Stock Code：300437
2025
Sustainability Report
Henan Qingshuiyuan Technology Co. Ltd.Tel: 0391-6088788 Group WeChat Public Platform
Address: 100 meters west of the intersection of Kegong Road and Wenbo
Road Huling High-tech Zone Jiyuan City Henan Province China Henan Qingshuiyuan Technology Co. Ltd.Email: dongshihui@qywt.com.cn
Website: http://www.qywt.com.cnContent
About This Report 01 Governance as the Foundation: Innovation-Driven Leadership Appendix 95
Upholding Integrity for Long-Term Co-creating Industrial Value
Chairman’s Statement 03 Effectiveness
Key Performance Indicator 95
About Qingshuiyuan 05 Indicator Index 101
Sustainable Development Governance 15 Igniting Innovation-Driven Development 50
Corporate Honors 09 Feedback Form 103Party Building Leadership 20 Product and Service Safety and Quality 55
Strengthening Compliance Governance 21 Data Security and Customer Privacy Protection 59
2025 Milestones 10
Deepening Investor Relations Management 25 Responsible Supply Chain 61
ESG Performance Highlights 11 Adhering to Business Ethics 27
Green Development: Refining Uniting Efforts and Fulfilling R
Ecological and Environmental esponsibilities for a Better Future
Protection Practices
Addressing Climate Change 31 Strengthening the Foundation of Talent 77
Environmental Compliance Management 33 Empowering Career Development 83
Prudent Resource Management 45 Strictly Adhering to the Safety Bottom Line 85
Lean Material Management 50 Community Public Welfare 942025 Sustainability Report Henan Qingshuiyuan Technology Co. Ltd.About This Report Report Quality Assurance
The Company strives to ensure the completeness materiality balance and comparability of the information presented in this
report systematically elaborating on the Company’s concepts systems practices and performance in pursuing development
This report is the annual sustainability report released by Henan Qingshuiyuan Technology Co. Ltd. (hereinafter referred to as economic growth ecological protection and social well-being. The Company guarantees the objectivity accuracy and complete-
“Qingshuiyuan” “the Company” or “we”). Prepared based on the principles of objectivity standardization transparency and ness of the content in this report confirming that there are no false records misleading statements or material omissions.comprehensiveness this report provides a detailed disclosure of the Company’s environmental social and governance (ESG) Through the release of this report the Company aims to enhance its social responsibility management strengthen communication
practices and performance for the year 2025. with stakeholders and promote sustainable development.Report Scope Definitions
The reporting scope covers Henan Qingshuiyuan Technology Co. Ltd. as the parent entity including its subsidiaries and affiliated
Term Definition
companies. Unless otherwise specified the scope of this report is consistent with that of the Company’s annual report.Qingshuiyuan the Company We Henan Qingshuiyuan Technology Co. Ltd.Report Period Qingyuan Water Treatment Jiyuan Qingyuan Water Treatment Co. Ltd.Tongsheng Environment Henan Tongsheng Environmental Engineering Co. Ltd.From January 1 2025 to December 31 2025 (hereinafter referred to as the “Reporting Period”). To enhance comparability and
forward-looking insights certain information may be traced back to previous years or include forward-looking statements where Ande Technological Shaanxi Ande Technological Industry Co. Ltd.appropriate.Aichi Environmental Protection Aichi Environmental Protection Co. Ltd.Siweida Jiyuan Siweida Environmental Protection Technology Co. Ltd.Report Cycle
Shuiyunzong Henan Shuiyunzong Intelligent Control Technology Co. Ltd.The sustainability report of Henan Qingshuiyuan Technology Co. Ltd. is an annual report released once per year consistent with
the financial reporting cycle. Qingshuiyuan Shanghai Qingshuiyuan (Shanghai) Environmental Protection Technology Co. Ltd.Basis of Preparation Report Access
Shenzhen Stock Exchange Self-Regulatory Guideline for Listed Companies No. 17 – Sustainability Report (Trial) This report is published in electronic format. You may download the electronic version of this report from the Shenzhen Stock
Exchange website (www.szse.cn) or the Company’s official website (http://www.qywt.com.cn/) to obtain more information about
Shenzhen Stock Exchange Self-Regulatory Guide for Listed Companies No. 3 – Compilation of Sustainability Reports (2026 the Company. Should you have any questions or suggestions regarding this report you may send an email to dongshihui@qy-
Revision) wt.com.cn or call 0391-6089342.General Framework of China Corporate Sustainability Report Guide (CASS-ESG 6.0) by the Chinese Academy of Social Sciences
Global Reporting Initiative (GRI) Sustainability Reporting Standards (GRI Standards) (2021 Edition)
United Nations Sustainable Development Goals (SDGs) Feedback
Guidelines on High-Standard Fulfillment of Social Responsibilities by Central Enterprises in the New Era issued by the Sta
Should you have any opinions or suggestions regarding the Company’s sustainable development please feel free to provide
feedback via the contact information below helping us continuously improve our report.Data Description Company Telephone: 0391-6089342
Company Website: http://www.qsygroup.cn/
The data used in this report are derived from sources including but not limited to the Company’s actual operational raw data
Company Email: dongshihui@qywt.com.cn
publicly available data from government authorities annual financial data internal statistical statements third-party question-
naires and third-party evaluation interviews. The financial data presented in this report are denominated in Renminbi (RMB). In Address: 100 meters west of the intersection of Kegong Road and Wenbo Road Huling High-tech Zone Jiyuan City Henan
the event of any discrepancies with the financial reports the financial reports shall prevail. Province China
01 022025 Sustainability Report Henan Qingshuiyuan Technology Co. Ltd.
Chairman’s Statement
Talent as the Cornerstone:
The year 2025 marks the final year of China’s 14th Five-Year Plan and a pivotal year for Qingshuiyuan as we forged
ahead under pressure and achieved comprehensive progress on our journey toward the “dual carbon” goals. Gathering Innovation Momentum with the Spirit of Enterprise
Looking back we have navigated the tides of our time with technology as our oar and sustainability as our sail.Moving forward we will continue to uphold our core philosophy of “building a century-old enterprise that benefits We firmly believe that talent is the Company’ s most valuable asset and the wellspring of high-quality development. Adheringsociety and serves the world” breaking new ground amid changes and steadily advancing along the path of to a “people-oriented” approach the Company has established dual career development pathways running parallel for manage-
high-quality development. ment and non-management personnel providing every employee with a ladder for growth. We have continuously improved our
compensation benefits and performance management systems achieving 100% labor contract signing rate 100% social insur-
ance coverage rate and 100% employee health examination coverage. In 2025 through regular employee care initiatives hard-
ship support programs and a variety of cultural and sports activities we are committed to fostering an inclusive fair and har-
monious workplace where every striving individual can realize their potential and create value on the Qingshuiyuan platform
Innovation at the Core: collectively building the enduring strength for the Company’ s century-long sustainable development.Lighting the Way to Green Transformation with Technology
We firmly believe that technological innovation is a powerful driver of green development. During the Reporting Period leverag-
ing innovation platforms such as the Henan Provincial Water Treatment Agent Engineering Technology Research Center and the Staying True to Our Mission and
Henan International Joint Laboratory of Smart Water Treatment Systems and deepening industry-academia-research collabora- Setting Sail on a New Journey
tion with Zhejiang University the Company advanced the process optimization and upgrading of polymer products including
PESA AA/MA and PAA. Our self-developed “Shuiyunzong Industrial Internet Platform” deeply integrates sensors artificial intelli- At the new starting point of 2026 Qingshuiyuan will continue to safeguard lucid waters and lush mountains with dedication andgence and the industrial internet to enable full-lifecycle intelligent control of industrial water systems driving intelligent drive industrial upgrading with innovation steadily advancing toward our ambitious vision of becoming a “domestic first-classupgrading across the industry. In 2025 the Company was granted 11 utility model patents 2 software copyrights and 4 inven- world-leading environmental protection enterprise.” We firmly believe that no matter how long the road steady steps will lead
tion patents and took a leading role in participating in the formulation and revision of several national and industry standards. to the destination; no matter how difficult the task persistent effort will bring success. Let us join hands with all sectors of
Through solid research achievements we have fulfilled our commitment to driving green industrial upgrading through techno- society harness the power of technology and the spirit of responsibility and work together to paint a magnificent picture of
logical innovation. sustainable development contributing the strength of Qingshuiyuan to building a beautiful China and achieving global carbon
neutrality goals.Responsibility as the Foundation:
Building a Strong Base for Development with Green Governance
We are deeply aware that protecting lucid waters and lush mountains is a fundamental corporate responsibility. The Company
has placed environmental compliance management at a strategic level and established an environmental responsibility system Chairman: Wang Zhiqing
covering the entire operational process. All five of our subsidiaries have obtained ISO 14001 environmental management system
certification. During the Reporting Period neither the Company nor its subsidiaries recorded any environmental penalties and
all pollutants were stably discharged in compliance with relevant standards. Furthermore we actively promoted cleaner produc-
tion and circular economy principles implementing energy-saving and waste-reduction projects such as condensate water
recovery and by-product deep processing while comprehensively promoting the use of electric forklifts hybrid official vehicles
and electric stoves effectively reducing our operational carbon footprint. At the same time we have actively responded to the
national “dual carbon” goals by integrating climate change response into our governance framework taking concrete actions to
solidify the green foundation for sustainable development and striving to become a steadfast guardian of a beautiful China.
03 042025 Sustainability Report Henan Qingshuiyuan Technology Co. Ltd.
About Qingshuiyuan Company Culture
Company Profile
Core Philosophy
To build a century-old
Qingshuiyuan was founded in Stock Code Products are exported to enterprise that benefits
countries society and serves the world.1995 300437 60+and regions
Henan Qingshuiyuan Technology Co. Ltd. was founded in 1995
and is an environmental protection technology enterprise special-
izing in the R&D production sales and service of water treatment
chemicals. The Company is headquartered in the Jiyuan High-tech
Industrial Development Zone Henan Province with subsidiaries in
Beijing Shanghai Shaanxi Henan Hainan and the United States.Among these three wholly-owned subsidiaries are national-level
high-tech enterprises. On April 23 2015 the Company was listed
on the Growth Enterprise Market (GEM) of the Shenzhen Stock
Exchange (Stock Code: 300437). The Company has obtained AEO
advanced certification and its products are exported to more than
60 countries and regions.
The Company focuses on innovative development along the
environmental protection industry chain centered on water with
two core business segments: the industrial water treatment
segment (including chemical R&D production and sales; Shuiyun-
zong intelligent services; and treatment of complex industrial wastewater) and the ecological and environmental protection segment
(including municipal engineering rural domestic sewage treatment ecological restoration and river course management). The Company
currently has an annual designed production capacity of over 200000 tons covering 8 series and more than 60 types of water treatment
chemicals and derivatives including scale inhibitors dispersants scale and corrosion inhibitors biocides and preservatives oilfield auxilia-
ries daily chemical auxiliaries textile and printing auxiliaries and papermaking auxiliaries. These products are widely used in industries Corporate Spirit
such as chemicals steel power metallurgy daily chemicals laundry textiles and printing and dyeing.Qingshuiyuan is committed to transforming from traditional chemical production to intelligent terminal services. Leveraging more than Diligence Perseverance
30 years of experience in water treatment technical services and deeply integrating sensor artificial intelligence and industrial internet Learning Innovation.
technologies the Company has independently developed an industrial internet platform for water treatment. This platform consists of
water quality monitoring sensors intelligent water treatment terminal equipment cloud service modules and intelligent operation
systems enabling online monitoring intelligent chemical dosing network transmission anomaly alerts and remote control for industrial
water systems. The platform provides customers with value-added intelligent services throughout the entire process allowing clients to Corporate Vision
experience the value of “products + platform + services” and achieving the effects of “machine substitution” and “intelligent hospital”thereby driving the intelligent transformation of traditional water treatment service models. The “Intelligent Water Treatment Service To become a first-classSystem Based on Industrial Internet Architecture” has reached the international advanced level for similar technologies. domestic and world-leading
Qingshuiyuan adheres to a development strategy anchored by the R&D and production of water treatment chemicals and supported by
water treatment engineering. The Company remains committed to high-tech cultivation asset-light operations and high-quality develop- environmental protection
ment striving to set benchmarks in the environmental protection industry and among listed companies. In the future the Company aims enterprise.to evolve into a modern environmental protection industry group integrating industrial water treatment green energy-saving and environ-
mental protection technologies ecological and environmental governance new energy raw material production intelligent water
treatment equipment manufacturing and digital services ultimately becoming a domestic first-class and world-leading environmental
protection enterprise.
05 062025 Sustainability Report Henan Qingshuiyuan Technology Co. Ltd.
Development History 2021 2023The Postdoctoral Innovation Practice Participated in and hosted the Symposium on Registration
Base (Qingshuiyuan) of Henan Province System Reform and Financing of Small and Medium-sized
was inaugurated. Enterprises (sponsored by Beijing Reform and Development
2010 Qingshuiyuan hosted the Symposium
Research Association).on Dual Carbon Goals and Smart Held the “Forging Ahead through Wind and Rain Walking
1995 Water Treatment Technologies which Hand in Hand for Health” customer gratitude exchange activity Recognized as Henan Provincial was attended by more than 300 to celebrate the 28th anniversary of Qingshuiyuan’s establish-
Engineering Technology 2017 experts scholars and entrepreneurs ment.The predecessor of Research Center for Water from over 150 universities research
the Group Jiyuan Treatment Agents and Henan Fully acquired Shaanxi Ande institutes and relevant enterprises in 26
Held the 2023 Partner “Summer Camp” themed “Building aQingyuan Water Provincial Enterprise Technology provinces including Beijing Shanghai Strong Body and Cultivating Both Civil and Military Skills”.Treatment Co. Ltd. Center and awarded the title of Technological Industry Co. Ltd. and Liaoning. Qingshuiyuan organized the launching ceremony of the
was founded. Key High-Tech Enterprise of the Signed a cooperation agreement Qingshuiyuan held the inaugural thematic education on studying and implementing Xi Jinping National Torch Program. with the Research Center for
Eco-Environmental Sciences meeting of the General Party Branch.Thought on Socialism with Chinese Characteristics for a New
2008 Era.2015 Chinese Academy of Sciences to jointly build the Engineering Awarded the title of “Caring Unit” by the Communist Youth Henan Qingshuiyu- Technology R&D Center for Soil League Henan Provincial Committee and Henan Provincial
an Technology Co. Obtained the certification Pollution Prevention and
Youth Development Foundation.Ltd. was officially of the National Sanitation Ecological Remediation. The first table tennis interest class of Qingshuiyuan started.established and
listed. Foundation (NSF) for five consecutive years. 2019
Listed on the Shenzhen
Stock Exchange. Jointly established Henan Shuiyunzong
Established Qingshuiyuan Intelligent Control
(Shanghai) Environmental Technology Co. Ltd.Technology Co. Ltd. The scientific and
technological achieve-
ment of the intelligent
water treatment service
system passed expert
evaluation.Selected as one of the
Top 100 Private
Manufacturing
Enterprises in Henan.
2022
Jiyuan Charity Federation · Qingshuiyuan
Fund was launched.The Secretary of Henan Provincial Party
Committee inspected the R&D Center of 2024
Qingshuiyuan pointing out that efforts The 2024 Advanced Seminar on Operation
should be focused on key fields such as and Maintenance of Industrial Circulating
high-end instrument and meter manufactur- Cooling Water System and Intelligent
ing optimize resource allocation concen- Management Capacity Improvement
2016 trate efforts on tackling key problems strive sponsored by the Industrial Water 2009 to take the lead in new tracks and achieve Treatment Special Committee of the new breakthroughs so as to provide strong
Established Aichi Environmental Chemical Industry and Engineering Society support for high-level scientific and
Awarded the title Protection Co. Ltd. in the United of China and the National Industrial Water 2018 technological innovation.of National States. Treatment Information Center and undertak-
High-Tech Recognized as an AEO Advanced Certified en by Qingshuiyuan was held in Qingshui-
Enterprise. Established Beijing Marketing Established Jiyuan Enterprise by the customs. yuan.Center. Qingyuan Water Treatment To celebrate the 103rd anniversary of the
Fully acquired Henan Tongsheng Co. Ltd. a wholly-owned founding of the Communist Party of China
Environmental Engineering Co. subsidiary. 2020 the General Party Branch of Qingshuiyuan 2011 Ltd. Established Jiyuan Siweida and the Party Branch of Henan Yingyu Law
Environmental Technology The International Joint Laboratory of Henan Firm jointly carried out the “July 1st” Theme Elected as the Vice Co. Ltd. a wholly-owned
Chairman Unit of the subsidiary. Provincial Smart Water Treatment System wasParty Day Activity themed “Passing theapproved. Torch to Stay True to the Original Aspira-Industrial Water Treatment tion Forging Ahead with Majestic Wind to
1999 Special Committee of the Established Hainan Free Compose a New Chapter”.Chemical Industry and Trade Zone Qingshuiyuan The Qingshuiyuan Ecological Environment Research Environmental Technology Institute of Zhengzhou University was signed and
Elected as a member unit of the Engineering Society of Co. Ltd. a wholly-owned inaugurated.The first session of the fourth member
China. congress and the first session of the fourth Water Treatment Agent subsidiary. Qingshuiyuan hosted the China Industrial WaterCon- council of Jiyuan Quality Association
Subcommittee of the National ference and the 40th Annual Meeting and won the co-sponsored by the Market Supervision
Technical Committee for Technical Innovation Award Development Leader and Administration Bureau of the Demon-
Standardization of Chemicals. Award Excellent Member Award Young Elite Award stration Zone and Jiyuan Quality Associa-
and Outstanding Contribution Award. tion was held in Qingshuiyuan.
07 082025 Sustainability Report Henan Qingshuiyuan Technology Co. Ltd.
Corporate Honors 2025 Milestones
February
Party Secretary of the Demonstration Zone Management Committee and Secretary of the Municipal Party
Committee visited Qingshuiyuan Technology. He emphasized that enterprises should strengthen technological
innovation capabilities enhance quality and brand building continuously improve comprehensive competitive-
ness and further consolidate Jiyuan’s leading position in advantageous industries.April
Director of the Demonstration Zone Management Committee and Mayor of the Municipal City conducted an
in-depth inspection of Qingshuiyuan’s Huling intelligent base. He highlighted the need to activate development
momentum through innovation and to cultivate a fertile ground for industry through targeted policies.June
Qingshuiyuan Environment Governance and Green Development Conference hosted by Qingshuiyuan and
the Beijing Reform and Development Research Institute and co-organized by the Chinese Academy of Social
Sciences Executive Finance and Economics Training Program and the Industrial Water Treatment Professional
“Water Treatment Chemicals” Recognized as a “Caring Enterprise” Committee of the Chinese Chemical Society was held in Jiyuan.Qingshuiyuan held its 30th Anniversary and 10th Listing Anniversary Cooperation and Development Confer-Products Received the “Famous Brand for ence.Export” Designation The Jiyuan Advanced Chemical Materials Industry Chain Deputies Liaison Station was inaugurated at
Qingshuiyuan.July
The First Election Conference of the CPC Henan Qingshuiyuan Technology Co. Ltd. Committee and Discipline
Inspection Committee was successfully held electing the first committee leadership teams.August
The Qingshuiyuan team won the First Prize for Group Taijiquan at the 2025 “Entrepreneur Cup” National
Taijiquan Competition.The Henan Provincial Committee on Aging held the 2025 “Rural Revitalization · Caring for Education”
donation ceremony. Qingshuiyuan was awarded the title of “Caring Enterprise” by the Henan Provincial
Committee on Aging Foundation.The Central Plains Doctoral Forum visited Qingshuiyuan initiating a practical collaboration on deep
industry-academia-research integration.Elected as “Vice Chairman Unit” of Established the Jiyuan Advanced Chemical November
Henan Private Enterprise Association Materials Industry Chain Deputies Liaison Station Director of the Demonstration Zone Management Committee and Mayor of the Municipal City visitedQingshuiyuan to conduct a special inspection under the “Learn Review Rectify – Serving Enterprises throughGovernment Reflection” enterprise visit program.Deputy Secretary of the Henan Provincial Committee of the Communist Youth League and delegation visited
Qingshuiyuan for inspection and discussion.December
The Finance and Economy Working Committee of the Demonstration Zone People’s Congress conducted an
enforcement inspection of the Patent Law of the People’s Republic of China and the Henan Province Patent
Regulations.More than 80 faculty and students from Huanghe University of Science and Technology visited Qingshuiyuan
for exchange.Municipal People’s Congress deputies stationed in Shaoyuan Town conducted an off-site inspection of the
Company.
09 102025 Sustainability Report Henan Qingshuiyuan Technology Co. Ltd.
ESG Performance Highlights
Operating Revenue Total Tax Paid R&D Investment Workplace Safety
868.7938million 27.2161
Investment
million
8.9315million 4.751 million
Economic Social
Performance Performance Labor Contract Supplier Integrity
Signing Rate Agreement Signing Rate
100%95%
Social Insurance
Coverage Rate
100%
Total Environmental Protection Total Greenhouse Gas
Investment Emissions
1.0026million 44075.46tCO?e
Environmental Business Ethics Pledge Number of Investor
Performance Total greenhouse gas emissions Sign-off Rate Inquiries Addressed
per million revenue
100% 65Responses
50.73tCO?e Social Insurance
Coverage Rate
11 12Governance as the
Foundation: Upholding
Integrity for Long-Term
Effectiveness
This chapter covers material ESG issues.Sustainable Development Governance
Party Building Leadership
Strengthening Compliance Governance
Deepening Investor Relations Management
Adhering to Business Ethics2025 Sustainability Report Henan Qingshuiyuan Technology Co. Ltd.Sustainable Development Stakeholder Communication Channels and Frequency Areas of Concern
Harmonious employee relations
Governance [Regular] Employee satisfaction surveys Comprehensive compensation and benefitsEmployees [Regular/Irregular] Employee representative congresses
Democratic management
[Irregular] Feedback sessions
Training and development
Henan Qingshuiyuan Technology Co. Ltd. has consistently been committed to integrating ESG principles throughout the Compa-
ny’s entire development process. The Company has established a comprehensive ESG governance system that not only strictly Customer rights protection
adheres to compliance requirements and optimizes the governance framework but also continuously deepens its efforts in [Regular] Customer satisfaction surveys Product quality and safetyCustomers
environmental protection and social responsibility. Furthermore the Company places great emphasis on the guiding role of ESG [Irregular] Customer meetings and exchanges Innovation-driven development
goals demonstrating its corporate responsibility through tangible governance outcomes. By advancing its own sustainable devel- Privacy protection
opment the Company actively promotes social harmony achieving a mutually beneficial and win-win relationship between corpo-
rate and social value.[Regular] Financial reports Investor rights protection
Shareholders and [Regular/Irregular] Shareholder meetings company Information disclosure
announcements
Investors Investor communication
[Irregular] Earnings briefings investor site visits roadshows
Sustainable Development Practices analyst meetings etc. Shareholder returns
To solidify the foundation for sustainable development the Company has incorporated ESG training into its management mecha- Suppliers and Business ethics[Irregular] Supplier conferences distributor conferences
nisms. Through targeted capacity-building for management and core positions we strive to enhance the responsibility awareness Partners Supply chain management
and professional competence of all employees ensuring that ESG goals are effectively integrated into daily operations.Environmental protection
Communities [Irregular] Public welfare and charity activities
Social welfare
[Case Study] ESG Thematic Training
In 2025 the Company engaged instructors Compliance governance
Government and
from a third-party organization to conduct Tax compliance
Regulatory [Irregular] Research visits symposiums
ESG thematic training reviewing previous
Authorities Party-building leadership
ESG strategic achievements and outlining key Rural revitalization
ESG tasks and implementation pathways for
the new year. This initiative injected momen-
tum into enhancing long-term resilience and
fulfilling social responsibilities. Training Session
Double Materiality Analysis
This year the Company continued to refer to the assessment methodologies of domestic and international disclosure standards
Stakeholder Engagement including the Shenzhen Stock Exchange Self-Regulatory Guideline for Listed Companies No. 17 - Sustainability Report (Trial) and
GRI 3: Material Topics 2021 applying the analytical perspectives of impact materiality and financial materiality to identify and
evaluate material topics for the year. The specific implementation steps are as follows:
The Company consistently values constructive interaction with its stakeholders. We have thoroughly identified and defined six
core stakeholder groups and through diverse communication channels actively listen provide sincere feedback and integrate
the needs of all parties into corporate decision-making. To deepen two-way communication we have established multiple
communication channels to address stakeholder concerns and expectations. Through open dialogue we build consensus;
through value co-creation we seek mutual benefit. We are committed to working hand in hand with all partners to promote
long-term prosperity.
15 162025 Sustainability Report Henan Qingshuiyuan Technology Co. Ltd.
Double Materiality Topics
Topic Assessment Process Analysis Method
Environmental Compliance Management Energy Utilization Water Resource Utilization Pollutant Discharge Waste
01 Analyze the macro-environment based on global trends and China’s industrial development Disposal R&D Innovation-Driven Development Responsible Supply Chain
trends conduct industry analysis and analyze the Company’s business model to identify
Understanding the stakeholders and the impacts risks and opportunities facing the Company.Company Context
Refer to AA1000 to identif y stakeholders and respond to their demands and expectations. Financially Material Topics
02 Refer to the Global Reporting Initiative (GRI) Standards the United Nations Sustainable Devel- Climate Change Response
Initial Topic opment Goals (SDGs) SASB MSCI Wind and the latest exchange guidelines to update the
Screening Company’s topic library for 2025.Impact Materiality Assessment Impact Materiality Topics
Review the Company’s performance on relevant topics to determine whether it has a signifi-
03 cant impact on the economy society and environment. Conduct research and analysis on Energy Utilization Water Resource Utilization Circular Economy Ecosystem and Biodiversity Protection Protection
stakeholders through expert analysis.Topic Materiality of Employees’ Legitimate Rights and Interests Employee Training and Development Information Security and
Assessment Financial Materiality Assessment Customer Privacy Protection Product Safety and Quality Social Contribution Rural Revitalization Anti-Bribery and
Analyze impacts dependencies and other factors combined with expert judgment to identify Anti-Corruption Anti-Unfair Competition Due Diligence Stakeholder Engagement Protection of Shareholders’
and assess risks and opportunities under relevant topics evaluating them based on the Rights and Interests Standardized Corporate Governance
likelihood of occurrence impact level and time horizon of impact.
04 Develop a list of topics with impact materiality and financial materiality which is reviewed and Related Topics
Topic Confirmation approved by relevant departments to ensure that the topics are disclosed transparently
and Approval balanced and comprehensively in the report.Ethics in Science and Technology Equal Treatment of Small and Medium-sized Enterprises (SMEs)
To ensure the timeliness and relevance of the topic assessment during the Reporting Period the Company prudently
updated and adjusted the materiality topic matrix based on previous years’ materiality survey data.Notes:1. The Company’s core business does not involve research development or other activities in sensitive fields such as life
sciences or artificial intelligence ethics. Therefore “Ethics in Science and Technology” is included as a related topic. 2. The
Materiality Matrix Company treats SMEs equally and has no overdue payments owed to SMEs. Therefore “Equal Treatment of SMEs” is included as
a related topic. 3. The Company has not conducted ESG-specific due diligence work. However the Company continuously carries
out risk management to identify and assess potential negative impacts arising from its operations. For further details please refer
Circular Economy Information Security to the section on Strengthening Compliance Governance.Ecosystem and Biodiversity Protec- and Privacy Protection Environmental Compliance Manage-
tion Product Safety and ment
Protection of Employees' Legal Rights Quality 1.Energy Utilization、Water Resource
The and Interests Occupational Health Utilization
importance Employee Training and Development and Safety in Produc-
2.Pollutant Discharge
Protection of Shareholders' Rights tion 3.Waste Disposal
of the and Interests Social Contribution 4.R&D Innovation-Driven Development
economic Standardized Corporate Governance Rural Revitalization Responsible Supply Chain
social and Anti-Commercial Bribery and Due Diligence
environ- Anti-Corruption Stakeholder Communi-
mental Anti-Unfair Competition cation
impacts
Ethics in Science and Technology Climate Change Response
Equal Treatment of Small and Medium-sized Enterprises (SMEs)
The importance to the company's finance
17 182025 Sustainability Report Henan Qingshuiyuan Technology Co. Ltd.
Sustainable Development Goals (SDGs) Party Building Leadership
The Company pays close attention to and actively implements the United Nations Sustainable Development Goals (SDGs)
integrating them into its corporate development strategy. We are unwaveringly committed to promoting green and low-carbon
transformation actively fostering social harmony and co-creation and striving for high-quality development. In serving the global
process of sustainable development Qingshuiyuan contributes its responsible actions and pragmatic efforts. Party Organization Development
Report Section Material Topics Our Objectives Responsed SDGs
The Company has always adhered to the leadership of the Party and established a robust Party organization framework strength-
ESG Governance Improve the ESG governance system ening the leadership role of the Party Committee in setting directions managing overarching priorities and ensuring implementa-
tion. By consolidating the organizational foundation strengthening ideological guidance and building a strong team of Party
Reduce operational risks members the Company continuously transforms its political advantages into developmental strengths providing a strong political
guarantee for high-quality development.Corporate Compliance Governance Ensure timely accurate and complete information
Governance disclosure and maintain good relationships with Key Performance
investors
No incidents of commercial bribery corruption or In 2025 the Company established the Party Committee Office and the Discipline Inspection Committee Office. It has a Business Ethics embezzlement total of 6 Party branches and 77 Party members.Climate Change Response Reduce carbon emissions During the Reporting Period the Company solidly advanced Party discipline education and Party building practice activities.Through diverse and varied forms we cultivated the spiritual homeland of Party members tempered Party spirit and forged team
Environmental Compliance Achieve compliant pollutant discharge with no environ- cohesion through subtle influence continuously inspiring a vibrant and upward organizational vitality.Management mental violations
Environmental
Protection
Resource Utilization Conserve energy and reduce consumption [Case Study] Viewing of the Commemoration of the 80th Anniversary of the Victory of the
Chinese People’s War of Resistance Against Japanese Aggression and the World Anti-Fascist War
Circular Economy and Avoid damage to surrounding ecosystems and environ-
Ecological Protection ment
On September 3 2025 marking the 80th
Innovation-Driven Develop- anniversary of the victory of the Chinese
ment Complete R&D projects on schedule People’s War of Resistance Against Japanese
Aggression and the World Anti-Fascist War the
Company’s Party Committee organized a viewing
Supply Chain Management Avoid supply chain security or disruption incidents of the military parade live broadcast. During the
event all Party members wore their Party
Industry
Value Product Safety and Quality Ensure product quality complies with national standards
badges in an orderly and solemn manner.Viewing of the Military Parade
Customer Service Improve customer satisfaction
Data Security and Privacy [Case Study] Patriotic Education Thematic Film Screening
Protection Avoid data breach incidents
On September 18 2025 the Company’s Party
Compliant Employment Avoid employment discrimination incidents Committee organized a patriotic education thematic film screening under the theme“Remember History Be Grateful to Heroes NeverEmployees Employee Career Develop- Maintain open career development pathways for Forget National Humiliation Strive forand ment and Training employees Self-Strengthening.” All Party members proba-
Human Rights tionary Party members
Occupational Health and Avoid workplace safety incidents and maintain zero new Film Screening Event
Safety occupational disease cases
Party recruitment targets and some middle and senior management collectively watched the historical film Unit 731.Through an immersive historical experience the activity guided cadres and employees to seek their original aspirations
Social Give back to society and enhance public well-being from hardship and draw strength from victory building a solid ideological foundation for resisting corruption and moral
Contribution Public Welfare and Charity through sustained charitable donations and public decay. After the screening participants expressed that they would translate their feelings into work motivation carry
welfare activities forward the red legacy and continue the spiritual lineage.
19 202025 Sustainability Report Henan Qingshuiyuan Technology Co. Ltd.
Strengthening Compliance Key Performance
Governance Special Committee Proportion of I Number of Number of ndependent Directors Meetings Held Proposals Reviewed
Audit Committee 3/3 5 19
Remuneration and Assessment Committee 2/3 1 2
Qingshuiyuan strictly complies with the Company Law the Securities Law the Shenzhen Stock Exchange Listing Rules Strategy Committee 2/5 1 1
and other relevant laws and regulations and has formulated the Company’s Articles of Association. The Company has Nomination Committee 2/3 3 3
always adhered to Party leadership continuously improving the governance system comprising the Shareholders’ Meet-
ing the Board of Directors and the management level forming a governance structure with clearly defined rights and
responsibilities effective checks and balances and coordinated operations. By improving the comprehensive risk
management and internal control mechanisms and strengthening internal audit supervision the Company’s governance The Company continuously promotes the diversification of Board member composition. By bringing together diverse professional
efficiency has steadily improved effectively promoting transformation and upgrading as well as high-quality develop- backgrounds and industry perspectives the Company enhances the scientific and comprehensive nature of decision-making
ment. stimulates innovative thinking strengthens keen insight into diverse market demands and effectively avoids decision-making bias.Organizational Structure Chart Key Performance
Shareholders’ Meeting As of the end of the Reporting Period the Company’s Board of Directors consisted of 9 members including 3 indepen-
dent directors and 6 non-independent directors (including 1 employee representative director) with independent
directors accounting for 33.33%. In terms of gender composition there were 6 male directors and 3 female directors
with female directors accounting for 33.33%.Board of Directors
Independent directors perform their duties in strict accordance with the Measures for the Management of Independent Directors
Remuneration and Strategy Committee Nomination Committee Audit Committee and other relevant systems participating in corporate governance from an independent and objective standpoint effectively
Assessment Committee supervising the Company’s operations and genuinely protecting the legitimate rights and interests of minority shareholders.Leveraging their professional insights and industry resources they provide recommendations for the Company’s strategy formula-
tion technological innovation industrial chain layout and expansion into emerging fields. By fully exercising their functions in
Chairman of the Board decision-making supervision and advisory independent directors have become a vital force in enhancing the quality of corporate
decision-making and optimizing the governance structure.Board Secretary President
Key Performance
In 2025 the Company convened 8 Board of Directors meetings adopted 38 Board resolutions and achieved an
Office of the Office of Planning and Human Procurement
Board of the Finance Resources Operations
Audit and average attendance rate of 100%.and Tendering
Directors President Department Department Department
Supervision
Center Department
Shareholders’ Meeting
Board of Directors As the highest authority of the Company the Shareholders’ Meeting exercises decision-making authority over major matters in
accordance with the law is responsible for electing and replacing directors and reviews and approves financial reports and
amendments to the Company’s Articles of Association ensuring compliant operations and the maximization of shareholder
The Company’s Board of Directors is the core of strategic decision-making responsible for defining development directions interests. The Company has formulated the Rules of Procedure for Shareholders’ Meetings to protect the legitimate rights and
reviewing major investment and operational matters and supervising management in effective execution. The Company has interests of shareholders improve the efficiency of Shareholders’ Meeting proceedings and promote standardized corporate
established systems including the Rules of Procedure for the Board of Directors the Working System for Independent Direc- operations. During the meetings the Company’s directors and senior management attend and engage in in-depth exchanges on
tors and the Detailed Rules for the Work of the Board Secretary ensuring procedural standardization of decision-making and important issues raised by shareholders.safeguarding the achievement of corporate goals and the maximization of shareholder interests.To further enhance the level of governance professionalism the Board of Directors has established four special committees: Key Performance
the Audit Committee the Remuneration and Assessment Committee the Strategy Committee and the Nomination Commit-
tee. Corresponding working rules have been formulated for each committee to ensure compliant and efficient operations In 2025 the Company convened 4 Shareholders’ Meetings and approved 18 proposals.reasonable incentive mechanisms scientific strategic planning and manageable risks collectively promoting efficient and
orderly corporate governance.
22
212025 Sustainability Report Henan Qingshuiyuan Technology Co. Ltd.
Director and Senior Management Remuneration [Case Study] Training on the Corporate Governance Code for Listed Companies (Revised Draft)
Management On November 10 2025 the Company organized
training on key points of attention in the Corporate
Governance Code for Listed Companies (Revised
The Company has established the Remuneration and Assessment Committee under the Board of Directors which serves as Draft). Through in-depth interpretation of the
the decision-making body for senior management compensation distribution and performance management with a special revised content the training further standardized
leading group established to advance specific work. Pursuant to the Company’s policies senior management members adopt the conduct of directors senior management
an annual salary system with the compensation structure consisting of a base salary and a performance-based salary each controlling shareholders and de facto controllers
accounting for 50% of the total. The base salary is paid evenly on a monthly basis based on the senior management mem- continuously enhancing the Company’s gover-
ber’s monthly attendance. The performance-based salary is closely linked to the Company’s annual overall operating perfor- nance standards. Training Session
mance and the achievement of each senior management member’s annual target responsibility agreement reflecting the
principle of aligning incentives with accountability.The Company has focused on improving its system and process framework restructuring key areas such as compliance and legalaffairs guiding all levels of the organization to complete supporting systems and continuously refining the “comprehensive riskcontrol” system. At the same time the Company has strengthened contract management leveraging system upgrades and
rigorous review as key drivers to improve both the quality and efficiency of contract management.Compliance Operations and Internal Control
Key Performance
The Company has established an internal control and risk management system covering risk identification early warning
tracking and control based on the Audit Law the Basic Standards for Enterprise Internal Control and other laws and regula- In 2025 the Company conducted 5 legal training sessions.tions providing systematic guidance for risk management and ensuring that various risks are detectable and controllable. At
the same time the Company has formulated rules and regulations including the Measures for Internal Control Management
and the Internal Control Evaluation System to solidify the foundation for internal control operations and improve management
standards. The Company has established an Internal Control Management Group with the Chairman serving as the highest
leader and members strictly implement a recusal system when conducting internal control evaluation work within their own
departments.Internal Audit
[Case Study] Standardized Operations Self-InspectionThe Company’s internal audit work adheres to the twelve-character principle of “providing services preventing risks and improv-During the Reporting Period the Company organized its subsidiaries to conduct self-inspections on matters ing efficiency.” Based on the Internal Audit System the Financial Audit Management Regulations the Construction Project Audit
related to their production and operations focusing on areas including external guarantees external loans finan- Management Regulations and other policies the Company continuously strengthens the audit supervision function ensuring the
cial assistance related-party transactions fund occupation as well as the procedural compliance of major matters orderly and standardized operation of the Company’s economic activities. Through audit supervision the Company effectively
such as external investments material contracts and asset disposals. All subsidiaries completed the self-inspec- upholds the seriousness of national financial laws regulations and the Company’s internal rules promotes integrity construction
tions as required and submitted the Standardized Operations Self-Inspection Report with no material violations enhances the Company’s self-discipline and self-supervision capabilities and continuously improves management standards and
identified. economic performance. The Company has established the Audit and Supervision Department which independently conducts
internal audit activities under the leadership of the Audit Committee of the Board of Directors.The Company continuously carries out specialized compliance training striving to foster a company-wide awareness of Key Performance
compliance deeply integrating compliance requirements into daily conduct and promoting the true internalization and exter-
nalization of compliance principles.In 2025 the Company conducted 9 internal audits (including 5 exit audits) and its subsidiaries conducted 4 internal
audits.[Case Study] Specialized Training on Standardized Operations and Compliance Performance
On June 26 2025 the Company organized specialized
training on standardized operations and compliance
performance for listed companies covering regulatory
environment interpretation information disclosure
standards handling of common and special transac- Tax Management
tions and key points for the performance of duties by
directors supervisors and senior management.The Company strictly complies with tax laws and regulations ensuring that all tax filings and payments comply with applicable
legal requirements. The Company has formulated the Financial Management System and the Tax Management System to
Training Session standardize its tax management practices.
23 242025 Sustainability Report Henan Qingshuiyuan Technology Co. Ltd.
Measures for Preventing Tax Risks Investor Relations Management
1 File tax returns on time and pay taxes in full and promptly to avoid risks associated with late payment. The Company places great emphasis on public opinion management. Adhering to the principles of sincerity objectivity and fairness the Company has formulated and strictly implements the Public Opinion Management System establishing a comprehen-
sive public opinion management mechanism. Through a Public Opinion Processing Leading Group the Company responds quickly
2 Conduct regular tax compliance self-inspections to ensure tax activities comply with tax laws and regulations to public opinion and carries out emergency response measures creating a healthy and stable public opinion environment for and to legitimately benefit from tax incentives. high-quality corporate development.
3 Monitor tax policy developments enhance tax management capabilities and address potential tax audit risks. Communication and Exchanges
4 Engage external professional tax audit firms to conduct tax audits ensuring accurate tax payment. The Company actively builds bridges for investor communication organizes exchange activities promotes trust through transpar-ency builds consensus through communication continuously strengthens investor confidence attracts capital attention and
safeguards the Company’s steady development and innovation-driven transformation.
5 Maintain good communication with tax authorities proactively consult tax authorities on any tax-related uncer-tainties and stay informed of changes in tax policies and regulations.
[Case Study] Earnings Briefing
On May 20 2025 the Company conducted an earnings briefing through the “Investor Relations Interactive Platform” of
Panorama Network engaging in real-time online exchanges with investors. The Company’s management had candid
Deepening Investor Relations communications with investors on issues of concern including operating performance project progress and industry development demonstrating the Company’s strong emphasis on investor relations management and its proactive stance
on transparent communication.Management
Qingshuiyuan relies on the Investor Relations Management System and adheres to the fundamental principles of compliance
equality proactiveness and integrity establishing a transparent and smooth communication mechanism. Through timely and [Case Study] National Investor Protection Awareness Day
accurate information disclosure and regular two-way communication the Company enhances investors’ understanding and recog-
nition of the Company’s strategy and value continuously consolidates the foundation of mutual trust and effectively protects the
legitimate rights and interests of investors. In May 2025 the Company organized a series of investor communication and
awareness activities centered around the theme of the seventh National Investor
Protection Awareness Day. During the activities the Company organized internal
Information Disclosure training for management and key departments on typical investor protection cases policies and regulations. The Company also released special publicity materials to
expand the reach of its awareness campaign effectively enhancing investors’
The Company fulfills its information disclosure obligations in a timely manner in accordance with the law ensuring that disclosed understanding of the Company’s investor protection efforts.content is truthful accurate and complete with language that is concise clear and easy to understand. By formulating the Internal Training Session
Information Disclosure Management System the Company ensures that all investors have equal access to information regarding
the Company’s financial condition operating results and major matters. The Company publishes regular reports and interim
announcements through official channels and platforms designated by regulatory authorities continuously maintaining good
communication with investors and steadily enhancing market trust. The Company’s information disclosure work evaluation result
for 2024-2025 was Grade B.Key Performance
Key Performance In 2025 the Company maintained smooth investor communication channels. Throughout the year the Company held 2
investor exchange sessions and hosted 1 on-site research visit. Through the Interactive Easy platform the Company
In 2025 the Company disclosed 4 regular reports and 74 interim announcements to the public and received no responded to 65 investor inquiries and answered more than 200 investor hotline calls promptly addressing market
penalties for violations related to information disclosure. concerns.
25 262025 Sustainability Report Henan Qingshuiyuan Technology Co. Ltd.
Adhering to Business Ethics Complaints and Reporting
Adhering to the principles of “rigorous governance and timely handling” the Company has formulated the Provisions on Complaint
and Reporting Management to ensure that various violations of rules and disciplines can be promptly discovered and addressed.For individuals showing early signs of violating rules or disciplines the Company provides timely education and warnings guiding
them to strengthen their self-discipline and encouraging management at all levels to perform their duties lawfully diligently and
The Company places great emphasis on business ethics governance strictly complying with the Anti-Unfair Competition Law the with integrity. At the same time the Company effectively protects the legitimate rights and interests of whistleblowers strictly
Anti-Monopoly Law the Provisional Regulations on the Prohibition of Commercial Bribery and other relevant laws and regulations. prohibiting retaliation. Personnel accepting complaints must strictly maintain the confidentiality of whistleblowers’ names
The Company continuously improves its integrity management system resolutely prohibits illegal activities such as fraud money workplaces home addresses telephone numbers and other information.laundering commercial bribery and unfair competition safeguards the achievement of the Company’s operational objectives
supports the sustained stable and healthy development of the enterprise and effectively protects the legitimate rights and
interests of the Company and its shareholders.Complaint Channels
Complaint Hotline: 0391-6082008
Email: qsysjb@qywt.com.cn
Complaint Address: Group Audit and Supervision Department
Anti-Corruption and Bribery Management
To prevent fraud strengthen corporate governance and internal controls reduce operational risks and standardize professional
conduct the Company has formulated the Provisions on the Anti-Fraud and Reporting Mechanism clearly designating the Audit Anti-Unfair Competition Management
and Supervision Department as the standing body for anti-fraud work. This department is responsible for the organization imple-
mentation and independent evaluation of anti-fraud efforts assists in conducting anti-fraud awareness activities and reviews and
evaluates the establishment and implementation of anti-fraud control mechanisms. The Company places great importance on building and maintaining a fair and just market environment. It has drafted documents
including the Proposal for Law-Abiding and Compliant Operations and the Commitment Letter for Law-Abiding and Compliant
Operations pledging to actively participate in market competition in accordance with the principle of fairness resolutely opposing
Clean Practice in Employment the imposition of unreasonable restrictions on partners comprehensively eliminating all forms of customer discrimination and
committing to fostering a healthy and orderly market ecosystem. At the same time the Company actively conducts training on
To effectively protect the interests of the Company and minority shareholders the Company has formulated the Management anti-monopoly and fair competition integrating the concept of anti-unfair competition into the corporate culture. During the
Regulations on Clean Practice in Employment further strengthening integrity construction standardizing the professional conduct Reporting Period the Company was not involved in any lawsuits or material administrative penalties arising from unfair competi-
of key personnel enhancing employees’ self-discipline and awareness of laws and regulations effectively safeguarding the tion practices.Company’s reputation reducing operational risks and fostering a clean and efficient working environment. During the Reporting
Period the Company had no incidents of commercial bribery or corruption.Supervision of Anti-Corruption and Anti-Bribery Among Business Partners
To regulate the conduct of procurement and tendering personnel the Company has formulated the Code of Self-Discipline and
Integrity for Procurement Personnel ensuring that procurement activities are standardized efficient and clean achieving high
procurement quality and reasonable market prices preventing violations of laws and regulations at the source eliminating
commercial bribery and ensuring that tendering and procurement activities are conducted lawfully compliantly healthily and
orderly. At the same time the Company signs Integrity Cooperation Agreements with its partners clearly defining the integrity
responsibilities of the cooperating parties requiring them to strictly comply with integrity management regulations and encourag-
ing mutual supervision and restraint continuously solidifying the foundation of clean cooperation.Key Performance
In 2025 one director and one member of management each received training on anti-commercial bribery and anti-cor-
ruption with each training session lasting 4 hours.The signing rate for business ethics documents including the Clean Practice in Employment regulations was 100%.
27 28Green Development:
Refining Ecological and
Environmental Protection
Practices
This chapter covers material ESG issues.Addressing Climate Change
Environmental Compliance Management
Prudent Resource Management
Lean Material Management2025 Sustainability Report Henan Qingshuiyuan Technology Co. Ltd.Addressing Climate Change Risk/Op- Financial Impact Impact Likelihood of portunity Type Risk/Opportunity Description Impact Cycle Level Occurrence Response Measures
Continue to promote the
Digital transformation brings application of the Shuiyunzong
Digital new opportunities to the industrial internet platform
trans- water treatment industry Medium providing customers with
Against the backdrop of increasingly severe global climate change and countries actively advancing green and low-carbon transi- forma- helping customers save Revenue to Long value-added services such as tion High High
tions addressing climate change has become a core issue for corporate sustainable development. Qingshuiyuan deeply recogniz- energy reduce consumption
Growth Term dynamic monitoring and intelligent
oppor-
es the profound impact of climate change on the global economy society and its own operations. In response to the national and optimize operations
dosing
tunities through intelligent means. Increase the integration of artificial
“dual carbon” goals and the call for ecological civilization construction the Company integrates climate change mitigation into its Oppor- intelligence and water treatment
development strategy. It is committed to enhancing resource utilization efficiency reducing operational carbon footprints and tunity technologies
contributing to the synergistic development of society the environment and the enterprise through technological innovation and Focus on developing green water
management optimization. Market Growing market demand for treatment agent products such as
opportu- green and environmentally Medium low-phosphorus nitrogen-free and
nities for friendly water treatment Revenue to Long High High biodegradable onesgreen agents provides opportuni- Growth Term Expand the application scope of
product ties for upgrading the
Governance new and efficient water treatment demand Company’s product structure agents
Qingshuiyuan regards addressing climate change as a critical long-term sustainable development issue actively incorporating Note: We define short-term medium-term and long-term impact cycles as 1–3 years 3–5 years and over 5 years respectively;
climate-related risks and opportunities into its corporate governance system. The Company continuously identifies assesses and the levels of impact—high medium and low—are defined as severe moderate and slight impacts on the Company’s production
responds to physical and transition risks arising from climate change. The Company is dedicated to integrating low-carbon devel- and operations respectively; the likelihood of occurrence—high medium and low—are defined as highly likely moderately likely
opment concepts into its business operations and strategic planning. By improving water use efficiency optimizing production and unlikely to occur respectively. The same applies below.technologies and exploring low-carbon green products it steadily reduces its operational carbon emissions supports the achieve-
ment of national “dual carbon” goals and contributes to building a climate-resilient future.Climate Transition Plan
Strategy The Company actively responds to the national carbon peak and carbon neutrality strategy integrating low-carbon development into its long-term planning. By continuously advancing energy-saving and carbon reduction technological upgrades optimizing
production processes and promoting green operations the Company steadily improves energy utilization efficiency and reduces
carbon emission intensity. During the transition process the Company proactively addresses financial and technological challeng-
To effectively address the challenges posed by climate change and seize potential opportunities the Company has identified and es adopts strategies such as phased implementation and external cooperation steadily advances low-carbon goals and is
analyzed climate-related risks and opportunities based on its specific circumstances. Corresponding implementation measures committed to achieving synergistic development of economic and environmental benefits.have been formulated to continuously enhance its climate resilience.Risk/Op- Financial Impact Impact Likelihood of
portunity Type Risk/Opportunity Description Impact Cycle Level Occurrence Response Measures
Impact Risk and Opportunity Management
Extreme weather events such as
heavy rain floods and extreme Increased Strengthen the disaster resistance
production capacity of production facilities
Physical heat may damage production Medium
facilities disrupt supply chains costs to Short High Medium Develop emergency plans for Risk hinder employee commutes and extreme weather conduct regular The Company identifies assesses and manages various risks including climate-related ones through a dynamic risk assessment revenue Term
impact normal production and emergency drills to ensure disaster process. It regularly collects and analyzes internal and external information combining factors such as national industrial policies
operational activities. losses resilience market competition and resource supply to identify potential climate-related risks and opportunities. Develop corresponding
Closely monitor national industrial response strategies for identified significant risks.As the nation advances its "dual policy developments
carbon" goals and water pollution Continuously increase environmen-
Policy control stricter carbon emission
Increased Medium tal protection investments to ensure and standards water pollutant stable and compliant pollutant Risk Identification Risk Assessment Risk Response
discharge standards or
Risk Legal
operational to Long Medium High discharge
environmental inspection
Risks costs Termrequirements may be introduced Advance the research and
increasing the Company’s development of green water
By regularly collecting
industry policies market Use a combination of qualitative Develop differentiated response
compliance costs. treatment agents to reduce the and quantitative methods to measures for risks and opportu-
environmental impact of products dynamics and climate
change-related data and comprehensively assess nities of varying levels establish identified risks and opportuni- specialized task forces to
The accelerated low-carbon Adhere to technological and integrating them with the
Company’s actual production ties in terms of financial impact advance implementation clarify transition in downstream product innovation focusing on the
Market and operations comprehen- impact cycle impact level and responsible departments industries (such as chemicals Potential development of low-phosphorus
and likelihood of occurrence. implementation steps and steel and power) may impact the Medium biodegradable green water sively identify climate-related Determine the importance level timelines; establish emergency
Techno- demand structure for traditional
reduction
to Long Medium Medium treatment agents risks and opportunities across
in revenue multiple dimensions of risks prioritizing those with plans for major risks to ensure logical water treatment products and Term Expand applications in niche high impact and high likelihood rapid response and effective
services. Simultaneously capacity sources
Risks segments such as electronic
including policy technology
expansions by leading industry chemicals and new energy market and natural environ-
as well as high-potential handling when risks occur.ment. opportunities.players intensify competition. materials
31 322025 Sustainability Report Henan Qingshuiyuan Technology Co. Ltd.
Indicators and Targets
Indicators Unit 2025
Total greenhouse gas emissions tCO?e 44075.46
Total greenhouse gas emissions per million revenue tCO?e 50.73 Qingshuiyuan ISO 14001 Shuiyunzong ISO 14001 Qingyuan Water Treatment ISO 14001
Environmental Management System Environmental Management System Environmental Management
Direct Greenhouse Gas Emissions(Scope.1) tCO?e 97.30 Certification Certificate Certification Certificate System Certification Certificate
Indirect Greenhouse Gas Emissions (Scope.2) tCO?e 43978.16
Greenhouse Gas Emissions Management
To effectively manage greenhouse gas emissions the Company primarily adopts the following measures: First by optimizing
production processes and upgrading production equipment to improve energy utilization efficiency thereby reducing emissions
at the source; second through intelligent means such as the Shuiyunzong Industrial Internet Platform helping customers optimize
the operation of circulating water systems reducing energy losses in their industrial production processes and indirectly achieving
collaborative emission reductions across the entire value chain. Currently the Company is actively exploring and advancing the Tongsheng Environment ISO 14001 Qingshuiyuan Shanghai ISO 14001 Ande Technological ISO 14001
standardization process of greenhouse gas data accounting and management laying the foundation for future carbon inventory Environmental Management System Environmental Management System Environmental Management System
and carbon verification work. Certification Certificate Certification Certificate Certification Certificate
During the Reporting Period the Company did not experience any incidents of penalties imposed by environmental protection or
other relevant authorities due to violations of environmental management laws and regulations related to pollutant emissions
leaks or waste generation.Environmental Compliance
Management Environmental Protection Training and Communication
The Company attaches great importance to environmental protection training and publicity treating it as a key lever to enhance
the environmental awareness and compliance capabilities of all employees. During the Reporting Period the Company continuedQingshuiyuan consistently adheres to the environmental protection principle of “prevention first combining prevention with to conduct regular environmental protection training. Through specialized lectures and other formats employees received system-control” strictly complies with laws and regulations such as the Environmental Protection Law and the Law on the Prevention and atic training which effectively strengthened their sense of responsibility for environmental protection and their ability to operate
Control of Environmental Pollution by Solid Waste and ensures that all operations meet high-standard environmental requirements in compliance. This has driven the full integration of environmental requirements into all aspects of production and operations
through measures such as improving environmental management systems and strengthening training and education fully demon- laying a solid foundation for the Company’s environmental compliance management.strating the Company’s proactive actions and solid achievements in environmental responsibility.[Case Study] Specialized Training on Hazardous Waste Management Systems
Governance
On July 24 2025 the Company organized specialized
training on hazardous waste management systems. The
To strengthen the foundation of environmental compliance governance the Company has formulated and implemented systems training focused on systematically explaining relevant
including the Compilation of Environmental Protection Management Systems Environmental Protection Assessment and regulations and standards concerning hazardous waste
Reward/Penalty Management System and the Three Wastes Management System establishing an environmental responsibility systems and pollution prevention. Relevant personnel
system that covers the entire process and all employees. By clarifying management responsibilities at all levels and strengthening from various departments participated in the training.system implementation and assessment the Company ensures that production and operational activities are always under strict This training effectively enhanced employees’ under-
compliance control effectively enhancing environmental governance efficiency and providing a solid institutional guarantee for standing of standardized hazardous waste management
the Company’s sustainable development. further solidifying the foundation of the Company’s
environmental compliance management.As of the end of the Reporting Period the Company and its five subsidiaries have all obtained ISO 14001 Environmental Manage-
ment System certification.
33
342025 Sustainability Report Henan Qingshuiyuan Technology Co. Ltd.
Strategy Risk/Op- Type Risk/Opportunity Description Financial Impact Impact Likelihood of portunity Impact Cycle Level Occurrence Response Measures
Market Strengthen market research to Increased national support for
Expan- Revenue/- understand market demands.To proactively address risks and opportunities in the field of environmental management the Company adheres to a forward-look- the environmental protection Short- Expand production scale and
ing strategic mindset. It deeply integrates environmental compliance requirements into the entire process of business sion industry and growing demand in Profit High High
decision-making committed to promoting green and low-carbon transformation while safeguarding economic benefits thereby Oppor- the environmental protection
term increase production capacity.Growth Strengthen marketing and brand
achieving harmonious coexistence between corporate development and the Earth’s ecology. tunities
market.building.Actively monitor policy develop-
Risk/Op- Type Risk/Opportunity Description Financial Impact Impact Likelihood of Response Measures Oppor-
Obtain ments strengthen communication
portunity Impact Cycle Level Occurrence and cooperation with government tunity Continuous strengthening of govern- departments
environmental protection industry ment
Strengthen policy research closely Policy policies; the Company leveraging subsidies Increase investment in environmen-
monitor developments in Support its industry-leading advantages Medi- tal technology research and
Increased environmental policies and ensure and tax is expected to benefit from Medium High development to enhance the Policy Changes in environmental Oppor- um-term
policies (such as stricter emission costs company operations comply with environmental policy dividends
incentives environmental performance of
and Medi-
standards) may lead to increased reduced Medium Medium the latest regulations and
tunities gaining more market opportuni- to reduce products
Legal Expand environmental business operational costs for the um-term standards. ties and financial support.profits. operating
Risks Company. Improve the compliance system costs.areas participate in more
establish and sound environmental environmental projects and
management systems and improve market competitiveness
processes.Conduct thorough environmental
impact assessments before
introducing new technologies or
Improper application of new Increased Impact Risk and Opportunity Managementprocesses.technologies or processes may environ-
Tech- have negative environmental Strengthen the construction and mental Medi-
nical impacts such as exceeding Medium Medium operational management of
Risk emission standards for exhaust
fines um-term environmental protection facilities
gases or wastewater leading to increased to ensure pollutants are discharged
environmental penalties. up to standard.Environmental Risk Management Process
costs.Establish environmental monitoring
and emergency response The Company has established the Environmental Factor Identification Evaluation and Control Procedures creating a systematic and
Risk mechanisms. standardized environmental risk management process. This process covers four key stages: identification evaluation monitoring and
control of environmental risks ensuring effective management and mitigation of environmental risks.Strengthen environmental
management and safety production
management to ensure company Risk Identification Risk Assessment Risk Monitoring Risk Management
operations comply with environ-
Environmental issues or safety Medium mental and safety requirements.Reputa-
incidents may damage the Revenue Establish crisis response mecha- Comprehensively For identified environmental Continuously track Based on the results of risk tion Company’s reputation and affect to Long High MediumReduction nisms to promptly address and identify environ- factors a combination of the operational identification assessment and
Risk customer trust. Term handle environmental issues. mental factors in qualitative and quantitative status of risk points monitoring the Company
Actively participate in environmen- activities products scoring methods is used. Direct through various implements tiered and catego-
tal protection public welfare or services through qualitative judgments are made methods including rized risk control measures. For
activities to enhance social methods such as first followed by scoring daily inspections significant environmental factors
recognition. process flow evaluations for the remaining special checks key control measures are analysis on-site factors. The qualitative method online monitoring implemented including settinginspections and primarily employs the “Direct and third-party objectives and targets develop-Strengthen market research and questionnaires. Qualitative Judgment Method” testing. ing management plans improv-
flexibly adjust product structure and while the quantitative method ing operational control proce-market strategies. mainly uses the “Multi-Factor dures or systems conductingIntensified market competition Reduce product prices through Scoring Method” with five-di- emergency drills and enhancing
Market changes in customer demands
Medium
Revenue
and fluctuations in raw material to Short High High technological innovation and cost
mensional quantitative scoring. personnel training.Risk prices may lead to product price Reduction control to enhance competitiveness.Term
declines and reduced sales. Strengthen customer relationship
management continuously improve
customer satisfaction and loyalty to
ensure stable market share. Environmental Hazard Investigation and Monitoring
Increased Increase R&D investment and The Company has established a multi-level environmental hazard investigation mechanism implementing a regular inspection
Techno- The continuous emergence of introduce outstanding talents and system with team-level inspections per shift workshop manager inspections weekly and environmental department inspections
more efficient and environmen- production logical technological resources. monthly. Key areas such as leaks and spills from production equipment and pipelines implementation of environmental manage-
Oppor- Innova- tally friendly water treatment
efficiency
Long Strengthen cooperation with ment measures standardized management of hazardous waste and configuration of environmental facilities are thoroughly
technologies provides opportuni- reduced High Medium universities research institutions investigated.tunity tion ties for the Company’s -termcosts and etc. to jointly develop newOppor- technologies and products. In 2025 the Company conducted a total of 14 monthly and comprehensive inspections identifying and completing rectification technological upgrades and increased for 12 environmental hazards achieving a 100% rectification rate. For identified hazards the Company strictly adheres to the “Fourtunities innovation.profits. Promote and apply new technolo- No-Let-Go” principle formulates specialized rectification plans clarifies responsible departments and deadlines and organizes gies and products. follow-up inspections and acceptance to ensure closed-loop management from discovery to rectification effectively preventing
environmental risks.
35 362025 Sustainability Report Henan Qingshuiyuan Technology Co. Ltd.
[Case Study] Environmental Hazard Rectification in 2025 Environmental Emergency Plan and Drills
The Company strictly complies with laws and regulations such as the Emergency Response Law and the Management Measures
During the Reporting Period the Company carried out systematic rectification work for hazard points identified during
routine environmental inspections. For issues such as leaks at the soft connection flange of the Y metering tank on the for Emergency Plan for Emergencies. It has formulated the Emergency Plan for Sudden Environmental Events the Management
third floor of Jiacha leakage risks due to single valves on the gas phase pipe drain valves of the solid mother liquor kettle System for Reporting Information on Sudden Environmental Events and the Management System for Environmental Emergency
unsealed windows on the west side of the liquid chlorine storage area and the absence of wooden drainage plugs in pump
containment dikes in the raw material area the Company implemented targeted rectification measures including replac- Plans clearly defining the emergency response procedures and handling processes for sudden environmental events to ensure
ing PP elbows adding double valves closing windows and replacing drainage plugs. Through these rectifications the clear responsibilities and orderly response. Simultaneously the Company conducts emergency plan training promotion and
Company promptly eliminated environmental risks in production processes effectively preventing potential environmental practical drills to continuously test the feasibility and effectiveness of the plans. It conducts retrospective evaluations at least every
incidents such as material leaks or pollution spills due to equipment defects or management oversights further enhancing
the inherent environmental safety level of production facilities. three years timely optimizes emergency mechanisms and continuously enhances environmental emergency response and risk
control capabilities.Before Remediation After Remediation Emergency Organization System Diagram
Emergency Rescue Command
The pp elbow connected to the soft connection at the flange of the y metering tank v1006 on the third Emergen- Emergen- Emergen- Volunteer Environ- Logistics Site Environmen-
floor of jiacha was replaced due to leaks. cy cy Rescue cy Fire mental Support Secu- tal Protec-Command Team Medical Brigade Monitor- Team rity tion Facilities
Center Team ing Team Team Management
Office Team
Based on the degree of harm to the environment and people caused by sudden environmental events the Company classifies
emergency response levels into Level 1 Level 2 and Level 3.Replace the drain valve at the U-bend of the gas phase pipe of the solid mother liquor kettle with a Emergency resources required for mobilization
double valve.Response Level Affected Scope Emergency resources required for mobilization
Level 1 Response Factory Area and Company emergency agencies government departments fire
(Social Level) Surroundings brigade hospitals neighboring friendly units external experts etc.Level 2 Response Workshop and Company emergency agencies nearby hospitals other neighbor-
(Enterprise Level) Factory Area ing friendly units etc.
Level 3 Response Local work Company emergency agencies
(Workshop Level) or positions
Adjust the unsealed condition of the windows on the west side of the liquid chlorine storage.For different types of environmental accidents the Company initiates corresponding emergency procedures according to the
graded response requirements and carries out emergency response work.Change the anti-spill containment for pumps in the raw material area to wooden drain plugs.
37 382025 Sustainability Report Henan Qingshuiyuan Technology Co. Ltd.
Emergency Response Procedure for Sudden Environmental Events [Case Study] Comprehensive Emergency Drill for Liquid Chlorine Leakage Accident
Accident Occurs On June 27 2025 the Company organized a comprehensive emergency drill for liquid chlorine leakage simulating a sudden
environmental event scenario where a leak occurred at the bottom discharge flange of Liquid Chlorine Tank B leading to
On-site personnel report personnel poisoning. The drill covered the entire process including hazard discovery initial response escalation of the
incident emergency response and on-site cleanup. Each emergency team had clear division of labor coordinated effective-
Workshop director and Emergency Command Center Office take appropriate measures to control accident escalation ly and successfully completed tasks such as personnel rescue leak plugging on-site decontamination and environmental
and implement emergency isolation of the surrounding area monitoring. This drill effectively tested the feasibility and effectiveness of the emergency plan honed the practical capabili-
ties of the emergency rescue team and enhanced employees’ awareness and proficiency in emergency response during
unforeseen events. In response to issues identified during the drill such as insufficient proficiency in operating fire hoses
the Company promptly conducted specialized training and implemented corrective measures achieving continuous improve-
Emergency Command Center Office reports to the Emergency Rescue Command Center ment and enhancement of emergency capabilities.Emergency Rescue Command Center issues emergency response directives
Level I Response Level II Response Level III Response
All emergency teams take
their positions; report to All emergency teams take All emergency teams take
environmental protection their positions their positions
authorities
Indicators and Targets
Determine protection Determine protection Determine protection
distance and accident distance and accident distance and accident To continuously improve environmental performance the Company has set clear annual environmental protection goals.control plan control plan control plan Based on these goals specific quantifiable management indicators have been established for various pollutants and resource
consumption to guide daily environmental management and clean production efforts. The main environmental protection
goals for 2025 include:
Carry out disposal
rescue evacuation and Carry out disposal Carry out disposal
monitoring rescue evacuation etc. rescue evacuation etc. No occurrence of general or above-level environmental emergencies;
Effective operation of the environmental management system with continuous improvement and no serious or
On-site protection and Issue emergency Issue emergency recurring non-conformities;
decontamination termination order termination order
Effective control of significant environmental factors with a 100% environmental hazard rectification rate;
Issue emergency Accident investigation and Accident investigation and
termination order post-incident handling post-incident handling Solid waste and hazardous waste disposal in compliance with national requirements;
Follow-up monitoring 100% implementation rate of environmental monitoring plans;
personnel withdrawal
100% training rate for on-duty employees in environmental protection education;
Accident investigation and
post-incident handling 100% compliance rate for exhaust gas and wastewater discharge standards;
Social-level accident Company-level accident Workshop-level accident 100% compliance rate for production wastewater initial rainwater and accident water discharge standards.
39 402025 Sustainability Report Henan Qingshuiyuan Technology Co. Ltd.
Performance Table
Pollutant Discharge
Key Indicators Unit 2025
Environmental Protection Investment RMB10000 100.26
Pollution Discharge Status
Environmental Protection Training
As a key pollutant discharging entity the Company strictly complies with the stipulations of the pollutant discharge permit to
Key Indicators Unit 2025 control the total pollutant emissions. The Company’s primary gaseous pollutants are volatile organic compounds (VOCs) with an annual permitted total emission of 7.6893 tons. Other characteristic gaseous pollutants include formaldehyde hydrogen chloride
chlorine methanol chlorobenzene compounds non-methane total hydrocarbons (NMTHC) ammonia odor concentration and
Number of environmental protection training sessions Times 27 hydrogen sulfide. The primary wastewater pollutants are chemical oxygen demand (COD) and ammonia nitrogen. Other character-
istic wastewater pollutants include pH suspended solids (SS) five-day biochemical oxygen demand (BOD5) total phosphorus
Number of participants in environmental protection training Person-times 754 volatile phenols aniline compounds total organic carbon (TOC) total nitrogen petroleum hydrocarbons sulfides etc. According
Duration of environmental protection training Hours 54 to the technical specifications of the pollutant discharge permit the wastewater discharge outlet is designated as a general discharge outlet and does not have a permitted emission limit.During the Reporting Period the Company commissioned third-party agencies to conduct self-monitoring of waste gas wastewa-
Waste Gas Emission ter noise soil and groundwater and obtained the Environmental Monitoring Report Analysis Summary Report for the Leak
Detection and Repair (LDAR) System Construction Project and the Self-Monitoring Report on Soil and Groundwater Environment.The monitoring results indicate that all pollutants met the discharge standards.Key Indicators Unit 2025
Waste Gas Emission Volume Tons 1.3
Volatile Organic Compounds (VOC) Tons 1.3 Pollutant Management
Wastewater Discharge The Company prioritizes compliant pollutant management having established and implemented the Three Wastes Management
System to standardize the full-process management of waste gas wastewater and solid waste generated during production and
operational activities. By equipping and continuously operating various environmental protection treatment facilities and conduct-
Key Indicators Unit 2025 ing regular pollutant emission monitoring the Company ensures stable and compliant discharge of all pollutants and continuously
advances transparent environmental performance management and compliance improvement.Wastewater discharge volume Tons 61979.57
Chemical Oxygen Demand (COD) Tons 0.669
Ammonia Nitrogen (NH3-N) Tons 0.026 “Three Wastes” Management
Total phosphorus (calculated as P) Tons 0.01
Solid Waste Emissions Process tail gas generated from production and R&D activities is subject to strict control requiring environmental protection treatment facilities to operate around the clock. Key tail gas emission
Waste Gas points such as those from the HEDP unit are equipped with treatment facilities like two-stage
water spray absorption and detailed operational records are maintained to standardize chemical
Key Indicators Unit 2025 Management dosing. Regular monitoring of fugitive and organized emissions at the plant boundary is conducted
covering characteristic pollutants such as hydrogen chloride NMTHC arsenic and lead to ensure
Amount of hazardous waste generated Tons 96.514 stable and compliant waste gas emissions.Hazardous Waste Disposal Volume Tons 96.514
Waste Engine Oil (HW08 Category Substances) Tons 0.555 Wastewater is collected and treated by category: production wastewater equipment maintenance wastewater and the initial 30-minute rainwater runoff are directed to the wastewater treatment
station; domestic sewage is treated to meet standards before discharge. Chemical waste liquids
Waste Activated Carbon (HW37 Category Substances) Tons 93.35 Wastewater from R&D and laboratory processes are collected separately by category; waste acid and alkali
Management liquids among others are discharged into the chemical wastewater sump. Regular monitoring is
Phosphorus Slag (HW37 Category Substances) Tons 1.693 conducted on sewage discharge outlets regulating tanks and clear water tanks with indicators including COD ammonia nitrogen total phosphorus heavy metals and characteristic pollutants
such as acrylonitrile and adsorbable organic halides to closely monitor water quality.Sludge (HW37 Category Substances) Tons 0.466
Waste Filter Cloth (HW37 Category Substances) Tons 0.2
Solid waste is strictly classified according to the National Hazardous Waste List. The temporary
Online Monitoring Waste Liquid (HW49 Category Substances) Tons 0.25 storage facility on-site is constructed in compliance with the Pollution Control Standards for
Management of Hazardous Waste Storage equipped with leak prevention odor emission control and exhaust gas
Other Pollutants recovery facilities to ensure environmental safety during storage. The safe disposal rate for both
general industrial solid waste and hazardous waste has reached 100%. In addition regular monitor-
ing of noise at the factory boundary is conducted to ensure compliance with the Environmental
41 422025 Sustainability Report Henan Qingshuiyuan Technology Co. Ltd.
Conduct technical environmental economic and comprehensive evaluations of implemented clean production solutions;
Waste Disposal Perform technical assessments of clean production solutions during the clean production audit process to provide feasibility
basis for company decision-making;
Establish a clean production information system to provide the entire plant with information on clean production technolo-
gies processes equipment and products;
Waste Management System and Regulations Use non-toxic or low-toxicity low-hazard raw materials to replace highly toxic and severely hazardous raw materials;
Adopt processes and equipment with high resource utilization rates and low pollutant generation to replace those with low
The Company has established a comprehensive waste management system particularly for hazardous waste. A series of regula- resource utilization rates and high pollutant generation;
tions including the Hazardous Waste Pollution Prevention and Control Responsibility System and the Hazardous Waste Manage- Comprehensively utilize or recycle waste wastewater and waste heat etc. generated during the production process.ment System have been formulated to standardize the entire lifecycle management of hazardous waste from generation collec-
tion and storage to transfer and disposal. Adopt pollution prevention and control technologies that can meet the national or local pollutant emission standards and total pollutant discharge control targets.Organizational Chart for Hazardous Waste Management Green Transportation
The Company actively takes measures to promote green transportation. By integrating transportation resources and optimizing
Principal Responsible Person transportation routes transportation efficiency is improved. For transportation within a certain range priority is given to new
energy vehicles. For heavy-duty transportation tasks vehicles meeting China VI or higher emission standards are preferred to
reduce carbon emissions and pollutant emissions during transportation. In daily operations the Company strictly adheres to emer-
Deputy General Manager of Production Deputy General Manager of Materials gency control requirements for heavily polluted weather suspends transportation by China V and lower-standard vehicles during
warning periods and minimizes road transport volume as much as possible to reduce the impact of regional vehicle emissions.Head of Environ- Head of Head of Head of
mental Protection Production Equipment Materials Green Office Office computers printers and other equipment are turned off promptly
Department Department Department Department The Company actively Electricity after work eliminating standby power consumption.advocates the concept of Conservation Make rational use of natural light to reduce unnecessary lighting.green office integrating
energy conservation and
Environmental Director of Director of Director of Director of consumption reduction into Water Strengthen daily inspections to prevent leaks and spills; turn off water Warehouse
Protection Packaging PBTC PCL3 Work- Maintenance the details of daily opera- Conservation fixtures immediately after use.Supervisor
Officer Workshop Workshop shop Workshop tions. Through institutional-ized management and full
participation it continuous- Paper Promote double-sided printing; use recycled paper or electronic circulation
ly reduces resource Conservation for informal documents to reduce paper consumption.consumption in office
processes fostering a
low-carbon and environ- Office Standardize the item requisition process; implement an old-for-new princi-
mentally friendly work Supplies ple for non-planned labor protection supplies to reduce waste.Waste Management Measures atmosphere.During the Reporting Period the Company strictly implemented the hazardous waste management plan with all hazardous waste
being disposed of by qualified units. In 2025 the hazardous waste generated by the Company mainly included harmful compo-
nents such as phosphorus organic phosphorus compounds petroleum hydrocarbons and polycyclic aromatic hydrocarbons from Green Products and Services
waste like phosphorus slag spent activated carbon waste filter cloth sludge and waste oil. All transfers of hazardous waste were
recorded and processed through the National Hazardous Waste Information Management System using electronic transfer As a leading enterprise in the manufacturing of specialized chemical materials for environmental pollution treatment the Company
manifests and external units were entrusted for compliant disposal. is consistently committed to the innovation and development of green products and services. By developing efficient and environ-
mentally friendly water treatment agent products the Company provides customers with green solutions such as industrial water
treatment and circulating water reuse assisting downstream enterprises in achieving water resource recycling and compliant
pollutant discharge. The Company’s products are widely used in areas such as scale and corrosion inhibition sterilization and
preservation and metal ion chelation. While meeting customer needs they effectively reduce the environmental burden on
end-users collaboratively addressing challenges in water resource protection and environmental management and continuously
Green Operations contributing professional value to society’s green development.Environmentally Friendly Green Chelating Agent
Water Treatment Agents Products
By studying the impact of catalyst microstructure on The Company has developed two novel green chelating agents
and their synthesis processes. The products feature environ-
Clean Production reaction mechanisms the Company has successfully developed a novel corrosion inhibitor based on mentally friendly characteristics such as easy biodegradability
low-cost phosphorus-free bio-based raw materials and non-toxicity. The new process produces fewer by-prod-
along with a green low-energy consumption synthesis ucts has a simple workflow and a short production cycle
To further advance clean production the Company formulated and implemented the Clean Production Management System process. This achievement represents a key technologi- meeting global green regulatory requirements. This product
establishing a clean production office within the production department to systematically promote the effective implementation cal breakthrough in the field of phosphorus-free water can efficiently replace phosphates in detergents offering
of various clean production measures. Additionally the effectiveness of clean production was incorporated into the performance treatment corrosion inhibitors providing an innovative excellent chelating performance and rapid action on both inorganic and organic stains thereby strongly advancing the
appraisal system forming an institutionalized and normalized management mechanism. pathway to promote the industry’s development towards environmental protection and high efficiency. greening process of the water treatment industry.
43 442025 Sustainability Report Henan Qingshuiyuan Technology Co. Ltd.
Ecosystem and Biodiversity Protection Strategy
The Company systematically identifies and assesses risks and opportunities related to resource utilization efficiency formulating
As a company deeply rooted in water treatment and ecological environmental protection Qingshuiyuan integrates biodiversity
protection into all aspects of its business development and daily operations. Leveraging its core business layout in industrial water specialized management strategies to continuously enhance comprehensive resource utilization efficiency thereby supporting the
treatment and ecological restoration of river management the Company safeguards ecological foundations and maintains ecosys- steady advancement of its green low-carbon transformation and high-quality efficient development.tem balance through technological innovation and engineering practices. The Company is deeply engaged in the field of water
environment governance and has established a comprehensive technical system for river and black-odorous water body manage-
ment. Starting with external source pollution control and interception and internal source dredging as prerequisites it carries out Risk/Op- Financial Impact Impact Likelihood of
water environment governance to reduce the impact of water pollution on aquatic habitats from the source. Through water portunity Type Risk/Opportunity Description Impact Cycle Level Occurrence Response Measures
ecological restoration it reconstructs the aquatic ecological chain contributing to the improvement of the water environment and
the stability of aquatic biological communities.Establish facilities such as
Simultaneously the Company strictly adheres to environmental compliance management requirements following ecological water storage tanks and
protection regulations throughout the entire production and operation process. The entire lifecycle of its products has no impact rainwater collection systems
on ecosystems species and their habitats or biological genetic resources. Furthermore by continuously optimizing environmental to cope with unexpected
measures in production and operations implementing projects such as condensate water recovery and by-product deep process- water supply interruptions
ing for energy conservation and waste reduction the Company reduces its impact on the surrounding ecological environment at and reasonably adjust
the operational level earnestly fulfilling its responsibilities in the field of biodiversity protection as an environmental enterprise. In production processes during
the future the Company will continue to be guided by the concept of green development deeply integrating biodiversity protec- outages.tion requirements into the research development and practices of businesses such as ecological restoration and water treatment. In the Company’s produc- Direct
It will empower ecological protection with technology continuously contributing to maintaining ecosystem integrity and promot- tion process key process economic Develop detailed emergency
ing harmonious coexistence between humans and nature. facilities rely on stable losses plans for water and power
electricity and water caused by outages clarifying the
produc- emergency organizational
Physical supply. Power or water Medium
Risk outages can halt facility
tion to Short High High structure personnel responsi-
operations leading to interrup- Term bilities and emergency
production line shutdowns tions and response procedures.potential impacts on equip- Ensure power supply stability
product quality and ment by relying on dual power
equipment damage. damage. sources from the Qingyuan
and Zhidu substations. Equip
key process facilities with
backup power sources such
Prudent Resource Management as UPS and diesel generators to ensure quick deployment during power outages
maintaining continuous
production line operation.Qingshuiyuan adheres to laws and regulations such as the Water Law and the Energy Conservation Law anchoring its direction
towards green energy development. Focusing on continuously improving its internal energy management system as a core
initiative the Company steadily advances energy conservation consumption reduction and low-carbon development throughout Regarding energy manage-
its production and operation processes. ment the Company may Strengthen technological
Risk face challenges such as research development and immature application of innovation capabilities to
new energy technologies enhance the core competi-
(e.g. solar wind) bottle- This may tiveness of proprietary
necks in energy storage lead to technologies.Governance technology and difficulties invest-in integrating with smart ment Introduce external technical
Techni- grids. In terms of water failure Medium cooperation to learn from
cal Risk resource management the and to Long High Medium and absorb advanced
Company may encounter increased Term technologies and experienc-
The Company has established Energy and Energy Measurement Management Organization technical challenges such opera- es.Resource Management Regulations Energy as high costs of membrane tional Establish a technology risk
Measurement Management Regulations and technology low treatment costs. assessment and early
Water Usage Management Regulations. It has Deputy General Manager of Production efficiency failure to meet warning mechanism to built a full-process management system covering water quality standards promptly identify and
the measurement monitoring conservation and instability of intelligent address potential technical
utilization consumption control supervision monitoring and control risks.assessment and accountability for energy and systems.water resources. This system clarifies institution- Production Department Equipment Department
al responsibilities daily supervision record
management energy and water-saving Enhance market research
measures and reward/punishment mechanisms.Regular professional training on energy measure- Trichlo- HEDP Workshop PBTC Packag- Energy Electrical Mainte-
and analysis to accurately
ment is conducted covering basic knowledge rophos- (Hydroxye- Work- ing Measure- and nance
grasp market changes and
professional skills and management capabilities phane thylidene shop Work- ment Instru- Work-
trends.Market risks primarily stem
to promote efficient resource utilization energy Diphosphonic shop Adminis- mentation shop
Resulting
from price fluctuations and Establish flexible pricing and
Acid) trator Workshop Market in rising Medium conservation cost reduction and efficiency demand changes in the marketing strategies to costs and to Short Medium High
enhancement ensuring sustainable business Risk energy and water resource adapt to changes in market declining Term
operations. markets. demand.revenue Diversify product lines and
service types to improve the
The Company’s Equipment Department is responsible for daily water usage management and supervision completing daily water Company’s market adapt-
data recording and log maintenance. Each department manages and maintains the water facilities in its respective area promptly ability.identifying potential issues and continuously improving water resource utilization efficiency.
45 462025 Sustainability Report Henan Qingshuiyuan Technology Co. Ltd.
Risk/Op-
portunity Type Risk/Opportunity Description
Financial Impact Impact Likelihood of
Impact Cycle Level Occurrence Response Measures Indicators and Targets
In the energy sector the
rapid development of clean
energy technologies (such
as solar and wind power) Water Resource Management Goals
and smart grid technolo-
gies provides opportunities Conduct independent or
for the Company to reduce collaborative research and
energy consumption and development focusing on By leveraging advanced water-saving technologies optimizing production processes and upgrading
Techno- improve utilization clean energy and water high-water-consumption equipment we continuously enhance water resource utilization efficiency and
logical efficiency. In the water recycling technologies to
Innova- resources sector advance- Growth gradually replace traditional
the recycling of production wastewater.tion ments in water recycling in energy sources and
Oppor- technologies (such as revenue
Long-
term High High inefficient water usage
tunities membrane technology and and measures. We scientifically formulate annual water usage control plans establish a full-process water ledger
advanced oxidation profit. Establish intelligent energy management system and implement regular dynamic monitoring and refined control of water usage
processes) and efficient and water resource across the entire plant area.water-saving technologies management systems to
Oppor- (such as smart irrigation achieve refined control and
tunity systems) create possibili- management.ties for enhancing water Through the stable operation of supporting water treatment facilities such as circulating cooling towers
resource utilization we deepen the tiered recycling of water resources effectively reducing reliance on fresh water resources
efficiency and reducing in production operations.consumption.With increasing global
emphasis on environmental Strengthen market research
We regularly conduct water-saving themed promotions and specialized skill training to continuously
protection and sustainable and analysis to accurately
strengthen awareness of water conservation and consumption reduction among all employees fostering
Market development more grasp market demand and an enterprise culture of water conservation with full participation and practice.Expan- enterprises and individuals Increase development trends.sion are beginning to focus on sales Expand new products and
Oppor- the conservation and revenue Medium services to meet the The above comprehensive control measures aim to systematically reduce water resource consumption and
tunities efficient utilization of and to Long Medium Highenhance Term differentiated needs of water pollutant emissions in production operations ensuring the full implementation of the Company’s energy and water resourc- market various customers. water resource management goals.es providing opportunities
for the Company to expand share. Enhance brand building and
its market share and market promotion to
explore new business improve the Company’s
areas. visibility and reputation.Impact Risk and Opportunity Management Energy Consumption Situation
Key Indicators Unit 2025
To ensure the sustainable use of resources the Company has established standardized and systematic management processes to
comprehensively and effectively manage resource risks. Purchased Steam Million Kilojoules 325834.03
Photovoltaic Electricity Consumption Ten Thousand Kilowatt-hours 100.5196
Risk Identification Risk Assessment Risk Monitoring Risk Management
Total Purchased Electricity Ten Thousand Kilowatt-hours 15436.20
Natural Gas Ten Thousand Cubic Meters 4.5
The Company addresses Based on risk identifica- The Company Based on the results of
both macro and micro tion the Company establishes an energy resource risk assessment Total Purchased Heat Gigajoule 325834.03
levels focusing on employs a combination measurement system the Company has
external factors such as of quantitative and regularly conducting formulated a series of Comprehensive Energy Consumption Tons of Standard Coal Equivalent 13197.96
climate change policy qualitative methods to statistical analysis of specific risk management
and regulatory changes assess identified energy measurement measures including the Comprehensive Energy Consumption Density Ton of Standard Coal/RMB Million Revenue 15.19
and uneven water resource risks. By and monitoring data to transformation and
resource distribution as establishing a risk ensure accuracy and optimization of produc-
well as internal factors assessment model we reliability. tion processes strength-
like water usage energy comprehensively ening water quality
consumption and consider factors such as monitoring and energy Water Usage Status
resource utilization the likelihood of risk management to
efficiency in the produc- occurrence impact level effectively prevent risks.tion process. Through and duration to rank and Simultaneously we have Key Indicators Unit 2025
regular research data classify risks clarifying established an emergen-
collection and analysis the priorities and focus cy response mechanism
we comprehensively areas for resource and developed detailed Total Water Consumption Ten Thousand Cubic Meters 28.80
identify potential risks in management. contingency plans to
the resource utilization address sudden resource Water Consumption Intensity 10000 Cubic Meters/ RMB Million 0.033
process. shortage incidents. Total Water Cycle and Reuse Tons 138767.45
47 482025 Sustainability Report Henan Qingshuiyuan Technology Co. Ltd.
Energy Saving and Emission Reduction Measures Water Resource Management Measures
During the Reporting Period the Company established a water resource recycling system across multiple links and scenarios
implementing various measures to enhance the efficiency of water reuse. Specific measures are as follows:
To further implement the concept of green development and continuously advance energy conservation emission reduction cost Establishing a circulating water tower to recycle water resources
reduction and efficiency improvement the Company will carry out comprehensive electrification transformation in 2025 across
all production and operation processes. This will focus on three core areas: kitchen energy commuting vehicles and production
equipment. By replacing traditional high-energy-consuming equipment such as fuel and gas-powered devices the Company aims
to optimize its energy usage structure. This initiative will not only effectively reduce environmental pollution and carbon emissions Using circulating water from the recycling pool to regularly irrigate green belts and improve water quality
but also significantly lower operational costs achieving simultaneous improvements in both ecological and economic benefits.Condensed steam from reaction kettles in various workshops is channeled into the circulating water system for reuse
[Case Study] Promotion of Electric Forklifts The closed-loop hot water from the initial cooler of the chlorination production line is channeled into the underfloor
heating system for cooling and heating in the office building.In terms of production equipment the Company’s
production department has fully replaced the
original diesel forklifts with electric forklifts.Electric forklifts are powered by electricity
producing zero exhaust emissions and operating
with low noise aligning with the requirements for Lean Material Management
clean production and green manufacturing in the
workshop.Qingshuiyuan deeply recognizes the core value of efficient material utilization in resource conservation and ecological environ-
Electric Forklifts Used by the Company mental protection. It strictly standardizes the entire process material management system continuously improves the comprehen-
sive utilization efficiency of materials and steadily promotes the transformation of the enterprise toward a green low-carbon
circular economy development model.[Case Study] Promotion of Hybrid Electric Vehicles Material Management System
For official commuting purposes the Company has replaced traditional fuel The Company has established systems such as the Warehouse Management System clarifying the entire process of material
vehicles with hybrid electric vehicles. Hybrid electric vehicles combine the storage inbound and outbound operations inspection inventory counting safety and hygiene. It clearly defines the responsibili-
advantages of both fuel and electric power significantly reducing fuel ties and operational standards of various departments and ensures standardized and efficient management of warehouse materi-
consumption and exhaust emissions during operation. Energy costs are als through the control requirement of consistency between accounts physical goods and records. In addition as of the end of
approximately 30%-40% lower compared to traditional fuel vehicles effective- the Reporting Period the Company has obtained the Intermediate Bulk Container Certificate certifying that the relevant compos-
ly reducing the Company’s carbon footprint. ite intermediate bulk containers comply with the requirements of Chapter 6.5 of the International Maritime Dangerous Goods
Hybrid Electric Vehicles Used by Code providing compliance and safety assurance for maritime transportation.the Company
[Case Study] Promotion of Electric Stoves
In terms of logistics and catering support the Company has fully replaced
traditional gas stoves with electric stoves. After switching to electric stoves
open flames and exhaust emissions have been eliminated significantly reduc-
ing kitchen fumes and harmful gas emissions thereby optimizing the working
environment in the kitchen.Electric Stoves Used by
the Company
Intermediate Bulk Container Certificate
49 502025 Sustainability Report Henan Qingshuiyuan Technology Co. Ltd.
Storage Management Hazardous Chemical Management
Through full-process control regular supervision and a closed-loop responsibility system the Company ensures the effective Based on systems such as the Laboratory Chemical Management Chemical Reagent Management and Safe Storage and Usage
implementation of both warehouse management and tax management systems providing solid support for compliant operations. Regulations and Security System for Access to Hazardous Waste Warehouses the Company implements standardized manage-
ment and monitoring of the entire process of hazardous chemicals procurement storage usage and recycling effectively reduc-
ing storage and usage safety risks in production and operational activities.Storage Inbound Outbound Hazardous Chemical Procurement Management Hazardous Chemicals Storage Management
Strictly adhere to the Warehouse management Implement the principlesprinciples of “reasonable and personnel daily statistics of “first-in-first-out and Strictly screen suppliers with hazardous chemical Hazardous chemicals shall be stored insafe placement convenient on inventory and replacing the old with the production or sales qualifications. Procurement accordance with the principles of “classifica-inspection and formulate procurement new.” Designated and storage quantities are jointly verified by the tion categorization dedicated cabinets andfirst-in-first-out” storing plans. Inbound operations personnel from the purchaser and the responsible person and dedicated storage” with clear hazardous
materials in designated areas are processed with production department overstocking is strictly prohibited. chemical lists posted. They shall be managed
based on their attributes. documentation rejecting retrieve materials with by professionally trained personnel under a
Standardize material labeling substandard or incom- documentation verify dual-person dual-lock control system.to ensure consistency plete materials. Procure- information and
between accounts records ment orders are verified complete outbound
and physical goods regulate against physical goods operations. Administrators
handling operations conduct and special materials issue documents and Hazardous Chemicals Usage Management Hazardous Chemicals Recovery Management
regular inventory checks and require inspection and complete registration and
promptly address errors or documentation by accounting entries.omissions. relevant departments.Develop a usage plan specifying storage Implement unified recovery for hazardous
duration location and quantity implementing a chemicals and their post-use packaging
‘use-as-needed’ requisition system. Operators residual liquids cleaning wastewater etc.must wear specialized protective equipment Designated personnel shall be responsible for
before commencing work. recovery and treatment maintaining compre-
hensive records of the entire process.Key Indicators Unit 2025
Total Usage of Packaging Materials Items 913077
Paper-based packaging materials (woven bags inner bags etc.) Items 462369
Hazardous Chemicals Storage Management Safety Notice Signage
Plastic-based packaging materials (packaging barrels ton barrels) Items 440363
Wood-based packaging materials (wooden pallets) Pallets 10345
Consumption of Toxic and Hazardous Materials Tons 120530.07
51 52Innovation-Driven
Leadership Co-cre-
ating Industrial
Value
This chapter covers material ESG issues.Igniting Innovation-Driven Development
Product and Service Safety and Quality
Data Security and Customer Privacy Protection
Responsible Supply Chain2025 Sustainability Report Henan Qingshuiyuan Technology Co. Ltd.Igniting Innovation-Driven Strategy
Development The Company deeply implements the innovation-driven development strategy comprehensively assesses potential risks and market development opportunities in R&D and formulates targeted measures around breakthroughs in core technology bottlenecks and
Qingshuiyuan positions scientific research and innovation as its core engine for growth continuously strengthening the professional addressing actual market needs. It strives to accelerate technological iteration and upgrades as well as the transformation and imple-
development of its R&D team. By optimizing R&D processes and improving collaborative mechanisms the Company enhances mentation of R&D achievements continuously consolidating its leading edge in product technology and steadily enhancing its core
research efficiency and the quality of outcomes. It also focuses on the transformation and industrial application of scientific and market competitiveness.technological achievements injecting momentum into the sustainable Shuiyunzong and healthy development of the industry.Risk/Op- Type Risk/Opportunity Financial Impact Impact Likelihood of portunity Description Impact Cycle Level Occurrence Response Measures
Continuously enhance the Company’s
Governance technological R&D capabilities and consolidate its leading advantage in new
technology fields. This includes increasing
R&D funding attracting and cultivating
The Company strictly adheres to laws and regulations such as the Science and Technology Progress Law and has established a high-caliber R&D talent and building an
efficient R&D management system.regulatory system including the R&D Management System and the Research and Development Management System. This solidifies Decline in
the foundation of R&D management ensures the soundness and completeness of the R&D system and clarifies that the R&D Center Insufficient R&D investment or sales Actively expand cooperation channels with domestic and international research
oversees core tasks such as company-wide R&D project management and R&D archives management. Additionally the Company has Tech-
process defects may affect compensa-
product quality and production tion Medium Medium institutions universities and industry nical to Long Medium
formulated incentive systems like the Innovation Technology Reward Measures to fully mobilize employee’s enthusiasm and initiative safety; losses due to expenses peers. Utilize models such as technology Risk slower-than-expected technolog- increased Term introduction and joint R&D to reduce the
in conducting scientific research development and technological innovation. This drives continuous advancement in enterprise ical innovation iteration. operational difficulty and uncertainty of technology
technological innovation accelerates the transformation implementation and application of scientific and technological achieve- costs. development.ments and empowers scientific enterprise management through technological innovation steadily enhancing the Company’s Conduct comprehensive technical
feasibility studies before initiating
technological capabilities. This further strengthens the Company’s operational efficiency and core competitiveness. technological innovation projects to ensure
the practicality of the technical path and
The Company’s subsidiaries Anda TechnologicalShuiyunzong and Qingshuiyuan shanghai have obtained high-tech enterprise anticipate potential technical challenges in
certification. advance.Conduct in-depth market research in the
early stages of technological innovation
projects to accurately grasp market
Risk demands competitive landscape and
consumer preferences ensuring high
alignment between innovation direction
and the market.Market Intensified market competition Decrease in Establish an agile response mechanism to accelerated iteration of customer revenue Short High High dynamically adjust product pricing and
Anda Technological High-Tech Qingshuiyuan Shanghai High-Tech Shuiyunzong High-Tech Enterprise Risk demands. and profit. Term marketing strategies based on market
Enterprise Certificate Enterprise Certificate Certificate changes enhancing market adaptability
and response efficiency.Build an online and offline integrated
Company R&D Building multi-channel sales network to expand
market coverage and reduce dependence
on a single market.Closely monitor national and local policy
and regulatory developments regularly
conduct legal and regulatory learning and
training to ensure full compliance of
business operations.Policy Fines Hire a professional legal advisory team to
and Adjustments in laws regulations compensa- Medium provide comprehensive legal consultation
legal Mediumand industry regulatory policies tion and Term Medium and support throughout the process
risks impact on effectively preventing legal and compli-financing ance risks.Establish a policy response mechanism to
optimize corporate strategies and business
models in a timely manner based on policy
changes ensuring stable operations under
the policy environment.
55 562025 Sustainability Report Henan Qingshuiyuan Technology Co. Ltd.
Risk/Op- Type Risk/Opportunity Financial Impact Impact Likelihood of portunity Description Impact Cycle Level Occurrence Response Measures Indicators and Targets
Establish a full-process intellectual
property monitoring mechanism to In the coming year the Company will focus on improving quality and efficiency as its core objective concentrating on the entire chain
promptly identify and address infringe-
Decline in ments safeguarding the Company’s management of intellectual property to establish the following goals:
Repu- Reputation decline due to sales legitimate rights and brand reputation.Risk Long 1. Maintain an average annual growth rate of 10% in patent applications intensify the cultivation of invention patents increase the tation technology R&D infringement or market Low Low
technical defects share and Term Build a strict technical quality manage-Risk proportion of invention patents and build a high-value patent pool.brand value ment system covering all stages of the R&D process to reduce reputation risks 2. Promote the industrial application of core patents ensure that the patent implementation and conversion rate remains stable
caused by technical defects through above 40% and maximize the value of intellectual property.high-standard control. 3. Continue operating the Postdoctoral Innovation Practice Base introduce high-end talents and tackle cutting-edge technologies.
4. Increase the proportion of R&D expenditure and improve the R&D investment guarantee mechanism.
Continue to increase investment in 5. Coordinate high-level paper publications and award applications strive for Jiyuan City Henan Province patent awards and related
technological innovation resources awards from the Provincial Chemical Industry Association to enhance brand influence and industry discourse power.Tech- comprehensively enhance the Company’s
nologi- Technological advantages are R&D capabilities and technical level to
cal prominent innovation achieve- cope with increasingly fierce market Key Indicators Unit 2025
break- ments are abundant effectively Revenue competition and complex ever-changing Opportu-
nity throug supporting domestic and
increases Long High High policy environments.costs R&D Investment RMB 10000 893.15
hs and international market expansion Termdecrease Strengthen the talent recruitment and
market and consolidating the industrys cultivation system build a high-quality
leading position. Proportion of R&D investment to operating revenue % 1.03leader- professional team of technical and
ship management talents to provide solid talent
support for the Company’s long-term Total number of R&D team members Persons 94
sustainable development.Proportion of R&D personnel to total employees % 11.14
Number of new product development projects Units 16
Sales revenue from new products RMB 10000 2621.11
Specialized Refined Distinctive and Innovative (SRDI) Enterprise Enterprises 1
Impact Risk and Opportunity Management
National High-Tech Enterprise Enterprises 3
The Company establishes a full-process systematic risk control system. By accurately identifying key risk factors scientifically
assessing risk levels strengthening dynamic monitoring early warning and closed-loop management it builds a solid safety barrier
for R&D and innovation activities effectively mitigating various uncertainties continuously stimulating innovation momentum and Encourage R&D and Innovation
comprehensively consolidating and enhancing core market competitiveness.Risk Risk Risk Risk Innovation Platform Construction
Identification Assessment Monitoring Management
The Company has established a full-chain system covering R&D design production and engineering support possessing compre-
Integrate various innovation During the evaluation Conduct regular risk Building upon the solid hensive research and testing capabilities ranging from the detection of macroscopic physicochemical indicators of pollutants to the
elements into the project process prioritize risks monitoring and review foundation of risk identifica-
evaluation system focusing on tion and assessment we analysis of microscopic compositions such as molecules and ions. Relying on solid technical R&D capabilities the Company has been based on the likelihood of activities leveraging data
key dimensions such as occurrence and potential analysis and efficient have optimized innovation successively recognized as the Henan Province Enterprise Technology Center Henan Province Water Treatment Agent Engineering
technical feasibility market impact ensuring decisions feedback mechanisms to management processes and
adaptability and policy are grounded in in-depth closely track risk situations policy direction strength-
Technology Research Center Henan Province Smart Water Treatment System International Joint Laboratory and approved as the
environment and identify data analysis to facilitate and their evolving trends ened team collaboration and Eighth Henan Province Postdoctoral Innovation Practice Base. Simultaneously in collaboration with Zhengzhou University the
critical risk points in the effective allocation of ensuring that the R&D team efficient information sharing
innovation process such as significantly enhancing the Company co-established the Qingshuiyuan-Zhengzhou University Ecological Environment Research Institute continuously solidifying innovation resources and can respond swiftly flexibly
uncertainties in technological strategic adjustments. adjust strategies and flexible adaptability to the core foundation for technological innovation and the integrated development of industry academia and research.advancement fluctuations in continuously optimize respond to sudden risks.market demand and dynamic innovation pathways.changes in industry competi-
tion.Approved to Establish the Postdoctoral Innovation Practice Base Research Equipment
57 582025 Sustainability Report Henan Qingshuiyuan Technology Co. Ltd.
Technology Cooperation Projects R&D Achievements
The Company places high importance on cultivating young scientific research talents actively building professional growth platforms The Company has carried out multiple research projects in the field of water treatment with representative achievements as follows:
to help young researchers rapidly enhance their professional capabilities and achieve career development. During the Reporting
Period the Company carried out industry-university-research cooperation with Zhejiang University focusing on process optimization
and upgrading for polymer products such as PESA AA/MA and PAA and conducted research and development of new multifunc- [Case Study] Achievement Appraisal of the Online Intelligent Control System for Inorganic Salt Precipitation Rate in Water Quality
tional general-purpose water treatment agents. The Company has currently completed the construction of standardized laboratory
experimental setups effectively improving the repeatability and accuracy of experiments successfully achieved the industrial trial
production of AA/MA products and steadily advanced the catalyst replacement R&D related to PESA process improvement. During the Reporting Period the Company completed the achievement appraisal of the Online Intelligent Control
System for Inorganic Salt Precipitation Rate in Water Quality. Its supporting intelligent operation and maintenance
platform relying on core technologies such as online monitoring intelligent dosing and remote control innovates
traditional industrial water treatment models and plays a key role in fostering new quality productive forces promot-
ing coordinated economic social and environmental development and benefiting all stakeholders. The system
reconstructs operational processes digitally to improve efficiency and quality drives industry transformation and
fosters new business models. It also reduces costs and increases efficiency promotes industrial synergy ensures
production safety supports dual carbon goals and green development enables precise chemical control water
conservation and emission reduction benefiting enterprises clients employees the government and the public.Simultaneously the system faces challenges such as technological iteration data security job transformation indus-
try adaptation and lagging standards requiring continuous R&D and refinement to address them.Cooperation Project Meeting Site Product Photos
Furthermore the Company places high importance on the construction of industry technical standards and actively leads and partici-
The Company actively participated in the aforementioned industry summits technical forums and standard discussion activities pates in various standard-setting activities. In 2025 the Company participated in the formulation and revision of one national
continuously deepening industry-university-research exchanges and cooperation expanding industry resources in fields such as standard Hydroxyethylidene Diphosphonic Acid and one industry standard Method for Determination of Coagulation Performance
green and low-carbon development intelligent manufacturing and quality improvement demonstrating the Company’s technical of Water Treatment Agents.strength and sense of responsibility.Intellectual Property Protection
The Company attaches great importance to intellectual property protection in project R&D and production operations. It has not only
formulated the Intellectual Property Management System establishing a comprehensive intellectual property management frame-
work covering management structure and protection requirements but also introduced supporting systems such as the Research
Achievement Protection System and the R&D Center Confidentiality System. These systems specify detailed requirements for classi-
fying archiving and compliantly using R&D achievements delineate the scope of R&D confidentiality and standardize the manage-
ment of confidential materials and the confidentiality responsibilities of relevant personsnel.Participated in the City-Academy Cooperation and the Participated in the 2025 Annual Meeting and Standard
Green and Low-Carbon Innovation Technology Review Conference of the Water Treatment Agent
Achievement Roadshow of the Jiyuan Production-City Subcommittee of the National Technical Committee Additionally upon employee onboarding the Company signs differentiated confidentiality agreements based on the nature of their
Integration Demonstration Zone for Chemical Standardization positions. Regarding intellectual property protection work the Company has concurrently established a special reward mechanism.Employees in the Technology R&D Department are required to sign additional Intellectual Property and Achievement Protection
Agreements to further clarify ownership and protection requirements for achievements.Key Performance
In 2025 Qingshuiyuan obtained 11 utility model patents 2 software copyrights and 4 invention patents. 10 inven-
tion patents and 17 utility model patents were submitted for acceptance and review. As of December 31 2025 the
Company possessed 28 invention patents 139 utility model patents 3 design patents and 35 software
copyrights. Three wholly-owned subsidiaries are recognized as National High-Tech Enterprises.The Company conducted technical exchanges with the Participated in the Artificial Intelligence Empowering
Vice Chairman of the Transportation and Environment New Industrialization Event in Henan Province
Working Committee of the Tianjin Refrigeration Society
59 602025 Sustainability Report Henan Qingshuiyuan Technology Co. Ltd.
Product and Service Safety Indicators and Targets
and Quality Indicators Unit 2025Product Qualification Rate % 98.9
Number of Annual Internal Quality Audits Times 1
Number of Third-Party Sampling Inspections Commissioned Times 1
Qingshuiyuan strictly controls product quality by implementing full-process control from raw material inspection upon arrival
production process quality management to product inspection management. Production adheres to high standards to provide Number of Participants in Quality Training Person-times 63
customers with superior products and continuously build an excellent brand image. Total Duration of Quality Training Hours 35
Number of Quality Training Sessions Times 13
Quality Management System
The Company has established a relatively comprehensive quality management system setting up a Quality & Technology Depart- Product Quality Control
ment and a Testing Center. Internal management systems such as the Product Inspection Management System Non-conforming
Product Disposal Management System and Raw Material Incoming Inspection Management System have been formulated to clearly Full Lifecycle Management of Product Quality
define the inspection processes methods and standards for the entire product production cycle. The Company strictly conducts raw
material incoming inspections to control product quality from the source and continuously improve quality management levels. The Company has established a full lifecycle management system for product quality covering raw material procurement production
process control product inspection and non-conforming product disposal. Through institutionalized management and a multi-de-
The Company and X subsidiaries have obtained ISO 9001 Quality Management System certification. Major water treatment agent partment collaboration mechanism product quality is controlled throughout the entire process. The Company’s testing center quality
products have obtained NSF certification and EU REACH certification registration. technology department production department and related departments carry out quality management in accordance with estab-
lished management systems to ensure that product quality meets national standards industry standards or corporate standards.Control Points Control Measures
The testing center conducts quality inspections on raw materials and auxiliary materials used in
production. Depending on material characteristics full inspection sampling inspection or
Incoming Raw exemption from inspection is applied to ensure raw materials comply with procurement require-
Material Inspection ments.Ande Technological ISO Shuiyunzong ISO 9001 Qingshuiyuan ISO 9001
9001 Quality Management Quality Management Quality Management
System Certification System Certification System Certification The quality technology department production department and various workshops jointly
manage process quality. The enterprise management office organizes quality procedure audits
Production Process annually the production department inspects workshop process records monthly and each
Quality Control workshop reports production indicators daily.Product inspection methods inspection items and testing equipment are clearly defined.Monitoring and measurement are conducted on reactor products and finished products to
Product Inspection ensure product quality meets relevant standard requirements.Management
A management mechanism for non-conforming products is established. The quality technology
department material department production department and sales department are responsi-
Qingshuiyuan Shanghai ISO Tongsheng Environment ISO Qingyuan Water Treatment ISO
9001 Quality Management 9001 Quality Management 9001 Quality Management Non-conforming ble for identifying isolating evaluating and handling non-conforming products according to
System Certification System Certification System Certification Product Disposal their duties to prevent their misuse or delivery.
61 622025 Sustainability Report Henan Qingshuiyuan Technology Co. Ltd.
Product Recall Customer Communication Channels
If product issues seriously endanger health and safety the Company will immediately recall and inspect the products for confirma- The Company actively listens to customer opinions and feedback through various forms and channels.tion. The general manager is responsible for forming a product recall task force with personnel from the marketing department
supervision department procurement department and other departments assisting in the work. If the issue is attributable to the
Company’s responsibility technical personnel will be organized to improve processes develop preventive and corrective measures Customer Communication Channels
and conduct comprehensive inspections of production processes to prevent similar problems from recurring. Additionally the
product recall team organizes recall drills annually to ensure the recall procedure is timely and effective. Customer Complaint Hotline ：0086-0391-6082211 Customer Complaint Email：sales@qywt.com.cn
Customer Service Assurance
Customer Satisfaction
Qingshuiyuan is committed to enhancing the customer service experience and promptly responding to customer complaints through The Company consistently aims to enhance customer satisfaction as its service goal continuously optimizing the customer service
various communication channels. The Company has obtained a commodity after-sales service certification and provides services to experience. For different categories of customers (A B C D) the Company regularly conducts questionnaire surveys using customer
customers with professional standards. At the same time the Company has established a product recall mechanism regularly satisfaction survey forms. During the Reporting Period the Company conducted customer satisfaction surveys including one for the
conducts customer satisfaction surveys and adheres to a customer-centric approach to safeguard customer rights and interests. International Trade Department. The customer satisfaction rate was 95.69% maintaining an overall high level of satisfaction.Regarding demand feedback over 79% of customers expressed a desire for price support and raised further requirements concern-
Customer Service Management ing product types product quality and new product development. The Company continuously explores customers underlying needs through questionnaire surveys and subsequent email communication and relays relevant market information to departments such
as R&D to continually optimize products and services meeting customers multi-level needs.The Company adheres to a customer-centric philosophy designates the sales
department as the primary responsible unit for after-sales service and has formu-
lated the Customer Service System and the Customer Health Safety Assurance
and Product Recall Procedures to standardize service processes and define service
standards. Simultaneously the Company regularly organizes customer training to Indicator Unit 2025
enhance the teams professional service capabilities and continuously improve customer satisfaction
customer satisfaction.Ande Technological Five-Star Product
After-Sales Service Certification Number of customers participating in surveys Persons 218
Customer Complaint Management customer satisfaction % 95.69
The Company attaches great importance to customer complaint management. Throughout the entire complaint handling process
relevant personnel are required to promptly and comprehensively record the details of each stage on the customer complaint
handling form ensuring the process is traceable and verifiable. The Company proactively updates customers on the progress
safeguarding their right to information and ensuring their reasonable demands receive an efficient response.Customer Complaint Response Mechanism
Transmit information to
Record complaint Salesperson fills in Contact the responsible relevant salespersons and
content the abnormal department according to the department leaders accident form accident type
Fill in the problem summary and
responsible department on the
accident form
Communicate solutions Inform the customer The responsible
and compensation plans after the accident is department investigates In case of quality issues: the
with the customer clarified the cause of the accident joint laboratory inspects and
verifies the retained samples
workshop conducts
self-inspection and reviews
production records
63 642025 Sustainability Report Henan Qingshuiyuan Technology Co. Ltd.
Responsible Marketing Data Security Risk Management
The Company consistently adheres to the concept of responsible marketing integrating customer safety and the protection of the
right to know into the entire process management of marketing and promotion. During the promotion of new products sales person-
nel must provide customers with complete product technical specifications clearly disclose product hazard categories safety Through the Group Information Management System the Company implements unified management of information systems and
protection requirements and relevant technical parameters. Additionally they must proactively inform customers of potential risks data centers establishing a risk management mechanism for data security and information system operations. As the designated
during product use and emergency response measures. Relevant information is delivered through formal written documents or management department the Information Center is responsible for planning operation maintenance and information security
emails with confirmation that customers have reviewed and understood the safety guidelines. supervision and inspection of information systems as well as the unified management of software hardware and equipment for
information systems servers and data centers. Meanwhile the Company strengthens the identification and monitoring of informa-
By standardizing marketing practices strengthening information disclosure and safeguarding customers right to know the Company tion system operation risks through measures such as server inspections data backups permission management and data center
effectively fulfills its corporate social responsibility promotes the construction of a safe transparent and compliant marketing management to ensure stable system operation and data security.system and protects customer rights and the healthy development of the industry.Risk Identification
Data Security and Customer The Information Center centrally manages the groups information systems data center network systems and related hardware and software equipment identifying system operation risks through daily checks registration and maintenance.Privacy Protection Risk Assessment
Inspect and record the operating status of information systems equipment conditions and system anomalies. When anomalies occur
handle them promptly according to system operation instructions and report to superiors or contact system service providers for
resolution.Qingshuiyuan strictly guards against information leakage risks complies with laws and regulations such as the Data Secu-
rity Law and comprehensively safeguards corporate information security laying a solid foundation for the sustainable
development of information security. Risk Monitoring
Conduct irregular server inspections establish data server backup plans perform daily incremental data backups while retaining
backup data from the past 15 days and conduct at least one off-site data backup per month with data retained for three years.Data Security Management System
Risk Management
To strengthen information management and ensure the security of information systems and servers the Company has
established internal management systems such as the Information Management System Information Security System and
Computer Equipment Management System creating an information security management mechanism that covers daily Manage information system accounts and module permissions using the OA system for account applications permission configura-
tions account adjustments and deactivation to standardize system usage behavior.management and emergency response.The Company’s Information Center is responsible for overseeing information security management conducting daily
supervision and inspection of information security planning and implementation maintaining corporate information Emergency Plan
security and protecting customer privacy information.The Company formulates emergency response plans for information and network security incidents responding to emergencies such
as natural disasters power outages equipment failures and human sabotage and establishes emergency organizational structures and
handling procedures.集团信息中心主任
Information Center Organizational Structure
Director of the Group
Information Center
1 person Data Security Practices
The Company continuously strengthens data security management ensuring stable information system operation through institu-
tional development and technical operations and maintenance. The Company establishes server data backup plans conducts regular
Information IT Information IT Manage- Information Technology
Management Post Management Post ment(seconded) Post Training Post server inspections performs daily incremental data backups while retaining backup data from the past 15 days and conducts at least
one off-site data backup per month with data retained for three years. Account management and data center operations and mainte-
2 persons 1 person 1 person 1 person
nance measures are also implemented to ensure system and data security.
65 662025 Sustainability Report Henan Qingshuiyuan Technology Co. Ltd.
Management Areas Management Measures Governance
The Company continuously improves the supplier management system by formulating and implementing relevant regulations such
as the Supplier Management System Procurement Management System and Bidding Management System to standardize supplier
Conduct regular server inspections and establish data server backup plans; perform scheduled daily management and procurement activities. Meanwhile the Company has established a Bidding and Procurement Center responsible
incremental data backups with at least the past 15 days of backup data retained locally on the server;
conduct at least one off-site data backup per month with data retained for three years. for managing and supervising various bidding and procurement tasks. A comprehensive procurement organizational structure is built
Data Backup around this center to ensure standardized procurement activities and foster stable long-term cooperative relationships with suppli-
Management ers.Organizational Structure of the Company’s Bidding and Procurement Center
After employees join the Human Resources department initiates the account activation process via
the OA system. System administrators activate accounts and configure permissions based on approv-
al results; account users must promptly change initial passwords securely manage account informa-
tion and regularly update passwords; when employees change positions or leave system administra-
System Account tors adjust or deactivate their accounts.Management Procurement Specialist
(Group Headquarters)
Procurement & Bidding Director of Deputy Director Procurement Specialist
Information processes are proposed by the requesting department which drafts process plans. After Center Staff Structure Procurement & of Procurement (Subsidiary)
review and confirmation by the Information Center the processes are implemented and launched. The Bidding Center & Bidding Center
processes involve node permissions operator scope form requirements and are managed according
Information System to approval workflows. Procurement Specialist
Process Management (Subsidiary)
Information Center management personnel inspect the data center environment and equipment
operation status on each working day and maintain records; external personnel entering the data The Company employs various procurement methods tailored to different needs to ensure flexibility and efficiency.Data Center Operations center must be accompanied throughout and registered; equipment failures in the data center are
and Maintenance handled promptly and maintenance activities are recorded. Procurement Methods
Management
Local Government
Designated Websites
Engineering Open Bidding
Customer Privacy Protection Bidding Categories Services Company Platform Equipment Invited Bidding
The Company implements hierarchical management of information system administrative permissions based on security levels and
applicable subjects ensuring the standardization and rationality of permission configuration and control. Simultaneously conduct
rigorous qualification and credit reviews of cooperative professional institutions and sign service contracts and confidentiality agree- Procurement Methods Open Inquiry
ments.Single Source Procurement
Non-Bidding Sporadic Source
Categories Bulk Materials Procurement
Responsible Supply Chain E-commerce Procurement
Qingshuiyuan continuously strengthens supply chain management advances the construction of digital platforms achieves full-pro-
cess visual control of the supply chain strictly reviews supplier entry conditions to ensure cooperation quality adheres to the princi-
ple of transparent procurement and focuses on creating an open fair and transparent procurement environment.
67 682025 Sustainability Report Henan Qingshuiyuan Technology Co. Ltd.
During the Reporting Period the Company organized a series of procurement system training sessions through the Qingshuiyuan Risk/Op- Risk/Opportunity Financial Impact Impact Likelihood of
Cloud Classroom platform. The training covered topics such as transparent procurement supply chain ecosystem supply chain portunity Type Description Impact Cycle Level Occurrence Response Measures
diagnostics and upgrades supplier assessment and procurement risk management further enhancing the professional theoretical
knowledge and practical capabilities of procurement personnel. Digital
trans- Digital transformation
[Case Study] Supply Chain and Procurement Management Capability Enhancement Training forma- supports the Company in Reduction in
tion of building a more flexible supply supply chain Refine the supply chain access process Long
the chain improving procurement manage- High
High standardize supplier access and evaluation
ment costs Term procedures.During the Reporting Period to improve the Company’s procurement management level and supply chain collabora- supply efficiency and transparency
tion capabilities the Company organized internal training on supply chain and procurement management. The chain
training focused on procurement system construction transparent procurement supplier management strategic Opportunity
procurement cost analysis and procurement risk prevention and control. Through systematic course explanations
and case studies it helped procurement personnel deeply understand the important role of procurement in the Focus on technological Enhance the
corporate value chain and master key methods such as supplier classification management procurement cost product Company’s Improve the layout of the upstream and research and development core Long medium downstream industrial chain.analysis and performance evaluation. Additionally the training incorporated practical experiences such as central- up- conduct product upgrades High
grade and reduce raw material competitive- Term to high Enrich the variety of company products.ized procurement e-procurement and procurement process risk control guiding employees to establish a transpar- costs ness in the market
ent procurement philosophy strengthen compliance awareness and further enhance the standardization and
professionalization of procurement management.Impact Risk and Opportunity Management
The Company relies on its supply chain risk identification system to identify and assess potential risks such as supply disruptions
logistics obstructions and cost fluctuations. Through dynamic monitoring it continuously tracks risk changes enhancing supply
Training Images chain resilience and flexibility thereby providing strong support for the stable operation of the supply chain.Risk Identification
Strategy
Collect data on supply chain operations including supplier information logistics data market demand etc. and
analyze the external environment such as market trends policies regulations and technological developments to
The Company thoroughly analyzes and assesses the risks and opportunities faced by the supply chain closely monitors potential risks identify factors that may impact the supply chain.from raw material price fluctuations and storage/transportation links actively adopts effective countermeasures explores transfor-
mation and upgrading opportunities in practice and promotes the sustainable and healthy development of the supply chain. Risk Assessment
Risk/Op- Type Risk/Opportunity Financial Impact Impact Likelihood of portunity Description Impact Cycle Level Occurrence Response Measures Assess the potential impact of each risk on supply chain operations including financial impact operational efficiency
and customer satisfaction. Evaluate the likelihood of each risk occurring using historical data expert opinions or statis-
Strengthen long-term cooperation with tical models and prioritize risks based on impact and likelihood.Profit high-quality customers and seek new
Raw Some of the Company’s raw margins are qualified suppliers.Materi- materials are significantly squeezed
al Price affected by environmental
Adjust procurement strategies based on Risk Monitoring
with risks of medium
Fluctu- policies leading to substantial
raw material prices.declining to long High High
price fluctuations in key raw
ations gross profit termmaterials. Improve production processes and margin. Regularly review the risk landscape including market changes supplier performance and logistics conditions. For enhance cost control.critical risks implement real-time monitoring to enable rapid response.Risk
Raw
Increased Implement comprehensive safety Material Some of the Company’s raw storage and measures establish accident warning and Storage materials are flammable transporta- emergency response mechanisms.Risk Management
and explosive corrosive or toxic Long tion costs Term High HighTrans- Closely monitor industry policies requiring special handling for heightened scientifically formulate preventive
porta- storage and transportation. risk of safety Establish a risk reporting mechanism to ensure all relevant parties receive timely risk information. Develop correspond-measures and enhance employee safety
tion incidents awareness. ing response strategies based on risk assessment results.
69 702025 Sustainability Report Henan Qingshuiyuan Technology Co. Ltd.
Indicators and Targets Supplier Qualification Process
Supplier
Access Process
Key Performance
General Procurement New Supplier
Indicator Unit 2025
Number of Suppliers by Region
Qualified Supplier Suppliers submit
Total number of suppliers Suppliers 635 Database of Youyun access applications on
Procurement Platform the digital platform
Supplier Review
Number of suppliers with quality management system certification Suppliers 148 Preliminary Review by
the Procurement
Number of suppliers with environmental management system certification Suppliers 148 Department
If on-site inspection
Number of suppliers with occupational health and safety management system certification Suppliers 148 is required
Number of suppliers whose cooperation was suspended due to non-compliance Suppliers 0
Approval by Youyun Supplier Inspection and
Number of potential suppliers rejected due to non-compliance Suppliers 0 Procurement Platform Assessment
Assessment score reaches 80 points
Performance of local suppliers
Ratio of procurement expenditure directed to local suppliers % 53 Supplier Evaluation
Annual evaluation and rating of suppliers are conducted focusing primarily on qualifications product pricing delivery timeliness and
Procurement Training product quality. Suppliers are managed by tier based on comprehensive evaluation results:
Duration of procurement training Hours 40
Transparent Procurement Tier A
Signing rate of procurement integrity commitment letters % 95 Excellent supplier total score Tier B
≥90
Qualified supplier total score Tier C
≥70
Pending total score Tier D
≥60
Unqualified supplier total score
<60
Supplier Full Lifecycle Management
Supplier Qualification
The Company has established a standardized supplier qualification management mechanism clarifying supplier qualification
standards and procedures. Suppliers intending to participate in the Company’s procurement must register and submit applications
through the Qingshuiyuan Youyuncai platform complete and upload relevant supporting documents as required and can only be Qualified Supplier Database Management
included in the Company’s supplier management system after passing the review. Furthermore the Company stipulates that suppli-
ers registered for less than three years are not eligible for qualification and suppliers on the blacklist are prohibited from re-qualifica- Suppliers that pass the cooperation review are included in the Company’s Youyuncai platform qualified supplier database. In princi-
tion. If suppliers in the qualified supplier database undergo information changes they must undergo re-review according to the new ple procurement activities for the group and its subsidiaries select suppliers from this qualified supplier database for procurement
supplier qualification process. cooperation.
71 722025 Sustainability Report Henan Qingshuiyuan Technology Co. Ltd.
Supplier Exit and Restrictions Supply Chain Resilience Building
Regarding supplier access restrictions and dynamic management suppliers newly registered for less than three years are not eligible
The Company emphasizes industry exchanges continuously deepening technical communication and industrial collaboration with
for access and suppliers on the blacklist are prohibited from re-entering. If any changes occur in the information of suppliers in the
supply chain partners. This approach enhances supply chain stability and project implementation capabilities further strengthening
qualified supplier database they must undergo re-evaluation according to the supplier access process.supply chain resilience.[Case Study] Water Treatment Product Promotion Conference
Supplier ESG Management On September 23 2025 the Company held a water
treatment product promotion conference to engage in
technical and application exchanges with industry
The Company continuously strengthens ESG management in the supply chain prioritizing cooperation with suppliers that possess chain partners. The conference focused on the market
environmental quality and occupational health and safety management system certifications. This collaborative effort aims to application of reverse osmosis membranes in the water
promote the development of a sustainable business ecosystem and foster green efficient and safe growth within the supply chain. treatment field and discussed the product perfor-
mance and typical application scenarios of LG high-ef-
Transparent Supply Chain ficiency reverse osmosis membranes. On-site Photos
To standardize procurement practices and enhance integrity management in the supply chain the Company has established systems
such as the Integrity Cooperation Agreement and the Integrity and Self-Discipline Management Standards. Procurement personnel Additionally the Company utilizes a digital procurement platform which features full-process management supplier resource
are required to sign integrity commitment letters which clearly define ethical conduct requirements strictly prohibit commercial integration and digital collaboration functions. This platform helps the Company achieve efficient and standardized digital procure-
bribery and improper benefits ensure an open fair and transparent procurement process and promote the establishment of a ment thereby improving overall operational efficiency and economic performance.standardized and transparent supply chain cooperation environment.Supplier Training
The Company places great emphasis on ESG communication and exchange with suppliers. By establishing learning and communica-
tion platforms it promotes suppliers understanding and application of green development concepts low-carbon technologies and
environmental governance innovations thereby driving the overall green transformation of the supply chain and enhancing its
sustainable development capabilities.[Case Study] Environmental Governance and Green Development Conference
During the Reporting Period the Company organized the Qingshuiyuan Environmental Governance and Green
Development Conference inviting experts and scholars from government agencies research institutions and indus-
try organizations to engage in exchanges and sharing with corporate representatives. Focusing on the theme of
environmental governance and green development the conference addressed key topics such as innovations in
water treatment technology industrial cooling water treatment low-carbon economic development and carbon
market development. Through specialized reports and discussions it systematically shared cutting-edge industry
technologies and green development concepts.At the conference multiple industry experts delivered specialized presentations on topics such as intelligent evalua-
tion of water treatment effectiveness industrial cooling water treatment technologies pathways for low-carbon
economic development and trends in carbon market development. These presentations helped participating compa-
nies gain a deeper understanding of the direction of green technology development and emerging trends in environ-
mental governance.On-site Photos
73 74Uniting Efforts and
Fulfilling Responsibilities
for a Better Future
This chapter covers material ESG issues.Strengthening the Foundation of Talent
Empowering Career Development
Strictly Adhering to the Safety Bottom Line2025 Sustainability Report Henan Qingshuiyuan Technology Co. Ltd.Strengthening the Foundation 2025Key Indicators
of Talent Total Employees 844 Persons Number of Ethnic Minority Employees 3 Persons
Number of Employees by Gender
Qingshuiyuan strictly adheres to laws and regulations such as the Civil Code Labor Law and Labor Contract Law consis- Female 287 Persons Male 557 Persons
tently upholding the core business philosophy of “people-oriented” principles. The Company continuously optimizes its
human resource management system effectively safeguards the legitimate rights and interests of employees and strives Number of Employees by Ageto achieve the talent development goal of “uniting people with corporate philosophy attracting people with career oppor-tunities and selecting people with professional and vocational requirements.” Under 30 109 Persons 30-40 Years Old 356 Persons 40-50 Years Old 245 Persons 50 Years and Abov e134 Persons
Labor Relationship Management By Educational Background
Doctorat 2 Persons Master’s Degree 24 Persons Bachelor’s Degree 300 Persons Associate Degree and Below 518 Persons
To meet the talent needs for the Company’s sustained and stable development the Company continuously improves its
human resource management system formulates specialized regulations such as the Recruitment Management System Employee Turnover Situation
and Employee Relationship Management System and establishes a scientific employment mechanism. The Company
consistently standardizes the entire recruitment process carrying out recruitment through diversified methods and chan- Number of New Employees 98 Persons Number of Departing Employees 98 Persons Employee Turnover Rate 11.49 %
nels adhering to the principles of fairness impartiality and transparency throughout the process to ensure the standard-
ized and orderly advancement of recruitment efforts.Employee Diversity
Internal Recruitment External Recruitment
The Company formulates the Interview Process Management Measures and the Prohibition of Child Labor Recruitment
Release internal recruitment informa- Talent Agency Headhunter Online Platform Campus Policy and Remedial Measures Procedure resolutely opposing any form of employment discrimination. The scope of
tion according to the process Recruitment discrimination includes gender age race religious beliefs marital and childbearing status disability nationality region
family background etc. The Company actively attracts and retains diverse talents injecting multifaceted vitality into the
Company’s healthy and sustainable development.Personnel Personnel At the same time the Company regularly organizes specialized training for interviewers focusing on strengthening the
Submit Formulate Release Selection Selection promotion and implementation of the principle of equal employment. It explicitly stipulates that sensitive personal
Recruitment Recruitment Recruitment (Including Resume Screening Interview information such as birthday family situation religious beliefs and parents’ nationality should not be inquired about or Demand Plan Information Written Test Physical recorded during the recruitment process effectively respecting and protecting the privacy rights of applicants. On July 30
Examination) the Company organized training on topics such as anti-discrimination equal employment anti-harassment and workplace
bullying and employee privacy protection further reinforcing the concept of equal employment among all employees and
fostering an inclusive fair harmonious and transparent workplace environment.To strengthen internal supervision and compliance evaluation of the recruitment process the Company’s Human Resources
Recruit- Confirma- Compre-Probation Department regularly conducts specialized reviews of interview records. Additionally the Company has established an ment Work tion of hensive
Employment Evaluation anonymous complaint channel encouraging applicants to provide feedback on any potential discriminatory behaviors Evaluation during the recruitment process thereby solidifying the institutional safeguards for equal employment.Recruitment Process Anti-Child Labor
The Company strictly implements the Regulations on the Prohibition of Child Labor fully complies with the relevant
requirements of the SA8000 Social Accountability Standard resolutely prohibits the use of child labor and does not
2025Key Indicators support the employment of child labor by other enterprises or social organizations. In the recruitment process the Compa-
ny rigorously verifies the identity information of all applicants to ensure compliance with labor regulations from the source.Labor Contract Signing Rate 100 % Social Insurance Coverage Rate 100 % If child labor is employed due to negligence the Company will immediately terminate the child’s work promptly report the
incident to the local Human Resources and Social Security department and contact the child’s parents or legal guardians
in a timely manner to implement subsequent remedial measures in accordance with regulations.
77 782025 Sustainability Report Henan Qingshuiyuan Technology Co. Ltd.
Protection of Women’s Rights and Interests Performance Management
The Company has established a comprehensive system for protecting the rights and interests of female employees. Relying The Company formulates the Performance Management System covering all employees designating the Compensation
on multiple systems such as the Leave Management System Labor Contract Management System and Recruitment and Assessment Committee as the highest decision-making body for assessments and the Management Office as the
Management System the Company has formed an all-round protection mechanism covering dimensions such as employ- specific implementation department. Assessments are conducted following principles such as strategic orientation objec-
ment equality labor protection and exclusive benefits. tivity and fairness and integration of performance and incentives. Monthly and annual assessments are implemented by
The Company strictly implements national regulations on maternity leave miscarriage leave and breastfeeding leave. It organization and employee category. Senior management and department heads are assessed using the BSC method
establishes nursing rooms for breastfeeding female employees and provides flexible clock-in conveniences. During mater- while frontline employees are assessed using KPI+GS.nity leave salaries are calculated and disbursed by the maternity insurance fund based on the Company’s average monthly The Company directly links performance assessment results with employees’ monthly performance pay year-end bonuses
employee wage from the previous year. The Company also provides exclusive allowances and subsidies for female employ- and salary grade adjustments. Simultaneously these results serve as the core basis for position transfers training and
ees such as hygiene fees. Simultaneously the Company formulates specific labor protection requirements based on the development and reserve talent selection. The Company also implements proportional control on assessment grades
physiological characteristics of female employees. It prohibits assigning female employees during menstruation pregnan- constructing a multi-dimensional system for applying performance results.cy and breastfeeding periods to perform prohibited tasks. Employees more than seven months pregnant are not assigned
night shifts or extended working hours. The Company explicitly prohibits workplace sexual harassment and any violations
discovered are dealt with seriously. Furthermore the Company resolutely eliminates gender discrimination in recruitment Employee Performance Appeal Mechanism
and hiring processes ensuring women enjoy equal employment opportunities. It integrates the “people-oriented” employ- To ensure the fairness of performance evaluations the Company has established a standardized employee performance
ment philosophy into the entire process of protecting women’s rights and interests effectively safeguarding the legitimate appeal mechanism. If an employee disagrees with the evaluation result they may submit a written appeal. The Enterprise
rights and interests of female employees. Management Office accepts investigates and coordinates the handling of such appeals within the stipulated timeframe.Appeals from non-senior management personnel are ultimately reviewed and decided by the Compensation and Perfor-
Compensation and Benefits mance Leadership Group effectively safeguarding the legitimate rights and interests of employees.To fully motivate and guide employees to exert their subjective initiative the Company has formulated the Compensation Management Measures Democratic Management
establishing a dual mechanism of efficient compensation incentives and constraints. It implements four compensation models: annual salary system
performance-based salary system special zone salary and agreement-based salary system. The Company comprehensively considers multiple
The Company establishes diversified internal communication channels providing employees with an open and inclusive
factors such as the nature of the employee’s position work performance professional competence and overall quality. It objectively and fairly
environment for communication to enhance their sense of belonging.evaluates employees’ value creation achievements and historical contributions consistently adhering to the value distribution principle of perfor-
mance priority while considering fairness thereby ensuring employees receive reasonable compensation commensurate with their efforts.Formal Communication
Annual Salary System Efficiency-Based Wage Agreement-Based Wage
System Special Zone Wages System Pre-Onboarding Pre-employment Communication During Regularization Exit InterviewCommunication Training Communication the Probationary Period Communication
Compensation Structure Compensation Structure Compensation Structure Compensation Structure
Base Annual Salary + Position Salary + Seniority Pay Fixed Salary + Performance Executed According to the
Performance Annual Salary + + Performance-based Salary + Salary + Allowances and Agreement
Overtime Reward + Allowances Year-end Bonus + Allowances Subsidies + Benefits Informal Communication
and Subsidies + Benefits and Subsidies + Special
Rewards Applicable Personnel Democratic Symposium Major Celebratory Events The Human Resources Department conducts irregular
Applicable Personnel Applicable Personnel Personnel who have made Applicable Personnel interviews with employees.Senior Management Personnel Administrative Sequence R&D significant contributions to the Company are scarce in the Scarce Professional PersonnelSequence Positions The Company strictly implements relevant laws and regulations such as the Trade Union Law and the Regulations on the market or are retired and
rehired Congress of Enterprise Employees establishes and improves the Employee Congress System and enhances the mecha-
nisms for employee democratic management and supervision effectively safeguarding employees’ legally entitled rights
Simultaneously the Company has established a comprehensive benefits system to achieve common development for both such as the right to know and the right to participate. During the Reporting Period the Company’s Employee Congress
the Company and its employees. reviewed and approved 2 projects and the proportion of union members among the Company’s employees reached 90 %.Five Social Insurances
and Housing Fund Simultaneously the Company formulated and implemented the Factory Affairs Disclosure System specifically establishing
Education and
Accident a Factory Affairs Disclosure Working Group and a Factory Affairs Disclosure Supervision Group. This fully mobilizes Professional Title
Allowance Insurance employees’ enthusiasm and initiative to participate in Company management further solidifying the foundation for demo-
Benefits cratic management within the enterprise.Communication Labor Protection
Allowance System Supplies
Factory Affairs Disclosure Working Group Factory Affairs Supervision Group
Meal Allowance Birthday
Wishes Handles specific matters related to the content of Supervises the timeliness and authenticity of the disclosed factory Holiday
Benefits factory affairs disclosure and proposes solutions. affairs content ensuring that employee feedback is addressed.
79 802025 Sustainability Report Henan Qingshuiyuan Technology Co. Ltd.
The Company has established a Labor Dispute Mediation Committee responsible for mediating employee labor disputes Employee Activities
and conflicts to promote the construction of harmonious labor relations. During the Reporting Period no labor disputes or
conflicts occurred within the Company. During the Reporting Period the Company organized various activities such as table tennis summer camps sports meets
dumpling-making events for the winter solstice and recitation competitions aiming to strengthen connections between
employees and departments foster friendship create a healthy and positive work atmosphere and promote a collaborative
team spirit.Labor Dispute Mediation Committee
Sports Meet
Employee Satisfaction
The Company actively listens to employee demands and concerns primarily through questionnaires regularly organizing
employee satisfaction surveys. This helps the Company comprehensively and accurately understand employees’ genuine
needs and reasonable expectations providing solid data support and a basis for decision-making in formulating subse-
quent management strategies that are more aligned with employee realities and more targeted.Employee Care
Table Tennis Summer Camp
Health Check-up Mental Health
The Company regularly organizes free physical health The Company periodically offers psychological training
check-ups for all employees focusing on and courses to alleviate employees’ psychological risks.safeguarding their physical health to enhance their
health awareness.Support for Employees in Difficulty
When employees or their families encounter
significant difficulties the Company extends
condolences and care providing varying levels Dumpling Making on Winter Solstice
of material assistance.Qingyuan Water Treatment Visits Qingyuan Water Treatment Visits
Employees in Difficulty Retired Employees
81 822025 Sustainability Report Henan Qingshuiyuan Technology Co. Ltd.
Empowering Career Development New Employee New employees must undergo at least two days of onboarding training before starting their
Training positions and can only begin work after passing the assessment.Qingshuiyuan is committed to establishing a comprehensive career development and training system to enhance employ-
When employees transfer to new positions within the Company the head of the new department
ees’ overall competencies fully unleash their potential support them in steadily achieving their personal career goals and
provides job-specific knowledge and skills training according to the requirements of the new
ultimately realize a win-win scenario where individual value aligns with the Company’s development objectives. Job Transfer
Training role and employees can only start work after passing the training.Career Development
On-the-Job Job Skill Training Professional Knowledge Training General Competency Training
To help employees achieve steady career advancement the Company has formulated the Career Development Manage- Training
ment System establishing dual career pathways for both management and non-management tracks supporting employ-
ees in vertical promotions and horizontal rotations and encouraging growth across different career paths.Additionally to further expand employees’ career development opportunities the Company implements a “Five LevelsThree Tiers” management model for professional competency levels. Within the same professional role employees are [Case Study] New Employee Corporate Culture and System Training
categorized into five levels based on their professional competence and within each level they are further divided into
three tiers ensuring precise alignment between capability and development. In March 2025 Ande Technological organized specialized training on corporate culture and systems for new
employees systematically explaining the Company’s core cultural concepts and various regulations. This
initiative helped new employees quickly familiarize themselves with operational norms and integrate into
Professional Track the corporate culture laying a solid cognitive foundation for their efficient performance in their roles.Technical Track R&D Sequence
Management Non-Manage-
Track ment Track
Marketing Sequence Operations Sequence
Career Development Pathways
Training System
The Company has established specialized systems such as the Training Management System and the Interim Regulations
on Internal Trainer Management creating a systematic training framework with clear classifications and levels. By combin-
ing internal mentorship with external trainers and leveraging diverse teaching methods the Company continuously
enhances employees’ job skills and overall professional competencies. Simultaneously the Company has established a
scientific and comprehensive training effectiveness evaluation mechanism to promptly gather feedback continuously
Training Venue
optimize training content and delivery methods and ensure the practicality and relevance of training initiatives.
83 842025 Sustainability Report Henan Qingshuiyuan Technology Co. Ltd.
Internal Trainer Strategy
To efficiently develop internal training resources and establish a sustainable talent cultivation mechanism the Company
adheres to the principles of “fairness and voluntariness value demonstration and growth for mutual benefit.” It strength- The Company deeply recognizes the importance of occupational health and safety issues for its sustainable development.ens the internal trainer system encouraging employees with professional expertise to serve as internal trainers thereby It comprehensively carries out the identification and assessment of risks and opportunities related to occupational health
facilitating the deep integration of corporate culture and fostering the development of a learning-oriented organization. and safety and has formulated targeted strategies.The Human Resources Department organizes an annual assessment of internal trainers’ qualification levels. Based on the
evaluation results adjustments such as promotion demotion or dismissal of their qualifications are implemented. Simulta- Risk/Op- Type Risk/Opportunity Financial Impact Impact Likelihood of Response Measures
neously quarterly and annual ‘Gold Trainer’ and ‘Gold Course’ awards are established providing corresponding economic portunity Description Impact Cycle Level Occurrence
incentives to winners. Annual award-winning individuals and courses receive honorary certificates fully motivating internal Conduct regular comprehensive mainte-
trainers’ enthusiasm for teaching and course development. nance and inspection of equipment to
ensure good operational condition.Chemical Chemical leakage may harm Increased Strengthen employee training on employee health and even lead expenses Short- Medium operational standards establish strict Leakage
Gold Senior Intermediate Entry to serious consequences such
Large
rising costs term operating procedures and supervise their Internal Trainer Level Risk
Level Level Level Level as explosions and fires. implementation.Improve emergency plans equip sufficient
emergency response supplies and
conduct regular emergency drills.Risk
Install advanced and sufficient ventilation
Strictly Adhering to the and air exchange systems to ensure Production processes often Toxic and workplace air quality meets standards.generate toxic and harmful Harmful gases which can easily lead to Increased expenses Long- Provide employees with high-quality
Safety Bottom Line Gas employees inhaling excessive Exposure amounts causing occupational rising costs term Medium Medium suitable personal protective equipment and supervise their correct use.Risk diseases and affecting their
physical health. Organize regular occupational health
examinations for employees to detect and
address health issues early.Qingshuiyuan strictly abides by laws and regulations such as the Occupational Disease Prevention and Control Law andthe Work Safety Law adhering to the work safety policy of “Safety First Prevention Foremost and Comprehensive With technological advance-ments new safety production Stay updated on the latest safetyManagement.” The Company coordinates high-quality enterprise development with high-level safety construction solidly Upgrade technologies such as production technology trends in the
fortifies the work safety defense line and is committed to achieving long-term stability in work safety. of safety intelligent monitoring systems Decrease in industry and actively conduct technology produc- and automated operation manage- Medium to Large Medium assessments and introductions.tion equipment continue to ment costs long-term
Governance technol- emerge. Applying these Allocate special funds for safety produc-ogy technologies can effectively tion technology upgrade and transforma-
reduce the probability of safety tion projects.Opportu- incidents.The Company has formulated systems such as the Compilation of Occupational Health and Safety Systems and the Hazard nity Strengthen occupational
Identification Risk Assessment and Control Procedures designating the Safety Department as the primary responsible health management by
department for work safety. The work safety responsibility system is reinforced at every level integrating safety manage- Optimi- improving health monitoring Costs systems enhancing the increase
ment into the performance appraisal system. This continuously improves the management level of the dual prevention zation of working environment and initially and Improve the layout of upstream and occupa- downstream industrial chains.mechanism comprehensively safeguarding employees’ occupational health and safety. tional providing more comprehensive then Short-terhealth benefits. These decrease m Medium High
health Enrich the variety of Company products.measures increase employee while
During the Reporting Period the Company and its subsidiaries—Qingshuiyuan Shanghai Qingyuan Water Treatment manage- satisfaction and loyalty while benefits
Shuiyunzong and Ande Technological—have obtained ISO 45001 Occupational Health and Safety Management System ment reducing production increase.interruption risks due to
certification. employee health issues.Impact Risk and Opportunity Management
The Company establishes and improves a dual prevention mechanism for safety production risk classification control and
Qingshuiyuan Shanghai ISO Qingyuan Water Treatment Shuiyunzong ISO 45001 Ande Technological ISO Qingshuiyuan ISO 45001 hidden hazard investigation and management. It regularly conducts effectiveness evaluations of the dual prevention mech-
45001 Occupational Health ISO 45001 Occupational Occupational Health and 45001 Occupational Health Occupational Health and anism updates system information promptly and establishes sound internal and external communication mechanisms to
and Safety Management Health and Safety Safety Management System and Safety Management Safety Management System
System Certification Management System Certification System Certification Certification further enhance the management level of the dual prevention mechanism.Certification
85 862025 Sustainability Report Henan Qingshuiyuan Technology Co. Ltd.
2025 Annual Safety Production Targets Achievement Status
In accordance with GB18218-2009 Identification of Major Hazard Installations for Hazardous Chemicals the
Company establishes risk lists for operational activities and equipment facilities. It forms a leadership group
and an identification team for hazard source identification and risk assessment. Through on-site observa-
tions safety checklists and job hazard analysis methods the Company comprehensively conducts hazard Zero production safety accidents above the general level; zero general AB-level accidents.source identification. Based on human behavior equipment conditions working environment safety
Risk management and other factors the Company ensures comprehensive accurate and compliant analysis through reasonable methods. During the Reporting Period the Company developed an occupational health Zero general CD-level accidents.Identification and safety hazard identification and risk assessment survey form.Zero fire and explosion accidents.Zero traffic accidents where our party bears primary responsibility.The Company implements a mechanism for investigating and managing hidden hazards of production safety
incidents. It compiles a hidden hazard investigation list conducts regular inspections and focuses on
checking electrical equipment machinery special equipment production processes major hazard installa- Zero occupational disease incidence.Hazard tions and key areas in various workshops. Identified hazards are publicly disclosed and rectified according to the five implementations principle to eliminate accident risks promptly and achieve closed-loop manage-
Investigation ment of hazards. Timely rectification rate of safety and environmental hazards reaches 100%.Three-level safety education for new employees and safety training for on-duty personnel reaches 100%.The Company classifies risks using quantitative evaluation methods and controls them based on the Zero administrative penalties.principles of “classification layering and specialization.” Control measures are implemented in areas such as
engineering technology management systems education and training personal protection and emergency
response. The effectiveness of risk control is monitored and evaluated to ensure the measures are targeted
effective and operable. Control levels and responsible personnel are clearly defined.Key Performance
Risk
Assessment Major Risk Significant Risk Moderate Risk Low Risk In 2025 the Company underwent 12 special safety inspections by higher-level units with 96 identified
hidden hazards and a timely rectification rate of 100%.The Company creates four-color risk maps and bar charts which are displayed prominently in visible Organized 14 monthly and comprehensive inspections issued 128 Company-level hidden hazard
locations. Workstations are equipped with must-know cards to inform employees of major hazards harmful
factors consequences and risk control measures. Emergency response cards are also provided clearly rectifications with a timely rectification rate of 100%.outlining emergency response procedures and measures.Indicator Unit 2025
The Safety Department is responsible for communicating risk assessment results to relevant departments. Production Safety Accidents Pieces 0
For unacceptable risks control measures are implemented through establishing objectives management
Risk plans developing operational control procedures or systems formulating emergency measures conducting Safety Emergency Drills Times 252
Management training and education and enhancing monitoring.Amount of Safety Production Investment RMB 10000 475.1
Proportion of Safety Production Investment to Operating Revenue % 0.55
Total Investment in Safety Training RMB 10000 8.00
Indicators and Targets
Number of Safety Training Sessions Sessions 84
During the Reporting Period the Company signed the 2025 Safety Target Responsibility Agreement implementing and Number of Participants in Safety Training Person-times 5712
achieving safety production targets in areas such as production safety accidents and timely rectification rates of hidden
hazards. Total Duration of Safety Training Hours 191
Average Safety Training Duration per Person Hours 40
87 882025 Sustainability Report Henan Qingshuiyuan Technology Co. Ltd.
Indicator Unit 2025
Employee Coverage Rate of Safety Training % 100 Emergency Response Plan System
Coverage Rate of Safety Risk Protection Training % 100 Work Safety Emergency Plan
Certification Rate for Special Operations Personnel % 100
Investment Amount in Work-Related Injury Insurance RMB 10000 29.90
Comprehensive Emergency Plan Specialized Emergency Plan
Coverage Rate of Work-Related Injury Insurance % 100
Investment Amount in Production Safety Liability Insurance RMB 10000 4.24
Coverage Rate of Production Safety Liability Insurance % 100 Special Emergency Special Emergency Special Plan for
Plan for Rain Snow Plan for Flood Control Special Plan for Confined Space
Special Plan for Special Plan for
Fire and Explosion Major Hazard Source
Employee Physical Examination Coverage Rate % 100 and Freezing
and Severe Convective Special Equipment Poisoning and
Weather Prevention Accidents Asphyxiation Accidents Accidents AccidentsPrevention
Detection Rate of Occupational Disease Hazards % 100
Qualification Rate of Occupational Disease Hazard Monitoring % 100
Number of New Occupational Diseases Cases 0
Emergency Response Process
Information Receipt Disposal and Assessment
Emergency Management Whether the Response Activation Conditions Are Met
Yes
The Company has formulated the Emergency Response Plan for Production Safety Accidents to standardize the manage-
Response Activation
ment processes of key aspects such as emergency preparedness emergency response and recovery and reconstruction.It clarifies core elements including the emergency organizational structure division of responsibilities resource allocation
and information transmission ensuring effective prevention rapid response and proper handling of various emergencies. Emergency Response Escalated Emergency Response
The Company is committed to building a comprehensive multi-layered production safety protection network.No
No Is the Situation Under Control Emergency Support
Yes
Emergency Organizational Structure Emergency Termination
Emergency Command Headquarters Post-Incident Disposal
Emergency Management Conclusion
Office / Emergency
Command Office
Security & Emergency Environmental
Logistics Response Materials & Funds Process Rescue & Monitoring & During the Reporting Period the Company proactively conducted safety emergency drills further enhancing all employ-
Support Team Technical Team Support Team Disposal Team Emergency Team Disposal Team ees’ awareness of prevention and self-rescue capabilities. This improved employees’ emergency rescue skills and special-
ized qualities in emergency response effectively reducing accident hazards and ensuring the Company’s safe healthy and
orderly development.
89 902025 Sustainability Report Henan Qingshuiyuan Technology Co. Ltd.
[Case Study] Emergency Fire Evacuation Drill Before construction outsourced units should identify hazards based on the construction content formu-
late construction plans and corresponding safety technical measures.In March 2025 Qingyuan Water Treatment organized a practical emergency fire evacuation drill in the office Strengthen on-site inspection and supervision promptly rectify accident hazards and conduct safety
building. The drill simulated a fire scenario in the Materials Department of the office building and involved assessments for construction management personnel when necessary.full-process operations such as fire handling personnel evacuation and emergency rescue. This effectively
enhanced employees’ emergency response and evacuation capabilities tested the practicality and operabil- During the Reporting Period the Company provided safety training for external construction personnel who
ity of the emergency plan and further strengthened the Company’s production safety defenses. were allowed to work only after passing the assessment.Digital Empowerment
The Company has established a smart safety control platform covering eight major modules including basic
safety management major hazard source safety management intelligent inspection and video intelligentanalysis. It achieves full-process intelligent data control of “rapid perception + real-time monitoring + earlywarning + emergency response + system evaluation” focusing on strengthening the Company’s precise
safety risk prevention and control capabilities and comprehensively improving the professional level and
operational efficiency of safety management.Pre-Drill Training Emergency Personnel Conduct Temporary Disposal
Basic Safety
Management
Contractor
Management
Safety Education System
and Training
System
Organize Personnel Evacuation Emergency Teams Carry Out Disposal Major Hazard
Source Safety
Intelligent Video Managemen
Analysis
Contractor Safety Management Special Operation
Dual Prevention Management
Mechanism
The Company has formulated the Contractor Management System which clarifies contractor safety management responsi-
bilities strictly reviews contractors’ safety qualifications and operational capabilities specifies safety requirements in
contracts and simultaneously signs safety management agreements and conducts safety technical briefings to define the Personnel
Positioning
safety responsibilities of all parties. Intelligent Management
Inspection
The Company continuously strengthens the management of outsourced engineering construction to improve on-site
management levels and ensure the safety of construction work.Increase on-site safety management supervision and implement professional division of labor for safety
management personnel.After entering the Company outsourced units receive safety technical briefings from the competent
department to understand the Company’s safety and environmental requirements methods for
controlling on-site hazards etc. Nine Major Systems of the Smart Safety Control Platform
91 922025 Sustainability Report Henan Qingshuiyuan Technology Co. Ltd.
Organize pre-employment on-the-job and post-employment occupational health examinations for workers exposed to
Enhancement of Safety Awareness occupational hazards and establish occupational health monitoring records.Prioritize the adoption of new technologies processes and materials that are conducive to preventing and controlling
The Company regularly carries out safety education activities and training strictly implements the three-level safety occupational diseases and protecting employees’ health gradually replacing those with severe occupational hazards.education at the Company department and team levels. The learning content covers safety technical knowledge equip- Truthfully inform employees about the occupational hazards associated with processes technologies and materials.ment performance operating procedures etc. and personnel can only enter operational positions after passing the Safety officers identify monitoring points for occupational hazards organize the monitoring and hierarchical manage-
assessment. ment of occupational hazards in workplaces conduct annual inspections of occupational hazards and make the results
public.[Case Study] Shuiyunzong’s “Safe Production Month” Activity
Implement effective occupational disease prevention facilities conduct regular self-inspections and checks to ensure
In June 2025 Shuiyunzong carried out the Safe Production Month activity closely centered on the theme normal and safe equipment operation.‘Everyone Talks Safety Everyone Can Handle Emergencies—Identify Safety Hazards Around You’. Activities Display warning signs and instructions in prominent locations where occupational hazards may occur and provide
included safety pledges safety publicity safety education training and assessments distribution of employees with occupational disease protective equipment.heatstroke prevention items to employees and comprehensive safety production inspections to promptly
eliminate accident hazards. This activity effectively enhanced the overall safety awareness and emergency Equip employees with proper and effective personal protective equipment that complies with national standards.response capabilities of all employees solidly consolidated the Company’s safety management foundation Regularly organize education and training on the correct use and maintenance of occupational disease prevention
promoted the implementation of various safety production measures and strengthened the enterprise’s facilities.safety production line of defense.During the Reporting Period Qingyuan Water Treatment commissioned a qualified third party to conduct inspections of
occupational hazard factors with reports issued and made public.Community Public Welfare
Adhering to the core philosophy of “building a century-old enterprise that benefits society and serves the world” Qing-
Safety Publicity Banners Safety Pledge Activity shuiyuan integrates ESG concepts into its development strategy and embeds philanthropy into its corporate culture. The
Company established the “Jiyuan Charity Federation · Qingshuiyuan Fund” continuously engaging in public welfare initia-
tives such as flood prevention and disaster relief educational support rural revitalization and new rural construction.Through active practice in the field of social responsibility the Company has been honored with titles such as “AdvancedUnit for Donating to Education” “Advanced Unit for the Ten Thousand Enterprises Revitalize Villages Initiative” “Brave andCompassionate Enterprise” and “Advanced Unit for Targeted Poverty Alleviation.”
Safety Education and Training
Occupational Health Management
The Company continuously standardizes the management of warnings and notifications regarding occupational disease
hazards in the workplace strictly implements the “three simultaneous” requirements for occupational disease prevention
facilities in construction projects and ensures the comprehensive protection of employees’ health through multiple
measures. It focuses on preventing controlling and eliminating occupational disease hazards while precisely managing Title of “Compassionate Enterprise”
various occupational risk factors in the working environment.
93 942025 Sustainability Report Henan Qingshuiyuan Technology Co. Ltd.
Appendix Topics Indicator Unit 2025Number of Remuneration and Assessment
Committee Meetings Held Times 1
Number of Proposals Approved by Remunera- Proposals 2
tion and Assessment Committee
Key Performance Indicator Number of Strategy Committee Meetings Held Times 1Strengthening
Compliance Number of Proposals Approved by Proposals 1
Governance Strategy Committee
Governance Dimension Indicators Number of Nomination Committee Meetings Held Times 3
Number of Proposals Approved by
Nomination Committee Proposals 3
Topics Indicator Unit 2025
Number of Regular Reports Disclosed Reports 4
Operating Revenue RMB10000 86879.38
Number of Interim Announcements Disclosed Reports 74
Operational
Performance Net Profit RMB10000 -4057.55 Number of Investor Exchange Sessions Held Sessions 2
Total Tax Paid RMB10000 2721.61
Number of On-site Research Visits Hosted Visits 1
Deepening Investor
Number of Party branches Branches 6
Party-building Relations Management Number of Investor Inquiries Responded Through
leadership the Interactive Easy Platform
Responded 65
Number of Party members Persons 77
Cash Dividend per Share CNY Per Share 0
Number of Shareholders’ Meetings Held Times 4
Total Pre-tax Cash Dividends RMB1000 0
Number of Approved Proposals Proposals 18
Ratio of Dividends to Consolidated Net Profit % 0
Number of Board Members Persons 9 Number of Directors Trained in Anti-Brib-
ery and Anti-Corruption Persons 1
Number of Board Members by Gender
Training Duration Hours 4
Male Persons 6 Adhering to Number of Senior Management Trained in
Business Ethics Anti-Bribery and Anti-Corruption
Persons 1
Female Persons 3
Training Duration Hours 4
Number of Board Members by Type
Strengthening Business Ethics Pledge Sign-off Rate % 100
Compliance Independent Directors Persons 3
Governance
Non-independent Directors Persons 6 Environmental Dimension Indicators
Number of Board of Directors Meetings Held Meetings 8
Topics Indicator Unit 2025
Number of Approved Proposals Proposals 38 Total greenhouse gas emissions tCO?e 44075.46
Board member attendance rate % 100 Climate Change Direct Greenhouse Gas Emissions (Scope 1) tCO?e
Response 97.30
Special Committees of The Board of Directors Indirect Greenhouse Gas Emissions (Scope 2) tCO?e 43978.16
Number of Audit Committee Meetings Held Times 5 Total greenhouse gas emissions per million revenue tCO?e 50.73
Number of Proposals Approved by Audit Committee Proposals 19 Environmental Compli-ance Management Environmental Protection Investment RMB10000 100.26
95 962025 Sustainability Report Henan Qingshuiyuan Technology Co. Ltd.
Topics Indicator Unit 2025 Topics Indicator Unit 2025
Environmental Protection Training Total Purchased Heat Gigajoule 325834.03
Number of environmental Tons of Standard Coal
protection training sessions Times 27 Comprehensive Energy Consumption Equivalent 13197.96
Number of participants in environmen- Ton of Standard Coal/RMB
tal protection training Person-times 754 Comprehensive Energy Consumption Density Million Revenue 15.19
Duration of environmental protection training Hours 54 Prudent Resource Water Usage Status
Management
Waste Gas Emission Total Water Consumption Ten Thousand Cubic Meters 28.80
Waste Gas Emission Volume Tons 1.3 Water Consumption Intensity 10000 Cubic Meters/ RMB Million 0.033
Volatile Organic Compounds (VOC) Tons 1.3 Total Water Cycle and Reuse Tons 138767.45
Wastewater Discharge Total Usage of Packaging Materials Items 913077
Wastewater discharge volume Tons 61979.57 Paper-based packaging materials (woven bags inner bags etc.) Items 462369
Lean Material Plastic-based packaging materials
Chemical Oxygen Demand (COD) Tons 0.669 Management (packaging barrels ton barrels) Items 440363
Environmental Ammonia Nitrogen (NH3-N) Tons 0.026 Wood-based packaging materials (wooden pallets) Pallets 10345
Compliance
Management Total phosphorus (calculated as P) Tons 0.01 Consumption of Toxic and Hazardous Materials Tons 120530.07
Solid Waste Emissions
Amount of hazardous waste generated Tons 96.514
Hazardous Waste Disposal Volume Tons 96.514 Social Dimension Indicators
Waste Engine Oil (HW08
Category Substances) Tons 0.555 Topics Indicator Unit 2025
Waste Activated Carbon (HW37
Category Substances) Tons 93.35 R&D Investment RMB 10000 893.15
Phosphorus Slag (HW37 Category Substances) Tons 1.693 Proportion of R&D investment to
operating revenue % 1.03
Sludge (HW37 Category Substances) Tons 0.466 Total number of R&D team members Persons 94
Waste Filter Cloth (HW37
Category Substances) Tons 0.2 Proportion of R&D personnel to total employees % 11.14
Online Monitoring Waste Liquid (HW49 Igniting Innova-
Category Substances) Tons 0.25 tion-Driven Develop- Number of new product development projects Units 16
ment
Energy Consumption Situation
Sales revenue from new products RMB 10000 2621.11
Purchased Steam Million Kilojoules 325834.03 Specialized Refined Distinctive and
Innovative (SRDI) Enterprise Enterprises 1
Prudent Resource
Management Photovoltaic Electricity Consumption Ten Thousand Kilowatt-hours 100.52 National High-Tech Enterprise Enterprises 3
Total Purchased Electricity Ten Thousand Kilowatt-hours 1543.62 Product Qualification Rate % 98.9
Product and Service
Natural Gas Ten Thousand Cubic Meters 4.5 Safety and Quality Number of Annual Internal Quality Audits Times 1
97 982025 Sustainability Report Henan Qingshuiyuan Technology Co. Ltd.
Topics Indicator Unit 2025 Topics Indicator Unit 2025
Number of Third-Party Sampling
Inspections Commissioned Times 1 50 Years and Above Persons 134
Number of Participants in Quality Training Person-times 63 By Educational Background
Total Duration of Quality Training Hours 35 Doctorate Persons 2
Product and Service
Safety and Quality Number of Quality Training Sessions Times 13 Master’s Degree Persons 24
Bachelor’s Degree Persons 300
Total number of suppliers Suppliers 635
Number of suppliers with quality Associate Degree and Below Persons 518
management system certification Suppliers 148
Strengthening the
Foundation of Talent
Employee Turnover Situation
Number of suppliers with environmental
management system certification Suppliers 148
Number of New Employees Persons 98
Number of suppliers with occupational health and
safety management system certification Suppliers 148
Number of Departing Employees Persons 98
Number of suppliers whose cooperation
was suspended due to non-compliance Suppliers 0 Employee Turnover Rate % 11.49
Responsible Number of potential suppliers
Supply Chain rejected due to non-compliance
Suppliers 0 Number of Projects Company's Employee
Congress Reviewed and Approved Porjects 2
Ratio of procurement expenditure Proportion of Union Members Among
directed to local suppliers % 53 The Company's Employees % 90
Duration of procurement training Hours 40
Signing rate of procurement
integrity commitment letters % 95 Topics Indicator Unit 2025
Labor Contract Signing Rate % 100 Production Safety Accidents Pieces 0
Social Insurance Coverage Rate % 100 Safety Emergency Drills Times 252
otal Employees Persons 844 Amount of Safety Production Investment RMB 10000 475.1
Number of Ethnic Minority Employees Persons 3 Proportion of Safety Production Investment to Operating Revenue % 0.55
Number of Employees by Gender Total Investment in Safety Training RMB 10000 8.00
Strictly
Adhering to Number of Safety Training Sessions Sessions 84
Strengthening the Female Persons 287 the Safety
Foundation of Talent Number of Participants in Safety Training Person-times 5712
Male Persons
Bottom Line
557
Total Duration of Safety Training Hours 191
Number of Employees by Age
Average Safety Training Duration per Person Hours 40
Under 30 Persons 109
Employee Coverage Rate of Safety Training % 100
30-40 Years Old Persons 356
Coverage Rate of Safety Risk Protection Training % 100
40-50 Years Old Persons 245
Certification Rate for Special Operations Personnel % 100
99 1002025 Sustainability Report Henan Qingshuiyuan Technology Co. Ltd.
Topics Indicator Unit 2025
China Corporate Social Self-Regulatory Guidelines No.17 for
Companies Listed on Shenzhen Stock
Content （GRI Standards） Responsibility
Investment Amount in Work-Related Injury Insurance RMB 10000 29.90 Reporting Guidelines Exchange—Sustainability Report (For
(CASS-ESG 6.0) Trial Implementation)
Coverage Rate of Work-Related Injury Insurance % 100
Sustainable Develop-
ment Governance 2-22/2-29/3-1/3-2/3-3 G1.1/G1.3 Article 5 9 14 51 and 53
Investment Amount in Production Safety Liability Insurance RMB 10000 4.24
Strictly Party Building Coverage Rate of Production Safety Liability Insurance % 100 Leadership / / /
Adhering to
the Safety
Employee Physical Examination Coverage Rate % 100 Strengthening Compli- 2-9/2-10/2-11/2-12/2-13/2-14/Bottom Line ance Governance 2-16/2-17/2-18/2-19/2-20/2-21 / Article 12
Detection Rate of Occupational Disease Hazards % 100 Deepening Investor
Relations Management 2-16/2-29 G1.3 Article 9 44 and 53
Qualification Rate of Occupational Disease Hazard Monitoring % 100
Adhering to Business 205/206/417 G2.1/G2.2 Article 54 55 and 56
Number of New Occupational Diseases Cases 0 Ethics
Community Addressing Climate
Public Welfare Number of Participants in Volunteer Activities Person-times 15 Change
201-2/305 E1.1 Article 8Article 21 to Article 24
Environmental Compli-
ance Management 304/305/306 E2.1/E2.2/E2.3/E2.4 Article 20 25 29 30 31 and 33
Prudent Resource
Management 302/303 E3.1/E3.2 Article 35 and 36
Lean Material
Indicator Index Management 301 E3.3 Article 34 and 37
Igniting Innovation-Driv-
en Development 203-1 S2.1 Article 41 and 42
China Corporate Social Self-Regulatory Guidelines No.17 for Product and Service
GRI Standards Responsibility Companies Listed on Shenzhen Stock Content Safety and Quality
416/417 S3.3 Article 47
Reporting Guidelines Exchange—Sustainability Report (For
(CASS-ESG 6.0) Trial Implementation) Data Security and
Customer Privacy 418 S3.4 Article 48
Protection
About This Report 2-1/2-2/2-3 P1.1/P1.2 Article 3 4 6 and 7 Responsible Supply
Chain 204/308/414 S3.1 Article 44 and 45
Chairman‘s Statement 2-22 P2.1 / Strengthening the
Foundation of Talent 401/402/405/406/407/408 S4.1 Article 49 and 50
Company Profile 2-1/2-6 P3.1 / Empowering Career Development 404 S4.3 Article 50
Company Culture 2-6 P3.2 / Strictly Adhering to the Safety Bottom Line 403 S4.2 Article 50
Development History 2-1 P3.1 / Community Public Welfare 413 S1.2 Article 38 to Article 40
Corporate Honors / Key Performance / / Indicator 2 A2 Article 6
2025 Milestones / / / Indicator Index / A3 Article 57
ESG Performance / / / Feedback FormHighlights / A6 Article 53
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Governance as the Foundation: Upholding Green Development: Refining Innovation-Driven Leadership Uniting Efforts and Fulfilling
Integrity for Long-Term Effectiveness Ecological and Environmental Co-creating Industrial Value Responsibilities for a Better Future AppendixProtection Practices
About Qingshuiyuan2025 Sustainability Report Henan Qingshuiyuan Technology Co. Ltd.Feedback Form
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and suggestions are crucial for us to continuously improve our ESG information disclosure management and practices. We
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