Stock code：300428

Sustainability Report (ESG)

Green low-carbon Be an environmentally and

and sustainable development socially friendly enterprise【Be an environmentally and socially friendly enterprise】

Contents Governance chapter | STRIVING FOR

EXCELLENCE IN GOVERNANCE ACHIEVING

STABILITY AND LONG-TERM SUCCESS

Regarding this report ?? Corporate Governance ??

Risk Management and Internal Control ??

Due diligence ??

Message from Chairman ?? Stakeholder communication ??

Anti commercial bribery and anti-corruption ??

measures

Anti unfair competition ??

About Lizhong Group ??

Corporate culture ?? Environment Chapter | LOW CARBON

GREEN AND INTELLIGENT MANUFACTURING

Three major sections ??

Honors and Awards ?? Addressing climate change ??

Product carbon footprint ??

Environmental Compliance Management ??

Sustainable Development Governance ?? Pollution prevention and control and ??

ecosystem protection

Sustainable Resource Management ??

Sustainable Development Goals ?? Opportunities in Clean Technology ??

Identification of material Issues ??

Social Chapter | INNOVATION LEADS

EMPOWERMENT AND PROGRESS

Innovation driven ??

Ending ?? Sustainable Supply Chain ??

Safety and Quality of Product and Service ??

Key Performance Indicators ?? Data Security and Client Privacy Protection ??

Rural Revitalization and Social Contribution ??

Index Table ??

Employees ??

Independent Verification Statement ??

Feedback Form ???? | Lizhong Sitong Light Alloys Group Co. Ltd. ???? Sustainability Report | ??

Regarding this report Message from Chairman

This report is the annual sustainable development report of Lizhong Sitong Light Alloy Group Co. Ltd. (hereinafter referred to as "Lizhong In ???? profound changes are taking place in the global

environmental social and governance (ESG) field. The EU's

Group" "the Company" or "We") aiming to comprehensively present Lizhong Group's practices and performance in sustainable develop- Corporate Sustainability Reporting Directive (CSRD) and Corpo-

ment to society and stakeholders. rate Sustainability Due Diligence Directive (CSDDD) have been

officially implemented. China guided by its "Dual Carbon"

goals is accelerating the construction of a modern industrial

Time scope system that promotes harmonious coexistence between

humans and nature and driving high-quality development with

The time scope of this report is from ????.?.? to ????.??.?? (referred to as the "reporting period"). In order to increase the comparability new quality productivity. The SZSE Self-Discipline Regulatory

of the report some content may be appropriately traced or extended to important years of the development of Lizhong Group. Guidelines No. ?? ? Sustainability Report (Trial) further strength-

ens ESG information disclosure requirements.As a leader in

China's high-end aluminum based new materials and automo-

Organizational Scope tive components Lizhong Group has always taken national

strategy as the guiding principle global vision as the rudder

Unless otherwise specified the statistical scope of the data and information in this report is consistent with the annual report scope of integrated sustainable development into its corporate DNA Deepen transparent operation and build a solid foundation for

Lizhong Group. driven industrial transformation with green innovation sustainable development.Faced with the new regulations of the

responded to the era's challenges with responsibility exerted Shenzhen Stock Exchange Lizhong Group has taken the lead in

the influence of industry leaders promoted the construction of improving its ESG governance system embedding the concept of

Information sources and reliability assurance green supply chains and met the expectations of stakeholders. sustainable development into its strategic decision-making and

The information in this report is sourced from publicly available information official documents financial reports internal management Anchor the "Dual Carbon" goal and create core competitiveness

daily operations.We optimize the board structure establish a

in the green industry chain.Lizhong Group actively responds to Sustainable Development Management Committee and system-

information systems third-party monitoring and evaluation data as well as data collected by relevant functional departments of the State Council's Action Plan for Carbon Dioxide Peaking atically manage important sustainable development issues such as climate risk and data security in order to repay shareholder

Lizhong Group.Lizhong Group guarantees that there are no false records misleading statements or significant omissions in the content Before ???? further develops aluminum recycling technology

and product lightweight technology industry chain carbon trust with stable performance. Real time monitoring of environ-

of this report. reduction models and promotes the transformation of mental data through digital platforms to ensure transparent and

aluminum based materials towards "Green Circulation".Adhere compliant information disclosure. We firmly believe that only by

Reference standards to the core of primary utilization recycling energy conservation

ensuring responsibility through institutional safeguards and

and emission reduction of recycled aluminum innovate and winning trust through transparency can we achieve long-lasting

˙ United Nations Sustainable Development Goals (SDGs) develop low-carbon processes create a green closed-loop

success.covering raw materials to end products and help promote the

˙ Global Reporting Initiative's GRI Standards for Sustainable Development Reporting Firmly committed to digitalization and intelligence leading lightweight development of automotive aerospace and other low-carbon and green development.In the future Lizhong Group

˙ SZSE Self-Discipline Regulatory Guidelines No. ?? ? Sustainability Report (Trial) fields.By deepening collaboration with global industrial chain will implement three major strategic actions. Technological Self

partners we are committed to minimizing the carbon footprint

˙ SZSE Growth Enterprise Market Self-Discipline Regulatory Guide No. ? ? Compilation of Sustainability Report Strengthening Action: Increase R&D investment break through per ton of aluminum and contributing Chinese wisdom to the the bottleneck technology of aluminum based materials and

˙ The General Framework of China Enterprise Sustainability Reporting Guidelines (CASS-ESG ?.?) by the China Enterprise Reform and global low-carbon transformation. high-end manufacturing and consolidate the global technologi-

Development Research Association Practice common prosperity and build an ecosystem of shared cal leadership position. Global Collaborative Action: Improve the

benefits and development.Lizhong Group always regards layout of overseas green production capacity in Mexico South-

"People-Oriented" as the core of development and builds a east Asia and other regions and build a global network of "Local-

responsible ecology of collaborative symbiosis among employ- ized Supply+ Low-Carbon Manufacturing". Ecological Prosperity

ees communities and industrial chains.We focus on skill Action: Establish the "Automotive Material Recycling Industry Access training and innovation incubation to build a lifelong growth Alliance" collaborate with upstream and downstream enterprises

platform for our employees. Empowering communities with to develop industry carbon footprint standards and assist in the This report is published in both Chinese and English versions and can be found

sustainable development through rural revitalization and green transformation of the global industrial chain.on the official website of Lizhong Group（http://www.lizhonggroup. com/）、 educational support. Based on supply chain responsibility Native metals are limited but the recycling cycle is infinite.Please refer to the website of Shenzhen Stock Exchange (www.szse. cn) and the audits promote upstream and downstream enterprises to Lizhong Group has always been committed to the recycling of

jointly practice ESG concepts and build a sustainable industrial

website of Juchao Information (www.cninfo. com. cn) for more informa- recycled aluminum resources and the development of community.We deeply understand that the value of a company lightweight automotive components making human transporta-

tion.When there is ambiguity in understanding two texts please refer to the lies not only in creating profits but also in transmitting warmth.- tion and life easier and more environmentally friendly. We are

By establishing a sound occupational health system fair

Chinese version. making every effort to promote civilization progress with every incentive mechanisms and career promotion system the innovation enabling Lizhong products to carry more green

efforts of every employee are closely linked to the future of the missions and contributing Lizhong wisdom to global sustainable

enterprise. By building green supply chains and exporting development!

low-carbon technologies we provide global customers with

products that combine economic value and environmental

benefits.?? | Lizhong Sitong Light Alloys Group Co. Ltd. ???? Sustainability Report | ??

Baoding China Baoding China

Corporate Culture

Corporate spirit

Strive more cooperate more ???

Corporate values

Learn innovate manufacture excellent products meet market

demand and realize the common interests of employees

customers and shareholders.Business policy

Operate with kindness and be a respected enterprise for a century.Smart management innovation learning creating user value.Steady development pragmatism and practice realizing the interests

of employees customers and shareholders.Lizhong Group Research Institute Lizhong Group Headquarters Building

Three major sectors

About Lizhong Group Lizhong Alloy Sector

Since its establishment ?? years ago we have been committed to the research

and development production and operation of recycled aluminum alloys

providing society with over ????? tons of low-carbon recycled aluminum alloy

Lizhong Group was founded in ???? and was listed on the Shenzhen Stock Exchange in ???? (stock code]).The listed company currently materials replacing electrolytic aluminum materials and steel materials.has three major product segments: Lizhong Alloy Lizhong Wheel and Lizhong Sitong New Materials. It has several companies (including

production factories) worldwide and is a global supplier of aluminum alloy new materials and automotive lightweight components. The

product is mainly used in fields such as automobiles high-speed trains power appliances consumer electronics communications

aerospace and high-end equipment.Lizhong Wheel Sector

Lizhong Group carries forward the

corporate spirit of " Strive More GLOBAL CUSTOMERS OF LIZHONG GROUP Since its establishment ?? years ago we have been committed to replacing

Cooperate More" and always steel with aluminum promoting the research and manufacturing of lightweight

adheres to the deep cultivation automobiles and more than ???million lightweight aluminum alloy wheels

and meticulous work of aluminum were provided to the society reducing greenhouse gas emissions by ?.??

alloy new materials and aluminum million tons for ??million vehicles worldwide.alloy new products. After years of

development Lizhong Alloy has

become a leading enterprise in the

Chinese industry.After years of Lizhong Sitong New Materials Sector

development Lizhong Wheel has Since its establishment ?? years ago it has always been committed to improv-

become the second largest ing the mechanical strength and service life of aluminum alloy materials and

enterprise in the industry world- aluminum products providing more than ?????? tons of aluminum based

wide.After years of development functional master alloys for the society and promoting the high-quality

Lizhong Sitong New Materials has development of the world's cause of replacing steel with aluminum copper

become the world's largest with aluminum and wood with aluminum.enterprise in the industry.?? | Lizhong Sitong Light Alloys Group Co. Ltd. ???? Sustainability Report | ??

Industrial layout Overseas industrial layout Domestic industrial layout

As a global enterprise Lizhong Group has advanced America Thailand Republic of Korea Tianjin Liu an Anhui Jining，Shandong Shanghai Wuhan Hubeiproduction bases and business networks spread across ??

provinces and cities in China ensuring efficient coverage Britain Japan Brazil Guangzhou Guangdong ChangshaHunan Yangzhong Jiangsu Yantai Shandong Xuzhou Jiangsu

of products and services and market response.In addition

the company actively expands into international markets Germany Mexico Italy Binzhou Shandong Chongqing Daye，Hubei Yangzhou Jiangsu Baotou Inner Mongoliaand has established business institutions in countries and

regions such as the United States the United Kingdom Morocco Spain Belgium Qingyuan Guangdong Baoding Hebei Jilin Changchun Yingde Guangdong Qinhuangdao Hebei

Thailand Mexico Brazil South Korea Japan Germany

Italy Morocco Spain Belgium etc. forming a stable

global business layout.(??)

(?)

Production Plant(??) (CN ?+TH ?+NA ?)

Logistics Centre(??)

Sales and Delivery Assurance Company?? | Lizhong Sitong Light Alloys Group Co. Ltd. ???? Sustainability Report | ??

Lizhong Group has been Lizhong Group has received

Lizhong Group joins the awarded the global authoritative A-level evaluation for its Lizhong Group received Tianjin Lizhong Wheel Co. Ltd.Global Aluminum Initiative carbon rating CDP B - (Climate information disclosure work on Wind ESG rating of A and and Xintai Wheel Manufacturing

(ASI) Change B - Water Security B -) the Shenzhen Stock Exchange for Guozheng ESG rating of A Co. Ltd. won the bronze medal

for three consecutive years three consecutive years in EcoVadis

Lizhong Group has won the

Honors and Nobilis a globally leading

Lizhong Sitong Light Alloy Tianjin Xinlizhong Alloy Group Co. Lizhong Group was selected as

General Motors Global "Supplier of aluminum rolling manufacturer Group Co. Ltd. is recognized as Ltd. is a demonstration enterprise of an excellent practice case for

awards the Year" award for six consecutive received the "Outstanding an excellent supplier in the the Global Environment Facility's sustainable development of

years and is the only aluminum aluminum processing industry "Green Production and Sustainable Supplier Award" from Lizhong Development Project for China's listed companies in ???? by

wheel supplier to receive this Sitong Light Alloy Group Co. Ltd by the China Nonferrous Recycled Aluminum Lead Zinc and the China Association of Listed

award Metals Processing Association Lithium Industries" Companies

Tianjin Lizhong Wheel Co. Ltd.Tianjin Lizhong Light Alloy has won the "Manufacturing

Forging Co. Ltd. China Hebei Lizhong Alloy Group Co. Industry Single Champion Ltd. "Rotary Award - Automotive Tianjin Lizhong Wheel Co. Tianjin Lizhong Light Alloy Machinery Industry Federation Product Award" from the China

"Machinery Industry Science Technology Innovation Break-

Ltd. National Green Factory Forging Co. Ltd. National Green

Federation of Industrial Econom- through Award" Factoryand Technology Award" ics for three consecutive years

Baotou Shengtai Automotive Guangdong Longda Aluminum Tianjin Xinlizhong Alloy Group Tianjin Lizhong Wheel Co. Ltd. Tianjin Xinlizhong Alloy Group

Parts Manufacturing Co. Ltd. Industry Co. Ltd. National Co. Ltd. National Green Factory National Green Supply Chain Co. Ltd. National Green Supply

National Green Factory Green Factory Chain?? | Lizhong Sitong Light Alloys Group Co. Ltd. ???? Sustainability Report | ??

Sustainable Development Governance Sustainable Development Goals

The ??th United Nations General Assembly adopted the "Change our world -2030 agenda for sustainable development" which proposes ??

sustainable development goals. Based on its own business areas Lizhong Group responds to the ?? sustainable development goals by

continuously improving its internal sustainable development management enhancing social influence and promoting sustainable

The Board of Directors Coordinating the overall situation the company formulates strategic plans for sustainable development. By promot-

development of the industry and society.of Lizhong Group ing synergy across the three aspects of environment society and corporate governance it comprehensively implements the green - low - carbon and sustainable development strategies.Dimension Sustainable Development Issues Lizhong Action United Nations Sustainable Development Goals

Inside the Board of A Sustainable Development Management Committee is established under it which is responsible for the specific

Directors management of the promotion of major sustainable development matters and the relevant performance assessment and it shall report to the Board of Directors on a regular basis. Addressing climate change The total greenhouse gas emissions per

million revenue (Scope ? and Scope ?)

Environmental compliance are ??.? metric tons of carbon dioxide

Committee A Sustainable Development Department is established under it which is responsible for coordinating and promot- management

equivalent per million yuan

ing the specific work and matters related to sustainable development. Environmental protection investment of

Pollution prevention and control

and ecosystem protection ??.?? million yuan

The total energy consumption intensity is

Engage an external Provide guidance on the sustainable development work of Lizhong Group. Environment Sustainable resource utilization ???.? tons of standard coal per million

expert panel yuan

Product Carbon Footprint ?????? tons of scrap aluminum recycling

and utilization

Designate a specific person in charge. The subsidiary companies shall establish a Sustainable Development Promo- Clean technology opportunities

All sections tion Team with the general manager as the team leader to comprehensively promote the sustainable development Reclaimed water usage of ?????? cubic

work. meters

Water recycling utilization rate ??.??%

Reclaimed water usage ?????? cubic

meters

Lizhong Sitong light alloy Group Co. Ltd. (listed company)

Organization chart of sustainable development management committee By the end of ???? a total of ???

Rural Revitalization and Social authorized patents had been

Contribution obtained

Innovation driven The R&D investment for ???? is

????????? yuan

Board of directors Stable supply chain The total number of suppliers with

Product and Service Safety and environmental and labor clauses

Society Quality signed in ???? is ????

Sustainable Development Management Committee

Data Security and Customer ???% of suppliers who sign integrity

External expert group Sustainable Development Department Privacy Protection agreements in ????

Employee Customer complaint handling rate of

???% in ????

???? people employed during the

Alloy group sector Wheel group sector Sitong new material sector ???? reporting period

??? employees in need of assistance

Each company Each company Each company in ????

Sustainable development Sustainable development Sustainable development

work promotion group work promotion group work promotion group ???% of directors who received anti

Risk Management and Internal bribery and anti-corruption training

Control in ????

Due diligence The proportion of management

personnel who will receive anti

The Sustainable Development Management Committee of Lizhong Group organizes ?-? sustainable development management training bribery and anti-corruption training

sessions per year for various departments and subsidiary companies and requires subsidiary companies to have at least one carbon Stakeholder communication for directors in ???? is ???%

manager. Hold a sustainable development summary meeting every six months and each department is required to report on the Governance Anti commercial bribery and The proportion of employees who

progress of relevant management work. Lizhong Group has established a self-evaluation and on-site audit system conducting monthly anti-corruption will receive anti commercial bribery

self-evaluation and annual audit of its subsidiaries. Through the self-evaluation mechanism subsidiary companies can achieve self-ex- and anti-corruption training as Anti unfair competition directors in ???? is ???%

amination and self-correction. The annual audit will issue a rectification report and follow up on the implementation of rectification to

ensure the achievement of the unified management goal of sustainable development of Lizhong Group. The Sustainable Development ? incidents of commercial bribery and corruption occurred

Management Committee reports to the Board of Directors annually on the completion of its work and develops a work plan for the

following year. The board of directors formulates strategic plans based on the report content and incorporates ESG factors into the

decision-making process.?? | Lizhong Sitong Light Alloys Group Co. Ltd. ???? Sustainability Report | ??

Identification of material Issues

LIZHONG GROUP ESG ISSUE MATERIALITY ANALYSIS

Lizhong Group has systematically carried out the identification and evaluation of material issues through the following four processes to

determine the material issues related to sustainable development work and has made key disclosures in the report. Governance Environment Society

circular economy security and quality of product and service

1 Understand the background of activities and business relationships of Lizhong Group: energy utilization addressing climate change

innovation driven

occupational health and safety

talent training and development

clean technology product carbon employee rights

Understand the relationship between activities and business opportunities footprint and benefits

water resources utilization

Understand the external objective environment Corporate governance pollutant emission

Sustainable Development Governance

Understand the main stakeholders affected. data security and client privacy protection

Anti Unfair Competition

risk management and waste disposal

internal control

environmental compliance

management anti commercial bribery

diversification and equal opportunities supply chain and anti corruption2 Establish a list of issues: due diligence security

stakeholder

supply chain security communication

social contribution

Based on the ?? issues set out in the SZSE Self-Discipline Regulatory Guidelines No. 17 – Sustainability Report

(Trial) (hereinafter referred to as the "Guidelines") and identify other potential material issues.Rural Revitalization and social contribution

Identify the impacts risks and opportunities related to the agenda and compile a list of company agenda

items. ecosystem and biodiversity protection

immaterial material

Impact materiality to the Economy Society and Environment

3 Assessment and confirmation of the materiality of the issues: Note: Technology ethics is a specific subject disclosure issue and the company is not currently involved.

Assessment of Impact Materiality: Sort out the potential or actual positive or negative impacts of each issue

on the external environment society and economy and conduct research and analysis on stakeholders ? Corporate governance ? Sustainable Develop- ? risk management and ? due diligence ? stakeholder communication

through questionnaires. Governance ment Governance internal control

Financial Materiality Assessment: By analyzing the impact dependence and other factors combined with ? anti commercial bribery ? Anti Unfair Competitionand anti corruption

expert judgment and conducting a questionnaire survey on the possibility of the occurrence of the issue

and the potential degree of financial impact by various departments of the company the issue with

financial materiality is evaluated. addressing ecosystem and environmental compliance ? climate change ? pollutant emission ?? waste disposal ?? biodiversity protection ?? management

Integrate impact and financial materiality results. Environment

?? energy utilization ?? water resources ?? circular economy ?? product carbon footprint ?? clean technology opportunities

utilization

4 Issue report: ?? Rural Revitalization and ?? social contribution ?? innovation driven ?? supply chain security ?? equal treatment of SMEs

social contribution

Summarize the process methods and conclusions of analyzing the double materiality of the topic. Society ?? security and quality of ?? data security and client ?? occupational health and safety ?? employee rights and benefits

product and service privacy protection

According to the requirements of the Guidelines disclose relevant content.?? diversification and equal opportunities ?? talent training and development

Note: Technology ethics is a specific subject disclosure issue and the company is not currently involved.material

Financial materiality to the company?? | Lizhong Sitong Light Alloys Group Co. Ltd. ???? Sustainability Report | ??

Corporate Governance

Governance chapter

Standardize governance structure

Striving for excellence in

governanceachieving stability The ?th board of directors of Lizhong group The ?th board of supervisors of Lizhong group

and long-term success

Chairman Yongxing Zang Director - Yongyi Zang Chairman Yongjian Zang Chairman of the board of supervisors

? Qinghua Zhao

Corporate Governance ?? Director Liguo Zang Independent director Independent director Independent director Employee Supervisor Employee Supervisor - Xuan Tang ? Da Lu ? Jianhang Zhang ? Yanyan Zhang ? Jiewu Sun

Risk Management and Internal Control ??

Senior management of Lizhong group

Due diligence ??

Stakeholder communication ??

Anti commercial bribery and anti-corruption measures ?? President Vice President Vice President Vice President Vice President/Board Secretary Chief financial officer - Yongxing Zang ? Jianliang Zhang ? Wenhong Wang - Junhui Guo ?Zhiguo Li ? Guoyong Yang

Anti unfair competition ??

Standardize governance structure

Improving governance structure: Lizhong Group strictly adheres to laws and regulations such as the Company Law of the People's Republic

of China and the Securities Law of the People's Republic of China and has established governance institutions such as the shareholders'

meeting board of directors and supervisory board clarifying the responsibilities of each institution.The board of directors has four

specialized committees namely the Strategy Committee Audit Committee Nomination Committee and Remuneration and Assess-

ment Committee. The members of each committee are all directors of the company responsible for researching professional matters

and providing reference for the board's decision-making.Optimize the board structure

The company's board of directors consists of ? directors including ? independent directors who possess both industry experience and

innovative vitality. The professional backgrounds of the members cover the fields of finance risk control and ESG strategy. The board of

directors continues to strengthen its ability to perform its duties conducting ESG special training twice a year covering topics such as

interpretation of dual carbon policies climate information disclosure and green supply chain management. External experts are also

invited to share international ESG management improvement paths helping the board of directors make scientific decisions and

achieve deep synergy with the company's low-carbon transformation goals. Future plans include setting up foreign and female indepen-

dent directors to enhance diversity.In ???? the company revised and improved the Independent Director Work System and formulated the Independent Director Special Meeting

Work System providing institutional guarantees for independent directors to further enhance their independence and effectiveness in

fulfilling their duties. When evaluating the composition of the board of directors the nomination committee will consider multiple

aspects of the board's diversity policy including but not limited to gender age cultural and educational background professional

knowledge and experience industry knowledge and experience and skills.Governance chapter Striving for excellence and achieving stability

Corporate governance structure?? | Lizhong Sitong Light Alloys Group Co. Ltd. ???? Sustainability Report | ??

Strengthen internal management

Improve internal control system Risk Management and Internal Control

Establish compliance training compliance inspection and other compliance management systems revise and improve systems in a

timely manner according to regulatory policies prepare and publish documents such as Internal Control System" and Internal Audit

System and enhance compliance management awareness. Develop and complete the Risk Identification and Response Management Process for Lizhong

high risk

medium risk

Group. The company regularly listens to internal control work reports from top to bottom low risk

evaluates the risks existing in the company according to the ISO????? risk management

Strengthen risk management guidelines and divides the risk categories into high risk medium risk and low risk. Each

business department is required to develop prevention and control measures and response

attach great importance to the construction and supervision of internal control and risk management systems regularly evaluate major plans to ensure that the company's internal control system is sound and operates effectively.risks determine prevention and control measures and response plans and ensure the completeness and effective operation of the

internal control system.According to laws regulations and rules such as the Company Law of the People's Republic of China the Securities Law of the People's Repub-

Improve governance level lic of China and the Shenzhen Stock Exchange Self Regulatory Guidelines for Listed Companies No. 2- Standardized Operation of GEM Listed Companies the company has formulated its Internal Control System.Revision of governance system During the reporting period Improve the internal control system establish a comprehensive compliance management system that covers compliance training and

Lizhong Group held compliance inspections and timely revise and improve existing systems in accordance with regulatory policies. Develop and publish

On January ?? ???? Lizhong Group held the ??th meeting of the ?th Board of relevant institutional documents such as the Security Management System Procurement Management System and Regulations on the

Directors deliberated and passed the Proposal on Revising and Formulating Part of the Protection of Trade Secrets and take multiple measures to enhance the compliance management awareness and capabilities of the upper

Company's Governance System revised the Rules of Procedure for Shareholders' Meetings 3order and lower levels providing support for the sustainable and healthy development of the company.Rules of Procedure for Directors' Meetings and other systems and newly formulated the

Management System for Subsidiaries and other systems. On August ?? ???? the shareholder meetings Financial management strictly adheres to national tax policies and fulfills tax obligations in accordance with the law. To strengthen tax

company held the ??th meeting of the ?th Board of Directors which reviewed and control and risk management a comprehensive tax management system has been established and tax risks are identified through

approved the Proposal on Revising and Formulating Part of the Company's Governance 13 order monthly financial statements and corresponding measures are formulated. In addition maintaining cooperation with professional tax System revised the Management System for Shares and Changes Held by Directors agencies timely obtaining policy updates and ensuring the standardization and foresight of tax management.Supervisors and Senior Management Personnel in the Company and other systems and board meetings

newly formulated the Public Opinion Management System and Accountability System for

Major Errors in Annual Report Information Disclosure. 4 order

audit committee meetings

Deepening investor communication

2 order

Lizhong Group has formulated the Investor Relations Management System which Due diligence

strengthens communication with investors and enhances the company's invest- nomination committee meetings

ment value through online performance exchange meetings organizing on-site

research and other methods. 2 order The Sustainable Development Management Committee of Lizhong Group is responsible for coordinating the development of a due

strategic committee meetings diligence framework with a Sustainable Development Department responsible for promoting specific due diligence and hiring profes-

sional teams with qualifications such as environmental engineers and carbon managers.

2 order In ???? due diligence was conducted on the entire value chain of upstream suppliers their own operations and downstream customers

compensation and assessment with a focus on identifying environmental risks social risks and governance risks. The specific scope includes but is not limited to: EU

committee meetings carbon tariff (CBAM) response water resource utilization supply chain transparency geopolitical impact on raw material procurement

and other risks.

4 order A series of measures have been taken to address the identified risks including but not limited to energy conservation and emission

independent director meetings reduction resource recycling improvement of internal control system and response to geopolitical risks. For example in the supply

chain the procurement department has used information technology to build real-time monitoring systems such as ERP and SRM

systems to closely monitor key indicators of the supply chain.Governance chapter Striving for excellence and achieving stability?? | Lizhong Sitong Light Alloys Group Co. Ltd. ???? Sustainability Report | ??

Responding to customers' sustainable development requirements

Stakeholder Communication In ???? we collected and summarized customer requirements for sustainable development and prepared response measures in

advance to meet customer demands. With the implementation of the Sustainable Development Due Diligence Directive CSDDD manage-

ment of safety sustainable procurement human rights and other aspects will be strengthened in accordance with the directive require-

We have established a comprehensive stakeholder communication mechanism to accurately identify stakeholders. Through meetings ments.regular visits survey questionnaires satisfaction surveys and other forms we maintain communication and exchange with stakehold- customer Sustainable development requirements Response measures of Lizhong Group

ers to understand their expectations and interests of the group. Based on our own situation we take measures to respond to and meet

the reasonable demands of stakeholders. Since ???? ??±?% recycled aluminum has been used in

Since ???? related products must use related products. Green certificates have been purchased

In addition Lizhong Group attaches great importance to the protection of investors' rights and interests and has formulated the Investor ??±?% recycled aluminum. Starting from since ????. Currently all production plants and correspond-

Relations Management System which clarifies the content and responsibilities of investor relations management work and establishes ???? the requirement for suppliers to use ing electrolytic aluminum suppliers have achieved ???%

long-term stable and benign cooperative relationships with investors. In ???? the company will conduct online performance exchange BMW green electricity has been proposed. green electricity usage through measures such as building

meetings organize on-site research roadshows and answer online interactive questions to enable investors to further understand the photovoltaic systems and purchasing green certificates

company's business situation and future development plans.During the reporting period the company held ? performance briefing

sessions and organized ?? research activities. Complete the CDP questionnaire every year Complete the CDP questionnaire on time every year and

maintain B

Main stakeholders Main communication content Main communication methods Communication frequency The carbon footprint of the main raw By planning the ratio of green aluminum and recycled

materials of a product will not exceed aluminum the raw materials of Mercedes-Benz products

Sustainable Profitability Hotline Regular/irregular Mercedes-Benz ?.?kgCO?e/kg in ???? ?kgCO?e/kg in ???? and purchasing carbon sinks and carbon credits as

Standardize corporate governance E-mail and carbon neutrality in ???? appropriate meet the carbon footprint requirements of

Mercedes-Benz's products

Improve information disclosure Working conference

Shareholders/Investors

Return to shareholders The general meeting of shareholders

Complete the CDP and SAQ questionnaires on time every

Observe Law And Discipline Stock exchange meeting Regular/irregular year and the results are as follows:

Complete the CDP and SAQ questionnaires

Pay Taxes According To Law Government meetings Lizhong Wheel Plate CDP results have maintained B- for many Volkswagen every year which requires a SAQ score of ?? years-

Government/regulatory Environmental Protection

Lawful disclosure of information or above

agencies Organize science popularization/visiting

Lizhong (Mexico) Co. Ltd. scored ?? points in SAQ

Drive Local Economic Development activities Tianjin Lizhong Wheel Co. Ltd. SAQ?? points

Integrity in performance Customer complaint platform Regular/irregular

Product quality Satisfaction survey Complete the CDP and EcoVadis questionnaires on Complete the CDP and EcoVadis question- time every year and the results are as follows:

Good service Professional training F.I.A.T naires every year which require a total CDP Result B-

Customers/Potential score of ≥ ?? for EcoVadis and a ≥ ?? for Responding to demands After-sale service business ethics EcoVadis has an overall score of ?? pointsCustomers EcoVadis scored ?? points in business ethics

Data privacy and security Regular visits

Basic rights protection Workers' congress Regular/irregular

Training and development Employee satisfaction survey The relevant products are planned to use ??%

Related products use ??% recycled recycled aluminum and ??% green electric aluminum

Health and safety Leadership interview Volvo aluminium and ??% green electric and the carbon reduction ratio can meet Volvo's

Employee care Internal oa system of the company aluminum requirements for reducing carbon emissions in the Staff whole life cycle of wheels by ??% from ???? to ????

Employee training and specialized

meetings

Sunshine procurement On site visit Regular/irregular

Industry exchange and Visiting reception EcoVadis must have a minimum score of EcoVadis scored ?? points for Labor & Human Rights

cooperation General Motors (GM) ?? in the three modules of Labor & Human Supplier qualification review Rights Business Ethics and Sustainable EcoVadis scored ?? points for Business Ethics and

Suppliers/Business Supply chain management

Partners Supplier communication platform

Procurement

EcoVadis scored ?? points for Sustainable Procurement

Supplier empowerment training

Charity and public welfare Public benefit activities Irregular According to the customer's requirements the EU Carbon

Protect the environment Science popularization and visiting Saic Passenger Fill in the EU Carbon Border Adjustment Border Adjustment Mechanism (CBAM) report is filled in a

activities Vehicle/EU Trader Mechanism (CBAM) report timely manner and the CBAM module is planned to be added

Public/Society Support community development to the carbon management platform of Lizhong Group

Regular visits/reception of visitors

Governance chapter Striving for excellence and achieving stability?? | Lizhong Sitong Light Alloys Group Co. Ltd. ???? Sustainability Report | ??

Information Disclosure Anti Commercial Bribery and

In order to standardize the company's information disclosure behavior Lizhong Group has formulated the Information Disclosure

Management System and Insider Information Informed Person Registration Management System. The company always adheres to the

principles of fairness impartiality and openness improves the information disclosure system timely accurately and completely Anti Corruption

discloses company information strictly follows the listing rules and standardized decision-making procedures protects the rights and

interests of investors objectively truthfully accurately and completely introduces the company's business management situation to Lizhong Group has a supervisory board and an audit supervision committee responsible for the group's anti commercial bribery and

investors maintains good communication and exchange with investors and strives to create good business performance feedback to anti-corruption work. In ???? Lizhong Group will continue to improve its anti commercial bribery and anti-corruption procedures.investors.At the supplier level Lizhong Group has formulated regulations such as Regulations on Selecting Suppliers and Business Cooperation with

As of December ?? ???? Lizhong Group has issued a total of ??? regular reports and interim announcements. In the ????-???? annual Suppliers and Regulations on Internal Personnel Dealing with Suppliers. Lizhong Group attaches great importance to the training and signing

evaluation of information disclosure work the company stood out among ???? listed companies and once again received the highest of the Sunshine Agreement requiring business departments to send Sunshine Cooperation Letters to Suppliers to suppliers and requiring

level of A-level in the annual evaluation of information disclosure. Thus Lizhong Group has been awarded this honor for three consecu- relevant personnel to learn the Sunshine Agreement. At the same time it is committed to establishing and using an electronic bidding

tive years. procurement platform.Within the Lizhong Group it has developed the Code of Conduct for Business Ethics

system based on the ISO ????? Anti Bribery Management System. An assessment was

conducted on the risks of commercial bribery and corruption and corresponding

systems were established to regulate the operation of risk areas and key links that are

prone to corruption in the management process. The company has improved its

management system for key links such as marketing procurement and quality

prevented internal and external corruption risks emphasized clauses such as avoiding

employee conflicts of interest and actively carried out the declaration and inspection

of relationships between employees and important stakeholders such as suppliers and

partners.To ensure the effective operation of the supervision mechanism the company has set

up reporting hotlines mailboxes and other methods to receive information on

violations. Employees and third parties who have dealings with the company as well Corruption Reporting Channel within

as the general public can report any fraudulent activities or illegal or criminal activities Lizhong group

related to the company's business. The company conducts a thorough investigation

into the reported content and provides timely feedback on the handling results. During the reporting period

Lizhong Group always prioritizes the privacy and security of complainants and is Lizhong Group held

committed to building a reliable feedback environment. The complainant's identity

and reported content are only accessible to authorized personnel from relevant

departments. Relevant information is stored through an encrypted system and is

strictly prohibited from being leaked to unrelated parties. We also follow standardized 7 people

investigation procedures for anonymous complaints to ensure that the fairness of Directors of lizhong group who received

handling is not affected by identity concealment. anti commercial bribery and anti-corrup-

tion training was

Lizhong Group disseminates the company's anti commercial bribery and anti-corrup-

tion management requirements through publicity and training promotes the corpo-

rate culture of integrity and self-discipline deepens employees' awareness of anti-cor- 754 people

ruption promotes the healthy development of the company and safeguards the

company's reputation and the legitimate rights and interests of shareholders. Management personnel was

12032 people

Total number of employees was

0 piece

Commercial bribery and corruption

occurred

Governance chapter Striving for excellence and achieving stability?? | Lizhong Sitong Light Alloys Group Co. Ltd. ???? Sustainability Report | ??

Case Strengthening the awareness of integrity and building a strong ideological defense line Anti Unfair Competition

In November ???? Lizhong Group organized a training on Integrity and Compliance Management and Risk Prevention Practice

with a total of ??? management and business employees participating. This training aims to strengthen the foundation of

clean and compliant management enhance employees' awareness of anti competitive behavior anti-corruption and anti Lizhong Group has formulated the Code of Conduct for Business Ethics to oppose the use of unfair competition methods such as fraud

bribery and improve the company's comprehensive risk management level. The training instructor will provide detailed false advertising monopoly and malicious defamation of competitors.explanations on the basics of integrity and compliance management behavioral norms and requirements risk identifica-

tion and assessment. Trainees can effectively enhance their professional competence and risk prevention ability through In trading activities follow the principles of legality voluntariness fairness integrity and mutual benefit do not disrupt market trading

case discussions and analysis. order and do not collude maliciously with relevant units in the same industry to harm the interests of the state and other operators. Do

not force the other party to sign contracts containing unfair or unreasonable terms do not harm the other party's legitimate economic

interests keep each other's trade secrets confidential and shall not illegally obtain disclose use or allow others to use the other party's

trade secrets. When engaging in transactions with relevant parties the contract clearly stipulates the types of services prices accep-

tance criteria and conditions for contract termination.Intellectual property protection

The technology research and quality centers of various departments of Lizhong Group coordinate the management of intellectual

property rights and implement the concept of sustainable development. We have formulated documents such as the Regulations on

Intellectual Property Management and the Intellectual Property Approval Form gradually improving the intellectual property management

process. Regularly organize employees to learn about intellectual property related laws and regulations and enhance the awareness of

intellectual property protection among all staff. Encourage employees to respect the intellectual property rights of others and avoid

behaviors such as plagiarism and plagiarism. In the future we will continuously improve intellectual property protection measures and

processes and regularly revise them. For acts that infringe upon the intellectual property rights of others or the company the company

will hold them accountable to the end.Antitrust and Fair Competition Risk Control During the reporting period

Regularly organize internal compliance training to enhance employees' risk awareness

and response capabilities set up communication phone numbers and email addresses

on the official website timely receive and handle external feedback and ensure compli- 0 piece

ant operations. In response to potential risks in the transaction process the legal depart-

ment collaborates with an external team of professional lawyers to comprehensively there were no incidents of unfair competition behavior or violations of

carry out a series of work including risk warning in-depth analysis accurate assessment anti-monopoly laws

timely declaration and proper handling to ensure transaction security and safeguard

legitimate rights and interests.Governance chapter Striving for excellence and achieving stability?? | Lizhong Sitong Light Alloys Group Co. Ltd. ???? Sustainability Report | ??

Addressing climate change

Environment Chapter

The Sustainable Development Management Committee under the board of directors as the management body for addressing climate

LOW CARBON GREEN AND change has established a comprehensive climate change management system effectively improving the company's management level in climate change and fully deploying the path of "Carbon Peak and Carbon Neutrality".Actively cooperate with audit planning to disclose the financial status of climate change related costs management.INTELLIGENT MANUFACTURING A full process climate risk management system covering "Identification Assessment Monitoring Response" has been constructed around the TCFD (Task Force on Climate-Related Financial Disclosure) framework and combined with industry practices and the management tools of

the carbon management platform developed by Lizhong Group climate risks are identified evaluated and classified annually and targeted

strategies are formulated to accurately control high priority risks actively respond to indirect climate risks in the upstream and downstream

of the supply chain and comprehensively ensure the stable development of the company.Risk identification and strategy

Addressing with Climate Change ??

Risk/ Main Probability Impact on Potential Opportunity categories Specific risks/opportunities of

Impact

size Time frame value chain Prioritization financial

Product Carbon Footprint ?? Types occurrence links impact

Some subsidiaries have been high medium Short -term operation medium Rising

Environmental Compliance Management ?? included in the local carbon and operating

market. With the tightening of the long-term costs

dual carbon policy more

Pollution Prevention and Control and Ecosystem Protection ?? subsidiaries will be included in the carbon market resulting in

higher compliance requirements

Sustainable Resource Management ?? and costs

The continuous increase in

Clean Technology Opportunities ?? medium medium mid-term operation medium Rising Policy and carbon quotas in the national operating

legal risks and local carbon markets may costsaffect production costs and

competitiveness

The EU Carbon Border high high short-term operation high Rising

Adjustment Mechanism (CBAM) operating

has begun to be implemented. If costs and

the CBAM reporting process and decreasing

the carbon emissions of products revenue

cannot be effectively controlled

it will increase additional carbon

Transition tariff costs

risk

Increased development costs for medium medium Mid-term operation medium Rising

Technical low-carbon emission and Long operating

risk technologies for existing term costs

products and services

In order to achieve the goal of high high Short-term and downstream high Decrease in

reducing carbon emissions for the medium-term operating

entire vehicle the host manufactur- revenue

ers have successively put forward

carbon reduction requirements to

Market risk the opposition group

The increase in procurement medium high Short-term and upstream high Rising

costs of low-carbon raw materials medium-term operating

and renewable energy costs

Reputation Reputation risk caused by failure medium high Short-term and upstream high Decrease in to achieve carbon reduction medium-term operation operating

risk targets downstream revenue

Environment Chapter Low carbon green and intelligent manufacturing?? | Lizhong Sitong Light Alloys Group Co. Ltd. ???? Sustainability Report | ??

Risk/ Probability Impact on Potential Dynamic monitoring

Opportunity Main categories Specific risks/opportunities of

Impact

size Time frame value chain Prioritization financial Types occurrence links impact

? Dynamic monitoring of transformation risks

Typhoon rainstorm flood and medium high Short-term and upstream medium Deprecia-

snowstorm may affect

Acute medium-term operation tion of fixed production facilities raw material downstream assets.Ris-

physical storage and logistics ing Lizhong Group has partnered with Lianhe

risk transportation leading to supply operating Equatorial Environmental Assessment Co. Ltd.chain interruption

Physical costs to successfully launch the Smart Carbon Star

risk Carbon Management Platform which has five

An increase in average

Chronic low medium Mid-term operation low Rising

core functions: organizing carbon inventory

temperature may lead to an and Long operating product carbon footprint carbon emission

physical increase in energy costs and a term costs analysis and statistics carbon asset manage-

risk decrease in outdoor work ment and carbon market trends. It can achieve

efficiency accurate accounting and business empower-

ment. Monitor the total carbon emissions and

The government has issued a high medium Short-term and operation high Decreased intensity of subsidiary companies on a monthly

series of green project subsidy medium-term operating basis to achieve dynamic monitoring of climate

policies to encourage industrial costs

enterprises to transform and risks and opportunities. At the same time we

upgrade and actively accept will integrate the highlights of energy-saving

policy dividends for green and carbon reduction management within

transformation Lizhong Group introduce new technologies

products and equipment from external

sources and reduce the carbon emission

The restart of China Certified medium high Mid-term operation medium Decreased

Voluntary Emission Reduction and Long operating intensity of our subsidiaries.Policy and (CCER) and the establishment of term costs and

a local carbon inclusive

law increased mechanism have promoted the revenue ?

progress of low-carbon Dynamic monitoring of physical risks

technology in Lizhong Group and

the development of CCER has

brought economic benefits Real time monitoring of local meteorological department data providing ?? hours warnings for typhoons floods and other events.Opportunity Vigorously carry out energy medium medium Short-term and operation medium Increase in

conservation and emission reduction medium-term operating

work and the surplus carbon quotas revenue Response measures

can bring economic benefits to

Lizhong Group

? Risk response measures for transformation

The market for low-carbon high high Mid-term operation high Decreased

emission products and services is and Long downstream operating

growing.Regularly simulate the term costs and

Products carbon footprint of products increased The Sustainable Development Management Committee constructs a carbon management system that

and corresponding to different raw revenue matches the Lizhong Group based on ISO????? and ISO????? standards. Each company is evaluated and

Services materials (thermal power A comprehen- assessed through monthly and annual reports and representative energy-saving and emission reduction aluminum recycled aluminum

sive carbon measures are extracted and promoted throughout the group.Reward companies with high scores annually to green aluminum) and their

impact on production costs management continuously improve and enhance the carbon management capabilities of Lizhong Group.audit system

In ???? according to the Carbon Inventory Management Process we will continue to organize our subsidiary

Energy Using low-carbon energy sources medium medium Mid-term operation medium Decreased

sources to improve resource efficiency and Long operating

companies to independently conduct carbon inventory inspections and issue monthly Lizhong Group Carbon

and reduce operating costs term costs Inventory Monthly Summary Analysis Report '.Lizhong Group collects internal energy-saving and carbon reduction management highlights through the

Carry out Lizhong Group Carbon Inventory Monthly Summary Analysis Report introduces external new technologies

Note: ?. Probability of occurrence: Refers to the frequency and likelihood of risks or opportunities occurring. Based on past data external carbon invento- products and equipment and reduces carbon emission intensity.scenarios policy implementation progress and expert predictions the probability of occurrence ranges from low to high. ry check

?. Impact size: Refers to the size of the impact on the likelihood of risk or opportunity occurrence taking into account factors such as business

model value chain and financial condition with the impact size ranging from low to high. In ???? according to the Lizhong Group Carbon Quota Management Process unified management of carbon

quota work has been achieved.While meeting the requirements of national and local environmental protec-

?. Time frame: The time frame in which different risks and opportunities affect the company is divided into short-term (?-? years) tion departments the company can increase economic benefits through carbon asset trading.Tianjin Lizhong

medium-term (?-? years) and long-term (more than ? years).Carbon quota Wheel Co. Ltd. and Tianjin Xinlizhong Alloy Group Co. Ltd. have completed their carbon quota obligations for

?. Impact on value chain links: Refers to upstream (procurement raw materials) operations (production manufacturing assembly testing) compliance ????.and downstream (marketing sales customer service).?. Prioritization: Taking into account factors such as probability of occurrence impact size and time range combined with the actual

situation of the company the priority ranking is divided into low medium and high.Environment Chapter Low carbon green and intelligent manufacturing?? | Lizhong Sitong Light Alloys Group Co. Ltd. ???? Sustainability Report | ??

To deepen digital transformation we will launch the upgrade of the Smart Carbon Star carbon management

Lizhong Group has established a procurement and utilization center for recycled metal raw materials established a platform strengthen energy consumption monitoring and optimization throughout the entire process and achieve

sound management system for the procurement supply use and sales of recycled metals and continuously increased refined management of carbon emissions. The platform will add multilingual features to meet international and

the use of recycled aluminum recycled silicon and other materials. Currently the highest proportion of A??? recycled

Upgrade of diversified business needs. At the same time CBAM management module and supplier management module will Use of recycled aluminum added can reach ??%. According to customer requirements we can customize raw material ratio combina- be added to unify the management of companies included in CBAM leveraging the platform advantages to meet

aluminum recycled tions to meet carbon emission requirements and enhance the company's core competitiveness. In the future we will digital carbon

management the requirements of EU CBAM. By horizon highy comparing and analyzing product carbon footprint data identifying silicon and green focus on increasing the primary utilization of green aluminum and recycled aluminum accelerating the development

platform supplier rankings and selecting raw material suppliers based on customer carbon reduction requirements unified aluminum of low-carbon high-end aluminum alloy products and reducing carbon emissions throughout the product lifecycle. management of raw material real-world carbon emissions data and carbon footprint data can be achieved.? Physical risk response measures

Response

measures

Measures such as renovating the Continuously improving the climate

drainage system of factories in adaptation system building a risk

high-risk flood prone areas defense line through technological

inshighing flood barriers in innovation and open collaboration

storage areas and adding and contributing the resilience

shading facilities in high-tem- value of the industrial chain to the

perature areas. global carbon neutrality goal.We have established a diversified Regularly conduct extreme

procurement policy and established a weather emergency drills

multi regional supplier list for key raw Real time monitoring of local to enhance the risk

materials to avoid a single climate risk meteorological department awareness of all staff.point. Incorporate climate risk assess- data providing ?? hour

ment into supplier admission criteria warnings for typhoons

and promote upstream partners to floods and other events.We can save resources and energy by recycling a ton of waste aluminum develop disaster reduction plans.??.? billion

????? kwh of electricity saved kilowatt hours of electricity saved Indicators and Objectives

annually

?.?? million tons Lizhong Group actively responds to the global temperature control targets advocated by the Paris Agreement and China's "Dual Carbon"

of CO2 and SO2

Others strategy integrating carbon reduction into its core development strategy. The company promises to ensure the achievement of the national ?? tons of CO2 and SO2 emissions reduced emissions

reduced annually The grand goal of "Peaking Carbon Emissions Before ???? and Striving To Achieve Carbon Neutrality Before ????" and has systematically

resources planned and formulated short-term medium-term and long-term carbon reduction goals.we saved for

?? cubic meters of water saved the world

??.? million in ???? Long term goal (over ? years)??million tons of

cubic meters of solid waste Mid term goal (?-? years)

water saved reduced annually Short term goal (? year) Continuously deepen the green and

?? tons of ore mining reduced annually Others low-carbon transformation work

?.?? million tons Based on achieving short-term together from multiple dimensions such

of ore mining By ???? carbon emission goals analyze the carbon emission as organizational structure technological

reduced annually intensity will decrease by ?% sources of the company's entire innovation and corporate culture and

?? tons of solid waste discharge reduced compared to ????. business chain implement precise work with upstream and downstream

emission reduction strategies and partners in the industrial chain to build a

achieve peak product carbon low-carbon ecosystem ultimately

emission intensity by ????. achieving the vision of carbon neutrality.Environment Chapter Low carbon green and intelligent manufacturing?? | Lizhong Sitong Light Alloys Group Co. Ltd. ???? Sustainability Report | ??

To achieve the established goals we have developed corresponding implementation paths including: continuously monitoring the compa-

ny's carbon emissions on a monthly basis. Deepen research on clean energy and CCER technologies.Actively carry out low-carbon publicity

activities to encourage employees to reduce energy consumption and carbon emissions. Actively participate in national climate governance Product Carbon Footprint

and strengthen experience exchange and sharing with other enterprises.Lizhong Group uses company activity data and SimaPro ?.?.?.? to calculate product carbon footprint with its database being Ecoinvest

?.?.?. The methodology of life cycle impact assessment follows the IPCC ??? year greenhouse gas emissions assessment method (IPCC ????

GWP ???A) to calculate the carbon dioxide equivalent emissions of products from raw material extraction to manufacturing stage (cradle to

gate) with reference to ISO ?????:????.Product carbon footprint accounting and certification

The Sustainable Development Department of Lizhong Group requires its subsidiaries to regularly select representative products and use the

Smart Carbon Star carbon management platform for carbon footprint accounting. The accounting results need to be approved by the

department head and general manager of the company before being submitted to the Sustainable Development Department for archiving.Through this process subsidiary companies systematically evaluate and optimize the carbon emission performance of each link from raw

material procurement production transportation use to final disposal based on customer requirements for carbon footprint. As of Decem-

ber ?? ???? Lizhong Group has selected ?? typical product models completed carbon footprint accounting according to ISO?????

methodology and obtained certification from Rheinland Testing and Certification Services (China) Co. Ltd. This measure provides a

scientific basis for the company's carbon reduction work clarifying the direction and goals for improvement.Accounting standard: ISO ?????-?:????

Accounting method:

Determine organizational and operational boundaries: Identify which activities and facilities fall within the scope of accounting.Identify emission sources: Determine the greenhouse gas emission sources within the organization. Common emission sources

include fixed combustion emissions mobile combustion emissions process emissions and fugitive emissions.Data collection and processing: Collect activity data and emission factors related to emission sources.Emissions calculation: Use appropriate calculation methods to calculate greenhouse gas emissions.The calculation methods

include emission factor method mass balance method and actual measurement method.Report preparation and verification: According to the requirements of ISO ?????-? standard generate an enterprise carbon

emission inventory report and conduct internal and external verification to ensure the accuracy and reliability of the data.During the reporting period

Product lifecycle emission reduction path

756000 tons 445000 tons 311000 tons ? Product design for emission reduction

Total carbon Scope ? emission Scope ? emission

emissions Lizhong Group prioritizes the planning of a recycled aluminum application production line based on a ??% ratio which includes approxi-mately ??% of in-house waste materials (processing residues scrapped wheel hubs at the rear station) and ??% of purchased A???

aluminum alloy scrap wheel hub recycled materials. Compared to using ???% thermal aluminum as raw material the carbon footprint of

1.69% 4.55% 10.34% the product can be reduced by about ??%.

The Lizhong Wheel Group sector： The Lizhong Alloy Group sector： The Sitong New Materials sector： Lizhong Group actively researches and develops lightweight technology for aluminum alloy wheels meeting the requirements of high-end

The carbon emission intensity per The carbon emission intensity per The carbon emission intensity per passenger cars for lightweight and high-strength development of aluminum alloy wheels while achieving the goal of energy conservation

unit producthas decreased unitproduct has decreased unitproduct has decreased and carbon reduction.Environment Chapter Low carbon green and intelligent manufacturing?? | Lizhong Sitong Light Alloys Group Co. Ltd. ???? Sustainability Report | ??

? Supply chain emissions reduction ? Transportation emission reduction

Lizhong Group has formulated the Sustainable Procurement Process which includes the carbon footprint of supplier products in the scope In ???? Lizhong Group continued to expand the scale of aluminum liquid direct supply projects within a radius of ??KM and reached

of inspection in the procurement of raw materials and incorporates carbon footprint requirements into procurement contracts. Enterprises aluminum liquid direct supply cooperation with ?? customers achieving aluminum liquid sales of ?????? tons. Through the "One-To-One"

are required to provide carbon footprint certification certificates and implement carbon reduction measures striving to build a green supply direct supply mode of aluminum liquid customers can save the process of remelting aluminum ingots directly reducing the consumption

chain. of ?????MWh of electricity energy and ?? million m? of natural gas energy reducing greenhouse gas emissions by ????? tCO?e and promot-

ing the industrial chain to move towards low-carbon and green production. At the same time reducing nitrogen oxide emissions by ?? tons

and sulfur dioxide emissions by ?.? tons vividly illustrates the sustainable development concept of "Technology Energy Conservation Helps

? Production emission reduction Environmental Protection". It not only strengthens the synergy efficiency of the industrial chain but also significantly reflects the social

value of green development.Lizhong Group actively explores new models of energy conservation and emission reduction development by building new photovoltaic

power generation and continuously increasing the proportion of clean energy use. By implementing measures such as retrofitting high

energy consuming equipment optimizing energy efficiency increasing the proportion of waste heat utilization and achieving sustainable

energy conservation.High efficiency energy-saving and environmenhighy friendly furnace group independently designed by Lizhong Group

The ways of molten aluminum transportation and supply of Lizhong Group

The overall planning of Lizhong

Group's distributed photovoltaic

project is ??.??MW which will

gradually have the ability to ? Recycling and emission reduction of recycled aluminum

generate electricity and connect

to the grid by ???? with an Lizhong Group reduces carbon emissions throughout the entire lifecycle of its products by increasing the use of recycled materials.average annual power generation

of about ??.?? million kWh.Prioritizing the use of green

electricity in the factory area

during the production process to

reduce emissions during the

production process.Environment Chapter Low carbon green and intelligent manufacturing?? | Lizhong Sitong Light Alloys Group Co. Ltd. ???? Sustainability Report | ??

Environmental Compliance Management

Lizhong Group has incorporated environmental compliance management into its corporate strategy. The company fully complies with the

ISO????? environmental management system standard strictly implements the requirements of the clean production audit system and thorough-

ly implements environmental regulations such as the Clean Production Promotion Law. The company has systematically built a full chain environ-

mental management system covering source prevention process control and end of pipe treatment. The company promotes efficient resource

utilization and waste reduction by implementing lean production management mode and energy-saving and consumption reduction target

responsibility system achieving dual improvement of environmental management performance and operational quality.The Sustainable Development Management Committee coordinates environmental compli-

ance management establishes a three-level management structure at the group sector and During the

company levels and conducts monthly summaries quarterly meetings and annual reporting period

monitoring of subsidiary companies. All companies have passed ISO????? environmental

management system certification. According to the requirements of the system and relevant

provisions of the Environmental Protection Law of the People's Republic of China Lizhong 60 +

Group has formulated the Compilation of Safety and Environmental Management Systems.environmental emergency drills

Lizhong Group implements a three in one environmental risk management mechanism of

"Prevention-Monitoring-Emergency". Every year a systematic investigation of environmental

risk sources is conducted and risk items such as waste gas wastewater and solid waste in

the production process are graded and evaluated. A dynamic list of major risk sources is Over 1200

established and a "one source one policy" control plan is implemented. participants involved

In response to sudden environmental incidents the group requires its subsidiaries to

prepare an Environmental Emergency Response Plan establish a three-level emergency Established emergency coordination

response mechanism and equip professional emergency teams and material reserves. channels with local governments to activate response procedures within

Organize environmental accident simulation drills every six months conduct more than ?? ?? minutes

environmental emergency drills during the reporting period with over ????? participants

and establish emergency linkage channels with local governments to ensure that emergency

procedures are activated within ?? minutes.Lizhong Group has incorporated environmental protection capacity

building into its employee development system. In ???? the entire

group has conducted over ?? environmental protection training

sessions covering more than ???? key positions such as production

technology and procurement with a total training duration of over

车轮集团公司污水处理站采用“超滤+反渗透”工艺，将废水进行再次处理，使用次氯酸 ??? hours.The training content covers modules such as interpreta-tion of environmental regulations and practical implementation of

钠、亚硫酸氢钠、阻垢剂，进行水质消毒脱氯防结垢，中水回用至模具冷却、工件冷却、涂 clean production. At the promotional level the company has createda multi-dimensional environmental protection culture battlefield:

装预清洗、厕所冲洗、花卉浇灌等。 regularly carrying out theme activities such as "World EnvironmentDay" and "Energy Conservation Promotion Week" and holding ??

events such as environmental knowledge competitions and waste

utilization competitions in ????.Through internal electronic screens

and enterprise work groups more than ??? environmental protec-

tion cases were promoted and more than ?? visual environmental

protection billboards were set up in the workshop to strengthen the

environmental awareness of the entire group.During the reporting period

Lizhong Group

0 incidents

there were no environmental penalty incidents

车轮集团公司中水回用设备 reported by Lizhong Group. The picture shows the Environment Day event

Environment Chapter Low carbon green and intelligent manufacturing?? | Lizhong Sitong Light Alloys Group Co. Ltd. ???? Sustainability Report | ??

Pollution Prevention and Control and Water pollutants

Ecosystem Protection Emissions in ???? unitchemical oxygen demand ??.?ton

Ammonia nitrogen ?.?ton

Pollutant Emission

Lizhong Group has established a three-level pollutant emission management system consisting of "Group Strategic Coordination Sector Collab- During the

orative Execution and Precise Factory Implementation" clarifying the responsibilities of each level to ensure efficient and coordinated pollution The subsidiary of Lizhong Group strictly manages wastewater pollutants in accordance with reporting period

control work. All companies have passed the ISO????? environmental management system and some companies have environmental the Wastewater Station Management Standards and Wastewater Discharge Management

performance ratings of B or above and have obtained exemptions for strategic emerging enterprises. System and sets annual wastewater pollutant reduction targets to ensure a ?% decrease in emissions by ???? compared to the previous year.Subsidiaries and production plants under

Lizhong Group are equipped with comprehensive sewage treatment facilities and online no significant administrative

?.Coordinate the integration of resources and standardization across various sectors monitoring systems for pollutants which monitor the real-time treatment of wastewater. After

penalties were imposed for

pollutant emissions.the comprehensive wastewater enters the urban sewage treatment plant for treatment the

The Sustainable Development Department coordinates the development of pollutant emission water quality meets the relevant national and local discharge standards.management strategic plans supervises the company's pollutant treatment situation and ensures

compliance with pollutant emissions regulations.?. Refine sector emission targets and internal inspections Waste Disposal

The responsible persons of each department shall formulate the implementation rules for pollutant

emission management in their respective departments based on the strategic plan issued by the

Sustainable Development Department guide their subsidiaries to implement environmental protec- Lizhong Group strictly complies with national and local environmental protection laws and

During the

tion equipment renovation treatment process upgrading and carry out special inspections and regulations such as the Solid Waste Pollution Prevention and Control Law of the People's

reporting period

hidden danger investigations organize environmental protection training and experience sharing. Republic of China and the General Industrial Solid Waste Storage and Landfill Pollution Control Standards. It strictly manages the generation transfer and storage of solid waste and

requires its subsidiaries to set solid waste emission reduction targets setting a ?% reduction 23624 tons

?.Implement daily operation and management of pollutants in subsidiary companies in solid waste by ???? compared to the previous year. Through measures such as using general solid waste were generated

recycled packaging materials and strengthening production process management it and properly and effectively disposed of

The safety and environmental protection department of the subsidiary is responsible for the daily effectively promotes the recycling and reuse of solid waste.operation and management of the company's pollutant treatment including process optimization

equipment maintenance daily emission data monitoring and ledger recording. It implements the For hazardous waste the Hazardous Waste Management System has been formulated which 60098 tons

rectification requirements issued by the superior department and provides feedback on the provides intelligent online supervision and management from the aspects of collection hazardous waste are generated

implementation of the rectification. storage transportation utilization and disposal. A professional third-party team has been

hired to dispose of hazardous pollutants ensuring that all pollutants are safely and harmless-

Atmospheric pollutants ly treated in accordance with relevant national laws and regulations.The company has set an 100 %

annual target for reducing hazardous waste with a ?% decrease in hazardous waste genera- with a compliance treatment rate of

tion by ???? compared to the previous year.Volatile Organic Compounds (VOCs) ??.?ton Emissions in ???? unit

Particulate ??.?ton

Ecosystem and Biodiversity Conservation

Lizhong Group strictly abides by relevant laws and regulations

such as the Air Pollution Prevention and Control Law of the The operational points of Lizhong Group are not within the key protected areas and their production and business activities do not have a

People's Republic of China. According to the Compilation of significant impact on the ecosystem and biodiversity.Safety and Environmental Management Systems it sets an

annual target to reduce the emission of waste gas pollutants In ???? Lizhong Group formulated regulations such as the Regulations on the Management of Biodiversity Protection and the Regulations on

ensuring a ?% decrease in pollutant emissions by ???? the Management of Alien Species and conducted a biodiversity assessment to form the Biodiversity Assessment Report. Reduce dependence

compared to the previous year. It also conducts daily manage- on primary mineral resources through a recycling network of recycled aluminum resources (covering multiple regions both domestically and

ment of waste gas in accordance with the Management internationally) indirectly reducing the damage to habitats caused by mineral extraction. Promote recyclable packaging materials to reduce the

Standards for Pollutant Emission Ledger and Waste Gas loss of forest resources caused by disposable packaging. And carry out greening projects in the factory area to create small ecological spaces and

Emission Management System.As of December ?? ???? promote regional micro ecological balance.subsidiaries of Lizhong Group have continuously inshighed

corresponding environmental protection facilities in various In the future Lizhong Group will continue to expand its production capacity of recycled aluminum explore eco-friendly new materials and

production plants and production lines including "Zeolite processes increase the use of recycled packaging materials and actively participate in ecological restoration projects (such as afforestation and

Molecular Sieve Rotary Adsorption Concentration+RTO" bag wetland protection) to reduce the interference of production activities on surrounding biological habitats.filter online monitoring system etc. All exhaust emissions

meet the relevant national and local emission standards and

some companies have emission concentrations lower than

the local limit by more than ??%.Environment Chapter Low carbon green and intelligent manufacturing?? | Lizhong Sitong Light Alloys Group Co. Ltd. ???? Sustainability Report | ??

Waste Heat Recovery and Utilization System

Sustainable Resource Management Case

Research and Development Objective: To fully utilize various

waste heat resources in the factory reduce energy consump-

tion and achieve low-carbon sustainable development.The Sustainable Development Management Committee of Lizhong Group coordinates the management of energy resources and circular

economy establishes the strategic orientation of "Energy Conservation Consumption Reduction and Continuous Improvement" and incorpo- Functions and characteristics of waste heat recovery and

rates sustainable resource utilization into its core strategy.The equipment department of the group optimizes the use of energy and resources in utilization system:

accordance with program documents such as the Energy and Resource Control Procedure and the Energy Operation Management Procedure

promotes technologies such as circular water use and frequency conversion control strengthens equipment energy efficiency monitoring and ?. Combined with the monitoring system of the air compres-

eliminates outdated production capacity and ensures full lifecycle management of resources. sor station recover the heat generated during the operation of the air compressor through oil-water heat exchange and

improve the working environment of the equipment.Energy utilization ?. Utilize intelligent electronic control systems to use the heat

exchanged hot water for production and daily use reducing Industrial waste heat utilization

energy consumption.Lizhong Group actively carries out energy management work standardizes energy management system certification activities and all major

companies have passed ISO ????? energy management system certification. They have formulated the Energy Use and Statistical Analysis ?. The utilization of factory waste heat can save ? million

Management Process set energy management related goals optimize energy consumption structure and continuously improve the energy cubic meters of natural gas annually.management level of the enterprise.Lizhong Group actively uses clean energy continuously increasing the proportion of clean energy use through the construction of new photovol-

taic power generation transforming high energy consuming equipment continuously promoting low-temperature waste heat utilization to save Water resources utilization

gas use optimizing energy efficiency and achieving sustainable energy conservation.On this basis the group sets an annual target for advanced

energy consumption per unit and achieves a continuous decrease in unit consumption by benchmarking with its subsidiaries every month. Lizhong Group attaches great importance to water resource protection and is committed to building a water-saving enterprise.The company

Tianjin Lizhong Light Alloy Forging Co. Ltd. plans to establish an energy management system to achieve dynamic monitoring of energy strictly complies with relevant laws regulations and local policies such as the Water Law of the People's Republic of China and has

consumption and promote digitalization and visualization of energy management.By finely managing controlling and optimizing the structure established a three-level water resource management structure from top to bottom responsible for formulating water resource management

processes and key elements of energy consumption in the production process the system will accurately measure and analyze the water strategies and performance evaluations. The "Water Balance Test Management Regulations" will be formulated and completed by ????.electricity and gas consumption of the entire factory each production process each shift and key energy consuming equipment.At the same

time an energy consumption cost model is generated based on monitoring data and energy consumption benchmarking management is The subsidiary of Lizhong Group regularly introduces professional testing institutions to conduct water balance tests. Through strengthening

carried out to improve the company's energy utilization efficiency. management and technological transformation the goal of water conservation consumption reduction and emission reduction is achieved laying the foundation for building a water-saving enterprise.By inshighing advanced reclaimed water reuse equipment the maximum reuse

of water resources can be achieved ensuring that the overall water conservation of the group reaches the industry's first-class level.Goal: By the end of ???? the total amount of reclaimed water used by Lizhong Group will increase by ??% compared to ????.Case Reclaimed water reuse system

Baoding Lizhong Wheel Co. Ltd. and Tianjin Lizhong Wheel Co. Ltd. use the "Ultrafiltration + Reverse osmosis" process to reprocess the

wastewater after treatment. Sodium hypochlorite sodium bisulfite and scale inhibitors are used for water disinfection dechlorination and

scaling prevention. The conductivity of the produced water can be less than ?? μ S/cm.The company has now achieved the reuse of the

generated reclaimed water for processes such as mold cooling workpiece cooling and pre cleaning of coatings with an annual reclaimed

water consumption of approximately ?????? tons.Index unit ????

Reclaimed water usage ????? cubic meters ??.??

Fresh water extraction volume ????? cubic meters ???

Fresh water extraction intensity ????? cubic meters/million industrial output value ?.????

Case Recycled A356 Low Carbon Alloy Material (LZRA356)

Total water intake ? ????? cubic meters ???

Water recycling utilization rate ? / ??.??%

Research and Development Objective: To replace electrolytic aluminum with waste aluminum and achieve low-carbon and green manufacturing

of A??? aluminum alloy and A??? aluminum alloy products. Total water consumption ? ????? cubic meters ???

Technical achievements: Domestic invention patent application ????????????.?. After investigation the technical level is internationally Water consumption density ????? cubic meters/million

advanced. industrial output value

?.????

Advantages of alloy: The proportion of using waste aluminum instead of electrolytic aluminum reaches ??%. Compared with using electrolytic ?. Calculation method: Fresh water extraction volume + Alternative water extraction volume

aluminum the performance is the same the carbon emissions are reduced by about ?.? tons per ton and the material cost is low. ?. Calculation method: (Recirculated volume / (Recirculated volume + Withdrawn volume)) × ???%

?. Calculation method: Total water withdrawal ? Total water discharge

Environment Chapter Low carbon green and intelligent manufacturing?? | Lizhong Sitong Light Alloys Group Co. Ltd. ???? Sustainability Report | ??

circular economy Lizhong Group always adheres to the green concept of "Harmless Elements and Beneficial Harmless Elements" in recycled aluminum alloys and creatively proposes the "Three Super One Micro and Two Ratio" production technology for recycled aluminum alloys. The low-carbon recycled

aluminum A??? alloy developed by the group can reduce ?? tons of carbon dioxide emissions and save ?? tons of water for every ton produced.At the beginning of its establishment Lizhong Group adhered to the corporate philosophy of "limited primary metals unlimited recycling

and reuse development of waste metal recycling and processing and manufacturing of advanced aluminum alloy materials and products"

actively practicing corporate social responsibility and pursuing sustainable development of the enterprise.The company formulates clear

plans sets specific goals and promotes green and low-carbon transformation through practical actions.In ???? the company's procurement of recycled aluminum resources increased by ??% year-on-year and its revenue from recycled

aluminum increased by ??.?% year-on-year demonstrating a strong growth trend.In ???? the company plans to invest ?????? tons of

recycled aluminum in product production to further enhance the level of resource recycling.Recycled Aluminum Application Products

Promote the use of recycled packaging materials

Lizhong Group actively responds to national sustainable development and environmental policies and continues to promote the use of

PRIMARY METAL IS LIMITEDRECYCLING IS UNLIMITED recyclable packaging materials.By reducing the use of disposable packaging materials and choosing recyclable materials and recyclable

Native metal finite cycle metal infinite packaging we can not only reduce the loss of forest resources but also decrease the amount of waste generated.Specific measures include:

Optimize packaging design Promote green packaging Strengthening management

use recyclable packaging materials to Promote the use of environmenhighy By enhancing packaging management

reduce the use of disposable packaging. friendly packaging materials in the in the production process improving

In ???? the company's domestic supporting customers' green circular packaging orders reached ?.??? million accounting for ??.?%.The supply chain to reduce the impact on resource utilization and reducing waste

target for ???? has been raised to ?.??? million units.In terms of overseas markets ?? supporting customers including Thailand and Mexico the environment. emissions.have promoted the use of recycled packaging. The order volume reached ?.??? million units in ???? accounting for ??.?% and is planned

to increase to ?.??? million units in ????.In addition Lizhong Group continues to deepen sustainable supply chain management promote green procurement practice green office

and promote collaborative carbon reduction in the industrial chain committed to supporting global green development. Lizhong Wheel currently has ?? domestic supporting customers of which ?? have promoted the use of recycled packaging materials. In

???? the order volume for using recycled packaging materials was ?.??? million accounting for ??.?% of all domestic supporting customer

orders.The target for domestic customers to use recycled packaging materials by ???? is ?.??? million units.Recycling of recycled aluminum

The company is a leading enterprise in the domestic recycled aluminum alloy industry with ?? years of experience in recycling processing The amount of recycled packaging materials used by domestic supporting customers

and reusing recycled aluminum technology and talent advantages continuously promoting the recycling of renewable resources.The compa-

ny fully leverages the regional layout of ?? domestic factories and the advantages of purchasing sorting and processing bases for recycled ???? ???.?

aluminum in Baoding and Jiangsu further enhancing the recycling and utilization of recycled aluminum resources within the regional

radius.With the commissioning of the Thai recycled casting aluminum alloy project the company has further expanded its overseas procure- ???? ???.?

ment channels for recycled aluminum raw materials promoting the global layout of the company's recycled aluminum resource recycling

and utilization.At the same time the company is actively expanding its automotive dismantling business and further expanding its advantag- ???? ???.?

es in utilizing recycled aluminum resources. Currently the company has signed a memorandum of understanding with NIO on vehicle ???.?

recycling aiming to maximize the value added of vehicle material recycling and achieve circular economic benefits for vehicle materials. ????

Eleven overseas supporting customers of Lizhong Wheel (including Thailand and Mexico) have promoted the use of recycled packaging

materials. In ???? the number of orders using recycled packaging materials reached ?.??? million accounting for ??.?% of all overseas

supporting customer orders.The target for overseas supporting customers to use recycled packaging materials by ???? is ?.??? million units.The amount of recycled packaging materials used by overseas supporting customers

???????.?

Screening machines Flotation machines Classification equipment

???????.?

Environment Chapter Low carbon green and intelligent manufacturing?? | Lizhong Sitong Light Alloys Group Co. Ltd. ???? Sustainability Report | ??

Harmless disposal of hazardous waste aluminum ash

Hebei Sanyi Renewable Resources Utilization Co. Ltd. is a wholly-owned subsidiary of Lizhong Group established in ????. The equipment and Opportunities in Clean Technology

production lines are constructed using advanced technology promoted by the Ministry of Ecology and Environment all of which are green

products for resource recycling. The company processes ?????? tons of various industrial waste annually (including a ?????? ton aluminum

ash processing production line which is a demonstration project of the Ministry of Ecology and Environment's Solid Waste Center). In

accordance with the relevant requirements of the State Council's Pilot Work Plan for the Construction of a Waste Free City the company aims to

minimize the impact of solid waste on the social environment and achieve the goals of recycling turning waste into treasure harmless Clean technology strategic planning

hazardous waste and resource utilization making contributions to building a waste free city in the Beijing Tianjin Hebei region.Lizhong Group is anchored to its long-term goal of becoming a leading global supplier of low-carbon green and sustainable light alloy

materials and automotive components strengthening sustainable development management from the board of directors to its subsidiar-

ies.The short-term goal is to focus on improving the technological innovation system accelerating the formation of "New quality Productivi-

ty" promoting the large-scale application of "regenerated" and "Heat Free Alloy" new products from ???? and achieving profit accumulation.In terms of technological research and development we adhere to the "Independent + Cooperative" model guided by market demand

actively optimize industrial layout and improve product technical indicators through overseas mergers and acquisitions and independent

research and development.Promote lean green and low-carbon production digital and intelligent transformation enhance the processing

and utilization capabilities of recycled aluminum and achieve dual circulation of domestic and foreign resources.By implementing a clean

technology strategy we strive to achieve a win-win situation between economic and environmental benefits and enhance our core competi-

tiveness and market influence.Innovation capability in the field of clean technology

Lizhong Group has demonstrated strong innovation

capabilities in the field of clean technology not only

establishing ?? national and provincial enterprise

technology centers but also jointly establishing ?

product technology research and development centers

internationally.Green office

As a leader in the domestic non heat treated alloy materi-

als and recycled aluminum alloy industry the company

Lizhong Group has always regarded green office as one of the important measures to achieve sustainable development committed to not only obtained the invention patent for "Low-Carbon

creating a low-carbon and efficient office environment and practicing environmental responsibility through practical actions. Recycled Non Heat Treated Aluminum Alloy" in May ????

but also has strong recycled aluminum processing

capabilities laid out ?? domestic recycling bases and

expanded overseas production capacity.In addition the

"Key Technology Research and Application of Green Low

carbon Aluminum Alloy Wheels" project developed by

Baoding Lizhong Wheel Manufacturing Co. Ltd. has won

the third prize for promoting productivity in China

Implementing paperless demonstrating its innovative vitality.office the company has

significantly reduced the use The first enterprise with a complete technology industry chain for aluminum alloy wheels

Comprehensively of paper documents and

promote the use of achieved paperless office

energy-saving equipment through digital office

including LED lighting platforms and cloud

energy-saving air collaboration tools (OA

conditioning and systems).high-efficiency office

equipment.Encourage green travel

encourage employees to

use low-carbon modes of

transportation such as

public transportation

cycling or carpooling and

support green travel As of December ?? ???? Lizhong Group has obtained a total of ??? patents.choices.Environment Chapter Low carbon green and intelligent manufacturing?? | Lizhong Sitong Light Alloys Group Co. Ltd. ???? Sustainability Report | ??

Green factories and green supply chains Case Low carbon non heat treated aluminum alloy material

Lizhong Group takes green factory construction as its core comprehensively promotes the layout of green supply chain and continues to

lead the industry's green transformation.The company adheres to the dual wheel drive of "Environmental Friendliness" and "Energy Efficien-

cy" and creates a green production model throughout the entire lifecycle by optimizing production processes improving resource utilization In ???? Lizhong Alloy Group will further increase its efforts to promote the research and development of

efficiency and reducing pollution emissions.As of December ?? ???? the company has successfully built ? national level green factories ? low-carbon heat free aluminum alloy materials. The LZHM-?? alloy developed has good balance of strength

provincial level green factories and ? municipal level green factory and has been awarded ? national level green supply chain management and toughness especially with a high allowable upper limit of impurity elements and low-carbon advantag-

enterprises and ? provincial level green supply chain management enterprises. es.The alloy is subjected to die casting tests with a ??% proportion of scrap aluminum added. The tensile

strength is ≥ ???MPa the yield strength is ≥ ???MPa and the elongation rate is ≥ ??%. This alloy is suitable

for large integrated aluminum alloy structural components such as the rear floor front engine compart-

ment battery tray etc. of new energy vehicles.Case Research and development of A356 multi-stage recycled aluminum application technology In November ???? LZHM-?? recycled low-carbon non heat treated cast aluminum alloy material won the

Excellence Award at the ?th Lingxuan Awards.The Wheel Group Technology R&D Center collaborates with Lizhong Alloy Group and Sitong New Materials Company to conduct research on

the application technology of A??? multi-stage recycled aluminum recycling in partnership with major automakers such as Ideal BMW and

Honda.With the group's industry position resources and full industry chain advantages combined with independently developed microal-

loying and aluminum liquid purification technologies remarkable achievements have been made in Fe phase treatment and slag removal

which have been recognized by automobile manufacturers and reached the international leading level.In terms of project progress and implementation effectiveness in the second phase of BMW's multi-stage recycled aluminum application

verification the chemical composition meets the requirements of A???.? and after microalloying technology treatment the mechanical

properties and bench tests of the products are qualified. All products have been produced using multi-stage recycled aluminum.The Institute

of Melting and Casting Technology in collaboration with relevant departments has conducted multiple verifications of potential alloy Case Tianjin Xinli Zhong Alloy Group Co. Ltd. was approved for a Global Environment Facility project

composition formulas for the fourth stage. The optimal formula has completed one round of online verification and the mechanical proper-

ties of the product are qualified.In addition BMW is actively promoting the project and the application verification of different proportions of

recycled aluminum by Honda has also been completed.On November ? ???? the implementation plan for the Best Feasible Technologies/Best Environmental Practices (BAT/BEP) demonstration

activity for recycled aluminum enterprises prepared by Tianjin Xinli Zhong Alloy Group Co. Ltd. passed expert review smoothly.This project

has participated as a typical case in the Global Environment Facility's "Green Production and Sustainable Development Project for China's

Recycled Aluminum Lead Zinc and Lithium Industries" with a total investment of ??.???? million US dollars (approximately ???.?? million

yuan) and a grant of ?.?? million US dollars (approximately ?.??? million yuan). The main goal is to build a demonstration project for

Case Primary Utilization Project of Solid Forging Waste intelligent control and collaborative emission reduction of dioxins throughout the entire process through technological innovation in source control process optimization and end of pipe treatment.The project is expected to be completed by the end of ???? with an estimated

reduction of ??.??gTEQ in dioxin emissions ??.?% in comprehensive energy consumption ???? tons of carbon dioxide emissions and an

increase in aluminum recovery rate from ??.?% to ??.?%.To enhance product competitiveness and meet the requirements of green and low-carbon development Lizhong Group plans to recycle and

reuse forging product waste.By verifying the addition ratios of different waste materials (??% and ???% aluminum chips) optimizing the

aluminum liquid refining and bar casting processes a process plan that maximizes the utilization of primary waste materials is formed and

implemented.The verification results show that the chemical composition mechanical properties low magnification structure high magnifi-

cation structure segregation layer thickness and ultrasonic testing of both types of cast bars meet the product requirements.The forgings

produced by the two types of cast bars also meet customer standards in terms of mechanical properties and bending fatigue.At present the

cast bars produced with a ??% aluminum chip ratio have been successfully used in the production of forgings that meet the requirements for

use.全球环境基金会

Environment Chapter Low carbon green and intelligent manufacturing?? | Lizhong Sitong Light Alloys Group Co. Ltd. ???? Sustainability Report | ??

Innovation driven

Social Chapter

Lizhong Group has always regarded technological

INNOVATION LEADS innovation as the core driving force for enterprise development adhering to the strategic concept of "Relying on Technological Progress to Promote

EMPOWERMENT AND PROGRESS Enterprise Development". It has established a technolo-gy research and development department to guide research and innovation work and is committed to

occupying the technological high ground in the research

and development of automotive lightweight materials

recycled new materials heat free alloy new materials

and functional intermediate alloy new materials.Innovation driven ??

Sustainable Supply Chain ??

Technology Innovation Strategy and Goals

Product and Service Safety and Quality ??

? Strategy and Goals

Data Security and Customer Privacy Protection ??

Rural Revitalization and Social Contribution ?? Lizhong Group has closely focused on the national innovation driven development strategy combined with industry development trends and its own business characteristics formulated a technology innovation strategy guided by market demand centered on technological breakthroughs

and supported by talent cultivation.In the next three years the company plans to increase research and development investment aiming to break

Employees ?? through key technologies develop lightweight wheels high-performance aluminum alloys and other products to meet market demand and

establish a digital research and development platform to improve research and development efficiency and data sharing.Social Chapter Innovation Leads Empowerment and Progress?? | Lizhong Sitong Light Alloys Group Co. Ltd. ???? Sustainability Report | ??

? Fund raising arrangements and safeguard measures Lizhong Group has established strategic partnerships with more than ten domestic and foreign universities and research and development

institutions including the Chinese Academy of Sciences the National Supercomputing Center Tsinghua University Beihang University

Beijing University of Science and Technology and Brunel University in London to promote the research and development of green and

To ensure sufficient supply of funds for technological innovation the company has established the R&D Expense Budget and Allocation low-carbon technologies. Through the acquisition of MQP in the UK an international research and development center has been

Management Process to strengthen budget management for R&D projects.At the same time regular audits and evaluations of the use of established to achieve a business model of "international research and development Chinese manufacturing and global sales".research and development funds are conducted to ensure transparency and effectiveness of fund utilization.Lizhong Group has adopted diversified fundraising methods.On the one hand the company will extract a certain proportion of funds from

its net profit each year as research and development special funds to ensure stable growth in research and development investment.On the

other hand actively seek government research project funding support participate in national and local science and technology plan

projects and obtain special funding support.Chinese Tsinghua

Academy of University

Specific situation of technological innovation Sciences

China Academy

? Construction of R&D Innovation Management System of Mechanical Beihang

Scienoas University

Lizhong Group has established a comprehensive R&D innovation management system integrating risk management awareness into the

entire life cycle of each R&D project covering various aspects such as project initiation R&D process management and achievement

transformation thereby ensuring the feasibility of technological innovation and the robustness of strategic implementation.During the project initiation phase the company established a project review committee composed of technical experts marketing person- Institue of Integrated Beijing University Technology for Mechanical of Science and

nel and management personnel to rigorously screen and evaluate R&D projects ensuring their feasibility and market prospects. Industry Instruments and Meters Technology

In terms of R&D process management project management software has been introduced to achieve real-time monitoring and manage-

ment of the progress quality and cost of R&D projects. At the same time a performance evaluation system for R&D personnel has been

established incorporating R&D achievements into individual performance fully mobilizing the enthusiasm and creativity of R&D personnel.Beijing Jiaotong

Brunel University

University

Beijing Jiaotong Beijing Institute

University of Technology

Beijing University

of Technology University of

Ritsumeikan Kentucky

University

Part of the industry university cooperation universities and research institutions of Lizhong

? Participation in R&D innovation and technology cooperation projects

Lizhong Group actively participates in various research and Case Hebei Province Automotive Lightweight Parts Industry Innovation Alliance Established

development innovation and technology cooperation projects

with more than ??? ongoing projects in ????. It has established

long-term and stable cooperative relationships with well-known

universities and research institutions at home and abroad. In ???? led by Baoding Lizhong Wheel Manufacturing Co. Ltd. and in collaboration with ?? upstream midstream and downstream

enterprises as well as ? research institutions and higher education institutions including the Chinese Academy of Sciences Beihang Universi-

ty and Beijing University of Science and Technology the Hebei Province Automotive Lightweight Parts Industry Innovation Consortium was

formed. The consortium focuses on researching key technical issues related to the "Bottleneck" of the automotive lightweight parts industry

forming an upstream and downstream industrial development chain in the field of automotive lightweight parts breaking through industry

technical barriers and promoting high-quality development of the automotive parts industry.Social Chapter Innovation Leads Empowerment and Progress?? | Lizhong Sitong Light Alloys Group Co. Ltd. ???? Sustainability Report | ??

Research and Development Progress and Achievements The role of technological innovation in promoting the development of new quality

productive forces

Lizhong Group has always adhered to the principle of "relying on technological progress to promote enterprise development" attached

great importance to scientific and technological innovation and research and development work invested ??? million yuan to establish

Lizhong Research Institute with a building area of ????? square meters capable of accommodating ??? people for scientific research work

purchased more than ??? sets/sets of R&D testing and inspection equipment and formed an efficient R&D system with talent gathering Promote industrial upgrading Increase productivity Promote green development

equipment concentration and technical collaboration ensuring the leading position of casting aluminum alloy deformed aluminum alloy

aluminum alloy wheels automotive lightweight parts precision molds aluminum based functional intermediate alloys and special alloy Lizhong Group focuses on technological Lizhong Group has established a research High performance materials reduce

product technology in the industry. innovation developing high-perfor- and development platform and intelligent vehicle weight energy consumption and

mance aluminum alloys and new energy workshop through digital transformation emissions. Battery materials enhance

vehicle battery materials to assist in the achieving R&D collaboration and data performance reduce pollution and

lightweighting electrification and sharing and shortening the cycle. Applying contribute to sustainable development.intelligence of automobiles and automation and IoT technology to improve

promote the development of new production efficiency and quality.quality productivity.Case Application of Aluminum Alloy Materials in Aerospace and Low Altitude Economy

The aerospace grade special intermediate alloys developed and produced by the company have been successfully indirectly used to

manufacture key parts such as aircraft engine exhaust plugs engine blades nozzle components landing gear brake discs and fasteners.Dr. Ryan Chief Scientist of Aluminum Grain Refiner Technology at Lizhong Group Technical Collaboration between Lizhong Group and Volkswagen Brazil They have also been indirectly supplied to an electric aircraft ("Air Taxi") of a foreign flying car company.The aluminum based rare earth

intermediate alloys produced have been applied in the manufacturing of aluminum alloys for large aircraft and aerospace components.In

addition the company's developed silicon aluminum dispersion composite new materials such as silicon aluminum alloy aluminum based

composite materials microcryshighine aluminum alloy materials and ?D printed aluminum alloy materials can be used for aerospace

electronic packaging aircraft components optical equipment etc.The company's high-strength high yield heat free die-casting aluminum

alloy is also undergoing material verification on the structural components of a well-known drone brand in China.In the field In the field of functional intermediate alloy new materials the company's technology research and development center

of functional currently has a research and development team of more than ?? people including doctors experts and masters with

intermediate product research and development capabilities in a leading position in the industry.The company has successively

alloy new established major research and development platforms such as the National International Science and Technology Coopera-

materials tion Base Hebei Aerospace Metal Materials Technology Innovation Center Hebei Functional Intermediate Alloy New Materials Case Application of new alloy materials such as aluminum silicon and aluminum silicon carbide in the semiconductor fieldEngineering Research Center and Sweden Grain Refinement Research Experimental Center.The new alloy materials developed by the company such as aluminum silicon and aluminum silicon carbide have the characteristics of low

expansion high thermal conductivity low segregation and high stiffness. They have been applied in the manufacturing of semiconductor

In the field equipment components such as bases support frames electrostatic chucks etc.In the field of recycled casting aluminum alloy materials the company has seven material innovation centers including a of recycled

provincial-level light metal alloy material industry technology research institute a recycled aluminum based new material casting

technology innovation center a new aluminum alloy material technology innovation center and a wheel new material and aluminum

testing technology innovation center. It also has one provincial-level equipment technology innovation center five alloy Development of Al-Ti-C grain refining agent applied to high-strength and tough aluminum alloys

provincial-level enterprise technology centers and two nationally recognized CNAS laboratories. materials Case

Lizhong Sitong Light Alloy Group Co. Ltd. has

improved the microstructure and refining National Key Research and Development Program "Key Technologies for New Uitra High

Strength Tough Fatigue resistant and Damage resistant Aviation Aluminum Alloy Plates"

ability of Al-Ti-C grain refining agent products

In the field of aluminum alloy wheels the company is the only enterprise in the industry that integrates aluminum alloy through the improvement and optimization of Project ???? Annual Work Conference

In the field material research and development mold research and development tooling equipment research and manufacturing wheel raw materials and production processes.The

of aluminum product design simulation analysis manufacturing process research and development and digital information applica-

Nove mber ?? ?? ?? Baoding Hebei

developed product has smaller TiC particles

alloy wheels tion.The R&D center has more than ??? expert and technical personnel and has successively established national enterprise more uniform distribution without aggrega-

technology centers provincial technology innovation centers provincial enterprise technology centers national certification tion and more efficient and stable refining

laboratories and postdoctoral innovation practice bases. ability solving the technical problem of large

TiC particle size and TiC aggregation in the

original product.The product has been applied

in high-strength tough and fatigue resistant

aluminum alloys.In ???? the company's R&D investment amounted to ??? million yuan an increase of ??.??% compared to the previous year with R&D invest-

ment accounting for ?.??% of operating revenue.As of the end of this reporting period the company has a total of ??? patents including ???

invention patents ??? utility model patents and ?? design patents.As of December ?? ???? the company has ???? research and develop-

ment personnel accounting for ??% of the total number of employees.Social Chapter Innovation Leads Empowerment and Progress?? | Lizhong Sitong Light Alloys Group Co. Ltd. ???? Sustainability Report | ??

Case Research and development of precision control technology and equipment for ultra purification treatment of aluminum melt Full process from project application baseline setting to achievement promotion forming a closed-loop management.-

project Multi departmental collaboration in large-scale projects combining quantitative indicators with qualitative

management evaluation ensures that the improvement results are measurable and replicable.Lizhong Group has developed a large furnace to liquid filtration box which increases the weight of aluminum liquid filtered by ABB in the

static furnace by more than ??%. By inshighing a diversion pier at the bottom of the rising pipe the risk of slag being sucked into the mold

cavity by the rising pipe during punching is reduced. At the same time a new cup-shaped filter or multi-layer filter is designed to replace the

current single-layer circular cake shaped iron nickel filter.After the application of this project the total amount of slag inclusions and pore

defects in the wheels decreased by more than ??%.According to expert evaluation this technology has reached the international advanced Horizontal Establish a lean achievement promotion mechanism within the group and quickly replicate excellent projects level.experience through standardized templates to achieve experience sharing and maximize benefits.In ???? a total of ???

sharing cost reduction and efficiency improvement projects were collected and ?? were successfully promoted.Case Production Layout of Heat Free Alloy by Lizhong Group

As a pioneer in the domestic integrated die-casting of heat free alloy materials the company has taken the lead in achieving domestic

substitution.In the first half of ???? integrated die-casting heat free alloy materials have successively obtained terminal certification and

project designation from multiple leading new energy vehicle companies and large die-casting factories and entered the stage of large-scale

production.At the same time the company has developed and launched a series of derivative non heat treated alloy materials such as

recycled low-carbon and high-performance which will help the company continue to expand the market size of integrated die-casting non

heat treated alloy materials in multiple varieties of applications diverse customer coverage and segmented terminal product application

fields.Case Efficient Green Casting Production Line

The Lean Promotion Department of the company in conjunction with the Technical Department and Thermal Department optimized and

adjusted the process at Baoding Lizhong Wheel Manufacturing Co. Ltd. developed water-cooled molds and created an efficient and green

casting production line. The casting temperature was reduced from ??? ℃ to around ??? ℃ thus achieving a benchmark production line of

high efficiency and low energy consumption.Lean Management

Lizhong Group adheres to the concept of "Continuous Improvement and Pursuit of Excellence" systematically promotes lean management

and issued the Lizhong Group Lean Promotion Management Regulations in ???? building a scientific and efficient management system to

help reduce costs increase efficiency and promote sustainable development.The group has established a multi-level lean management structure including the group's lean promotion

Systematic department dedicated promotion teams of subsidiary companies and cross departmental review commit-

organizational tees.Strengthen resource integration and project execution through collaboration between dedicated lean

structure specialists and review expert groups.Dynamic Implement a strict monthly assessment mechanism incorporating project application progress tracking and

achievement verification into the scoring system.Quarterly selection sets up multi-dimensional awards (such

assessment and as the Best Efficiency Improvement Award and the Most Practical Value Award) combining material and

incentives spiritual rewards to promote innovative practices and the emergence of excellent cases.Social Chapter Innovation Leads Empowerment and Progress?? | Lizhong Sitong Light Alloys Group Co. Ltd. ???? Sustainability Report | ??

Digital transformation

Lizhong Group actively responds to the national strategic deployment of Sustainable Supply Chain

"Manufacturing Power" accurately grasps the development trend of "Intelli-

gence Greenness and High-end" in the industry takes the overall strategic

planning as guidance breaks through development bottlenecks through

systematic digital transformation and builds new advantages in intelligent

manufacturing.The company has carried out in-depth strategic cooperation

with the China Industrial Internet Research Institute of the Ministry of

Industry and Information Technology. Based on authoritative standard

systems such as Digital Transformation Maturity Model Intelligent Manufac-

turing Capability Maturity Model Informatization and Industrialization

Integration Management System and Digital Level Evaluation Indicators for

Small and Medium sized Enterprises the company comprehensively diagno-

ses the company's digital status quo customizes the digital development

strategic plan that is both forward-looking and feasible and strives to create

a "Digital Center" smart factory demonstration benchmark to achieve a dual

wheel drive of production efficiency improvement and cost optimization

comprehensively enhance market competitiveness and lead the industry in

a new pattern of high-quality development.?G Smart Factory The goal of supply chain risk management for Lizhong Group is to ensure the stability and reliability of the supply chain reduce the risk of

supply chain disruptions and improve the resilience and sustainability of the supply chain.The Qingyuan factory under the company has made every effort to promote

and complete the construction of a ?G cloud based smart demonstration

factory. Relying on the operator's cloud based ?G customized private Supply chain security

network products and based on the lightweight cloud base it has deployed

the user plane function (UPF) multi access edge computing (MEC) and Lizhong Group has comprehensively applied various strategies and methods covering multiple stages such as risk identification assess-

innovative cloud network applications and built a computing network ment response and monitoring to ensure the comprehensiveness and effectiveness of supply chain management.integrated industrial integration platform exclusive to Lizhong Group.The ?G

smart factory project is guided by three core values: cost reduction quality

improvement and efficiency enhancement and is deeply integrated into the Risk identification

wheel hub manufacturing process.Based on actual production scenarios we

have carefully planned and implemented ? innovative ?G fusion applica-

tions including ?G+AI visual personnel management ?G+smart mobile ? Establish a risk list

safety supervision ?G+AR remote collaboration ?G+AI robot wheel sorting

?G+AGV intelligent warehousing ?G+data acquisition smart park manage- comprehensively sort out various links in the supply chain such as procurement

ment and visualized data cockpit. production logistics warehousing etc. and list possible potential risk points such as

supplier bankruptcy major quality abnormalities natural disasters affecting produc-

At the same time the company fully leverages the powerful data analysis and display capabilities of the Fansoft platform as well as the data tion epidemics transportation vehicle failures etc.integration advantages of the main data platform to carefully create a comprehensive decision-making reporting system that integrates

production supply chain and finance.Through this system real-time and accurate monitoring of various key data indicators can be

achieved and potential problems and opportunities in business operations can be identified in a timely manner continuously optimizing

and improving the operational capabilities of the enterprise. ? Collecting information

Collecting internal and external information including the company's own operation-

al data financial status etc.By purchasing membership on relevant information and

intelligence websites participating in industry exhibitions and other means external

information can be obtained covering market trends policy and regulatory changes

industry trends and more.Dubai Aluminum won the excellent supplier

Risk assessment award of Lizhong group

? Determine evaluation indicators

Establish a scientific risk assessment indicator system such as the likelihood of risk occurrence degree of impact detectability etc. and

incorporate it into the risk management system.? Quantitative risk

The company strictly adheres to scientific ethical norms in the scientific research process following the principles of "Respect and Harmlessness" and Using methods such as risk matrix and analytic hierarchy process quantitatively evaluate the identified risks and determine their levels (I-IV)."Objectivity and Public Welfare".Social Chapter Innovation Leads Empowerment and Progress?? | Lizhong Sitong Light Alloys Group Co. Ltd. ???? Sustainability Report | ??

Risk response Sustainable Supply Chain Management

? Risk avoidance Lizhong Group has added the audit content of ASI (Aluminum Stewardship Initiative) in the supplier audit process evaluating suppliers based on their corporate integrity greenhouse gas emissions product carbon footprint air pollutants water pollutants waste water

resource management biodiversity occupational health and safety and ranking them according to their scores.For situations where there is a high possibility of risk occurrence and significant impact such as suppliers in high-risk areas increase the

number and sources of suppliers develop alternative suppliers avoid dependence on a single supplier and reduce the risk of supply At the same time Lizhong Group has formulated a statement on the procurement policy of conflict free metals promising to only purchase

interruption. from environmentally and socially responsible raw material suppliers and that the metal materials used in the raw materials provided to

Lizhong Group do not come from conflict areas.? Risk reduction

By strengthening supplier management and establishing rigorous “Supplier Management Regulations” implementing full lifecycle

management from supplier admission to supplier exit evaluating supplier performance monthly implementing annual supplier upgrade

and downgrade management and conducting regular on-site supplier audits. In addition measures such as optimizing inventory manage-

ment and establishing emergency plans can be taken to reduce the likelihood of risk occurrence or mitigate the impact of risk occurrence.Rationally plan the geographical location of production bases and storage facilities to reduce the risk of supply chain disruptions caused by

natural disasters geopolitical and other factors.? Risk transfer

Starting with the ESG risk management matrix the company adopts a risk transfer strategy using insurance transfer tools to purchase

special insurance for physical risks such as asset damage caused by extreme weather as well as compliance transformation risks caused by

policy changes. At the same time based on the ESG evaluation standards of supply chain finance with the help of contract agreements risk

sharing agreements are reached with up- and downstream partners to reasonably transfer risks and stabilize supply chain security.Risk monitoring

? Establish a monitoring system

Utilize information technology to establish a real-time monitoring system to monitor key indicators of the supply chain such as using ERP

and SRM systems to monitor inventory levels supplier delivery times logistics and transportation status etc.? Regular evaluation

Regularly reevaluate supply chain risks and promptly identify new risk points and changes in existing risks.Inviting suppliers to visit Lizhong Group and hold supplier symposiums

? Continuous improvement

Based on the results of risk monitoring and assessment adjust risk management strategies and measures in a timely manner and continu-

ously improve the supply chain risk management system. Equal treatment of small and medium-sized enterprisesLizhong Group always adheres to the core value of “everyEstablishing cooperation and communication mechanisms excellent supplier is a part of Lizhong Group’s core competitive-ness” treats suppliers and other partners equally and particularly

supports the business development of small and medium-sized

? Internal collaboration suppliers and payment is timelier. For suppliers who apply due to

financial pressure the company will shorten the payment period

and increase the proportion of spot exchange payment according

Strengthen collaboration and communication among departments such as procurement production sales and logistics within the compa- to the situation.ny to ensure the smooth implementation of risk management work.At the same time relying on good relationships with partner

? External cooperation banks Lizhong Group acts as a bridge between small and During the medium-sized suppliers and partner banks providing them with

reporting period more financing opportunities and promoting their development

Establish close cooperative relationships with suppliers customers logistics service and growth.providers etc. share information and jointly respond to risks. If signing a cooperation there were no incidents of supply

agreement with the supplier clarify the responsibilities and obligations of both parties interruption in Lizhong Group.in risk management.Social Chapter Innovation Leads Empowerment and Progress?? | Lizhong Sitong Light Alloys Group Co. Ltd. ???? Sustainability Report | ??

Improve product accessibility

Safety and Quality of Product and Service Lizhong Group has always driven product accessibility through technological innovation achieving deep integration of technology inclusiveness

and green development through cross disciplinary material research and development and global adaptability layout. In the automotive field the

company has launched high-performance wheel products based on modular development technology targeting the trend of lightweighting and

new energy transformation. These products are compatible with the needs of all vehicle models including fuel pure electric and hybrid covering

Lizhong Group always adheres to the strategic policy of“ Quality first innovation leading” ensuring“ Zero defects high quality” and is different sizes loads and wheel motor configurations. They have passed ISO/TS ????? certification and comply with European and American

committed to the service orientation of“ Quick response professional service”. The group has established a technology research quality environmental standards with an annual supporting capacity of over ?? million pieces to serve the global market.center to manage product design development and production processes at all levels; establish departments such as after-sales service With ?? years of experience in the aluminum alloy industry the company has extended its material technology advantages to the field of robotics.and quality management to be responsible for product after-sales and customer service. Its independently developed core materials such as High-strength high-yield heat-treatment-free die-cast aluminum alloy A??? and ?/? series

deformed aluminum alloy not only meet the needs of automotive lightweighting but also demonstrate excellent performance in the verification of

Quality control system key components such as robot joints and shafts supporting the coordinated development of multiple industries with the same material technology

platform. By continuously optimizing the green product matrix that empowers both cars and robots Lizhong Group is building a lightweight

All major companies have passed the ISO ???? Quality Management System and IATF????? Automobile Quality Management System Certifi- solution ecosystem that covers the fields of transportation and intelligent manufacturing promoting a comprehensive upgrade of the global market

cations. The quality departments of each department coordinate quality related management work and have developed management from traditional transportation to intelligent green manufacturing.procedures such as“ Manufacturing Process Management Procedure”“ Process Audit Management Procedure”“ Product Audit Manage-ment Procedure” and“ Non-conforming Product Management Procedure” to continuously improve product quality by strengthening

process control and zero-defect management of products. Responding to customer complaints and product recalls

Lizhong Group takes“ total quality management” as the main line and improves ?? arrival inspection methods through conducting supplier Lizhong Group always adheres to the customer-centric philosophy making every effort to ensure that all customer quality issues can be quickly

quality special meetings flight audits and research on incoming inspection methods effectively enhancing the quality of supplier raw handled and properly resolved in order to maximize customer satisfaction. Lizhong Group has developed customer complaint management

materials. At the same time the group plans zero-defect project management internally and sets up dedicated departments to focus on procedures such as “Customer Quality Complaint Management Procedure” and “Customer Complaint Handling Operation Standard Book” and

monitoring and improving product strength mechanical performance coatings and other projects continuously enhancing manufacturing established an after-sales service department to coordinate and manage customer complaints.process assurance capabilities.The after-sales service department has established quality engineer positions in Europe America Japan South Korea China and on-site factories. Each

In response to internal and external quality issues Lizhong Group has position closely monitors quality issues in various regions in real time to ensure prompt response and handling. Domestically covering North China

developed improvement and prevention measures such as visual Central China East China and South China with overseas factories and agent teams assisting covering North and South America Asia and Europe.anti mixing packaging system and label error prevention system to

achieve root cause improvement. At the same time measures will be In response to customer feedback on after-sales issues Lizhong Group has established a special team internally and through the preparation of an ?D

taken to prevent and control quality risks throughout the entire analysis report identified the root cause of the problem formulated targeted corrective measures monitored the implementation of corrective

process including design and development process control inspec- measures formed an experience and training library and horizontally expanded the investigation of quality hazards in related products of the same

tion and verification and error prevention. This will prevent the category to prevent similar problems from happening again.recurrence of quality problems continuously improve process

assurance capabilities and enhance customer satisfaction. In terms of after-sales problem response and resolution mechanism Lizhong Group During the

At the same time Lizhong Group has established a comprehensive solemnly promises to respond quickly to after-sales problems within ?? hours and urgently

quality traceability system which facilitates the traceability of product curb the worsening situation of problems. Develop improvement plans within ?-? working

reporting period

quality abnormalities and the investigation of hidden dangers. Active- days and submit detailed analysis reports in strict accordance with customer requirements.ly participate in ?Sigma external training and internal training such as The after-sales service department establishes a customer complaint ledger shares and there were no safety and quality

APQP FMEA PPAP MSA and SPC every year and continuously transmits information internally and conducts follow-up visits to customers through liability accidents related to products and services and no

improve the quality control process of new product development and various methods such as phone WeChat email and visits to ensure that problems are

production processes using the above tools. effectively resolved. At the same time a dedicated person monitors the quality performance

product recalls.indicators on the customer’s website identifies anomalies responds quickly and makes

continuous improvements.Product testing service system

The company has been accredited by the China National Accreditation Service for Conformity Assessment (CNAS) ISO/IEC ????? for the first Improve customer satisfaction

time since ????. Currently a total of ? laboratories have obtained this standard accreditation including the Testing Center of Hebei

Xinlizhong Nonferrous Metals Group Co. Ltd. the Testing Center of Lizhong Sitong Light Alloy Group Co. Ltd. and the Experimental Center Lizhong Group conducts customer satisfaction surveys at the end of each year. For customers with monthly supplier evaluations (customer

of Tianjin Lizhong Wheel Co. Ltd. These laboratory testing capabilities have been compared and verified by international authoritative scorecards) the customer evaluation form shall prevail; other customers will distribute customer satisfaction surveys. Among them

institutions such as DRRR in Germany and SAE in the United States and have obtained testing capability certifications from mainstream car strategic A and B level customers achieve ???% investigation and recycling while C-level customers select stable and continuous coopera-

companies such as Volkswagen BMW Mercedes Benz General Motors Honda Geely SAIC NIO Chery etc. and have been widely tive customers for investigation to ensure coverage of all major customers and products of the company.recognized by international mainstream car companies. In addition the company’s products have obtained export qualifications from the

United States Brazil India Vietnam Indonesia Taiwan China the European Union and other countries and regions. The content of the “Customer Satisfaction Survey Form” involves multiple aspects such as appearance packaging product chemical composi-

tion control product performance timely delivery accompanying materials logistics transportation problem communication and

Lizhong Group has three major R&D and testing centers which can conduct over ??? handling cooperation attitude personnel etiquette after-sales service and continuous improvement.professional performance tests and analyses for products such as aluminum alloy During the

materials aluminum alloy automotive wheels motorcycle wheels aluminum alloy reporting period Lizhong Group uniformly formulates customer satisfaction survey standards and its Customer satisfaction

automotive components and aluminum based functional intermediate alloys. The subsidiaries submit the survey and analysis results to the group as required. The group rate of ??% in ????

company is equipped with world-class testing equipment such as ZISS scanning analyzes and evaluates overall customer satisfaction and common issues prepares a

electron microscope MTS hydraulic servo actuator YXLON industrial CT Thermo 64 “Customer Satisfaction Survey Analysis Report” and transmits it to its subsidiaries.inductively coupled plasma emission spectrometer (ICP) Panalytical X-ray fluores- the company further extended customer Subsidiaries will make corresponding improvements and track based on the analysis

cence spectrometer (XRF) from the Netherlands ARL direct reading spectrometer service provided professional quality results analyze the reasons for low scoring projects develop measures verify effective-

etc. with comprehensive testing capabilities to meet the testing requirements of inspection support and completed ?? ness and track customer satisfaction/recognition in response to customer feedback and

mainstream customers at home and abroad. service reports. suggestions.Social Chapter Innovation Leads Empowerment and Progress?? | Lizhong Sitong Light Alloys Group Co. Ltd. ???? Sustainability Report | ??

Data Security and Client Privacy Protection Rural Revitalization and Social Contribution

Lizhong Group has always regarded rural revitalization and social contribution as important components of fulfilling corporate social

Data security responsibility. Since the establishment of the group Lizhong Group has considered the importance of factory location selection which

drives the employment rate of residents in the factory area and is committed to injecting vitality into rural economic development helping

Lizhong Group attaches great importance to data information security management and has established an information security team in to achieve common prosperity with a localization employment ratio of over ??%. Lizhong Group regularly organizes public welfare and

accordance with ISO?????:???? and TISAX international standards to be responsible for the overall information security work of the compa- charity donations through its subsidiary management department and actively participates in volunteer activities organized by local trade

ny. The company has established a relatively complete information security system and has released a total of ?? relevant management unions and volunteer associations.process documents.Based on establishing a document system and improving hardware facilities an intranet terminal security management system has been

deployed and terminal security control strategies have been issued. Employees are required to undergo strict approval before releasing all

confidential documents and must sign an information security disclaimer when receiving office equipment.In ???? Lizhong Group strengthened its data security risk management and prevention measures. By optimizing network architecture

strengthening security defenses deploying operation and maintenance security gateways optimizing data backup strategies and other

measures it has built an internal to external data security protection system effectively improving the level of data security management.During the reporting period the company organized multiple information security training sessions released monthly information security

reports organized information security activities and conducted information security awareness tests to strengthen the defense line of

employees' information security awareness.Data security management certification status: As of December ?? ???? Tianjin Dong’an During the

and Xintai companies have obtained TISAX information security certification and Mexico reporting period

company is currently undergoing TISAX certification process; Tianjin and Baoding compa-

nies have passed the AEO customs audit; The Baoding data center has passed the third there were no data security incidents

level security evaluation. at Lizhong Group.During the

reporting period

Lizhong Group

721 people

Total number of

employees participating

in rural revitalization

and social contributions

1583 hours

Total hours of employee

participation in rural

revitalization and social

contribution services

Customer privacy protection During the

reporting periodLizhong Group has formulated the“ Sales System Information Confidentiality ManagementRegulations” and the“ Customer File Management Regulations” which clearly define the there were no incidents of customer

protection system and system operation control methods for customer related information. privacy breaches at Lizhong Group.When employees need to access customer information for work purposes they must

strictly follow established regulations and sign confidentiality agreements. In daily

operations the company strictly follows the prescribed requirements and regularly

conducts comprehensive reviews and timely updates of the system. As of now the system

has been running stably and in good condition. In ???? the company continued to

strengthen customer privacy management reviewed and updated customer confidentiali-

ty-related systems effectively improving the level of customer privacy protection.Social Chapter Innovation Leads Empowerment and Progress?? | Lizhong Sitong Light Alloys Group Co. Ltd. ???? Sustainability Report | ??

Case of Rural Revitalization and Social Contribution

Case Thai company cares about local communities

Employees

To fulfill social responsibility and be a respected enterprise by the local people. In October ???? Thailand’s Xintai Wheel Manufacturing Co. Lizhong Group has always been committed to the sustainable development of society and actively undertakes social responsibilities.Ltd. together with the Resident Management Committee visited and comforted local bedridden elderly and disabled people delivering Adhere to the development concept of“ people-oriented” attach importance to talent cultivation and development open multiple

essential daily necessities such as rice oil and drinking water to them. This public welfare activity not only provided practical assistance to channels for the promotion of professional and management talents integrate enterprise development with employee development and

disadvantaged groups but also demonstrated the care and support of Lizhong Group for the local community. The event received high praise continuously promote the healthy development of enterprises and employees.from the local government and Xintai Wheel Company was also praised for actively participating in public welfare and solving residents'

living difficulties fully reflecting the friendly concept of“ China Thailand One Family”.Occupational Health and Safety

GovernanceLizhong Group strictly abides by occupational health and safety related laws and regulations such as the “Safety Production Law of thePeople’s Republic of China” the “Occupational Disease Prevention and Control Law of the People’s Republic of China” and the “Fire ProtectionLaw of the People's Republic of China”. Guided by the principle of“ safety first prevention oriented and comprehensive management” it has

established and improved an occupational health and safety management system which is uniformly managed by the Lizhong GroupSustainable Development Management Committee. It has formulated institutional documents such as the “Safety Production ResponsibilitySystem” “Safety Production Rules and Regulations” and “Occupational Health and Safety Management System” and equipped full-time safety

management personnel and registered safety engineers as required. All companies have passed the ISO ????? occupational health and

safety management system and the main companies have obtained management system certifications such as RBA audits from the

Responsible Business Alliance.Occupational Health and Safety Management ObjectivesLizhong Group has established the safety management concept of“ safety comes from design safety comes from management and safetycomes from responsibility” adhered to the safety management principles of“ people-oriented” and“ three management and three musts”

and formulated six safety management objectives.

0100%

Occupational The certification

diseases and rate for special

suspected equipment

occupational operators

diseases

0100%100%

General and above The rectification Completion rate of

accidents rate of hidden employee safety

danger investiga- training plan

tion

Case The company supports rural revitalization

100%

Lizhong Jinshan (Yingde) Alloy Co. Ltd. actively responds to the national rural revitalization strategy and supports local rural development Employee

with practical actions. In June ???? it donated ????? yuan to the Yingde Charity Association for rural revitalization to help towns and villages occupational

injecting strong momentum into local rural revitalization. health examination rate

Social Chapter Innovation Leads Empowerment and Progress?? | Lizhong Sitong Light Alloys Group Co. Ltd. ???? Sustainability Report | ??

Occupational safety risk assessment and protectionOccupational Health and Safety Emergency Plan：Lizhong Group has developed the“ Emergency Rescue Plan for Safety Production Safety culture construction:Lizhong Group focuses on standardized safety management continuously improving warning signs safetyAccidents” established a part-time emergency rescue team and regularly organized emergency drills for all staff. The drill content includes passages equipment protection and other aspects to form standardized templates that can be quickly replicated. At the same time

fire emergency drills aluminum liquid leakage emergency drills heatstroke emergency drills confined space poisoning accident drills etc. measures such as visual safety management video displays daily safety officer activities and excellent team building are taken to strength-

en the safety awareness of all employees and ensure safe production.Occupational health examination and health monitoring： Lizhong Group conducts occupational hazard testing and current situation Occupational Health and Safety Production Training

evaluation in the workplace in accordance with regulations strictly implements the“ three inspection system” for occupational health of

personnel engaged in occupational hazard operations (pre-employment on-the-job and post-employment occupational health examina- Each department of Lizhong Group develops an annual occupational health and safety training

tions) and establishes and improves employee occupational health monitoring records. plan compiles textbooks and question banks organizes training for personnel at all levels and

incorporates safety assessments into the qualifications for cadre positions strengthening the

Occupational protection and safety technology improvement:Lizhong Group prioritizes the occupational health of its employees and responsibility system for safety production. The company attaches great importance to the

has continuously improved its processes technology production environment and other aspects over the years. Through measures such three-level safety education for new employees hires professional lecturers to teach and onlyas replacing manual labor with robotic arms reducing equipment noise and operating environment temperature the on-site safety factor those who pass the assessment can take up their posts. Every June during the“ Safety Produc-has been improved. tion Activity Month” the company conducts occupational disease prevention heatstroke

prevention and cooling knowledge training as well as online quizzes knowledge competitions

Fire safety management: To reduce fire risks and prevent fire accidents Lizhong Group has increased safety investment replaced dust and other activities. At the same time regular review and improvement of training materials

removal equipment with higher safety performance installed automatic fire extinguishing devices in areas with fire risks and established will be conducted and diversified methods such as information platforms bulletin boards

micro fire stations. multimedia WeChat groups etc. will be used to promote and enrich the training format.Employee Health Management: In order to ensure the physical and mental health of employees all departments of Lizhong Group have

signed consulting service agreements with nearby hospitals and regularly provide employees with health checkups psychological counsel- During the reporting period

ing etc. At the same time Lizhong Group has set up medical kits equipped with sufficient first aid drugs organized some personnel to

undergo professional training as“ first aid personnel” and obtained“ first aid personnel certificates”. Each workshop and team are

equipped with professional first aid personnel.

100%

the coverage rate of occupational

safety training was

4.71 million yuan

the investment amount

of work-related injury

insurance was

100%

the personnel coverage rate was

Social Chapter Innovation Leads Empowerment and Progress?? | Lizhong Sitong Light Alloys Group Co. Ltd. ???? Sustainability Report | ??

Employee Rights and Benefits Democratic management and communication

Employee compensation During the Lizhong Group actively builds an open transparent and democratic communication mechanism striving to provide employees with a reporting period diversified and democratic communication platform.Lizhong Group strictly abides by relevant laws and regulations such as the “Labor Law of the employees at all levels Lizhong Group has a trade union and respects the willingness of employees to participate in the union. The company holds an annualPeople’s Republic of China” adheres to the principle of equal emphasis on material and of Lizhong Group received employee representative assembly and employee representatives are elected by all employees through anonymous voting with a term of

non-material incentives and is committed to enhancing employees’ sense of happiness competitive salaries two years. The company has established communication modes that are shared and shared through various methods such as OA work and belonging. The company has established a comprehensive salary management system groups WeChat work groups email phone work meetings video conferences and telephone conferences.which includes not only basic salary but also diversified compensation items such as

position salary performance-based salary piece rate salary skill salary expatriate In ???? Lizhong Group revised the “Employee Satisfaction Management Process” to understand employees’ production and living conditions

allowance seniority salary and year-end bonus. In addition Lizhong Group has implement- 100 % psychological status and satisfaction with various aspects of the group and the company to maximize employee satisfaction and provide

ed equity incentive policies for some employees to strengthen their sense of ownership. In with a social security coverage rate of information support for humanized management of the group and the company. Subsidiary companies organize two employee satisfaction

April ???? the ??th meeting of the ?th Board of Directors of the company approved the surveys every year with survey personnel accounting for over ??% of all employees. Based on the satisfaction survey results an employee“Proposal on the Achievement of The Second Attribution Period Attribution Conditions for the satisfaction survey report is formed and a rectification plan is formulated to continuously improve employee satisfaction. In additionFirst Grant of the Company’s 2022 Restricted Stock Incentive Plan” providing equity incentives 0 subsidiary companies regularly hold employee symposiums in accordance with the “Employee Satisfaction Survey Management Regulations” for middle and senior management personnel. In the same year the company released the to understand the voices of employees and listen to their opinions and suggestions.“Performance Management System of Lizhong Wheel Group (2024 Trial Edition)” to further no labor dispute incidents

improve the performance evaluation system.Lizhong Group attaches great importance to the protection of employee rights and the During the reporting period

fairness of performance evaluation and has established a comprehensive performance 16.5 %

appeal process. If employees have objections to the performance evaluation results they an employee turnover rate of the satisfaction rate of group

can submit appeal materials through written or online systems. The human resources employees was ??.?% Lizhong Group has been awarded

department will collaborate with relevant departments to complete the review within the the Best Employer of the Year by

specified time and provide timely feedback on the results and handling suggestions. 100 % Zhilian Recruitment Website for several consecutive years.In terms of overseas company management Lizhong Group also attaches great importance a retirement pension coverage

to the formulation and optimization of salary and welfare policies. In December ???? the rate of ???% for retired employees

company revised the salary system for expatriates of New Thai Wheel and Lizhong Mexico

and completed the reform of the salary and benefits system for Thai employees of New Thai

Wheel through a third party.

148 Diversity and equal opportunities

employees in need were assisted Equal opportunities

Employee care and welfare Lizhong Group strictly abides by various labor laws and regulations and has formulated internal management systems such as the“ Recruit-ment and Configuration Management Measures” in accordance with relevant provisions such as the“ Labor Law”“ Labor Contract Law”

and“ Prohibition of Child Labor Regulations”. It has standardized the process management of demand release interview and employment

Lizhong Group adheres to the corporate culture concept o“f people-oriented” advocates for a balance between employees' lives and work for its subsidiaries. During the recruitment process the company strictly adheres to the regulations and procedures of the“ Employeeand establishes a management model of“ system+emotion”. By carrying out rich cultural and outdoor activities we aim to create a Recruitment Management Process” to ensure that interviewees are not affected by factors such as gender race religion etc. and have equal

corporate culture atmosphere of unity harmony friendship happiness and warmth. employment opportunities and treatment.Lizhong Group provides employees with birthday benefits holiday benefits meal allowances transportation subsidies accommodation Lizhong Group actively identifies and provides suitable positions for

subsidies free physical examinations high temperature subsidies parental leave and other employee welfare measures. It has established people with disabilities providing a total of ??? related positions during

and improved leave and attendance management regulations continuously improved the office environment and accommodation the reporting period. The company provides necessary labor protection

conditions and created a happy and harmonious working atmosphere for employees. equipment and job knowledge training for people with disabilities

ensuring that they enjoy equal rights salaries and benefits with other

employees.During the reporting period

239个

为残疾人共提供相关岗位

the Disabled Lizhong Group did not engage in any violations such as employing

Fitness Week child labor or forced labor.墨西哥公司员工活动 美铝合金公司妇女节活动 activity

Social Chapter Innovation Leads Empowerment and Progress?? | Lizhong Sitong Light Alloys Group Co. Ltd. ???? Sustainability Report | ??

Diversified management Talent development

Lizhong Group has enterprises in multiple parts of the world

covering ?? provinces autonomous regions and municipali-

ties in China as well as countries such as Thailand South Employee training

Korea the United States the United Kingdom Mexico and During the reporting period

Brazil. The company recruits talents from various fields around Lizhong Group attaches great importance to talent cultivation and adheres to thethe world actively implements a talent diversification strategy human resources policy of“ selecting excellent talents cultivating expert employ-adheres to equal pay for equal work for male and female ees and promoting loyal and outstanding cadres” providing diversified training

employees promotes gender equality and always embraces for employees at different levels. The company relies on a comprehensive training

employee diversity regardless of religion nationality marital curriculum system and develops personalized training courses based on job skill 3.77million yuan 100 %

status gender and disability status. It does not discriminate enhancement needs. The training courses cover multiple fields such as produc-

cares more and strives to establish a fair just and open Songgan festival activities of Thai company Employee activities of North American company tion technology information security technology research and development

the company’s the employee

training expenditure training coverage

working and development environment for employees. business management quality system equipment management safety environ- was rate reachedment human resources as well as training for special operators. During the

reporting period the company’s training expenditure was ?.?? million yuan and

the employee training coverage rate reached ???%. In addition in order to reserve

and cultivate middle-level management cadres the group selected more than ??outstanding employees to participate in the “Middle Level Management CadrePromotion Class (Phase II)” in July ????.Employee diversity Cultural inclusivity

Emphasizing the participation of Creating a work environment

talents from different that respects different cultural Group photo of the opening ceremony of the middle-level

backgrounds in the recruitment backgrounds and promotes cadre promotion class (phase II) of the school of knowledge

promotion and training cross-cultural communication of Lizhong group

processes of enterprises

Decision diversity Lizhong Group has formulated the“ Regulations on the Management of Internal Trainers” actively promoting the selection and teaching of internal trainers improving their theoretical and teaching level and providing a way for the effective transmission of internal intellectual

resources. The company has also established an online learning platform that provides a variety of courses allowing employees to learn

The board of directors and

management include members anytime and anywhere through their mobile devices further expanding the flexibility and coverage of training.of different genders races and

professional backgrounds

Employee promotion

Lizhong Group is committed to providing employees with smooth career development paths following the principle of hierarchical promo-

tion and has established three career development channels of management technology and skills to meet the growth needs of different

employees. Among them the management sequence has six levels namely department head section chief department head etc.; the

As of December ?? ????，Number of employees technical sequence has six levels namely assistant engineer senior engineer expert level engineer etc.; the skill sequence has four levelsnamely technician senior technician senior technician etc. Every time an employee is promoted to a higher level their salary and benefits

will be adjusted accordingly. This is not only a recognition of employee growth and ability improvement but also in line with the company's

corporate philosophy of rewarding talents and creating a positive and enterprising work environment.

9816 2216 836 7633 3563 In ???? Lizhong Wheel Group completed internal professional title evaluation in multiple fields such as production equipment technology

sales and functions further improving talent evaluation and incentive mechanisms to ensure that the value of every employee can be fully

realized.Male employees Female employees Age ?? and above ?? to ?? years old Under ?? years old

Social Chapter Innovation Leads Empowerment and Progress?? | Lizhong Sitong Light Alloys Group Co. Ltd. ???? Sustainability Report | ??

Topics Index Unit ????

Ending

Volatile Organic Compounds (VOCs) emissions Ton ??.?

Pollution Number of environmental administrative penalties Time ?

Key Performance Indicators Environmental administrative penalty amount Ten thousand yuan ?

Total amount of hazardous waste Ton ?????

Economic Performance

Waste Disposal Unit revenue of hazardous waste generation Ton/million yuan ?.?

Topics Index Unit ????

Total amount of general solid waste Ton ?????

Operating revenue Ten thousand yuan ???????.?

Total direct energy consumption Tons of standard coal ??????.?

Corporate governance Total Assets Ten thousand yuan ???????.?

Total indirect energy consumption Tons of standard coal ?????.?

excluding for Share-Based Compensation Expenses Ten thousand yuan ?????.? Total energy consumption Tons of standard coal ??????.?

Natural gas Ten thousand cubic meters ?????

Environmental Performance Gasoline Liter ????

Energy utilization

Topics Index Unit ???? Diesel oil Liter ???????

Total greenhouse gas emissions Metric tons of carbon dioxide equivalent ?????? Power Consumption Ten thousand kilowatt hours ?????

Greenhouse gas range ? emissions Metric tons of carbon dioxide equivalent ?????? Total energy consumption intensity Ton of standard coal/million yuan ???.?

Greenhouse gas range ? emissions Metric tons of carbon dioxide equivalent ?????? Clean energy usage (photovoltaic power generation) Ten thousand kilowatt hours ???

Addressing climate change Total greenhouse gas emissions per million revenue Metric ton of carbon dioxide equivalent/ ??.? Proportion of clean energy usage (photovoltaic power (Scope ? and Scope ?) million yuan generation) % ?.??

Scale of carbon quota trading Ten thousand tons ? Total water consumption Ten thousand cubic meters ???

Water resources utilization

CCER trading volume Ten thousand tons ? Water resource utilization intensity Cubic meter/million yuan ??

CCER transaction amount Ten thousand yuan ? The recycling and utilization of scrap aluminum Ten thousand tons ??

Circular economy

Environmental investment Ten thousand yuan ???? Usage of recycled water Cubic meter ??????

Chemical Oxygen Demand Emissions Ton ??.?

Ammonia nitrogen emissions Ton ?.?

Pollution

Nitrogen oxide emissions Ton ???.?

Sulfur Dioxide Emissions Ton ??.?

Particulate matter emissions Ton ??.??? | Lizhong Sitong Light Alloys Group Co. Ltd. ???? Sustainability Report | ??

Social performance Topics Index Unit ????

Topics Index Unit ???? Number of employed individuals absorbed

during the reporting period People ????

Total amount of investment in rural revitalization and social

contribution Ten thousand yuan ?? Individual ???

Rural revitalization and Total number of employees participating in rural revitalization Total number of employees People ?????

social contribution and social contributions Person-time ???

Number of male employees at the end of the period People ????

Total hours of employee participation in rural revitalization and

social contribution services Hour ????

Number of female employees at the end of the period People ????

Accumulated number of authorized patents Term ???

Master degree or above People ???

Number of invention patents Term ???

College and undergraduate programs People ????

Number of software copyrights Piece ??

Technical secondary school high school and below People ????

Number of intellectual property infringement incidents Piece ?

Number of employees under the age of ?? at the end of the People ????

Innovation driven period

Research and development funding investment in ???? Ten thousand yuan ?????.?

Number of employees aged ??-?? at the end of the period People ????

Proportion of R&D investment to operating revenue in ???? % ?.??

Number of employees aged ?? and above at the end of the People ???

Number of R&D team members in ???? people ???? period

The proportion of R&D team members to the total number of Social insurance coverage rate % ???

employees in ???? % ??

Number of employee turnover/resignations People ????

Total number of cooperative suppliers Family ????

Employee turnover rate/turnover rate % ??.?

Number of Chinese suppliers Family ????

Number of labor disputes that occurred during the reporting

period Piece ?

Supply chain security Number of overseas suppliers Family ???

Total number of suppliers who have signed contracts that Number of trainees during the reporting period Time ?????

include environmental and labor terms family ????

Training coverage rate during the reporting period % ???

Proportion of suppliers who have signed integrity agreements % ???

Number of deaths due to work-related reasons People ?

Customer complaint handling rate % ???

Death rate due to work-related reasons % ?

Product and service safety Customer satisfaction % ??

and quality

The investment amount of employee work-related injury Ten thousand yuan ???

Major product and service safety and quality liability accidents insurance

occur Piece ?

Coverage rate of employee work-related injury insurance % ???

Number of complaints received from customers regarding data

and privacy security Piece ?

Coverage rate of employee health check ups % ???

Data security and customer

privacy protection Number of customer data leakage incidents Piece ?

Number of employees in need of assistance People ???

A data security incident has occurred Piece ??? | Lizhong Sitong Light Alloys Group Co. Ltd. ???? Sustainability Report | ??

Governance Performance Related to Sustainable Development Index table

Topics Index Unit ???? Index Table of GRI Standards for Sustainable Development Reporting

employees Piece ?

Instructions Lizhong Sitong Light Alloy Group Co. Ltd. reported the information cited in this GRI content index in accordance with GRI standards from

January ? ???? to December ?? ????

The total number of directors who have received anti

commercial bribery and anti-corruption training People ?

GRI ? used Basic ????

The proportion of directors who have received anti commercial

bribery and anti-corruption training % ???

Anti commercial bribery The total number of management personnel who have received

and anti-corruption anti commercial bribery and anti-corruption training People ??? Disclosure item Corresponding data

Proportion of management personnel who have received anti % ??? GRI ?: General Disclosure ????commercial bribery and anti-corruption training

The total number of employees who received anti commercial

bribery and anti-corruption training People ?????

?-? Organizational details Regarding this report

The proportion of employees who have received anti

commercial bribery and anti-corruption training % ??? ?-? Entities included in the organization’s sustainability report Regarding this report

Corporate governance Number of members of directors supervisors and senior management personnel People ?? ?-? Reporting period frequency and contact point Regarding this report

?-? Restatements of information Not involved

?-? External assurance

Activities and workers

?-? Activities value chain and other business relationships Entering Lizhong Group

?-? Employees

?-? Workers who are not employees Rural Revitalization and Social Contribution

Governance

?-? Governance structure and composition Corporate Governance

?-?? Nomination and selection of the highest governance body Corporate Governance

?-?? Chair of the highest governance body Corporate Governance

?-?? Role of the highest governance body in overseeing the management of impacts Corporate Governance

?-?? Delegation of responsibility for managing impacts Corporate Governance

?-?? Role of the highest governance body in sustainability reporting Corporate Governance

/?? | Lizhong Sitong Light Alloys Group Co. Ltd. ???? Sustainability Report | ??

Disclosure item Corresponding data Disclosure item Corresponding data

?-?? Communication of critical concerns Stakeholder Communication GRI ???: Market Presence ????

?-?? Collective knowledge of the highest governance body Sustainable Development Governance ???-? Ratios of standard entry level wage by gender compared to local minimum wage /

?-?? Evaluation of the performance of the highest governance body / ???-? Proportion of senior management hired from the local community /

?-?? Remuneration policies GRI ???: Indirect Economic Impacts ????

?-?? Process to determine remuneration ???-? Infrastructure investments and services supported Innovation Driven

?-?? Annual total compensation ratio / Innovation Driven

Strategy policies and practices GRI ???: Procurement Practices ????

?-?? Statement on sustainable development strategy Chairman’s Speech ???-? Proportion of spending on local suppliers /

?-?? Policy commitments Refer To Each Chapter GRI ???: Anti-corruption ????

?-?? Embedding policy commitments Refer To Each Chapter ???-? Operations assessed for risks related to corruption Anti Commercial Bribery and Anti-Corruption

?-?? Processes to remediate negative impacts Sustainable Development Governance ???-? Communication and training about anti-corruption policies and procedures Anti Commercial Bribery and Anti-Corruption

?-?? Mechanisms for seeking advice and raising concerns Stakeholder Communication Anti Commercial Bribery and Anti-Corruption

?-?? Compliance with laws and regulations Corporate Governance GRI ???: Anti-competitive Behavior ????

?-?? Membership associations Sustainable Development Governance ???-? Legal actions for anti-competitive behavior anti-trust and monopoly practices Anti Unfair Competition

Stakeholder engagement GRI ???: Tax ????

?-?? Approach to stakeholder engagement Stakeholder Communication ???-? Approach to tax Corporate Governance Risk Management and Internal Control

?-?? Collective bargaining agreements / ???-? Tax governance control and risk management Corporate Governance Risk Management and Internal Control

GRI ?: Material Topics ???? ???-? Stakeholder engagement and management concerns related to tax /

?-? Process to determine material topics Sustainable Development Governance ???-? Country-by-country reporting Not Involved

?-? List of material topics Sustainable Development Governance GRI ???: Materials ????

?-? Management of material topics Sustainable Development Governance ???-? Materials used by weight or volume /

GRI ???: Economic Performance ???? ???-? Recycled input materials used Sustainable Resource Utilization

???-? Direct economic value generated and distributed Entering Lizhong Group ???-? Reclaimed products and their packaging materials Sustainable Resource Utilization

???-? Financial implications and other risks and opportunities due to climate change Addressing Climate Change GRI ???: Energy ????

???-? Energy consumption within the organization Sustainable Resource Utilization

???-? Financial assistance received from government /?? | Lizhong Sitong Light Alloys Group Co. Ltd. ???? Sustainability Report | ??

Disclosure item Corresponding data Disclosure item Corresponding data

???-? Energy consumption outside of the organization / GRI ???: Waste ????

???-? Energy intensity Sustainable Resource Utilization Pollution Prevention and Control and Ecosystem Protection

???-? Reduction of energy consumption Sustainable Resource Utilization /

???-? Reductions in energy requirements of products and services Sustainable Resource Utilization ???-? Waste generated Pollution Prevention and Control and Ecosystem Protection

???-? Waste diverted from disposal Pollution Prevention and Control and Ecosystem Protection

???-? Interactions with water as a shared resource Sustainable Resource Utilization ???-? Waste directed to disposal Pollution Prevention and Control and Ecosystem Protection

???-? Management of water discharge-related impacts Sustainable Resource Utilization GRI ???: Supplier Environmental Assessment ????

???-? Water withdrawal Sustainable Resource Utilization ???-? New suppliers that were screened using environmental criteria Stable Supply Chain

???-? Water discharge Pollution Prevention and Control and Ecosystem Protection ???-? Negative environmental impacts in the supply chain and actions taken Stable Supply Chain

???-? Water consumption Sustainable Resource Utilization GRI ???: Employment ????

GRI ???: Biodiversity ???? ???-? New employee hires and employee turnover

???-? Operational sites owned leased managed in or adjacent to

protected areas and areas of high biodiversity value outside protected areas Not Involved to temporary or part?time employees

Not Involved ???-? Parental leave

???-? Habitats protected or restored Not Involved GRI ???: Labour/Management Relations ????

???-? IUCN Red List species and national conservation list species Not Involved ???-? Minimum notice periods regarding operational changes /

GRI ???: Occupational Health and Safety ????

GRI ???: Emissions ????

???-? Occupational health and safety management system

???-? Direct (Scope ?) GHG emissions Response to Climate Change Key Indicator Performance Table

Sustainable Development Governance Employees

???-? Indirect (Scope ?) GHG emissions Response to Climate Change Key Indicator Performance Table

???-? Occupational health services

???-? Other indirect (Scope ?) GHG emissions /

???-? Worker participation consultation and communication on occupational health and safety

???-? GHG emissions intensity Response to Climate Change Key Indicator Performance Table

???-? Worker training on occupational health and safety

???-? Reduction of GHG emissions Response to Climate Change Key Indicator Performance Table

???-? P Promotion of worker health

???-? Emissions of ozone-depleting substances (ODS) Not Involved

???-? Prevention and mitigation of occupational health

Pollution Prevention and Control and Ecosystem Protection and safety impacts directly linked by business relationships

???-? Workers covered by an occupational health and safety management system?? | Lizhong Sitong Light Alloys Group Co. Ltd. ???? Sustainability Report | ??

Disclosure item Corresponding data Disclosure item Corresponding data

???-? Work-related injuries GRI ???: Supplier Social Assessment ????

???-?? Work-related ill health ???-? New suppliers that were screened using social criteria Stable Supply Chain

GRI ???: Training and Education ???? ???-? Negative social impacts in the supply chain and actions taken Stable Supply Chain

???-? Average hours of training per year per employee Key Indicator Performance Table GRI ???: Public Policy ????

???-? Programs for upgrading employee skills and transition assistance programs ???-? Political contributions Not Involved

???-? Percentage of employees receiving regular performance and career development reviews / GRI ???: Customer Health and Safety ????

GRI ???: Diversity and Equal Opportunity ???? ???-? Assessment of the health and safety impacts of product and service categories Product and Service Safety and Quality

???-? Diversity of governance bodies and employees Corporate Governance Employees ???-? Incidents of non-compliance concerning the health and safety

impacts of products and services Product and Service Safety and Quality

???-? Ratio of basic salary and remuneration of women to men /

GRI ???: Marketing and Branding ????

GRI ???: Nondiscrimination ????

???-? Requirements for product and service information and labeling Product and Service Safety and Quality

???-? Incidents of discrimination and corrective actions taken

???-? Incidents of non-compliance concerning product and service information and labeling Not Involved

GRI ???: Freedom of Association and Collective Bargaining ????

???-? Incidents of non-compliance concerning marketing communication Not Involved

???-? Operations and suppliers in which the right to freedom

of association and collective bargaining may be at risk GRI ???: Customer Privacy ????

GRI ???: Child Labour ???? ???-? Substantiated complaints concerning breaches of customer

privacy and losses of customer data Data Security and Customer Privacy Protection

GRI ???: Forced or Compulsory Labour ????

GRI ???: Security Practices ????

???-? Security personnel trained in human rights policies or procedures Not Involved

GRI ???: Rights of Indigenous Peoples ????

???-? Incidents of violations involving rights of indigenous peoples Not Involved

GRI ???: Local Communities ????

???-? Operations with local community engagement impact assessments and development Sustainable Resource Utilization Rural Revitalization and Social

programs Contribution Employees

Not Involved?? | Lizhong Sitong Light Alloys Group Co. Ltd. ???? Sustainability Report | ??

Independent Verification Statement?? | Lizhong Sitong Light Alloys Group Co. Ltd. ???? Sustainability Report | ??

Feedback Form

Dear readers:

Thank you for reading the “Lizhong Sitong Light Alloy Group Co. Ltd. 2024 Sustainable Development Report”. In order to improve the content

and format of our report and enhance the quality of information disclosure we sincerely invite you to fill out the following feedback form.Your valuable opinions and suggestions will help us continuously optimize and improve our ESG responsibility management level.?.What is your overall evaluation of this report

Excellent Good Average Not good Poor

?.Do you think this report can reflect the significant impact of the company on the economy society and environment

Excellent Good Average Not good Poor

Advanced production processes and

?.What do you think of the clarity accuracy and completeness of the information data and indicators disclosed in this technologies have been used to achieve

report

Excellent Good Average Not good Poor the recycling of renewable resourcesto

?.What do you think of the content structure arrangement of this report continuously pursue the goal of green

Excellent Good Average Not good Poor developmentand to contribute to

?.What do you think of the layout and presentation design of this report achieving carbon peaking and

Excellent Good Average Not good Poor carbonneutralization

?.What other opinions and suggestions do you have regarding the sustainable development of Lizhong Sitong Light Alloy

Group Co. Ltd.

Please fill out this form and send an email to info@stnm.com.cn. Thank you again for your trust and support!Appreciation Hard-working

Concentration Innovation

Released by Lizhong Sitong Light Alloys Group Co. Ltd.Registered address: No. 359 Fazhan West Street Qingyuan

District Baoding City Hebei Province China

Postal code: 071000

Phone: 0312-5997688