Technology Co. Ltd. Huzhou

Yihui Biotechnology Co. Ltd. Electroxolve Technology Co. Ltd. Henan Aierwang New Energy Environmental This report has been prepared in accordance with the relevant requirements of the Self-Regulatory Guidelines

Co. Ltd. Pingdingshan Aierwang Environmental Technology Co. Ltd. Hong Kong ABA Chemicals Corporation No. 17 for Companies Listed on Shenzhen Stock Exchange — Sustainability Report (For Trial Implementation)

Limited Amino Chemicals Limited ABINO PHARM INC and A2W Pharma Ltd. issued by the Shenzhen Stock Exchange. This report also draws reference from the Self-Regulatory Guidelines

No. 3 for Companies Listed on Shenzhen Stock Exchange — Sustainability Reporting Preparation issued

by the Shenzhen Stock Exchange ChiNext Market the GRI Standards (2021 version) issued by the Global

Abbreviations and Corresponding Full Names in this Report Sustainability Standards Board (GSSB) the United Nations Sustainable Development Goals (SDGs) the

Standards for Corporate Sustainability Disclosure – Basic Standards (Trial Implementation) issued by the

Abbreviation Full Company Name Ministry of Finance of China as well as the relevant requirements of mainstream domestic and international

ESG ratings.ABA Chemicals / the Company /

we/ Taicang Base ABA Chemicals Corporation

Source of Information

Nantong ABA / Nantong Base ABA Chemicals (Nantong) Limited

The information and data disclosed in this Report are derived from official documents and statistical records

Jiannong Plant Protection / Binhai ABA Jiangsu Jiannong Agrochemicals Co. Ltd. of ABA Chemicals. Financial data and indicators presented herein have been audited by the third-party Base

accounting firm.The R&D and manufacturing base invested and constructed by

the Company in Lanzhou Gansu including four enterprises: ABA

Lanzhou Base （Gansu）Lanwo Technology Limited ABA（Gansu）Lannong Review and Approval

Technology Limited ABA (Lanzhou) Fine Chemicals Limited ABA

(Lanzhou) Pharmaceutical Creation Technology Limited. This Report has been reviewed and confirmed by the Company's management submitted by the Strategy and

Decision-Making Committee of the Board and approved by the Board of Directors.Lanwo Technology ABA（Gansu）Lanwo Technology Limited

Lanzhou ABA Fine Chemicals ABA (Lanzhou) Fine Chemicals Limited Access to the Report

Lanzhou ABA Pharmaceutical To view or download this report online please visit:

Creation ABA (Lanzhou) Pharmaceutical Creation Technology Limited *ABA Chemicals Corporation official website (https://www.abachem.com)

Shaoxing ABA / Shangyu Base ABA Chemicals (Shaoxing) Limited *Shenzhen Stock Exchange official website (https://www.szse.cn)

*CNINFO (http://www.cninfo.com.cn)

Puyi Chemical Shanghai Puyi Chemical Technology Co. Ltd.Yihui Biotechnology Huzhou Yihui Biotechnology Co. Ltd.

01 02ABA Chemicals Corporation 2025 Environmental Social and Corporate Governance (ESG) Report Message from the Chairman

Message from the Chairman

international perspective. Meanwhile through regular Embracing Innovation and Consolidating the Value

job skills training the promotion of green processes Foundation with Business Restructuring

Currently as the global climate crisis intertwines and the communication of advanced safety concepts Looking ahead to the first year of the 15th Five-Year Plan

with the restructuring of industrial chains sustainable we continuously strengthen the ESG awareness and the Company takes “restructuring” as the main theme of itsdevelopment has transformed from an “optional professional capabilities of all employees. Today this business development strategy systematically advancing thequestion” for companies into a “compulsory question” talent pool forged through specialized training and daily coordinated upgrade of products assets and the organization

experience is active in key positions across the Company's

crucial to their survival and competitiveness. As a to build a more resilient efficient and sustainable business

domestic and overseas bases and R&D centers and has system and create long-term stable and predictable value

fine chemical force deeply engaged in the innovative become the backbone driving the green transition and returns for shareholders.pharmaceutical and agrochemical CDMO sector ABA high-quality development of ABA Chemicals.We adhere to the “dual-wheel drive” of our dual core

Chemicals must not only provide high-quality products We adhere to the “people-oriented” development businesses of pharmaceuticals and agrochemicals

but also become an engine for green transformation philosophy continuously improve the occupational health and through product restructuring we accelerate the

a benchmark for safeguarding health and a pioneer in and safety management system and create a secure and transition toward innovative pharmaceuticals and innovative

value creation. In 2025 the Company deeply integrated healthy working environment with room for growth. The agrochemicals with high technical barriers high environmental

Company implements a “management + professional”

the ESG philosophy using practical action as its boat standards and high added value. The layout of new products dual-channel development mechanism supporting not only considers market potential but also takes green

and innovation as its oars and striving to write a employees in realizing their value across diverse career processes carbon footprint and customers' ESG needs as

magnificent chapter for ABA Chemicals amidst the paths. Meanwhile we focus on stimulating organizational prerequisites ensuring that growth is rooted in responsibility

tides of the times. vitality promoting knowledge flow and capability reuse and sustainability. The concurrent asset restructuring on the

through methods such as cadre rotation and cross- one hand implements intelligent and green transformations

base exchanges. We also actively fulfill our community at mature bases such as Taicang Base and Nantong Base

responsibilities participating in public welfare activities to enhance the efficiency of existing assets; on the other

such as emergency assistance and educational support

Leading the Path of Development with Excellence in and ensure that every product carries our commitment of hand it constructs new bases such as Lanzhou base and

allowing the fruits of corporate development to benefit a

Technology and the Principle of Quality First responsibility to customers and society. Shangyu Base with high standards creating high-quality

broader community. It is precisely this respect and trust production capacity carriers that integrate low-carbon

Innovation is the inherent gene of ABA Chemicals and

Prioritizing Ecology and Protecting Clear Waters and Blue for people that unites a team that highly identifies with the manufacturing digital management and flexible supply. Multi-

moreover our core competitiveness for the future. As a

Skies with Green Development as the Foundation Company's mission and is full of resilience and warmth. base synergy and the continuity of new and old growth drivers

Company with distinct international characteristics we

are well aware that the expectations of leading global Green development is not an optional question but a

will significantly enhance risk resilience and capital return

Reshaping Governance Consolidating the Foundation

mandatory one crucial to corporate survival and global efficiency.customers for green safe and efficient solutions are and Facilitating Steady and Long-Term Development

profoundly reshaping the value standards of the industrial competitiveness. As early as 2019 ABA Chemicals became Looking ahead although the direction of the green transition Good corporate governance is the institutional safeguard

chain. To this end the Company firmly embeds ESG one of the first private enterprises in China to introduce and technological transformation of the global industrial for ESG practices. The Board of Directors and the Strategy

concepts into the core of our R&D strategy continuously DuPont Sustainable Solutions (DSS) consolidating the chain is clear the path is complex and full of challenges. Committee attach great importance to relevant ESG issues

increases investment in cutting-edge green technologies foundation of safety and environmental management through ABA Chemicals is deeply aware that past efforts have laid an and incorporate them into the Company's medium- and

such as synthetic biology and microchannel continuous the implementation of systematic projects. At present the initial foundation for us but there is still a long way to go to long-term strategic planning.flow and actively promotes the commercialization of Company is comprehensively advancing the development of a truly achieve sustainable and high-quality development. The

modular and atom-economic processes. To improve low-carbon ecosystem covering the entire value chain which

We not only meet the minimum regulatory requirements Company will always uphold the mission of "to deliver high-

R&D efficiency we are prudently exploring the auxiliary is not only a response to external requirements but also our

for compliant operations and transparent disclosure but quality products and treatment solutions to customers in

strategic choice to proactively lead the green transformation also proactively benchmark against international best application of digital tools such as artificial intelligence in the life sciences sector create value and bring benefits to

stages including molecular design and reaction condition of the industry. During the year after the Company joined the

practices—releasing our second ESG report during the employees shareholders and society" assessing risks with a

Science Based Targets initiative (SBTi) the 10-year science- reporting period and continuously advancing SBTi target optimization with the aim of shortening the R&D cycle and prudent attitude deepening innovation with firm investment

reducing trial-and-error costs. based emission reduction pathway we set was officially

setting all of which reflect our commitment as an industry advancing green transformation with solid actions and

th

approved. Meanwhile the DSS Phase II project launched at pioneer. Currently the Company is taking the 15 Five- fostering team synergy with sincere care. Only by maintaining

We not only focus on technological breakthroughs

the Lanzhou Base is precisely an important practice for us to Year Plan as an opportunity to systematically advance the reverence and doing our utmost can we advance steadily in an

themselves but also place greater emphasis on their

build future-oriented high-quality sustainable and green new modernization of governance capabilities: strengthening environment full of uncertainties ultimately contributing the

transformation into sustainable value in real-world

momentum. the supervisory functions of independent directors tangible reliable and responsible strength of ABA Chemicals

scenarios. For teams that successfully develop green improving anti-fraud and business ethics mechanisms to human life and health as well as crop safety.technology products the Company establishes practical Building a Prosperous Ecosystem through a Talent- and deepening digital transformation to empower lean

incentive mechanisms to encourage the dual leap of Oriented Approach and Shared Purpose operations. Crucially we are integrating ESG requirements

innovation achievements into environmental benefits and

Talent is the primary resource for sustainable development. into business processes such as procurement production

commercial value. Meanwhile we benchmark against

Over the years through international programs such as and research and development driving the transition from Cai Tong

international world-class quality systems embed the

DuPont Sustainable Solutions (DSS) we have systematically “compliance-driven” to “value-driven” . Chairman of ABA Chemicals Corporation

“zero-defect” concept throughout the entire chain

cultivated a core sustainable development team with an

03 04ABA Chemicals Corporation 2025 Environmental Social and Corporate Governance (ESG) Report About ABA Chemicals

About ABA Chemicals “2+X” Development Strategy

ABA Chemicals focuses intensively on its dual core businesses of innovative agrochemicals and innovative

Company profile pharmaceutical intermediates. By leveraging its technological advantages supply chain strengths and

production management expertise the Company consistently cultivates new growth opportunities to adapt

ABA Chemicals was founded in July 2003 and went public in September 2011 listing on the ChiNext market to the evolving global landscape and market demands.of the Shenzhen Stock Exchange. The Company specializes in CDMO for innovative pharmaceuticals and

innovative agrochemicals alongside the development and production of biological enzyme products and

Agrochemical The Company is deeply engaged in the two core business areas of

nutritional health products and strategically invests in fields such as environmental protection and new sector CDMO for innovative agrochemicals and innovative pharmaceuticals

materials. Currently ABA Chemicals operates eight major production bases and four R&D centers. The 2 Pharmaceutical and consistently promotes the expansion and advancement of these

Company's initial production base was established in Taicang City Jiangsu Province. Over time the Company sector segments to enhance the core competitiveness of its main operations.expanded its operations by investing in the construction of Nantong Base acquiring the Binhai Base in

Yancheng City and establishing the Malta Base in Europe and Shangyu Base in Zhejiang Province. Through Building on its existing diversified business portfolio the Company

industrial fund collaborations the Company has also set up the Xiangyang Base in Hubei Province and Fuxin Biological Enzymes actively explores opportunities for vertical integration along the industry

Base in Liaoning Province. In 2022 the Company began developing the Lanzhou Base in Gansu Province Healthcare Products chain while focusing on horizontal expansion into life sciences health

Environmental

which serves as a foundation for expansion and production transformation. In addition the Company has X Protection New and other fine chemical sub-sectors. It also proactively plans for the

established a core R&D structure comprising the Shanghai Zhangjiang Innovation Center Puyi Chemical Yihui Materials etc. sustainable utilization of biological waste to adapt to the evolving

Biotechnology and Lanzhou ABA Pharmaceutical Creation. international environment and market demands.ABA Chemicals is a leading provider of high-end product customization services in China's pharmaceutical

and agrochemical intermediate industry. The Company holds strong competitive advantages in the domestic Mature and Leading R&D System

fine chemical sector has been consistently ranked among the Top 50 Fine Chemical Enterprises in China The Company has established four R&D centers which focus on agrochemicals pharmaceuticals synthetic

for eight consecutive yearsand has been named among the China Top 10 Fine Chemical Innovation and biology and fine chemical pilot testing respectively to provide industry customers with efficient and high-

Development Companies for four consecutive years. quality customized process improvement and product R&D services.Production System of ABA Intelligent Manufacturing

Corporate culture The Company's production network consists of six core production bases supplemented by two collaborative

ones. ABA Chemicals operates multiple thousand-ton-level intelligent production lines capable of handling

Enterprise vision volumes from kilogram to thousand-ton scales offering efficient and high-quality customized R&D small-

scale trials pilot tests and commercial production technologies and services to both domestic and

We are committed to becoming a global excellent supplier of health products and services. international customers.Enterprise mission Management philosophy

*To deliver high-quality products and treatment solutions to customers in the life sciences sector *Cherish resources and protect the environment;

*Create value and bring benefits to employees shareholders and society *Use high-quality resources and manpower rely on professional processes and engineering

technologies and provide customers with higher-quality products in a more cost-effective

environmentally friendly and safe manner.Corporate culture

Core values

Cornerstone Loyalty and diligence Soul Win-win cooperation and efficiency

Core Unlocking creativity Concept Excellence and vision Sustainable health Stable and professionally Continuous improvement of

business motivated team the EHS (Environment Health

and Safety) System

05 06ABA Chemicals Corporation 2025 Environmental Social and Corporate Governance (ESG) Report About ABA Chemicals

2025 in review Corporate Honors

Key performance

Environmental dimensionRanked 30th among China's Top Selected as “a Case ofEnvironmental protection Environmental protection investment Renewable energy 100 Fine Chemicals in 2025 Outstanding Sustainable

investment as a percentage of operating revenue consumption Selected as one of the Top Development Practices by Listed

3485.08 2.67 47.94 Ten Innovative Development Companies in 2025” by the China % 10000kWh Enterprises in China's Fine Association for Public Companies

ten thousand RMB Chemical Industry for 2025

VOCs decreased by Comprehensive utilization rate of Comprehensive utilization

non-hazardous waste rate of hazardous waste

90.81 % YoY 98 % 27.69 %

Selected for the 2025

Wind China List of Top 100 Wind ESG

Listed Companies for ESG Best rating upgraded to

Social Dimension Practices AA

(Small and Mid-Cap)

R&D investment R&D investment as a percentage Volume of

of operating revenue product recalls

11673.85

ten thousand RMB 8.93 % 0 tons

Average training hours Occupational disease incidence Work-related fatality rate

per employee rate Awarded the title of Winner of the

0 Outstanding Responsible Care Gold Award at the 8th 45.63 % Practitioner in China (Shanghai) International hours 0 % China's Pesticide Industry for Invention and Innovation

2025 Exhibition

Governance dimension

Meetings of the Board of proposals reviewed Percentage of Ad hoc announcements

Directors held and approved independent directors from the Company

9 44 33.3 % 144 The Company was named tothe “Top 100 List of ESG Listed Awarded theCompanies for ESG Performance” “Golden Quality Science andby Securities Times and Technology Innovation Award”

its Chairman Cai Tong was presented byNumber of investor questions Number of litigation or arbitration Coverage rate of special simultaneously named “ESG Shanghai Securities Newsanswered via cninfo.com cases arising from compliance issues audits on business ethics Pioneer of the Year”

1720100%

07 08ABA Chemicals Corporation 2025 Environmental Social and Corporate Governance (ESG) Report ESG Management

ESG Management ESG Governance Structure of ABA Chemicals

We continuously improve the ESG governance structure and management mechanism maintaining regular *Review and approve ESG-related proposals submitted by the Strategy and

communication and cooperation with stakeholders. Through materiality analysis we ensure the Company effectively

Board of Decision-Making Committee;

monitors and addresses its sustainable development risks and opportunities achieving long-term sustainable *Guide and review the Company's ESG policies strategies and targets;

Directors

development. *Oversee the implementation of the Company's ESG strategy;

*Approve the Company's ESG report.Decision-

ESG governance making *Conduct research and make recommendations on the Company's ESG

level Strategy and the Science Based Targets initiative (SBTi) and other related matters;

The Company has established a multi-level ESG governance structure consisting of the Board of Directors the Decision- *Study and make recommendations on the Company's ESG-related

Strategy and Decision-Making Committee the ESG Executive Working Group and various executive departments medium- and long-term development plans business objectives Making

systematically managing and overseeing sustainability-related risks and opportunities by integrating ESG factors into development guidelines major strategic investments etc.strategic decision-making investment reviews and senior executive appraisals. Committee *Review the Company's ESG report and other related reports on

significant matters.ESG Governance framework

*Formulate the Company's ESG goals and promote the implementation of

The Company attaches great importance to ESG and sustainable development and has established a comprehensive the annual plan;ESG Executive

ESG governance structure and management system to carry out ESG management and supervision in a standardized Management *Establish a management structure and institutional processes for ESG

and efficient manner. The Board of Directors is responsible for reviewing and guiding the Company's ESG strategies level Working Group matters to standardize the Company's ESG work;

and policies monitoring ESG targets and progress and closely integrating our business with sustainable development. *Provide support for the specific implementation of ESG work.The Strategy and Decision-Making Committee under the Board of Directors subject to compliance with the Articles

of Association and other relevant laws and regulations is responsible for conducting feasibility studies and making

recommendations on the Company's long-term development strategic plans major strategic investments and

ESG matters reporting its work to the Board of Directors and being accountable to the Board of Directors. At the Execution All subsidiaries *Fully implement ESG-related work across all subsidiaries and departments.management level the Company has gathered experts in product technology quality control safety and environment level anddepartments

human resources and corporate operations to form the ESG Executive Working Group. We incorporate ESG strategies

goals and work requirements into relevant management systems with each subsidiary and department optimizing its

scope of responsibilities and work content to form an ESG governance structure consisting of the decision-making

level management level and execution level gradually integrating ESG into daily work.Access to ESG information

The Strategy and Decision-Making Committee of the Board of Directors holds at least one regular meeting every

Professional skills and development year to review the Company's annual ESG report conduct research on relevant strategic issues and report to the

Board of Directors after forming recommendations. Major ESG matters are after being reviewed by the Committee

submitted to the Board of Directors for decision-making. The ESG Executive Working Group reports on the

The members of the Company's Board of Directors possess diverse professional backgrounds in chemistry progress of ESG-related work to the members of the Strategy and Decision-Making Committee from time to time.pharmacy economics law and accounting enabling them to conduct in-depth reviews of ESG issues from In addition independent directors review and supervise material ESG matters through specialized communication

multiple dimensions such as macroeconomics compliance governance financial internal control and green mechanisms or at relevant meetings and provide professional opinions to the Board of Directors. Based on the above

technology. Strategy and Decision-Making Committee: As a special committee established under the Board of arrangements the Company has established a multi-level and regular mechanism for ESG information acquisition

Directors its composition is conducive to effectively integrating ESG objectives into the Company's long-term and deliberation that connects the specialized committees and the Board of Directors integrating regular reviews

strategic development. The Strategy and Decision-Making Committee regularly reviews ESG-related matters and special deliberations.discusses key issues on a periodic basis and oversees the implementation progress to ensure the fulfillment of its

duties. Leveraging the collaborative operations of various specialized committees and the professional advice of

independent directors the Company has established an ESG governance structure with capabilities for strategic Integrating ESG factors into strategic decision-making

integration risk identification and continuous improvement and continuously enhances governance effectiveness by

constantly refining the top-level design. When reviewing related-party transactions and major investment matters involving significant ESG risks the Board of

The Company plans to integrate ESG key performance indicators into the annual performance appraisal system Directors takes ESG risks as an important consideration and approval from a majority of the independent directors

for senior executives by setting clear ESG targets weights and evaluation criteria ensuring that ESG performance is required. In terms of policy formulation the Board of Directors institutionalizes ESG-related requirements by

becomes an important basis for senior executive compensation incentives. formulating special policies or revising internal policies ensuring their deep integration into the Company's strategic

planning major decision-making and management systems. Meanwhile within its scope of responsibilities the

During the reporting period the Company held a review meeting on the Science Based Targets (SBTi) and the Strategy and Decision-Making Committee incorporates ESG factors into its research and recommendations on

construction of the internal control management system. Meanwhile we provided ESG training to key employees to the Company's medium- and long-term development plans business objectives and development guidelines and

enhance their ability to understand and apply ESG policy trends. systematically considers ESG impacts when evaluating projects such as major investments and capital operations.

09 10ABA Chemicals Corporation 2025 Environmental Social and Corporate Governance (ESG) Report ESG Management

Stakeholder communication Case ABA Chemicals Exhibits at the 8th China International Import Expo

The Company fully respects and safeguards the legitimate rights and interests of its stakeholders. It actively In November 2025 ABA Chemicals actively participated in the 8th China International Import Expo

collaborates with stakeholders and strengthens communication and engagement to understand and (CIIE). Its subsidiary brand Wholly You took the stage at the CIIE for the fourth consecutive year

promptly respond to their concerns and expectations. These efforts provide important insights for identifying engaging in in-depth discussions with numerous partners during the expo. Concurrently at the China-

sustainability opportunities enhancing the Company's sustainability capabilities and improving the quality of Mato Grosso Agricultural Cooperation Exchange Meeting a side event of the CIIE we have established

information disclosure. the intention to cooperate on crop protection solutions with our partners shared insights on green

agricultural technologies and reaffirmed its commitment to building sustainable agriculture.Key stakeholders Expectations and concerns Communication channels

*Legal operations

*Responding to national *Accepting supervision

development strategies *Periodic disclosure

Government and regulatory

*Creating job opportunities *Non-periodic reporting

bodies

*Driving regional economic *Participation in relevant meetings

development *Instant messaging software

*Environmental protection

*Periodic/Non-periodic information

disclosure

*Stable and sound operation

*General Meeting of Shareholders

Shareholders & investors *Return on investment

*Investor engagement activities

*Transparent information disclosure

*Investor hotline and email

*Roadshow and performance briefing

*Compensation and benefits *Face-to-face engagement with

*Career development and management

promotion *Satisfaction surveys

Employees

*Safe and comfortable working *Employee representatives

environment *Collection of employee feedback

*Work-life balance *Internal work groups Case ABA Chemicals Exhibits at the “CPHI China 2025”

*Research and innovation *End-to-end services provided by

From June 24 to 26 2025 ABA Chemicals along with

*Product quality account managers

several subsidiaries exhibited at the “CPHI China 2025” at

Customers *Stable supply *Customer complaint channels

*Management of environmental and *Customer communication and visits the Shanghai New International Expo Center in Pudong.social issues *Customer satisfaction surveys During the exhibition the Company's team engaged

in face-to-face exchanges with numerous customers

*Win-win and mutual development *Supplier qualification screening systematically presenting our carbon reduction progress

Suppliers/Contractors *Fairness and just *Supplier assessment and audit since joining the Science Based Targets initiative (SBTi)

*Operation with integrity *Supplier communication latest R&D achievements sustainable operation status

of various production bases and the green compliance

*Supporting harmonious community and registration advantages of the Malta base in overseas

development *Information disclosure

Public welfare and social markets. This communication highlighted the Company's

*Actively engaging in public welfare *Contact phone and email

organizations/the public development philosophy of taking ESG as a lever for

*Transparent communication *Company official website differentiated competition and the full industry chain

*Positive interaction

layout as the core.

11 12ABA Chemicals Corporation 2025 Environmental Social and Corporate Governance (ESG) Report ESG Management

Materiality analysis Materiality assessment results

To accurately identify and evaluate the Company's material ESG issues we referred to sustainability information disclosure

standards such as the GRI Sustainability Standards the Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen High

Stock Exchange — Sustainability Report (For Trial Implementation) and the IFRS S1 General Requirements for Disclosure

of Sustainability-related Financial Information. Based on these frameworks a systematic and science-based assessment 3

methodology was established. The Company conducted a materiality assessment from the perspectives of impact materiality 4 1

(i.e. the significance of an issue's impact on economic environmental and social sustainability) and financial materiality (i.e. 5 2

the extent to which an issue may affect the Company's financial performance). Based on the results key ESG topics were 18 8 6

identified prioritized and disclosed in this report with corresponding responses. Meanwhile the Company continues to 17 1011

enhance its ESG management system to support long-term sustainable development. 15 9 12 13

Materiality assessment process 19

2021

14

1316

Based on an analysis of internal and external development trends and with reference to macroeconomic

policies in the Company's areas of operation as well as industry-specific policies and standards the

Company developed a list of ESG issues and identified 21 material issues including both general and

industry-specific issues:

* The list was primarily developed with reference to the Self-Regulatory Guidelines No. 17 for Companies 7

Listed on Shenzhen Stock Exchange — Sustainability Report (For Trial Implementation). Additional

Issue references included other authoritative domestic and international sustainability reporting such as the ISSB

mapping Standards and GRI Standards.and * M ainstream ESG rating frameworks both domestic and international (e.g. MSCI ESG Ratings S&P

identification

Corporate Sustainability Assessment and CDP Ratings) as well as sustainability issues of industry

Low Financial Materiality High

concern were also taken into consideration;

* I ssues jointly prioritized by internal and external stakeholders were identified based on the Company's

sector characteristics stage of industry development business model and position in the value chain

in order to determine topics of either financial or impact materiality; Double materiality

* Expert insights were also incorporated into the assessment process.

1 Product safety and quality 3 Environmental management 5 Occupational health and safety

In line with the principle of dual materiality the Company conducted both impact materiality and 2 Supply chain management 4 Addressing climate change 6 Adherence to business ethics

financial materiality assessments. This process resulted in the 2025 materiality matrix which highlights

our most significant ESG issues and their prioritization for the year. The relevant stakeholders engaged

in the process include directors senior executives employees customers suppliers investors regulatory Financial materiality

authorities and the public.Impact materiality： The assessment began with the definition of impact materiality factors and scoring 7 Compliant operations

intervals. Stakeholders evaluated the Company's material ESG issues based on two main dimensions:

Survey and severity of impact and likelihood of occurrence. Based on the survey results the impact materiality of

assessment each issue was determined. The results were then reviewed and validated by both internal and external Impact materiality

ESG experts to ensure objectivity and accuracy.Financial materiality: The assessment began with the identification of assessment factors and thresholds 8 Customer service 14 Emissions management 20 Corporate governance

for financial materiality. Each ESG issue was assessed based on whether it is expected to have a

significant impact in the short medium or long term on the Company's business model operations 9 Innovation-driven development 15 Biodiversity conservation 21 Digital transformation

development strategy financial position operating results cash flow financing approach or financing 10 Responsible marketing 16 Protection of employee rights

cost. The assessment results were reviewed and validated by the Company's directors senior executives and interests

and internal and external ESG experts. 11 Data security and customer privacy 17 Employee training and development

protection

12 Water resources management 18 Employee welfare and care

Based on the survey results a materiality matrix was developed from two dimensions: impact materiality

Confirmation and financial materiality. The prioritization of ESG issues was finalized through a comprehensive review 13 Energy management 19 Social contribution

and and validation by the Company's senior executives and external experts. The prioritized issues are

response highlighted in this report with focused disclosures.

1314

Impact MaterialityABA Chemicals Corporation 2025 Environmental Social and Corporate Governance (ESG) Report Technological Excellence and Green Development and Nourishing Hearts to Forge Sound Governance for

Superior Quality Lead the Future Enduring Protection of Nature Dreams and Advance Together Sustainable Steady Growth

Technological

Excellence and

Superior Quality

Lead the Future

We firmly believe that true industry leadership

stems from the deep integration of green

technological innovation and an excellent

quality system. The Company focuses on

the field of high-end pharmaceutical and

agrochemical intermediates continuously making

breakthroughs in key technologies such as

green catalysis continuous-flow reaction and

chiral synthesis. We strictly implement GMP

standards and ISO 9001 Quality Management

System building a solid full-chain quality and

safety defense line covering R&D production

and delivery. Leveraging the CDMO platform

we provide global customers with efficient

compliant and customized professional services

while striving to build a safe resilient and

sustainable global supply chain. By systematically

integrating technology quality service and the

supply chain we continuously strengthen our

sustainable competitive edge.Issues covered in this chapter

*Product safety and quality

*Customer service

*Innovation-driven development

*Supply chain management

*Responsible marketing

Contributing to UN SDGs

*Data security and customer privacy protection

Note: This picture shows the ABA Chemicals Shanghai Zhangjiang Innovation Center.

1516

16ABA CAhBeAm iCcahlesm Ciocarplso rCaotiropnorati2o0n25 E2n0v2i5ro Enmnveirnotnaml eSnotcaial lS aoncdia lC oarnpdo rCaoterp Goroavter nGaonvceer n(aEnScGe) (REeSpGo)r tReport Technological Excellence and Green Development and Nourishing Hearts to Forge Sound Governance for

Superior Quality Lead the Future Enduring Protection of Nature Dreams and Advance Together Sustainable Steady Growth

Adhering to innovation-driven Case Cutting-edgeAchievementsinNewEnergyMaterialsR&D

development During the reporting period the Company's subsidiary Electroxolve Technology Co. Ltd. collaborated with

Central South University and Xi'an Jiaotong University and achieved a breakthrough in the field of lithium-ionThe Company focuses on pharmaceutical and agrochemical CDMO building an innovation ecosystem covering battery electrolytes. The relevant research results titled “Synergistic Solvent Design Enables High-Performancetechnological strategy R&D systems incentive mechanisms and intellectual property to continuously enhance Fluorine-Free Electrolytes for Lithium-Ion Batteries” were published in the internationally renowned journal

technological barriers and customer value through high R&D investment and breakthroughs in green processes. Advanced Functional Materials providing a new solution for the development of high-performance and

environmentally friendly battery materials.Defining innovation strategy

The Company takes building systematic competitive advantages and driving the upgrade of the chemical industry Improving the R&D System

towards high-end and high-value development as our core innovation strategy focusing on the two core businesses

of CDMO for innovative pharmaceuticals and innovative agrochemical intermediates and providing in-depth services

Relying on a full-chain innovation system covering “R&D–pilot–industrialization” the Company actively integrates

to global originator pharmaceutical companies and leading agrochemical enterprises. We make forward-looking

cutting-edge technologies such as AI to continuously build efficient collaborative and green core competitiveness

deployments in cutting-edge technology directions such as synthetic biology microchannel continuous flow and

thereby laying a solid foundation for high-quality development.green catalysis focusing on breaking through the bottlenecks of green synthesis processes with high selectivity high

yield and high efficiency. Relying on the “R&D - pilot - industrialization” full-chain innovation system the Company

accelerates the transformation of technological achievements from the laboratory to large-scale production and

through continuous technological iteration and platform capability building provides customers with more reliable Building a full-chain innovation system

flexible and cost-effective customized solutions.The Company has established a full-chain innovation system covering “R&D - pilot - industrialization” leveraging a

In terms of securing R&D investment the Company remains committed to treating scientific and technological technology network that synergizes four major domestic R&D centers with overseas R&D to accelerate the industrial

innovation as a strategic investment continuously maintains a high level of R&D expenditure and promotes the transformation of technological achievements. Each center focuses primarily on independent R&D supplemented

efficient transformation of technological achievements by carrying out joint R&D projects with universities and research by external collaboration and is deeply involved in the new product development of industry-leading customers

institutions ensuring deep synergy between R&D activities and our core business. supporting the Company in providing efficient market-demand-oriented customized services.During the reporting period the Company's two major projects were successively implemented. In October 2025 the

Case Key Breakthrough Achieved in Microchannel Continuous Flow Process pilot project of Workshop C93 at the Lanzhou Base was launched focusing on the pilot scale-up of innovative drug APIs

and high-end intermediates. On November 29 Shaoxing ABA's innovative drug APIs and intermediates project officially

During the reporting period the Company collaborated commenced focusing on the R&D and industrialization of related products. The two major projects further improved

with Shanghai Jiao Tong University and successfully applied the Company's full-chain layout of “R&D - pilot - industrialization” providing strong support for the development of the

microreactor technology to replace the traditional batch pharmaceutical business.reactor process in a key step of trifloxystrobin synthesis—

the photobromination reaction. This technology resolved

bottlenecks such as poor heat and mass transfer performance

and low light utilization in the traditional process significantly

improving process efficiency and safety. The related

achievements have been granted national invention patents

and published in the renowned international chemical

engineering journal AIChE Journal.Shaoxing ABA's innovative drug APIs and intermediates project officially commenced construction

17 17 18ABA CAhBeAm iCcahlesm Ciocarplso rCaotiropnorati2o0n25 E2n0v2i5ro Enmnveirnotnaml eSnotcaial lS aoncdia lC oarnpdo rCaoterp Goroavter nGaonvceer n(aEnScGe) (REeSpGo)r tReport Technological Excellence and Green Development and Nourishing Hearts to Forge Sound Governance for

Superior Quality Lead the Future Enduring Protection of Nature Dreams and Advance Together Sustainable Steady Growth

Deploying AI + Automated R&D Case Partnering with Leading Pharmaceutical Companies to Enhance Advanced Manufacturing Capabilities in the Pharmaceutical Industry

Currently China's pharmaceutical and fine chemical industries are moving towards a new stage of high-quality development.The government has intensively issued multiple policies to encourage the digital and intelligent transformation of the In August 2025 the Company entered into a strategic partnership with Hengrui Pharma to jointly promote

pharmaceutical industry and the high-end upgrading of fine chemicals support the deep application of AI in drug research advanced pharmaceutical manufacturing and technological upgrades. Hengrui Pharma possesses deep R&D

and development and promote the development of efficient safe and environmentally friendly products and intermediates. expertise and a rich pipeline in major disease areas such as oncology metabolism cardiovascular immunology

As the core support for pharmaceutical manufacturing the market demand for pharmaceutical intermediates continues to be and neuroscience. Through CDMO collaboration

unleashed but the industry generally faces pain points such as outdated R&D models long cycles high costs and low levels with it the Company is able to deeply participate

of digitalization which restrict the pace of industrial upgrading. At the same time AI-driven R&D has become the mainstream in the process development and manufacturing

trend in the industry and industry-academia-research collaborative innovation has become the key to industrial development.of innovative pharmaceutical intermediates and

The Company is deeply engaged in the field of fine chemicals and pharmaceutical intermediates possessing profound technical

accumulation and a professional R&D team. To overcome industry bottlenecks respond to policy guidance and consolidate our active pharmaceutical ingredients (APIs) and

industry position the Company is actively exploring the application of AI in the R&D field relying on industry-academia-research gain exposure to cutting-edge drug modalities

resources to deploy an AI + automated R&D system facilitating the green and intelligent transformation of the industry and and complex synthesis technologies thereby

achieving our own high-quality development. continuously optimizing our R&D system improving

technical response capabilities and enhancing

comprehensive innovation strength in the

Improving innovation mechanisms integration of high-end intermediates and active

pharmaceutical ingredients (APIs) .The Company has established an innovation center as the core R&D institution whose work is characterized by specialization

a systematic approach interdisciplinary collaboration and market orientation. The related intellectual property is incorporated

into the Company's core strategic assets for systematic management. Centering around the full innovation cycle the

Company has established a policy system covering new product development talent development project transfer and Protecting Intellectual Property

transformation of achievements including the Design and Development Plan Innovation and Entrepreneurship Management

Measures Management Measures for the Further Education of Researchers and Project Transfer Management System. With the Intellectual Property Management Measures at its core the Company clarifies the scope of intellectual

property and the ownership of work-related achievements and establishes a collaborative and coordinated

In terms of incentives and support the Company clarifies the benefit-sharing mechanism through the Management and

Reward Measures for the Transformation of Scientific and Technological Achievements and provides immediate bonuses to organizational mechanism led by the Technology Center/R&D Center with part-time personnel assigned in various

patent inventors in accordance with the Intellectual Property Management Measures. At the same time we set up special business departments. We have formulated supporting documents such as the Information and Knowledge Exchange

funds to support idea incubation establish a technology matchmaking and transformation platform and systematically build Control Procedure and the Technical Document and Data Management Control System to standardize the intellectual

an innovation ecosystem from idea to industrialization. During the reporting period Puyi Chemical provided RMB668100 in property assessment application archiving and confidentiality processes at all stages of R&D and comprehensively

support funds for creative projects. prevent information leakage and ownership disputes by signing confidentiality agreements with employees handling

In addition the Company actively builds an industry-university-research cooperation network and promotes the capacity classified information implementing classified and

building of R&D platforms. During the reporting period the subsidiary Jiannong Plant Protection was recognized as a controlled management of technical documentation

Provincial Enterprise Technology Center a Specialized Refined Differentiated and Innovative (SRDI) SME and a High-tech and mandating the inclusion of intellectual property

Enterprise; Yihui Biotechnology hosted the Seventh “Applied Synthetic Biology” Special Forum; Puyi Chemical as the lead ownership and confidentiality clauses in all external

drafting unit for the “Pharmaceuticals” sub-field of the group standard Classification of Fine Chemical Products deeply technical cooperation contracts. Meanwhile the

participated in the formulation of industry rules continuously enhancing its technical influence and industry leadership. Company incorporates trade secret protection into new

employee onboarding training and regularly conducts

confidentiality training for all employees continuously

strengthening their confidentiality awareness and rule

execution capabilities to effectively ensure the timely

confirmation of rights and effective protection of

innovation achievements. Intellectual Property Training Held by Jiannong Plant Protection

Key performance

During the Reporting Period the Company applied As of the end of the Reporting Period the Company

for 4 invention patents and was granted 3 patents. held a total of 129 valid invention patents and

136 utility model patents

Group photo of the Seventh “Applied Synthetic Biology” Special Forum

19 19 20ABA CAhBeAm iCcahlesm Ciocarplso rCaotiropnorati2o0n25 E2n0v2i5ro Enmnveirnotnaml eSnotcaial lS aoncdia lC oarnpdo rCaoterp Goroavter nGaonvceer n(aEnScGe) (REeSpGo)r tReport Technological Excellence and Green Development and Nourishing Hearts to Forge Sound Governance for

Superior Quality Lead the Future Enduring Protection of Nature Dreams and Advance Together Sustainable Steady Growth

Strictly controlling quality and safety Risk type Risk description Impact duration Financial impact

The Company relies on a clear governance structure to supervise and manage quality and safety risks sets the direction During the operation of the management system risks may

with forward-looking strategic planning fortifies the line of defense with systematic risk control and drives continuous occur such as a disconnect between the documentation

improvement by setting quantitative indicators and targets thereby building and continuously optimizing a quality and system and actual operations and process drift caused

Systemic vulnerabilities

safety assurance system covering the entire process. by ineffective change control. Additionally systemic Short term medium

and gaps in personnel High

competencies vulnerabilities may emerge due to the departure of key term long term

Governance dimension personnel or inadequate training which can subsequently impair the effective operation of the quality system and lead

to regulatory compliance risks.The Company has established a dedicated quality management department built an all-employee quality

responsibility system from the general manager to each operational position and all production bases continuously There may be compliance risks arising from failure to adapt

and effectively operate quality management systems that comply with industry standards. The Company has to evolving regulations or market access barriers due to the

simultaneously formulated and implemented standardized system documents such as the Quality Risk Management Compliance failures lack of integration of green and safety design into R&D as

Procedure GMP System Risk Assessment Procedure Change Control Procedure and Process for Controlling and sustainable Medium term long well as the dilution of the quality culture affecting the post- High

development

Nonconforming Output to systematically ensure the quality safety and compliance of products throughout their term

challenges M&A management system thereby impacting corporate

life cycle. On this basis the Company regularly evaluates the effectiveness of the system's operation through market access and brand reputation and resulting in the risk

annual self-inspections management reviews and internal audits and cascades quality objectives level by level of regulatory penalties.to all departments incorporating them into monthly and annual performance appraisals to ensure that quality

responsibilities are implemented at all levels thereby driving the continuous optimization of the quality management

system and the constant enhancement of quality awareness among all employees.Strengthening process control and rapid response

Key performance

To ensure the continuous provision of high-quality products and services the Company has established a systematic

In 2025 the Company's main production bases successfully passed a series of quality assurance system. This system is centered on standardized procedures covering the entire process from

quality system audits and official certifications specifically including: production task formulation process execution equipment usage and process monitoring to packaging transportation

and delivery. The Company has established clear quality standards and analytical procedures for raw materials

System certification

intermediate products and finished products and through strict monitoring and measurement control procedures

Main production bases have passed the ISO 9001 surveillance or recertification ensures that all inspection activities are executed as planned guaranteeing the delivery quality of final products.audits. The scope of certification covers the R&D production and sales of multiple products

including active pharmaceutical ingredients (APIs) pharmaceutical intermediates pesticides and During the production process the Company strengthens the management of key process parameters key materials

pesticide intermediates chemical products and biological enzyme preparations. and key processes. The Company strictly implements the Change Control Process systematically evaluates and

tracks all changes that may affect quality and introduces external safety evaluations and expert reviews for major

Official inspection process changes. Through an effective deviation handling mechanism and non-conforming product management

The Taicang Base successfully passed the renewal inspections for the Drug Manufacturing License procedure we ensure that abnormalities are promptly corrected to avoid unintended use. In addition the Company

and the Certificate for Export of Active Pharmaceutical Ingredients to the EU conducted by the Jiangsu has established the Product Recall Management System and conducts regular drills to ensure a rapid response

Medical Products Administration. when necessary safeguarding customer and public safety. For non-conforming products non-conformities or

incidents that occur the Company conducts in-depth root cause analysis and formulates corresponding corrective

Strategy and preventive measures thereby continuously improving the product assurance system and driving the continuous enhancement of the quality management level.During the Reporting Period focusing on potential quality risks such as deviations and fluctuations in the

production execution process the Company established a quality assurance and continuous improvement

mechanism throughout the entire production chain and systematically consolidated the quality foundation and

enhanced response capabilities through measures such as standardized control personnel empowerment system

reinforcement and green design.Risk type Risk description Impact duration Financial impact

During the production execution process risks such as

improper control of key process parameters operational

Deviations and errors and failure to follow SOPs may occur or batch

fluctuations in the Short term medium

quality issues may arise due to sudden equipment failures or High

production execution term long term

process packaging and labeling errors which in turn affect product

quality stability resulting in decreased production efficiency

and quality accidents. Scenarios of Quality Control Process and Inspection Process of the Company

21 21 22ABA CAhBeAm iCcahlesm Ciocarplso rCaotiropnorati2o0n25 E2n0v2i5ro Enmnveirnotnaml eSnotcaial lS aoncdia lC oarnpdo rCaoterp Goroavter nGaonvceer n(aEnScGe) (REeSpGo)r tReport Technological Excellence and Green Development and Nourishing Hearts to Forge Sound Governance for

Superior Quality Lead the Future Enduring Protection of Nature Dreams and Advance Together Sustainable Steady Growth

Strengthening the foundation of the system and enhancing Practicing green concepts throughout the entire process

practical abilities

The Company adheres to the green design concept of “source reduction and full-cycle control” integrating cleaner

The Company continuously conducts systematic quality training to comprehensively enhance employees' quality production and intrinsic safety principles throughout the product R&D and production processes. By reducing the

awareness and professional competence. All production bases strictly implement the training management system use of hazardous materials seeking safe alternatives and optimizing process conditions we prevent pollution and

systematically conducting new employee onboarding quality training regular on-the-job refresher training and reduce energy consumption from the design stage to minimize the environmental impact throughout the product's

specialized training on the creation and updating of SOPs. The training content covers the Regulations on the full life cycle.Administration of Pesticides core requirements of pharmaceutical GMP and product quality standards and focuses

on basic quality knowledge record management contamination control and practical operations such as sampling

cleaning and labeling. At the same time the Company invites external experts to give lectures introduces advanced Promoting green raw materials and process substitution

practices and continuously enriches training resources. Building on the implementation of training the Company

*In the production of a pesticide intermediate product 11-dichloroethane in the

simultaneously establishes a training effectiveness evaluation and assessment mechanism to promote the effective

conversion of knowledge into practical on-the-job skills. sulfonation section is replaced with the less toxic dichloromethane reducing

environmental and health risks while improving the solvent reuse rate and

In addition the Company regularly conducts the promotion of quality standards and management reviews and reducing waste generation.identifies improvement opportunities based on data trend analysis thereby ensuring that training content precisely *A certain pharmaceutical intermediate product adopts biological enzyme

addresses practical problems and continuously enhancing the targetedness and effectiveness of the training system. technology to replace traditional chemical processes achieving efficient low-

energy and pollution-free production.*In the field of pesticide formulations we replace highly toxic raw materials with

low-toxicity ones and promote the use of green formulations such as suspension

concentrates to reduce harm to the environment.Developing green and low-carbon products

*A pharmaceutical intermediate product adopts microchannel reactor technology

to achieve closed continuous and precise control of the reaction process

Specialized Training on the 2025 Jiangsu Province Training on the Revisions to Pharmacopoeia 2025 significantly reducing safety risks and enhancing environmental benefits.Quality Credit Rating Certification

Case Promoting Learning through Examinations and Empowering through Intelligence

Implementation of green packaging design

The Company innovated training methods by deeply integrating external authoritative assessments with *For materials such as methanol and toluene we change the packaging from

internal system optimization and organized personnel in key positions at the Taicang Base to participate in 200-liter small drums to IBCs implementing dedicated-use containers and

the unified examination held by the Suzhou Inspection Branch of the Jiangsu Medical Products Administration. repeated recycling. For packaging drums for materials such as sulfuric acid we

By “promoting learning through examinations” we stimulated the initiative of all employees to systematically implement inkjet coding identification management to promote recycling reduce

study pharmaceutical laws and regulations and all participants successfully passed. At the same time we packaging material consumption and reduce material residue.engaged a third-party professional agency to conduct a comprehensive review and iterative optimization of

over 200 system documents and promoted collaborative participation across multiple departments in the

revision process enabling employees to deepen their understanding of GMP requirements during document

optimization and achieving “learning while revising revising while learning.” Implementation of source reduction and inherent safety design

*During the design stage we use the Inherently Safer Process Checklist as a

guiding tool to systematically implement the principles of reduce use safer

substitution and moderate processes.*Through ongoing cleaner production audits we identify and implement process

optimization solutions aimed at energy saving consumption reduction pollution

reduction and efficiency improvement improving resource utilization efficiency at

the source and reducing pollutant emissions.

23 23 24ABA CAhBeAm iCcahlesm Ciocarplso rCaotiropnorati2o0n25 E2n0v2i5ro Enmnveirnotnaml eSnotcaial lS aoncdia lC oarnpdo rCaoterp Goroavter nGaonvceer n(aEnScGe) (REeSpGo)r tReport Technological Excellence and Green Development and Nourishing Hearts to Forge Sound Governance for

Superior Quality Lead the Future Enduring Protection of Nature Dreams and Advance Together Sustainable Steady Growth

Risk management

The Company has formulated documents such as the Quality Risk Management Procedure and the GMP System Risk

2025 achieved

Assessment Procedure. Based on specialized procedures and quantitative tools we accurately identify and control Indicator Unit 2025 target value

key stages throughout the entire production process and conduct comprehensive assessments relying on multi-

channel information inputs while achieving closed-loop risk management and continuous improvement through Number of quality-related complaints Time ≤ 1 time/month 0

event-triggered and periodic review mechanisms.Audit pass rate for product release % 100 100

Risk management framework and core methods

The Company has established a closed-loop quality management process that includes Compliance and accuracy rate for material storage

assessment control communication and review. It uses flowcharts checklists and trend % ≥ 98 100and handling

analysis for preliminary risk identification and employs Failure Mode and Effects Analysis

(FMEA) as a core quantitative tool. By analyzing the likelihood severity and detectability Labeling non-conformities identified during

of failures the Company calculates the risk priority numbers to objectively rank risks and Item ≤ 2 items/quarter 0inspections and audits

implement tiered risk management.Instances of uncontrolled non-conforming

Time ≤ 1 time/year 0

products

Sources of input information for risk assessment

The input information for risk assessment is derived from various aspects of daily operations First-pass inspection accuracy for raw materials % 98 Target achieved

products and intermediates

and quality management including quality management system processes various quality

events change control periodic review data validation status and personnel competency

Timely reporting and documentation rate of out-of-

assessment results. % 100 100specification (OOS) cases to QA

Timely deviation reporting and documentation rate

Mechanisms for ongoing risk monitoring and review % ≥ 90 100to QA

We conduct immediate follow-up and re-assessment through event triggers and measure

verification; conduct a systematic annual review of all identified risks and record the entire Change management compliance % ≥ 95 100

process in the risk register ledger to achieve closed-loop risk management and continuous

improvement.Equipment fault resolution timeliness rate % ≥ 98 Target achieved

Indicators and targets Equipment maintenance timeliness and record

% ≥ 98 Target achieved

The Company has set clear and quantifiable quality indicators and targets continuously tracks various indicators accuracy rate

through the monthly quality target assessment form and has established a quality information management system

to ensure data integrity and traceability. As of the end of the reporting period the completion rate of major quality Measuring instrument calibration compliance rate % ≥ 95 Target achieved

targets reached 100%.

2025 achieved

Indicators Unit 2025 target Infrastructure fault resolution timeliness rate % ≥ 98 100

value

Timely updates of manuals for the three

Time ≥ 1 time/3 years 1

management systems Contract fulfillment rate % ≥ 98 100

Internal audit implementation status for the three

Time ≥ 1 time/year 1

management systems Customer satisfaction rate % ≥ 95 Target achieved

Management review implementation status Time ≥ 1 time/year 2

25 25 26ABA CAhBeAm iCcahlesm Ciocarplso rCaotiropnorati2o0n25 E2n0v2i5ro Enmnveirnotnaml eSnotcaial lS aoncdia lC oarnpdo rCaoterp Goroavter nGaonvceer n(aEnScGe) (REeSpGo)r tReport Technological Excellence and Green Development and Nourishing Hearts to Forge Sound Governance for

Superior Quality Lead the Future Enduring Protection of Nature Dreams and Advance Together Sustainable Steady Growth

Creating high-quality services Customer service management

The Company is committed to systematically building a trustworthy service system through responsible marketing The Company always starts with sincere listening and through attentive

and communication professional and efficient customer service management and strict protection of data security and professional service processes accompanies and supports customers

and customer privacy and we are dedicated to exceeding customer expectations at every stage to achieve mutual in solving problems and creating value. To systematically enhance service

growth. quality the Company has formulated the Customer Service Management

System as the fundamental basis for service management clarifying

Responsible marketing service objectives and the overall principles of key processes such as customer information management reception and response complaint

The Company has established a closed-loop management system handling follow-up tracking and relationship maintenance. Concurrently Key performance

for responsible marketing covering policies implementation and we have introduced supporting institutional documents such as the

supervision. By establishing internal policies such as the Responsible During the reporting period Customer Service Quality Monitoring Plan establishing a customer service

Marketing Assurance Plan and incorporating the requirements of the Company had management system that covers all processes and elements and laying a

external regulations—such as the Advertising Law—into employee solid institutional foundation for a high-quality customer experience.handbooks and incentive and disciplinary systems we clearly 0

define the “red lines” for marketing compliance at the strategic incidents of non-compliant Closed-loop management of customer complaints

level and systematically mitigate legal and ethical risks. Building marketing.on this we regularly conduct mandatory regulatory training and The Company classifies and manages customers by establishing and continuously updating a customer information

typical case studies establish a multi-departmental collaborative database. On this basis the Company requires customer service personnel to warmly receive customers in a

review mechanism prior to the release of marketing materials and standardized manner and promptly record classify and handle all inquiries and complaints. In response to customer

strengthen the team's compliance awareness and professional complaints the Company has established a clear time-bound handling mechanism to ensure responses within the

capabilities to ensure that external promotional content is truthful specified time and continuous tracking and follow-up until the customer is satisfied. At the same time the Company

accurate and verifiable. At the same time we rely on internal also proactively conducts regular follow-ups via phone email and other methods to systematically collect customer

audits customer feedback and internal reporting channels to build opinions and suggestions. In addition we deepen customer relationships by providing value-added services such as

a three-pronged supervision network strictly pursue accountability technical guidance to key customers and organizing various customer activities.for violations and promote problem rectification and process

optimization ensuring that the responsible marketing system

remains continuously effective and achieves tangible results. Customer Complaint Handling Process

Marketing Information Review Control Process

Content review Collaborative verification Information filing Acceptance and Response and Resolution and Follow-up and recording handling communication return visit

Customer service According to the We address customers' We track and conduct

personnel warmly process complaints are reasonable requests in a return visits for resolved

We establish a product The Company's marketing For important marketing receive customers routed to designated timely manner; provide complaints to confirm

listen patiently and responsible departments patient explanations whether customers

promotional content review department work closely with R&D decisions or customer

promptly record the and personnel for for unreasonable are satisfied with the

mechanism under which production and other departments commitments the Company content of customer handling. The Company requests and maintain handling results.personnel with professional to ensure that marketing information requires sales personnel to complaints classify and requires that an initial communication with

knowledge conduct is consistent with actual product submit a written application in handle complaints and response be provided to customers throughout

comprehensive reviews of conditions. Marketing personnel are advance and execute it only ensure the information is the customer within the the handling process.marketing materials advertising required to accurately understand after it has been filed with the accurate and error-free. specified time.copy etc. product performance and Company and approved.exaggeration of efficacy is prohibited.

27 27 28ABA CAhBeAm iCcahlesm Ciocarplso rCaotiropnorati2o0n25 E2n0v2i5ro Enmnveirnotnaml eSnotcaial lS aoncdia lC oarnpdo rCaoterp Goroavter nGaonvceer n(aEnScGe) (REeSpGo)r tReport Technological Excellence and Green Development and Nourishing Hearts to Forge Sound Governance for

Superior Quality Lead the Future Enduring Protection of Nature Dreams and Advance Together Sustainable Steady Growth

Forms of Technical Exchange and Service Information and data security protection

The Company taking Overall Policy and Security Strategy for Cybersecurity as the overarching guideline and Data

Security Management System as the core has established a policy system covering the entire data lifecycle clarifying

Technical guidance Through objective and clear presentation of outcomes we help customers the protection requirements for data confidentiality integrity and availability and standardizing the management

and validation of more accurately assess product value thereby providing strong support for their processes across all stages from storage and access to destruction. To ensure the implementation of responsibilities

results application decisions. the Company has established an information security working group led by management set up dedicated

positions such as system management and security management and clearly defined the division of responsibilities.conducts policy review and revision at least once a year. During the reporting period the working group completed

Through training on-site guidance and other methods we share relevant product routine security inspections as scheduled and key control points such as backup records and audit logs were

Knowledge sharing

knowledge and usage skills with our customers to help them use products more

and skill transfer verified. Regarding the areas for improvement identified during the grade protection assessment the Company has

effectively and promote joint improvement in professional capabilities for both parties. incorporated them into its continuous improvement mechanism and is promoting the dynamic optimization and long-

term operation of the information security system through policy revisions and specialized training.We organize technical exchange meetings product demonstrations and other

Regular Core Data Security Protection Measuresactivities to establish stable communication channels so as to more directly

communication and

feedback on needs understand customers' usage and feedback and continuously improve our products

and services. Access and encryption Operations and Data backup and secure

controls maintenance security audit storage

Strict user authentication and The system has enabled the Local backups of critical business

role-based least-privilege security audit function to record data are performed daily and

access controls are enforced all important user operations and retained for a specified period

for all users. Effective protection system events and protect logs and key data are stored in a

measures such as encryption from tampering ensuring that controlled secure physical

are adopted for sensitive all data access behaviors are environment.data including customer traceable.authentication information

during transmission and storage.Jiannong Plant Protection promoted the prevention and control of wheat rust in Jiangsu Anhui Henan and other regions

Key performance

Service quality monitoring The Company's core business system The Company experienced

· successfully passed the National

The Company has set core performance indicators such as customer complaint rate timely issue resolution rate Cybersecurity Classified Protection Level 2

customer satisfaction score customer follow-up rate and service response time and has defined specific target values 0data breach incidentsAssessment

for each indicator. To monitor the achievement of the targets the Company conducts real-time tracking through a data

statistical analysis system gathers information through multiple channels such as regular customer satisfaction surveys

feedback from complaint platforms and regular internal audits and directly incorporates service quality indicators into

Customer privacy protection

the performance appraisals of customer service personnel. For situations where targets are not met the Company

initiates systematic handling procedures including conducting an in-depth analysis of the causes formulating targeted The Company has established and implemented the Customer Privacy Protection Plan systematically standardizing

improvement measures and continuously tracking and evaluating the effectiveness and enforces corresponding the full lifecycle management of customer information. The policy specifies the principles of lawful legitimate and

accountability or provides incentives based on the results ensuring that service issues are effectively resolved and necessary collection implements technical and management measures such as encrypted storage and strict access

promoting the continuous improvement of service quality. control and restricts data sharing requiring that any such sharing be subject to a confidentiality agreement with the

third party. At the same time through continuous employee training privacy protection requirements are internalized

as a code of conduct for all employees.Data security and customer privacy protection In addition the Company conducts regular special internal audits to review compliance invites independent third-party

organizations to evaluate its customer privacy protection measures and policies and has established customer privacy

The Company establishes and continuously improves management and technical systems to provide comprehensive complaint channels to ensure timely responses. Through a combination of policies technology training and oversight

and regular protection for information security and customer privacy. the Company continues to provide robust safeguards for customer data security.

29 29 30ABA CAhBeAm iCcahlesm Ciocarplso rCaotiropnorati2o0n25 E2n0v2i5ro Enmnveirnotnaml eSnotcaial lS aoncdia lC oarnpdo rCaoterp Goroavter nGaonvceer n(aEnScGe) (REeSpGo)r tReport Technological Excellence and Green Development and Nourishing Hearts to Forge Sound Governance for

Superior Quality Lead the Future Enduring Protection of Nature Dreams and Advance Together Sustainable Steady Growth

Building a resilient supply chain Risk type Risk description Impact duration Financial impact

The Company continuously strengthens the supervision and control of supply chain risks building a robust reliable

Quality and Inconsistent quality of supplier product batches or failure Short term

and stable supply chain through a systematic management system and rigorous implementation. consistency risks to meet new standards leads to a decline in the Company's medium term Highproduct qualification rate returns or recalls. long term

Cost and price Severe fluctuations in raw material prices and weak Governance dimension volatility risks bargaining power caused by a single-supplier monopoly Medium term long term Moderateerode profit margins.The Company has established a management structure that integrates the headquarters supply chain management

platform with the procurement execution at various production bases. The headquarters level is responsible for Over-reliance risk Excessive reliance on a single or a few suppliers leading to Medium term a lack of supply chain resilience. long term Moderate

strategic planning platform development and resource coordination while the various production bases are

responsible for the implementation of specific procurement tasks and the day-to-day management of suppliers. At

each production base the division of responsibilities among various departments is clearly defined. The Procurement Supplier onboarding management

Department leads supplier sourcing qualification collection and directory maintenance. The Quality Assurance (QA)

Department as the core supervisory department is responsible for qualification review on-site audit organization The Company has established a multi-dimensional evaluation mechanism to ensure the source is controllable.and the approval of qualified suppliers. Meanwhile departments such as the Technical Department Production Based on the impact of materials on product quality we implement a three-level classification management for

Department Safety Department and Logistics Department collaboratively participate in processes such as technical suppliers: critical important and general. We simultaneously embed ESG risk assessment incorporating sustainability

assessment production verification safety audits and arrival inspections based on their areas of expertise forming performance such as environmental protection labor rights and business ethics into the comprehensive screening

a multi-departmental coordinated audit mechanism. criteria. Meanwhile we implement the principle of having no fewer than three qualified suppliers for the same

material and prioritize partners with independent production capacity or regional layout advantages to strengthen

To ensure standardized and orderly management activities the Company has formulated and implemented supply diversity and risk resilience from the source.a series of system documents including the Supplier Management System the Supplier Environmental

Behavior Management System and the Supplier Confirmation and Audit Management Procedure. Key

decisions such as the onboarding approval and revocation of all suppliers must be formally approved by Supplier Onboarding Criteria

the head of the Quality Assurance Department or the leader in charge and records of the entire process Basic legitimacy criteria

are systematically archived to ensure traceability. Furthermore the Company establishes a continuous

and effective closed-loop supervision system for qualified suppliers through regular annual performance *Possess a legal and valid business license;

evaluations qualification document reviews and periodic on-site audits of key suppliers. *If hazardous chemicals are involved a Work Safety License/Operating License Safety Data Sheet

(SDS) and safety labels must be provided;

Strategy *Provide a valid quality inspection report (COA) for at least one batch of products.During the reporting period in response to potential supply chain risks such as compliance and reputational

risks technological iteration and disconnection risks and supply disruption risks the Company established

Quality and capability criteria

three major goals of “strengthening resilience deepening synergy and fulfilling responsibilities” and

integrated supply chain risk management throughout the entire lifecycle from supplier onboarding *Possess a sound quality management system (obtaining ISO and other certifications is encouraged);

cooperation and monitoring to exit systematically building a modern supply chain system that is safe and *Production facilities equipment and testing instruments can meet product quality and capacity

reliable mutually beneficial green and compliant. requirements;

*Be able to provide small samples according to the Company's requirements and pass the Company's

Risk type Risk description Impact duration Financial impact internal full-item testing;

*For key and important materials it is required to cooperate in completing questionnaire surveys and

Compliance and Suppliers violate environmental safety and labor Short term small-scale testing/production verification.reputational risks regulations causing the Company to face regulatory medium term Moderatepenalties litigation and damage to brand reputation. long term

Risk of technology Suppliers' technology is outdated and unable to meet the Sustainable development (ESG) and social responsibility criteria

iteration and Company's needs for product upgrades or green process Medium term

disconnection transformation resulting in the Company losing market long term

Moderate

competitiveness. *Comply with national laws and regulations regarding environmental protection safety and

Key suppliers may experience sudden supply disruptions occupational health;

Risk of supply due to quality incidents poor operations environmental Short term medium term High *No adverse records in areas such as ethical conduct labor rights and human rights;disruption protection shutdowns or geopolitical factors which may long term *Accept the Company's on-site quality audits and ESG performance assessments.affect the continuity of production.

31 31 32ABA CAhBeAm iCcahlesm Ciocarplso rCaotiropnorati2o0n25 E2n0v2i5ro Enmnveirnotnaml eSnotcaial lS aoncdia lC oarnpdo rCaoterp Goroavter nGaonvceer n(aEnScGe) (REeSpGo)r tReport Technological Excellence and Green Development and Nourishing Hearts to Forge Sound Governance for

Superior Quality Lead the Future Enduring Protection of Nature Dreams and Advance Together Sustainable Steady Growth

Key performance Dynamic management and control mechanism

163 suppliers have passed Quality Management System certification (such as ISO 9001) The Company has established a dynamic supplier management mechanism featuring “rewarding excellence andpenalizing inferiority and closed-loop management” by implementing tiered correction and exit accountability for

140 suppliers have obtained Environmental Management System certification (such as ISO 14001 etc.) problematic suppliers and providing positive incentives to outstanding suppliers.

140 Tiered corrective Exit and accountability Positive incentive suppliers have passed Occupational Health and Safety Management System certification measures traceability guidance

(such as ISO 45001) For suppliers that fail the When suppliers provide materials that For outstanding suppliers

evaluation or have issues cause a major quality impact still fail we establish strategic

Cooperation execution management we implement graded the re-evaluation after rectification partnerships through incentive

measures including written or fail the annual evaluation the exit policies such as order priority

contracts quality agreements integrity agreements and other documents we explicitly require suppliers to comply rectification order reductions procedure is initiated. Suppliers are and favorable payment terms

with national laws and regulations and fulfill ESG obligations such as environmental protection anti-corruption and suspension of supply responsible for compensating for to ensure a long-term stable

and labor protection making this a basic prerequisite for cooperation. For key suppliers we conduct on-site audits qualification. losses resulting from quality issues or and high-quality supply.annual performance communications and joint efforts in process optimization and while improving delivery quality delivery delays caused by them.and efficiency we support their technological upgrades and green transformation. In addition leveraging the global

network of production bases and advanced processes such as green synthesis and continuous flow we enhance the

stability and resilience of the supply chain from the production end. Risk management

The Company's Internal Control System explicitly incorporates core supply chain segments into key business control

Continuous monitoring and management activities establishing the policy foundation for risk management. Meanwhile the internal audit system includes the

supply chain segment within its supervisory scope ensuring the independence and authority of risk management.The Company conducts on-site reassessments of tier-1 suppliers at least once every three years primarily relies on

document reviews for tier-2 and tier-3 suppliers and conducts timely re-evaluations when major changes or quality Risk identification Assessment and prioritization Monitoring and improvement

issues occur. At the same time key indicators such as quality delivery and ESG performance are incorporated into

monthly and annual performance assessments and the assessment results are directly linked to order allocation and Mainly the business We analyze the identified risks Ongoing monitoring is conducted

cooperation priority driving continuous improvement among suppliers. departments conduct in terms of their likelihood of through regular internal audits

preliminary screening through occurrence and potential impact

management reviews and tracking of

Differentiated Supplier Assessment Strategy daily operational activities assess and determine their

such as supplier management risk levels and prioritize them key indicators. Risks identified through

Annual comprehensive Periodic on-site audits Ad hoc evaluation and and contract review and the accordingly. audits and rectification requirements assessment reassessment Audit Department conducts are incorporated into the Company's

All suppliers listed in the Tier-1 suppliers: Conduct an Triggered reassessment: When a systematic identification unified reporting and tracking system to

Approved Supplier List undergo on-site quality audit at least supplier undergoes major changes through special audits.a comprehensive annual once every three years. For the or experiences quality issues has ensure a management closed loop of

performance evaluation at first audit conduct it before multiple non-conformities within “Identification-Rectification-Review” .least once a year to review onboarding whenever possible one year or shows abnormal quality

their quality delivery service and complete it no later than one trends during the annual review

price and the validity of their year after onboarding. a special reassessment is initiated

qualifications. Tier-2 and Tier-3 suppliers: immediately. Indicators and targets

Focus primarily on document Continuous qualification review: By setting and exceeding supply chain key performance indicators the Company effectively ensures the

reviews and annual assessments. The Company's Procurement

comprehensive implementation of material supply efficiency and environmental compliance management.If major quality issues or changes Department and Quality Assurance

occur an on-site audit may be Department continuously monitor

2025 achieved

initiated at any time. the validity of supplier qualifications Indicators Unit 2025 target value

and request updates before

documents expire to ensure their Rate of notification regarding environmental

validity. requirements when signing various business % 100 100

contracts with suppliers/contractors

Supplier/Contractor qualification approval rate % 100 100

33 33 34ABA Chemicals Corporation 2025 Environmental Social and Corporate Governance (ESG) Report Technological Excellence and Green Development and Nourishing Hearts to Forge Sound Governance for

Superior Quality Lead the Future Enduring Protection of Nature Dreams and Advance Together Sustainable Steady Growth

Green Development

and Enduring

Protection of

Nature

We firmly believe that corporate sustainable

development is rooted in harmonious coexistence

with nature. The Company strictly adheres to the

bottom line of compliance addresses climate

change with a forward-looking perspective

practices resource conservation throughout

the entire production process and controls

emissions with the strictest standards. Meanwhile

we extend the responsibility of environmental

protection to the safeguarding of biodiversity

have established a systematic and multi-level

environmental action system and are committed

to protecting clear water and green mountains in

the course of its development.Issues covered in this chapter

*Environmental management

*Addressing climate change

*Water resources management

*Energy management

*Emissions management

*Biodiversity conservation

Contributing to UN SDGs

Note: The picture shows the ABA Chemicals Binhai Base.

35 36ABA CAhBeAm iCcahlesm Ciocarplso rCaotiropnorati2o0n25 E2n0v2i5ro Enmnveirnotnaml eSnotcaial lS aoncdia lC oarnpdo rCaoterp Goroavter nGaonvceer n(aEnScGe) (REeSpGo)r tReport Technological Excellence and Green Development and Nourishing Hearts to Forge Sound Governance for

Superior Quality Lead the Future Enduring Protection of Nature Dreams and Advance Together Sustainable Steady Growth

Environmental compliance management Strategy

The Company integrates environmental compliance requirements into operational systems and relies on In response to potential environmental risks such as environmental compliance risks and risks of

the ISO 14001 system to improve systems prevent and control risks ensure investment promote cleaner environmental emergencies the Company has fully integrated environmental protection into our

production and green manufacturing and strengthen emergency response and training comprehensively development strategy and daily operations systematically advanced environmental management

enhancing our environmental compliance level and sustainable development capabilities. focused on building a green manufacturing system and continuously optimized processes and reduced

consumption through cleaner production audits. Each production base has established emergency

response mechanisms and conducts regular drills strengthens environmental protection training for

Governance dimension Key performance employees and information disclosure so as to comprehensively improve environmental performance and

risk prevention and control capabilities.The Company has established an environmental governance Total environmental

structure featuring unified guidance tiered responsibility and full protection investment

participation ensuring that environmental protection efforts follow Risk category Risk description Impact duration Financial

established rules and responsibilities are assigned to individuals. 3485.08 impact

ten thousand RMB

Organizational and leadership responsibility Increasingly stringent environmental regulations

pose risks of administrative penalties and orders to

Our top management bears ultimate responsibility for environmental performance. suspend production for rectification due to excessive Short term

Each production base has established a dedicated environment health and safety emissions environmental emergencies or non-compliant medium term Highlong term

(EHS) management department with a professionally qualified team responsible for environmental management directly affecting the continuity

Compliance risk and stability of production and operations.day-to-day supervision and management. In addition we have established a company-

wide environmental protection responsibility system spanning from subsidiary heads

and the EHS Director to all departments workshops and teams ensuring that

environmental protection responsibilities are embedded in every operational process.There are inherent risks in chemical production hazardous

chemicals storage and other processes where safety Short term Systems and framework assurance

incidents such as leaks fires and explosions may trigger medium term Highlong term

The Company has established a clearly tiered and comprehensive environmental Risk of environmental secondary environmental pollution.management policy system. Main production bases have obtained and continuously emergencies

maintained the international certification for ISO 14001 Environmental Management

System achieving standardization and internationalization of management.Meanwhile based on their own characteristics all production bases have formulated

and implemented a series of documents covering the Environmental Protection

Responsibility System Environmental Risk Hazard Investigation and Handling System Frontline employees may have weak environmental awareness or be unfamiliar with equipment operating

Emergency Management System for Environmental Emergencies and Environmental procedures which may lead to fugitive emissions Short term medium term High

Protection Training and Assessment System thereby forming an institutionalized malfunctions caused by improper operations or improper long term

management network. Risk of employee handling at the initial stage of an incident causing minor operational errors and issues to escalate into major events.inadequate skills

Supervision appraisal and investment

We incorporate environmental performance into the routine performance appraisal

system for each base and employees conduct supervision through monthly inspections The public customers and investors are paying increasing

and special audits and link appraisal results to incentives thereby strengthening all attention to the environmental performance of enterprises.employees' awareness of environmental responsibility and promoting the effective Poor environmental management or a lack of transparency Medium term

implementation of environmental management measures. Meanwhile we earmark may damage the Company's reputation affect the market long term

High

Corporate reputation competitiveness of its products and even impact financing special funds for environmental protection in the annual budget and ensure they

and market access risk activities.are used exclusively for their intended purposes meeting funding needs for the

construction operation and maintenance and technological upgrading of pollution

control facilities.

37 37 38ABA CAhBeAm iCcahlesm Ciocarplso rCaotiropnorati2o0n25 E2n0v2i5ro Enmnveirnotnaml eSnotcaial lS aoncdia lC oarnpdo rCaoterp Goroavter nGaonvceer n(aEnScGe) (REeSpGo)r tReport Technological Excellence and Green Development and Nourishing Hearts to Forge Sound Governance for

Superior Quality Lead the Future Enduring Protection of Nature Dreams and Advance Together Sustainable Steady Growth

Systematic Environmental Management Practices

We systematically identify potential risk points by combining process analysis on-site

observation and departmental discussions. The identification process covers the full life

Green manufacturing system development cycle of production activities products and services and specifically examines environmental

impacts across the past present and future as well as under normal abnormal and

The Company is committed to the development of a green manufacturing system and regards it as an

important driver for promoting green and low-carbon industrial development. During the reporting period our Risk emergency operating conditions. The scope of identification includes discharges of water and

subsidiary Nantong ABA successfully obtained the “2025 Jiangsu Province Green Factory” certification; the identification air pollutants noise solid waste management energy and resource use soil and groundwater

Lanzhou base was recognized as a municipal-level green factory and has initiated the application process for pollution and other local environmental issues.provincial-level green factory status.We use appropriate evaluation methods for different types of risks to determine key

Cleaner production audit control priorities. For routine environmental factors we adopt a multi-factor evaluation

method scoring five aspects: scope of impact severity frequency of occurrence regulatory

We regard cleaner production audits as a strategic tool to systematically enhance environmental performance.Multiple bases have completed the cleaner production audits required by the government. By implementing compliance and public concern and based on these results determining significant

a series of measures including process optimization equipment upgrades and the development of energy environmental factors. For safety risks that may trigger environmental incidents we use the

management systems we effectively reduce the material consumption water consumption and energy LEC Assessment to conduct graded evaluations. For environmental emergencies we strictly

consumption per unit of product and reduce pollutant generation at the source. Risk assessment follow the Risk Classification Method for Enterprise Environmental Emergencies quantitatively

and prioritization calculating inventories of risk substances assessing process and control levels and analyzing

surrounding environmental sensitivity ultimately determining the risk level.Emergency preparedness and response

All of our production bases have prepared emergency plans in accordance with applicable laws and filed

them with the competent local authorities specifying the emergency organization response procedures and We monitor risks continuously through multiple approaches. At the operational level we

disposal measures. We regularly conduct emergency drills for environmental emergencies under different implement online monitoring at wastewater and exhaust gas discharge outlets with data

scenarios such as chemical leaks and accidental wastewater discharges and evaluate and improve drill networked to regulatory authorities and commission third parties to conduct regular manual

effectiveness to continuously enhance emergency response capabilities. In addition we regularly maintain monitoring. Meanwhile we carry out daily inspections of environmental protection treatment

emergency supplies and equipment to ensure emergency response capabilities. facilities. At the compliance and management system level we track compliance status

Risk by preparing environmental information disclosure reports and pollutant discharge permit

monitoring implementation reports and use internal audits management reviews and hidden hazard

investigations to check the effectiveness of system operation.Enhancing environmental awareness and skills

All of our production bases have formulated specialized

environmental education and training management systems

specifying that the EHS Department or other responsible

departments at each production base shall formulate Indicators and targets

and implement annual plans. The training content covers

environmental laws and regulations our internal management The Company sets quantitative environmental management targets and tracks performance through a rigorous monitoring

systems and operating procedures for pollution prevention and reporting system and is committed to achieving transparent management and continuous improvement.and control facilities with differentiated training conducted

for different positions. Through regular and comprehensive

environmental training we continuously enhance the Air Pollution Prevention knowledge training in

Shangyu Base Indicators Unit 2025 target

2025 achieved

environmental awareness and skills of all employees. value

Timeliness rate for identification and update

of environmental factors and significant / ≥ 1 time/year 1

environmental factors inventory

Transparent communication

The Company regularly discloses environmental management Environmental pollution incidents cases 0 0

information self-monitoring data and annual execution

reports in accordance with the law through multiple Fire hazards cases 0 0channels such as the official website the government's “OneEnterprise One File” platform and the National Pollutant Compliant discharge of exhaust gas and % 100 100

Discharge Permit Management Information Platform to Nantong Base publicly discloses environmental wastewater

accept public oversight. impact assessment (EIA) information through

government platforms Compliance rate of hazardous waste disposal % 100 100

On-time completion rate of emergency drills % 100 100

Risk management

Compliance rate of emergency response supplies

The Company has established and implemented a systematic environmental risk management process including systems % 100 100configuration

such as the Environmental Factor Identification and Evaluation Procedure and the Hazard Identification Evaluation and

Control Procedure forming a management system that covers risk identification hierarchical assessment and multi-level

39 3m9onitoring to achieve systematic control of environmental risks. 40ABA CAhBeAm iCcahlesm Ciocarplso rCaotiropnorati2o0n25 E2n0v2i5ro Enmnveirnotnaml eSnotcaial lS aoncdia lC oarnpdo rCaoterp Goroavter nGaonvceer n(aEnScGe) (REeSpGo)r tReport Technological Excellence and Green Development and Nourishing Hearts to Forge Sound Governance for

Superior Quality Lead the Future Enduring Protection of Nature Dreams and Advance Together Sustainable Steady Growth

Addressing climate change

The Company fully recognizes the critical role of climate issues in long-term corporate competitiveness actively

adopts the recommended framework of the Task Force on Climate-related Financial Disclosures (TCFD) and "Dual Carbon"

systematically advances climate action across the four dimensions of governance strategy risk management and Management Structure and Functions

indicators and targets promoting climate resilience within our own operations and value chain.Governance dimension Approve annual plans and confirm year-end

assessment results.Approve annual plans and

The Company has established a climate governance system covering the entire chain of governance implementation

Head confirm year-end assessment results.and supervision. At the governance level we have integrated “Dual Carbon” initiatives into our strategic core

established a cross-departmental special working group led by the Chairman and built a collaborative mechanism

covering policy research technical implementation government engagement and ESG disclosure. We drive the *Participate in formulating the Company's science-based

implementation of decisions through annual plans regular monthly meetings and a closed-loop supervision carbon targets track and organize dual carbon policies

mechanism while allocating emission reduction responsibilities to each production base to achieve integrated and promote the implementation of annual plans.management from the headquarters to the frontline. At the execution level we set science-based emission reduction

*Establish carbon emission management frameworks

targets and officially obtained SBTi approval in June 2025 becoming one of the first enterprises in the domestic fine and institutional processes to standardize the

chemical industry to pass this international certification. By incorporating “Dual Carbon” targets into the performance Company's carbon emission reduction actions improve

appraisals of subsidiaries and employees formulating the Dual Carbon Construction Implementation Plan and management efficiency and enhance information

establishing a traceable and auditable carbon data management system we ensure the efficient implementation

*Responsible for introducing developing and promoting

of actions. In terms of supervision and improvement the Company strengthens closed-loop management through

advanced energy-saving and low-carbon technologies

third-party certification. For example the Nantong base has obtained the ISO 50001 Energy Management System to provide technical support and drive innovation for the

certification and has been recognized as a Jiangsu Province Green Factory and undergoes continuous external Company's emission reduction efforts.disclosure.audits. Meanwhile the Company regularly publishes ESG reports proactively discloses climate progress and

responds to the compliance and transparency requirements of investors and core customers regarding supply chain

carbon reduction forming a closed loop of climate governance featuring internal and external coordination and Dual Carbon Management Responsible Fully implement dual carbon-related initiatives at

continuous optimization. Persons at Production/R&D Bases each production base.Strategy

The Company actively responds to the national “Dual Carbon” targets identifies the urgent needs of downstream

customers for low-carbon products and supply chain transparency benchmarks against the best practices of

international chemical companies refers to international standards such as IFRS S2 systematically identifies physical

risks and transition risks/opportunities evaluates their financial impacts and time horizons and proactively integrates

climate change deeply into our core strategy and business model.Type Risk/Opportunity Risk/Opportunity description

Impact

duration Effect on the value chain

Risk/Opportunity

concentration region Response measures

*Upstream: Extreme weather at supplier *Systematically incorporate physical resilience assessments into the site selection design

Extreme climate events such locations leads to raw material supply and operational decision-making of production bases and invest in facility upgrades for

as floods storms droughts disruptions; flood prevention wind resistance and high-temperature tolerance to enhance the capacity

*Coastal and riverside

or extreme heat may damage *Internal operations: Production bases to cope with extreme climate from the source.Physical Acute Physical factories

production facilities or cause Short term need to undergo disaster-resistance *Develop extreme weather early warning and emergency plans and establish a cross-

risks risks *Locations of single-

production interruptions affecting reinforcement and develop business departmental emergency response mechanism to ensure the organization's rapid response

source key suppliers

supply chain security and supply continuity plans; and business continuity during climate events through regular drills.capacity. *Downstream: Unstable supply damages *For the response to supplier-related risks please refer to the Building a Strong Supply Chain

customer trust. section.

414142

Human Resources Department

Finance Department

EHS DEPARTMENT

R&D Center

Board OfficeABA CAhBeAm iCcahlesm Ciocarplso rCaotiropnorati2o0n25 E2n0v2i5ro Enmnveirnotnaml eSnotcaial lS aoncdia lC oarnpdo rCaoterp Goroavter nGaonvceer n(aEnScGe) (REeSpGo)r tReport Technological Excellence and Green Development and Nourishing Hearts to Forge Sound Governance for

Superior Quality Lead the Future Enduring Protection of Nature Dreams and Advance Together Sustainable Steady Growth

Type Risk/ Impact Risk/Opportunity Opportunity Risk/Opportunity description duration Effect on the value chain concentration region Response measures

Long-term climate change leads

*Agrochemical and

to changes in water resource

climate-sensitive

distribution changes in pest *Internal operations: It is required *Dynamically adjust R&D directions and market forecasts by analyzing long-term climate

pharmaceutical

and disease patterns sea level to assess the long-term climate trends and tracking regional climate and pest and disease data;

Physical Chronic physical product lines

rise and frequent extreme Long term adaptability of production bases; *Focus investment on the R&D of adaptive agrochemicals such as drought-resistant and pest-

risks risks *Key agricultural raw

temperatures thereby affecting *Downstream: The impact of climate and disease-resistant products and actively conduct related business research and industry

material sourcing

the market demand for products change on end industries is tracked. exchanges.areas

such as agrochemicals and

*R&D departments

pharmaceuticals.*Upstream: It is required to screen

and manage suppliers' environmental

Governments and regulatory

compliance;

authorities strengthen *Each production *Prioritize environmental compliance and carbon costs in project decision-making

*Internal operations: Investment

environmental and carbon Medium base. systematically formulate and advance the SBTi emission reduction pathway;

Policy and legal continues in environmental protection

emissions regulation in response to and long *Suppliers of raw *Introduce a digital carbon management system to achieve process monitoring and data-

risks facility upgrades and emissions

climate change resulting in higher term materials with high driven management while continuously advancing process optimization and equipment

monitoring;

corporate compliance costs and environmental impact upgrades to ensure the implementation of emission reduction targets.*Downstream: Exported products may

increased exposure to penalty risks.face “carbon barriers” in international

trade.Transition

risks

*Incorporate customers' low-carbon demands as a key input for product R&D and market

*Upstream: Pressure transmission

strategy and systematically introduce product carbon footprint analysis into decision-

requires priority cooperation with low-

Downstream customers have raised making;

carbon suppliers; *Multinational

higher requirements for the carbon *Regularly disclose carbon inventory results and ESG reports annually to enhance

Short and *Internal operations: R&D resources are enterprise customers

emissions performance of our transparency and market trust;

Market risks medium driven towards low-carbon products *R&D and product

products. If we cannot meet them *Direct R&D resources towards green products with Life Cycle Assessment (LCA)

term and technologies; management

this may lead to order losses and a optimization emphasized for CDMO services;

*Downstream: Customer requirements departments

decline in market share. *Conduct full life cycle assessments for key products promote collaborative emission

for product carbon footprint disclosure

reduction in the supply chain and consolidate and expand market share through low-carbon

are responded.solutions.By adopting renewable energy

*Clearly define energy efficiency improvements and clean energy use as a core strategy

and improving energy efficiency *Internal operations: It becomes the *High-energy-

Renewable for cost reduction and efficiency enhancement and prioritize consideration of the energy-

we can reduce operating costs Short and core of emissions reduction and cost consuming

energy and saving payback period of projects in investment decisions;

support the achievement of medium reduction; production units

energy *Coordinate the construction of photovoltaic power plants implement fan upgrades steam

emissions reduction targets and term *Downstream: The “green attributes” of *Plant photovoltaic and

efficiency system optimization and smart energy management and build an efficient low-carbon

produce products with a lower products enhance attractiveness. energy infrastructure

energy supply and use system.environmental footprint.Transition

opportunities *Upstream: Cooperation with R&D Policies such as “Carbon Neutrality” *Biomass energy and

institutions and green technology

guide green consumption and resource recovery *Clearly define green and low-carbon industries as the future growth engine and

companies;

production creating new business project systematically assess the green attributes and market potential of projects in major

Medium *Internal operations: The construction

Market growth opportunities for the *CDMO business units investment decisions;

and long of new green industry production lines

opportunities Company to develop and provide *Strategic cooperation *Actively develop and expand into emerging industries such as resource recycling and

term is driven to promote the integration of

climate-friendly products such as and business biomass energy and expand the low-carbon value chain by providing green CDMO services

LCA assessment into CDMO services;

low-carbon CDMO services and development and conducting industry collaborations.*Downstream: Customers are provided

biomass energy. department

with one-stop green solutions.

43 43 44ABA CAhBeAm iCcahlesm Ciocarplso rCaotiropnorati2o0n25 E2n0v2i5ro Enmnveirnotnaml eSnotcaial lS aoncdia lC oarnpdo rCaoterp Goroavter nGaonvceer n(aEnScGe) (REeSpGo)r tReport Technological Excellence and Green Development and Nourishing Hearts to Forge Sound Governance for

Superior Quality Lead the Future Enduring Protection of Nature Dreams and Advance Together Sustainable Steady Growth

Risk and opportunity management

The Company has established a systematic climate risk and opportunity management process covering

identification assessment prioritization and monitoring which is deeply integrated into comprehensive risk Target content

management strategic planning and daily operations to ensure the effective implementation of climate actions.Absolute emission reduction targets: With 2022 as the base year achieve a 54.9% reduction in

Identification Assessment total Scope 1 and Scope 2 GHG emissions by 2033 reducing emissions by 4610 tCO?e annually.Intensity emission reduction targets: With 2022 as the base year reduce Scope 3 GHG emissions

With reference to authoritative frameworks Based on policy trends market dynamics and from purchased goods and services fuel- and energy-related activities upstream transportation

such as IFRS S2 Climate-Related Disclosures historical data we analyze the likelihood of and distribution and waste generated in operations by 61.1% per ton of product produced by

and the Self-Regulatory Guidelines No. 3 for various risk events occurring and determine 2033 i.e. a reduction of 1.30 tCO ? e in Scope 3 GHG emissions per unit of product.Companies Listed on Shenzhen Stock Exchange their degree of impact from both financial

— Sustainability Reporting Preparation we have and non-financial dimensions; financially we

identified and assessed all stages of the value mainly examine the potential direction of impact

chain through multidimensional inputs including on indicators such as operating revenue and Progress

policy research peer benchmarking and expert operating costs while non-financially we focus

consultation to ensure comprehensive and on factors such as brand reputation and supply Base year (2022) 2025

targeted analysis. chain security thereby forming a qualitative

impact assessment of the identified items. Total GHG emissions (Scopes 1 & 2) (tCO ? e) 85021.70 69477.00

Prioritisation Monitoring

Based on the assessment results we conduct Coordinated by the “Dual Carbon” Management

a comprehensive prioritization based on the Task Force the Energy Management Leadership

likelihood of risks and opportunities occurring Groups at each production base are responsible Improving resource efficiency

and the severity of their potential impacts for local data collection communicating

thereby guiding the effective allocation of relevant work progress and risk changesresources. through monthly meetings. The Company adheres to the resource management concept of “compliance efficiency circularity andsustainability” systematically builds a full-chain management system covering energy and water resources

promotes energy conservation consumption reduction and water resource recycling through institutional

safeguards technological upgrades and the application of clean energy strengthens source control and

refined management effectively reduces resource consumption intensity and comprehensively improves

Indicators and targets utilization efficiency.As one of the first fine chemical enterprises in China to commit to joining the Science Based Targets initiative

(SBTi) ABA Chemicals passed the official rigorous target validation in June 2025. This marks a solid and Energy management

critical step forward for ABA Chemicals in addressing

c l imate change and promot ing susta inable The Company has established a hierarchical and institutionalized energy management system and

development demonstrating our firm commitment to all production bases have formulated the Energy Use Management Policy clarifying the management

participating in global climate action. The Company objectives scope of application and responsibilities of each department. In terms of organizational

strictly follows the scientific methodology required structure a three-tier management system comprising the Company department (workshop) and team

by SBTi to set greenhouse gas emission reduction is implemented. For example the Taicang base has established the Energy Management Leadership

targets in order to proactively adapt to the national Group and its office while the Lanzhou and Nantong bases have designated the Equipment Engineering

strategy of carbon peaking and carbon neutrality Department as the core coordinating department responsible for energy operation and maintenance

and increasingly stringent environmental regulations data statistics and measuring instrument management. In daily operations the Company has established

as well as downstream customers' requirements regular processes for energy data statistics monitoring and reporting and has set up mechanisms for

for supply chain carbon emission transparency and anomaly handling and rectification. During the reporting period the Nantong base passed the ISO 50001

emission reduction performance. Energy Management System certification effectively helping the Company improve the systematicness and

traceability of energy management.

45 45 46ABA CAhBeAm iCcahlesm Ciocarplso rCaotiropnorati2o0n25 E2n0v2i5ro Enmnveirnotnaml eSnotcaial lS aoncdia lC oarnpdo rCaoterp Goroavter nGaonvceer n(aEnScGe) (REeSpGo)r tReport Technological Excellence and Green Development and Nourishing Hearts to Forge Sound Governance for

Superior Quality Lead the Future Enduring Protection of Nature Dreams and Advance Together Sustainable Steady Growth

Clean energy application Type of measure Type of measure Type of measure

In terms of clean energy utilization the Company mainly focuses on solar photovoltaic power generation Binhai Base has installed integrated solar- and wind-powered

and explores green power procurement at some bases. Multiple production bases have built rooftop and lighting fixtures in non-explosion-proof areas; the workshops

Annual electricity savings of

carport photovoltaic projects among which the “Solar Power Generation Project” at the Lanzhou base has an use energy-saving lighting fixtures and Grade 1 and Grade

Energy-efficient approximately 300000 kWh

estimated installed capacity of 600 kW; the Nantong base currently has a photovoltaic installed capacity of 2 energy-efficiency equipment phasing out low-energy-production efficiency equipment.

400 kW and plans to add 500 kW. In addition Binhai Base invested in and constructed a photovoltaic project equipment

with an installed capacity of 1090 kW. At the same time the Company also actively promotes the application In the workshops of the Taicang base lights are replaced with Annual electricity savings of

of photovoltaic power in the field of street lighting. explosion-proof energy-saving LED ones. approximately 1800 kWh

Binhai Base leverages the high temperature and

pressure characteristics of superheated steam from the

combined heat and power plant by installing a new steam Annual steam savings of 300

desuperheating device. The collected steam condensate tons

Waste heat and is reused in steam desuperheating convert ing

pressure recovery superheated steam into saturated steam.Binhai Base recovers and utilizes the latent heat of steam Annual steam savings of 120

condensate in the workshop melting room and for drying. tons

Process Binhai Base promptly adjusts process parameters based

Annual electricity savings of

and system on the performance of the nitrogen generator equipment

150000 kWh

optimization and production load.Solar power generation Solar street lights

Indicators Unit 2025 Standard coal equivalent

Energy conservation targets and measures

Direct energy

)/ tce 441.97 (tce)/

The Company and all production bases have set quantitative energy conservation and consumption reduction consumption

targets and integrated them with long-term development plans. For example with 2022 as the base year the Natural gas m3 261440 287.58

Taicang base aims to reduce comprehensive energy consumption by 5% by 2025; the Nantong base has set

an annual target to save about 5% of energy in 2025. Each production base advances the implementation Diesel kg 19693 28.69

of targets through specific annual key tasks and engineering projects and focuses on systematically tapping

Gasoline kg 85423 125.69

into energy-saving potential from various aspects such as process optimization equipment upgrades building

energy efficiency and system management in its planning to support the realization of the Company's overall Indirect energy )/ tce 19412.81 /

energy conservation and carbon reduction targets. consumption

Purchased

MWh 46283 5688.18

electricity

Type of measure Type of measure Type of measure

Outsourced steam tons 126411.60 13724.63

Nantong Base replaces Roots blowers with air suspension

Projected 30% energy savings Total energy

centrifugal blowers. / tce 19854.78 /consumption

Energy-efficient Energy efficiency Comprehensive

In the Nantong Base Phase III project Grade 1 energy

production improvement rate greater than energy

efficiency motors are exclusively selected. tce/RMB 1 million

equipment 3.7% consumption / 14.88 /revenue

intensity per unit of

revenue

In the workshops of the Taicang base Grade 2 energy

25% energy savings

efficiency motors are replaced. Self-generated

and self-

consumed green / kWh 479424.8 58.92

electricity

47 47 48ABA CAhBeAm iCcahlesm Ciocarplso rCaotiropnorati2o0n25 E2n0v2i5ro Enmnveirnotnaml eSnotcaial lS aoncdia lC oarnpdo rCaoterp Goroavter nGaonvceer n(aEnScGe) (REeSpGo)r tReport Technological Excellence and Green Development and Nourishing Hearts to Forge Sound Governance for

Superior Quality Lead the Future Enduring Protection of Nature Dreams and Advance Together Sustainable Steady Growth

Water resources management Base Recycling and reuse measures Results

The Company has established a systematic and institutionalized water resources management system built First-stage RO membrane reclaimed water Save approximately 20% of water with a

Taicang Base

a three-tier management network comprising the Company departments and teams and formulated special reuse and rainwater treatment system rainwater treatment capacity of 5 tons/hour.systems such as the Water Supply and Usage Management System Wastewater Management System and

Annual cost savings of approximately

Environmental Protection Management System. We have clearly defined the responsibilities of engineering Steam condensate recovery rainwater

Lanzhou Base RMB999600 reducing tap water

production environmental protection and administrative departments. Separate metering and digital collection circulating water optimization consumption.monitoring are implemented and strict compliance is maintained with clean-wastewater separation and rain-

wastewater diversion. In addition emergency ponds and accidental water collection systems are in place Steam condensate reuse and RO Average daily water savings of Nantong Base

forming a complete management mechanism with clear rights and responsibilities standardized procedures product water reuse approximately 174 tons.prevention as the priority and integrated control. Annual recovery of approximately 18000 tons

Binhai Base Steam condensate recovery saving fresh water and reducing wastewater

treatment volume.Water-saving measures

The Company takes “compliance efficiency circularity and sustainability” as the core philosophy of water

resources management incorporates water conservation into our overall consumption reduction strategy

sets clear water conservation targets and continuously promotes the reduction of water consumption per unit

of product and the improvement of the water recycling rate through cleaner production audits.*Implement water metering and quota assessments and incorporate water

consumption into production costs and performance evaluations.Water *Conduct water conservation publicity and education for all employees enhance

conservation their water conservation awareness and eliminate the phenomenon of

management “constantly running water” .*Establish a water consumption data monitoring platform to achieve real-time Nantong Base recycles condensate water for use as cooling tower make-up water

monitoring anomaly analysis and dynamic optimization.Water source protection

*Steam condensate recovery system: Recover all steam condensate as circulatingmake-up water to achieve dual savings of thermal energy and water. The Company consistently adheres to the principles of “lawful utilization internal conservation process*Circulating water system optimization: Increase the cycles of concentration of prevention and control and ecological synergy” . All water used is sourced from compliant municipal water

circulating water and reduce wastewater discharge and makeup water. supplies and permitted surface water sources and by implementing strict clean-wastewater separation

Process and *Process water-saving upgrades: Adopt high-efficiency water-saving technologies

equipment water full-process compliant wastewater treatment and recycling and reuse systems we minimize fresh water such as the reuse of RO product water closed-loop circulation of process water

conservation withdrawal and the risk of pollutant discharge to the greatest extent possible. Meanwhile the Company has

and the replacement of high water-consuming products with water-based

established emergency accident pools and environmental risk emergency plans and actively carries out

formulations.greening and ecological maintenance in the plant area to reduce the potential impact of operations on water

*Equipment upgrades: Use energy-saving equipment such as mixers pumps and

valves and steam traps to reduce system water consumption. sources through systematic and preventive management practices.*Adopt rainwater collection systems in new projects for landscaping dust

Water suppression washing etc.conservation in

*During construction install water meters for measurement and collect and utilize

buildings and

construction rainwater and construction wastewater to reduce freshwater withdrawal.*Promote the use of water-saving faucets showerheads and flushing equipment.

49 49 50ABA CAhBeAm iCcahlesm Ciocarplso rCaotiropnorati2o0n25 E2n0v2i5ro Enmnveirnotnaml eSnotcaial lS aoncdia lC oarnpdo rCaoterp Goroavter nGaonvceer n(aEnScGe) (REeSpGo)r tReport Technological Excellence and Green Development and Nourishing Hearts to Forge Sound Governance for

Superior Quality Lead the Future Enduring Protection of Nature Dreams and Advance Together Sustainable Steady Growth

Strict control of pollution emissions Source control

The Company actively promotes cleaner production and has effectively reduced the generation of pollutants

The Company adheres to ecological priority and combines prevention and control establishing a full life-cycle by improving process flows substituting with environmentally friendly raw materials and increasing material

pollution prevention and control system covering wastewater exhaust gas and waste. Guided by senior management recovery rates.responsibility anchored by institutional standards supported by advanced technology and safeguarded by intelligent

monitoring the Company systematically promotes source reduction process control and end-of-pipe treatment to

ensure 100% compliant disposal of the “three wastes” and continuously reduce our environmental footprint.Operational management

All production bases strictly implement the clean-wastewater separation and rainwater and sewage separation

system install metering instruments to implement refined management and control and introduce third-

Management structure and systems party professional services for the operation of some facilities to enhance the standardization and efficiency

of management.The Company has established a unified environmental management structure across all production bases

comprehensively covering the management of wastewater exhaust gas and waste and forming a multi-level

responsibility network with senior management as the core responsible party the EHS/Environmental Protection

Department as the coordination and supervision center production departments responsible for source control Exhaust gas

and professional teams executing facility operation and maintenance. The Company has established a supportingpolicy system in which the Environmental Protection Responsibility System and the Response Plan for Environmental The Company adheres to a systematic management strategy of “source reduction process control and end-of-pipeEmergencies serve as common guidelines ensuring that management in all areas has rules to follow; at the treatment” combining process optimization closed collection and highly efficient treatment technologies and relies

same time we have formulated special operating procedures for different environmental elements including the on online monitoring and third-party testing to ensure that emissions are controlled in real time. During the reporting

Wastewater Treatment Operating Procedures Exhaust Gas Treatment Operating Procedures Solid Waste Treatment period exhaust gas emissions at all bases consistently and stably met the standards and the actual emissions of

Operating Procedures and Hazardous Waste Management System supplemented by dynamic documents such as major pollutants were below the permitted limits.the annual Hazardous Waste Management Plan realizing standardized and integrated control over the entire process

of the “three wastes” from generation and treatment to discharge or disposal. Aspect Specific measures

*Process improvement: Adopt methods such as hydrogenation processes solvent

substitution and material recovery to reduce pollutant generation from the source.Governance measures and effectiveness

*Enclosure and collection: Enclose equipment storage tanks wastewater ponds

Focusing on wastewater exhaust gas and solid waste the Company implements treatment measures covering etc. and use gas collection hoods and pipeline negative-pressure collection to Source control and

source control process management and end-of-pipe treatment to achieve the stable and compliant discharge of process management control fugitive emissions; the Lanzhou Base implements a leak detection and repair

pollutants and the compliant disposal of waste. program.*Cleaner production: Actively promote cleaner production audits and reduce energy

Wastewater and material consumption and pollutant generation through process optimization.The Company has established a systematic technical and management system for wastewater treatment covering

three levels: treatment processes source control and operational management. *VOCs treatment: Widely apply regenerative thermal oxidation (RTO) activated

carbon adsorption resin adsorption condensation recovery and various combined

absorption processes.Treatment processes

*Acidic/alkaline exhaust gas treatment: Mainly adopt multi-stage alkali absorptionThe Company has established a technical route of “segregated collection classified pretreatment and acid absorption or water absorption processes.combined biochemical treatment” . For high-salinity wastewater refractory organics and characteristic End-of-pipe

pollutants we adopt differentiated pretreatment processes such as evaporative crystallization advanced treatment process

oxidation resin adsorption and micro-electrolysis. In the core treatment stage we widely apply combined *Particulate matter treatment: Adopt equipment such as bag filters.processes of high-efficiency biochemical and advanced treatment technologies such as Fenton oxidation.Each base configures its designed treatment capacity based on actual needs to ensure that the effluent

consistently meets standards. *Technology upgrade: Continuously carry out facility modifications and upgrades to

improve treatment efficiency.

51 51 52ABA CAhBeAm iCcahlesm Ciocarplso rCaotiropnorati2o0n25 E2n0v2i5ro Enmnveirnotnaml eSnotcaial lS aoncdia lC oarnpdo rCaoterp Goroavter nGaonvceer n(aEnScGe) (REeSpGo)r tReport Technological Excellence and Green Development and Nourishing Hearts to Forge Sound Governance for

Superior Quality Lead the Future Enduring Protection of Nature Dreams and Advance Together Sustainable Steady Growth

Aspect Specific measures Waste Reduction and Resource Utilization Measures

Implement the “clean-wastewater separation” and equipment inspection and

Process improvement Technology upgrade Management optimization

maintenance systems and introduce third-party professional operations at some

bases.Operation and

monitoring

Establish a monitoring system based on online monitoring supplemented by regular

manual monitoring by third parties with data connected to the regulatory platform.Solvent recovery and reuse Filter press system upgrade Paperless office recycling of

Key performance by-product purification and reducing sludge yield through packaging materials timely

reuse and raw material the oxidation method. transfer of hazardous waste

The pollutant concentration at the exhaust The actual emissions of some major substitution. and comprehensive utilization of

gas emission outlets of all subsidiaries pollutants are all waste drums.meets the limits of national and below the permitted annual emission

local emission standards. limits stipulated in the pollutant

discharge permit.WasteThe Company has established a full life-cycle waste management system featuring “classified compliance sourcereduction and circular efficiency.” On the basis of ensuring 100% compliant disposal we systematically promote the

coordinated implementation of resource utilization and green operations. During the reporting period the Lanzhou

base reduced costs by over RMB800000 annually through packaging recycling.Waste Sorting and Disposal

Hazardous waste warehouse of Nantong Base

Hazardous waste General industrial solid waste Domestic Waste

100% entrusted to licensed third- Entrusted to licensed entities Centrally collected and

party entities for compliant disposal for comprehensive utilization or transported by the

through incineration physico- disposal with a portion strictly sanitation department.chemical treatment secure landfill or managed according to hazardous

solvent recovery; strictly implement waste standards.qualification review contractual

constraints and the electronic waste

transfer manifest system.

53 53 54ABA CAhBeAm iCcahlesm Ciocarplso rCaotiropnorati2o0n25 E2n0v2i5ro Enmnveirnotnaml eSnotcaial lS aoncdia lC oarnpdo rCaoterp Goroavter nGaonvceer n(aEnScGe) (REeSpGo)r tReport Technological Excellence and Green Development and Nourishing Hearts to Forge Sound Governance for

Superior Quality Lead the Future Enduring Protection of Nature Dreams and Advance Together Sustainable Steady Growth

Management targets and progress Protecting biodiversity

The Company strictly complies with national and local environmental laws and regulations as well as pollutant

Through systematic risk assessment identification of significant environmental factors and preset emergency

discharge permit requirements implements full-process control over wastewater exhaust gas and solidplans the Company has built a full-chain management system covering “risk identification - source preventionwaste and fully achieves compliant discharge waste reduction and efficiency enhancement.and control - process supervision - emergency remediation” and continuously advances seepage control

projects ecological greening and green product research and development to effectively prevent pollution

risks and safeguard the ecological and environmental health of the plant area and its surroundings.With the core goal of achieving a 100% wastewater compliant discharge

rate we implement total quantity control over key pollutants such as COD Source prevention Emergency and control remediation

Wastewater and ammonia nitrogen. During the reporting period none of our bases

management exceeded the standards; the actual discharge volumes of Nantong Base

Shangyu Base Binhai Base and were significantly below their permitted Process Risk supervision

limits achieving stable compliance and effective total quantity control. identification

Assessment and risk identification

The Company systematically assesses the potential impact of operations on land ecology conducts

Upholding stable compliance with emissions standards and promoting specialized soil and groundwater risk assessments and comprehensively identifies pollution risks that may be

deep emissions reductions Nantong Base clarifies its emissions reduction caused by pathways such as leaks and spills throughout the entire process from raw material storage to the

Exhaust gas pathway through a cleaner production audit; the Lanzhou base focuses on treatment of the three wastes. Relying on the environmental factor identification and evaluation procedure

management reducing total non-methane hydrocarbons; and the Taicang base adopts the Company systematically identifies and screens significant environmental factors including land pollution

RTO technology for efficient treatment (with a VOCs removal rate of 97% for focused control. Meanwhile in the response plan for environmental emergencies we proactively envision

or higher). soil and groundwater pollution scenarios and formulate specialized response procedures establishing a

closed-loop assessment system from risk anticipation and factor control to emergency preparedness.We fully implement the Solid Waste Law and establish multi-tier quantified

targets including a 100% compliance rate for hazardous waste disposal Risk anticipation Factor control

Waste

hazardous waste inventory kept below 500 tons with a storage period not

management

exceeding 90 days etc. During the reporting period all production bases

achieved 100% compliant disposal of waste.Emergency preparedness

Protection and restoration measures

The Company has established a multi-level land ecological protection system integrating prevention

control and remediation preventing the spread of pollution at the source and throughout the process by

implementing zoned seepage prevention projects standardizing waste management and carrying out spill

emergency responses. The Company continuously advances ecological greening of the plant area and

develops more soil-friendly green products integrating ecological protection into the entire project lifecycle.Meanwhile we establish a self-monitoring mechanism for soil and groundwater formulate supporting

special emergency response plans and conduct regular hazard inspections to ensure the capability for rapid

remediation and response in the event of pollution.

55 55 56ABA Chemicals Corporation 2025 Environmental Social and Corporate Governance (ESG) Report Technological Excellence and Green Development and Nourishing Hearts to Forge Sound Governance for

Superior Quality Lead the Future Enduring Protection of Nature Dreams and Advance Together Sustainable Steady Growth

Nourishing Hearts

to Forge Dreams

and Advance

Together

We always place “people” at the center of

development build internal synergy with sincerityand connect the external ecosystem with “ForgeDreams and Advance Together” . To this end

we continuously improve the system for the

protection of employee rights and interests

systematically establish growth and development

channels comprehensively build a solid defense

line for health and safety and actively assume

social responsibilities thereby building a

community of shared development where the

Company employees and society grow together

and achieve mutual success.Issues covered in this chapter

*Protection of employee rights and interests

*Employee training and development

*Employee benefits and welfare

*Occupational health and safety

*Social contribution

Contributing to UN SDGsNote: The picture shows ABA Chemicals conducting “Project Management BestPractices Training” at its Shanghai office

57 58ABA CAhBeAm iCcahlesm Ciocarplso rCaotiropnorati2o0n25 E2n0v2i5ro Enmnveirnotnaml eSnotcaial lS aoncdia lC oarnpdo rCaoterp Goroavter nGaonvceer n(aEnScGe) (REeSpGo)r tReport Technological Excellence and Green Development and Nourishing Hearts to Forge Sound Governance for

Superior Quality Lead the Future Enduring Protection of Nature Dreams and Advance Together Sustainable Steady Growth

Protecting employee rights and interests Company employee composition

Number of employees Number of employees by Number of employees

by employment type gender by age

ABA Chemicals strictly adheres to the Labor Law of the People's Republic of China the Labor Contract Law

of the People's Republic of China and other laws and regulations and is committed to exceeding compliance 1192 784

baselines to build a work environment characterized by sound systems smooth communication and care.

411423329

261

182

3

Equal employment

Full-time Part-time Female Male

employees employees employees employees Employees Employees Employees Employees

The Company has established a systematic equal employment and diversity policy system and through aged 29 aged 30- aged 40- aged 50 and under 39 49 and above

institutional safeguards and specific practices fully implements our commitments to anti-discrimination anti-

Number of employees Number of employees by Number of employees by

forced labor and diversity and inclusion. by region hierarchical level education degree

1104975

Policies and regulations 513

306305

The Company has formulated the Human Resources Management System and the Employee Handbook and 173

9171

encourages all subsidiaries to formulate specific policies establishing a clear policy framework. These policy 47

documents formally state that the Company adheres to the principle of meritocracy and equal opportunity Employees Employees Senior Middle General Employees Employees Employees

working working management management employees Employees

throughout all stages of employment strictly prohibits discrimination based on gender age ethnicity with master's with with in China overseas (Vice (Assistant with high degrees and bachelor's associate

President Manager to school

religious belief or any other factors prohibited by law and explicitly declares a zero-tolerance policy against above degrees degreesand above) Director) education and

below

the use of child labor and any form of forced labor strictly complying with national regulations on the

minimum employment age and safeguarding employees' rights to freely choose their employment and control

their labor remuneration.On this basis the Company has established systematic and specific policies and systems for anti- Rights protection

discrimination and diversity anti-child labor and anti-forced labor detailing fair employment measures The Company effectively safeguards the legitimate rights and interests of every employee by establishing a

prohibited acts supervisory responsibilities reporting and grievance channels and measures for handling competitive compensation and benefits system a sound democratic participation mechanism and effective dispute

violations. For example the policies require strict verification of applicants' ages to prevent the employment resolution channels.of child labor prohibit any form of forced labor and ensure that overtime is voluntary and remuneration is

paid in accordance with the law ensuring that the statements are translated into executable and monitorable Compensation and benefits system

management practices. The Company provides a diversified compensation structure comprising base salary performance

bonuses year-end rewards and long-term equity incentives enabling employees to share in our

Diversity and inclusion practices development achievements. At the same time we strictly implement national regulations on social

insurance the housing provident fund and paid annual leave and provide employees with supplementary

The Company is committed to creating an inclusive and equal workplace environment and on the basis of benefits such as supplementary commercial medical insurance annual health check-ups holiday

safeguarding the legitimate rights and interests of female employees such as maternity leave and lactation benefits and birthday care to build an attractive compensation and benefits package.leave in accordance with the law we comprehensively build a female-friendly workplace through measures

such as establishing special training programs ensuring fair promotion opportunities and implementing Democratic management and communication

special care policies for the “three periods” (pregnancy maternity and lactation). At the same time we The Company supports and promotes the establishment and effective operation of organizations such

actively embrace diversity in recruitment and employment and our workforce exhibits rich and diverse as trade unions and employee representative congresses enabling them to play an effective role in

characteristics in aspects such as nationality and region employment type and educational background. collective bargaining benefit distribution hardship assistance and democratic supervision. Through

various channels such as regularly holding department and company-level meetings setting up internal

anonymous suggestion boxes conducting management “walk-around” communication and utilizing

instant messaging groups we build an institutionalized multidimensional communication system to

ensure that employee opinions can be conveyed in a timely manner; all requests and suggestions are

incorporated into the standardized closed-loop process of “receipt - assessment - handling - feedback”

ensuring that every matter is responded to and every item is implemented. At the same time the

Company regards employee satisfaction surveys as an important management tool collecting feedback

through routine surveys conducted at least once a year to identify areas for improvement thereby driving

the continuous optimization of management decisions and the work environment.

59 59 60ABA CAhBeAm iCcahlesm Ciocarplso rCaotiropnorati2o0n25 E2n0v2i5ro Enmnveirnotnaml eSnotcaial lS aoncdia lC oarnpdo rCaoterp Goroavter nGaonvceer n(aEnScGe) (REeSpGo)r tReport Technological Excellence and Green Development and Nourishing Hearts to Forge Sound Governance for

Superior Quality Lead the Future Enduring Protection of Nature Dreams and Advance Together Sustainable Steady Growth

Case The Election for the Second Committee of the Joint Trade Union of Lanzhou Base Successfully Completes Health promotion and education

The Company regularly holds health knowledge lectures as well as occupational health and mental

ABA Chemicals actively promotes the construction of

health training and continuously organizes diversified programs such as sports competitions and

trade unions and democratic management practices

cultural activities to help employees improve their health literacy and relieve stress.and supports employees in exercising their democratic

rights in accordance with the law. During the reporting

period the Lanzhou Base Joint Trade Union formally Work-life balance

convened a member representative assembly at

Through Family Day activities holiday greetings and caring initiatives we enhance employees' sense of

which 68 representatives democratically elected the

belonging support them in balancing career development and family responsibilities and improve their

new trade union committee by secret ballot. The new

happiness and life satisfaction.trade union clearly defined its core responsibilities

as safeguarding the legitimate rights and interests of

employees and serving their needs and established Team cohesion and culture building

the “Employee Suggestion Direct Channel” mechanism

We regularly organize diverse team-building activities and sports events to enrich employees' spare time

to facilitate the translation of frontline wisdom into

and enhance team cohesion.practical management outcomes.Case Uniting the Team through Culture Empowering Development through Activities

Performance appeal mechanism The Company regularly organizes themed team-building activities at various bases every year such as the

“Summer Vibe” BBQ gathering for the R&D team at the Zhangjiang Innovation Center providing employees with

The Company implements an open and fair performance management system and has established formal employee

a relaxed and pleasant platform for communication. During the activity the Company's management engaged

grievance channels. If employees have any objections regarding performance appraisals labor rights or any other

warmly with everyone affirming their hard work and looking ahead to the future together which further bridged

matters they may appeal in writing or through designated channels. The Company commits to investigating and

the distance between them. Meanwhile a variety of enjoyable activities enhanced communication and trust

handling all grievances in a fair and timely manner and strictly protecting complainants from any form of retaliation.among colleagues fostering a warm and inclusive organizational atmosphere.Employee care

Through regular health promotion mechanisms the Company effectively

reduces employee health risks and enhances organizational belonging and

team cohesion and builds a solid backing for employees with a targeted and

in-depth support network.Physical and mental health promotion

The Company regularly organizes health check-ups for all employees

hosts health education lectures and carries out a variety of cultural sports Hardship assistance and careAwarded the title of Outstanding

and team-building activities actively advocating work-life balance to Responsible Care Practitioner in The Company has established a care mechanism for employees facing Key performance

comprehensively promote the physical and mental health of our employees. China's Pesticide Industry for 2025 difficulties and special circumstances aiming to build a timely and robust

support network to serve as a solid backing for employees to cope with

life's challenges. For employees facing unexpected hardships such as critical Number of employees in

difficulty assisted

illnesses or family emergencies the Company and the trade union proactively

Health protection step in to promptly provide care and financial assistance and actively assist 2

We provide regular health checkups for all employees and continue to optimize the working them in connecting with and applying for external charitable resources and

environment strictly implement occupational health protection requirements and grant position social security benefits forming a “Company-Labor Union-Society” tripartite

allowances for special positions; the Lanzhou Base arranges special inspections for personnel exposed coordinated support system. In addition the Company also holds retirement

to occupational hazard factors to ensure a 100% examination rate for occupational health surveillance. ceremonies for retiring employees to honor their long-term contributions;

for employees injured at work we provide accompanying support and

humanistic care throughout the entire process from work-related injury

certification to rehabilitation.

61 61 62ABA CAhBeAm iCcahlesm Ciocarplso rCaotiropnorati2o0n25 E2n0v2i5ro Enmnveirnotnaml eSnotcaial lS aoncdia lC oarnpdo rCaoterp Goroavter nGaonvceer n(aEnScGe) (REeSpGo)r tReport Technological Excellence and Green Development and Nourishing Hearts to Forge Sound Governance for

Superior Quality Lead the Future Enduring Protection of Nature Dreams and Advance Together Sustainable Steady Growth

Growth with employees “Set Sail” Program for new employees

We implement systematic onboarding training covering mandatory three-level safety environmental and health

The Company always regards talent as core capital and is committed to building a systematic and professional education quality awareness corporate culture and rules and regulations and adopt a mentorship model for

employee training and development system that is deeply aligned with our business strategy. With policies as the on-the-job guidance to ensure new employees quickly integrate and start work safely.cornerstone hierarchical and categorized management as the principle and practical results as the orientation it is

continuously enriched and implemented through the distinctive practices of each business unit.Skills strengthening for frontline employees

We provide training around job operating procedures equipment use and safety specifications and implement

annual refresher training. For key positions such as chemical-related roles we strictly implement national

Employee Training requirements for working with certifications ensuring employees possess the professional qualifications and capabilities for compliant operations.The Company has established a training management system covering the entire career lifecycle of employees aiming

to continuously inject momentum into organizational and personal development through knowledge transfer skill Management capability development

enhancement and behavior shaping.The training content covers team building execution capability performance evaluation hazard identification

team management compliance and risk management and we also select senior management members to

participate in external high-end training programs to broaden strategic horizons.Training Management System

The Company has formulated a comprehensive Employee Training Management System and supports our subsidiaries In-depth development for professional tracks

in formulating more detailed operating procedures based on their own characteristics such as the Personnel Training

Operating Procedures and Training Management Procedures. The system specifies the full process of training needs For professional tracks such as technology quality equipment and R&D we continuously provide professional

analysis plan formulation organization and implementation effectiveness evaluation and record archiving forming a knowledge updates and in-depth skills training on advanced instrument operation DCS systems and the latest

standardized management closed loop from the Company's coordination to subsidiary execution ensuring systematic Pharmacopoeia regulations.and sustainable training activities.Targeted Training Diverse Training Methods

The Company has established a multi-level targeted training system for new employees entry-level employees The Company comprehensively utilizes various training methods such as internal training external certification

management and professional-track employees which covers all employees and spans the entire career development mentorship and emergency drills to build a diversified and multi-level talent training system. Among them mentorship

lifecycle systematically enhancing employees' job competency managerial leadership and core professional on-the-job training and systematic compliance training for certified posts have become a distinctive cornerstone for

competitiveness. frontline skill transfer and safe operations. Each subsidiary has also adapted to local conditions creating a number of

highly effective distinctive programs.Case Empowering through Systematic Training Consolidating the Professional Foundation of Project Management

Shangyu Base Taicang base Binhai Base

In September 2025 the Company organized a two-day closed-door training on Project Management Best

Practices. This training covered the Company's leadership and nearly 40 employees from key departments such Shangyu Base implements Taicang base implements Binhai Base has established

as R&D production and quality and reached all bases through live streaming aiming to systematically enhance the “DSS Project Training” the Quality System Special a strong linkage mechanism

organizational project management capabilities. and emergency drill system Improvement Project introduces between training and

significantly enhancing team a third-party professional performance directly

The training is designed around six major

collaboration efficiency organization to restructure incorporated training

modules around the entire project lifecycle

and emergency response system documents and conduct attendance and assessment

and introduces real project cases for

capabilities through cross- company-wide standards results into personal

practical group discussions strengthening

departmental project-based training and systematically performance evaluations and

participants' mastery and application of tools

learning and regular practical strengthens the level of quality eligibility for excellence awards

and methods.drills. management and employees' and effectively enhanced the

quality awareness. binding force and incentives for

learning.

63 63 642025 年环境、Social dimension 及公司 Governance dimension（ESG）报告

ABA CAhBeAm iCcahlesm Ciocarplso rCaotiropnorati2o0n25 E2n0v2i5ro Enmnveirnotnaml eSnotcaial lS aoncdia lC oarnpdo rCaoterp Goroavter nGaonvceer n(aEnScGe) (REeSpGo)r tReport Technological Excellence and GGrerene nD Deveevleolpompmenetn at nadn d NoNuoriusrhisinhgin Hg eHaertasr ttso tFoo Frgoerg e Sound Governance for

Superior Quality Lead the Future EnEdnudruinrign gP rPortoetcetciotino no fo Nf Natautruere DrDearemasm asn adn Add Avdanvacne cTeo gToegtheethrer Sustainable Steady Growth

Training Effectiveness Assessment Governance structure

The Company attaches great importance to the application and evaluation of training effectiveness and systematically The Company has established an occupational health and safety governance structure featuring overall responsibility by

conducts multi-dimensional effectiveness tracking. We conduct learning-level evaluations through post-training the key personnel decision-making and leadership by the Work Safety Committee specific execution by professional

assessments and collect trainees' satisfaction and feedback using the Training Effectiveness Assessment Form. departments and joint participation by all employees forming a safety management system with clear rights and

Some subsidiaries further incorporate training plan completion rates safety performance indicators etc. into the responsibilities and efficient coordination. Each subsidiary has established a Work Safety Committee directly led by the key

departmental performance appraisal system driving the effective extension of evaluations to changes in work behavior personnel of the Company serving as the highest decision-making and leadership body for occupational health and safety

and impacts on business results. All training records are properly archived and linked to employees' personal files work. Committee members include the heads of key functional departments to ensure cross-departmental collaboration

providing data support for talent development capability inventory and continuous improvement. and resource integration. The core responsibilities include approving occupational health and safety policies and objectives

overseeing major risk management deciding on resource investment and reviewing performance reports.Employee Development Daily management responsibilities are undertaken by a dedicated EHS department. As a specialized hub the department is

responsible for the specific operation of the management system including organizing risk identification and assessment

The Company not only focuses on enhancing employees' current capabilities but also emphasizes their long-term

implementing hazard identification and remediation coordinating safety training and emergency drills and managing

career development driving the deep integration of the realization of employees' personal value and organizational

occupational health surveillance records among others.strategic goals through systematic institutional design and continuous resource investment to build a win-win

development pattern. The heads of each production workshop and functional department are the primary persons responsible for safety in their

respective departments team leaders are responsible for on-site safety management and every employee is required to fulfill

Dual-Channel Career Continuous Learning and the safety responsibilities of their position. The Company solidifies responsibilities to individuals by signing the Work Safety

Development System Resource Support Responsibility Letter forming a work safety responsibility network spanning all departments and levels of employees.The Company has established The Company encourages employees to participate

a “dual-channel” career in external technical training and authoritat ive Policy systems

development system with qual i f icat ion cert i f icat ions related to their job The Company uses systematic policy documents and authoritative standardized certifications as dual drivers to consolidate

parallel management and responsibilities and reimburses training expenses the solid foundation for occupational health and safety management. In terms of system construction we have established

professional tracks providing for those who pass the assessments reducing the a comprehensive and clearly tiered management document system including the All-Coverage Work Safety Responsibility

employees with diversified cost of personal development. We focus on building Policy Risk Classification and Control Policy Hazard Identification and Rectification Policy Occupational Health and Hygiene

growth paths based on an internal knowledge management system such Management Policy Emergency Drill Policy and various job safety operating procedures ensuring that safety management

personal expertise interests as the Knowledge Management Procedure and is well-documented and responsibilities are clearly assigned. In terms of standardization certification the Company actively

and career aspirations. Both supporting knowledge base formulated by Shangyu benchmarks against advanced international and domestic standards to continuously improve our management capabilities.channels have clear job Base to systematically accumulate organizational Main production bases have obtained the ISO 45001 Occupational Health and Safety Management System certification and

level standards competency e xpe r i e nce and t e chn i c a l e xpe r t i s e . A t t h e the Lanzhou Base was recognized as a “Level 3 Standardized Safety Production Enterprise (Chemical Industry)” in China.requirements and promotion same time through cross-departmental project

review processes to ensure collaboration internal trainer mechanisms case

the fairness transparency sharing sessions and other forms we foster an Supervision execution and assessment

and scientific nature of the open and shared learning culture creating abundant Routine information reporting and risk assessment are the foundation of supervisory work. The safety departments at each of

promotion mechanism. opportunities for cross-disciplinary communication the Company's production bases regularly prepare performance reports summarizing key data such as the occupational injury

and capability development for employees. rate hazard rectification rate and training completion rate and submit them to the Work Safety Committee and management.At the same time the Company incorporates EHS indicators into assessments at all levels deeply linking safety performance

with individual and departmental interests. At the departmental level safety performance directly affects the overall score; at

the individual level all employees are required to sign the Work Safety Responsibility Letter and their safety performance is

Building a solid safety defense line directly linked to their monthly performance-based salary annual bonuses and awards and promotions.The Company takes the ISO 45001 system as its core integrating institutional regulations hierarchical risk control

hazard identification and governance emergency capability building and regular safety training to build a three- Capability building and integration into decision-making

in-one prevention and control system comprising engineering safeguarding management control and personal The Company strictly implements regulatory requirements to ensure that its key personnel safety management personnel

protection systematically enhancing the level of intrinsic safety and fully solidifying the safety cornerstone for our and special operation personnel complete training in accordance with the law and 100% of them hold certificates for their

high-quality development. posts. For major risk control and complex technological upgrades we actively introduce external professional expertise. For

example Shangyu Base explicitly stipulates that senior chemical experts must be engaged to provide on-the-side guidance

Governance dimension when addressing hidden dangers related to the “two key and one major” issues thus enhancing the professional depth andGuided by the responsibilities of the Board of Directors and management the Company through an organizational reliability of internal risk management. In terms of management mechanisms the Company fully implements the “Threestructure with clearly defined rights and responsibilities an institutional system certified by international standards a Simultaneities” policy for construction projects and re-conducts hazard identification and risk assessment after process

strictly binding assessment mechanism and risk management and control processes deeply integrated into strategic changes equipment introductions major operational adjustments or accidents. The work safety committees of all subsidiaries

decision-making ensures that safety requirements run through the entire production and operation chain and cover regularly review safety strategies targets and resource investment to ensure that occupational health and safety issues are

all employees and the entire process. effectively integrated into high-level decision-making and resource allocation processes.

65 65 6666ABA CAhBeAm iCcahlesm Ciocarplso rCaotiropnorati2o0n25 E2n0v2i5ro Enmnveirnotnaml eSnotcaial lS aoncdia lC oarnpdo rCaoterp Goroavter nGaonvceer n(aEnScGe) (REeSpGo)r tReport Technological Excellence and Green Development and Nourishing Hearts to Forge Sound Governance for

Superior Quality Lead the Future Enduring Protection of Nature Dreams and Advance Together Sustainable Steady Growth

Strategy Risk control and emergency preparedness

The Company has established a “three-in-one” systematic occupational health and safety prevention and control

During the Reporting Period the Company systematically managed potential safety risks such as work safety risks system covering engineering management and individuals. At the engineering level project design prioritizes

operational and governance risks legal and policy risks and market and reputational risks ensured the effective the adoption of intrinsically safe technologies. For example Nantong Base has replaced traditional batch reactor

implementation of work safety targets through target breakdown and dual-dimensional qualitative and quantitative processes with microchannel continuous-flow technology and has equipped workplaces involving toxic and

assessments established a three-in-one prevention and control system integrating engineering management and hazardous operations with protective facilities such as ventilation and exhaust systems leak detection alarms

individuals and continuously enhanced the safety capabilities of all employees through comprehensive training and emergency washing stations. At the management level we strictly implement special regulations such as

effectively responding to safety risks. the Special Operation Safety Management Policy Occupational Health Surveillance Policy Hazardous Chemicals

Safety Management Policy and Precursor/Explosive Chemicals Management Policy. At the individual level based

Risk type Risk description Impact duration Financial on job risk assessments we provide employees with labor protection equipment such as protective clothing impact

protective glasses and gas masks and mandate their standardized wearing. On this basis the Company has

formulated the Comprehensive Response Plan for Environmental Emergencies and special emergency plans for

Fire explosions toxic and hazardous chemical leaks

Short term fires leaks and poisoning specifying an emergency organizational structure with the key personnel acting as the

mechanical injuries etc. may cause production interruptions

Work safety risks medium term High general commander early warning reporting processes and a tiered response mechanism. We conduct at least

and casualties in the short term and may lead to major

long term two emergency drills annually and through post-drill evaluations summaries and plan revisions we continuously

accidents in the long term. enhance our emergency response capabilities.Insufficient employee training inadequate implementation Short term

Operational and Safety training and technical empowerment

of systems poor contractor management etc. may cause medium term High

governance risks

human errors and systemic failures. long term The Company regards safety training as a routine practice and has established an occupational health and safety

training system that is comprehensive diverse in format strictly assessed and strongly linked to performance

ensuring the continuous improvement of all employees' safety awareness and emergency response capabilities.The continuous upgrading of national and local work safety

Short term

and occupational health regulations and standards may

Legal and policy risks medium term Moderate

lead to rising compliance costs and increased pressure for Training content Training formats

long term

technological transformation.Covering laws and regulations the Company's safety Including classroom lectures practical drills online

policies job operating procedures risk identification learning and team activities. New employees are

Safety accidents or occupational disease incidents may Short term and control knowledge on occupational disease required to complete the “three-level safety education”

Market and

damage the Company's reputation customer relations medium term Moderate prevention and control emergency escape and rescue and pass the assessment before taking up their

reputational risks

supply chain and financing. long term skills and accident cases. positions and existing employees are retrained regularly.Target setting and progress assessment Assessment mechanism Contractor coverage

The Company effectively translates strategic visions such as “zero incidents” into actionable annual plans and Post-training assessments are conducted and those Contractors' employees are included in the unified

special programs. For example Nantong Base formulated 28 specific safety goals across six major dimensions who fail may not take up their posts. The training plan safety management system and are required to receive

the Lanzhou base issued the Implementation Scheme for the Occupational Disease Prevention and Control Plan completion rate and assessment pass rate are included specialized safety training before entering the site.and Shangyu Base introduced the Quality and EHS Objective Assessment Form to break down goals to various in departmental and individual performance appraisals During the reporting period Nantong Base conducted

departments on a monthly basis. In terms of progress tracking the Company adopts a dual-dimensional evaluation to ensure that safety training is strictly implemented. 43 training sessions for 24 contractors.mechanism combining qualitative and quantitative methods. The qualitative aspect focuses on policy implementation

inspections quarterly reviews by the Work Safety Committee emergency drill evaluations ISO 45001 internal audits

and the achievement of milestones such as major safety technological upgrades. The quantitative aspect uses Key performance

key performance indicators to continuously drive safety performance improvement through monthly reporting and

assessment mechanisms forming closed-loop management from strategy to execution and from process to results. The company systematically introduced the safety management improvement project

of dss+ a global operations management consultancy with a cumulative investment of

over ten million RMB.

67 67 68ABA CAhBeAm iCcahlesm Ciocarplso rCaotiropnorati2o0n25 E2n0v2i5ro Enmnveirnotnaml eSnotcaial lS aoncdia lC oarnpdo rCaoterp Goroavter nGaonvceer n(aEnScGe) (REeSpGo)r tReport Technological Excellence and Green Development and Nourishing Hearts to Forge Sound Governance for

Superior Quality Lead the Future Enduring Protection of Nature Dreams and Advance Together Sustainable Steady Growth

Case Continuous Investment in Systematic Safety Training to Build a Solid Foundation for Long- Cultural activities and awareness enhancementTerm Development

The Company always puts production safety first and is committed to building a regular safety training system The Company combines warning education with skill honing through formats such as themed promotion days

covering all employees and running throughout operations. Since 2020 the Company has cumulatively and practical competition months driving the transformation of safety responsibility from concept promotion into

invested over RMB10 million established a long-term partnership with dss+ a global operations management conscious action.consultancy and systematically introduced its safety management improvement project. In 2025 the Companyinitiated Phase II of its Lanzhou base project implementing tiered training under the theme of “capacitybuilding” . The program aims to develop visible leadership among senior managers enhance professional Case Building a Solid Foundation for Safety Culture and Fulfilling the Commitment to Employee Care

management competencies for mid-level managers and reinforce operational risk control skills among frontline

employees. Through systematic and customized training practices we seek to deeply integrate advanced safety During the reporting period the Nantongconcepts and methods into the daily work at all levels and continuously consolidate the Company's safety Base successfully held the sixth “Work Safetyculture. Promotion Day” event with the theme of

“United for Safety Practicing Together” . The

event included management clarifying the

“zero incident” goal and taking the lead in

making a pledge deepening warning education

through accident case analysis and safety short

films organizing all employees to sign safety

commitments promoting the implementation of

responsibilities and customizing and distributing

practical protective equipment such as smoke

masks to deepen all employees' awareness of

safety responsibilities.Scene of the DSS Phase II Project Kick-off Meeting at Lanzhou Base

Case ReinforcingSafetyThroughTraining-by-Competition andStrengtheningEmergencyResponse Capabilities

Case BuildingaSolidSafetyDefenseLinethroughSystematicReturn-to-WorkTrainingforAll In June 2025 the Lanzhou Base carried out a series of “Safety Month” activities establishing an integrated Employees

training system of “learning practice competition and application” . The activities covered five major practical

After the 2025 Spring Festival the Company exercises including a safety knowledge competition the donning of positive-pressure air respirators specialsystematically organized the “First Lesson on work permit management simulations two-person rescue collaboration fire extinguishing equipment useResuming Work” safety training for all employees comprehensively honing employees' theoretical knowledge and emergency response skills. The Company

across our global production bases including sparked enthusiasm for participation through the competition commended outstanding performers and

Lanzhou Nantong Binhai Shangyu and Malta. promoted the translation of experience into practice while planning subsequent tiered training system

Across all production bases the Company reinforcement and collaborative hazard governance mechanisms committing to transforming the mindset from

strengthened employees' safety awareness and “I am required to be safe” to “I want to be safe” .adherence to operational standards through a

variety of methods such as all-staff meetings

screening of safety incident warning videos

and detailed guidance on safety operating

procedures. The heads of each base emphasized

that safety is an uncrossable bottom line Start-of-work Training at Lanzhou Base

and encouraged employees to engage in the

new year's work with safety as a prerequisite.This regular training mechanism covering all

employees and featuring engaging formats laid

a solid foundation for robust operations and

sustainable development throughout the year.

69 69 70ABA CAhBeAm iCcahlesm Ciocarplso rCaotiropnorati2o0n25 E2n0v2i5ro Enmnveirnotnaml eSnotcaial lS aoncdia lC oarnpdo rCaoterp Goroavter nGaonvceer n(aEnScGe) (REeSpGo)r tReport Technological Excellence and Green Development and Nourishing Hearts to Forge Sound Governance for

Superior Quality Lead the Future Enduring Protection of Nature Dreams and Advance Together Sustainable Steady Growth

Fulfilling social responsibility

Risk management The Company has always regarded fulfilling social responsibility as an important part of our corporate mission. We

integrate into the local economy by empowering regional development promote industry progress by empowering

In accordance with the Risk Classification and Control Policy each subsidiary of the Company established a industry-academia innovation and give back to the community through dedicated volunteer services committing to

dedicated assessment team led by the Safety Department in collaboration with functional departments such as becoming a trusted social citizen.production technology and equipment to systematically conduct risk identification and assessment. During the risk

identification stage methods such as Job Hazard Analysis (JHA) Safety Checklist (SCL) and Hazard and Operability Empowering regional development

Analysis (HAZOP) are comprehensively applied. During the risk rating stage the Job Condition Risk Assessment

(LEC) method or the Risk Matrix Analysis (LS) method is adopted to scientifically evaluate the likelihood of accidents While deepening the layout of core businesses the Company actively integrates our development into the national

the frequency of personnel exposure and the severity of consequences through semi-quantitative or quantitative coordinated regional development strategy empowering local industrial upgrading and high-quality development

approaches calculate risk values and accurately determine risk levels. The Company requires organizing a through systematic practices.comprehensive risk assessment at least once a year and immediately initiating a dynamic reassessment in the event

Industrial investment and results transformation

of changes in laws and regulations major adjustments to processes or equipment and safety accidents to ensure

the continuous effectiveness of risk control measures. Through substantial investment and project implementation we have brought momentum for regional industrial

Strictly based on the risk assessment results the Company classifies risks into four levels— red orange yellow development. The pilot-scale and production base built in Lanzhou New Area successfully promoted theand blue and implements priority ranking and differentiated resource allocation according to the principle of “the implementation of multiple projects including antiviral drugs enabling the first local industrial application ofhigher the risk the higher the control level.” Meanwhile we have established a multi-level supervision and inspection original scientific and technological achievements and injecting fixed-asset investment and high-value industrial

opportunities into the region.network covering “Company-level monthly comprehensive inspections department-level weekly special inspectionsand team- and post-level daily patrols” to monitor risks in real time. We have also promoted the construction of

Introduction of green technologies and industrial upgrading

information-based management and control platforms at Nantong Base Taicang Base etc. to further enhance real-

time risk monitoring and early warning capabilities. We introduce advanced green chemistry processes into our production bases. Technologies such as

continuous-flow reactions and biocatalysis which have been successfully applied at the Lanzhou base provide

Indicators and Targets practical technical pathways and demonstrative models for the green and low-carbon transformation of the local chemical industry.Based on national laws and regulations management system standards such as ISO 45001 and our operational

needs the Company has set clear and measurable targets and tracks progress through rigorous monitoring and Benchmark Demonstration and industry chain enablement

assessment mechanisms. During the reporting period the Company largely achieved its key targets.Our projects characterized by “precise equipment matching high transformation efficiency and a steady paceof industrialization” have been recognized by local governments as benchmarks for effective investment

Indicators Unit 2025 target 2025 achieved value attraction. This successful model provides a replicable example for local investment promotion and industrial

chain development serving as a catalyst for broader industrial agglomeration.Serious injury Cases 0 0

Minor injury Cases 1 0 Government-enterprise collaboration and ecosystem co-construction

Work-related illness and injury Case 0 0 We focus on building a deep collaborative relationship with local governments by proactively aligning with

local industrial policies and actively obtaining government support in approvals services and other areas

Major process safety incidents such as fire working together to optimize the regional industrial ecosystem. On this basis both parties explore innovative

explosion and leakage Cases 0 0 mechanisms such as jointly establishing technology-sharing platforms aiming to integrate our technological

capabilities and innovation resources more deeply into the regional development system and jointly enhance

Identification of hazards and the list of major Time Once/year 1 overall industrial competitiveness.hazards and timely update rate

On-time completion rate of emergency drills % 100 100 Cross-regional experience sharing and cooperation

Employee safety training coverage % ≥ 95% 100 By systematically hosting government delegations from various regions and facilitating two-way exchanges

the Company exports its mature models and experiences in technology transfer green production and

Pass rate of new employees in the three-level park operations across regions. This approach not only provides different regions with replicable pathways

safety induction training % 100 100 for industrial upgrading but also promotes resource and information alignment between regions helping

local authorities identify development opportunities and optimize industrial layouts. In doing so we foster a

Employee health checkup implementation rate Time Once/year 1 collaborative industrial ecosystem on a broader scale enhancing regional competitiveness.

71 71 72ABA CAhBeAm iCcahlesm Ciocarplso rCaotiropnorati2o0n25 E2n0v2i5ro Enmnveirnotnaml eSnotcaial lS aoncdia lC oarnpdo rCaoterp Goroavter nGaonvceer n(aEnScGe) (REeSpGo)r tReport Technological Excellence and Green Development and Nourishing Hearts to Forge Sound Governance for

Superior Quality Lead the Future Enduring Protection of Nature Dreams and Advance Together Sustainable Steady Growth

Supporting industry-academia innovation High-level academic empowerment

The Company has long supported the cultivation of scientific and technological talent and by establishing special Since 2016 the Company has annually sponsored

awards and building industry-academia platforms we continuously support cutting-edge scientific research and Fudan University's Jin Si Lecture Series consistently

the transformation of research achievements injecting a core talent driving force into industry innovation and empowering high-end chemical research by

sustainable development. establishing a global top-tier academic exchange

platform. Each year the Jin Si Lecture Series

Cultivating young scholars committee invites 3-6 internationally renowned

scientists in the field of chemistry to engage in in-

The Company has consecutively sponsored the “China Homogeneous Catalysis Prize for Young Scholars” for depth discussions on core topics such as “Latestmultiple sessions systematically supporting the development of young scholars and creating an innovation Advances in Chemistry” “Strategic Thinking onplatform for industry-academia collaboration. By continuously promoting cutting-edge research in catalytic Disciplinary Development” and “Major Frontierscience the Company is committed to driving the green and efficient transformation of relevant results into Issues in the Discipline.” These discussions not only

fields such as pharmaceuticals and new materials empowering sustainable innovation in the industry through focus on breakthroughs in fundamental theories

practical investment and fulfilling our long-term responsibility for technological development and talent but also emphasize interdisciplinary integration and

cultivation. the potential for result transformation. Additionally

guest lecturers are awarded the Wu Zhengkai

Chemistry Prize supported by donations from the

Company's Chairman Cai Tong further incentivizing The 32nd Jin Si Lecture: Professor Fan Chunhai Academician

scientific innovation. of the Chinese Academy of Sciences Delivers a Repor

Volunteer services

The Company actively organizes and participates in various volunteer activities continuously deepens community

engagement and demonstrates social value and humanistic care. During the reporting period after Yuzhong

County in Lanzhou suffered severe flash floods the Company immediately dispatched urgently needed supplies

In June 2025 the Company's Director Dr. Xu Jun presented awards to the winners of the seventh such as raincoats disinfectants and protective clothing to assist the disaster area ensuring the basic livelihood

“Young Scholar Award” at the 18th National Conference on Homogeneous Catalysis. of the affected people and demonstrating corporate responsibility in times of crisis. Meanwhile the Company

responded to the call of Lanzhou New Area and organized employees to participate in voluntary tree planting

activities supporting regional ecological civilization through practical actions.Co-developing teaching bases

The Company opens its corporate laboratories and advanced equipment to students with technical experts

delivering specialized lectures based on real-world industry cases. These sessions incorporate interactive

elements such as group discussions and hands-on experiences offering students immersive learning scenarios

that bridge theory and practice thus contributing significantly to talent development.Jieyang No. 1 High School's “Huang Xuhua Class” Visits ABA Chemicals Supporting Disaster Relief in Yuzhong Participating in Voluntary Tree-

County Lanzhou Planting Activities

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Superior Quality Lead the Future Enduring Protection of Nature Dreams and Advance Together Sustainable Steady Growth

Sound Governance

for Sustainable

Steady Growth

We firmly believe that only by taking the right

path can we achieve long-term success. To this

end we have systematically built a modern

corporate governance structure strictly adhered

to compliance baselines and high standards

of business ethics and actively embraced the

intelligent manufacturing transformation centered

on digitalization thereby forging a core synergy

that drives the steady progress of the Company.Issues covered in this chapter

*Corporate governance

*Compliant operations

*Adherence to business ethics

*Digital transformation

Contributing to UN SDGs

Note: The picture shows ABA Chemicals Taicang Base

75 75 76ABA CAhBeAm iCcahlesm Ciocarplso rCaotiropnorati2o0n25 E2n0v2i5ro Enmnveirnotnaml eSnotcaial lS aoncdia lC oarnpdo rCaoterp Goroavter nGaonvceer n(aEnScGe) (REeSpGo)r tReport Technological Excellence and Green Development and Nourishing Hearts to Forge Sound Governance for

Superior Quality Lead the Future Enduring Protection of Nature Dreams and Advance Together Sustainable Steady Growth

Strengthening corporate governance Board independence

The Company has always regarded improving governance as the foundation of high-quality development. By strictly The Company attaches great importance to strengthening the independence of the Board of Directors.complying with laws and regulations continuously optimizing the governance structure improving the policy system Through a balanced Board composition well-defined institutional arrangements and effective performance

and strengthening standardized operations and effective checks and balances we comprehensively enhance governance mechanisms it ensures that independent directors can effectively exercise their supervisory and

effectiveness and provide a solid guarantee for shareholder value creation. counterbalancing roles in corporate governance.Governance structure

The Company strictly complies with laws regulations and normative documents such as the Company Law of the People's Balanced Board composition

Republic of China the Securities Law of the People's Republic of China and the Code of Corporate Governance for Listed

Companies and continuously improves the modern corporate governance structure centered on the General Meeting of Our sixth Board of Directors comprises nine directors of whom three (33.3%) are

Shareholders the Board of Directors and the operational management. By establishing and improving the policy system independent directors and one is an external director. The independent directors serve

optimizing decision-making mechanisms and strengthening supervisory functions we ensure that all governance bodies have as chairpersons of the Nomination Committee Audit Committee and Remuneration and

clear rights and responsibilities operate in a standardized manner and maintain effective checks and balances. Appraisal Committee respectively do not hold any positions in the Company other than

To enhance the scientific and professional nature of decision-making the Board of Directors of the Company has established director or any positions in the controlling shareholder de facto controller or their related

four specialized committees namely the Strategy and Decision-Making Committee the Audit Committee the Nomination parties and possess the independence required to perform their duties.Committee and the Remuneration and Appraisal Committee. All committees perform their duties in accordance with the

Articles of Association of the Company and their respective working rules providing professional advice and decision-making

support to the Board of Directors. In June 2025 the Company systematically revised reviewed and approved the Rules of Well-defined institutional arrangements

Procedure for the Board of Directors and the working rules for the specialized committees under the Board of Directors

further detailing procedural rules clarifying the boundaries of responsibilities and optimizing the decision-making process

We have formulated and implemented the Independent Director Working System which

making our corporate governance operations more standardized operable and forward-looking.stipulate the functions and powers qualifications duty performance methods and

safeguard measures for independent directors. The Board's Nomination Committee is

Board development responsible for the selection and review of independent director candidates during the

director appointment process.The Company's Board of Directors continuously strengthens its own capacity building promotes diversity improves the

operation of specialized committees fully leverages the role of independent directors and effectively fulfills its functions of

strategic guidance scientific decision-making and supervision.Effective performance mechanisms

Board effectiveness Our independent directors attend meetings of the Board and its specialized committees

In 2025 the Board of Directors of the Company adhered to the core principles of diligence and responsibility standardized in accordance with the law and participate in the deliberation of major matters such as

operation and scientific decision-making and efficiently fulfilled the core functions of corporate governance. The Board periodic reports use of proceeds external investments related-party transactions and

successfully completed the election for its sixth session elected the Chairman in accordance with the law and reviewed appointment of senior executives.and approved the proposal on the appointment of the General Manager and other senior executives effectively ensuring

the smooth transition of the management and the continuity of strategy execution. To adapt to the new Company Law

and changes in the regulatory environment the Board of Directors systematically revised more than 20 core governance

documents including the Articles of Association the Rules of

Procedure for the Board of Directors the Independent Director

Working System the Information Disclosure Management System

and the Internal Control Policy continuously improving the internal

control system. During the reporting period the Company held a

total of nine Board of Directors meetings reviewed and approved 44

proposals with a director attendance rate of 99% fully reflecting the

Board's strong sense of responsibility and high efficiency in decision-

making. In addition the directors strictly exercised their powers in

accordance with the Company Law the Articles of Association and the

rules of procedure carefully reviewed major matters such as periodic

reports the use of proceeds external investments and related-party

transactions and actively utilized their professional backgrounds to

participate in discussions and provide constructive opinions.

77 77 78ABA CAhBeAm iCcahlesm Ciocarplso rCaotiropnorati2o0n25 E2n0v2i5ro Enmnveirnotnaml eSnotcaial lS aoncdia lC oarnpdo rCaoterp Goroavter nGaonvceer n(aEnScGe) (REeSpGo)r tReport Technological Excellence and Green Development and Nourishing Hearts to Forge Sound Governance for

Superior Quality Lead the Future Enduring Protection of Nature Dreams and Advance Together Sustainable Steady Growth

Board diversity Investor relations

In the nomination and appointment of directors the Company adheres to the core principle of enhancing The Company attaches great importance to investor communication adhering to the principles of

the overall decision-making efficiency of the Board taking into account the complementarity of members in compliance transparency equality and proactiveness. Leveraging a robust policy system and diversified

terms of professional experience knowledge structure industry background and performance capabilities. In communication channels it continuously enhances the quality of information disclosure and interaction

the Working Rules for the Nomination Committee of the Board of Directors the Company explicitly requires effectiveness and actively fosters long-term stable and mutually trusting investor relations.that when selecting director candidates emphasis shall be placed on the integration of diverse dimensions

to promote a Board composition that is well-structured collaboratively capable and diverse in perspectives.Meanwhile the Company arranges director terms reasonably ensuring governance stability and continuity

while creating conditions for the introduction of new ideas and perspectives. Information disclosure

The new Board members' backgrounds span pharmaceutical R&D fine chemicals financial management information disclosure and has established a comprehensive internal control system with the Information

corporate strategy and compliance governance. Several directors have years of experience in the governance Disclosure Management Policy at its core supported by the Insider Registration Management Policy and

of listed companies or professional technical expertise effectively supporting the Company's professional the Internal Reporting Policy for Material Information. By designating the Board Secretary as the person

judgment and efficient decision-making on key issues such as CDMO business expansion the advancement directly responsible and the Board Office as the executing department and mandating all departments and

of the “2+X” strategy internal control optimization and ESG system development. subsidiaries to internally report material information “at the first opportunity” the Company ensures the

timeliness and accuracy of information disclosure at the source. During the reporting period the Company

published 4 periodic reports and 144 interim announcements which truthfully accurately and completely

2025 Company Board of Directors Composition reflected our operating conditions at different periods throughout the year as well as various day-to-day

material events emergencies etc. None of the announcements required any corrections.Board diversity by

Board diversity by gender Board diversity by age educational background

Investor communication

2 2 5 1 The Company has established a systematic communication framework in accordance with the Investor Relations

Management Policy with the Board Secretary as the person in charge and the Board Office as the executive

department to ensure the compliance equality and proactiveness of communication. The Company maintains

frequent interaction with investors on issues such as development strategy operating performance and ESG

progress through multiple channels such as the Shenzhen Stock Exchange's e-interaction platform the investor

7 7 3 hotline earnings briefings and the investor relations section on our official website. During the reporting period

the Company proactively responded to various investor requests attentively answered 172 investor questions

Female 40-49 Bachelor's degree or below on the e-interaction platform and actively answer investors' calls. We successfully held 1 performance briefing

Male Above 50 Master's degree organized six investor research activities which received a total of 87 investor visits further solidifying the bridge

for in-depth communication between the Company and investors.Doctoral degree

Date Method Number of Participants

Remuneration policy for Directors and Investors participating in the online results May 2025 Online platform presentation

Senior Executives

June 2025 Site visit 2 institutions

The Board has established a Remuneration and Appraisal Committee responsible for formulating June 2025 Site visit 3 institutions

and reviewing remuneration policies and schemes for directors and senior executives. The committee

establishes clear appraisal standards conducts performance evaluations for senior executives and closely July 2025 Site visit 12 institutions and individual investors

links remuneration to the Company's performance and individual fulfillment of duties. To strengthen the

binding force and compliance of remuneration management the Company has established a remuneration August 2025 Site visit 10 institutions

withholding and reclaim mechanism. When a senior executive commits gross negligence or intentional

misconduct and thus causes significant losses to the Company results in substantial regulatory penalties August 2025 Telephone conference 27 institutions

for the Company due to his/her personal responsibility or is involved in serious misconduct such as

misstatements in financial reporting or performance falsification the Company has the right to reclaim the November 2025 Site visit 21 institutions

relevant remuneration already paid.

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Superior Quality Lead the Future Enduring Protection of Nature Dreams and Advance Together Sustainable Steady Growth

Compliant and prudent operations Strategy

The Company integrates the philosophy of compliant and prudent operations into corporate governance and As the cornerstone of robust corporate operations and sustainable development compliance management

daily management and by improving the internal control system perfecting the risk management mechanism is directly related to a company's risk prevention and control capabilities and long-term value creation. The

and strengthening policy execution and audit supervision we systematically build a closed-loop compliance Company deeply recognizes that a sound compliance system is not only the fundamental guarantee for

management system covering all businesses and processes to effectively ensure our compliant and prudent lawful corporate operations but also a key support for enhancing internal governance effectiveness and

operations. strengthening market trust. Facing an increasingly complex internal and external regulatory environment

the Company integrates compliance management into the strategic level of corporate governance and is

committed to building a systematic standardized and efficient compliant operation mechanism. In response

Governance dimension to potential compliance risks the Company strictly complies with the Basic Norms for the Internal Control

of Enterprises and relevant laws and regulations and has established a compliance system centered onThe Company has established a three-tier compliance governance comprising the “supervisory level thethe Internal Control Policy and the Internal Audit Management Policy. We have clarified the compliancemanagement level and the execution level.” With clear roles and responsibilities at each level it forms an

requirements and control responsibilities for various business processes ensuring the effective connection

effective closed loop of supervision management and execution.and coordinated operation of internal control and internal audit and providing a solid guarantee for the

To ensure the effective operation of this framework the Company has established a systematic safeguard sustainable and healthy development of the Company.mechanism. In terms of the deliberation and supervision mechanism the Audit Committee supervises the

Audit Department in conducting special inspections on major matters such as the use of proceeds related

party transactions and external guarantees at least every six months and listens to the Audit Department's Financial

work report at least once a quarter. In terms of continuous monitoring and governance the Company Risk type Risk description Impact duration impact

requires the establishment of internal control processes spanning all major business processes and conducts

continuous supervision and regular evaluation through internal audits. Upon identifying deficiencies we urge Inadequate Failure to effectively identify existing or potential compliance Short term

the responsible departments to formulate and implement rectification measures. In terms of the reporting compliance risk risks in business operations may result in the Company medium term High

and review mechanism while reviewing the annual report the Board of Directors is required to review and assessment being exposed to compliance risks. long term

disclose the Internal Control Evaluation Report formulated based on internal audit results thereby forming

closed-loop management from daily supervision to annual summary to ensure continuous optimization.Inadequate Inadequate compliance policies or insufficient enforcement Short term

compliance review may result in the Company breaching applicable laws and medium term High

Compliance Governance Structure and supervision regulations. long term

*Board of Directors: It bears ultimate responsibility for the establishment

improvement and effective implementation of our internal control

Board of system.Supervisory Directors *Audit Committee: As authorized by the Board it is responsible for

level and its Audit supervising and evaluating the effectiveness of internal and external

Committee audit work and internal controls leading and supervising the work and

reviewing the reports of the Audit Department and issuing evaluation

opinions on the effectiveness of internal controls.*They are responsible for organizing and implementing at the Company

Management Senior level the risk management and internal control policies formulated by

level Executives the Board and ensuring their integration into day-to-day operations and

management.*Functional departments and controlled subsidiaries: They are

Functional responsible for specifically implementing control activities in their

departments operations and conducting daily risk identification and response.Execution controlled *Audit Department: It is independent of operating departments and

level subsidiaries reports directly to the Board's Audit Committee. It is responsible for

Audit conducting independent and objective supervision inspection and

Department evaluation of our internal control risk management and financial

information among others.

81 81 8282ABA CAhBeAm iCcahlesm Ciocarplso rCaotiropnorati2o0n25 E2n0v2i5ro Enmnveirnotnaml eSnotcaial lS aoncdia lC oarnpdo rCaoterp Goroavter nGaonvceer n(aEnScGe) (REeSpGo)r tReport Technological Excellence and Green Development and Nourishing Hearts to Forge Sound Governance for

Superior Quality Lead the Future Enduring Protection of Nature Dreams and Advance Together Sustainable Steady Growth

Risk management Adherence to business ethics

The Company establishes a systematic risk management mechanism and through the dual drivers of standardized

The Company adheres to operating with integrity and ethical conduct and takes business ethics as

processes and culture cultivation comprehensively enhances the capabilities in compliance risk identification

response and continuous improvement. the cornerstone of corporate development. By refining policies clarifying responsibilities strengthening

supervision conducting all-staff training and implementing effective whistleblowing mechanisms we

systematically build an anti-corruption and compliance defense line covering all businesses and processes

Compliance risk management resolutely eliminate commercial bribery and unfair competition and continuously consolidate the ethicalThe Company has established a closed-loop risk management procedure spanning “identification-assessment- foundation for our high-quality development.response-monitoring” to achieve dynamic management and effective response to all major risks systematically

enhancing our overall risk resilience.Risk identification Risk assessment Governance dimension

Identify risk factors that may hinder the achievement Classify risks into “negligible” “general” and

of the Company's objectives impede value creation “significant” based on their likelihood of occurrence The Company has established a systematic business ethics governance structure featuring “supervision byor erode existing value from the perspectives of the and potential impact on the Company's objectives. the governance level execution by the executive level and participation by all employees” comprehensively

macro environment management processes strategic covering key areas such as anti-corruption anti-commercial bribery anti-unfair competition and anti-

decision-making information internal and external monopoly ensuring that compliance requirements are integrated throughout the entire process of decision-

operating conditions and sustainable development. making execution and daily operations.Business Ethics Governance Structure

Risk monitoring Risk response

Prepare risk assessment management documents Determine risk response strategies based on the

track and control relevant risks and design internal risk analysis results and underlying causes to Level Composition Responsibilities

control policies and measures based on the Company's avoid accept mitigate or share risks.business objectives and the needs of its business Board of Directors

characteristics. Governance and Approve policies supervise system effectiveness and make and Audit

supervisory level decisions on major matters.Committee

Cultivating a compliance culture Lead annual anti-corruption/anti-unfair competition audits Audit Department

examine policies and promote rectification.The Company conducts specialized training using the continuously updated Internal Control Manual as the core

training material deeply embedding compliance requirements into business processes and strengthening the Review legal and compliance-related issues resolve disputes Legal Department

compliance awareness of all employees. At the same time the Company incorporates the implementation of and archive cases.internal controls into the performance appraisals of all departments and subsidiaries and leverages regular internal Functional and

control audit projects to verify the implementation effectiveness on-site. In addition the Company clarifies the risk execution level Organize compliance training for all employees and incorporate Human Resources

compliance performance into performance appraisalsmanagement responsibilities of each position and through the internal audit mechanism of “identifying issues - Department promotions and rewards and penalties.promoting rectification - closed-loop tracking” encourages employees to understand risks in practice and actively

fulfill their responsibilities effectively building a solid compliance culture involving all employees. Business Implement business ethics requirements and prevent

departments commercial bribery and unfair competition.Indicators and targets Comply with policies participate in training avoid conflicts

All-staff

All employees of interest and fulfill reporting obligations to jointly build a

responsibility level

According to the annual compliance management objectives the Company sets compliance management compliance defense line.metrics such as the number of escalated general deficiencies the amount of administrative penalties and the

number of compliance-related litigation cases to quantitatively evaluate the implementation effectiveness of

compliance management. During the reporting period all metrics met the annual targets. Strategy

Indicators Unit 2025 target Annual Actual

Number of general deficiencies escalated to major During the Reporting Period in response to potential risks such as commercial bribery kickbacks

items 0 0

or material deficiencies and commissions expense fraud misappropriation of Company assets and conflicts of interest and

Amount of administrative penalties imposed due to

RMB 0 0 related-party transactions the Company improved institutional mechanisms organized training for all

compliance-related issues employees strengthened external supervision and established a whistleblower protection mechanism

Number of litigation or arbitration cases arising

cases 0 0 to comprehensively enhance compliance governance capabilities and build a solid defense line for anti-

from compliance-related issues corruption anti-commercial bribery and fair competition.

83 83 84ABA CAhBeAm iCcahlesm Ciocarplso rCaotiropnorati2o0n25 E2n0v2i5ro Enmnveirnotnaml eSnotcaial lS aoncdia lC oarnpdo rCaoterp Goroavter nGaonvceer n(aEnScGe) (REeSpGo)r tReport Technological Excellence and Green Development and Nourishing Hearts to Forge Sound Governance for

Superior Quality Lead the Future Enduring Protection of Nature Dreams and Advance Together Sustainable Steady Growth

Risk type Risk description Impact duration Financial impact Strengthening partner compliance supervision

Employees provide customers suppliers or other third The Company effectively extends the compliance supervision chain to business partners (including suppliers

Short term

parties with gifts cash gifts securities and other benefits

Commercial bribery medium term Moderate and partners) to jointly build a clean business ecosystem. In contract management the Company explicitly

or solicit or accept improper benefits provided by the other

long term requires business partners to comply with anti-corruption laws and regulations in relevant agreements

party in order to influence their business decisions. prohibits any form of commercial bribery and makes it a legally binding obligation. In terms of onboarding

and ongoing management the Company makes ethics and integrity reviews a prerequisite for cooperation

Employees solicit or accept unrecorded economic benefits

Short term and incorporates them into regular assessments. In addition the Company indirectly evaluates the compliance

Kickbacks and such as personal kickbacks or commissions in the course

medium term Moderate performance of business partners through annual business ethics audits and other means.commissions of business thereby harming the Company's interests or

long term

undermining the principles of fair trade.By forging or falsely reporting expense reimbursement Establishing a whistleblowing protection mechanism

documents for travel entertainment procurement Short term

Expense fraud etc. employees fraudulently obtain Company funds medium term Moderate The Company has established a clear and reliable whistleblowing and protection mechanism aimed at

which constitutes embezzlement or occupational long term encouraging internal and external stakeholders to courageously expose acts such as offering bribes accepting

misappropriation. bribes and illicitly receiving benefits. This mechanism clearly specifies dedicated whistleblowing channels

including hotlines and email addresses and solemnly commits to keeping strictly confidential whistleblowers'

Employees without authorization take misuse or dispose

Short term identities the reported content and the investigation process. Upon receiving a report the Company led by

Misappropriation of of Company assets including funds equipment materials

medium term High our Audit Department will conduct a prudent investigation into the reported content under the premise of

company assets and intellectual property or use Company resources for

long term strict confidentiality maintain communication with whistleblowers and provide them with timely feedback

personal purposes.on the investigation progress or results to the extent permitted by law and as necessary. The Company

Employees use their position to seek improper benefits for strictly prohibits any form of retaliation and stipulates that those responsible for such behavior will be held

Conflicts of interest themselves their relatives or related parties or participate Short term accountable thereby providing solid institutional protection for whistleblowers. All reports received will be

and related party in business activities that may affect the objective medium term High investigated promptly impartially and thoroughly and the investigation results will serve as the basis for

transactions performance of their duties and fail to declare or recuse long term subsequent actions ensuring that no violations go undetected.themselves as required.Improving policy control mechanisms

[Reporting channels]

The Company systematically integrates anti-corruption anti-commercial bribery and anti-unfair competition Business Ethics Reporting Hotline: +86 (021)-51159199-309

requirements into our existing governance and internal control systems forming a policy system centered Business Ethics Reporting Email: compliance@abachem.com

on the Business Ethics Policy and the Code of Business Conduct and Ethics and others. Specifically the

Business Ethics Policy and the Code of Business Conduct and Ethics explicitly prohibit corrupt practices such

as commercial bribery soliciting or accepting improper benefits and transferring benefits to third parties to

influence decision-making while also prohibiting unfair competition and monopolistic behaviors such as price

manipulation market division exchange of sensitive commercial information and abuse of market dominance

and require employees to proactively declare and recuse themselves from conflicts of interest. The Internal Risk management

Control Policy Internal Audit Management Policy and Trade Secret Protection Policy jointly support the

effective implementation of the Business Ethics Policy. The Company fully incorporates compliance risks such as commercial bribery corruption and unfair competition

into the overall internal control and risk management framework. As the core supervisory body the Audit

Implementing holistic training programs Department conducts at least one special business ethics audit covering the headquarters and all subsidiaries

annually. Meanwhile during routine and ongoing internal control supervision the Audit Department explicitly

The Company attaches great importance to the foundational role of training in risk prevention and conducts lists compliance risks such as corruption commercial bribery and unfair competition as the core content for the

business ethics training for all directors all employees and all suppliers covering core issues such as anti- inspection and assessment of key business processes such as procurement sales investment and information

corruption anti-commercial bribery anti-unfair competition and anti-monopoly. Strictly benchmarking disclosure. By systematically identifying and assessing potential risk points in business processes optimizing

against anti-corruption policies business ethics policies and laws and regulations such as the Anti-Unfair policies and refining processes in a targeted manner and combining this with retrospective tracking of the

Competition Law the training programs aim to ensure that all individuals involved in our operations clearly rectification status we achieve dynamic risk management and closed-loop control.understand our compliance policies legal and regulatory requirements and behavioral boundaries. Training

formats include classroom sessions onboarding and key position qualification training targeted compliance During the Reporting Period the Company included business ethics compliance as a key focus of the

briefings and online self-learning with differentiated content designed for governance-level personnel and annual internal control audit and conducted special audits across all levels covering high-risk areas such as

high-risk positions. At the same time the Company incorporates compliance performance into performance procurement sales and R&D with a focus on anti-corruption anti-commercial bribery and conflict of interest

appraisals promoting the deep integration of training and management. management.

85 85 86ABA CAhBeAm iCcahlesm Ciocarplso rCaotiropnorati2o0n25 E2n0v2i5ro Enmnveirnotnaml eSnotcaial lS aoncdia lC oarnpdo rCaoterp Goroavter nGaonvceer n(aEnScGe) (REeSpGo)r tReport Technological Excellence and Green Development and Nourishing Hearts to Forge Sound Governance for

Superior Quality Lead the Future Enduring Protection of Nature Dreams and Advance Together Sustainable Steady Growth

Indicators and targets Digitalization development plan

The Company has set key quantitative metrics focusing on the effectiveness of the business ethics management The Company carries out targeted practices at the two major production bases in Lanzhou and Nantong.system aiming to comprehensively evaluate the implementation effectiveness of business ethics-related risk Leveraging system integration and intelligent upgrades we deeply embed digital capabilities into production

controls through special audit coverage defect rectification tracking and the monitoring of illegal and non- operations and management and control processes and are committed to building a new data-driven

compliant incidents. During the reporting period all metrics met the annual targets. transparent and efficient governance paradigm providing solid support for strategic decision-making and risk

management and control.Indicators Unit 2025 target Annual Actual

Coverage rate of dedicated business ethics

%100100

audits

Digital Integration of production systems

Rectification completion rate of business ethics-

%100100

related deficiencies At the Lanzhou base with the supOS industrial internet platform as the core the Company has integrated

systems such as DCS batch control production execution warehouse and quality and equipment

Number of unfair competition or antitrust cases

cases 0 0

involving litigation management to build an integrated digital production system. This practice adopts a phased implementation

approach being first implemented in production units

such as Lanwo Technology and Lanzhou ABA Fine

Chemicals achieving data integration and business

Optimizing the “Intelligent Manufacturing” synergy from the equipment level to the management level. In the future the Company plans to deploy

system the supOS MES system on some production lines of

Lanzhou ABA Pharmaceutical Creation focusing on

connecting the data link between the ERP and the

The Company firmly seizes the strategic opportunities of digital transformation takes intelligent data-driven

production site to achieve closed-loop management

and green development as the core promotes the intelligent manufacturing upgrade of production bases and

of the entire process from the issuance of production

builds an efficient transparent and safe digital manufacturing system.orders to completion reporting and feedback.Digital transformation strategy

The Company's digital transformation strategy is closely aligned with national policy guidance and our own Intelligent manufacturing capability upgrade

development needs. Actively responding to policy documents such as the Urban Pilot Program for SME Digital

Transformation we view digital transformation as an important engine for enhancing core competitiveness and At the Nantong base the Company focuses on promoting the comprehensive upgrade of intelligent

achieving sustainable development. manufacturing capabilities. By comprehensively deploying the Distributed Control System (DCS) and Safety

Instrumented System (SIS) on the production lines and extensively applying intelligent equipment such as fully

Core Objectives of Digital Transformation

automatic centrifuges and packaging machines a

solid foundation for full-process automation has been Key performance

laid. Meanwhile the Company has built a “five-in-one”

intelligent factory platform integrating functions such

as personnel positioning hazard identification major

Intelligent operations Data-driven value creation Safe and green development hazard monitoring and a dual prevention mechanism

achieving intelligent safety and production management. In 2025 Nantong Base successfully obtained the

Achieve visibility controllability Break down information silos Through process improvement In 2025 Nantong Base successfully obtained the AA- AA-level

and traceabi l i ty throughout achieve data integration and and refined management and level Integration of Informatization and Industrialization Integration of Informatization and

the entire production process analysis and drive production control reduce energy and Management System Assessment Certificate and the Industrialization Management System

reduce reliance on manual labor o p t im i z a t i o n a nd p r e c i s e mater ia l consumpt ion and AA-level Digital Transformation Management System Assessment Certificate

and improve decision-making management. enhance intrinsic safety and Assessment Certificate marking the Company's and the

efficiency. environmental protection levels. attainment of a national advanced standard in building AA-level“multi-process safety production control capabilities Digital Transformation Managementbased on information system integration.” System Assessment Certificate.

87 87 88ABA Chemicals Corporation 2025 Environmental Social and Corporate Governance (ESG) Report Table of Key Performance Indicators

Table of Key Performance Indicators

Environmental dimension Performance indicators Unit 2025

Hazardous waste volume – reused/recycled tons 5297.29

Performance indicators Unit 2025 Percentage of hazardous waste reused/recycled % 27.69

Investment in environmental protection ten thousand RMB 3485.08

Exhaust Gas

Greenhouse gas emissions

PM tons 0.92

Total Scope 1 emissions tCO2e 523.89

Nitrogen oxides (NOX) tons 1.34

Total Scope 2 emissions tCO2e 68953.10

Sulfur oxides (SOx) tons 0.12

Total Scope 3 emissions tCO2e 184113.80

Non-methane total hydrocarbons tons 2.14

Category 1: Purchased goods and services tCO2e 105161.99

Volatile organic compounds tons 0.42

Category 3: Fuel- and energy-related activities tCO2e 23436.72

Category 4: Upstream transportation and distribution tCO2e 17792.17

Category 5: Waste generated in operations tCO2e 12704.13 Note: The data on this page currently does not include the Company's overseas operations.Category 6: Business travel tCO2e 16197.51

Category 7: Employee commuting tCO2e 408.33

Category 9: Downstream transportation and distribution tCO2e 8412.95 Social dimension

Energy

Direct energy consumption tce 441.97 Performance indicators Unit 2025

Natural gas m3 261440.00 Research and innovation

Diesel kg 19693.00

Number of R&D staff persons 330

Gasoline kg 85423.00

Proportion of R&D personnel % 27.62

Indirect energy consumption tce 19412.81

R&D investment ten thousand RMB 11673.85

Purchased electricity MWh 46283.00

8.93

Outsourced steam tons 126412.00 R&D investment as a percentage of operating revenue %

Renewable energy consumption MWh 479.42 Invention patent applications in 2025 Item

4

Water Invention patents granted in 2025 Item 3

Total water withdrawal m3 221568.00 Utility model patents granted in 2025 Item 24

A. Withdrawal: direct abstraction from groundwater m3 0 Total invention patents held Item 129

B. Withdrawal: direct abstraction from groundwater m3 1840.00

Total utility model patents held Item 136

C. Withdrawal: municipal water supply (or from other companies) m3 219728.00

Total design patents held cases 2

Volume of recycled water used m3 34128.00

Quality and service

Wastewater discharge m3 188482.70

Product pass rate % 98.4

Waste

0

Non-hazardous waste tons 49.00 Products recalled tons

Hazardous waste tons 13819.22 Customer complaints received cases 4

89 90ABA Chemicals Corporation 2025 Environmental Social and Corporate Governance (ESG) Report Table of Key Performance Indicators

Performance indicators Unit 2025 Performance indicators Unit 2025

Customer complaint resolution rate % 100 Work-related injury rate % 0.18

Violations related to product/service health safety and labeling cases 0 Lost workdays due to work-related injuries days 397

Confirmed complaints regarding customer privacy breaches or data loss cases 0 Lost workdays per million revenue due to work-related injuries days per RMB 1 million revenue 0.30

Violations in marketing and promotional activities cases 0

Work-related fatalities persons 0

Supplier management

Work-related fatality rate per million revenue % 0

Total number of suppliers companies 383

Severe work-related injuries (excluding fatalities) cases 0

Total core suppliers companies 125

Rate of severe work-related injuries (excluding fatalities) % 0

Strategic suppliers companies 77

Recordable work-related injuries cases 4

Key suppliers companies 64

Incidents per 1.81

Domestic suppliers in China companies 365 Total recordable injury rate (TRIR) per million hours worked million hours

worked

Overseas suppliers outside China companies 18

Safety training sessions Time 186

Proportion of local suppliers % 33

Safety training attendances personsTime 4477

Supplier business ethics compliance rate % 100

Employee coverage rate for production safety training % 100

Suppliers certified to quality management systems companies 163

Average safety training hours per employee hours 13.08

Suppliers certified to occupational health and safety management systems companies 140

Coverage rate of employee work injury insurance % 100

Suppliers certified to environmental management systems companies 140

Coverage rate of employee safety liability insurance % 100

Suppliers signing integrity cooperation agreements (or commitments) companies 106

Composition of employees

Suppliers audited companies 72

Full-time employees persons 1192

Suppliers suspended due to non-compliance companies 0

Part-time employees persons 3

Potential suppliers disqualified due to non-compliance companies 0

Female employees persons 411

Information security and privacy protection

Male employees persons 784

Losses caused by violations of laws and regulations related to data or

customer information breaches ten thousand RMB

0

Employees aged 29 and under persons 182

Confirmed complaints involving customer privacy breaches or data loss cases 0 Employees aged 30-39 persons 423

Business coverage rate of data security–related certifications % 100 Employees aged 40-49 persons 329

Number of data security / customer privacy protection training times Time 8 Employees aged 50 and above persons 261

Training coverage rate on data security and customer privacy protection % 100 Employees working in China persons 1104

Average training hours per person on data security and customer privacy hours 2 Employees working overseas persons

91

protection

Senior management (vice president and above) persons 47

Encryption coverage rate for sensitive data % 100

Middle management (assistant manager to director) persons 173

Access control coverage rate % 99

General employees persons 975

Occupational health and safety

Employees with master’ s degrees and above persons 71

Investment in production safety ten thousand RMB 1003.35 Employees with bachelor's degrees persons 306

Investment in employee work injury insurance ten thousand RMB 51.71 Employees with associate degrees persons 305

Investment in employee safety liability insurance ten thousand RMB 20.87 Employees with high school education and below persons 513

Occupational disease incidence rate % 0 Diversity equality and inclusion

Foreign employees persons 66

91 92ABA Chemicals Corporation 2025 Environmental Social and Corporate Governance (ESG) Report Table of Key Performance Indicators

Corporate governance

Performance indicators Unit 2025 Performance indicators Unit 2025

Employees from ethnic minority groups persons 10 Board diversity and effectiveness

Female employees at assistant manager level and above persons 43 Total number of Board members persons 9

Percentage of women in management positions % 19.55 Independent directors persons 3

Employee discrimination or harassment incidents cases 0 Female Board members persons 2

Incidents involving child labor forced labor or trafficking cases 0 Percentage of female Board members % 22

Labor contract signing rate % 100 Board meetings held during the year Time 9

Average paid leave days per employee days 8.38 Resolutions reviewed and approved by the Board items 44

Return-to-work rate of female employees after parental leave % 100 Average attendance rate of Board members % 99

Retention rate of female employees after parental leave % 100 General meetings of shareholders held Time 5

Social insurance coverage rate % 100 Board special committee meetings held Time 11

Employee turnover Resolutions approved by the General meetings of shareholders items 29

Total number of employee departures persons 214 Percentage of Independent Directors on the Strategy and Decision-Making

Committee % 66

Number of male employee departures persons 186

Percentage of Independent Directors on the Audit Committee % 66

Number of female employee departures persons 28

Percentage of Independent Directors on the Remuneration and Appraisal

Number of senior and middle management departures persons 17 Committee

%66

Number of employee departures aged 29 and below persons 56 Percentage of Independent Directors on the Nomination Committee % 66

Number of employee departures aged 30–39 persons 82 Information disclosure and investor communication

Number of employee departures aged 40–49 persons 45 Performance briefings held Time 1

Number of employee departures aged 50 and above persons 31 Investor research activities times 6

Employee training Response rate to investor Q&A on interactive platforms % 97

Employee training coverage % 100 Number of investor questions answered via cninfo.com items 172

Average training hours per employee hours 45.63 Total number of disclosures via designated channels pieces 148

Average training hours per male employee hours 37.13 - Periodic disclosures pieces 4

Average training hours per female employee hours 52.23 - Ad hoc disclosures pieces 144

Average training hours per senior employee hours 50.82 Compliance management

Average training hours per mid-level employee hours 40.41 Number of unfair competition or antitrust cases involving litigation cases 0

Average training hours per frontline employee hours 62.08 Coverage rate of dedicated business ethics audits % 100

Social contribution Rectification completion rate of business ethics-related deficiencies % 100

External donation RMB 84000

Note: Supplier management and occupational health and safety indicators under social performance currently do not include the

Company's overseas operations.

93 94ABA Chemicals Corporation 2025 Environmental Social and Corporate Governance (ESG) Report Index Reader Feedback Form

Index

Index Against the Self-Regulatory Guidelines Index Against the Self-Regulatory Guidelines

Reporting chapter GRI Standards No. 17 for Companies Listed on Shenzhen Stock Exchange — Sustainability Report (For Reporting chapter GRI Standards

No. 17 for Companies Listed on Shenzhen

Stock Exchange — Sustainability Report (For

Trial Implementation) Trial Implementation)

About This Report GRI 2-1 GRI 2-2 GRI 2-3 GRI 2-4 GRI 2-5 —— Building a solid safety GRI 403-1 GRI 403-2 GRI 403-3 GRI 403-4

defense line GRI 403-5 GRI 403-6 GRI 403-7 GRI 403-8 Article 50

Message from the GRI 403-9 GRI 403-10

Chairman GRI 2-22 ——

Fulfilling social

responsibility GRI 203-1 GRI 203-2 GRI 413-1 GRI 413-2 Article 39 Article 40 Article 42About ABA Chemicals GRI 2-6 GRI 2-7 ——

GRI 2-9 GRI 2-12 GRI 2-13 GRI 2-14 GRI Sound Governance for Sustainable Steady GrowthESG Management 2-29 GRI 3-1 GRI 3-2 GRI 3-3 ——

Strengthening corporate GRI 2-9 GRI 2-10 GRI 2-11 GRI 2-12 GRI

Technological Excellence and Superior Quality Lead the Future governanc 2-13 GRI 2-14 GRI 2-15 GRI 2-17 GRI 2-18 ——GRI 2-19 GRI 2-20 GRI 2-21 GRI 405-1

Adhering to innovation-

driven development GRI 203-1 GRI 203-2 Article 42 Compliant and prudent

operations GRI 2-27 GRI 206-1 ——

Strictly controlling quality

and safety GRI 416-1 GRI 416-2 Article 47

Adherence to business GRI 2-23 GRI 2-24 GRI 2-25 GRI 2-26 GRI

ethics 205-1 GRI 205-2 GRI 205-3 GRI 410-1 GRI Article 55 Article 56Creating high-quality

services GRI 417-1 GRI 417-2 GRI 418-1 Article 47 Article 48

411-1 GRI 415-1Optimizing the “IntelligentBuilding a resilient supply GRI 204-1 GRI 308-1 GRI 308-2 GRI 414-1 Manufacturing” system GRI 203-1 Article 42

chain GRI 414-2 Article 45 Article 46

Table of Key Performance

Green Development and Enduring Protection of Nature Indicators —— ——

Environmental compliance

management GRI 2-27 GRI 303-1 GRI 303-2 Article 33

Index GRI 1 GRI 2 GRI 3 Article 57

Reader Feedback Form GRI 2-3 Article 53

Addressing climate change GRI 201-1 GRI 201-2 Articles 21 to 28

Improving resource GRI 302-1 GRI 302-2 GRI 302-3 GRI 302-4

efficiency GRI 303-1 GRI 303-2 GRI 303-3 GRI 303-4 Article 35 Article 36GRI 303-5

Strict control of pollution GRI 305-1 GRI 305-2 GRI 305-3 GRI 305-4

emissions GRI 305-5 GRI 305-6 GRI 305-7 GRI 306-1 Article 30 Article 31GRI 306-2 GRI 306-3 GRI 306-4 GRI 306-5

Protecting biodiversity GRI 304-1 GRI 304-2 GRI 304-3 Article 32 Reader Feedback Form

Nourishing Hearts to Forge Dreams and Advance Together

Thank you for reading the ABA Chemicals 2025 Environmental Social

Protecting employee rights GRI 2-7 GRI 2-8 GRI 401-1 GRI 401-2 GRI

and interests 401-3 GRI 405-1 GRI 405-2 GRI 406-1 GRI Article 50

and Governance (ESG) Report. To provide you and other stakeholders

407-1 GRI 408-1 GRI 409-1 with more valuable information and to enhance the Company's

Growth with employee GRI 404-1 GRI 404-2 GRI 404-3、 Article 50 sustainable development management capabilities and level we

sincerely welcome your comments and suggestions on this report.Scan and fill out the reader

feedback form

95 96Contact Number: +86 21 5115 9199

Email: boardoffice@abachem.com

Website: https://www.abachem.com

Address: 15th Floor Block A Hailiang Plaza No. 22 Lane 118 Zhongjiang Road

Putuo District Shanghai China